Document:

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                                                                     EXHIBIT 4.1

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                                 MATTEL, INC.

                             --------------------

                                   INDENTURE

                         Dated as of February 15, 1996

                             --------------------

                     CHEMICAL TRUST COMPANY OF CALIFORNIA

                                    Trustee

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                               TABLE OF CONTENTS

                                   ARTICLE I

                 DEFINITIONS AND INCORPORATION BY REFERENCE............  1

 SECTION 1.1    Definitions............................................  1
 SECTION 1.2    Other Definitions......................................  7
 SECTION 1.3    Incorporation by Reference of Trust Indenture Act......  7
 SECTION 1.4    Rules of Construction..................................  8

                                  ARTICLE II

                                THE SECURITIES........................   8

 SECTION 2.1    Issuable in Series....................................   8
 SECTION 2.2    Establishment of Terms of Series of Securities........   8
 SECTION 2.3    Execution and Authentication..........................  10
 SECTION 2.4    Registrar and Paying Agent............................  11
 SECTION 2.5    Paying Agent to Hold Money in Trust...................  12
 SECTION 2.6    Securityholder Lists..................................  12
 SECTION 2.7    Transfer and Exchange.................................  13
 SECTION 2.8    Mutilated, Destroyed, Lost and Stolen Securities......  13
 SECTION 2.9    Outstanding Securities................................  14
 SECTION 2.10   Treasury Securities...................................  14
 SECTION 2.11   Temporary Securities..................................  15
 SECTION 2.12   Cancellation..........................................  15
 SECTION 2.13   Defaulted Interest....................................  15
 SECTION 2.14   Global Securities.....................................  15
 SECTION 2.15   CUSIP Numbers.........................................  17

                               ARTICLE III

                               REDEMPTION.............................  17

 SECTION 3.1    Notice to Trustees....................................  17
 SECTION 3.2    Selection of Securities to be Redeemed................  17
 SECTION 3.3    Notice of Redemption..................................  17
 SECTION 3.4    Effect of Notice of Redemption........................  18
 SECTION 3.5    Deposit of Redemption Price...........................  18
 SECTION 3.6    Securities Redeemed in Part...........................  18

                                       i
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                               ARTICLE IV

                               COVENANTS..............................  19

 SECTION 4.1    Payment of Principal and Interest.....................  19
 SECTION 4.2    SEC Reports...........................................  19
 SECTION 4.3    Compliance Certificate................................  19
 SECTION 4.4    Stay, Extension and Usury Laws........................  19
 SECTION 4.5    Corporate Existence...................................  20
 SECTION 4.6    Taxes.................................................  20
 SECTION 4.7    Limitation on Liens...................................  20
 SECTION 4.8    Limitation on Sale/Leaseback Transactions.............  21

                                 ARTICLE V

                                 SUCCESSORS...........................  22

 SECTION 5.1    When Company May Merge, Etc...........................  22
 SECTION 5.2    Successor Corporation Substituted.....................  22

                                ARTICLE VI

                          DEFAULTS AND REMEDIES.......................  23

 SECTION 6.1     Events of Default....................................  23
 SECTION 6.2     Acceleration of Maturity; Rescission and Annulment...  24
 SECTION 6.3     Collection of Indebtedness and Suits for Enforcement
                   by Trustee.........................................  25
 SECTION 6.4     Trustee May File Proofs of Claim.....................  26
 SECTION 6.5     Trustee May Enforce Claims Without Possession of
                   Securities.........................................  27
 SECTION 6.6     Application of Money Collected.......................  27
 SECTION 6.7     Limitation on Suits..................................  28
 SECTION 6.8     Unconditional Right of Holders to Receive Principal
                  and Interest........................................  28
 SECTION 6.9     Restoration of Rights and Remedies...................  28
 SECTION 6.10    Rights and Remedies Cumulative.......................  29
 SECTION 6.11    Delay or Omission Not Waiver.........................  29
 SECTION 6.12    Control by Holders...................................  29
 SECTION 6.13    Waiver of Past Defaults..............................  29
 SECTION 6.14    Undertaking for Costs................................  30

                              ARTICLE VII

                               TRUSTEE................................  30

 SECTION 7.1     Duties of Trustee....................................  30
 SECTION 7.2     Rights of Trustee....................................  31
 SECTION 7.3     Individual Rights of Trustee.........................  32

                                     ii
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 SECTION 7.4     Trustee's Disclaimer.................................  32
 SECTION 7.5     Notice of Defaults...................................  32
 SECTION 7.6     Reports by Trustee to Holders........................  33
 SECTION 7.7     Compensation and Indemnity...........................  33
 SECTION 7.8     Replacement of Trustee...............................  34
 SECTION 7.9     Successor Trustee by Merger, etc.....................  35
 SECTION 7.10    Eligibility; Disqualification........................  35
 SECTION 7.11    Preferential Collection of Claims Against Company....  35

                                 ARTICLE VIII

                          SATISFACTION AND DISCHARGE..................  35

 SECTION 8.1    Satisfaction and Discharge of Indenture...............  35
 SECTION 8.2    Application of Trust Funds; Indemnification...........  36
 SECTION 8.3    Satisfaction, Discharge and Defeasance of Securities
                  of any Series.......................................  37
 SECTION 8.4    Defeasance of Certain Obligations.....................  39
 SECTION 8.5    Repayment to Company..................................  40

                                  ARTICLE IX

                             AMENDMENTS AND WAIVERS...................  40

 SECTION 9.1    Without Consent of Holders............................  40
 SECTION 9.2    With Consent of Holders...............................  41
 SECTION 9.3    Limitations...........................................  41
 SECTION 9.4    Compliance with Trust Indenture Act...................  42
 SECTION 9.5    Revocation and Effect of Consents.....................  42
 SECTION 9.6    Notation on or Exchange of Securities.................  42
 SECTION 9.7    Trustee Protected.....................................  42

                                   ARTICLE X

                                 MISCELLANEOUS........................  43

 SECTION 10.1   Trust Indenture Act Controls..........................  43
 SECTION 10.2   Notices...............................................  43
 SECTION 10.3   Communication by Holders with Other Holders...........  44
 SECTION 10.4   Certificate and Opinion as to Conditions Precedent....  44
 SECTION 10.5   Statements Required in Certificate or Opinion.........  44
 SECTION 10.6   Rules by Trustee and Agents...........................  44
 SECTION 10.7   Legal Holidays........................................  45
 SECTION 10.8   No Recourse Against Others............................  45
 SECTION 10.9   Counterparts..........................................  45
 SECTION 10.10  Governing Laws........................................  45
 SECTION 10.11  No Adverse Interpretation of Other Agreements.........  45

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 SECTION 10.12   Successors...........................................  45
 SECTION 10.13   Severability.........................................  45
 SECTION 10.14   Table of Contents, Headings, Etc.....................  46
 SECTION 10.15   Securities in a Foreign Currency or in ECU...........  46
 SECTION 10.16   Judgment Currency....................................  46

                                  ARTICLE XI

                                SINKING FUNDS.........................  47

 SECTION 11.1    Applicability of Article.............................  47
 SECTION 11.2    Satisfaction of Sinking Fund Payments with
                   Securities.........................................  47
 SECTION 11.3    Redemption of Securities for Sinking Fund............  48

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     Indenture dated as of February 15, 1996 between Mattel, Inc., a
Delaware corporation ("Company"), and Chemical Trust Company of California, a
California corporation ("Trustee").

     Each party agrees as follows for the benefit of the other party and
for the equal and ratable benefit of the Holders of the Securities issued under
this Indenture.

                                   ARTICLE I

                  DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.1  Definitions.
             -----------

     "Affiliate" of any specified person means any other person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified person.   For the purposes of this definition,
"control" (including, with correlative meanings, the terms "controlled by" and
"under common control with"), as used with respect to any person, shall mean 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
ownership of voting securities or by agreement or otherwise.

     "Agent" means any Registrar, Paying Agent or Service Agent.

     "Authorized Newspaper" means a newspaper in an official language of
the country of publication customarily published at least once a day for at
least five days in each calendar week and of general circulation in the place in
connection with which the term is used.  If it shall be impractical in the
opinion of the Trustee to make any publication of any notice required hereby in
an Authorized Newspaper, any publication or other notice in lieu thereof that is
made or given by the Trustee shall constitute a sufficient publication of such
notice.

     "Bearer" means anyone in possession from time to time of a Bearer
Security.

     "Bearer Security" means any Security that does not provide for the
identification of the Holder thereof.

     "Board of Directors" means the Board of Directors of the Company or
any duly authorized committee thereof.

     "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been adopted by the
Board of Directors or pursuant to authorization by the Board of Directors and to
be in full force and effect on the date of the certificate and delivered to the
Trustee.
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     "Capitalized Lease" means any lease of property where the obligations
of the lessee thereunder are required to be classified and accounted for as a
capitalized lease on a balance sheet of such lessee under generally accepted
accounting principles.

     "Company" means the party named as such above until a successor
replaces it and thereafter means the successor.

     "Company Order" means a written order signed in the name of the
Company by two Officers, one of whom must be the Company's principal executive
officer, principal financial officer or principal accounting officer.

     "Company Request" means a written request signed in the name of the
Company by its Chairman of the Board, a President or a Vice President, and by
its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee.

     "Consolidated Net Tangible Assets" means the total amount of assets of
the Company and its Subsidiaries on a consolidated basis (less applicable
depreciation, amortization and other valuation reserves), except to the extent
resulting from write-ups occurring after January 1, 1988 of capital assets
(excluding in any case write-ups in connection with accounting for acquisitions
in conformity with generally accepted accounting principles), after deducting
therefrom (i) all current liabilities of the Company and its Subsidiaries, (ii)
all investments in unconsolidated Subsidiaries of the Company and in persons
which are not Subsidiaries of the Company (except, in each case, investments in
marketable securities) and (iii) all goodwill, trade names, trademarks, patents,
unamortized debt discount and expense and other intangible items, all as set
forth on the most recently available consolidated balance sheet of the Company
and its Subsidiaries, prepared in conformity with generally accepted accounting
principles.

     "Corporate Trust Office" means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered.

     "Current Assets" means any asset of the Company or any of its
Subsidiaries that would be classified as a current asset on an audited
consolidated balance sheet of the Company prepared, in accordance with generally
accepted accounting principles, on the date any Lien (as hereinafter defined) on
such asset is incurred.

     "Default" means any event which is, or after notice or passage of time
would be, an Event of Default.

     "Depository" means, with respect to the Securities of any Series
issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depository for such Series by the Company,
which Depository shall be a clearing agency registered under the Exchange Act;
and if at any time there is more than one such person, "Depository" as used with
respect to the Securities of any Series shall mean the Depository with respect
to the Securities of such Series.

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     "Discount Security" means any Security that provides for an amount
less than the stated principal amount thereof to be due and payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2.

     "Dollars" means the currency of the United States of America.

     "ECU" means the European Currency Unit as determined by the Commission
of the European Union.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Foreign Currency" means any currency issued by a government other
than the government of the United States of America.

     "Foreign Government Securities" means with respect to Securities of
any Series that are denominated in a Foreign Currency, noncallable (i) direct
obligations of the government that issued such Foreign Currency for the payment
of which obligations its full faith and credit is pledged or (ii) obligations of
a person controlled or supervised by and acting as an agency or instrumentality
of such government, the payment of which obligations is unconditionally
guaranteed as a full faith and credit obligation of such government.

     "Global Security" or "Global Securities" means a Security or
Securities, as the case may be, in the form established pursuant to Section 2.1
evidencing all or part of a Series of Securities, issued to the Depository for
such Series or its nominee, and registered in the name of such Depository or
nominee.

     "Holder" or "Securityholder" means a person in whose name a Security
is registered or the holder of a Bearer Security.

     "Indebtedness" means, with respect to any person, and without
duplication:

      (a) any liability of such person (A) for borrowed money, or (B) for
   any letter of credit for the account of such person supporting obligations
   of such person or other persons, or (C) evidenced by a bond, note,
   debenture or similar instrument (including a purchase money obligation)
   given in connection with the acquisition of any businesses, properties or
   assets of any kind (other than a trade payable or a current liability
   arising in the ordinary course of business), or (D) for the payment of
   money relating to a Capitalized Lease;

      (b) any liability of others described in the preceding clause (a) that
   the person has guaranteed or that is otherwise its legal liability; and

      (c) any amendment, supplement, modification, deferral, renewal,
   extension or refunding of any liability of the types referred to in clauses
   (a) and (b) above.

                                       3
<PAGE>

     "Indenture" means this Indenture as amended from time to time and
shall include the form and terms of particular Series of Securities established
or contemplated hereunder.

     "Lien" means any lien, security interest, charge, mortgage, pledge or
other encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof, and any agreement to give
any security interest).

     "Maturity," when used with respect to any Security or installment of
principal thereof, means the date on which the principal of such Security or
such installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration, call
for redemption or otherwise.

     "Officer" means the Chairman of the Board, any President, any Vice-
President, the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Company.

     "Officers' Certificate" means a certificate signed by two Officers,
one of whom must be the Company's principal executive officer, principal
financial officer or principal accounting officer.

     "Opinion of Counsel" means a written opinion of legal counsel who is
acceptable to the Trustee.  The counsel may be an employee of or counsel to the
Company.

     "Ordinary Course Lien" means

     (a) Liens of taxes, assessments or governmental charges or levies on
  the property of the Company or any of its Subsidiaries if the same shall
  not at the time be delinquent or thereafter can be paid without penalty, or
  are being contested in good faith and by appropriate proceedings and for
  which adequate reserves in accordance with generally accepted accounting
  principles shall have been set aside on the books of the Company;

     (b) Liens imposed by law, such as carriers', warehousemen's,
  landlords', materialmen's and mechanics' liens and other similar liens,
  arising in the ordinary course of business which secure obligations not
  more than 60 days past due or which are being contested in good faith by
  appropriate proceedings and for which adequate reserves in accordance with
  generally accepted accounting principles shall have been set aside on the
  books of the Company;

     (c) Liens (other than any Lien imposed by the Employee Retirement
  Income Security Act of 1974, as amended) arising out of pledges or deposits
  under worker's compensation laws, unemployment insurance, old age pensions,
  or other social security or retirement benefits, or similar legislation;

     (d) Liens incurred or deposits made to secure the performance of
  tenders, bids, surety bonds or performance and return-of-money bonds
  incurred in the ordinary course of business;

                                       4
<PAGE>

  (e) utility easements, building restrictions and such other encumbrances or
  charges against real property as are of a nature generally existing with
  respect to properties of a similar character and which do not in any
  material way affect the marketability of the same or interfere with the use
  thereof in the business of the Company or any of its Subsidiaries, as the
  case may be;

     (f) Liens relating to a judgment or other court-ordered award or
  settlement as to which the Company has not exhausted its appellate rights.

     (g) Leases or subleases granted to or by the Company or any Subsidiary
  not pursuant to a Sale/Leaseback Transaction undertaken in the ordinary
  course of the business of the Company or any such Subsidiary and not for
  the purpose of providing a lien, security interest, charge, mortgage,
  pledge or other such encumbrance to secure another obligation.

     "person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

     "principal" of a Security means the principal of the Security plus,
when appropriate, the premium, if any, on the Security.

