Document:

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                                                                    EXHIBIT 4.1

                                 FORM OF WARRANT

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN
THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES
LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE SECURITIES.

                                   ETOYS INC.

                       WARRANT TO PURCHASE COMMON STOCK

Warrant No.:                                           Number of Shares:
            -----------------------                                      -------
Date of Issuance: June 12, 2000

eToys Inc., a Delaware corporation (the "COMPANY"), hereby certifies that,
for Ten United States Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
____________________, the registered holder hereof or its permitted assigns,
is entitled, subject to the terms set forth below, to purchase from the
Company upon surrender of this Warrant, at any time or times on or after the
date hereof, but not after 11:59 P.M. New York City Time on the Expiration
Date (as defined herein) __________________________________) [THE NUMBER OF
PREFERRED SHARES HELD BY THE HOLDER OF THIS WARRANT MULTIPLIED BY $3,000 THEN
DIVIDED BY THE AVERAGE OF THE CLOSING BID PRICES FOR THE 10 CONSECUTIVE TRADING
DAYS IMMEDIATELY PRECEDING THE CLOSING DATE (AS DEFINED IN THE SECURITIES
PURCHASE AGREEMENT)] fully paid nonassessable shares of Common Stock (as
defined herein) of the Company (the "WARRANT SHARES") at the purchase price
per share provided in Section 1(b) below; provided, however, that the Company
shall not effect the exercise of this Warrant and no holder of this Warrant
shall have the right to exercise this Warrant to the extent that after giving
effect to such exercise, such Person (together with such Person's affiliates)
would have acquired, through exercise of this warrant or otherwise,
beneficial ownership of a number of shares of Common Stock during the 60-day
period ending on and including the date this Warrant was exercised (the "60
DAY PERIOD"), that, when added to the number of shares of Common Stock
beneficially owned by such Person (together with such Person's affiliates) at
the beginning of the 60 Day Period, exceeds 9.99% of the number of shares of
Common Stock outstanding

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immediately after giving effect to such exercise.  For purposes of the
foregoing sentence, the aggregate number of shares of Common Stock
beneficially owned by such Person and its affiliates shall include the number
of shares of Common Stock issuable upon exercise of this Warrant with respect
to which the determination of such sentence is being made, but shall exclude
shares of Common Stock which would be issuable upon (i) exercise of the
remaining, unexercised portion of this Warrant beneficially owned by such
Person and its affiliates and (ii) exercise or conversion of the unexercised
or unconverted portion of any other securities of the Company beneficially
owned by such Person and its affiliates (including, without limitation, any
convertible notes or preferred stock) subject to a limitation on conversion
or exercise analogous to the limitation contained herein.  Except as set
forth in the preceding sentence, for purposes of this paragraph, beneficial
ownership shall be calculated in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended.  Upon the written request of any
holder, the Company shall promptly, but in no event later than two (2)
Business Days following the receipt of such notice, confirm in writing to any
such holder the number of shares of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined
after giving effect to conversions of Preferred Shares (as defined below) and
exercise of Warrants (as defined below) by such holder and its affiliates.

     Section 1.

             (a)   Securities Purchase Agreement.  This Warrant is one of the
Warrants (the "PREFERRED SHARE WARRANTS") issued pursuant to Section 1 of
that certain Securities Purchase Agreement dated as of June 12, 2000, among
the Company and the Persons referred to therein (the "SECURITIES PURCHASE
AGREEMENT").

             (b)   Definitions.  The following words and terms as used in
this Warrant shall have the following meanings:

                   (i)   "APPROVED STOCK PLAN" means any employee benefit
plan which has been approved by the Board of Directors of the Company,
pursuant to which the Company's securities may be issued to any employee,
officer or director for services provided to the Company.

                   (ii)  "BUSINESS DAY" means any day other than Saturday,
Sunday or other day on which commercial banks in the City of New York are
authorized or required by law to remain closed.

                   (iii) "CERTIFICATE OF DESIGNATIONS" means the Company's
Certificate of Designations, Preferences and Rights of the Series D
Convertible Preferred Stock.

                   (iv)  "CLOSING BID PRICE" means, for any security as of
any date, the last closing bid price for such security on the Principal
Market (as defined below) as reported by Bloomberg Financial Markets
("BLOOMBERG"), or if the Principal Market begins to operate on an

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extended hours basis, and does not designate the closing bid price, then the
last bid price at 4:00 p.m. New York City Time as reported by Bloomberg, or
if the foregoing do not apply, the last closing bid price of such security in
the over-the-counter market on the electronic bulletin board for such
security as reported by Bloomberg, or, if no closing bid price is reported
for such security by Bloomberg, the last closing trade price for such
security as reported by Bloomberg, or, if no last closing trade price is
reported for such security by Bloomberg, the average of the bid prices of any
market makers for such security as reported in the "pink sheets" by the
National Quotation Bureau, Inc.  If the Closing Bid Price cannot be
calculated for such security on such date on any of the foregoing bases, the
Closing Bid Price of such security on such date shall be the fair market
value as mutually determined by the Company and the holders of the Preferred
Share Warrants representing at least a majority of the shares of Common Stock
obtainable upon exercise of the Preferred Shares Warrants then outstanding.
If the Company and the holders of the Preferred Share Warrants are unable to
agree upon the fair market value of the Common Stock, then such dispute shall
be resolved pursuant to Section 2(a) of this Warrant with the term "Closing
Bid Price" being substituted for the term "Market Price."  All such
determinations to be appropriately adjusted for any stock dividend, stock
split or other similar transaction during such period.

                   (v)   "CLOSING SALE PRICE" means, for any security as of
any date, the last closing trade price for such security on the Principal
Market as reported by Bloomberg, or if the Principal Market begins to operate
on an extended hours basis, and does not designate the closing trade price,
then the last trade price at 4:00 p.m., New York City Time, as reported by
Bloomberg, or if the foregoing do not apply, the last closing trade price of
such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg, or, if no last closing trade
price is reported for such security by Bloomberg, the last closing ask price
of such security as reported by Bloomberg, or, if no last closing ask price
is reported for such security by Bloomberg, the average of the highest bid
price and the lowest ask price of any market makers for such security as
reported in the "pink sheets" by the National Quotation Bureau, Inc.  If the
Closing Sale Price cannot be calculated for such security on such date on any
of the foregoing bases, the Closing Sale Price of such security on such date
shall be the fair market value as mutually determined by the Company and the
holders of the Preferred Share Warrants representing at least a majority of
the  shares of Common Stock obtainable upon exercise of the Preferred Shares
Warrants then outstanding.  If the Company and the holders of Preferred Share
Warrants are unable to agree upon the fair market value of the Common Stock,
then such dispute shall be resolved pursuant to Section 2(a) below with the
term "Closing Sale Price" being substituted for the term "Market Price".  All
such determinations to be appropriately adjusted for any stock dividend,
stock split or other similar transaction during such period.

                   (vi)  "COMMON STOCK" means (i)the Company's common stock,
par value $0.0001 per share, and (ii)any capital stock into which such Common
Stock shall have been changed or any capital stock resulting from a
reclassification of such Common Stock.

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                   (vi)   "COMMON STOCK DEEMED OUTSTANDING" means, at any
given time, the number of shares of Common Stock actually outstanding at such
time, plus the number of shares of Common Stock deemed to be outstanding
pursuant to Sections 8(b)(i) and 8(b)(ii) hereof regardless of whether the
Options or Convertible Securities are actually exercisable at such time, but
excluding any shares of Common Stock owned or held by or for the account of
the Company or issuable upon conversion of the Preferred Shares or exercise
of the Warrants.

                   (vii)  "CONVERTIBLE SECURITIES" means any stock or
securities (other than Options) directly or indirectly convertible into or
exchangeable or exercisable for Common Stock.

                   (viii) "EXCLUDED SECURITIES" means (A) options to purchase
shares of Common Stock granted to consultants, provided (I) such options are
approved by the Board of Directors of the Company or an appropriately
designated committee of the Board of Directors, (II) the total number of
options granted to consultants during any 12-month period does not exceed 5%
of  the number of all options granted pursuant to all Approved Stock Plans
during the same period and (III) the exercise price of such options is not
less than the market price of the Common Stock on the date of issuance of
such options; (B) up to 250,000 shares of Common Stock to be issued as part
of the consideration for the acquisition of eParties, Inc., a Delaware
corporation, or certain of its assets; (C) the issuance of either shares of
Common Stock or warrants to purchase Common Stock at a purchase price or
exercise price, respectively, not less than the market price of the Common
Stock on the date of such issuance, in connection with any strategic
marketing, vendor, lease or similar arrangement (the primary purpose of which
is not to raise equity capital), provided that the number of shares of Common
Stock or shares subject to warrants which the Company may issue pursuant to
this subclause (C) during any calendar year shall not exceed 500,000 shares
of Common Stock (subject to adjustment for stock splits, stock dividends,
stock combinations and other similar transactions), provided that the Company
shall be permitted to carry forward any such shares not used pursuant to this
subclause (C) during the prior calendar year in subsequent calendar years;
and (D) the issuance of up to 2,000,000 shares of Common Stock (subject to
adjustment for stock splits, stock dividends, stock combinations and other
similar transactions) per calendar year by the Company as consideration for
mergers or consolidations or the acquisition of businesses, products,
licenses, or other assets of other Persons or entities, provided that the
Company shall be permitted to carry forward any such shares not used pursuant
to this subclause (D) during the prior calendar year in subsequent calendar
years.

                   (ix)   "EXPIRATION DATE" means the date three (3) years
from the date of this Warrant or, if such date does not fall on a Business
Day or on a day on which trading takes place on the principal exchange or
automated quotation system on which the Common Stock is traded, then the next
date Business Day.

                   (x)    "MARKET PRICE" means, with respect to any security
for any date of determination, that price which shall be computed as the
arithmetic average of the Closing Bid Prices for such security on each of the
ten (10) trading days immediately preceding such date of

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determination.  All such determinations to be appropriately adjusted for any
stock dividend, stock split or other similar transaction during the pricing
period.

                   (xi)    "OPTIONS" means any rights, warrants or options to
subscribe for or purchase Common Stock or Convertible Securities.

                   (xii)   "OTHER SECURITIES" means (i) those warrants of the
Company issued prior to, and outstanding on, the date of issuance of this
Warrant, (ii) the Preferred Shares and (iii)the shares of Common Stock issued
upon conversion of the Preferred Shares or exercise of the Preferred Share
Warrants.

                   (xiii)  "PERSON" means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency
thereof.

                   (xiv)   "PREFERRED SHARES" means the shares of the
Company's Series D Convertible Preferred Stock issued pursuant to the
Securities Purchase Agreement.

                   (xv)    "PRINCIPAL MARKET" means the Nasdaq National
Market or if the Common Stock is not traded on the Nasdaq National Market,
then the principal securities exchange or trading market for the Common Stock.

                   (xvi)   "REGISTRATION RIGHTS AGREEMENT" means that
registration rights agreement dated June 12, 2000 by and among the Company
and the Persons referred to therein.

                   (xvii)  "SECURITIES ACT" means the Securities Act of 1933,
as amended.

                   (xviii) "WARRANT" means this Warrant and all Warrants
issued in exchange, transfer or replacement thereof.

                   (xix)   "WARRANT EXERCISE PRICE" shall be equal to
$7.17375, subject to further adjustment as hereinafter provided.

                   (xx)    "WEIGHTED AVERAGE PRICE" means, for any security
as of any date, the dollar volume-weighted average price for such security on
the Principal Market as reported by Bloomberg through its "Volume at Price"
function or, if the foregoing does not apply, the dollar volume-weighted
average price of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg, or, if
no dollar volume-weighted average price is reported for such security by
Bloomberg, the average of the bid prices of each of the market makers for
such security as reported in the "pink sheets" by the National Quotation
Bureau, Inc.  If the Weighted Average Price cannot be calculated for such
security on such date on any of the foregoing bases, the Weighted Average
Price of such security on such date shall be the fair market value as
mutually determined by the Company and the holders of the

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Preferred Share Warrants representing at least a majority of the shares of
Common Stock obtainable upon exercise of the Preferred Share Warrants then
outstanding.  If the Company and the holders of the Preferred Share Warrants
are unable to agree upon the fair market value of the Common Stock, then such
dispute shall be resolved pursuant to Section 2(a) below with the term
"Weighted Average Price" being substituted for the term "Market Price."  All
such determinations to be appropriately adjusted for any stock dividend,
stock split or other similar transaction during such period.

