Document:

The
      Directors

    ZOO
      Digital Publishing Limited

    (Company
      Number 05701472)

    Arundel
      Court

    117
      Arundel Street

    Sheffield

    South
      Yorkshire

    S1
      2NU

     

    1
      April
      2008

     

    Dear
      Sirs,

     

    Loan
      facility of £325,000

     

    We
      are
      pleased to confirm that the Trustees of the I.C. Stewart 2001 Trust (the
"Lender")
      have
      agreed to make available to you, ZOO
      Digital
      Publishing Limited (registered number 05701472)
      (the "Borrower”)
      a
      loan of
      up to £325,000, subject to the terms and conditions set
      out
      in this letter.

     

    
      	1	
              Definitions
                and interpretation 

            

    

     

    
      	1.1	
              In
                this letter:

            

    

     

    "Base
      Rate"

    the
      base
      lending rate of the Bank of England for the time being.

     

    "Business
      Dar

    a
      day
      (other than a Saturday or Sunday) on which banks are open for general
business
      in London.

     

    "euro"
      or
      "C"

    the
      single currency of participating member states of the European
      Union.

     

    "Event
      of Default"

    any
      event
      or circumstance specified as such in clause 9.

     

    "Finance
      Documents"

    this
      letter and any Security Documents.

     

    "Interest
      Rate"

    one
      and
      three quarters of one per cent (1.75%) per annum above the Base
      Rate.

     

    "Loan"

    the
      loan
      made or to be made under this letter or the principal amount outstanding
for
      the
      time being
      of
      that loan.

     

    "Loan
      Agreements"

    together,
      the loan agreements numbered 171207, 051107, 270906 (as extended), 180806
      and 180406
      each of which was made between the Lender and the Borrower.

     

    "Security
      Documents"

    each
      and
      any Security Interest created by the Borrower as security for the obligations
      of
      the Borrower
      to the Lender under the Finance Documents.

     

    "Security
      Interest"

    a
      mortgage, charge, pledge, lien or other security interest securing any
      obligation of any
      person or
      any
      other agreement or arrangement having a similar effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Sterling"
      and
      "£"

    the
      lawful currency for the time being of the United Kingdom.

     

    "Termination
      Date" 4
      April
      2009.

    

    
      	1.2	
              Any
                reference in this letter to:

            

    

    

    
      	 	
              (a)

            	
              the
                'Lender'
                or
                the 'Borrower'
                shall be construed so as to include its successors in title, permitted
                assigns and permitted transfers;

            

    

    

    
      	 	
              (b)

            	
              a
                'Finance
                Document'
                or
                any other agreement or instrument is a reference to that Finance
                Document
                or other agreement or instrument as amended or
                novated;

            

    

    

    
      	 	
              (c)

            	
              a
                'person'
                includes any person, firm, company, corporation, government, state
                or
                agency of a state or any association, trust or partnership (whether
                or not
                having separate legal personality) or two or more of the
                foregoing;

            

    

    

    
      	 	
              (d)

            	
              'indebtedness'
                includes any obligation (whether incurred as principal or as surety)
                for
                the payment or repayment of money, whether present or future, actual
                or
                contingent; and

            

    

    

    
      	 	
              (e)

            	
              a
                provision of law is a reference to that provision as amended or
                re-enacted.

            

    

    

    
      	1.3	
              Clause
                and schedule headings are for ease of reference
                only.

            

    

    

    
      	2	
              Acceptance
                of offer

            

    

    

    The
      offer
      contained within this letter shall be available for acceptance by the Borrower
      until 31 March 2008, after which date such offer will lapse (unless extended
      in
      writing by the Lender).

    

    
      	3	
              Utilisation

            

    

    

    The
      Loan
      is to be utilised to refinance indebtedness (of up to £325,000) owing by the
      Borrower to the Lender pursuant to the Loan Agreements.

     

    
      	4	
              Interest

            

    

     

    
      	
              4.1

            	
              The
                Borrower shall pay interest on the Loan at the Interest Rate quarterly
                in
                arrears on
                30 June, 30 September, 31 December and 31 March in each
                year.

