Document:

Creating
      Our Future ... Today

    

    
      	
              EMPLOYEE
                AGREEMENT

            	
              Page
                1 of 
                11

            

    

    

    Employment
      Agreement made effective as of the date of signing, by and between Smart Kids
      Group Inc. a Florida corporation, with principal offices in Ft Lauderdale,
      Florida, USA ("Company"), and Paul A. Ruppanner, residing in Santa Fe, New
      Mexico ("Employee").

     

    In
      consideration of the promises and mutual covenants herein set forth, the Company
      and the Employee agree as follows:

    

    ARTICLE
      1: EMPLOYMENT TERMS

     

    Section
      1.1. Employment and Term.
      

    The
      Company hereby employs the Employee, and the Employee accepts such employment,
      upon the terms and conditions hereinafter set forth, for the period ("Employment
      Term") commencing on and as of the date of this contract signing hereunder
      and
      terminating as provided in Section 1.7 hereof.

     

    Section
      1.2. Employment Services.
      

    The
      Employee shall devote appropriate working time and effort to promote the
      business and affairs of the Company and its Affiliates as necessary in order
      to
      enable them to achieve their business objectives. The Employee's principal
      assignment shall be to serve as President and CEO, reporting to the Board of
      Directors of Smart Kids Group Inc. In this capacity as an executive of the
      company, the Employee shall be responsible for and shall also perform other
      duties and assignments, which are consistent with his responsibilities, which
      may be reasonably assigned to him from time to time by the Board of Directors.
      Nothing in this Section (1.2) shall be deemed to prevent the Employee from:
      

    

    
      	 	
              A.

            	
              Investing
                his assets in a manner not prohibited by Section 2.5 hereof, and
                in such
                form or manner as shall not require any material services on his
                part in
                the operations or affairs of the companies or other entities in which
                such
                investments are made; 

            

    

    

    
      	 	
              B.

            	
              Serving
                on the board of directors of any other company, subject to the
                prohibitions set forth in Section 2.5 hereof, provided the Board
                of
                Directors of the Company shall have approved such service in writing,
                or;
                

            

    

    

    
      	
            	C.	
              Engaging
                in religious, charitable or other community or non-profit activities,
                which do not impair his ability to fulfill his duties and responsibilities
                under this Agreement.

            

    

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

    Creating
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              EMPLOYEE
                AGREEMENT

            	
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    Section
      1.3. Employment Compensation.

    

    
      	 	
              A.

            	
              Base
                Salary - For
                services rendered by the Employee under this Agreement, the Company
                shall
                pay the Employee an initial annual salary of $100,000.00 (US) per
                annum,
                payable in equal monthly installments (the "Base Salary") escalating
                to
                $120,000.00 (US) per annum when business cash flow permits and with
                the
                approval of the Board of Directors. Base Salary will be subject to
                annual
                review by the Board of Directors of the Company on or about each
                January 1 thereafter for so long as this Agreement is in
                effect.

            

    

    

    
      	 	
              B.

            	
              Incentive
                Bonus Compensation - For
                services rendered by the Employee under this Agreement, the Company,
                by
                action of the Board of Directors, shall establish an annual executive
                incentive bonus plan in which the Employee shall participate in
                recognition of the Employee's contribution to the overall performance
                of
                the Company (“Bonus”). Such Bonus shall be granted within ninety (90) days
                following the conclusion of each calendar year commencing December
                31,
                2005, after assessment of the Employee’s and Company’s performance
                pursuant to the criteria, terms and conditions of the bonus plan.
                The
                amount of any Bonus, which the Company may grant to the Employee
                from time
                to time shall be in addition to his Base Salary and shall, under
                no
                circumstances, be included in the Employee's Base
                Salary.

            

    

    

    Section
      1.4. Other Compensation: Benefits.
      

    The
      Employee will participate in stock option plans or employee benefit programs
      provided by the Company and its Subsidiaries, if any.

    

    Section
      1.5. Withholding.
      

    The
      amount of payments to be made by the Company to the Employee are set forth
      herein prior to the deduction of any taxes or other amounts, and all such
      payments shall be made by the Company to the Employee under this Agreement
      net
      of any tax or other amounts required to be withheld by the Company under
      applicable law.

    

    Section
      1.6. Vacation.
      

    The
      Employee shall be entitled to vacation and holiday plans under the same terms
      and considerations, as they are available to all Company employees, in
      accordance with Company policy.

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

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    Section
      1.7. 

    Employment
      Term; Termination The
      Employment Term shall run indefinitely, unless terminated pursuant to the
      following provisions of this Section 1.7.

    

    
      	 	
              A.

            	
              “The
                Employment Term”
                shall terminate:

            

    

    
      	 	
              1.

            	
              At
                the death or 60 days after the Permanent Disability (as hereinafter
                defined) of the Employee

            

    

    
      	 	
              2.

            	
              Immediately
                at the election of the Company, for Cause (as hereinafter defined),
                or;

            

    

    
      	 	
              3.

            	
              At
                the election of the Company for Cause or the Employee upon thirty
                (30)
                days' prior written notice to the
                other.

            

    

    

    
      	 	
              B.

            	
              “Permanent
                Disability”,
                for purposes of this Section 1.7, shall mean any physical or mental
                incapacitation which would materially hinder the Employee from performing
                the responsibilities of his assigned duties, as determined by a medical
                professional of the company’s
                choosing.

            

    

    

    
      	 	
              C.

            	
              “Cause",
                for purposes of this Section 1.7, shall mean any of the following,
                as
                determined by the management of The Company:

            

    

    
      	 	
              1.

