Document:

smlp-ex102_7.htm

 

EXHIBIT 10.2

Execution Copy

 

 

SECOND AMENDMENT TO THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

AND

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

GUARANTEE AND COLLATERAL AGREEMENT

THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT AND FIRST AMENDMENT TO SECOND AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT (this “Amendment”), dated as of June 26, 2019, is made by and among Summit Midstream Holdings, LLC, a limited liability company organized under the laws of Delaware (the “Borrower”), each of the other Loan Parties party hereto, WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) and collateral agent (in such capacity, together with its successors in such capacity, the “Collateral Agent”) under the hereinafter-defined Credit Agreement, and the Lenders party hereto. 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Administrative Agent, the Collateral Agent, the lenders from time to time party thereto (the “Lenders”) and the other parties from time to time party thereto have entered into that certain Third Amended and Restated Credit Agreement, dated as of May 26, 2017 (as amended by that certain First Amendment to Third Amended and Restated Credit Agreement, dated as of September 22, 2017, and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, the Borrower, the other Loan Parties party thereto from time to time and the Collateral Agent have entered into that certain Second Amended and Restated Guarantee and Collateral Agreement, dated as of May 26, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Collateral Agreement”);

WHEREAS, the Borrower has requested that the Lenders agree to make certain amendments to the Credit Agreement and the Collateral Agreement; and

WHEREAS, the Lenders party hereto have agreed to such amendments on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties herein set forth, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Borrower, the other Loan Parties party hereto, the Collateral Agent, the Administrative Agent and the undersigned Required Lenders do hereby agree as follows:

 

 

1.Amendments to Credit Agreement.

(a)Section 1.01 of the Credit Agreement is hereby amended as follows:

(i)Each of the following definitions are amended and restated in their entirety as follows:

“Excluded Assets” shall mean (a) Equity Interests in any Person (other than (i) the Borrower, any Subsidiary Loan Party, any Wholly Owned Subsidiary or any Included Entity, (ii) the Ohio Joint Ventures, to the extent owned by a Loan Party and (iii) the Double E Joint Venture, to the extent owned by a Loan Party) to the extent not permitted to be pledged by the terms of such Person’s constitutional or joint venture documents (and, to the extent any such prohibition or limitation is removed or the applicable Person has obtained any required consents to eliminate or waive any such restrictions, such Equity Interests shall cease to be Excluded Assets), (b) Equity Interests constituting an amount greater than 65% of the voting Equity Interests of any Foreign Subsidiary or any Domestic Subsidiary substantially all of which Subsidiary’s assets consist of the Equity Interest in “controlled foreign corporations” under Section 957 of the Code, (c) Equity Interests or other assets that are held directly by a  Foreign Subsidiary and (d) any “intent to use” applications for trademark or service mark registrations filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. §1051, unless and until an “Amendment to Allege Use” or a “Statement of Use” under Section 1(c) or Section 1(d) of the Lanham Act has been filed, solely to the extent that such a grant of a security interest therein prior to such filing would impair the validity or enforceability of any registration that issues from such “intent to use” application.

“Material Project” shall mean the construction or expansion of any capital project by the Borrower, any Restricted Subsidiary or the Double E Joint Venture, the aggregate capital cost of which (inclusive of capital costs expended prior to the acquisition thereof) is reasonably expected by the Borrower to exceed, or exceeds, $10,000,000.

“Non-Recourse Debt” shall mean Indebtedness (a) as to which neither the Borrower nor any of its Restricted Subsidiaries (i) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (ii) is directly or indirectly liable as a guarantor or otherwise or (iii) constitutes the lender; (b) no default with respect to which (including any rights that the holders of such Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would permit, upon notice, lapse of time or both, any holder of any other Indebtedness of the Borrower or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to its stated maturity; and (c) as to which the lenders of such Indebtedness have been notified in writing that they will not 

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have any recourse to the Equity Interests or other Property of the Borrower or its Restricted Subsidiaries; provided, that the Borrower or any Restricted Subsidiary may pledge the Equity Interests it owns in any Subsidiary that is not (x) a Restricted Subsidiary, (y) an Included Entity or (z) the Double E Joint Venture in order to secure such Indebtedness.

“Other Entity Unadjusted EBITDA”  shall mean, for any Person for any period, the EBITDA for such Person for such period, determined in accordance with the definition of EBITDA mutatis mutandis for such Person but without including, in each case for such period, (a) any Material Project EBITDA Adjustments, (b) any EBITDA attributable to an Included Entity, (c) any Specified Equity Contribution, (d) any adjustments related to the Ohio Joint Ventures described in (i) clause (e)(ii) of the definition of “Consolidated Net Income” or (ii) the last paragraph of the definition of “EBITDA” or (e) any adjustments related to the Double E Joint Venture described in (i) clause (e)(iii) of the definition of “Consolidated Net Income” or (ii) the last paragraph of the definition of “EBITDA”.  

“Unadjusted EBITDA” shall mean, for any period, the EBITDA for such period, determined without including any Material Project EBITDA Adjustments, any EBITDA attributable to an Included Entity, any Specified Equity Contribution, any EBITDA attributable to any Ohio Joint Venture, any EBITDA attributable to the Double E Joint Venture or any EBITDA attributable to any payment described in clause (e) of the definition of “Consolidated Net Income”, in each case for such period.  

(ii)By adding the following defined terms in appropriate alphabetical order:

“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

“Covered Entity” shall mean any of the following:

(i)a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

(ii)a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

(iii)a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

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“Covered Party” shall have the meaning assigned to such term in Section 9.26.

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“Double E Construction Management Agreement” shall mean that certain Construction Management Agreement, dated as of June 26, 2019, by and between Summit Midstream Permian II, LLC, a Delaware limited liability company, and the Double E Joint Venture.

“Double E Contribution Agreement” shall mean that certain Contribution Agreement, dated as of June 26, 2019, by and among Summit Permian Transmission, LLC, a Delaware limited liability company, ExxonMobil Permian Double E Pipeline LLC, a Delaware limited liability company, and the Double E Joint Venture.

“Double E Guaranty” shall mean that certain Guaranty Agreement, dated as of June 26, 2019, by the MLP Entity in respect of the Double E Joint Venture.

“Double E Joint Venture” shall mean Double E Pipeline, LLC, a Delaware limited liability company.

“Double E Joint Venture Conditions” shall mean, (a) at all times in the relevant calculation period, (i) the Double E Joint Venture does not at any time incur or have, (x) in the aggregate, greater than U.S.$20.0 million of indebtedness for borrowed money or (y) material Liens other than Liens permitted by the limited liability company agreement of the Double E Joint Venture in existence on the Second Amendment Effective Date; provided that no Loan Party, in its role as member or manager of the Double E Joint Venture, shall vote to approve any Lien on any assets of the Double E Joint Venture if the imposition or existence of such Lien would result in Liens approved pursuant to this proviso in excess of U.S.$20.0 million at any time on assets of the Double E Joint Venture in the aggregate, (ii) the Equity Interests of the Double E Joint Venture that are not owned by the Borrower or a Restricted Subsidiary have no preferential rights to dividends or other distributions over the Equity Interests owned by the Borrower or a Restricted Subsidiary (other than any preferential rights to dividends or other distributions set forth in the Double E LLC Agreement as in effect on the Second Amendment Effective Date), (iii) the Borrower’s and each applicable Restricted Subsidiary’s Equity 

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Interests in the Double E Joint Venture are pledged in accordance with the Collateral and Guarantee Requirement and (iv) the Borrower or a Restricted Subsidiary shall own Equity Interests in the Double E Joint Venture sufficient to retain negative control with respect to matters requiring Required Approval (as defined in the Double E LLC Agreement as in effect on the Second Amendment Effective Date) (but in no event to be less than a 20% Percentage Interest (as defined in the Double E LLC Agreement as in effect on the Second Amendment Effective Date)) and (b) none of the Borrower or any Restricted Subsidiary has taken any action that would result in a breach of Section 6.09(f) at any time prior to the date of determination.

“Double E Joint Venture Distribution Amount” shall have the meaning assigned to such term in the definition of “Consolidated Net Income”.

“Double E LLC Agreement” shall mean that certain Amended and Restated Limited Liability Company Agreement of the Double E Joint Venture, dated as of June 26, 2019.

“Double E Operations and Maintenance Agreement” shall mean that certain Operations and Maintenance Agreement, dated as of June 26, 2019, by and between Summit Midstream Permian II, LLC, a Delaware limited liability company, and the Double E Joint Venture.

“Double E Transaction Documents” shall mean the Double E Contribution Agreement, the Double E LLC Agreement, the Double E Construction Management Agreement, the Double E Operations and Maintenance Agreement and the Double E Guaranty.

“Initial Adjusted EBITDA Calculation” shall have the meaning assigned to such term in the definition of “EBITDA”.

“QFC” shall have the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

“QFC Credit Support” shall have the meaning assigned to such term in Section 9.26.

“Second Amendment” shall mean that certain Second Amendment to Third Amended and Restated Credit Agreement, dated as of June 26, 2019, by and among the Borrower, the Subsidiary Loan Parties, the MLP Entity, the Administrative Agent, the Collateral Agent and the Lenders party thereto.

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“Second Amendment Effective Date” shall mean the first date on which all of the conditions specified in Section 4 of the Second Amendment have been satisfied.

“Supported QFC” shall have the meaning assigned to such term in Section 9.26. 

“U.S. Special Resolution Regimes” shall have the meaning assigned to such term in Section 9.26.

(iii)The definition of “Collateral and Guarantee Requirement” in the Credit Agreement is amended by amending and restating sub-clause (d) thereof in its entirety as follows:

 

“(d)  all Equity Interests of (i) each Loan Party (other than the MLP Entity), (ii) each Included Entity and (iii) each Ohio Joint Venture and the Double E Joint Venture (in the case of this clause (iii), to the extent directly owned by any Loan Party) shall have been pledged (or shall be pledged concurrently with the actions making such Equity Interests subject to this provision) in accordance with the Collateral Agreement, except, in each case, to the extent that a pledge of such Equity Interests is not permitted under Section 9.21, and the Collateral Agent shall have received (or shall receive concurrently with the actions making such Equity Interests subject to this provision) all certificates or other instruments (if any) representing such Equity Interests, together with stock powers or other instruments of transfer with respect thereto endorsed in blank, or shall have otherwise received a security interest over such Equity Interests satisfactory to the Collateral Agent;”

(iv)The definition of “Consolidated Net Income” in the Credit Agreement is amended by amending sub-clause (e) by amending and restating (e)(i) in its entirety as follows, adding “and” at the end of (e)(ii) and inserting a new (e)(iii) as follows:

 

“(i)any Person that is not (A) a Restricted Subsidiary, (B) an Ohio Joint Venture, (C) an Included Entity or (D) the Double E Joint Venture, or that is accounted for by the equity method of accounting,”

 

“(iii)the Double E Joint Venture (such amount for such period is hereinafter referred to as the “Double E Joint Venture Distribution Amount”); provided, that (A) the inclusion of this clause (e)(iii) for such calculation period is subject to the final sentence in the definition of “EBITDA”, (B) the Double E Joint Venture Distribution Amount for any quarter shall include cash dividends, cash distributions and other payments paid in cash to (or converted into cash by) the Borrower or a Restricted Subsidiary pursuant to this clause (e)(iii) in respect of such period whether such amount was actually received during the period or thereafter, but 

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only to the extent received prior to the date of calculation, and (C) the Double E Joint Venture Conditions shall be satisfied for such calculation period; provided, further, that in no event shall any distribution by the Double E Joint Venture of the Exxon Equity Option Price (as defined in the Double E LLC Agreement on the Second Amendment Effective Date) to the Borrower or any Restricted Subsidiary be included in Consolidated Net Income for any calculation period,”

 

(v)The definition of “EBITDA” in the Credit Agreement is amended by amending and restating the last paragraph thereof in its entirety as follows:

 

“For each calculation period, in order to determine EBITDA for such period, the Borrower shall make two separate calculations of EBITDA, with the first (x) to include in such calculation an amount equal to the Ohio Joint Venture Aggregate EBITDA for such calculation period, but excluding the Ohio Joint Venture Distribution Amount for such calculation period; provided, that (A) the sum of (i) all Material Project EBITDA Adjustments for such calculation period, (ii) all EBITDA for such calculation period that is attributable to Included Entities, (iii) all payments described in clause (e)(i) of the definition of “Consolidated Net Income” included in EBITDA for such calculation period and (iv) the Ohio Joint Venture Aggregate EBITDA for such calculation period shall not exceed 30% of Unadjusted EBITDA for such period and, for the avoidance of doubt, if the sum of clauses (i) through (iv) of this clause (A) exceeds 30% of Unadjusted EBITDA for such period, the calculated amount pursuant to this clause (A) shall be deemed to be the amount equal to 30% of Unadjusted EBITDA (such amount calculated pursuant to clause (A) means the “Initial Adjusted EBITDA Calculation”) and (B) the sum of (i) the Initial Adjusted EBITDA Calculation for such calculation period and (ii) the Double E Joint Venture Distribution Amount for such calculation period shall not exceed 50% of Unadjusted EBITDA for such period and, for the avoidance of doubt, if the sum of clauses (i) and (ii) of this clause (B) exceeds 50% of Unadjusted EBITDA for such period, the calculated amount pursuant to this clause (x) shall be deemed to be the amount equal to 50% of Unadjusted EBITDA (such amount calculated pursuant to this clause (x) means the “Proportional EBITDA Amount”), and the second (y) to include in such calculation the Ohio Joint Venture Distribution Amount for such calculation period, but excluding the Ohio Joint Venture Aggregate EBITDA for such calculation period; provided, that the sum of (i) the Ohio Joint Venture Distribution Amount for such calculation period, (ii) the Double E Joint Venture Distribution Amount for such calculation period and (iii) the amount of Material Project EBITDA 

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Adjustment attributable to the Double E Joint Venture, pursuant to clause (a)(ii) of the definition of Material Project EBITDA for such calculation period shall not exceed 50% of Unadjusted EBITDA for such period and, for the avoidance of doubt, if the sum of the foregoing clauses (i) through (iii) exceeds 50% of Unadjusted EBITDA for such period, the calculated amount pursuant to this clause (y) shall be deemed to be the amount equal to 50% of Unadjusted EBITDA (such amount calculated pursuant to this clause (y) means the “Distribution EBITDA Amount”).  The EBITDA of the Borrower for such calculation period shall be the greater of (A) Proportional EBITDA Amount for such calculation period and (B) the Distribution EBITDA Amount for such calculation period.”

(vi)The definition of “Material Project EBITDA Adjustment” in the Credit Agreement is amended by amending and restating clause (a) thereof in its entirety as follows:

 

“(a)prior to the date on which a Material Project has achieved commercial operation (the “Commercial Operation Date”) (but including the fiscal quarter in which such Commercial Operation Date occurs), a percentage (based on the then-current completion percentage of such Material Project as of the date of determination) of an amount to be approved by Administrative Agent as the projected EBITDA attributable to such Material Project for the first 12-month period following the scheduled Commercial Operation Date of such Material Project (such amount to be determined based on (i) forecasted income to be derived from binding contracts less appropriate direct and indirect costs to realize such income and (ii) in the case of the Double E Joint Venture for any period for which the Double E Joint Venture Conditions are satisfied, forecasted distributions to be made by the Double E Joint Venture to the Borrower or a Restricted Subsidiary (calculated based upon the Borrower’s ownership interest in the Double E Joint Venture as of the date of determination)), which amount may, at Borrower’s option, be added to actual EBITDA for the fiscal quarter in which construction or expansion of such Material Project commences and for each fiscal quarter thereafter until the Commercial Operation Date of such Material Project (including the fiscal quarter in which such Commercial Operation Date occurs, but net of any actual EBITDA attributable to such Material Project following such Commercial Operation Date); provided that if the actual Commercial Operation Date does not occur by the scheduled Commercial Operation Date, then the foregoing amount shall be reduced, for quarters ending after the scheduled Commercial Operation Date to (but excluding) the first full quarter after its Commercial Operation Date, by the following percentage amounts depending on the period of delay (based on the period of actual delay or then-estimated delay, whichever is longer):  (i) 90 days or less, 0%, (ii) longer than 90 days, but not more than 180 days, 25%, (iii) longer than 180 days but not more than 270 days, 50%, (iv) longer than 270 days but not more than 365 days, 75%, and (v) longer than 365 days, 100%; and”

 

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(vii)The definition of “Unrestricted Subsidiary” in the Credit Agreement is amended by amending and restating clauses (a) and (d) thereof in their entirety as follows:

 

“(a)that is designated by the Borrower as an Unrestricted Subsidiary in a written notice provided to the Administrative Agent (which such notice shall include a certification by a Responsible Officer of the Borrower that (i) both before and after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing, and (ii) such designation complies with all requirements set forth in this definition, including that (x) at the time such Subsidiary is being designated as an Unrestricted Subsidiary, the Borrower or any of its Restricted Subsidiaries are permitted to make Investments pursuant to the terms of Section 6.04(a)(i), 6.04(i), 6.04(k) or 6.04(t), as applicable, in an amount equal to the Investments previously made in the Subsidiary being designated an Unrestricted Subsidiary and that have not been repaid by such Subsidiary as dividends or distributions to any Loan Party, and (y) the amount of such Investments previously made by the Borrower or any of its Restricted Subsidiaries in such Subsidiary being designated an Unrestricted Subsidiary during the period from the Restatement Date to the applicable date of determination, and that have not been repaid via dividend or distribution to the Borrower or a Restricted Subsidiary, shall be included in the calculation of the aggregate amount of Investments permitted under Section 6.04(a)(i), 6.04(i), 6.04(k) and 6.04(t)).”

