ACQUISITION AGREEMENT

 

Acquisition Agreement, made this 5th day of July 2006 among:

 

WAH KING INVEST CORP.

Hoofddorp, The Netherlands

a Delaware corporation

 

("Buyer")

 

and

 

BOUWCLUB NEDERLAND B.V.

J.C. Beetslaan 153-155

2131 AL Hoofddorp,

The Netherlands

a Dutch corporation

("Company")

 

and

 

UNITED REAL ESTATE HOLDING GMBH

MR. GERARDUS RONALD STEENBERGEN

MR. ROY PATRICK PICENI

MR. ANDRPURVI1#233; MEIJER

AND VLAANDEREN HOLDING BV LTD.

 

(the "Sellers")

 

WHEREAS;

 

A.            Buyer, a company trading on the OTC Bulletin Board, directly and
through one or more subsidiaries, intends to engage in the sales of returned
goods and stock lots of consumer products, The Netherlands.

 

B.

Company is in the sales of returned goods and stock lots of consumer products,
The Netherlands.

 

C.            Sellers, are 100 percent owners of the Company, and intend to no
longer engage in the sales of returned goods and stock lots of consumer
products, The Netherlands.

 

D.            The parties hereto deem it to be in the best interest of each of
them that Buyer purchase 100 percent of the issued and outstanding capital stock
of the Company from the Sellers, and generally succeed to the business of the
Company, all pursuant to such terms, provisions and conditions as the parties
hereto shall agree.

 

 

Page 1 of 27

 

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NOW, THEREFORE, WITNESSETH, that for and in consideration of the premises and of
the mutual promises and covenants hereinafter set forth, the parties hereto
agree as follows:

 

A.

PURCHASE AND PAYMENT

 

1.

PURCHASE AND SALE OF STOCK.

 

1.1           Buyer agrees to purchase from Sellers and Sellers agree to sell,
assign, transfer and deliver to Buyer 100 percent of the issued and outstanding
stock of the Company owned by Sellers. (Collectively, the "Stock").

 

1.2           The purchase and payment for the Stock by Buyer shall take place
at the time and in the manner hereinafter provided, and the sale, assignment,
transfer and delivery of the Stock by Sellers, shall take place on the Closing
Date at the Closing as those terms are hereinafter defined, subject to the
fulfillment of the conditions hereinafter provided.

 

2.

PURCHASE PRICE.

 

2.1           The aggregate purchase price of the Stock (the "Purchase Price"),
shall be one million (1,000,000) voting non registered preferred shares of the
Buyer payable to United Real Estate Holdings GMBH valued at $1.00 per share and
six million (6,000,000) voting non registered common shares of the Buyer payable
to Mr. Gerardus Ronald Steenbergen, Mr. Roy Patrick Piceni, Mr. André Meijer,
and Vlaanderen Holding BV Ltd. valued at $0.50 per share. One half the shares
comprising the Purchase Price, shall be transferred to the Sellers at closing,
in accordance with Schedule A attached, and one half to be held in escrow and
paid to Sellers only in the event the Company achieves a minimum of $2,500,000
in sales and $500,000 in gross profits by the end of fiscal year ended December
31, 2006.

 

B.

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents and warrants that (i) Buyer is a duly organized and
validly existing corporation under the laws of the State of Delaware, (ii) the
execution, delivery and performance of this Agreement by the Buyer has been duly
authorized by all necessary corporate action, (iii) this Agreement is a valid
and legally binding obligation of the Buyer enforceable in accordance with the
terms hereof, (iv) no governmental authorization, approval, order, license,
permit, franchise or consent and no registration or filing with any governmental
authority is required in connection with the execution, delivery or performance
of this Agreement by the Buyer.

 

C.

REPRESENTATIONS AND WARRANTIES OF SELLERS AND THE COMPANY

 

Sellers and the Company hereby warrant and represent to Buyer that, as of the
date hereof, the following statements are true and correct.

 

 

Page 2 of 27

 

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1.

CORPORATE STATUS.

 

The Company is (a) duly organized, validly existing and in good standing under
the laws of The Netherlands; (b) has full corporate power to own all of its
properties and carry on its business as it is now being conducted; and (c) is
qualified to do business as a foreign corporation in each of the jurisdictions
in which it operates and the character of the properties owned by the Company or
the nature of the business transacted by the Company does not make qualification
necessary in any other jurisdiction or jurisdictions.

 

2.

AUTHORITY TO SELL.