            

    

     

    
      	
              4.2

            	
              If
                the Borrower fails to pay any amount required to be paid by it under
                this
                letter on the
                due date for payment therefor, the Borrower shall pay interest on
                that
                overdue amount at a rate equal to 2% per annum above the Interest
                Rate
                from the date the payment
                was due to the date of actual payment (both before and after judgment).
                Any
                such interest accruing under this clause 4.2 shall be payable on
                demand by
                the Lender.

            

    

     

    
      	
              4.3

            	
              Interest
                payable under this letter shall accrue from day to day on the basis
                of a
                365-day
                year and the actual number of days
                elapsed.

            

    

     

    
      	5	
              Repayment

            

    

     

    The
      Borrower shall repay the Loan by a single repayment on the Termination
      Date.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	6	
              Prepayment

            

    

     

    
      	6.1
              	
              The Borrower
                may, if it gives the Lender not less than 10 Business Days' (or such
                shorter
                period as the Lender may agree) prior written notice, prepay the
                whole or
                any part of the Loan (but if In part, in a minimum amount of £25,000 and
                an integral multiple of £5,000).

            

    

     

    
      	
              6.2

            	
              The
                Borrower may not reborrow all or any part of the Loan which is prepaid
                pursuant
                to clause 6.1.

            

    

     

    
      	
              6.3

            	
              Any
                repayment or prepayment of a Loan under this letter shall be made
                together
                with
                accrued interest on the amount repaid and/or
                prepaid.

            

    

     

    
      	
              6.4

            	
              Notwithstanding
                any other provision of this letter, all amounts outstanding under
                the
                Loan and all interest and other sums due under this letter will be
                repayable by the
                Borrower immediately on the occurrence of an Event of Default (unless
                the
                Lender otherwise permits).

            

    

     

    
      	7	
              Payments

            

    

     

    
      	
              7.1

            	
              All
                payments by the Borrower under the Finance Documents shall be made
                in
                Sterling
                to such bank account as the Lender may specify from time to time
                and
                without deduction, set-off or counterclaim (save as required by
                law).

            

    

     

    
      	
              7.2

            	
              If
                the Borrower is compelled by law to withhold or deduct any taxes
                from any
                sum payable
                under this letter:

            

    

     

    
      	 	
              (a)

            	
              the
                sum so payable by the Borrower shall be increased so as to result
                in the
                receipt
                by the Lender of a net amount equal to the full amount expressed
                to be
                payable
                under this letter; and

            

    

     

    
      	 	
              (b)

            	
              the
                Borrower shall deliver to the Lender, as soon as reasonably practicable,
                an original receipt, or a certified copy thereof, evidencing the
                payment
                by the Borrower to the appropriate authority of all amounts so required
                to
                be withheld or deducted.

            

    

     

    
      	8	
              Representations
                and warranties

            

    

     

    
      	
              8.1

            	
              The
                Borrower makes the representations and warranties set out in this
                clause 8
                to the
                Lender:

            

    

     

    
      	 	
              (a)

            	
              the
                Borrower is a corporation duly incorporated and validly existing
                under the
                law of its jurisdiction of incorporation and has the power to own
                its
                assets and carry
                on its business as it is being
                conducted;

            

    

     

    
      	 	
              (b)

            	
              the
                Borrower has the power to enter into, perform and deliver, and has
                taken
                all
                necessary action to authorise its entry into, performance and delivery
                of,
                this
                letter and the transaction contemplated by this
                letter;

            

    

     

    
      	 	
              (c)

            	
              the
                obligations expressed to be assumed by the Borrower in this letter
                are
                legal, valid, binding and enforceable
                obligations;

            

    

     

    
      	 	
              (d)

            	
              the
                entry into, and performance by the Borrower and the transactions
                contemplated by, this letter do not and will
                not:

            

    

     

    
      	 	
              (i)

            	
              conflict
                with any law or regulation applicable to
                it;

            

    

     

    
      	 	
              (ii)

            	
              conflict
                with its constitutional documents;
                or

            

    

     

    
      	 	
              (iii)

            	
              conflict
                with any agreement or document or any of its assets binding upon
                it; or

            

    

     

    
      	 	
              (iv)

            	
              oblige
                the Borrower to create any security over any of its assets;
                and

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (e)

            	
              no
                Event of Default has occurred and is subsisting, which has not been
                waived
                in writing by the Lender.

