Document:

Exhibit 10.4 Affiliate Partner Agreement, signed on March 26, 2020, by NetPay International, Inc. and Network Merchants, LLC.

 

Exhibit 10.4

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM IF PUBLICLY DISCLOSED. 

[***] INDICATES THAT INFORMATION HAS BEEN REDACTED.

 

 

 

FACe Pricing ProposalProposal

 

January 17th, 2020

 

Netpay International

 

	Presented by: Enterprise Business Development

	 

	 

	 

	Cody Moore 

	 

	Illinois Office

	Title EBDM

	 

	201 Main St. Roselle, IL 60172

	Email: cmoore@nmi.com

	 

	Utah Office

	Ph: 847-352-4850 x 168

	 

	2174 W Grove Parkway, Suite 150

	Fax: 888-829-3631 

	 

	Pleasant Grove, UT 84062

 

Pricing Proposal

 

FACe Facilitation Enablement

 

	FACe

	Setup Fee $0

	 

	Discount rate [***]

	Payment facilitation processing: processor merchant approval and onboarding for credit card and ACH.

	Per Transaction Fee [***]

	Chargeback transaction Fee [***]

 

Note: Fees paid other than via ACH are subject to a $100 convenience fee. Actual branding fees may be higher if branding occurs at a later date. Pricing subject to change.

 

Please sign your name and date below indicating your understanding and acceptance of these fees. Upon receipt of the signed copy of this proposal, we will contact you to configure your Payment Gateway Account so you can begin offering payment gateway services to your merchant customers.

 

	Network Merchants, LLC.

	 

	Netpay International

	 

	 

	 

	/s/ TJ Fund

	 

	/s/ Limor Mamon CFO 26/3/2020

	(Signature)

	 

	NMI (Signature) (Title) (Date)

 

 

AFFILIATE PARTNER AGREEMENT FACe ADDENDUM

 

This Affiliate Partner Agreement FACe Addendum (“FACe Addendum”) amends and supplements that certain Affiliate Partner Agreement, as supplemented and amended, by and between Network Merchants LLC (“Gateway Provider”) and Affiliate Partner (“Agreement”) and is made and entered into as of _December 16_, 2016__ (“Addendum Effective Date”). Gateway Provider owns and operates certain technology (the “FACe Platform”) to assist Payment Facilitators (as such term is defined in the operating rules of the Card Associations (“Rules”)). Affiliate Partner desires to use the FACe Platform, and Gateway Provider desires to provide the FACe Platform to Affiliate Partner subject to the terms and conditions set forth in this Addendum. Therefore, for valuable consideration, the sufficiency of which is acknowledged, the parties desire to supplement and amend the Agreement as follows:

 

1. Definitions. 

 

Words and phrases with initial letters capitalized and not otherwise defined herein shall have the meanings set forth in the Agreement. 

 

2. Amendments to Agreement. 

 

2.1 Amendment to Agreement Section 5. 

 

Section 5 of the Agreement is hereby amended by adding the following to the end thereof:

 

“(a) Gateway Provider will provide Affiliate Partner access to the FACe Platform. The services provided to Affiliate Partner under this FACe Addendum will be included for all purposes in the definition of “Gateway Provider Services” in the Agreement. Affiliate Partner shall be fully responsible for the transactions and activities of all customers and Merchants of Affiliate Partner, Sub-Affiliate Partners and/or Other Affiliate Partners that are boarded through or are utilizing the FACe Platform, and agrees to assume all risk of loss on such transactions and activities and all liability incurred by it and by Gateway Provider with regard thereto. Affiliate Partner will notify Gateway Provider if it is a Payment Facilitator sponsored by a third party other than Vantiv, LLC or Wells Fargo Bank, N.A., and Gateway Provider may, within its sole discretion, provide the functions set forth in this Section with regard to such other third party Payment Facilitator sponsor. Gateway Provider reserves the right to change all or part of the protocols and the network configuration used by Gateway Provider in providing the Gateway Provider Services, and Gateway Provider may modify, upgrade, or otherwise alter the FACe Platform so long as such action is substantially identical across all of Gateway Provider’s similarly situated customers. Affiliate Partner shall randomly check all output information produced by Gateway Provider to determine if such information is correct and will promptly report any errors or failure to perform discovered therein to Gateway Provider. Any such errors must be reported by Affiliate Partner to Gateway Provider within one (1) year of when such error or failure to perform are known to Affiliate Partner. Gateway Provider shall be entitled to rely upon data, information, and instructions provided to Gateway Provider by or on behalf of Affiliate Partner. In no event shall Gateway Provider be liable with respect to any loss, liability, cost, damage, or expense arising out of a claim by Affiliate Partner or by third parties in connection with the data, computations, and services provided and/or performed by Gateway Provider hereunder to the extent that such data, computations, and/or services as to which such claim arises were provided and/or performed in accordance with Affiliate Partner’s written requirements and/or instructions in such regard, including but not limited to, Affiliate Partner’s memoranda, data entry instructions, or computer field instructions. In addition, Gateway Provider will perform the following functions, as more fully described and subject to the terms set forth in the attached FACe Addendum Exhibit A:

 

(i)Seamless Onboarding.  

(ii)Real-Time Sub-Merchant Creation and Management.  

(iii)Know Your Customer Service and Reporting.  

(iv)Sub-Merchant Accounting and Billing Services.  

(v)Sub-Merchant Statements.  

(vi)Reconciliation Reporting.  

(vii)Automated Chargeback Importation and Notification.  

(viii)Consolidated Gateway and FACe Reporting.” 

 

 

2.2 Amendment to Agreement Section 6.2. 

 

Section 6.2 of the Agreement is hereby amended by adding the following to the end thereof:

 

“Affiliate Partner hereby irrevocably authorizes Gateway Provider to initiate via ACH debit entries to that Affiliate Partner depository account identified by Affiliate Partner to Gateway Provider (“Affiliate Partner Account”) in the amount of the fees set forth in the Affiliate Partner Fee Schedule located in the Control Panel of the Gateway Partner Web Site related to the FACe services provided by Gateway Provider and described in the Affiliate Partner Agreement FACe Addendum. Such debits shall occur each month for the previous month’s activity in the amounts owed to Gateway Partner under this Agreement. If such fees, individually or in aggregate with all other fees due to Gateway Provider, accrue to more than $50.00 at any time in any given month, Gateway Provider may invoice Affiliate Partner or debit the Affiliate Partner Account for the full amount due on a more frequent basis, at Gateway Provider’s discretion. This ACH authorization will remain in effect after the later of the termination of the FACe Addendum or the termination of the Agreement, and until Gateway Provider has received written notice terminating this authorization and all of Affiliate Partner’s obligations to Gateway Provider have been paid in full. In the event Affiliate Partner changes the Affiliate Partner Account, it will notify Gateway Provider, and this authorization will apply to the new account. If Affiliate Partner believes that any amount debited was made in error, Affiliate Partner must notify Gateway Provider in writing within 30 days after the debit in question was made. Such written notice must include: (a) Affiliate Partner’s name, (b) the dollar amount of the asserted error, (c) a description of the asserted error, and (d) an explanation of why Affiliate Partner believes an error exists and the cause of it, if known. Failure to notify Gateway Provider party within such time period will result in Gateway Provider not being responsible for investigating or remedying any asserted errors. If Affiliate Partner notifies Gateway Provider after such time period, Gateway Provider shall not have any obligation to adjust the fees for any asserted error.” 

 

2.3 Amendment to Agreement Section 7.  

 

Section 7 of the Agreement is amended by adding the following new Section to the end thereof:

 

“7.6

 

Termination of FACe Addendum.

 

The FACe Addendum may be terminated by either party in accordance with the terms and conditions set forth in Section 7 of the Agreement, without, at such terminating party’s option, terminating the remainder of the Agreement.”

 

2.4 Amendment to Agreement Section 8.1. 

 

Section 8.1 of the Agreement is amended by adding the following to the end thereof:

 

“(c)Affiliate Partner is fully registered as a Payment Facilitator under the Rules; and

 

(d)Affiliate Partner is and will remain compliant with all Card Association, NACHA, and state and federal laws and regulations when utilizing the FACe Platform and Gateway Provider Services.”