            	
              Refusal
                of the Employee to perform his duties hereunder or other material
                breach
                by the Employee of the terms of this Agreement;

            

    

    
      	 	
              2.

            	
              Any
                substantial dishonesty by the Employee in connection with the performance
                of his duties hereunder; or 

            

    

    
      	 	
              3.

            	
              Any
                conviction of, or plea of guilty by, the Employee with respect to
                any
                crime, which conviction or plea is likely in the reasonable judgment
                of
                the management of the Company to adversely affect the Employee's
                professional reputation, the reputation of the Company or of any
                other
                member of the Group or the ability of the Employee to perform his
                duties
                satisfactorily hereunder.

            

    

    
      	 	
              4.

            	
              Any
                detrimental business conduct that negatively affects the Company’s
                business or the work of peers. 

            

    

    
      	 	
              5.

            	
              The
                Company's right of termination pursuant to this Section 1.7 shall
                be in
                addition to, and shall not affect, its rights and remedies under
                any other
                provisions of this Agreement or under applicable law, and all such
                rights
                and remedies shall survive termination of this Agreement and the
                employment of the Employee hereunder. Nothing herein shall be deemed
                to
                constitute a waiver by the Employee of any rights he may have under
                applicable laws.

            

    

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

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              6.

            	
              In
                the event of termination of employment pursuant to the terms of this
                Section 1.7, the Employee shall have no right to receive any compensation
                or fees for any period subsequent to the date of such termination;
                except
                that:

            

    

    

    
      	 	
              a)

            	
              In
                the event such termination is due to death or Permanent Disability
                pursuant to Section 1.7 the Company shall pay the Employee or his
                estate,
                as the case may be, a pro tanto portion of the Bonus, if any, for
                the year
                in which such termination occurs, a special 90 ninety day bonus severance,
                and vesting of the current year’s stock options, if
                any;

            

    

    

    
      	 	
              b)

            	
              In
                the event that such termination is made by the Company pursuant to
                Section
                1.7 hereof, the Company agrees that during the Severance Period (as
                such
                term is defined below) it will continue to pay the Employee his then
                current Base Salary.

            

    

    

    
      	 	
              c)

            	
              In
                the event that such termination is made by the Company pursuant to
                Section
                1.7 hereof, the Company agrees to grant all stock options that are
                vested.

            

    

    

    
      	 	
              D.

            	
              “Severance
                Period”,
                for purposes of this Section 1.7, shall mean the period commencing
                on the
                date of such termination and ending: thirty (30) calendar days
                thereafter.

            

    

    

    
      	 	
              E.

            	
              “The
                Obligations”
                of
                the Employee pursuant to Sections 2.3 and 2.4 of this Agreement shall
                survive the termination for any reason of the Employment Term. The
                obligations of the Employee pursuant to Section 2.5 hereof shall
                survive
                the termination of this Agreement as provided for in Section
                2.5.

            

    

    

    ARTICLE
      2: GENERAL PROVISIONS

     

    Section
      2.1. 

    Expense
      Account and Allowance.
      The
      Company agrees to provide the Employee a monthly advance expense payment of
      $1,000 (US) to cover general personal operating expenses such as communications
      services, internet services, office supplies, shipping, etc. The Company agrees
      to reimburse the Employee for all reasonable travel, entertainment and other
      documented, itemized business expenses in excess of the $above $1,000 monthly
      payment, incurred by him in connection with the performance of his duties under
      this Agreement; provided, however, that the amount available for such travel,
      entertainment, and other business expenses shall be consistent with expense
      reimbursement policies adopted by the Company as in effect at the time of the
      incidence of such expenses by the Employee or as may be fixed in advance by
      the
      Company’s Board of Directors.

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

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    Section
      2.2. 

    Location.
      The
      Employee shall perform services under this Agreement at the Employee’s private
      office and at such other location or locations reasonably specified by the
      Company. The Employee shall also make himself available to make reasonable
      business trips at the Company's expense for purposes of consulting with
      customers, agents, representatives and suppliers of the Company and its
      Affiliates, as well as with other members of the Company's
      management.

    

    Section
      2.3. 

    Confidential
      Information Sensitive 

    Company
      data and information is the property of the Company, and must be
      protected:

    

    
      	 	
              A.

            	
              The
                Employee hereby agrees to hold and maintain confidential and private
                all
                papers, plans, drawings, specifications, methods, processes, techniques,
                shop practices, formulae, customer lists, personnel and financial
                data,
                plans, trade secrets and all proprietary information belonging to
                the
                Company or any Affiliate thereof of which the Employee may have knowledge
                or acquire knowledge whether prior to, during or after the termination
                of
                the Employment Term, and to maintain as confidential and secret any
                new
                processes, formulations, designs, devices, research data, machines
                or
                compositions of matter of the Company or of any of its Affiliates
                or of
                any persons granting rights to the Company or any of its Affiliates
                revealed to the Employee or discovered, originated, made or conceived
                by
                the Employee in connection with the furnishing of employment and
                consulting services to the Company or any of its Affiliates.
                

            

    

    

    
      	 	
              B.

            	
              The
                Employee hereby agrees that he shall not at any time, either during
                or
                subsequent to the Employment Term, disclose or divulge to any person,
                other than to the Company's or any of its Affiliates' officers and
                other
                employees as required by the Employee's duties under this Agreement
                and to
                third parties when required in the ordinary course of business of
                the
                Company, any of the information specified in Section 2.4(a) above
                or any
                trade or business secrets or any other confidential information belonging
                to the Company or any of its Affiliates of which the Employee may
                have or
                acquire knowledge. Notwithstanding anything to the contrary set forth
                above, the confidentiality and nondisclosure provisions contained
                in this
                Section 2.4 shall not apply to any information or data, if and when
                such
                information or data becomes a matter of public knowledge through
                no act or
                omission of the Employee or to any information or data which was
                already
                known by the Employee or the other party in question other than as
                a
                result of a breach of this Agreement.