 

Sellers have full right, power and authority to sell, transfer and deliver the
Stock owned by such Sellers to Buyer in accordance with the terms of this
Agreement, and otherwise to consummate and close the transaction provided for in
this Agreement in the manner and upon the terms herein specified.

 

3.

FINANCIAL STATEMENTS.

 

At or prior to the date of this Agreement, Company has delivered to Buyer
internal financial statements as of June 30, 2006, comprising Schedule B hereto,
and said internal financial statements, including the related notes and
explanatory notes, present fairly the financial position of Company at the date
thereof and the results of its operations for the periods therein indicated, in
conformity with generally accepted accounting principals applied on a basis
consistent in each case with that of the preceding year.

 

4.

PERIOD SINCE MOST RECENT FINANCIALS.

 

From the date of the most recent reviewed internal balance sheet included in
Company's Schedule B Financials, Company has:

 

4.1           Not suffered any material adverse change in its financial
condition, assets, liabilities or business.

 

4.2           Not affirmatively waived, canceled or compromised any of its
rights, debts or claims of substantial value.

 

4.3           Not issued any additional shares of stock, rights or options to
purchase or convert into such stock, or other securities.

 

4.4           Not made any distribution to its shareholders, as shareholders, of
any assets, by way of dividends, purchase of shares or otherwise.

 

4.5           Not mortgaged, pledged or granted a lien or encumbrance on any of
its properties or assets, except with respect to equipment purchased by Company
during such period.

 

4.6           Not sold or transferred any of its assets, tangible or intangible,
except motor vehicles and except inventory and other assets sold or disposed of
in the ordinary and usual course of business.

 

4.7           Not incurred any extraordinary losses, within the meaning of
generally accepted accounting principles, and/or incurred or become liable for
any obligations or liabilities except current liabilities, within the meaning of
generally accepted accounting principles, incurred in the ordinary and usual
course of business, or made any extraordinary expenditures, within the meaning
of generally accepted accounting principles, other than for the purchase of
motor vehicles and for additions and betterments to existing plant, equipment
and facilities.

 

4.8           Not increased the rate of compensation for any of its officers or
directors nor for any executive employees, except as may be in accord with past
practices and in the usual and ordinary course of business of the Company.

 

Page 3 of 27

 

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4.9           Not experienced any material adverse effect on its business,
properties and assets as the result of any fire, explosion, earthquake, flood,
drought, windstorm, accident, strike, embargo, confiscation of vital equipment,
material or inventory, cancellation of contracts by any domestic or foreign
government, or any agency thereof, or customer whose business with seller
represents 5% or more of sellers gross revenue, riot, activities of armed
forces, or acts of God or the public enemy.

 

4.10        To the best knowledge of Seller, it not incurred any liabilities,
contingent or otherwise, except those stated in the balance sheet of Swedia as
of December 31, 2004, attached hereto as Schedule E - 1, or described in any
notes accompanying said balance sheet, those referred to in Schedule E - 1
hereto, and current liabilities incurred in the ordinary and usual course of
business since the date of the said balance sheet.

 

5.

CAPITAL STRUCTURE.

 

The Company (a) is authorized by its charter and applicable law to issue capital
stock of this type; (b) has no issued and outstanding shares of its capital
stock whatever, except as specifically indicated herein, which such shares are
fully paid and non-assessable; (c) does not have authorized, issued or
outstanding any additional subscription, option, warrant, conversion or other
rights to the issuance or receipt of shares of its capital stock; (d) has all
voting rights vested exclusively in the presently issued and outstanding capital
stock; and (e) has outstanding no bonds, debentures or other similar evidences
of indebtedness.

 

6.

OWNERSHIP OF STOCK.

 

All of the issued and outstanding shares of capital stock of the Company are
owned by United Real Estate and the Sellers, United Real Estate and Sellers hold
such stock free and clear of all liens, claims, debts, encumbrances and
assessments, and any and all restrictions as to sale, assignment or
transferability thereof. Sellers have full right, power and authority to sell,
transfer and deliver all of the shares of Stock owned by Sellers and the
certificates therefore, sold hereunder, to Buyer in accordance with the terms of
this Agreement, and otherwise to consummate and close the transaction provided
for in this Agreement in the manner and upon the terms herein specified.

 

7.

TITLE TO ASSETS.

 

The Company has good and marketable title to all of its assets, which good and
marketable title is free and clear of all mortgages, pledges, liens, credit
agreements, title retention agreements, security agreements, taxes, claims,
debts and other obligations and encumbrances.

 

8.

PEACEABLE POSSESSION OF ASSETS.