 

2.5 Amendment to Agreement Section 9.2. 

 

Section 9.2 of the Agreement is amended by adding the following to the end thereof:

 

“In addition, Affiliate Partner assumes all liability, and shall be responsible for all losses incurred by Affiliate Partner and all losses incurred by Gateway Provider, associated with the FACe Platform functionality used by Affiliate Partner, Sub-Affiliate Partners, and/or Other Affiliate Partners, including but not limited to all liability and losses associated with or arising out of any FACe Event. Affiliate Partner shall be fully liable to Gateway Provider for, and shall completely indemnify, defend and hold harmless Gateway Provider, its Third Party Service Providers, and any of their officers, directors, agents and employees from and against any and all liability, loss, penalty, fine, settlement, cost, damage, injury, or expense, including but not limited to attorneys’ fees and litigation expenses, incurred by Gateway Provider arising out of or related to: any FACe Event; or any access to, use of, activity through, or modification made through Gateway Provider’s Website, the Affiliate Control Panel, and/or the FACe Platform. This Section shall survive termination of this Agreement or Addendum.”

 

 

2.6 Amendment to Agreement Section 10. 

 

Section 10 of the Agreement is amended by adding the following to the end thereof:

 

“Affiliate Partner acknowledges and agrees that the FACe Platform merely transmits data provided by Affiliate Partner or its agents, and that Gateway Provider shall not be liable for the content, results, or implications of any such data, including but not limited to inaccurate or incomplete data, payment amounts and depository account routing information, or the fraudulent use of such data, transmitted through the FACe Platform. Gateway Provider makes no representation or warranty that the FACe Platform will comply with the technological requirements of Affiliate Partner’s sponsorship program, and Affiliate Partner is solely responsible for ensuring that its sponsor institution supports use of the FACe Platform. Any change in the technological requirements of Affiliate Partner’s sponsor institution may result in temporary or permanent communication errors or failures between the FACe Platform and Affiliate Partner’s sponsor institution, and all liability associated with or arising out of such communication errors or failures shall be the sole responsibility of Affiliate Partner, including but not limited to settlement failures, deposit failures, misdirected deposits, unauthorized transactions, unreported transactions, fines or fees associated with the failure to fulfill the functions set forth on FACe Addendum Exhibit A, chargebacks, assessments, and any other fees or expenses.”

 

2.7 Amendment to Agreement Section 11(b). 

 

Section 11(b) of the Agreement is amended by deleting that Section in its entirety and replacing it with the following:

 

“(b) GATEWAY PROVIDER’S TOTAL CUMULATIVE LIABILITY TO AFFILIATE PARTNER, WHETHER IN CONTRACT OR TORT, WITH RESPECT TO ANY CLAIM UNDER THE FACe ADDENDUM OR THIS AGREEMENT SHALL BE LIMITED TO THE AGGREGATE COMPENSATION PAID TO GATEWAY PROVIDER THROUGH THE CLAIMING AFFILIATE PARTNER ACCOUNT DURING THE THIRTY (30) DAYS PRIOR TO THE EVENT RELATED TO ANY SUCH CLAIM OF LIABILITY OR $1,500, WHICHEVER IS LESS.” 

 

2.8 Amendment to Agreement Section 13.1. 

 

Section 13.1 of the Agreement is amended by adding the following to the end thereof:

 

“The FACe Platform and the terms of the FACe Addendum shall be for all purposes the Confidential Information owned by Gateway Provider.”

 

2.9 Amendments to Agreement Exhibit A. 

 

The following definitions in Exhibit A of the Agreement are revised as follows:

 

The definition of “Merchant” in the Agreement is hereby amended by adding the following to the end thereof: “Merchant also means for all purposes under this Agreement any “Sub-Merchant” or “Sponsored Merchant” of Affiliate Partner or of a Sub-Affiliate Partner, as the terms “Sub-Merchant” and “Sponsored Merchant” are defined in the Rules, as such Rule definitions may be amended from time to time.” 

