Document:

Creating
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                  LICENSE
                    AGREEMENT

                	
                  Page
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        License
          

      

    

    Agreement 

     

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      

        
          

        

        Creating
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                  LICENSE
                    AGREEMENT

                	
                  Page 2
                    of 38

                

        

      

      
         

      

    

    THIS
      LICENSE AGREEMENT made effective the 20th
      day of
      June, 2005 (the "Effective Date")

     

    BETWEEN:

     

    SMART
      KIDS INTERNATIONAL HOLDINGS, INC.,
      a body
      incorporated under the laws of the State of Nevada, having an office at
44
      Coyote
      Mountain Road, Santa Fe, New Mexico 87505

     

    (the
      "Licensor"), has the full authorized right to enter into an agreement with
      the
      (Licensee)

     

    SMART
      KIDS GROUP INC., a body incorporated under the laws of the State of Florida,
      having an office at 44
      Coyote
      Mountain Road Santa Fe, New Mexico 87505.
      (the
      "Licensee")

     

    WHEREAS:

    
      	·	
              The
                Licensor and the Licensee wish to enter into a strategic Agreement,
                pertaining to the licensing of all the Licensor’s intellectual property
                (the “first "Agreement"). Dated on the 8TH day of December
                2004.

            

    

     

    
      	
              ·

            	
              The
                Licensor and the Licensee are both committed to the success of the
                venture
                to develop and market the intellectual property (Theme) and are mutually
                interested in the raising of additional capital
                investment.

            

    

     

    
      	
              ·

            	
              The
                Licensor and the Licensee are both committed to the success of this
                venture.

            

    

    

    NOW
      THEREFORE WITNESSETH THAT
      for good
      and valuable consideration, the receipt and sufficiency of which is acknowledged
      by the parties, the parties agree as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

        
          

        

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                    LICENSE
                      AGREEMENT

                  	
                    
                      Page 3
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    1. DEFINITIONS

    

    
      	1.1.	
              "Advertising
                Materials"
                means all advertising and promotional materials for the Licensed
                Products
                including but not limited to packaging and labeling materials, which
                are
                produced by or for the Licensee and which make use of any of the
                Trademarks, copyrights, new concepts. Domain names,
                Characters,

            

    

    

    
      	1.2.	
              "Trademarks,
                copyrights, domain names, Concepts &
                Characters"
                means the use or likenesses of the
                following:

            

    

    

    
      	1.2.1.	
              the
                characters BE ALERT BERT, BE AWARE CLARE, OTIS NOTICE, FREDDIE THE
                FIREFLY, UNCLE BUZZ, BETTY BLUE, and DAISY. These characters are
                defined
                in Schedule "A", attached to and 

            

    

    
      	1.2.2.	
              Forming
                a part of this License Agreement, in terms of a character comparison
                registered with the United States & Canada Copyright Offices;
                and,

            

    

    
      	1.2.3.	
              all
                future characters created by the Licensor, or the Licensee pursuant
                to
                this License Agreement, during the term of this License Agreement
                or any
                extensions thereto where such characters Trademarks
                or copyrights new concepts and domain names
                that are associated with the Theme and the Licensor’s future plans
                like.

            

    

    
      	
              1.2.4

            	
              The
                following:

            

    

    

    Mall-Centered,
      Bee Hive Kiosks and Stores:

    In
      development is the creation of a franchise of Bee Hive-shaped Bert
      & Clare
      kiosks
      to be purchased and owner-operated in stores throughout North America. The
      kiosks offer a tremendous opportunity to promote and sell Bert
      & Clare
      merchandise, offer the opportunity to play Bert
      & Clare
      interactive games, and promote upcoming episodes as well as Smart Kids, and
      will
      add a noticeable and consistent, real world presence to everyone’s shopping
      experience

    

    Ad-driven,
      Web-interactive, Video-CDs as the Pilot Launch Vehicle for Be
      Alert Bert’s
      “Be People Smart”:

    Smart
      Kids will use proprietary CD-ROM and DVD-ROM video delivery technology that
      places full screen, Web-interactive video on personal computers, accelerating
      traffic to its Web site (and those of its advertisers) substantially increase
      revenue in the process. This will be created and redefined entertainment,
      marketing, distribution, and revenue generating models that revolutionize how
      revenue is generated on the Internet. Using Be
      People
      Smart, as a timely pilot for its launch, it aims to support the production
      with
      a strategic and proprietary ad placement format using advertisers and sponsors
      to distribute the production through target market effective publications,
      and
      generate revenue in the process, attracting a noticeably increased number of
      people to the shows and the Smart Kids’ Web community.

    

    SmartKids’
      Web site: 

    Smart
      Kids not only promotes the above-detailed shows and merchandise. It provides
      an
      educational and entertainment experience far beyond the sum of its individual
      parts. At the outset, in addition to the promotion of Be
      Alert Bert and
      The
      Adventures of Bert & Clare,
      Smart Kids will generate revenue through 1) the sale of My Smart Kids’
individual software components and the entire My Smart Kids productivity
      software suite, and 2) subscription, banner ad, merchandising commissions and
      e-commerce revenue generated from the My Smart Kids’ Internet hosting site and
      browser. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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    Smart
      Kids takes the concepts behind the world’s most successful software packages and
      Internet sites and redesigns them for kids - as a subscription-based online
      community for kids. There are three forms of subscription: the free user gets
      limited access to the site’s features. The intermediate user gets more. And the
      power user gets complete access to the site’s best features, as well as a series
      of revenue-generating features. Smart Kids features, among other things, a
      safety first community, a portal to the television shows which enables kids
      to
      play character-driven games, create their own videos, join chat clubs, have
      safety alerts emailed to them on a random basis, etc. All of the real world
      games, books and features will be augmented in this site. 

    

    
      	
              ·

            	
              The
                objective of this project is to develop a community of web sites,
                and
                software packages based around the central portal
                SmartKidsBusinessCenter.com. The site will offer a number of services.
                Initially, the primary service offered will be web-based e-mail.
                The site
                will also offer a number of other features, such as chat rooms, news,
                animation, games and links to other sites. These features will be
                implemented at various stages in the development process based on
                development time and cost.

            

    

    
      	
              ·

            	
              The
                first piece of off line software that will be developed will be the
                "My
                Smart Kids' E-Mail". This will software will function either as a
                stand-alone product or as an enhancement to the features offered
                on the
                web site. Following the e-mail program, the My Smart Kids Virtual
                Bank
                will be created. This will teach kids the value of saving money,
                as well
                as offer the potential for partnership with an established
                bank.

            

    

    
      	
              ·

            	
              All
                components of this project will promote the "community" aspect. This
                will
                be achieved through consistent quality, design, and branding as well
                as
                the implementation of chat rooms and other "human interaction" elements.
                This strategy has proved successful in creating large numbers of
                return
                visitors.

            

    

    

    There
      are
      heightened features never before seen, including a banking system and home
      video
      distribution network that not only generates revenue for SmartKids, but enables
      kids to make money for themselves:

    

    MySmart
      Kids is being developed in three distinct, yet non-mutually exclusive stages:
      1)
      the development of an Internet community and hosting site for kids, 2) the
      development and sale of individual components of MySmart Kids productivity
      software, and 3) the development and sale of the MySmart Kids productivity
      suite.

    

    There
      are
      a number of ways outside sites could be chosen:

    
      	
              ·

            	
              Pay
                for Placement - outside sites could pay to be
                listed.

            

    

    
      	
              ·

            	
              Link
                Sharing - outside sites could place a link to SmartKids’ site on their
                sites.

            

    

    
      	
              ·

            	
              SmartKids
                Recommended - sites of high quality that are selected by SmartKids.com
                itself.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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    A
      combination of the above will be used for selection. The majority of the links
      posted could be based on a link sharing, because this will drive traffic to
      the
      site. With premium placement web sites that pay a fee could be list higher
      on
      the list, contain more information or have a graphic. High quality sites could
      be recommended in a special section, such as sites of the week (day, month,
      year...). 

