Document:

Exhibit 10.1

 

November 18, 2019

 

John L. Kimble

Hermosa Beach, CA 90254

kimble@alum.mit.edu

626.233.7817

 

Dear John,

 

On behalf of JAKKS Pacific, Inc., the “Company”
I am pleased to offer you the position of Executive Vice President, Chief Financial Officer reporting to Stephen Berman –
Chief Executive Officer. Should you accept this offer of employment, your first day of employment is anticipated to be on or about
December 6, 2019 (your actual first day of employment is referred to as the “start date”).

 

This letter outlines the terms of your employment
with the Company and your compensation and benefits, as set forth below:

 

		·	Annualized Base Salary

 

		o	$500,000.00 per year, payable semi-monthly and less applicable tax withholding.

 

		·	Executive Incentive Plan

 

		o	You are eligible to participate in JAKKS’ annual bonus program as follows:

 

(a) For 2020 your bonus
will be capped at a multiple of 1.25 times your base salary and shall be earned as follows:

 

(i) 25% of base salary
if EBITDA is $25M-$30M;

(ii) 50% of base salary
if EBITDA is $30M-$35M;

(iii) 100% of base
salary if EBITDA is $35M-$45M; and

(iv) 125% of base
salary if EBITDA is at or above $45M.

 

(b) Calculations of EBITDA
shall be after bonus accruals.

 

(c) For 2021 the bonus will be [capped
at a multiple of 1.25 times your base salary and will be] established by the Board’s compensation committee during the first
quarter of 2021 and will be designed to reflect the Company’s growth from 2019 and 2020. 

 

(d) Such other additional
bonus, if any, which is discretionary and to be determined by the compensation committee.

 

		·	Car Allowance

 

		o	A car allowance of $1,000.00 per month, less applicable tax withholding, payable semi-monthly,
will be provided to you in lieu of mileage reimbursement.

 

  

 

    

     

    

 

		·	Restricted Stock Awards

 

		o	The Company will grant the Executive the Restricted Stock Units pursuant to the Company’s
2002 Stock Award and Incentive Plan. Each Restricted Stock Unit is the equivalent of one share of the Company’s common stock,
par value $.0.01 per share (each a “Share”).

 

(a)   
$250,000 of Restricted Stock Units, based upon the closing share price on the Effective Date (as defined below), will be
granted on the date hereof as a one-time signing bonus which shall vest on the twelve (12) month anniversary of the date thereof.

 

(b)   
Executive will receive annual grants of Restricted Stock Units. $250,000 of Restricted Stock Units will be granted on the
effective date of the Employment Agreement (“Effective Date”) and $500,000 of Restricted Stock Units will be granted
on each anniversary thereof during the term of employment.

 

(c)  
The number of Shares in each annual grant of Restricted Stock Units will be determined by the closing Share price on the
last trading day prior to the Effective Date and on each anniversary of such date during the term of employment.

 

(d) 
 60% ($150,000 for the first year and $300,000 thereafter) of each annual grant of Restricted Stock Units will be subject
to three year “cliff vesting” (i.e. vesting is based upon performance at the close of the three year performance period),
with vesting of each annual grant of Restricted Stock Units determined by the following performance measures:

 

(i) 
Total shareholder return as compared to the Russell 2000 Index (weighted 50%),

(ii) 
Net revenue growth as compared to the Company’s peer group (weighted 25%), and

 (iii) EBITDA growth as compared to the Company’s peer group (weighted 25%).

 

(e)  
40% ($100,000 for the first year and $200,000 thereafter) of each annual grant of Restricted Stock Units will vest in 3
equal annual installments commencing on the first anniversary of the Effective Date and on the second and third anniversaries thereafter.

 

Vesting of the Restricted Stock Units is subject
to the Executive’s continued employment.

 

		·	Change of Control

 

In the event of a change of control (“COC”)
of the Company (as defined for the Company’s other executives), if within twelve (12) months following a Change of Control
Executive’s employment is terminated without Cause or by Executive for Good Reason, Executive will be entitled to receive
an amount equal to Executive’s base monthly salary in effect on the termination date multiplied by twenty-four (24),

 

		·	General Benefits

 

		o	You will be eligible to participate in Company benefit programs as available or that become
available to other similarly situated associates of the Company, subject to the generally applicable terms and conditions of each
program. The continuation or termination of each program will be at the discretion of the Company. Monthly premiums for Medical,
Dental, Vision. Employee Assistance and Long Term Disability are 100% paid by JAKKS for you and your eligible dependents. Benefit
details are as follows:

