Document:

EXHIBIT 10.6

                     INTERNATIONAL REPRESENTATION AGREEMENT

THIS AGREEMENT is made on the 22 day of April, 2004.

BETWEEN

     1.   PEAK ENTERTAINMENT LTD of Bagshaw Hall,Bagshaw Hill , Bakewell,
          Derbyshire, DE45 1DL United Kingdom ("Peak"); and

     2.   THE SHARPE COMPANY INC, 1020 Manhattan Beach Blvd., Suite #204,
          Manhattan Beach, California 01266 USA.

1.       DEFINITIONS

         The following capitalized terms shall have the following meanings for
         the purposes of the Agreement:

1.1      "Parties" mean:  Peak and the Agent.

1.2      "Expiry Date" means:  30th September 2005.

1.3      "Term" means: The period starting on the date of this Agreement and
         ending on (and including) the Expiry Date unless earlier determined as
         provided in this Agreement.

1.4      "Territory" means:  The USA, its territories and possessions and
         Canada.

1.5      "Brand" means: The names, characters, likenesses, designs and/or visual
         representations developed and/or owned by Peak entitled Countin Sheep.

1.6      "Brand Name Merchandising Rights" mean: The right to use the Brand and
         all trade marks, copyright and design rights therein in connection with
         the manufacture and/or publishing, distribution, sale, exploitation and
         advertising of merchandise and/or services.

1.7      "Character Merchandising Rights" mean: The right to use the fictitious
         characters associated with the Brand and all trade marks and copyright
         therein in connection with the manufacture and/or publishing,
         distribution, sale, exploitation and advertising of merchandise and/or
         services in connection with the Brand.

1.8      "Merchandising Rights" mean:  The Character Merchandising Rights and
         Brand Name Merchandising Rights.

1.9      "Licence" means: An agreement with a third party for Merchandising
         Rights in the form approved by Peak, as amended from time to time by
         agreement in writing between the Parties.

                                        1

<PAGE>

1.10     "Licensee" means: A third party to whom Merchandising Rights have been
         given.

1.11     "Business" means: The negotiation by the Agent as agent for Peak of
         Licenses for exploitation of the Merchandising Rights for the Territory
         and all matters related thereto except, as specified in Schedule One
         attached hereto and made a part hereof.

1.12     "Gross Receipts" mean: The gross royalties including all guarantees and
         advances actually received in connection with exploitation of the
         Merchandising Rights for the Territory (prior to deduction of Agent's
         Commission) together with (where applicable) an amount equal to the
         benefit or value of any available tax credit, repayment, exemption,
         allowance or deduction (available as a consequence of or in connection
         with such credit, repayment, exemption or allowance) whether pursuant
         to any domestic or local tax legislation or regulation or pursuant to
         any applicable double taxation treaty and whether or not such tax
         credit, repayment, exemption, allowance or deduction has been claimed.

1.13     "Commission" means: The Commission payable to the Agent which will be
         30% of Gross Receipts received for the Territory except as specified in
         Schedule One.

1.14     "Quarter" means a three month period ending on 31st March, 30th June,
         30th September and 31st December.

2.       GRANT AND RESERVATIONS

2.1      Subject as provided below, Peak grants to the Agent for the Term, the
         sole and exclusive right to negotiate with manufacturers and other
         interested parties, Licenses for Merchandising Rights for the Territory
         and subject to Peak's approval, to issue Licenses for such Rights
         pursuant to the terms of this Agreement.

2.2      The grant of rights shall not include the exclusions set forth in
         Schedule One or the right to arrange for the manufacture of merchandise
         incorporating the Merchandising Rights for promotional purposes (herein
         referred to as "Promotional Arrangements"), except as authorized by
         Peak in writing. It shall be understood and agreed, however, that
         during the Term of this Agreement, Agent shall have the non-exclusive
         right to propose Promotional Arrangements for the Territory for Peak's
         written approval and in the event that Peak shall approve any such
         Promotional Arrangements proposed by Agent, Agent shall receive its
         Commission in the percentage specified herein above. Peak shall have
         the absolute right to reject any such Promotional Arrangements proposed
         by Agent, subject to Peak's good faith agreement not to enter into any
         Promotional Arrangements or other similar agreements for the Territory
         with an entity proposed by Agent but rejected by Peak for a period of
         one (1) year thereafter without payment of compensation to Agent of
         Agent's Commission. Notwithstanding the foregoing, in the event that
         Peak shall enter into a Promotional Arrangement which shall include the
         Territory other than a

                                        2

<PAGE>

         Promotional Arrangement proposed by Agent, Agent shall be entitled to
         fifty percent (50%) of its usual Commission from Gross Receipts
         received for, or attributable to the Territory granted herein.

2.3      Without prejudice to the remaining provisions of this Agreement, Peak
         reserves the right:

         2.3.1    to vary the standard form Licences in respect to any one or
                  more prospective Licensees;

         2.3.2    at its sole discretion, to decline consenting to the Agent
                  entering into any one or more Licences negotiated by the Agent
                  on its behalf;

         2.3.3    upon expiration of the rights set forth in the letter
                  agreement attached hereto and made a part hereof as Exhibit 1,
                  to negotiate with and grant manufacturers and other interested
                  parties Licenses in relation to the distribution of
                  merchandise in the Territory provided that during the Term of
                  this Agreement and during any post-termination compensation
                  period set forth in the letter agreement, Agent shall receive
                  a Commission in the amount specified herein in connection with
                  any such distribution in the Territory;

         2.3.4    to exclude certain products otherwise included under this
                  Agreement as specified in Schedule One;

         2.3.5    Intentionally left blank.

3.       PEAK'S OBLIGATIONS

         Peak agrees severally with the Agent throughout the Term:

3.1      Support and Information

         To support the Agent in its efforts to promote Business and in
         particular to supply Agent at Peak's expense with a reasonable number
         of samples of artwork, promotional material, drawings, and general
         information relating to the Merchandising Rights as necessary for Agent
         to conduct the Business contemplated herein, and Peak shall keep the
         Agent reasonably so supplied throughout the Term.

3.2      Advertising and Promotion

         3.2.1    To refer to the Agent any enquiries from prospective Licensees
                  or other leads for the Territory.

         3.2.2    To supply to the Agent information which may come into its
                  possession which may assist the Agent in carrying on the
                  Business.

                                        3

<PAGE>

3.3      Maintenance of Rights

         Subject to Clause 4.5 of this Agreement to maintain its Merchandising
         Rights during the Term (including obtaining, maintaining and protecting
         intellectual property rights as reasonably necessary to conduct the
         Business contemplated herein) and not to cause or permit anything which
         may damage or endanger them or its title to them or assist or suffer
         others to do so and to promptly consult with the Agent if the
         Merchandising Rights are or appear likely to be damaged or endangered.

3.4      Payment of Monies

         3.4.1    In the event that during the Term of this Agreement or after
                  expiry or termination thereof, Peak shall receive any monies
                  from which Agent shall be due a Commission or other share,
                  Peak shall account to and make any payments due Agent
                  immediately and in any event, within fifteen (15) days
                  following Peak's receipt of any such sums; and

         3.4.2    Peak shall pay interest if it shall make a late payment of any
                  monies due Agent which were previously received by Peak at the
                  rate of 2% per annum above the base rate for the time being of
                  Lloyds Bank Plc.

4.       AGENT'S OBLIGATIONS

         The Agent agrees with Peak throughout the Term:

4.1      Diligence

         To use its best endeavors to diligently assist Peak in protecting the
         interests of Countin Sheep the Brand in the Territory.

4.2      Scope of activity and authority

4.2.1             Not to deal directly or indirectly with any prospective
                  Licensee or with any person if Agent, knows that goods
                  produced under a License granted to such entity would be
                  resold outside the Territory without written approval from
                  Peak.

         4.2.2    Not to describe itself as agent or representative of Peak
                  except as expressly authorised by this Agreement.

         4.2.3    Not to pledge the credit of Peak in any way without the
                  express written approval of Peak.

         4.2.4    Not to make any commission or demand or receive payment from a
                  Licensee for the grant or renewal of a Licence apart from the
                  agreed Commission. Notwithstanding the foregoing, Peak
                  acknowledges and agrees that payments may be received by Agent
                  from a Licensee in

                                        4

<PAGE>

                  connection with an advertising and/or trade show cooperative
                  fund, provided that such fund shall be established by Agent
                  with Peak's approval and the payments received in connection
                  with such cooperative fund shall be used solely for the
                  funding of a promotional advertisement for the Brand and/or
                  marketing or display of the Brand at sales outlets, trade
                  shows and other similar events and such payments shall not be
                  deemed a part of Gross Receipts.

         4.2.5    Not to make any representations or give any warranties to
                  prospective Licensees other than to those contained in the
                  terms of the Licence.

