Document:

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                            SHARE PURCHASE AGREEMENT

                  THIS SHARE PURCHASE AGREEMENT, dated as of February 12, 2002
(this "Agreement"), is entered into by ACCLAIM ENTERTAINMENT INC., a Delaware
corporation (the "Company"), and those persons named on Schedule 1 hereto
(together, the "Purchasers").

                              W I T N E S S E T H:

                  WHEREAS, the Company and the Purchasers are executing and
delivering this Agreement in reliance upon the exemptions from registration
provided by Regulation D ("Regulation D") promulgated by the Securities and
Exchange Commission (the "Commission") under the Securities Act of 1933, as
amended (the "Securities Act"), and/or Section 4(2) of the Securities Act;

                  WHEREAS, the Purchasers wish to purchase, and the Company
wishes to issue and sell, for an aggregate purchase price of $_________ (the
"Purchase Price"), upon the terms and conditions of this Agreement, a total of
_________ shares (the "Shares") of the Company's common stock, par value $.02
per share (the "Common Stock"); and

                  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 parties agree as
follows:

1.       AGREEMENT TO PURCHASE; CLOSING

         (a) PURCHASE OF SHARES. Subject to the terms and conditions set forth
herein, the Company hereby agrees to issue and sell to each of the Purchasers,
and each Purchaser hereby agrees to purchase from the Company, such number of
Shares at the Closing (as such term is defined in Section 1(b) hereof) as is
listed opposite the name of such Purchaser on Schedule 1 hereto, at the Purchase
Price, based on a purchase price per share of $___.

         (b) CLOSING. The closing (the "Closing") of the purchase and sale of
the Shares will take place at the offices of Rosenman & Colin LLP, 575 Madison
Avenue, New York, New York 10022 on or about February 13, 2002, or at such other
place and time as mutually agreed by the Purchasers and the Company. The date of
the Closing is referred to herein as a "Closing Date." At the Closing, the
Company will deliver to the Purchasers the applicable Shares purchased as set
forth in Schedule 1, against payment of the Purchase Price by wire transfer of
immediately available funds payable to the Company. The Shares shall be
registered in each Purchaser's name or the name of its nominee(s) in such
denominations as the Purchasers shall request pursuant to instructions delivered
to the Company not less than three business days prior to the Closing Date.
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2.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS; ACCESS TO
         INFORMATION; INDEPENDENT INVESTIGATION

                  Each of the Purchasers severally represents and warrants to
the Company as follows:

         (a) Such Purchaser is: (i) experienced in making investments of the
kind contemplated by this Agreement; (ii) able, by reason of the business and
financial experience of its management, to protect its own interests in
connection with the transactions contemplated by this Agreement; (iii) able to
afford the entire loss of its investment in the Shares; (iv) an "accredited
investor" as that term is defined in Rule 501(a) of Regulation D; and (v) except
as otherwise indicated on Schedule 2(a), not a broker-dealer or an affiliate of
a broker-dealer as such terms are defined in the Securities Exchange Act of
1934, as amended (the "Exchange Act").

         (b) Such Purchaser is acquiring the Shares for its own account for
investment only and not with a present view towards the public sale or
distribution thereof, except pursuant to sales registered under the Securities
Act. The Purchaser has not been organized for the purpose of investing in
securities of the Company, although such investment is consistent with its
purposes.

         (c) All subsequent offers and sales of the Shares by such Purchaser
shall be made pursuant to an effective registration statement under the
Securities Act or pursuant to an applicable exemption from such registration.

         (d) Such Purchaser understands that the Shares are being offered and
sold to it in reliance upon exemptions from the registration requirements of the
United States federal securities laws, and that the Company is relying upon the
truth and accuracy of such Purchaser's representations and warranties, and such
Purchaser's compliance with its agreements, each as set forth herein, in order
to determine the availability of such exemptions and the eligibility of the
Purchaser to acquire the Shares.

         (e) Such Purchaser: (i) has been provided with information with respect
to the business of the Company, including, without limitation, the Company's
Quarterly Report on Form 10-Q for the quarterly period ended December 2, 2001
(the "Quarterly Report") and Annual Report on Form 10-K for the period ended
August 31, 2001 (the "Annual Report"); and (ii) has had access to management of
the Company and the opportunity to ask questions of the management of the
Company.

         (f) Such Purchaser has the requisite corporate power and authority to
enter into this Agreement and the registration rights agreement in the form
attached hereto as Exhibit A (the "Registration Rights Agreement") between the
Company and the Purchasers relating to the Registrable Securities (as defined
therein). This Agreement and the Registration Rights Agreement are collectively
referred to as the "Primary Documents."

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         (g) This Agreement, the Registration Rights Agreement and the
transactions contemplated hereby and thereby have been duly and validly
authorized by the Purchaser and such agreements, when executed and delivered by
each of the other parties thereto will each be a valid and binding agreement of
such Purchaser, enforceable against such Purchaser in accordance with their
respective terms, except to the extent that enforcement of such agreements may
be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other similar laws now or hereafter in effect relating to
creditors' rights generally and to general principles of equity.

3.       REPRESENTATIONS OF THE COMPANY

                  The Company represents and warrants to each of the Purchasers
that:

         (a) ORGANIZATION. The Company is a corporation duly organized and
validly existing under the laws of the State of Delaware. Each of the Company's
subsidiaries is a corporation duly organized and validly existing under the laws
of its respective jurisdiction of incorporation. Each of the Company and its
subsidiaries is duly qualified as a foreign corporation in all jurisdictions in
which the failure to so qualify would have a Material Adverse Effect on the
Company (as hereinafter defined). Schedule 3(a) lists all subsidiaries of the
Company and, except as noted therein, all of the outstanding capital stock of
all such subsidiaries is owned of record and beneficially by the Company. The
Company and its subsidiaries have all requisite corporate power and authority,
and hold all licenses, permits and other required authorizations from
governmental authorities, necessary to conduct their business as it is now being
conducted or proposed to be conducted and to own or lease their properties and
assets as they are now owned or held under lease.

         (b) CAPITALIZATION. On the date hereof, the authorized capital of the
Company consists of 200,000,000 shares of Common Stock and 10,000,000 shares of
preferred stock, par value $.02 per share ("Preferred Stock"). As of January 11,
2002, 79,494,461 shares of Common Stock were issued and outstanding and no
shares of Preferred Stock were issued or outstanding. Schedule 3(b) sets forth
all of the options, warrants and convertible securities of the Company, and any
other rights to acquire securities of the Company (collectively, the "Derivative
Securities") which are outstanding on the date hereof, including in each case:
(i) the name and class of such Derivative Securities; and (ii) the number of
shares of Common Stock into which such Derivative Securities are convertible as
of the date hereof. All outstanding securities of the Company are validly
issued, fully paid and nonassessable. No stockholder of the Company is entitled
to any preemptive rights with respect to the purchase of or sale of any
securities by the Company. Except as contemplated herein, none of the shares of
capital stock of the Company is reserved for any purpose, and the Company is
neither subject to any obligation (contingent or otherwise), nor has any option,
to repurchase or otherwise acquire or retire any shares of its capital stock.

         (c) CONCERNING THE SHARES. The Shares are duly authorized and, when
issued, will be duly and validly issued, fully paid and non-assessable, will be
free and clear of any liens imposed by or through the Company, will not be
subject to preemptive rights and will not subject the

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holder thereof to personal liability by reason of being such a holder. There are
currently no preemptive rights of any stockholder of the Company to acquire the
Shares.

         (d) REPORTING COMPANY STATUS. The Common Stock is registered under
Section 12 of the Exchange Act. The Company files reports with the Commission
pursuant to Section 12 and/or 15(d) of the Exchange Act. To the knowledge of the
Company, the Company has duly filed all materials and documents required to be
filed pursuant to all reporting obligations under either Section 13(a) or 15(d)
of the Exchange Act. The Common Stock is listed and traded on The Nasdaq
SmallCap Stock Market ("Nasdaq") and the Company is not aware of any pending or
contemplated action or proceeding of any kind to suspend the trading of the
Common Stock.

         (e) LEGALITY. The Company has the requisite corporate power and
authority to enter into each of the Primary Documents and to issue and deliver
the Shares.