     "Responsible Officer" when used with respect to the Trustee, means the
chairman or the vice-chairman of the board of directors or trustees, the
chairman or vice-chairman of the executive committee of the board of directors
or trustees, the president, any vice-president, the treasurer, the secretary,
any trust officer, any second or assistant vice-president or any officer or
assistant officer of the Trustee other than those specifically above mentioned
customarily performing functions similar to those performed by the persons who
at the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of his knowledge of and familiarity with a particular
subject.

     "Sale/Leaseback Transaction" means any arrangement with any person
(other than the Company or any of its Subsidiaries) providing for the leasing by
the Company or any of its Subsidiaries of any property which has been or is to
be sold or transferred by the Company or such Subsidiary to such person or to
any person (other than the Company or any of its Subsidiaries) to which funds
have been or are to be advanced by such person on the security of the leased
property.

     "SEC" means the Securities and Exchange Commission.

     "Securities" means the debentures, notes or other debt instruments of
the Company of any Series authenticated and delivered under this Indenture.

     "Series" or "Series of Securities" means each series of debentures,
notes or other debt instruments of the Company created pursuant to Sections 2.1
and 2.2 hereof.

                                       5
<PAGE>

     "Significant Subsidiary" means (i) any direct or indirect Subsidiary
of the Company that would be a "significant subsidiary" as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act of 1933,
as amended, as such regulation is in effect on the date hereof, or (ii) any
group of direct or indirect Subsidiaries of the Company that, taken together as
a group, would be a "significant subsidiary" as defined in Article 1, Rule 1-02
of Regulation S-X, promulgated pursuant to the Securities Act of 1933, as
amended, as such regulation is in effect on the date hereof,

     "Stated Maturity" when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such installment of principal or interest is due and payable.

     "Subsidiary" of any specified person means (i) a corporation a
majority of whose capital stock with voting power, under ordinary circumstances,
to elect directors is at the time, directly or indirectly, owned by such person
or by such person and a subsidiary or subsidiaries of such person or by a
subsidiary or subsidiaries of such person or (ii) any other person (other than a
corporation) in which such person or such person and a subsidiary or
subsidiaries of such person or a subsidiary or subsidiaries of such person
directly or indirectly, at the date of determination thereof has at least
majority ownership interest.

     "TIA" means the Trust Indenture Act of 1939 (15 U.S. Code (S)(S)
77aaa-77bbbb) as in effect on the date of this Indenture; provided, however,
                                                          --------  -------
that in the event the Trust Indenture Act of 1939 is amended after such date,
"TIA" means, to the extent required by any such amendment, the Trust Indenture
Act as so amended.

     "Trustee" means the person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each person who is then a Trustee hereunder, and
if at any time there is more than one such person, "Trustee" as used with
respect to the Securities of any Series shall mean the Trustee with respect to
Securities of that Series.

     "U.S. Government Obligations" means securities which are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America which are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation evidenced by such
depository receipt.

                                       6
<PAGE>

SECTION 1.2 Other Definitions.
            ------------------

                                               DEFINED IN
 TERM                                           SECTION
 ----                                          ----------

"Bankruptcy Law"..................                 6.1
"Custodian".......................                 6.1
"Event of Default"................                 6.1
"Journal".........................               10.15
"Judgment Currency"...............               10.16
"Legal Holiday"...................                10.7
"mandatory sinking fund payment"..                11.1
"Market Exchange Rate"............               10.15
"New York Banking Day"............               10.16
"optional sinking fund payment"...                11.1
"Paying Agent"....................                 2.4
"Registrar".......................                 2.4
"Required Currency"...............               10.16
"Service Agent"...................                 2.4

SECTION 1.3  Incorporation by Reference of Trust Indenture Act.
             -------------------------------------------------

     Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture.
The following TIA terms used in this Indenture have the following meanings:

        "Commission" means the SEC.

        "indenture securities" means the Securities.

        "indenture security holder" means a Securityholder.

        "indenture to be qualified" means this Indenture.

        "indenture trustee" or "institutional trustee" means the Trustee.

        "obligor" on the indenture securities means the Company and any
  successor obligor upon the Securities.

     All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
and not otherwise defined herein are used herein as so defined.

                                       7
<PAGE>

SECTION 1.4  Rules of Construction.
             ---------------------

      Unless the context otherwise requires:

      (a) a term has the meaning assigned to it;

      (b) an accounting term not otherwise defined has the meaning assigned
  to it in accordance with generally accepted accounting principles;

      (c) references to "generally accepted accounting principles" shall
  mean generally accepted accounting principles in effect as of the time when
  and for the period as to which such accounting principles are to be
  applied;

      (d)  "or" is not exclusive;

      (e) words in the singular include the plural, and in the plural
  include the singular; and

      (f) provisions apply to successive events and transactions.

                                  ARTICLE II

                                THE SECURITIES

SECTION 2.1  Issuable in Series.
             ------------------

               The aggregate principal amount of Securities that may be
  authenticated and delivered under this Indenture is unlimited.  The
  Securities may be issued in one or more Series.  All Securities of a Series
  shall be identical except as may be provided in a Board Resolution and/or
  an Officers' Certificate detailing the adoption of the terms thereof
  pursuant to the Board Resolution or a supplemental indenture hereto.  In
  the case of Securities of a Series to be issued from time to time, the
  Officers' Certificate may provide for the method by which specified terms
  (such as interest rate, maturity date, record date or date from which
  interest should accrue) are to be determined.  Securities may differ
  between Series, in respect of any matters; provided that all Series of
  Securities shall be equally and ratably entitled to the benefits of the
  Indenture.

  SECTION 2.2  Establishment of Terms of Series of Securities.
               ----------------------------------------------

        At or prior to the issuance of any Securities within a Series,
  the following shall be established (as to the Series generally, in the case
  of Subsections 2.2.1 and 2.2.2 and either as to such Securities within the
  Series or as to the Series generally in the case of Subsections 2.2.3
  through 2.2.22) by either a Board Resolution, a supplemental indenture
  hereto or an Officers' Certificate pursuant to authority granted under a
  Board Resolution:

                                       8
<PAGE>

        2.2.1  the title of the Series (which shall distinguish the
  Securities of that particular Series from the Securities of any other
  Series);

        2.2.2  any limit upon the aggregate principal amount of the
  Securities of the Series which may be authenticated and delivered under
  this Indenture (except for Securities authenticated and delivered upon
  registration of transfer of, or in exchange for, or in lieu of, other
  Securities of the Series pursuant to Section 2.7, 2.8 or 2.11);

        2.2.3  the date or dates on which the principal of the Securities
  of the Series is payable;

        2.2.4  the rate or rates and, if applicable, the method used to
  determine the rate including, but not limited to, any commodity, commodity
  index, stock exchange index or financial index, at which the Securities of
  the Series shall bear interest, if any, the date or dates from which such
  interest shall accrue, the dates on which such interest shall be payable
  and the record date for the interest payable on any interest payment date;

        2.2.5  the place or places where the principal of and interest on
  the Securities of the Series shall be payable, or the method of such
  payment, if by wire transfer, mail or other means;

        2.2.6  the period or periods within which, the price or prices at
  which and the terms and conditions upon which the Securities of the Series
  may be redeemed, in whole or in part, at the option of the Company;

        2.2.7  the obligation, if any, of the Company to redeem or
  purchase the Securities of the Series pursuant to any sinking fund or
  analogous provisions or at the option of a Holder thereof and the period or
  periods within which, the price or prices at which and the terms and
  conditions upon which Securities of the Series shall be redeemed or
  purchased, in whole or in part, pursuant to such obligation;

        2.2.8  if other than denominations of $1,000 and any integral
  multiple thereof, the denominations in which the Securities of the Series
  shall be issuable;

        2.2.9  if other than the principal amount thereof, the portion of
  the principal amount of the Securities of the Series that shall be payable
  upon declaration of acceleration of the maturity thereof pursuant to
  Section 6.2;

        2.2.10 the currency of denomination of the Securities of the
  Series, which may be Dollars, any Foreign Currency or composite currency,
  including, but not limited to, the ECU, and if such currency of
  denomination is a composite currency other than the ECU, the agency or
  organization, if any, responsible for overseeing such composite currency;

        2.2.11 the designation of the currency or currencies in which
  payment of the principal of and interest on the Securities of the Series
  will be made, and the

                                       9
<PAGE>

  designation, if any, of the currency or currencies in which payment of the
  principal of or interest on the Securities of the Series, at the election
  of a Holder thereof, may also be payable;

        2.2.12  if the payments of principal of or interest on the
  Securities of the Series are to be made in a Foreign Currency other than
  the currency in which such Securities are denominated, the manner in which
  the exchange rate with respect to such payments shall be determined;

        2.2.13  if the amount of payments of principal of or interest on
  the Securities of the Series may be determined with reference to an index
  based on a currency or currencies other than that in which the Securities
  are denominated or designated to be payable or determined by reference to a
  commodity, commodity index, stock exchange index or financial index, the
  manner in which such amounts shall be determined;

        2.2.14  provisions, if any, granting special rights to the
  Holders of Securities of the Series upon the occurrence of such events as
  may be specified and the provisions, if any, relating to the subordination
  of the Securities of the Series to other obligations of the Company;

        2.2.15  any provision for the conversion or exchange of
  Securities of the Series, either at the option of the Holder thereof or the
  Company, into or for another security or securities of the Company, the
  security or securities into or for which, the period or periods within
  which, the price or prices, including any adjustments thereto, at which and
  the other terms and conditions upon which any Securities of the Series
  shall be converted or exchanged, in whole or in part, pursuant to such
  obligation;

        2.2.16  if the Securities of such Series are to be issued upon
  the exercise of warrants, the time, manner and place for such Securities to
  be authenticated and delivered;

        2.2.17  the provisions, if any, relating to any security provided
  for the Securities of the Series;

        2.2.18  any addition to or change in the Events of Default which
  applies to any Securities of the Series and any change in the right of the
  Trustee or the requisite Holders of such Securities to declare the
  principal amount thereof due and payable pursuant to Section 6.2;

        2.2.19  any addition to or change in the covenants set forth in
  Article IV which applies to Securities of the Series;

        2.2.20  any other terms of the Securities of the Series (which
  terms shall not be inconsistent with the provisions of this Indenture,
  except as permitted by Section 9.1);

                                      10
<PAGE>

        2.2.21  the forms of the Securities of the Series in bearer or fully
     registered form (and, if in fully registered form, whether the Securities
     will be issuable as Global Securities); and

        2.2.22  any depositories, interest rate calculation agents,
     exchange rate agents or other agents with respect to Securities of such
     Series if other than those appointed herein.

        All Securities of any one Series need not be issued at the same time
and may be issued from time to time, consistent with the terms of this
Indenture, if so provided by or pursuant to the Board Resolution or Officers'
Certificate referred to above or as set forth in a supplemental indenture
hereto, and, unless otherwise provided, the authorized principal amount of any
Series may be increased to provide for issuances of additional Securities of
such Series.

SECTION 2.3  Execution and Authentication.
             ----------------------------

        One Officer shall sign the Securities for the Company by manual or
facsimile signature.  The Company's seal, which may be in facsimile form, shall
be reproduced on the Securities.

        If an Officer whose signature is on a Security no longer holds that
office at the time the Security is authenticated, the Security shall
nevertheless be valid.

        A Security shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.  The signature shall be
conclusive evidence that the Security has been authenticated under this
Indenture.

        The Trustee shall at any time, and from time to time, authenticate
Securities for original issue in the principal amount provided in the Board
Resolution or Officers' Certificate detailing the adoption of terms pursuant to
the Board Resolution, upon receipt by the Trustee of a Company Order.  If
provided for in such procedures, such Company Order may authorize authentication
and delivery pursuant to oral or electronic instructions from the Company or its
duly authorized agent or agents, which oral instructions shall be promptly
confirmed in writing.  Each Security shall be dated the date of its
authentication unless otherwise provided by Board Resolution or supplemental
indenture hereto.

        The aggregate principal amount of Securities of any Series outstanding
at any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution or Officers' Certificate or
supplemental indenture hereto delivered pursuant to Section 2.2, except as
provided in Section 2.8.

        Prior to the issuance of Securities of any Series, the Trustee shall
have received and (subject to Section 7.2) shall be fully protected in relying
on:  (a) the Board Resolution or Officers' Certificate detailing the adoption of
terms pursuant to the Board Resolution or a supplemental indenture hereto
establishing the form of the Securities of that Series or of Securities within
that Series and the terms of the Securities of that Series or of Securities
within

                                      11
<PAGE>

that Series, (b) an Officers' Certificate complying with Section 10.4, and (c)
an Opinion of Counsel complying with Section 10.4.

        The Trustee shall have the right to decline to authenticate and
deliver any Securities of such Series: (a) if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken; or (b) if the
Trustee in good faith by its board of directors or trustees, executive committee
or a trust committee of directors and/or vice-presidents shall determine that
such action would expose the Trustee to personal liability to Holders of any
then outstanding Series of Securities.

        The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities.  An authenticating agent may authenticate
Securities whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.  An
authenticating agent has the same rights as an Agent to deal with the Company or
an Affiliate.

SECTION 2.4  Registrar and Paying Agent.
             --------------------------

        The Company shall maintain, with respect to each Series of Notes, at
the place or places specified with respect to such Series pursuant to Section
2.2, an office or agency where Securities of such Series may be presented or
surrendered for payment ("Paying Agent"), where Securities of such Series may be
surrendered for registration of transfer or exchange ("Registrar") and where
notices and demands to or upon the Company in respect of the Securities of such
Series and this Indenture may be served ("Service Agent").  The Registrar shall
keep a register with respect to each Series of Securities and to their transfer
and exchange.  The Company will give prompt written notice to the Trustee of the
name and address, and any change in the name or address, of each Registrar,
Paying Agent or Service Agent.  If at any time the Company shall fail to
maintain any such required Registrar, Paying Agent or Service Agent or shall
fail to furnish the Trustee with the name and address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

        The Company may also from time to time designate one or more co-
registrars, additional paying agents or additional service agents and may from
time to time rescind such designations; provided, however, that no such
                                        --------  -------
designation or rescission shall in any manner relieve the Company of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each
place so specified pursuant to Section 2.2 for Securities of any Series for such
purposes.  The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the name or address of any
such co-registrar, additional paying agent or additional service agent.  The
term "Registrar" includes any co-registrar; the term "Paying Agent" includes any
additional paying agent; and the term "Service Agent" includes any additional
service agent.

                                      12
<PAGE>

        The Company hereby appoints the Trustee the initial Registrar, Paying
Agent and Service Agent for each Series unless another Registrar, Paying Agent
or Service Agent, as the case may be, is appointed prior to the time Securities
of that Series are first issued.

SECTION 2.5  Paying Agent to Hold Money in Trust.
             -----------------------------------

        The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment.  While any such default continues, the Trustee may require a
Paying Agent to pay all money held by it to the Trustee.  The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee.
Upon payment over to the Trustee, the Paying Agent (if other than the Company or
a Subsidiary) shall have no further liability for the money.  If the Company or
a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate
trust fund for the benefit of Securityholders of any Series of Securities all
money held by it as Paying Agent.