 

The following new definitions are added to Exhibit A: 

 

“FACe Event” means any one or more of the following, whether such event is as a result of the act or omission of Affiliate Partner or is the act or omission of any third party: the unauthorized or fraudulent access or use of the FACe Platform to create Merchant gateway accounts; fraud conducted by a Merchant; inaccurate information entered into the FACe Platform, including but not limited to bank account information, routing information, fee amounts, discount percentages, payment timing, payment amounts, or reserve amounts; communication failures between the FACe Platform and Affiliate Partner’s sponsor institution; unauthorized transactions; unauthorized deposits; fraudulent deposits; misdirected deposits; and all chargebacks, fees and amounts incurred by Gateway Provider attributable thereto. 

 

“Sub-Affiliate Partner” means any third party that utilizes Affiliate Partner’s Merchant Identification Number or whose Merchants are utilizing the Gateway Account.” 

 

 

3. Miscellaneous. 

 

3.1 This FACe Addendum shall be incorporated into and made a part of the Agreement. Except as revised by this FACe Addendum, all provisions of the Agreement remain in full force and effect. If there is any inconsistency between the terms of this FACe Addendum and the terms of any agreement Affiliate Partner has entered into, the terms of this FACe Addendum will prevail. 

 

	Network Merchants LLC

	Netpay International

	 

	 

	By:

	/s/ TJ Fund

	By: 

	/s/ Limor Mamon

	Name: 

	TJ Fund

	Name: 

	Limor Mamon

	Title:

	SVP & General Counsel

	Title: 

	CFO

 

Affiliate Partner Agreement Addendum

Last Revised January, 2016

CONFIDENTIALExhibit 10.1

 

CONSENT AND AMENDMENT
NO. 3 TO 

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS CONSENT AND
AMENDMENT NO. 3 TO AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") is entered into as of October
16, 2020, by and among the Lenders identified on the signature pages hereof (such Lenders, together with their respective
successors and permitted assigns, are referred to hereinafter each individually as a "Lender" and
collectively as the "Lenders"), WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for
each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in
such capacity, "Agent"), JAKKS PACIFIC, INC., a Delaware corporation ("JAKKS"), the
Subsidiaries of JAKKS identified on the signature pages hereof as "Borrowers" (together with JAKKS, each, a
 "Borrower" and individually and collectively, jointly and severally, the "Borrowers").

 

WHEREAS,
Borrowers, Agent, and Lenders are parties to that certain Amended and Restated Credit Agreement dated as of August 9, 2019 (as
amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement");

 

WHEREAS,
Borrowers have informed the Lenders and Agent that Borrowers desire to enter into a certain Amendment No. 2 to First Lien Term
Loan Facility Credit Agreement (the "Term Loan Amendment") which amends the Term Loan Credit Agreement in certain
respects; and

 

WHEREAS,
subject to the terms and conditions of, and in reliance on the representations and warranties of the Borrowers and each other Loan
Party (by its execution and delivery of the attached Consent and Reaffirmation) set forth in, this Amendment, Agent and Lenders
have agreed to amend the Credit Agreement in certain respects, subject to the terms and conditions set forth herein;

 

NOW
THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto agree as follows:

 

1.             Defined Terms. Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to
such terms in the Credit Agreement.

 

2.             Consent.
Subject to the satisfaction of the conditions set forth in Section 6 below, and in reliance upon the representations and
warranties of Borrowers and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) set
forth in Section 7 below, Agent and Lenders hereby consent, for purposes of the Credit Agreement and the Intercreditor
Agreement (including for purposes of Section 3.9 thereof), to Borrowers, Term Loan Agent, and the other parties thereto entering
into the Term Loan Amendment in the form previously delivered to Agent. The foregoing consent is limited to the specifics set
forth herein and shall not be deemed to (x) be a consent or waiver or modification of any other term or condition of the Credit
Agreement or any other Loan Document, or (y) prejudice any right or remedy which Agent or any Lender may now or in the future
have under or in connection with the Credit Agreement or any other Loan Document. For the avoidance of doubt, the foregoing consent
shall constitute and be deemed to be prior written consent of the Agent (in its capacity as ABL Agent under, and as defined in,
the Intercreditor Agreement) to the prepayment of the Term Obligations (as defined in the Intercreditor Agreement) required pursuant
to the terms of Section 3.9 of the Intercreditor Agreement, and to the extent permitted pursuant to the terms of this Amendment
and the Credit Agreement (as amended hereby), all prepayments of the Term Loan Indebtedness effectuated pursuant to Section 2.8(b)(v)
of the Term Loan Credit Agreement shall be deemed to be permitted by the Intercreditor Agreement, and all consents and agreements
contained herein shall be binding upon the Agent and each other Person acting as ABL Agent from time to time in accordance with
the Intercreditor Agreement.

