Compliance Assessment Report Jie Cai Plastic Toys Manufacturing Ltd (L-526) Audited on August 16, 2011 Page 1 of 11 NBCUniversal Confidential Report Date: August 19, 2011 Audit Date: August 16, 2011 Factory ID number: L-526 From: Jane Zeng/URS Consulting (Shanghai) Ltd. Cc: Parul Chandra/NBCUniversal Karen Tiongson/NBCUniversal Susan Feder/NBCUniversal Sophie Zhao/NBCUniversal Subject: Summary of Findings - Supplier EHS Audit J Audit type: Initial Audit This report summarizes the findings of the Environment, Health and Safety (EHS) Audit conducted at the facility of Plastic Toys Manufacturing Ltd located at the Sixth Building, Bao Ma Road, Shui Bian Village, Heng Li Town, Dongguan City, Guangdong Province, Peoples Republic of China. The findings of the EHS Reviews were based upon a review of the documents furnished by Jie Cai Plastic Toys Manufacturing Ltd and the observations obtained by URS Consulting (Shanghai) Ltd. on behalf of NBCUniversal during the site visit on August 16, 2011. For the purpose of this audit, the facility of Jie Cai Plastic Toys Manufacturing Ltd is referred to as the Site in this report. Guidance: The Compliance Assessment Report summarizes the Site audit findings and includes a corrective, and preventative action plan that both the Auditor and the Site Manager believe is reasonable to ensure conformity with the country specific and local laws. NBCUniversal (NBCU) upholds a worldwide reputation for integrity and high standards of business conduct. NBCU Supplier Relationship Policy requires that we source only from suppliers who comply with local laws and any applicable NBCU standards in such areas as labour, environment, health and safety. In order to ensure compliance with applicable laws and company policies please provide evidence of closure on all open red findings within 90 days from receipt of report. If you have any questions about the memorandum please contact the following persons: Ms. Karen Tiongson / NBCUniversal , and Ms. Jane Zeng/URS Consulting (Shanghai) Ltd. , on behalf of NBCUniversal. Compliance Assessment Report Jie Cai Plastic Toys Manufacturing Ltd (L-526) Audited on August 16, 2011 Page 2 of 11 NBCUniversal Confidential Supplier General Information Licensee/Vendor Company Name Medicom Toy Corp License/Vendor Company Contact Name/Email Waivers from Government None Certifications received from Government or other Companies. None Principal Products Manufactured Plastic Toys Annual Output of Products Approximately 2,000,000 pieces per year Major Customers Medicom, Kidrobot and NBCUniversal Production Process Injection Molding, Rotocasting, Painting, Printing and Packing Factory Normal Working Days and Normal Work Hours Five days a week Painting and Printing: one shift a day (7:4511:45, 13:4517:45) Packing and Office: one shift a day (8:0012:00, 14:0018:00) Departments that run more then one shift Injection molding: three shifts a day (8:0016:00, 16:0024:00, 24:008:00) Rotocasting: two shifts a day (8:0016:00, 16:0024:00) Peak Production Months None Number of Production Buildings Two production buildings (Building A and Building B) Compliance Assessment Report Jie Cai Plastic Toys Manufacturing Ltd (L-526) Audited on August 16, 2011 Page 3 of 11 NBCUniversal Confidential Canteen/Cafeteria Services The Site has two canteens which are separately located on the first floor of earch dormitory building Dormitories Two dormitory buildings (Dormitory A and Dormitory B) Security The Site has 20 full-time security persons working 24 hours a day in 2 shifts. Overall findings In view of findings raised, non compliances were observed in workshops, air compressor room and lubricating oil storage area. Details of the findings are listed below. For all other areas, no violations or non compliances were noted. Findings Total Findings Black Flags - 0 Red Flags - 2 Yellow Flags - 11 Permits - the following government documents and permits were provided for review. 1. Safety Training Certificates (Mr.Wu Haoming and Mr. Zhong Nanfang), issued in 2008 and 2009 2. Environmental Impact Assessment (EIA) and its approval, 2008 3. Environmental Impact Assessment (EIA) and its approval, 2010 4. Environmental Protection Check and Acceptances (EPCA) and its