RUSS BERRIE & CO INC
EX-10.77
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<DESCRIPTION>EX-10.77
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.77</font></b></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July&nbsp;2, 2003</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jack Toolan<br>
  c/o Russ Berrie and Company, Inc.<br>
  111 Bauer Drive<br>
  Oakland, NJ 07436</font></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Jack:</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As you know, the Board of Directors of the Company has authorized the
exploration of a possible sale of the Company, although no decision to effect a
sale has been made and there can be no assurance that it will occur or as to
the timing thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board of Directors believes that your continued service as an
executive and effective participation in the exploration of a possible sale is
important to the Company.&#160; Accordingly,
the Board of Directors has determined that if an unaffiliated purchaser
acquires substantially all of the Company&#146;s outstanding stock or assets through
a negotiated transaction on or before December&nbsp;31, 2003, and you remain
employed by the Company through the consummation of that transaction, you will
be awarded a special bonus of Two Hundred and Fifty Thousand Dollars
($250,000).&#160; (If for any reason you are
not employed by the Company when the sale is consummated, you will not be
entitled to any payment under this letter.)</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The bonus contemplated above is in addition to any other compensation
to which you may be entitled from the Company.&#160;
Nothing in this letter alters any of the terms of your employment with the
Company or creates any obligation on the part of the Company to retain you as
an employee.</font></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Angelica Berrie</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Angelica Berrie<br>
  Chief Executive Officer</font></p>
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