Confidential Draft Embassy Row Discussion Document December 17, 2007

1 Embassy Row’s Role and Organization within SPT The business will be managed as an independent unit within SPT –Dedicated P&L for all Embassy Row activities, including existing ER shows (like Power of 10) and newly developed shows –Managed by Michael Davies –Embassy Row staff would move to SPT as full-time employees New formats will be based on SPE library product, new U.S.-based development, and acquired international formats ER programs will be syndicated domestically and formatted globally To facilitate increased development, acquisitions, and international format sales, 9 additional people will be hired (plus assistants) –3 to sell international formats –3 to acquire international formats for domestic development –3 to develop internally

2 Earn-out Target Estimates Notes: (1)Davies’ own calendar year forecast through Calendar 2011; grown 15% per year after; converted to fiscal years ending March 31 (2)Assumes syndication starting in FY09 with 195 episodes sold in all domestic markets and growing annual fees; formatting starting in FY09 with 40 episodes sold in 15 markets at $5K per market FY09FY10FY11FY12FY13 Davies Targets (Fiscalized) (1) $5.5$6.8$8.1$9.2$10.5 Power of 10: Format and First Run (2) Total$6.4$11.1$15.4$20.1$26.7 Earn-out TargetN/A$10.0$12.0$15.0$20.0

3 ER Fiscal Year Projections 75%25% In order to fiscalize the calendar year figures for a year ending March 31st, SPT takes 9 months of the previous calendar year (75%) and 3 months of the current calendar year (25%)

4 Power of Format and First Run Profits 75%25%

5 Ad Revenue Assumptions Assumptions: 1040 :30 spots calculated as 4 spots per episode, 5 episodes a week and 52 weeks a year 1300 :10 spots calculated as 5 spots per episode, 5 episodes a week and 52 weeks a year HALF HOUR STRIP M-F (195 episodes) BARTER SPLIT 5.0 MIN LOCAL/ 2.0 MIN NAT 90% US CLEARANCE 50% Early Fringe / 50% Daytime $12,825,287 Net Revenue $65K Value Per Episode

6 APPENDIX

7 ER Calendar Year Projections (Per Michael Davies)