Document:

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                                                                     EXHIBIT 4.2

                               JAKKS PACIFIC, INC.

                        CONVERTIBLE SENIOR NOTE DUE 2023

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, REGISTRATION. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
(THE "RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATED PERSON OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY) UNLESS SUCH OFFER, SALE OR OTHER TRANSFER IS (A)
TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON THE HOLDER REASONABLY
BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
FROM THE

<PAGE>

REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND
THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE
(D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES,
SUBJECT TO A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS SECURITY
BEING COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL
BE REMOVED UPON THE REQUEST OF THE HOLDER OF THIS SECURITY AFTER THE RESALE
RESTRICTION TERMINATION DATE.

THE COMPANY AGREES, AND BY ACCEPTANCE OF BENEFICIAL OWNERSHIP INTEREST IN THE
SECURITIES EACH BENEFICIAL HOLDER OF SUCH SECURITIES WILL BE DEEMED TO HAVE
AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES (1) TO TREAT THE
SECURITIES OF THIS SERIES AS INDEBTEDNESS THAT IS SUBJECT TO TREAS. REG. SEC.
1.1275-4 (THE "CONTINGENT PAYMENT REGULATIONS") AND, FOR PURPOSES OF THE
CONTINGENT PAYMENT REGULATIONS, TO TREAT THE FAIR MARKET VALUE OF ANY STOCK
BENEFICIALLY RECEIVED BY A BENEFICIAL HOLDER UPON ANY CONVERSION OR REPURCHASE
OF SUCH SECURITIES AS A CONTINGENT PAYMENT AND (2) TO BE BOUND BY THE COMPANY'S
DETERMINATION OF THE "COMPARABLE YIELD" AND "PROJECTED PAYMENT SCHEDULE," WITHIN
THE MEANING OF THE CONTINGENT PAYMENT REGULATIONS, WITH RESPECT TO THE
SECURITIES OF THIS SERIES. A HOLDER OF SECURITIES OF THIS SERIES MAY OBTAIN THE
ISSUE PRICE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO
MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR SUCH SECURITIES BY
SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE COMPANY AT THE
FOLLOWING ADDRESS: JAKKS PACIFIC, INC., 22619 PACIFIC COAST HIGHWAY, MALIBU,
CALIFORNIA, 90265-5080, ATTENTION: CHIEF FINANCIAL OFFICER.

                               JAKKS PACIFIC, INC.

                        CONVERTIBLE SENIOR NOTE DUE 2023

Cusip No.:47012EAA4                   No: 1                          $98,000,000

         JAKKS PACIFIC, INC., a corporation duly existing and qualified under
the laws of the State of Delaware (herein called the "Company," which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to Cede & Co., or registered assigns, on
June 15, 2023, the Accreted Principal Amount of this Security on such date, plus
accrued and unpaid interest (including Contingent Interest and Additional
Amounts), if any. For the sake of clarity, the Accreted Principal Amount of this
Security on June 15, 2023 will be $1,811.95 for every $1,000 of Principal Amount
at Issuance of this Security, which, assuming that the aggregate Principal
Amount at Issuance of this Security is $98,000,000, is $177,571,100. The
Principal Amount at Issuance of this Security is $98,000,000.

<PAGE>

         In addition, for value received, the Company hereby promises to pay to
Cede & Co., or registered assigns, (i) from June 9, 2003, or from the most
recent Interest Payment Date to which interest has been paid or provided for,
to, but not including June 15, 2010, cash interest at an annual rate of 4.625%
of the Principal Amount at Issuance and (ii) from and after June 15, 2010, no
cash interest shall be paid. Cash interest on this Security is payable
semi-annually in arrears on June 15 and December 15 in each year, with the first
Interest Payment Date being December 15, 2003, and will be computed on the basis
of a 360-day year comprised of twelve 30-day months. Each payment of cash
interest on this Security will include interest accrued through the day before
the applicable Interest Payment Date (or Optional Repurchase Date, Fundamental
Change Repurchase Date, Redemption Date or, in certain circumstances, Conversion
Date, as the case may be).

         The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest
payment, which shall be the May 15 or November 15 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid, or duly provided for, and interest on such
Defaulted Interest at the interest rate borne by the Securities, to the extent
lawful, shall forthwith cease to be payable to the Holder on such Regular Record
Date, and may either be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities not less
than 10 days prior to such Special Record Date, or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

         Subject to the conditions of the Indenture and the accrual and record
date provisions specified below, the Company shall pay contingent interest
("Contingent Interest") to the Holders during any six-month period from June 15
to December 14 and from December 15 to June 14, commencing with the six-month
period beginning June 15, 2010, if the average Security Price for the
Five-Trading-Day Measurement Period with respect to such six month period equals
120% or more of the Accreted Principal Amount of such Securities to, but
excluding, the day immediately preceding the first day of the relevant six month
period. Contingent Interest will be paid only in cash.

         Contingent Interest, if any, will accrue from June 15 or December 15,
as applicable, and will be payable on the next succeeding Interest Payment Date.
Contingent Interest will be paid to the Person in whose name a Security is
registered on the next preceding Regular Record Date on which Contingent
Interest is payable.

         The amount of Contingent Interest payable per Security in respect of
any six-month period will equal 0.375% per annum of the average Security Price
for the Five-Trading-Day Measurement Period.

         The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement, dated as of June 9, 2003, between the Company and
the Initial Purchaser, including

<PAGE>

the provisions contained therein regarding the payment of Additional Amounts (as
defined therein). Any Additional Amounts due pursuant to the Registration Rights
Agreement will be payable in cash on the Interest Payment Dates related to the
Securities. The Additional Amounts will be determined by multiplying the
applicable Additional Amounts rate by the Accreted Principal Amount of the
Securities, multiplied by a fraction the numerator of which is the number of
days such Additional Amounts rate was applicable during the period, and the
denominator of which is 360.

         Payment of the Accreted Principal Amount and interest (including
Contingent Interest and Additional Amounts) on this Security will be made at the
office or agency of the Company maintained for that purpose, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Company by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Security Register. If any of the Securities are held by the Depositary, payments
of interest (including Contingent Interest and Additional Amounts) to the
Depositary may be made by wire transfer to the Depositary.

         Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         All references in this Security or in the Indenture to "interest" or
"accrued and unpaid interest" shall be deemed to include, to the extent
applicable, a reference to Additional Amounts and Contingent Interest.

         Unless the certificate of authentication hereon has been duly executed
by the Trustee referred to on the reverse hereof or by the authenticating agent
appointed as provided in the Indenture by manual signature, this Security shall
not be entitled to any benefit under the Indenture, or be valid or obligatory
for any purpose.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by the manual or facsimile signature of its authorized officers.

Dated: June 9, 2003               JAKKS PACIFIC, INC.

                                  By:_____________________________
                                     Chairman and Chief Executive Officer
Attest:

By:_______________________
   Assistant Secretary

                [TRUSTEE'S CERTIFICATE OF AUTHORIZATION FOLLOWS]

<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTIFICATION

         This is one of the Securities referred to in the within-mentioned
Indenture.

                                  WELLS FARGO BANK,
                                  NATIONAL ASSOCIATION, As Trustee

                                  By:___________________________________________
                                     Frank McDonald
Dated:  June 9, 2003

<PAGE>

                               JAKKS PACIFIC, INC.

                        CONVERTIBLE SENIOR NOTE DUE 2023

1. Indenture.

         This Security is one of a duly authorized issue of Securities of the
Company designated as its Convertible Senior Notes due 2023 (herein called the
"Securities"), limited in Principal Amount at Issuance to $98,000,000 which may
be issued under an indenture (herein called the "Indenture"), dated as of June
9, 2003, between the Company and Wells Fargo Bank, National Association, as
trustee (herein called the "Trustee," which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties, obligations and immunities thereunder of the Company, the
Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered. The Indenture does
not limit other Indebtedness of the Company or its Subsidiaries, secured or
unsecured.

2. Ranking.

         This Security constitutes a senior unsecured general obligation of the
Company, ranking equally with other existing and future senior unsecured
Indebtedness the Company has incurred or may incur, ranking senior in right of
payment to any future Indebtedness that is expressly made subordinate to the
Securities and ranking subordinate to secured Indebtedness the Company has
incurred.

3. Redemption at the Option of the Company.

         No sinking fund is provided for the Securities. The Securities are
subject to redemption for cash in whole or from time to time in part on or after
June 15, 2010, at the option of the Company, on not less than 30 nor more than
60 days' prior notice by first-class mail at a redemption price equal to the
Accreted Principal Amount of the Security so redeemed plus accrued and unpaid
interest (including Contingent Interest and Additional Amounts), if any, to but
excluding the Redemption Date.

         The Redemption Prices on June 15, 2010 and on each subsequent December
15 and June 15 thereafter prior to June 15, 2023 and on June 15, 2023 are set
forth in the table below. In addition to the Redemption Prices set forth on such
table, the Redemption Price on any Redemption Date that falls between the dates
listed would be the Accreted Principal Amount as of such Redemption Date plus
accrued and unpaid interest (including Contingent Interest and Additional
Amounts) to but excluding the Redemption Date (subject to the right of Holders
of record on relevant Interest Payment Dates to receive interest due on an
Interest Payment Date) that has accrued on a Security since the immediately
preceding date on which interest was paid.

<PAGE>

<TABLE>
<CAPTION>
                                                                       (3)
                               (1)                 (2)               Accreted
                         Principal Amount    Accrued Principal    Principal Amount
 Redemption Date           at Issuance          Accretion             (1)+(2)
<S>                      <C>                 <C>                 <C>
June 15, 2010               $1,000.00             $  0.00            $1,000.00
December 15, 2010           $1,000.00             $ 23.13            $1,023.13
June 15, 2011               $1,000.00             $ 46.78            $1,046.78
December 15, 2011           $1,000.00             $ 70.99            $1,070.99
June 15, 2012               $1,000.00             $ 95.76            $1,095.76
December 15, 2012           $1,000.00             $121.10            $1,121.10
June 15, 2013               $1,000.00             $147.02            $1,147.02
December 15, 2013           $1,000.00             $173.55            $1,173.55
June 15, 2014               $1,000.00             $200.69            $1,200.69
December 15, 2014           $1,000.00             $228.45            $1,228.45
June 15, 2015               $1,000.00             $256.86            $1,256.86
December 15, 2015           $1,000.00             $285.93            $1,285.93
June 15, 2016               $1,000.00             $315.66            $1,315.66
December 15, 2016           $1,000.00             $346.09            $1,346.09
June 15, 2017               $1,000.00             $377.22            $1,377.22
December 15, 2017           $1,000.00             $409.06            $1,409.06
June 15, 2018               $1,000.00             $441.65            $1,441.65
December 15, 2018           $1,000.00             $474.99            $1,474.99
June 15, 2019               $1,000.00             $509.09            $1,509.09
December 15, 2019           $1,000.00             $543.99            $1,543.99
June 15, 2020               $1,000.00             $579.70            $1,579.70
December 15, 2020           $1,000.00             $616.23            $1,616.23
June 15, 2021               $1,000.00             $653.60            $1,653.60
December 15, 2021           $1,000.00             $691.84            $1,691.84
June 15, 2022               $1,000.00             $730.97            $1,730.97
December 15, 2022           $1,000.00             $771.00            $1,771.00
June 15, 2023               $1,000.00             $811.95            $1,811.95
</TABLE>

         If less than all of the Securities are to be redeemed, the Trustee
shall select the Securities or portions thereof to be redeemed by lot, or in its
discretion, on a pro rata basis or by any other method the Trustee shall deem
fair and reasonable. If any Security is to be redeemed in part only, a new
Security in Principal Amount at Issuance equal to the unredeemed portion of
Principal Amount at Issuance will be issued. If a portion of a Holder's
Securities is selected for partial redemption and such Holder converts a portion
of its Securities, the converted portion will be deemed to be of the portion
selected for redemption.