     Section 2.   EXERCISE OF WARRANT.

            (a)   Subject to the terms and conditions hereof, this Warrant
may be exercised by the holder hereof then registered on the books of the
Company, in whole or in part, at any time on any Business Day on or after the
opening of business on the date hereof and prior to 11:59 P.M., New York City
Time, on the Expiration Date by (i)delivery of a written notice, in the form
of the subscription notice attached as EXHIBIT A hereto (the "EXERCISE
NOTICE"), of such holder's election to exercise this Warrant, which notice
shall specify the number of Warrant Shares to be purchased, (ii)(A) payment
to the Company of an amount equal to the Warrant Exercise Price multiplied by
the number of Warrant Shares as to which this Warrant is being exercised (the
"AGGREGATE EXERCISE PRICE") in cash or wire transfer of immediately available
funds or (B) by notifying the Company that this Warrant is being exercised
pursuant to a Cashless Exercise (as defined in Section 2(e)), and (iii)the
surrender to a common carrier for overnight delivery to the Company as soon
as practicable following such date, this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or
destruction); provided, that if such Warrant Shares are to be issued in any
name other than that of the registered holder of this Warrant, such issuance
shall be deemed a transfer and the provisions of Section 7 shall be
applicable.  In the event of any exercise of the rights represented by this
Warrant in compliance with this Section 2(a), the Company shall on the second
(2nd) Business Day (the "WARRANT SHARE DELIVERY DATE") following the date of
its receipt of the Exercise Notice, the Aggregate Exercise Price  (or notice
of Cashless Exercise) and this Warrant (or an indemnification undertaking
with respect to this Warrant in the case of its loss, theft or destruction)
(the "EXERCISE DELIVERY DOCUMENTS"), (A) provided the transfer agent is
participating in The Depository Trust Company ("DTC") Fast Automated
Securities Transfer Program and provided that the holder is eligible to
receive shares through DTC, credit such aggregate number of shares of Common
Stock to which the holder shall be entitled to the holder's or its designee's
balance account with DTC through its Deposit Withdrawal Agent Commission
system or (B) issue and deliver to the address as specified in the Exercise
Notice, a certificate, registered in the name of the holder or its designee,
for the number of shares of Common Stock to which the holder shall be
entitled.  Upon delivery of the Exercise Notice and Aggregate Exercise Price
referred to in clause (ii)(A) above or notification to the Company of a
Cashless Exercise referred to in Section 2(e), the holder of this Warrant
shall be deemed for all corporate purposes to have become the holder of
record of the Warrant Shares with respect to which this Warrant has been
exercised, irrespective of the date of delivery of this Warrant as required
by

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clause (iii) above or the certificates evidencing such Warrant Shares.  In
the case of a dispute as to the determination of the Warrant Exercise Price,
the Market Price of a security or the arithmetic calculation of the number of
Warrant Shares, the Company shall promptly issue to the holder the number of
shares of Common Stock that is not disputed and shall submit the disputed
determinations or arithmetic calculations to the holder via facsimile within
one (1) Business Day of receipt of the holder's subscription notice.  If the
holder and the Company are unable to agree upon the determination of the
Warrant Exercise Price, the Market Price or arithmetic calculation of the
number of Warrant Shares within one (1) Business Day of such disputed
determination or arithmetic calculation being submitted to the holder, then
the Company shall immediately submit via facsimile (i) the disputed
determination of the Warrant Exercise Price or the Market Price to an
independent, reputable investment banking firm or (ii) the disputed
arithmetic calculation of the number of Warrant Shares to its independent,
outside accountant.  The Company shall cause the investment banking firm or
the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the holder of the results no later
than two (2) Business Days from the time it receives the disputed
determinations or calculations.  Such investment banking firm's or
accountant's determination or calculation, as the case may be, shall be
deemed conclusive absent manifest error.

                   (b)   Unless the rights represented by this Warrant shall
have expired or shall have been fully exercised, the Company shall, as soon
as practicable and in no event later than five (5) Business Days after any
exercise (the "WARRANT DELIVERY DATE") and at its own expense, issue a new
Warrant identical in all respects to this Warrant exercised except it shall
represent rights to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant exercised, less the
number of Warrant Shares with respect to which such Warrant is exercised.

                   (c)   No fractional shares of Common Stock are to be
issued upon the exercise of this Warrant, but rather the number of shares of
Common Stock issued upon exercise of this Warrant shall be rounded up or down
to the nearest whole number.

                   (d)   If the Company shall fail for any reason or for no
reason to issue to the holder within five (5) Business Days of receipt of the
Exercise Delivery Documents, a certificate for the number of shares of Common
Stock to which the holder is entitled or to credit the holder's balance
account with DTC for such number of shares of Common Stock to which the
holder is entitled upon the holder's exercise of this Warrant or a new
Warrant for the number of shares of Common Stock to which such holder is
entitled pursuant to Section 2(b) hereof, the Company shall, in addition to
any other remedies under this Warrant or the Securities Purchase Agreement or
otherwise available to such holder, including any indemnification under
Section 8 of the Securities Purchase Agreement, pay as additional damages in
cash to such holder on each day after the Warrant Share Delivery Date such
exercise is not timely effected and/or each day after the Warrant Delivery
Date such Warrant is not delivered, as the case may be, in an amount equal to
0.5% of the product of (I) the sum of the number of shares of Common Stock
not issued to the holder on or prior to the Warrant Share Delivery Date and
to which such holder is entitled and,

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in the event the Company has failed to deliver a Warrant to the holder on or
prior to the Warrant Delivery Date, the number of shares of Common Stock
issuable upon exercise of the Warrant as of the Warrant Delivery Date and
(II) the Closing Bid Price of the Common Stock on the Warrant Share Delivery
Date, in the case of the failure to deliver Common Stock, or the Warrant
Delivery Date, in the case of failure to deliver a Warrant, as the case may
be.  The foregoing notwithstanding, the damages set forth in this Section
2(d) shall be stayed with respect to the number of shares of Common Stock
and, if applicable, the Warrant for which there is a good faith dispute being
resolved pursuant to, and within the time periods provided for in, Section
2(a), pending the resolution of such dispute.

                   (e)   If, despite the Company's obligations under the
Securities Purchase Agreement and the Registration Rights Agreement, the
Warrant Shares to be issued are not registered and available for resale
pursuant to a registration statement in accordance with the Registration
Rights Agreement, including during a Grace Period (as defined in the
Registration Rights Agreement), then notwithstanding anything contained
herein to the contrary, the holder of this Warrant may, at its election
exercised in its sole discretion, exercise this Warrant in whole or in part
and, in lieu of making the cash payment otherwise contemplated to be made to
the Company upon such exercise in payment of the Aggregate Exercise Price,
elect instead to receive upon such exercise the "Net Number" of shares of
Common Stock determined according to the following formula (a "CASHLESS
EXERCISE"):

     Net Number = (A x B) - (A x C)
                  -----------------
                          B
                For purposes of the foregoing formula:

                    A= the total number of shares with respect to which this
                    Warrant is then being exercised.

                    B= the Closing Sale Price of the Common Stock on the trading
                    day immediately preceding the date of the Exercise Notice.

                    C= the Warrant Exercise Price then in effect for the
                    applicable Warrant Shares at the time of such exercise.

                   (f)   ADJUSTMENT TO WARRANT EXERCISE PRICE -- MARKET PRICE
OF COMMON STOCK.  In addition to any other adjustment to the Warrant Exercise
Price provided for in this Warrant, in the event that the Market Price of the
Common Stock on the date which is one (1) year after the Warrant Date (the
"Reset Date") is less than the Warrant Exercise Price in effect immediately
prior to such Reset Date, then from and after such Reset Date the Warrant
Exercise Price shall be equal to the Market Price of the Common Stock on the
Reset Date, subject to further adjustment as provided herein.

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     Section 3.   COVENANTS AS TO COMMON STOCK.  The Company hereby covenants
and agrees as follows:

             (a)  This Warrant is, and any Warrants issued in substitution
for or replacement of this Warrant will upon issuance be, duly authorized and
validly issued.

             (b)  All Warrant Shares which may be issued upon the exercise of
the rights represented by this Warrant will, upon issuance, be validly
issued, fully paid and nonassessable and free from all taxes, liens and
charges created by or through the Company with respect to the issue thereof.

             (c)  During the period within which the rights represented by
this Warrant may be exercised, the Company will at all times have authorized
and reserved at least 100% of the number of shares of Common Stock needed to
provide for the exercise of the rights then represented by this Warrant and
the par value of said shares will at all times be less than or equal to the
applicable Warrant Exercise Price.

             (d)  The Company shall promptly secure the listing of the shares
of Common Stock issuable upon exercise of this Warrant upon each national
securities exchange or automated quotation system, if any, upon which shares
of Common Stock are then listed (subject to official notice of issuance upon
exercise of this Warrant) and shall maintain, so long as any other shares of
Common Stock shall be so listed, such listing of all shares of Common Stock
from time to time issuable upon the exercise of this Warrant; and the Company
shall so list on each national securities exchange or automated quotation
system, as the case may be, and shall maintain such listing of, any other
shares of capital stock of the Company issuable upon the exercise of this
Warrant if and so long as any shares of the same class shall be listed on
such national securities exchange or automated quotation system.

             (e)  The Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed by it hereunder.  Without limiting
the generality of the foregoing, the Company (i)will not increase the par
value of any shares of Common Stock receivable upon the exercise of this
Warrant above the Warrant Exercise Price then in effect, and (ii)will take
all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable shares of Common
Stock upon the exercise of this Warrant.

             (f)  This Warrant will be binding upon any entity succeeding to
the Company by merger, consolidation or acquisition of all or substantially
all of the Company's assets.

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<PAGE>

     Section 4.   TAXES.  The Company shall pay any and all documentary,
stamp, transfer and other similar taxes which may be payable with respect to
the issuance and delivery of Warrant Shares upon exercise of this Warrant.

     Section 5.   WARRANT HOLDER NOT DEEMED A STOCKHOLDER.  Except as
otherwise specifically provided herein, no holder, as such, of this Warrant
shall be entitled to vote or receive dividends or be deemed the holder of
shares of the Company for any purpose, nor shall anything contained in this
Warrant be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the holder of this Warrant of the Warrant
Shares which he or she is then entitled to receive upon the due exercise of
this Warrant.  In addition, nothing contained in this Warrant shall be
construed as imposing any liabilities on such holder to purchase any
securities (upon exercise of this Warrant or otherwise) or as a stockholder
of the Company, whether such liabilities are asserted by the Company or by
creditors of the Company.  Notwithstanding this Section 5, the Company will
provide the holder of this Warrant with copies of the same notices and other
information given to the stockholders of the Company generally,
contemporaneously with the giving thereof to the stockholders.

     Section 6.   REPRESENTATIONS OF HOLDER.  The holder of this Warrant, by
the acceptance hereof, represents that it is acquiring this Warrant and the
Warrant Shares for its own account for investment only and not with a view
towards, or for resale in connection with, the public sale or distribution of
this Warrant or the Warrant Shares, except pursuant to sales registered or
exempted under the Securities Act; provided, however, that by making the
representations herein, the holder does not agree to hold this Warrant or any
of the Warrant Shares for any minimum or other specific term and reserves the
right to dispose of this Warrant and the Warrant Shares at any time in
accordance with or pursuant to a registration statement or an exemption under
the Securities Act.  The holder of this Warrant further represents, by
acceptance hereof, that, as of this date, such holder is an  "accredited
investor" as such term is defined in Rule 501(a)(3) of Regulation D
promulgated by the Securities and Exchange Commission under the Securities
Act (an "ACCREDITED INVESTOR").  Upon exercise of this Warrant, other than
pursuant to a Cashless Exercise, the holder shall, if requested by the
Company, confirm in writing, in a form satisfactory to the Company,
representations concerning the Warrant Shares in substantially the form of
the first sentence of this Section 6.  If such holder cannot make such
representations because they would be factually incorrect, it shall be a
condition to such holder's exercise of this Warrant, other than pursuant to a
Cashless Exercise, that the Company receive such other representations as the
Company considers reasonably necessary to assure the Company that the
issuance of its securities upon exercise of this Warrant shall not violate
any United States or state securities laws.