4.3      Promotion

         To use its best endeavours as commercially reasonable to induce
         manufacturers to make use of the Merchandising Rights in relation to
         the manufacture, promotion or sale of goods for the Territory in
         particular by:

         4.3.1    Conducting meetings at Agent's offices or other locations or
                  by personal visits to and correspondence with potential
                  Licensees as Agent determines reasonably necessary and
                  warranted for the Territory;

         4.3.2    advertising and distribution of publicity matter as Agent
                  determines is reasonably necessary and warranted for the
                  Territory, subject however to the specific prior approval in
                  writing in all cases by Peak of the form of such advertising
                  and publicity matter;

         4.3.3    attendance at trade shows and other sales outlets as Agent
                  determines is reasonably necessary and warranted for the
                  Territory;

         4.3.4    preparing licensing presentation materials for the Brand
                  within a reasonable period of the date of this Agreement in a
                  form approved by Peak in writing prior to use.

4.4      Licences and Approvals

         4.4.1    To use its best endeavors to refer to Peak any enquiries which
                  may come into its possession which may assist Peak or its
                  subsidiaries to grant Licences in connection with the
                  exploitation of the Brand.

         4.4.2    Before entering into any Licence to provide details of the
                  proposed Licensee to Peak.

         4.4.3    Only to enter into Licences with Licensees on terms and in a
                  form which has generally been agreed to with Peak and not to
                  agree any amendments to the Licence without the consent of
                  Peak.

         4.4.4    Forthwith on a Licence being entered into with a Licensee to
                  provide to Peak (as appropriate) a true copy of the Licence.

                                        5

<PAGE>

         4.4.5    To ensure that all Licenses procured by Agent provide that: 1)
                  before the commencement of manufacture of merchandise,
                  Licensees shall be required to submit to Agent, for Peak's
                  written approval, a sample of each design to be used on
                  products, a sample of any written material to be used on
                  products, a sample of any packaging material and (where the
                  product is to be sold with confectionery) a sample of all
                  printing inks and constituent elements of the product (e.g.
                  resin for PVC collectibles)l and 2) once the design is
                  approved by Peak, the Licensee will be further required to
                  submit to agent, for Peak's written approval, a sample of each
                  product bearing the approved design together with packaging.
                  The Agent shall submit all such samples received by Agent to
                  Peak for Peak's written approval and Agent shall not authorise
                  any Licensee to manufacture any product bearing a design not
                  so approved.

         4.4.6    Intentionally left blank.

4.5      Protection of Property

         4.5.1    Not to knowingly or intentionally cause or permit anything
                  which may damage or endanger the Merchandising Rights or
                  Peak's title to them or knowingly or intentionally assist or
                  allow others to do so.

         4.5.2    To notify Peak of any suspected infringement of Merchandising
                  Rights which may come to Agent's attention.

         4.5.3    To take such reasonable action as Peak (as appropriate) may
                  direct at the expense of Peak in relation to such
                  infringement. Notwithstanding the foregoing, Agent shall not
                  be required to commence or be a party to any action in
                  connection with such infringement unless Agent shall so elect.

         4.5.4    Intentionally left blank.

         4.5.5    To ensure that each Licence procured by Agent includes an
                  indemnity provision from the Licensee for any liability
                  incurred to third parties for any use of the Merchandising
                  Rights otherwise than in accordance with this Agreement and
                  the License (except with respect to claims that the Brand and
                  intellectual property therefore infringe upon the rights of a
                  third party).

         4.5.6    On the expiry or termination of this Agreement forthwith to
                  cease to use the Merchandising Rights save as expressly
                  authorised by Peak in writing.

         4.5.7    Not to apply for registration of any part of the Merchandising
                  Rights as a trade mark but to give Peak at Peak's expense any
                  assistance it may reasonably require in connection with the
                  registration of any part of the Merchandising Rights as a
                  trade mark in any part of the world and not to knowingly or
                  intentionally interfere with Peak in any manner nor attempt

                                        6

<PAGE>

                  to knowingly or intentionally prohibit Peak's registration of
                  any part of the Merchandising Rights or any name, device or
                  design created or controlled by Peak.

         4.5.8    Not to use the Merchandising Rights otherwise than as
                  permitted by this Agreement.

         4.5.9    Not to use any name or mark confusingly similar to any part of
                  the Merchandising Rights.

         4.5.10   Not to use the Merchandising Rights except directly in the
                  Business.

         4.5.11   Not to use any part of the Merchandising Rights or any
                  derivation of it in its trading or corporate name.

4.5.12            To hold any additional goodwill generated by the Agent for the
                  Merchandising Rights or the Business as bare trustee for the
                  Principal.

4.6      Good Faith

         In all matters to act loyally and faithfully toward Peak.

4.7      Compliance

         4.7.1    To obey Peak's reasonable orders and instructions in relation
                  to the conduct of the Business.

         4.7.2    To conduct the Business in an orderly and businesslike manner
                  maintaining at its own expense an office and organisation
                  suitable and sufficient for the proper timely and efficient
                  conduct of its obligations under this Agreement and to comply
                  in the conduct of the business with all applicable laws,
                  bylaws and requirements of any governmental or regulatory
                  authority applicable to the Business.

4.8      Disclosures

         On entering into this or any other agreement or transaction with Peak
         during the Term or any extensions of it to make full disclosure of all
         material circumstances and of everything known to it respecting the
         subject matter of the relevant contract or transaction which would be
         likely to influence the conduct of Peak including in particular the
         disclosure of other agencies in which the Agent is interested directly
         or indirectly.

4.9      Secrecy

         4.9.1    Not at any time during or after the Term to divulge to any
                  person any information relating to the Business or affairs of
                  Peak which Agent knows or should know to be confidential other
                  than to Agent's attorneys and

                                        7

<PAGE>

                  accountant or financial advisor and to other persons who have
                  signed a secretary undertaking in the form approved by Peak.

         4.9.2    Not to permit any person to act or assist in the Business
                  other than Agent's attorneys and accountant or financial
                  advisor until such a person has signed such undertaking.

4.10     Accounts

         To keep accurate records and accounts in respect of the conduct of the
         Business and in accordance with generally acceptable accountancy custom
         and practice and in particular:

         4.10.1   At Peak's election and at Peak's sole expense, to have such
                  records and accounts audited by qualified auditors once a year
                  during the Term. Any such election by Peak shall be made in
                  writing to Agent and the costs of such audit shall be paid for
                  by Peak promptly upon Peak's receipt of any invoice therefore.

         4.10.2   At Peak's election and at Peak's sole expense, to have copies
                  of such audited accounts submitted to Peak on an annual basis
                  no later than the 60th day following the end of its financial
                  year (30th April each year) provided that Peak shall have
                  given Agent timely written notice of its election to require
                  such audit so that such audit may reasonably be performed and
                  completed by the date required.

         4.10.3   Keep said accounting records for not less than six years from
                  the date to which they pertain.

         4.10.4   At Peak's election and at Peak's sole expense, to supply to
                  Peak no later than four months after the end of each calendar
                  quarter or such other accounting period agreed to by the
                  Parties, an auditor's unqualified certificate confirming that
                  the Agent has remitted to Peak the correct amounts of monies
                  due under this Agreement for such period. Any such election by
                  Peak shall be made in writing to Agent in a timely manner so
                  as to reasonably allow Agent the necessary time to arrange for
                  such certificate to be provided in the time required and the
                  costs thereof shall be paid for by Peak promptly upon Peak's
                  receipt of an invoice therefore.

         4.10.5   At Peak's election and at Peak's sole expense, to permit a
                  qualified accountant appointed by Peak (such qualified
                  accountant to include the Internal Audit Department of Peak)
                  to inspect the accounting records of Agent pertaining to the
                  Business referred to herein for the purpose of verifying the
                  amounts payable to Peak. Any such inspection shall be
                  conducted at reasonable times during normal business hours and
                  upon no less than ten (10) business days written notice to
                  Agent and such inspection shall be made no more than one time
                  in any twelve months period.

                                        8

<PAGE>

4.11     Payment of Monies

         4.11.1   The Agent shall use reasonable commercial efforts to
                  diligently collect royalties due from Licensees in connection
                  with Licenses procured by Agent. Notwithstanding the forgoing,
                  Agent shall not be required to commence or be a party to any
                  action in connection with the collection of royalties unless
                  Agent shall so elect.

         4.11.2   The Agent shall within forty five (45) days after the end of
                  each Quarter or such other period agreed between all the
                  Parties from time to time supply to Peak a schedule showing
                  royalties received during the immediately preceeding Quarter
                  and an estimate of royalties outstanding from Licensees
                  together with an aged analysis of outstanding monies together
                  with details of actions taken to recover such outstanding
                  monies.

