Document:

Exhibit 4.5e

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement (“Agreement”), made this 1st day of March, 2007, by and
      between INTERNATIONAL PLAYTHINGS, INC., a Delaware corporation with principal
      executive offices at 75D Lackawanna Avenue, Parsippany, NJ 07054 (the
“Company”),
      and
      MICHAEL VARDA, residing at 55 School House Road Oak Ridge NJ
      (“Varda”).

     

    WHEREAS
      the Company is engaged in the business of importing and wholesaling high quality
      toys and toy-related products for children and developing various proprietary
      lines of toy products, and distributing the same through a unique network of
      specialty toy and other retailers throughout the United States; and

     

    WHEREAS
      Varda shall serve as Chief Executive Officer of the Company, and Varda and
      the
      Company are desirous of formalizing their understanding for Varda’s employment,
      all upon the terms and subject to the conditions hereinafter
      provided.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements herein
      contained, the parties hereto, intending to be legally bound, agree as
      follows:

    

      ARTICLE
        I EMPLOYMENT.

       

      The
        Company agrees to employ Varda, and Varda agrees to be employed by the Company,
        upon the terms and subject to the conditions of this Agreement.

       

      ARTICLE
        II TERM.

       

    

    Subject
      to the provisions governing termination as hereinafter provided, the term of
      this Agreement (the “Term”) shall be for a period of three (3) years commencing
      on the date hereof (the “Commencement Date”) and ending on February 28,
      2010, unless sooner terminated as hereinafter provided (the
“Term”).

    

      ARTICLE
        III DUTIES;
        BEST EFFORTS; INDEMNIFICATION.

       

    

    Section
      3.1 Varda
      shall serve as Chief Executive Officer of the Company, and shall report directly
      to the Chairmen of the Board (“Chairman”) and the Chief Executive Officer
      (“Grand CEO”) of it’s Parent Company Grand Toy International Limited (“Grand”).
      Varda shall have the general supervision and control over, and responsibility
      for, the day to day operations of the Company and shall have such other duties
      which are not inconsistent with his position as Chief Executive Officer of
      a
      company of comparable size as shall be assigned to him by the Board of Directors
      of the Company, the Chairman or the Grand CEO. Varda shall be based within
      a 25
      mile radius of Parsippany, New Jersey and shall undertake such domestic and
      foreign travel as shall be reasonably required to fulfill his
      duties.

     

    Section
      3.2 Varda
      shall devote all of his business time, attention and energies, on a full time
      and exclusive basis, to the business and affairs of the Company, shall use
      his
      best efforts to advance the best interests of the Company, and shall not during
      the Term be engaged in any other business activities, whether or not such
      business activities are pursued for gain, profit or other pecuniary advantage,
      without the consent of the Chairman or Grand CEO; provided,
      however,
      that,
      it shall not be a violation of this Agreement for Varda to (i) serve on
      corporate, civic or charitable boards or committees or (ii) manage passive
      personal investments, in either case so long as any such activities do not
      interfere with the performance of his responsibilities as an employee of the
      Company in accordance with this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.3 The
      Company shall indemnify Varda to the fullest extent permitted by applicable
      law
      for all amounts (including, without limitation, judgments, fines, settlement
      payments, expenses and attorney’s fees) incurred or paid by Varda in connection
      with any third party action, suit, investigation or proceeding arising out
      of or
      relating to the performance by Varda of services for, or the acting by Varda
      as
      a director, officer or employee of, the Company or of any other person or entity
      at the Company’s request, and the Company shall advance to Varda, or pay on his
      behalf, such amounts as the Board determines to be due by reason of such
      indemnification.

     

    
      ARTICLE
        IV COMPENSATION
        AND BENEFITS.

       

    

    Section
      4.1 The
      Company shall pay to Varda a base salary (the “Base
      Salary”)
      at a
      rate of Two Hundred and Thirty Thousand Dollars (US$230,000) per annum, payable
      in accordance with the Company’s payroll practices for its executive employees.
      The Chairman and Grand CEO will review the Base Salary for possible increase
      not
      less than annually during the Term with a view to ensuring that it remains
      commensurate with the time and effort required for the discharge of his
      responsibilities pursuant to this Agreement. The Company may from time to time
      exercise its discretion to grant Varda additional compensation or bonuses upon
      such terms and conditions as the Board of Directors of the Company shall deem
      to
      be in its business interest. The Company shall not be obligated to pay Varda
      any
      additional compensation or bonus, regardless of whether additional compensation
      or bonus was paid to him in any past or succeeding year or additional
      compensation or bonus was paid to other employees in any year. The Company’s
      determination with respect to the payment and amount of any additional
      compensation or bonus for any fiscal year shall be final and
      conclusive.

     

    Section
      4.2 The
      Company shall promptly pay to Varda the reasonable expenses incurred by him
      in
      the performance of his duties hereunder in accordance with the Company’s
      policies in effect from time to time, including, without limitation, those
      incurred in connection with business related travel or entertainment, or, if
      such expenses are paid directly by Varda, shall promptly reimburse him for
      such
      payment, provided that Varda provides proper documentation thereof in accordance
      with the Company’s policy.

     

    Section
      4.3 Varda
      shall be entitled to paid vacation days in each calendar year determined by
      the
      Company from time to time, but not less than four (4) weeks in any calendar
      year. Vacation shall be prorated in any calendar year of the Term during which
      Varda is employed hereunder for less than an entire year in accordance with
      the
      number of days in such year during which he is so employed. Varda shall also
      be
      entitled to annual paid sick leave, personal leave and holidays as per the
      Company’s policies as same may be amended from time to time. Varda shall also be
      entitled to other benefits as may be provided in applicable plans and programs
      of the Company, without limitation, according to the terms and conditions of
      such plans and programs.

     

    
      
        
        

      

      
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    Section
      4.4 The
      Company may, at its discretion, subscribe for and maintain, on behalf of the
      Company, life insurance, key-man insurance and long-term disability insurance,
      in such amount and upon such terms or conditions as the Company may deem
      reasonable. Varda shall cooperate with the Company in connection with the
      obtaining of any such policies, including the submission to physical examination
      and blood testing.

     

    Section
      4.5 Varda
      shall be Granted 200,000 (Two Hundred Thousand) stock options for American
      Depository Shares of Grand Toy International Limited subject to the approval
      of
      the Board of Directors at the next meeting held following the execution of
      this
      contract. The exercise price the options will be the fair market value on the
      date of grant by the Board of Directors and the options will vest equally over
      3
      years and are otherwise subject to Grand Toys International Limited 2004 Stock
      Option Plan.

    

      ARTICLE
        V
TERMINATION.

    

     

    This
      Agreement may be terminated by either party with or without notice and without
      “Cause” (as defined herein). Further, this Agreement may be terminated by the
      Company with Cause in accordance with Section 5(a) below, or because of any
“Disability” (as defined herein) in accordance with Section 5(b)
      below.