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     Section 7.   OWNERSHIP AND TRANSFER.

             (a)  The Company shall maintain at its principal executive
offices (or such other office or agency of the Company as it may designate by
notice to the holder hereof), a register for this Warrant, in which the
Company shall record the name and address of the person in whose name this
Warrant has been issued, as well as the name and address of each transferee.
The Company may treat the person in whose name any Warrant is registered on
the register as the owner and holder thereof for all purposes,
notwithstanding any notice to the contrary, but in all events recognizing any
transfers made in accordance with the terms of this Warrant.

             (b)  This Warrant shall be assignable and transferable by the
holder hereof without the consent of the Company.

             (c)  The Company is obligated to register the Warrant Shares for
resale under the Securities Act pursuant to the Registration Rights Agreement
and the initial holder of this Warrant (and certain assignees thereof) is
entitled to the registration rights in respect of the Warrant Shares as set
forth in the Registration Rights Agreement.

     Section 8.   ADJUSTMENT OF WARRANT EXERCISE PRICE AND NUMBER OF SHARES.
The Warrant Exercise Price and the number of shares of Common Stock issuable
upon exercise of this Warrant shall be adjusted from time to time as follows:

             (a)  ADJUSTMENT OF WARRANT EXERCISE PRICE UPON ISSUANCE OF
COMMON STOCK.  If and whenever on or after the date of issuance of this
Warrant, the Company issues or sells, or is deemed to have issued or sold,
any shares of Common Stock (including the issuance or sale of shares of
Common Stock owned or held by or for the account of the Company, but
excluding (A) the Excluded Securities and (B) shares of Common Stock issued
or deemed to have been issued by the Company in connection with an Approved
Stock Plan or upon exercise or conversion of the Other Securities) for a
consideration per share less than a price (the "APPLICABLE PRICE") equal to
the Warrant Exercise Price in effect immediately prior to such issuance or
sale, then immediately after such issue or sale the Warrant Exercise Price
then in effect shall be reduced to an amount equal to the product of (x) the
Warrant Exercise  Price in effect immediately prior to such issue or sale and
(y) the quotient determined by dividing (1) the sum of (I) the product
derived by multiplying the Applicable Price by the number of shares of Common
Stock Deemed Outstanding immediately prior to such issue or sale, plus (II)
the consideration, if any, received by the Company upon such issue or sale,
by (2) the product derived by multiplying the (I) Applicable Price by (II)
the number of shares of Common Stock Deemed Outstanding immediately after
such issue or sale; provided, however, that the Warrant Exercise Price shall
not be reduced pursuant to this Section 8(a) at any time that the amount of
such reduction would be an amount less than 2% of the Warrant Exercise Price
immediately preceding such reduction, but any such amount shall be carried
forward and a reduction in the Warrant Exercise Price pursuant to this
Section 8(a) shall be made when those amounts which have been carried forward
pursuant to this

                                    -11-
<PAGE>

proviso together with the most recent reduction pursuant to this section 8(a)
shall aggregate 2% or more of the Warrant Exercise Price immediately
preceding the last such reduction.

             (b)  EFFECT ON WARRANT EXERCISE PRICE OF CERTAIN EVENTS.  For
purposes of determining the adjusted Warrant Exercise Price under Section
8(a) above, the following shall be applicable:

                  (i)   ISSUANCE OF OPTIONS.  If the Company in any manner
grants any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon
conversion, exchange or exercise of any Convertible Securities issuable upon
exercise of any such Option is less than the Applicable Price, then such
share of Common Stock shall be deemed to be outstanding and to have been
issued and sold by the Company at the time of the granting or sale of such
Option for such price per share.  For purposes of this Section 8(b)(i), the
"lowest price per share for which one share of Common Stock is issuable upon
exercise of any such Option or upon conversion, exchange or exercise of any
Convertible Securities issuable upon exercise of any such Option" shall be
equal to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to any one share of Common Stock upon
the granting or sale of the Option, upon exercise of the Option and upon
conversion, exchange or exercise of any Convertible Security issuable upon
exercise of such Option. No further adjustment of the Warrant Exercise Price
shall be made upon the actual issuance of such Common Stock or of such
Convertible Securities upon the exercise of such Options or upon the actual
issuance of such Common Stock upon conversion, exchange or exercise of such
Convertible Securities.

                  (ii)  ISSUANCE OF CONVERTIBLE SECURITIES.  If the Company
in any manner issues or sells any Convertible Securities and the lowest price
per share for which one share of Common Stock is issuable upon such
conversion, exchange or exercise thereof is less than the Applicable Price,
then such share of Common Stock shall be deemed to be outstanding and to have
been issued and sold by the Company at the time of the issuance or sale of
such Convertible Securities for such price per share.  For the purposes of
this Section 8(b)(ii), the "lowest price per share for which one share of
Common Stock is issuable upon such conversion, exchange or exercise" shall be
equal to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to one share of Common Stock upon the
issuance or sale of the Convertible Security and upon conversion, exchange or
exercise of such Convertible Security.  No further adjustment of the Warrant
Exercise Price shall be made upon the actual issuance of such Common Stock
upon conversion, exchange or exercise of such Convertible Securities, and if
any such issue or sale of such Convertible Securities is made upon exercise
of any Options for which adjustment of the Warrant Exercise Price had been or
are to be made pursuant to other provisions of this Section 8(b), no further
adjustment of the Warrant Exercise Price shall be made by reason of such
issue or sale.

                  (iii) CHANGE IN OPTION PRICE OR RATE OF CONVERSION.  If the
purchase price provided for in any Options, the additional consideration, if
any, payable upon the issue,

                                    -12-
<PAGE>

conversion, exchange or exercise of any Convertible Securities, or the rate
at which any Convertible Securities are convertible into or exchangeable or
exercisable for Common Stock changes at any time, the Warrant Exercise Price
in effect at the time of such change shall be adjusted to the Warrant
Exercise Price which would have been in effect at such time had such Options
or Convertible Securities provided for such changed purchase price,
additional consideration or changed conversion rate, as the case may be, at
the time initially granted, issued or sold and the number of shares of Common
Stock acquirable hereunder shall be correspondingly readjusted.  For purposes
of this Section 8(b)(iii), if the terms of any Option or Convertible Security
that was outstanding as of the date of issuance of this Warrant are changed
in the manner described in the immediately preceding sentence, then such
Option or Convertible Security and the Common Stock deemed issuable upon
conversion, exchange or exercise thereof shall be deemed to have been issued
as of the date of such change.  No adjustment shall be made if such
adjustment would result in an increase of the Warrant Exercise Price then in
effect.

             (c)  EFFECT ON WARRANT EXERCISE PRICE OF CERTAIN EVENTS.  For
purposes of determining the adjusted Warrant Exercise Price under Sections
8(a) and 8(b), the following shall be applicable:

                  (i)   CALCULATION OF CONSIDERATION RECEIVED.  In case any
Option is issued in connection with the issue or sale of other securities of
the Company, together comprising one integrated transaction in which no
specific consideration is allocated to such Options by the parties thereto,
the Options will be deemed to have been issued for a consideration of $.01.
If any Common Stock, Options or Convertible Securities are issued or sold or
deemed to have been issued or sold for cash, the consideration received
therefor will be deemed to be the gross  amount received by the Company
therefor, less expenses in excess of 5% of the gross amount received.  If any
Common Stock, Options or Convertible Securities are issued or sold for a
consideration other than cash, the amount of such consideration received by
the Company will be the fair value of such consideration, except where such
consideration consists of marketable securities, in which case the amount of
consideration received by the Company will be the Market Price of such
securities on the date of receipt of such securities.  If any Common Stock,
Options or Convertible Securities are issued to the owners of the
non-surviving entity in connection with any merger in which the Company is
the surviving entity, the amount of consideration therefor will be deemed to
be the fair value of such portion of the net assets and business of the
non-surviving entity as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be.  The fair value of any
consideration other than cash or securities will be determined by the Company
and the holders of Preferred Share Warrants representing at least a majority
of the shares of Common Stock obtainable upon exercise of the Preferred Share
Warrants then outstanding.  If such parties are unable to reach agreement
within ten (10) days after the occurrence of an event requiring valuation
(the "VALUATION EVENT"), the fair value of such consideration will be
determined within five (5) Business Days after the tenth (10th) day following
the Valuation Event by an independent, reputable appraiser selected by the
Company from the list of approved appraisers agreed to by the Company and the
holders of the Preferred Shares on or prior to the

                                    -13-
<PAGE>

Issuance Date.  The determination of such appraiser shall be final and
binding upon all parties absent manifest error and the fees and expenses of
such appraiser shall be borne by the Company.

                  (ii)  RECORD DATE.  If the Company takes a record of the
holders of Common Stock for the purpose of entitling them (1)to receive a
dividend or other distribution payable in Common Stock, Options or in
Convertible Securities or (2)to subscribe for or purchase Common Stock,
Options or Convertible Securities, then such record date will be deemed to be
the date of the issue or sale of the shares of Common Stock deemed to have
been issued or sold upon the declaration of such dividend or the making of
such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.  If after the occurrence of
such record date the transaction or event for which such record date was set
is abandoned or terminated, then any adjustments resulting from this Section
2(c)(ii) as it relates to such terminated or abandoned transaction or event
shall be reversed as if such record date had never occurred.

             (d)  ADJUSTMENT OF WARRANT EXERCISE PRICE UPON SUBDIVISION OR
COMBINATION OF COMMON STOCK.  If the Company at any time after the date of
issuance of this Warrant subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares
of Common Stock into a greater number of shares, the Warrant Exercise Price
in effect immediately prior to such subdivision will be proportionately
reduced and the number of shares of Common Stock obtainable upon exercise of
this Warrant will be proportionately increased.  If the Company at any time
after the date of issuance of this Warrant combines (by combination, reverse
stock split or otherwise) one or more classes of its outstanding shares of
Common Stock into a smaller number of shares, the Warrant Exercise Price in
effect immediately prior to such combination will be proportionately
increased and the number of shares of Common Stock obtainable upon exercise
of this Warrant will be proportionately decreased.  Any adjustment  under
this Section 8(d) shall become effective at the close of business on the date
the subdivision or combination becomes effective.

             (e)  DISTRIBUTION OF ASSETS.  If the Company shall declare or
make any dividend or other distribution of its assets (or rights to acquire
its assets) to holders of Common Stock, by way of return of capital or
otherwise (including, without limitation, any distribution of cash, stock or
other securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement or other similar transaction) (a
"DISTRIBUTION"), at any time after the issuance of this Warrant, then, in
each such case:

                  (i)   the Warrant Exercise Price in effect immediately
prior to the close of business on the record date fixed for the determination
of holders of Common Stock entitled to receive the Distribution shall be
reduced, effective as of the close of business on such record date, to a
price determined by multiplying such Warrant Exercise Price by a fraction of
which (A) the numerator shall be the Closing Bid Price of the Common Stock on
the trading day immediately preceding such record date minus the value of the
Distribution (as determined in good faith by the Company's Board of
Directors) applicable to one share of Common Stock, and (B) the

                                    -14-
<PAGE>

denominator shall be the Weighted Average Price of the Common Stock on the
trading day immediately preceding such record date; and

                  (ii)  either (A) the number of Warrant Shares obtainable
upon exercise of this Warrant shall be increased to a number of shares equal
to the number of shares of Common Stock obtainable immediately prior to the
close of business on the record date fixed for the determination of holders
of Common Stock entitled to receive the Distribution multiplied by the
reciprocal of the fraction set forth in the immediately preceding clause (i),
or (B) in the event that the Distribution is of common stock of a company
whose common stock is traded on a national securities exchange or a national
automated quotation system, then the holder of this Warrant shall receive an
additional warrant to purchase Common Stock, the terms of which shall be
identical to those of this Warrant, except that such warrant shall be
exercisable into the amount of the assets that would have been payable to the
holder of this Warrant pursuant to the Distribution had the holder exercised
this Warrant immediately prior to such record date and with an exercise price
equal to the amount by which the exercise price of this Warrant was decreased
with respect to the Distribution pursuant to the terms of the immediately
preceding clause (i).