         (f) TRANSACTION AGREEMENTS. The Primary Documents and the transactions
contemplated thereby have been duly and validly authorized by the Company; the
Primary Documents have been duly executed and delivered by the Company and are
each the legal, valid and binding agreement of the Company, enforceable in
accordance with their respective terms, except to the extent that enforcement of
each agreement may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws now or hereafter in
effect relating to creditors' rights generally and to general principles of
equity.

         (g) NON-CONTRAVENTION. The execution and delivery of the Primary
Documents, and the consummation by the Company of the transactions contemplated
thereby, does not (i) result in a violation of the Certificate of Incorporation
or By-laws of the Company or its subsidiaries, or (ii) constitute a default
under (or an event which with notice or lapse of time or both could become a
default) or give to others any rights of termination, amendment or cancellation
of, any material agreement, indenture or instrument to which the Company or any
of its subsidiaries is a party, or result in a violation of any law, rule,
regulation, order, judgment or decree (foreign or domestic and including federal
and state securities laws and regulations) applicable to the Company or any of
its subsidiaries or by which any material property or asset of the Company or
any of its subsidiaries is bound or affected other than any of the foregoing
which would not have a Material Adverse Effect (as hereinafter defined). Except
as set forth in Schedule 3(g), neither the filing of the registration statement
required to be filed by the Company pursuant to the Registration Rights
Agreement nor the offering or sale of the Shares as contemplated by this
Agreement gives rise to any rights, other than those which have been waived or
satisfied on or prior to the date hereof, for or relating to the registration of
any shares of the Common Stock.

         (h) APPROVALS. Except as set forth on Schedule 3(h), no authorization,
approval or consent of any court, governmental body, regulatory agency,
self-regulatory organization, stock exchange or market or the stockholders of
the Company is required to be obtained by the Company for the entry into or the
performance of the Primary Documents.

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         (i) SEC DOCUMENTS, FINANCIAL STATEMENTS. Since September 1, 2001, the
Company has filed all reports, schedules, forms and statements required to be
filed by it with the Commission pursuant to the reporting requirements of the
Exchange Act (the "SEC Documents"). As of their respective dates, none of the
SEC Documents contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading. The financial statements of the Company included in the
SEC Documents were prepared in accordance with U.S. generally accepted
accounting principles, consistently applied, during the periods involved (except
(i) as may be otherwise indicated in such financial statements or the notes
thereto, or (ii) in the case of unaudited interim statements, to the extent they
may not include footnotes or may be condensed or summary statements) and fairly
present in all material respects the consolidated financial position of the
Company and its consolidated subsidiaries and results of their operations and
cash flows for the periods covered thereby (subject, in the case of unaudited
statements, to normal year-end audit adjustments).

         (j) UNDISCLOSED LIABILITIES. The Company has no material obligation or
liability (whether accrued, absolute, contingent, unliquidated, or otherwise,
whether due or to become due) arising out of transactions entered into at or
prior to the Closing of this Agreement, or any action or inaction at or prior to
the Closing of this Agreement, or any state of facts existing at or prior to the
Closing of this Agreement, except (a) liabilities reflected on the latest
balance sheet included in the SEC Documents (the "Company Balance Sheet"), (b)
liabilities incurred in the ordinary course of business since the date of the
Company Balance Sheet (none of which is a liability for breach of contract,
breach of warranty, torts, infringements, claims or lawsuits) and (c)
liabilities or obligations disclosed on Schedule 3(j) hereto.

         (k) ABSENCE OF CERTAIN CHANGES. Except as disclosed in the SEC
Documents, since December 2, 2001, there has been no material adverse change nor
any material adverse development in the business, properties, operations,
financial condition, outstanding securities, employee relations, customer
relations or results of operations of the Company or its subsidiaries, taken as
a whole (each, a "Material Adverse Effect").

         (l) TITLE TO PROPERTIES; LIENS AND ENCUMBRANCES. The Company and its
subsidiaries have good and marketable title to all of their material properties
and assets, both real and personal, and have good title to all their leasehold
interests, in each case subject only to (x) mortgages, pledges, liens, security
interests, conditional sale agreements, encumbrances or charges created in the
ordinary course of business and (y) the lien of the Company's lending
institution.

         (m) PROPRIETARY RIGHTS. The Company and its subsidiaries have
sufficient title and ownership of all trademarks, service marks, trade names,
internet domain names, copyrights, trade secrets, information, proprietary
rights and processes necessary for the conduct of their business as now
conducted and as proposed to be conducted, and, to the knowledge of the Company,
such business does not conflict with or constitute an infringement on the rights
of others.

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         (n) GOVERNMENTAL PERMITS. The Company and its subsidiaries have all
governmental franchises, permits, licenses and any similar governmental
authority necessary for the conduct of their business as now conducted, the lack
of which could result in a Material Adverse Effect. The Company and its
subsidiaries are not in default in any respect under any of such governmental
franchises, permits, licenses or similar authority.

         (o) ABSENCE OF LITIGATION. Except as disclosed in the SEC Documents or
on Schedule 3(o), there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board or body pending or, to the knowledge of the
Company or any of its subsidiaries, threatened against or affecting the Company
or any of its subsidiaries, in which an unfavorable decision, ruling or finding
could have a Material Adverse Effect or adversely affect the transactions
contemplated by the Primary Documents or the validity or enforceability of, or
the authority or ability of the Company to perform its obligations under, the
Primary Documents.

         (p) EMPLOYMENT MATTERS. The Company and its subsidiaries are in
material compliance with all federal, state, local and foreign laws and
regulations respecting employment and employment practices, terms and conditions
of employment and wages and hours. There are no pending investigations involving
the Company or any of its subsidiaries by the U.S. Department of Labor or any
other governmental agency responsible for the enforcement of such federal,
state, local or foreign laws and regulations. There is no unfair labor practice
charge or complaint against the Company or any of its subsidiaries pending
before the National Labor Relations Board or any strike, picketing, boycott,
dispute, slowdown or stoppage pending or threatened against or involving the
Company or any of its subsidiaries. No representation question exists respecting
the employees of the Company or any of its subsidiaries and no collective
bargaining agreement or modification thereof is currently being negotiated by
the Company or any of its subsidiaries. No grievance or arbitration proceeding
is pending under any expired or existing collective bargaining agreements of the
Company or any of its subsidiaries. No material labor dispute with the employees
of the Company or any of its subsidiaries exists or, to the knowledge of the
Company, is imminent.

         (q) ERISA MATTERS. Neither the Company nor any ERISA Affiliate of the
Company (as defined below) maintains, administers, contributes to or is
obligated to contribute to any employee pension benefit plan (as defined in
Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), including, without limitation, any multiemployer plan as defined in
Section 3(37) of ERISA; employee welfare benefit plan (as defined in Section
3(1) of ERISA); or bonus, deferred compensation, stock purchase, stock option,
severance plan, salary continuation, vacation, sick leave, fringe benefit,
incentive, insurance, welfare or similar arrangement with respect to any
employees of the Company or any of its subsidiaries. For these purposes, "ERISA
Affiliate" means all members of a controlled group of corporations and all
trades and businesses (whether or not incorporated) under common control and all
other entities which, together with the Company, are treated as a single
employer under any or all of section 414(b), (c), (m) or (o) of the Internal
Revenue Code of 1986, as amended (the "Code") on either the date of this
Agreement or the Closing Date.

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         (r) INSURANCE. The Company and its subsidiaries maintain property and
casualty, general liability, personal injury and other similar types of
insurance that are reasonably adequate, consistent with industry standards and
their historical claims experience. The Company and its subsidiaries have not
received notice from, and have no knowledge of any threat by, any insurer (that
has issued any insurance policy to the Company or its subsidiaries) that such
insurer intends to deny coverage under or cancel, discontinue or not renew any
insurance policy covering the Company or any of its subsidiaries presently in
force.