     

    (a) For
      Cause.
      The
      Company shall have the right to terminate Varda’s employment for “Cause.” A
      termination for “Cause”
is
      a
      termination evidenced by a resolution adopted by the Board finding that Varda
      has:

     

    (i) materially
      breached or failed to comply with any of the material terms of this Agreement,
      including, without limitation, Sections 3, 7, 8, 9 or 12 of this
      Agreement;

     

    (ii) failed
      to
      perform his duties under this Agreement, including refusing to carry out the
      reasonable written instructions of the Board, the Chairman or the Grand CEO,
      or
      deliberately and intentionally disregarding the lawful instructions from the
      Board, the Chairman or the Grand CEO, in any case which instructions are
      consistent with the responsibilities and duties of Varda contemplated by this
      Agreement and provided that the instructions do not knowingly violate any of
      the
      inherent responsibilities accorded to the Chief Executive Officer.

     

    (iii) engaged
      in gross negligence or willful misconduct in connection with or arising out
      of
      the performance of his duties hereunder;

     

    (iv) been
      under the influence of drugs (other than prescription medicine or other
      medically-related drugs to the extent that they are taken in accordance with
      their directions) or alcohol during the performance of his duties under this
      Agreement, or while under the influence of drugs or alcohol, engages in
      inappropriate conduct;

     

    
      
        
        

      

      
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    (v) engaged
      in behavior that would constitute grounds for liability for sexual harassment
      (as proscribed by the U.S. Equal Employment Opportunity Commission Guidelines,
      the New Jersey Division of Human Rights and or any other applicable state
      regulatory body) or, in the reasonable opinion of the Board, other egregious
      conduct violative of laws governing the workplace; or

     

    (vi) committed
      any act of fraud, larceny, misappropriation of funds or embezzlement or been
      convicted of a felony or a crime of moral depravity;

     

    provided,
      however,
      that
      (A) in the case of clauses (i), (ii) and (iii) above, Varda shall receive
      thirty (30) days’ advance written notice that the Board intends to meet to
      consider Varda’s termination and specifying the actions constituting Cause, and
      Varda shall have the opportunity to cure the conduct constituting Cause during
      such thirty (30) day period and (B) any act, or failure to act, based upon
      authority given pursuant to a resolution duly adopted by the Board or based
      upon
      the advice of counsel for the Company shall be conclusively presumed to be
      done,
      or omitted to be done, by Varda in good faith and in the best interests of
      the
      Company. As used herein, “Good
      Reason”
shall
      mean Varda’s termination of this Agreement following the Company’s material
      breach thereof, provided,
      however,
      that
      the Company shall receive thirty (30) days’ advance written notice that Varda
      intends to terminate this Agreement and specifying the actions constituting
      material breach, and the Company shall have the opportunity to cure the conduct
      constituting Good Reason during such thirty (30) day period

     

    (b) For
      Disability.
      The
      Company shall have the right to terminate Varda’s employment as a result of
      Varda’s “Disability.” For purposes of this Agreement, a termination for
“Disability”
shall
      occur upon rendering of a written termination notice by the Company after Varda
      has been unable to substantially perform his duties hereunder for 90 consecutive
      calendar days (exclusive of any vacation permitted under Section 4(f)
      hereof) or for 120 days in any 360 Calendar day period by reason of any physical
      or mental illness or injury. This should not be deemed to limit the right of
      the
      Company under Section 5 regarding termination. Nothing in this
      Section 5 is intended to alter or impair Varda’s rights under the federal
      Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.
      Varda
      agrees to make himself available and to cooperate in any reasonable examination
      by a reputable independent physician selected by the Company for the purpose
      of
      a termination pursuant to Section 5(b)(i).

    

      ARTICLE
        VI EFFECT
        OF TERMINATION.

    

     

    Section
      6.1 Death
      or Disability.
      In the
      event of the termination of Varda’s employment as a result of his death or
      Disability, the Company shall:

     

    (a) pay
      to
      Varda or his estate, as the case may be, the Base Salary (including Base Salary
      for accrued and unused vacation days) plus accrued and unpaid bonus and other
      benefits, if any, in accordance with Section 4(b) through the date of his
      death or Disability (pro rated for any partial month); and

     

    
      
        
        

      

      
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    (b) reimburse
      Varda, or his estate, as the case may be, for any expenses pursuant to
      Section 4(d) (the amounts payable pursuant to the foregoing clauses (i) and
      (ii) are hereafter referred to as the “Accrued Obligations”).

     

    Section
      6.2 Termination
      for Cause by the Company, by Varda Voluntarily or upon expiration of the
      Term.
      In the
      event that Varda’s employment is terminated by the Company for Cause or by Varda
      voluntarily or upon expiration of the Term (or any extension thereof), Varda
      shall only be entitled to:

     

    (a) the
      Base
      Salary (including Base Salary for accrued and unused vacation days) plus accrued
      and unpaid bonus and other benefits, if any, in accordance with
      Section 4(c) and Company policy through the date of
      termination;

     

    (b) Reimbursement
      for any and all expenses incurred pursuant to Section 4(b), but not paid
      prior to termination; and 

     

    (c) Such
      rights to other benefits as may be provided in applicable plans and programs
      of
      the Company, including, without limitation, applicable employee benefit plans
      and programs, according to the terms and conditions of such plans and
      programs.

     

    Section
      6.3 Termination
      by the Company other than for Cause.
      In the
      event that Varda’s employment is terminated by the Company other than for Cause,
      Varda shall be entitled to:

     

    (a) Reimbursement
      for any and all expenses incurred pursuant to Section 4(b), but not paid
      prior to termination; and

     

    (b) the
      Base
      Salary (including Base Salary for accrued and unused vacation days) plus accrued
      and unpaid bonus and other benefits, if any, in accordance with
      Section 4(c) of the Company policy, until the earlier of: (A) the last
      day of the Term (as if Varda’s termination had not occurred) or (B) the
      date that shall be six (6) months after the date of such termination

     

    Section
      6.4 This
      Section 6 sets forth the only obligations of the Company with respect to
      the termination of Varda’s employment with the Company, and Varda acknowledges
      that upon the termination of his employment, he shall not be entitled to any
      payments or benefits which are not explicitly provided herein hereof,
provided,
      that
      the foregoing shall not affect Varda’s accrued benefits under any benefit plans
      in which Varda participated pursuant to Sections 4(b) and 4(c) hereof, all
      of which benefits shall be governed and controlled by the terms of the
      applicable benefit plans. Any and all Accrued Obligations shall be paid within
      fifteen (15) calendar days of the termination of Varda’s
      employment.

