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                                                                   EXHIBIT 10.61

                                                                January 29, 2001
Mr. John T. Toolan
31 Van Holten Road
Basking Ridge, NJ  07920

Dear Jack:

     I am pleased to offer you the position of Executive Vice President -
Marketing and Sales of Russ Berrie and Company, Inc. effective February 5, 2001.

     Your employment with the Company will include the following:

     1.   COMPENSATION. Your base salary will be at an annual rate of $275,000.
          The Company has an annual bonus program. You will be eligible for the
          Executive Incentive Program ("EIP") bonus program beginning with the
          year 2001 (generally paid in February of the following year). The EIP
          is equal to 50% of your base salary. Generally, the full 50% bonus
          vests over a period of three years. However, this three-year vesting
          period can be waived and, in your case, will be. The bonus program is
          predicated on meeting the Company's minimum operating profit for the
          applicable year. The Company also has an annual performance bonus
          program. You will also be eligible to participate in that program
          beginning with the year 2001. Payment of this additional bonus is
          predicated on the Company exceeding budgeted operating profit by at
          least 10% during the relevant 12-month period. In order to receive the
          aforementioned bonus payments, you must be actively employed by the
          Company at the time of the payment(s).

     2.   GROUP HEALTH AND DISABILITY. After 90 days of continuous employment,
          you will be eligible to participate in:

          a.   Our contributory Group Health Plan.

          b.   Our non-contributory Life Insurance Plan in the amount one times
               your base salary.

          c.   Our non-contributory Long Term Disability.

     3.   DENTAL. After twelve months of employment, you will be eligible to
          participate in our contributory Dental Insurance Plan.

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     4.   STOCK OPTIONS. Stock options are granted to eligible employees at the
          beginning of each calendar year. You will be eligible to participate
          in the Company's Stock Option Plan based on its current provisions.
          You will receive stock options equal to 40% of your base salary. Under
          the provisions of the stock option plan, you must have 18 months of
          service prior to the first grant. However, this can be waived and, in
          your case, would be. You will receive your first grant as of the
          beginning of 2001.

          5. STOCK OPTIONS BASED ON OPERATING PROFIT. In addition to the stock
          options set forth above, you will be eligible to receive 10,000 stock
          options for each year in which the Company's domestic operating profit
          exceeds the prior year's domestic operating profit by at least 15%.
          You will be eligible to receive the first such options as of January
          1, 2002 if 2001 domestic operating profit exceeds 2000 domestic
          operating profit by at least 15%. Under the provisions of the
          Company's stock option plan, options will vest and be exercisable one
          year after the date of grant and remain exercisable for a period of 10
          years from the date of grant. In order to receive stock options, you
          must be an active employee of the Company on the date of the grant.

          6. RESTRICTED STOCK. Beginning with the year 2002 and for a total of 5
          consecutive years (i.e., 2002, 2003, 2004, 2005 and 2006), you will
          also be eligible to receive $100,000 worth of restricted stock of the
          Company per year for each of these 5 years. During the first year
          following the date of the grant of such restricted stock, the shares
          of such restricted stock remain wholly restricted. After the first
          year and for the following 3 years, such restricted stock shall vest,
          one-third each year until fully vested. By way of example, the
          $100,000 worth of restricted stock that is granted on the first
          business day of January 2002 would remain wholly restricted throughout
          2002. On January 1, 2003, one-third of such shares would vest. On
          January 1, 2004, another one-third of such shares would vest and on
          January 1, 2005, the remaining on-third of such shares would vest so
          that on January 1, 2005 all shares that had been granted on January 1,
          2002 would be fully vested. In order to receive these restricted stock
          awards, you must be an active employee of the Company on the date of
          the award.

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     7.   401(k). After six months of employment, you will be eligible to
          participate in the Company's 401(k) plan based on its current
          provisions. The Company's contribution to your 401(k) account fully
          vests over a period of four years of employment.

     8.   VACATION. You will be eligible for three weeks vacation per year.

     9.   HOLIDAY/SICK. You will be eligible for paid holidays and sick time in
          accordance with Company policy.

     10.  COMPANY CAR. You will receive an allowance of up to $28,000 to
          purchase an automobile in the Company's name. This allowance is paid
          every three years toward an automobile. Certain expenses, such as
          gasoline, repairs and insurance, will be provided by the Company.

