New subject: deja vu all over again

16 Apr 2003


      Dear Candi Chatters,
It has come to my attention that Integrity Toys is still producing dolls 
under the Candi®
trademark. And they do so illegally.
Unfortunately, We regret to inform you that Integrity Toys and Hamilton Toys 
could not come to a favorable agreement.
Integrity Toys lost there Candi® license on January 16, 2003. (Termination 
letter enclosed).
We told Integrity Toys that they could break the news to their dealers and 
once they did we both would make joint statements. We have not heard from 
Integrity Toys for 3 months.
And they continue to produce Candi® dolls!
Hamilton Toys can no longer remain silent. For the safety of our clients. 
(And Integrity's).
Any dealer that sells a CANDI® DOLL, bought and produced after January 16, 
2003, by Integrity toys, does so illegally. Therefore, becoming an accomplice 
to a criminal act.
Integrity Toys assured us that they would not produce any dolls using the 
CANDI® or CANDI GIRL® REGISTERED TRADEMARKS after January 16th 2003.
Candi® Basics are being produced illegally, and without authorization from 
Hamilton Toys.
I can't believe they put it on their website!
Hamilton Toys is the sole owner of the CANDI® LICENSE. Anyone selling a FAKE 
CANDI® PRODUCT from Integrity Toys (Anything produced after January 16th 
2003) will be seen as an accomplice and will be included in a lawsuit against 
Integrity Toys.
We have a right and an obligation to protect our trademarks.
Sincerely,
Helena Hamilton
CEO Hamilton Toys
And the Creator of the
CANDI® DOLL
TERMINATION LETTER
October 16, 2002
Via:  Fax (410) 8853530 and
 Federal Express
Mr. Percy Neusum 
Integrity Toys Inc.
100 Chestnut Springs Road
Chesapeake City, Md 21915
Re: CANDI License
Dear Mr. Neusum:
In accordance with the TERMS of our AGREEMENT, Hamilton Toys, Inc. hereby is 
giving Integrity Toys, Inc. 
three (3) months advance written notice that the License granted to 
Integrity, for the CANDI® dolls and molds 
shall be canceled as of January 16, 2003. No new CANDI® doll lines are to be 
produced
beyond the "Weekender Gift Set" the 3 "Fashion Forward" designs, and the 
remaining
"Manhattan Moods" CANDI® doll lines. All on collection disk. Now in 
production in China.
We cannot continue to do business with a company (Integrity Toys) that so 
blatantly & illegally KNOCK-OFF
our doll product lines. While our molds are in their (Integrity Toys) 
possession. 
Then when confronted tells us, "We aren't admitting to anything. But we can 
work something out."  
Words cannot express my level of disappointment with your company.
I never dreamed your could be capable of such a fraud. 
Our products have been on the market for 13 years now. We know our work, and 
so do our customers. 
And you are deliberately trying to confuse the market place for your benefit.
You are on notice that after January 16, 2003, Integrity shall have no right 
to make any further use of the 
CANDI® trademark or to manufacture or sell dolls or doll bodies made from the 
CANDI® molds, including without 
limitation, both the "old CANDI® molds" and the "new CANDI® molds" referred 
to in the AGREEMENT.
Our attorneys will have to work out the rest of our differences.
You are also put on notice that this notice to cancel in no way limits or 
reduces the obligations of 
Integrity Toys, Inc. to Hamilton Toys regarding royalties payable or past 
due. As of this date we have not seen 
a quarterly report on the CANDI® license from Integrity Toys for 2002.
Sincerely Yours,
       Hamilton Toys, Inc.
By   
       Helena Lisandrello, Pres.

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