“(d)that after giving effect to such designation, as to which (i) neither the Borrower nor any Restricted Subsidiary has or would have any direct or indirect obligation for any obligation or liability of such Unrestricted Subsidiary, and (ii) neither the Borrower nor any Restricted Subsidiary is required to maintain or preserve such Unrestricted Subsidiary’s financial condition or to cause such Person to achieve any specified levels of operating results, other than, in the case of clauses (i) and (ii), Guarantees that are permitted under Section 6.01 and Section 6.04 by the Borrower or any Restricted Subsidiary of obligations of any Unrestricted Subsidiary and other than (except in the case of any Included Entity or the Double E Joint Venture) the pledge by the Borrower or any Restricted Subsidiary of its Equity Interests in such Unrestricted Subsidiary to support Non-Recourse Debt of such Unrestricted Subsidiary.”

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(b)Section 1.02 of the Credit Agreement is hereby amended by inserting the following sentence at the end thereof as follows:

“Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, (A) without giving effect to any election under Financial Accounting Standards Board Accounting Standards Codification 825 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) (and related interpretations) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at “fair value”, as defined therein, (B) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof, and (C) without giving effect to any change to GAAP occurring after the Restatement Date as a result of the adoption of any proposals set forth in the Proposed Accounting Standards Update, Leases (Topic 842), issued by the Financial Accounting Standards Board on February 25, 2016, or any other updates or proposals issued by the Financial Accounting Standards Board in connection therewith, in each case if such change would require treating any lease (or similar arrangement conveying the right to use) as a capital lease where such lease (or such similar arrangement) was not required to be so treated under GAAP as in effect on the Restatement Date.”

(c)Section 1.05 is hereby added to the Credit Agreement as follows:

“ Section 1.05Divisions.  For all purposes under the Loan Documents, in connection with any division under Delaware law (or any comparable event under a different requirement of any Governmental Authority): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.”

(d)Section 5.10(g) of the Credit Agreement is hereby amended and restated as follows:

“(g)In the case of any Loan Party, furnish to the Collateral Agent (A) prompt written notice of any change in such Loan Party’s corporate or organization name or organizational identification number or other change that may have an effect on the “know your customer”, U.S.A. PATRIOT ACT or Beneficial Ownership Regulation disclosures delivered in connection with this Agreement or any other Loan Document; (B) prior written notice of any change in such Loan Party’s identity or organizational structure; provided, that no Loan Party shall effect or permit any such change unless all filings have been made, or will have been made within any statutory period, under the UCC or otherwise that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral for the benefit of the Secured Parties; and (C) promptly upon the request thereof, any change, to the Borrower’s knowledge, in the information provided in the Beneficial Ownership Certification delivered to the Administrative Agent or any Lender that would result in a change to the list of beneficial owners identified in such certification, as from time to time reasonably requested by the Administrative Agent or any Lender.”

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(e)Section 6.04 of the Credit Agreement is hereby amended by deleting the word “and” at the end of Section 6.04(r), replacing the “.” at the end of Section 6.04(s) with “; and” and inserting a new Section 6.04(t) as follows:

“(t)Investments in the Double E Joint Venture constituting (i) the contribution to the Double E Joint Venture on the Second Amendment Effective Date of the assets contemplated by the Double E Contribution Agreement and (ii) additional Investments therein after the Second Amendment Effective Date; provided, in the case of sub-clause (ii), that immediately before such Investment and after giving effect thereto, (A) Liquidity is greater than U.S.$20.0 million, (B) the Borrower shall be in compliance, on a Pro Forma Basis, with the Financial Performance Covenants, each recomputed as at the last day of the most recently ended fiscal quarter of the Borrower and its Restricted Subsidiaries and (C) no Default or Event of Default shall have occurred and be continuing or would result therefrom.”

(f)Section 6.07 of the Credit Agreement is hereby amended by deleting the word “and” at the end of Section 6.07(b)(xii), replacing the “.” at the end of Section 6.07(b)(xiii) with “,” and inserting new Sections 6.07(b)(xiv) and (b)(xv) as follows:

“(xiv)any transaction that is permitted under affiliate fairness rules (or similar requirements) of FERC or any other Governmental Authority that regulates any Loan Party or any Subsidiary thereof, and

(xv)transactions pursuant to the Double E Transaction Documents as in effect on the Second Amendment Effective Date, to the extent not otherwise prohibited hereunder; provided, however, that all transactions pursuant to the Double E Operations and Maintenance Agreement and the Double E Construction Management Agreement (each as in effect on the Second Amendment Effective Date) shall be on commercially reasonable economic terms, as determined in good faith by a Financial Officer of the Borrower.”

(g)Section 6.09(f) is hereby added to the Credit Agreement as follows:

“(f)To the extent adverse to the Lenders, consent to or vote in favor of material amendments or modifications to (i) the Double E Joint Venture’s distribution policies, (ii) the ability of the Double E Joint Venture to incur Indebtedness and Liens (other than to the extent permitted under the definition of “Double E Joint Venture Conditions”), (iii) the ability of the Borrower or a Restricted Subsidiary to pledge the Equity Interests in the Double E Joint Venture as Collateral securing the Obligations, (iv) the voting provisions in the Double E Joint Venture’s relevant constitutional documents (other than any amendment or modification thereto so long as the Borrower or a Restricted Subsidiary owns Equity Interests in the Double E Joint Venture sufficient to retain negative control with respect to matters requiring Required Approval (as defined in the Double E LLC Agreement as in effect on the Second Amendment Effective Date)) or (v) the change of control provisions in the Double E Joint Venture’s relevant constitutional documents.”

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(h)Section 9.18(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Section 9.18 Release of Liens and Guarantees.  (a) In the event that (i) the Borrower or any Subsidiary Loan Party conveys, sells, leases, assigns, transfers or otherwise disposes of all or any portion of its assets (including the Equity Interests of any of its Subsidiaries) to a Person that is not (and is not required to become) a Loan Party in a transaction not prohibited by the Loan Documents (other than any sale or conveyance of any assets to Eddy County in connection with the IRB Transactions) or (ii) any Restricted Subsidiary becomes an Unrestricted Subsidiary (other than any Included Entity, any Ohio Joint Venture or the Double E Joint Venture), then, in any of such cases, the Administrative Agent and the Collateral Agent shall promptly (and the Lenders hereby authorize the Administrative Agent and the Collateral Agent to) take such action and execute any such documents as may be reasonably requested by the Borrower and at the Borrower’s sole cost and expense to release any Liens created by any Loan Document in respect of such Equity Interests, Subsidiary Loan Party or assets that are the subject of such disposition, release any Liens created by any Loan Document in respect of Equity Interests of any Restricted Subsidiary that becomes an Unrestricted Subsidiary (other than any Included Entity, any Ohio Joint Venture or the Double E Joint Venture) and release any Guarantees of the Obligations and release any Liens granted to secure the Obligations, in each case by a Person that ceases to be a Subsidiary of the Borrower or ceases to be a Subsidiary Loan Party as a result of a transaction described above. Any representation, warranty or covenant contained in any Loan Document relating to any such Equity Interests or assets shall no longer be deemed to be made once such Equity Interests or assets are so conveyed, sold, leased, assigned, transferred or disposed of.  Any sale or conveyance of any assets to Eddy County in connection with the IRB Transactions shall be subject to all Liens thereon created under the Loan Documents, and such Liens created under the Loan Documents shall continue in effect after such sale or conveyance.”

(i)The following Section 9.26 is hereby added to the Credit Agreement as follows:

“Section 9.26  Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any agreement or instrument that is a QFC (such support “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

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In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.”

2.Amendments to Collateral Agreement.  

(a)Section 3.01 of the Collateral Agreement is amended by amending and restating clause (a)(ii) thereof in its entirety as follows:

“(ii) any other Equity Interests owned in the future by such Pledgor and issued by the Borrower, a Subsidiary Loan Party, an Included Entity, an Ohio Joint Venture or the Double E Joint Venture;”

(b)Section 3.03(e) of the Collateral Agreement is hereby amended by amending and restating clauses (i) and (ii) thereof in its entirety as follows:

“(i) the Pledged Collateral (other than Pledged Collateral consisting of Equity Interests in any Ohio Joint Venture and the Double E Joint Venture) is and will continue to be freely transferable and assignable and (ii) none of the Pledged Collateral (other than Pledged Collateral consisting of Equity Interests in any Ohio Joint Venture and the Double E Joint Venture) is or will be subject to any option, right of first refusal, shareholders agreement, charter or by-law provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of such Pledged Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and remedies hereunder.”

13

 

3.Designation of Unrestricted Subsidiary.  The Borrower hereby designates the Double E Joint Venture as an Unrestricted Subsidiary under the Credit Agreement (as hereby amended).  Such designation complies with all requirements set forth in the definition of “Unrestricted Subsidiary” in the Credit Agreement, including that:

(a)both before and after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing;

(b)at the time of such designation, the Borrower or any of its Restricted Subsidiaries are permitted to make Investments pursuant to the terms of Section 6.04(t) of the Credit Agreement in an amount equal to the Investments previously made in the Double E Joint Venture hereby and that have not been repaid by the Double E Joint Venture as dividends or distributions to any Loan Party;

(c)the amount of such Investments previously made by the Borrower or any of its Restricted Subsidiaries in the Double E Joint Venture during the period from the Restatement Date to the date hereof, and that have not been repaid via dividend or distribution to the Borrower or a Restricted Subsidiary, shall be included in the calculation of the aggregate amount of Investments permitted under Section 6.04(t) of the Credit Agreement;

(d)after giving effect to such designation, the Double E Joint Venture will have no Indebtedness other than Non-Recourse Debt and Indebtedness that is guaranteed pursuant to Section 6.01(p) of the Credit Agreement;

(e)except as not prohibited by Section 6.07 of the Credit Agreement, after giving effect to such designation the Double E Joint Venture is not party to any transaction with the Borrower or any Restricted Subsidiary; and

(f)after giving effect to such designation, (i) neither the Borrower nor any Restricted Subsidiary has or would have any direct or indirect obligation for any obligation or liability of the Double E Joint Venture and (ii) neither the Borrower nor any Restricted Subsidiary is required to maintain or preserve the Double E Joint Venture’s financial condition or to cause the Double E Joint Venture to achieve any specified levels of operating results, other than, in the case of clauses (i) and (ii), Guarantees that are permitted under Sections 6.01 and 6.04 of the Credit Agreement by the Borrower or any Restricted Subsidiary of obligations of the Double E Joint Venture.

4.Conditions Precedent.  This Amendment shall become effective as of the Second Amendment Effective Date provided that each of the following conditions is satisfied (or waived by (a) Required Lenders and (b) each other Person required to consent to such waiver pursuant to and in accordance with Section 9.08 of the Credit Agreement):

(a)The Administrative Agent (or its counsel) shall have received from the Borrower, the other Loan Parties party hereto and the Required Lenders either (x) an original counterpart of this Amendment signed on behalf of such party or (y) evidence satisfactory to the Administrative Agent (which may include a facsimile copy or PDF copy of each signed signature page) that such party has signed a counterpart of this Amendment.

14

 

(b)The Administrative Agent shall have received, to the extent invoiced, all amounts due and payable pursuant to the Credit Agreement and Loan Documents on or prior to the Second Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses (including reasonable fees and expenses of Sidley Austin LLP, counsel to the Administrative Agent) that are required to be reimbursed or paid by the Borrower under the Credit Agreement, hereunder or under any Loan Document.

(c)The Administrative Agent shall have received (i) evidence that all Equity Interests in the Double E Joint Venture owned by the Borrower or a Restricted Subsidiary as of the Second Amendment Effective Date have been pledged pursuant to the Collateral Agreement and (ii) all certificates or other instruments (if any), together with stock powers or other instruments of transfer, with respect to such Equity Interests in the Double E Joint Venture.

(d)The representations and warranties in Section 5 shall be true and correct in all material respects as of the date hereof. 

(e)The Double E Transaction Documents shall be effective substantially contemporaneously with this Amendment.

The Administrative Agent shall notify the Borrower and the Lenders of the Second Amendment Effective Date, and such notice shall be conclusive and binding absent manifest error.

5.Representations and Warranties.  Each Loan Party represents and warrants to the Administrative Agent and each of the Lenders that:

(a)all of the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects (except for any representation and warranty that is qualified by materiality or Material Adverse Effect, which such representation and warranty shall be true and correct in all respects) on and as of the date hereof except to the extent that such representations and warranties expressly relate solely to an earlier date in which case they shall have been true and correct in all material respects (except for any representation and warranty that is qualified by materiality or Material Adverse Effect, which such representation and warranty shall be true and correct in all respects) as of such earlier date, except that the representations and warranties contained in Section 3.05 of the Credit Agreement shall be deemed to refer to the most recent financial statements furnished pursuant to Sections 5.04(a) and (b) of the Credit Agreement, respectively; 

(b)no Default or Event of Default has occurred and is continuing as of the date hereof under any Loan Document; 

(c)this Amendment is within such Loan Party’s organizational powers and has been duly authorized by all necessary organizational action on the part of such Loan Party; 

15

 

(d)this Amendment has been duly executed and delivered by each Loan Party and constitutes a legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms, subject to applicable laws affecting creditors’ rights generally and subject to (i) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws affecting creditors’ rights generally, (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied covenants of good faith and fair dealing; and

(e)this Amendment will not violate any applicable law in any material respect, will not violate or result in a default or require any consent or approval under any indenture, agreement or other instrument binding upon any Loan Party or its property, or give rise to a right thereunder to require any payment to be made by any Loan Party, except for violations, defaults or the creation of such rights that could not reasonably be expected to result in a Material Adverse Effect.  

6.Ratification.  Except as expressly amended hereby, the Loan Documents shall remain in full force and effect.  The Credit Agreement, as hereby amended, and all rights and powers created thereby or thereunder and under the other Loan Documents are in all respects ratified and confirmed and remain in full force and effect. The Collateral Agreement, as hereby amended, and all rights and powers created thereby or thereunder are in all respects ratified and confirmed and remain in full force and effect.

7.Reaffirmation of Collateral Documents.  In connection with this Amendment, each Loan Party party hereto, as debtor, grantor, pledgor, guarantor, or another similar capacity in which such Loan Party grants Liens or security interests or otherwise acts as a guarantor, joint or several obligor or other accommodation party, as the case may be, in each case under the Collateral Documents heretofore executed and delivered in connection with or pursuant to the Credit Agreement (as such Collateral Documents may have been heretofore, or are hereby, amended, restated, supplemented or otherwise modified), hereby (a) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under such Collateral Documents to which it is a party, (b) to the extent such Loan Party granted Liens on or security interests in any of its properties pursuant to such Collateral Documents, hereby ratifies and reaffirms such grant of security and confirms that such Liens and security interests continue to secure the Secured Obligations (as defined in the Collateral Agreement) thereunder and (c) to the extent such Loan Party guaranteed, was joint or severally liable, or provided other accommodations with respect to, the Obligations or any portion thereof, hereby ratifies and reaffirms such guaranties, liabilities and other accommodations.

8.Definitions and References.  Any term used in this Amendment that is defined in the Credit Agreement shall have the meaning therein ascribed to it.  The terms “Agreement” ,“Credit Agreement” and “Collateral Agreement” as used in the Loan Documents or any other instrument, document or writing furnished to the Administrative Agent, the Collateral Agent or the Lenders by the Borrower and referring to the Credit Agreement or the Collateral Agreement, as applicable, shall mean the Credit Agreement as hereby amended or the Collateral Agreement as hereby amended, as applicable.  

16

 

9.Miscellaneous.  This Amendment (a) shall be binding upon and inure to the benefit of the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lenders and their respective successors and assigns (provided, however, no party may assign its rights hereunder except in accordance with the Credit Agreement); (b) may be modified or amended only in accordance with the Credit Agreement; (c) may be executed in several counterparts, and by the parties hereto on separate counterparts, and each counterpart, when so executed and delivered, shall constitute an original agreement, and all such separate counterparts shall constitute but one and the same agreement; and (d) together with the other Loan Documents, embodies the entire agreement and understanding among the parties with respect to the subject matter hereof and supersedes all prior agreements, consents and understandings relating to such subject matter.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy or as an attachment to an email shall be effective as delivery of a manually executed counterpart of this Amendment.

10.Loan Document.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender, the Administrative Agent or the Collateral Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. On and after the effectiveness of this Amendment, this Amendment shall for all purposes constitute a Loan Document.

11.Governing Law.   This Amendment shall be governed by, and construed in accordance with, the law of the State of New York.

[Signature Pages Follow]

 

17

 

The parties hereto have caused this Amendment to be duly executed as of the day and year first above written.