         4.11.3   The Agent shall immediately and in any event within 7 business
                  days following Agent's receipt of an invoice following the
                  submission of a royalty statement to Peak for the end of each
                  Quarter (or such other period agreed between all the Parties
                  from time to time) as specified in 4.11.2, pay by direct
                  telegraphic transfer into an account nominated by Peak (as set
                  out below) royalties received by the Agent (after deducting
                  Commission due to the Agent and any government imposed
                  withholding tax) for such prior Quarter. Such monies shall
                  become due from the date of invoice.

                  Bank Details Peak Entertainment Ltd
                  Lloyds TSB
                  Sort 30-00-09
                  Act 02560768

         4.11.4   The Agent shall pay interest if it shall make a late payment
                  of monies previously received by the Agent at the rate of 2%
                  per annum above the base rate for the time being of Lloyds
                  Bank Plc.

4.12     Customer List

         To keep a list of actual Licensees and potential Licensees contacted
         and to supply a copy of it to Peak upon request.

4.13     Inspection of Books and Premises

         To permit Peak or its authorized representatives at all reasonable
         times during normal business hours to inspect all things material to
         the Business and to take copies of any relevant document and for this
         purpose to enter any premises used in connection with the Business.
         Peak acknowledges and agrees that any such inspection shall be
         conducted at Peak's expense, upon ten (10) business days

                                        9
<PAGE>

         written notice to Agent and such inspection shall be made no more than
         one time in any twelve month period.

4.14     Assignment

         Not to assign this Agreement in any way without consent of Peak which
         such consent shall not be unreasonably withheld by Peak.

4.15     Delegation

         Not to delegate any duties or obligations arising under this Agreement
         otherwise than may be expressly permitted under its terms without the
         consent of Peak.

4.16     Pay Expenses

         Except as otherwise provided herein, to pay all expenses of and
         incidental to the carrying on of the Business.

4.17     Information

         To provide Peak within 45 days of the end of each Quarter with the
         following information:

         4.17.1   details of royalty received during the preceding Quarter;

         4.17.2   a forecast, to the extent reasonably possible, of royalties to
                  be received in the next three months;

         4.17.3   details of royalty due and not paid; and

         4.17.4   a Licensee progress statement if reasonably possible.

         4.17.5   Intentionally left blank.

5.       TERMINATION

5.1      This Agreement shall terminate automatically on the Expiry Date and in
         the case of Clauses 5.2 to 5.3 inclusive, forthwith upon service of
         written notice to that effect in the event that a breach referred to in
         such written notice is not cured within the time period provided.

5.2      Breach

         If any of the parties fails to comply with any of the terms and
         conditions of this Agreement and such failure if capable of remedy is
         not remedied within thirty (30) days of receipt of a written notice of
         such failure that the party not in default may terminate this Agreement
         by giving 30 days notice to the other.

                                       10
<PAGE>

5.3      Insolvency

         If any of the Parties goes into either compulsory or voluntary
         liquidation (save for the purpose of reconstruction or amalgamation) or
         if an administrator or administrative receiver is appointed in the
         respect of the whole or any part of its assets or if any of the Parties
         makes an assignment for the benefit of or composition with its
         creditors generally or threatens to do any of these things (or any
         judgment is made against any of the Parties in any jurisdiction which
         will materially and negatively impact on this Agreement) and such event
         is not remedied within 30 days after notice of the other Parties
         intention to terminate.

6.       TERMINATION CONSEQUENCES

6.1      Procedure

         On the termination of this Agreement the Agent undertakes:

         6.1.1    to return to Peak all samples, drawings, publicity,
                  promotional and advertising material used in the Business
                  which are then in Agent's possession or control;

         6.1.2    not to make any further use nor reproduce nor exploit in any
                  way the Merchandising Rights or Peak's name or any mark or
                  representation confusingly similar to the Merchandising
                  Rights.

6.2      Commission on Termination

         6.2.1    Provided that termination is not due to a material breach of
                  this Agreement by the Agent the Agent shall be entitled:

                  6.2.1.1      to its Commission for the full term of the
                               Licence in respect of Licenses granted before the
                               date of termination but (subject to 6.2.1.2
                               below) and for the full term of any Licenses or
                               other similar agreement entered into by or on
                               behalf of Peak within one (1) year after the date
                               of termination hereof if the Agent may have been
                               responsible in whole or in part for the
                               negotiation of such License or other agreement
                               during the Term of this Agreement or if such
                               License or other agreement is entered into with
                               an entity to whom Peak was introduced by Agent
                               during the Term of this Agreement.

                  6.2.1.       In respect of renewals and extensions made after
                               the date of termination for Licenses granted
                               prior to termination, Agent shall be entitled to
                               receive its Commission under the renewed or
                               extended License at the rate of 50% of the
                               Commission it would have received had this
                               Agreement not been terminated for a period of 2
                               years following the date of renewal of the

                                       11

<PAGE>

                               License or for the full term of such renewal or
                               extension, whichever is shorter.

         6.2.2    If termination is due to a material breach by the Agent then
                  the Agent shall not be entitled to its Commission in respect
                  of Gross Receipts due from Licensees after the date of
                  termination.

         6.2.3    On termination for whatever reason the Agent shall cease to be
                  entitled to collect royalties from Licensees and instead Peak
                  shall collect such royalties and shall then account to the
                  Agent for the Agent's Commission within 14 days of Peak
                  receiving any Gross Receipts from Licensees for the Territory.
                  On termination, the Agent shall pass to Peak all its records
                  relating to collection of royalties and in particular
                  information related to outstanding royalties.

6.3      Existing Rights

         The expiry or termination of this Agreement shall be without prejudice
         to any rights which have already accrued to either of the Parties under
         this Agreement.

7.       INDEMNITY

7.1      The Agent shall indemnify Peak against all actions, claims, costs,
         damages and expenses which it may suffer or sustain as a result of
         actions of the Agent which have not been authorised by Peak provided
         that Agent shall be given prompt notice of any such action or claims
         and Agent shall have the right, at its sole option, to conduct the
         defense of any such action or claims.

7.2      Peak shall indemnify the Agent against all actions, claims, costs,
         damages and expenses arising out of the Agent's use of the Brand and/or
         the licensing of the Merchandising Rights and intellectual property
         associated with the Brand in accordance with the terms of this
         Agreement provided that peak shall be given prompt notice of any such
         action or claims and Peak shall have the right, at its sole option, to
         conduct the defense of any such action or claims.

8.       INSPECTION

         The Agent shall permit Peak at all reasonable times during normal
         business hours to inspect the Agent's premises in order to satisfy
         itself that the Agent is complying with its obligations under this
         Agreement. Any such inspection shall be made in accordance with the
         provisions set forth in paragraph 4.13.

9.       MISCELLANEOUS

9.1      No Waiver

         No waiver of any of the obligations under this Agreement shall be
         deemed effective unless made in writing nor shall any waiver in respect
         of any breach be

                                       12

<PAGE>

         deemed to constitute a waiver of or consent to any subsequent breach by
         the Parties of its obligations.

9.2      Notices

         Any Notice to be served on either of the Parties by the other shall be
         sent by pre-paid Recorded Delivery or Registered Post or by facsimile
         to the address stated in Clause1 and shall be deemed to have been
         received by the addressee within 72 hours of confirmed delivery.

9.3      Arbitration

         All questions or differences whatsoever touching this Agreement between
         the Parties shall be referred to a single arbitrator to be agreed upon
         by the Parties, or, failing agreement, to be appointed by the then
         President of the Law Society, such arbitrator to have all powers
         conferred on arbitrators by the Arbitration Act 1950 or any statutory
         modification or re-enactment of it for the time being.

9.4      Choice of Law

         This Agreement shall be governed by English Law in every particular
         including formation and interpretation and shall be deemed to have been
         made in England.

10.      TRANSMISSION OF BENEFIT

         This Agreement shall be binding upon and shall inure to the benefit of
         the Parties and its successors and assigns.

11.      ENTIRE UNDERSTANDING AND VARIATION

11,1     This Agreement, including Schedule One and Exhibit "1" attached hereto
         and made a part hereof, embodies the entire understanding of the
         Parties in respect of the matters contained or referred to in it and
         there are no promises, terms, conditions or obligations oral or
         written, expressed or implied other than those contained in this
         agreement.

11.2     No other variation or amendment of this Agreement or oral promise or
         commitment related to it shall be valid unless committed to in writing
         and signed by a director of Peak and Agent.

12.      FORCE MAJEURE

         If the performance of this Agreement is prevented, restricted or
         interfered with by reason of circumstances beyond the reasonable
         control of the party obliged to perform it, the party so affected upon
         giving proper notice to the other party shall be excused from
         performance to the extent of the prevention, restriction or
         interference but the party so affected shall use its best efforts to
         avoid or remove such causes of non-performance and shall continue
         performance under the

                                       13

<PAGE>

         Agreement with the utmost despatch whenever such causes are removed or
         diminished.