         In the case of any redemption of Securities, interest installments
whose Stated Maturity is on or prior to the Redemption Date will be payable to
the Holders of such Securities of record as of the close of business on the
relevant record date referred to on the face hereof. Securities (or portions
thereof) whose redemption and payment is made in accordance with the Indenture
shall cease to bear interest from and after the date of redemption.

<PAGE>

4. Repurchase by the Company at the Option of the Holder.

         Each Holder may require the Company to repurchase on June 15, 2010,
June 15, 2013 and June 15, 2018, all or a portion of such Holder's Securities,
at a repurchase price equal to 100% of the principal amount plus any accrued and
unpaid interest (including Contingent Interest and Additional Amounts) to but
excluding the Optional Repurchase Date. Any Securities purchased on June 15,
2010 will be paid for in cash. Securities purchased on June 15, 2013 and June
15, 2018 may be purchased in cash, shares of Common Stock or a combination of
cash and shares of Common Stock at the Company's option, provided, however that
any accrued and unpaid interest (including Contingent Interest and Additional
Amounts) will be paid in cash.

         In addition, upon the occurrence of a Fundamental Change, each Holder
may require the Company to repurchase for cash all or a portion of such Holder's
Securities, at a purchase price in cash equal to the Accreted Principal Amount
on the date of repurchase plus any accrued and unpaid interest (including
Contingent Interest and Additional Amounts), if any, to, but excluding, the date
of repurchase. Securities submitted for repurchase must have a Principal Amount
at Issuance equal to $1,000 or multiples of $1,000.

         Holders have the right to withdraw any Optional Repurchase Notice or
Fundamental Change Repurchase Notice, as the case may be, by delivering to the
Paying Agent a written notice of withdrawal in accordance with the provisions of
the Indenture.

         In the event of redemption of this Security in part only, a new
Security or Securities for the unredeemed portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof.

5. Conversion.

         Under the circumstances provided for in, and subject to compliance with
the provisions of, the Indenture, a Holder of a Security may, at such Holder's
option, convert such Security (or any portion thereof equal to $1,000 Principal
Amount at Issuance or multiples of $1,000 in excess thereof) into shares of
Common Stock at the Conversion Rate in effect at the time of conversion;
provided, however, that if the Security is called for redemption pursuant to
Article Eleven of the Indenture or is submitted or presented for repurchase
pursuant to Articles Fourteen or Fifteen of the Indenture, the conversion right
will terminate at the close of business on the second Business Day immediately
preceding the Redemption Date, Optional Repurchase Date or the Fundamental
Change Repurchase Date, as the case may be, for such Security or such earlier
date as the Holder presents such Security for redemption or repurchase (unless
the Company shall default in paying the redemption payment, Optional Repurchase
Price or Fundamental Change Repurchase Price, as the case may be, when due, in
which case the conversion right shall terminate at the close of business on the
date such default is cured and such Security is redeemed or purchased, as the
case may be).

         The Company will notify Holders of any event triggering the right to
convert the Security as specified above in accordance with the Indenture.

         A Security in respect of which a Holder has delivered an Optional
Repurchase Notice or a Fundamental Change Repurchase Notice exercising the
option of such Holder to require the

<PAGE>

Company to repurchase such Security may be converted only if such notice is
withdrawn in accordance with the terms of the Indenture.

         The initial Conversion Rate is fifty (50) shares of Common Stock per
$1,000 Principal Amount at Issuance (with no effect given to any accretion on
such amount from and after June 15, 2010), subject to adjustment under certain
circumstances. No fractional shares will be issued upon conversion; in lieu
thereof, an amount will be paid in cash based upon the Sale Price of the Common
Stock on the Trading Day immediately prior to the Conversion Date.

         To convert a Security, a Holder must (a) complete and manually sign the
conversion notice set forth below and deliver such notice to a Conversion Agent,
(b) surrender the Security to a Conversion Agent, (c) furnish appropriate
endorsements and transfer documents if required by a Registrar or a Conversion
Agent, and (d) pay any transfer or similar tax, if required. The Conversion
Agent may assume that any Holder that delivers a conversion notice is entitled
to convert this Security without independent verification.

         A Holder may convert a portion of the Securities of this series only if
the principal amount of such portion is $1,000 or an integral multiple of
$1,000. No payment or adjustment shall be made for dividends on the Common Stock
except as provided in the Indenture. On conversion of Securities of this series,
that portion of accrued and unpaid interest, including Contingent Interest and
Additional Amounts on such Securities attributable to the period from the most
recent Interest Payment Date (or, if no Interest Payment Date has occurred, from
the Original Issue Date) through the Conversion Date and Tax Original Issue
Discount accrued through the Conversion Date with respect to such converted
Securities shall not be cancelled, extinguished or forfeited, but rather shall
be deemed to be paid in full to the Holder thereof through delivery of the
Common Stock (together with any cash payment in lieu of fractional shares) in
exchange for such Securities being converted pursuant to the provisions hereof,
and the fair market value of such shares of Common Stock (together with any such
cash payment in lieu of fractional shares) shall be treated as issued, to the
extent thereof, first in exchange for accrued and unpaid interest (including
Contingent Interest and Additional Amounts) and Tax Original Issue Discount
accrued through the Conversion Date and the balance, if any, of such fair market
value of such Common Stock (and any such cash payment), shall be treated as
issued in exchange for the Principal Amount at Issuance of such Securities being
converted pursuant to the provisions hereof.

6. Calculations.

         The Company will be responsible for making all calculations called for
under this Security. These calculations include, but are not limited to,
determinations of accrued interest, including Contingent Interest and Additional
Amounts, the Redemption Price, the Conversion Price, the Optional Repurchase
Price, the Fundamental Change Repurchase Price, the Sale Price of the Company's
Common Stock and other calculations related to a Holder's conversion rights. The
Company will make these calculations in good faith and, absent manifest error,
the calculations will be final and binding on any Holder of this Security. The
Company will provide a schedule of its calculations to each of the Trustee and
the Conversion Agent, and each of the Trustee and the Conversion Agent is
entitled to rely upon the accuracy of such calculations with

<PAGE>

independent verification. The Trustee may forward the Company's calculations to
any Holder of this Security upon request.

7. Events of Default.

         If an Event of Default shall occur and be continuing, the principal
amount of all the Securities may be declared due and payable in the manner and
with the effect provided in the Indenture.

8. Transfer; Exchange; Registration.

         If this Security is in certificated form, then as provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable on the Security Register of the Company, upon
surrender of this Security for registration of transfer at the office or agency
of the Company maintained for such purpose, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or its attorney duly
authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same principal amount, will be issued to the
designated transferee or transferees.

         The Securities are issuable only in registered form without coupons in
denominations of $1,000 of the Principal Amount at Issuance and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Securities are exchangeable for a like
aggregate Principal Amount at Issuance of a different authorized denomination,
as requested by the Holder surrendering the same.

         No service charge shall be made for any registration of transfer or
exchange or redemption of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

         Prior to and at the time of due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes (subject to provisions with respect to record
dates for the payment of interest), whether or not this Security is overdue, and
neither the Company, the Trustee nor any agent shall be affected by notice to
the contrary.

         If this Security is a Global Security, except as described below, it is
not exchangeable for a Security or Securities in certificated form. The
Securities will be delivered in certificated form if (i) the Depositary ceases
to be registered as a clearing agency under the Exchange Act or is no longer
willing or able to provide securities depository services with respect to the
Securities, (ii) the Company so determines or (iii) there shall have occurred an
Event of Default or an event which, with the giving of notice or lapse of time
or both, would constitute an Event of Default with respect to the Securities
represented by such Global Security and such Event of Default or event continues
for a period of 90 days. Upon any such issuance, the Trustee is required to
register such certificated Security in the name of, and cause the same to be
delivered to, such Person or Persons (or the nominee of any thereof).

<PAGE>

         At any time when the Company is not subject to Sections 13 or 15(d) of
the Exchange Act, upon the written request of a Holder of a Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information to
such Holder or to a prospective purchaser of such Security who such Holder
informs the Company is reasonably believed to be a QIB, as the case may be, in
order to permit compliance by such Holder with Rule 144A under the Securities
Act.

9. Amendment.

         The Indenture permits, with certain exceptions (including certain
amendments permitted without the consent of any Holders) as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a specified
percentage of the Principal Amount at Issuance of the Securities at the time
Outstanding. The Indenture also contains provisions permitting the Holders of
specified percentages of the Principal Amount at Issuance of the Securities at
the time Outstanding, on behalf of the Holders of all the Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past Defaults under the Indenture and their consequences. Any such consent or
waiver by or on behalf of the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof whether or not notation of such consent or waiver is made upon
this Security.

10. No Impairment of Obligations.

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company or any
other obligor upon the Securities (in the event such other obligor is obligated
to make payments in respect of the Securities), which is absolute and
unconditional, to pay the principal of, premium, if any, and interest on this
Security at the times, place, and rate, and in the coin or currency, herein
prescribed.

11. Governing Law.

         THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS OF
LAWS PRINCIPLES THEREOF).

12. Defined Terms.

         All terms used in this Security which are defined in the Indenture and
not otherwise defined herein shall have the meanings assigned to them in the
Indenture.

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you wish to have this Security purchased by the Company pursuant to
Article Fourteen (Fundamental Change Notice) or Article Fifteen (Optional
Repurchase Notice), as applicable, of the Indenture, check the Box: Article
Fourteen [ ] Article Fifteen [ ].

         If you wish to have a portion of this Security purchased by the Company
pursuant to Article Fourteen or Article Fifteen, as applicable, of the
Indenture, state the amount (in Principal Amount at Issuance): $_______________.

         If certificated, the certificate numbers of the Securities to be
delivered for repurchase are ________________.

Date:  ___________________ Your Signature:  _____________________

(Sign exactly as your name appears on the other side of this Security)

Signature Guarantee:  __________________________________

Signature must be guaranteed by an eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and credit unions) with membership in an
approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15.

<PAGE>

                                CONVERSION NOTICE

To convert this Security into Common Stock of the Company, check the box: [ ]

To convert only part of this Security, state the Principal Amount at Issuance to
be converted (which must be $1,000 or an integral multiple of $1,000): _________

If you want the stock certificate made out in another person's name, fill in the
form below:
_______________________________________________________________________
(insert other person's name)

_______________________________________________________________________
(insert other person's social security or tax identification number)

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________
(insert other person's address and zip code)

Date: ______________________

Signature: ___________________<PAGE>

                                                                     EXHIBIT 4.3

                                                                  EXECUTION COPY
================================================================================

                          REGISTRATION RIGHTS AGREEMENT

                                     BETWEEN

                               JAKKS PACIFIC, INC.

                                       AND

                            BEAR, STEARNS & CO. INC.,

                            DATED AS OF JUNE 9, 2003

================================================================================

<PAGE>

         This REGISTRATION RIGHTS AGREEMENT, dated as of June 9, 2003, is
between JAKKS PACIFIC, INC., a Delaware corporation (together with any successor
entity, herein referred to as the "Issuer"), and BEAR, STEARNS & CO. INC. (the
"Initial Purchaser").

         Pursuant to the Purchase Agreement, dated June 4, 2003, between the
Issuer and the Initial Purchaser (the "Purchase Agreement"), the Initial
Purchaser has agreed to purchase from the Issuer $98,000,000 aggregate principal
amount at maturity of Convertible Senior Notes due 2023 (the "Notes"). The Notes
will be convertible into fully paid, nonassessable common stock, par value
$0.001 per share, of the Issuer (the "Common Stock") on the terms, and subject
to the conditions, set forth in the Indenture (as defined herein). To induce the
Initial Purchaser to purchase the Notes, and in satisfaction of a condition to
the Initial Purchaser's obligations under the Purchase Agreement, the Issuer has
agreed to provide the registration rights set forth in this Agreement.

         The Company agrees with the Initial Purchaser (i) for its benefit as
Initial Purchaser and (ii) for the benefit of the beneficial owners (including
the Initial Purchaser) from time to time of the Notes and the beneficial owners
from time to time of the Common Stock issued upon conversion of the Notes (each
of the foregoing a "Holder"), as follows:

         1.       Definitions.

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

         "Additional Amounts": As defined in Section 3(a) hereof.

