Document:

Exhibit 10.1

 

 

 

December 27, 2017

 

Mr. Joel M. Bennett

c/o JAKKS Pacific, Inc.

2951 28th Street

Santa Monica, CA 90405

 

 

Dear Joel:

 

As we have discussed, the term of the Employment Agreement dated
October 28, 2011 between you ( “Executive” or “you”) and JAKKS Pacific, Inc. (the “Company”
or “JAKKS”), which was extended by agreements dated February 18, 2014 and June 11, 2015 ( collectively, the
“Employment Agreement”), will not be renewed after its expiration on December 31, 2017. This letter (this “Letter
Agreement”) memorializes our discussions with respect to the continuation of your services as Chief Financial Officer
of JAKKS through the Separation Date (as defined below) and your separation from employment (the “Separation”)
by JAKKS on the Separation Date.

 

Separation Date. For purposes of this Letter Agreement,
“Separation Date” shall mean February 28, 2018, or at the Company’s option, exercised by the Company’s
Chief Executive Officer, through such later date that the Company files its Form 10-K for the 2017 fiscal year, but in any event
no later than March 15, 2018, under the same compensation and other financial benefits as exist under the Employment Agreement
notwithstanding its expiration.

 

Services. Until the Separation Date, or such earlier
date that the Company’s Chief Executive Officer advises you that a successor as Chief Financial Officer has been hired and
will commence to serve in such office (the “Service Date”), you will continue to serve as Chief Financial Officer
of the Company, and from the Service Date until the Separation Date you will assist the Company and the new Chief Financial Officer
in such person’s transition to such office. After the Service Date and until the Separation Date, you shall be employed by
the Company as an Executive Advisor, reporting to the Company’s Chief Executive Officer or his designee, with such duties
as shall reasonably be requested of you by the Chief Executive Officer or his designee. You agree to tender your resignation from
any and all positions you occupy as an officer of the Company and as an officer, director or manager of any direct or indirect
subsidiary of the Company by signing a resignation letter when requested by the Company.

 

Separation Payments. Upon the Separation Date:

 

		(i)	Company will pay you a Separation payment in a lump sum of $505,000.00 (your current annual base salary), less applicable withholding
tax and any similar payroll deductions required by law. If you have not commenced other similar employment or retention as a full
time consultant by the first anniversary of the Separation Date (the “Anniversary Date”), you will receive payments
computed at the annual rate of $505,000.00 during the period commencing as of the Anniversary Date and ending three (3) months
after the Anniversary Date or such earlier date that your other similar employment or consulting retention commences, payable in
substantially equal installments no less often than monthly, in accordance with Company’s normal payroll practices, less
applicable withholding tax and any similar payroll deductions required by law.

 

    	 

    
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		(ii)	Company will pay you $67,978.40 representing 35 days of accrued and unpaid vacation and personal days through December 31,
2017, less any days of vacation and personal days taken between the date of this Letter Agreement and the Separation Date,, less
applicable withholding tax and any similar payroll deductions required by law.

 

		(iii)	Company will pay you $12,000.00 in a lump sum, less applicable withholding tax and any similar payroll deductions required
by law, which lump sum payment has been computed based on the automobile Allowance of $500.00 per payroll period payable to you
under your Employment Agreement.

 

		(iv)	22,835 Restricted Stock Units (“RSUS”) heretofore issued to you by the Company which have not fully vested
as of the date of this Letter Agreement shall fully vest as follows: 5,709 RSUS shall vest on January 2, 2018 and 17,126 RSUS shall
vest of the Separation Date, and any other RSUS (including but not limited to 34,252 other RSUS), rights to acquire shares of common
stock or other securities of the Company, or securities convertible into common stock or other securities of the Company, or options,
warrants or other rights to acquire common stock or other securities of the Company which have not vested as of December 31, 2017,
shall terminate.

