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From: Gaf Counsel gafcounsel@gibney.com
To: glittersky5
Subject: Unauthorized Use of Intellectual Property
Sent: Friday, August 10, 2007 3:45 PM
August10, 2007

BY E-MAIL AND FIRST CLASS MAIL:

Re: Unauthorized Use of Intellectual Property

Dear glittersky5:

This firm is counsel to HIT Entertainment PLC, Gullane Entertainment Inc. and Gullane (Thomas) Limited (collectively, "HIT"), the owners of the children's character Thomas the Tank Engine™.

It has come to the attention of HIT that you, as seller "glittersky5," listed unauthorized Thomas the Tank apparel. HIT does not produce such Thomas the Tank apparel and, therefore, this costume constitutes trademark infringement and other illegal violations of HIT’s intellectual property rights.

In order to avoid further legal proceedings against you, HIT demands the following:

Immediate cessation of the sale of unauthorized Thomas the Tank apparel;

Surrender of all unauthorized Thomas the Tank apparel in your possession to this firm (do not destroy or dispose of the merchandise in your possession); and

Provide us with the name and location of the source of the unauthorized Thomas the Tank apparel advertised on eBay.com.

Once you provide us with this information, we will inform you how HIT will be willing to settle this matter without resorting to other legal remedies. The merchandise should be sent immediately to:

Matthew W. Carlin
Gibney, Anthony & Flaherty, LLP
665 Fifth Avenue
New York, NY 10022

Please provide us with a written response to this letter by August 17, 2007. If we do not receive a response, we will be forced to take other measures to enforce the above demands.

Please contact the undersigned if you require additional information.

Sincerely,
Gibney, Anthony & Flaherty, LLP
By: ___________________________
Matthew W. Carlin

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