             (f)  CERTAIN EVENTS.  If any event occurs of the type
contemplated by the provisions of this Section 8 (as determined in good faith
by the board of directors of the Company) but not expressly provided for by
such provisions (including, without limitation, the granting of stock
appreciation rights, phantom stock rights or other rights with equity
features), then the Company's Board of Directors will make an appropriate
adjustment in the Warrant Exercise Price and the number of shares of Common
Stock obtainable upon exercise of this Warrant so as to protect the rights of
the holders of the Preferred Share Warrants; provided that no such adjustment
will increase the Warrant Exercise Price or decrease the number of shares of
Common Stock obtainable as otherwise determined pursuant to this Section 8.

             (g)  NOTICES.

                  (i)   Immediately upon any adjustment of the Warrant
Exercise Price, the Company will give written notice thereof to the holder of
this Warrant, setting forth in reasonable detail, and certifying, the
calculation of such adjustment.

                  (ii)  The Company will give written notice to the holder of
this Warrant at least ten (10) days prior to the date on which the Company
closes its books or takes a record (A)with respect to any dividend or
distribution upon the Common Stock, (B)with respect to any pro rata
subscription offer to holders of Common Stock or (C)for determining rights to
vote with respect to any Organic Change (as defined below), dissolution or
liquidation, provided that such information shall be made known to the public
prior to or in conjunction with such notice being provided to such holder.

                                    -15-
<PAGE>

                  (iii) The Company will also give written notice to the
holder of this Warrant at least ten (10) days prior to the date on which any
Organic Change, dissolution or liquidation will take place, provided that
such information shall be made known to the public prior to or in conjunction
with such notice being provided to such holder.

     Section 9.   PURCHASE RIGHTS; REORGANIZATION, RECLASSIFICATION,
CONSOLIDATION, MERGER OR SALE.  (a)  In addition to any adjustments pursuant
to Section 8 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants,
securities or other property pro rata to the record holders of any class of
Common Stock (the "PURCHASE RIGHTS"), then the holder of this Warrant will be
entitled to acquire, upon the terms applicable to such Purchase Rights, the
aggregate Purchase Rights which such holder could have acquired if such
holder had held the number of shares of Common Stock acquirable upon complete
exercise of this Warrant immediately before the date on which a record is
taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of Common Stock are
to be determined for the grant, issue or sale of such Purchase Rights.

                  (b)  Any recapitalization, reorganization,
reclassification, consolidation, merger, sale of all or substantially all of
the Company's assets to another Person or other transaction which is effected
in such a way that holders of Common Stock are entitled to receive (either
directly or upon subsequent liquidation) stock, securities or assets with
respect to or in exchange for Common Stock (except an unsolicited tender
offer to which the Company is not a party) is referred to herein as "ORGANIC
CHANGE."  Prior to the consummation of any (i) sale of all or substantially
all of the Company's assets to an acquiring Person or (ii) other Organic
Change following which the Company is not a surviving entity, the Company
will secure from the Person purchasing such assets or the successor resulting
from such Organic Change (in each case, the "ACQUIRING ENTITY") written
agreement (in form and substance reasonably satisfactory to the holders of
Preferred Share Warrants representing at least two-thirds (2/3) of the shares
of Common Stock obtainable upon exercise of the Preferred Share Warrants then
outstanding) to deliver to each holder of Preferred Share Warrants in
exchange for such Warrants, a security of the Acquiring Entity evidenced by a
written instrument substantially similar in form and substance to this
Warrant and reasonably satisfactory to the holders of the Preferred Share
Warrants (including, an adjusted warrant exercise price equal to the value
for the Common Stock reflected by the terms of such consolidation, merger or
sale, and exercisable for a corresponding number of shares of Common Stock
acquirable and receivable upon exercise of the Preferred Share Warrants
(without regard to any limitations on exercises), if the value so reflected
is less than the Warrant Exercise Price in effect immediately prior to such
consolidation, merger or sale).  Prior to the consummation of any other
Organic Change, the Company shall make appropriate provision (in form and
substance reasonably satisfactory to the holders of Preferred Share Warrants
representing at least two-thirds (2/3) of the shares of Common Stock obtainable
upon exercise of the Preferred Share Warrants then outstanding) to insure
that each of the holders of the Preferred Share Warrants will thereafter have
the right to acquire and receive in lieu of or in addition to (as the case
may be) the shares of Common Stock immediately theretofore acquirable and
receivable

                                    -16-
<PAGE>

upon the exercise of such holder's Preferred Share Warrants (without regard
to any limitations on exercises), such shares of stock, securities or assets
that would have been issued or payable in such Organic Change with respect to
or in exchange  for the number of shares of Common Stock which would have
been acquirable and receivable upon the exercise of such holder's Warrant as
of the date of such Organic Change (without taking into account any
limitations or restrictions on the exerciseability of this Warrant).

     Section 10.  LOST, STOLEN, MUTILATED OR DESTROYED WARRANT.  If this
Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
on receipt of an indemnification undertaking (or in the case of a mutilated
Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
this Warrant so lost, stolen, mutilated or destroyed.

     Section 11.  NOTICE.  Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Warrant must be in writing and will be deemed to have been delivered:  (i)
upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically  or
electronically generated and kept on file by the sending party); or (iii) one
(1) Business Day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the
same.  If notice is to be sent to the Company, the holder shall use its
reasonable best efforts to provide additional copies to the individuals
listed below; provided, however, that the failure of such holder to send such
additional copies shall in no way limit the effectiveness of any notice sent
to the Company to the attention of the General Counsel as provided for below.
The addresses and facsimile numbers for such communications shall be:

     If to the Company:

               eToys Inc.
               3100 Ocean Park Blvd., Suite 300
               Santa Monica, California 90405
               Telephone:  (310) 664-8100
               Attention:  General Counsel
               Facsimile:  (310) 664-8562
               Telephone:  (310) 664-8342

               With additional copies of any written notice to:

               Attention:  Chief Executive Officer
               Facsimile:  (310) 664-8101
               Telephone:  (310) 664-8109

               Attention:  Chief Financial Officer
               Facsimile:  (310) 664-8563
               Telephone:  (310) 664-8275

                                    -17-
<PAGE>

               Attention:  Vice President, Administration
               Facsimile:  (310) 664-8563
               Telephone:  (310) 664-8118

     With a copy to:

               Skadden, Arps, Slate, Meagher & Flom LLP
               300 South Grand Avenue
               Los Angeles, California 90071
               Telephone:  (213) 687-5000
               Facsimile:  (213) 687-5600
               Attention:  Gregg A. Noel, Esq.

If to a holder of this Warrant, to it at the address and facsimile number set
forth on the Schedule of Buyers to the Securities Purchase Agreement, with
copies to such holder's representatives as set forth on such Schedule of
Buyers, or at such other address and facsimile as shall be delivered to the
Company upon the issuance or transfer of this Warrant.  Each party shall
provide five days' prior written notice to the other party of any change in
address or facsimile number.  Written confirmation of receipt (A) given by
the recipient of such notice, consent, waiver or other communication, (B)
mechanically or electronically generated by the sender's facsimile machine
containing the time, date, recipient facsimile number and an image of the
first page of such transmission or (C) provided by a nationally recognized
overnight delivery service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

     Section 12.  AMENDMENTS.  This Warrant and any term hereof may be
changed, waived, discharged, or terminated only by an instrument in writing
signed by the party or holder hereof against which enforcement of such
change, waiver, discharge or termination is sought and shall be binding on
such party's or holder's assignees and transferees.

     Section 13.  LIMITATION ON NUMBER OF WARRANT SHARES.  The Company shall
not be obligated to issue any Warrant Shares upon exercise of this Warrant if
the issuance of such shares of Common Stock would cause the Company to exceed
that number of shares of Common Stock which the Company may issue upon
exercise of this Warrant (the "EXCHANGE CAP") without breaching the Company's
obligations under the rules or regulations of Principal Market, except that
such limitation shall not apply in the event that the Company (a) obtains the
approval of its stockholders as required by the Principal Market (or any
successor rule or regulation) for issuances of Common Stock in excess of such
amount or (b) obtains a written opinion from outside counsel to the Company
that such approval is not required, which opinion shall be reasonably
satisfactory to the holders of Warrants representing at least two-thirds (2/3)
of the Warrant Shares then issuable upon exercise of outstanding Warrants.
Until such approval or written opinion is obtained, the holder of this
Warrant shall not be issued, upon exercise of this

                                    -18-
<PAGE>

Warrant, Warrant Shares in an amount greater than such holder's Cap
Allocation Amount (as defined in the Certificate of Designations).  In the
event the Company is prohibited from issuing Warrant Shares as a result of
the operation of this Section 13 on or after the earlier to occur of (A)
September 30, 2000, or (B) the date on which the Company holds its next
stockholders meeting provided that at such meeting the Company does not
receive Stockholder Approval (as defined in the Securities Purchase
Agreement), then the Company shall redeem for cash those Warrant Shares which
can not be issued, at a price equal to the difference between the Market
Price of the Common Stock and the Warrant Exercise Price of such Warrant
Shares as of the date of the attempted exercise.

     Section 14.  DATE.  The date of this Warrant is June 12, 2000 (the
"WARRANT DATE").  This Warrant, inall events, shall be wholly void and of no
effect after the close of business on the Expiration Date, except that
notwithstanding any other provisions hereof, the provisions of Section 7
shall continue in full force and effect after such date as to any Warrant
Shares or other securities issued upon the exercise of this Warrant.

     Section 15.  AMENDMENT AND WAIVER.  Except as otherwise provided herein,
the provisions of the Preferred Share Warrants may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company has obtained the written
consent of the holders of Preferred Share Warrants representing at least
two-thirds (2/3) of the shares of Common Stock obtainable upon exercise of the
Preferred Share Warrants then outstanding; provided that no such action may
increase the Warrant Exercise Price or decrease the number of shares or class
of stock obtainable upon exercise of any Preferred Share Warrants without the
written consent of the holder of such Preferred Share Warrant.

     Section 16.  DESCRIPTIVE HEADINGS; GOVERNING LAW.  The descriptive
headings of the several sections and paragraphs of this Warrant are inserted
for convenience only and do not constitute a part of this Warrant.  The
corporate laws of the State of Delaware shall govern all issues concerning
the relative rights of the Company and its stockholders.  All other questions
concerning the construction, validity, enforcement and interpretation of this
Warrant shall be governed by the internal laws of the State of New York,
without giving effect to any choice of law or conflict of law provision or
rule (other than Section 5-1401 of the New York General Obligations Law and
whether of the State of New York or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of New
York.

                              *    *    *   *    *

                                    -19-
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
Steven J. Schoch, its Senior Vice President and Chief Financial Officer, as
of the 12th day of June, 2000.

                                              eTOYS INC.

                                              By:
                                                 ------------------------------
                                              Name: Steven J. Schoch
                                              Title: Senior Vice President and
                                                     Chief Financial Officer

<PAGE>

                             EXHIBIT A TO WARRANT

                                EXERCISE NOTICE
         TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                                  eToys Inc.

     The undersigned holder hereby exercises the right to purchase
_________________ of the shares of Common Stock ("WARRANT SHARES") of eToys
Inc., a Delaware corporation (the "COMPANY"), evidenced by the attached
Warrant (the "WARRANT").  Capitalized terms used herein and not otherwise
defined shall have the respective meanings set forth in the Warrant.

     1.  Form of Warrant Exercise Price.  The Holder intends that payment of
the Warrant Exercise Price shall be made as:

          ______ "Cash Exercise" with respect to ________ Warrant Shares; and/or

          ______ "Cashless Exercise" with respect to ______ Warrant Shares (to
                 the extent permitted by the terms of the Warrant).