13.      HEADINGS

         The headings of conditions are for convenience of reference only and
         shall not affect their interpretation.

AS WITNESS the hands of the duly authorised representatives of the Parties to
this Agreement the day and year first before written.

Signed on behalf of Peak Entertainment Ltd:

/s/ P. Shorrocks
.................................................
(Director)

Date: ..................22-4-04.................

Signed on behalf of

/s/
.................................................
(Director)

Date: ............June 15th 2004................

                                       14

<PAGE>

                                  SCHEDULE ONE

                                   EXCLUSIONS

                           1) Manufacturing and distribution Rights for Plush
characters in the type, materials and sizes currently a part of the Countin'
Sheep core plush line manufactured by Peak on the date of commencement of this
Agreement shall be excluded from the grant of rights contained in this Agreement
except, as otherwise agreed to by the Parties in a separate letter agreement
attached hereto as Exhibit "1" and Agent shall be entitled to compensation in
connection therewith in the percentage specified in said Exhibit.

                           2) TV and video distribution shall be excluded from
the grant of rights contained in this Agreement, however, Peak acknowledges and
agrees that:

a) should a third party licensed to manufacture and sell toys or other types of
licensed merchandise be granted rights to sell and distribute any videos for the
Brand in combination with any such toy products or other licensed merchandise
(herein referred to as "Video Combination Packages"), Agent shall receive a
Commission from Peak of fifty percent (50%) of the percentage specified in
clause 1.13 of this Agreement (i.e., one-half of Agent's normal Commission) for
all sales and distribution of such Video Combination Packages; and

b) should Studio Works (or an affiliate of Studio Works) be granted rights to
sell and distribute Video Combination Packages, Agent shall receive a Commission
from Peak in the full amount of the percentage specified in clause 1.13 for all
sales and distribution of such Video Combination Packages sold by Studio Works
or its affiliates. However, should another entertainment company (other than
Studio Works or its affiliates) be granted rights to sell and distribute Video
Combination Packages, Agent shall not be entitled to any Commission in
connection with such sales.

For purposes of this Agreement, all references herein to a "video" or "Video
Combination Packages" shall mean video formats, DVD's or other entertainment
recording representation products whether now existing or hereafter created.

Rest of page intentionally left blank.

                                       15

<PAGE>

                                   EXHIBIT "1"

                                LETTER AGREEMENT

See Attached.

                                       16

<PAGE>

Charles Day
The Sharpe Company Inc.
1020 Manhattan Beach Blvd., Suite #204
Manhattan Beach, CA  90266, USA

19 Sep 03

Re: Letter of agreement for placement of Countin Sheep plush line for USA
    distribution

Dear Charles:

This letter confirms that The Sharpe Company Inc. ("Shapre") is hereby appointed
by Peak Entertainment Ltd ("Peak") as our sole and exclusive agent to find a
distributor ("Distributor") within nine months commencing October 1st 2003 for
the sale and distribution in the United States of the core plush line of
Countin' Sheep and have them purchased from ourselves FOB Hong Kong at a price
to be paid by the Distributor to be between $1.60 and $1.80 or such higher price
as may be negotiated for orders paid for directly by a customer of the
Distributor (i.e., a "retailer"). If a Distributor is not found within this
initial nine month period then, Sharpe can continue on a month-by-month basis
upon the terms set forth herein, however, either party can terminate this
agreement after the initial nine month period by giving one month's written
notice to the other party. The aforesaid initial nine month period and any
continuation of said period, if applicable, shall be collectively referred to as
the "Term".

As compensation ("Compensation") for Sharpe's services in connection with the
foreign, a commission will be paid as outlined below.

1.) Sharpe shall be entitled to receive from Peak, 8% of the gross order value
on orders bought and paid for by a USA Distributor or, 30% of the royalty amount
agreed upon with the Distributor on orders paid for directly by a retailer
(referred to herein as "Direct Sales"). Peak shall invoice the Distributor or
retailer, as applicable, on all such sales and the percentage Compensation due
Sharpe as specified herein will be paid to Sharpe by Peak as a "Finder's Fee"
promptly on clearance of funds into Peak's account and such "Finder's Fee" shall
be retained by Sharpe and will not be deemed a part of Gross Receipts (as such
term is defined in the Agency Representation Agreement to which this letter is
attached); and

2.) Additionally, all Distributors shall be required to pay Sharpe a royalty on
their sales of the plush product in the United States ar a rate of 10%
(excluding Direct Sales wherein a retailer pays Peak directly) and Peak shall
use its best efforts to ensure compliance with such requirement. Sharpe shall be
entitled to retain a Commission of thirty percent (30%) of the gross royalties
paid by a Distributor in connection with the foregoing and the balance of any
such royalties received by Sharpe shall be remitted to Peak in accordance with
the provisions set forth in the Agency Representation Agreement for payment of
monies due Peak.

For the avoidance of doubt, no royalty shall be paid to Sharpe by the
Distributor in connection with Direct Sales as defined above. Rather, the
parties acknowledge and

                                       17

<PAGE>

agree that in the event of any such Direct Sales, the Distributor shall be
required to use its best efforts to negotiate a higher purchase price for the
product which such amount shall include the commission due the Distributor as
well as a royalty amount to be agreed upon by Sharpe and Peak with the
Distributor on a case by case basis. Such purchase price shall be payable by the
retailer directly to Peak, and as provided in paragraph 1 above, Sharpe shall
receive from Peak, 30% of the agreed upon royalty amount incorporated in the
purchase price from payments received by Peak from a retailer in connection with
such Direct Sales. Additionally, Peak shall compensate the Distributor from such
sums received by Peak in connection with any such Direct Sales.

In the event that this agreement for rights to find a Distributor shall expire
or be terminated, Sharpe shall be entitled to continue to receive the
Compensation provided above for the full term of all Commissionable Agreements
(as such term is defined below) and for any modifications, extensions or
renewables of such Commissionable Agreements.

As used herein, a Commissionable Agreement shall be defined as any and all
agreements entered into by or on behalf of Peak during the Term of this
agreement for distribution of the core plush line of Countin'Sheep in the United
States and any such agreements entered into by or on behalf of Peak within a
period of one (1) year after expiration of the Term with any entity to whom Peak
was introduced by Sharpe during the Term hereof or resulting from a deal
proposal substantially negotiated or submitted to Peak by Sharpe during the
Term.

Further, the Parties hereto acknowledge and agree that notwithstanding the
exclusions set forth in Schedule One of the attached Agency Representation
Agreement, during the Term hereof, Sharpe shall also have the sole and exclusive
right to submit proposals to Peak for the manufacture (as well as distribution
and sale) of product comprising the core plush line of Countin' Sheep and should
Peak decide in its sole discretion, to permit the manufacture of such products
for the United States, Sharpe shall be entitled to the Commission set forth in
the Agency Representation Agreement and paragraph 1 of Schedule One of said
Agreement shall be deleted from the exclusions set forth in said Agreement.

Agreed and accepted by:

Peak Entertainment Ltd    /s/ P. Shorrocks
                        --------------------------------------

Name / Title           Commercial Director
                   -------------------------------------------

Date   22-4-04
      -----------------------

The Sharpe Company Inc.     /s/ C.W. Day
                         -------------------------------------

Name /Title    C.W. Day - President
            --------------------------------------------------

Date   June 15th 2004
      -----------------------

                                       18EXHIBIT 10.7

                              DATED APRIL 27, 2004
--------------------------------------------------------------------------------

          (1) PEAK ENTERTAINMENT LTD

          (2) CADACO

                   -------------------------------------------

                             DISTRIBUTION AGREEMENT

                                   NO. DIST030

                                  COUNTIN SHEEP

                   -------------------------------------------

<PAGE>

This AGREEMENT is made on the 27th    day of     April    2004

BETWEEN

1.     PEAK ENTERTAINMENT LTD whose registered office is at Bagshaw Hall,
       Bagshaw Hill, Bakewell, Derbyshire, DE45 1DL, England ("Peak")

AND

       CADACO, whose registered office is at 4300 West 47th Street, Chicago,
Illinois, 60632, USA ("Distributor")

BACKGROUND

(A)    Peak owns or controls rights to the Products in the Territory and
       manufactures the products through its Affiliate Jusco Toys Limited.

(B)    The Distributor is experienced in marketing and selling in the Territory
       and has agreed to act as the Distributor in the Territory.

(C)    Peak wishes to appoint the Distributor as an exclusive distributor in the
       Territory for the Products upon the Terms and Conditions of this
       Agreement.