         (s) TAXES. All applicable U.S. federal, state and local income and
franchise tax returns ("Tax Returns") required to be filed by the Company and
each of its subsidiaries have been prepared and filed in compliance with all
applicable laws and were true, correct and complete in all material respects
when filed, or if not yet filed have been granted extensions of the filing dates
which extensions have not expired, and all taxes, assessments, fees and other
governmental charges upon the Company, its subsidiaries, or upon any of their
respective properties, income or franchises, required to be paid by the Company
or its subsidiaries to be due and payable have been paid, or adequate reserves
therefor have been set up if any of such taxes are being contested in good
faith; or if any of such Tax Returns have not been filed or if any such taxes
have not been paid or so reserved for, the failure to so file or to pay would
not in the aggregate have a Material Adverse Effect. All amounts required to be
withheld by the Company or any of its subsidiaries from employees for income,
social security and other payroll taxes have been collected and withheld and
have either been paid to the appropriate agency, set aside in accounts for such
purpose or accrued and reserved upon the books and records of the Company or the
appropriate subsidiary. Except as set forth on Schedule 3(s), there were no tax
liens on any of the Company's or its subsidiaries' assets that arose in
connection with the failure, or alleged failure, to pay any taxes except for
liens for taxes not yet due and payable. No taxing authority is asserting or
threatening to assert against the Company or any of its subsidiaries any
deficiency or claim for additional taxes and no Tax Return of Company or any of
its subsidiaries is currently under audit by any tax authority. The provision
for taxes on the Company Balance Sheet adequately reflects all tax liabilities
in accordance with U.S. generally accepted accounting principles.

         (t) COMPLIANCE WITH LAW. To the best of their knowledge, the Company
and its subsidiaries have complied in all material respects with all applicable
statutes and regulations of the United States and of all states, municipalities
and applicable agencies and foreign jurisdictions or bodies in respect of the
conduct of its business and operations, and the failure, if any, by the Company
or its subsidiaries to have fully complied with any such statute or regulation
has not and will not result in a Material Adverse Effect.

         (u) INVESTMENT COMPANY ACT. The Company and its subsidiaries are not
conducting, and will not conduct, their business in a manner which would cause
any of them to become an "investment company," as defined in Section 3(a) of the
Investment Company Act of 1940, as amended.

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         (v) BROKERAGE FEES. Except as set forth on Schedule 3(v), the Company
and its subsidiaries have not incurred any liability for any consulting fees or
agent's commissions in connection with the offer and sale of the Shares and the
transactions contemplated by this Agreement.

         (w) PRIVATE OFFERING. Subject to the accuracy of the Purchasers'
representations and warranties set forth in Section 2 hereof, the offer, sale
and issuance of the Shares, as contemplated by this Agreement, are exempt from
the registration requirements of the Securities Act. Prior to the effectiveness
of the registration statement contemplated by the Registration Rights Agreement,
the Company agrees that neither the Company nor anyone acting on its behalf will
offer any of the Shares, or any similar securities, for issuance or sale, or
solicit any offer to acquire any of the same from anyone so as to render the
issuance and sale of such securities subject to the registration requirements of
the Securities Act. The Company has not offered or sold the Shares by any form
of general solicitation or general advertising, as such terms are used in Rule
502(c) under the Securities Act.

         (x) FULL DISCLOSURE. Neither the Primary Documents nor any of the
schedules, exhibits, written statements, documents or certificates prepared or
supplied by the Company with respect to the transactions contemplated hereby
contain any untrue statement of a material fact or omit a material fact
necessary to make the statements contained herein or therein not misleading in
light of the circumstances under which made. Except as disclosed in the SEC
Documents and except for matters affecting the industry of the Company as a
whole, there exists no fact or circumstance which, to the knowledge of the
Company upon due inquiry, could reasonably be anticipated to have a Material
Adverse Effect or could adversely affect the ability of the Company to perform
its obligations set forth in the Primary Documents.

         (y) S-3 ELIGIBILITY. The Company is eligible to register the resale of
the Shares by the Purchasers under Form S-3 promulgated under the Securities
Act.

4.       CERTAIN COVENANTS AND ACKNOWLEDGMENTS

         (a) TRANSFER RESTRICTIONS. Each of the Purchasers acknowledges that,
except as provided in the Registration Rights Agreement, (i) none of the Shares
have been, or are being, registered under the Securities Act, and such
securities may not be transferred unless (A) subsequently registered thereunder
or (B) they are transferred pursuant to an exemption from such registration; and
(ii) any sale of the Shares made in reliance upon Rule 144 under the Securities
Act may be made only in accordance with the terms of said Rule. The provisions
of Section 4(a) and 4(b) hereof, together with the rights and obligations of the
Purchasers under the Primary Documents, shall be binding upon any subsequent
transferees of the Shares.

         (b) RESTRICTIVE LEGEND. Each of the Purchasers acknowledges and agrees
that, until such time as the Shares shall have been registered under the
Securities Act or such Purchaser demonstrates to the reasonable satisfaction of
the Company that such registration shall no longer be required, such Shares
shall bear a restrictive legend in substantially the following form:

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           THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
           SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE
           SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR
           OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
           REGISTRATION STATEMENT AS TO THE SECURITIES UNDER
           SAID ACT OR AN OPINION OF COUNSEL OR OTHER EVIDENCE
           REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
           REGISTRATION SHALL NO LONGER BE REQUIRED.

         (c) FILINGS. The Company undertakes and agrees that it will make all
required filings in connection with the sale of the Shares to the Purchasers as
required by United States laws and regulations, or by any domestic securities
exchange or trading market, and if applicable, the filing of a notice on Form D
(at such time and in such manner as required by the Rules and Regulations of the
Commission), and to provide copies thereof to the Purchasers promptly after such
filing or filings.

         (d) NASDAQ LISTING. The Company shall use its best efforts to promptly
secure the listing of the Shares upon each national securities exchange or
automated quotation system, if any, upon which the Common Stock is then listed.
The Company further agrees and covenants that it will not seek to have the
trading of its Common Stock on Nasdaq suspended or terminated, will use its best
efforts to maintain its eligibility for trading on Nasdaq and, if such trading
of its Common Stock is suspended or terminated, will use its best efforts to
requalify its Common Stock or otherwise cause such trading to resume.

         (e) REPORTING STATUS. The Company shall timely file all reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act and shall not terminate its status as an issuer required to file
reports under the Exchange Act even if the Exchange Act or the rules and
regulations thereunder would permit such termination.

         (f) STATE SECURITIES FILINGS. The Company shall from time to time
promptly take such action as either the Purchasers or any of their
representatives, if applicable, may request to qualify the Shares for offering
and sale under the securities laws (other than United States federal securities
laws) of the jurisdictions in the United States as shall be so identified to the
Company, and to comply with such laws so as to permit the continuance of sales
therein, except that the Company shall not for any such purpose be required to
qualify generally to do business as a foreign corporation in any jurisdiction
wherein it would not but for the requirements of this subsection (f) be
obligated to be so qualified, or to subject itself to taxation in any such
jurisdiction, or to consent to general service of process in any such
jurisdiction.

         (g) USE OF PROCEEDS. The Company will use the net proceeds from the
sale of the Shares for the Company's working capital, the acquisition of
products and product licensing, possible strategic acquisitions and may use a
portion of the proceeds to retire a portion of the Company's 10% Convertible
Notes due March 2002 and other liabilities.

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         (h) REGISTRATION RIGHTS. The Company acknowledges that in order to
induce the Purchasers to enter into this Agreement, it has provided them with
certain registration rights under the Securities Act as set forth in the
Registration Rights Agreement. In this regard, the Company has agreed that if
the Registration Statement (as defined in the Registration Rights Agreement) is
not declared effective by the Effectiveness Date (as defined in the Registration
Rights Agreement), the Company shall pay to each Purchaser an amount equal to
one percent (1%) of the purchase price paid for the Shares purchased by such
Purchaser. Thereafter, for every 30 days that pass without the Registration
Statement being declared effective after the Effectiveness Date, the Company
shall pay to such Purchaser an additional amount equal to one percent (1%) of
the purchase price paid for the Shares purchased by such Purchaser.

5.       TRANSFER AGENT INSTRUCTIONS

                The Company warrants that no instruction, other than the
instructions referred to in this Section 5, prior to the registration and sale
under the Securities Act of the Common Stock will be given by the Company to its
transfer agent in respect of the Shares and that the Shares shall otherwise be
freely transferable on the books and records of the Company as and to the extent
provided in this Agreement, the Registration Rights Agreement and applicable
law. Nothing in this Section shall affect in any way the Purchasers' obligations
and agreement to comply with all applicable securities laws upon resale of the
Shares. If a Purchaser provides the Company with an opinion of counsel
reasonably satisfactory to the Company that registration of a resale by the
Purchaser of any of the Shares in accordance with Section 4(a) of this Agreement
is not required under the Securities Act, the Company shall permit the transfer
of the Shares and promptly instruct the Company's transfer agent to issue one or
more certificates for Common Stock without legend in such names and in such
denominations as specified by the Purchaser.