         "Additional Amounts Payment Date": Each interest payment date with
respect to the Notes and each June 15 and December 15 in the case of the Common
Stock.

         "Advice": As defined in Section 4(c)(ii) hereof.

         "Affiliate": With respect to any specified Person, means an
"Affiliate," as defined in Rule 144 under the Securities Act, of such Person.

         "Agreement": This Registration Rights Agreement, as it may be amended
from time to time in accordance with the terms hereof.

         "Blue Sky Application": As defined in Section 6(a)(i) hereof.

         "Broker-Dealer": Any broker or dealer registered under the Exchange
Act.

         "Business Day": Each day of the year other than a Saturday or Sunday or
other day on which banking institutions in the City of New York are required or
authorized by law or regulation to close.

         "Closing Date": The date of this Agreement.

         "Commission": The United States Securities and Exchange Commission.

<PAGE>

         "Common Stock": The shares of common stock, par value $0.001 per share,
of the Issuer and any other shares of capital stock that may constitute "Common
Stock" for purposes of the Indenture.

         "Control": With respect to a Person, the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ability to exercise voting power,
by contract or otherwise.

         "Effectiveness Period": As defined in Section 2(a)(iii) hereof.

         "Effectiveness Target Date": As defined in Section 2(a)(ii) hereof.

         "Exchange Act": The Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission promulgated thereunder.

         "Holder": A Person who owns, beneficially or otherwise, Registrable
Securities.

         "Indemnified Party": As defined in Section 6(a) hereof.

         "Indenture": The Indenture, dated as of June 9, 2003, between the
Issuer and Wells Fargo Bank, N.A., as trustee (the "Trustee"), pursuant to which
the Notes are to be issued, as such Indenture is amended, modified or
supplemented from time to time in accordance with the terms thereof.

         "Initial Purchaser": As defined in the preamble hereto.

         "Issuer": As defined in the preamble hereto.

         "Majority of Holders": Holders holding over 50% of the aggregate
principal amount of Notes outstanding; provided that, for purposes of this
definition, a Holder of shares of Common Stock that constitute Registrable
Securities and that were issued upon conversion of the Notes shall be deemed to
hold an aggregate principal amount of Notes (in addition to the principal amount
of Notes held by such Holder) equal to the product of (x) the number of such
shares of Common Stock held by such Holder and (y) the prevailing conversion
price at the time of such conversion, such prevailing conversion price as
determined in accordance with the Indenture.

         "Nasd": National Association of Securities Dealers, Inc.

         "Notes": As defined in the preamble hereto, up to $98,000,000 aggregate
principal amount at maturity.

         "Person": An individual, partnership, corporation, unincorporated
organization, trust, joint venture or a government or agency or political
subdivision thereof.

         "Prospectus": The prospectus included in a Shelf Registration Statement
(including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 415 promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement and by all other

                                        3

<PAGE>

amendments thereto, including post-effective amendments, and all materials
incorporated by reference or deemed to be incorporated by reference into such
Prospectus.

         "Questionnaire Deadline": As defined in Section 2(b) hereof.

         "Record Holder": With respect to any Additional Amounts Payment Date,
each Person who is a Holder on the record date with respect to the interest
payment date on which such Additional Amounts Payment Date shall occur. In the
case of a Holder of shares of Common Stock issued upon conversion of the Notes,
"Record Holder" shall mean each Person who is a Holder of shares of Common Stock
that constitute Registrable Securities on the May 15 or November 15 immediately
preceding the Additional Amounts Payment Date.

         "Registrable Securities": Each Note and each share of Common Stock
issued upon conversion of Notes, and any securities into or for which such
Common Stock has been converted, and any security issued with respect thereto
upon any stock dividend, split or similar event, until, in the case of any such
security, (A) the earliest of (i) its effective registration under the
Securities Act and resale in accordance with the Registration Statement covering
it, (ii) expiration of the holding period that would be applicable thereto under
Rule 144(k) under the Securities Act were it not held by an Affiliate of the
Issuer, (iii) its sale to the public pursuant to Rule 144 under the Securities
Act and (iv) the date that is two years after the later of the original issuance
of the Notes and the last date that the Issuer or any of its Affiliates was the
owner of any such Notes (or any predecessor thereto), and (B) as a result of the
event or circumstance described in any of the foregoing clauses (i) through
(iv), the legends with respect to transfer restrictions required under the
Indenture are removed or removable in accordance with the terms of the Indenture
or such legend, as the case may be.

         "Registration Default": As defined in Section 3(a)(iii) hereof.

         "Registration Statement": Means any registration statement of the
Issuer that covers any of the Registrable Securities pursuant to the provisions
of this Agreement including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such registration statement.

         "Sale Notice": As defined in Section 4(e) hereof.

         "Securities Act": The Securities Act of 1933, as amended, and the rules
and regulations promulgated by the Commission thereunder.

         "Shelf Filing Deadline": As defined in Section 2(a)(i) hereof.

         "Shelf Registration Statement": As defined in Section 2(a)(i) hereof.

         "Suspension Period": As defined in Section 4(b)(i) hereof.

         "TIA": The Trust Indenture Act of 1939, as in effect on the date the
Indenture is qualified under that Act.

                                        4

<PAGE>

         "Underwriting Majority": On any date, Holders holding at least 66 2/3%
of the aggregate principal amount of the Registrable Securities outstanding on
such date; provided, that for the purpose of this definition, a holder of shares
of Common Stock that constitute Registrable Securities and issued upon
conversion of Notes shall be deemed to hold an aggregate principal amount of
Registrable Securities (in addition to the principal amount of Notes held by
such holder) equal to (x) the number of such shares of Common Stock that are
Registrable Securities held by such holder multiplied by (y) the then applicable
Conversion Price (as defined in the Indenture).

         "Underwritten Registration" or "Underwritten Offering": A registration
in which securities of the Issuer are sold to an underwriter for reoffering to
the public.

         2.       Shelf Registration.

                  (a)      The Issuer shall:

                           (i)      as soon as practicable but not later than 90
         days after the date hereof (the "Shelf Filing Deadline"), cause to be
         filed with the Commission a registration statement pursuant to Rule 415
         under the Securities Act (the "Shelf Registration Statement"), which
         Shelf Registration Statement shall provide for resales from time to
         time of all Registrable Securities held by the Holders thereof as of
         the Closing Date or for any other Holder who acquired the Notes
         subsequent to the Closing Date and who has notified the Issuer of its
         desire to be included as a Selling Stockholder in such Registration
         Statement;

                           (ii)     use its best efforts to cause the Shelf
         Registration Statement to be declared effective by the Commission as
         promptly as is practicable but in any event no later than 210 days
         after the date hereof (the "Effectiveness Target Date"); and

                           (iii)    subject to Section 4(b)(i) hereof, use its
         best efforts to keep the Shelf Registration Statement continuously
         effective, supplemented and amended as required by the provisions of
         Section 4(b) hereof to the extent necessary to ensure that (A) it is
         available for resales by the Holders of Registrable Securities entitled
         to the benefit of this Agreement and (B) conforms with the requirements
         of this Agreement and the Securities Act and the rules and regulations
         of the Commission promulgated thereunder as announced from time to time
         for a period (the "Effectiveness Period") ending on the earliest of:

                           (1)      two years after the later of the last date
                  of original issuance of any of the Notes and the date on which
                  we or any of our Affiliates owned any of the Notes;

                           (2)      the date on which Holders of Registrable
                  Securities are able to sell all of the Registrable Securities
                  immediately without restriction pursuant to Rule 144(k) under
                  the Securities Act;

                           (3)      the date when all of the Registrable
                  Securities of those Holders that have provided the information
                  required pursuant to the terms of Section 2(b)

                                        5

<PAGE>

                  hereof are registered under the Shelf Registration Statement
                  and disposed of in accordance with the terms of the Shelf
                  Registration Statement; and

                           (4)      the date when all of the Registrable
                  Securities of those Holders that have provided the information
                  required pursuant to the terms of Section 2(b) hereof have
                  ceased to be outstanding (whether as a result of redemption,
                  repurchase and cancellation, conversion or otherwise).

                  (b)      No Holder of Registrable Securities may include any
         of its Registrable Securities in the Shelf Registration Statement
         pursuant to this Agreement unless such Holder furnishes to the Issuer
         in writing, prior to or on the 30th Business Day after receipt of a
         request therefor (the "Questionnaire Deadline"), such information as
         the Issuer may reasonably request for use in connection with the Shelf
         Registration Statement or Prospectus or preliminary Prospectus included
         therein and in any application to be filed with or under state
         securities laws. In connection with all such requests for information
         from Holders of Registrable Securities, the Issuer shall notify such
         Holders of the requirements set forth in the preceding sentence. Each
         Holder as to which the Shelf Registration Statement is being effected
         agrees to furnish promptly to the Issuer all information required to be
         disclosed in order to make information previously furnished to the
         Issuer by such Holder not materially misleading.

         3.       Additional Amounts.

                  (a)      If:

                           (i)      the Shelf Registration Statement has not
         been filed with the Commission prior to or on the Shelf Filing
         Deadline,

                           (ii)     the Shelf Registration Statement has not
         been declared effective by the Commission prior to or on the
         Effectiveness Target Date,

                           (iii)    subject to the provisions of Section 4(b)(i)
         hereof, the Shelf Registration Statement is filed and declared
         effective but, during the Effectiveness Period and after the
         Effectiveness Target Date, shall thereafter cease to be effective or
         fail to be usable for its intended purpose for a period of time
         (including any Suspension Period) that shall exceed 30 days in the
         aggregate in any 3-month period or 60 days in the aggregate in any
         365-day period (each such event referred to in foregoing clauses (i)
         through (iii), a "Registration Default"),

         then the Issuer hereby agrees to pay additional amounts ("Additional
         Amounts") to each Holder from and including the day following the
         Registration Default to but excluding the day on which the Registration
         Default has been cured in an amount equal to:

                                    (A)      with respect to such Holder's
                  Notes, for the first 90-day period during which a Registration
                  Default shall have occurred and be continuing but excluding
                  the day on which all Registration Defaults have been cured, an
                  amount equal to 0.25% per annum on the applicable principal
                  amount of such Holder's then outstanding and not converted
                  Notes, increasing to an amount per

                                       6

<PAGE>

                  annum on the applicable principal amount of such Holder's then
                  outstanding and not converted Notes equal to 0.50% on the 91st
                  day, provided that in no event shall the aggregate Additional
                  Amounts pursuant to this clause accrue at a rate per annum
                  exceeding 0.50% of the sum of the applicable principal amount
                  of the then outstanding Notes;

                                    (B)      with respect to such Holder's
                  Common Stock issued upon conversion of Notes for the first
                  90-day period during which a Registration Default shall have
                  occurred and be continuing but excluding the day on which all
                  Registration Defaults have been cured, an amount equal to
                  0.25% per annum on the applicable principal amount of such
                  Holder's converted Notes, increasing to an amount per annum on
                  the applicable principal amount of such Holder's converted
                  Notes equal to 0.50% on the 91st day, provided that in no
                  event shall the aggregate Additional Amounts pursuant to this
                  clause accrue at a rate per annum exceeding 0.50% of the sum
                  of the applicable principal amount of the then converted
                  Notes;

                  provided that for purposes of this section the term
                  "applicable principal amount" means, as of any date of
                  determination, with respect to each $1,000 principal amount at
                  maturity of Notes, the sum of the initial issue price of such
                  Notes plus accrued original issue discount with respect to
                  such Notes through the date of determination.

                  (b)      All accrued Additional Amounts shall be paid in
         arrears to Record Holders by the Issuer on each Additional Amounts
         Payment Date by wire transfer of immediately available funds or by
         federal funds check; provided that any Additional Amounts accrued with
         respect to any Registrable Securities or portion thereof called for
         redemption on a redemption date or converted into Common Stock on a
         conversion date prior to the Additional Amounts Payment Date shall, in
         any such event, be paid instead to the Holder who submitted such Note
         or portion thereof for redemption or conversion on the applicable
         redemption date or conversion date, as the case may be, on such date
         (or promptly following the conversion date, in the case of
         conversions). Following the cure of all Registration Defaults relating
         to any particular Note or share of Common Stock, the accrual of
         Additional Amounts with respect to such Note or share of Common Stock
         will cease.