 

     

     

    

 

3.             Amendments to Credit Agreement: Subject to the satisfaction of the conditions set forth in Section 6 below,
and in reliance upon the representations and warranties of Borrowers and each other Loan Party (by its execution and delivery of
the attached Consent and Reaffirmation) set forth in Section 7 below, the Credit Agreement is hereby amended as follows:

 

(a)           Section
1.1 of the Credit Agreement is hereby amended by inserting the following new definitions in proper alphabetical order:

 

"Amendment
No. 3 Effective Date" means October 16, 2020.

 

(b)           Section
6.6(a) of the Credit Agreement is hereby amended by amending and restating clause (ii) thereof in its entirety as set forth below:

 

(ii) prepay, redeem,
defease, purchase, or otherwise acquire any Term Loan Indebtedness (whether optionally or pursuant to a mandatory prepayment),
other than, subject to and in accordance with the Intercreditor Agreement, (I) mandatory prepayments of the Term Loan Indebtedness
in accordance with the terms of the Term Loan Credit Agreement (x) in an amount up to 100% of the Net Cash Proceeds received by
any Borrower in connection with a disposition of any Term Priority Collateral (as defined in the Intercreditor Agreement) and
(y) in an amount up to 100% of the Net Cash Proceeds received by Borrowers not from Term Priority Collateral (as defined in the
Intercreditor Agreement) to the extent required to be applied as a mandatory prepayment to the Term Loans, solely to the extent,
with respect to this clause (y), that (1) all such Net Cash Proceeds are first applied to reduce the outstanding principal balance
of the Revolving Loans and (2) both before and after giving effect to such prepayment of the Term Loan Indebtedness, the Payment
Conditions are satisfied, (II) regularly scheduled payments of the Term Loan Indebtedness pursuant to the Term Loan Credit Agreement
as in effect on the Closing Date or as amended in accordance with the terms of the Intercreditor Agreement and (III) mandatory
prepayments of the Term Loan Indebtedness in accordance with the terms of the Term Loan Credit Agreement (A) on the Amendment
No. 3 Effective Date in an amount equal to $15,000,000, and (B) on a date after the Amendment No. 3 Effective Date and prior to
September 30, 2021, in an aggregate amount not to exceed $5,000,000 to the extent required pursuant to the terms of Section 2.8(b)(v)
of the Term Loan Credit Agreement as in effect on the Amendment No. 3 Effective Date, or

 

4.             Continuing
Effect. Each Borrower and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation)
hereby (a) acknowledges and consents to this Agreement, (b) confirms, covenants and agrees that the Credit Agreement and each
other Loan Document to which it is a party, in each case, is, and shall continue to be, in full force and effect, and is hereby
fully ratified and confirmed in all respects, and (c) confirms, covenants and agrees that, to the extent that any such Loan Document
purports to assign or pledge to the Agent, for the benefit of the Agent and the Lenders, or to grant to the Agent, for the benefit
of the Agent and the Lenders, a security interest in or Lien on any Collateral as security for the Obligations of the Loan Parties
from time to time existing in respect of the Credit Agreement and the other Loan Documents, such pledge, assignment and/or grant
of the security interest or Lien is hereby ratified and confirmed in all respects. Except as expressly set forth in Section
2 and Section 3 of this Amendment, nothing in this Amendment shall constitute a modification or alteration of the terms,
conditions or covenants of the Credit Agreement or any other Loan Document, or a waiver of any other terms or provisions thereof,
and the Credit Agreement and the other Loan Documents shall remain unchanged and shall continue in full force and effect, in each
case as amended hereby. This Amendment shall not be deemed to operate as, or obligate the Agent or the Lenders to grant any, future
consent or modification of any other term or condition of the Loan Documents or any waiver of any term, condition, Default or
Event of Default under the Loan Documents. Nothing contained herein shall constitute a course of conduct or dealing among the
parties. This Amendment is not intended to, does not and shall not (and shall not be construed or deemed to) limit, amend, modify
or otherwise affect any of the Obligations or any other obligations of the Loan Parties under, or relating to, the Loan Documents
(including the Loan Parties’ obligations to repay the Loans in accordance with the terms of the Credit Agreement), all of
which obligations shall remain in full force and effect notwithstanding this Amendment. The execution, delivery and effectiveness
of this Amendment shall not operate as a waiver of any right, power, privilege or remedy of any Lender or the Agent under, or
of any provision of, the Credit Agreement or any other Loan Document. Nothing in this Amendment contained shall be construed as
a substitution or novation of the Obligations outstanding under the Credit Agreement or instruments securing the same, which shall
remain in full force and effect, except solely to the extent expressly modified pursuant to Section 2 and Section 3
hereof.

