|EXHIBIT 10-7
|------------

|June
19, 2003

Joseph P. Garrity1414 Avenue of the AmericasNew York, New York  10019



Re: Employment
Agreement



Dear Mr. Garrity:


I refer you to your Employment Agreement dated as of January 1, 2002 with 4Kids Entertainment Licensing,
Inc. ("Employer").


This
letter confirms that Employer and you have agreed to amend the Employment Agreement by
deleting Subparagraph 10(f)(ii) in its entirety and substituting for such Subparagraph the
following revised Subparagraph 10(f)(ii):
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) For purposes of this Agreement, a Change of Control shall be deemed to have
                    occurred if (x) Alfred R. Kahn is not the Chairman and CEO of 4Kids and a
                    majority of directors of 4Kids do not consist of Continuing Directors (as
                    defined below), or (y) there has been a corporate transaction (whether in the
                    form of a sale or transfer of the majority of the stock, a merger, a sale of
                    substantially all of the assets, a reorganization or a restructuring) involving
                    4Kids except for a transaction in which 4Kids or subsidiaries is the acquirer
                    and Alfred R. Kahn remains Chairman or CEO of 4Kids. For purposes of this
                    Agreement, Continuing Directors shall mean individuals who constitute the Board
                    of Directors of 4Kids as of May 23, 2003 and any new director (s) whose election
                    by the Board of Directors of 4Kids or nomination for election by the
                    shareholders of 4Kids was approved by a vote of at least 2/3 of the directors
                    that are then in office who are Continuing Directors.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Except
as expressly amended herein, the Employment Agreement is hereby ratified and confirmed in
all respects and shall remain in full force and effect in accordance with its terms.
Capitalized terms not otherwise defined herein shall have the meanings set forth in the
Employment Agreement.




Please
confirm that the foregoing satisfactorily sets forth our understanding by signing the
enclosed copy of this letter of amendment where indicated below.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Sincerely
yours, 4Kids Entertainment Licensing, Inc.    
| | --------------------------------------------------------
| | By:
/s/ Samuel R. Newborn
             Samuel R. Newborn



|Agreed to and Accepted:



By:/s/ Joseph P. Garrity    
                  Joseph P. Garrity
|-------------------------------------------------------------------------------------------