IT IS HEREBY AGREED as follows:

1. DEFINITIONS AND INTERPRETATION

1.1    In this Agreement unless the context otherwise requires the following
       words shall have the following meanings:

       "ADVANCE"                      an initial non-refundable advance Royalty
                                      payment.

       "AFFILIATE"                    any person which is, in relation to a
                                      company, its parent undertaking or its
                                      subsidiary undertaking, or a subsidiary
                                      undertaking of its parent undertaking or
                                      any other person controlled by or under
                                      the same control either directly or
                                      indirectly. "Parent Undertaking" and
                                      "subsidiary undertaking" shall have the
                                      meanings attributed to them in sections
                                      258 and 259 Companies Act 1985.

       "AGREED PERCENTAGE"            10% of Net Selling Price

       "BUSINESS                      DAY" any other day other than Saturday or
                                      Sunday or a public or bank holiday in
                                      England or the USA.

<PAGE>

       "COMMENCEMENT DATE"            The date hereof.

       "CONFIDENTIAL INFORMATION"     all information in respect of the business
                                      of Peak or its Affiliates including,
                                      without prejudice to the generality of the
                                      foregoing any ideas; business methods;
                                      finance; prices, business, financial,
                                      marketing, development or manpower plans;
                                      customer lists or details; computer
                                      systems and software; products or
                                      services, including but not limited to
                                      know-how or other matters connected with
                                      the Products; and information concerning
                                      Peak's and its Affiliates relationships
                                      with actual or potential clients,
                                      customers or suppliers and the needs and
                                      requirements of Peak and its Affiliates
                                      and of such persons.

       "CUSTOMER"                     any person with whom the Distributor
                                      enters into a contract for the sale and
                                      purchase of the Products.

       "GUARANTEED                    ROYALTY" being the minimum Royalty payable
                                      by the Distributor during the Term of this
                                      Agreement.

       "INTELLECTUAL PROPERTY RIGHTS" any and all patents, trade marks, trade
                                      names, service marks, copyright, moral
                                      rights, rights in design, rights in
                                      databases, know-how, Confidential
                                      Information and all or any other
                                      intellectual or industrial property rights
                                      whether or not registered or capable of
                                      registration and whether subsisting in the
                                      Territory or any other part of the world
                                      together with all or any goodwill relating
                                      thereto.

       "PRODUCTS"                     the `Countin' Sheep' products listed in
                                      SCHEDULE 1 and such other toy product
                                      manufactured from time to time by Jusco
                                      Toys Limited (an affiliate of Peak) for
                                      Peak. It shall not include products, which
                                      have been licensed for manufacture, or are
                                      subsequently licensed for manufacture, by
                                      Peak to third parties and/or products,
                                      which third parties have licensed to Peak
                                      or Jusco Toys Limited to manufacture.

       "PROPERTY"                     a property created and/or controlled by
                                      Peak during the currency of this Agreement
                                      in respect of which Peak or Jusco Toys
                                      Limited manufacture Products and
                                      Properties shall be interpreted
                                      accordingly.

       "ROYALTY"                      the royalty payable by the Distributor to
                                      Peak pursuant to CLAUSE 11.

<PAGE>

       "TERM"                         from the Commencement Date until 31t
                                      December 2006

       "TERRITORY"                    United States of America

       "TRADE                         MARKS" Trade Marks registered by Peak or
                                      its Associates in the Territory in
                                      relation to the Products.

1.2    The headings used in this Agreement are included for convenience only and
       are not to be used in construing or interpreting this Agreement.

1.3    In this Agreement any reference to the plural includes the singular and
       vice versa, any reference to one gender includes all genders and any
       reference to a person includes companies, partnerships, firms, and any
       other unincorporated associations.

1.4    Any right or power conferred in this Agreement may be exercised and any
       duty imposed by this Agreement is to be performed from time to time, as
       occasion requires.

2      APPOINTMENT OF DISTRIBUTOR

2.1    Peak hereby appoints the Distributor as its sole and exclusive
       distributor for the sale of the Products in the Territory for the Term
       and the Distributor agrees to act in that capacity subject to the terms
       and conditions of this Agreement.

2.2    Peak reserves the right to supply Products direct to retailers and buyers
       within the Territory in the event that the Distributor fails to market
       Products to retailers who have specifically requested Product in the
       Territory within 6 months from acceptance by the Distributor of the
       Products in accordance with the Products listed in Schedule 1, from the
       Commencement date Peak will not directly canvas business and if any
       retailer approaches Peak directly or indirectly, Peak shall make the
       Distributor aware of any such request (and for the avoidance of doubt in
       such event Peak shall not pay commission referred to above to the
       Distributor)

2.3    The Distributor is entitled to describe itself as Peak's "Authorised
       Distributor" for the Products in the Territory but shall not hold itself
       out as Peak's agent for sales of the Product or as being entitled to bind
       Peak in any way.

2.4    Peak shall not be liable to the Distributor if any of the Products are
       sold in the Territory by any third party, unless that third party is
       acting with the actual consent of Peak given in breach of the Terms of
       this Agreement. Peak shall use its reasonable endeavours to prevent any
       unauthorised distribution in the Territory by third parties.

2.5    Nothing in this Agreement shall entitle the Distributor to any priority
       of supply in relation to the Products against Peak's other distributors
       or customers.

<PAGE>

3      GRANT AND PAYMENT

3.1    In consideration of the rights granted hereunder by Peak the Distributor
       shall place a minimum opening order on the date of signing this
       Agreement.

3.2    The royalties due on the opening order shall be treated as an advance
       payment of the Royalty and shall be off set against the Royalty payable
       during the Term of this Agreement, but shall be non-refundable.

3.3    The Distributor shall purchase the Products from Peak in accordance with
       the Terms and Conditions of telegraphic transfer of payment after receipt
       of document copies including the following: Invoice, Bill of Lading, and
       Packing Slip. Upon receipt of the payment, Peak will instruct their
       vendor to release the original paperwork to the distributor, free and
       clear. In the event of any conflict between the Terms and Conditions and
       the provisions of this Agreement, the latter shall prevail.

4.     PROHIBITIONS ON THE DISTRIBUTOR

4.1    The Distributor shall use its reasonable endeavours to procure that
       during the currency of this Agreement: 4.1.1 not to purchase the Products
       from anyone other than Peak during the Term of this Agreement; or

       4.1.2    sell Products to any person outside the Territory without prior
                written consent of Peak. Peak reserves the exclusive right to
                solicit orders for Products from any person not in the Territory
                save where it has allocated that right to a third party.

4.2    During the currency of this Agreement the Distributor will not:

       4.2.1    knowingly do anything which will harm the reputation of Peak;

       4.2.2    pledge the credit of Peak in any way or bind or attempt to bind
                it by contractor otherwise;

       4.2.3    use any marketing or promotional materials or attended any
                marketing events with respect to the Products which have not
                been approved by Peak in writing (such approval not to be
                unreasonably withheld or delayed);

       4.2.4    modify or alter the Products or their packaging in any way save
                as required by law unless agreed in writing by Peak;

       4.2.5    make any representations about the Products save as agreed in
                writing in advance by Peak;

       4.2.6    register any domain name relating to the Products and so nearly
                resembling the Trade Marks as to be likely to deceive or cause
                confusion for use on the

<PAGE>

                Internet except with the prior written consent of Peak, such
                consent not to be unreasonably withheld or delayed.

5.     GENERAL UNDERTAKINGS BY THE DISTRIBUTOR

5.1    The Distributor shall during the continuance of this Agreement:-

       5.1.1    (subject to Peak complying with its obligations in Clauses 6.10,
                7.1 and 7.2) diligently and faithfully serve Peak in the
                Territory and shall use its reasonable endeavours to improve the
                goodwill of Peak in the Territory and to increase the sales of
                the Products in the Territory.

       5.1.2    not to do anything that may prevent the sale or deter the
                development and increase the sales of the Products in the
                Territory;

       5.1.3    ensure that it conforms with all legislation, rules, regulations
                and statutory requirements existing in the Territory from time
                to time in relation to the Products;

       5.1.4    not to procure any third party to manufacture the Products;

       5.1.5    leave in position and not to cover or erase any notices or other
                marks (including without limitation details of notices that a
                trade mark design or copyright relating to the Products) which
                Jusco places on or affixed to the Products;

       5.1.6    provide such reasonable information as Peak may require. ;

       5.1.7    keep adequate records of Customers and prospective Customers and
                orders placed for the Products and provide on request details of
                their names and copies of correspondence with them to Peak; and

       5.1.8    maintain adequate stock of the Products to meet the
                Distributor's reasonably anticipated customer demand at all
                times.

       5.1.9    Refer promptly to Peak any enquiries the Distributor received
                from prospective customers outside the Territory.