     11.  SEVERANCE. In the event that you are terminated from the Company for
          reason other than cause or other than your own voluntary resignation,
          you will receive 6 months' severance pay at the rate that you are
          being paid on your termination date. This severance will be paid to
          you over a 6 month period on the Company's normal pay schedule. During
          this period, you will also be entitled to remain on the Company's
          heath and dental insurance plan (making the same payroll contribution
          as when you were an active employee). If you obtain gainful employment
          during this 6 month severance period (with employment being defined as
          full-time salaried work), your severance payments will be terminated,
          effective the date that you start your new employment.

     The Company reserves the right to change or modify these programs. In
addition, employment with the Company is considered "at-will" and does not
represent a specific guarantee.

     Jack, I want to welcome you to Russ Berrie and Company, Inc. and wish you
much success in your new position.

                                Very truly yours,

                                /s/ Russ Berrie
                                ----------------------
                                Russ Berrie
                                Chairman

ACCEPTED AND AGREED:

/s/ John T. Toolan
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                                                                   EXHIBIT 10.62

                                                                   March 1, 2001
Mr. Michael M. Saunders
39 S. Ridge Road
Pomona, NY  10970

Dear Michael:

     I am pleased to offer you the position of Vice President, Chief Information
Officer, for Russ Berrie and Company, Inc. effective March 26, 2001.

     Your employment with the Company will include the following:

     1.   COMPENSATION. Your base salary will be at an annual rate of $210,000.
          You will be eligible for the Vice President/Management Incentive
          Program ("VP/MIP") bonus program for the year 2001 (generally paid in
          February of the following year). For the year 2001, the VP/MIP bonus
          is equal to 20% of your base salary. The bonus program is predicated
          on meeting the Company's minimum operating profit for the year 2001.

     2.   GROUP HEALTH AND DISABILITY. After 90 days of continuous employment,
          you will be eligible to participate in:

          a.   Our contributory Group Health Plan.

          b.   Our non-contributory Life Insurance Plan in the amount one times
               your base salary.

          c.   Our non-contributory Long Term Disability.

     3.   DENTAL. After twelve months of employment, you will be eligible to
          participate in our contributory Dental Insurance Plan.

     4.   STOCK OPTIONS. Stock options are granted to eligible employees at the
          beginning of each calendar year. You will be eligible to participate
          in the Company's Stock Option Plan based on its current provisions.
          You will receive stock options equal to 40% of your base salary. Under
          the provisions of the stock option plan, you must have 18 months of
          service prior to the first grant. However, this can be waived and, in
          your case, would be. Therefore, you will receive your first grant at
          the beginning of 2002.

     5.   401(k) PLAN. After six months of employment, you will be eligible to
          participate in the Company's 401(k) plan based on its current
          provisions. The Company's contribution to your 401(k) account fully
          vests over a period of four years of employment.

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     6.   VACATION. In the year 2001 and thereafter, you will be eligible for
          three weeks vacation.

     7.   HOLIDAY/SICK. You will be eligible for paid holidays and sick time in
          accordance with Company policy.

     8.   COMPANY CAR. You will receive an allowance of up to $28,000 to
          purchase an automobile in the Company's name. This allowance is paid
          every three years toward an automobile. Certain expenses, such as
          gasoline, repairs and insurance, will be provided by the Company.

     7.   SEVERANCE. In the event that you are terminated from the Company for
          reason other than cause or other than your own voluntary resignation,
          you will receive 6 months' severance pay at the rate that you are
          being paid on your termination date. This severance will be paid to
          you over a 6 month period on the Company's normal pay schedule. During
          this period, you will also be entitled to remain on the Company's
          heath and dental insurance plan (making the same payroll contribution
          as when you were an active employee). If you obtain gainful employment
          during this 6 month severance period (with employment being defined as
          full-time salaried work), your severance payments will be terminated,
          effective the date that you start your new employment.

     The Company reserves the right to change or modify these programs. In
addition, employment with the Company is considered "at-will" and does not
represent a specific guarantee.

     Michael, I want to welcome you to Russ Berrie and Company, Inc. and wish
you much success in your new position.

                                Very truly yours,

                                /s/ Eva J. Goldenberg
                                Eva J. Goldenberg
                                Vice President - Human Resources

cc:  R. Berrie
     B. Sottile
     D. Fisher

ACCEPTED AND AGREED:
--------------------

/s/ Michael M. Saunders
-----------------------
(Michael M. Saunders)

March 08, 2001

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