    

    Multimedia
      Components:

    The
      site
      will also offer multimedia components, such as games and animation. This content
      will be designed in such a manner to continue the branding of the community
      -
      focusing on education and entertainment. The content for this section can be
      created both in-house and by third party developers as the site grows. Following
      the development of the key site components, additional components such as news
      and chat features will be incorporated.

    

    This
      web
      site will function as the hub for the My Smart Kids Community, tying together
      all of the various elements. The site will focus on educational and entertaining
      content for kids between the ages 8 and up. 

    

    E-Mail:

    The
      e-mail component will, for the most part, function similar to most online email
      systems. The main difference will be that the e-mail will put a focus on
      messages that incorporate multimedia, such and video or audio. This will include
      highlighting multimedia messages when they are received and by encouraging
      the
      user to send this type of message themselves. 

    

    Offline
      Software: 

    The
      offline software will function both as stand-alone products, and as an addition
      to the online components of the community. E-Mail Software 

    

    This
      program will function in a similar fashion to the online version (with the
      focus
      on multimedia), except that the user will be able read and write messages while
      offline. This software will interact closely with the Web site and will include
      features that will let the user make full use of the website. 

    

    Portal
      Component:

    The
      portal component of the site will consist of a series of links to sites that
      users of the site would be interested in. These sites will consist of both
      its
      own community sites and outside sites

    

    Virtual
      Bank:

    The
      Virtual Bank will let kids open virtual bank accounts and manage their money
      through an easy to use interface. It will allow kids to see how much money
      they
      have made, and what they have spent it on. This software will also create
      opportunities to build relationships with an established bank, to help with
      finance or distribution of the My Smart Kid's products.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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    There
      are
      two primary aspects to the SmartKids project. The first component is the message
      center, which is part of the MySmart Kids Web site. The second component is
      the
      software suite, which can be accessed by members. Initially, SmartKids software
      will be comprised of the following components: 

    

    Desktop
      publisher–
enables
      children to publish letters, business cards, cards and brochures.

    

    Cool
      Mail –
      free e-mail account with audio and clip art limited file transfer.

    

    Virtual
      Banker –
      virtual banking for managing of allowance, paper route, mowing lawns, etc.,
      plus
      a journal and tutorial.

    

    Chat
      Software –
      restricted for SmartKids’ server and encrypted for registered users
      only.

    

    Address
      Manager –
      keeping track of friends and family. Has e-mail capability.

    

    Power
      User Marketing Ideas and Web Management –
      educational program created for and by kids.

    

    Message
      Center –
      linked to Web site, kids can leave message for friends or family.

    

    Smart
      Kids –
      enable kids to get discounts from SmartKids partnering corporations and
      clients.

    

    Internet
      phone –
      kids’ Internet phone software.

    

    Journal –
      keeping
      their thoughts online.

    

    Smart
      Kids Travel–threw
      affiliations earning smile miles and smart points.

    

    Smart
      Cards–
      will be
      used in affiliation with many sponsors to create smart points.   

    

    These
      components are launch components only, with additional development planned
      to
      meet future needs. Each component will have up-grades to install a built-in
      video tutor.

    Combined,
      the Server and the Client sides provide a unique online experience. A small
      sampling of products and services is listed below. These components are launch
      products only, with further elements developed, as future needs are uncovered.
      Each component will have up grades to install a built-in video tutor. Specific
      components will be available only through SmartKids business center.com, the
      company Web site, accelerating traffic to the site and extending each user’s
      interactivity. 

    
      	 	
              ·

            	
              MySmartKids
                Web designs –
                enabling kids to design their own web sites in a fun and simple
                way.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Desktop Publisher
                -
                enabling kids to publish letters, business cards, cards, and
                brochures.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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                      LICENSE
                        AGREEMENT

                    	
                      
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              ·

            	
              MySmartKids
                web mail client–
                keeping kids in touch with their
                friends.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Virtual Banker –
                virtual banking for management of allowance, paper route, mowing
                lawns,
                etc., plus a journal and tutorial.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Chat Software –
                restricted for MySmart Kids’ server and encrypted for registered users
                only.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Address Manager –
                keeping track of friends and family. Has e-mail
                capability.

            

    

    
      	 	
              ·

            	
              MySmartKids
                CD-Maker –
                enables kids to burn their own CDs, as well as design jewel case
                inserts
                and disk labels.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Search Engine –
                searches the Web for kid specific
                content.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Marketing Ideas & Web Management –
                educational program created for and
                by kids.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Message Center –
                linked to web site, kids learn leave message for friends or
                family.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Pagers.
                Part of the web Site.

            

    

    
      	 	
              ·

            	
              MySmartKids
                Smart Cards –
                enable kids to get discounts from MySmart Kids partnering corporations
                and
                clients. 

            

    

    
      	 	
              ·

            	
              MySmartKids
                PDA -
                kids Internet phone software.

            

    

    
      	 	
              ·

            	
              MySmartKids Journal-
                keeping their thoughts online.

            

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      
         

        

          
            

          

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                      LICENSE
                        AGREEMENT

                    	
                      
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    2.
      COMPANY GOALS

    

    The
      licensor’s initial plans are to initiate and follow through with the following
      goals:

    

    PHASE
      1

    INITIAL
      EXPANSION, INCLUDING DEVELOPMENT OF THE FOLLOWING PROFIT CENTERS AND DIVISIONS:
      

    

    The
      Be
      Alert Bert Television Broadcast (from existing Master Tapes) 

    
      	
              ·

            	
              Be
                Alert Bert is an animated and live-action TV series for pre-school
                aged
                children. Its message is to promote safety and awareness of one’s
                surroundings in an entertaining and educational format. The main
                character, Be Alert Bert, is a helpful animated bee whose mission
                is to
                guide children through life safely. It entertains and educates the
                whole
                family about safety awareness with features that include Bee Tips,
                Safety
                Songs, and the news magazine parody, “Live at the Hive”. Bert promotes
                responsibility, sharing, understanding, and honesty. The series has
                been
                nominated for three AMPIA (Alberta Motion Picture Industry Association)
                Awards, and won the Best Children’s Television Show award in 1998.
                Although this series has aired on over 11 networks, it was not widely
                leveraged in the United States. Our goal is to place the current
                series on
                both English and Spanish networks with large viewer base, in order
                to
                drive retail and wholesale revenue through the sale of both videos
                and
                licensed products. 

            

    

    

    The
      Be
      Alert Bert Video/DVD Series (from existing Master Tapes) 

    
      	
              ·

            	
              An
                existing video library of master tapes will be re-formatted and packaged
                for distribution in North and South America for English and Spanish
                language children’s TV programming, and for retail and wholesale video
                sales. Initially, SKGI will seek a large distribution partner in
                conjunction with the broadcast placement. However, sales of individually
                packaged videos are planned at the retail level through direct-to-home
                marketing, at the MySmartKids.com on-line web community, kiosks in
                malls
                (distributorships), and at the wholesale level through licensing
                and
                barter time with networks and selected retailers throughout North
                and
                South America. 

            

    

    

    Expansion
      of the Current Be Alert Bert Website 

    
      	
              ·

            	
              SKGI
                will enhance the current Be Alert Bert web site to include an expanded
                e-commerce platform, allowing visitors to purchase the full line
                of Bert
                and Clare videos and licensed products, as well as preview upcoming
                episodes.