            

    

     

    
      	
              8.2

            	
              The
                representations and warranties set out in clause 8.1 shall be deemed
                to be
                repeated
                on each day on which the Loan or any other amount due to the Lender
                pursuant to this letter remains outstanding, with reference to the
                facts
                and circumstances subsisting at the time at which they are
                repeated.

            

    

     

    
      	9	
              Events
                of Default

            

    

     

    Each
      of
      the events or circumstances set out in clause 9 is an Event of
      Default.

     

    
      	
              9.1.

            	
              The
                Borrower does not pay on the due date any amount payable by it under
                a
                Finance
                Document at the place and in the currency in which it is expressed
                to be
                payable.

            

    

     

    
      	
              9.2

            	
              The
                Borrower does not comply with any provision of any Finance
                Document.

            

    

     

    
      	
              9.3

            	
              Any
                representation or statement made or deemed to be made by the Borrower
                in
                the Finance Documents or any other document delivered by or on behalf
                of
                the Borrower under or in connection with any Finance Document is
                or proves
                to have been incorrect or misleading in any respect when made or
                deemed to
                be made.

            

    

     

    
      	
              9.4

            	
              Any
                Indebtedness of the Borrower becomes due or capable of being declared
                due
                before its specified maturity date by reason of breach or default
                on the
                part of the Borrower under the terms of any agreement or instrument
                creating or evidencing the same or is otherwise not paid when due
                (or
                within any applicable period of grace) or any guarantee or indemnity
                given
                by the Borrower is not honoured when due and called
                upon.

            

    

     

    
      	
              9.5

            	
              The
                Borrower is unable or admits inability to pay its debts as they fall
                due,
                suspends making payments of any of its debts by reason of actual
                or
                anticipated financial difficulties or, commences negotiations with
                one or
                more class of creditors with a view to rescheduling any of its
                indebtedness, or the value of the assets of the Borrower is less
                than its
                liabilities (taking into account contingent and prospective liabilities)
                or a moratorium is delivered in respect of any of its
                indebtedness.

            

    

     

    
      	
              9.6

            	
              Any
                corporate action, legal proceedings or other procedure or step is
                taken
                in relation
                to:

            

    

     

    
      	 	
              (a)

            	
              the
                suspension of payments, a moratorium of any indebtedness, winding-up,
                dissolution,
                administration or reorganisation (by way of voluntary arrangement,
                scheme
                of arrangement or otherwise) of the
                Borrower;

            

    

     

    
      	 	
              (b)

            	
              a
                composition, assignment or arrangement with any creditor of the Borrower;
                or

            

    

     

    
      	 	
              (c)

            	
              the
                appointment of a liquidator, receiver, administrator, administrative
                receiver,
                compulsory manager or other similar officer in respect of the Borrower
                or
                any of its assets; or

            

    

     

    
      	 	
              (d)

            	
              enforcement
                of any Security Interest over any assets of the
                Borrower.

            

    

     

    
      	
              9.7

            	
              Any
                expropriator, attachment, sequestration, distress or execution affects
                any
                asset of
                the Borrower having an aggregate value in excess of £5,000 and is not
                discharged within 10 Business Days.

            

    

     

    
      	9.8	
              It
                is or becomes unlawful for the Borrower to perform any of its obligations
                under the
                Finance Documents.

            

    

     

    
      	9.9	
              The
                Borrower ceases to carry on its business or suspends or changes in
                a
                material respect
                all or a substantial part of Its
                operations.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	9.10	
              If, in
                the reasonable opinion of the Lender, a material adverse change occurs
                in
                the financial
                condition, operations or business of the
                Borrower.