         The Trustee shall be entitled, on behalf of Holders of Notes, to seek
any available remedy for the enforcement of this Agreement, including for the
payment of any Additional Amounts. All obligations of the Issuer set forth in
this Section 3 that are outstanding with respect to any Registrable Security at
the time such security ceases to be a Registrable Security shall survive until
such time as all such obligations with respect to such Registrable Security
shall have been satisfied in full. The parties hereto agree that the Additional
Amounts provided for in this section constitutes a reasonable estimate of the
damages that may be incurred by Holders of Registrable Securities by reason of
the failure of the Shelf Registration Statement to be filed or declared
effective or available for effecting resales of Registrable Securities in
accordance with the provisions hereof.

                                       7

<PAGE>

         4.       Registration Procedures.

                  (a)      In connection with the Shelf Registration Statement,
         the Issuer shall prepare and file with the Commission a Shelf
         Registration Statement on Form S-1 or Form S-3 or on any other
         appropriate form under the Securities Act permitting registration of
         the Registrable Securities for resale by the Holders thereof in
         accordance with the reasonable methods of distribution elected by them,
         and use its best efforts to cause such Shelf Registration Statement to
         become effective and remain effective as provided herein. At the time
         the Shelf Registration Statement is declared effective, each Holder
         that has satisfied the requirements of Section 2(b) hereof shall be
         named as a selling securityholder in the Shelf Registration Statement
         and the related Prospectus in such a manner as to permit such Holder to
         deliver such Prospectus to purchasers of Registrable Securities in
         accordance with applicable law.

                  (b)      In connection with the Shelf Registration Statement
         and any Prospectus required by this Agreement to permit the sale or
         resale of Registrable Securities, the Issuer shall:

                           (i)      Subject to any notice by the Issuer in
         accordance with this Section 4(b) of the existence of any fact or event
         of the kind described in Section 4(b)(iii)(D), use its reasonable best
         efforts to keep the Shelf Registration Statement continuously effective
         during the Effectiveness Period; upon the occurrence of any event that
         would cause the Shelf Registration Statement or the Prospectus
         contained therein (A) to contain a material misstatement or omission or
         (B) not be effective and usable for resale of Registrable Securities
         during the Effectiveness Period, the Issuer shall file promptly an
         appropriate amendment to the Shelf Registration Statement, a prospectus
         supplement or a report filed with the Commission pursuant to Section
         13(a), 13(c), 14 or 15(d) of the Exchange Act, in the case of clause
         (A), correcting any such misstatement or omission, and, in the case of
         either clause (A) or (B), use its reasonable best efforts to cause such
         amendment to be declared effective and the Shelf Registration Statement
         and the related Prospectus to become usable for their intended purposes
         as soon as practicable thereafter. Notwithstanding the foregoing, the
         Issuer may, by written notice to the Holders, suspend the Holders' use
         of the Prospectus for a period not to exceed an aggregate of 30 days in
         any three-month period (each such period, a "Suspension Period") if:

                           (x)      an event occurs and is continuing as a
                  result of which the Shelf Registration Statement would, in the
                  Issuer's reasonable judgment, contain an untrue statement of a
                  material fact or omit to state a material fact required to be
                  stated therein or necessary to make the statements therein not
                  misleading; and

                           (y) the Issuer reasonably determines in good faith
                  that the disclosure of such event at such time would have a
                  material adverse effect on the business of the Issuer (and its
                  subsidiaries, if any, taken as a whole);

         provided, that the Suspension Periods shall not exceed an aggregate of
         60 days in any 365-day period. The Effectiveness Period shall be
         extended by the number of days beginning on the date the Issuer gives
         the Holders notice of the Suspension Period to and

                                       8

<PAGE>

         including the date on which the Holders receive copies of the
         supplemented or amended Prospectus or the date on which the Holders are
         advised in writing by the Issuer that the Prospectus may be used. Each
         Holder, by its acceptance of a Registrable Security, agrees to hold in
         confidence any communication by the Issuer relating to an event
         described in Section 4(b)(i)(x) and (y) or Section 4(b)(iii)(D).

                           (ii)     Prepare and file with the Commission such
         amendments and post-effective amendments to the Shelf Registration
         Statement as may be necessary to keep the Shelf Registration Statement
         effective during the Effectiveness Period; cause the Prospectus to be
         supplemented by any required Prospectus supplement, and as so
         supplemented to be filed pursuant to Rule 424 under the Securities Act,
         and to comply fully with the applicable provisions of Rules 424 and
         430A under the Securities Act in a timely manner, if required by the
         Securities Act or as reasonably requested by the Initial Purchaser or
         by the Trustee on behalf of the Holders of the Registrable Securities
         covered by such Shelf Registration Statement; and comply with the
         provisions of the Securities Act with respect to the disposition of all
         securities covered by the Shelf Registration Statement during the
         applicable period in accordance with the intended method or methods of
         distribution by the sellers thereof set forth in the Shelf Registration
         Statement or supplement to the Prospectus.

                           (iii)    As promptly as practicable give notice to
         the Initial Purchaser, the Holders, counsel for the Holders and for the
         Initial Purchaser (or, if applicable, separate counsel for the
         Holders), and any underwriters and, if requested by such Persons,
         confirm such advice in writing:

                                    (A)      when the Shelf Registration
                  Statement, Prospectus or any Prospectus supplement or
                  post-effective amendment has been filed, and, with respect to
                  the Shelf Registration Statement or any post-effective
                  amendment thereto, when the same has become effective,

                                    (B)      of any request by the Commission or
                  any other federal or state governmental authority for
                  amendments to the Shelf Registration Statement or amendments
                  or supplements to the Prospectus or for additional information
                  relating thereto,

                                    (C)      of the issuance by the Commission
                  or any other federal or state authority of any stop order
                  suspending the effectiveness of the Shelf Registration
                  Statement under the Securities Act or of the suspension by any
                  state securities commission of the qualification of the
                  Registrable Securities for offering or sale in any
                  jurisdiction, or the initiation of any proceeding for any of
                  the preceding purposes, or

                                    (D)      of the existence of any fact or the
                  happening of any event, during the Effectiveness Period, that
                  makes any statement of a material fact made in the Shelf
                  Registration Statement, the Prospectus, any amendment or
                  supplement thereto, or any document incorporated by reference
                  therein untrue, or that requires the making of any additions
                  to or changes in the Shelf Registration

                                       9

<PAGE>

                  Statement or the Prospectus in order to make the statements
                  therein not misleading.

                  If at any time the Commission shall issue any stop order
         suspending the effectiveness of the Shelf Registration Statement, or
         any state securities commission or other regulatory authority shall
         issue an order suspending the qualification or exemption from
         qualification of the Registrable Securities under state securities or
         Blue Sky laws, or the Shelf Registration Statement ceases to be
         effective for any reason at any time during the Effectiveness Period,
         the Issuer shall use its reasonable best efforts to obtain the
         withdrawal or lifting of such order at the earliest possible time, and
         in any event shall within thirty (30) days of such cessation of
         effectiveness amend the Shelf Registration Statement in a manner
         reasonably expected to obtain the withdrawal of the order suspending
         the effectiveness thereof, or file an additional Shelf Registration
         Statement covering all of the securities that as of the date of such
         filing are Registrable Securities. If a subsequent Shelf Registration
         Statement is filed, the Issuer shall use its best efforts to cause such
         Shelf Registration Statement to become effective as promptly as is
         practicable after such filing and to keep such Shelf Registration
         Statement continuously effective until the end of the Effectiveness
         Period.

                           (iv)     Furnish to the Initial Purchaser, counsel
         for the Initial Purchaser, one counsel for the selling Holders and each
         of the underwriter(s), if any, before filing with the Commission, a
         copy of the Shelf Registration Statement and copies of any Prospectus
         included therein or any amendments or supplements to either of the
         Shelf Registration Statement or Prospectus (other than documents
         incorporated by reference after the initial filing of the Shelf
         Registration Statement), which documents will be subject to the review
         of such persons, counsel and underwriter(s), if any, for a period of
         two Business Days, and the Issuer will not file the Shelf Registration
         Statement or Prospectus or any amendment or supplement to the Shelf
         Registration Statement or Prospectus (other than documents incorporated
         by reference) to which such counsel or the underwriter(s), if any,
         shall reasonably object within two Business Days after the receipt
         thereof. Such counsel or underwriter, if any, shall be deemed to have
         reasonably objected to such filing if the Shelf Registration Statement,
         amendment, Prospectus or supplement, as applicable, as proposed to be
         filed, contains a material misstatement or omission.

                           (v)      Subject to the execution of a
         confidentiality agreement reasonably acceptable to the Issuer, make
         available at reasonable times for inspection by one or more
         representatives of the selling Holders, designated in writing by a
         Majority of Holders whose Registrable Securities are included in the
         Shelf Registration Statement, any underwriter, if any, participating in
         any distribution pursuant to the Shelf Registration Statement, and any
         attorney or accountant retained by the Majority of Holders or any of
         the underwriter(s), all financial and other records, pertinent
         corporate documents and properties of the Issuer as shall be reasonably
         necessary to enable them to exercise any applicable due diligence
         responsibilities, and cause the Issuer's officers, directors, managers
         and employees to supply all information reasonably requested by any
         such representative or representatives of the selling Holders,
         underwriter, attorney or accountant in connection with the Shelf
         Registration Statement; provided, however, that

                                       10

<PAGE>

         any information designated by the Issuer as confidential at the time of
         delivery of such information shall be kept confidential by the
         recipient thereof.

                           (vi)     If requested by the Initial Purchaser or its
         counsel, any selling Holders or the underwriter(s), if any, incorporate
         in the Shelf Registration Statement or Prospectus, pursuant to a
         supplement or post-effective amendment if necessary, such information
         as such Initial Purchaser, counsel, selling Holders or underwriter(s),
         if any, may reasonably request to have included therein, including,
         without limitation: (1) information relating to the "Plan of
         Distribution" of the Registrable Securities, (2) information with
         respect to the principal amount of Notes or number of shares of Common
         Stock being sold, (3) the purchase price being paid therefor and (4)
         any other terms of the offering of the Registrable Securities to be
         sold in such offering; and make all required filings of such Prospectus
         supplement or post-effective amendment as soon as reasonably
         practicable after the Issuer is notified of the matters to be
         incorporated in such Prospectus supplement or post-effective amendment.

                           (vii)    As promptly as practicable furnish to each
         selling Holder by electronic or paper copy, the Initial Purchaser and
         its counsel, and each of the underwriter(s), if any, without charge, at
         least one copy of the Shelf Registration Statement, as first filed with
         the Commission, and of each amendment thereto (and any documents
         incorporated by reference therein or exhibits thereto (or exhibits
         incorporated in such exhibits by reference) as such Person may request
         in writing).

                           (viii)   Deliver to each selling Holder, the Initial
         Purchaser and its counsel, and each of the underwriter(s), if any,
         without charge, as many copies of the Prospectus (including each
         preliminary prospectus) and any amendment or supplement thereto as such
         Persons reasonably may request; subject to any notice by the Issuer in
         accordance with this Section 4(b) of the existence of any fact or event
         of the kind described in Section 4(b)(iii)(D), the Issuer hereby
         consents to the use of the Prospectus and any amendment or supplement
         thereto by each of the selling Holders and each of the underwriter(s),
         if any, in connection with the offering and the sale of the Registrable
         Securities covered by the Prospectus or any amendment or supplement
         thereto.