SECTION 2.6  Securityholder Lists.
             --------------------

        The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with TIA
(S) 312(a).  If the Trustee is not the Registrar, the Company shall furnish to
the Trustee at least ten days before each interest payment date and at such
other times as the Trustee may request in writing a list, in such form and as of
such date as the Trustee may reasonably require, of the names and addresses of
Securityholders of each Series of Securities.

SECTION 2.7  Transfer and Exchange.
             ---------------------

        Where Securities of a Series are presented to the Registrar or a co-
registrar with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series and date of maturity of other
denominations, the Registrar shall register the transfer or make the exchange if
its requirements for such transactions are met.  To permit registrations of
transfers and exchanges, the Trustee shall authenticate Securities at the
Registrar's request.  No service charge shall be made for any registration of
transfer or exchange (except as otherwise expressly permitted herein), but the
Company may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other than any such
transfer tax or similar governmental charge payable upon exchanges pursuant to
Sections 2.11 or 9.6).

        Neither the Company nor the Registrar shall be required (a) to issue,
register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected,
called

                                      13
<PAGE>

or being called for redemption as a whole or the portion being redeemed of any
such Securities selected, called or being called for redemption in part.

SECTION 2.8  Mutilated, Destroyed, Lost and Stolen Securities.
             ------------------------------------------------

        If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security  of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

        If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of notice to
the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and make available for delivery, in lieu of any such destroyed,
lost or stolen Security, a new Security of the same Series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

        In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

        Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

        Every new Security of any Series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that Series duly issued hereunder.

        The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.

SECTION 2.9  Outstanding Securities.
             ----------------------

        The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those cancelled by it, those delivered
to it for cancellation, those reductions in the interest on a Global Security
effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

                                      14
<PAGE>

        If a Security is replaced pursuant to Section 2.8, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

        If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds on the Maturity date of Securities of a Series
money sufficient to pay such Securities payable on that date, then on and after
that date such Securities of the Series cease to be outstanding and interest on
them ceases to accrue.

        A Security does not cease to be outstanding because the Company or an
Affiliate holds the Security.

        In determining whether the Holders of the requisite principal amount
of outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes shall
be the amount of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of the Maturity
thereof pursuant to Section 6.2.

SECTION 2.10  Treasury Securities.
              -------------------

        In determining whether the Holders of the required principal amount of
Securities of a Series have concurred in any direction, waiver or consent,
Securities of a Series owned by the Company or an Affiliate shall be
disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

SECTION 2.11  Temporary Securities.
              --------------------

        Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon a Company
Order.  Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities.  Without unreasonable delay, the Company shall prepare and
the Trustee upon request shall authenticate definitive Securities of the same
Series and date of maturity in exchange for temporary Securities.  Until so
exchanged, temporary securities shall have the same rights under this Indenture
as the definitive Securities.

SECTION 2.12  Cancellation.
              ------------

        The Company at any time may deliver Securities to the Trustee for
cancellation.  The Registrar and the Paying Agent shall forward to the Trustee
any Securities surrendered to them for registration of transfer, exchange or
payment.  The Trustee shall cancel all Securities surrendered for transfer,
exchange, payment, replacement or cancellation and shall destroy such cancelled
Securities (subject to the record retention requirement of the Exchange Act) and
deliver a certificate of such destruction to the Company, unless the Company
otherwise directs.  The

                                      15
<PAGE>

Company may not issue new Securities to replace Securities that it has paid or
delivered to the Trustee for cancellation.

SECTION 2.13  Defaulted Interest.
              ------------------

        If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date.  The Company
shall fix the record date and payment date.  At least 30 days before the record
date, the Company shall mail to the Trustee and to each Securityholder of the
Series a notice that states the record date, the payment date and the amount of
interest to be paid.  The Company may pay defaulted interest in any other lawful
manner.

SECTION 2.14  Global Securities.
              -----------------

        2.14.1  Terms of Securities.  A supplemental indenture to the
                -------------------
        Indenture or a Board Resolution (and, to the extent not set forth in the
     Board Resolution, an Officers' Certificate detailing the adoption of terms
     pursuant to the Board Resolution) shall establish whether the Securities of
     a Series shall be issued in whole or in part in the form of one or more
     Global Securities and the Depository for such Global Security or
     Securities.

        2.14.2  Transfer and Exchange.  Notwithstanding any provisions to the
                ---------------------
     contrary contained in Section 2.7 of the Indenture and in addition thereto,
     any Global Security shall be exchangeable pursuant to Section 2.7 of the
     Indenture for securities registered in the names of Holders other than the
     Depository for such Security or its nominee only if (i) such Depository
     notifies the Company that it is unwilling or unable to continue as
     Depository for such Global Security or if at any time such Depository
     ceases to be a clearing agency registered under the Exchange Act, and, in
     either case, the Company fails to appoint a successor Depository within 90
     days of such event, (ii) the Company executes and delivers to the Trustee
     an Officers' Certificate to the effect that such Global Security shall be
     so exchangeable or (iii) an event shall have happened and be continuing
     which is or after notice or lapse of time or both, would be, an Event of
     Default with respect to the Securities represented by such Global Security.
     Any Global Security that is exchangeable pursuant to the preceding sentence
     shall be exchangeable for Securities registered in such names as the
     Depository shall direct in writing in an aggregate principal amount equal
     to the principal amount of the Global Security with like tenor and terms.

        Except as provided in this Section 2.14.2, a Global Security may not
     be transferred except as a whole by the Depository with respect to such
     Global Security to a nominee of such Depository, by a nominee of such
     Depository to such Depository or another nominee of such Depository or by
     the Depository or any such nominee to a successor Depository or a nominee
     of such a successor Depository.

                                      16
<PAGE>

        2.14.3  Legend.  Any Global Security issued hereunder shall bear a
                ------
     legend in substantially the following form:

        "This Security is a Global Security within the meaning of the
     Indenture hereinafter referred to and is registered in the name of the
     Depository or a nominee of the Depository. This Security is exchangeable
     for Securities registered in the name of a person other than the Depository
     or its nominee only in the limited circumstances described in the
     Indenture, and may not be transferred except as a whole by the Depository
     to a nominee of the Depository, by a nominee of the Depository to the
     Depository or another nominee of the Depository or by the Depository or any
     such nominee to a successor Depository or a nominee of such a successor
     Depository."

        2.14.4  Acts of Holders.  The Depository, as a Holder, may appoint
                ---------------
     agents and otherwise authorize participants to give or take any request,
     demand, authorization, direction, notice, consent, waiver or other action
     which a Holder is entitled to give or take under the Indenture.

        2.14.5  Payments.  Notwithstanding the other provisions of this
                --------
     Indenture, unless otherwise specified as contemplated by Section 2.2,
     payment of the principal of and interest on any Global Security shall be
     made to the person specified therein.

        2.14.6  Consents, Declaration and Directions.  Except as provided in
                ------------------------------------
     Section 2.14.5, the Company, the Trustee and any Agent shall treat a person
     as the Holder of such principal amount of outstanding Securities of such
     Series represented by a Global Security as shall be specified in a written
     statement of the Depositary with respect to such Global Security, for
     purposes of obtaining any consents, declarations or directions required to
     be given by the Holders pursuant to this Indenture.

SECTION 2.15  CUSIP Numbers.
              -------------

        The Company in issuing the Securities may use "CUSIP" numbers (if
     then generally in use), and, if so, the Trustee shall use "CUSIP" numbers
     in notices of redemption as a convenience to Holders; provided that any
                                                           --------
     such notice may state that no representation is made as to the correctness
     of such numbers either as printed on the Securities or as contained in any
     notice of a redemption and that reliance may be placed only on the other
     elements of identification printed on the Securities, and any such
     redemption shall not be affected by any defect in or omission of such
     numbers.

                                  ARTICLE III

                                  REDEMPTION

SECTION 3.1  Notice to Trustees.
             ------------------

                                      17
<PAGE>

        The Company may, with respect to any Series of Securities,
     reserve the right to redeem and pay the Series of Securities or may
     covenant to redeem and pay the Series of Securities or any part thereof
     before maturity at such time and on such terms as provided for in such
     Securities. If a Series of Securities is redeemable and the Company wants
     or is obligated to redeem prior to the Stated Maturity thereof all or part
     of the Series of Securities pursuant to the terms of such Securities, it
     shall notify the Trustee of the redemption date and the principal amount of
     Series of Securities to be redeemed. The Company shall give the notice at
     least 60 days before the redemption date (or such shorter notice as may be
     acceptable to the Trustee).

SECTION 3.2  Selection of Securities to be Redeemed.
             --------------------------------------

        Unless otherwise indicated for a particular Series by Board
     Resolution or by a supplemental indenture hereto (or to the extent not set
     forth in such Board Resolution or supplemental indenture, in an Officers'
     Certificate so indicating pursuant to the Board Resolution), if less than
     all the Securities of a Series are to be redeemed, the Trustee shall select
     the Securities of the Series to be redeemed in any manner that the Trustee
     deems fair and appropriate. The Trustee shall make the selection from
     Securities of the Series outstanding not previously called for redemption.
     The Trustee may select for redemption portions of the principal of
     Securities of the Series that have denominations larger than $1,000.
     Securities of the Series and portions of them it selects shall be in
     amounts of $1,000 or whole multiples of $1,000 or, with respect to
     Securities of any Series issuable in other denominations pursuant to
     Section 2.2.8, the minimum principal denomination for each Series and
     integral multiples thereof. Provisions of this Indenture that apply to
     Securities of a Series called for redemption also apply to portions of
     Securities of that Series called for redemption.

SECTION 3.3  Notice of Redemption.
             --------------------

        Unless otherwise indicated for a particular Series by Board
     Resolution or by a supplemental indenture hereto, at least 30 days but not
     more than 60 days before a redemption date, the Company shall mail a notice
     of redemption by first-class mail to each Holder whose Securities are to be
     redeemed and if any Bearer Securities are outstanding, publish on one
     occasion a notice in an Authorized Newspaper.

        The notice shall identify the Securities of the Series to be
     redeemed and shall state:

        (a)  the redemption date;

        (b)  the redemption price;

        (c) the name and address of the Paying Agent;

        (d) that Securities of the Series called for redemption must be
     surrendered to the Paying Agent to collect the redemption price;

                                      18
<PAGE>

        (e) that interest on Securities of the Series called for redemption
     ceases to accrue on and after the redemption date; and

        (f) any other information as may be required by the terms of the
     particular Series or the Securities of a Series being redeemed.

        At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense.

SECTION 3.4  Effect of Notice of Redemption.
             ------------------------------

     Once notice of redemption is mailed or published as provided in
Section 3.3, Securities of a Series called for redemption become due and payable
on the redemption date and at the redemption price.  A notice of redemption may
not be conditional.  Upon surrender to the Paying Agent, such Securities shall
be paid at the redemption price plus accrued interest to the redemption date.

SECTION 3.5  Deposit of Redemption Price.
             ---------------------------

     On or before the redemption date, the Company shall deposit with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest on all Securities to be redeemed on that date.

SECTION 3.6  Securities Redeemed in Part.
             ---------------------------

     Upon surrender of a Security that is redeemed in part, the Trustee
shall authenticate for the Holder a new Security of the same Series and the same
maturity equal in principal amount to the unredeemed portion of the Security
surrendered.

                                  ARTICLE IV

                                   COVENANTS

SECTION 4.1  Payment of Principal and Interest.
             ---------------------------------

     The Company covenants and agrees for the benefit of each Series of
Securities that it will duly and punctually pay the principal of and interest on
the Securities of that Series in accordance with the terms of such Securities
and this Indenture.

SECTION 4.2  SEC Reports.
             -----------

     The Company shall deliver to the Trustee within 15 days after it files
them with the SEC copies of the annual reports and of the information,
documents, and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations prescribe) which the Company is required
to file with the SEC pursuant to Section 13 or

                                      19
<PAGE>

15(d) of the Exchange Act.  The Company also shall comply with the other
provisions of TIA (S) 314(a).

SECTION 4.3  Compliance Certificate.
             ----------------------

     The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year of the Company, an Officers' Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he may have knowledge).

     The Company will, so long as any of the Securities are outstanding,
deliver to the Trustee, forthwith upon becoming aware of (i) any Default, Event
of Default or default in the performance of any covenant, agreement or condition
contained in this Indenture or (ii) any event of default referred to in Section
6.1(e), an Officers' Certificate specifying such Default, Event of Default or
default.

SECTION 4.4  Stay, Extension and Usury Laws.
             ------------------------------

     The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law has been
enacted.

SECTION 4.5  Corporate Existence.
             -------------------

     Subject to Article V, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership or other existence of each Significant
Subsidiary in accordance with the respective organizational documents of each
Significant Subsidiary and the rights (charter and statutory), licenses and
franchises of the Company and its Significant Subsidiaries; provided, however,
                                                            --------  -------
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Significant
Subsidiary, if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
its Subsidiaries taken as a whole and that the loss thereof is not adverse in
any material respect to the Holders.

                                      20
<PAGE>

SECTION 4.6  Taxes.
             -----

     The Company shall, and shall cause each of its Significant
Subsidiaries to, pay prior to delinquency all taxes, assessments and
governmental levies, except as contested in good faith and by appropriate
proceedings.

SECTION 4.7  Limitation on Liens.
             -------------------

     The Company shall not and shall not permit any of its Subsidiaries to,
directly or indirectly, create, assume or otherwise cause or suffer to exist,
except in favor of the Company, any Lien of or upon any of the properties or
assets, real, personal or mixed (including stock and other securities of its
Subsidiaries), of the Company or any of its Subsidiaries whether owned at the
date of this Indenture or thereafter acquired, or of or upon any income or
profits therefrom, except for:

      (a) Liens existing on the date hereof or arising under this
  Indenture;

      (b) any extension, renewal, or replacement (or successive extensions,
  renewals or replacements) of any Lien existing on the date hereof, if
  limited to the same property subject to, and securing not more than the
  amount secured by, the Lien extended, renewed or replaced;

      (c) Liens on Current Assets (or on any promissory note received in
  satisfaction of any accounts receivable of the Company or any of its
  Subsidiaries which, immediately prior to such satisfaction, was subject to
  such a Lien) securing Indebtedness incurred to finance working capital
  requirements, provided, however, that the Indebtedness secured by such Lien
                --------  -------
  does not mature later than 36 months from the date incurred;

      (d) any Ordinary Course Lien arising, and only so long as continuing,
  in the ordinary course of the business of the Company or any of its
  Subsidiaries;

      (e) Liens upon any property hereafter acquired (including by reason
  of a merger or consolidation of another entity into the Company or a
  Subsidiary) existing thereon at the time of acquisition, provided that such
                                                           --------
  Liens (A) are not incurred in connection with, or in contemplation of, the
  acquisition of the property acquired, except as permitted under subsection
  (f) of this Section 4.7, and (B) do not extend to or cover any property or
  assets of the Company or any Subsidiary other than the property so
  acquired;

      (f) purchase money Liens upon or in any real or personal property
  (including fixtures and other equipment) acquired or held by the Company or
  any of its Subsidiaries in the ordinary course of business to secure the
  purchase price of such property or to secure Indebtedness incurred solely
  for the purpose of financing or refinancing the acquisition or improvement
  of or construction costs related to such property, provided
                                                     --------

                                       21
<PAGE>

  that no such Lien shall extend to or cover any property or assets of the
  Company or any Subsidiary other than the property being acquired or
  improved;

      (g) any interest or title of a lessor in the property subject to any
  Capitalized Lease or Sale/Leaseback Transaction that is permitted under
  Section 4.8; or

      (h) other Liens securing Indebtedness in an aggregate principal
  amount which, together with the aggregate outstanding principal amount of
  all other Indebtedness of the Company and its Subsidiaries secured by Liens
  permitted under the terms of this subsection (h), and the aggregate amount
  (before deducting expenses) of Sale/Leaseback Transactions which would
  otherwise be permitted under the provisions of Section 4.8(a), does not at
  the time such Liens are incurred exceed 10% of the Company's Consolidated
  Net Tangible Assets as shown on the most recent audited consolidated
  balance sheet of the Company and its Subsidiaries.