            

    

     

    
      	9.11	
              On
                and at any time after the occurrence of an Event of Default which
                is
                continuing unremedied
                or unwaived then:

            

    

     

    
      	 	
              (a)

            	
              the
                Lender shall cease to be under any further commitment to the Borrower
                under this letter;

            

    

     

    
      	 	
              (b)

            	
              the
                Lender may at any time thereafter declare the Loan (or any part
                thereof)
                to be immediately due and payable or payable forthwith on demand;
                and

            

    

     

    
      	 	
              (c)

            	
              the
                Lender may at any time thereafter enforce the security constituted
                by the
                Security Documents or, If at that time, no Security Documents have
                been
                entered into, the Lender may require the Borrower to secure its
                obligations
                hereunder.

            

    

     

    
      	
              10

            	
              Security

            

    

     

    The
      repayment of the Loan and all other amounts payable by the Borrower to the
      Lender
      under this letter shall, as at the date hereof, be unsecured. The Lender may,
      at
      any
      time after the occurrence of an Event of Default demand that the Borrower
enters
      into security (in form and content satisfactory to the Lender (acting
      reasonably) to secure the Loan.

     

    
      	
              11

            	
              Costs
                and expenses

            

    

     

    The
      Borrower shall on demand reimburse the Lender for all fees, costs and expenses
      (including
      legal fees, disbursements and value added or any similar tax) incurred by
the
      Lender in connection with:

     

    
      	 	
              (a)

            	
              the
                negotiation, preparation, execution and completion of the Finance
                Documents;

            

    

     

    
      	 	
              (b)

            	
              any
                amendment, supplement, variation, release, discharge, consent or
                waiver
                relating to any Finance Document;
                and

            

    

     

    
      	 	
              (c)

            	
              any
                preservation, exercise or enforcement of any rights or remedies under
                or
                in connection with the Finance
                Documents.

            

    

     

    
      	
              12

            	
              Notices

            

    

     

    
      	
              12.1

            	
              Every
                notice, demand or other communication under this letter shall be
                in
                writing and may be delivered personally or by letter or facsimile
                transmission as follows:

            

    

     

    
      	 	
              (a)

            	
              if
                to the Lender to:

            

    

    

    
      	
            	Address:	
              Osborn
                House

            

    

    Padley
      Hill

    Grindleford

    Hope
      Valley

    Derbyshire,

    S32
      2HQ

     

    For
      the
      attention of: Mr. I.C. Stewart

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
            	(b)	
              if
                to the Borrower to:

            

    

    

    
      	
            	Address:	
              Arundel
                Court

            

    

    Arundel
      Street

    Sheffield

    South
      Yorkshire

    S1
      2NU

     

    For
      the
      attention of: Barry Hatch

     

    or,
      in
      either case, to such other address or facsimile number, or marked for the
attention
      of such other person as may be notified in accordance with this clause by
the
      relevant party to the other party for such purpose.

     

    
      	
              12.2

            	
              Any
                notice, communication or document made or delivered by one person
                to
                another
                under or in connection with the Finance Documents will only be
                effective:

            

    

     

    
      	 	
              (a)

            	
              if
                by way of fax, when received in legible form;
                or

            

    

     

    
      	 	
              (b)

            	
              if
                by way of letter, when it has been left at the relevant address or
                2
                Business Days
                after being deposited in the post (first class postage prepaid) in
                an
                envelope
                addressed to it at that address.

            

    

     

    
      	
              13

            	
              Assignment

            

    

     

    
      	
              13.1

            	
              The
                Borrower may not assign all or any of its rights (if any) or transfer
                any
                or all of its obligations hereunder to any person without the prior
                written consent of the Lender.

            

    

     

    
      	13.2	
              The
                Lender may at any time assign or transfer all or any of its rights
                and
                benefits hereunder
                to any person.

