Schedule A to Stock Acquisition-Distribution Agreement Between Redwood Securities Group, Inc. and Global Medical Products Holdings, Inc.

Summary

This document outlines the calculation of the estimated value of Redwood Securities Group, Inc. stock dividends to be distributed to shareholders of Global Medical Products Holdings, Inc. It details the percentage ownership of Class A and Class B stock, the method for determining market capitalization, and the allocation of value between preferred and common shareholders. The estimated total value of the stock dividend to Global Medical Products Holdings, Inc. shareholders is $3.67 million, based on specified ownership percentages and revenue estimates.

EX-10.3 5 global_8kex10-3.txt EXHIBIT 10.3 SCHEDULE A Potential Value of Redwood Securities Group, Inc. Stock Dividend to Global Medical Products Holdings, Inc. Shareholders --------------------------------------------------- 1. Determination of Dividend Ownership 51% x 1.50 = 91.8 (percentage ownership of Class A stock, post 1.50 conversion right)(2) 49% x 1.00 = 49.0 (percentage ownership of Class B stock) ------ Total 140.8 91.8 divided by 140.8 = 65.2% (Class A stock, % of Total Enterprise Value) 49.0 divided by 140.8 = 34.8% (Class B stock, % of Total Enterprise Value) 2. Market Price Capitalization 4.55 (Sales/Price Ratio)(3 x $6.5M (estimated current revenue based on FY2003, including estimated revenue from new Los Angeles office, formerly Morgan Stanley, 8 brokers x $150,000 in annual revenue production) ($5.3M + $1.2M = 6.5M) = $29.575M 3. Attributed Value Allocation: Class A vs. Class B $29.575M x 65.2% = $19.28M $29.575M x 34.8% = $10.29M 4. Value of Global Medical Products Holdings, Inc. Stock Distribution Class A stock: 12%, Redwood's ownership to be distributed to Global Medical Products Holdings, Inc. Preferred Shareholders: (4) $19.28M x 12% = $2.13M Class B stock: 15%, Redwood's ownership to be distributed to Global Medical Products Holdings, Inc. Common Shareholders:(5) $10.29M x 15% = $1.54M Estimated Total Value of Redwood Securities Group, Inc. stock dividend to Global Medical Products Holdings, Inc. Shareholders: $2.13M + $1.54M = $3.67M - ------------ (2) See Paragraph 4 c. of the Stock Acquisition-Distribution Agreement Between Redwood Securities Group, Inc. and Global Medical Products Holdings, Inc. (3) Refer to Yahoo Finance website. , http://biz.yahoo.com/p/brokerconameu.html. This data was accessed on 12/27/2003. (4) See Paragraph 4 e. of the Stock Acquisition-Distribution Agreement Between Redwood Securities Group, Inc. and Global Medical Products Holdings, Inc. (5) See Paragraph 4 f. of the Stock Acquisition-Distribution Agreement Between Redwood Securities Group, Inc. and Global Medical Products Holdings, Inc.