SECTION 4.8  Limitation on Sale/Leaseback Transactions.
             -----------------------------------------

     The Company shall not and shall not permit any of its Subsidiaries to,
directly or indirectly, enter into any Sale/Leaseback Transaction unless either:

      (a) the Company or such Subsidiary would be permitted, pursuant to
  the terms of Section 4.7(h), to incur Indebtedness in an aggregate
  principal amount equal to or exceeding the aggregate amount (before
  deducting expenses) of the Sale/Leaseback Transaction secured by a Lien on
  the property subject to such Sale/Leaseback Transaction; or

      (b) the Company or such Subsidiary within 90 days of the
  effectiveness of such Sale/Leaseback Transaction applies or unconditionally
  agrees to apply to the retirement of Indebtedness an amount equal to the
  greater of (A) the net proceeds of the Sale/Leaseback Transaction or (B)
  the fair value, in the opinion of the Board of Directors of the Company, of
  the subject property of the Sale/Leaseback Transaction at the time of such
  transaction (in either case adjusted to reflect the remaining term of the
  lease subject to such Sale/Leaseback Transaction).

                                   ARTICLE V

                                  SUCCESSORS

SECTION 5.1  When Company May Merge, Etc.
             ---------------------------

      The Company shall not consolidate or merge with or into, or sell,
  lease, convey or otherwise dispose of all or substantially all of its
  assets to, any person unless:

      (a) the Company is the surviving person or the person formed by or
  surviving any such consolidation or merger (if other than the Company), or
  to which such sale, lease, conveyance or other disposition shall have been
  made, is a corporation organized

                                       22
<PAGE>

  and existing under the laws of the United States, any state thereof or the
  District of Columbia;

      (b) the corporation formed by or surviving any such consolidation or
  merger (if other than the Company), or to which such sale, lease,
  conveyance or other disposition shall have been made, assumes by
  supplemental indenture all the obligations of the Company under the
  Securities and this Indenture; and

      (c) immediately after the transaction no Default or Event of Default
  exists.

  The Company shall deliver to the Trustee prior to the consummation of the
proposed transaction an Officers' Certificate to the foregoing effect and an
Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.

SECTION 5.2  Successor Corporation Substituted.
             ---------------------------------

  Upon any consolidation or merger, or any sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
lease, conveyance or other disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor person has been named
as the Company herein; provided, however, that the predecessor Company in the
                       --------  -------
case of a sale, lease, conveyance or other disposition shall not be released
from the obligation to pay the principal of and interest on the Securities.

                                  ARTICLE VI

                             DEFAULTS AND REMEDIES

SECTION 6.1  Events of Default.
             -----------------

     "Event of Default," wherever used herein with respect to Securities of
any Series, means any one of the following events, except the events set forth
in clause (e) below, which shall not apply for the benefit of Securities of a
Series as to which, pursuant to Section 2.2.18 or Section 2.2.20 in the
establishing Board Resolution and Officers' Certificate or supplemental
indenture hereto, it is provided that such Series shall not have the benefit of
said Event of Default (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

      (a) default in the payment of any interest on any Security of that
  Series when it becomes due and payable, and continuance of such default for
  a period of 30 days; or

                                       23
<PAGE>

      (b) default in the payment of the principal of any Security of that
  Series at its Maturity; or

      (c) default in the deposit of any sinking fund payment, when and as
  due by the terms of a Security of that Series; or

      (d) default in the performance, or breach, of any covenant or
  warranty of the Company in this Indenture (other than a covenant or
  warranty a default whose performance or whose breach is elsewhere in this
  Section specifically dealt with or which has expressly been included in
  this Indenture solely for the benefit of Series of Securities other than
  that Series), and continuance of such default or breach for a period of 60
  days after there has been given, by registered or certified mail, to the
  Company by the Trustee or to the Company and the Trustee by the Holders of
  at least 25% in principal amount of the outstanding Securities of that
  Series a written notice specifying such default or breach and requiring it
  to be remedied and stating that such notice is a "Notice of Default"
  hereunder; or

      (e) a default under any mortgage, indenture or instrument under which
  there may be issued or by which there may be secured or evidenced any
  Indebtedness for money borrowed by the Company (including a default with
  respect to Securities of any Series other than that Series) or any
  Subsidiary (or the payment of which is guaranteed by the Company or a
  Subsidiary), whether such Indebtedness or guarantee now exists or shall be
  created hereafter, if (a) either (i) such default results from the failure
  to pay any such Indebtedness at its stated final maturity or (ii) relates
  to an obligation other than the obligation to pay such Indebtedness at its
  stated final maturity and results in the holder or holders of such
  Indebtedness causing such Indebtedness to become due prior to its stated
  maturity and (b) the principal amount of such Indebtedness, together with
  the principal amount of any other such Indebtedness in default for failure
  to pay principal at stated final maturity or the maturity of which has been
  so accelerated, aggregates $25,000,000 or more at any one time outstanding;
  or

      (f) the Company or any of its Significant Subsidiaries pursuant to or
  within the meaning of any Bankruptcy Law:

        (i)  commences a voluntary case,

        (ii) consents to the entry of an order for relief against it in
      an involuntary case,

        (iii)  consents to the appointment of a Custodian of it or for
      all or substantially all of its property,

        (iv) makes a general assignment for the benefit of its creditors,
      or

        (v) generally is unable to pay its debts as the same become due;
      or

                                       24
<PAGE>

      (g) a court of competent jurisdiction enters an order or decree under
  any Bankruptcy Law that:

        (i) is for relief against the Company or any of its Significant
      Subsidiaries in an involuntary case,

        (ii) appoints a Custodian of the Company or any of its
      Significant Subsidiaries or for all or substantially all of its
      property, or

        (iii)  orders the liquidation of the Company or any of its
      Significant Subsidiaries,

  and the order or decree remains unstayed and in effect for 60 days.

      The term "Bankruptcy Law" means title 11, U.S. Code or any similar
  Federal or State law for the relief of debtors.  The term "Custodian" means
  any receiver, trustee, assignee, liquidator or similar official under any
  Bankruptcy Law.

      (h) any other Event of Default provided with respect to Securities of
  that Series.

SECTION 6.2  Acceleration of Maturity; Rescission and Annulment.
             --------------------------------------------------

        If an Event of Default with respect to Securities of any Series
  at the time outstanding occurs and is continuing, then in every such case
  the Trustee or the Holders of not less than 25% in principal amount of the
  outstanding Securities of that Series may declare the principal amount (or,
  if any Securities of that Series are Discount Securities, such portion of
  the principal amount as may be specified in the terms of such Securities)
  of all of the Securities of that Series to be due and payable immediately,
  by a notice in writing to the Company (and to the Trustee if given by
  Holders), and upon any such declaration such principal amount (or specified
  amount) shall become immediately due and payable.  If an Event of Default
  specified in Section 6.1(f) or (g) shall occur, the principal amount (or
  specified amount) of all outstanding Securities shall ipso facto become and
  be immediately due and payable without any declaration or other act on the
  part of the Trustee or any Holder.

        At any time after such a declaration of acceleration with respect
  to any Series has been made and before a judgment or decree for payment of
  the money due has been obtained by the Trustee as hereinafter in this
  Article provided, the Holders of a majority in principal amount of the
  outstanding Securities of that Series, by written notice to the Company and
  the Trustee, may rescind and annul such declaration and its consequences
  if:

      (a) the Company has paid or deposited with the Trustee a sum
  sufficient to pay

        (i) all overdue interest on all Securities of that Series,

                                       25
<PAGE>

        (ii) the principal of any Securities of that Series which have
      become due otherwise than by such declaration of acceleration and
      interest thereon at the rate or rates prescribed therefor in such
      Securities,

        (iii)  to the extent that payment of such interest is lawful,
      interest upon any overdue principal and overdue interest at the rate
      or rates prescribed therefor in such Securities, and

        (iv) all sums paid or advanced by the Trustee hereunder and the
      reasonable compensation, expenses, disbursements and advances of the
      Trustee, its agents and counsel;

and
      (b) all Events of Default with respect to Securities of that Series,
  other than the non-payment of the principal of Securities of that Series
  which have become due solely by such declaration of acceleration, have been
  cured or waived as provided in Section 6.13.

No such rescission shall affect any subsequent Default or impair any right
consequent thereon.

SECTION 6.3  Collection of Indebtedness and Suits for Enforcement by Trustee.
             ---------------------------------------------------------------

      The Company covenants that if

      (a) default is made in the payment of any interest on any Security
  when such interest becomes due and payable and such default continues for a
  period of 60 days, or

      (b) default is made in the payment of principal of any Security at
  the Maturity thereof, or

      (c) default is made in the deposit of any sinking fund payment when
and as due by the terms of a Security,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and interest and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal or any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or deemed to be payable in the manner provided by

                                       26
<PAGE>

law out of the property of the Company or any other obligor upon such
Securities, wherever situated.

     If an Event of Default with respect to any Securities of any Series
occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of Securities of such
Series by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.

SECTION 6.4  Trustee May File Proofs of Claim.
             --------------------------------

     In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,

      (a) to file and prove a claim for the whole amount of principal and
  interest owing and unpaid in respect of the Securities and to file such
  other papers or documents as may be necessary or advisable in order to have
  the claims of the Trustee (including any claim for the reasonable
  compensation, expenses, disbursements and advances of the Trustee, its
  agents and counsel) and of the Holders allowed in such judicial proceeding,
  and

      (b) to collect and receive any moneys or other property payable or
  deliverable on any such claims and to distribute the same,

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.7.

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

                                       27
<PAGE>

SECTION 6.5  Trustee May Enforce Claims Without Possession of Securities.
             -----------------------------------------------------------

     All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

SECTION 6.6  Application of Money Collected.
             ------------------------------

     Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal or interest,
upon presentation of the Securities and the notation thereon of the payment if
only partially paid and upon surrender thereof if fully paid:

        First:  To the payment of all amounts due the Trustee under
  Section 7.7; and

        Second:  To the payment of the amounts then due and unpaid for
  principal of and interest on the Securities in respect of which or for the
  benefit of which such money has been collected, ratably, without preference
  or priority of any kind, according to the amounts due and payable on such
  Securities for principal and interest, respectively; and

        Third: To the Company.

SECTION 6.7  Limitation on Suits.
             -------------------

        No Holder of any Security of any Series shall have any right to
  institute any proceeding, judicial or otherwise, with respect to this
  Indenture, or for the appointment of a receiver or trustee, or for any
  other remedy hereunder, unless

      (a) such Holder has previously given written notice to the Trustee of
  a continuing Event of Default with respect to the Securities of that
  Series;

      (b) the Holders of not less than 25% in principal amount of the
  outstanding Securities of that Series shall have made written request to
  the Trustee to institute proceedings in respect of such Event of Default in
  its own name as Trustee hereunder;

      (c) such Holder or Holders have offered to the Trustee reasonable
  indemnity against the costs, expenses and liabilities to be incurred in
  compliance with such request;

      (d) the Trustee for 60 days after its receipt of such notice, request
  and offer of indemnity has failed to institute any such proceeding; and

                                       28
<PAGE>

  (e) no direction inconsistent with such written request has been given to
  the Trustee during such 60-day period by the Holders of a majority in
  principal amount of the outstanding Securities of that Series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such
Holders.

SECTION 6.8  Unconditional Right of Holders to Receive Principal and Interest.
             ----------------------------------------------------------------

     Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest on such Security on the Stated
Maturity or Stated Maturities expressed in such Security (or, in the case of
redemption, on the redemption date) and to institute suit for the enforcement of
any such payment, and such rights shall not be impaired without the consent of
such Holder.

SECTION 6.9  Restoration of Rights and Remedies.
             ----------------------------------

     If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

SECTION 6.10  Rights and Remedies Cumulative.
              ------------------------------

     Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise.  The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

SECTION 6.11  Delay or Omission Not Waiver.
              ----------------------------

     No delay or omission of the Trustee or of any Holder of any Securities
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein.  Every

                                       29
<PAGE>

right and remedy given by this Article or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

SECTION 6.12  Control by Holders.
              ------------------

     The Holders of a majority in principal amount of the outstanding
Securities of any Series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such Series, provided that

      (a) such direction shall not be in conflict with any rule of law or
  with this Indenture,

      (b) the Trustee may take any other action deemed proper by the
  Trustee which is not inconsistent with such direction, and

      (c) subject to the provisions of Section 6.1, the Trustee shall have
  the right to decline to follow any such direction if the Trustee in good
  faith shall, by a Responsible Officer of the Trustee, determine that the
  proceeding so directed would involve the Trustee in personal liability.

SECTION 6.13  Waiver of Past Defaults.
              -----------------------

        The Holders of not less than a majority in principal amount of
the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such
Series and its consequences, except a Default (1) in the payment of the
principal of or interest on any Security of such Series or (2) in respect of a
covenant or provision hereof which under Article IX cannot be modified or
amended without the consent of the Holder of each outstanding Security of such
Series affected. Upon any such waiver, such Default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.

  SECTION 6.14  Undertaking for Costs.
                ---------------------

        All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in principal
amount of

                                       30
<PAGE>

  the outstanding Securities of any Series, or to any suit instituted by any
  Holder for the enforcement of the payment of the principal of or interest
  on any Security on or after the Stated Maturity or Stated Maturities
  expressed in such Security (or, in the case of redemption, on or after the
  redemption date).

                                  ARTICLE VII

                                    TRUSTEE

SECTION 7.1  Duties of Trustee.
             -----------------

      (a) If an Event of Default has occurred and is continuing, the
  Trustee shall exercise the rights and powers vested in it by this Indenture
  and use the same degree of care and skill in their exercise as a prudent
  man would exercise or use under the circumstances in the conduct of his own
  affairs.

      (b) Except during the continuance of an Event of Default:

        (i) The Trustee need perform only those duties that are
      specifically set forth in this Indenture and no others.

        (ii) In the absence of bad faith on its part, the Trustee may
      conclusively rely, as to the truth of the statements and the
      correctness of the opinions expressed therein, upon Officers'
      Certificates or Opinions of Counsel furnished to the Trustee and
      conforming to the requirements of this Indenture; however, in the
                                                        -------
      case of any such Officers' Certificates or Opinions of Counsel which
      by any provisions hereof are specifically required to be furnished to
      the Trustee, the Trustee shall examine such Officers' Certificates
      and Opinions of Counsel to determine whether or not they conform to
      the requirements of this Indenture.