            

    

    

    Commercialization
      and Further Development of Bert and Clare Line of Licensed Products

    
      	
              ·

            	
              Currently
                SKGI has several products ready for commercialization, including:
                

            

    

    
      	 	
              o

            	
              Story
                Book: How Be Alert Bert Got His Name (Published)
                

            

    

    
      	 	
              o

            	
              Story
                Book: Be Alert Bert and Be Aware Clare Visit the City (Written,
                Unpublished) 

            

    

    
      	 	
              o

            	
              Narrated
                Tape and Story Book Combination: How Be Alert Bert Got His Name
                

            

    

    
      	 	
              o

            	
              Be
                Alert Bert Watch 

            

    

    
      	 	
              o

            	
              Be
                Alert Bert Safety Songs I Cassette (6 songs)

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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              o

            	
              Other
                Recorded Songs (26; each corresponds to an episode)
                

            

    

    

    
      	
              ·

            	
              In
                addition to these current product offerings, SKGI may develop some
                of the
                following products, which will directly correspond to specific video
                subject matter, and may be packaged together for a value-added sale:
                

            

    

    
      	 	
              o

            	
              Coloring
                and Activity Books 

            

    

    
      	 	
              o

            	
              Flash
                Light 

            

    

    
      	 	
              o

            	
              Night
                Light 

            

    

    
      	 	
              o

            	
              Bike
                Helmet 

            

    

    
      	 	
              o

            	
              Camping
                Set 

            

    

    
      	 	
              o

            	
              Elbow/Knee
                Pads 

            

    

    
      	 	
              o

            	
              Hats/Mittens
                

            

    

    
      	 	
              o

            	
              Bath
                Towels 

            

    

    

    Direct-to-Home
      Sales Distribution Network 

    
      	
              ·

            	
              SKGI
                is currently developing a strategic plan for promoting this profit
                center,
                which may include: 

            

    

    
      	 	
              o

            	
              Partnering
                with an existing in-home distribution network, which specializes
                in
                children’s products; 

            

    

    
      	 	
              o

            	
              Using
                network barter time to attract new distributors;
                

            

    

    
      	 	
              o

            	
              Leveraging
                PR/Media outlets to attract new distributors;

            

    

    
      	 	
              o

            	
              Advertising
                in franchise publications to attract new
                distributors.

            

    

    

    PHASE
      2

    SECONDARY
      EXPANSION AND DEVELOPMENT OF THE FOLLOWING PROFIT CENTERS, BASED ON AVAILABILITY
      OF APPROPRIATE FUNDING: 

    The
      New
      Adventures of Bert and Clare TV Series (66 new 15 minute 3D animated shows)
      

    

    SKGI
      has
      assembled an experienced team to develop and produce its newest television
      series, The New Adventures of Bert and Clare, which will be a 3-D animated
      follow-up series of 66 new 15- minute shows, based on the original Be Alert
      Bert
      series. The New Adventures of Bert and Clare will address action awareness,
      education, and adventure, and expand SKGI’s reach to children, ages 6 - 11. The
      thematic focus of the new series will be the idea and need for tolerance.
      Children will witness, through the animated bug world, an unmistakable parallel
      to many of the problems and challenges they may face in the real world. The
      New
      Adventures of Bert and Clare aims to present its audience with action-packed,
      funny, fast-paced, wonderfully animated, “exceptionally educational” adventures
      filled with some of the most lovable and memorable characters children will
      ever
      meet in any cartoon. Its aim is not only to entertain and educate children,
      but
      also to empower them. 

    

    MySmartKids.com
      - On-Line Community and Web Mall 

    
      	·	
              The
                MySmartKids.com On-Line Community and Web Mall will bring together
                the
                strengths of all of SKGI’s assets and product lines to become the premier
                online community for children’s safety and awareness and educational
                products. MySmartKids.com takes the concepts behind the world’s most
                successful software packages and web sites and redesigns them for
                children
                - as a subscription-based on-line community. Examples of some web
                site
                features are: 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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                        AGREEMENT

                    	
                      
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              o

            	
              Cool
                Mail: free e-mail account with audio and clip art
                

            

    

    
      	 	
              o

            	
              Virtual
                Banker: virtual banking for managing allowance, paper route, lawn
                mowing,
                etc 

            

    

    
      	 	
              o

            	
              Chat
                Software: restricted for SmartKids’ server and encrypted for registered
                users only 

            

    

    
      	 	
              o

            	
              Address
                Manager: keeps track of friends and family, has e-mail capability
                

            

    

    
      	 	
              o

            	
              Message
                Center: linked to Web site. Children can leave messages for friends
                or
                family 

            

    

    
      	 	
              o

            	
              Discounts:
                from SmartKids partnering corporations and clients
                

            

    

    
      	 	
              o

            	
              Internet
                Phone: web-based phone software as well as pager and palm pilot capability
                

            

    

    
      	 	
              o

            	
              Journal:
                will allow children to keep their thoughts online
                

            

    

    
      	 	
              o

            	
              Interactive
                Games: server-assisted multi-player gaming center to paid members
                

            

    

    
      	 	
              o

            	
              Power
                User Marketing Ideas and Web Management: educational program created
                for
                children 

            

    

    
      	 	
              o

            	
              GPS
                Tracking: interface for parent monitoring

            

    

    

    Beehive
      Retail Kiosks & Stores (Distributorships) 

    
      	
              ·

            	
              In
                conjunction with an established US marketing consulting group that
                specializes in the sales and placement of retail kiosks in regional
                malls
                and stores throughout North America, SKGI is developing Bert and
                Clare’s
                Beehive Kiosks. The kiosks offer a tremendous opportunity to promote
                and
                sell Bert and Clare merchandise, offer visitors the chance to play
                Bert
                and Clare interactive games, and promote upcoming episodes and drive
                traffic to the MySmartKids.com Online Community, at the point of
                sale.
                

            

    

    

    Synergistic
      and Strategic Acquisitions 

    
      	
              ·

            	
              SKGI
                will continuously seek to make acquisitions, which contribute to
                its theme
                of child safety awareness, through the addition of content, intellectual
                property, distribution, and/or
                marketing.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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    COPYRIGHTS
      AND THE NEW CONCEPTS

    

    "Copyrights
      and the new concepts"
      means
      all copyrights now or hereafter existing or created by the Licensor, or assigned
      to the Licensor by the Licensee pursuant to this License Agreement, relating
      to
      the Characters or any derivative works using or based on the Characters new
      concepts, domain names. Schedule "B" attached to and forming a part of this
      License Agreement lists the existing applied for and registered copyrights
      as of
      the Effective Date.

    

    
      	
              ·

            	
              "Licensed
                Product,”
                means each and every service and product of every nature or kind
                associated with the Character and
                new concepts,
                domain names, Copyrights, and the
                Trademarks.

            

    

    
      	
              ·

            	
              “Territory"
                means unlimited geography

            

    

    
      	
              ·

            	
              "Theme"
                means child education, health, fitness, edutainment and
                safety.

            

    

    
      	
              ·

            	
              “Trademarks,
                domain names, new concepts"
                and, the Copyrights, titles of copyrighted works, the names of the
                Characters, and any combination of the foregoing. Schedule "C" attached
                to
                and forming a part of this License Agreement lists the existing applied
                for and registered trademarks,
                domain names, new concepts and
                Copyrights, as of the Effective
                Date.

            

    

    

    
      	
              1.

            	
              GRANT
                OF LICENSE

            

    

    

    
      	
              1.

            	
              The
                Licensor grants to the Licensee, subject to the terms and conditions
                of
                this License Agreement and a management fee to Smart Kids International
                Holdings, Inc for quality oversee, but an exclusive royalty-free
                license
                to use the “Trademarks,
                domain names or copyrights, Concepts &
                Characters”
                in
                connection with the manufacture, distribution, sale and advertising
                of the
                Licensed Products in the Territory for the term of this License
                Agreement.

            

    

    

    
      	
              2.

            	
              TERM

            

    

    

    
      	
              2.1

            	
              The
                term of this License Agreement shall be for a period of twenty five
                (25)
                years, commencing on the Effective
                Date.