     2.  Payment of Warrant Exercise Price.  In the event that the holder has
elected a Cash Exercise with respect to some or all of the Warrant Shares to
be issued pursuant hereto, the holder shall pay the sum of
$___________________ to the Company in accordance with the terms of the
Warrant.

     3.  Delivery of Warrant Shares.  The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.
Notwithstanding anything to the contrary contained herein, this Notice shall
constitute a representation by the holder of the Warrant submitting this
Notice that, after giving effect to the exercise provided for in this Notice,
such Person (as defined in the Warrant) (together with such Person's
affiliates) will not have acquired, through exercise of the Warrant or
otherwise, beneficial ownership of a number of shares of Common Stock during
the 60-day period ending on and including the date of this Notice (the "60
DAY PERIOD"), that, when added to the number of shares of Common Stock
beneficially owned by such Person (together with such Person's affiliates) at
the beginning of the 60 Day Period, exceeds 9.99% of the number of shares of
Common Stock outstanding as reflected in the Company's most recent Form 10-Q
or Form 10-K, as the case may be, or more recent public press release or
other notice by the Company setting forth the number of shares of Common
Stock outstanding, but after giving effect to conversions of Preferred Shares
and issuances of Dividend Shares and exercises of the Warrant by such holder
since the date as of which such number of outstanding shares of Common Stock
was reported. The holder of this warrant has sold or will sell the shares of
common stock issuable pursuant to this Notice pursuant to a registration
statement or an exemption from registration under the Securities Act of 1933,
as amended.

Date: _______________ __, ______

_______________________________   _______________________________
   Name of Registered Holder        Tax ID of Registered Holder

By:___________________________

Name:____________________________
Title:___________________________

<PAGE>

                                ACKNOWLEDGMENT

     The Company hereby acknowledges this Exercise Notice and hereby directs
[TRANSFER AGENT] to issue the above indicated number of shares of Common
Stock in accordance with the Transfer Agent Instructions dated __________,
2000 from the Company and acknowledged and agreed to by [TRANSFER AGENT].

                                                    eTOYS INC.

                                                    By:________________________
                                                    Name:______________________
                                                    Title:_____________________

<PAGE>

                                EXHIBIT B TO WARRANT

                                FORM OF WARRANT POWER

     FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
________________, Federal Identification No. __________, a warrant to
purchase ____________ shares of the capital stock of eToys Inc., a Delaware
corporation, represented by warrant certificate no. _____, standing in the
name of the undersigned on the books of said corporation.  The undersigned
does hereby irrevocably constitute and appoint ______________, attorney to
transfer the warrants of said corporation, with full power of substitution in
the premises.

Dated:  _________, 200_

                                            ____________________________________

                                            By:_________________________________
                                            Its:________________________________<PAGE>

                        REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of June
12, 2000, by and among eToys Inc., a Delaware corporation, with headquarters
located at 3100 Ocean Park Blvd., Suite 300, Santa Monica, California 90405
(the "COMPANY"), and the undersigned buyers (each, a "BUYER" and
collectively, the "BUYERS").

         WHEREAS:

         A.  In connection with the Securities Purchase Agreement by and
among the parties hereto of even date herewith (the "SECURITIES PURCHASE
AGREEMENT"), the Company has agreed, upon the terms and subject to the
conditions of the Securities Purchase Agreement, to issue and sell to the
Buyers (i) shares of the Company's Series D Convertible Preferred Stock (the
"PREFERRED SHARES"), which will be convertible into shares of the Company's
common stock, par value $0.0001 per share (the "COMMON STOCK") (as converted,
the "CONVERSION SHARES") in accordance with the terms of the Company's
Certificate of Designations, Preferences and Rights of the Preferred Stock
(the "CERTIFICATE OF DESIGNATIONS"), and (ii) warrants to purchase shares of
Common Stock (the "WARRANTS;" and as exercised, the "WARRANT SHARES");

         B.  To induce the Buyers to execute and deliver the Securities
Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the
"1933 ACT"), and applicable state securities laws.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and
each of the Buyers hereby agree as follows:

     1.  DEFINITIONS.

         As used in this Agreement, the following terms shall have the
following meanings:

             a.  "INVESTOR" means a Buyer, any transferee or assignee thereof
to whom a Buyer assigns its rights under this Agreement and who agrees to
become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee
assigns its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 9.

             b.  "PERSON" means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a governmental or any department or agency thereof.

<PAGE>

             c.  "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the 1933 Act and pursuant to
Rule 415 under the 1933 Act or any successor rule providing for offering
securities on a continuous or delayed basis ("RULE 415"), and the declaration
or ordering of effectiveness of such Registration Statement(s) by the United
States Securities and Exchange Commission (the "SEC").

             d.  "REGISTRABLE SECURITIES" means (i) the Conversion Shares
issued or issuable upon conversion of the Preferred Shares, (ii) the Warrant
Shares issued or issuable upon exercise of the Warrants, (iii) the Dividend
Shares (as defined in the Certificate of Designations) issued in relation to
the Preferred Shares and (iv) any shares of capital stock issued or issuable
with respect to the Conversion Shares, the Preferred Shares, the Warrant
Shares, the Warrants or the Dividend Shares issued in relation to the
Preferred Shares as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, without regard to
any limitations on conversions of Preferred Shares or exercises of Warrants.

             e.  "REGISTRATION STATEMENT" means a registration statement or
registration statements of the Company filed under the 1933 Act covering the
Registrable Securities.

Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Securities Purchase Agreement.

         2.  REGISTRATION.

             a.  MANDATORY REGISTRATION.  The Company shall prepare, and, as
soon as practicable but in no event later than 45 days after the Closing Date
(as defined in the Securities Purchase Agreement) (the "FILING DEADLINE"),
file with the SEC the Registration Statement on Form S-3 covering the resale
of all of the Registrable Securities.  In the event that Form S-3 is
unavailable for such a registration, the Company shall use such other form as
is available for such a registration, subject to the provisions of Section
2(d).  The Registration Statement prepared pursuant hereto shall register for
resale at least that number of shares of Common Stock equal to the product of
(x) 2.0 and (y) the number of Registrable Securities as of the trading day
immediately preceding the date the Registration Statement is initially filed
with the SEC, subject to adjustment as provided in Section 2(e).  The Company
shall use its best efforts to have the Registration Statement declared
effective by the SEC as soon as practicable, but in no event later than the
date which is 120 days after the Closing Date (the "EFFECTIVENESS DEADLINE").

             b.  ALLOCATION OF REGISTRABLE SECURITIES.  The initial number of
Registrable Securities included in any Registration Statement and each
increase in the number of Registrable Securities included therein shall be
allocated pro rata among the Investors based on the number of Registrable
Securities held by each Investor at the time the Registration Statement
covering such initial number of Registrable Securities or increase thereof is
declared effective by the SEC.

                                       2

<PAGE>

In the event that an Investor sells or otherwise transfers any of such
Investor's Registrable Securities, each transferee shall be allocated a pro
rata portion of the then remaining number of Registrable Securities included
in such Registration Statement for such transferor.  Any shares of Common
Stock included in a Registration Statement and which remain allocated to any
Person which ceases to hold any Registrable Securities covered by such
Registration Statement shall be allocated to the remaining Investors, pro
rata based on the number of Registrable Securities then held by such
Investors which are covered by such Registration Statement.

             c.  LEGAL COUNSEL.  Subject to Section 5 hereof, the Buyers
holding at least two-thirds (y) of the Registrable Securities shall have the
right to select one legal counsel to review and oversee any offering pursuant
to this Section 2 ("LEGAL COUNSEL"), which shall be Katten Muchin Zavis or
such other counsel as thereafter designated by the holders of at least
two-thirds (y) of Registrable Securities.  The Company shall reasonably
cooperate with Legal Counsel in performing the Company's obligations under
this Agreement.

             d.  INELIGIBILITY FOR FORM S-3.  In the event that Form S-3 is
not available for the registration of the resale of Registrable Securities
hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form for the resale of the Registrable
Securities and (ii) undertake to register the Registrable Securities on Form
S-3 as soon as such form is available, provided that the Company shall
maintain the effectiveness of the Registration Statement then in effect until
such time as a Registration Statement on Form S-3 covering the Registrable
Securities has been declared effective by the SEC.

             e.  SUFFICIENT NUMBER OF SHARES REGISTERED.  Subject to Section
3(s), in the event the number of shares available under a Registration
Statement filed pursuant to Section 2(a) is insufficient to cover all of the
Registrable Securities required to be covered by such Registration Statement
or an Investor's allocated portion of the Registrable Securities pursuant to
Section 2(b), the Company shall amend the Registration Statement, or file a
new Registration Statement (on the short form available therefor, if
applicable), or both, so as to cover at least 200% of the number of such
Registrable Securities as of the trading day immediately preceding the date
of the filing of such amendment or new Registration Statement, in each case,
as soon as practicable, but in any event not later than fifteen (15) days
after the necessity therefor arises (except if the Company is not able to
file a Registration Statement due to the provision of Rule 3-01 of Regulation
S-X promulgated under the 1933 Act, then forty-five (45) days after the
necessity therefor arises).  Subject to Section 3(s), the Company shall use
it best efforts to cause such amendment and/or new Registration Statement to
become effective as soon as practicable following the filing thereof.  For
purposes of the foregoing provision, the number of shares available under a
Registration Statement shall be deemed "insufficient to cover all of the
Registrable Securities" if at any time the number of Registrable Securities
issued or issuable upon conversion of the Preferred Shares and exercise of
the Warrants covered by such Registration Statement is greater than the
quotient determined by dividing (i) the number of shares of Common Stock
available for resale under such Registration Statement by (ii) 1.5.  The
calculation set forth in the foregoing sentence shall be made without regard
to any limitations on the conversion of the Preferred Shares or exercise of
the Warrants

                                       3

<PAGE>

and such calculation shall assume that the Preferred Shares and the Warrants
are then convertible and exercisable, respectively, into shares of Common
Stock at the then prevailing Conversion Rate (as defined in the Certificate
of Designations) and Warrant Exercise Price (as defined in the Warrants),
respectively, if applicable.

             f.  EFFECT OF FAILURE TO FILE AND OBTAIN AND MAINTAIN
EFFECTIVENESS OF REGISTRATION STATEMENT.  If (i) a Registration Statement
covering all the Registrable Securities and required to be filed by the
Company pursuant to this Agreement is not (A)filed with the SEC on or before
the  Filing Deadline or (B)declared effective by the SEC on or before the
Effectiveness Deadline or (ii) on any day after the Registration Statement
has been declared effective by the SEC sales of all the Registrable
Securities required to be included on such Registration Statement cannot be
made (other than during an Allowable Grace Period (as defined below) pursuant
to the Registration Statement (including, without limitation, because of a
failure to keep the Registration Statement effective, to disclose such
information as is necessary for sales to be made pursuant to the Registration
Statement or to register sufficient shares of Common Stock), then, as partial
relief for the damages to any holder by reason of any such delay in or
reduction of its ability to sell the underlying shares of Common Stock (which
remedy shall not be exclusive of any other remedies available at law or in
equity), the Company shall pay to each holder of Preferred Shares an amount
in cash per Preferred Share held equal to the product of (i) $10,000
multiplied by (ii) the sum of (A) 0.015, if the Registration Statement is not
filed by the  Filing Deadline, plus (B) 0.015, if the Registration Statement
is not declared effective by the Effectiveness Deadline, plus, (C) the
product of (I) 0.0005 multiplied by (II) the sum of (x) the number of days
after the  Filing Deadline that such Registration Statement is not filed with
the SEC, plus (y) the number of days after the  Effectiveness Deadline that
the Registration Statement is not declared effective by the SEC, plus (z) the
number of days after the Registration Statement has been declared effective
by the SEC that such Registration Statement is not available (other than
during an Allowable Grace Period) for the sale of at least all the
Registrable Securities required to be included on such Registration Statement
pursuant to section 2(e).  The payments to which a holder shall be entitled
pursuant to this Section 2(f) are referred to herein as "REGISTRATION DELAY
PAYMENTS."  Registration Delay Payments shall be paid on the earlier of (I)
the last day of the calendar month during which such Registration Delay
Payments are incurred and (II) the third Business Day after the event or
failure giving rise to the Registration Delayed Payments is cured.  In the
event the Company fails to make Registration Delay Payments in a timely
manner, such Registration Delay Payments shall bear interest at the rate of
1.5% per month (prorated for partial months) until paid in full (or if lower,
the maximum amount allowed under applicable law).