            

    

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

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              C.

            	
              Immediately
                upon the Company's request or promptly upon termination for any reason
                or
                expiration of this Agreement, the Employee shall deliver to the Company
                all memoranda, notes, records, reports, photographs, drawings, plans,
                papers or other documents made or compiled by the Employee in the
                course
                of his services to the Company or any of its Affiliates or made available
                to the Employee during the course of his services to the Company
                or any of
                its Affiliates which are in the possession of or under the control
                of the
                Employee, and any copies or abstracts thereof, whether or not of
                a secret
                or confidential nature, and all of such memoranda or other documents
                shall, during and after the termination of the Employment Term, be
                deemed
                to be and shall be the property of the
                Company.

            

    

    

    Section
      2.4. Intellectual Property.
      

    Intellectual
      property is the property of the Company, and must be protected:

    

    
      	 	
              A.

            	
              Any
                and all inventions, improvements, ideas and innovations, whether
                or not
                patentable, which the Employee may invent, discover, originate, make
                or
                conceive during his services to the Company or any of its Affiliates,
                whether prior to or during the Employment Term, either solely or
                jointly
                with others, and which in any way relate to or are or may be used
                in
                connection with the business of the Company or any of its Affiliates
                shall
                be, to the extent of the Employee's interest therein, the sole and
                exclusive property of the Company or such Affiliate and the Employee's
                interest therein shall be assigned by the Employee to the Company
                or such
                Affiliate, as the case may be, or to the Company's or such Affiliate's
                nominee(s). The Employee, upon the request and at the expense of
                the
                Company, shall and shall use his best efforts to cause any such other
                person(s) to promptly and fully disclose each and all such discoveries,
                inventions, improvements, ideas or innovations to the Company, the
                applicable Affiliate or any nominee(s) thereof. Further, the Employee,
                upon the request and at the expense of the Company, shall and shall
                use
                his best efforts to cause any such other person(s) to, assign to
                the
                Company or the applicable Affiliate, without further compensation
                therefore, all right, title and interest in and to each and all such
                discoveries, inventions, improvements, ideas or innovations which
                are
                reduced to writings, drawings or practice within two (2) years after
                the
                termination of the Employment Term.

            

    

     

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

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              EMPLOYEE
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              B.

            	
              The
                Employee further agrees to execute at any time, upon the request
                and at
                the expense of the Company, for the benefit of the Company, any of
                its
                Affiliates or any nominee(s) thereof, any and all appropriate
                applications, instruments, assignments and other documents, which
                the
                Company shall deem necessary or desirable to protect its (or any
                of its
                Affiliate's) entire right, title and interest in and to any of the
                discoveries, inventions, improvements, ideas and innovations described
                in
                Section 2.5(a) hereof: 

            

    

    

    
      	 	
              C.

            	
              The
                Employee agrees, upon the request and at the expense of the Company
                or any
                person to whom the Company or any of its Affiliates may have granted
                or
                grants rights, to execute any and all appropriate applications,
                assignments, instruments and papers, which the Company shall deem
                necessary for the procurement in the United States of America and
                foreign
                countries of patent protection for the discoveries, inventions,
                improvements, ideas or innovations to be so assigned, including the
                execution of new, provisional, continuing and reissue applications,
                to
                make all rightful oaths, to testify in any proceeding before any
                governmental authority authorized to grant or administer patent protection
                or before any court, and generally to do everything lawfully possible
                to
                aid the Company, its Affiliates and its and their successors, assigns
                and
                nominees to obtain, enjoy and enforce proper patent protection for
                the
                discoveries, inventions, improvements, ideas or innovations conceived
                or
                made by him during the course of his services to the Company or any
                of its
                Affiliates for a period of two (2) years after the termination of
                the
                Employment Term.

            

    

     

    Section
      2.5. Non-competition.
      

    The
      Company and the Employee acknowledge that the Company and its Affiliates conduct
      business throughout the world and the engagement by the Employee in directly
      Competitive Industries anywhere in the United States of America or Canada could
      cause the Company irreparable harm. For the period commencing on the date hereof
      and ending two (2) years after the termination of the Employment Term (the
      "Restricted Period"), the Employee shall not: 

     

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

    
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              EMPLOYEE
                AGREEMENT

            	
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              A.

            	
              Except
                as an officer and director of the Company and its Affiliates, utilize
                intellectual property or trade secrets, gained from the Company,
                which is
                an asset of the Company, to engage at any place within the United
                States
                of America or Canada in any business substantially similar to the
                business
                then being conducted by the Company or its Affiliates (the "Designated
                Industry"), whether directly or indirectly, for his own account or
                as an
                employee, partner, officer, director, consultant or holder of more
                than
                five percent (5%) of the equity interest in any other person, firm,
                partnership or corporation

            

    

    

    
      	 	
              B.

            	
              Divert
                to any competitor of the Company or its Affiliates any customer of
                the
                Company or its Affiliates, or 

            

    

    

    
      	 	
              C.