     

    
      
        
        

      

      
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      ARTICLE
        VII COVENANT
        REGARDING INVENTIONS AND COPYRIGHTS.

       

    

    Section
      7.1 Varda
      hereby acknowledges that all Innovations (as defined below) created by Varda
      (either working alone or as part of a group) that are used, useful or useable
      in
      connection with the present or future Business of the Company or any of its
      affiliates which (i) were or will be made using equipment, supplies,
      facilities or trade secret information of the Company, or (ii) were or will
      be developed at least in part on the Company’s time, or (iii) relate at the
      time of conception or reduction to practice thereof either to the Business
      or to
      the Company’s or its affiliates’ actual or demonstrably anticipated research or
      development, or (iv) result from any work that Varda performs or performed
      for the Company, were created at the request of the Company pursuant to this
      Agreement or other arrangement (written or unwritten) between the Company and
      Varda. The term “Innovations” shall include all of the results and proceeds of
      Varda’s services under this Agreement, including without limitation, all right,
      title and interest in any inventions, know-how, discoveries, improvements,
      original works of authorship, designs, software, source code, object code,
      programs, formulas, processes, developments, trade secrets, trademarks,
      copyrights, service marks, logos and related proprietary information and
      materials, whether patentable, copyrightable, subject to trademark registration,
      or not, and all drafts, prototypes, proposals, sketches, revisions and
      demonstration and “beta” versions thereof, written, created, developed or
      produced or to be written, created, developed or produced, by Varda (either
      working alone or as part of a group) in connection therewith (subject, in the
      case of Innovations created by Varda pursuant to an agreement between the
      Company and any licensor, to the terms of such agreement).

     

    Section
      7.2 Varda
      hereby acknowledges that the Innovations were specifically ordered or
      commissioned by the Company for the Business. Varda hereby irrevocably assigns
      to the Company all right, title and interest in and to all Innovations and
      all
      right, title and interest in and to all patents, domain names, trade secrets,
      trademarks and other intellectual property derived therefrom, such assignment
      to
      be effective when first capable of being so assigned, transferred or vested.
      All
      Innovations shall be delivered to the Company as required herein or on
      termination or completion of the Agreement, whichever is earlier, unless the
      Company requests otherwise. To the extent that any Innovation is or shall be
      a
      copyrightable work, Varda agrees that such Innovation constitutes and shall
      constitute a work-made-for-hire as defined in the United States Copyright Act
      of
      1976; that the Company is and shall be the author of said work-made-for hire
      and
      the owner of all rights in and to such Innovation throughout the universe,
      in
      perpetuity and in all languages, for all now known or hereafter existing uses,
      media and forms, including, without limitation, the copyrights therein and
      thereto throughout the universe for the initial term and any and all extensions
      and renewals thereof; and that the Company shall have the right to make such
      changes therein and such uses thereof as it may deem necessary or desirable.
      To
      the extent that such copyrightable Innovation is not recognized as a
      work-made-for-hire, Varda hereby irrevocably assigns, transfers and conveys
      to
      the Company, without reservation, all of his right, title and interest
      throughout the universe in perpetuity in such Innovation, including, without
      limitation, all rights of copyright and copyright renewal in such Innovation
      or
      any part thereof, and all rights to exclusively or non-exclusively license
      or
      sublicense the foregoing.

     

    Section
      7.3 Varda
      hereby waives all rights of “droit moral” or “moral rights of authors” or any
      similar rights or principles of law which Varda may now or later have in the
      Innovations. Varda covenants and agrees that his contributions to any
      Innovations shall not be an unauthorized copy of any existing work or violate
      or
      infringe upon any common law or statutory right of any party including, without
      limitation, contractual rights, copyrights, trademarks, patents, service marks
      and rights of privacy, publicity, or any other right of any person or entity
      and
      is not the subject of any litigation or claim that might give rise to
      litigation.

     

    
      
        
        

      

      
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    Section
      7.4 By
      execution hereof, Varda hereby irrevocably constitutes and appoints the Company
      with full power of substitution, to be Varda’s true and lawful attorney to
      execute, acknowledge, swear and file all instruments and documents, and to
      take
      any action which shall be deemed necessary, appropriate or desirable to
      effectuate the terms of this Section 8. The powers of attorney granted
      herein shall be deemed to be coupled with an interest and shall be irrevocable
      and survive the occurrence of Varda’s death, disability or
      bankruptcy.

    

      ARTICLE
        VIII PROTECTION
        OF CONFIDENTIAL INFORMATION.

    

     

    Varda
      acknowledges that he has been and will be provided with information about,
      and
      his employment by the Company will, throughout the Term, bring him into close
      contact with, many confidential affairs of the Company and its affiliates,
      including proprietary information about costs, profits, customers, suppliers,
      vendors, advertisers, markets, sales, products, key personnel, pricing policies,
      operational methods, technical processes and other business affairs and methods,
      plans for future developments and other information not readily available to
      the
      public (“Confidential Information”), all of which are highly confidential and
      proprietary and all of which were developed by the Company at great effort
      and
      expense. Varda further acknowledges that the services to be performed by him
      under this Agreement are of a special unique, unusual, extraordinary and
      intellectual character, that the Business will be conducted throughout the
      world
      (the “Territory”), that the Company’s services and products will be marketed
      throughout the Territory, that the Company competes and will compete in nearly
      all of its business activities with other organizations which are located in
      nearly any part of the Territory and that the nature of the relationship of
      Varda with the Company is such that Varda is capable of competing with the
      Company from nearly any location in the Territory. In recognition of the
      foregoing, Varda covenants and agrees during the Term and for a period of five
      (5) years thereafter that he will:

     

    (i) keep
      secret all Confidential Information and not divulge or disclose any Confidential
      Information to anyone outside of the Company or its affiliates, either during
      or
      after the Term, except with the Company’s prior written consent;

     

    (ii) not
      make
      use of any of such Confidential Information for his own purposes or the benefit
      of anyone other than the Company and its affiliates; and

     

    (iii) deliver
      promptly to the Company on termination of this Agreement, or at any time the
      Company may so request, all confidential memoranda, notes, records, reports
      and
      other confidential documents (and all copies thereof) relating to the
      Confidential Information and/or business of the Company and its affiliates,
      which he may then possess or have under his control.

     

    
      
        
        

      

      
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    Notwithstanding
      the foregoing, the term “Confidential Information” shall not include any
      information (i) which is already known by Varda or which is or becomes
      publicly known through no wrongful act of Varda, (ii) which is rightfully
      received by Varda from any third party, provided that such third party was
      not
      known by Varda to be bound by a confidentiality agreement with or other
      contractual, legal or fiduciary obligation of confidentiality with respect
      to
      such information, (iii) which is disclosed by the Company to any third
      party without similar restriction, or (iv) which is disclosed by Varda
      pursuant to applicable law or the order of any court of competent
      jurisdiction.