 

    -2-

     

    

 

5.             Reaffirmation and Confirmation. Each Borrower and each other Loan Party (by its execution and delivery of the attached
Consent and Reaffirmation) hereby ratifies, affirms, acknowledges and agrees that the Credit Agreement and the other Loan Documents
represent the valid, enforceable and collectible obligations of such Borrower and such Loan Party, and further acknowledges that
there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to the Credit Agreement
or any other Loan Document. Each Borrower and each other Loan Party (by its execution and delivery of the attached Consent and
Reaffirmation) hereby agrees that this Amendment in no way acts as a release or relinquishment of the Liens and rights securing
payments of the Obligations. The Liens and rights securing payment of the Obligations are hereby ratified and confirmed by each
Borrower and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) in all respects.

 

6.             Conditions
to Effectiveness. This Amendment shall become effective upon the satisfaction of each of the following conditions precedent,
each in form and substance acceptable to Agent:

 

(a)           Agent
shall have received a fully executed copy of this Amendment (including the Consent and Reaffirmation attached hereto) in form
and substance acceptable to Agent, together with such other documents, agreements and instruments as Agent may require or reasonably
request;

 

(b)           Agent
shall have received a fully executed copy of the Term Loan Amendment, in form and substance acceptable to Agent;

 

(c)           after
giving effect to this Amendment, the representations and warranties contained in this Amendment and in the Credit Agreement (as
amended hereby) and each other Loan Document shall be true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof) on and as of the date of this Amendment, in each case as if made on and as of such date, other than representations
and warranties that expressly relate solely to an earlier date (in which case such representations and warranties were true and
correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof) on and as of such earlier date);

 

(d)           no Default or Event of Default shall have occurred and be continuing on the date hereof, after giving effect to the effectiveness
of this Amendment; and

 

(e)           all
fees and out-of-pocket expenses required to be paid under the Credit Agreement, this Amendment and each other Loan Document (including
the outstanding fees and expenses of the Lenders and the Agent required to be paid hereunder, including without limitation, legal
fees and expenses of Agent and the Lenders), shall have been paid by the Loan Parties, in each case, to the extent such fees and
expenses have been invoiced to Borrowers at least one (1) Business Day prior to the date hereof.

 

7.             Representations and Warranties. In order to induce Agent and Lenders to enter into this Amendment, Borrowers and
each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) hereby jointly and severally represent
and warrant to Agent and Lenders that, after giving effect to this Amendment:

 

(a)           all
representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material
respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof) on and as of the date of this Amendment, in each case as if made on
and as of such date, other than representations and warranties that expressly relate solely to an earlier date (in which case
such representations and warranties were true and correct in all material respects (except that such materiality qualifier shall
not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof)
on and as of such earlier date);

 

(b)           no
Default or Event of Default shall have occurred and be continuing on the date hereof, after giving effect to the effectiveness
of this Amendment; and

 

(c)           this
Amendment and the Credit Agreement, as modified hereby, constitute legal, valid and binding obligations of each such Loan Party
and are enforceable against each such Loan Party in accordance with their respective terms.

 

    -3-

     

    

 

8.             Miscellaneous.

 

(a)           Costs
and Expenses. Borrowers agree to pay on demand all reasonable costs and expenses of Agent and the Lenders (including reasonable
attorneys' fees) incurred in connection with the preparation, negotiation, execution, delivery and administration of this Amendment
and all other instruments or documents provided for herein or delivered or to be delivered hereunder or in connection herewith.
All obligations provided herein shall survive any termination of this Amendment and the Credit Agreement as amended hereby.