 

		§	Blue Shield Medical PPO or HMO – Eligible to participate the first of the month upon completing
30 days of employment

		§	Aetna Dental PPO or DMO – Eligible to participate the first of the month upon completing
30 days of employment

 

    

     

    

 

		§	VSP Vision – Eligible to participate the first of the month upon completing 30 days of
employment

		§	Aetna Life Insurance - Eligible to participate the first of the month upon completing 30 days
of employment

		§	Discovery Flexible Spending Medical and Dependent Care Account – Eligible to participate
the first of the month upon completing 30 days of employment

		§	Lincoln Long Term Disability – Eligible to participate the first of the month upon completing
30 days of employment

		§	Lincoln Employee Assistance Program – Eligible to participate the first of the month upon
completing 30 days of employment

 

		·	Executive Benefits Program

 

		o	Exec-U-Care Program

		§	Reimbursement for medical services not otherwise covered, subject to the continuation of that
program in the sole discretion of the Company.

 

		o	Vacation

		§	4 weeks of vacation accrual per year, subject to an accrual cap

		§	Personal and Sick Days

 

		·	401 (k)

 

You are eligible to join the JAKKS Pacific, Inc.
401(k) plan the first of the month following 90 days of employment. You may contribute a pre-tax salary reduction between 1% and
50%. For every dollar you contribute to the plan, JAKKS will match 100% up to 5% of your eligible compensation. The matching is
100% vested immediately. Notwithstanding the foregoing, the Company retains discretion to modify the foregoing benefits at any
time.

 

		·	D&O Insurance

 

As per the terms of the Company’s policies,
you will be eligible for coverage under the Company’s D&O insurance plans (currently providing an aggregate of $60M of
coverage) similar to all other executive level employees.

 

This formal notification of our offer of employment
is subject to the terms set forth in the JAKKS Employment Application and is contingent upon satisfactory background verification,
receipt of an original application, a final review of references, and the approval of the Compensation Committee of the Board of
Directors.

 

For purposes of federal immigration law, you will
be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States.
Such documentation must be provided to us within 3 business days of your date of hire, or our employment relationship with you
may be terminated.

 

Please be aware that your
employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign
at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at
any time, with or without cause, and with or without notice. We request that, in the event of resignation, you give the Company
at least two weeks’ notice.

 

    

     

    

 

You agree that, during the term of your
employment with the Company, you will devote substantially all of your professional time to your responsibilities at JAKKS,
and you will not engage in any other employment, occupation, consulting or other business activity directly related to the
business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in
any other activities that conflict with your obligations to the Company.

 

As a Company Executive, you will be expected to
abide by company rules and standards as presented in our Employee Handbook and our World Wide Code of Business Conduct and Ethics.
As a condition of your employment, you will also be required to sign and comply with a Creative Efforts, Confidential Information
Invention Assignment Agreement which requires, among other provisions, (i) the assignment of patent, copyright and other intellectual
property rights to any invention made during your employment at the Company, and (ii) non-disclosure of proprietary information.

 

To indicate your acceptance of the Company's offer
of employment as stated above, please sign and date this letter in the space provided below. A duplicate original is enclosed for
your records. This letter sets forth the terms of your employment with the Company and supersedes any prior representations or
agreements, whether written or oral. This letter, including, but not limited to, its at-will employment provision, may not be modified
or amended except by a written agreement signed by JAKKS’ Chief Executive Officer and you.

 

John, I look forward to working with you and having
you as a member of the team!

 

Sincerely,

 

Elsa Morgan

Sr. Vice President of Human Resources

JAKKS
Pacific, Inc.

 

    

     

    

 

	Agreed
    and accepted:	 
	 	 
	 	 
	Signature	 
	 	 
	 	 
	Printed
    Name	 
	 	 
	 	 
	Received
    Offer Date	 
	 	 
	 	 
	Confirmed
    Start DateExhibit 10.2

 

AMENDMENT NO. 4 TO THE SECOND AMENDED
AND RESTATED

 EMPLOYMENT AGREEMENT

 

THIS AMENDMENT NO.
4 TO THE SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Amendment”) is entered into as of November
__, 2019 (the Effective Date”), by and between Stephen G. Berman (“Berman” or “Executive”)
and JAKKS Pacific, Inc., a Delaware Corporation (the “Company”). The Company and Executive are sometimes referred
to herein, each a “Party” and, collectively, the “Parties.”