    

      ARTICLE
        IX RESTRICTION
        OF COMPETITION; INTERFERENCE; AND NON-SOLICITATION.

    

     

    Section
      9.1 Non-Solicitation
      - As a significant inducement to the Company to enter into and perform its
      obligations under this Agreement, during the Term and until the second
      anniversary of the expiration of this Agreement or the termination of Varda’s
      employment, as applicable, for any reason Varda will not, either directly or
      indirectly, alone or in association with others:

     

    (a) solicit,
      or permit any person or organizations directly or indirectly to solicit, any
      individual who at the time of the solicitation is, or who within the six (6)
      month period prior to such solicitation was, an employee of the Company to
      leave
      the employ of the Company or terminate his or her employment relationship with
      the Company, or hire or attempt to hire or induce, any employee or employees
      of
      the Company to terminate their employment with, or otherwise cease their
      relationship with, the Company;

     

    (b) solicit,
      divert or take away, or attempt to divert or to take away, the business or
      patronage of any of the clients, customers, vendors or accounts of the
      Company;

     

    (c) induce
      any client, customer, vendor, agent or other person or entity with whom or
      which
      the Company has a business relationship, contractual or otherwise, to terminate
      or alter such business relationship; or

     

    (d) take
      any
      action reasonably likely to cause injury to the relationship between the Company
      or any of its respective employees and any client, lessor, lessee, vendor,
      supplier, customer, distributor, employee, consultant or other business
      associate of the Company or any of its affiliates as such relationship relates
      to the Company or its affiliates’ conduct of their business.

     

    Section
      9.2 Restriction
      of Competition - As a further significant inducement to the Company to enter
      into and perform its obligations under this Agreement, during the Term and
      for a
      period of six (6) months from the expiration of this Agreement or the
      termination of Varda’s employment, as applicable, for any reason Varda will not,
      either directly or indirectly:

     

    (a) engage
      in
      any business which develops, manufactures, promotes or distributes products
      that
      are competitive with those that are marketed by the Company, or those products
      which are then under active development by the Company (a “Competing
      Business”),
      whether such engagement shall be as a director, officer, employee, stockholder,
      shareholder, partner, member or other owner, affiliate or other participant
      in
      any Competing Business, provided, however, that Varda’s employment by an entity
      that (A) carries both a Competing Business and one or more other businesses
      or (B) can be shown not to involve participation in such Competing
      Business; shall not constitute a breach of this clause; or

     

    
      
        
        

      

      
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    (b) assist
      any other person or entity in organizing or engaging in any Competing Business
      in any capacity or manner described in clause (i) above.

     

    Section
      9.3 Non-Disparagement
      - Neither during the Term nor at any time thereafter shall Varda disparage
      the
      Company, any director, officer, employee or shareholder of the Company, or
      any
      affiliate of any such director, officer, employee or shareholder of the Company
      by making (or causing others to make) any oral or written statements or
      representations that could reasonably be construed to be a false and misleading
      statement of fact or a libelous, slanderous or disparaging statement of or
      concerning any of the aforementioned persons.

     

    Section
      9.4 Waiver
      -
      Sections 9(a), 9(b), and 9(c) of this Agreement shall apply in their
      entirety in the event that Varda’s employment with the Company is terminated by
      any party, and for any of the reasons set forth in Section 5 herein.
      However, if Varda remains employed by the Company and is not presented with
      a
      written offer of continued employment by the Grand CEO at least six (6) months
      prior to the expiration of the Agreement at equal or greater Compensation than
      that which he is receiving at that time, and there is a voluntary termination
      of
      the agreement by Varda, then Sections 9(a)(ii) and (iii) and 9(b)(i) and
      (ii) will be waived.

    

      ARTICLE
        X
SPECIFIC
        REMEDIES.

    

     

    It
      is
      understood by Varda and the Company that the covenants contained in this
      Section 10 and in Sections 7, 8 and 9 hereof are essential elements of
      this Agreement and that, but for the agreement of Varda to comply with such
      covenants, the Company would not have agreed to enter into this Agreement or
      consummate the transactions contemplated by the Asset Purchase Agreement. The
      Company and Varda have independently consulted with their respective counsel
      and
      have been advised concerning the reasonableness and propriety of such covenants
      with specific regard to the nature of the business conducted by the Company
      and
      all interests of the Company and its stockholders. Varda agrees that the
      covenants of Sections 7, 8 and 9 are reasonable and valid. If Varda commits
      a breach of any of the provisions of Sections 7, 8 or 9 hereof, such breach
      shall be deemed to be grounds for termination for Cause. In addition,
      notwithstanding the provisions of Sections 8 and 9, Varda acknowledges that
      the Company may have no adequate remedy at law if he violates any of the terms
      hereof. Varda therefore understands and agrees that the Company shall have
      without prejudice as to any other remedies, the right upon application to any
      court of proper jurisdiction to a temporary restraining order, preliminary
      injunction, injunction, specific performance or other equitable
      relief.

     

    
      
        
        

      

      
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      ARTICLE
        XI INDEPENDENCE;
        SEVERABILITY AND NON-EXCLUSIVITY.

    

     

    Each
      of
      the rights enumerated in Sections 7, 8 or 9 hereof and the remedies
      enumerated in Section 10 hereof shall be independent of the others and
      shall be in addition to and not in lieu of any other rights and remedies
      available to the Company at law or in equity. If any provision of this
      Agreement, or any part of any of them, is hereafter construed or adjudicated
      to
      be invalid or unenforceable, the same shall not affect the remainder of the
      covenants or rights or remedies which shall be given full effect without regard
      to the invalid portions. If any covenant set forth herein is held to be invalid
      or unenforceable because of the duration of such provision or the area covered
      thereby, the parties agree that the court making such determination shall have
      the power to reduce the duration and/or area of such provision and in its
      reduced form said provision shall then be enforceable. No such holding of
      invalidity or unenforceability in one jurisdiction shall bar or in any way
      affect the Company’s right to the relief provided in Section 10 or
      otherwise in the court of any other state or jurisdiction within the
      geographical scope of such covenants as to breaches of such covenants in such
      other respective states or jurisdictions, such covenants being, for this
      purpose, severable into diverse and independent covenants.

     

    
      ARTICLE
        XII CONFLICTING
        AGREEMENTS.

       

    

    Section
      12.1 Varda
      hereby represents that he is not bound by the terms of any agreement with any
      previous employer, or with any other party, that would impair his right or
      ability to enter the employ of the Company or perform fully his obligations
      pursuant to this Agreement. Varda further represents and warrants that his
      performance of all the terms of this Agreement and as an executive of the
      Company does not and will not breach any agreement to keep in confidence
      proprietary information, knowledge or data acquired by him in confidence or
      in
      trust prior to his employment with the Company.