6.       CONDITIONS TO THE COMPANY'S OBLIGATION
         TO ISSUE THE SHARES

                  Each Purchaser understands that the Company's obligation to
issue the Shares on the Closing Date to the Purchasers pursuant to this
Agreement is conditioned upon the satisfaction or waiver by the Company of each
of the following conditions:

         (a) The accuracy on the Closing Date of the representations and
warranties of the Purchasers contained in this Agreement as if made on the
Closing Date and the performance by the Purchasers on or before the Closing Date
of all covenants and agreements of the Purchasers required to be performed on or
before the Closing Date.

         (b) The absence or inapplicability of any and all laws, rules or
regulations prohibiting or restricting the transactions contemplated hereby, or
requiring any consent or approval which shall not have been obtained.

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         (c) The Purchasers shall have executed this Agreement and the
Registration Rights Agreement and delivered the same to the Company.

         (d) The Purchasers shall have delivered the full Purchase Price in
accordance with Section 1(a) above.

7.       CONDITIONS TO THE PURCHASERS' OBLIGATION TO
         PURCHASE THE SHARES

                  The Company understands that the Purchasers' obligation to
purchase the Shares on the Closing Date is conditioned upon the satisfaction or
waiver by the Purchasers of each of the following conditions:

         (a) The accuracy on the Closing Date of the representations and
warranties of the Company contained in this Agreement as if made on the Closing
Date, and the performance by the Company on or before the Closing Date of all
covenants and agreements of the Company required to be performed on or before
the Closing Date.

         (b) The Company shall have executed this Agreement and the Registration
Rights Agreement and delivered same to the Purchasers.

         (c) On the Closing Date, the Purchasers shall have received an opinion
of counsel for the Company, dated the Closing Date, in the form attached as
Exhibit B hereto.

         (d) On the Closing Date, the Purchasers shall have received a
certificate executed by the President or the Chief Executive Officer of the
Company and by the Chief Financial Officer of the Company, stating that all of
the representations and warranties of the Company set forth in the Primary
Documents are accurate as of the Closing Date and that the Company has performed
all of its covenants and agreements required to be performed under the Primary
Documents on or before the Closing Date.

         (e) The Purchasers shall have received an incumbency certificate, dated
the Closing Date, for the officers of the Company executing this Agreement, and
any other documents or instruments delivered in connection with this Agreement
at the Closing.

         (f) The Purchasers shall have received a certificate of the Secretary
or Assistant Secretary of the Company, dated the Closing Date, as to the
continued and valid existence of the Company, certifying the attached copy of
the By-laws of the Company, the authorization of the execution, delivery and
performance of the Primary Documents, and the resolutions adopted by the Board
of Directors of the Company authorizing the actions to be taken by the Company
contemplated by the Primary Documents.

                                       11
<PAGE>

         (g) The Purchasers shall have received a certified copy of the
Certificate of Incorporation of the Company as filed with the Secretary of State
of the State of Delaware and any amendments thereto through the Closing Date.

         (h) The Purchasers shall have received from the Company such other
certificates and documents as they or their representatives, if applicable,
shall reasonably request, and all proceedings taken by the Company in connection
with the Primary Documents contemplated by this Agreement and the other Primary
Documents and all documents and papers relating to such Primary Documents shall
be satisfactory to the Purchasers.

         (i) No injunction, order, investigation, claim, action or proceeding
before any court or governmental body shall be pending or threatened wherein an
unfavorable judgment, decree or order would restrain, impair or prevent the
carrying out of this Agreement or any of the transactions contemplated hereby,
declare unlawful the transactions contemplated by this Agreement or cause any
such transaction to be rescinded.

         (j) The Company shall have obtained in writing or made all consents,
waivers, approvals, orders, permits, licenses and authorizations of, any
registrations, declarations, notices to and filings and applications with, any
governmental authority or any other person or entity (including, without
limitation, securityholders and creditors of the Company) required to be
obtained or made in order to enable the Company to observe and comply with all
its obligations under this Agreement and to consummate the transactions
contemplated hereby.

8.       INDEMNIFICATION

         (a)      Indemnification of Purchasers by the Company.

                  The Company hereby agrees to indemnify and hold harmless each
of the Purchasers, their affiliates and their respective officers, managers,
members, directors, partners, shareholders, employees and members (collectively,
the "Buyer Indemnitees"), from and against any and all losses, claims, damages,
judgments, penalties, liabilities and deficiencies (collectively, "Losses"), and
agrees to reimburse the Buyer Indemnitees for all out-of-pocket expenses
(including the fees and expenses of legal counsel), in each case promptly as
incurred by the Buyer Indemnitees and to the extent arising out of or in
connection with:

                  (i)      any misrepresentation, omission of fact or breach of
                           any of the Company's representations, warranties or
                           covenants contained in this Agreement, the annexes,
                           schedules or exhibits hereto or any instrument,
                           agreement or certificate entered into or delivered by
                           the Company pursuant to this Agreement; or

                  (ii)     any failure by the Company to perform any of its
                           covenants, agreements, undertakings or obligations
                           set forth in this Agreement, the annexes,

                                       12
<PAGE>

                           schedules or exhibits hereto or any instrument,
                           agreement or certificate entered into or delivered by
                           the Company pursuant to this Agreement.

         (c)      Indemnification of the Company by Purchasers.

                  Each of the Purchasers hereby severally agrees to indemnify
and hold harmless the Company, its affiliates and their respective officers,
directors, partners and members (collectively, the "Company Indemnitees"), from
and against any and all Losses, and agrees to reimburse the Company Indemnitees
for all out-of-pocket expenses (including the fees and expenses of legal
counsel), to the extent arising out of or in connection with any breach of any
of such Purchaser's representations, warranties or covenants contained in this
Agreement, the annexes, schedules or exhibits hereto or any instrument,
agreement or certificate entered into or delivered by such Purchaser pursuant to
this Agreement; provided, however, that the total amount payable in respect
thereto by each Purchaser under this Section 8(b) shall not exceed the purchase
price paid by such Purchaser.

         (d)      Third Party Claims.

                  Promptly after receipt by either party hereto seeking
indemnification pursuant to this Section 8 (an "Indemnified Party") of written
notice of any investigation, claim, proceeding or other action in respect of
which indemnification is being sought (each, a "Claim"), the Indemnified Party
promptly shall notify the party against whom indemnification pursuant to this
Section 8 is being sought (the "Indemnifying Party") of the commencement
thereof; but the omission to so notify the Indemnifying Party shall not relieve
it from any liability that it otherwise may have to the Indemnified Party,
except to the extent that the Indemnifying Party is materially prejudiced and
forfeits substantive rights and defenses by reason of such failure. In
connection with any Claim as to which both the Indemnifying Party and the
Indemnified Party are parties, the Indemnifying Party shall be entitled to
assume the defense thereof. Notwithstanding the assumption of the defense of any
Claim by the Indemnifying Party, the Indemnified Party shall have the right to
employ separate legal counsel and to participate in the defense of such Claim,
and the Indemnifying Party shall bear the reasonable fees, out-of-pocket costs
and expenses of such separate legal counsel to the Indemnified Party if (and
only if): (x) the Indemnifying Party shall have agreed to pay such fees,
out-of-pocket costs and expenses, (y) the Indemnified Party and the Indemnifying
Party reasonably shall have concluded that representation of the Indemnified
Party by the Indemnifying Party by the same legal counsel would not be
appropriate due to actual or, as reasonably determined by legal counsel to the
Indemnified Party, potentially differing interests between such parties in the
conduct of the defense of such Claim, or if there may be legal defenses
available to the Indemnified Party that are in addition to or disparate from
those available to the Indemnifying Party, or (z) the Indemnifying Party shall
have failed to employ legal counsel reasonably satisfactory to the Indemnified
Party within a reasonable period of time after notice of the commencement of
such Claim. If the Indemnified Party employs separate legal counsel in
circumstances other than as described in clauses (x), (y) or (z) above, the
fees, costs and expenses of such legal counsel shall be borne exclusively by the
Indemnified Party. Except as provided above, the Indemnifying

                                       13
<PAGE>

Party shall not, in connection with any Claim in the same jurisdiction, be
liable for the fees and expenses of more than one firm of legal counsel for the
Indemnified Party (together with appropriate local counsel). The Indemnifying
Party shall not, without the prior written consent of the Indemnified Party
(which consent shall not unreasonably be withheld) settle or compromise any
Claim or consent to the entry of any judgment that does not include an
unconditional release of the Indemnified Party from all liabilities with respect
to such Claim or judgment.