 

W I T N E S S E T H:

 

WHEREAS, Executive
is currently employed by the Company pursuant to that certain Second Amended and Restated Employment Agreement, dated November
11, 2010 (the “2010 Amended and Restated Employment Agreement”), between Executive and the Company, as modified
by the October 20, 2011 letter amendment (the “2011 Amendment”), and as amended by Amendment Number One, dated
September 12, 2012 (the “2012 Amendment”), Amendment Number Two, dated June 7, 2016 (the “2016 Amendment”),
and Amendment Number Three, dated August 9, 2019 (the “2019 Amendment”) (the 2010 Amended and Restated Employment
Agreement, together with (and as amended by) the 2011 Amendment, the 2012 Amendment, the 2016 Amendment, and the 2019 Amendment,
the “Amended Employment Agreement”); and

 

WHEREAS, the
Parties desire to further amend the terms of the Amended Employment Agreement on the terms and subject to the conditions set forth
in this Amendment (the Amended Employment Agreement, as amended by this Amendment, referred to as the “Employment Agreement”).

 

NOW THEREFORE,
in consideration of the premises and the mutual covenants and obligations contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby, pursuant to Section
21 of the 2010 Amended and Restated Employment Agreement and subject to the terms and conditions set forth herein, agree as follows:

 

1.                 
Definitions. All references in the Amended Employment Agreement to “this Agreement” shall be deemed
to refer to the Employment Agreement (including as amended by this Amendment). Capitalized terms not defined herein shall have
the meanings set forth for such terms in the Amended Employment Agreement.

 

2.                 
Amendments. The Parties hereby agree that, effective upon the Effective Date, the Amended Employment Agreement
shall be deemed amended as follows:

 

(a)              
Section 2 of the Amended Employment Agreement is amended by deleting the current provision in its entirety and inserting,
in lieu thereof, the following:

 

“2. Term. The term of this Agreement
shall commence as of the date hereof and the term of this Agreement and Executive’s employment hereunder shall end on December
31, 2021, subject to earlier termination upon the terms and conditions provided elsewhere herein (the “Term”). As used
herein, “Termination Date” shall mean the last day of the Term.”

 

    

     

    

 

(b)              
The Amended Employment Agreement is further amended by adding a new Section 3(d)(vii), to provide as follows:

 

vii. 2021
Performance Bonus Opportunity. For the fiscal year commencing on January 1, 2021, Executive shall be eligible to receive a
performance-based bonus award in a range between Twenty-Five percent (25%) and Three Hundred percent (300%) of the Base Salary,
based upon the level of EBITDA (defined below) achieved by the Company for such fiscal year prior to deduction of bonus expenses
and one-time non-recurring costs for initiatives approved by the Board (each an “EBITDA Target Amount”), as
determined by the Compensation Committee, and subject to the terms and conditions set forth herein (the “2021 Performance
Bonus”).

 

For fiscal
year 2021, if the Compensation Committee determines that the Company’s EBITDA (as defined in the First Lien Term Loan Facility
Credit Agreement, dated as of [_____ ___,] 2019, by and among Cortland Capital Market
Services LLC, the Financial Institutions party thereto, the Company, Disguise, Inc., JAKKS Sales LLC, Maui, Inc., Moose Mountain
Marketing, Inc., and Kids Only, Inc.) for fiscal year 2021 prior to deduction of bonus expenses and one-time non-recurring costs
for initiatives approved by the Board:

 

A. is less
than $30,000,000.00, no 2021 Performance Bonus shall be paid;

 

B. equals
$30,000,000.00, the 2021 Performance Bonus shall be in an amount equal to Twenty-Five Percent (25%) of the Base Salary for such
fiscal year; 

 

C. equals
$40,000,000.00, the 2021 Performance Bonus shall be in an amount equal to One Hundred Percent (100%) of the Base Salary for such
fiscal year; 

 

D. equals
$50,000,000.00, the 2021 Performance Bonus shall be in an amount equal to Two Hundred Percent (200%) of the Base Salary for such
fiscal year; OR

 

E. equals
or exceeds $60,000,000.00, the 2021 Performance Bonus shall be in an amount equal to Three Hundred Percent (300%) of the Base Salary
for such fiscal year.