            	
              Solicit
                or encourage any officer, key employee or consultant of the Company
                or its
                Affiliates to leave its or their employ for alternative employment
                in the
                Designated Industry, or hire or offer for employment to any person
                to whom
                the Company or any of its Affiliates has offered employment within
                the
                three (3) years preceding the termination of the Employment Term.
                The
                Employee will continue to be bound by the terms of this Section 2.5
                until
                their expiration and shall not be entitled to any compensation with
                respect thereto.

            

    

    

    Section
      2.6. Severability.
      

    If
      any
      provision of this Agreement shall, in whole or in part, prove to be invalid
      for
      any reason, such invalidity shall affect only the portion of such provision
      which shall be invalid, and in all other respects this Agreement shall stand
      as
      if such invalid provision, or other invalid portion thereof, had not been a
      part
      hereof. Without limiting the generality of the preceding sentence, if any
      provision of Section 2.6 hereof shall be held to be invalid or unenforceable
      under any applicable law, as unreasonably restrictive in duration or
      geographical area or otherwise, it is the intention of the parties hereto that
      such provision shall be deemed to be immediately amended to provide for such
      maximum restriction as shall be determined to be reasonable and enforceable
      by
      the court or other body having jurisdiction; and the Company and the Employee
      expressly agree that such provision, as so amended, shall be valid and
      binding.

    

    Section
      2.7. 

    Equitable
      Remedies.
      Each of
      the parties hereto acknowledges and agrees that upon any breach by the Employee
      of his obligations under Section 2.3, 2.4 or 2.5 hereof, the Company will have
      no adequate remedy at law, and accordingly will be entitled to specific
      performance and other appropriate injunctive and equitable relief.

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

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              EMPLOYEE
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    Section
      2.8. 

    Assignment.
      The
      rights and obligations of the Company under this Agreement shall inure to the
      benefit of and shall be binding upon the successors and assigns of the Company,
      provided that neither this Agreement nor the rights and obligations of the
      Company under this Agreement may be assigned by the Company other than to an
      Affiliate of the Company. The Employee may not assign to any other person his
      rights and/or obligations under this Agreement.

    

    Section
      2.9. 

    Amendment.
      This
      Agreement and any term, covenant, condition or other provision hereof may be
      changed, waived, discharged or terminated solely by an instrument in writing
      signed by the parties hereto.

    

    Section
      2.10.
      

    Waiver
      of Breach.
      The
      waiver by the Company of a breach of any provision of this Agreement by the
      Employee shall not operate or be construed as a waiver of any other breach
      by
      the Employee.

    

    Section
      2.11. 

    Notices.
      All
      notices, requests, demands, consents and other communications in connection
      with
      this Agreement shall be in writing or by written telecommunication and shall
      be
      delivered personally or mailed as follows: by registered or certified mail
      or by
      overnight courier, postage prepaid, or sent by written telecommunication to
      the
      addresses of record, or, at such other address as the parties hereto may from
      time to time designate in writing.

     

    Section
      2.12. 

    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      Florida, US.

    

    Section
      2.13. 

    Arbitration
      of Disputes.
      Any
      controversy or claim arising out of or relating to this Agreement or the breach
      thereof shall be settled by arbitration in accordance with the laws of Florida
      by two arbitrators, one of whom shall be appointed by the Company, one of whom
      shall be appointed by the Employee and if agreement cannot be reached, by a
      third arbitrator which shall be appointed by agreement of the first two
      arbitrators. Such arbitration shall be conducted in Florida in accordance with
      the rules of the prevailing Arbitration Association, except with respect to
      the
      selection of arbitrators which shall be as provided in this Section 2.13.
      Judgment upon the award rendered by the arbitrators may be entered in any court
      having jurisdiction thereof. All fees and expenses of the arbitration process
      shall be borne equally by the parties hereto regardless of the final outcome,
      unless and to the extent the arbitrators shall determine that under the
      circumstances the sharing of all or a part of any such fees and expenses would
      be unjust.

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

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    Section
      2.14. 

    Entire
      Agreement.
      This
      Agreement embodies the entire agreement between the Company and the Employee
      relating to the subject matter hereof, and, except as otherwise expressly
      provided herein, this Agreement shall not be affected by reference to any other
      document.

    

    Section
      2.15. 

    Headings,
      Etc.
      The
      headings of the sections of this Agreement have been inserted for convenience
      of
      reference only and shall not be deemed to be a part of this
      Agreement.

    

    Section
      2.16.
      

    Counterparts.
      This
      Agreement may be executed in several identical counterparts, each of which
      when
      executed by the parties hereto and delivered shall be an original, but all
      of
      which together shall constitute a single instrument. In making proof of this
      Agreement, it shall not be necessary to produce or account for more than one
      such counterpart.

     

    Section
      2.17.
      

    Additional
      Defined Terms:
      

    

    
      	 	
              A.

            	
              “Affiliate"
                means any person, corporation or other business entity that directly
                or
                indirectly controls, or is controlled by, or is under common control
                with
                another person, corporation or business
                entity.

            

    

    
      	 	
              B.

            	
              ”Subsidiary"
                means any corporation fifty percent (50%) or more of the capital
                stock of
                which having ordinary voting power for the election of directors
                is owned
                directly or indirectly by another corporation or business
                entity.

            

    

     

    *****************************************************************************************************

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of this written
      date: August 1, 2005.

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      

    

     Creating
      Our Future ... Today

     

      	
              EMPLOYEE
                AGREEMENT

            	
              Page
                11 of 
                11

            

    

    

    Accepted
      and Agreed to:

    

    
      	
              Employee
                Signature: 

            	
              

            
	 	 
	
              Employee
                Name: 

            	
              Paul
                A. Ruppanner

            
	 	 
	
              Company
                Officer Signature: 

            	
              

            
	 	 
	
              Company
                Officer Name: 

            	
              Richard
                Shergold

            

    

    

    Employee
      Initials _PAR___

    Company
      Initials _RS___Smart
      Kids Group Inc.