 

BORROWER:

 

				
	
SUMMIT MIDSTREAM HOLDINGS, LLC

	
 
	
 
	
 

	
By:
	
/s/ Marc Stratton
	
 

	
 
	
Name:
	
Marc Stratton

	
 
	
Title:
	
Executive Vice President and Chief Financial Officer

 

 

				
	
OTHER LOAN PARTIES:

	
 

	
SUMMIT MIDSTREAM PARTNERS, LP

	
 

	
By:
	
Summit Midstream GP, LLC, 

its general partner

	
 
	
 

	
By:
	
/s/ Marc Stratton
	
 

	
 
	
Name:
	
Marc Stratton

	
 
	
Title:
	
Executive Vice President and Chief Financial Officer

 

DFW MIDSTREAM SERVICES LLC

SUMMIT MIDSTREAM FINANCE CORP.

GRAND RIVER GATHERING, LLC

RED ROCK GATHERING COMPANY, LLC

BISON MIDSTREAM, LLC

POLAR MIDSTREAM, LLC

EPPING TRANSMISSION COMPANY, LLC

SUMMIT MIDSTREAM MARKETING, LLC

SUMMIT MIDSTREAM PERMIAN, LLC 

MEADOWLARK MIDSTREAM COMPANY, LLC

SUMMIT MIDSTREAM UTICA, LLC 

SUMMIT MIDSTREAM PERMIAN FINANCE CORP.

SUMMIT MIDSTREAM NIOBRARA, LLC

SUMMIT MIDSTREAM PERMIAN II, LLC

 

Signature Pages – SMLP Second Amendment

 

				
				
	
SUMMIT PERMIAN TRANSMISSION, LLC

	
 
	
 
	
 

	
By:
	
/s/ Marc Stratton
	
 

	
 
	
Name:
	
Marc Stratton

	
 
	
Title:
	
Executive Vice President and Chief Financial Officer

 

				
	
SUMMIT MIDSTREAM OPCO, LP

	
 

	
By:
	
Summit midstream marketing, llc, 

its general partner

	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Marc Stratton
	
 

	
 
	
Name:
	
Marc Stratton

	
 
	
Title:
	
Executive Vice President and Chief Financial Officer

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Administrative Agent, Collateral Agent and a Lender

 

 

		
	
By:
	
/s/ Brandon Kast

	
Name:
	
Brandon Kast

	
Title:
	
Director

 

 

Signature Pages – SMLP Second AmendmentExhibit 10.1

 

EXECUTION COPY

 

TRANSACTION AGREEMENT

 

dated as of

 

August 7, 2019

 

by and among

 

JAKKS PACIFIC, INC.,

 

THE OTHER COMPANY PARTIES THAT ARE

SIGNATORY HERETO,

 

and

 

THE OTHER PARTIES LISTED ON THE SIGNATURE
PAGES HERETO

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	PAGE
	 	 	 
	 	Article 1	 
	 	 	 
	 	DEFINITIONS	 
	 	 	 
	Section 1.01	Defined Terms	4
	Section 1.02	Other Definitional and Interpretative Provisions	10
	 	 	 
	 	Article 2	 
	 	 	 
	 	TRANSACTIONS	 
	 	 	 
	Section 2.01	Transactions	11
	Section 2.02	Closing	14
	 	 	 
	 	Article 3	 
	 	 	 
	 	OTHER AGREEMENTS OF THE PARTIES; REPRESENTATIONS AND WARRANTIES	 
	 	 	 
	Section 3.01	Execution of Definitive Agreements	14
	Section 3.02	Reasonable Best Efforts; Further Assurances	14
	Section 3.03	Representations and Warranties of the Parties	14
	Section 3.04	Additional Representations and Warranties of JAKKS	15
	Section 3.05	Additional Representations, Warranties and Agreements of the Consenting Noteholders	17
	Section 3.06	Confidentiality	20
	Section 3.07	Public Announcements	20
	Section 3.08	Pre-Closing Obligations	20
	Section 3.09	Recusal	20
	Section 3.10	Independent Nature of Consenting Noteholders’ Obligations and Rights	21
	Section 3.11	Stockholder Approval	21
	Section 3.12	New Common Equity	22
	Section 3.13	Registration Rights Agreement	22
	Section 3.14	Withholding	22
	Section 3.15	Additional Voting Agreements	22
	 	 	 
	 	Article 4	 
	 	 	 
	 	CONDITIONS	 
	 	 	 
	Section 4.01	Conditions to Obligations of the Parties	23
	 	 	 
	 	Article 5	 
	 	 	 
	 	TERMINATION	 
	 	 	 
	Section 5.01	Termination	25
	Section 5.02	Effect of Termination	25

 

     i

     

    

  

	 	Article 6	 
	 	 	 
	 	MISCELLANEOUS	 
	 	 	 
	Section 6.01	Amendments and Waivers	26
	Section 6.02	Entire Agreement	26
	Section 6.03	Expenses	26
	Section 6.04	Survival	27
	Section 6.05	Third Party Beneficiaries	27
	Section 6.06	Successors and Assigns	27
	Section 6.07	Severability	27
	Section 6.08	Specific Performance	27
	Section 6.09	Governing Law	27
	Section 6.10	Jurisdiction and Venue	27
	Section 6.11	Waiver of Jury Trial	28
	Section 6.12	Notices	28
	Section 6.13	Waiver	29
	Section 6.14	No Recourse	30
	Section 6.15	Releases	30
	Section 6.16	Counterparts	31

  

Schedules

 

Schedule 2.01 – Transactions

Schedule 2.01(c) – Form of Closing Date Notice
to Consenting Noteholders

Schedule 3.04(i) – Voting Agreements

 

Exhibits

 

Exhibit A – Form of New Bylaws

Exhibit B – Form of New Preferred Certificate of Designations

Exhibit C – Form of First Lien Credit Agreement

Exhibit D – Form of New Revolving Credit Facility Credit
Agreement

Exhibit E – Form of New Intercreditor Agreement

Exhibit F-1– Form of 2017 Oasis Note Amendment

Exhibit F-2– Form of 2018 Oasis Note Amendment

Exhibit F-3 – Form of 2019 Oasis Note

Exhibit G– Amended and Restated Nominating and Corporate
Governance Committee Charter

Exhibit H – Form of Employment Agreement Amendment

Exhibit I – Escrow Agreement

Exhibit J – Form of Oasis Registration Rights Agreement

Exhibit K – Form of Employment Agreement Acknowledgement

 

     ii

     

    

 

TRANSACTION AGREEMENT

 

This TRANSACTION AGREEMENT (as amended,
supplemented, amended and restated or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”)
is dated as of August 7, 2019 by and among (i) JAKKS Pacific, Inc., a Delaware corporation (“JAKKS”),
(ii) certain of JAKKS’ Subsidiaries (as defined below) and Affiliates (as defined below) listed on the signature pages hereto
(collectively, and together with JAKKS, the “Company” or the “Company
Parties,” and each of the entities that comprise the Company, a “Company
Party”), and (iii) the other parties listed on the signature pages hereto. The foregoing parties are sometimes
referred to herein individually as a “Party” and together as the “Parties.”

 

RECITALS

 

WHEREAS, JAKKS is party to that certain
Credit Agreement, dated as of March 27, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to
time prior to the date hereof in accordance with the terms thereof, and including all schedules, annexes and exhibits attached
thereto, the “Existing Revolving Credit Facility”), among JAKKS, Disguise,
Inc., a Delaware corporation (“Disguise”), JAKKS Sales LLC, a Delaware
limited liability company formerly known as JAKKS Sales Corporation (“JAKKS Sales”),
Maui, Inc., an Ohio corporation (“Maui”), Moose Mountain Marketing,
Inc., a New Jersey corporation (“Moose”), and Kids Only, Inc., a Massachusetts
corporation (“Kids”), as borrowers, the lenders from time to time party
thereto, Wells Fargo Bank, National Association, as successor agent, and the other parties thereto;

 

WHEREAS, JAKKS is party to that certain
Term Loan Agreement, dated as of June 14, 2018 (as amended, supplemented, amended and restated or otherwise modified from time
to time prior to the date hereof in accordance with the terms thereof, and including all schedules, annexes and exhibits attached
thereto, the “Existing Term Loan Facility”), among JAKKS, Disguise,
JAKKS Sales, Maui, Moose, and Kids, as borrowers, the lenders from time to time party thereto, GACP Finance Co., LLC, as agent
(in such capacity, the “Term Loan Agent”), and the other parties thereto;

 

WHEREAS, certain Parties are beneficial
holders, or investment managers for beneficial holders, of notes issued under that certain Indenture, dated as of June 9, 2014
(as amended, supplemented, amended and restated or otherwise modified from time to time prior to the date hereof in accordance
with the terms thereof, and including all schedules, annexes and exhibits attached thereto, the “Convertible
Notes Indenture”), among JAKKS, as issuer, and Regions Bank, as successor trustee (in such capacity, the “Convertible
Notes Trustee”), pursuant to which there is outstanding as of the date hereof $113,000,000 in aggregate principal
amount of JAKKS’ 4.875% Convertible Senior Notes due 2020 (the “Convertible Notes”);

 

WHEREAS, pursuant to that certain Convertible
Senior Note, dated as of November 7, 2017 (as amended, supplemented, amended and restated or otherwise modified from time to time
prior to the date hereof, including all schedules, annexes and exhibits attached thereto), JAKKS issued to Oasis Investments II
Master Fund Ltd. (“Oasis”), and there is outstanding as of the date
hereof, $21,550,000 in aggregate principal amount of a JAKKS Convertible Senior Note (the “2017
Oasis Note”);

 

    	 	3	 

     

    

 

WHEREAS, pursuant to that certain Convertible
Senior Note, dated as of July 26, 2018 (as amended, supplemented, amended and restated or otherwise modified from time to time
prior to the date hereof, including all schedules, annexes and exhibits attached thereto), JAKKS issued to Oasis, and there is
outstanding as of the date hereof, $8,000,000 in aggregate principal amount of a JAKKS Convertible Senior Note (the “2018
Oasis Note” and, together with the 2017 Oasis Note, the “Oasis Notes”);

 

WHEREAS, (i) the Consenting Convertible
Noteholders (as defined below) beneficially own $103,845,000 in aggregate principal amount of the Convertible Notes, and (ii) the
Consenting Oasis Noteholder holds $7,250,000 in aggregate principal amount of the Convertible Notes and $29,550,000 in aggregate
principal amount of the Oasis Notes;

 

WHEREAS, the Parties have engaged in arm’s-length,
good faith discussions regarding a proposed restructuring, refinancing, and recapitalization transaction concerning the Company;
and

 

WHEREAS, the Parties have agreed to enter
into certain restructuring, refinancing and recapitalization transactions and desire to set forth certain terms and conditions
relating to, among other things, such restructuring, refinancing, and recapitalization transactions as described herein.

 

NOW, THEREFORE, in consideration of the
agreements and obligations set forth herein and for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Parties agree as follows:

 

Article
1

 

DEFINITIONS

 

Section 1.01         Defined
Terms.

 

(a)          As
used herein, each of the following terms has the following meaning:

 

“Accredited
Investor” means, with respect to any Person, an institutional “accredited investor” as that term is
defined in Rule 501(a)(1), (2), (3), or (7) under the Securities Act.

 

“Ad
Hoc Group Advisors” means, collectively, Stroock & Stroock & Lavan LLP, CMS Hasche Sigle, Hong Kong LLP,
and FTI Consulting, Inc.

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with
such Person; provided, however, that notwithstanding the foregoing, an Affiliate shall not include any “portfolio
company” or “portfolio investment” (as such terms are customarily used among institutional investors) of any
Person. For the purpose of this definition, the term “control” (including, with correlative meanings, the terms “controlling”,
“controlled by” and “under common control with”), as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through
the ownership of voting securities, by contract or otherwise. It is understood that none of the Consenting Convertible Noteholders
shall be deemed an Affiliate of the Company solely because an officer, director or employee of such Consenting Convertible Noteholder
or one of its Affiliates serves as a Series A Preferred Director (as defined in the New Preferred Certificate of Designations).

 

“Amended
and Restated Nominating and Corporate Governance Committee Charter” means the Amended and Restated Nominating
and Corporate Governance Committee Charter to be adopted by the Board subject to and effective upon the Closing in the form set
forth on Exhibit G.

 

“Amended
and Restated Oasis Notes” means (i) the Amended and Restated Oasis Notes requested by the Company Parties to memorialize
the amended terms of the Oasis Notes set forth on Exhibit F-1 and Exhibit F-2 hereto, and (ii) the additional note
to be issued to Oasis pursuant to Section 2.01(b)(iii) hereof in the form set forth on Exhibit F-3 hereto (the “New
Oasis Note”).

 

    	 	4	 

     

    

 

“Board”
means the board of directors of JAKKS.

 

“Business
Day” means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are
authorized or required by applicable Law to close.

 

“Certificate
of Incorporation” means the Certificate of Incorporation of JAKKS, as the same may be amended or amended and restated
from time to time, including by the New Preferred Certificate of Designations.

 

“Classified
Board Proposal” means a proposal to amend the Certificate of Incorporation to classify the Board into three (3)
classes, designated Class I, Class II and Class III, with staggered three (3)-year terms, with Class I comprised of two (2) Common
Directors (as defined in the New Bylaws) (with their terms expiring at the annual meeting of stockholders to be held in 2021),
Class II comprised of three (3) Common Directors, two (2) of whom shall be the New Independent Common Directors (as defined in
the New Bylaws) (with their terms expiring at the annual meeting of stockholders to be held in 2022), and Class III comprised of
two (2) Series A Preferred Directors (as defined in the New Bylaws) (with their terms expiring at the annual meeting of stockholders
to be held in 2023), such classification to be effective as of the date of the annual meeting of stockholders to be held in 2020,
or if later, the date of the stockholders’ meeting at which the Classified Board Proposal is approved.

 

“Closing
Date” means the date of the Closing.

 

“Common
Stock” means the authorized common stock, par value $0.001 per share, of JAKKS.

 

“Confidential
Information” means all non-public or confidential information, written or oral and in any format, pertaining to
the Transactions, JAKKS and its Subsidiaries and Affiliates (collectively, the “JAKKS
Entities,” and each a “JAKKS Entity”) and the business
of the JAKKS Entities which has been or will be furnished to any Person or any Representative of such Person, including that portion
of all analyses, estimates, projections, compilations, forecasts, studies, summaries, notes, data or other documents prepared by
any Person or its Representatives to the extent they contain or reflect any Confidential Information; provided that the
term “Confidential Information” does not include information that (i) is or
becomes generally available to the public other than as a result of a disclosure by a Person or its Representatives to whom Confidential
Information is provided that is known to be in violation of any confidentiality agreement or other contractual, legal or fiduciary
obligation of confidentiality to any JAKKS Entity with respect to such information, (ii) a Person can reasonably show was within
such Person’s possession, or the possession of one or more of its Representatives, prior to it being furnished to such Person
by or on behalf of any JAKKS Entity, provided that the source of such information was not known by such Person to be bound by a
confidentiality agreement with or other contractual, legal or fiduciary obligation of confidentiality to any of the JAKKS Entities,
any of their Representatives or any other party with respect to such information, (iii) was independently developed by a Person
or its Representatives to whom Confidential Information is provided without use of, reference to or reliance upon Confidential
Information, (iv) is expressly permitted by the JAKKS Entities or their Representatives to be disclosed to third parties on a non-confidential
basis, or (v) is or becomes generally available to a Person or its Representatives to whom Confidential Information is provided,
or was obtained from a third party on a non-confidential basis from a source not known to such Person or its Representatives, at
the time of such disclosure, (a) to be prohibited from disclosing such information by a contractual, legal or fiduciary obligation
to any JAKKS Entity or any of its Representatives, or (b) to have received such information as a result of any breach of any other
contractual, legal or fiduciary or other obligation to the JAKKS Entities or their Representatives to keep such information confidential.

 

    	 	5	 

     

    

 

“Consenting
Convertible Noteholders” means the beneficial holders, or the investment managers for the beneficial holders,
of the Convertible Notes other than Oasis and its Affiliates, in their capacities as such, that have executed this Agreement as
set forth on the signature pages hereto, or have become parties to this Agreement through a Joinder pursuant to Section 3.05(a)(iv).

 

“Consenting
Convertible Noteholders Registration Rights Agreement” means that certain registration rights agreement to be
entered into within thirty (30) days after the Closing Date by and among JAKKS and the Consenting Convertible Noteholders relating
to, among other things, the registration of the shares of Common Stock issued on the Closing Date, which registration rights agreement
shall be substantially similar to, and shall confer registration rights that are pari passu, and shared on a pro rata
basis, with the registration rights of Oasis as set forth in, the Oasis Registration Rights Agreement set forth on Exhibit J
hereto and otherwise in form and substance reasonably acceptable to the Consenting Convertible Noteholders.

 

“Consenting
Noteholders” means, collectively, the Consenting Convertible Noteholders and the Consenting Oasis Noteholder.

 

“Consenting
Oasis Noteholder” means the holder of the Oasis Notes that has executed this Agreement as set forth on the signature
pages hereto, or any future holders of any Oasis Notes that have become parties to this Agreement through a Joinder pursuant to
Section 3.05(a)(iv).

 

“Consenting Oasis Noteholder Advisor”
means Schulte Roth & Zabel LLP.

 

“Damages”
means any damages, liabilities, losses, injuries, contributions, indemnities, compensation, obligations, costs, attorney’s
fees and expenses of any kind and nature whatsoever, whether known or unknown, fixed or contingent, in law or in equity, sounding
in tort or in contract and whether or not asserted.