            

    

     

    
      	14	
              Miscellaneous

            

    

     

    
      	
              14.1

            	
              No
                failure to exercise, nor any delay in exercising, on the part of
                the
                Lender, any right
                or remedy under this letter shall operate as a waiver thereof, nor
                shall
                any single
                or partial exercise of any right or remedy prevent any further or
                other
                exercise
                thereof or the exercise of any other right or remedy. No waiver shall
                be
                effective
                unless it is in writing.

            

    

     

    
      	
              14.2

            	
              In
                the event that any of the provisions contained in this letter shall
                conflict with any of
                the provisions contained in the Security Documents, then the provisions
                of
                this letter
                shall prevail and override the conflicting provisions in the Security
                Documents.

            

    

     

    
      	
              14.3

            	
              If
                Sterling is, or is to be, replaced by the euro, the Lender may notify
                the
                Borrower of
                any amendments to this letter it considers necessary to reflect that
                replacement and
                to put the Lender in the same position, so far as possible, that
                it would
                have been
                in If no such replacement had occurred. Upon such notification, this
                letter shall be
                deemed to be amended in accordance with such
                notification.

            

    

     

    
      	14.4	
              A
                person who is not a party to this letter has
                no right under the Contracts (Rights of Third
                Parties) Act 1999 to enforce or to enjoy the benefit of any term
                of this
                letter.

            

    

     

    
      	
              14.5

            	
              Any
                certificate or determination by the Lender of a rate or an amount
                payable
                under this
                letter shall, in the absence of manifest error, be conclusive evidence
                of
                the matters
                to which it relates.

            

    

     

    
      	15	
              Law

            

    

     

    This
      letter is governed by, and shall be construed In accordance with, English
      law.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      	
              Yours
                faithfully,

            
	 
	
              /s/
                I.C. Stewart

            
	
              Mr.
                I.C. Stewart for and on behalf of the Trustees

            
	
              of
                the I.C. Stewart 2001 Trust

            
	 
	
              /s/
                Andrew Scrivener

            
	
              Andrew
                Scrivener for and on behalf of the Trustees

            
	
              of
                the I.C. Stewart 2001 Trust

            

    

    

    We
      refer
      to your letter of 1 April 2008, of which this is a duplicate. We hereby accept
      the offer of the Loan on the terms and conditions set out in that
      letter.

    

    
      	
              /s/
                Barry Hatch

            
	
              For
                and on behalf of

            
	
              ZOO
                Digital Publishing Limited

            

    

    

    Date:
      1
      April 2008

     

    
      
        
        

      

      
        7BANK
              OF
              SCOTLAND	 	 
	 	 	
            	 	CASHFLOW
	 	 	 	 	FINANCE
	 	 	 	 	 
	 	 	 	 	Princes House 2nd
              Floor
	 	 	 	 	50 West Campbell
              Street
	 	 	 	 	Glasgow G2 7BP
	 	 	 	 	 
	 	 	 	 	Telephone 0141 228
              4567
	 	 	 	 	Facsimile 0141 228
              4525

    

     

    21st
      November
      2006

    

    The
      Directors

    Zoo
      Digital Publishing Limited 20 Furnival Street

    Sheffield

    South
      Yorkshire

    Si
      4QT

     

    Dear
      Sirs

     

    Further
      to our recent discussions I now have pleasure in confirming our offer of a
      Cashflow
      Finance Facility, on the following terms:

     

    
      	
              Facility:

            	 	
              Confidential
                Invoice Discounting

            
	 	 	 
	
              Initial
                Payment:

            	 	
              50.00%
                of the Gross Book Value of an Approved Debt

            
	 	 	 
	
              Service
                Fee:

            	 	
              0.21%
                of the Gross Book Value of a Debt

            
	 	 	 
	
              Minimum
                Annual Fee:

            	 	
              £10,400.00

            
	 	 	 
	
              Discount:

            	 	
              2.00%
                per annum above Bank of Scotland Base Rate

            
	 	 	 
	
              Refer
                Limit:

            	 	
              £500,000:00

            
	 	 	 
	
              Arrangement
                Fee:

            	 	
              £1,000.00

            

    

     

    This
      facility is subject to your acceptance of the terms and conditions of this
      letter and satisfactory
      completion of our documentation, which will comprise:

     

    Cashflow
      Finance Agreement and Standard Conditions Bank
      Mandate

    Board
      Resolution

    Debenture

    Personal
      Guarantee from Ian Stewart for £50,000.00 Debt
      Verification Letter

     

    In
      addition to the receipt of the above documentation, duly signed and completed,
      the following
      conditions will need to be satisfied before we can commence operation
      of

     

    
      	
              1.