 

To the extent
that EBITDA exceeds $30,000,000.00, but falls between two EBITDA Target Amounts set forth in Sections 3(d) vii. B. through E. above,
the amount of the 2021 Performance Bonus shall be determined by the Compensation Committee through linear interpolation. For the
avoidance of doubt, the calculation of any 2021 Performance Bonus shall be based upon only the highest EBITDA Target Amount achieved
by the Company for 2021, and shall not be a cumulative amount.

 

    2

     

    

 

ii. The Company
shall pay any 2021 Performance Bonus due Executive hereunder for the fiscal year commencing January 1, 2021 in cash, subject to
any required tax withholding, in 2022, not later than twenty-one (21) business days following the date on which the Auditors’
final report on the Company’s financial statements for fiscal year 2021 is issued and delivered to the Company and in any
event not later than April 30, 2022 (the “2021 Performance Bonus Award Date”). Except as otherwise provided
herein, Executive must be employed on the 2021 Performance Bonus Award Date to be eligible to receive the 2021 Performance Bonus,
or any portion thereof, for such fiscal year.

 

(c)              
The Amended Employment Agreement is further amended by deleting Section 3.b.ii. of the Amended Employment Agreement
in its entirety and inserting in lieu thereof the following:

 

(ii) Pursuant to and subject to
the terms of the Plan, the Company shall, to the extent shares are available for award under the Plan, issue to Executive on each
of the first business days of 2020 and 2021 (provided that Executive remains employed by the Company on such date(s), as applicable)
that number of shares of Restricted Stock that are equal to the lesser of (A) $3,500,000 in value (based on the closing price of
a share of the Company’s common stock on December 31, 2019 or December 31, 2020, as applicable), or (B) 1.5% of common shares
outstanding of the Company, which shall vest as set forth below in Section 3.b. (iii); provided, that no such award
under (A) or (B) above shall be made to Executive (and no cash substitute shall be provided to Executive) to the extent shares
are not available for grant under the Plan as of such date; and, provided, further, that the Company shall not be
obligated to amend the Plan and/or seek shareholder approval of any amendment to increase the amount of available shares under
the Plan.

 

(iii) Granted shares will vest
in four equal installments on each anniversary of grant.

 

3.                 
Ratification; Effect of Amendment. Except as expressly provided herein, this Amendment shall not, by implication
or otherwise, alter, modify, amend or in any way affect any of the obligations, covenants or rights contained in the Amended Employment
Agreement, all of which are ratified and confirmed in all respects by the Parties and shall continue in full force and effect.
Each reference to the Employment Agreement or Amended Employment Agreement hereafter made in any document, agreement, instrument,
notice or communication shall mean and be a reference to the Employment Agreement, as amended and modified hereby.

 

4.                 
Reimbursement of Legal Fees. The Company shall reimburse Executive for up to $10,000.00 of reasonable legal
fees and disbursements incurred by him to his counsel Choate, Hall & Stewart LLP in the negotiation of this Amendment, promptly
following presentation to the Company of documentation demonstrating such fees and disbursements.

 

    3

     

    

 

5.                 
Miscellaneous.

 

(a)              
This Amendment shall be governed and construed as to its validity, interpretation and effect by the laws of the State
of California, without reference to its conflicts of laws provisions.

 

(b)              
The Section captions herein are for convenience of reference only, do not constitute part of this Amendment and shall
not be deemed to limit or otherwise affect any of the provisions hereof.

 

(c)              
Each party hereto acknowledges that it has had an opportunity to consult with counsel and has participated in the
preparation of this Amendment. No party hereto is entitled to any presumption with respect to the interpretation of any provision
hereof or the resolution of any alleged ambiguity herein based on any claim that the other party hereto drafted or controlled the
drafting of this Amendment.

 

(d)              
This Amendment and the documents referenced herein, constitute the entire agreement among the Parties with respect
to this amendment of the Amended Employment Agreement and supersede all prior agreements, negotiations, drafts, and understandings
among the Parties with respect to such subject matter. This Amendment can only be changed or modified pursuant to a written instrument
referring explicitly hereto, and duly executed by each of the Parties.

 

(e)              
This Amendment may be executed and delivered (by facsimile or PDF signature) in any number of counterparts, and each
such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute one and the
same instrument.

 

    4

     

    

 

 

IN WITNESS WHEREOF,
the parties have caused this Amendment to be executed as of the day and year first written above.

 

	 	THE COMPANY:
	 	 	 
	 	JAKKS PACIFIC, INC.
	 	 	 
	 	By:	 
	 	Name:  	           
	 	Title:	 
	 	 	 
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	Stephen
    G. Berman

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