                           (ix)     If an underwriting agreement is entered into
         and the registration is an Underwritten Registration, the Issuer shall:

                                    (A)      upon request, furnish to each
                  selling Holder and each underwriter, if any, in such substance
                  and scope as they may reasonably request and as are
                  customarily made by issuers to underwriters in primary
                  underwritten offerings, upon the date of closing of any sale
                  of Registrable Securities in an Underwritten Registration:

                                             (1)  a customary certificate, dated
                                    the date of such closing, signed by (y) the
                                    Chairman of the Board, the Chief Executive
                                    Officer, the President or a Vice President
                                    and (z) the Chief Financial Officer of the
                                    Issuer confirming, as of the date thereof,
                                    such matters as such parties may reasonably
                                    request;

                                       11

<PAGE>

                                             (2)  opinions, each dated the date
                                    of such closing, of counsel to the Issuer
                                    covering such matters as are customarily
                                    covered in legal opinions to underwriters in
                                    connection with primary underwritten
                                    offerings of securities; and

                                             (3)  customary comfort letters,
                                    dated the date of such closing, from the
                                    Issuer's independent accountants (and from
                                    any other accountants whose report is
                                    contained or incorporated by reference in
                                    the Shelf Registration Statement), in the
                                    customary form and covering matters of the
                                    type customarily covered in comfort letters
                                    to underwriters in connection with primary
                                    underwritten offerings of securities;

                                    (B)      set forth in full in the
                  underwriting agreement, if any, indemnification provisions and
                  procedures which provide rights no less protective than those
                  set forth in Section 6 hereof with respect to all parties to
                  be indemnified; and

                                    (C)      deliver such other documents and
                  certificates as may be reasonably requested by such parties to
                  evidence compliance with clause (A) above and with any
                  customary conditions contained in the underwriting agreement
                  or other agreement entered into by the selling Holders
                  pursuant to this clause (ix).

                           (x)      Before any public offering of Registrable
         Securities, cooperate with the selling Holders, the underwriter(s), if
         any, and their respective counsel in connection with the registration
         and qualification of the Registrable Securities under the securities or
         Blue Sky laws of such jurisdictions as the selling Holders or
         underwriter(s), if any, may reasonably request and do any and all other
         acts or things necessary or advisable to enable the disposition in such
         jurisdictions of the Registrable Securities covered by the Shelf
         Registration Statement; provided, however, that the Issuer shall not be
         required (A) to register or qualify as a foreign corporation or a
         dealer of securities where it is not now so qualified or to take any
         action that would subject it to the service of process in any
         jurisdiction where it is not now so subject or (B) to subject itself to
         taxation in any such jurisdiction if it is not now so subject.

                           (xi)     Cooperate with the selling Holders and the
         underwriter(s), if any, to facilitate the timely preparation and
         delivery of certificates representing Registrable Securities to be sold
         and not bearing any restrictive legends (unless required by applicable
         securities laws); and enable such Registrable Securities to be in such
         denominations and registered in such names as the Holders or the
         underwriter(s), if any, may reasonably request at least two Business
         Days before any sale of Registrable Securities.

                           (xii)    Use its reasonable best efforts to cause the
         Registrable Securities covered by the Shelf Registration Statement to
         be registered with or approved by such other U.S. governmental agencies
         or authorities as may be necessary to enable the seller

                                       12

<PAGE>

         or sellers thereof or the underwriter(s), if any, to consummate the
         disposition of such Registrable Securities, subject to the proviso in
         clause (x) above.

                           (xiii)   Subject to Section 4(b)(i) hereof, if any
         fact or event contemplated by Section 4(b)(iii)(D) hereof shall exist
         or have occurred, use its reasonable best efforts to prepare a
         supplement or post-effective amendment to the Shelf Registration
         Statement or related Prospectus or any document incorporated therein by
         reference or file any other required document so that, as thereafter
         delivered to the purchasers of Registrable Securities, the Prospectus
         will not contain an untrue statement of a material fact or omit to
         state any material fact required to be stated therein or necessary to
         make the statements therein not misleading.

                           (xiv)    Provide CUSIP numbers for all Registrable
         Securities not later than the effective date of the Shelf Registration
         Statement and provide the Trustee under the Indenture with certificates
         for the Notes that are in a form eligible for deposit with The
         Depository Trust Company.

                           (xv)     Cooperate and assist in any filings required
         to be made with the NASD and in the performance of any due diligence
         investigation by any underwriter that is required to be retained in
         accordance with the rules and regulations of the NASD.

                           (xvi)    Otherwise use its reasonable best efforts to
         comply with all applicable rules and regulations of the Commission and
         all reporting requirements under the rules and regulations of the
         Exchange Act and make generally available to its security holders
         earning statements (which need not be audited) satisfying the
         provisions of Section 11(a) of the Securities Act and Rule 158
         thereunder no later than 45 days after the end of any 12 month period
         (or 90 days after the end of any 12-month period if such period is a
         fiscal year) commencing on the first day of the first fiscal quarter of
         the Issuer commencing after the effective date of a Shelf Registration
         Statement, which statements shall cover said 12-month periods.

                           (xvii)   Cause the Indenture to be qualified under
         the TIA not later than the effective date of the Shelf Registration
         Statement required by this Agreement, and, in connection therewith,
         cooperate with the Trustee and the holders of Notes to effect such
         changes to the Indenture as may be required for such Indenture to be so
         qualified in accordance with the terms of the TIA; and execute and use
         its reasonable best efforts to cause the Trustee thereunder to execute
         all documents that may be required to effect such changes and all other
         forms and documents required to be filed with the Commission to enable
         such Indenture to be so qualified in a timely manner.

                           (xviii)  Cause all Registrable Securities covered by
         the Shelf Registration Statement to be listed or quoted, as the case
         may be, on each securities exchange or automated quotation system on
         which securities issued by the Issuer of the same series are then
         listed or quoted.

                           (xix)    Provide promptly to each Holder upon written
         request each document filed with the Commission pursuant to the
         requirements of Section 13 and

                                       13

<PAGE>

         Section 15 of the Exchange Act after the effective date of the Shelf
         Registration Statement, unless such documents are available from EDGAR.

                           (xx)     If requested by the underwriters in an
         underwritten offering, make appropriate officers of the Issuer
         reasonably available to the underwriters for meetings with prospective
         purchasers of the Registrable Securities and prepare and present to
         potential investors customary "road show" material in a manner
         consistent with other new issuances of other securities similar to the
         Registrable Securities.

                           (xxi)    Enter into such customary agreements and
         take all such other necessary actions in connection therewith
         (including those requested by the holders of a majority of the
         Registrable Securities being sold) in order to expedite or facilitate
         disposition of such Registrable Securities.

                           (xxii)   Upon the filing of the Shelf Registration
         Statement and the effectiveness of the Shelf Registration Statement,
         announce the same by issuing a news release to Reuters Economic
         Services and Bloomberg Business News.

                  (c)      Each Holder agrees by acquisition of a Registrable
         Security that, upon receipt of any notice from the Issuer of the
         existence of any fact of the kind described in Section 4(b)(iii)(D)
         hereof, such Holder will, and will use its reasonable best efforts to
         cause any underwriter(s) in an Underwritten Offering to, forthwith
         discontinue disposition of Registrable Securities pursuant to the Shelf
         Registration Statement until:

                           (i)      such Holder has received copies of the
         supplemented or amended Prospectus contemplated by Section 4(b)(xiii)
         hereof; or

                           (ii)     such Holder is advised in writing (the
         "Advice") by the Issuer that the use of the Prospectus may be resumed,
         and has received copies of any additional or supplemental filings that
         are incorporated by reference in the Prospectus.

         If so directed by the Issuer, each Holder will deliver to the Issuer
         (at the Issuer's expense) all copies, other than permanent file copies
         then in such Holder's possession, of the Prospectus covering such
         Registrable Securities that was current at the time of receipt of such
         notice of suspension.

                  (d)      The Issuer is required to send a questionnaire in the
         form attached hereto as Annex A to each Holder of Registrable
         Securities at least 30 Business Days before the Shelf Registration
         Statement is declared effective. Each Holder who intends to be named as
         a selling Holder in the Shelf Registration Statement shall furnish to
         the Issuer in writing, within 30 Business Days after receipt of a
         request therefor as set forth in a questionnaire in the form attached
         hereto as Annex A, such information regarding such Holder and the
         proposed distribution by such Holder of its Registrable Securities as
         the Issuer may reasonably request for use in connection with the Shelf
         Registration Statement or Prospectus or preliminary Prospectus included
         therein. Holders that do not complete the questionnaire and deliver it
         to the Issuer shall not be named as selling securityholders in the
         Prospectus or preliminary Prospectus included in the Shelf Registration
         Statement and therefore shall not be permitted to sell any Registrable
         Securities pursuant to the

                                       14

<PAGE>

         Shelf Registration Statement, so long as the Issuer has diligently
         requested such information from such Holder. Each Holder who intends to
         be named as a selling Holder in the Shelf Registration Statement shall
         promptly furnish to the Issuer in writing all information required to
         be disclosed in order to make information previously furnished to the
         Issuer by such Holder not materially misleading and such other
         information as the Issuer may from time to time reasonably request in
         writing.

                  (e)      Upon the effectiveness of the Shelf Registration
         Statement, each Holder shall notify the Issuer at least three Business
         Days prior to any intended distribution of Registrable Securities
         pursuant to the Shelf Registration Statement (a "Sale Notice"), which
         notice shall be effective for five Business Days. Each Holder of this
         Security, by accepting the same, agrees to hold any communication by
         the Issuer in response to a Sale Notice in confidence.

                  (f)      Notwithstanding anything in this Agreement to the
         contrary, each party to this Agreement (and any employee,
         representative or other agent of such party) may disclose to any and
         all persons, without limitation of any kind, the U.S. federal income
         tax treatment and tax structure of the transactions contemplated by
         this offering memorandum and all materials of any kind (including
         opinions or other tax analyses) that are provided to it relating to
         such tax treatment and tax structure. However, any such information
         relating to the U.S. federal income tax treatment or tax structure is
         required to be kept confidential to the extent necessary to comply with
         any applicable federal or state securities laws.

         5.       Registration Expenses.

                  (a)      All expenses incident to the Issuer's performance of
         or compliance with this Agreement shall be borne by the Issuer
         regardless of whether a Shelf Registration Statement becomes effective,
         including, without limitation:

                           (i)      all registration and filing fees and
         expenses (including without limitation fees and expenses with respect
         to filings required to be made with the NASD);

                           (ii)     all fees and expenses of compliance with
         federal securities and state Blue Sky or securities laws (including
         without limitation reasonable fees and disbursements of counsel for the
         Holders in connection with blue sky qualifications of the Registrable
         Securities);

                           (iii)    all expenses of printing (including printing
         of Prospectuses and certificates for the Common Stock to be issued upon
         conversion of the Notes), messenger and delivery services, and
         telephone;

                           (iv)     all reasonable fees and disbursements of
         counsel to the Issuer and, subject to Section 5(b) below, the Holders
         of Registrable Securities;

                           (v)      fees and disbursements of the Trustee and
         its counsel and of the registrar and transfer agent for the Common
         Stock;

                                       15

<PAGE>

                           (vi)     all application and filing fees in
         connection with listing (or authorizing for quotation) the Common Stock
         on a national securities exchange or automated quotation system
         pursuant to the requirements hereof; and

                           (vii)    all fees and disbursements of independent
         certified public accountants of the Issuer (including the expenses of
         any special audit and comfort letters required by or incident to such
         performance).

                  The Issuer shall bear its internal expenses (including,
         without limitation, all salaries and expenses of its officers and
         employees performing legal, accounting or other duties), the expenses
         of any annual audit and the fees and expenses of any Person, including
         special experts, retained by the Issuer.

                  (b)      In connection with the Shelf Registration Statement
         required by this Agreement, the Issuer shall reimburse the Initial
         Purchaser and the Holders of Registrable Securities being registered
         pursuant to the Shelf Registration Statement, as applicable, for the
         reasonable fees and disbursements of not more than one counsel, which
         shall be Manatt, Phelps & Phillips, LLP or such other counsel chosen by
         a Majority of Holders for whose benefit the Shelf Registration
         Statement is being prepared and is reasonably acceptable to the Issuer.
         The Issuer shall not be required to pay any underwriter discount,
         commission or similar fees related to the sale of the Securities.