            	
              We
                require at Commencement with an up to date retrospective rebate accrual
                report and
                a list of outstanding debit notes from which we shall assess an
                appropriate reserve
                amount.

            

    

    
      	 	 

      	
              2.

            	
              You
                will have in place a Credit Insurance Policy and provide us with
                a copy
                and a current
                list of limits.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              We
                require the information and evidence in respect of the Borrower required
                by BOS
                to comply with its anti money laundering
                procedures.

            

    

    
      	 	 

      	
              4.

            	
              We
                require sight of and satisfaction with your proposed Terms &
                Conditions of trade.

            

      	 	 

    

    
      	
              5.

            	
              We
                require sight of and satisfaction with any distributor or supplier
                agreements that are
                in place:

            

    

     

    On
      an
      ongoing basis your Relationship Manager will operate your facility subject
      to
      the following
      requirements:

     

    
      	1. 	
              a)

            	
              We
                require regular management information from you as set out in the
                User
                Guide which shall include
                specifically:

            

    

    
      	
            	·	
              Management
                Accounts within one month of the month
                end;

            

    

    
      	
            	·	
              Audited
                Accounts within six months of the year
                end;

            

    

    
      	 	
              ·

            	
              Annual
                projections no later than 30 days prior the commencement of the period
                covered;

            

    

    
      	 	
              ·

            	
              A
                Sales Ledger reconciliation to our Control Account by the 10th
                of
                the following
                month;

            

    

    
      	 	
              ·

            	
              Your
                Sales Ledger Control Account reconciliation by the 10th of the following
                month;

            

    

    
      	 	
              ·

            	
              Itemised
                Sales and Purchase Ledgers by the 10th
                of
                the following month;

            

    

    
      	 	
              ·

            	
              A
                retrospective rebate accrual report within 10 days of the month
                end;

            

    

    
      	 	
              ·

            	
              A
                debit & credit note report detailing the level of Sale Or Return and
                Price Protection
                credit notes raised in the preceding
                month;

            

    

    
      	2.	
              You
                are required to implement the following within 5 days from
                Commencement:

            

    

    
      	 	
              a)

            	
              Create
                separate sales ledger accounts for those debtors buying goods and
                licences
                so
                that the licence debt can be
                excluded:

            

    

    
      	 	
              b)

            	
              We
                shall require Trust Accounts set up in £Stg, Euro and US $. You are
                required to ensure that within 3 months from Commencement all debtors
                are
                aware of which account they are to pay
                into.

            

    

    
      	3.	
              BOSCF
                is to be Joint Insured on your Credit Insurance Policy within 28days
                of
                its inception
                or from Commencement of this facility, whichever is the sooner. We
                require
                an up to date list of all insured limits at the outset and a copy
                immediately there
                is a subsequent update by the
                Insurer.

            

    

    
      	4.	
              Individual
                domestic customers shall be funded to the higher of 10% of the Net
                Approved
                Debts or limit under your Credit Insurance policy. This condition
                will not
                apply
                to Toys R Us Ltd and Game (Stores) Ltd where the higher of 60% or
£360k
                will
                apply and Entertainment UK Ltd where the higher of 25% or £200k will
                apply. All funding limits are subject to review on a regular basis
                and
                variations shall be at our
                sole discretion.

            

    

    
      	5.	
              We
                will fund export debts to 70% of the Net Approved
                Debts.

            

    

    
      	6.	
              Individual
                export customers shall be funded to the higher of 5% of the Net
                Approved
                Debts or limit under your Credit Insurance: All funding limits are
                subject
                to
                review on a regular basis and variations shall be at our sole
                discretion.