 

		(v)	The Company will maintain or reimburse you for the cost of maintaining your family coverage under the Company’s medical
insurance program (including the life insurance coverage) on the same terms as is generally available to other employees (except
that the additional “Armada” coverage available to you and certain other executive officers shall only be maintained
for you by the Company until March 31, 2018 after which date the Company shall not be obligated to maintain such “Armada”
coverage), through February 28, 2019, provided, however, if you obtain substantially similar health insurance coverage from another
person (meaning approximately equivalent out of pocket costs, deductibles, and coverage), the Company’s obligations to reimburse
you for such coverage will cease. The Company will provide COBRA notice to you so that you may elect coverage commencing on the
first date of the month following your qualifying event. You will promptly notify the Company if health insurance coverage becomes
available to him from another person, and provide sufficient details about the terms of such coverage available to you so that
it can be determined whether such coverage is substantially similar to the coverage available under the Company’s medical
insurance program.

 

Confidentiality. You acknowledge and agree that you remain
bound to any and all policies agreed to previously, including but not limited to those relating to protection of the Company’s
confidential and proprietary information, including Section 9 of the Employment Agreement. You agree not to reveal, disclose, or
publicize, or cause to be revealed, disclosed, or publicized, to anyone the terms of, or the fact that I signed, this document,
except as required by law or by my accountant or counsel. You further represent that you are signing this document knowingly and
voluntarily and have been given adequate time to consult with counsel of your choosing prior to signing it. The foregoing shall
not restrict Executive or Company in responding in a truthful manner to any subpoena or other court or governmental inquiry.

 

    	 

    
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Non-disparagement. Executive agrees that he will not
engage in any conduct injurious to the reputation or interest of the Company or its affiliates, including but not limited to: (i)
divulging, communicating, or in any way making use of any confidential or proprietary information of the Company or its affiliates
acquired in the performance of Executive’s duties with the Company; and (ii) disparaging, criticizing, or denigrating the
Company or its affiliates or their respective officers, directors, or employees (or inducing or encouraging others to do so). The
Company agrees not to disparage Executive. The Company, by Stephen Berman, has agreed to provide Executive with a letter of gratitude
relating to Executive’s years of service.

 

Cooperation. Executive shall cooperate with the Company
to respond to requests by the Company for information concerning matters, including but not limited to, financial and accounting
involving facts or events relating to the Company that are within his knowledge. Company will reimburse Executive for all reasonable
out-of-pocket expenses incurred in complying with the obligations of this paragraph.

 

Litigation. Executive agrees to the fullest extent permitted
by law not to commence, maintain, prosecute, or participate in any action or proceeding in any court or agency against the Company
or its affiliates with respect to any act, omission, transaction, or occurrence up to and including the Separation Date; (ii) not
to instigate, encourage, assist or participate in any action or proceeding commenced by anyone else against the Company or its
affiliates; and (iii) not to seek or accept any award or settlement from any source or proceeding with respect to any claim or
right covered by this Letter Agreement. If Executive breaches the provisions of this paragraph, the Company will be entitled to
cease making any further payment to Executive pursuant to this Letter Agreement without limiting any other legal or equitable remedies
that may be available to the Company.

 

Governing Law. This Letter Agreement shall be construed,
interpreted, and governed in accordance with the laws of the State of California, without reference to rules relating to conflicts
of law, irrespective of the fact that a party may be or become a resident of a different state. The provisions of this Letter Agreement
are severable and in the event that any provision of this Letter Agreement is determined to be invalid or unenforceable in any
respect by a court of competent jurisdiction, the remaining provisions of this Letter Agreement will not be affected, but will,
subject to the discretion of such court, remain in full force and effect, and any invalid or unenforceable provision will be deemed,
without further action on the part of the parties hereto, amended and limited to the extent necessary to render the same valid
and enforceable.