      (c) The Trustee may not be relieved from liability for its own
  negligent action, its own negligent failure to act or its own willful
  misconduct, except that:

        (i) This paragraph does not limit the effect of paragraph (b) of
      this Section.

        (ii) The Trustee shall not be liable for any error of judgment
      made in good faith by a Responsible Officer, unless it is proved that
      the Trustee was negligent in ascertaining the pertinent facts.

        (iii)  The Trustee shall not be liable with respect to any action
      taken, suffered or omitted to be taken by it with respect to
      Securities of any Series in good faith in accordance with the
      direction of the Holders of a majority in principal amount of the
      outstanding Securities of such Series relating to the time, method
      and place of conducting any proceeding for any remedy available

                                      31

<PAGE>

      to the Trustee, or exercising any trust or power conferred upon the
      Trustee, under this Indenture with respect to the Securities of such
      Series.

      (d) Every provision of this Indenture that in any way relates to the
  Trustee is subject to paragraph (a), (b) and (c) of this Section.

      (e) The Trustee may refuse to perform any duty or exercise any right
  or power unless it receives indemnity satisfactory to it against any loss,
  liability or expense.

      (f) The Trustee shall not be liable for interest on any money
  received by it except as the Trustee may agree in writing with the Company.
  Money held in trust by the Trustee need not be segregated from other funds
  except to the extent required by law.

      (g) No provision of this Indenture shall require the Trustee to risk
  its own funds or otherwise incur any financial liability in the performance
  of any of its duties, or in the exercise of any of its rights or powers, if
  it shall have reasonable grounds for believing that repayment of such funds
  or adequate indemnity against such risk is not reasonably assured to it.

      (h) The Paying Agent, the Registrar and any authenticating agent
  shall be entitled to the protections, immunities and standard of care as
  are set forth in paragraphs (a), (b) and (c) of this Section with respect
  to the Trustee.

SECTION 7.2  Rights of Trustee.
             -----------------

      (a) The Trustee may rely on and shall be protected in acting or
  refraining from acting upon any document believed by it to be genuine and
  to have been signed or presented by the proper person.  The Trustee need
  not investigate any fact or matter stated in the document.

      (b) Before the Trustee acts or refrains from acting, it may require
  an Officers' Certificate or an Opinion of Counsel.  The Trustee shall not
  be liable for any action it takes or omits to take in good faith in
  reliance on such Officers' Certificate or Opinion of Counsel.

      (c) The Trustee may act through agents and shall not be responsible
  for the misconduct or negligence of any agent appointed with due care.  No
  Depository shall be deemed an agent of the Trustee and the Trustee shall
  not be responsible for any act or omission by any Depository.

      (d) The Trustee shall not be liable for any action it takes or omits
  to take in good faith which it believes to be authorized or within its
  rights or powers.

      (e) The Trustee may consult with counsel and the advice of such
  counsel or any Opinion of Counsel shall be full and complete authorization
  and protection in respect

                                      32

<PAGE>

  of any action taken, suffered or omitted by it hereunder in good faith and
  in reliance thereon.

      (f) The Trustee shall be under no obligation to exercise any of the
  rights or powers vested in it by this Indenture at the request or direction
  of any of the Holders of Securities unless such Holders shall have offered
  to the Trustee reasonable security or indemnity against the costs, expenses
  and liabilities which might be incurred by it in compliance with such
  request or direction.

SECTION 7.3  Individual Rights of Trustee.
             ----------------------------

        The Trustee in its individual or any other capacity may become
  the owner or pledgee of Securities and may otherwise deal with the Company
  or an Affiliate with the same rights it would have if it were not Trustee.
  Any Agent may do the same with like rights.  However, the Trustee is
  subject to Sections 7.10 and 7.11.

  SECTION 7.4  Trustee's Disclaimer.
                  --------------------

        The Trustee makes no representation as to the validity or
  adequacy of this Indenture or the Securities, it shall not be accountable
  for the Company's use of the proceeds from the Securities, and it shall not
  be responsible for any statement in the Securities other than its
  authentication.

SECTION 7.5  Notice of Defaults.
             ------------------

     If a Default or Event of Default occurs and is continuing with respect
to the Securities of any Series and if it is known to a Responsible Officer of
the Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series and, if any Bearer Securities are outstanding, publish on one
occasion in an Authorized Newspaper, notice of a Default or Event of Default
within 90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default.  Except in the case
of a Default or Event of Default in payment on any Security of any Series, the
Trustee may withhold the notice if and so long as its corporate trust committee
or a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Securityholders of that Series.

SECTION 7.6  Reports by Trustee to Holders.
             -----------------------------

     Within 60 days after May 15 in each year, the Trustee shall transmit
by mail to all Securityholders, as their names and addresses appear on the
Security Register, and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in accordance
with, and to the extent required under, TIA (S) 313.

     A copy of each report at the time of its mailing to Securityholders of
any Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed.  The Company shall promptly notify the
Trustee when Securities of any Series are listed on any stock exchange.

                                      33

<PAGE>

SECTION 7.7  Compensation and Indemnity.
             --------------------------

     The Company shall pay to the Trustee from time to time reasonable
compensation for its services.  The Trustee's compensation shall not be limited
by any law on compensation of a trustee of an express trust.  The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred by it.  Such expenses shall include the reasonable compensation and
expenses of the Trustee's agents and counsel.

     The Company shall indemnify the Trustee (including the cost of
defending itself) against any loss, liability or expense incurred by it except
as set forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent.  The Trustee shall notify the Company promptly of
any claim for which it may seek indemnity.  The Company shall defend the claim
and the Trustee shall cooperate in the defense.  The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel.  The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld.  This indemnification shall
apply to officers, directors, employees, shareholders and agents of the Trustee.

     The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee or by any officer, director, employee,
shareholder or agent of the Trustee through negligence or bad faith.

     To secure the Company's payment obligations in this Section, the
Trustee shall have a lien prior to the Securities of any Series on all money or
property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Securities of that Series.

     When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1(f) or (g) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

SECTION 7.8  Replacement of Trustee.
             ----------------------

     A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section.

     The Trustee may resign with respect to the Securities of one or more
Series by so notifying the Company.  The Holders of a majority in principal
amount of the Securities of any Series may remove the Trustee with respect to
that Series by so notifying the Trustee and the Company.  The Company may remove
the Trustee with respect to Securities of one or more Series if:

      (a) the Trustee fails to comply with Section 7.10;

                                      34

<PAGE>

      (b) the Trustee is adjudged a bankrupt or an insolvent or an order
  for relief is entered with respect to the Trustee under any Bankruptcy Law;

      (c) a Custodian or public officer takes charge of the Trustee or its
  property; or

      (d) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.  Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Securities may appoint
a successor Trustee to replace the successor Trustee appointed by the Company.

     If a successor Trustee with respect to the Securities of any one or
more Series does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of at
least 10% in principal amount of the Securities of the applicable Series may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

     If the Trustee with respect to the Securities of any one or more
Series fails to comply with Section 7.10, any Securityholder of the applicable
Series may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Immediately after that,
the retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.7, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
with respect to each Series of Securities for which it is acting as Trustee
under this Indenture.  A successor Trustee shall mail a notice of its succession
to each Securityholder of each such Series and if any Bearer Securities are
outstanding, publish such notice on one occasion in an Authorized Newspaper.
Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the
Company's obligations under Section 7.7 hereof shall continue for the benefit of
the retiring trustee with respect to expenses and liabilities incurred by it
prior to such replacement.

SECTION 7.9  Successor Trustee by Merger, etc.
             --------------------------------

     If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee.

SECTION 7.10  Eligibility; Disqualification.
              -----------------------------

                                      35

<PAGE>

     This Indenture shall always have a Trustee who satisfies the
requirements of TIA (S) 310(a)(1), (2) and (5).  The Trustee shall always have a
combined capital and surplus of at least $10,000,000 as set forth in its most
recent published annual report of condition.  The Trustee shall comply with TIA
(S) 310(b).

SECTION 7.11  Preferential Collection of Claims Against Company.
              -------------------------------------------------

     The Trustee is subject to TIA (S) 311(a), excluding any creditor
relationship listed in TIA (S) 311(b).  A Trustee who has resigned or been
removed shall be subject to TIA (S) 311(a) to the extent indicated.

                                 ARTICLE VIII

                          SATISFACTION AND DISCHARGE

SECTION 8.1  Satisfaction and Discharge of Indenture.
             ---------------------------------------

     This Indenture shall upon Company Order cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

      (a) either

        (i) all Securities theretofore authenticated and delivered (other
      than Securities that have been destroyed, lost or stolen and that
      have been replaced or paid) have been delivered to the Trustee for
      cancellation; or

        (ii) all such Securities not theretofore delivered to the Trustee
      for cancellation

           (1)  have become due and payable, or

           (2) will become due and payable at their Stated Maturity
        within one year, or

           (3) are to be called for redemption within one year under
        arrangements satisfactory to the Trustee for the giving of notice
        of redemption by the Trustee in the name, and at the expense, of
        the Company, or

           (4) are deemed paid and discharged pursuant to Section 8.3,
        as applicable;

      and the Company, in the case of (1), (2) or (3) above, has deposited
      or caused to be deposited with the Trustee as trust funds in trust in
      an amount sufficient

                                      36

<PAGE>

      for the purpose of paying and discharging the entire indebtedness on
      such Securities not theretofore delivered to the Trustee for
      cancellation, for principal and interest to the date of such deposit
      (in the case of Securities which become due and payable) or to the
      Stated Maturity or redemption date, as the case may be;

      (b) the Company has paid or caused to be paid all other sums payable
  hereunder by the Company; and

      (c) the Company has delivered to the Trustee an Officers' Certificate
  and an Opinion of Counsel, each stating that all conditions precedent
  herein provided for relating to the satisfaction and discharge of this
  Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 7.7, and, if money shall
have been deposited with the Trustee pursuant to clause (a) of this Section or
if money or obligations shall have been deposited with or received by the
Trustee pursuant to Section 8.3, the obligations of the Trustee under Section
8.2 and Section 8.5 shall survive.

SECTION 8.2  Application of Trust Funds; Indemnification.
             -------------------------------------------

      (a) Subject to the provisions of Section 8.5, all money deposited
  with the Trustee pursuant to Section 8.1, all money and U.S. Government
  Obligations or Foreign Government Securities deposited with the Trustee
  pursuant to Section 8.3 or 8.4 and all money received by the Trustee in
  respect of U.S. Government Obligations or Foreign Government Securities
  deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in
  trust and applied by it, in accordance with the provisions of the
  Securities and this Indenture, to the payment, either directly or through
  any Paying Agent (including the Company acting as its own Paying Agent) as
  the Trustee may determine, to the persons entitled thereto, of the
  principal and interest for whose payment such money has been deposited with
  or received by the Trustee or to make mandatory sinking fund payments or
  analogous payments as contemplated by Sections 8.3 or 8.4.

      (b) The Company shall pay and shall indemnify the Trustee against any
  tax, fee or other charge imposed on or assessed against U.S. Government
  Obligations or Foreign Government Securities deposited pursuant to Sections
  8.3 or 8.4 or the interest and principal received in respect of such
  obligations other than any payable by or on behalf of Holders.

      (c) The Trustee shall deliver or pay to the Company from time to time
  upon Company Request any U.S. Government Obligations or Foreign Government
  Securities or money held by it as provided in Sections 8.3 or 8.4 which, in
  the opinion of a nationally recognized firm of independent certified public
  accountants expressed in a written certification thereof delivered to the
  Trustee, are then in excess of the amount thereof which then would have
  been required to be deposited for the purpose for which such Obligations or
  Foreign Government Securities or money were deposited or received.

                                      37

<PAGE>

  This provision shall not authorize the sale by the Trustee of any U.S.
  Government Obligations or Foreign Government Securities held under this
  Indenture.

SECTION 8.3  Satisfaction, Discharge and Defeasance of Securities of any Series.
             ------------------------------------------------------------------

        Unless this Section 8.3 is otherwise specified, pursuant to
  Section 2.2.20, to be inapplicable to Securities of any Series, the Company
  shall be deemed to have paid and discharged the entire indebtedness on all
  the outstanding Securities of any such Series on the 91st day after the
  date of the deposit referred to in subparagraph (d) hereof, and the
  provisions of this Indenture, as it relates to such outstanding Securities
  of any such Series, shall no longer be in effect (and the Trustee, at the
  expense of the Company, shall, at Company Request, execute proper
  instruments acknowledging the same), except as to:

      (a) the rights of Holders of Securities of such Series to receive,
  from the trust funds described in subparagraph (d) hereof, (i) payment of
  the principal of and each installment of principal of or interest on the
  outstanding Securities of such Series on the Stated Maturity of such
  principal or installment of principal or interest and (ii) the benefit of
  any mandatory sinking fund payments applicable to the Securities of such
  Series on the day on which such payments are due and payable in accordance
  with the terms of this Indenture and the Securities of such Series;

      (b) the Company's obligations with respect to such Securities of such
  Series under Sections 2.4, 2.7 and 2.8; and

      (c) the rights, powers, trust and immunities of the Trustee hereunder
  and the duties of the Trustee under Section 8.2 and the duty of the Trustee
  to authenticate Securities of such Series issued on registration of
  transfer or exchange;

provided that, the following conditions shall have been satisfied:

      (d) the Company shall have deposited or caused to be deposited
  irrevocably with the Trustee as trust funds in trust for the purpose of
  making the following payments, specifically pledged as security for and
  dedicated solely to the benefit of the Holders of such Securities (i) in
  the case of Securities of such Series denominated in Dollars, cash in
  Dollars (or such other money or currencies as shall then be legal tender in
  the United States) and/or U.S. Government Obligations, or (ii) in the case
  of Securities of such Series denominated in a Foreign Currency (other than
  a composite currency), money and/or Foreign Government Securities in the
  same Foreign Currency, which through the payment of interest and principal
  in respect thereof, in accordance with their terms, will provide (and
  without reinvestment and assuming no tax liability will be imposed on such
  Trustee), not later than one day before the due date of any payment of
  money, an amount in cash, sufficient, in the opinion of a nationally
  recognized firm of independent public accountants expressed in a written
  certification thereof delivered to the Trustee, to pay and discharge each
  installment of principal, (including mandatory sinking fund or analogous
  payments) of and any interest on all the Securities of such Series on the
  dates such installments of interest or principal are due;

                                      38

<PAGE>

      (e) such deposit will not result in a breach or violation of, or
  constitute a default under, this Indenture or any other agreement or
  instrument to which the Company is a party or by which it is bound;

      (f) such provision would not cause any outstanding Securities of such
  Series then listed on the New York Stock Exchange or other securities
  exchange to be delisted as a result thereof;

      (g) no Default or Event of Default with respect to the Securities of
  such Series shall have occurred and be continuing on the date of such
  deposit or during the period ending on the 91st day after such date;

      (h) the Company shall have delivered to the Trustee an Officers'
  Certificate and an Opinion of Counsel to the effect that (i) the Company
  has received from, or there has been published by, the Internal Revenue
  Service a ruling, or (ii) since the date of execution of this Indenture,
  there has been a change in the applicable Federal income tax law, in either
  case to the effect that, and based thereon such opinion shall confirm that,
  the Holders of the Securities of such Series will not recognize income,
  gain or loss for Federal income tax purposes as a result of such deposits,
  defeasance and discharge and will be subject to Federal income tax on the
  same amount and in the same manner and at the same times as would have been
  the case if such deposit, defeasance and discharge had not occurred;

      (i) the Company shall have delivered to the Trustee an Officers'
  Certificate stating that the deposit was not made by the Company with the
  intent of preferring the Holders of the Securities of such Series over any
  other creditors of the company or with the intent of defeating, hindering,
  delaying or defrauding any other creditors of the Company; and

      (j) the Company shall have delivered to the Trustee an Officers'
  Certificate and an Opinion of Counsel, each stating that all conditions
  precedent provided for relating to the defeasance contemplated by this
  Section have been complied with.