9.       EXPENSES

                  The Company covenants and agrees with the Purchasers that the
Company shall pay or cause to be paid the following: (i) all expenses in
connection with registration or qualification of the Shares for offering and
sale under federal securities laws, and state securities laws as provided in
Section 4(f) hereof; and (ii) all other costs and expenses incident to the
performance of its obligations hereunder which are not otherwise specifically
provided for in this Section, including the fees and disbursements of the
Company's counsel, accountants and other professional advisors, if any.

10.      SURVIVAL

                  The agreements, covenants, representations and warranties of
the Company and the Purchasers, including indemnification obligations under
Section 8, shall survive the execution and delivery of this Agreement and the
delivery of the Shares hereunder until the Company has satisfied in full its
obligations under the terms of the Registration Rights Agreement.

11.      MISCELLANEOUS

         (a) GOVERNING LAW; JURISDICTION. This Agreement shall be governed by
and interpreted in accordance with the internal laws of the State of New York.
Each of the parties submits to the jurisdiction of the federal courts whose
districts encompass any part of the City of New York or the state courts of the
State of New York sitting in the City of New York in connection with any dispute
arising under this Agreement or any of the transactions contemplated hereby, and
hereby waives, to the maximum extent permitted by law, any objection, including
any objections based on forum non conveniens, to the bringing of any such
proceeding in such jurisdictions.

         (b) COUNTERPARTS. This Agreement may be signed in two or more
counterparts, each of which shall be deemed an original.

         (c) HEADINGS. The headings of this Agreement are for convenience of
reference only and shall not form part of, or affect the interpretation of, this
Agreement.

                                       14
<PAGE>

         (d) INTERPRETATION. The Primary Documents have been entered into freely
by each of the parties, following consultation with their respective counsel,
and shall be interpreted fairly in accordance with its respective terms, without
any construction in favor of or against either party.

         (e) SEVERABILITY. 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 or
the validity or unenforceability of this Agreement in any other jurisdiction.

         (f) SUCCESSORS. This Agreement shall inure to the benefit of, and be
binding upon the successors and assigns of each of the parties hereto.

         (g) AMENDMENTS. This Agreement may be amended only by an instrument in
writing signed by the party to be charged with enforcement.

         (h) MERGER. This Agreement, together with the other Primary Documents,
supersedes all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof.

         (i) EQUITABLE RELIEF. The Company and the Purchasers each recognize
that in the event that any party fails to perform, observe, or discharge any or
all of its obligations under this Agreement or the other Primary Documents, any
remedy at law may prove to be inadequate relief to the aggrieved party. The
Company and the Purchasers therefore agree that an aggrieved party under this
Agreement or the other Primary Documents, if such party so requests, shall be
entitled to temporary and permanent injunctive relief in any such case without
the necessity of proving actual damages.

         (j) NOTICES. Any notice required or permitted hereunder shall be given
in writing (unless otherwise specified herein) and shall be effective upon
personal delivery, via facsimile (upon receipt of confirmation of error-free
transmission) or two business days following deposit of such notice with an
internationally recognized courier service, with postage prepaid and addressed
to each of the other parties thereunto entitled at the following addresses, or
at such other addresses as a party may designate by five days advance written
notice to each of the other parties hereto.

COMPANY:          Acclaim Entertainment, Inc.
                  One Acclaim Plaza
                  Glen Cove, New York 11542
                  ATTENTION: Gerard Agoglia
                  Chief Financial Officer
                  Tel.: (516) 656-5000
                  Fax:  (516) 656-2039

                  with a copy to:

                                       15
<PAGE>

                  Rosenman & Colin LLP
                  575 Madison Avenue
                  New York, NY  10022
                  ATTENTION:  Eric M. Lerner, Esq.
                  Tel.:  (212) 940-8800
                  Fax:  (212) 940-8776

PURCHASERS:       At the addresses set forth on the signature pages hereto.

                  (k) PURCHASER'S OBLIGATIONS. The obligations of each Purchaser
hereunder is several and not joint with the obligations of any other Purchaser
hereunder, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser hereunder. Nothing contained herein or
in any other agreement or document delivered at the Closing, and no action taken
by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement. Each Purchaser shall be entitled to protect and enforce its
rights, including without limitation the rights arising out of this Agreement,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.

12.      NON-DISCLOSURE.

                  The Purchasers acknowledge that the Company is a
publicly-listed company and, as such, is subject to strict regulation governing
the disclosure of information relating to corporate transactions. Except as
required by law, without the prior written consent of the Company, the
Purchasers will not directly or indirectly, make any public comment, statement
or communication to any individual or entity with respect to, or otherwise
disclose the existence of discussions regarding a possible transaction between
the parties or any of the terms, conditions, or other aspects of this Agreement
until such time as the transaction is completed, or any confidential information
provided by the Company to the Purchasers. Further, the Purchasers acknowledge
that they may not trade in the securities of the Company when they are in
possession of material, non-public information and that they agree that they
will not do so. The Purchasers will not use any confidential information
provided by Company to the Purchasers for any purpose other than evaluating an
investment by the Purchasers in the Shares. Confidential Information shall
include all non-public information provided by the Company to the Purchasers,
but shall not include information that (a) is now or subsequently becomes
generally available to the public through no wrongful act or omission of the
Purchasers, (b) the Purchasers can demonstrate to have had rightfully in their
possession prior to disclosure to the Purchasers by the Company, and (c) the
Purchasers rightfully obtain from a third party who has the right to transfer or
disclose it. If the Purchasers are required by law to make any such disclosure,
they shall first

                                       16
<PAGE>

provide to the Company the content of the proposed disclosure, the reasons that
such disclosure is required by law, and the time and place that the disclosure
will be made.

                                       17
<PAGE>

                  IN WITNESS WHEREOF, this Share Purchase Agreement has been
duly executed by each of the undersigned.

Dated:

COMPANY:

ACCLAIM ENTERTAINMENT, INC.

By: ___________________________________
Name:  Gerard F. Agoglia
Title: Executive Vice President
       and Chief Financial Officer

PURCHASER:

By: ___________________________________
Name:
Title:

                                       18

<PAGE>

PURCHASER:

By: ___________________________________
Name:
Title:

                                       19
<PAGE>

PURCHASER:

By: ___________________________________
Name:
Title:

                                       20<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of February 12, 2002 (this
"Agreement"), is made by ACCLAIM ENTERTAINMENT, INC., a Delaware corporation
(the "Company"), and those persons named in Schedule 1 (together, the
"Purchasers").

                              W I T N E S S E T H:

     WHEREAS, pursuant to a Share Purchase Agreement, dated as of the date
hereof, between the Company and the Purchasers (the "Share Purchase Agreement"),
the Company has agreed to issue and sell to the Purchasers, a total of _______
shares (the "Shares" or the "Registrable Securities") of the Company's common
stock, par value $.02 per share (the "Common Stock");

     WHEREAS, to induce the Purchasers to execute and deliver the Share Purchase
Agreement, the Company has agreed to provide to the Purchasers and their
permitted assigns certain registration rights under the Securities Act of 1933,
as amended (the "Securities 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 the Purchasers
hereby agree as follows:

     1.   DEFINITIONS.

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

               (a)  "Claims" shall have the meaning ascribed to it in Section
                    6(a).

               (b)  "Demand Deferral Notice" shall have the meaning ascribed to
                    it in Section 2(iv).

               (c)  "Effectiveness Date" means the 90th day following the
                    Closing Date.

               (d)  "Excess Liability" shall have the meaning ascribed to it in
                    Section 6(d).

               (e)  "Filing Date" means the 30th day following the Closing Date.

               (c)  "Holder" or "Holders" mean a holder or holders of
                    Registrable Securities.

<PAGE>

               (d)  "Indemnified Person" shall have the meaning ascribed to it
                    in Section 6(a).

               (e)  "Inspectors" shall have the meaning ascribed to it in
                    Section 3(k).

               (f)  "Records" shall have the meaning ascribed to it in Section
                    3(k).

               (g)  "Registration Period" shall have the meaning ascribed to it
                    in Section 2(ii).