 

“Employment
Agreement Acknowledgements” means the acknowledgements regarding certain enumerated provisions in the JAKKS employment
agreements of Jack McGrath and Brent Novak, in the form set forth on Exhibit L hereto.

 

“Employment
Agreement Amendment” means Amendment No. 3 to the Second Amended and Restated Employment Agreement of Stephen
Berman to be executed and otherwise become effective upon the Closing in the form set forth on Exhibit H hereto.

 

“Enforceability
Exceptions” means (a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar
laws affecting or relating to enforcement of creditors’ rights generally and (b) general principles of equity, whether such
enforceability is considered in a proceeding at law or in equity.

 

“Escrow
Agreement” means that certain escrow agreement to be entered into on or about the date of this Agreement between
Cortland Capital Market Services LLC, as escrow agent (in such capacity, the “Escrow
Agent”) and the funding entities parties thereto, attached hereto as Exhibit I.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended (together with the rules and regulations promulgated
thereunder).

 

    	 	6	 

     

    

 

“First
Lien Credit Agreement” means that certain First Lien Term Loan Facility Credit Agreement, dated as of the Closing
Date (as amended, supplemented, amended and restated or otherwise modified from time to time in accordance with the terms thereof,
and including all schedules, annexes and exhibits attached thereto), among JAKKS, Disguise, JAKKS Sales, Maui, Moose, and Kids,
as borrowers, the lenders from time to time party thereto, Cortland Capital Market Services LLC (“Cortland”),
as administrative agent, and the other parties thereto, substantially in the form set forth on Exhibit C hereto.

 

“First
Lien Obligations” means the first lien term loan obligations pursuant to the First Lien Credit Agreement in an
aggregate principal amount equal to (a) the aggregate principal amount of Convertible Notes tendered by the Consenting Convertible
Noteholders pursuant to this Agreement, plus (b) accrued and unpaid interest on such Convertible Notes to the Closing Date,
plus (c) the New Money Investment.

 

“Governance
Agreements” means each of the Voting Agreements, the New Bylaws, the Amended and Restated Nominating and Corporate
Governance Committee Charter, and the New Preferred Certificate of Designations.

 

“Governmental
Authority” means any transnational, domestic or foreign federal, state or local government, political subdivision,
governmental, regulatory or administrative authority, instrumentality, agency, body or commission, self-regulatory organization
or any court, tribunal, or judicial or arbitral body.

 

“Insolvency
Proceeding” means any proceeding, proposal, corporate action or other procedure commenced or other step taken
(including the making of an application, the presentation of a petition, the filing or service of a notice or the passing of a
resolution) by or against any person under any provision of Title 11 of the U.S. Code or any other applicable state, provincial,
territorial or federal bankruptcy or insolvency laws in effect from time to time in any jurisdiction, including any law of any
jurisdiction permitting a debtor to obtain a stay or a compromise of the claims of its creditors against it and including any rules
and regulations pursuant thereto, including winding-up, dissolution, administration, assignments for the benefit of any class of
creditors, formal or informal moratoria, compositions, compromises, suspension of payments, extensions generally with any class
of creditors, or proceedings seeking reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise), arrangement,
or other similar relief (including suspension of payments), or a custodian or a trustee, receiver, monitor, liquidator, administrator,
administrative receiver, compulsory manager or similar custodian is appointed for, or takes charge of, all or substantially all
of the property of any person.

 

“Law”
means any transnational, domestic or foreign federal, state or local statute, law, ordinance, regulation, rule, code, order or
other requirement or rule of law, including the common law.

 

“Material
Adverse Effect” means any material adverse effect on: (i) the business, properties, assets, liabilities, operations,
results of operations, condition (financial or otherwise) or prospects of any Company Party, individually or taken as a whole;
(ii) the legality, validity, binding effect or enforceability of any of the Transaction Documents with respect to any Company Party;
or (iii) the authority or ability of any Company Party to perform its obligations hereunder and under the other Transaction Documents.

 

“New
Bylaws” means the Second Amended and Restated Bylaws of JAKKS, to be adopted by the Board subject to and effective
upon the Closing, in the form set forth on Exhibit A hereto.

 

“New
Common Equity” means the number of shares of Common Stock, having the rights, restrictions and limitations (and
subject to the rights of holders of Preferred Stock) set forth in the Certificate of Incorporation and the New Bylaws, equal to
19.9% of the outstanding shares of Common Stock (determined prior to the consummation of the Transactions contemplated by this
Agreement) as of the Closing Date.

 

    	 	7	 

     

    

 

“New
Intercreditor Agreement” means that certain intercreditor agreement governing the intercreditor relationships
between the lenders under the New Revolving Credit Facility and the holders of the First Lien Obligation to be executed and otherwise
become effective upon the Closing substantially in the form set forth on Exhibit E hereto.

 

“New
Management Incentive Plan” means JAKKS’ Amended and Restated Management Incentive Plan to be adopted after
the Closing Date by the Board.

 

“New
Money Investment” means the total amount of $30,000,000 in cash to be delivered by the Consenting Convertible
Noteholders at the Closing in accordance with Section 2.01(a).

 

“New
Preferred Certificate of Designations” means the Certificate of Designations of the New Preferred Stock to be
filed with the Secretary of State of the State of Delaware prior to the Closing and effective as of the Closing in the form set
forth on Exhibit B hereto.

 

“New
Preferred Equity” means the 200,000 shares of Series A Senior Preferred Stock of JAKKS, such shares having the
rights, restrictions and limitations set forth in the New Preferred Certificate of Designations, to be issued by JAKKS at Closing.

 

“New
Revolving Credit Facility” means that certain revolving credit facility which on the Closing Date shall replace
the Existing Revolving Credit Facility, pursuant to the New Revolving Credit Facility Credit Agreement.

 

“New
Revolving Credit Facility Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as
of the Closing Date (as amended, supplemented, amended and restated or otherwise modified from time to time in accordance with
the terms thereof, and including all schedules, annexes and exhibits attached thereto), among JAKKS, Disguise, JAKKS Sales, Maui,
Moose, and Kids, as borrowers, the lenders from time to time party thereto, Wells Fargo Bank, National Association, as administrative
agent, and the other parties thereto, substantially in the form set forth on Exhibit D hereto.

 

“New
Securities” means, collectively, the New Common Equity and New Preferred Equity.

 

“Nominating
Committee” means the Nominating and Corporate Governance Committee of the Board.

 

“Notes”
means, collectively, the Convertible Notes and the Oasis Notes.

 

“Oasis
Registration Rights Agreement” means that certain registration rights agreement dated as of the Closing Date by
and among JAKKS and the Oasis Consenting Noteholders relating to, among other things, the registration of the resale of the shares
of Common Stock issuable upon conversion of the Amended and Restated Oasis Notes, in the form set forth on Exhibit J.

 

“Organizational
Documents” means, with respect to any Person (other than an individual), the certificate or articles of incorporation
or organization or memorandum of association of such Person (including, if applicable, any certificates of designation associated
therewith) and any limited liability company, operating or partnership agreement, bylaws, bye-laws, trust agreement or similar
documents or agreements relating to the legal organization or governance of such Person, in each case as may be amended from time
to time in accordance therewith.

 

    	 	8	 

     

    

 

“Person”
means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.

 

“Preferred
Stock” means the authorized preferred stock, par value $0.001 per share, of JAKKS.

 

“Representatives”
means any Person or such Person’s Affiliates and its and its Affiliates’ respective directors, managers, officers,
partners, members, employees, current investors, prospective investors, advisors (including, without limitation, attorneys, accountants,
consultants, bankers and financial advisors), experts, representatives or agents.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended (together with the rules and regulations promulgated thereunder).

 

“Subsidiary”
means, with respect to any Person, any entity of which securities or other ownership interests having ordinary voting power to
elect a majority of the board of directors or other persons performing similar functions are at the time, directly or indirectly,
owned by such Person.

 

“Transaction
Documents” means, collectively, this Agreement, the Oasis Registration Rights Agreement, the Amended and Restated
Oasis Notes, the Voting Agreements, the New Bylaws, the Amended and Restated Nominating and Corporate Governance Committee Charter,
the First Lien Credit Agreement, the New Intercreditor Agreement, the New Preferred Certificate of Designations, the New Revolving
Credit Facility Credit Agreement, the Employment Agreement Amendment, the Employment Agreement Acknowledgements, the Escrow Agreement,
and any additional definitive documents relating to any of the foregoing.

 

“Voting
Agreements” means, collectively, each of the Voting Agreements to be executed and delivered by JAKKS and certain
of its stockholders, each in forms agreed upon by the Consenting Convertible Noteholders, and, in the case of the Voting Agreement
to be executed and delivered by the Consenting Oasis Noteholder, in a form agreed upon by the Consenting Oasis Noteholder and the
Consenting Convertible Noteholders.

 

(b)          Each
of the following terms is defined in the Section set forth opposite such term:

 

	Term	 	Section
	 	 	 
	2017 Oasis Note	 	Recitals
	2018 Oasis Note	 	Recitals
	Agreement	 	Preamble
	Claim	 	Section 6.15
	Claims	 	Section 6.15
	Closing	 	Section 2.02(a)
	Company	 	Preamble
	Company Parties	 	Preamble
	Company Party	 	Preamble
	Convertible Notes	 	Recitals
	Convertible Notes Indenture	 	Recitals
	Convertible Notes Trustee	 	Recitals
	Disguise	 	Recitals

 

    	 	9	 

     

    

  

	DTC	 	Section 2.01(a)(i)(B)
	End Date	 	Section 5.01(b)
	Escrowed Cash Amount	 	Section 2.01(a)(i)(A)
	Escrowed Convertible Notes	 	Section 2.01(a)(i)(B)
	Escrowed Oasis Convertible Notes	 	Section 2.01(b)(ii)
	Existing Revolving Credit Facility	 	Recitals
	Existing Term Loan Facility	 	Recitals
	GAAP	 	Section 3.04(g)
	JAKKS	 	Preamble
	JAKKS Sales	 	Recitals
	Joinder	 	Section 3.05(a)(iv)
	Kids	 	Recitals
	Legal Restraint	 	Section 4.01(a)
	Maui	 	Recitals
	Moose	 	Recitals
	NASDAQ	 	Section 3.11
	Non-Recourse Party	 	Section 6.14
	Oasis	 	Recitals
	Oasis Notes	 	Recitals
	Oasis Notes Cash Interest Payment	 	Section 2.01(b)(iii)
	Parties	 	Preamble
	Party	 	Preamble
	Related Party	 	Section 6.15
	Releasees	 	Section 6.15
	Releasing Parties	 	Section 6.15
	Rule 144	 	Section 3.05(c)(i)
	Rule 144A	 	Section 3.05(c)(i)
	SEC Documents	 	Section 3.04(g)
	Securities Law Restrictions	 	Section 3.05(c)(i)
	Stockholder Approval	 	Section 3.11
	Stockholder Meeting	 	Section 3.11
	Term Loan Agent	 	Recitals
	Transactions	 	Section 2.01
	Transfer	 	Section 3.05(a)(iv)

 

Section 1.02         Other
Definitional and Interpretative Provisions. The words “hereof”, “herein” and “hereunder”
and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of
this Agreement. The captions herein are included for convenience of reference only and shall be ignored in the construction or
interpretation hereof. References to Articles, Sections and Exhibits are to Articles, Sections and Exhibits of this Agreement
unless otherwise specified. All Schedules or Exhibits annexed hereto or referred to herein are hereby incorporated in and made
a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Schedule or Exhibit but not otherwise
defined therein shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include
the plural, and any plural term, the singular. Whenever the words “include”, “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not
they are in fact followed by those words or words of like import. “Writing”, “written” and comparable
terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. All references
to a particular statute or other Law shall be deemed to include all rules and regulations thereunder in effect from time to time.
References to any Person include the successors and permitted assigns of that Person. References from or through any date mean,
unless otherwise specified, from and including or through and including, respectively.

 

    	 	10	 

     

    

 

Article
2

 

TRANSACTIONS

 

Section 2.01         Transactions.
Upon the terms and subject to the conditions set forth herein, each Consenting Noteholder hereby agrees with the Company, and
the Company hereby agrees with each Consenting Noteholder, that, at and effective as of the Closing, each of the following transactions
(the “Transactions”) shall occur on the Closing Date (except that
the delivery of the New Money Investment into escrow described in subparagraph (a)(i)(A) below and the delivery of the Convertible
Notes into escrow described in subparagraphs (a)(i)(B) and (b)(ii) below shall occur at least one (1) Business Day prior to the
Closing Date as set forth in such subparagraphs):

 

(a)          Convertible
Noteholder Transactions.

 

(i)          At
least one (1) Business Day prior to the Closing Date, each Consenting Convertible Noteholder:

 

(A)        shall
deliver, or cause to be delivered, to the Escrow Agent, to be held and applied at the Closing (subject to written confirmation
by the Company and by the Consenting Convertible Noteholders (or on their behalf by Stroock & Stroock & Lavan LLP, as an
Ad Hoc Group Advisor) as to satisfaction (or waiver in writing by the Consenting Convertible Noteholders) of the conditions to
Closing set forth herein) in accordance with the Escrow Agreement, cash in the amount set forth on Schedule 2.01 opposite
the name of such Consenting Convertible Noteholder, which amount shall be equal to such Consenting Convertible Noteholder’s
pro rata share (based on the principal amount of the Convertible Notes beneficially owned by (or by funds or accounts managed
by) such Consenting Convertible Noteholder relative to the aggregate principal amount of the Convertible Notes beneficially owned
by (or by funds or accounts managed by) all Consenting Convertible Noteholders) of the New Money Investment, and which, together
with the cash amount from, or from funds or accounts managed by, each other Consenting Convertible Noteholder, shall total the
New Money Investment (the “Escrowed Cash Amount”),
by wire transfer of immediately available funds in U.S. dollars to an account with the Escrow Agent specified by the Company; and

 

(B)         agrees
to effect, or cause to be effected, by book entry transfer, in accordance with the applicable procedures of The Depository Trust
Company (“DTC”), the delivery in escrow to
the Convertible Notes Trustee of the aggregate principal amount of Convertible Notes set forth under its signature hereto (the
“Escrowed Convertible Notes”).

 

(ii)         At
the Closing, subject to written confirmation by the Company and by the Consenting Convertible Noteholders (or on their behalf by
Stroock & Stroock & Lavan LLP, as an Ad Hoc Group Advisor) as to satisfaction (or waiver in writing by the Consenting Convertible
Noteholders) of the conditions to Closing set forth herein, (x) the Escrow Agent shall, in accordance with the Escrow Agreement,
deliver to JAKKS the Escrowed Cash Amount, and (y) the Company shall instruct the Convertible Notes Trustee to cancel the Escrowed
Convertible Notes, in exchange for the issuance by JAKKS to, or to funds or accounts managed by, each such Consenting Convertible
Noteholder, in accordance with Schedule 2.01 or as otherwise stated by a Consenting Convertible Noteholder in written instructions
to be delivered to JAKKS prior to the Closing Date, of the following:

 

    	 	11	 

     

    

 

(A)         the
number of shares of New Common Equity as set forth on Schedule 2.01 opposite the name of such Consenting Convertible Noteholder,
evidenced by one or more share certificates in the name of, or in accordance with the written instructions delivered by, such Consenting
Convertible Noteholder;

 

(B)         the
number of shares of New Preferred Equity as set forth on Schedule 2.01 opposite the name of such Consenting Convertible
Noteholder, evidenced by one or more share certificates in the name of, or in accordance with the written instructions delivered
by, such Consenting Convertible Noteholder; and

 

(C)         First
Lien Obligations in the principal amount set forth on Schedule 2.01 opposite the name of such Consenting Convertible Noteholder.

 

(iii)        Each
of the Consenting Convertible Noteholders acknowledges and agrees that the receipt by, or by funds or accounts managed by, such
Consenting Convertible Noteholder of the New Common Equity, New Preferred Equity, and First Lien Obligations set forth opposite
its name on Schedule 2.01 shall be in consideration for the New Money Investment and the surrender by, or by funds or accounts
managed by, such Consenting Convertible Noteholder of all Convertible Notes beneficially owned by, or by funds or accounts managed
by, such Consenting Convertible Noteholder, and shall be in full satisfaction of any and all obligations owed to, or to funds or
accounts managed by, such Consenting Convertible Noteholder in connection with the Convertible Notes beneficially owned by, or
by funds or accounts managed by, such Consenting Convertible Noteholder, as set forth below such Consenting Convertible Noteholders’
signature hereto, including the aggregate principal amount of, and the accrued but unpaid interest on such Convertible Notes and
any and all fees, premium, expenses and other obligations with respect to such Convertible Notes.

 

(b)          Oasis
Noteholder Transactions.

 

(i)          At
the Closing, without the need for any further approval, documentation or action of any kind by the Consenting Oasis Noteholder
or the Company, the Oasis Notes shall be amended pursuant to the terms of Exhibit F-1 and Exhibit F-2 hereto.

 

(ii)         At
least one (1) Business Day prior to the Closing Date, the Consenting Oasis Noteholder agrees to effect, by book entry transfer,
in accordance with the applicable procedures of DTC, the delivery to the Convertible Notes Trustee of the aggregate principal amount
of Convertible Notes set forth under its signature hereto (the “Escrowed
Oasis Convertible Notes”).