         6.       Indemnification and Contribution.

                  (a)      The Issuer shall indemnify and hold harmless each
         Holder, their directors, officers, employees, representatives, agents
         and each person, if any, who controls such Holder within the meaning of
         Section 15 of the Securities Act or Section 20 of the Exchange Act
         (each, an "Indemnified Party"), from and against any loss, claim,
         damage, expense or liability, joint or several, or any action in
         respect thereof (including, but not limited to, any loss, claim,
         damage, expense, liability or action relating to resales of the
         Registrable Securities), to which such Indemnified Party may become
         subject, under the Securities Act or otherwise, insofar as any such
         loss, claim, damage, expense, liability or action arises out of, or is
         based upon:

                           (i)      any untrue statement or alleged untrue
         statement of a material fact contained in (A) the Shelf Registration
         Statement or Prospectus or any amendment or supplement thereto or any
         preliminary prospectus or (B) any blue sky application or other
         document or any amendment or supplement thereto prepared or executed by
         the Issuer (or based upon written information furnished by or on behalf
         of the Issuer expressly for use in such blue sky application or other
         document or amendment on supplement) filed in any jurisdiction
         specifically for the purpose of qualifying any or all of the
         Registrable Securities under the securities law of any state or other
         jurisdiction (such application or document being hereinafter called a
         "Blue Sky Application"); or

                           (ii)     the omission or alleged omission to state in
         the Shelf Registration Statement or amendment thereto any material fact
         required to be stated therein or necessary to make the statements
         therein not misleading, or the omission or alleged

                                       16

<PAGE>

         omission to state in the Prospectus or any amendment or supplement
         thereto or any preliminary prospectus any material fact required to be
         stated therein or necessary to make the statements therein, in the
         light of the circumstances under which they were made, not misleading,

         and shall reimburse each Indemnified Party promptly upon demand for any
         legal or other expenses reasonably incurred by such Indemnified Party
         in connection with investigating or defending or preparing to defend
         against any such loss, claim, damage, liability or action as such
         expenses are incurred; provided, however, that the Issuer shall not be
         liable to an Indemnified Party in any such case to the extent that any
         such loss, claim, damage, expense, liability or action arises out of,
         or is based upon, any untrue statement or alleged untrue statement or
         omission or alleged omission made in the Shelf Registration Statement
         or Prospectus or amendment or supplement thereto or Blue Sky
         Application in reliance upon and in conformity with written information
         furnished to the Issuer by or on behalf of such Indemnified Party
         specifically for use therein; provided, further, that as to any
         preliminary Prospectus, this indemnity agreement shall not inure to the
         benefit of any Indemnified Party or any officer, employee,
         representative, agent, director or controlling person of that
         Indemnified Party on account of any loss, claim, damage, expense,
         liability or action arising from the sale of the Registrable Securities
         sold pursuant to the Shelf Registration Statement to any person by such
         Indemnified Party if (i) that Indemnified Party failed to send or give
         a copy of the Prospectus, as the same may be amended or supplemented,
         to that person within the time required by the Securities Act and (ii)
         the untrue statement or alleged untrue statement of a material fact or
         omission or alleged omission to state a material fact in such
         preliminary Prospectus was corrected in the Prospectus or a supplement
         or amendment thereto, as the case may be, unless in each case, such
         failure resulted from noncompliance by the Issuer with Section 4. The
         foregoing indemnity agreement is in addition to any liability that the
         Issuer may otherwise have to any Indemnified Party.

                  (b)      Each Holder, severally and not jointly, shall
         indemnify and hold harmless the Issuer, its directors, officers,
         employees, representatives, agents and each person, if any, who
         controls the Issuer within the meaning of Section 15 of the Securities
         Act or Section 20 of the Exchange Act, from and against any loss,
         claim, damage, expense or liability, joint or several, or any action in
         respect thereof, to which the Issuer or any such officer, employee,
         representative, agent or controlling person may become subject, insofar
         as any such loss, claim, damage, expense, liability or action arises
         out of, or is based upon:

                           (i)      any untrue statement or alleged untrue
         statement of any material fact contained in the Shelf Registration
         Statement or Prospectus or any amendment or supplement thereto or any
         Blue Sky Application; or

                           (ii)     the omission or the alleged omission to
         state in the Shelf Registration Statement any material fact required to
         be stated therein or necessary to make the statements therein not
         misleading, or the omission or alleged omission to state in the
         Prospectus any material fact required to be stated therein or necessary
         to make the

                                       17

<PAGE>

         statements therein, in light of the circumstances under which they were
         made, not misleading,

         but in each case only to the extent that such untrue statement or
         alleged untrue statement or omission or alleged omission was made in
         reliance upon and in conformity with written information furnished to
         the Issuer by or on behalf of such Holder (or its related Indemnified
         Party) specifically for use therein, and shall reimburse the Issuer and
         any such director, officer, employee, representative, agent or
         controlling person promptly upon demand for any legal or other expenses
         reasonably incurred by the Issuer or any such officer, employee or
         controlling person in connection with investigating or defending or
         preparing to defend against any such loss, claim, damage, liability or
         action as such expenses are incurred. The foregoing indemnity agreement
         is in addition to any liability that any Holder may otherwise have to
         the Issuer and any such director, officer, employee or controlling
         person. In no event shall the liability of any selling Holder of
         Registrable Securities hereunder be greater in amount than the dollar
         amount of the proceeds received by such Holder upon the sale of the
         Registrable Securities pursuant to the Shelf Registration Statement
         giving rise to such indemnification obligation.

                  (c)      Promptly after receipt by an indemnified party under
         this Section 6 of notice of any claim or the commencement of any
         action, the indemnified party shall, if a claim in respect thereof is
         to be made against the indemnifying party under this Section 6, notify
         the indemnifying party in writing of the claim or the commencement of
         that action; provided, however, that the failure to notify the
         indemnifying party shall not relieve it from any liability that it may
         have under this Section 6 except to the extent it has been materially
         prejudiced by such failure and, provided, further, that the failure to
         notify the indemnifying party shall not relieve it from any liability
         that it may have to an indemnified party otherwise than under this
         Section 6. If any such claim or action shall be brought against an
         indemnified party, and it shall notify the indemnifying party thereof,
         the indemnifying party shall be entitled to participate therein and, to
         the extent that it wishes, jointly with any other similarly notified
         indemnifying party, to assume the defense thereof with counsel
         satisfactory to the indemnified party. After notice from the
         indemnifying party to the indemnified party of its election to assume
         the defense of such claim or action, the indemnifying party shall not
         be liable to the indemnified party under this Section 6 for any legal
         or other expenses subsequently incurred by the indemnified party in
         connection with the defense thereof other than reasonable costs of
         investigation; provided, however, that the indemnified party shall have
         the right to employ counsel to represent jointly the indemnified party
         and its respective directors, employees, officers and controlling
         persons who may be subject to liability arising out of any claim in
         respect of which indemnity may be sought by the indemnified party
         against the indemnifying party under this Section 6 if (1) employment
         of such counsel has been authorized in writing by the indemnifying
         party, or (2) such indemnifying party shall not have employed counsel
         to have charge of the defense of such proceeding within 30 days of the
         receipt of notice thereof, or (3) such indemnified party shall have
         reasonably concluded that the representation of such indemnified party
         and those directors, employees, officers and controlling persons by the
         same counsel representing the indemnifying party would be inappropriate
         under applicable standards of professional conduct due to actual or
         potential differing interests between them or where there may be one or
         more defenses

                                       18

<PAGE>

         available to them that are different from, additional to or in conflict
         with those available to the indemnifying party, and in any such event
         ((1), (2) or (3)) the fees and expenses of such separate counsel shall
         be paid by the indemnifying party as incurred. It is understood that
         the indemnifying party shall not be liable for the fees and expenses of
         more than one separate firm (in addition to local counsel in each
         jurisdiction) for all indemnified parties in connection with any
         proceeding or related proceedings. No indemnifying party shall:

                           (i)      without the prior written consent of the
         indemnified parties (which consent shall not be unreasonably withheld)
         effect any settlement of any pending or threatened action in respect of
         which indemnification or contribution may be sought hereunder (whether
         or not the indemnified parties are actual or potential parties to such
         claim or action) unless such settlement, compromise or consent includes
         an unconditional release of such indemnified party from all liability
         arising out of such claim, action, suit or proceeding and does not
         include a statement as to or an admission of fault, culpability or
         failure to act by or on behalf of any indemnified party, or

                           (ii)     be liable for any settlement of any such
         action effected without its written consent (which consent shall not be
         unreasonably withheld), but if settled with its written consent or if
         there be a final judgment for the plaintiff in any such action, the
         indemnifying party agrees to indemnify and hold harmless any
         indemnified party from and against any loss of liability by reason of
         such settlement or judgment in accordance with this Section 6.

                  (d)      If the indemnification provided for in this Section 6
         is unavailable or insufficient to hold harmless an indemnified party
         under subsections (a) or (b) above, then each indemnifying party shall
         contribute to the amount paid or payable by such indemnified party as a
         result of the losses, claims, damages, expenses or liabilities (or
         actions in respect thereof) referred to in subsection (a) or (b) above
         (i) in such proportion as is appropriate to reflect the relative
         benefits received by the indemnifying party or parties on the one hand
         and the indemnified party on the other from the registration of the
         Registrable Securities pursuant to the Shelf Registration, or (ii) if
         the allocation provided by the foregoing clause (i) is not permitted by
         applicable law, in such proportion as is appropriate to reflect not
         only the relative benefits referred to in clause (i) above but also the
         relative fault of the indemnifying party or parties on the one hand and
         the indemnified party on the other in connection with the statements or
         omissions that resulted in such losses, claims, damages or liabilities
         (or actions in respect thereof) as well as any other relevant equitable
         considerations. The relative fault of the parties shall be determined
         by reference to, among other things, whether the untrue or alleged
         untrue statement of a material fact or the omission or alleged omission
         to state a material fact relates to information supplied by the Issuer
         on the one hand or such Holder or such other indemnified party, as the
         case may be, on the other, and the parties' relative intent, knowledge,
         access to information and opportunity to correct or prevent such
         statement or omission. The amount paid by an indemnified party as a
         result of the losses, claims, damages or liabilities referred to in the
         first sentence of this subsection (d) shall be deemed to include any
         legal or other expenses reasonably incurred by such indemnified party
         in connection with investigating or defending any action or claim which
         is the

                                       19

<PAGE>

         subject of this subsection (d). The Issuer and the Holders agree that
         it would not be just and equitable if contribution pursuant to this
         Section 6(d) were determined by pro rata allocation or by any other
         method of allocation which does not take account of the equitable
         considerations referred to herein. Notwithstanding any other provision
         of this Section 6(d), the Holders of the Registrable Securities shall
         not be required to contribute any amount in excess of the amount by
         which the gross proceeds received by such Holders from the sale of the
         Registrable Securities pursuant to the Shelf Registration Statement
         exceeds the amount of damages which such Holders have otherwise been
         required to pay by reason of such untrue or alleged untrue statement or
         omission or alleged omission. No person guilty of fraudulent
         misrepresentation (within the meaning of Section 11(f) of the
         Securities Act) shall be entitled to contribution from any person who
         was not guilty of such fraudulent misrepresentation. For purposes of
         this paragraph (d), each person, if any, who controls such indemnified
         party within the meaning of the Securities Act or the Exchange Act
         shall have the same rights to contribution as such indemnified party
         and each person, if any, who controls the Issuer within the meaning of
         the Securities Act or the Exchange Act shall have the same rights to
         contribution as the Issuer. The Holders' respective obligations to
         contribute pursuant to this Section 6 are several in proportion to the
         respective amount of Registrable Securities they have sold pursuant to
         a Registration Statement and not joint. The remedies provided for in
         this Section 6 are not exclusive and shall not limit any rights or
         remedies which may otherwise be available to any indemnified party at
         law or in equity.