 

The ownership and possession of all of the assets of the Company have been
peaceable and undisturbed and the title thereto has never been disputed or
questioned to the knowledge of the Company; nor does the Company know of any
facts by reason of which the possession or title thereof by the Company might be
disturbed or questioned or by reason of which any claim to its assets might
arise or be set up adverse to the Company.

 

9.

REGULATORY GOOD STANDING.

 

The Company has all material rights, certificates, authorities, permits,
licenses, franchises and other authorizations necessary to and has complied in
material respects with all laws applicable to, the conduct of its business in
the manner and in the areas in which such business is presently being conducted
and all such certificates, authorities, rights, permits, licenses, franchises
and authorizations are valid, in good standing, in full force and effect, under
no orders of suspension or restraints, and subject to no disciplinary,
probationary or other orders. To the best of its knowledge, the Company has
engaged in no activity whatever which would cause or lead

 

Page 5 of 27

 

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to proceedings involving revocation, suspension, restraint, disciplinary action
or any other action whereby any of such certificates, authorities, rights,
permits, licenses, franchises or authorizations, or any part thereof, might be
canceled, terminated, suspended, impaired, lost or otherwise adversely affected,
and no action or proceeding looking to or contemplating any of the foregoing is
pending or to the Company's knowledge threatened. The foregoing shall not be
deemed to constitute a warranty or representation that the Company has not
heretofore or shall not hereafter suffer to be committed minor and unintentional
violations of any governmental regulations of such nature as not to cause either
suspension or revocation of the Company's operating authority.

 

10.

LITIGATION.

 

The Company is not a party to any pending or to its knowledge threatened suit,
action, proceeding, prosecution or litigation which might materially adversely
affect the financial condition, business, assets, properties, certificates,
rights, authorities, franchises or authorizations of the Company, or materially
interfere therewith, nor to the knowledge of the Company is there any threatened
or pending governmental investigation involving the Company or any of its
operations, including inquiries, citations or complaints by any federal, state
or local administration or agency, which would materially adversely affect the
financial condition, business, assets or properties of the Company; and there
are no outstanding, existing or pending judgments, orders, decrees, rulings,
directives, stipulations or other mandates of any court or any public or
quasi-public agency, body or official which have been in any way violated as
they relate to or affect the Company or any of the Company's properties,
businesses, operations, affairs or activities.

 

11.

DEFAULTS.

 

There are no material defaults on the part of the Company under any contract,
lease, mortgage, pledge, credit agreement, title retention agreement, security
agreement, lien, encumbrance or any other commitment, contract, agreement or
undertaking to which the Company is a party.

 

12.

TAX RETURNS.

 

All tax returns for income taxes, surtaxes, excess profits taxes, franchise
taxes, sales and use taxes, real and personal property taxes and any and all
other taxes to which the Company, or its assets, operations or income may be
subject, due as of the date hereof, have been duly prepared and filed in good
faith and all taxes shown thereon have been paid or are accrued on the books of
the Company.

 

13.

LABOR PROBLEMS.

 

No labor or labor union problems or difficulties, strikes, walk-outs, slow
downs, job actions, boycotts, arbitrations, investigations, litigations or
similar proceedings with respect thereto, are presently existing, suffered,
pending or threatened with respect to the Company, its employees, business
operations, assets or properties.

 

14.

COMPLIANCE WITH LAW.

 

All of the properties, assets and business operations of the Company conform in
material respects with all applicable ordinances, regulations, laws and
statutes, including but not limited to building, zoning, safety, highway and
other such laws, rules, regulations and ordinances.

 

15.

INFRINGEMENTS.

 

The Company has never been charged with infringement or violation of any
adversely held patent, trademark, trade name, or copyright, with claims reading
on operations of the Company or on apparatus or methods employed by the Company
in effecting the same, which would materially adversely affect any operation of
the Company, nor is the Company using or in any way making use of any
confidential information or trade secrets, of any former employer or any present
or past employee of the Company except as a result of the acquisition of the
business of such former employer.

 

Page 6 of 27

 

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16.

TRUTH OF REPRESENTATION.

 

No representation by the Company made in this Agreement and no statement made in
any certificate or schedule furnished in connection with the transaction herein
contemplated contains or will contain any knowingly untrue statement of a
material fact or knowingly omits or will omit to state any material fact
reasonably necessary to make any such representation or any such statement not
misleading to a prospective purchaser of the Stock.

 

D.

