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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5><B>UNITED STATES <BR>


SECURITIES AND EXCHANGE COMMISSION </B></FONT><BR>

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<FONT FACE="Times New Roman, Times, Serif" SIZE=4><B>WASHINGTON, D.C. 20549</B> </FONT><BR><BR>

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<FONT FACE="Times New Roman, Times, Serif" SIZE=5><B>FORM 8-K </B></FONT></P>

<P align=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>CURRENT REPORT<BR><BR> PURSUANT TO SECTION 13
OR 15 (d) OF THE <BR>SECURITIES EXCHANGE ACT OF 1934</B></FONT></p>


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<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Date
of Report (Date of earliest event reported): <B>March 2, 2006</B> </FONT></P>

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<p><table width=600><tr><td  align=center><font size=2><B>Commission file number 0-7843</B></font></td></tr></table>


<p><table width=600><tr>
    <td  align=center><font size=2><B><font size="6">4Kids Entertainment, Inc.
      </font></B></font>
      <hr noshade align="center" size="1" width="50%">
      <font size=2> (Exact name of Registrant as specified in its charter)</font></td>
  </tr></table>

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    <td  align=center width="292"><font size=2><B>New York</B></font>
      <hr noshade align="center" size="1" width="50%">
      <font size=2><B> </B>(State or other jurisdiction of <br>
      incorporation or organization) </font></td>
    <td  align=center width="296"><font size=2><b>13-2691380</b></font>
      <hr noshade align="center" size="1" width="50%">
      <font size=2><b> </b>(I.R.S. Employer<br>
      Identification No.)</font></td>
  </tr>
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<p><table width=600><tr>
    <td  align=center><font size=2><B>1414 Avenue of the Americas <BR>
      New York, New York 10019 <BR>
      (212) 758-7666 </B></font>
      <hr noshade align="center" size="1" width="50%">
      <font size=2><B> (</B>Address, including zip code, and telephone number,
      including area code,<br>
      of Registrant&#146;s principal executive offices)</font></td>
  </tr></table>
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<P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT SIZE="1">&nbsp;</FONT></P>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR><TR><TD>&nbsp;</TD></TR></TABLE>

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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR><TR><TD>&nbsp;</TD></TR></TABLE>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR><TR><TD>&nbsp;</TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1.01. Entry into a
Material Definitive Agreement. </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 2, 2006, 4Kids Productions,
Inc. (&#147;4KP&#148;), a subsidiary of 4Kids Entertainment, Inc. (&#147;4Kids or the
&#147;Company&#148;) and Norman J. Grossfeld entered into an amendment to the employment
agreement pertaining to Mr. Grossfeld&#146;s service as 4KP&#146;s President (the
&#147;Grossfeld Amendment&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Under the terms of the Grossfeld
Amendment: (a) Mr. Grossfeld&#146;s employment with 4KP will continue until December 31,
2009; (b) for the calendar year 2006, Mr. Grossfeld will be entitled to receive an annual
base salary of $500,000 and for each of calendar years 2007-2009,
Mr. Grossfeld will be entitled to receive an annual base salary of $700,000; (c) for
calendar years 2006-2009, Mr. Grossfeld will be eligible to receive salary increases at
the discretion of the Compensation Committee of the Board of Directors of 4Kids
(&#147;Compensation Committee&#148;) and an annual cash bonus in an amount, if any, to be
determined in the sole discretion of the Compensation Committee in conjunction with the
Chief Executive Officer of 4Kids; and (d) in the event that the Grossfeld Employment
Agreement is not extended beyond its term for at least one (1) year on at least the same
terms and conditions as were in effect in 2009, Mr. Grossfeld will be entitled to receive
a severance benefit equal to three (3) weeks of his base salary (as of the 2009 calendar
year) for each year Mr. Grossfeld was employed by the Company or its affiliates. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 2, 2006, 4Kids Entertainment
Licensing, Inc. (&#147;4KE&#148;), a subsidiary of 4Kids and Samuel R. Newborn entered
into an amendment to the employment agreement pertaining to Mr. Newborn&#146;s service as
Executive Vice President and General Counsel of 4Kids and subsidiaries (the &#147;Newborn
Amendment&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Under the terms of the Newborn
Amendment: (a) Mr. Newborn&#146;s employment with 4KE will continue until December 31,
2009; (b) for the calendar year 2006 Mr. Newborn will be entitled to receive an annual
base salary of $500,000 and for each of calendar years 2007-2009,
Mr. Newborn will be entitled to receive an annual base salary of $700,000; (c) for
calendar years 2006-2009, Mr. Newborn will be eligible to receive salary increases at the
discretion of the Compensation Committee and an annual cash bonus in an amount, if any, to
be determined in the sole discretion of the Compensation Committee in conjunction with the
Chief Executive Officer of 4Kids; and (d) in the event that the Newborn Employment
Agreement is not extended beyond its term for at least one (1) year on at least the same
terms and conditions as were in effect in 2009, Mr. Newborn will be entitled to receive a
severance benefit equal to three (3) weeks of his base salary (as of the 2009 calendar
year) for each year Mr. Newborn was employed by the Company or its affiliates. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The definitive amendments described
above are furnished as exhibit 99.1 to this Report and incorporated by reference herein.
The preceding descriptions of these amendments are summary in nature and do not purport to
be complete. These summaries should be read in connection with the exhibits hereto. </FONT></P>