                  (e)      If at any time an indemnified party shall have
         requested an indemnifying party to reimburse such indemnified party for
         fees and expenses of counsel as contemplated herein, then such
         indemnifying party agrees that it shall be liable for any settlement of
         any proceeding effected without its written consent if (i) such
         settlement is entered into more than 30 days after receipt by such
         indemnifying party of the aforesaid request, (ii) such indemnifying
         party shall not have reimbursed such indemnified party in accordance
         with such request prior to the date of such settlement, and (iii) such
         indemnified party shall have given such indemnifying party at least 30
         days' prior notice of its intention to settle.

                  (f)      The indemnity and contribution provisions contained
         in this Section 6 shall remain operative and in full force and effect
         regardless of (i) any termination of this Agreement, (ii) any
         investigation made by or on behalf of the Initial Purchaser, any Holder
         or any person controlling the Initial Purchaser or any Holder, or by or
         on behalf of the Issuer, its officers or directors or any person
         controlling the Issuer, and (iii) any sale of Registrable Securities
         pursuant to the Shelf Registration Statement.

         7.       Information Requirements.

         The Issuer covenants that, if at any time before the end of the
Effectiveness Period it is not subject to the reporting requirements of the
Exchange Act, it will cooperate with any Holder of Registrable Securities and
take such further action as any Holder of Registrable Securities may reasonably
request in writing (including, without limitation, making such representations
as any such Holder may reasonably request), all to the extent required from time
to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the

                                       20

<PAGE>

limitations of the exemptions provided by Rule 144, Rule 144A, Regulation S and
Regulation D under the Securities Act and customarily taken in connection with
sales pursuant to such exemptions.

         In addition, in the event the Issuer is not subject to Section 13 or
15(d) of the Exchange Act, the Issuer hereby agrees with each Holder, for so
long as any Registrable Securities remain outstanding, to make available to any
Holder or beneficial owner of Registrable Securities in connection with any sale
thereof and any prospective purchaser of such Registrable Securities from such
Holder or beneficial owner, the information required by Rule 144A(d)(4) under
the Securities Act in order to permit resales of such Registrable Securities
pursuant to Rule 144A.

         The Issuer shall file the reports required to be filed by it under the
Exchange Act and shall comply with all other requirements set forth in the
instructions to Form S-1 or Form S-3, as the case may be, in order to allow the
Issuer to be eligible to file registration statements on Form S-1 or Form S-3.

         8.       Underwritten Registrations.

                  (a)      The Underwriting Majority may sell its Registrable
         Securities in an Underwritten Offering pursuant to the Shelf
         Registration Statement only with the Issuer's consent, which consent
         may not be unreasonably withheld, delayed or conditioned.

                  (b)      Participation of Holders. No Holder may participate
         in any Underwritten Registration hereunder unless such Holder:

                           (i)      agrees to sell such Holder's Registrable
         Securities on the basis provided in any underwriting arrangements
         approved by the Persons entitled hereunder to approve such
         arrangements; and

                           (ii)     completes and executes all reasonable
         questionnaires, powers of attorney, indemnities, underwriting
         agreements, lock-up letters and other documents reasonably required
         under the terms of such underwriting arrangements.

                  (c)      Selection of Underwriters. In any such Underwritten
         Offering, the investment banker or investment bankers and manager or
         managers that will administer the offering will be selected by a
         Majority of Holders whose Registrable Securities are included in such
         Underwriting Offering; provided, that such investment bankers and
         managers must be reasonably satisfactory to the Issuer.

                                       21
<PAGE>

         9.       Miscellaneous.

                  (a)      Remedies. The Issuer acknowledges and agrees that any
         failure by the Issuer to comply with its obligations under Section 2
         hereof may result in material irreparable injury to the Initial
         Purchaser or the Holders for which there is no adequate remedy at law,
         that it will not be possible to measure damages for such injuries
         precisely and that, in the event of any such failure, the Initial
         Purchaser or any Holder may obtain such relief as may be required to
         specifically enforce the Issuer's obligations under Section 2 hereof.
         The Issuer further agrees to waive the defense in any action for
         specific performance that a remedy at law would be adequate.

                  (b)      No Inconsistent Agreements. The Issuer is not a party
         to, as of the date hereof, and will not enter into, on or after the
         date of this Agreement, any agreement with respect to its securities
         that is inconsistent with the rights granted to the Holders in this
         Agreement or otherwise conflicts with the provisions hereof. In
         addition, the Issuer shall not grant to any of its security holders
         (other than the holders of Registrable Securities in such capacity) the
         right to include any of its securities in the Shelf Registration
         Statement provided for in this Agreement other than the Registrable
         Securities. The Issuer has not previously entered into any agreement
         (which has not expired or been terminated) granting any registration
         rights with respect to its securities to any Person, which rights
         conflict with the provisions hereof.

                  (c)      Adjustments Affecting Registrable Securities. The
         Issuer shall not, directly or indirectly, take any action with respect
         to the Registrable Securities as a class that would adversely affect
         the ability of the Holders of Registrable Securities to include such
         Registrable Securities in a registration undertaken pursuant to this
         Agreement.

                  (d)      Amendments and Waivers. This Agreement may not be
         amended, modified or supplemented, and waivers or consents to or
         departures from the provisions hereof may not be given, unless the
         Issuer has obtained the written consent of a Majority of Holders;
         provided, however, that no amendment, modification, supplement, waiver
         or consent to or departure from the provisions of Section 6 that
         materially and adversely affects a Holder hereof shall be effective as
         against any such Holder of Registrable Securities unless consented to
         in writing by such Holder; provided, further, that with respect to any
         matter that directly or indirectly adversely affects the rights of the
         Initial Purchaser hereunder, the Issuer shall obtain the written
         consent of the Initial Purchaser against which such amendment,
         modification, supplement, waiver or consent is to be effective.

                  (e)      Notices. All notices and other communications
         provided for or permitted hereunder shall be made in writing by
         hand-delivery, first-class mail (registered or certified, return
         receipt requested), telex, telecopier, or air courier guaranteeing
         overnight delivery:

                           (i)      if to a Holder, at the address set forth on
         the records of the registrar under the Indenture or the transfer agent
         of the Common Stock, as the case may be; and

                                       22

<PAGE>

                           (ii)     if to the Issuer:

                           Jakks Pacific, Inc.
                           22619 Pacific Coast Highway
                           Malibu, California 90265
                           Fax No.: (310) 317-8527
                           Attention: Joel Bennett

                           With a copy to:

                           Feder, Kaszovitz, Isaacson, Weber, Skala, Bass &
                           Rhine, LLP
                           750 Lexington Avenue
                           New York, New York 10022
                           Fax No.: (212) 888-7776
                           Attention: Saul Kaszovitz

                           (iii)    if to the Initial Purchaser:

                           Bear, Stearns & Co. Inc.
                           383 Madison Avenue
                           New York, New York 10179
                           Fax No.: (212) 272-3092
                           Attention: Convertible Capital Markets

                           With a copy to:

                           Manatt, Phelps & Phillips, LLP
                           11355 West Olympic Boulevard
                           Los Angeles, California 90064
                           Fax No.: (310) 914-5772
                           Attention: Gordon Bava

         All such notices and communications shall be deemed to have been duly
         given: at the time delivered by hand, if personally delivered; five
         Business Days after being deposited in the mail, postage prepaid, if
         mailed; when answered back, if telexed; when receipt acknowledged, if
         telecopied; and on the next Business Day, if timely delivered to an air
         courier guaranteeing overnight delivery.

         Copies of all such notices, demands or other communications shall be
         concurrently delivered by the Person giving the same to the Trustee at
         the address specified in the Indenture.

         A document or notice shall be deemed to have been furnished to the
         Holders of the Registrable Securities if it is provided to the
         registered holders of the Registrable Securities at the address set
         forth in clause (i) above.

                                       23

<PAGE>

                  (f)      Successors and Assigns. Any person who purchases any
         Registrable Securities from the Initial Purchaser or any Holder shall
         be deemed, for purposes of this Agreement, to be an assignee of the
         Initial Purchaser or such Holder, as the case may be. This Agreement
         shall inure to the benefit of and be binding upon the successors,
         assigns and transferees of each of the parties, including without
         limitation and without the need for an express assignment, subsequent
         Holders of Registrable Securities; provided, however, that (i) nothing
         contained herein shall be deemed to permit any assignment, transfer or
         other disposition of Registrable Securities in violation of the terms
         of the Purchase Agreement or the Indenture and (ii) this Agreement
         shall not inure to the benefit of or be binding upon a successor or
         assign of a Holder unless and to the extent such successor or assign
         acquired Registrable Securities from such Holder. If any transferee of
         any Holder shall acquire Registrable Securities, in any manner, whether
         by operation of law or otherwise, such Registrable Securities shall be
         held subject to all of the terms of this Agreement, and by taking and
         holding such Registrable Securities such person shall be conclusively
         deemed to have agreed to be bound by and to perform all of the terms
         and provisions of this Agreement and such Person shall be entitled to
         receive the benefits hereof. The Initial Purchaser (in its capacity as
         Initial Purchaser) shall have no liability or obligation to the Issuer
         with respect to any failure by a Holder to comply with, or breach by
         any Holder of, any of the obligations of such Holder under this
         Agreement.

                  (g)      Purchases and Sales of Notes. The Issuer shall not,
         and shall use its reasonable best efforts to cause its affiliates (as
         defined in Rule 405 under the Securities Act) within its Control not
         to, resell or otherwise transfer any Notes acquired by the Company or
         such affiliates, except pursuant to an effective registration statement
         under the Securities Act or an exemption therefrom.

                  (h)      Third Party Beneficiary. The Holders shall be third
         party beneficiaries to the agreements made hereunder between the Issuer
         and the Initial Purchaser, and the Initial Purchaser shall have the
         right to enforce such agreements directly to the extent it deems such
         enforcement necessary or advisable to protect its rights or the rights
         of Holders hereunder.

                  (i)      Counterparts. This Agreement may be executed in any
         number of counterparts and by the parties hereto in separate
         counterparts, each of which when so executed shall be deemed to be an
         original and all of which taken together shall constitute one and the
         same agreement.

                  (j)      Securities Held by the Issuer or Their Affiliates.
         Whenever the consent or approval of Holders of a specified percentage
         of Registrable Securities is required hereunder, Registrable Securities
         held by the Issuer or its affiliates (as such term is defined in Rule
         405 under the Securities Act) shall not be counted in determining
         whether such consent or approval was given by the Holders of such
         required percentage.

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

                                       24

<PAGE>

                  (l)      Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY,
         AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  (m)      Consent to Jurisdiction. Each party irrevocably
         agrees that any legal suit, action or proceeding arising out of or
         based upon this Agreement or the transactions contemplated hereby
         ("Related Proceedings") may be instituted in the federal courts of the
         United States of America located in the City of New York or the courts
         of the State of New York in each case located in the Borough of
         Manhattan in the City of New York (collectively, the "Specified
         Courts"), and irrevocably submits to the exclusive jurisdiction (except
         for proceedings instituted in regard to the enforcement of a judgment
         of any such court (a "Related Judgment"), as to which such Jurisdiction
         is non-exclusive) of such courts in any such suit, action or
         proceeding. The parties further agree that service of any process,
         summons, notice or document by mail to such party's address set forth
         above shall be effective service of process for any lawsuit, action or
         other proceeding brought in any such court. The parties hereby
         irrevocably and unconditionally waive any objection to the laying of
         venue of any lawsuit, action or other proceeding in the Specified
         Courts, and hereby further irrevocably and unconditionally waive and
         agree not to plead or claim in any such court that any such lawsuit,
         action or other proceeding brought in any such court has been brought
         in an inconvenient forum.

                  (n)      Severability. If any one or more of the provisions
         contained herein, or the application thereof in any circumstance, is
         held invalid, illegal or unenforceable, the validity, legality and
         enforceability of any such provision in every other respect and of the
         remaining provisions contained herein shall not be affected or impaired
         thereby, and the parties hereto shall use its best efforts to find and
         employ an alternative means to achieve the same or substantially the
         same result as that contemplated by such term, provision, covenant or
         restriction, it being intended that all of the rights and privileges of
         the parties shall be enforceable to the fullest extent permitted by
         law.