CONDITIONS PRECEDENT TO CLOSING

 

This Agreement is subject to Company obtaining a certified audit by a PCAOB
approved Certified Accounting Firm which shall certify as to the fairness of the
Company’s financial statement in accordance Schedule B attached prior to closing
to comply with United States Securities and Exchange Commission requirements.

 

E.

INDEMNIFICATION

 

1.             Sellers and the Company shall indemnify and hold harmless the
Buyer from and against any losses, damages or expenses which may be suffered or
incurred by Buyer arising from or by reason of the inaccuracy of any statement,
representation or warranty of Sellers or the Company made herein, or the failure
of Sellers or the Company to perform any agreement made by them herein. Buyer
shall give Sellers prior written notice of any claim, demand, suit or action
with respect to which indemnity may be sought pursuant to this Section. Sellers,
in every such case, shall have the right at his sole expense and cost to
participate in contesting the validity or the amount of any such claim, demand,
suit or action. In the event Buyer suffers loss, damage or expense and is
entitled to indemnification under this Section, the amount of any such loss,
damage or expense shall be assessed against and shall be paid by Sellers.
Sellers shall have no liability under this Section unless a claim for
indemnification is made by the Buyer prior to the Six (6) month anniversary of
the Closing. Notwithstanding anything herein to the contrary, Sellers shall have
no liability under this Section for any loss, damage, expense or amount suffered
or incurred by Buyer or the Company (a) as a result of any election made by the
Buyer or the Company subsequent to the Closing under Section 338 of the Internal
Revenue Code of 1954, as amended, or (b) which is covered by insurance
maintained by the Company on the Closing Date.

 

2.             The Buyer shall indemnify the Company and Sellers and shall hold
the Company and Sellers harmless, on demand, from and against any losses,
damages or expenses which may be suffered or incurred by the Company or Sellers
arising from or by reason of the inaccuracy of any statement, representation or
warranty of the Buyer made herein or in any document or instrument delivered by
Buyer to Sellers or the Company in connection with the transactions herein
contemplated, or the failure of Buyer to perform any agreement or covenant made
by it herein or in any document or instrument delivered by Buyer to Sellers or
the Company in connection with the transactions herein contemplated.

 

F.

CLOSING

 

The closing under this Agreement (the "Closing") and all deliveries hereunder
shall take place at the office of the Buyer on August 15, 2006 or such other
date as shall be agreed upon by all the parties ("the Closing date").

 

G.

GENERAL PROVISIONS

 

1.

SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS.

 

Unless otherwise expressly provided herein, the representations, warranties,
covenants, indemnities and other agreements herein contained shall be deemed to
be continuing and shall survive the consummation of the transactions
contemplated by this Agreement.

 

 

Page 8 of 27

 

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2.

DILIGENCE.

 

The parties hereto agree that each shall with reasonable diligence proceed to
take all action which may be reasonably required to consummate the transaction
herein contemplated.

 

3.

FURTHER ASSURANCES.

 

Each party hereto agrees to execute such further documents or instruments,
requested by the other party, as may be reasonably necessary or desirable to
effect the purposes of this Agreement and to carry out its provisions, at the
expense of the party requesting the same.

 

4.

ENTIRE AGREEMENT.

 

This Agreement constitutes a complete statement of all the arrangements,
understandings and agreements between the parties, and all prior memoranda and
oral understandings with respect thereto are merged in this Agreement. There are
no representations, warranties, covenants, conditions or other agreements among
the parties except as herein specifically set forth, and none of the parties
hereto shall rely on any statement by or on behalf of the other parties which is
not contained in this Agreement.

 

5.

GOVERNING LAW.

 

Irrespective of the place of execution or performance of this Agreement, it
shall be governed by and construed in accordance with the laws of the State of
Delaware applicable to contracts made and to be performed in the State of
Delaware, and cannot be changed, modified, amended or terminated except in
writing, signed by the parties hereto.

 

6.

BENEFIT AND ASSIGNABILITY.

 

This Agreement shall bind and inure to the benefit of the parties hereto and
their respective legal representatives, successors and assigns, provided,
however, that this Agreement cannot be assigned by any party except by or with
the written consent of the others. Nothing herein expressed or implied is
intended or shall be construed to confer upon or to give any person, firm or
corporation other than the parties hereto and their respective legal
representatives, successors and assigns any rights or benefits under or by
reason of this Agreement.

 

7.

COSTS.

 

The Buyer shall bear all costs and expenses of the transaction.

 

8.

COUNTERPARTS.

 

This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same Agreement.

 

9.

NOTICES.