               (h)  "Registration Statement" means a registration statement or
                    registration statements of the Company filed under the
                    Securities Act covering Registrable Securities.

               (i)  "Register," "Registered" and "Registration" refer to a
                    registration effected by preparing and filing a registration
                    statement in compliance with the Securities Act and pursuant
                    to Rule 415 under the Securities Act or any successor rule
                    providing for offering securities on a continuous basis
                    ("Rule 415"), and the declaration or ordering of
                    effectiveness of such registration statement by the United
                    States Securities and Exchange Commission (the
                    "Commission").

               (j)  "Rule 144" shall have the meaning ascribed to it in Section
                    8.

               (k)  "Violations" shall have the meaning ascribed to it in
                    Section 6(a).

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

     2.   MANDATORY REGISTRATION.

               (i) The Company shall use its best efforts to prepare and file
with the Commission not later than the Filing Date a Registration Statement or
Registration Statements (as necessary) on Form S-3 covering the resale of all of
the Registrable Securities. In the event that Form S-3 is unavailable and/or
inappropriate for such a registration, the Company shall use such other form as
is available and appropriate for such a registration. Any Registration Statement
prepared pursuant hereto shall register for resale at least that number of
shares of Common Stock equal to the Shares. The Company shall cause the
Registration Statement to be declared effective under the Securities Act as
promptly as possible after the filing thereof, but in any event prior to the
Effectiveness Date, provided that if the Registration Statement is not declared
effective by the Effectiveness Date, the Company shall pay to each Purchaser an
amount equal to one percent (1%) of the purchase price paid for the Shares
purchased by such Purchaser. Thereafter, for every 30 days that pass without the
Registration Statement being declared effective after the Effectiveness Date,
the Company shall pay to such Purchaser an additional

<PAGE>

amount equal to one percent (1%) of the purchase price paid for the Shares
purchased by such Purchaser.

               (ii) The Company shall use its best efforts to keep each
Registration Statement effective pursuant to Rule 415 at all times until such
date as is the earlier of (i) the date on which all of the Registrable
Securities have been sold and (ii) the date on which the Registrable Securities
(in the opinion of counsel to the Purchasers) may be immediately sold without
restriction (including without limitation as to volume by each holder thereof)
without registration under the Securities Act (the "Registration Period").

               (iii) If any offering pursuant to a Registration Statement
pursuant to Section 2 hereof involves an underwritten offering (which may only
be with the consent of the Company), the Purchasers shall have the right to
select legal counsel and an investment banker or bankers and manager or managers
to administer the offering, which investment banker or bankers or manager or
managers shall be reasonably satisfactory to the Company.

               (iv) Notwithstanding the foregoing, if the Company shall furnish
to the Purchasers a certificate signed by the President or Chief Executive
Officer of the Company (a "Demand Deferral Notice") stating that, in the good
faith judgment of the Board of Directors of the Company, it would be seriously
detrimental to the Company and its shareholders for such Registration Statement
to be filed and it is therefore essential to defer the filing of such
Registration Statement, then the Company shall have the right to defer such
filing for a period of not more than 30 days after the 30th day after the
Closing Date; provided, however, that the Company may not utilize this right
more than once in any 12-month period.

               (v) If Registrable Securities are registered for sale under the
Securities Act, the Purchasers shall cease any distribution of such shares under
the Registration Statement not more than twice in any 12-month period, for up to
15 days each, upon the request of the Company if: (x) such distribution would
require the public disclosure of material non-public information concerning any
transaction or negotiations involving the Company or any of its affiliates that,
in the good faith judgment of the Company's Board of Directors, would materially
interfere with such transaction or negotiations, or (y) such distribution would
otherwise require premature disclosure of information that, in the good faith
judgment of the Company's Board of Directors, would adversely affect or
otherwise be detrimental to the Company. The Company shall promptly notify the
Purchasers at such time as (i) such transactions or negotiations have been
otherwise publicly disclosed or terminated, or (ii) such non-public information
has been publicly disclosed or counsel to the Company has determined that such
disclosure is not required due to subsequent events.

     3. OBLIGATIONS OF THE COMPANY. In connection with the registration of the
Registrable Securities, the Company shall do each of the following:

          (a) Prepare and file with the Commission the Registration Statements
required by Section 2 of this Agreement and such amendments (including
post-effective amendments) and

<PAGE>

supplements to the Registration Statements and the prospectuses used in
connection with the Registration Statements, each in such form as to which the
Purchasers and their counsel shall not have reasonably objected, as may be
necessary to keep the Registration current at all times during the Registration
Period, and, during the Registration Period, comply with the provisions of the
Securities Act with respect to the disposition of all of the Registrable
Securities until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in the Registration Statements;

          (b) Furnish to the Purchasers, if the Registrable Securities of the
Purchasers are included in the Registration Statement, and their legal counsel
identified to the Company, promptly after the same is prepared and publicly
distributed, filed with the Commission, or received by the Company, a copy of
the Registration Statement, each preliminary prospectus, each final prospectus,
and all amendments and supplements thereto and such other documents, as the
Purchasers may reasonably request in order to facilitate the disposition of
their Registrable Securities;

          (c) Use all best efforts to (i) register and qualify the Registrable
Securities covered by the Registration Statement under such other securities or
blue sky laws of such jurisdictions as the Purchasers may request, (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 at all times 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 all other actions necessary or advisable to
qualify the Registrable Securities for sale in such jurisdictions, except that
the Company shall not for any such purpose be required to qualify generally to
do business as a foreign corporation in any jurisdiction wherein it would not
but for the requirements of this subsection (c) be obligated to be so qualified,
or to subject itself to taxation in any such jurisdiction, or to consent to
general service of process in any such jurisdiction;

          (d) List such securities on The Nasdaq SmallCap Market and all the
other national securities exchanges on which any securities of the Company are
then listed, and file any filings required by The Nasdaq SmallCap Market and/or
such other exchanges;

          (e) Notify each Purchaser and (if requested by the Purchaser) confirm
such advice in writing, (i) when or if the prospectus or any prospectus
supplement or post-effective amendment has been filed, and, with respect to the
Registration Statement or any post-effective amendment, when the same has become
effective, (ii) of any request by the Commission for amendments or supplements
to the Registration Statement or the prospectus or for additional information,
(iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose, (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Shares for
sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose, and (v) of the happening of any event as a result of which the
prospectus included in such Registration Statement, as then in effect, includes
an untrue

<PAGE>

statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing;

          (f) If any fact contemplated by clause (v) of paragraph (e), above,
shall exist, prepare a supplement or post-effective amendment to the
Registration Statement or the related prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchaser of the Registrable Securities the prospectus will not
contain an untrue statement of material fact or omit to state any material fact
necessary to make the statements therein not misleading;

          (g) If the Company has consented to an underwritten offering and such
offering is underwritten, at the request of a Purchaser, to furnish on the date
that Registrable Securities are delivered to the underwriters for sale pursuant
to such registration: (i) an opinion dated such date of counsel representing the
Company for the purposes of such registration, addressed to the underwriters and
to any Purchaser selling Registrable Securities in connection with such
underwriting, stating that such registration statement has become effective
under the Securities Act and that (A) to the best knowledge of such counsel, no
stop order suspending the effectiveness thereof has been issued and no
proceedings for that purpose have been instituted or are pending or contemplated
under the Securities Act and (B) the registration statement, the related
prospectus and each amendment or supplement thereof comply as to form in all
material respects with the requirements of the Securities Act (except that such
counsel need not express any opinion as to financial statements or other
financial data contained therein) and (ii) a letter dated such date from the
Company's independent public accountants addressed to the underwriters and to
such Purchasers, stating that they are independent public accountants within the
meaning of the Securities Act and that, in the opinion of such accountants, the
financial statements of the Company included in the registration statement or
the prospectus, or any amendment or supplement thereof, comply as to form in all
material respects with the applicable accounting requirements of the Securities
Act, and such letter shall additionally cover such other financial matters
(including information as to the period ending no more than five business days
prior to the date of such letter) with respect to such registration as such
underwriters may reasonably request;

          (h) Cooperate with the Purchasers to facilitate the timely preparation
and delivery of certificates for the Registrable Securities to be offered
pursuant to the Registration Statement and to enable such certificates for the
Registrable Securities to be in such denominations or amounts, as the case may
be, as the Purchasers may reasonably request, and registered in such names as
the Purchasers may request; and, within three business days after a Registration
Statement which includes Registrable Securities is ordered effective by the
Commission, the Company shall deliver, and shall cause legal counsel selected by
the Company to deliver, to the transfer agent for the Registrable Securities
(with copies to the Purchasers) an appropriate instruction and opinion of such
counsel;