    

      ARTICLE
        XIII SUCCESSORS;
        BINDING AGREEMENT.

    

     

    This
      Agreement is personal to Varda and without the prior written consent of the
      Company shall not be assignable by Varda otherwise than by will or the laws
      of
      descent and distribution or by the Company, except that the Company shall be
      permitted to assign its rights, interests and obligations to a parent or
      subsidiary of, or an Affiliate controlled by the Company which assumes in
      writing all of the obligations under this Agreement, without obtaining any
      consent from Varda. This Agreement shall inure to the benefit of and be
      enforceable by Varda’s legal representatives and the Company’s successors and
      permitted assigns. Arbitration of Employment-Related Disputes

     

    The
      parties hereby unmistakably and voluntarily agree that all employment-related
      disputes, including workplace discrimination claims, are to be submitted to
      arbitration before a single arbitrator, to be selected by the parties, in
      accordance with the National Rules for the Resolution of Employment Disputes
      of
      the American Arbitration Association. It is further agreed and understood that
      the site of any arbitration shall be within Morris County in the State of New
      Jersey.

     

    The
      agreement to arbitrate applies to all employment-related disagreements and
      problems, which are those that concern a right, privilege, or interest
      recognized by applicable law. Such disputes include claims, demands or actions
      under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866,
      the Civil Rights Act of 1991, the Equal Pay Act, the Age Discrimination in
      Employment Act, the Americans with Disabilities Act, the Employee Retirement
      Security Act of 1974, the Fair Labor Standards Act, the Rehabilitation Act
      of
      1973, the Family and Medical Leave Act, the Conscientious Employee Protection
      Act, the New Jersey Law Against Discrimination, the New Jersey Family Leave
      Act,
      the New Jersey Prevailing Wage Act, and any other federal, state, or local
      statute, regulation, or common law doctrine regarding employment discrimination,
      conditions of employment, or termination of employment.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    

      ARTICLE
        XIV ARBITRATION
        OF EMPLOYMENT-RELATED DISPUTES.

    

     

    The
      parties further understand that the remedies available to Varda and the Company
      during the arbitration proceeding shall be the same as the remedies available
      under the statute(s) upon which any claim(s) is based, and that could be awarded
      by any court or administrative agency. Each party shall bear its own attorneys’
fees, unless otherwise provided by statute.

     

    The
      arbitrator’s determination shall be final and binding upon the
      parties.

     

    This
      agreement to arbitrate does not pertain to a claim of violation of
      Sections 7, 8 and/or 9 of this Agreement which may be pursued by the
      Company, in accordance with Section 10, by alternatively applying to a
      court of competent jurisdiction for a temporary restraining order, preliminary
      injunction, and/or such other legal and equitable remedies as may be
      appropriate.

     

    ARTICLE
      XV NOTICES.

     

    Any
      notice or other communications required or permitted hereunder shall be in
      writing and shall be deemed effective (i) upon personal delivery, if
      delivered by hand and followed by notice by mail or facsimile transmission,
      (ii) upon actual receipt after the date of deposit in the mails, if mailed
      by certified or registered mail (return receipt requested), or (iii) on the
      next business day, if mailed by an overnight mail service to the parties or
      sent
      by facsimile transmission,

     

    To
      the
      Company: 

     

    International
      Playthings Inc.

    75D
      Lackawanna Ave.

    Parsippany
      NJ 07438

     

    with
      copies to: 

     

    Grand
      Toy
      International Limited

    Room
      UG202 - Floor UG2

    Chinachem
      Golden Plaza

    77
      Mody
      Rd

    Tsimshatsui
      East, Kowloon

    Hong
      Kong

    Att
      Jeff
      Hsieh

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    Connell
      Foley

    85
      Livindston Ave

    Roseland
      NJ 07068-1765

    Att
      John
      Cromie

     

    To
      Varda: 

     

    Mr.
      Michael Varda

    55
      School
      House Rd

    Oak
      Ridge
      NJ 07043

     

    or
      at
      such other address or telecopy number (or other similar number) as either party
      may from time to time specify to the other. Any notice, consent or other
      communication required or permitted to be given hereunder shall have been deemed
      to be given on the date of mailing, personal delivery or telecopy or other
      similar means (provided the appropriate answer back is received) thereof and
      shall be conclusively presumed to have been received on the second business
      day
      following the date of mailing or, in the case of personal delivery or telecopy
      or other similar means, the day of delivery thereof, except that a change of
      address shall not be effective until actually received.

    

      ARTICLE
        XVI HEADINGS.

       

      The
        headings of this Agreement are for convenience of reference only and shall
        not
        affect in any manner any of the terms and conditions hereof.

       

      ARTICLE
        XVII ACTS
        AND DOCUMENTS.

       

      The
        parties agree to do, sign and execute all acts, deeds, documents and corporate
        proceedings necessary or desirable to give full force and effect to this
        Agreement.

       

      ARTICLE
        XVIII COUNTERPARTS.

       

      This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original and all of which together shall constitute one and the
        same
        agreement.

       

      ARTICLE
        XIX MODIFICATIONS
        AND WAIVERS.

       

    

    No
      term,
      provision or condition of this Agreement may be modified or discharged unless
      such modification or discharge is authorized by the Board of Directors of the
      Company and is agreed to in writing and signed by Varda. No waiver by either
      party hereto of any breach by the other party hereto of any term, provision
      or
      condition of this Agreement to be performed by such other party shall be deemed
      a waiver of similar or dissimilar provisions or conditions at the same or at
      any
      prior or subsequent time.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

      ARTICLE
        XX ENTIRE
        AGREEMENT.

       

      This
        Agreement constitutes the entire agreement between the parties with respect
        to
        the subject matter herein and supersedes all prior agreements, negotiations
        and
        discussions between the parties hereto, there being no extraneous agreements.
        This Agreement may be amended only in writing executed by the parties hereto
        affected by such amendment.

       

      ARTICLE
        XXI LAW
        GOVERNING.

       

      Except
        as
        otherwise explicitly noted, this Agreement shall be governed by and construed
        in
        accordance with the laws of the State of New Jersey (without giving effect
        to
        the principles of conflicts of law).

       

      ARTICLE
        XXII JURISDICTION.

    

     

    In
      the
      event of a claim of violation of Sections 7, 8 and/or 9 of this Agreement
      relating to Inventions and Copyrights, Confidential Information, and Varda’s
      post-employment restrictive covenant, the Company may alternatively apply to
      a
      court of competent jurisdiction for a temporary restraining order, preliminary
      injunction, and/or such other legal and equitable remedies as may be appropriate
      because both parties acknowledge that the Company would have no adequate remedy
      at law for such violation or non compliance. Employee hereby consents to the
      jurisdiction of the Courts of the State of New Jersey or the United States
      District Court for the District of New Jersey with respect to such an action
      and
      to service of process upon her in accordance with Section 21.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Employment Agreement
      on
      the day and year set forth above.