 

Voluntary Agreement. Executive acknowledges that, by
his free and voluntary act of signing below, he knowingly and voluntarily agrees to all the terms of this Letter Agreement and
intends to be legally bound thereby, and that he has not relied upon any representation, warranty, or promise of the Company or
its affiliates or their respective officers or directors in entering into this Letter Agreement that is not expressly set forth
in this Letter Agreement. Executive agrees and acknowledges that he has read this Letter Agreement carefully, fully understands
all of its provisions and agrees to all of its terms voluntarily, and has +had the opportunity to consult with his own counsel.
No amendment, supplement, modification, waiver or termination of this Agreement will be binding unless executed in writing by the
party to be bound thereby

 

    	 

    
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Release. By signing this Letter Agreement, Executive,
for himself and his heirs, executors, administrators, successors, assigns, agents, and representatives, in consideration of the
payments and benefits set forth in this Letter Agreement, hereby does release, remise, acquit, and forever discharge the Company
and its affiliates, and their respective current and former officers, directors, shareholders, attorneys and agents, and the heirs,
executors, administrators, receivers, successors, and assigns of all of the foregoing, from any and all claims, demands, causes
of action, actions, suits, promises, damages, liabilities, and judgments whatsoever, whether known or unknown, in law or equity,
which Executive, his heirs, executors, administrators, successors, assigns, agents, and representatives ever had, now have, or
hereafter can, shall, or may have for, upon, or by reason of any matter, cause, or thing whatsoever, to and including the date
of execution of this document by Executive, including, but not limited to, any and all claims for damages, attorneys’ fees,
or costs under (i) Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq. (including the Equal Employment
Opportunity Act of 1972); the Age Discrimination In Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq.; the Older
Workers Benefit Protection, 29 U.S.C. § 626(f)(1); the Civil Rights Act of 1991, 42 U.S.C. § 1981(a) et seq.; the Americans
with Disabilities Act, 42 U.S.C. § 12101 et seq.; The Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; the Family and
Medical Leave Act, 29 U.S.C. § 2601 et. seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C., Section 701, et seq.;
the Employee Retirement Income Security Act of 1974, as amended; the Equal Pay Act, 29 U.S.C. Section 206(d); the Worker Adjustment
and Retraining Notification Act of 1988; the California Fair Employment and Housing Act, and the California Labor Code and any
and all other federal, state and local fair employment and civil rights laws, including but not limited any laws, rules or regulations
of the State of California; (ii) breach of contract (express or implied), retaliation, wrongful discharge, detrimental reliance,
defamation, any claims for violation of privacy rights and denial of equal rights; (iii) the United States Constitution; and the
Constitution of the State of California and the Constitutions of any other state or country; all federal, state, or municipal statutes
or ordinances prohibiting discrimination or pertaining to employment; and (iv) any contract, tort, or common law theories with
respect to the Executive’s hiring by the Company, the terms and conditions of his employment with the Company, including
but not limited to any claims for salary, bonus, compensation, benefits, or any other interest in the Company and its profits,
earnings or revenues, and the termination of his employment with the Company. Among other things, these laws prohibit discrimination
in employment on the basis of race, sex, color, religion, age, national origin or disability. This Release and waiver also includes
any claims for wrongful discrimination, breach of contract, infliction of emotional distress, attorneys’ fees, or any other
contract claim arising out of the Employment Agreement.

 

In order to implement a full and complete release, the undersigned
expressly waive and relinquish all rights and benefits afforded by California Civil Code section 1542, the text of which is set
forth below, which waiver and relinquishment includes all claims which I do not know or suspect to exist in my favor at the time
of executing this release, which if known by me, would materially affect this letter agreement and release of the Company. California
Civil Code Section 1542 provides as follows:

 

    	 

    
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"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF

 

KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR
HER SETTLEMENT WITH DEBTOR."

 

You acknowledge that you may later discover claims or facts
in addition to or different from those which you now know or believe to exist with regards to the subject matter of this Letter
Agreement, and which, if known or suspected at the time of executing this Letter Agreement, may have materially affected its terms.
Nevertheless, you waive any and all claims that might arise as a result of such different or additional claims or facts.

 

Counterparts. This Letter Agreement may be executed in
counterparts, each of which shall be deemed to be an original of the same agreement, and facsimile and “pdf” signatures
shall be deemed original and binding for purposes of this Letter Agreement.