                  (o)      Entire Agreement. This Agreement, together with the
         Purchase Agreement and the Indenture, is intended by the parties as a
         final expression of their agreement and intended to be a complete and
         exclusive statement of the agreement and understanding of the parties
         hereto in respect of the subject matter contained herein. There are no
         restrictions, promises, warranties or undertakings, other than those
         set forth or referred to herein with respect to the registration rights
         granted by the Issuer with respect to the Registrable Securities. This
         Agreement supersedes all prior agreements and understandings between
         the parties with respect to such subject matter.

                           [Signature page to follow]

                                       25

<PAGE>

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

                                      Very truly yours,

                                      JAKKS PACIFIC, INC.

                                      By:  _____________________________________
                                           Name: Joel M. Bennett
                                           Title: Chief Financial Officer

         The foregoing Registration Rights Agreement is hereby confirmed and
accepted as of the date first above written.

                                      BEAR, STEARNS & CO. INC.,

                                      By  ______________________________________
                                          Name:
                                          Title:

                                       26

<PAGE>

                                     ANNEX A

                               JAKKS PACIFIC, INC.
                      NOTICE OF REGISTRATION STATEMENT AND
                SELLING SECURITYHOLDER ELECTION AND QUESTIONNAIRE

                                     NOTICE

         Jakks Pacific, Inc. (the "Company") has filed, or intends shortly to
file, with the Securities and Exchange Commission (the "Commission") a
registration statement on Form S-3 or such other Form as may be available (the
"Shelf Registration Statement") for the registration and resale under Rule 415
of the Securities Act of 1933, as amended (the "Securities Act"), of the
Company's Convertible Senior Notes due 2023 (CUSIP No. 47012EAA4) (the "Notes"),
and common stock, par value $0.001 per share, issuable upon conversion thereof
(the "Shares" and together with the Notes, the "Transfer Restricted Securities")
in accordance with the terms of the Registration Rights Agreement, dated as of
June 9, 2003 (the "Registration Rights Agreement") between the Company and Bear,
Stearns & Co. Inc. A copy of the Registration Rights Agreement is available from
the Company. All capitalized terms not otherwise defined herein have the meaning
ascribed thereto in the Registration Rights Agreement.

         To sell or otherwise dispose of any Transfer Restricted Securities
pursuant to the Shelf Registration Statement, a beneficial owner of Transfer
Restricted Securities generally will be required to be named as a Selling
Securityholder in the related Prospectus, deliver a Prospectus to purchasers of
Transfer Restricted Securities, be subject to certain civil liability provisions
of the Securities Act and be bound by those provisions of the Registration
Rights Agreement applicable to such beneficial owner (including certain
indemnification rights and obligations, as described below). To be included in
the Shelf Registration Statement, this Election and Questionnaire must be
completed, executed and delivered to the Company at the address set forth herein
for receipt prior to or on the 30th business day from the receipt hereof (the
"Election and Questionnaire Deadline"). BENEFICIAL OWNERS THAT DO NOT COMPLETE
AND RETURN THIS ELECTION AND QUESTIONNAIRE PRIOR TO THE ELECTION AND
QUESTIONNAIRE DEADLINE AND DELIVER IT TO THE COMPANY AS PROVIDED BELOW WILL NOT
BE NAMED AS SELLING SECURITYHOLDERS IN THE SHELF REGISTRATION STATEMENT, AND
THEREFORE, WILL NOT BE PERMITTED TO SELL ANY TRANSFER RESTRICTED SECURITIES
PURSUANT TO THE SHELF REGISTRATION STATEMENT.

         Certain legal consequences arise from being named as a Selling
Securityholder in the Shelf Registration Statement and the related Prospectus.
Accordingly, holders and beneficial owners of Transfer Restricted Securities are
advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a Selling Securityholder in the Shelf
Registration Statement and the related Prospectus.

                                      A-1

<PAGE>

                                    ELECTION

         The undersigned holder (the "Selling Securityholder") of Transfer
Restricted Securities hereby elects to include in the Shelf Registration
Statement the Transfer Restricted Securities beneficially owned by it and listed
below in Item 3 (unless otherwise specified under Item 3). The undersigned, by
signing and returning this Election and Questionnaire, understands that it will
be bound with respect to such Transfer Restricted Securities by the terms and
conditions of this Election and Questionnaire and the Registration Rights
Agreement.

         Pursuant to the Registration Rights Agreement, the Selling
Securityholder has agreed to indemnify and hold harmless the Company, the
Company's directors, the Company's officers, employees, representatives and
agents and each person, if any, who controls the Company within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act, from
and against certain losses arising in connection with statements concerning the
Selling Securityholder made in the Shelf Registration Statement or the related
Prospectus in reliance upon the information provided in this Election and
Questionnaire.

         The Selling Securityholder hereby provides the following information to
the Company and represents and warrants that such information is accurate and
complete:

                                  QUESTIONNAIRE

         1.       (a)      Full Legal Name of Selling Securityholder:

________________________________________________________________________________

                  (b)      Full legal name of registered holder (if not the same
         as (a) above) through which Transfer Restricted Securities listed in
         (3) below are held:

________________________________________________________________________________

                  (c)      Full legal name of DTC participant (if applicable and
         if not the same as (b) above) through which Transfer Restricted
         Securities listed in (3) are held:

________________________________________________________________________________

         2.       Address for notices to Selling Securityholders:

________________________________________________________________________________

________________________________________________________________________________

Telephone: ___________________________Fax:_____________________

Contact Person:_________________________________________________________________

                                      A-2

<PAGE>

         3.       Beneficial ownership of Transfer Restricted Securities:

                  (a)      Type of Transfer Restricted Securities beneficially
         owned, and principal amount of Notes or Number of shares of Common
         Stock, as the case may be, beneficially owned:

                  (b)      CUSIP No(s). of such Transfer Restricted Securities
         beneficially owned:

         4.       Beneficial ownership of the Company's securities owned by the
Selling Securityholder:

EXCEPT AS SET FORTH BELOW IN THIS ITEM (4), THE UNDERSIGNED IS NOT THE
BENEFICIAL OR REGISTERED OWNER OF ANY SECURITIES OF THE COMPANY OTHER THAN THE
TRANSFER RESTRICTED SECURITIES LISTED ABOVE IN ITEM (3) ("Other Securities").

                  (a)      Type and amount of Other Securities beneficially
         owned by the Selling Securityholder:

________________________________________________________________________________

                  (b)      CUSIP No(s). of such Other Securities beneficially
         owned:

________________________________________________________________________________

         5.       Relationship with the Company

         Except as set forth below, neither the undersigned nor any of its
affiliates, officers, directors or principal equity holders (5% or more) has
held any position or office or has had any other material relationship with the
Company (or their predecessors or affiliates) during the past three years.

State any exceptions here:

________________________________________________________________________________

         6.       Plan of Distribution:

         Except as set forth below, the undersigned (including its donees or
pledgees) intends to distribute the Transfer Restricted Securities listed above
in Item (3) pursuant to the Shelf Registration Statement only as follows (if at
all). Such Transfer Restricted Securities may be sold from time to time directly
by the undersigned or, alternatively, through underwriters, broker-dealers or
agents. If the Transfer Restricted Securities are sold through underwriters or
broker-dealers, the Selling Securityholder will be responsible for underwriting
discounts or commissions or agent's commissions. Such Transfer Restricted
Securities may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at varying prices determined at
the time of sale, or at negotiated prices. Such sales may be effected in
transactions (which may involve crosses or block transactions):

                                      A-3

<PAGE>

                           (i)      on any national securities exchange or
         quotation service on which the Transfer Restricted Securities may be
         listed or quoted at the time of sale;

                           (ii)     in the over-the-counter market;

                           (iii)    in transactions otherwise than on such
         exchanges or services or in the over-the-counter market; or

                           (iv)     through the writing of options.

         In connection with sales of the Transfer Restricted Securities or
otherwise, the undersigned may enter into hedging transactions with
broker-dealers, which may in turn engage in short sales of the Transfer
Restricted Securities and deliver Transfer Restricted Securities to close out
such short positions, or loan or pledge Transfer Restricted Securities to
broker-dealers that in turn may sell such securities. State any exceptions here:

________________________________________________________________________________

________________________________________________________________________________

Note: In no event will such method(s) of distribution take the form of an
underwritten offering of the Transfer Restricted Securities without the prior
agreement of the Company.

         By signing below, the Selling Securityholder acknowledges that it
understands its obligation to comply, and agrees it will comply, with the
provisions of the prospectus delivery and other provisions of the Securities Act
and Exchange Act and the respective rules and regulations promulgated
thereunder, particularly Regulation M thereunder (or any successor rules or
regulations), in connection with any offering of Transfer Restricted Securities
pursuant to the Shelf Registration Statement.

         If the Selling Securityholder transfers all or any portion of the
Transfer Restricted Securities listed in Item 3 above after the date on which
such information is provided to the Company, the Selling Securityholder agrees
to notify the transferee(s) at the time of the transfer of its rights and
obligations under this Election and Questionnaire and the Registration Rights
Agreement.

         By signing below, the Selling Securityholder consents to the disclosure
of the information contained herein in its answers to Items (1) through (6)
above and the inclusion of such information in the Shelf Registration Statement
and the related Prospectus. The Selling Securityholder understands that such
information will be relied upon by the Company in connection with the
preparation or amendment of the Shelf Registration Statement and the related
Prospectus.

         In accordance with the Selling Securityholder's obligation under the
Registration Rights Agreement to provide such information as may be required by
law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly notify the Company of any inaccuracies or
changes in the information provided herein that may occur subsequent to the date
hereof at any time while the Shelf Registration Statement remains effective. All
notices

                                      A-4

<PAGE>

hereunder and pursuant to the Registration Rights Agreement shall be made in
writing at the address set forth below.

         Once this Election and Questionnaire is executed by the Selling
Securityholders and received by the Company, the terms of this Election and
Questionnaire and the representations and warranties contained herein shall be
binding on, shall inure to the benefit of and shall be enforceable by the
respective successors, heirs, personal representatives and assigns of the
Company and the Selling Securityholder with respect to the Transfer Restricted
Securities beneficially owned by such Selling Securityholder and listed in Item
3 above. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.

         IN WITNESS WHEREOF, the undersigned, by authority duly given, has
caused this Election and Questionnaire to be executed and delivered either in
person or by its authorized agent.

Dated:
                                      Beneficial Owner

                                      By: ______________________________________
                                          Name:
                                          Title:

         Please return the completed and executed Election and Questionnaire for
receipt PRIOR TO OR ON THE 30TH BUSINESS DAY FROM RECEIPT HEREOF to Jakks
Pacific, Inc. at:

         Jakks Pacific, Inc.
         22619 Pacific Coast Highway
         Malibu, California 90265
         Attention: Joel Bennett

                                      A-5

<PAGE>

                              EXHIBIT 1 TO ANNEX A

                           NOTICE TO TRANSFER PURSUANT
                            TO REGISTRATION STATEMENT

Jakks Pacific, Inc.
22619 Pacific Coast Highway
Malibu, California 90265
Attention: Joel Bennett

         Re: Jakks Pacific, Inc.'s Convertible Senior Notes due 2023 (the
"Notes")

Dear Sirs:

         Please be advised that __________ has transferred $_________ aggregate
principal amount of the above-referenced Notes or ____________________________
shares of the Company's Common Stock issued on conversion or repurchase of
Notes, pursuant to the Registration Statement on Form S-3 (File No. 333-
__________) filed by the Company.

         We hereby certify that the prospectus delivery requirements, if any, of
the Securities Act of 1933, as amended, have been satisfied with respect to the
transfer described above and that the above named beneficial owner of the Notes
or Common Stock is named as a selling securityholder in the Prospectus dated
_____________________, or in amendments or supplements thereto, and that the
aggregate principal amount of the Notes or number of shares of Common Stock
transferred are all or a portion of the Notes or Common Stock listed in such
Prospectus, as amended or supplemented, opposite such owner's name.

                                      Very truly yours,

                                      [name]

                                      By:  _____________________________________
                                           (Authorized signature)
Dated: ________________

                                       A-6

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