            

    

    
      	7.	
              You
                will keep proofs of delivery and collection that are customer signed,
                dated and with the signatory name printed on site and make them available
                to us upon request.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	8.	
              You
                will keep a copy of your customers' purchase orders on site and make
                them
                available to us upon request.

            

    

    
      	9.	
              The
                following debt types shall be excused from
                notification:

            

    

    
      	
            	a)	
              Debts
                between Associates;

            

    

    
      	
            	b)	
              Invoices
                issued prior to goods being
                provided;

            

    

    
      	
            	c)	
              Consignment
                stock sales;

            

    

    
      	
            	d)	
              Samples;

            

    

    
      	
            	e)	
              Known
                Bad Debts (i.e. debts that you know to be
                uncollectable);

            

    

    
      	
            	f)	
              Accounts
                currently in litigation;

            

    

    
      
        
          	
                	g)	
                  Interim
                    billing, unless we are comfortable that the prevailing contract
                    is
                    divisible;

                

        

      

    

    
      
        
          	
                	
                  h)

                	
                  All
                    debts resulting from Royalties or the sale of Licences and Covermount
                    Licences;

                

        

      

    

    
      
        
          	
                	
                  i)

                	
                  Staff
                    sales.

                

        

      

    

    
      	
              10.

            	
              Due
                to the relationship with Zoo Group Plc we shall exclude these
                invoices.

            

    

    
      	11.	
              In
                order for us to operate your facility accurately we will need to
                establish
                a reserve account
                for the
                following:

            

    

    
      
        
          
            	
                  	a)	
                    Retrospective
                      rebates;

                  

          

        

      

    

    
      
        
          	
                	
                  b)

                	
                  Settlement
                    discounts;

                

        

      

    

    
      
        
          	
                	
                  c)

                	
                  Credit
                    balances;

                

        

      

    

    
      
        
          	
                	
                  d)

                	
                  Outstanding
                    debit notes;

                

        

      

    

    
      
        
          	
                	
                  e)

                	
                  Sale
                    and return terms resulting in a dilution in excess of 15% of
                    the Net
                    Approved
                    Debts;

                

        

      

    

    
      
        
          	
                	
                  f)

                	
                  A
                    reserve of 6% of Toys R Us Ltd balance to allow for settlement
                    discounts
                    and advertising contributions; We will adjust this reserve at
                    our sole
                    discretion and it will be for an initial amount calculated against
                    the
                    take-on ledger.

                

        

      

    

    

    
      
        
          	12.	
                  We
                    shall undertake a facility review at the end of April 2007 which
                    shall
                    cover, inter alia, the level of credit notes, the Initial Percentage,
                    the
                    Refer Limit and the continuing need
                    for Personal
                    Guarantees.

                

        

      

    

     

    Special
      Conditions

    We
      reserve the right to review the facility should:

     

    
      
        
          	1.	
                  The
                    Consolidated Audited Tangible Net Worth inclusive of Goodwill
                    as at 31
                    March
                    2007 be less than £600k, and not rise annually thereafter by
                    £200k;

                

        

      

    

    
      
        
          	
                  2.

                	
                  The
                    debt turn exceed 80 days in any
                    month;

                

        

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    It
      is our
      company policy to ensure that every aspect of your facility is clearly explained
      to prevent difficulties or confusion arising later. I will be pleased to discuss
      any aspect of
      this
      letter with you or answer any questions you may have.

     

    Yours
      faithfully

    

    /s/
      Stuart Lake

    

    Stuart
      Lake

    Associate
      Director

    

    

    

    Form
      of
      Acknowledgement

    

    We
      acknowledge receipt of a copy of the mentioned document

    

    

    

    .....................................................

    The
      Director

    For
      and on behalf of ZOO DIGITAL PUBLISHING LIMITED

    

    Date:.../s/
      Barry Hatch.............................

    

    
      
         

      

      
        4

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