 

(b)           Choice of Law and Venue; Jury Trial Waiver; Reference Provision. Without limiting the applicability of any other
provision of the Credit Agreement or any other Loan Document, the terms and provisions set forth in Section 12 of the Credit Agreement
are expressly incorporated herein by reference.

 

(c)           Counterparts.
This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts,
and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by facsimile or other electronic
delivery shall be equally effective as delivery of an original executed counterpart of this Amendment.

 

 (d)           Loan Document. This Amendment constitutes a Loan Document.

 

(e)           No
Third Party Beneficiaries. This Amendment shall be binding upon and inure to the benefit of the respective successors and
permitted assignees of the parties hereto. The terms and provisions of this Amendment are for the purpose of defining the relative
rights and obligations of the parties hereto with respect to the transactions contemplated hereby and no Person shall be a third
party beneficiary of any of the terms and provisions of this Amendment.

 

(f)            Headings.
Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

 

(g)           Severability.
Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

(h)           Further
Assurances. Without limiting and notwithstanding anything else in this Amendment, the Credit Agreement or any other Loan Document,
Borrowers and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) hereby covenant
and agree to execute and deliver any and all further documents, agreements and instruments, and take all further actions, as may
be required under applicable law, or as any Lender or Agent may request in order to effect the purpose or spirit of this Amendment.

 

(i)            Acknowledgments.
Each Borrower and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) hereby
acknowledges that (a) such Loan Party has been advised by counsel in the negotiation, execution and delivery of this
Amendment, (b) neither any Lender nor Agent has any
fiduciary relationship with, or duty, to such Loan Party arising out of or in connection with this Amendment or any of the
other Loan Documents, and the relationship between Agent and any of the Lenders, on one hand, and such Loan Party, on the
other hand, in connection herewith or therewith is solely that of debtor and creditor, and (c) no joint venture is created
hereby or by the other Loan Documents, or otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Loan Parties and the Lenders.

 

    -4-

     

    

 

 9.             Release.

 

(a)           Each
Borrower and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) hereby acknowledges
and agrees that: (a) neither it nor any of its Subsidiaries, Affiliates or other related persons has any claim or cause of action
against any Lender or Agent, or any Lender-Related Person or Agent-Related Person and (b) the Lenders and Agent have heretofore
properly performed and satisfied in a timely manner all of their obligations to the Loan Parties and all of their Subsidiaries
and Affiliates.

 

(b)           In
consideration of the agreements of Agent and Lenders contained herein and in the other Loan Documents, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Borrower and each other Loan Party (by
its execution and delivery of the attached Consent and Reaffirmation), on behalf of itself and its successors, assigns, and its
present and former members, managers, shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys,
employees, agents, legal representatives and other representatives (each Loan Party and all such other Persons being hereinafter
referred to collectively as the "Releasing Parties" and individually as a "Releasing Party"),
hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors
and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers,
attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred
to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands,
actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings,
damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually,
a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected
or unsuspected, both at law and in equity, which any such Loan Party or any of their respective successors, assigns, or other
legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or
by reason of any circumstance, action, cause or thing whatsoever in relation to, or in any way in connection with any of the Credit
Agreement, or any of the other Loan Documents or transactions thereunder or related thereto which arises at any time on or prior
to the day and date of this Amendment.

 

(c)           Each
Borrower and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) understands, acknowledges
and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction
against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such
release.

 

(d)           Each
Borrower and each other Loan Party (by its execution and delivery of the attached Consent and Reaffirmation) agrees that no fact,
event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in
any manner the final, absolute and unconditional nature of the release set forth above.

 

(e)           As
to each and every claim released hereunder, each Borrower and each Loan Party hereby represents that it has received the advice
of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of
any applicable federal or state law, if any, pertaining to general releases after having been advised by its legal counsel with
respect thereto. The Loan Parties further expressly acknowledge and agree that this general release shall have full force and
effect notwithstanding the occurrence of a breach of the terms of this Amendment or any Event of Default or Default under the
Credit Agreement.