          (i) Enter into customary agreements (including, in the case of an
underwritten offering, underwriting agreements in customary form, and including
provisions with respect to

<PAGE>

indemnification and contribution in customary form and consistent with the
provisions relating to indemnification and contribution contained herein) and
take all other customary and appropriate actions in order to expedite or
facilitate the disposition of such Registrable Securities and in connection
therewith:

               (i) make such representations and warranties to the Purchasers
and the underwriters, if any, in form, substance and scope as are customarily
made by issuers to underwriters in similar underwritten offerings;

               (ii) to the extent requested and customary for the relevant
transaction, enter into a securities sales agreement with the Purchasers and
such representative of the Purchasers as the Purchasers covered by any
Registration Statement shall select relating to the Registration and providing
for, among other things, the appointment of such representative as agent for the
selling Purchasers for the purpose of soliciting purchases of Registrable
Securities, which agreement shall be customary in form, substance and scope and
shall contain customary representations, warranties and covenants; and

               (iii) deliver such customary documents and certificates as may be
reasonably requested by the Purchasers whose Registrable Securities are being
sold or by the managing underwriters, if any.

The above shall be done (i) at the effectiveness of such Registration Statement
(and each post-effective amendment thereto) in connection with any registration,
and (ii) at each closing under any underwriting or similar agreement as and to
the extent required thereunder;

          (j) At the request of the Purchasers, make generally available to its
security holders as soon as practicable, 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 Securities Act) covering a 12-month
period beginning not later than the first day of the Company's fiscal quarter
next following the effective date of a Registration Statement;

          (k) Make available for inspection by (i) any Purchaser, (ii) any
underwriter participating in any disposition pursuant to a Registration
Statement, (iii) one firm of attorneys and one firm of accountants or other
agents retained by the Purchasers, and (iv) one firm of attorneys retained by
all such underwriters (collectively, the "Inspectors") all pertinent financial
and other records, and pertinent corporate documents and properties of the
Company (collective, the "Records"), as shall be reasonably deemed necessary by
each Inspector to enable each Inspector to exercise its due diligence
responsibility, and cause the Company's officers, directors and employees to
supply all information which any Inspector may reasonably request for purposes
of such due diligence; provided, however, that each Inspector shall hold in
confidence and shall not make any disclosure (except to the Inspectors) 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 disclosure of such Records is necessary to avoid or correct a material
misstatement or omission in any Registration Statement, (b) the release of such
Records is ordered pursuant to a subpoena or other order from a court or
government body of

<PAGE>

competent jurisdiction, or (c) 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. The Company shall not be required to disclose any
confidential information in such Records to any Inspector until and unless such
Inspector shall have entered into confidentiality agreements (in form and
substance satisfactory to the Company) with the Company with respect thereto,
substantially in the form of this Section 3(k). Each Purchaser agrees that upon
learning that the release of such Records is ordered pursuant to a subpoena or
other order from a court or government body of competent jurisdiction, it shall
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. Nothing herein shall be deemed to
limit the Purchasers' ability to sell Registrable Securities in a manner which
is otherwise consistent with applicable laws and regulations; and

          (l) Hold in confidence and not make any disclosure of information
concerning a Purchaser provided to the Company unless (i) disclosure of such
information is necessary to comply with federal or state securities laws, (ii)
the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other 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 or any other agreement. The Company agrees that it shall, upon
learning that disclosure of such information concerning a Purchaser is sought in
or by a court or governmental body of competent jurisdiction or though other
means, give prompt notice to such Purchaser prior to making such disclosure, and
allow the Purchaser, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

          (m) The Company agrees that it shall not file a registration statement
(other than on a Form S-8 or pursuant to Schedule 2) with the Commission with
respect to any securities of the Company other than the Registrable Securities
until after the registration statement with respect to the Registrable
Securities shall have been filed with the Commission.

          (n) The Company agrees that it shall not cause a registration
statement filed with the Commission following the Filing Date covering
securities of the Company (other than the Registrable Securities) to be declared
effective by the Commission prior to the date that the Registration Statement
covering the Registrable Securities is declared effective by the Commission.

     4. OBLIGATIONS OF THE PURCHASERS TO PROVIDE INFORMATION. In connection with
the registration of the Registrable Securities, each Purchaser 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 each Purchaser shall execute such documents in
connection with such registration as the Company may reasonably request. At
least ten days prior to the first anticipated filing date of the Registration
Statement, the Company shall notify the Purchasers of the information the
Company included in the Registration Statement.

<PAGE>

     5. EXPENSES OF REGISTRATION. All expenses, other than underwriting
discounts and commissions and other fees and expenses of investment bankers and
other than brokerage commissions, incurred in connection with registrations,
filings or qualifications pursuant to Section 3, but including, without
limitation, all registration, listing, and qualification fees, printing and
accounting fees, and the fees and disbursements of counsel for the Company, and
the fees of one counsel to the Purchasers with respect to each Registration
Statement filed pursuant hereto, shall be borne by the Company provided, that
the expenses of such Purchasers' counsel shall not exceed $15,000.

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

          (a) The Company will indemnify and hold harmless each Purchaser, each
of its officers, directors, partners and shareholders, and each person, if any,
who controls each Purchaser within the meaning of the Securities Act or the
Exchange Act (each, an "Indemnified Person"), against any losses, claims,
damages, liabilities or expenses (joint or several) incurred (collectively,
"Claims") to which any of them may become subject under the Securities Act, the
Exchange Act or otherwise, 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
contained in the Registration Statement or any post-effective amendment thereof
or the omission or alleged omission to state therein a material fact required to
be stated therein or necessary in order to make the statements therein, in light
of the circumstances in which they were made, 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
Commission) or the omission to state therein any material fact necessary in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state or
foreign securities law or any rule or regulation under the Securities Act, the
Exchange Act or any state or foreign securities law (the matters in foregoing
clauses (i) through (iii) being, collectively, "Violations"). The Company shall,
subject to the provisions of Section 6(b) below, reimburse each Purchaser,
promptly as such expenses are incurred and are due and payable, for any legal
and other costs, expenses and disbursements in giving testimony or furnishing
documents in response to a subpoena or otherwise, including without limitation,
the costs, expenses and disbursements, as and when incurred, of investigating,
preparing or defending any such action, suit, proceeding or investigation
(whether or not in connection with litigation in which the Purchaser is a
party), incurred by it in connection with the investigation or defense of any
such Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a) shall not (i) apply to
any Claim arising out of or based upon a modification which occurs in reliance
upon and in conformity with information furnished in writing to the Company by
or on behalf of any Indemnified Person expressly for use in connection with the
preparation of the Registration Statement or any such amendment thereof or
supplement thereto; (ii) with respect to any preliminary prospectus, inure to
the benefit of any such person from whom the person asserting any such Claim
purchased the

<PAGE>

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 final
prospectus, as then amended or supplemented, if such final prospectus was timely
made available by the Company pursuant to Section 3(b) hereof; (iii) be
available to the extent that such Claim is based upon a failure of the Purchaser
to deliver or to cause to be delivered the prospectus made available by the
Company, if such prospectus was timely made available by the Company pursuant to
Section 3(b) hereof; or (iv) 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 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 Purchaser pursuant to Section 9. Each Purchaser will indemnify
the Company and its officers and directors against any Claims 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 or on behalf of the
Purchaser, expressly for use in connection with the preparation of the
Registration Statement (including any modifications, amendments or supplements
thereto), subject to such limitations and conditions as are applicable to the
Indemnification provided by the Company in this Section 6; provided, however,
that in no event shall any indemnity by any Purchaser under this Section 6
exceed the amount of the net proceeds received by such Purchaser in connection
with the offering effected through such Registration Statement.