 

Revocation. EXECUTIVE ACKNOWLEDGES THAT HE HEREBY
HAS BEEN ADVISED IN WRITING: (a) TO CONSULT WITH COUNSEL PRIOR TO SIGNING THIS LETTER AGREEMENT, AND (b) THAT BEFORE SIGNING THIS
LETTER AGREEMENT, HE HAS TWENTY-ONE (21) DAYS TO CONSIDER IT AFTER HIS RECEIPT OF IT, WHICH TWENTY-ONE (21) DAY PERIOD CAN BE WAIVED
AT ANY TIME PRIOR TO EXPIRATION OF SUCH PERIOD BY EXECUTIVE SIGNING THIS LETTER AGREEMENT.

 

IN ADDITION, EXECUTIVE ACKNOWLEDDGES THAT FOR SEVEN (7) DAYS
AFTER HIS SIGNING BELOW, HE MAY REVOKE MY ASSENT TO THIS AGREEMENT ONLY BY GIVING WRITTEN NOTICE OF REVOCATION TO THE VICE PRESIDENT
OF HUMAN RESOURCES OF THE COMPANY WITHIN THE SEVEN (7) DAY PERIOD FOLLOWING MY SIGNING. THE WRITTEN REVOCATION NOTICE MUST BE DELIVERED
BY EMAIL TO THE VICE PRESIDENT OF HUMAN RESOURCES OF JAKKS PACIFIC, INC. AT EMORGAN@JAKKS.NET ON OR BEFORE THE SEVENTH (7TH) DAY
AFTER EXECUTIVE’S EXECUTION OF THE AGREEMENT. THE EFFECTIVE DATE OF THIS AGREEMENT SHALL BE THE EIGHTH DAY AFTER THE DATE
NOTED BELOW ON WHICH EXECUTIVE SIGNED THIS AGREEMENT (IF HE HAS NOT EARLIER REVOKED IT).

 

	 	Sincerely,	 	 
	 	JAKKS Pacific, Inc.	 
	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:	Stephen Berman	 
	 	 	Title:	Chairman, CEO & President	 

 

	Acknowledged & Agreed:
	 	 	 
	 	 	 
	 	 
	Joel M. Bennett	 
	Date:Exhibit 10.2

 

 

 

JAKKS ANNOUNCES CHIEF FINANCIAL OFFICER
WILL STEP DOWN

 

SANTA MONICA, CA – December 29, 2017 – JAKKS
Pacific, Inc. (NASDAQ: JAKK) today announced that Joel M. Bennett, the Company’s Chief Financial Officer, will be stepping
down from his position at the Company. The Company also announced that it has commenced an external search to identify a new CFO,
and, in order to arrange for a smooth transition, Mr. Bennett will continue as the Company’s Chief Financial Officer until
completion of the Company’s annual report for the 2017 fiscal year or such earlier date that a successor has been named and
transitioned to the office of Chief Financial Officer.

 

Stephen Berman, Chairman and Chief Executive Officer, stated:
“We appreciate the 22 years of service provided to the Company by Mr. Bennett and wish him well in pursuing other opportunities.”

 

 

About JAKKS Pacific, Inc.

JAKKS Pacific, Inc. (NASDAQ: JAKK) is a leading designer, manufacturer
and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS
Pacific’s popular proprietary brands include BIG-FIGSTM, XPV®, Max TowTM and Friends, Disguise®, Moose
Mountain®, Funnoodle®, Maui®, Kids Only!®; a wide range of entertainment-inspired products featuring premier licensed
properties; and, C’est MoiTM, a youth skincare and make-up brand. Through JAKKS Cares, the company’s commitment
to philanthropy, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow
us on Instagram (@jakkstoys), Twitter (@jakkstoys) and Facebook (JAKKS Pacific).

 

© 2017 JAKKS Pacific,
Inc. All rights reserved.

 

Forward Looking Statements

This press release may contain “forward-looking statements”
(within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates
and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees
of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes
and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but
not limited to, those described above, changes in demand for JAKKS' products, product mix, the timing of customer orders and deliveries,
the impact of competitive products and pricing, and difficulties with integrating acquired businesses. The “forward-looking
statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update
any of them to reflect events or circumstances after the date of this release.

 

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