6.     DISTRIBUTORS OBLIGATIONS AS TO MARKETING AND PEAK'S OBLIGATION TO
       SUPPORT.

6.1    The Distributor shall only market and solicit orders for the Products
       within the Territory.

6.2    The Distributor shall ensure that the Products shall be on sale to the
       public within three months of the date of shipment of the Product by Peak
       unless otherwise agreed in writing.

6.3    The Distributor shall ensure so far as it is reasonably practicable that
       the Products are not supplied for sale as an integral part of any other
       Product and shall not be supplied

<PAGE>

       either directly or indirectly to other manufacturers or to hawkers,
       street peddlers, street vendors and the like or to any person intending
       to distribute the products gratuitously unless agreed in writing by Peak.

6.4    It is agreed by the Distributor that the Products will be sold to
       recognised wholesale firms for resale to retail firms or to retail firms
       for resale to the public or direct to the public.

6.5    The Distributor shall at all times use its reasonable endeavours to sell
       and promote the sale of the Products throughout the Territory (subject to
       Peak complying with its obligations in clauses 6.10, 7.1 and 7.2).

6.6    The Distributor shall reasonably observe all reasonable directions and
       instructions given by Peak in relation to the promotion and marketing of
       the Products and dealings with Customers and prospective Customers.

6.7    All advertisements and promotions carried out and all advertising,
       promotional and sales material for the Products used by the Distributor
       shall be subject to the prior written approval of Peak, such approval to
       be given promptly.

6.8    In the event that the Distributor fails to offer or promote any of the
       Products for a period of 60 days at any time following acceptance
       thereof, Peak shall be entitled to immediately withdraw the rights for
       each Product not offered or promoted by giving the Distributor written
       notice of 30 days.

6.9    The Distributor undertakes to Peak to support the marketing the Products
       in respect of the properties to a level that is representative of the
       sales forecasts. Such marketing spend to be allocated throughout the Term
       of this Agreement as agreed between the parties.

6.10   Peak shall use its reasonable endeavours to promptly supply to the
       Distributor with up-to-date samples, catalogues, brochures and such
       information relating to Products and/or Properties as the Distributor
       shall reasonably request or which Peak shall consider relevant, and Peak
       shall use its reasonable endeavours to assist the Distributor in the
       placement of Products within major accounts.

6.11   Peak shall at all times during the continuance of this Agreement act
       towards the Distributor dutifully and in good faith.

7.     SUPPLY OF PRODUCTS

7.1    Peak shall promptly supply the Distributor with samples of the Products
       prior to order by the Distributor, such supply to be at the reasonable
       expense of the Distributor.

7.2    Subject to CLAUSE 8, Peak shall use its reasonable endeavours to supply
       the Products to the Distributor in accordance with the Distributor's
       orders and deliver the same in accordance with the Distributor's
       directions.

7.3    Peak shall supply to the Distributor where the Distributor so requests,
       certified copies of any relevant Toy Safety Certificates relating to the
       Products ordered and warrants

<PAGE>

       that all Products shall be of satisfactory quality and will comply with
       the specifications agreed (subject to clause 7.4). In addition, Peak will
       allow the Distributor to perform factory audits to assess compliance and
       quality checks and inspections. The Distributor will not be obliged to
       purchase the Products should the factory audits fail any compliance
       tests.

7.4    Peak is not under any obligation to continue the manufacture of all or
       any of the Products and shall be entitled to make such alterations to the
       specifications of the Products as it may think fit but will consult with
       the distributor and only make changes on 30 days prior written notice
       following the consultation with the distributor, but will not
       unreasonably stop or later production.

7.5    The Distributor shall in respect of each order for the Products placed
       with Peak be responsible for:-

       7.5.1    ensuring the accuracy of orders

       7.5.2    providing Peak with any information which is necessary in order
                to enable Peak to fulfil the order and to comply with all
                labelling, marketing and other applicable legal requirements in
                the Territory; and

       7.5.3    obtaining any necessary import licences or other requisite
                documents and paying all applicable custom duties and taxations
                in respect of the importation of the Products into the Territory
                and their resale in the Territory.

7.6    The Distributor shall give Peak reasonable written notice of its
       estimated requirements of the Products in each month and shall promptly
       notify Peak of any changes in circumstances, which may affect its
       requirements.

7.7    Risk of damage to or loss of the Products shall pass to the Distributor
       upon delivery to the Distributor's freight forwarder at the named port of
       shipment.

7.8    Peak shall keep the Distributor advised of anticipated delivery dates and
       will use its reasonable endeavours to meet delivery dates advised to the
       Distributor.

8.     PRICE AND PAYMENT

8.1    The Distributor shall pay to Peak the Price for the Products which, for
       the avoidance of doubt, shall include the Royalty Rate. A royalty rate of
       10% will be paid in accordance with clause11.

8.2    The Price shall be in accordance with Peak's standard price list from
       time to time applicable that will be agreed with the Distributor. Peak
       may amend the price list after agreeing this with the Distributor and
       will not change the pricing unless full agreement is met by the
       distributor in writing.

8.3    In accordance with clause 8.2 Peak shall supply to the Distributor up to
       date copies of all prices lists for the Products and give the Distributor
       immediate notice in writing of its intention to alter prices and of the
       prices to be altered and the prices so altered shall apply to all
       Products ordered on or after the applicable dates of increase or decrease
       provided the Distributor agrees the price alterations.

<PAGE>

8.4    All Prices are exclusive of any applicable sales or importation taxes for
       which the Distributor shall be additionally liable. The Price is
       calculated on a FOB royalty free basis.

8.5    All payments will be made dollars in USA or in such other currency and
       place, as Peak shall from time to time specify in writing.

8.6    If the Distributor fails to pay within 30 days of the due date any amount
       which is payable to Peak under this Agreement then, without prejudice to
       any other rights set out in this Agreement:

       8.6.1    that amount shall bear interest from the due date until payment
                is made in full, both before and after any judgement, at 4 per
                cent per annum over Lloyds TSB Plc base rate from time to time;

       8.6.2    Peak shall be entitled to suspend deliveries of the Products
                until the outstanding amount has been received by Peak from the
                Distributor.

9.     PREMIUMS

9.1    The Distributor shall not sell or otherwise dispose of any Products as
       premiums to any person whatsoever.

9.2    Peak shall notify the Distributor of any premium promotions.

9.3    The right of sale as premiums is expressly reserved by Peak and if the
       Distributor shall receive any approach for the purpose of the use of sale
       of the Products as a premium it shall forthwith notify Peak and furnish
       it with the names and full particulars of the person making the approach.

9.4    For the purposes of this clause "premium" means a Product or Product
       combined with a service which is sold or supplied in association with the
       sales promotional activities of retailers, wholesalers or manufacturers
       associations with incentive programmes of all kinds.

10.    DISTRIBUTOR'S STAFF

       The Distributor shall employ during the continuance of this Agreement
       sufficient staff appropriate training and quality to sell, distribute and
       promote the sale of the Products throughout the Territory and perform in
       a timely and satisfactory manner the Distributor's obligations under this
       Agreement and in particular shall employ and maintain a sales force of
       sufficient size from time to time to fulfil the Distributor's obligations
       under this Agreement in relation to the sale and marketing of the
       Products.

11.    ROYALTIES

11.1   In consideration of the rights granted by Peak the Distributor shall pay
       Peak a royalty of the Agreed Percentage of the net selling price to
       retail as estimated in SCHEDULE 2.

<PAGE>

11.2   The Distributor shall send to Peak by the thirtieth day following the end
       of March, June, September and December during the continuance of this
       Agreement a report of sales made of the Products in the Territory since
       the last statement showing the total royalty payable (if any) to Peak and
       at the same time deliver to Peak a remittance for the full amount of that
       Royalty together with any marketing or other information in relation to
       the operation of the Agreement as Peak may reasonably require including
       details of the Customer of the Distributor and stock levels as at the
       date of the report.

11.3   All sums payable by the Distributor pursuant to this Agreement shall be
       paid free and clear of all deductions or withholdings whatsoever save
       only as may be required by any applicable law.

11.4   If any deductions or withholdings are required by law to be made from any
       of the sums payable pursuant to this Agreement, the Distributor shall be
       obliged to pay to Peak such sum as will, after deduction or withholding
       has been made, leave Peak with the same amount as it would be entitled to
       receive in the absence of any such requirement to make a deduction or
       withholding.

11.5   The Distributor shall keep and maintain separate and detailed accurate
       accounts and records so as to show the quantity and net sales price of
       the Products sold for each Royalty period giving separately the figures
       for each Product. Peak shall have the right, at reasonable hours, and on
       giving the Distributor reasonable notice, to appoint a representative
       (being a qualified, certified or chartered accountant) to audit the said
       accounts and records and if such audit reveals a discrepancy, it shall be
       collected forthwith. It is further agreed that if such discrepancy is 10%
       or more in the Distributor's favour the Distributor shall pay Peak's
       reasonable auditing fees and expenses (including travel and
       accommodation) in addition to any other payments due and interest on the
       discrepancy at 2% above the base lending rate from time to time of
       Lloyd's TSB Plc.

