© 2009 CONSOR

Corporate Brand Royalty Rates and Deals

Presented by:

Weston AnsonCONSOR Intellectual Asset Management

800.454.9091 www.consor.com

LIMA Annual Licensing Show Las Vegas, Nevada

June 2, 2009

© 2009 CONSOR 22

Categories are Changing and Dropping

Gifts / novelties ( - 20%) Apparel ( - 27%) Housewares / furnishings ( - 17%) Publishing / stationary ( - 18%) Overall ( - 12%)

© 2009 CONSOR 33

Core Issues

Deteriorating economic conditions Retail turmoil and consolidation Consumer indifference WalMart-ism Manufacturer consolidation Shifting social values Quicker cycles, shorter lines House brands and other constraints Private label / store label growth

© 2009 CONSOR 44

New Issue: Bankruptcy

Mervyns Goody’s Gottschalk KB Toys Circuit City Linens ‘N Things Fortunoff

© 2009 CONSOR 55

Financial Issues

Lower RRs Smaller guarantees Less upfront More renegotiations Much wider range of RRs (TMs = 2-12%) More flexibility in marketing contributions Shorter term

© 2009 CONSOR 66

Product Opportunities

Food Other consumables Services Video / telecom / devices Home care products

© 2009 CONSOR 77

Distribution Opportunities

E-commerce TV direct Mobile telecom Restaurants Direct to retail Multilevel marketing

© 2009 CONSOR 88

E-Commerce Opportunities

Coca-Cola Budweiser NASCAR MLB New business models (e.g. Sure Source)

© 2009 CONSOR 99

Brand Valhalla

ElevatorChesterfield

EscalatorBlatz

CellophaneOldsmobile

AspirinPan Am