 

(f)            Each
Releasing Party hereby absolutely, unconditionally and irrevocably covenants and agrees with and in favor of each Releasee that
it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released,
remised and discharged by any Releasing Party pursuant to this Section 8. If any Releasing Party violates the foregoing
covenant, each Loan Party, jointly and severally, for itself and its successors and assigns, and its present and former members,
managers, shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, advisors, employees,
agents, legal representatives and other representatives, agrees to pay, in addition to such other damages as any Releasee may
sustain as a result of such violation, all attorneys' fees and costs incurred by any Releasee as a result of such violation.

 

[signature
pages follow]

 

 

Signature Page to Consent and Amendment No. 3 to Amended and
Restated Credit Agreement

     

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized
and delivered as of the date first above written.

 

	 	JAKKS PACIFIC, INC.,
	 	a Delaware corporation, as a Borrower and Borrower Representative
	 	 
	 	By:  	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	DISGUISE, INC.,
	 	a Delaware corporation, as a Borrower
	 	 
	 	By:	/s/ Stephen G. Berman	 
	 	Name: Stephen G. Berman
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	JAKKS SALES LLC,
	 	a Delaware limited liability company, as a Borrower
	 	 
	 	By:	/s/ Stephen G. Berman	 
	 	Name: Stephen G. Berman
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	MAUI, INC.,
	 	an Ohio corporation, as a Borrower
	 	 
	 	By:	/s/ Stephen G. Berman	 
	 	Name: Stephen G. Berman
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	MOOSE MOUNTAIN MARKETING, INC.,
	 	a New Jersey corporation, as a Borrower
	 	 
	 	By:	/s/ Stephen G. Berman	 
	 	Name: Stephen G. Berman
	 	Title: Chief Executive Officer

 

 

 

Signature Page to Consent and Amendment No. 3 to Amended and
Restated Credit Agreement

     

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, a

 national banking association, as Agent and as a Lender
	 	 
	 	By: 	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Its Authorized Signatory

 

 

 

Signature Page to Amendment No. 2 to Amended and Restated Credit
Agreement

     

     

    

 

CONSENT AND
REAFFIRMATION

 

Each
of the undersigned, as a Guarantor and a Loan Party, hereby (i) acknowledges receipt of a copy of the foregoing Consent and
Amendment No. 3 to Amended and Restated Credit Agreement (terms defined therein and used, but not otherwise defined, herein
shall have the meanings assigned to them therein); (ii) consents to each Borrower's execution and delivery thereof; (iii) agrees
to be bound thereby, including Section 9 of the foregoing Consent and Amendment No. 3 to Amended and Restated
Credit Agreement; and (iv) affirms that nothing contained therein shall modify in any respect whatsoever any Loan Documents
to which the undersigned is a party and reaffirms that each such Loan Document is and shall continue to remain in full force and
effect. Although each Loan Party has been informed of the matters set forth herein and has acknowledged and agreed to same, each
Loan Party understands that Agent and Lenders have no obligation to inform such Loan Party of such matters in the future or to
seek such Loan Party's acknowledgment or agreement to future waivers, consents or amendments, and nothing herein shall create
such a duty.

 

	 	JAKKS PACIFIC (H.K.) LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director
	 	 
	 	 
	 	DISGUISE LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director
	 	 
	 	 
	 	A.S. DESIGN LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director
	 	 
	 	 
	 	KIDS ONLY, LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director

 

 

 

Signature Page to Consent
 and Reaffirmation to Consent and Amendment No. 3 to Amended and Restated Credit
Agreement

     

     

    

 

	 	JAKKS PACIFIC (ASIA) LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director
	 	 
	 	 
	 	MOOSE MOUNTAIN TOYMAKERS LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director
	 	 
	 	 
	 	ARBOR TOYS COMPANY LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman 	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director
	 	 
	 	 
	 	TOLLYTOTS LIMITED, as a Guarantor
	 	 
	 	By:  	/s/ Stephen G.
    Berman 	 
	 	Name: Stephen G. Berman
	 	Title: CEO/Director

 

 

 

Signature Page to Consent
 and Reaffirmation to Consent and Amendment No. 3 to Amended and Restated Credit
Agreement

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