    

    Employment
      Agreement

    

    Employment
      Agreement made effective as of the date of signing, by and between Smart Kids
      Group Inc. a Florida corporation, with principal offices in Ft Lauderdale,
      Florida, USA ("Company"), and Lisa Yakiwchuk, TKS Administration Services
      residing in Edmonton, Alberta, Canada ("Employee/Employer").

     

    In
      consideration of the promises and mutual covenants herein set forth, the Company
      and the Employee agree as follows:

    

    ARTICLE
      1: EMPLOYMENT TERMS

     

    Section
      1.1. Employment and Term.
      The
      Company hereby employs the Employee, and the Employee accepts such employment,
      upon the terms and conditions hereinafter set forth, for the period ("Employment
      Term") commencing on and as of the date of this contract signing hereunder
      and
      terminating as provided in Section 1.7 hereof.

     

    Section
      1.2. Employment Services.
      The
      Employee shall devote appropriate working time and effort to promote the
      business and affairs of the Company and its Affiliates as necessary in order
      to
      enable them to achieve their business objectives. The Employee's principal
      assignment shall be to serve as Executive Director, Corporate Secretary,
      reporting to the Chief Creative Officer of Smart Kids Group Inc. In this
      capacity, the Employee shall be responsible for and shall also perform other
      duties and assignments, which are consistent with his responsibilities, which
      may be reasonably assigned to him from time to time by the Chief Creative
      Officer. Nothing in this Section (1.2) shall be deemed to prevent the Employee
      from: 

    

    
      	 	
              A.

            	
              Investing
                his assets in a manner not prohibited by Section 2.5 hereof, and
                in such
                form or manner as shall not require any material services on his
                part in
                the operations or affairs of the companies or other entities in which
                such
                investments are made; 

            

    

    

    
      	 	
              B.

            	
              Serving
                on the board of directors of any other company, subject to the
                prohibitions set forth in Section 2.5 hereof, provided the Board
                of
                Directors of the Company shall have approved such service in writing,
                or;
                

            

    

    

    
      	 	
              C.

            	
              Engaging
                in religious, charitable or other community or non-profit activities,
                which do not impair his ability to fulfill his duties and responsibilities
                under this Agreement.

            

    

    
      

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    Section
      1.3. Employment Compensation.

    

    
      	 	
              A.

            	
              Base
                Salary - For
                services rendered by the Employee under this Agreement, the Company
                shall
                pay the Employee an initial annual salary of $120,000.00 (US) per
                annum,
                payable in equal monthly installments (the "Base Salary"). Base Salary
                will be subject to annual review by the Board of Directors of the
                Company
                on or about each January 1 thereafter for so long as this Agreement
                is in effect.

            

    

    

    
      	 	
              B.

            	
              Incentive
                Bonus Compensation - For
                services rendered by the Employee under this Agreement, the Company,
                by
                action of the Board of Directors, shall establish an annual incentive
                bonus plan in which the Employee shall participate in recognition
                of the
                Employee's contribution to the overall performance of the Company
                (“Bonus”). Such Bonus shall be granted within ninety (90) days following
                the conclusion of each calendar year commencing December 31, 2007,
                after
                assessment of the Employee’s and Company’s performance pursuant to the
                criteria, terms and conditions of the bonus plan. The amount of any
                Bonus,
                which the Company may grant to the Employee from time to time shall
                be in
                addition to his Base Salary and shall, under no circumstances, be
                included
                in the Employee's Base Salary.

            

    

    

    Section
      1.4. Other Compensation: Benefits.
      The
      Employee will participate in stock option plans or employee benefit programs
      provided by the Company and its Subsidiaries, if any.

    

    Section
      1.5. Withholding.
      The
      amount of payments to be made by the Company to the Employee are set forth
      herein prior to the deduction of any taxes or other amounts, and all such
      payments shall be made by the Company to the Employee under this Agreement
      net
      of any tax or other amounts required to be withheld by the Company under
      applicable law.

    

    Section
      1.6. Vacation.
      The
      Employee shall be entitled to vacation and holiday plans under the same terms
      and considerations, as they are available to all Company employees, in
      accordance with Company policy.

    

    Section
      1.7. Employment Term; Termination The
      Employment Term shall run indefinitely, unless terminated pursuant to the
      following provisions of this Section 1.7.

    

    
      	 	
              A.

            	
              “The
                Employment Term”
                shall terminate:

            

    

    
      	 	
              1.

            	
              At
                the death or 60 days after the Permanent Disability (as hereinafter
                defined) of the Employee

            

    

    
      	 	
              2.

            	
              Immediately
                at the election of the Company, for Cause (as hereinafter defined),
                or;

            

    

    
      	 	
              3.

            	
              At
                the election of the Company for Cause or the Employee upon thirty
                (30)
                days' prior written notice to the
                other.

            

    

    

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        Initials _RS____

    

    
      
        
           

        

        
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              B.

            	
              “Permanent
                Disability”,
                for purposes of this Section 1.7, shall mean any physical or mental
                incapacitation which would materially hinder the Employee from performing
                the responsibilities of his assigned duties, as determined by a medical
                professional of the company’s
                choosing.

            

    

    

    
      	 	
              C.