 

Any notices and other communications under this Agreement shall be in writing
and shall be considered given if delivered personally or mailed by certified
mail to the party, for whom such notice is intended, at the address indicated at
the outset hereof (or at such other address as such party may specify by notice
to the other parties hereto).

 

10.

HEADINGS.

 

The headings in this Agreement are intended solely for convenience of reference
and shall be given no effect in the construction or interpretation of this
Agreement.

 

 

Page 9 of 27

 

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11.

FURTHER ACTION.

 

Any further action required or permitted to be taken under this Agreement,
including giving notices, executing documents, waiving conditions, and agreeing
to amendments or modifications, may be taken on behalf of a party by its Board
of Directors, its President or any other person designated by its Board of
Directors, and when so taken shall be deemed the action of such party.

 

IN WITNESS WHEREOF, the parties hereto have respectively executed this Agreement
the day and year first above written.

 

BUYER

 

WAH KING INVEST CORP.

 

By: /s/ Jerry Gruenbaum_________

Jerry Gruenbaum, CEO

 

SELLERS

 

 

By: /s/ Mr. Gerardus Ronald Steenbergen

Mr. Gerardus Ronald Steenbergen

On behalf of all Sellers by Power of Attorney

 

THE COMPANY

 

BOUWCLUB NEDRLAND B.V.

 

By: /s/ Mr. A.M.M.L. Spaas _____________

Mr. A.M.M.L. Spaas, CEO

 

Page 11 of 27

 

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ANNUAL REPORT 2006 till 30 June 2006

 

of

 

Bouwclub Nederland B.V.

Attention Mr. J. Steenbergen

 

JC Beetslaan 153

2131 AL Hoofddorp

 

 

 

Date: 4 July 2006

 

 

Page 12 of 27

 

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INDEX

page

 

 

Index

2

 

Mission

2

 

Fiscal position

3

 

Balance sheet per: 30 June 2006

4-5

Profit and loss account 2006, January till 30 June

6

 

 

 

Statutory accounting principles

7-8

 

Clarification to balance per 30 June 2006

9-13

 

Specifications of the profit and loss account 2006

14-16

 

 

 

Page 13 of 27

 

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MISSION

 

Dear Mr. J. Steenbergen,

 

According to your mission, I have composed the interim balance sheet and profit
and loss account till 30 June 2006 of your Limited.

 

The interim 2006 figures in this report are composed by me based on your
administration.

 

No accounting audit has been applied for the purpose of giving a statement as
meant in the code of profession and conduct of certified accountants.

 

I have not noticed any shortcoming concerning the interim figures till June
2006.

 

Referring to all information hereafter, I herewith declare that I am willingly
to provide further information.

 

Kind regards,

 

Accountantskantoor J. Vos

 

 

Page 14 of 27

 

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Drs. J. Vos RA

de savornin lohmanlaan 30

1272 HG Huizen

Phone number +31 35 5266116

FISCAL POSITION

 

Taxable amount for fiscal year 2006 till June before company tax fixed
at:   243,452 euro

 

Taxable amount for fiscal year 2005 is:

44,936 euro

 

Compensate loss till 2003 is

(1,374)

Profit 2004

794

 

Profit 2005

45,516

 

------

44,936

======

 

The company tax over the profit of 2005 is 12,145 euro.

 

A provision for 30% company tax has to be made over the profit of 2006.

 

The taxable amount over the 2006 book year can be calculated as follows:

 

Commercial result 2006 before taxes

243,452

 

Add: Costs Oort10% over

pm

 

Deduct: investment

% over

89,624 pm

-------

Financial result

243,452

=======

 

Over the fiscal result, 27% company tax is owed.

 

Prepared to give further information.

 

Kind regards,

 

Accountantskantoor J. Vos

 

Drs. J. Vos RA

de savornin lohmanlaan 30

1272 HG Huizen

Phone number +31 35 5266116

 

Page 15 of 27

 

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Balance sheet per 30 June 2006 of Bouwclub Nederland B.V.

 

ASSETS

 

30 June 2006

31 Dec. 2005

In euro

In euro

 

 

Tangible fixed assets

Inventory

13,993

 

Goods in storehouse

21,008

0

 

Office inventory

33,613

0

 

Internal transport

21,008

0

 

 

__________

__________

 

89,624

0

 

 

==========

==========

 

 

Participation 51% std Beheer BV

131,580

==========

 

 

Receivables

881,028

45,000

Stocks

350,625

0

Debtors

(48,452)

17,913

Long term receivables

13,475

0

 

VAT

273

273

 

Transitory assets

28,760

0

 

 

---------

---------

 

 

1,225,709

63,186

 

=========

=========

 

 

 

Available assets

Cash

26,919

0

 

Banks

3,285

20

 

---------

---------

 

 

30,204

20

 

=========

=========

 

 

 

Total assets

1,477,117

63,206

 

=========

=========

 

 

 

 

Page 16 of 27

 

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Balance sheet per 30 June 2006 of Bouwclub Nederland B.V.