 

(iii)        At
the Closing, subject to written confirmation by the Company and by the Consenting Oasis Noteholder (or on their behalf by Schulte
Roth & Zabel LLP as legal counsel to the Consenting Oasis Noteholder) as to satisfaction (or waiver in writing by the Consenting
Oasis Noteholder) of the conditions to Closing set forth herein, (x) the Company shall instruct the Convertible Notes Trustee to
cancel the Escrowed Oasis Convertible Notes, in exchange for the issuance by JAKKS to the Consenting Oasis Noteholder of the New
Oasis Note, and (y) the Company shall pay to the Consenting Oasis Noteholder the amount of accrued but unpaid interest with respect
to the Oasis Notes and the Escrowed Oasis Convertible Notes set forth opposite the name of the Consenting Oasis Noteholder on Schedule
2.01 (the “Oasis Notes Cash Interest Payment”).

 

    	 	12	 

     

    

 

(iv)        The
Consenting Oasis Noteholder acknowledges and agrees that the receipt of the Amended and Restated Oasis Notes and the Oasis Notes
Cash Interest Payment shall be in full satisfaction of any and all obligations owed to the Consenting Oasis Noteholder in connection
with the Oasis Notes and the Convertible Notes beneficially owned by the Consenting Oasis Noteholder, as set forth below the Consenting
Oasis Noteholder’s signature hereto, including the aggregate principal amount of, and the accrued but unpaid interest on
such Oasis Notes and Convertible Notes and any and all fees, premium, expenses and other obligations with respect to such Oasis
Notes and Convertible Notes. 

 

(c)          Revisions
to Schedule 2.01. If the Closing Date is after August 9, 2019, then the Company shall provide a notice not less than one (1)
Business Day prior to the Closing Date to the Consenting Noteholders substantially in the form of Schedule 2.01(c) setting
forth:

 

(i)          the
revised Closing Date; and

 

(ii)         taking
into account the revised Closing Date, a revised Schedule 2.01 solely with respect to revisions to calculate the revised
accrued but unpaid interest owed to:

 

(A)        each
Consenting Convertible Noteholder as of the revised Closing Date on account of the Convertible Notes, and any additional First
Lien Obligations to be issued to such Consenting Convertible Noteholder as a result of such later Closing Date; and

 

(B)         the
Consenting Oasis Noteholder on account of the Oasis Notes Cash Interest Payment as of the revised Closing Date as a result of such
later Closing Date.

 

(d)          Certain
Governance Agreements.

 

(i)          At
the Closing, the New Preferred Certificate of Designations will become effective having previously been duly filed with the Secretary
of State of the State of Delaware.

 

(ii)         At
the Closing, each of JAKKS and the Consenting Oasis Noteholder agrees to enter into the Oasis Registration Rights Agreement.

 

(iii)        At
the Closing, JAKKS shall enter into Voting Agreements with each of (v) Hong Kong Meisheng Cultural Company Limited, (w) the Consenting
Oasis Noteholder, (x) Consenting Convertible Noteholders holding, together with the Convertible Notes held by the Consenting Oasis
Noteholder, at least ninety percent (90%) in principal amount of the Convertible Notes, (y) the current directors and officers
of JAKKS beneficially owning shares of Common Stock, and (z) certain additional stockholders, which shall become effective as of
the Closing and that, collectively, cover at least forty-five percent (45%) of the total outstanding Common Stock immediately after
giving effect to the consummation of the Transactions.

 

(iv)        At
the Closing, the New Bylaws will become effective having been adopted by the Board subject to, and contemporaneously with, the
Closing.

 

(v)         At
the Closing, the Amended and Restated Nominating and Corporate Governance Committee Charter will become effective having been adopted
by the Board as the charter of the Nominating Committee subject to, and contemporaneously with, the Closing.

 

    	 	13	 

     

    

 

(e)          Employment
Agreement Amendment. At the Closing, the Employment Agreement Amendment will become effective having been adopted subject to,
and contemporaneously with, the Closing by JAKKS and the applicable employee.

 

(f)          Existing
Term Loan Facility. On the Closing Date, JAKKS will use a combination of (a) proceeds from the New Money Investment, and (b)
cash on hand to pay in full the outstanding amounts and to satisfy any other payment obligations due under the Existing Term Loan
Facility.

 

(g)          Existing
Revolving Credit Facility. On the Closing Date, JAKKS will enter into the New Revolving Credit Facility Credit Agreement providing
for a $60,000,000 New Revolving Credit Facility.

 

Section 2.02         Closing.

 

(a)          The
closing of the Transactions (the “Closing”) shall
take place at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, 300 S. Grand Avenue, Suite 3400, Los Angeles, California
90071, or remotely by the exchange of documents and signatures (or their electronic counterparts), one (1) Business Day after the
day on which all conditions set forth in Article 4 have been satisfied or, to the extent permitted under applicable Law,
waived in writing by the Party or Parties entitled to the benefit of such conditions (other than conditions that by their nature
are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permitted under applicable Law, waiver in
writing of those conditions at the Closing by the Party or Parties entitled to the benefit of such conditions), or at such other
time or place as JAKKS and the Consenting Noteholders may mutually agree in writing.

 

(b)          All
Transactions and other acts, deliveries and confirmations comprising the Closing, regardless of chronological sequence, shall be
deemed to occur contemporaneously and simultaneously upon the occurrence of the last act, delivery or confirmation of the Closing,
and none of such acts, deliveries or confirmations shall be effective unless and until the last of the same shall have occurred.

 

Article
3

 

OTHER
AGREEMENTS OF THE PARTIES; REPRESENTATIONS AND WARRANTIES

 

Section 3.01         Execution
of Definitive Agreements. (a) JAKKS shall, and shall cause each other Company Party to, and (b) each Consenting Noteholder
shall, deliver to each counterparty to a Transaction Document, a duly executed counterpart of each Transaction Document which
such Party is required to execute and deliver pursuant to this Agreement or any of the other Transaction Documents.

 

Section 3.02         Reasonable
Best Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, the Parties will use their reasonable
best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under
Laws to consummate the Transactions. Each Party shall execute and deliver such instruments, documents, or other writings as may
be reasonably necessary to confirm and carry out and to effectuate the Transactions and the intent and purposes of this Agreement.

 

Section 3.03         Representations
and Warranties of the Parties. Each of the Consenting Noteholders (on behalf of itself and not on behalf of any other Consenting
Noteholder) hereby represents and warrants to each Company Party, and each Company Party hereby represents and warrants to each
Consenting Noteholder, as follows as of the date hereof and as of the Closing Date:

 

    	 	14	 

     

    

 

(a)          Due
Organization; Authorization. Such Party is duly formed, validly existing and in good standing under the laws of its jurisdiction
of formation. The execution, delivery and performance by such Party of the Transaction Documents to which such Party is a party
and the consummation by such Party of the transactions contemplated hereby and thereby are within such Party’s legal powers
and capacity. The execution and delivery by such Party of the Transaction Documents to which such Party is a party and the consummation
of the transactions contemplated hereby and thereby have been duly and validly authorized and approved, and no other proceeding,
consent or authorization on the part of such Party is necessary to authorize entry into this Agreement and the other Transaction
Documents to which such Party is a party or to consummate the transactions contemplated hereby and thereby. Assuming the due authorization,
execution and delivery of this Agreement and the other Transaction Documents to which such Party is a party by the other parties
hereto and thereto, this Agreement and the other Transaction Documents to which such Party is a party each constitutes a valid
and binding agreement of such Party, enforceable against such Party in accordance with its terms, subject to the Enforceability
Exceptions.

 

(b)          Governmental
Authorization. The execution, delivery and performance by such Party of this Agreement and the other Transaction Documents
to which such Party is a party and the consummation by such Party of the transactions contemplated hereby and thereby require no
action by or in respect of, or filing with, any Governmental Authority (except for any filings required following the date of this
Agreement under the Securities Act or Exchange Act).

 

(c)          Non-Contravention.
The execution, delivery and performance by such Party of this Agreement and the other Transaction Documents to which such Party
is a party and the consummation by such Party of the relevant transactions contemplated hereby and thereby do not and will not
(i) violate the Organizational Documents of such Party that is not a natural person, (ii) violate any applicable Law, rule or regulation
binding on such Party or any judgment, injunction, order or decree to which such Party is a party or is bound or (iii) require
any consent or other action by any Person or constitute a default under, or give rise to any right of termination, cancellation
or acceleration of, or any right of a third party to require repayment, redemption or repurchase by the Company of, any right or
obligation of such Party under any agreement or other instrument binding upon such Party, other than such consents, actions, defaults
or rights of termination, cancellation or acceleration under contracts that are not material, or, in the case of the Company, that
would not, individually or in the aggregate, result in a Material Adverse Effect.

 

Section 3.04         Additional
Representations and Warranties of JAKKS. JAKKS hereby represents and warrants to the other Parties as follows on the date
hereof and on the Closing Date:

 

    	 	15	 

     

    

 

(a)          Valid
Issuance. As of the Closing Date, the New Preferred Certificate of Designations shall have been duly filed with the
Secretary of State of the State of Delaware and the New Common Equity, and New Preferred Equity to be issued hereunder will have
been duly authorized by JAKKS and when delivered to, and the consideration specified herein is paid by, the Consenting Convertible
Noteholders on the Closing Date in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable
and will not be subject to, and will not have been issued in violation of, any preemptive, participation, rights of first refusal
or other similar rights. As of the Closing Date, the Amended and Restated Oasis Notes will have been duly authorized by JAKKS and,
when executed and delivered to the Consenting Oasis Noteholder against delivery of the Oasis Notes and the Escrowed Oasis Convertible
Notes, as applicable, in accordance with the terms of this Agreement, the Amended and Restated Oasis Notes will be valid and binding
obligations of JAKKS, enforceable against JAKKS in accordance with their terms, except that such enforcement may be subject to
(a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting or relating to enforcement
of creditors’ rights generally, and (b) general principles of equity, whether such enforceability is considered in a proceeding
at law or in equity. The Amended and Restated Oasis Notes (a) will be authorized, executed and delivered in a transaction
exempt from the registration requirements of the Securities Act pursuant to Section 3(a)(9) of the Securities Act, (b) will
be approved under Rule 16b-3 of the Exchange Act, (c) will, at the Closing, be free of any restrictions on resale by the holder
thereof pursuant to Rule 144 promulgated under the Securities Act other than such restrictions imposed on such holder by virtue
of its affiliate status with the Company and free of any restrictive legend, and (d) will be authorized, executed and delivered
in compliance with all applicable state and federal laws. For the purposes of Rule 144 promulgated under the Securities Act, the
Company acknowledges that (i) the holding period of the Amended and Restated Oasis Notes issued in exchange of the 2017 Oasis Note
and of any other securities that may be issued to the Consenting Oasis Noteholder pursuant to the terms of such Amended and Restated
Oasis Notes may be tacked onto the holding period of the 2017 Oasis Note and that the holding period of the 2017 Oasis Note may
be tacked onto the holding period of the Convertible Notes that were surrendered to JAKKS upon issuance to the Consenting Oasis
Noteholder of the 2017 Oasis Note, (ii) the holding period of the Amended and Restated Oasis Notes issued in exchange of the 2018
Oasis Note and of any other securities that may be issued to the Consenting Oasis Noteholder pursuant to the terms of such Amended
and Restated Oasis Notes may be tacked onto the holding period of the 2018 Oasis Note and that the holding period of the 2018 Oasis
Note may be tacked onto the holding period of the Convertible Notes that were surrendered to JAKKS upon issuance to the Consenting
Oasis Noteholder of the 2018 Oasis Note, and (iii) the holding period of the New Oasis Note issued in exchange of the Escrowed
Oasis Convertible Notes and of any other securities that may be issued to the Consenting Oasis Noteholder pursuant to the terms
of such New Oasis Note may be tacked onto the holding period of the Escrowed Oasis Convertible Notes, and JAKKS agrees not to take
a position contrary thereto. Subject to receipt of any required approval of JAKKS stockholders as set forth in Section 3.11
with respect to any shares of Common Stock issuable in excess of the Exchange Cap (as defined in the Amended and Restated Oasis
Notes), the shares of Common Stock issuable pursuant to the terms of the Amended and Restated Oasis Notes have been duly authorized
and reserved by JAKKS for issuance pursuant to the terms of the Amended and Restated Oasis Notes and, when issued pursuant to the
terms of the Amended and Restated Oasis Notes, will be validly issued, fully paid and non-assessable, and the issuance of the shares
of Common Stock issuable pursuant to the terms of the Amended and Restated Oasis Notes will not be subject to any preemptive, participation,
rights of first refusal or other similar rights.

 

(b)          Capitalization.
As of the Closing, after giving effect to the consummation of the Transactions, (i) the authorized capitalization of JAKKS shall
consist of (A) 100,000,000 shares of Common Stock, and (B) 5,000,000 shares of Preferred Stock, including 200,000 shares of New
Preferred Equity, and (ii) the number of shares of (A) total Common Stock outstanding shall be 35,265,075 shares (including 5,853,002
shares of New Common Equity but not including 3,112,840 treasury shares), and (B) New Preferred Equity outstanding shall be 200,000
shares, (iii) 37,747,665 shares of Common Stock shall be reserved for future issuance upon conversion of outstanding Convertible
Notes and Amended and Restated Oasis Notes, and (iv) 940,885 shares of Common Stock shall be reserved for future issuance pursuant
to outstanding employee equity awards.

 

(c)          Financing.
The Company Parties will have sufficient funds on hand (after giving effect to the incurrence of the First Lien Obligations)
to consummate the transactions contemplated hereby, including the payment of all related fees and expenses.

 

(d)          New
Money Investment. The New Money Investment shall be sufficient for the payment of each of the cash payments and disbursements
required to be made by the Company Parties at the Closing pursuant to this Agreement, and all related fees and expenses.

 

    	 	16	 

     

    

 

(e)          Equity
Issuance. The issuance of the New Common Equity and New Preferred Equity does not violate any agreements to which any of the
Company Parties is currently a party and does not violate, or result in, any preemptive rights of third parties.

 

(f)          Other
Material Agreements. No material agreements to which JAKKS or any Company Party is a party shall be terminated or invalidated
solely due to the consummation of the Transactions, except as expressly contemplated by the Transaction Documents.

 

(g)          SEC
Documents. Since January 1, 2018, JAKKS has filed with (or furnished to) the SEC, on a timely basis, all forms, reports and
other documents required to be filed with or furnished to the SEC under the Securities Act or the Exchange Act (collectively, with
any amendments thereto, the “SEC Documents”). The consolidated financial statements included in the SEC Documents
(including the related notes and schedules thereto) have been prepared in all material respects in accordance with United States
generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved
(except as may be indicated therein or in the notes thereto) and, on that basis, fairly presented in all material respects the
consolidated financial position, results of operations, changes in stockholder’s equity and cash flows of the Company as
of the indicated dates and for the indicated periods (subject, in the case of unaudited statements, to normal year-end audit adjustments
and to any other adjustments described therein, including the notes thereto).

 

(h)          Bylaws.
The Bylaws of JAKKS, as currently in effect, are the Amended and Restated Bylaws filed with the SEC as an exhibit to JAKKS’
Current Report on Form 8-K filed October 21, 2011, as amended on December 19, 2014, which amendment is described in JAKKS’
Proxy Statement on Schedule 14A filed on November 7, 2014.

 

(i)           Voting
Agreements. As of the date hereof, JAKKS has obtained Voting Agreements with certain parties, as set forth on Schedule 3.04(i)
hereto, which collectively represent approximately fifty percent (50%) of the total outstanding Common Stock immediately after
giving effect to the consummation of the Transactions, which Voting Agreements shall become effective as of the Closing. As of
the date hereof, Schedule 3.04(i) is true and correct in all material respects (excluding the information in Schedule
3.04(i) regarding the Consenting Convertible Noteholders other than Citadel Equity Fund Ltd.), after giving effect to the consummation
of the Transactions.

 

Section 3.05         Additional
Representations, Warranties and Agreements of the Consenting Noteholders. Each Consenting Noteholder, severally and not jointly,
hereby represents and warrants to each Company Party as follows on the date hereof and on the Closing Date:

 

(a)          Ownership;
Good Title.

 

(i)          Such
Consenting Noteholder (i) is, or is the investment manager for, the beneficial owner of or has binding commitments to purchase
the aggregate principal amount of Convertible Notes and/or Oasis Notes, as applicable, set forth below its signature hereto; (ii)
has full power and authority to act on behalf of, vote and consent to matters concerning such Notes, as applicable, and to dispose
of, exchange, assign, and transfer such Notes; and (iii) does not otherwise own, hold or control any Notes other than as set forth
below its signature hereto.

 

(ii)         Such
Consenting Noteholder’s Convertible Notes and/or Oasis Notes, as applicable, are free and clear of any pledge, lien, security
interest, charge, claim, equity, option, proxy, voting restriction, right of first refusal, or other limitation on disposition
or encumbrance of any kind that would adversely affect in any way such Consenting Noteholder’s performance of its obligations
contained in this Agreement at the time such obligations are required to be performed.