            	
              “Cause",
                for purposes of this Section 1.7, shall mean any of the following,
                as
                determined by the management of The Company:

            

    

    
      	 	
              1.

            	
              Refusal
                of the Employee to perform his duties hereunder or other material
                breach
                by the Employee of the terms of this Agreement;

            

    

    
      	 	
              2.

            	
              Any
                substantial dishonesty by the Employee in connection with the performance
                of his duties hereunder; or 

            

    

    
      	 	
              3.

            	
              Any
                conviction of, or plea of guilty by, the Employee with respect to
                any
                crime, which conviction or plea is likely in the reasonable judgment
                of
                the management of the Company to adversely affect the Employee's
                professional reputation, the reputation of the Company or of any
                other
                member of the Group or the ability of the Employee to perform his
                duties
                satisfactorily hereunder.

            

    

    
      	 	
              4.

            	
              Any
                detrimental business conduct that negatively affects the Company’s
                business or the work of peers. 

            

    

    
      	 	
              5.

            	
              The
                Company's right of termination pursuant to this Section 1.7 shall
                be in
                addition to, and shall not affect, its rights and remedies under
                any other
                provisions of this Agreement or under applicable law, and all such
                rights
                and remedies shall survive termination of this Agreement and the
                employment of the Employee hereunder. Nothing herein shall be deemed
                to
                constitute a waiver by the Employee of any rights he may have under
                applicable laws.

            

    

    
      	 	
              6.

            	
              In
                the event of termination of employment pursuant to the terms of this
                Section 1.7, the Employee shall have no right to receive any compensation
                or fees for any period subsequent to the date of such termination;
                except
                that:

            

    

    

    
      	 	
              a)

            	
              In
                the event such termination is due to death or Permanent Disability
                pursuant to Section 1.7 the Company shall pay the Employee or his
                estate,
                as the case may be, a pro tanto portion of the Bonus, if any, for
                the year
                in which such termination occurs, a special 90 ninety day bonus severance,
                and vesting of the current year’s stock options, if
                any;

            

    

    

    
      	 	
              b)

            	
              In
                the event that such termination is made by the Company pursuant to
                Section
                1.7 hereof, the Company agrees that during the Severance Period (as
                such
                term is defined below) it will continue to pay the Employee his then
                current Base Salary.

            

    

    
      

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          Initials _RS____

          
            
               

            

            
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              c)

            	
              In
                the event that such termination is made by the Company pursuant to
                Section
                1.7 hereof, the Company agrees to grant all stock options that are
                vested.

            

    

    

    
      	 	
              D.

            	
              “Severance
                Period”,
                for purposes of this Section 1.7, shall mean the period commencing
                on the
                date of such termination and ending: thirty (30) calendar days
                thereafter.

            

    

    

    
      	 	
              E.

            	
              “The
                Obligations”
                of
                the Employee pursuant to Sections 2.3 and 2.4 of this Agreement shall
                survive the termination for any reason of the Employment Term. The
                obligations of the Employee pursuant to Section 2.5 hereof shall
                survive
                the termination of this Agreement as provided for in Section
                2.5.

            

    

    

    ARTICLE
      2: GENERAL PROVISIONS

     

    Section
      2.1. Expense Account and Allowance.
      The
      Company agrees to provide the Employee a monthly advance expense payment of
      $1,000 (US) to cover general personal operating expenses such as communications
      services, internet services, office supplies, shipping, etc. The Company agrees
      to reimburse the Employee for all reasonable travel, entertainment and other
      documented, itemized business expenses in excess of the $above $1,000 monthly
      payment, incurred by him in connection with the performance of his duties under
      this Agreement; provided, however, that the amount available for such travel,
      entertainment, and other business expenses shall be consistent with expense
      reimbursement policies adopted by the Company as in effect at the time of the
      incidence of such expenses by the Employee or as may be fixed in advance by
      the
      Company’s Board of Directors.

    

    Section
      2.2. Location.
      The
      Employee shall perform services under this Agreement at the Employee’s private
      office and at such other location or locations reasonably specified by the
      Company. The Employee shall also make himself available to make reasonable
      business trips at the Company's expense for purposes of consulting with
      customers, agents, representatives and suppliers of the Company and its
      Affiliates, as well as with other members of the Company's
      management.

    

    Section
      2.3. Confidential Information Sensitive
      Company data and information is the property of the Company, and must be
      protected:

    

    
      	 	
              A.

            	
              The
                Employee hereby agrees to hold and maintain confidential and private
                all
                papers, plans, drawings, specifications, methods, processes, techniques,
                shop practices, formulae, customer lists, personnel and financial
                data,
                plans, trade secrets and all proprietary information belonging to
                the
                Company or any Affiliate thereof of which the Employee may have knowledge
                or acquire knowledge whether prior to, during or after the termination
                of
                the Employment Term, and to maintain as confidential and secret any
                new
                processes, formulations, designs, devices, research data, machines
                or
                compositions of matter of the Company or of any of its Affiliates
                or of
                any persons granting rights to the Company or any of its Affiliates
                revealed to the Employee or discovered, originated, made or conceived
                by
                the Employee in connection with the furnishing of employment and
                consulting services to the Company or any of its Affiliates.
                

            

    

    

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        Initials _RS____

        
          
             

          

          
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              B.