 

LIABILITIES

 

30 June 2006

31 Dec. 2005

In euro

In euro

 

Equity

 

Share capital

18,000

18,000

 

Share premium account

158,700

 

General reserve

32,836

(580)

Result book year

243,452

33,416

 

 

---------

----------

 

 

452,988

50,836

 

 

=========

==========

 

 

Long-term loans

Satellite newspaper

90,000

 

Wah King

330,377

0

 

=========

=========

 

 

Current liabilities

Creditors

337,472

0

 

Receivable invoices

172,436

 

Receivable goods

17,669

 

Loan taxes

32,445

0

 

Social costs

2,149

0

 

VAT

25,534

0

 

Company tax

11,916

12,145

 

Current account

0

0

 

Reservation holiday allowance

0

0

 

Net salaries

(7,937)

0

 

Other liabilities

11,490

0

 

Transitory liabilities

578

225

 

---------

----------

 

 

603,751

12,370

 

 

=========

==========

 

 

Total liabilities

1,477,117

63,206

 

 

=========

==========

 

(0)  (0)

 

Page 17 of 27

 

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PROFIT AND LOSS ACCOUNT 2006, JANUARY TILL 30 JUNE

 

 

2006

2005

 

In euro

In euro

 

Turnover

 

Turnover incl. commissions

1,109,990

45,000

 

Costs of turnover

(588,192)

0

 

 

---------

----------

Margin

521,799

45,000

 

 

Costs

Personnel costs

85,070

0

 

Costs of sale

9,524

0

 

Domestical costs

137,450

0

 

Car costs

25,958

0

 

General costs

19,102

292

 

Depreciations

0

0

 

 

---------

----------

 

277,104

292

 

 

_________

__________

 

244,694

44,708

 

Financial income/expenses

(1,242)

853

 

 

---------

----------

Result before taxes

243,452

45,561

 

Company tax

0

12,145

 

 

---------

----------

Result after taxes

243,452

33,416

 

 

=========

==========

 

 

 

2006

2005

 

In euro

In euro

 

Result

243,452

45,561

 

Costs Oort

0

0

 

 

---------

----------

Financial result

243,452

45,561

 

 

=========

==========

 

 

Page 18 of 27

 

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STATUTORY ACCOUNTING PRINCIPLES

 

BALANCE SHEET

 

Tangible fixed assets

 

The tangible fixed assets are valued against buying price or production price,
reduced with a straight-line depreciation based on the expected economic
lifespan, considering a possible remaining value.

 

Receivables and transitory assets

The receivables are valued against nominal value, if necessary considering
possible irrecoverable debts.

 

Stock

Stock is valued against buying price or production price.

 

Equity

 

Issued capital

 

Issued and fully paid capital is 180 common shares, each 100 euro nominal. This
is 18,000 euros in total.

 

 

 

Other assets and liabilities

 

All other items in the balance sheet are valued against nominal value.

 

 

 

Page 19 of 27

 

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STATUTORY OF RESULT PRINCIPLES

 

The gross margin is the balance of the net sales, purchases and other external
costs. Net sales means the turnover and provision out of supply of goods and
services decreased with price reductions etc. and taxation.

 

The costs are determined considering the earlier mentioned statutory accounting
principles. Profits are accounted for the year in which goods are delivered or
services have been fulfilled. Loss will be determined in the year in which they
can be foreseen.

 

Depreciation is calculated straight-line based on the statutory accounting
principles of mentioned lifetime. Acquisitions during the reporting year will be
depreciated proportionally.

 

Company tax will be calculated based on the result, considering tax free items
and completely or partially non deductible costs. Company tax will be assigned
in accordance her share to the result of normal operations and the extraordinary
result.

 

 

MANPOWER

 

Average number of staff during the reporting year:

 

 

2006

2005

 

 

---------

---------

 

Management

1

1

Employees

7

0

 

---------

---------

 

 

8

1

 

=========

=========

 

Clarification to the balance sheet per 30 June 2006

 

 

Page 20 of 27

 

--------------------------------------------------------------------------------

 

 

Tangible fixed assets

 

Purc val

Begin val

Inv 2006

Deprec.