            

    

    
      	
              2.2

            	
              The
                Licensee shall have the option during the initial term to extend
                in
                perpetuity the term of the License Agreement.

            

    

    
      	
              2.2.1

            	
              The
                Licensee shall provide the Licensor in writing of the Licensee's
                intention
                to exercise the option no less than 120 days before the date of the
                termination of the initial term of this License Agreement.
                

            

    

    
      	
              2.2.2

            	
              The
                extension of the term is subject to Article 4 herein, specifically
                the
                establishment of a Royalty for the extended term of this License
                Agreement. 

            

    

    

    
      	
              3

            	
              ROYALTY

            

    

    
      	
              3.1

            	
              The
                Licensor and the Licensee agree that in the event of the Licensee
                exercising its option to extend the term of this License Agreement
                in
                perpetuity at the end of the initial twenty five (25) year term granted
                by
                this License Agreement, or
                immediately upon the Licensor's ownership of the Licensee becoming
                equal
                to or less than (12) percent, the Licensor and the Licensee shall
                enter
                into negotiations to determine a Royalty payable by the Licensee
                to the
                Licensor, pursuant to Article 4.2
                herein.

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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              3.2

            	
              The
                Licensor and the Licensee agree that the Royalty payable to the Licensor
                in the event of the Licensee exercising its option to extend the
                term of
                the License Agreement in perpetuity shall be based upon fair market
                value
                but in no event shall exceed fifteen (15) per cent of the value of
                gross
                sales of the Licensed Products before expenses or other
                deductions.

            

    

    
      	
              3.3

            	
              In
                the event that the Licensor and the Licensee are unable to agree
                on the
                Royalty pursuant to Article 4.2 within 120 days of the commencement
                of
                negotiations as specified in Article 4.1, the Licensor and the Licensee
                agree that the matter shall be submitted for final and binding arbitration
                pursuant to the provisions of Article 11
                herein.

            

    

    

    
      	
              4

            	
              MARKETING
                AND SUPPLY

            

    

    
      	
              4.1

            	
              The
                Licensee shall use best efforts to support, promote and establish
                a market
                for the Licensed Products. The Licensee shall use best efforts to
                supply
                such market by distributing and selling a sufficient volume of Licensed
                Products to meet the demand in the
                Territory

            

    

    
      	
              4.2

            	
              Notwithstanding
                the provisions of Article 5.1 herein the Licensor acknowledges that
                the
                market for the Licensed Products is limited and that it is anticipated
                that up to four (6) years from the Effective Date will be required
                before
                a market begins to develop in the
                Territory.

            

    

    
      	
              4.3

            	
              The
                Licensor shall use best efforts to support, promote the establish
                markets
                for the Licensed Products, including but not limited to the attendance
                at
                trade shows, and media contact, as may be reasonably requested by
                the
                Licensee and providing that all expenses or expenditures to enable
                such
                efforts shall be paid for by the
                Licensee

            

    

    

    
      	
              5

            	
              ASSIGNMENT
                OF RIGHTS BY LICENSEE

            

    

    
      	
              5.1

            	
              The
                Licensee hereby assigns to and waives its moral rights in favour
                of the
                Licensor it’s entire, worldwide right, title and interest in and to all
                "new works" or "derivative works" created by the Licensee using the
                Characters, including but not limited to the copyrights on such "new
                works" or "derivative works”. Which all employees must sign as
                well?

            

    

    

    
      	
              6

            	
              TRADEMARKS
                AND QUALITY

            

    

    
      	
              6.1

            	
              All
                trademark uses of the Trademarks by the Licensee shall inure to the
                Licensor's benefit and shall be in accordance with the standards
                established by the Licensor pursuant to this Article
                7.

            

    

    
      	
              6.2

            	
              The
                Licensor shall maintain the existing registrations of Trademarks
                and file
                applications for the registration of new Trademarks upon reasonable
                notice
                from the Licensee. The Licensee shall pay directly all costs to be
                incurred by the Licensor in association with all such applications
                or
                registrations.

            

    

    
      	
              6.3

            	
              The
                Licensee agrees to affix to the Licensed Products such trademark
                notices
                as the Licensor reasonably requests and as required by
                law.

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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              6.4

            	
              The
                Licensee warrants that the Licensed Products will be consistent with
                the
                Theme and of good quality in design, material, and workmanship and
                suitable for their intended purpose; that no injurious or toxic substance
                will be used in or on the Licensed Products; that the Licensed Products
                will not cause harm when used as instructed and with ordinary care
                for
                their intended purpose; and that the Licensed Products will be
                manufactured, sold, and distributed in strict compliance with all
                applicable laws and regulations.

            

    

    
      	
              6.5

            	
              The
                Licensee acknowledges and agrees that the Licensor shall have creative
                input on the design and development of all Licensed Products. The
                Licensor
                agrees to act promptly and reasonably in providing its input The
                Licensee
                agrees to make every reasonable effort to maintain the quality of
                each
                Licensed Product to a standard consistent with the creative input
                provided
                by the Licensor.

            

    

    

    
      	
              7

            	
              REPRESENTATIONS
                AND WARRANTIES

            

    

    
      	
              7.1

            	
              The
                Licensor hereby represents and warrants
                that:

            

    

    
      	
              7.2

            	
              The
                Licensor owns the Trademarks,
                domain names, copyrights, Concepts &
                Characters”
                and has the right to enter into and grant the rights contained in
                this
                License Agreement;

            

    

    
      	
              7.3

            	
              The
                Licensor has not entered into any written or verbal agreements or
                commitments with respect to the Characters, Copyrights, new concepts,
                domain names or Trademarks that are in conflict with the provisions
                of
                this License Agreement;

            

    

    
      	
              7.4

            	
              The
                use of the Copyrights, Characters, new concepts, domain names and
                Trademarks by the Licensee in accordance with this License Agreement
                shall
                not infringe upon any rights of any person, firm or corporation;
                and,
                

            

    

    
      	
              7.5

            	
              There
                are no outstanding claims or litigation pending or threatened against
                or
                involving the title to or ownership of the Characters, Copyrights
                or
                Trademarks. 

            

    

    

    
      	
              8

            	
              INDEMNIFICATIONS,
                PRODUCT LIABILITY
                INSURANCE

            

    

    
      	
              8.1

            	
              The
                Licensee shall indemnify and hold harmless the Licensor, its officers,
                agents, and employees, from any claims, demands, causes of action,
                expenses or liabilities arising out of or relating to the manufacture,
                distribution, sale. or use of the Licensed Products during the term
                of
                this License Agreement and any extensions
                thereof.

            

    

    
      	
              8.2

            	
              The
                Licensor shall indemnify and hold harmless the Licensee, its officers,
                agents, and employees from any claims, demands, causes of action,
                expenses, or liabilities arising solely out of the use by the Licensee
                of
                the Characters as authorized under this License
                Agreement

            

    

    
      	
              8.3

            	
              The
                Licensee and the Licensor agree that the Licensee shall pay any and
                all
                amounts owing by the Licensor pursuant to Article 9.2 and that these
                same
                amounts shall be repaid by the Licensor to the Licensee as a set
                off
                against Royalties payable to the Licensor pursuant to this License
                Agreement.

            

    

    
      	
              8.4

            	
              As
                to any claims falling within the scope of the foregoing
                indemnification:

            

    

    
      	
              8.4.1

            	
              each
                party agrees to promptly notify the other of and keep the other fully
                advised with respect to such claims and the progress of any suits
                in which
                the other party is not participating;

            

    

    
      	
              8.4.2

            	
              each
                party will have the right to assume, at its sole expense, the defense
                of a
                claim or suit made or filed against the other
                party;

            

    

    
      	
              8.4.3

            	
              each
                party will have the right to participate, at its sole expense, in
                any suit
                instituted against it and to approve any lawyers selected by the
                other
                party to defend it, which approval will not be unreasonably withheld
                or
                delayed; and 

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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              8.4.4

            	
              a
                party assuming the defense of a claim or suit against the other party
                will
                not settle such claim or suit without the prior approval of the other
                party, which approval shall not be unreasonably withheld or
                delayed.