<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 9.01.  Financial Statements and Exhibits.</FONT></H1>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Exhibits</I></FONT></P>



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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       <U>   Exhibit</U> </FONT></TD>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  &nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Description</U> </FONT></TD>
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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>          99.1  </FONT></TD>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  &nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids Productions, Inc., 4Kids Entertainment, Inc. and Norman
J. Grossfeld. </FONT></TD>
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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>          99.2  </FONT></TD><TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  &nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>

          Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids
          Entertainment Licensing, Inc., 4Kids Entertainment, Inc. and Samuel R. Newborn.
</FONT></TD>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:&nbsp;&nbsp;March 8, 2006 </FONT></P>


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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>4KIDS ENTERTAINMENT, INC.</B><BR><BR>
<BR>BY: <U><I>/s/
Bruce R. Foster </I></U><BR><BR>
Bruce R. Foster<BR>Executive Vice President, Chief Financial Officer</FONT></TD>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>
Exhibit Index</U></FONT></P>



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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       <U>   Exhibit</U> </FONT></TD>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  &nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Description</U> </FONT></TD>
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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>          99.1  </FONT></TD>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  &nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids Productions, Inc., 4Kids Entertainment, Inc. and Norman
J. Grossfeld.</FONT></TD>
</TR>
</TABLE>
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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>          99.2  </FONT></TD><TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  &nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>

          Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids
          Entertainment Licensing, Inc., 4Kids Entertainment, Inc. and Samuel R. Newborn.
  </FONT></TD>
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{"company-data": {"conformed-name": "4 KIDS ENTERTAINMENT INC", "cik": "0000058592", "assigned-sic": "6794", "irs-number": "132691380", "state-of-incorporation": "NY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16117", "film-number": "06673264"}, "business-address": {"street1": "1414 AVE OF THE AMERICAS", "city": "NEW YORK", "state": "NY", "zip": "10019", "phone": "2127587666"}, "mail-address": {"street1": "1414 AVENUE OF THE AMERICAS", "city": "NEW YORK", "state": "NY", "zip": "10019"}, "former-company": [{"former-conformed-name": "LEISURE CONCEPTS INC", "date-changed": "19920703"}, {"former-conformed-name": "AMERICAN LEISURE INDUSTRIES INC", "date-changed": "19740822"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13
OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported):
March 2, 2006
Commission file number 0-7843
4Kids Entertainment, Inc.
(Exact name of Registrant as specified in its charter)
New York
(State or other jurisdiction of
incorporation or organization)
13-2691380
(I.R.S. Employer
Identification No.)
1414 Avenue of the Americas
New York, New York 10019
(212) 758-7666
(
Address, including zip code, and telephone number,
      including area code,
of Registrant's principal executive offices)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a
Material Definitive Agreement.
On March 2, 2006, 4Kids Productions,
Inc. ("4KP"), a subsidiary of 4Kids Entertainment, Inc. ("4Kids or the
"Company") and Norman J. Grossfeld entered into an amendment to the employment
agreement pertaining to Mr. Grossfeld's service as 4KP's President (the
"Grossfeld Amendment").
Under the terms of the Grossfeld
Amendment: (a) Mr. Grossfeld's employment with 4KP will continue until December 31,
2009; (b) for the calendar year 2006, Mr. Grossfeld will be entitled to receive an annual
base salary of $500,000 and for each of calendar years 2007-2009,
Mr. Grossfeld will be entitled to receive an annual base salary of $700,000; (c) for
calendar years 2006-2009, Mr. Grossfeld will be eligible to receive salary increases at
the discretion of the Compensation Committee of the Board of Directors of 4Kids
("Compensation Committee") and an annual cash bonus in an amount, if any, to be
determined in the sole discretion of the Compensation Committee in conjunction with the
Chief Executive Officer of 4Kids; and (d) in the event that the Grossfeld Employment
Agreement is not extended beyond its term for at least one (1) year on at least the same
terms and conditions as were in effect in 2009, Mr. Grossfeld will be entitled to receive
a severance benefit equal to three (3) weeks of his base salary (as of the 2009 calendar
year) for each year Mr. Grossfeld was employed by the Company or its affiliates.
On March 2, 2006, 4Kids Entertainment
Licensing, Inc. ("4KE"), a subsidiary of 4Kids and Samuel R. Newborn entered
into an amendment to the employment agreement pertaining to Mr. Newborn's service as
Executive Vice President and General Counsel of 4Kids and subsidiaries (the "Newborn
Amendment").
Under the terms of the Newborn
Amendment: (a) Mr. Newborn's employment with 4KE will continue until December 31,
2009; (b) for the calendar year 2006 Mr. Newborn will be entitled to receive an annual
base salary of $500,000 and for each of calendar years 2007-2009,
Mr. Newborn will be entitled to receive an annual base salary of $700,000; (c) for
calendar years 2006-2009, Mr. Newborn will be eligible to receive salary increases at the
discretion of the Compensation Committee and an annual cash bonus in an amount, if any, to
be determined in the sole discretion of the Compensation Committee in conjunction with the
Chief Executive Officer of 4Kids; and (d) in the event that the Newborn Employment
Agreement is not extended beyond its term for at least one (1) year on at least the same
terms and conditions as were in effect in 2009, Mr. Newborn will be entitled to receive a
severance benefit equal to three (3) weeks of his base salary (as of the 2009 calendar
year) for each year Mr. Newborn was employed by the Company or its affiliates.
The definitive amendments described
above are furnished as exhibit 99.1 to this Report and incorporated by reference herein.
The preceding descriptions of these amendments are summary in nature and do not purport to
be complete. These summaries should be read in connection with the exhibits hereto.
Item 9.01.  Financial Statements and Exhibits.
(c)
Exhibits
Exhibit
Description
99.1
Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids Productions, Inc., 4Kids Entertainment, Inc. and Norman
J. Grossfeld.
99.2
Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids
          Entertainment Licensing, Inc., 4Kids Entertainment, Inc. and Samuel R. Newborn.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:  March 8, 2006
4KIDS ENTERTAINMENT, INC.
BY:
/s/
Bruce R. Foster
Bruce R. Foster
Executive Vice President, Chief Financial Officer
Exhibit Index
Exhibit
Description
99.1
Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids Productions, Inc., 4Kids Entertainment, Inc. and Norman
J. Grossfeld.
99.2
Letter Agreement re: Employment Agreement, dated March 2, 2006, among 4Kids
          Entertainment Licensing, Inc., 4Kids Entertainment, Inc. and Samuel R. Newborn.