SECTION 8.4  Defeasance of Certain Obligations.
             ---------------------------------

        Unless this Section 8.4 is otherwise specified pursuant to
  Section 2.2.20 to be inapplicable to Securities of any Series, on and after
  the 91st day after the date of the deposit referred to in subparagraph (a)
  hereof, the Company may omit to comply with any term, provision or
  condition set forth under Sections 4.2 (except as to corporate existence),
  4.3, 4.4, 4.5, 4.6, 4.7, 4.8, and 5.1 (and the failure to comply with any
  such provisions shall not constitute a Default or Event of Default under
  Section 6.1) and the occurrence of any event described in clause (e) of
  Section 6.1 shall not constitute a Default or Event of Default hereunder,
  with respect to the Securities of such Series, provided that the following
  conditions shall have been satisfied:

      (a) With reference to this Section 8.4, the Company has deposited or
  caused to be irrevocably deposited (except as provided in Section 8.3) with
  the Trustee as trust

                                      39

<PAGE>

  funds in trust, specifically pledged as security for, and dedicated solely
  to, the benefit of the Holders of such Securities (i) in the case of
  Securities of such Series denominated in Dollars, cash in Dollars (or such
  other money or currencies as shall then be legal tender in the United
  States) and/or U.S. Government Obligations, or (ii) in the case of
  Securities of such Series denominated in a Foreign Currency (other than a
  composite currency), money and/or Foreign Government Securities in the same
  Foreign Currency, which through the payment of interest and principal in
  respect thereof, in accordance with their terms, will provide (and without
  reinvestment and assuming no tax liability will be imposed on such
  Trustee), not later than one day before the due date of any payment of
  money, an amount in cash, sufficient, in the opinion of a nationally
  recognized firm of independent certified public accountants expressed in a
  written certification thereof delivered to the Trustee, to pay and
  discharge each installment of principal (including mandatory sinking fund
  or analogous payments) of and any interest on all the Securities of such
  Series on the dates such installments of interest or principal are due;

      (b) Such deposit will not result in a breach or violation of, or
  constitute a default under, this Indenture or any other agreement or
  instrument to which the Company is a party or by which it is bound;

      (c) No Default or Event of Default with respect to the Securities of
  such Series shall have occurred and be continuing on the date of such
  deposit or during the period ending on the 91st day after such date;

      (d) the Company shall have delivered to the Trustee an Opinion of
  Counsel confirming that Holders of the Securities of such Series will not
  recognize income, gain or loss for federal income tax purposes as a result
  of such deposit and defeasance and will be subject to federal income tax on
  the same amounts, in the same manner and at the same times as would have
  been the case if such deposit and defeasance had not occurred;

      (e) the Company shall have delivered to the Trustee an Officers'
  Certificate stating the deposit was not made by the Company with the intent
  of preferring the Holders of the Securities of such Series over any other
  creditors of the Company or with the intent of defeating, hindering,
  delaying or defrauding any other creditors of the Company; and

      (f) The Company shall have delivered to the Trustee an Officers'
  Certificate and an Opinion of Counsel, each stating that all conditions
  precedent herein provided for relating to the defeasance contemplated by
  this Section have been complied with.

SECTION 8.5  Repayment to Company.
             --------------------

        The Trustee and the Paying Agent shall pay to the Company upon
  request any money held by them for the payment of principal and interest
  that remains unclaimed for two years.  After that, Securityholders entitled
  to the money must look to the Company for payment as general creditors
  unless an applicable abandoned property law designates another person.

                                      40

<PAGE>

                                  ARTICLE IX

                            AMENDMENTS AND WAIVERS

SECTION 9.1  Without Consent of Holders.
             --------------------------

        The Company and the Trustee may amend or supplement this
  Indenture or the Securities of one or more Series without the consent of
  any Securityholder:

      (a) to cure any ambiguity, defect or inconsistency;

      (b) to comply with Article V;

      (c) to provide for uncertificated Securities in addition to or in
  place of certificated Securities; provided that such amendment or
                                    --------
  supplement does not adversely affect the rights of any Securityholders;

      (d) to make any change that does not adversely affect the rights of
  any Securityholder;

      (e) to provide for the issuance of and establish the form and terms
  and conditions of Securities of any Series as permitted by this Indenture;

      (f) to evidence and provide for the acceptance of appointment
  hereunder by a successor Trustee with respect to the Securities of one or
  more Series and to add to or change any of the provisions of this Indenture
  as shall be necessary to provide for or facilitate the administration of
  the trusts hereunder by more than one Trustee; or

      (g) to comply with requirements of the SEC in order to effect or
  maintain the qualification of this Indenture under the TIA.

SECTION 9.2  With Consent of Holders.
             -----------------------

        The Company and the Trustee may enter into a supplemental
  indenture with the written consent of the Holders of at least a majority in
  principal amount of the outstanding Securities of each Series affected by
  such supplemental indenture, for the purpose of adding any provisions to or
  changing in any manner or eliminating any of the provisions of this
  Indenture or of any supplemental indenture or of modifying in any manner
  the rights of the Securityholders of each such Series.  Except as provided
  in Section 6.13, the Holders of at least a majority in principal amount of
  the outstanding Securities of each Series affected by such waiver by notice
  to the Trustee may waive compliance by the Company with any provision of
  this Indenture or the Securities with respect to such Series.

        It shall not be necessary for the consent of the Holders of
  Securities under this Section 9.2 to approve the particular form of any
  proposed supplemental indenture or waiver, but it shall be sufficient if
  such consent approves the substance thereof.  After a supplemental
  indenture or waiver under this section becomes effective, the Company shall
  mail to the Holders

                                       41
<PAGE>

  of Securities affected thereby and, if any Bearer Securities affected
  thereby are outstanding, publish on one occasion in an Authorized
  Newspaper, a notice briefly describing the supplemental indenture or
  waiver.  Any failure by the Company to mail or publish such notice, or any
  defect therein, shall not, however, in any way impair or affect the
  validity of any such supplemental indenture or waiver.

  SECTION 9.3  Limitations.
               -----------

        Without the consent of each Securityholder affected, an amendment
  or waiver may not:

      (a) change the amount of Securities whose Holders must consent to an
  amendment, supplement or waiver;

      (b) reduce the rate of or extend the time for payment of interest
  (including default interest) on any Security;

      (c) reduce the principal or change the Stated Maturity of any
  Security or reduce the amount of, or postpone the date fixed for, the
  payment of any sinking fund or analogous obligation;

      (d) waive a Default or Event of Default in the payment of the
  principal of or interest on any Security (except a rescission of
  acceleration of the Securities of any Series by the Holders of at least a
  majority in aggregate principal amount of the then outstanding Securities
  of such Series and a waiver of the payment default that resulted from such
  acceleration);

      (e) make the Security payable in currency other than that stated in
  the Security;

      (f) make any change in Sections 6.8, 6.13, 9.3 (this sentence), 10.15
  or 10.16; or

      (g) waive a redemption payment with respect to any Security or change
  any of the provisions with respect to the redemption of any Securities.

  SECTION 9.4  Compliance with Trust Indenture Act.
               -----------------------------------

        Every amendment to this Indenture or the Securities of one or
  more Series shall be set forth in a supplemental indenture hereto that
  complies with the TIA as then in effect.

  SECTION 9.5  Revocation and Effect of Consents.
               ---------------------------------

        Until an amendment or waiver becomes effective, a consent to it
  by a Holder of a Security is a continuing consent by the Holder and every
  subsequent Holder of a Security or portion of a Security that evidences the
  same debt as the consenting Holder's Security, even if notation of the
  consent is not made on any Security.  However, any such Holder or
  subsequent

                                       42
<PAGE>

  Holder may revoke the consent as to his Security or portion of a Security
  if the Trustee receives the notice of revocation before the date the
  amendment or waiver becomes effective.

        Any amendment or waiver once effective shall bind every
  Securityholder of each Series affected by such amendment or waiver unless
  it is of the type described in any of clauses (a) through (g) of Section
  9.3.  In that case, the amendment or waiver shall bind each Holder of a
  Security who has consented to it and every subsequent Holder of a Security
  or portion of a Security that evidences the same debt as the consenting
  Holder's Security.

  SECTION 9.6  Notation on or Exchange of Securities.
               -------------------------------------

        The Trustee may place an appropriate notation about an amendment
  or waiver on any Security of any Series thereafter authenticated.  The
  Company in exchange for Securities of that Series may issue and the Trustee
  shall authenticate upon request new Securities of that Series that reflect
  the amendment or waiver.

  SECTION 9.7  Trustee Protected.
               -----------------

        In executing, or accepting the additional trusts created by, any
  supplemental indenture permitted by this Article or the modifications
  thereby of the trusts created by this Indenture, the Trustee shall be
  entitled to receive, and (subject to Section 7.1) shall be fully protected
  in relying upon, an Opinion of Counsel stating that the execution of such
  supplemental indenture is authorized or permitted by this Indenture.  The
  Trustee shall sign all supplemental indentures, except that the Trustee
  need not sign any supplemental indenture that adversely affects its rights.

                                       43
<PAGE>

                                   ARTICLE X

                                 MISCELLANEOUS

SECTION 10.1  Trust Indenture Act Controls.
              ----------------------------

        If any provision of this Indenture limits, qualifies, or
  conflicts with another provision which is required or deemed to be included
  in this Indenture by the TIA, such required or deemed provision shall
  control.

  SECTION 10.2  Notices.
                -------

        Any notice or communication by the Company or the Trustee to the
  other is duly given if in writing and delivered in person or mailed by
  first-class mail:

        if to the Company:

           Mattel, Inc.
           333 Continental Boulevard
           El Segundo, California  90245-5012
           Attention:  Ned Mansour, President, Mattel USA

        if to the Trustee:

           Chemical Trust Company of California
           50 California Street, 10th Floor
           San Francisco, California  94111
           Attention:  Paula Oswald, Assistant Vice President

        The Company or the Trustee by notice to the other may designate
  additional or different addresses for subsequent notices or communications.

        Any notice or communication to a Securityholder shall be mailed
  by first-class mail to his address shown on the register kept by the
  Registrar and, if any Bearer Securities are outstanding, published in an
  Authorized Newspaper.  Failure to mail a notice or communication to a
  Securityholder of any Series or any defect in it shall not affect its
  sufficiency with respect to other Securityholders of that or any other
  Series.

        If a notice or communication is mailed or published in the manner
  provided above, within the time prescribed, it is duly given, whether or
  not the Securityholder receives it.

        If the Company mails a notice or communication to
  Securityholders, it shall mail a copy to the Trustee and each Agent at the
  same time.

                                       44
<PAGE>

  SECTION 10.3  Communication by Holders with Other Holders.
                -------------------------------------------

        Securityholders of any Series may communicate pursuant to TIA (S)
  312(b) with other Securityholders of that Series or any other Series with
  respect to their rights under this Indenture or the Securities of that
  Series or all Series.  The Company, the Trustee, the Registrar and anyone
  else shall have the protection of TIA (S) 312(c).

  SECTION 10.4  Certificate and Opinion as to Conditions Precedent.
                --------------------------------------------------

        Upon any request or application by the Company to the Trustee to
  take any action under this Indenture, the Company shall furnish to the
  Trustee:

      (a) an Officers' Certificate stating that, in the opinion of the
  signers, all conditions precedent, if any, provided for in this Indenture
  relating to the proposed action have been complied with; and

      (b) an Opinion of Counsel stating that, in the opinion of such
  counsel, all such conditions precedent have been complied with.

  SECTION 10.5  Statements Required in Certificate or Opinion.
                ---------------------------------------------

        Each certificate or opinion with respect to compliance with a
  condition or covenant provided for in this Indenture (other than a
  certificate provided pursuant to TIA (S) 314(a)(4)) shall comply with the
  provisions of TIA (S) 314(e) and shall include:

      (a) a statement that the person making such certificate or opinion
  has read such covenant or condition;

      (b) a brief statement as to the nature and scope of the examination
  or investigation upon which the statements or opinions contained in such
  certificate or opinion are based;

      (c) a statement that, in the opinion of such person, he has made such
  examination or investigation as is necessary to enable him to express an
  informed opinion as to whether or not such covenant or condition has been
  complied with; and

      (d) a statement as to whether or not, in the opinion of such person,
  such condition or covenant has been complied with.

  SECTION 10.6  Rules by Trustee and Agents.
                ---------------------------

        The Trustee may make reasonable rules for action by or a meeting
  of Securityholders of one or more Series.  Any Agent may make reasonable
  rules and set reasonable requirements for its functions.

                                       45
<PAGE>

  SECTION 10.7  Legal Holidays.
                --------------

        Unless otherwise provided by Board Resolution or supplemental
  indenture hereto for a particular Series, a "Legal Holiday" is a Saturday,
  a Sunday, or a day on which banking institutions are not required to be
  open.  If a payment date is a Legal Holiday at a place of payment, payment
  may be made at that place on the next succeeding day that is not a Legal
  Holiday, and no interest shall accrue for the intervening period.

  SECTION 10.8  No Recourse Against Others.
                --------------------------

        A director, officer, employee or stockholder, as such, of the
  Company shall not have any liability for any obligations of the Company
  under the Securities or the Indenture or for any claim based on, in respect
  of or by reason of such obligations or their creation.  Each Securityholder
  by accepting a Security waives and releases all such liability.  The waiver
  and release are part of the consideration for the issue of the Securities.

  SECTION 10.9  Counterparts.
                ------------

        This Indenture 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.

  SECTION 10.10  Governing Laws.
                 --------------

        THE INTERNAL LAWS OF THE STATE OF CALIFORNIA SHALL GOVERN THIS
  INDENTURE AND THE SECURITIES, WITHOUT REGARD TO THE CONFLICT OF LAWS
  PROVISION THEREOF.

  SECTION 10.11  No Adverse Interpretation of Other Agreements.
                 ---------------------------------------------

        This Indenture may not be used to interpret another indenture,
  loan or debt agreement of the Company or a Subsidiary.  Any such indenture,
  loan or debt agreement may not be used to interpret this Indenture.

  SECTION 10.12  Successors.
                 ----------

      All agreements of the Company in this Indenture and the Securities
  shall bind its successor.  All agreements of the Trustee in this Indenture
  shall bind its successor.

  SECTION 10.13  Severability.
                 ------------

      In case any provision in this Indenture or in the Securities shall be
  invalid, illegal or unenforceable, the validity, legality and
  enforceability of the remaining provisions shall not in any way be affected
  or impaired thereby.