12.    INTELLECTUAL PROPERTY

12.1   Peak authorises the Distributor to use the Trade Marks in the Territory
       in relation to the Products for the purposes only of exercising its
       rights and performing its obligations under this Agreement.

12.2   The Distributor shall ensure that each reference to and use of any of the
       Trade Marks by the Distributor is in a manner from time to time approved
       by Peak and accompanied by an acknowledgement in a form approved by Peak
       (such approval not to be unreasonably withheld or delayed), that the same
       is a Trade Mark of Peak.

12.3   The Distributor shall not:

       12.3.1   modify, remove or tamper with any Trade Mark or any copyright
                statement on the Products or their packaging;

       12.3.2   use any of the Trade Marks in any way which might prejudice
                their distinctiveness or validity or the goodwill of Peak;

       12.3.3   use in relation to the Products any trade marks or names other
                than the Trade Marks without obtaining the prior written consent
                of Peak; or

<PAGE>

       12.3.4   use in the Territory, any trademarks or names so resembling the
                Trade Marks as to be likely to cause confusion or deception.

12.4   The Distributor shall not apply to register any of the Intellectual
       Property Rights in the Products nor any trademarks or trade names so
       nearly resembling the Trade Marks as to be likely to deceive or cause
       confusion.

12.5   Except as expressly provided in this Agreement the Distributor shall have
       no rights in respect of Intellectual Property Rights however used by Peak
       in relation to the Products and the Distributor hereby acknowledges that
       he shall not acquire any rights in respect thereof and that all such
       Intellectual Property Rights are and shall remain vested in or controlled
       by Peak.

12.6   The Distributor will immediately inform Peak in writing of any actual,
       threatened or suspected infringement of the Intellectual Property Rights
       of Peak relating to the Products or of any claim that the Products
       infringe the Intellectual Property Rights of a third party, but the
       Distributor shall take no steps or enter into any proceedings with
       respect to such infringement or claim without the prior written consent
       of Peak.

12.7   The Distributor shall at the expense of Peak take all such steps as Peak
       may reasonably require to assist Peak in maintaining the validity and
       enforceability of the Intellectual Property Rights of Peak during the
       Term of this Agreement PROVIDED THAT Peak shall indemnify the Distributor
       against all costs, claims, damages, expenses and other liabilities
       arising from or in connection with such steps and FURTHER PROVIDED THAT
       Peak shall be entitled to all damages recovered.

12.8   The Distributor shall not do or authorise any third party to do any act,
       which would or might invalidate or be inconsistent with any Intellectual
       Property Rights of Peak and shall not omit or authorise any third party
       to omit to do any act, which, by its omission, would have that effect.

12.9   Distributor acknowledges that any and all Intellectual Property Rights
       created, developed or subsisting in connection with the Products and any
       modifications thereto shall be and remain the sole property of Peak and
       Distributor shall do all acts and execute all documents (and procure that
       its employees do likewise) necessary to perfect or vest the ownership
       thereof in Peak.

2.10     Peak warrants to the Distributor that:

       12.10.1  it has been granted the rights to use all Intellectual Property
                Rights necessary to allow it to manufacture, supply and sell the
                Products; and

       12.10.2  the manufacture and sale of the Products by Peak and the rights
                granted by this Agreement does not infringe the Intellectual
                Property Rights of any third party in so far as Peak is aware.

       And Peak shall indemnify the Distributor in respect of any breach of the
       warranties in this clause 12.10.

<PAGE>

13.    TERMINATION

13.1   Either party may by notice in writing served on the other terminate this
       Agreement forthwith if the other:

       13.1.1   shall be in continuing or material breach of any of the terms of
                this Agreement and, where the breach is capable of remedy, the
                other party fails to remedy such breach within 30 days' service
                of a written notice (or if not practicable, within such a period
                as is practicable) from the party not in breach specifying the
                breach and requiring it to be remedied;

       13.1.2   being a company, summons a meeting of its creditors, suffers a
                proposal for a voluntary arrangement, becomes subject to any
                voluntary arrangement, is unable to pay its debts within the
                meaning of section 123 Insolvency Act 1986, has a receiver,
                manager, administrator or administrative receiver appointed over
                its assets, undertaking or income, has passed a resolution for
                its winding-up (save for the purpose of voluntary reconstruction
                or amalgamation previously approved in writing by the party
                serving notice), has a petition presented to any Court for its
                winding-up (save for the purpose of a voluntary reconstruction
                or amalgamation previously approved in writing by the party
                serving notice), has a provisional liquidator appointed, has a
                proposal made for a scheme of arrangement under section 245
                Companies Act 1985 or is subject of a notice to strike off the
                register at Companies House or for an administration order.

       13.1.3   has any distraint, execution or other process levied or enforced
                on any of its property;

       13.1.4   ceases or threatens to cease to trade;

       13.1.5   in the case of the Distributor only, has a change in its
                management and/or control involving 25% of its shares being
                transferred to a person who is not a shareholder of the
                Distributor at the Commencement Date unless such shares are
                transferred to an Affiliate; or

13.2   As from the date of termination the Distributor will cease to hold itself
       out as Distributor for Peak and for the sale and marketing of the
       Products provided always that for a period of 120 days immediately
       following the date of termination of this Agreement howsoever arising the
       Distributor will be entitled, to sell Products which are in the
       Distributor's stock as at the date of termination.

13.3   On termination of this Agreement, howsoever arising, the Distributor will
       forthwith return to Peak all documents and other materials or things on
       loan or issued from Peak and any copies thereof made by the Distributor
       which are in the Distributor's possession, custody or control as at the
       date of termination.

13.4   On termination of this Agreement, both parties shall meet to conclude any
       outstanding matters.

<PAGE>

13.5   Any order for the Products in the progress of manufacture at the time of
       termination shall be paid for by the Distribution and shipped to the
       Distribution in accordance with the Terms and Agreement, the sale of such
       Products by the Distributor to be in accordance with clause 13.2.

13.6   Upon termination of this Agreement the Distributor shall:-

       13.6.1   pay to Peak the balance of any Royalties accrued up to the date
                of termination and the balance of the Guaranteed Royalty not
                already paid (less any Advance already paid) if appropriate
                under this Agreement. There shall be no further sums payable by
                the Distributor to Peak under this Agreement apart from those
                that may become due in accordance with Clauses 11, 13.2 and
                13.5.

       13.6.2   if required to do so by Peak supply Peak with a list of the
                Customers for the Products; and

       13.6.3   assign to Peak free of charge all permission consents and
                licences (if any) relating to the marketing and/or distribution
                and/or sale of the Products in the Territory and execute all
                documents and so all the things necessary to ensure that Peak
                enjoys the benefit of those permissions, consents and licences
                after the termination of this Agreement to the entire exclusion
                of the Distributor.

13.7   The termination of this Agreement howsoever arising is without prejudice
       to the rights, duties and liabilities of either party accrued prior to
       termination. The clauses in this Agreement with expressly or impliedly
       have effect after termination shall continue to be enforceable
       notwithstanding termination.

14.    INDEMNITY AND INSURANCE

14.1   The Distributor shall indemnify and hold harmless Peak from and against
       any liability, loss, claim or proceedings whatsoever arising under any
       statute or at common law in respect of personal injury or damage to any
       property real or personal arising from the sale of the Products unless
       such liability arises from the negligent act or omission or breach of
       contract of Peak or its Affiliates, employees, agents or officers.

14.2   The Distributor shall have in force Public and Product Liability
       Insurance for not less than(pound)1 million satisfactory to Peak.

14.3   The Policies of insurance shall be shown to Peak whenever it requests
       together with satisfactory evidence of payment of premiums.

15.    CONFIDENTIALITY

15.1   The Distributor undertakes to Peak:

       15.1.1     to use its reasonable endeavours to keep confidential all
                  Confidential Information (whether written or oral) which it
                  has obtained or received as a result of the discussions
                  leading up to or the entering into, or obtains or receives in
                  performance of, this Agreement;

<PAGE>

       15.1.2   not to disclose the Confidential Information in whole or in part
                to any other person without Peak's written consent, save those
                of its employees, agents and sub-contractors involved in the
                implementation of this Agreement and who have a need to know the
                same and are bound to keep it confidential; and

       15.1.3   to use the Confidential Information solely in connection with
                the performance of this Agreement and not otherwise or for the
                benefit of any third party.

