{"url_path":"/sec/jakk/10-k/2026/item-13","section_key":"item-13","section_title":"Item 13 Certain Relationships and Related Transactions, and","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-03-02","source_url":"https://www.sec.gov/Archives/edgar/data/1009829/0001185185-26-000723-index.html","accession_number":"0001185185-26-000723","cik":"0001009829","ticker":"JAKK","issuer_name":"JAKKS PACIFIC INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1009829/0001185185-26-000723-index.html","primary_entity_key":"0001009829","primary_entity_name":"JAKKS PACIFIC INC"},"word_count":555,"has_tables":true,"body_markdown":"**Item 13. Certain Relationships and Related Transactions, and\nDirector Independence**\n\n \n\n*(a) Transactions with Related Persons*\n\n \n\nIn March 2017, the Company entered into an equity\npurchase agreement with Hong Kong Meisheng Cultural Company Limited (“Meisheng”) which provided, among other things, that\nas long as Meisheng and its affiliates hold 10% or more of the issued and outstanding shares of common stock of the Company, Meisheng\nshall have the right from time to time to designate a nominee for election to the Company’s board of directors. Since such time,\nMr. Xiaoqiang Zhao was Meisheng’s nominee. Meisheng and its affiliates own less than 10% of the Company’s outstanding shares\nof common stock. Mr. Zhao did not stand for reelection as director at the Company’s 2024 annual meeting. Since December 6, 2024,\nMeisheng is not represented on the Company’s board of directors and thus ceased to be a related party to the company.\n\n \n\nMeisheng continues to be a significant manufacturer\nof the Company. For the years ended December 31, 2024 and 2023, the Company made inventory, molds and tooling related payments to Meisheng\nof approximately $98.4 million and $75.7 million respectively. As of December 31, 2024, amounts due to Meisheng for inventory received\nby the Company, but not paid totaled $13.5 million. For the year ended December 31, 2024, the Company recorded sales revenues of $0.1\nmillion from Party X People GmbH, a subsidiary of Meisheng.\n\n \n\nAn immediate family member of our Chief Executive\nOfficer was employed by the Company in a non-executive role during 2025 and received total compensation of approximately $153,950 which\nwas consistent with that of employees in similar roles. The employee is well qualified for the position based upon schooling and prior\nexperience in other roles with the Company.\n\n \n\n*(b) Review, Approval or Ratification of Transactions\nwith Related Persons*\n\n \n\nPursuant to our Ethical Code of Conduct (a copy\nof which may be found on our website, www.jakks.com), all of our employees are required to disclose to our General Counsel, the Board\nof Directors or any committee established by the Board of Directors to receive such information, any material transaction or relationship\nthat reasonably could be expected to give rise to actual or apparent conflicts of interest between any of them, personally, and us. In\naddition, our Ethical Code of Conduct also directs all employees to avoid any self-interested transactions without full disclosure. This\npolicy, which applies to all of our employees, is reiterated in our Employee Handbook which states that a violation of this policy could\nbe grounds for termination. In approving or rejecting a proposed transaction, our General Counsel, Board of Directors or designated committee\nwill consider the facts and circumstances available and deemed relevant, including but not limited to, the risks, costs and benefits\nto us, the terms of the transactions, the availability of other sources for comparable services or products, and, if applicable, the\nimpact on director independence. Upon concluding their review, they will only approve those agreements that, in light of known circumstances,\nare in or are not inconsistent with, our best interests, as they determine in good faith.\n\n \n\n*(c) Director Independence*\n\n \n\nFor a description of our Board of Directors and\nits compliance with the independence requirements therefore as promulgated by the Securities and Exchange Commission and Nasdaq, see\n“Item 10- Directors, Executive Officers and Corporate Governance.”\n\n \n\n95\n\n[Table of Contents](#TableOfContents)"}