                                       46
<PAGE>

  SECTION 10.14  Table of Contents, Headings, Etc.
                 --------------------------------

      The Table of Contents, Cross-Reference Table, and headings of the
  Articles and Sections of this Indenture have been inserted for convenience
  of reference only, are not to be considered a part hereof, and shall in no
  way modify or restrict any of the terms or provisions hereof.

  SECTION 10.15  Securities in a Foreign Currency or in ECU.
                 ------------------------------------------

        Unless otherwise specified in an Officers' Certificate delivered
  pursuant to Section 2.2 of this Indenture with respect to a particular
  Series of Securities, whenever for purposes of this Indenture any action
  may be taken by the Holders of a specified percentage in aggregate
  principal amount of Securities of all Series or all Series affected by a
  particular action at the time outstanding and, at such time, there are
  outstanding Securities of any Series which are denominated in a coin or
  currency other than Dollars (including ECUs), then the principal amount of
  Securities of such Series which shall be deemed to be outstanding for the
  purpose of taking such action shall be that amount of Dollars that could be
  obtained for such amount at the Market Exchange Rate at such time.  For
  purposes of this Section 10.15, "Market Exchange Rate" shall mean the noon
  Dollar buying rate in New York City for cable transfers of that currency as
  published by the Federal Reserve Bank of New York; provided, however, in
                                                     --------  -------
  the case of ECUs, Market Exchange Rate shall mean the rate of exchange
  determined by the Commission of the European Union (or any successor
  thereto) as published in the Official Journal of the European Union (such
  publication or any successor publication, the "Journal").  If such Market
  Exchange Rate is not available for any reason with respect to such
  currency, the Trustee shall use, in its sole discretion and without
  liability on its part, such quotation of the Federal Reserve Bank of New
  York or, in the case of ECUs, the rate of exchange as published in the
  Journal, as of the most recent available date, or quotations or, in the
  case of ECUs, rates of exchange from one or more major banks in The City of
  New York or in the country of issue of the currency in question or, in the
  case of ECUs, in Luxemburg or such other quotations or, in the case of
  ECUs, rates of exchange as the Trustee, upon consultation with the Company,
  shall deem appropriate.  The provisions of this paragraph shall apply in
  determining the equivalent principal amount in respect of Securities of a
  Series denominated in currency other than Dollars in connection with any
  action taken by Holders of Securities pursuant to the terms of this
  Indenture.

        All decisions and determinations of the Trustee regarding the
  Market Exchange Rate or any alternative determination provided for in the
  preceding paragraph shall be in its sole discretion and shall, in the
  absence of manifest error, be conclusive to the extent permitted by law for
  all purposes and irrevocably binding upon the Company and all Holders.

  SECTION 10.16  Judgment Currency.
                 -----------------

        The Company agrees, to the fullest extent that it may effectively
  do so under applicable law, that (a) if for the purpose of obtaining
  judgment in any court it is necessary to convert the sum due in respect of
  the principal of or interest or other amount on the Securities of any
  Series (the "Required Currency") into a currency in which a judgment will
  be rendered (the "Judgment Currency"), the rate of exchange used shall be
  the rate at which in accordance with normal banking procedures the Trustee
  could purchase in The City of New York the

                                       47
<PAGE>

  Required Currency with the Judgment Currency on the day on which final
  unappealable judgment is entered, unless such day is not a New York Banking
  Day, then, to the extent permitted by applicable law, the rate of exchange
  used shall be the rate at which in accordance with normal banking
  procedures the Trustee could purchase in The City of New York the Required
  Currency with the Judgment Currency on the New York Banking Day preceding
  the day on which final unappealable judgment is entered and (b) its
  obligations under this Indenture to take payments in the Required Currency
  (i) shall not be discharged or satisfied by any tender, any recovery
  pursuant to any judgment (whether or not entered in accordance with
  subsection (a)), in any currency other than the Required Currency, except
  to the extent that such tender or recovery shall result in the actual
  receipt, by the payee, of the full amount of the Required Currency
  expressed to be payable in respect of such payments, (ii) shall be
  enforceable as an alternative or additional cause of action for the purpose
  of recovering in the Required Currency the amount, if any, by which such
  actual receipt shall fall short of the full amount of the Required Currency
  so expressed to be payable, and (iii) shall not be affected by judgment
  being obtained for any other sum due under this Indenture.  For purposes of
  the foregoing, "New York Banking Day" means any day except a Saturday,
  Sunday or a legal holiday in The City of New York on which banking
  institutions are authorized or required by law, regulation or executive
  order to close.

                                  ARTICLE XI

                                 SINKING FUNDS

  SECTION 11.1  Applicability of Article.
                ------------------------

        The provisions of this Article shall be applicable to any sinking
  fund for the retirement of the Securities of a Series, except as otherwise
  permitted or required by any form of Security of such Series issued
  pursuant to this Indenture.

        The minimum amount of any sinking fund payment provided for by
  the terms of the Securities of any Series is herein referred to as a
  "mandatory sinking fund payment" and any other amount provided for by the
  terms of Securities of such Series is herein referred to as an "optional
  sinking fund payment."  If provided for by the terms of Securities of any
  Series, the cash amount of any sinking fund payment may be subject to
  reduction as provided in Section 11.2.  Each sinking fund payment shall be
  applied to the redemption of Securities of any Series as provided for by
  the terms of the Securities of such Series.

  SECTION 11.2  Satisfaction of Sinking Fund Payments with Securities.
                -----------------------------------------------------

        The Company may, in satisfaction of all or any part of any
  sinking fund payment with respect to the Securities of such Series to be
  made pursuant to the terms of such Securities (1) deliver outstanding
  Securities of such Series to which such sinking fund payment is applicable
  (other than any of such Securities previously called for mandatory sinking
  fund redemption) and (2) apply as credit Securities of such Series to which
  such sinking fund payment is applicable and which have been redeemed either
  at the election of the Company pursuant to the terms of such Series of
  Securities (except pursuant to any mandatory sinking fund) or through the
  application of permitted optional sinking fund payments or other optional

                                       48
<PAGE>

  redemptions pursuant to the terms of such Securities, provided that such
  Securities have not been previously so credited.  Such Securities shall be
  received by the Trustee, together with an Officers' Certificate with
  respect thereto, not later than 15 days prior to the date on which the
  Trustee begins the process of selecting Securities for redemption, and
  shall be credited for such purpose by the Trustee at the price specified in
  such Securities for redemption through operation of the sinking fund and
  the amount of such sinking fund payment shall be reduced accordingly.  If
  as a result of the delivery or credit of Securities in lieu of cash
  payments pursuant to this Section 11.2, the principal amount of Securities
  of such Series to be redeemed in order to exhaust the aforesaid cash
  payment shall be less than $100,000, the Trustee need not call Securities
  of such Series for redemption, except upon receipt of a Company Order that
  such action be taken, and such cash payment shall be held by the Trustee or
  a Paying Agent and applied to the next succeeding sinking fund payment,

  provided, however, that the Trustee or such Paying Agent shall from time to
  --------- --------
  time upon receipt of a Company Order pay over and deliver to the Company
  any cash payment so being held by the Trustee or such Paying Agent upon
  delivery by the Company to the Trustee of Securities of that Series
  purchased by the Company having an unpaid principal amount equal to the
  cash payment required to be released to the Company.

  SECTION 11.3  Redemption of Securities for Sinking Fund.
                -----------------------------------------

        Not less than 60 days (unless otherwise indicated in the Board
  Resolution or Officers' Certificate or supplemental indenture in respect of
  a particular Series of Securities) prior to each sinking fund payment date
  for any Series of Securities, the Company will deliver to the Trustee an
  Officers' Certificate specifying the amount of the next ensuing mandatory
  sinking fund payment for that Series pursuant to the terms of that Series,
  the portion thereof, if any, which is to be satisfied by payment of cash
  and the portion thereof, if any, which is to be satisfied by delivering and
  crediting of Securities of that Series pursuant to Section 11.2, and the
  optional amount, if any, to be added in cash to the next ensuing mandatory
  sinking fund payment, and the Company shall thereupon be obligated to pay
  the amount therein specified.  Not less than 45 days (unless otherwise
  indicated in the Board Resolution or Officers' Certificate or supplemental
  indenture in respect of a particular Series of Securities) before each such
  sinking fund payment date the Trustee shall select the Securities to be
  redeemed upon such sinking fund payment date in the manner specified in
  Section 3.2 and cause notice of the redemption thereof to be given in the
  name of and at the expense of the Company in the manner provided in Section
  3.3.  Such notice having been duly given, the redemption of such Securities
  shall be made upon the terms and in the manner stated in Sections 3.4, 3.5
  and 3.6.

                                       49
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Indenture
  to be duly executed and their respective corporate seals to be hereunto
  affixed and attested, all as of the day and year first above written.

                                     MATTEL, INC.

(SEAL)                               By: /s/ WILLIAM STAVRO
                                        ---------------------------
                                        William Stavro
Attest:                                 Senior Vice President and Treasurer

                                     CHEMICAL TRUST COMPANY OF
                                     CALIFORNIA

                                     By: /s/ HANS H. HELLEY
                                        ---------------------------
                                        Hans H. Helley
                                        Assistant Vice President

                                       50<PAGE>

                                                                    EXHIBIT 10.0

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

                      Amended and Restated Credit Agreement

                           Dated as of March 20, 2002

                                      among

                                  MATTEL, INC.,
                                   as Borrower

                              BANK OF AMERICA, N.A.,
                             as Administrative Agent

                                       and

                     The Financial Institutions Party Hereto

                         BANC OF AMERICA SECURITIES LLC,
                   as Sole Lead Arranger and Sole Book Manager

                  CITICORP USA, INC., and FLEET NATIONAL BANK,
                              as Syndication Agents

                        SOCIETE GENERALE and BNP PARIBAS,
                             as Documentation Agents

===============================================================================
<PAGE>

                              TABLE OF CONTENTS

Section                                                                     Page

SECTION 1. DEFINITIONS........................................................1
     1.01     Certain Defined Terms...........................................1
     1.02     Other Definitional Provisions..................................14

SECTION 2. THE COMMITMENTS...................................................14
     2.01     The Aggregate Facilities Commitment............................14
     2.02     Loan Accounts and Notes........................................15
     2.03     Borrowing Procedure............................................15
     2.04     Conversion and Continuation Elections..........................16
     2.05     Reduction or Termination of Aggregate Facilities Commitment....17
     2.06     Voluntary Prepayments..........................................17
     2.07     Repayment of Loans.............................................18
     2.08     Interest on the Loans..........................................18
     2.09     Fees...........................................................18
     2.10     Calculation of Interest and Fees...............................19
     2.11     Payments by the Company........................................19
     2.12     Payments by the Lenders to the Administrative Agent............20
     2.13     Sharing of Payments, Etc.......................................21

SECTION 3. PAYMENTS IN GENERAL...............................................21
     3.01     Taxes..........................................................21
     3.02     Capital Adequacy...............................................23
     3.03     Illegality.....................................................23
     3.04     Increased Costs and Reduction of Return........................24
     3.05     Funding Losses.................................................24
     3.06     Inability to Determine Rates...................................25
     3.07     Survival.......................................................25

SECTION 4. CONDITIONS PRECEDENT..............................................25
     4.01     Conditions to Effectiveness....................................25
     4.02     Conditions to All Loans........................................27

SECTION 5. REPRESENTATIONS AND WARRANTIES....................................27
     5.01     Organization and Powers........................................27
     5.02     Good Standing..................................................28
     5.03     Material Subsidiaries..........................................28
     5.04     Authorization of Borrowing.....................................28
     5.05     No Conflict....................................................28
     5.06     Governmental Consents..........................................28
     5.07     Binding Obligation.............................................28
     5.08     Financial Condition............................................29
     5.09     Changes, Etc...................................................29
     5.10     Title to Properties............................................29
     5.11     Litigation; Adverse Facts......................................29
     5.12     Payment of Taxes...............................................30
     5.13     Agreements.....................................................30
     5.14     Performance....................................................30
     5.15     Governmental Regulation........................................30

                                    - i -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

     5.16     Employee Benefit Plans.........................................30
     5.17     Environmental Matters..........................................30
     5.18     Disclosure.....................................................30
     5.19     Subordination Agreements.......................................31

SECTION 6. AFFIRMATIVE COVENANTS.............................................31
     6.01     Financial Statements...........................................31
     6.02     Certificates; Other Information................................32
     6.03     Notices........................................................33
     6.04     Corporate Existence, etc.......................................34
     6.05     Payment of Taxes and Claims; Tax Consolidation.................34
     6.06     Maintenance of Properties; Insurance...........................34
     6.07     Inspection of Property and Books and Records...................35
     6.08     Use of Proceeds of Loans.......................................35
     6.09     Environmental Laws.............................................35
     6.10     Subordination Agreements.......................................35
     6.11     Compliance with Laws...........................................35

SECTION 7. NEGATIVE COVENANTS................................................35
     7.01     Indebtedness...................................................36
     7.02     Liens..........................................................36
     7.03     Restriction on Fundamental Changes.............................36
     7.04     Sale or Discount of Receivables................................37
     7.05     Consolidated Funded Indebtedness to Total Capitalization.......37
     7.06     Interest Coverage Ratio........................................37
     7.07     ERISA..........................................................38
     7.08     Margin Regulations.............................................38
     7.09     Independence of Covenants......................................38

SECTION 8. EVENTS OF DEFAULT.................................................38
     8.01     Events of Default..............................................38
     8.02     Remedies.......................................................41
     8.03     Rights Not Exclusive...........................................41

SECTION 9. THE ADMINISTRATIVE AGENT..........................................41
     9.01     Appointment and Authorization..................................41
     9.02     Delegation of Duties...........................................41
     9.03     Liability of Administrative Agent..............................41
     9.04     Reliance by Administrative Agent...............................42
     9.05     Notice of Default..............................................42
     9.06     Credit Decision................................................43
     9.07     Indemnification................................................43
     9.08     Administrative Agent in Individual Capacity....................44
     9.09     Successor Administrative Agent.................................44
     9.10     Other Agents; Lead Managers....................................44

SECTION 10. MISCELLANEOUS................................................ ...45
     10.01    Amendments and Waivers.........................................45
     10.02    Notices and Other Communications; Facsimile Copies.............46
     10.03    Failure or Indulgence Not Waiver; Remedies Cumulative..........47
     10.04    Fees and Expenses..............................................47
     10.05    Indemnity......................................................47
     10.06    Set Off........................................................48

                                    - ii -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

     10.07    Survival of Warranties and of Certain Agreements...............48
     10.08    Successors and Assigns.........................................49
     10.09    Severability...................................................51
     10.10    Obligations Several............................................52
     10.11    Certain Changes................................................52
     10.12    Headings.......................................................52
     10.13    Counterparts...................................................52
     10.14    Integration....................................................52
     10.15    Tax Forms......................................................52
     10.16    Applicable Law.................................................53
     10.17    Waiver of Right to Trial by Jury...............................54
     10.18    Amendment and Restatement......................................54

SIGNATURE PAGES                                                             S-1

     EXHIBITS

                 Form of:

     A           Note
     B           Notice of Borrowing
     C           Notice of Conversion/Continuation
     D           Officers' Certificate
     E           Opinion of Assistant General Counsel or Senior Counsel of
                 Company
     F-1         Fisher-Price Continuing Guaranty
     F-2         Mattel Sales Continuing Guaranty
     G-1         Fisher-Price Subordination Agreements
     G-2         Mattel Sales Subordination Agreements
     H           Assignment and Assumption

     SCHEDULES

     1.01        Commitments and Pro Rata Shares
     5.03        Material Subsidiaries of Company
     5.11        Material Litigation
     7.02        Certain Liens
     10.02       Address and Notice Information

                                    - iii -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                                  MATTEL, INC.
                      AMENDED AND RESTATED CREDIT AGREEMENT

         This AMENDED AND RESTATED CREDIT AGREEMENT (this "Agreement") is dated
                                                           ---------
as of March 20, 2002 and is entered into by and among MATTEL, INC., a Delaware
corporation (the "Company"), THE FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE
                  -------
PAGES HEREOF (individually referred to herein as a "Lender" and collectively as
                                                    ------
the "Lenders"), BANK OF AMERICA, N.A., as administrative agent for the Lenders
(in such capacity, the "Administrative Agent"), BANC OF AMERICA SECURITIES LLC,
                        --------------------
as sole lead arranger and sole book manager (in such capacity, the "Arranger"),
                                                                    --------
CITICORP USA, INC., and FLEET NATIONAL BANK, as syndication agents (in such
capacity, the "Syndication Agents") and SOCIETE GENERALE, and BNP PARIBAS as
               ------------------
documentation agents (in such capacity, the "Documentation Agents").
                                             --------------------

                             PRELIMINARY STATEMENTS

         A.       The Company, certain of the Lenders and the Administrative
Agent are parties to that certain Credit Agreement dated as of March 10, 1995
(as amended) as amended and restated by a First Amended and Restated Credit
Agreement dated as of March 13, 1997 (as amended) as further amended and
restated by a Second Amended and Restated Credit Agreement dated as of March
11, 1998 (as amended) (as so amended and restated, the "Existing Multi-Year
                                                        -------------------
Credit Agreement") pursuant to which the Lenders agreed to make certain credit
----------------
facilities available to the Company in accordance with the terms of the
Existing Multi-Year Credit Agreement.