     

    
      	 	 	 
	
            	
            	
              /s/
                Michael Varda 

            
	 	
              
Michael
              Varda

    

     

    
      	
            	 	 
	 	
              INTERNATIONAL
                PLAYTHINGS, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:

            

    
      	
            	 	 
	 	Grand Toys International Limited
	 
 	 
 	 
 
	
            	By:  	/s/ Jeff Hsieh
	 	
              

              Name:
                Jeff Hsieh

              Title:
                Chief Executive Officer

            

    

     

    
      
        
        

      

      
        -14-Exhibit
      4.13e

     

    SUB-LEASE
      AGREEMENT

     

    
      	
              DATE

            	
              June 17,
                2007

            

    

     

    
      	
              AGENT:

            	
              AXXA
                REALTIES INC.

            

      	 	 

      	 	Ron Friedman

      	 	Affiliated Real Estate
              Agent

    

     

    
      	
              FROM:

            	
              CORPORATON
                PARAGON INTERNATIONAL

            

      	 	
              Transcanada
                Highway Dorval (Quebec)

            

      	 	 

      	 	
              Attention:
                Mr.
                Mario E. Funez

            

    

     

    
      	
              RE:

            	
              Warehouse
                and office space only, located at 1710 Transcanada Highway, Dorval
                (Quebec) consisting of 104,208 sq.ft of “gross leasable area” for which
                measurements must be confirmed prior to taking
                possession

            

    

     

    It
      is
      hereby understood and agreed by all parties that this Sublease agreement
      replaces all previous agreements between the Sub Tenant and the SubLandlord
      including the sublease agreement
      signed on June 29th, 2004.

     

    Gentlemen:

     

    We,
      CORPORATON
      PARAGON INTERNATIONAL
      (herein
      referred to as the “SubTenant”); hereby offer to Sub-Lease from you GRAND
      TOYS LTD.,
      (herein referred to as the Sub-Landlord”), the property described above (herein
      referred to as the “Premises’), subject to the following terms and
      conditions.

     

    SECTION 1. TERM

     

    The
      term
      shall commence on the 1st day of May 2007, and shall terminate on the 30th
      day
      of September 2009 unless otherwise terminated as set out herein (hereinafter
      referred to as the “Term”), provided the Sub-Tenant is not or has not been in
      default of the obligations pursuant to the Sub-Lease.

     

    RENT:

     

    The
      rental rate shall be $5.25
      per
      sq.ft. per annum commencing May 1st, 2007 until September 30,
      2009.

     

    RENEWAL
      OPTION:

     

    There
      shall be no option to renew.

     

    WAREHOUSE
      FREE RENT:

     

    The
      SubTenant shall have free rent for the first four (4) months from May 1st,
      2007
      to August 31st, 2007 for 45,000 sq.ft. of warehouse.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    OFFICE
      FREE RENT:

     

    The
      SubTenant shall have free rent for the 20,000 sq.ft. of showroom office and
      stock room until December 31st. 2007.

     

    SECTION 2. USE

     

    The
      Premises will be used for warehouse, offices and distribution and other uses
      related to logistic and storage and for no other purpose.

     

    SECTION 3. OCCUPANCY

     

    The
      Sub-Tenant will have the right to occupy the Premises from the date of
      acceptance of the Offer to Sub-Lease. Sub-Landlord represents and warrants
      to
      the Sub-Tenant that there is no default or anticipated defaults under the Lease
      between Sub-Landlord and Head Landlord ( herein referred to as “Head Lease”
).

     

    SECTION 4. SUB-LEASE

     

    This
      Offer to Sub-Lease for the Premises will be considered to be the SubLease.
      The
      Sub-Tenant shall throughout the term carry insurance in accordance with the
      Head-Lease in favor of the SubLandlord and the Head Landlord.

     

    SECTION 5. OPERATING
      EXPENSE

     

    In
      addition to the gross rentals laid out in Clause #1 herein the SubTenant hereby
      undertakes to pay any increase over and above the expenses for 2007 of any
      and
      all expenses incurred regarding the operating and maintenance of the Premises,
      including:

     

    
      	 	
              (i)

            	
              Increases
                in all real estate taxes and/or assessments levied against the Premises
                i.e. Municipal tax, school tax, local improvement tax, M.U.C. tax,
                special
                taxes, surtax and or business tax;

            

    

     

    
      	 	
              (ii)

            	
              Increases
                in the cost of Premise’s insurance; Sub tenant has a right to obtain
                competitive bids.

            

    

     

    
      	 	
              (iii)

            	
              Increases
                in the cost of sprinkler supervisory costs, repair and maintenance
                costs
                and alarm costs; SubTenant has a right to obtain competitive
                bids.

            

    

     

    
      	 	
              (iv)

            	
              SubTenant
                has the right to contact and work with the Head Landlord to contest
                the
                taxes.

            

    

     

    SECTION 6. EXPENSES

     

    
      	 	
              (a)

            	
              The
                SubTenant shall be responsible for the cost of the rail siding. The
                cost
                is approximately $4,500 per year plus
                taxes.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SECTION 7. HEATING
      AND ELECTRICITY

     

    The
      SubTenant shall be responsible to pay the Gas and Electricity.

     

    SECTION 8. SUB-SUBLET
      AND ASSIGNMENT

     

    The
      Sub-Tenant will not sub-sublet the Premises, or assign the SubLease without
      obtaining the prior written consent of the Sub-Landlord, which consent will
      not
      be unreasonably withheld, and provided that the Sub-Tenant always obtains the
      Head Landlord’s consent in accordance with the Head Lease. However, the
      Sub-Tenant shall remain responsible solidarily with the new Sub-Tenant for
      all
      the obligations contained herein. However, the SubTenant has the right to
      release the office space without the SubLandlord’s approval so long as the use
      is for office.

     

    SECTION 9. SECURITY
      DEPOSIT

     

    The
      Sub-Tenant shall provide the Sub-Landlord with a cheque of NINETEEN
      THOUSAND SIX HUNDRED AND TWO AND SEVENTY CENTS ($19,602.70)
      which
      shall be held in trust in Canada on a security deposit until the sublease
      termination. In addition the SubLandlord shall continue to hold in trust, in
      Canada, as security the last months rent presently in the SubLandlord’s
      possession. All interest gains of the said security deposits belong entirely
      to
      the Sub tenant.

     

    SECTION 10. SIGNAGE

     

    The
      Sub-Tenant has the right to install (at its own cost) a sign in front of the
      Premises located at 1710 Transcanada Highway the whole to be determined between
      the parties, but consistent with the bylaws of the City of Dorval
      (Montreal).