            

    

    

    
      	
              8.5

            	
              At
                the written request and expense of the Licensee the Licensor agrees
                to
                assist the Licensee in taking all steps necessary to restrain or
                prohibit
                any infringements of the Characters, Copyrights, Trademarks, domain
                names
                and
                new concepts
                at
                the expense of the Licensee.

            

    

    
      	
              8.6

            	
              The
                Licensee agrees to obtain and maintain during the term of this License
                Agreement and any extension thereof at its own expense product liability
                insurance providing protection in the minimum amount of one million
                ($1,000,000.00) dollars per occurrence and two million ($2,000,000.00)
                dollars annual aggregate. These amounts are to be applicable against
                any
                claims, liabilities, damages, costs, or expenses arising out of any
                defects or alleged defects in the Licensed Products. Such insurance
                will
                include coverage of the Licensor, its agents, and employees. Within
                30
                days after the Effective Date, the Licensee shall have its insurance
                company issue a certificate to the Licensor confirming that the required
                policy is in effect. 

            

    

    

    
      	
              9

            	
              TERMINATION

            

    

    
      	
              9.1

            	
              In
                the event of any default or breach of this License Agreement by the
                Licensee, which is not cured by the Licensee within 45 calendar days
                after
                written notice being given by the Licensor to the Licensee of said
                default
                or breach, the Licensor may, at its sole discretion, at any time
                after the
                expiration of such 45 calendar day period, terminate this License
                Agreement with immediate effect by written notice of same to the
                Licensee.

            

    

    
      	
              9.2

            	
              The
                Licensor shall have the right at its sole discretion to terminate
                the
                License Agreement in the event that the
                Licensee:

            

    

    
      	
              9.2.1

            	
              Becomes
                insolvent; or

            

    

    
      	
              9.2.2

            	
              Commits
                an act of bankruptcy; or

            

    

    
      	
              9.2.3

            	
              Abandons
                the License as deemed by the failure to pursue the active business
                as
                intended by the License; or

            

    

    
      	
              9.2.4

            	
              Assigns
                the License without written consent;
                or

            

    

    
      	
              9.2.5

            	
              Fails
                to observe or perform any of the provisions of the License;
                or

            

    

    
      	
              9.2.6

            	
              Experiences
                a change in control that is not approved by the Licensor, such approval
                not to be unreasonably withheld, prior to such change
                occurring.

            

    

    
      	
              9.3

            	
              Licensee
                acknowledges that a termination of the License Agreement does not
                relieve
                Licensee of obligations under the License Agreement. This clause
                shall
                survive the termination of this License
                Agreement.

            

    

    
      	
              9.4

            	
              On
                expiration or termination of this License Agreement, the Licensee
                agrees
                that it shall not renew any sub-license or other agreement pertaining
                to
                the Licensed Products, and it shall not make any new agreements of
                any
                kind regarding the Licensed Products. The Licensee will have the
                right to
                sell any Licensed Products on hand as of the date of expiration or
                termination of the License Agreement subject to payment of royalties
                to
                the Licensor on any such sales, if applicable. Prior to disposing
                of any
                such inventory of Licensed Products, the Licensee will deliver to
                the
                Licensor an accurate itemized statement of all such Licensed Products
                on
                hand.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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              10

            	
              ARBITRATION

            

    

    
      	
              10.1

            	
              Should
                the parties to this License Agreement be in dispute as to the meaning
                and
                application of any term herein, or if the parties are in dispute
                as to the
                royalty to be negotiated pursuant to Article 4 herein:
                

            

    

    
      	
              10.1.1

            	
              Any
                controversy or claim arising out of or relating to this Agreement
                or the
                breach thereof shall be settled by arbitration in accordance with
                the laws
                of Nevada by two arbitrators, one of whom shall be appointed by the
                Licensee, one of whom shall be appointed by the Licensor and if agreement
                cannot be reached, by a third arbitrator which shall be appointed
                by
                agreement of the first two arbitrators.

            

    

    
      	
              10.1.2

            	
              Such
                arbitration shall be conducted in Nevada in accordance with the rules
                of
                the prevailing Arbitration Association, except with respect to the
                selection of arbitrators which shall be as provided in this Section
                11.1.1. 

            

    

    
      	
              10.1.3

            	
              Judgment
                upon the award rendered by the arbitrators may be entered in any
                court
                having jurisdiction thereof. All fees and expenses of the arbitration
                process shall be borne equally by the parties hereto regardless of
                the
                final outcome, unless and to the extent the arbitrators shall determine
                that under the circumstances the sharing of all or a part of any
                such fees
                and expenses would be unjust.

            

    

    

    
      	
              11

            	
              ASSIGNMENTS

            

    

    
      	
              11.1

            	
              The
                Licensee will not, without the Licensor's prior written consent,
                not to be
                unreasonably refused, directly or indirectly assign, transfer, sub-license
                or encumber any of its rights under this License Agreement.
                

            

    

    
      	
              11.2

            	
              The
                Licensee shall not grant through any sub-license any greater right
                than
                granted to the Licensee by this License
                Agreement.

            

    

    
      	
              11.3

            	
              The
                Licensor will not, without the Licensee's prior written consent,
                not to be
                unreasonably refused, directly or indirectly assign, transfer, sub-license
                or encumber any of its rights under this License Agreement.
                

            

    

    
      	
              11.4

            	
              The
                Licensee acknowledges that for tax planning reasons the Licensor
                may form
                a new entity and the Licensee shall permit the assignment of the
                License
                Agreement to said entity providing that the Licensor continues to
                have
                control of the new entity.

            

    

    

    
      	
              12

            	
              GENERAL

            

    

    
      	
              12.1

            	
              The
                laws of the State of Florida shall govern the License
                Agreement.

            

    

    
      	
              12.2

            	
              The
                License Agreement represents the entire agreement between the parties
                and
                supersedes all prior negotiations, representations, or agreements,
                either
                written or oral.

            

    

    
      	
              12.3

            	
              Time
                is of the essence.

            

    

    
      	
              12.4

            	
              Nothing
                in this License Agreement will be construed to make the parties partners
                or joint ventures or to permit the Licensee to bind the Licensor
                to any
                agreement or act on the Licensor's behalf in any respect, or to permit
                the
                Licensor to bind the Licensee to any agreement or act on the Licensee's
                behalf in any respect.

            

    

    
      	
              12.5

            	
              No
                waiver or modification of any of the terms of this License Agreement
                shall
                be valid unless in writing, signed by both parties. Failure by either
                party to enforce any rights under this License Agreement will not
                be
                construed as a waiver of such rights, and a waiver by either party
                of a
                default in one or more instances will not be construed as a continuing
                waiver or as a waiver in other
                instances.

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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              12.6

            	
              All
                notices and reports required to be provided under this License Agreement
                will be delivered in person or by registered mail to the other party
                at
                the address stated on Page 1 of this License Agreement, or to such
                other
                address as either party designates in writing from time to
                time.

            

    

    
      	
              12.7

            	
              If
                any term or provision of this License Agreement is for any reason
                held
                invalid, such invalidity will not affect any other term or provision,
                and
                this License Agreement will be interpreted as if such term or provision
                had never been contained in this License
                Agreement.

            

    

    
      	
              12.8

            	
              The
                article, paragraph, and section headings in this License Agreement
                are for
                reference only and will have no substantive
                effect.

