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Rawnoc

05/31/09 3:53 PM

#6368 RE: zagdad #6367

Good questions -- I still don't know how long, but I bet it varies by product. Some products take longer to make than others I would imagine.

For some reason the numbers 4-6 weeks are in my head from order to retail shelf on average, but I'm not sure where I got that from nor if it's accurate. If so, the deal was done first week in May so expect to see VBDG products lining shelves this week through the next 2 weeks IMO, but maybe it's already begun. CVS doing an ad for Steam Buddy I would think means that they have a lot of inventory on hand whereas before these retail customers were constantly sold out and an ad would have been therefore useless.
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Rawnoc

05/31/09 3:57 PM

#6369 RE: zagdad #6367

Anybody else notice in the P2F agreement that the guaranteed minimum annual royalty cash payments to VBDG aren't just $2.8 million -- it's the greater of $2.8 million OR 8 times 8% of VBDG's personal direct sales?

If my head is screwed on straight today, 8 times 8% = 64%. For every one dollar in direct ad sales VBDG gets for themselves (and makes money on for themselves), they get an ADDITIONAL 64 cents from P2F if I'm understanding correctly. For example, if VBDG does $10 million a year in direct sales the minimum payment from P2F would be $6.4 million. I need to read the agreement again though later.