     

    SECTION 11. PAYMENT
      OF RENT

     

    Upon
      each
      payment of rent as foreseen herein by the SubTenant to the Sub-Landlord, the
      Sub-Tenant shall have no further liability towards the Landlord for such
      payment.

     

    SECTION 12. PARKING
      OF CARS

     

    The
      Sub-Tenant shall have the right to use the common parking area in the Premise’s
      exterior parking lot.

     

    SECTION 13. PARKING
      OF TRAILERS

     

    The
      Sub-Tenant shall have the right to park trailers in the common shipping
      area.

     

    SECTION 14. SUBLANDLORD’S
      EXERCISE OF RIGHTS

     

    
      	 	
              (i)

            	
              the
                SubTenant fails to pay gross rent or other sums due hereunder on
                the day
                or dates appointed for the payment thereof;
                or

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              the
                Sub-Tenant fails to observe or perform any of the ‘terms, covenants or
                conditions of the Sub-Lease to be observed or performed by the Sub-Tenant,
                provided the Sub-Landlord first gives the Sub-Tenant ten (10) days
                written
                notice of any such failure to perform and the Sub-Tenant, within
                such
                period of ten (10) days fails to commence diligently and thereafter
                to
                proceed diligently to cure any such failure to perform;
                or

            

    

     

    
      	 	
              (iii)

            	
              the
                Sub-Tenant becomes bankrupt or insolvent within the meaning of the
                Bankruptcy and insolvency Act of Canada, or takes or attempts to
                take the
                benefit of any act now or hereafter in force for bankrupt or insolvent
                debtors, or files any proposal or makes any assignment for the benefit
                or
                creditors, or any proceedings for a composition with creditors under
                any
                Federal or Provincial law, if instituted by or against the SubTenant,
                or a
                petition shall be filed against the Sub-Tenant and not be discharged
                or
                bona fide disputed within seven (7) days from the filing thereof.
                The
                Sub-Tenant acknowledges and agrees to waive any rights it may have
                for
                itself or a trustee in bankruptcy under the Bankruptcy and Insolvency
                Act
                of Canada or any other legislation to elect to retain the unexpired
                Term
                of this Sub-Lease in the event of any bankruptcy or insolvency by
                the
                Sub-Tenant;

            

    

     

    
      	 	
              (iv)

            	
              the
                Sub-Tenant sells or disposes of its moveable property of the Sub-Tenant
                or
                removes them from the Premises, other than in the ordinary course
                of
                business;

            

    

     

    
      	 	
              (v)

            	
              the
                Sub-Tenant abandons or attempts to abandon the Premises a receiving
                order
                is made against the Sub-Tenant or a Receiver is appointed by private
                instrument or by any court of competent jurisdiction for all or a
                portion
                of the Sub-Tenant’s Property;

            

    

     

    
      	 	
              (vi)

            	
              the
                Sub-Tenant sub-leases the Premises without prior written consent
                which
                will not be unreasonably withheld or any part thereof to a third
                party or
                assigns or transfers this Sub-Lease to a third party or permits a
                third
                party to use or occupy the Premises, or any part thereof, or grants
                any
                security or encumbrances on this Sub-Lease, the Premises or any of
                its
                property located on the Premises, the SubTenant or any agent of the
                Sub-Tenant falsifies any report required to be furnished to the
                SubLandlord or the Head Landlord, pursuant to the terms of this Sub-Lease
                or the Head Lease;

            

    

     

    
      	 	
              (vii)

            	
              the
                Sub-Tenant, or any person with whom it is affiliated or associated,
                as
                such terms are defined in the Canada Business Corporations Act, is
                in
                default under any agreement entered into with the Sub-Landlord or
                any of
                its affiliates or associates;

            

    

     

    
      	 	
              (viii)

            	
              the
                Sub-Tenant commits any other breach of the provisions of this Sub-Lease
                that is not capable of remedy;

            

    

     

    In
      any of
      these cases the Sub-Landlord shall have the right to terminate this Sub-Lease
      and the Sub-Landlord shall forthwith re-enter the Premises as though the
      Sub-Tenant had not been in possession thereof, subject, however, to the terms,
      covenants and conditions contained in the Sub-Lease, and to the rights of the
      Head Landlord provided for in the Head Lease, or at law.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
      any such re-entry, it is understood and agreed that Rent, refer to
      section 1, continues to be payable in accordance with the terms of this
      Sub-Lease and all of the other terms, covenants and conditions contained in
      the
      Head Lease are to be observed and performed in accordance with the terms of
      the
      Head Lease.

     

    SECTION 15. SPECIAL
      CONDITIONS

     

    Notwithstanding
      the provisions of Article 22 of the Head Lease, the Sub-Landlord guarantees
      the Sub-Tenant, peaceful enjoyment of the Premises and the Head Landlord must
      make any and all repairs necessary to the Premises except minor maintenance
      repairs that shall remain at the SubTenant’s expense.

     

    SECTION 16. PREMISES
      “AS IS”

     

    The
      SubLessor will deliver the Premises on an “as is” basis -except for the work to
      be perform by the Sublandord describe on section 16A-, on the condition and
      understanding the SubLessee is and has occupied the land and building and knows
      the condition of same.

     

    
      	 	
              (a)

            	
              The
                SubLessee shall not have any rights to demolish, make alterations
                and
                installations to the building.

            

    

     

    
      	 	
              (b)

            	
              The
                SubLessee upon the termination of the lease shall restore the building
                in
                the same condition in which it was at the lease commencement save
                for
                normal wear and tear and the SubTenant shall be responsible for all
                damages caused by their use.

            

    

     

    SECTION 16A WORK

     

    The
      Sub
      Landlord will ensure the following work is performed by the head
      landlord.

     

    
      	
            	1)	
              The
                loading dock yard must be
                re-asphalted

            

    

     

    SECTION 17. GUARANTEE

     

    TRANSPORT
      IDEAL INC.
      an
      affiliated company to the Sub-Tenant agrees with the Sub-Landlord, waiving
      all
      benefit of division and discussion, at all times during the Term that it will
      guarantee up to a maximum amount of ONE
      HUNDRED THOUSAND DOLLARS ($100,000.00):

     

    
      	 	
              (a)

            	
              make
                the due and punctual payment of all rent, monies, charges and other
                amounts of any kind whatsoever payable under the Sub-Lease by the
                SubTenant;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              effect
                prompt and complete performance of all and singular the terms, covenants,
                provisions and conditions contained in the Sub-Lease on the part
                of the
                Sub-Tenant to be kept, observed and performed;
                and

            

    

     

    
      	 	
              (c)

            	
              indemnify
                and save harmless the Sub-Landlord from any loss, costs or damages
                arising
                out of any failure by the Sub-Tenant to pay the aforesaid rent, monies,
                charges or other amounts due under the SubLease or resulting from
                any
                failure by the Sub-Tenant to observe or perform any of the terms
                obligations and conditions contained in the
                Sub-Lease.