          (b) Promptly after receipt by an Indemnified Person under this Section
6 of notice of the commencement of any action (including any governmental
action), such Indemnified Person 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
that the indemnifying party so desires, jointly with any other indemnifying
party similarly notified, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person,
provided, however, that an Indemnified Person shall have the right to retain its
own counsel with the reasonable fees and expenses to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person and the
indemnifying party would be inappropriate due to actual or potential differing
interests between such Indemnified Person and any other party represented by
such counsel in such proceeding. In such event, the Company shall pay for only
one separate legal counsel for the Purchasers, and such legal counsel shall be
selected by the Purchasers. The failure to deliver written notice to an
indemnifying party within a reasonable time after the commencement of any such
action shall not relieve such indemnifying party of any liability to the
Indemnified Person under this Section 6, except to the extent that the
indemnifying party is materially prejudiced in its ability to such action. 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 such
expense, loss, damage or liability is incurred and is due and payable.

          (c) No indemnifying party, in the defense of any such claim or
litigation, shall, except with the consent of each Indemnified Party, consent to
entry of any judgment or enter into

<PAGE>

any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Person of an
unconditional and irrevocable release from all liability in respect of such
claim or litigation.

          (d) Notwithstanding the foregoing, to the extent that any provisions
relating to indemnification or contribution contained in the underwriting
agreements entered into among the Company, the underwriters and the Purchasers
in connection with the underwritten public offering are in conflict with the
foregoing provisions, the provisions in such underwriting agreements shall be
controlling as to the Registrable Securities included in the public offering;
provided, however, that if, as a result of this Section 6(d), a Purchaser, its
officers, directors, partners, shareholders or any person controlling the
Purchaser is or are held liable with respect to any Claim for which they would
be entitled to indemnification hereunder but for this Section 6(d) in an amount
which exceeds the aggregate proceeds received by the Purchaser from the sale of
Registrable Securities included in a registration pursuant to such underwriting
agreement (the "Excess Liability"), the Company shall reimburse the Purchasers
for such Excess Liability.

     7. CONTRIBUTION. To the extent any indemnification by an indemnifying party
is prohibited or limited under applicable law, the indemnifying party agrees to
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage, liability or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and the Indemnified Person on the other hand in connection with the
statements or omissions which resulted in such Claim, as well as any other
relevant equitable considerations. The relative fault of the indemnifying party
and the Indemnified Person shall be determined by reference to, among other
things, whether the untrue statement of a material fact or the omission to state
a material fact on which such Claim is based relates to information supplied by
the indemnifying party or by the Indemnified Person, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. Notwithstanding the forgoing, (a) no contribution
shall be made under circumstances where the payor would not have been liable for
indemnification under the fault standards set forth in Section 6, (b) no seller
of Registrable Securities guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of
such fraudulent misrepresentation and (c) contribution by any seller of
Registrable Securities shall be limited in amount to the net proceeds received
by such seller from the sale of such Registrable Securities. The Company and the
Purchasers agree that it would not be just and equitable if contribution
pursuant to this Section 7 were determined by pro rata allocation (even if the
Purchasers and any other party were treated as one entity for such purpose) or
by any other method of allocation that does not take account of the equitable
considerations referred to in this Section.

<PAGE>

     8. REPORTS UNDER EXCHANGE ACT. With a view to making available to the
Purchasers the benefits of Rule 144 promulgated under the Securities Act or any
other similar rule or regulation of the Commission that may at any time permit
the Purchasers to sell securities of the Company to the public without
registration ("Rule 144"), the Company agrees to:

               (i) make and keep public information available, as those terms
are understood and defined in Rule 144;

               (ii) file with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act; and

               (iii) furnish to each Purchaser so long as such Purchaser owns
Shares promptly upon request, (i) a written statement by the Company that it has
complied with the reporting requirements of the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or periodic 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 Purchaser to sell such
securities pursuant to Rule 144 without registration.

     9. ASSIGNMENT OF THE REGISTRATION RIGHTS. The rights to have the Company
register Registrable Securities pursuant to this Agreement shall be
automatically assigned by a Purchaser to any transferee of the Shares held by
such Purchaser if: (a) such Purchaser agrees in writing with the transferee or
assignee to assign such rights, and a copy of such agreement is furnished to the
Company within a reasonable time after such assignment; (b) the Company is,
within a reasonable time after such transfer or assignment, furnished with
written notice of the name and address of such transferee or assignee; (c) at or
before the time the Company receives the written notice contemplated by clause
(b) of this sentence, the transferee or assignee agrees in writing with the
Company to be bound by all of the provisions contained herein; and (d) the
transfer of the relevant Shares complies with the restrictions set forth in
Section 4 of the Share Purchase Agreement.

     10. AMENDMENT OF REGISTRATION RIGHTS. Any provision 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 the Purchasers holding two thirds (2/3) of
the outstanding Registrable Securities. Any amendment or waiver effected in
accordance with this Section 10 shall be binding upon the Purchasers and the
Company.

     11. MISCELLANEOUS.

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

<PAGE>

          (b) Any notice required or permitted hereunder shall be given in
writing (unless otherwise specified herein) and shall be effective upon personal
delivery, via facsimile (upon receipt of confirmation of error-free
transmission) or two business days following deposit of such notice with an
internationally recognized courier service, with postage prepaid and addressed
to each of the other parties thereunto entitled at the following addresses, or
at such other addresses as a party may designate by ten (10) days advance
written notice to each of the other parties hereto.

COMPANY:          Acclaim Entertainment, Inc.
                  One Acclaim Plaza
                  Glen Cove, New York  11542
                  Attention:  Mr. Gerard Agoglia
                              Chief Financial Officer
                  Tel.:   (516) 656-5000
                  Fax:    (516) 656-2039

                  WITH COPIES TO:

                  Rosenman & Colin LLP
                  575 Madison Avenue
                  New York, New York  10022
                  Attention:  Eric M. Lerner, Esq.
                  Tel.:  (212) 940-8800
                  Fax:  (212) 940-8776

PURCHASERS:       to the addresses set forth on the signatures pages hereto.

          (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) This Agreement shall be governed by and interpreted in accordance
with the laws of the State of New York. Each of the parties agrees to the
jurisdiction of the federal courts whose districts encompass any part of the
City of New York or the state courts of the State of New York sitting in the
City of New York in connection with any dispute arising under this Agreement and
hereby waives, to the maximum extent permitted by law, any objection, including
any objection based on forum non conveniens, to the bringing of any such
proceeding in such jurisdictions. This Agreement may be signed in two or more
counterparts, each of which shall be deemed an original. The headings of this
Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. If any provision of this Agreement shall
be invalid or unenforceable in any jurisdiction, such validity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction. Subject to the provisions of Section 10 hereof, this
Agreement may be amended only by an instrument in writing signed by the party to
be charged with enforcement.
<PAGE>

          (e) This Agreement, together with the Share Purchase Agreement,
constitutes the entire agreement among the parties hereto with respect to the
subject matter hereof. This Agreement supersedes all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof.

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

          (g) All pronouns and any variations thereof refer to the masculine,
feminine or neuter, singular or plural, as the context may require.

          (h) The Company acknowledges that any failure by the Company to
perform its obligations under Section 2, or any delay in such performance could
result in direct and indirect damages to the Purchasers, and the Company agrees
that, in addition to any other liability the Company may have by reason of any
such failure or delay, the Company shall be liable for all direct and
consequential damages caused by any such failure or delay. Nothing herein shall
limit the Purchasers' right to pursue any claim seeking such direct or
consequential damages.

          (i) The obligations of each Purchaser hereunder is several and not
joint with the obligations of any other Purchaser hereunder, and no Purchaser
shall be responsible in any way for the performance of the obligations of any
other Purchaser hereunder. Nothing contained herein or in any other agreement or
document delivered at the Closing, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert with
respect to such obligations or the transactions contemplated by this Agreement.
Each Purchaser shall be entitled to protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.

                            [Signature pages follow]

<PAGE>

         IN WITNESS WHEREOF, this Registration Rights Agreement has been duly
executed by the undersigned.

Dated: February __, 2002

                                            ACCLAIM ENTERTAINMENT, INC.

                                            By: ________________________________
                                            Name:  Gerard F. Agoglia
                                            Title: Executive Vice President
                                                   and Chief Financial Officer

<PAGE>

PURCHASER:

By: _________________________________
Name:
Title:

Address:

<PAGE>

PURCHASER:

By: _________________________________
Name:
Title:

Address:

<PAGE>

PURCHASER:

By: _________________________________
Name:
Title:

Address:

<PAGE>

                                   SCHEDULE 1

NAME OF PURCHASER                  NUMBER OF SHARES              DOLLAR AMOUNT
-----------------                  ----------------              -------------

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