EB16/6/6

 

in euro

in euro

in euro

in euro

in euro

 

Stock inv.

0

0

21,088

0

21,088

 

Invest. 2006

0

0

13,993

0

13,993

 

INVENTORY

Office inv.

Invest. 2006

0

0

33,613

0

33,613

Transport int.

Invest. 2006

0

0

89,624

0

89,624

 

-------

-------

------

------

------

 

0

0

89,624

0

89,624

 

=======

=======

======

======

======

 

Stocks

Stock Ypma

342,391

0

Stock TV

168,312

0

Stock Far East

39,029

0

Stock Mail Order goods

144,912

0

Stock Schneider

23,505

0

Stock Ras

134,755

0

Stock Lancer

5,316

0

 

 

Stock packaging material

22,808

0

 

-------

-------

 

881,028

0

 

=======

=======

 

Some persons and companies are included in the debtor as well as the creditor
list, as far as it concerns delivering goods.

Their receivables and debts can be off set in order to determine a balance for
paid for stock at date.

 

Common debtors and creditors are:

 

Volume trading

29,212

 

Swiss exchange/Aspen/Argos

181,313

 

Remalux

47

 

Lancer and Wiener Int.

9,829

-------

220,401

=======

 

Stock per 30 June 2006

881,029

 

Deduct: unpaid goods

(220,401)

---------

Paid stock per 30 June 2006

660,628

=======

 

 

Page 21 of 27

 

--------------------------------------------------------------------------------

 

 

Clarification to the balance sheet per 30 June 2006

 

 

Receivables

30 June 2006

31 Dec. 2005

 

In euro

In euro

 

 

Debtors

350,625

45,000

According to debtor list

 

 

Deduct: crediting for doubtful debts

0

0

 

 

--------

--------

 

350,625

45,000

 

 

========

========

 

 

Debtors are valued against nominal value, including a reservation for
irrecoverable debts. At date no necessary reservation needs to be made.

 

 

Page 23 of 27

 

--------------------------------------------------------------------------------

 

 

Clarification to the balance sheet per 30 June 2006

 

 

 

2006

2005

 

Current account

in euro

in euro

 

Cur. acc. Bloemers (to be received) 76,231

Changes in book year

(76,231)

 

 

--------

0

 

Cur. acc. ICBS (to be received)

43,244

 

Cur. acc. J. Steenbergen (to be paid)

(74,897)

 

Cur. acc. R. Steenbergen (to be paid)

(31,047)

 

Cur. acc. J. Greenbaum (to be paid)

(7,522)

Cur. acc. 7th Entertainmentgroup

1,700

 

Cur. acc. 7th Beheer (to be received)

2,057

 

 

Cur. acc. Spaas (to be received)

18,013

17,913

 

Changes net salaries

0

 

 

-------

18,013

 

 

--------

--------

 

Total current account (() = cr)

(48,452)

17,913

 

========

========

 

 

Loan receivable

RGF Meier Mattern

100,000

 

Interest 5% 2005

1,667

 

Interest 5% and changes 2006

(88,192)

--------

13,475

========

 

Transitory assets

Prepaid expenses

28,760

========

 

Available assets

Cash

26,919

0

 

ABN 5234.11.227

150

20

Van Lanschot 2603.97.237

3,136

0

 

--------

--------

 

 

30,205

20

 

========

========

 

 

 

Page 24 of 27

 

--------------------------------------------------------------------------------

 

 

Clarification to the balance sheet per 30 June 2006

 

Issued capital

The shared capital exists of 900 shares of 100 euro each. Issued and fully paid
are 180 shares of 100 euro each.

 

 

28 Feb. 06

31 Dec. 05

In euro

In euro

 

Issued and fully paid capital

Situation per 1/1

18,000

18,000

 

Share premium reserve

158,700

 

---------

----------

 

Situation at date

176,700

18,000

 

 

=========

==========

 

 

 

2006

2005

 

In euro

In euro

General reserve

Begin situation

32,836

(580)

Result book year

243,452

33,416

 

 

----------

----------

 

End situation

276,288

32,836

 

 

==========

==========

 

 

 

 

2006

2005

 

In euro

In euro

Creditors

Creditors stock goods

337,472

0

 

Creditors costs

0

0

 

 

----------

----------

 

337,472

0

 

 

==========

==========

 

Page 25 of 27

 

--------------------------------------------------------------------------------

 

 

Clarification to the balance sheet per 30 June 2006

 

 

30 June 2006

31 Dec. 2005

In euro

In euro

 

Loan taxes

Loan taxes to be paid

35,191

0

 