     3.  RELATED OBLIGATIONS.

         At such time as the Company is obligated to file a Registration
Statement with the SEC pursuant to Section 2(a) or 2(e), the Company will use
its reasonable best efforts to effect the registration of the Registrable
Securities in accordance with the intended method of disposition thereof and,
pursuant thereto, the Company shall have the following obligations:

                                       4

<PAGE>

             a.  The Company shall promptly prepare and file with the SEC a
Registration Statement with respect to the Registrable Securities (but in no
event later than the Filing Deadline) and use its best efforts to cause such
Registration Statement relating to the Registrable Securities to become
effective as soon as practicable after such filing (but in no event later
than the Effectiveness Deadline).  Subject to Section 3(s), the Company shall
keep each Registration Statement effective pursuant to Rule 415 at all times
until the earlier of (i) the date as of which the Investors may sell all of
the Registrable Securities covered by such Registration Statement without
restriction pursuant to Rule 144(k) (or successor thereto) promulgated under
the 1933 Act and (ii) the date on which the Investors shall have sold all the
Registrable Securities covered by such Registration Statement (the
"REGISTRATION PERIOD"), which Registration Statement (including any
amendments or supplements thereto and prospectuses contained therein) shall
not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made,
not misleading.  The term "best efforts" shall mean, among other things, that
the Company shall submit to the SEC, within two (2) Business Days after the
Company learns that no review of a particular Registration Statement will be
made by the staff of the SEC or that the staff has no further comments on the
Registration Statement, as the case may be, a request for acceleration of
effectiveness of such Registration Statement to a time and date not later
than 48 hours after the submission of such request; provided, however, that
if the Company determines, in good faith, that, despite learning that the SEC
has no further comments on the Registration Statement, an amendment to the
Registration Statement is necessary, such amendment shall be filed within
five (5) Business Days after the Company learns that the staff of the SEC
will not be reviewing the Registration Statement or has no further comments,
and when thereafter the Company again learns that no review of a particular
Registration Statement will be made by the staff of the SEC or that the staff
has no further comments on the Registration Statement, as the case may be,
the Company will again be required, within two Business Days of so learning,
to make a request for acceleration of effectiveness of such Registration
Statement to a time and date no later than 48 hours after the submission of
such request.

             b.  Subject to Section 3(s), the Company shall prepare and file
with the SEC such amendments (including post-effective amendments) and
supplements to a Registration Statement and the prospectus used in connection
with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the 1933 Act, as may be necessary to keep such
Registration Statement effective at all times during the Registration Period,
and, during such period, comply with the provisions of the 1933 Act with
respect to the disposition of all Registrable Securities of the Company
covered by such Registration Statement until such time as all of such
Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth
in such Registration Statement.  In the case of amendments and supplements to
a Registration Statement which are required to be filed pursuant to this
Agreement (including pursuant to this Section 3(b)) by reason of the Company
filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report
under the Securities Exchange Act of 1934, as amended (the "1934 ACT"), the
Company shall have incorporated such report by reference into the
Registration Statement, if applicable, or shall

                                       5

<PAGE>

file such amendments or supplements with the SEC on the same day on which the
1934 Act report is filed which created the requirement for the Company to
amend or supplement the Registration Statement.

             c.  The Company shall (A) permit Legal Counsel to review and
comment upon (i) the Registration Statement at least seven (7) days prior to
its filing with the SEC and (ii) all other Registration Statements and all
amendments and supplements to all Registration Statements (except for Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K and any similar or successor reports) within a reasonable number of
days prior to their filing with the SEC, and (B) not file a Registration
Statement or amendment or supplement thereto or any document incorporated by
reference into the foregoing in a form to which Legal Counsel reasonably
objects (which objection shall be limited to the information contained in
such documents relating either to the Buyers or the description of the
transactions contemplated by the Securities Purchase Agreement).  The Company
shall furnish to Legal Counsel, without charge, (i) any correspondence from
the SEC or the staff of the SEC to the Company or its representatives
relating to any Registration Statement, (ii) promptly after the same is
prepared and filed with the SEC, one copy of any Registration Statement and
any amendment(s) thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits and (iii) upon
the effectiveness of any Registration Statement, one copy of the prospectus
included in such Registration Statement and all amendments and supplements
thereto.  The Company shall reasonably cooperate with Legal Counsel in
performing the Company's obligations pursuant to this Section 3.

             d.  The Company shall furnish to each Investor whose Registrable
Securities are included in any Registration Statement, without charge, (i) if
requested by such Investor promptly after the same is prepared and filed with
the SEC, at least one copy of such Registration Statement and any
amendment(s) thereto, including financial statements and schedules, all
documents incorporated therein by reference unless filed on the EDGAR system,
all exhibits and each preliminary prospectus, (ii) upon the effectiveness of
any Registration Statement, ten (10) copies of the prospectus included in
such Registration Statement and all amendments and supplements thereto (or
such other number of copies as such Investor may reasonably request) and
(iii) such other documents, including copies of any preliminary or final
prospectus, as such Investor may reasonably request from time to time in
order to facilitate the disposition of the Registrable Securities owned by
such Investor.

             e.  Subject to Section 3(s), the Company shall use its
reasonable best efforts to (i) register and qualify, unless an exemption from
registration and qualification applies, the resale by Investors of the
Registrable Securities covered by a Registration Statement under such other
securities or "blue sky" laws of all the states of the United States, (ii)
prepare and file in those jurisdictions, such amendments (including
post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof
during the Registration Period, (iii) take such other actions as may be
necessary to maintain such registrations and qualifications in effect at all
times during the Registration Period, and (iv) take

                                       6

<PAGE>

all other actions reasonably necessary or advisable to qualify the
Registrable Securities for sale in such jurisdictions; provided, however,
that the Company shall not be required in connection therewith or as a
condition thereto to (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(e), (y)
subject itself to general taxation in any such jurisdiction, or (z) file a
general consent to service of process in any such jurisdiction.  The Company
shall promptly notify Legal Counsel and each Investor who holds Registrable
Securities of the receipt by the Company of any notification with respect to
the suspension of the registration or qualification of any of the Registrable
Securities for sale under the securities or "blue sky" laws of any
jurisdiction in the United States or its receipt of actual notice of the
initiation or threatening of any proceeding for such purpose.

             f.  The Company shall notify Legal Counsel and each Investor in
writing of the happening of any event, as promptly as practicable after
becoming aware of such event,  as a result of which the prospectus included
in a Registration Statement, as then in effect, includes an untrue statement
of a material fact or omission to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading (provided that in no
event shall such notice contain any material, nonpublic information), and,
subject to Section 3(s), promptly prepare a supplement or amendment to such
Registration Statement to correct such untrue statement or omission, and
deliver ten (10) copies of such supplement or amendment to Legal Counsel and
each Investor (or such other number of copies as Legal Counsel or such
Investor may reasonably request).  The Company shall also promptly notify
Legal Counsel and each Investor in writing (i) when a prospectus or any
prospectus supplement or post-effective amendment has been filed, and when a
Registration Statement or any post-effective amendment has become effective
(notification of such effectiveness shall be delivered to Legal Counsel and
each Investor by facsimile on the same day of such effectiveness and by
overnight mail), (ii) of any request by the SEC for amendments or supplements
to a Registration Statement or related prospectus or related information, and
(iii) of the Company's reasonable determination that a post-effective
amendment to a Registration Statement would be appropriate.

             g.  Subject to Section 3(s), the Company shall use its
reasonable best efforts to prevent the issuance of any stop order or other
suspension of effectiveness of a Registration Statement, or the suspension of
the qualification of any of the Registrable Securities for sale in any
jurisdiction and, if such an order or suspension is issued, to obtain the
withdrawal of such order or suspension at the earliest possible moment and to
notify Legal Counsel and each Investor who holds Registrable Securities being
sold of the issuance of such order and the resolution thereof or its receipt
of actual notice of the initiation or threat of any proceeding for such
purpose.

             h.  At the reasonable request of any Investor, the Company shall
furnish to such Investor, on the date of the effectiveness of the
Registration Statement and thereafter from time to time on such dates as an
Investor may reasonably request (i) a letter, dated such date, from the
Company's independent certified public accountants in form and substance as
is customarily given by independent certified public accountants to
underwriters in an underwritten public offering,

                                       7

<PAGE>

addressed to the Investors, and (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement,
in form, scope and substance as is customarily given in an underwritten
public offering, addressed to the Investors.

             i.  The Company shall make available for inspection by (i) any
Investor, (ii) Legal Counsel and (iii) one firm of accountants or other
agents retained by the Investors (collectively, the "INSPECTORS"), all
pertinent financial and other records, and pertinent corporate documents and
properties of the Company (collectively, the "RECORDS"), as shall be
reasonably deemed necessary by each Inspector, and cause the Company's
officers, directors and employees to supply all information which any
Inspector may reasonably request; provided, however, that each Inspector
shall agree to hold in strict confidence and shall not make any disclosure
(except to an Investor) or use of any Record or other information which the
Company determines in good faith to be confidential, and of which
determination the Inspectors are so notified, unless (a) the release of such
Records is ordered pursuant to a final, non-appealable subpoena or order from
a court or government body of competent jurisdiction, or (b) the information
in such Records has been made generally available to the public other than by
disclosure in violation of this or any other agreement of which the Inspector
has knowledge.  Each Investor agrees that it shall, upon learning that
disclosure of such Records is sought in or by a court or governmental body of
competent jurisdiction or through other means, give prompt notice to the
Company and allow the Company, at its expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, the
Records deemed confidential.

             j.  The Company shall hold in confidence and not make any
disclosure of information concerning an Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal
or state securities laws, (ii) such Investor provided  such information to
the Company expressly for use in connection with the preparation of the
Registration Statement, (iii) the release of such information is ordered
pursuant to a subpoena or other final, non-appealable order from a court or
governmental body of competent jurisdiction, or (iv) such information has
been made generally available to the public other than by disclosure in
violation of this Agreement.  The Company agrees that it shall, upon learning
that disclosure of such information concerning an Investor is sought in or by
a court or governmental body of competent jurisdiction or through other
means, give prompt written notice to such Investor and allow such Investor,
at the Investor's expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

             k.  The Company shall use its reasonable best efforts either to
(i) cause all the Registrable Securities covered by a Registration Statement
to be listed on each securities exchange on which securities of the same
class or series issued by the Company are then listed, if any, if the listing
of such Registrable Securities is then permitted under the rules of such
exchange, or (ii) secure designation and quotation of all the Registrable
Securities covered by the Registration Statement on the Nasdaq National
Market, or (iii) if, despite the Company's reasonable best efforts to satisfy
the preceding clause (i) or (ii), the Company is unsuccessful in satisfying
the preceding clause (i) or (ii), to secure the inclusion for quotation on
The Nasdaq SmallCap Market

                                       8

<PAGE>

for such Registrable Securities and, without limiting the generality of the
foregoing, to use its reasonable best efforts to arrange for at least two
market makers to register with the National Association of Securities
Dealers, Inc. ("NASD") as such with respect to such Registrable Securities.
The Company shall pay all fees and expenses in connection with satisfying its
obligation under this Section 3(k).

             l.  The Company shall cooperate with the Investors who hold
Registrable Securities being offered and, to the extent applicable,
facilitate the timely preparation and delivery of certificates (not bearing
any restrictive legend) representing the Registrable Securities to be offered
pursuant to a Registration Statement and enable such certificates to be in
such denominations or amounts, as the case may be, as the Investors may
reasonably request and registered in such names as the Investors may request.

             m.  The Company shall provide a transfer agent and registrar of
all such Registrable Securities not later than the effective date of the
Registration Statement.