            	
              The
                Employee hereby agrees that he shall not at any time, either during
                or
                subsequent to the Employment Term, disclose or divulge to any person,
                other than to the Company's or any of its Affiliates' officers and
                other
                employees as required by the Employee's duties under this Agreement
                and to
                third parties when required in the ordinary course of business of
                the
                Company, any of the information specified in Section 2.4(a) above
                or any
                trade or business secrets or any other confidential information belonging
                to the Company or any of its Affiliates of which the Employee may
                have or
                acquire knowledge. Notwithstanding anything to the contrary set forth
                above, the confidentiality and nondisclosure provisions contained
                in this
                Section 2.4 shall not apply to any information or data, if and when
                such
                information or data becomes a matter of public knowledge through
                no act or
                omission of the Employee or to any information or data which was
                already
                known by the Employee or the other party in question other than as
                a
                result of a breach of this Agreement.

            

    

    

    
      	 	
              C.

            	
              Immediately
                upon the Company's request or promptly upon termination for any reason
                or
                expiration of this Agreement, the Employee shall deliver to the Company
                all memoranda, notes, records, reports, photographs, drawings, plans,
                papers or other documents made or compiled by the Employee in the
                course
                of his services to the Company or any of its Affiliates or made available
                to the Employee during the course of his services to the Company
                or any of
                its Affiliates which are in the possession of or under the control
                of the
                Employee, and any copies or abstracts thereof, whether or not of
                a secret
                or confidential nature, and all of such memoranda or other documents
                shall, during and after the termination of the Employment Term, be
                deemed
                to be and shall be the property of the
                Company.

            

    

    

    Section
      2.4. Intellectual Property.
      Intellectual property is the property of the Company, and must be
      protected:

    

    
      	 	
              A.

            	
              Any
                and all inventions, improvements, ideas and innovations, whether
                or not
                patentable, which the Employee may invent, discover, originate, make
                or
                conceive during his services to the Company or any of its Affiliates,
                whether prior to or during the Employment Term, either solely or
                jointly
                with others, and which in any way relate to or are or may be used
                in
                connection with the business of the Company or any of its Affiliates
                shall
                be, to the extent of the Employee's interest therein, the sole and
                exclusive property of the Company or such Affiliate and the Employee's
                interest therein shall be assigned by the Employee to the Company
                or such
                Affiliate, as the case may be, or to the Company's or such Affiliate's
                nominee(s). The Employee, upon the request and at the expense of
                the
                Company, shall and shall use his best efforts to cause any such other
                person(s) to promptly and fully disclose each and all such discoveries,
                inventions, improvements, ideas or innovations to the Company, the
                applicable Affiliate or any nominee(s) thereof. Further, the Employee,
                upon the request and at the expense of the Company, shall and shall
                use
                his best efforts to cause any such other person(s) to, assign to
                the
                Company or the applicable Affiliate, without further compensation
                therefore, all right, title and interest in and to each and all such
                discoveries, inventions, improvements, ideas or innovations which
                are
                reduced to writings, drawings or practice within two (2) years after
                the
                termination of the Employment Term.

            

    

    

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              B.

            	
              The
                Employee further agrees to execute at any time, upon the request
                and at
                the expense of the Company, for the benefit of the Company, any of
                its
                Affiliates or any nominee(s) thereof, any and all appropriate
                applications, instruments, assignments and other documents, which
                the
                Company shall deem necessary or desirable to protect its (or any
                of its
                Affiliate's) entire right, title and interest in and to any of the
                discoveries, inventions, improvements, ideas and innovations described
                in
                Section 2.5(a) hereof: 

            

    

    

    
      	 	
              C.

            	
              The
                Employee agrees, upon the request and at the expense of the Company
                or any
                person to whom the Company or any of its Affiliates may have granted
                or
                grants rights, to execute any and all appropriate applications,
                assignments, instruments and papers, which the Company shall deem
                necessary for the procurement in the United States of America and
                foreign
                countries of patent protection for the discoveries, inventions,
                improvements, ideas or innovations to be so assigned, including the
                execution of new, provisional, continuing and reissue applications,
                to
                make all rightful oaths, to testify in any proceeding before any
                governmental authority authorized to grant or administer patent protection
                or before any court, and generally to do everything lawfully possible
                to
                aid the Company, its Affiliates and its and their successors, assigns
                and
                nominees to obtain, enjoy and enforce proper patent protection for
                the
                discoveries, inventions, improvements, ideas or innovations conceived
                or
                made by him during the course of his services to the Company or any
                of its
                Affiliates for a period of two (2) years after the termination of
                the
                Employment Term.

            

    

    

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    Section
      2.5. Non-competition.
      The
      Company and the Employee acknowledge that the Company and its Affiliates conduct
      business throughout the world and the engagement by the Employee in directly
      Competitive Industries anywhere in the United States of America or Canada could
      cause the Company irreparable harm. For the period commencing on the date hereof
      and ending two (2) years after the termination of the Employment Term (the
      "Restricted Period"), the Employee shall not: 

    

    
      	 	
              A.

            	
              Except
                as an officer and director of the Company and its Affiliates, utilize
                intellectual property or trade secrets, gained from the Company,
                which is
                an asset of the Company, to engage at any place within the United
                States
                of America or Canada in any business substantially similar to the
                business
                then being conducted by the Company or its Affiliates (the "Designated
                Industry"), whether directly or indirectly, for his own account or
                as an
                employee, partner, officer, director, consultant or holder of more
                than
                five percent (5%) of the equity interest in any other person, firm,
                partnership or corporation

            

    

    

    
      	 	
              B.

            	
              Divert
                to any competitor of the Company or its Affiliates any customer of
                the
                Company or its Affiliates, or 

            

    

    

    
      	 	
              C.