 

    	 	17	 

     

    

 

(iii)        Such
Consenting Noteholder has made no prior assignment, sale, participation, grant, conveyance, pledge, or other Transfer (as defined
below) of, and has not entered into any other agreement to assign, sell, participate, grant, convey, pledge, or otherwise Transfer,
in whole or in part, any portion of its right, title, or interests (economic or otherwise) in any of its Convertible Notes and/or
Oasis Notes, as applicable, except, in each case, pledges that such Consenting Noteholder may have created in favor of a prime
broker under and in accordance with its prime brokerage agreement with such broker.

 

(iv)        Prior
to the Closing Date, each Consenting Noteholder agrees with the Company not to, directly or indirectly, wholly or in part, (1)
sell, assign, transfer, loan, hypothecate, pledge, permit the participation in, or otherwise dispose of, or offer or enter into
any contract or arrangement with respect to any of the foregoing, of any ownership, economic or other interest in any of the Convertible
Notes and/or Oasis Notes, as applicable, (2) deposit any interest in the Convertible Notes and/or Oasis Notes, as applicable, into
a voting trust, (3) enter into any swap, option or other derivatives transaction that transfers to another, in whole or in part,
any of the economic benefits or risks of ownership of shares of any Convertible Notes and/or Oasis Notes, as applicable, or (4)
grant any proxies or enter into a voting agreement (other than the Voting Agreements) with respect to any such Convertible Notes
and/or Oasis Notes, as applicable (each, a “Transfer”),
unless the transferee thereof either (I) is a Consenting Noteholder, (II) prior to such Transfer, agrees in writing for the benefit
of the Company to be bound by all of the terms of this Agreement with respect to such Convertible Notes or Oasis Notes, as applicable,
by executing a joinder (a “Joinder”) reasonably
acceptable, and delivering an executed copy thereof, to JAKKS, and Skadden, Arps, Slate, Meagher & Flom LLP (in accordance
with the notice provisions set forth in Section 6.12), in which event the transferee shall become a Consenting Noteholder
under this Agreement with respect to such transferred Convertible Notes and/or Oasis Notes, as applicable, or (III) is so bound
pursuant to the Transactions. Each Consenting Noteholder agrees and acknowledges that any Transfer of Convertible Notes and/or
Oasis Notes, as applicable, that does not comply with the terms and procedures set forth in this Section 3.05(a)(iv) shall
be deemed null and void ab initio. Upon execution of a Joinder or by a transferee upon consummation of a Transfer, such Person
shall be deemed to make all of the representations, warranties, and covenants of a Consenting Noteholder, as applicable, set forth
in this Agreement.

 

(b)          Sophistication
and Experience. Such Consenting Noteholder (i) understands that the Transactions involve substantial
risk, (ii) has the requisite knowledge and experience in financial and business matters, investments and transactions of the
type contemplated by this Agreement and the Transactions such that it is capable of evaluating the merits and risks of entering
into this Agreement and of making an informed investment decision with respect to the Transactions, (iii) has conducted an independent
review and analysis of the business and affairs of the Company that it considers sufficient and reasonable for purposes of entering
into this Agreement and the Transactions, including representing that such Consenting Noteholder is knowledgeable with respect
to the Company and its condition (financial and otherwise), results of operations, businesses, properties, plans and prospects,
was afforded the opportunity, together with its advisors, to conduct due diligence on the Company prior to execution of this Agreement,
has received and reviewed, and/or consulted with its advisors with respect to, the Company’s publicly available information
and the other information provided by the Company upon request of such Consenting Noteholder and/or its advisors, and has had a
reasonable opportunity to ask questions of the Company and its representatives, including with respect to such information, and
the Company or its representatives have answered to the satisfaction of such Consenting Noteholder all inquiries that such Consenting
Noteholder has put to the Company, (iv) has been afforded an opportunity to negotiate, either directly or through its advisors,
the terms of such Consenting Noteholder’s participation in, and has received and reviewed, either directly or through its
advisors, sufficient information that such Consenting Noteholder, in its sole discretion, has deemed to be necessary or appropriate
to make an informed decision on whether to participate in, the transactions contemplated by this Agreement and the transactions
contemplated hereby and the terms of, and consequences of ownership of, the New Securities, as applicable, (v) understands that
nothing in this Agreement or any other document contemplated hereby constitutes legal, tax, accounting, financial or investment
advice, and such Consenting Noteholder has consulted such legal, tax, accounting, financial and investment advisors as it, in its
sole discretion, has deemed to be necessary or appropriate, and (vi) certifies that, to the extent applicable, it is either
(x) a “qualified institutional buyer,” or QIB, as that term is defined in Rule 144A under the Securities Act or
(y) an Accredited Investor.

 

    	 	18	 

     

    

 

(c)          Restricted
Securities.

 

(i)          Each
Consenting Convertible Noteholder understands that the New Securities have not been registered under the Securities Act or the
securities laws of any U.S. state or other jurisdiction, and, therefore, the New Securities cannot be resold unless they are so
registered or unless an exemption from registration is available. Each Consenting Convertible Noteholder further understands that
it is not contemplated that any registration of the New Securities will be made under the Securities Act or any securities laws
of any U.S. state or other jurisdiction and understands that the exemptions from registration afforded by Rule 144 (“Rule
144”) and Rule 144A (“Rule 144A”)
(the provisions of which rules are known to it) depend on the satisfaction of various conditions, and that, if applicable, Rule
144 may afford the basis for sales only in limited amounts. The foregoing restrictions are referred to in this Agreement as the
“Securities Law Restrictions.” Such Consenting Convertible
Noteholder understands that the New Securities will bear a legend reflecting the Securities Law Restrictions. Each Consenting Convertible
Noteholder acknowledges and agrees that the purchase of New Securities by such applicable Consenting Noteholder has not been solicited
by any form of general solicitation or general advertising.

 

(ii)         Each
Consenting Convertible Noteholder is acquiring the New Securities for its own account, not with a view toward the resale or distribution
of such New Securities and such Consenting Convertible Noteholder has no present intention of Transferring or otherwise distributing
such New Securities or any interest therein. Each Consenting Convertible Noteholder will not sell or otherwise Transfer any of
the New Securities or any interest therein except in a registered transaction or in a transaction exempt from or not subject to
the registration requirements of the Securities Act and any other applicable securities laws and in accordance with the legend
reflecting the Securities Law Restrictions.

 

(d)          Exclusivity
of Representations. Each Consenting Noteholder specifically disclaims that it is relying, or has relied, upon any statement,
advice (whether accounting, tax, financial, legal or other), representation or warranty made by JAKKS or any of its Subsidiaries,
Affiliates or Representatives regarding the Transactions, except for (i) the representations and warranties expressly made by the
Company Parties in this Agreement and any other Transaction Documents, and (ii) the disclosures made by JAKKS in the SEC Documents,
subject to the forward looking statements, risk factors and any other qualifications therein and except to the extent expressly
disclosed otherwise by the Company or its advisors to (y) the Consenting Convertible Noteholders or the Ad Hoc Group Advisors,
and (z) the Consenting Oasis Noteholder or the Consenting Oasis Noteholder Advisor.

 

    	 	19	 

     

    

 

Section 3.06         Confidentiality.
Each Consenting Noteholder hereby agrees with the Company that Confidential Information furnished to it has been made available
in connection with the Transactions. Each Consenting Noteholder agrees with the Company that such Consenting Noteholder shall
comply with the terms of any existing confidentiality agreement such Consenting Noteholder has entered into with the Company,
solely to the extent and for so long as such confidentiality agreement remains in effect.

 

Section 3.07         Public
Announcements. The Company hereby agrees to consult with, and consider in good faith any comments received from, the Consenting
Noteholders before issuing any press release or making any public statement with respect to this Agreement or the transactions
contemplated hereby and will not issue any such press release or make any such public statement identifying any of the Consenting
Noteholders prior to receiving the written consent of such Consenting Noteholder(s) about whom such statement is made, which consent
shall not be unreasonably withheld. On or before 4:30 p.m. New York time on the second (2nd) Business Day following
the date of this Agreement, JAKKS shall file with the SEC the Current Report on Form 8-K in such form as is reasonably acceptable
to the Consenting Noteholders, describing the terms of the transactions contemplated by the Transaction Documents and attaching
each of the Transaction Documents (in the case of the Voting Agreements, the form thereof) as exhibits to such filing. JAKKS shall
provide a draft of any such press release relating to the Transactions to the Consenting Noteholders no later than one (1) full
Business Day prior to the dissemination of such press release and shall provide a draft of such Form 8-K no later than one (1)
full Business Day prior to filing such Form 8-K with the SEC.

 

Section 3.08         Pre-Closing
Obligations. Until the Closing Date, and except with respect to any actions related to the Transactions or otherwise specifically
contemplated under this Agreement, each Company Party agrees (severally and not jointly) to (a) use its reasonable best efforts
to conduct, and cause its Subsidiaries to conduct, their businesses and operations only in the ordinary course in a manner that
is consistent with past practices and in compliance with Law, and use reasonable best efforts to preserve intact in all material
respects their business organization and relationships with third parties (including material creditors, lessors, licensors, suppliers,
distributors and customers) and employees; and (b) not increase in any manner outside the ordinary course of business the compensation
or benefits (including severance) of any director, officer or employee of the respective Company Party without the consent of
Consenting Noteholders who collectively hold more than fifty percent (50.0%) of the aggregate principal amount of the Convertible
Notes, such consent not to be unreasonably withheld, conditioned or delayed.

 

Section 3.09         Recusal.
While the Consenting Oasis Noteholder or any of its Affiliates hold Amended and Restated Oasis Notes, any employee of the Consenting
Oasis Noteholder or any of its Affiliates serving as a director on the Board shall recuse himself (or herself) from any discussion
or vote relating to the terms of the Amended and Restated Oasis Notes.

 

    	 	20	 

     

    

 

Section 3.10         Independent
Nature of Consenting Noteholders’ Obligations and Rights. The obligations of each Consenting Noteholder under any Transaction
Document are several and not joint with the obligations of any other Consenting Noteholder, and no Consenting Noteholder shall
be responsible in any way for the performance of the obligations of any other Consenting Noteholder under any Transaction Document.
Nothing contained herein or in any other Transaction Document, and no action taken by any Consenting Noteholder pursuant hereto
or thereto, shall be deemed to constitute the Consenting Noteholders as, and the Company acknowledges that the Consenting Noteholders
do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that
the Consenting Noteholders are in any way acting in concert or as a group, and the Company shall not assert any such claim with
respect to such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the
Consenting Noteholders are not acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Transaction Documents. The Company acknowledges, and each Consenting Noteholder confirms, that it has independently participated
in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. Each Consenting Noteholder
shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this
Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Consenting Noteholder to be joined
as an additional party in any proceeding for such purpose. The use of a single agreement to effectuate the transactions contemplated
hereby and by the other Transaction Documents was solely in the control of the Company, not the action or decision of any Consenting
Noteholder, and was done solely for the convenience of the Company and not because it was required or requested to do so by any
Consenting Noteholder. It is expressly understood and agreed that each provision contained in this Agreement and in each other
Transaction Document is between the Company, and a Consenting Noteholder, solely, and not between the Company, and the Consenting
Noteholders collectively and not between and among the Consenting Noteholders.

 

Section 3.11         Stockholder
Approval. JAKKS shall: (a) file, no later than September 6, 2019, a preliminary proxy statement with the SEC for a special
meeting of holders of Common Stock (such special meeting, as determined in accordance with the second proviso of this sentence,
the “Stockholder Meeting”), soliciting each such stockholder’s
affirmative vote at the Stockholder Meeting for approval of resolutions (such affirmative approval being referred to herein as
the “Stockholder Approval”) providing for (i) if so required by the
rules and regulations of the Nasdaq Global Select Market (the “NASDAQ”), JAKKS’ issuance of all of the
shares of Common Stock issuable pursuant to the terms of the Amended and Restated Oasis Notes in accordance with applicable law
and the rules and regulations of the NASDAQ without giving effect to the Exchange Cap provisions set forth in the Amended and
Restated Oasis Notes, (ii) the Classified Board Proposal, and (iii) the election to the Board of any director nominee selected
by the Nominating Committee in accordance with the Amended and Restated Nominating and Corporate Governance Committee Charter;
(b) diligently attempt to resolve any comments received from the staff of the SEC relating to such preliminary proxy statement,
and if appropriate file an amended preliminary proxy statement with the SEC, so that clearance of the preliminary proxy statement
by the staff of the SEC may be obtained as promptly as possible, (c) subject to receiving SEC approval (or the absence of comments
on the preliminary proxy statement from the staff of the SEC within ten (10) calendar days of filing), mail or otherwise disseminate
to holders of record of Common Stock of JAKKS, no later than three (3) Business Days after September 30, 2019, a definitive proxy
statement for the Stockholder Meeting (provided that if a definitive agreement is entered into by September 30, 2019 that would
result in an Acceptable Transaction (as defined in the New Preferred Certificate of Designations), the mailing or dissemination
of such definitive proxy statement may be deferred until the third (3rd) Business Day following the public announcement
of such definitive agreement; (d) use reasonable best efforts to call and hold the Stockholder Meeting no later than October 31,
2019 or as promptly as practicable thereafter, subject to applicable notice requirements of SEC regulations, the New Bylaws and
Delaware law; and (e) use its reasonable best efforts to solicit the Stockholder Approval and to cause the Board to recommend
to holders of Common Stock that they approve such resolutions; provided that if, despite JAKKS’ reasonable best efforts
the Stockholder Approval for any such proposal is not obtained on or prior to December 31, 2019, JAKKS shall cause an additional
meeting of stockholders to be held every six (6) months thereafter until such Stockholder Approval is obtained; provided, however,
that, in lieu of presenting the proposal in clause (iii) at the Stockholder Meeting, such proposal may be presented at the following
annual meeting. For the avoidance of doubt, the proposal in clause (i) shall be substantially in a form previously reviewed by
the Consenting Oasis Noteholder and Schulte Roth & Zabel LLP and the proposals in clauses (ii) and (iii) shall be subject
to the prior review and approval of the Consenting Convertible Noteholders and their legal counsel. As soon as practicable after
the Closing Date, JAKKS shall submit to the NASDAQ a notification of listing of additional shares form for, and subject to receipt
of any required approval of JAKKS stockholders as set forth in this Section 3.11 with respect to any shares of Common Stock
issuable in excess of the Exchange Cap (as defined in the Amended and Restated Oasis Notes), the shares of Common Stock issuable
pursuant to the terms of the Amended and Restated Oasis Notes to be approved for listing on the NASDAQ.

 

    	 	21	 

     

    

 

Section 3.12         New
Common Equity. Each certificate representing shares of New Common Equity shall contain a legend substantially to the following
effect (in addition to any legends required under applicable securities laws):

 

THIS SECURITY HAS BEEN ACQUIRED
FOR INVESTMENT AND WITHOUT A VIEW TO DISTRIBUTION AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER STATE SECURITIES LAWS. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION
OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION THEREIN MAY BE MADE EXCEPT (A) IN COMPLIANCE WITH THE PROVISIONS OF ANY VOTING
AGREEMENT BETWEEN THE HOLDER HEREOF AND THE CORPORATION AND (B)(1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS AND, IN THE
CASE OF CLAUSE (B), PROVIDED THAT THE CORPORATION, IF IT SO REQUESTS, RECEIVES AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS.

 

Section 3.13         Registration
Rights Agreement. JAKKS shall enter into the Consenting Convertible Noteholders Registration Rights Agreement with each holder
of New Common Equity within thirty (30) days after the Closing Date.

 

Section 3.14         Withholding.
All payments and distributions with respect to the shares of New Common Equity and New Preferred Equity and the First Lien Obligations
shall be subject to withholding and backup withholding of tax to the extent required by law (and, in the case of the First Lien
Obligations, as provided under the First Lien Credit Agreement, and, in the case of the New Preferred Equity, as provided under
the New Preferred Certificate of Designations), and amounts withheld, if any, shall be treated as received by the holders of such
shares or First Lien Obligations in respect of which such amounts are withheld. Notwithstanding anything to the contrary contained
or implied in this Agreement or the New Preferred Certificate of Designations, the Parties hereto acknowledge and agree that,
absent a change in applicable law, (a) the parties will treat the New Preferred Equity as not subject to the application of Section
305 of the Internal Revenue Code of 1986, as amended and (b) the Company shall not withhold any amounts with respect to the New
Preferred Equity by reason of the application of Section 305 of the Internal Revenue Code of 1986, as amended. Each holder of
New Common Equity, New Preferred Equity or First Lien Obligations will provide the Company with an applicable IRS Form W-9 or
IRS Form W-8 establishing such holder’s residency and, in the case of IRS Form W-8, any exemption from, or reduction in,
U.S. federal withholding tax to which such holder is entitled.

 

Section 3.15         Additional
Voting Agreements. Following the Closing, JAKKS shall continue to use commercially reasonable efforts to enter into additional
Voting Agreements that, together with the Voting Agreements referred to in Section 3.04(i), collectively, cover more than
fifty percent (50%) of the total outstanding Common Stock immediately after giving effect to the consummation of the Transactions.