             n.  Subject to Section 3(s), if requested by an Investor, the
Company shall (i) as soon as practicable incorporate in a prospectus
supplement or post-effective amendment such information as an Investor
reasonably requests to be included therein relating to the sale and
distribution of Registrable Securities, including, without limitation,
information with respect to the number of Registrable Securities being
offered or sold, the purchase price being paid therefor and any other terms
of the offering of the Registrable Securities to be sold in such offering;
(ii) as soon as practicable make all required filings of such prospectus
supplement or post-effective amendment after being notified of the matters to
be incorporated in such prospectus supplement or post-effective amendment;
and (iii) as soon as practicable, supplement or make amendments to any
Registration Statement if reasonably requested by an Investor of such
Registrable Securities.

             o.  The Company shall use its reasonable best efforts to cause
the Registrable Securities covered by the Registration Statement to be
registered with or approved by such other governmental agencies or
authorities as may be necessary to consummate the disposition of such
Registrable Securities.

             p.  The Company shall make generally available to its security
holders as soon as practical, but not later than 90 days after the close of
the period covered thereby, an earnings statement (in form complying with the
provisions of Rule 158 under the 1933 Act) covering a twelve-month period
beginning not later than the first day of the Company's fiscal quarter next
following the effective date of the Registration Statement.

             q.  The Company shall otherwise use its reasonable best efforts
to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

                                       9

<PAGE>

             r.  Within two (2) Business Days after a Registration Statement
which covers Registrable Securities is ordered effective by the SEC, the
Company shall use its reasonable best efforts to cause legal counsel for the
Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in
such Registration Statement) confirmation that such Registration Statement
has been declared effective by the SEC in the form attached hereto as EXHIBIT
A.

             s.  Notwithstanding anything to the contrary herein, at any time
after the Registration Statement has been declared effective by the SEC, the
Company may delay the disclosure of material non-public information
concerning the Company the disclosure of which at the time is not, in the
good faith opinion of the Board of Directors of the Company and its counsel,
in the best interest of the Company and, in the opinion of counsel to the
Company, otherwise required (a "GRACE PERIOD"); provided, that the Company
shall promptly (i) notify the Investors in writing of the existence of
material non-public information giving rise to a Grace Period (provided that
in each notice the Company will not disclose the content of such material
non-public information to the Investors) and the date on which the Grace
Period will begin, and (ii) notify the Investors in writing of the date on
which the Grace Period ends; and, provided further, that no Grace Period
shall exceed 15 consecutive days and during any 365 day period such Grace
Periods shall not exceed an aggregate of 30 days and the first day of any
Grace Period must be at least two trading days after the last day of any
prior Grace Period (an "ALLOWABLE GRACE PERIOD").  For purposes of
determining the length of a Grace Period above, the Grace Period shall begin
on and include the date the holders receive the notice referred to in clause
(i) and shall end on and include the later of the date the holders receive
the notice referred to in clause (ii) and the date referred to in such
notice.  The second sentence of Section 3(a), the provisions of Sections
3(b), 3(e), 3(g), and 3(n) hereof shall not be applicable during the period
of any Allowable Grace Period.  Upon expiration of the Grace Period, the
Company shall again be bound by the second sentence of Section 3(a), the
provisions of Sections 3(b), 3(e), 3(g), and 3(n) hereof with respect to the
information giving rise to such Grace Period unless such material non-public
information is no longer applicable.

     4.  OBLIGATIONS OF THE INVESTORS.

             a.  At least seven (7) Business Days prior to the first
anticipated filing date of a Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each
such Investor if such Investor elects to have any of such Investor's
Registrable Securities included in such Registration Statement.  It shall be
a condition precedent to the obligations of the Company to complete the
registration pursuant to this Agreement with respect to the Registrable
Securities of a particular Investor that such Investor shall furnish to the
Company such information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable Securities held
by it as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with
such registration as the Company may reasonably request.

                                       10

<PAGE>

             b.  Each Investor, by such Investor's acceptance of the
Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any
Registration Statement hereunder, unless such Investor has notified the
Company in writing of such Investor's election to exclude all of such
Investor's Registrable Securities from such Registration Statement.

             c.  Each Investor agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of 3(f), such Investor will immediately
discontinue disposition of Registrable Securities pursuant to any
Registration Statement(s) covering such Registrable Securities until such
Investor's receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(g) or the first sentence of 3(f) or receipt of
notice that no supplement or amendment is required.  Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to deliver
unlegended shares of Common Stock to a transferee of an Investor in
accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has
entered into a contract for sale prior to the Investor's receipt of a notice
from the Company of the happening of any event of the kind described in
Section 3(g) or the first sentence of 3(f) and for which the Investor has not
yet settled; provided that such Investor has delivered a prospectus in
connection with such sale prior to receiving such notice from the Company.

     5.  EXPENSES OF REGISTRATION.

         All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation,
all registration, listing and qualifications fees, printers and accounting
fees, and reasonable fees and disbursements of counsel for the Company shall
be paid by the Company.  The Company shall also reimburse the Investors for
the reasonable fees and disbursements of Legal Counsel in connection with
registration, filing or qualification pursuant to Sections 2 and 3 of this
Agreement which amount shall be limited to $10,000.

     6.  INDEMNIFICATION.

         In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

             a.  To the fullest extent permitted by law, the Company will,
and hereby does, indemnify, hold harmless and defend each Investor, the
directors, officers, partners, employees, agents, representatives of, and
each Person, if any, who controls any Investor within the meaning of the 1933
Act or the 1934 Act (each, an "INDEMNIFIED PERSON"), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs,
reasonable attorneys' fees, amounts paid in settlement or expenses, joint or
several, (collectively, "CLAIMS") incurred in

                                       11

<PAGE>

investigating, preparing or defending any action, claim, suit, inquiry,
proceeding, investigation or appeal taken from the foregoing by or before any
court or governmental, administrative or other regulatory agency, body or the
SEC, whether pending or threatened, whether or not an indemnified party is or
may be a party thereto ("INDEMNIFIED DAMAGES"), to which any of them may
become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon:
(i) any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any
filing made in connection with the qualification of the offering under the
securities or other "blue sky" laws of any jurisdiction in which Registrable
Securities are offered ("BLUE SKY FILING"), or the omission or alleged
omission to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, (ii) any untrue statement or
alleged untrue statement of a material fact contained in any preliminary
prospectus if used prior to the effective date of such Registration
Statement, or contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the
SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading, (iii) any
violation or alleged violation by the Company of the 1933 Act, the 1934 Act,
any other law, including, without limitation, any state securities law, or
any rule or regulation thereunder relating to the offer or sale of the
Registrable Securities pursuant to a Registration Statement or (iv) any
material violation of this Agreement (the matters in the foregoing clauses
(i) through (iv) being, collectively, "VIOLATIONS").  Subject to Section
6(c), the Company shall reimburse the Indemnified Persons, promptly as such
expenses are incurred and are due and payable, for any reasonable legal fees
or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim.  Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in
conformity with information furnished in writing to the Company by such
Indemnified Person for such Indemnified Person expressly for use in
connection with the preparation of the Registration Statement or any such
amendment thereof or supplement thereto, if such prospectus was timely made
available by the Company pursuant to Section 3(d); (ii) with respect to any
preliminary prospectus, shall not inure to the benefit of any such person
from whom the person asserting any such Claim purchased the Registrable
Securities that are the subject thereof (or to the benefit of any person
controlling such person) if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected in the prospectus, as
then amended or supplemented, if such prospectus was timely made available by
the Company pursuant to Section 3(d), and the Indemnified Person was promptly
advised in writing not to use the incorrect prospectus prior to the use
giving rise to a violation and such Indemnified Person, notwithstanding such
advice, used it; (iii) shall not be available to the extent such Claim is
based on a failure of the Investor to deliver or to cause to be delivered the
prospectus made available by the Company, including a corrected prospectus,
if such prospectus or such corrected prospectus was timely made available by
the Company pursuant to Section 3(d); and (iv) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the
prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall

                                       12

<PAGE>

remain in full force and effect regardless of any investigation made by or on
behalf of the Indemnified Person and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9.

             b.  In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the
same manner as is set forth in Section 6(a), the Company, each of its
directors, each of its officers who signs the Registration Statement each
Person, if any, who controls the Company within the meaning of the 1933 Act
or the 1934 Act (each an "INDEMNIFIED PARTY"), against any Claim or
Indemnified Damages to which any of them may become subject, under the 1933
Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages
arise out of or are based upon any Violation, in each case to the extent, and
only to the extent, that such Violation occurs in reliance upon and in
conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement; and,
subject to Section 6(c), such Investor will reimburse any reasonable legal or
other expenses reasonably incurred by an Indemnified Party in connection with
investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this Section 6(b) and the agreement with
respect to contribution contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the
prior written consent of such Investor, which consent shall not be
unreasonably withheld; provided, further, however, that the Investor shall be
liable under this Section 6(b) for only that amount of a Claim or Indemnified
Damages as does not exceed the net proceeds to such Investor as a result of
the sale of Registrable Securities pursuant to such Registration Statement.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such Indemnified Party and shall
survive the transfer of the Registrable Securities by the Investors pursuant
to Section 9.  Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(b) with respect to any
preliminary prospectus shall not inure to the benefit of any Indemnified
Party if the untrue statement or omission of material fact contained in the
preliminary prospectus was corrected on a timely basis in the prospectus, as
then amended or supplemented.

             c.  Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding)
involving a Claim, such Indemnified Person or Indemnified Party shall, if a
Claim in respect thereof is to be made against any indemnifying party under
this Section 6, deliver to the indemnifying party a written notice of the
commencement thereof, and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person or the Indemnified Party, as the case may be;
provided, however, that an Indemnified Person or Indemnified Party shall have
the right to retain its own counsel with the fees and expenses of not more
than one counsel for such Indemnified Person or Indemnified Party to be paid
by the indemnifying party, if, in the reasonable opinion of counsel retained
by the

                                       13

<PAGE>

indemnifying party, the representation by such counsel of the Indemnified
Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified
Person or Indemnified Party and any other party represented by such counsel
in such proceeding.  In the case of an Indemnified Person, legal counsel
referred to in the immediately preceding sentence shall be selected by the
Investors holding at least two-thirds (2/3) in interest of the Registrable
Securities included in the Registration Statement to which the Claim relates.
 The Indemnified Party or Indemnified Person shall cooperate fully with the
indemnifying party in connection with any negotiation or defense of any such
action or Claim by the indemnifying party and shall furnish to the
indemnifying party all information reasonably available to the Indemnified
Party or Indemnified Person which relates to such action or Claim.  The
indemnifying party shall keep the Indemnified Party or Indemnified Person
fully apprized as to the status of the defense or any settlement negotiations
with respect thereto.  No indemnifying party shall be liable for any
settlement of any action, claim or proceeding effected without its prior
written consent, provided, however, that the indemnifying party shall not
unreasonably withhold, delay or condition its consent.  No indemnifying party
shall, without the prior written consent of the Indemnified Party or
Indemnified Person, consent to entry of any judgment or enter into any
settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person of a release from all liability in respect to
such Claim or litigation.  Following indemnification as provided for
hereunder, the indemnifying party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties,
firms or corporations relating to the matter for which indemnification has
been made.  The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person or
Indemnified Party under this Section 6, except to the extent that the
indemnifying party is prejudiced in its ability to defend such action.

             d.  The indemnification required by this Section 6 shall be made
by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified
Damages are incurred.

             e.  The indemnity agreements contained herein shall be in
addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

     7.  CONTRIBUTION.

         To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise
be liable under Section 6 to the fullest extent permitted by law; provided,
however, that:  (i) no person involved in the sale of Registrable Securities
which person is guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933

                                       14

<PAGE>

Act) in connection with such sale, shall be entitled to contribution from any
person involved in such sale of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities
pursuant to such Registration Statement.

     8.  REPORTS UNDER THE 1934 ACT.

         With a view to making available to the Investors the benefits of
Rule 144 promulgated under the 1933 Act or any other similar rule or
regulation of the SEC that may at any time permit the Investors to sell
securities of the Company to the public without registration ("RULE 144"),
the Company agrees to:

             a.  make and keep public information available, as those terms
are understood and defined in Rule 144;

             b.  file with the SEC in a timely manner all reports and other
documents required of the Company under the 1934 Act so long as the Company
remains subject to such requirements (it being understood that nothing herein
shall limit the Company's obligations under Section 4(c) of the Securities
Purchase Agreement) and the filing of such reports and other documents is
required for the applicable provisions of Rule 144; and

             c.  furnish to each Investor so long as such Investor owns
Registrable Securities, promptly upon request, (i) a written statement, if
true, by the Company that it has complied with the reporting requirements of
Rule 144 and the 1934 Act, (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably requested to
permit the investors to sell such securities pursuant to Rule 144 without
registration.