15.2   The provisions of CLAUSE 15.1 shall not apply to the whole or any part of
       the Confidential Information which is:

       15.2.1   lawfully obtained after the Commencement Date free of any duty
                of confidentiality otherwise than directly or indirectly from
                Peak;

       15.2.2   already in the Distributor's possession other than as a result
                of a breach of this CLAUSE 15.1;

       15.2.3   in the public domain (other than as a result of a breach of this
                CLAUSE 15.1);

       15.2.4   necessarily disclosed pursuant to a statutory obligation;

       15.2.5   disclosed to the professional advisors, auditors and bankers of
                the Distributor under the terms of confidentiality; or

       15.2.6   disclosed with the prior written consent of Peak.

15.3   Save as otherwise set out in this Agreement, no announcement, circular,
       advertisement or other publicity in connection with this Agreement, its
       subject matter or any ancillary matter shall be made or issued by or on
       behalf of the Distributor without the prior written consent of Peak.

16.    ASSIGNMENT AND SUB-CONTRACTING

16.1   The Distributor may not assign the benefit (including any present, future
       or contingent interest or right to any sums or damages payable by Peak
       under or in connection with this Agreement) or otherwise mortgage, charge
       or otherwise transfer any or all of its rights and obligations under this
       Agreement without the prior written consent of Peak which shall not be
       unreasonably withheld.

16.2   The Distributor shall not subcontract any or all of its rights and
       obligations under this Agreement and shall not be entitled to appoint any
       sub-distributors without the prior written consent of Peak.

17.    WAIVER OF RIGHTS

17.1   The failure or delay by Peak in exercising any right, power or remedy of
       Peak under this Agreement shall not in any circumstances impair such
       right, power or remedy nor operate as a waiver of it. The single or
       partial exercise by Peak of any right, power or remedy under this
       Agreement shall not in any circumstances prelude any other or further
       exercise of it or the exercise of any other right, power or remedy.

<PAGE>

17.2   Any waiver of a breach of, or default under, any of the terms of this
       Agreement shall not be deemed a waiver of any subsequent breach or
       default and shall in no way affect the other terms of this Agreement.

18.    ENTIRE AGREEMENT

       This Agreement contains all the terms and refers to all the documents
       which the parties have agreed in relation to the subject matter of this
       Agreement and supersedes any prior written or oral agreements,
       representations or understanding between the parties relating to such
       subject matter save for the licence agreements and the variation deeds
       referred to in clause 1.5. Neither party to this Agreement has been
       induced to enter into this Agreement or any of those documents by a
       statement or promise which they do not contain, save that this clause
       shall not exclude any liability which one party would otherwise have to
       the other party in respect of any statement made fraudulently by that
       party.

19.    VARIATION

       No variation to this Agreement shall be effective unless in writing
       signed by a Director or other duly authorised officer of each of the
       parties.

20.    INVALIDITY

20.1   If at any time any clause or part of this Agreement is found by any
       court, tribunal or administrative body of competent jurisdiction to be
       wholly or partly illegal, invalid or unenforceable in any respect under
       the law of any jurisdiction:

20.2   That shall not affect any other provisions of this Agreement which shall
       remain in full force and effect and;

20.3   The parties shall in good faith amend, and if necessary, novate this
       Agreement to reflect nearly as possible the spirit and intention behind
       that illegal, invalid or unenforceable provision so that the amended
       clause complies with the laws of that jurisdiction.

21.    NOTICE

2.1    Any notice in connection with this Agreement shall be in writing and may
       be delivered by hand, pre-paid first class post (but not by email),
       addressed to the recipient at its registered office or its address as the
       case may be stated in CLAUSE 21.3 below (or such addresses as may be
       notified in writing from time to time) in accordance with this clause 21
       and in the case of notices sent to Peak such notices shall be marked for
       the attention of ... or such other individual as Peak shall notify the
       Distributor in accordance with this Clause 21.

21.2   The notice shall be deemed to have been duly served:

       21.2.1   If delivered by hand, when left at the proper address for
                service;

       21.2.2   if given or made by prepaid first class post 48 hours after
                being posted or in the case of Airmail 14 days after being
                posted (excluding days other than Business Days);

<PAGE>

       provided that, where in the case of delivery by hand such delivery occurs
       either after 4.00pm on a Business Day, or on a day other than a Business
       Day. Service shall be deemed to occur at 9.00am on the next following
       Business Day (such times being local time at the address of the
       recipient).

21.3   The addresses for the parties are as follows:

Peak Entertainment Ltd                Cadaco
Bagshaw Hall                          4300 West 47th Street
Bagshaw Hill                          Chicago, Illinois 60632
Bakewell                              USA
Derbyshire
DE45 1DL

21.4   For the avoidance of doubt, where proceedings to which the Civil
       Procedure Rules apply have been issued, the provisions of Civil Procedure
       Rule 6 must be complied with in respect of the service of documents in
       connection with those proceedings.

22.    FORCE MAJEURE

22.1   Neither party to this Agreement shall be deemed to be in breach of this
       Agreement or otherwise liable to the other party in any manner whatsoever
       for any failure or delay in performing its obligations under this
       Agreement due to Force Majeure.

22.2 If a party's performance of its obligations under this Agreement is affect
by Force Majeure:

       22.2.1   It shall give written notice to the other party, specifying the
                nature and extent of the Force Majeure, within seven days of
                becoming aware of the Force Majeure and will at all times use
                all reasonable endeavours to mitigate the severity of the Force
                Majeure;

       22.2.2   subject to the provisions of CLAUSE 22.3, the date for
                performance of such obligation shall be deemed suspended only
                for a period equal to the delay caused by such event;

       22.2.3   it shall not be entitled to payment from the other party in
                respect of extra costs and expenses incurred by virtue of the
                Force Majeure event.

22.3   If the Force Majeure in question continues for more than three months,
       either party may give notice in writing for the other to terminate this
       Agreement. This notice to terminate must specify the termination date,
       which will not be less than 15 days after the date on which notice is
       given, and once such notice has been validly given, this Agreement will
       terminate on that termination date.

23.    CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

       The parties to this Agreement do not intend that any of its terms will be
       enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999
       by any person not a party to it.

<PAGE>

24.      COUNTERPARTS

       This Agreement may be executed in two counterparts each executed by one
       party hereto and in such event the counterparts shall together constitute
       one agreement.

25.    JURISDICTION

       The formation, existence, construction, performance, validity and all
       aspects whatsoever of this Agreement or of any term of this Agreement
       shall be governed by English law. The English courts shall have exclusive
       jurisdiction to settle any disputes, which may arise out of or in
       connection with this Agreement, and the parties agree to submit to such
       jurisdiction.

26.    ENTIRE UNDERSTANDING AND VARIATION

       26.1 this agreement constitutes the entire Agreement between the Parties
       in respect of the subject matter contained or referred to herein and
       supersedes any and all promises, representations, warranties or other
       statements whether written or oral made by or on behalf of one party to
       the other of any nature whatsoever.

       26.2 no variation or amendment of this Agreement or oral promise or
       commitment related to it shall be valid unless committed to in writing
       and signed by a director of Peak and a director of the Distributor.

<PAGE>

SIGNED BY:  /s/ PHIL OGDEN
           .............................................
ON BEHALF OF PEAK ENTERTAINMENT LIMITED

PRINT NAME    PHIL OGDEN
           .............................................

PRINT POSITION    MANAGING DIRECTOR
           .............................................

SIGNED BY:    /s/ JOHN M. LINDEAY
           .............................................
ON BEHALF OF CHARACTER OPTIONS LIMITED

PRINT NAME    JOHN M. LINDEAY
           .............................................

PRINT POSITION    PRESIDENT
                ........................................

<PAGE>

                                   SCHEDULE 1

                                    PRODUCTS

Countin' Sheep plush

                         PROPOSED LINE PLAN AND COSTING

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                                         Estimated           Target         FOB Price
Description                    Display                     Cube             Retail $
--------------------------------------------------------------------------------------------------------
<S>                            <C>                  <C>                       <C>             <C>
Countin' Sheep Plush           Bulk with ear tag    96 pieces per outer
                                                      (25"x16"x10.5")         $2.50           $1.45
                                                       gross 5.73kg
--------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                   SCHEDULE 2

                                    PRODUCTS

Countin' Sheep Plush

                    ESTIMATED ROYALTIES INCLUDED IN FOB PRICE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                                                        Estimated              FOB          Estimated
Description                    Display                    Cube                               ROYALTY
---------------------------------------------------------------------------------------------------------
<S>                            <C>                 <C>                        <C>             <C>
Countin' Sheep Plush           Bulk                96 pieces per outer
                                                     (25"x16"x10.5")          $1.45           $0.30
                                                      gross 5.73kg
---------------------------------------------------------------------------------------------------------
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]