            

    

    

    IN
      WITNESS WHEREOF
      the
      parties have executed this License Amendment effective the date first set out
      above:

     

    
      	
              

            	
              

            
	
              RICHARD
                SHERGOLD

            	
              PAUL
                A RUPPANNER

            
	
              President

            	
              President
                & CEO 

            
	 	 
	
              Smart
                Kids International Holdings, Inc

            	
              Smart
                Kids Group Inc

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

        
          

        

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    APPENDIX

    

    Schedule
      "A" - Character Comparisons 

     

    Schedule
      "B" - Copyrights Schedule 

     

    Schedule
      "C" – Trademarks

     

    Schedule
      “D”- Domain names

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

        
          

        

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    SCHEDULE
      "A" - CHARACTER COMPARISONS 

    

    Be
      Alert
      Bert Comparison for:

    
      	
              ·

            	
              Otis
                Notice 

            

    

    
      	
              ·

            	
              Be
                Alert Bert 

            

    

    
      	
              ·

            	
              Freddie
                the Firefly 

            

    

    
      	
              ·

            	
              Be
                Aware Clare 

            

    

    
      	
              ·

            	
              Uncle
                Buzz 

            

    

    
      	
              ·

            	
              Betty
                Blue Daisy

            

    

    

    
      	
              As
                prepared by:

            	
              Deborah
                A Wilcox, Baker & Hostetler, 1900 East 9th

              Street,
                3200 National City Center, Cleveland,Ohio

              44114-3485,
                dated 1/27/95.

            
	
              Class:

            	
              Visual
                Arts; unpublished

            
	
              Status:

            	
              Registered

            
	
              Effective
                date of registration: 

            	
              February
                24,1995 (1995D224)

            
	
              Registration
                Number:

            	
              VAU319270

            
	
              Date
                of Creation: -

            	
              1994

            
	
              Author(s):

            	
              Thurston
                Video inc.

            
	
              Owner(s):

            	
              Shergold,
                Richard

            

    

    

    
      	S.	
              Copyright
                Office - Search Records Results

              Search
                Records Results

            

    

    

    Registered
      Works Database (Claimant Search)

    

    Search
      For: BE ALERT BERT PRODUCTIONS, INC

    Item
      1 of
      1 

    

    1.
      Registration Number: PA-709-496 

    Title:
      Bee [sic] people smart.

    Description:
      Videocassette ; 1/2 in.

    Claimant:
      Be Alert Bert Productions, Inc.

    Created:
      1993 

    

    Published:
      15Dec93 

    

    Registered:
      18Apr94

    

    Previous
      Related Version: Soft sculpture prev. reg. 1993, VA 

    267-182.

    Claim
      Limit: NEW MATTER: children's video tape, song; artwork on 

    tape
      sleeve; some animation.

    Miscellaneous:
      C.O. corres.

    Special
      Codes: 4/X

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

          
            

          

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    SCHEDULE
      "B" - COPYRIGHTS

    

    
      	
              BE
                ALERT BERT

            
	
              Copyright
                registration in Canada

            
	
              Class:

            	
              unpublished
                work of an Artistic nature

            
	
              Registration
                Number:

            	
              425958

            
	
              Registration
                Date:

            	
              July
                30, 1993

            
	
              Registered
                Owner

            	
              Richard
                Scott Alien Shergold

            
	 
	
              BE
                AWARE CLARE

            
	
              Unregistered
                copyright application in Canada on file

            
	
              Application
                number: 350.761

            
	
              Date:
                March 7. 1995

            
	 
	
              BE
                AWARE CLARE

            
	
              Copyright
                registration in the United States

            
	
              Class:

            	
              Visual
                Arts; unpublished

            
	
              Status:

            	
              Registered

            
	
              Registration
                Number:

            	
              VAu267181

            
	
              Registration
                Date:

            	
              September
                15,1993 (19930915)

            
	
              Date
                of Creation:

            	
              1993

            
	
              Author:

            	
              Shergold,
                Richard

            
	
              Owner.

            	
              Shergold,
                Richard

            
	 	 
	
              BE
                ALERT BERT

            
	
              Copyright
                registration in the United States

            
	
              Class:

            	
              Visual
                Arts; unpublished

            
	
              Status:

            	
              Registered

            
	
              Registration
                Number:

            	
              VAu267182

            
	
              Registration
                Date:

            	
              September
                15, 1993 (19930915)

            
	
              Date
                of Creation:

            	
              1993

            
	
              Author:

            	
              Shergold,
                Richard

            
	
              Owner

            	
              Shergold,
                Richard

            
	 	 
	
              HOW
                BE ALERT BERT GOT HIS NAME: or, BE ALERT BERT In a ticklish
                situation

            
	
              Copyright
                registration in the United States

            
	
              Class:

            	
              Textual
                Works; unpublished

            
	
              Status:

            	
              Registered

            
	
              Registration
                Number

            	
              TXu685739

            
	
              Registration
                Date:

            	
              February
                24,1995 (19950224)

            
	
              Date
                of Creation:

            	
              1994

            
	
              Author(s):

            	
              Lindsifame
                Productions; Thurston Video, Inc.

            
	
              Owner:

            	
              Shergold,
                Richard

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        

      

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              Page
                21 of 38

            

    

    
      
        
          

        

      

       

      SCHEDULE
        "C" - TRADEMARKS

    

    

    BE
      ALERT
      BERT

    Trade
      Mark Registration in the United States

    
      	
              Serial
                Number

            	
              74-507,136

            
	
              Pled:

            	
              March
                30, 1994

            
	
              Abandoned:
                . 

            	
              December
                13,1S96 - no statement of use filed

            

    

    Registered
      Owner at publication: Richard Shergold

    

    BE
      AWARE
      CLARE & Design

    Trade
      Mark Registration in the United States

    
      	
              Serial
                Number:

            	
              74-637,548

            
	
              Filed:

            	
              February
                23, 1995

            
	
              Published:

            	
              December
                24,1996

            
	
              Allowance
                Red:

            	
              March
                18,1997

            
	
              Status:

            	
              Intent
                to Use - Current

            
	 	
              Statement
                of Use or request for extension of time To file must be received
                by Patent
                and Trademark Office within six months of above mailing date of notice
                of
                allowance.

            

    

    

    Goods/Services:
      009- pre-recorded audio tapes and video tapes featuring a mixture of live
      action, animation and music directed to teaching safety awareness to children.
      Original Applicant Richard Shergold

    

    No
      recorded assignment documents were uncovered in a search of the U.S. Patent
      and
      Trademark Office, which Office indicates documents were recorded through
      December 6,1996, with the possible exception of a small number of records which
      may be held up by the assignment branch.

    

    BE
      AWARE
      CLARE

    Trade
      Mark registration in Canada Registration Number:  TMA464.715
      Filing Date:  August16,1993

    Registration
      Date: October 25,1996

    Wares/Services:
      Safety Videos, T-Shirts. Board games, stuffed toys and posters. Declaration
      of
      Use filed 24 September 1996 on wares. Registered Owner: Richard
      Shergold

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  22 of
                  38

              

            

    

    
      
        

      

    
      	
              1.

            	 
	
              Name:

            	
              BE
                ALERT BERT

            
	
              Registration
                Number:

            	
              425958

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Shergold,
                Richard

              Scott,
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard

              Scott,
                Allen

            
	
              Registration
                Date:

            	
              1993-07-30

            

    

    

    
      	
              2.

            	 
	
              Name:

            	
              I'm
                Lost - What to do when you get Lost

            
	
              Registration
                Number:

            	
              467506

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard 

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard 

              Scott
                Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              3.

            	 
	
              Name:

            	
              Bee
                People Smart

            
	
              Registration
                Number:

            	
              467505

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Berg,
                Randy Lee Keating, Frederick Michael 

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              4.

            	 
	
              Name:

            	
              Bee
                Thankful - A Special Episode

            
	
              Registration
                Number:

            	
              467510

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              5.