     9.  ASSIGNMENT OF REGISTRATION RIGHTS.

         The rights under this Agreement shall be automatically assignable by
the Investors to any transferee of all or any portion of Registrable
Securities if: (i) the Investor agrees in writing with the transferee or
assignee to assign such rights, and a copy of such agreement is furnished to
the Company within ten (10) days of such transfer or assignment; (ii) the
Company is, within ten (10) days of such transfer or assignment, furnished
with written notice of (a) the name and address of such transferee or
assignee, and (b) the securities with respect to which such registration
rights are being transferred or assigned; (iii) immediately following such
transfer or assignment the further disposition of such securities by the
transferee or assignee is restricted under the 1933 Act and applicable state
securities laws; (iv) at or before the time the Company receives the written
notice contemplated by clause (ii) of this sentence the transferee or
assignee agrees in writing with the Company to be bound by all of the
provisions contained herein; and (v)

                                       15

<PAGE>

such transfer shall have been made in accordance with the applicable
requirements of the Securities Purchase Agreement.

     10.  AMENDMENT OF REGISTRATION RIGHTS.

          Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and
either retroactively or prospectively), only with the written consent of the
Company and Investors who then hold at least two-thirds (y) of the
Registrable Securities.  Any amendment or waiver effected in accordance with
this Section 10 shall be binding upon each Investor and the Company.  No such
amendment shall be effective to the extent that it applies to less than all
of the holders of the Registrable Securities.  No consideration shall be
offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of this Agreement unless the same consideration also
is offered to all of the parties to this Agreement.

     11.  MISCELLANEOUS.

             a.  A Person is deemed to be a holder of Registrable Securities
whenever such Person owns or is deemed to own of record such Registrable
Securities.  If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

             b.  Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered:  (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Business Day after deposit
with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same.  If notice is to be sent
to the Company, the Buyer shall use its reasonable best efforts to provide
additional copies to the individuals listed below; provided, however, that
the failure of such Buyer to send such additional copies shall in no way
limit the effectiveness of any notice sent to the Company to the attention of
the General Counsel as provided for below.  The addresses and facsimile
numbers for such communications shall be:

         If to the Company (such correspondence identified as "URGENT" to):

             eToys Inc.
             3100 Ocean Park Blvd., Suite 300
             Santa Monica, California 90405
             Telephone:  (310) 664-8100
             Attention:  General Counsel
             Facsimile:  (310) 664-8562
             Telephone:  (310) 664-8342

                                       16

<PAGE>

         With additional copies of any written notice to:

             Attention:  Chief Executive Officer
             Facsimile:  (310) 664-8101
             Telephone:  (310) 664-8109

             Attention:  Chief Financial Officer
             Facsimile:  (310) 664-8563
             Telephone:  (310) 664-8275

             Attention:  Vice President, Administration
             Facsimile:  (310) 664-8563
             Telephone:  (310) 664-8118

         With a copy to:

             Skadden, Arps, Slate, Meagher & Flom LLP
             300 South Grand Avenue
             Los Angeles, California 90071
             Telephone:  (213) 687-5234
             Facsimile:  (213) 687-5600
             Attention:  Gregg A. Noel, Esq.

         If to Legal Counsel:

             Katten Muchin Zavis
             525 West Monroe Street, Suite 1600
             Chicago, Illinois 60661-3693
             Telephone:  312-902-5200
             Facsimile:  312-902-1061
             Attention:  Robert J. Brantman, Esq.

If to a Buyer, to its address and facsimile number set forth on the Schedule
of Buyers attached hereto, with copies to such Buyer's representatives as set
forth on the Schedule of Buyers, or to such other address and/or facsimile
number and/or to the attention of such other person as the recipient party
has specified by written notice given to each other party five (5) days prior
to the effectiveness of such change.  Written confirmation of receipt (A)
given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the sender's
facsimile machine containing the time, date, recipient facsimile number and
an image of the first page of such transmission or (C) provided by a courier
or overnight courier service

                                      17

<PAGE>

shall be rebuttable evidence of personal service, receipt by facsimile or
receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

             c.  Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

             d.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (other than Section 5-1401 of the
New York General Obligations Law and whether of the State of New York or any
other jurisdiction) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts
sitting the City of New York, borough of Manhattan, for the adjudication of
any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of
such suit, action or proceeding is improper.  Each party hereby irrevocably
waives personal service of process and consents to process being served in
any such suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and
notice thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law.  If any provision
of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or
enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

             e.  This Agreement, the Securities Purchase Agreement, the
Warrants and the Certificate of Designations constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and
thereof.  There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein.  This
Agreement, the Securities Purchase Agreement, the Warrants and the
Certificate of Designations supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and
thereof.

             f.  Subject to the requirements of Section 9, this Agreement
shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto.

                                      18

<PAGE>

             g.  The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

             h.  This Agreement may be executed in identical counterparts,
each of which shall be deemed an original but all of which shall constitute
one and the same agreement.  This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission of a copy of
this Agreement bearing the signature of the party so delivering this
Agreement.

             i.  Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the
other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

             j.  All consents and other determinations required to be made by
the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by Investors holding at least two-thirds (y) of
the Registrable Securities, determined as if all of the Preferred Shares and
the Warrants then outstanding have been converted into or exercised for
Registrable Securities without regard to any limitations on conversion of the
Preferred Shares or the exercise of the Warrants.

             k.  The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent and no rules of
strict construction will be applied against any party.

             l.  This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

                                 * * * * * *

                                      19

<PAGE>

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

                                       COMPANY:

                                       ETOYS INC.

                                       By:
                                       ---------------------------------------
                                       Name:  Steven J. Schoch
                                       Title: Senior Vice President and
                                              Chief Financial Officer

                                       BUYERS:

                                       HFTP INVESTMENT L.L.C.
                                       By: Promethean Asset Management, L.L.C.
                                       Its: Investment Manager

                                       By:
                                       ---------------------------------------
                                       Name:  James F. O'Brien
                                       Title: Managing Member

                                       LEONARDO, L.P.
                                       By:   Angelo, Gordon & Co., L.P.
                                       Its:  General Partner

                                       By:
                                       ---------------------------------------
                                       Name:  Michael L. Gordon
                                       Title: Chief Operating Officer

                                       20

<PAGE>

   [PAGE 2 OF 2 OF THE SIGNATURE PAGES TO THE REGISTRATION RIGHTS AGREEMENT]

                                       FISHER CAPITAL LTD.

                                       By:
                                       ---------------------------------------
                                       Name: Daniel J. Hopkins
                                       Its:  Authorized Signatory

                                       WINGATE CAPITAL LTD.

                                       By:
                                       ---------------------------------------
                                       Name:  Daniel J. Hopkins
                                       Its:   Authorized Signatory

                                       21

<PAGE>

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                              Investor Address                         Investor's Legal Representatives'
   Investor's Name                          and Facsimile Number                          Address and Facsimile Number
----------------------              -----------------------------------            ------------------------------------------
<S>                                 <C>                                            <C>
HFTP Investment L.L.C.              c/o Promethean Asset Management L.L.C.         Promethean Investment Group, L.L.C.
                                    750 Lexington Avenue, 22nd Floor               750 Lexington Ave., 22nd Floor
                                    New York, NY 10022                             New York, NY 10022
                                    Attention: David M. Kittay                     Attn:      David M. Kittay
                                               John Floegel                                   John Floegel
                                    Telephone: (212) 702-5200                      Telephone: 212-702-5200
                                    Facsimile: (212) 758-9334                      Facsimile: 212-758-9334
                                    Residence: New York
                                                                                   Katten Muchin Zavis
                                                                                   525 W. Monroe Street
                                                                                   Chicago, Illinois 60661-3693
                                                                                   Attention: Robert J. Brantman, Esq.
                                                                                   Telephone: (312) 902-5200
                                                                                   Facsimile: (312) 902-1061

Leonardo, L.P.                      c/o Angelo, Gordon & Co., L.P.                 Angelo, Gordon & Co., L.P.
                                    245 Park Avenue - 26th Floor                   245 Park Avenue - 26th Floor
                                    New York, New York 10167                       New York, New York 10167
                                    Attention: Ari Storch                          Attention: Ari Storch
                                               Adam J. Chill                                  Adam J. Chill
                                    Facsimile: (212) 867-6449                      Facsimile: (212) 867-6449
                                    Telephone: (212) 692-2035                      Telephone: (212) 692-2035
                                    Residence: Cayman Islands

Fisher Capital Ltd.                 c/o Citadel Investment Group, L.L.C.           Katten Muchin Zavis
                                    225 West Washington Street                     525 W. Monroe Street
                                    Chicago, Illinois  60606                       Chicago, Illinois 60661-3693
                                    Attn:      Daniel J. Hopkins                   Attn:      Robert J. Brantman, Esq.
                                               Kenneth A. Simpler                  Telephone: (312) 902-5200
                                    Telephone: (312) 696-2100                      Facsimile: (312) 902-1061
                                    Facsimile: (312) 338-0780
                                    Residence: Cayman Islands

Wingate Capital Ltd.                c/o Citadel Investment Group, L.L.C.           Katten Muchin Zavis
                                    225 West Washington Street                     525 W. Monroe Street
                                    Chicago, Illinois  60606                       Chicago, Illinois 60661-3693
                                    Attn:    Daniel J. Hopkins                     Attn:      Robert J. Brantman, Esq.
                                             Kenneth A. Simpler                    Telephone: (312) 902-5200
                                    Telephone: (312) 696-2100                      Facsimile: (312) 902-1061
                                    Facsimile: (312) 338-0780
                                    Residence: Cayman Islands
</TABLE>

                                       22

<PAGE>

                                                                     EXHIBIT A

                       FORM OF NOTICE OF EFFECTIVENESS
                          OF REGISTRATION STATEMENT

[TRANSFER AGENT]
ATTN:
     ---------------------------

                RE:  ETOYS, INC.

Ladies and Gentlemen:

         We are counsel to eToys, Inc., a Delaware corporation (the
"COMPANY"), and have represented the Company in connection with that certain
Securities Purchase Agreement (the "PURCHASE AGREEMENT") entered into by and
among the Company and the buyers named therein (collectively, the "HOLDERS")
pursuant to which the Company issued to the Holders shares of its Series D
Convertible Preferred Stock,  par value $0.0001 per share, (the "PREFERRED
SHARES") convertible into shares of the Company's common stock, par value
$0.0001 per share (the "COMMON STOCK"), and related warrants to purchase
shares of the Common Stock (the "WARRANTS").  Pursuant to the Purchase
Agreement, the Company also has entered into a Registration Rights Agreement
with the Holders (the "REGISTRATION RIGHTS AGREEMENT") pursuant to which the
Company agreed, among other things, to register the Registrable Securities
(as defined in the Registration Rights Agreement), including the shares of
Common Stock issuable upon conversion of the Preferred Shares and exercise of
the Warrants, under the Securities Act of 1933, as amended (the "1933 ACT").
In connection with the Company's obligations under the Registration Rights
Agreement, on ____________ ___, 2000, the Company filed a Registration
Statement on Form S-3 (File No. 333-_____________) (the "REGISTRATION
STATEMENT") with the Securities and Exchange Commission (the "SEC") relating
to the Registrable Securities which names each of the Holders as a selling
stockholder thereunder.

         In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at
[ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no
knowledge, after telephonic inquiry of a member of the SEC's staff, that any
stop order suspending its effectiveness has been issued or that any
proceedings for that purpose are pending before, or to our knowledge
threatened by, the SEC and the Registrable Securities are available for
resale under the 1933 Act pursuant to the Registration Statement.

                                       Very truly yours,

                                       [ISSUER'S COUNSEL]

                                       By:
                                          ---------------------------------

cc:  [LIST NAMES OF HOLDERS]

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