Paid loan taxes

0

0

 

Loan taxes former years

0

0

 

 

----------

----------

 

35,191

0

 

 

==========

==========

 

 

Social costs

Social costs to be paid

1,161

Paid social costs

0

 

---------

1,161

=========

 

Valued Added Tax

VAT 2005

0

(13)

 

VAT to be paid

117,410

0

 

Advanced book year

(77,905)

0

 

Paid in book year

(13,425)

0

 

VAT former years

(273)

(260)

 

 

----------

---------

 

 

25,807

(273)

 

==========

=========

 

 

 

Company tax

Paid company tax 2005

(229)

0

 

Company tax 2005

12,145

12,145

 

 

----------

---------

 

11,916

12,145

 

 

==========

=========

 

 

 

Page 26 of 27

 

--------------------------------------------------------------------------------

 

 

Clarification to the balance sheet per 30 June 2006

 

 

30 June 06

31 Dec. 05

In euro

In euro

 

 

Reservation holiday allowance

0

==========

 

Net salaries

Salaries other help

(18.749)

Net salary June

10.812

 

vs. catering

0

 

----------

(7.937)

==========

 

 

Transitory liabilities

Other debts

0

 

Work 3rd parties

353

0

 

Accounting costs

0

225

 

Transitory items

225

0

 

 

----------

---------

 

578

225

 

 

==========

=========

 

 

 

Page 27 of 27

 

--------------------------------------------------------------------------------

 

 

Specifications to profit and loss account 2006 till 30 June 2006

 

 

2006

2005

 

in euro

in euro

Turnover

Turnover Ypma

389,613

0

 

Turnover TV

4,564

0

 

Turnover VO

160

45,000

Turnover Mail Order

542,392

0

 

Turnover Tronex

51,734

0

 

Turnover bakker

201

0

 

Turnover Schneider

9,110

0

 

Turnover ras

15,296

0

 

Turnover volume

36,564

0

 

Turnover Lancer

855

0

 

Turnover hdf

31,790

0

 

Turnover clickclac

978

0

 

Turnover div beverwijk

11,215

0

 

Other revenues

15,143

0

 

Proceeds commissions

375

0

 

Proceeds packaging work

0

0

 

 

---------

--------

 

 

1.109.990

45.000

 

 

=========

========

 

 

 

Costs related to turnover

Cost price turnover Ypma

117,000

0

 

Cost price turnover high

50,969

0

Cost price turnover VO

3,182

0

 

Cost price turnover Mail Order

167,518

0

 

Purchase high

16,844

0

Foreign purchase

39,819

0

Commission

3,358

0

 

Other purchase

100,199

0

 

Direct costs (freight)

89,303

0

 

---------

--------

 

 

588,192

0

 

 

=========

========

 

 

 

Page 28 of 27

 

--------------------------------------------------------------------------------

 

 

 

Specifications to profit and loss account 2006

 

 

2006

2005

 

In euro

In euro

Costs of personnel

Salaries

68,429

 

Provision holiday allowance

4,078

 

Social costs

8,893

 

Allowance health insurance

3,383

 

Provision health insurance

(3,383)

Other costs of personnel

3,670

 

----------

85,070

==========

Other help

0

==========

 

Domestical costs

Rent

130,076

 

G/L/W

3,209

Costs of maintenance

3,138

Other domestical costs

1,027

----------

137,450

==========

 

Car costs

Fuel

11,674

0

 

Maintenance/reparation/rent

14,284

0

 

<MTB>

0

0

 

Insurance

0

0

 

VAT private use

0

0

 

Private use van

0

0

 

 

----------

--------

 

25,958

0

 

 

==========

========

 

 

Page 29 of 27

 

--------------------------------------------------------------------------------

 

 

2006

2005

 

In euro

In euro

 

General costs

Office supplies

3,635

67

 

Subscriptions

299

0

Internet

215

0

Phones

3,414

0

 

Printing materials

4,825

0

 

Catering

4,738

0

 

Assurances

116

0

Cost of administration

0

225

 

Start up costs and other costs

1,860

0

 

 

----------

--------

 

 

19,102

292

 

 

==========

========

 

 

Costs of sale

Costs of sale

9,524

0

 

 

==========

========

 

 

Financial income and expenses

Interest and costs bank

1,242

0

 

Interest cur. acc. management

0

853

 

Interest in taxes

0

0

Interest revenue loan receivable

0

0

 

----------

--------

 

 

1,242

853

 

 

==========

========

 

 

 

 

 

Page 30 of 27