            	 
	
              Name:

            	
              BaBee
                Sitting - Babysitting Safety

            
	
              Registration
                Number:

            	
              467509

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  23 of
                  38

              

            

    

    
      
        

      

    
      	
              6.

            	 
	
              Name:

            	
              A
                Doggone Day - Animal Safety

            
	
              Registration
                Number:

            	
              467508

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              7.

            	 
	
              Name:

            	
              Watered
                Down - Bathtub/Shower Safety

            
	
              Registration
                Number:

            	
              467507

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              8.

            	 
	
              Name:

            	
              Fire,
                Fire - Fire Safety

            
	
              Registration
                Number:

            	
              467514

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              9.

            	 
	
              Name:

            	
              A
                Toy Bee - Putting Toys Away

            
	
              Registration
                Number:

            	
              467513

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  24 of
                  38

              

            

    

    
      
        

      

    
      	
              10.

            	 
	
              Name:

            	
              A
                Bee Thankful Day - The Pilot

            
	
              Registration
                Number:

            	
              467512

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Cook,
                Manetter Germaine

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              11.

            	 
	
              Name:

            	
              A
                Bee Stranger Day

            
	
              Registration
                Number:

            	
              467511

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-24

            

    

    

    
      	
              12.

            	 
	
              Name:

            	
              Don't
                Bee Afraid-Lights Out Safety

            
	
              Registration
                Number:

            	
              467535

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              13.

            	 
	
              Name:

            	
              Bee
                Healthy Day - Dr.'s eating, etc.

            
	
              Registration
                Number:

            	
              467534

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              14.

            	 
	
              Name:

            	
              Bee
                Degrees - Hot Weather Safety

            
	
              Registration
                Number:

            	
              467533

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  25 of
                  38

              

            

    

    
      
        

      

    
      	
              15.

            	 
	
              Name:

            	
              Owl
                Through the Night - Night Safety

            
	
              Registration
                Number:

            	
              467532

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              16.

            	 
	
              Name:

            	
              Hai
                Ya! - Self Defence

            
	
              Registration
                Number:

            	
              467531

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              17.

            	 
	
              Name:

            	
              That's
                Knife - Using Knives

            
	
              Registration
                Number:

            	
              467530

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              18.

            	 
	
              Name:

            	
              I've
                Got The Vapors - Toxic!

            
	
              Registration
                Number:

            	
              467529

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  26 of
                  38

              

            

    

    
      
        

      

    
      	
              19.

            	 
	
              Name:

            	
              A
                Bee Cycle Built For Two - Bike Safety

            
	
              Registration
                Number:

            	
              467528

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              20.

            	 
	
              Name:

            	
              A
                Bee Tempted Day - Peer Pressure

            
	
              Registration
                Number:

            	
              467527

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              21.

            	 
	
              Name:

            	
              An
                Electrical Buzz - Electrical Safety

            
	
              Registration
                Number:

            	
              467526

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              22.

            	 
	
              Name:

            	
              Scout
                Us Out - Camping Safety

            
	
              Registration
                Number:

            	
              467525

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              23.

            	 
	
              Name:

            	
              X
                Marks the Spot - Safety Signs

            
	
              Registration
                Number:

            	
              467524

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  27 of
                  38

              

            

    

    
      
        

      

    
      	
              24.

            	 
	
              Name:

            	
              Play
                it Safe - Play Ground Safety

            
	
              Registration
                Number:

            	
              467523

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              25.

            	 
	
              Name:

            	
              Safety
                Can Be Fun-Roller Blading, etc.

            
	
              Registration
                Number:

            	
              467522

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              26.

            	 
	
              Name:

            	
              A
                Bee Aware Day - Poison Safety

            
	
              Registration
                Number:

            	
              467516

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-02-25

            

    

    

    
      	
              27

            	 
	
              Name:

            	
              Bee
                Cool Day - Cold Weather Safety

            
	
              Registration
                Number:

            	
              467538

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  28 of
                  38

              

            

    

    
      
        

      

    
      	
              28.

            	 
	
              Name:

            	
              Listen
                Up - Not Listening to your Parents

            
	
              Registration
                Number:

            	
              467537

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              29.

            	 
	
              Name:

            	
              Beefoot
                in the Park-Footwear Safety

            
	
              Registration
                Number:

            	
              467536

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-03-04

            

    

    

    
      	
              30.

            	 
	
              Name:

            	
              The
                Adventures of Be Alert Bert & Be Aware Clare - Episodes

              Numbered
                1 to 26

            
	
              Registration
                Number:

            	
              469204

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Benson,
                David Allan Meyers, Kelly Bruce

              Rhode,
                Terry Curtis Shergold, Richard

              Scott
                Allen

            
	
              Owner:

            	
              Shergold,
                Richard Scott, Allen

            
	
              Registration
                Date:

            	
              1998-05-01

            

    

    

    
      	
              31.

            	 
	
              Name:

            	
              The
                Healing Hand

            
	
              Registration
                Number:

            	
              495035

            
	
              Type:

            	
              Copyright

            
	
              Author:

            	
              Peppers,
                Vincent Shergold, Richard

            
	
              Owner:

            	
              Peppers,
                Vincent Shergold, Richard

            
	
              Registration
                Date:

            	
              2001-11-30

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  29 of
                  38

              

            

    

    
      
        

      

    Be
      Alert
      Bert’s Safety song list from the TV series: these songs are on three
      cds.

    

    The
      Be
      Alert Bert Song Titles

    

    The
      Be
      Alert Bert Theme Song

    

    
      	
              Episode
                1

            	
              The
                Shiver Song & The Turning Blue Blues

            
	
              Episode
                2

            	
              Be
                People Smart

            
	
              Episode
                3

            	
              Betty's
                Lament

            
	
              Episode
                4

            	
              The
                Bathroom Scare

            
	
              Episode
                5

            	
              I
                Can Dance

            
	
              Episode
                6

            	
              Fire
                Fire (An old Theme from 1st Series)

            
	
              Episode
                7

            	
              Poison!

            
	
              Episode
                8

            	
              Wear
                The Gear

            
	
              Episode
                9

            	
              Plat
                It Safe

            
	
              Episode
                10

            	
              X-Flies
                Theme Song & The Signs Are Out There

            
	
              Episode
                11

            	
              Babee
                Brother

            
	
              Episode
                12

            	
              The
                Camping Song

            
	
              Episode
                13

            	
              Naming
                The Dog

            
	
              Episode
                14

            	
              Be
                Alert Bert Old Theme

            
	
              Episode
                15

            	
              E-Electricity

            
	
              Episode
                16

            	
              Peer
                Pressure

            
	
              Episode
                17

            	
              Protection

            
	
              Episode
                18

            	
              What
                You Can't See

            
	
              Episode
                19

            	
              That's
                Knife

            
	
              Episode
                20

            	
              Bee
                Hive Kung-Fu Fighter

            
	
              Episode
                21

            	
              Owl
                On The Prowl 

            
	
              Episode
                22

            	
              I'm
                Proud of Bee-School

            
	
              Episode
                23

            	
              Health

            
	
              Episode
                24

            	
              When
                The Lights Go Out

            
	
              Episode
                25

            	
              Bee
                foot In the Park

            
	
              Episode
                26

            	
              Listen
                Up

            

    

    

    Be
      Alert
      Bert - CD - Ages 3-6 - Song Titles

    

    
      	
              ·

            	
              Protection

            

    

    
      	
              ·

            	
              Fire,
                Fire

            

    

    
      	
              ·

            	
              Look
                Both Ways

            

    

    
      	
              ·

            	
              Safety

            

    

    
      	
              ·

            	
              Password

            

    

    
      	
              ·

            	
              Bert
                them song

            

    

    

    Richard
      ShergoldÓ
      owner
      pre license agreement - 1995

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page 30
                  of
                  38

              

            

    

    
      

    

     

    
      	
              DOMAINS
                AND ASSOCIATED SERVICES 

              Services

            	
              Domain

              Lock ? 