            

    

     

    SECTION 18. MISCELLANEOUS

     

    
      	 	
              (a)

            	
              The
                Sub-Tenant hereby acknowledges having diligently and thoroughly examined
                the Premises, as well as all Leasehold Improvements therein situated
                and
                declares being entirely satisfied with the state thereof. The Sub-Tenant
                shall not do anything which would cause the Sub-Landlord to be in
                default
                of its obligations under the SubLease and/or the
                Head-Lease.

            

    

     

    
      	 	
              (b)

            	
              The
                Sub-Tenant shall indemnify and save harmless the SubLandlord against
                and
                from any and all rentals, expenses, cost damages, suites, actions
                or
                liabilities arising out of the failure of the Sub-Tenant to perform
                any of
                its obligations hereunder and against and from all claims and demands
                of
                every kind and nature made by any person or persons to or against
                the
                SubLandlord for all and every manner of cost damages and expenses
                incurred
                by, or injury or damage to such person or persons, his, her or their
                property related to or arising from the Sublease and/or the Premises
                or
                the use and occupation thereof and from all costs, legal fees (including
                judicial and extra judicial fees and disbursements). Expenses and
                liabilities incurred in connection with such claim or any action
                or
                proceeding brought in respect
                thereto.

            

    

     

    
      	 	
              (c)

            	
              Save
                and except for its intentional or gross fault, the SubLandlord shall
                not,
                for any reason whatsoever, be responsible for damages suffered by
                the
                SubTenant or any other person by reason of the manner or operation
                of,
                defect in, or want of repair of the Premises, or the building in
                which
                they are located, or any part thereof, nor shall the Sub-Landlord
                be
                responsible for any damage to or loss of any moveable property, nor
                injury
                to the SubTenant or any other person which occurs in, on or about
                the
                Premises, howsoever occurring.

            

    

     

    
      	 	
              (d)

            	
              The
                Sub-Landlord’s sole obligations under the Sublease are those expressly
                stated herein and the Sub-Landlord shall not be liable for any failure
                on
                the part of the Head Landlord to observe and perform its obligations
                under
                the Lease.

            

    

     

    
      	 	
              (e)

            	
              In
                the event the Sub-Tenant fails to perform any of its obligations
                hereunder, the Sub-Landlord shall have, without limiting the foregoing,
                all the rights, remedies, privileges, protections and indemnities
                against
                the SubTenant which the Head Landlord has under the Head Lease for
                a
                breach of the obligations of the Sub-Landlord
                thereunder.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (f)

            	
              The
                Sub-Tenant acknowledges having received a copy of the Head Lease
                and
                declares itself to be familiar with each and every one of its provisions.
                Notwithstanding any contrary provision contained herein, the Sub-Tenant
                guarantees to the Sub-Landlord and binds and obliges itself (i) for
                the
                due and prompt performance of all of the obligations to the Sub-Landlord
                under or in virtue of the Head Lease relating to the Premises and
                whose
                performance will be required during the Term and (ii) for all of
                the
                consequences flowing from any default to perform such
                obligations

            

    

     

    
      	 	
              (g)

            	
              The
                Sub-Landlord and the Sub-Tenant acknowledge and agree that, except
                as
                otherwise expressly provided in this Offer to SubLease, as between
                themselves, the Sub-Lease is and will at all times be deemed to have
                been
                concluded under the same terms and conditions as are contained in
                the Head
                Lease so that the Sub-Tenant is and shall remain obligated towards
                the
                SubLandlord in the same manner as is the SubLandlord obligated towards
                the
                Head Landlord In virtue of the Head
                Lease.

            

    

     

    NOTICE

     

    Any
      notice, or any communication required or permitted to be given to any party
      pursuant to any of the provisions of this Offer to Sub-Lease shall be
      sufficiently given if such notice or other communication is in writing and
      is
      delivered to such party personally, or mailed by registered mail, postage
      prepaid, addressed to such party as follows:

     

    
      	 	
              TO:

            	
              SUB-LANDLORD

            

      	 	 	 

      	 	 	
              GRAND
                TOYS INTERNATIONAL INC.

            

      	 	 	
              c/o
                INTERNATIONAL PLAY THINGS

            

      	 	 	
              Mr.
                Michael Varda

            

      	 	 	
              75D
                Lackawnna Avenue

            

      	 	 	
              Parsippany,
                New Jersey 07054

            

    

     

    
      	 	
              TO:

            	
              SUB-TENANT

            

      	 	 	 

      	 	 	Corporation Paragon Int’l.

      	 	 	Mr. Bernard Pettigrew

      	 	 	1710 Trans Canada Hwy.

      	 	 	
              Dorval,
                (Quebec)

            

      	 	 	
              H9P
                1H7

            

    

     

    or
      to
      such other address of such party as any of them may from time to time notify
      the
      other parties in the manner herein before provided, and any such notice, or
      other communication shall be deemed to have been received by any such party
      when
      delivered to it or to him, or if mailed as aforesaid, on the fifth (5th)
      business day following the date of mailing. In the event of an interruption
      or
      slow down in the Postal System, all notices shall be delivered.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Any
      party
      may change the address set out above by appropriate written notice to the other
      party. In any case, any such written notice shall be deemed to have been
      received on the date of its delivery or, if mailed, four (4) days after the
      mailing thereof.

     

    SECTION 19. LANGUAGE

     

    Tel
      que
      convenu par le SousLocataire et le SousBailleur, ce document a ete redige en
      anglais. / As agreed by both the SubTenant and the Sub-Landlord, this document
      has been drawn up in English.

     

    SECTION 20. ACCEPTANCE

     

    This
      Offer to Lease is open for acceptance by the Sub-Landlord until 5:00 p.m.
      June ___, 2007 after which time, if not accepted, it will become null and
      void and of no effect. Acceptance of this Offer will be deemed to have been
      made
      when signed by the SubLandlord and returned to AXXA REALTIES INC.

     

    
      	
              CORPORATION
                PARAGON INTERNATIONAL

            	 	 	 
	
              (Sub-Tenant)

            	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Per:	/s/ MARIO
              E.
              FUNEZ	 	 	/s/ SERGE
              LEWIS
	 	
              

              Mario
                E. Funez

            	 	 	
              
Witness
	 	
              June
                18, 2007

            	 	 	Serge Lewis
	 	 	 	 	
              June
                18, 2007

            

    

    
       

      
        	
                GRAND
                  TOYS LTD.

              	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Per:	/s/ MICHAEL
                VARDA	 	 	/s/ ANNA
                VREELAND
	 	
                

                
                  CEO

                  International
                    Playthings Inc.

                

              	 	 	
                
Witness

      

       

      
        
          
          

        

        
          8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]