SEVEN TOWNS POLICY

REGARDING SIGNING OF CONFIDENTIALITY DISCLOSURE REQUESTED BY INVENTORS.

While it is the company policy to handle all submissions by inventors with the greatest degree of confidentiality and reveal information only on a need to know basis for the purposes of evaluation, it is not the company's policy to sign legal documents based on a confidential relationship.

The reason for our refusal to sign such documents is fundamentally that in our experience they are of little practical value.

In such a document we should have to exempt all ideas which have been or are being developed within the company, all ideas having been submitted by other inventors, all ideas which manufacturers bring to us for discussion, all ideas which are in the public domain, all ideas which are covered by patents or patent applications etc. In addition to the exemptions, there is a grey area of overlapping features between various ideas in the game and toy field which are difficult to define as they relate to each specific submission. For someone who is not professionally engaged in our industry these overlaps are difficult to appreciate and fully understand.

The reputation of the company has been built up over 35 years and it relies upon the trust that exists between our company, toy manufacturers throughout the world and a great number of independent inventors who work with us. Obviously any breach of trust by us in respect to anyone would have gravely damaging consequences to our reputation. Our integrity is the best guarantee we can offer to anyone wishing to submit their ideas and inventions to Seven Towns.

References are available on request.