            	
              Status

            	
              Expires

            
	
              fullmotionfitnesstv.com 

            	
              On 

            	
              ACTIVE 

            	
              11/14/2010

            
	
              smartkidscommunity.com 

            	
              On 

            	
              ACTIVE 

            	
              11/14/2010

            
	
              smartkidsgloware.com 

            	
              On 

            	
              ACTIVE 

            	
              11/14/2010

            
	
              smartkidskungfuforkids.com 

            	
              On 

            	
              ACTIVE 

            	
              11/14/2010

            
	
              smartkidstravel.com 

            	
              On 

            	
              ACTIVE 

            	
              11/14/2010

            
	
              bealertbert.com 

            	
              On 

            	
              ACTIVE 

            	
              04/11/2010

            
	
              mysmartkids.com 

            	
              On 

            	
              ACTIVE 

            	
              07/18/2010

            
	
              shaolinkungfuacademy.com 

            	
              On 

            	
              ACTIVE 

            	
              09/18/2010

            
	
              genuinelicensing.com 

            	
              On 

            	
              ACTIVE 

            	
              12/22/2006

            
	
              genuinepublishing.com 

            	
              On 

            	
              ACTIVE 

            	
              07/11/2010

            
	
              smartkidsgroupinc.com 

            	
              On 

            	
              ACTIVE 

            	
              08/21/2010

            
	
              mysmartkidssoftware.com 

            	
              On 

            	
              ACTIVE 

            	
              06/09/2010

            
	
              mysmartkidsproducts.com 

            	
              On 

            	
              ACTIVE 

            	
              06/30/2010

            
	
              smartkidsware.com 

            	
              On 

            	
              ACTIVE 

            	
              01/28/2011

            
	
              smartkidsgeopager.com 

            	
              On 

            	
              ACTIVE 

            	
              05/05/2010

            
	
              smartkidsnews.com 

            	
              On 

            	
              ACTIVE 

            	
              05/05/2010

            
	
              smartkids3dfitnesstrainer.com 

            	
              On 

            	
              ACTIVE 

            	
              08/23/2010

            
	
              bertsbeehivestores.com 

            	
              On 

            	
              ACTIVE 

            	
              08/23/2010

            
	
              bertsbeehivesandstores.com 

            	
              On 

            	
              ACTIVE 

            	
              02/02/2010

            
	
              smartkidstv.com 

            	
              On 

            	
              ACTIVE 

            	
              02/02/2010

            
	
              bertsbeehive.com 

            	
              On 

            	
              ACTIVE 

            	
              08/09/2010

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  31 of
                  38

              

            

    

    
      
        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  32 of
                  38

              

            

    

    
      
        

      

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page 33
                  of
                  38

              

            

    

    
      
        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page 34
                  of
                  38

              

            

    

    
      
        

      

    

    

    

     

    Songs
      from Richards Full Motion Fitness TV series. 

    Tai
      Chi
      Songs

    1
      Temple
      Mountain

    2
      Yesterday’s Wind 11

    3
      Pachelbel Canon 11

    4
      Black
      Lotus 11

    5
      Moonlight Sonate

    6
      Temple
      Battle

    7
      Yesterday’s Westwind

    8
      Pachelbel Canon

    9
      Black
      Lotus

    10
      Going
      Home

    

    Richard
      Shergold also has 31 shows currently running all threw Canada and in Australia.
      As well has developed a fitness program called the 3Dfitness Trainer, which
      will
      also be intergraded into MySmartKids web site.

    

    

    Richard
      ShergoldÓ

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page
                  35 of
                  38

              

            

    

    
      
        

      

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page 36
                  of
                  38

              

            

    

    
      
        

      

    Richard
      ShergoldÓ

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page 37
                  of
                  38

              

            

    

    
      
        

      

       

    

    

     

    Richard
      ShergoldÓ

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        

      

    

    

    Creating
      Our Future ...
      Today

    

    
      	
              LICENSE
                AGREEMENT

            	
              
                Page 38
                  of
                  38Smart
      Kids Group Inc.

    

    Employment
      Agreement

    

    Employment
      Agreement made effective as of the date of signing, by and between Smart Kids
      Group Inc. a Florida corporation, with principal offices in Ft Lauderdale,
      Florida, USA ("Company"), and Richard Shergold, Genuine Publishing, residing
      in
      Edmonton, Alberta, Canada ("Employee").

     

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

    

    ARTICLE
      1: EMPLOYMENT TERMS

     

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

     

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

    

    
      	 	
              A.

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

            

    

    

    
      	 	
              B.

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

            

    

    

    
      	 	
              C.

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

            

    

    
      
        Employee
          Initials __RS___

        Company
          Initials _PAR____

        
        

      

      
        1
          of
          10

        
          

        

      

      
        
        

      

    

    Section
      1.3. Employment Compensation.

    

    
      	 	
              A.

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

            

    

    

    
      	 	
              B.

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

            

    

    

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

    

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

    

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

    

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

    

    
      	 	
              A.

            	
              “The
                Employment Term”
                shall terminate:

            

    

    
      	 	
              1.

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

            

    

    
      	 	
              2.

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

            

    

    
      
        Employee
          Initials __RS___

        Company
          Initials _PAR____

        
        

      

      
        2
          of
          10

        
          

        

      

      
        
        

      

    

    
      	 	
              3.

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

            

    

    

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

            

    

    

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

            

    

    
      	 	
              1.

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

            

    

    
      	 	
              2.

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

            

    

    
      	 	
              3.

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

            

    

    
      	 	
              4.

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

            

    

    
      	 	
              5.

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

            

    

    
      	 	
              6.

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

            

    

    

    
      	 	
              a)

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

            

    

    
      
        Employee
          Initials __RS___

        Company
          Initials _PAR____

        
        

      

      
        3
          of
          10

        
          

        

      

      
        
        

      

    

    
      	 	
              b)

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

            

    

    

    
      	 	
              c)

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

            

    

    

    
      	 	
              D.

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

            

    

    

    
      	 	
              E.

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

            

    

    

    ARTICLE
      2: GENERAL PROVISIONS

     

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

    

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

    

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

    
      
        Employee
          Initials __RS___

        Company
          Initials _PAR____

        
        

      

      
        4
          of
          10

        
          

        

      

      
        
        

      

    

    
      	 	
              A.

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

            

    

    

    
      	 	
              B.

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

            

    

    

    
      	 	
              C.

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

            

    

    
      
        Employee
          Initials __RS___

        Company
          Initials _PAR____

        
        

      

      
        5
          of
          10

        
          

        

      

      
        
        

      

    

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

    

    
      	 	
              A.

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

            

    

    

    
      	 	
              B.

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

            

    

    

    
      	 	
              C.

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

            

    

    
      
        Employee
          Initials __RS___

        Company
          Initials _PAR____

        
        

      

      
        6
          of
          10

        
          

        

      

      
        
        

      

    

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

    

    
      	 	
              A.

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

            

    

    

    
      	 	
              B.

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

            

    

    

    
      	 	
              C.

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

            

    

     

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

    
      
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          Initials __RS___

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

    

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

    

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

    

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

    

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

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

    

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

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

    

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

    

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

     

    Section
      2.17.
      Additional
      Defined Terms:
      

    

    
      	 	
              A.

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

            

    

    
      	 	
              B.

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

            

    

    

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

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

    

    Accepted
      and Agreed to:

    

    
      	
              Employee
                Signature: 

            	
              

            
	 	 
	
              Employee
                Name: 

            	
              Richard
                Shergold

            
	 	 
	
              Company
                Officer Signature: 

            	
              

            
	
              Company
                Officer Name: 

            	
              Paul
                A. Ruppanner

            

    

    
      
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