            	
              Solicit
                or encourage any officer, key employee or consultant of the Company
                or its
                Affiliates to leave its or their employ for alternative employment
                in the
                Designated Industry, or hire or offer for employment to any person
                to whom
                the Company or any of its Affiliates has offered employment within
                the
                three (3) years preceding the termination of the Employment Term.
                The
                Employee will continue to be bound by the terms of this Section 2.5
                until
                their expiration and shall not be entitled to any compensation with
                respect thereto.

            

    

    

    Section
      2.6. Severability.
      If any
      provision of this Agreement shall, in whole or in part, prove to be invalid
      for
      any reason, such invalidity shall affect only the portion of such provision
      which shall be invalid, and in all other respects this Agreement shall stand
      as
      if such invalid provision, or other invalid portion thereof, had not been a
      part
      hereof. Without limiting the generality of the preceding sentence, if any
      provision of Section 2.6 hereof shall be held to be invalid or unenforceable
      under any applicable law, as unreasonably restrictive in duration or
      geographical area or otherwise, it is the intention of the parties hereto that
      such provision shall be deemed to be immediately amended to provide for such
      maximum restriction as shall be determined to be reasonable and enforceable
      by
      the court or other body having jurisdiction; and the Company and the Employee
      expressly agree that such provision, as so amended, shall be valid and
      binding.

     

    
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    Section
      2.7. Equitable Remedies.
      Each of
      the parties hereto acknowledges and agrees that upon any breach by the Employee
      of his obligations under Section 2.3, 2.4 or 2.5 hereof, the Company will have
      no adequate remedy at law, and accordingly will be entitled to specific
      performance and other appropriate injunctive and equitable relief.

    

    Section
      2.8. Assignment.
      The
      rights and obligations of the Company under this Agreement shall inure to the
      benefit of and shall be binding upon the successors and assigns of the Company,
      provided that neither this Agreement nor the rights and obligations of the
      Company under this Agreement may be assigned by the Company other than to an
      Affiliate of the Company. The Employee may not assign to any other person his
      rights and/or obligations under this Agreement.

    

    Section
      2.9. Amendment.
      This
      Agreement and any term, covenant, condition or other provision hereof may be
      changed, waived, discharged or terminated solely by an instrument in writing
      signed by the parties hereto.

    

    Section
      2.10.
      Waiver
      of Breach.
      The
      waiver by the Company of a breach of any provision of this Agreement by the
      Employee shall not operate or be construed as a waiver of any other breach
      by
      the Employee.

    

    Section
      2.11. Notices.
      All
      notices, requests, demands, consents and other communications in connection
      with
      this Agreement shall be in writing or by written telecommunication and shall
      be
      delivered personally or mailed as follows: by registered or certified mail
      or by
      overnight courier, postage prepaid, or sent by written telecommunication to
      the
      addresses of record, or, at such other address as the parties hereto may from
      time to time designate in writing.

     

    Section
      2.12. Governing Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      Florida, US.

    

    Section
      2.13. Arbitration of Disputes.
      Any
      controversy or claim arising out of or relating to this Agreement or the breach
      thereof shall be settled by arbitration in accordance with the laws of Florida
      by two arbitrators, one of whom shall be appointed by the Company, one of whom
      shall be appointed by the Employee and if agreement cannot be reached, by a
      third arbitrator which shall be appointed by agreement of the first two
      arbitrators. Such arbitration shall be conducted in Florida in accordance with
      the rules of the prevailing Arbitration Association, except with respect to
      the
      selection of arbitrators which shall be as provided in this Section 2.13.
      Judgment upon the award rendered by the arbitrators may be entered in any court
      having jurisdiction thereof. All fees and expenses of the arbitration process
      shall be borne equally by the parties hereto regardless of the final outcome,
      unless and to the extent the arbitrators shall determine that under the
      circumstances the sharing of all or a part of any such fees and expenses would
      be unjust.

    

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        Initials _RS____

    

    
      
         

      

      
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    Section
      2.14. Entire Agreement.
      This
      Agreement embodies the entire agreement between the Company and the Employee
      relating to the subject matter hereof, and, except as otherwise expressly
      provided herein, this Agreement shall not be affected by reference to any other
      document.

    

    Section
      2.15. Headings, Etc.
      The
      headings of the sections of this Agreement have been inserted for convenience
      of
      reference only and shall not be deemed to be a part of this
      Agreement.

    

    Section
      2.16.
      Counterparts.
      This
      Agreement may be executed in several identical counterparts, each of which
      when
      executed by the parties hereto and delivered shall be an original, but all
      of
      which together shall constitute a single instrument. In making proof of this
      Agreement, it shall not be necessary to produce or account for more than one
      such counterpart.

     

    Section
      2.17.
      Additional
      Defined Terms:
      

    

    
      	 	
              A.

            	
              “Affiliate"
                means any person, corporation or other business entity that directly
                or
                indirectly controls, or is controlled by, or is under common control
                with
                another person, corporation or business
                entity.

            

    

    
      	 	
              B.

            	
              ”Subsidiary"
                means any corporation fifty percent (50%) or more of the capital
                stock of
                which having ordinary voting power for the election of directors
                is owned
                directly or indirectly by another corporation or business
                entity.

            

    

    

    *************************************************************

    

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    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of this written
      date: August 1, 2007.

    

    Accepted
      and Agreed to:

    

    
      	
              Employee
                Signature: 

            	
              

            
	 	 
	
              Employee
                Name: 

            	
              Lisa
                Yakiwchuk/TKS Administration Services

            
	 	 
	
              Company
                Officer Signature: 

            	
              

            
	 	 
	
              Company
                Officer Name: 

            	
              Richard
                Shergold

            

    

    

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