 

    	 	22	 

     

    

 

Article
4

 

CONDITIONS

 

Section 4.01         Conditions
to Obligations of the Parties. The obligations of the Parties to consummate the Closing are subject to the satisfaction (or,
to the extent permitted under applicable Law, waiver in writing by each of the Parties) of the following conditions:

 

(a)          no
order, ruling or injunction shall have been entered by a court or other Governmental Authority that prohibits the consummation
of the Closing (“Legal Restraint”);

 

(b)          each
Party shall have performed in all material respects all of its obligations hereunder required to be performed by it prior to or
contemporaneously with the Closing;

 

(c)          no
event occurring after the date of this Agreement that individually, or together with all other events occurring after the date
of this Agreement, has had, or would reasonably be expected to have a Material Adverse Effect;

 

(d)          the
representations and warranties of the Parties shall be true and correct in all material respects (except for those representations
and warranties that are qualified by materiality or Material Adverse Effect, which are accurate in all respects) at and as of the
Closing Date with the same effect as if made at and as of such date and after giving effect to the Transactions (except for such
representations and warranties made as of a specified date, which shall be true and correct in all material respects (except for
those representations and warranties that are qualified by materiality or Material Adverse Effect, which are accurate in all respects)
only as of the specified date);

 

(e)          if
the Closing Date is more than one (1) Business Day after the date of this Agreement, each Company Party shall have delivered a
certificate duly executed by a senior officer of such Company Party, dated as of the Closing Date, that each of the representations
and warranties of such Company Party are true and correct in all material respects (except for those representations and warranties
that are qualified by materiality or Material Adverse Effect, which are accurate in all respects) at and as of the Closing Date
with the same effect as if made at and as of such date after giving effect to the Transactions (except for such representations
and warranties made as of a specified date, which shall be true and correct in all material respects (except for those representations
and warranties that are qualified by materiality or Material Adverse Effect, which are accurate in all respects) only as of the
specified date);

 

(f)          contemporaneously
with the Closing, the parties thereto shall enter into the New Revolving Credit Facility and execute the New Revolving Credit Facility
Credit Agreement;

 

(g)         contemporaneously
with the Closing, the parties thereto shall enter into and execute the New Intercreditor Agreement;

 

(h)         contemporaneously
with the Closing, JAKKS shall have received the New Money Investment;

 

(i)           contemporaneously
with the Closing, a cash amount representing the principal balance of, and accrued but unpaid interest under, the Existing Term
Loan Facility shall be deposited with the Term Loan Agent, using, in part, the proceeds of the New Money Investment;

 

    	 	23	 

     

    

 

(j)           contemporaneously
with the Closing, the Existing Term Loan Facility shall be cancelled;

 

(k)          contemporaneously
with the Closing, the parties thereto shall enter into and execute the First Lien Credit Agreement;

 

(l)           JAKKS
shall have delivered to the Consenting Convertible Noteholders a legal opinion of counsel, subject to customary assumptions and
qualifications, as to the due authorization and issuance of the New Securities under the Delaware General Corporation Law, a draft
of which opinion has been furnished to Stroock & Stroock & Lavan LLP prior to the date of this Agreement;

 

(m)         JAKKS
shall have filed the New Preferred Certificate of Designations with the Secretary of State of the State of Delaware;

 

(n)          the
Voting Agreements referred to in Section 3.04(i) shall have been executed and delivered by JAKKS and the other parties thereto
and shall have become effective;

 

(o)          JAKKS
shall have delivered a certificate of good standing dated within ten (10) days of the Closing Date to the Consenting Convertible
Noteholders at Closing;

 

(p)          each
Consenting Convertible Noteholder shall have delivered or caused to be delivered, to be held in escrow, (i) to the Escrow Agent
by wire transfer in accordance with Section 2.01(a)(i)(A) its respective amount of the New Money Investment, and (ii) to
the Convertible Notes Trustee in accordance with Section 2.01(a)(i)(B) all of its Convertible Notes;

 

(q)          Oasis
shall have delivered to the Convertible Notes Trustee in accordance with Section 2.01(b)(ii) all of its Convertible Notes;

 

(r)          contemporaneously
with the Closing, the Convertible Notes delivered in accordance with Section 4.01(o) and Section 4.01(p) shall be
cancelled;

 

(s)          contemporaneously
with the Closing, (x) each Consenting Noteholder shall have (i) executed and delivered each Governance Agreement to which such
Consenting Noteholder is a party, and (ii) provided such Consenting Noteholder’s approval, as applicable, of each Governance
Agreement to which such Consenting Noteholder is not a party, and (y) each counterparty to the Governance Agreements shall have
executed and delivered each Governance Agreement to which it is a party;

 

(t)          contemporaneously
with the Closing, the Company and the other parties thereto shall have entered into the Employment Agreement Acknowledgements;

 

(u)         contemporaneously
with the Closing, the parties to each other Transaction Document shall enter into and execute such other applicable Transaction
Document;

 

(v)         contemporaneously
with the Closing, the New Securities shall be issued;

 

(w)         contemporaneously
with the Closing, the parties thereto shall enter into and execute the Amended and Restated Oasis Notes; and

 

(x)          the
Common Stock (I) shall be listed on the NASDAQ and (II) shall not have been suspended, as of the Closing Date, by the SEC or the
NASDAQ from trading on the NASDAQ.

 

    	 	24	 

     

    

 

Article
5

 

TERMINATION

 

Section 5.01         Termination.
This Agreement may be terminated at any time prior to the Closing:

 

(a)          by
mutual written agreement of (i) the Consenting Noteholders and (ii) JAKKS;

 

(b)          by
(i) (x) the Consenting Convertible Noteholders, or (y) the Consenting Oasis Noteholder, in each case, if the Closing has not occurred
on or before August 12, 2019 (the “End Date”); or
(ii) by Citadel Equity Fund Ltd. (solely as to itself) if the Closing has not occurred on or before the date that is five (5) Business
Days after the End Date; provided that the right to terminate this Agreement pursuant to this Section shall not be available to
any party whose breach of any provision of this Agreement has been a principal cause of the failure of the Closing to be consummated
by such date;

 

(c)          by
any Party, if any Legal Restraint shall be in effect and shall have become final and nonappealable; provided that the right to
terminate this Agreement pursuant to this Section shall not be available to any Party whose breach of any provision of this Agreement
has been a principal cause of such Legal Restraint being or remaining in effect;

 

(d)          by
any Party, if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of any other
Party set forth in this Agreement shall have occurred that would cause any condition set forth in Section 4.01(b) or Section
4.01(d) with respect to the obligations, representations or warranties of such other Party not to be satisfied and such condition
is incapable of being satisfied by the End Date or, if curable, is not cured by such other Party within 10 days of receipt by such
other Party of written notice of such breach or failure (or such shorter period as remains between the date such written notice
is provided and the End Date);

 

(e)          by
any of (i) the Consenting Convertible Noteholders, or (ii) the Consenting Oasis Noteholder if an Insolvency Proceeding is commenced
by any of the Company Parties; or

 

(f)          by
any of (i) the Consenting Convertible Noteholders, or (ii) the Consenting Oasis Noteholder if an Insolvency Proceeding is commenced
against any of the Company Parties and any of the following events occur: (a) such Company Party consents to the institution of
such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the
petition commencing the Insolvency Proceeding is not dismissed within thirty (30) calendar days of the date of the filing thereof,
(d) an interim trustee, receiver, interim receiver, trustee or monitor is appointed to take possession of all or any substantial
portion of the properties or assets of, or to operate all or any substantial portion of the business of, such Company Party, or
(e) an order for relief shall have been issued or entered therein.

 

The Party desiring to terminate this Agreement
pursuant to this Section 5.01 (other than pursuant to Section 5.01(a)) shall give written notice of such termination
to the other Parties in accordance with Section 6.12.

 

Section 5.02         Effect
of Termination. If this Agreement is terminated as permitted by Section 5.01, such termination shall be without liability
of any Party or its Affiliates to any other Party; provided that any termination of this Agreement shall not relieve or
release any Party from any liability arising out of (i) any willful and material failure of such Party to fulfill a condition
to the performance of the obligations of another Party set forth in this Agreement, (ii) any willful and material failure by such
Party to perform a covenant of this Agreement or (iii) any willful and material misrepresentation or breach with respect to any
of the representations and warranties specifically made by such Party in this Agreement. The provisions of this Section 5.02
and Section 3.06 and Article 6 shall survive any termination hereof pursuant to Section 5.01, subject
to Section 6.13 and Section 6.15.

 

    	 	25	 

     

    

 

Article
6

 

MISCELLANEOUS

 

Section 6.01         Amendments
and Waivers.

 

(a)          Any
provision of this Agreement may be amended if, and only if, such amendment is in writing and is duly executed by each of the Parties
hereto.

 

(b)          Any
provision of this Agreement may be waived if, and only if, such waiver is in writing and is duly executed by the Party against
whom the waiver is to be effective.

 

(c)          No
failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided
by Law.

 

(d)          Notwithstanding
anything else in this Agreement to the contrary, any consent, writing, waiver or other agreement of (x) the Consenting Convertible
Noteholders on or prior to the Closing Date shall be deemed to have been provided hereunder upon the consent, writing, waiver or
other agreement of the Consenting Convertible Noteholders who, as of the date of any such consent, writing, waiver, or other agreement,
collectively hold more than ninety-percent (90.0%) of the aggregate principal amount of Convertible Notes held by the Consenting
Convertible Noteholders as of the date of this Agreement, (y) the Consenting Convertible Noteholders following the Closing Date
shall be deemed to have been provided hereunder upon the consent, writing, waiver or other agreement of those parties who have
executed this Agreement as Consenting Convertible Noteholders and who, as of the date of any such consent, writing, waiver or other
agreement, collectively hold at least sixty-six and two-thirds percent (66.67%) of the shares of New Preferred Equity held by such
parties as of such date, and (z) the Consenting Oasis Noteholder shall be deemed to have been provided hereunder upon the consent,
writing, waiver or other agreement of the Consenting Oasis Noteholder who, as of the date of this Agreement, collectively hold
more than fifty-percent (50%) of the aggregate principal amount of Oasis Notes.

 

Section 6.02         Entire
Agreement.  This Agreement, including all other agreements referenced herein, and schedules and exhibits hereto, constitutes
the entire agreement among the Parties with respect to the subject matter hereof and thereof and supersede all prior agreements
and understandings, both oral and written, between the Parties with respect to such subject matter.

 

Section 6.03         Expenses.
At the Closing, JAKKS will pay (i) the fees and costs incurred by the Ad Hoc Group Advisors in connection with their representation
of certain of the Consenting Convertible Noteholders in the Transactions, and (ii) the fees and costs incurred by the Consenting
Oasis Noteholder Advisor in connection with its representation of the Consenting Oasis Noteholder in the Transactions. From and
after the Closing, JAKKS will pay the legal fees and costs incurred by the Consenting Convertible Noteholders in connection with
any post-closing obligations of the Consenting Convertible Noteholders or the Company contemplated by this Agreement.

 

    	 	26	 

     

    

 

Section 6.04         Survival.
The representations, warranties, covenants and agreements of the parties hereto contained in this Agreement shall survive the
Closing.

 

Section 6.05         Third
Party Beneficiaries. No provision of this Agreement is intended to confer upon any Person other than the Parties and their
respective heirs, legal and personal representatives, successors and permitted assigns any right, remedies, benefits, obligations
or liabilities.

 

Section 6.06         Successors
and Assigns. Other than as set forth in Section 6.13 and Section 6.14, the provisions of this Agreement shall
be binding upon and inure to the benefit of the Parties and their respective heirs, legal and personal representatives, successors
and permitted assigns; provided that the Company may not assign, transfer or in any manner convey (including by merger, asset
sale or otherwise) all or any part of its rights or obligations under this Agreement to any other Person, without the prior written
consent of the Consenting Noteholders.

 

Section 6.07         Severability.
If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability
of the remaining provisions of this Agreement shall not be affected or impaired thereby so long as this Agreement as so modified
continues to express, without material change, the original intentions of the Parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the Parties or the practical realization of the benefits that would otherwise be conferred
upon the Parties, and (b) the Parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

Section 6.08         Specific
Performance. The Parties recognize that irreparable injury may result from a breach of any provision of this Agreement and
that money damages may be inadequate to fully remedy the injury. Accordingly, in the event of a breach or threatened breach of
one or more of the provisions of this Agreement, any party to this Agreement who may be injured (in addition to any other rights
and remedies that may be available to such Person under this Agreement, any other agreement or under any law) shall be entitled
to seek (without posting a bond or other security) one or more preliminary or permanent orders (i) restraining and enjoining any
act which would constitute a breach or (ii) compelling the performance of any obligation which, if not performed, would constitute
a breach.

 

Section 6.09         Governing
Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York without regard
to its conflict of laws principles.

 

Section 6.10         Jurisdiction
and Venue. The Parties agree that (subject to the last sentence of this Section 6.10) any suit, action or proceeding
seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the Transactions
shall be brought in the United States District Court for the Southern District of New York or, if such court is unavailable, in
any New York State court sitting in the Borough of Manhattan of the City of New York, and each of the parties hereby irrevocably
consents to the exclusive jurisdiction of such court (and of the appropriate appellate courts therefrom) in any such suit, action
or proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection that he, she or it may now or hereafter
have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding
which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may
be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the
foregoing, each Party agrees that service of process on such Party as provided in Section 6.12 shall be deemed effective
service of process on such Party. Notwithstanding the foregoing, the Parties agree that any dispute, suit, action or proceeding
relating to any rights with respect to the New Securities may be brought before the Court of Chancery of the State of Delaware
(or, if the federal courts have exclusive jurisdiction over the matter, the United States District Court for the District of Delaware).

 

    	 	27	 

     

    

 

Section 6.11         Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 6.12         Notices.
All notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be given or
made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by
facsimile with receipt confirmed, by electronic mail (provided that, in the case of electronic mail, either receipt of
such electronic mail is acknowledged by the applicable recipient or a confirmatory hardcopy is sent without undue delay by an
internationally recognized courier service ) or by registered or certified mail (postage prepaid, return receipt requested) to
the respective parties at the following addresses:

 

(a)          if
to the Company and/or any of the Company Parties:

 

c/o JAKKS Pacific, Inc.

2951 28th Street

Santa Monica, California 90405

Attention:Brent Novak

Facsimile:(424) 286-9655

E-mail:      bnovak@jakks.net

 

with a copy (which shall not constitute notice) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

300 S. Grand Avenue, Suite 3400

Los Angeles, California 90071

Attention: Brian J. McCarthy

    Van C. Durrer II

Facsimile:  (213) 621-5070

    (213) 621-5200

Email:       brian.mccarthy@skadden.com

    van.durrer@skadden.com

 

(b)          if
to the Consenting Convertible Noteholders: as indicated on such Consenting Convertible Noteholder’s signature page hereto.

 

with a copy (which shall not constitute notice) to:

 

c/o Stroock & Stroock & Lavan LLP

2029 Century Park East

Los Angeles, California 90067

Attention: Frank A. Merola

Facsimile:  (310) 556-5959

Email:        fmerola@stroock.com

 

    	 	28	 

     

    

 

and

 

c/o Stroock & Stroock & Lavan LLP

180 Maiden Lane

New York, New York 10038

Attention: Jeffrey Lowenthal

Facsimile:  (212) 806-6006

Email:        jlowenthal@stroock.com

 

(c)          if
to the Consenting Oasis Noteholder:

 

c/o Oasis Legal

Oasis Management (Hong Kong) LLC

21st Floor, Man Yee Building

68 Des Voeux Road Central

Central, Hong Kong

Attention: General Counsel

Email:        OasisLegal@oasiscm.com

    ashoghi@us.oasiscm.com

 

with a copy (which shall not constitute notice) to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Eleazer N. Klein

Facsimile: (212) 593-5955

Email:        eleazer.klein@srz.com

 

All notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is
a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received
until the next succeeding Business Day in the place of receipt.

 

Section 6.13         Waiver.
Notwithstanding anything to the contrary set forth in this Agreement and irrespective of whether the Closing occurs, except as
provided for in Section 6.08 and Section 6.15, each Party hereby expressly waives any and all remedies and claims
whether in law or in equity (whether based upon contract, tort or otherwise), that such Person may have against any other Party
and such Party’s Affiliates (individually or collectively) with respect to any Damages suffered in connection with this
Agreement or the Transactions or any oral representation made or alleged to be made in connection herewith. Except as provided
for in Section 6.08 and Section 6.15, and irrespective of whether the Closing occurs, each Party hereby irrevocably
and unconditionally releases, acquits, waives and forever discharges each other Party and such Party’s Affiliates and their
respective current and former principals, officers, directors, managers, employees, agents, attorneys, successors, assigns, indemnitees
and representatives of any kind, from and against any and all remedies, actions, causes of action, suits, proceedings, executions,
judgments, duties, debts, dues, accounts, bonds, contracts, covenants and claims whether in law or in equity (whether based upon
contract, tort or otherwise) pending on, or asserted after, the date hereof, in each case with respect to (i) any and all Damages
arising out of or in connection with this Agreement or the transactions contemplated hereby or any oral representation made or
alleged to be made in connection herewith whether or not relating to liabilities, claims or Damages pending on, or asserted after,
the date hereof, and (ii) any cause, matter or thing relating to JAKKS or any of its current or former Subsidiaries or any actions
taken or failed to be taken by any Party in any capacity related to JAKKS or any of its current or former Subsidiaries occurring
or arising on or prior to the date hereof; provided that the foregoing shall not affect the Parties’ rights and obligations
(i) under all agreements existing as of the date hereof by and among the Parties which relate to JAKKS, through the Closing (to
the extent the Closing occurs), and (ii) under all agreements by and among the Parties which relate to JAKKS to be entered into
at the Closing.

 

    	 	29	 

     

    

 

Section 6.14         No
Recourse. This Agreement may only be enforced against, and any claim, action, suit or other legal proceeding based upon, arising
out of, or related to this Agreement, or the negotiation, execution or performance of this Agreement, may only be brought against
the Persons that are expressly named as Parties hereto and then only with respect to the specific obligations set forth herein
with respect to such Party. Except as provided in the immediately preceding sentence, no past, present or future principal, officer,
director, manager, employee, incorporator, manager, member, general or limited partner, stockholder, equityholder, controlling
person, Affiliate, agent, attorney or other representative of any party hereto or any of their successors or permitted assigns
or any direct or indirect principal, officer, director, manager, employee, incorporator, manager, member, general or limited partner,
stockholder, equityholder, controlling person, Affiliate, agent, attorney, representative, successor or permitted assign of any
of the foregoing (each, a “Non-Recourse Party”), shall have any liability
for any obligations or liabilities of any Party hereto under this Agreement or for any claim or action (whether in tort, contract
or otherwise) based on, in respect of or by reason of the transactions contemplated hereby or in respect of any written or oral
representations made or alleged to be made in connection herewith. Without limiting the rights of any Party to this Agreement
against any other Party hereto, in no event shall any Party make any claims for breach of this Agreement against, or seek to recover
monetary damages from, any Non-Recourse Party.

 

Section 6.15         Releases.
Upon Closing, each of the Parties, on behalf of itself and its successors or assigns (collectively, the “Releasing
Parties”), in consideration of the Consenting Convertible Noteholders’ and Consenting Oasis Noteholder’s
execution of this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
unconditionally, freely, voluntarily and, after consultation with counsel and becoming fully and adequately informed as to the
relevant facts, circumstances and consequences, releases, waives and forever discharges (and further agrees not to allege, claim
or pursue) any and all claims, rights, causes of action, counterclaims or defense of any kind whatsoever, in contract, in tort,
in law or in equity, whether known or unknown, fixed or contingent, direct or indirect, joint and/or several, secured or unsecured,
due or not due, liquidated or unliquidated, asserted or unasserted, or foreseen or unforeseen, which any of the Releasing Parties
might otherwise have or may have against any of the other Releasing Parties and their predecessors, successors and assigns, Affiliates,
managed accounts or funds, and all of their respective current and former officers, directors, principals, stockholders (and any
fund managers, fiduciaries or other agents of stockholders with any involvement related to JAKKS), members, partners, employees,
agents, advisory board members, financial advisors, attorneys, accountants, investment bankers, consultants, representatives,
management companies, fund advisors and other professionals, and such persons’ respective heirs, executors, estates, servants
and nominees (any of the foregoing, a “Related Party,” and collectively,
the “Releasees”) in each case on account of any conduct, condition,
act, omission, event, contract, liability, obligation, demand, covenant, promise, indebtedness, claim, right, cause of action,
suit, damage, defense, judgment, circumstance or matter of any kind whatsoever which existed, arose or occurred at any time prior
to the date of this Agreement relating to the New Common Equity, the New Preferred Equity, the Notes, this Agreement and/or the
transactions contemplated thereby or hereby (any of the foregoing, a “Claim”
and collectively, the “Claims”); provided; however, that nothing
in this Agreement, including, without limitation, in Section 6.13 and this Section 6.15, shall operate to waive
or release (i) any Claim arising from or relating to any act or omission of a Released Party that constitutes fraud, willful misconduct,
gross negligence or a criminal act, or (ii) any obligations of any party under this Agreement or any other Transaction Document
or under any other document or instrument executed in connection with the transactions contemplated by this Agreement or any other
Transaction Documents. Each of the Releasing Parties expressly acknowledges and agrees, with respect to the Claims released pursuant
to this Section 6.15, that it waives, to the fullest extent permitted by applicable law, any and all provisions, rights
and benefits conferred by any applicable U.S. federal or state law, or any principle of U.S. common law, including Section 1542
of the California Civil Code, that would otherwise limit a release or discharge of any unknown Claims pursuant to this Section
6.15. Furthermore, each of the Releasing Parties 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 and/or discharged by the Releasing Parties pursuant to this Section 6.15.

  

    	 	30	 

     

    

 

Section 6.16         Counterparts.
This Agreement may be signed in any number of counterparts (including via facsimile or other electronic method), each of which
shall be deemed to be an original, with the same effect as if the signatures were upon the same instrument.

 

[Remainder of this page intentionally
left blank]

 

    	 	31	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first written above.

 

	 	JAKKS PACIFIC, INC.
	 	 	 
	 	By:	/s/ Stephen G. Berman
	 	Name:	Stephen G. Berman
	 	Title:	President, Chief Executive Officer and Secretary

 

[Signature Page to Transaction Agreement]

 

     

     

    

 

COMPANY PARTIES:

 

	 	DISGUISE, INC.
	 	 	 
	 	By:	/s/ Stephen G. Berman
	 	Name:	Stephen G. Berman
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	JAKKS SALES LLC
	 	 	 
	 	By:	/s/ Stephen G. Berman
	 	Name:	Stephen G. Berman
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	MAUI, INC.
	 	 	 
	 	By:	/s/ Stephen G. Berman
	 	Name:	Stephen G. Berman
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	MOOSE MOUNTAIN MARKETING, INC.
	 	 	 
	 	By:	/s/ Stephen G. Berman
	 	Name:	Stephen G. Berman
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	KIDS ONLY, INC.
	 	 	 
	 	By:	/s/ Stephen G. Berman
	 	Name:	Stephen G. Berman
	 	Title:	President and Chief Executive Officer

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	AXAR CAPITAL MANAGEMENT, LP, as 
	 	beneficial owner of certain client accounts holding Convertible Notes
	 	 	 
	 	By:	/s/ Andrew Axelrod
	 	Name:	Andrew Axelrod
	 	Title:	Authorized Signatory

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $20,248,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Axar Capital Management LP
	 	 	1330 Avenue of the Americas, 30th Floor
	 	 	New York, NY 10019
	 	Attention:	Ricardo Mosquera
	 	Telephone:	(212) 356-6137
	 	Facsimile:	(212) 956-3127
	 	E-mail:	rmosquera@axarcapital.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	Goldman Sachs
	 	 	200 W Street 6th Floor
	 	 	New York, NY 10282
	 	Attention:	Daniel B. Aree-Yee
	 	Telephone:	(212) 357-8169
	 	Facsimile:	[●]
	 	E-mail:	Daniel.Aree-Yee@gs.com
	Broker DTC Participant #:      	GS/0005

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	BSP SPECIAL SITUATIONS MASTER A L.P., 
	 	as a Noteholder
	 	 	 
	 	By:	/s/ Bryan Martoken
	 	Name:	Bryan Martoken
	 	Title:	Chief Financial Officer

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $19,865,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Benefit Street Partners LLC
	 	 	399 Boylston St, Suite 901
	 	 	Boston, MA 02116
	 	Attention:	Marlon Thompson
	 	Telephone:	(212) 623-6544
	 	Facsimile:	[●]
	 	E-mail:	M.Thompson@benefitstreetpartners.com;
	 	 	moconfirm@benefitstreetpartners.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	J.P. Morgan Clearing Corp
	 	 	383 Madison Avenue, 4th Floor
	 	 	New York, NY 10179
	 	Attention:	Rachael Ranieri
	 	Telephone:	(212) 623-6544
	 	Facsimile:	[●]
	 	E-mail:	Rachael.c.ranieri@jpmorgan.com;
	 	 	pbmo_benefitstreet@jpmorgan.com
	Broker DTC Participant #:      	DTC 352, Agent ID 94012, Institutional
	 	 	ID 94012, Account # 10247954

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	MOAB PARTNERS, L.P., as a Noteholder
	 	 	 
	 	By:	/s/ Chad Goldstein
	 	Name:	Chad Goldstein
	 	Title:	Chief Financial Officer / Chief Compliance

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $31,062,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Moab Capital Partners, LLC
	 	 	152 West 57th Street, 9th Floor
	 	 	New York NY 10019
	 	Attention:	Chad Goldstein CFO/COO
	 	Telephone:	(212) 981-2623
	 	Facsimile:	(212) 651-1289
	 	E-mail:	cg@moabpartners.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	JP Morgan
	 	 	383 Madison Avenue, 4th Floor
	 	 	New York, NY 10179
	 	Attention:	Kwame Agyeman
	 	Telephone:	(347) 643-2592
	 	Facsimile:	[●]
	 	E-mail:	Americas.pbmo.ii@jpmorgan.com
	Broker DTC Participant #:      	DTC 352

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	UBS O’Connor, LLC on behalf of:
	 	NINETEEN77 GLOBAL MULTI-STRATEGY ALPHA MASTER LIMITED, as a Noteholder
	 	 	 
	 	By:	/s/ Jeff Richmond
	 	Name:	Jeff Richmond
	 	Title:	Executive Director
	 	 	 
	 	By:	/s/ James DelMedico
	 	Name:	James DelMedico
	 	Title:	Executive Director

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $21,270,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	UBS O’Connor LLC
	 	 	1 North Wacker Drive, 32nd Floor
	 	 	Chicago, IL 60606
	 	Attention:	Jeff R. Richmond
	 	Telephone:	(312) 525-5839
	 	Facsimile:	(312) 525-6271
	 	E-mail:	Jeff. Richmond@ubs.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	Citi Investor Services
	 	 	390 Greenwich Street, 6th Floor
	 	 	New York, NY 10013
	 	Attention:	Jay Aaronson
	 	Telephone:	(212) 723-5690
	 	Facsimile:	[●]
	 	E-mail:	Jay.Aaronson@citi.com
	Broker DTC Participant #:      	DTC 505

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	CITADEL EQUITY FUND LTD., as a Noteholder
	 	BY: CITADEL ADVISORS LLC, ITS PORTFOLIO MANAGER
	 	 	 
	 	By:	/s/ Christopher Ramsay
	 	Name:	Christopher Ramsay
	 	Title:	Authorized Signatory

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $3,500,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	131 S Dearborn Street, 32nd Floor
	 	 	Chicago, IL 60603
	 	Attention:	Kevin Newstead
	 	Telephone:	(312) 395-4887
	 	Facsimile:	(312) 395-7300
	 	E-mail:	kevin.newstead@citadel.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	BOFA Securities, Inc.
	 	 	222 Broadway, 11th Floor
	 	 	New York, NY 10038
	 	Attention:	Halima Dayton
	 	Telephone:	(312) 992-2398
	 	Facsimile:	(212) 553-2086
	 	E-mail:	Halima.Dayton@bofa.com
	Broker DTC Participant #:      	DTC 5198

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	CONCISE SHORT TERM HIGH YIELD 
	 	MASTER FUND SPC, as a Noteholder
	 	 	 
	 	By:	/s/ Thomas Krasner
	 	Name:	Thomas Krasner
	 	Title:	Principal

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $1,882,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Concise Capital Management, LP
	 	 	1111 Brickell Avenue, Suite 1525
	 	 	Miami, FL 33131
	 	Attention:	Thomas Krasner
	 	Telephone:	(305) 371-4578
	 	Facsimile:	(305) 503-8839
	 	E-mail:	Trade@concisecapital.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	Cowen Prime Services LLC
	 	 	599 Lexington Avenue, 27th Floor
	 	 	New York, NY 10022
	 	Attention:	Christopher Luppino
	 	Telephone:	(646) 562-1679
	 	Facsimile:	[●]
	 	E-mail:	operations@cowenprime.com;
	 	 	Christopher.Luppino@cowen.com
	Broker DTC Participant #:      	DTC 443

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	MERCER QIF FUND PLC – MERCER INVESTMENT FUND I, as a Noteholder
	 	 	 
	 	By:	/s/ Thomas Krasner
	 	Name:	Thomas Krasner
	 	Title:	Principal

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $3,588,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Concise Capital Management, LP
	 	 	1111 Brickell Avenue, Suite 1525
	 	 	Miami, FL 33131
	 	Attention:	Thomas Krasner
	 	Telephone:	(305) 371-4578
	 	Facsimile:	(305) 503-8839
	 	E-mail:	Trade@concisecapital.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	State Street
	 	 	1776 Heritage Drive
	 	 	Quincy, Ma 02171
	 	Attention:	Melissa Curlanis
	 	Telephone:	(617) 985-3289
	 	Facsimile:	[●]
	 	E-mail:	SSC_AMS24_INC@StateStreet.com
	 	 	mkcurlanis@statestreet.com
	Broker DTC Participant #:      	DTC 997

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	THE SARATOGA ADVANTAGE TRUST – 
	 	JAMES ALPHA HEDGED HIGH INCOME PORTFOLIO, as a Noteholder
	 	 	 
	 	By:	/s/ Thomas Krasner
	 	Name:	Thomas Krasner
	 	Title:	Principal

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $337,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Concise Capital Management, LP
	 	 	1111 Brickell Avenue, Suite 1525
	 	 	Miami, FL 33131
	 	Attention:	Thomas Krasner
	 	Telephone:	(305) 371-4578
	 	Facsimile:	(305) 503-8839
	 	E-mail:	Trade@concisecapital.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	Bank of New York
	 	 	2 Hanson Place, 7th Floor
	 	 	Brooklyn, NY 11217
	 	Attention:	Bernard Poelker
	 	Telephone:	(718) 315-3624
	 	Facsimile:	[●]
	 	E-mail:	bernard.poelker@bnymellon.com;
	 	 	GeminiNE-Custody@ultimusfundsolutions.com
	Broker DTC Participant #:      	DTC 901

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	CONCISE SHORT TERM HIGH YIELD 
	 	FUND, as a Noteholder
	 	 	 
	 	By:	/s/ Thomas Krasner
	 	Name:	Thomas Krasner
	 	Title:	Principal

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $1,825,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Concise Capital Management, LP
	 	 	1111 Brickell Avenue, Suite 1525,
	 	 	Miami, FL 33131
	 	Attention:	Thomas Krasner
	 	Telephone:	(305) 371-4578
	 	Facsimile:	(305) 503-8839
	 	E-mail:	Trade@concisecapital.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	JP Morgan
	 	 	4 Chase Metrotech Center, 6th Floor
	 	 	Brooklyn, NY 11245
	 	Attention:	Stephen Tamayo
	 	Telephone:	(718) 242-5628
	 	Facsimile:	[●]
	 	E-mail:	Stephen.v.tamayo@jpmorgan.com;
	 	 	custody.mo.red@jpmorgan.com
	Broker DTC Participant #:      	DTC 902

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING CONVERTIBLE NOTEHOLDERS:

 

	 	THE BEEBEE FOUNDATION, 
	 	as a Noteholder
	 	 	 
	 	By:	/s/ Thomas Krasner
	 	Name:	Thomas Krasner
	 	Title:	Principal

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $268,000
	 	 
	 	Consenting Noteholder Contact
	 	Address:	Concise Capital Management, LP
	 	 	1111 Brickell Avenue, Suite 1525,
	 	 	Miami, FL 33131
	 	Attention:	Thomas Krasner
	 	Telephone:	(305) 371-4578
	 	Facsimile:	(305) 503-8839
	 	E-mail:	Trade@concisecapital.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	Northern Trust
	 	 	801 South Canal
	 	 	Chicago, IL 60607
	 	Attention:	Carmen Lopez
	 	Telephone:	(312) 557-7739
	 	Facsimile:	[●]
	 	E-mail:	IMLG_National_Team@ntrs.com;
	 	 	cl26@ntrs.com
	Broker DTC Participant #:      	DTC 2669

 

[Signature Page to Transaction Agreement]

  

     

     

    

 

CONSENTING OASIS NOTEHOLDER:

 

	 	OASIS INVESTMENTS II MASTER FUND LTD.
	 	 	 
	 	By:	/s/ Phillip Meyer
	 	Name:	Phillip Meyer
	 	Title:	Director

 

	 	Aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $7,250,000
	 	 
	 	Total accrued but unpaid interest on aggregate principal amount of Convertible Notes issued pursuant to Rule 144A (CUSIP No. 47012EAG1) held on the date hereof: $66,760.42
	 	 
	 	Aggregate principal amount of 2017 Oasis Notes issued pursuant to Rule 144A (CUSIP No. AP9531629) held on the date hereof: $21,550,000
	 	 
	 	Aggregate principal amount of 2018 Oasis Notes issued pursuant to Rule 144A (CUSIP No. AT7867597) held on the date hereof: $8,000,000
	 	 
	 	Total accrued but unpaid interest on aggregate principal amount of Oasis Notes held on the date hereof: $261,435.42
	 	 	 
	 	Consenting Noteholder Contact
	 	Address:	c/o Oasis Legal
	 	 	Oasis Management (Hong Kong)
	 	 	21st Floor, Man Yee Building, 68 Des Voeux Road, Central, Hong Kong
	 	Attention:	General Counsel
	 	Telephone:	(852) 2847 7708
	 	E-mail:	OasisLegal@oasiscm.com &
	 	 	ashoghi@us.oasiscm.com
	 	 	 
	 	DTC Participant/Broker Contact
	 	Address:	 
	 	 	 
	 	 	 
	 	Attention:	 
	 	Telephone:	 
	 	Facsimile:	 
	 	E-mail:	 
	Broker DTC Participant #:      	5208

 

[Signature Page to Transaction Agreement]

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