         B.       The Company, the Lenders and the Administrative Agent desire
to further amend and restate the Existing Multi-Year Credit Agreement in its
entirety on the terms and conditions set forth herein.

         In consideration of the premises and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Company, the Lenders and the Administrative Agent agree to further amend and
restate the Existing Multi-Year Credit Agreement in its entirety as follows:

                                    SECTION 1.
                                   DEFINITIONS

         1.01     Certain Defined Terms.  The following terms used in this
Agreement shall have the following meanings:

         "Administrative Agent" has the meaning assigned to that term in the
          --------------------
introduction to this Agreement.

         "Administrative Agent's Office" means the Administrative Agent's
          -----------------------------
address and, as appropriate, account identified as such on Schedule 10.02, or
                                                           --------------
such other address or account as the Administrative Agent may from time to time
notify to the Company and the Lenders.

                                    - 1 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Administrative Agent-Related Persons" means Administrative Agent and
          ------------------------------------
any successor administrative agent arising under Section 9.09, together with
their respective Affiliates (including, in the case of Bank of America, the
Arranger), and the officers, directors, employees, agents and attorneys-in-fact
of such Persons and Affiliates.

         "Affiliate", as applied to any Person, means any other Person directly
          ---------
or indirectly controlling, controlled by or under common control with, that
Person. For the purposes of this definition, "control" (including with
correlative meanings, the terms "controlling", "controlled by" and "under common
control with"), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of that Person, whether through the ownership of voting securities or
by contract or otherwise.

         "Aggregate Facilities Commitment" means the combined Commitments of all
          -------------------------------
the Lenders and is the amount set forth opposite "Total" under "Aggregate
Facilities Commitments" on Schedule 1.01, as such amount may be reduced from
                           -------------
time to time in accordance with this Agreement.

         "Agreement" means this Credit Agreement, as it may hereafter be
          ---------
amended, supplemented, restated or otherwise modified from time to time.

                                    - 2 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Applicable Amount" means the commitment fee, utilization fee or the
          -----------------
margin applicable to Loans (expressed in basis points per annum) set forth in
the chart below opposite the second highest rating issued by S&P, Moody's or
Fitch on the Company's senior unsecured long-term debt:

<TABLE>
<CAPTION>

                                                                                       Utilization Fee
                                                                           ---------------------------------------
Senior Unsecured Long-Term Debt        Eurodollar Rate                     When Loans exceed   When Loans exceed
       Ratings                              Loans         Commitment Fee       33%/1/               66%/1/
------------------------------------------------------------------------------------------------------------------
<S>                                         <C>                <C>              <C>                 <C>
A     or higher by S&P                      30.0               10.0             12.5                25.0
A2    or higher by Moody's
A     or higher by Fitch
------------------------------------------------------------------------------------------------------------------
A-       by S&P
A3       by Moody's                         50.0               12.5             12.5                25.0
A-       by Fitch
------------------------------------------------------------------------------------------------------------------
BBB+     by S&P                             62.5               15.0             12.5                25.0
Baa1     by Moody's
BBB+     by Fitch
------------------------------------------------------------------------------------------------------------------
BBB      by S&P
Baa2     by Moody's                         75.0               17.5             12.5                25.0
BBB      by Fitch
------------------------------------------------------------------------------------------------------------------
BBB-     by S&P
Baa3     by Moody's                        112.5               22.5             12.5                25.0
BBB-     by Fitch
------------------------------------------------------------------------------------------------------------------
None of above criteria satisfied           125.0               30.0             12.5                25.0
------------------------------------------------------------------------------------------------------------------
</TABLE>

         Any change in the commitment fee, utilization fee or the margin
applicable to Loans shall become effective upon any public announcement of any
change in the above ratings that requires such a change according to the above
chart.

         "Arranger" means Banc of America Securities LLC, in its capacity as
          --------
sole lead arranger and sole book manager.

         "Availability Period" means the period from the Effective Date to but
          -------------------
excluding the Termination Date.

         "Assignment and Assumption" means an Assignment and Assumption
          -------------------------
substantially in the form of Exhibit H.
                             ---------

         -------------------------

         /1/The specified utilization fee applicable when the aggregate
principal amount of outstanding Loans exceeds the indicated percentage of an
amount equal to (i) the Aggregate Facilities Commitment less (ii) the
                                                        ----
aggregate outstanding amount of the Purchasers' Investments.

                                    - 3 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Bank of America" means Bank of America, N.A.
          ---------------

         "Base Rate" means for any day a fluctuating rate per annum equal to the
          ---------
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of
America as its "prime rate." Such rate is a rate set by Bank of America based
upon various factors including Bank of America's costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public announcement of such
change.

         "Base Rate Loans" means Loans made by the Lenders bearing interest at
          ---------------
rates determined by reference to the Base Rate.

         "Business Day" means any day other than a Saturday, Sunday or other day
          ------------
on which commercial banks are authorized to close under the laws of, or are in
fact closed in, California or the state where the Administrative Agent's Office
is located (which, as of the date hereof, is California) and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the London interbank
eurodollar market.

         "Capital Assets" means, as at any date of determination, those assets
          --------------
of a Person that would, in conformity with GAAP, be classified as property,
plant or equipment on the balance sheet of that Person.

         "Capital Lease" as applied to any Person, means any lease of any
          -------------
property (whether real, personal or mixed) by that Person as lessee which would,
in conformity with GAAP, be required to be accounted for as a capital lease on
the balance sheet of that Person other than, in the case of the Company or any
of its Subsidiaries, any such lease under which the Company or any of its
Subsidiaries is the lessor.

         "Change of Control" means, with respect to any Person, an event or
          -----------------
series of events by which:

                  (a)      any "person" or "group" (as such terms are used in
         Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
         excluding any employee benefit plan of such person or its subsidiaries,
         and any person or entity acting in its capacity as trustee, agent or
         other fiduciary or administrator of any such plan) becomes the
         "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the
         Securities Exchange Act of 1934, except that a person or group shall be
         deemed to have "beneficial ownership" of all securities that such
         person or group has the right to acquire (such right, an "option
                                                                   ------
         right"), whether such right is exercisable immediately or only after
         -----
         the passage of time), directly or indirectly, of 33% or more of the
         equity securities of such Person entitled to vote for members of the
         board of directors or equivalent governing body of such Person on a
         partially-diluted basis (i.e., taking into account all such securities
                                  ---
         that such person or group has the right to acquire pursuant to any
         option right); or

                                    - 4 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                  (b)      during any period of 12 consecutive months, a
         majority of the members of the board of directors or other
         equivalent governing body of such Person cease to be
         composed of individuals (i) who were members of that board
         or equivalent governing body on the first day of such
         period, (ii) whose election or nomination to that board or
         equivalent governing body was approved by individuals
         referred to in clause (i) above constituting at the time of
         such election or nomination at least a majority of that
         board or equivalent governing body or (iii) whose election
         or nomination to that board or other equivalent governing
         body was approved by individuals referred to in clauses (i)
         and (ii) above constituting at the time of such election or
         nomination at least a majority of that board or equivalent
         governing body.

         "Combined Purchasers' Investments" means an amount equal to the sum of
          --------------------------------
(a) the Purchasers' Investments under the Receivables Purchase Agreement plus
                                                                         ----
(b) the analogous amount under Other Permitted Accounts Receivable Financing
Facilities relating to the sales of accounts receivable of Domestic Subsidiaries
(without duplication for accounts receivable sold to a Subsidiary of the Company
and then sold to a third party purchaser).

         "Commitment" means, as to each Lender, (a) its obligation to make Loans
          ----------
to the Company pursuant to Section 2.01 and (b) its Purchaser Commitment under
                           ------------
the Receivables Purchase Agreement, in an aggregate amount equal to the amount
set forth opposite such Lender's name on Schedule 1.01, as such amount may be
                                         -------------
reduced from time to time in accordance with this Agreement.

         "Company" means Mattel, Inc., a Delaware corporation.
          -------

         "Company Party" means the Company, Mattel Sales, Fisher-Price and
          -------------
Mattel Factoring, Inc.

         "Consolidated Funded Indebtedness" means, at any date of determination,
          --------------------------------
for the Company and its Subsidiaries on a consolidated basis, the sum of (a) all
obligations and liabilities, whether current or long-term, for borrowed money,
(b) that portion of obligations with respect to Capital Leases which is
capitalized on the consolidated balance sheet of the Company and its
Subsidiaries, and (c) all guaranties of unconsolidated funded obligations for
borrowed money, all determined in conformity with GAAP.

         "Consolidated Net Income" for any period, means the net income (or
          -----------------------
loss) of the Company and its Subsidiaries on a consolidated basis for such
period taken as a single accounting period determined in conformity with GAAP.

         "Contingent Obligation", as applied to any Person, means, without
          ---------------------
duplication, any direct or indirect liability, contingent or otherwise, of that
Person (i) with respect to any indebtedness, lease, dividend or other obligation
of another if the primary purpose or intent thereof by the Person incurring the
Contingent Obligation is to provide assurance to the obligee of such obligation
of another that such obligation of another will be paid or discharged, or that
any agreements relating thereto will be complied with, or that the holders of
such obligation will be protected (in whole or in part) against loss in respect
thereof or (ii) with respect to any letter of credit issued for the account of
that Person or as to which that Person is otherwise liable for

                                    - 5 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

reimbursement of drawings. Contingent Obligations shall include, without
limitation, (a) the direct or indirect guaranty, endorsement (otherwise than
for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the
obligation of another and (b) any liability of such Person for the obligations
of another through any agreement (contingent or otherwise) (x) to purchase,
repurchase or otherwise acquire such obligation or any security therefor, or to
provide funds for the payment or discharge of such obligation (whether in the
form of loans, advances, stock purchases, capital contributions or otherwise)
or (y) to maintain the solvency or any balance sheet item, level of income or
financial condition of another, if in the case of any agreement described under
subclauses (x) or (y) of this sentence the primary purpose or intent thereof is
as described in the preceding sentence. The amount of any Contingent Obligation
shall be equal to the amount of the obligation so guaranteed or otherwise
supported. The amount of any Contingent Obligation denominated in a currency
other than Dollars shall be equal to the Dollar Equivalent of such Contingent
Obligation.

         "Contractual Obligation", as applied to any Person, means any provision
          ----------------------
of any security issued by that Person or of any material written indenture,
mortgage, deed of trust, contract, undertaking, agreement or other instrument to
which that Person is a party or by which it or any of its properties is bound or
to which it or any of its properties is subject.

         "Default" means any event or circumstance which, with the giving of
          -------
notice, the lapse of time, or both, would (if not cured or otherwise remedied
during such time) constitute an Event of Default.

         "Default Rate" means an interest rate equal to the Base Rate plus 2%
          ------------                                                ----
per annum; provided, however, that with respect to the principal of a Eurodollar
           --------  -------
Rate Loan prior to the end of the Interest Period therefor, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable
Amount) otherwise applicable to such Loan plus 2% per annum, in each case to the
fullest extent permitted by applicable laws.

         "Defaulting Lender" means any Lender that (a) has failed to fund any
          -----------------
portion of its Loans hereunder or Purchasers' Investment under the Receivables
Purchase Agreement required to be funded by it within one Business Day of the
date required to be funded by it, (b) has otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid by
it hereunder or under the Receivables Purchase Agreement within one Business Day
of the date when due, unless the subject of a good faith dispute, or (c) has
been deemed insolvent by the Federal Deposit Insurance Company, the Comptroller
of the Currency or the Federal Reserve Board or become the subject of a
bankruptcy or insolvency proceeding.

         "Dollars" means lawful money of the United States of America.
          -------

         "Domestic Subsidiary" means a Subsidiary of the Company that is
          -------------------
incorporated in a jurisdiction of the United States of America.

         "Effective Date" means the date on or after March 20, 2002 on which all
          --------------
the conditions in Section 4.01 are satisfied or waived.
                  ------------

                                    - 6 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Eligible Assignee" has the meaning specified in Section 10.08(f).
          -----------------                               ----------------

         "Environmental Claims" means all claims, however asserted, by any
          --------------------
Governmental Person or other Person alleging potential liability or
responsibility for violation of any Environmental Law, or for release or injury
to the environment.

         "Environmental Laws" means all federal, state or local laws, statutes,
          ------------------
common law duties, rules, regulations, ordinances and codes, together with all
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Person, in each case relating
to environmental, health, safety and land use matters.

         "ERISA" means, at any time, the Employee Retirement Income Security Act
          -----
of 1974, as amended from time to time and any successor statute, and the rules
and regulations promulgated thereunder.

         "ERISA Affiliate", as applied to any Person, means any trade or
          ---------------
business (whether or not incorporated) which is a member of a group of which
that Person is a member and which is under common control within the meaning of
Section 414(b) and 414(c) of the Internal Revenue Code.

         "Eurodollar Rate Loans" means Loans bearing interest at rates
          ---------------------
determined by reference to the Eurodollar Rate as provided in Section 2.08(a).
                                                              ---------------

         "Eurodollar Rate" means for any Interest Period with respect to any
          ---------------
Eurodollar Rate Loan, a rate per annum determined by Administrative Agent
pursuant to the following formula:

                                      Eurodollar Base Rate
         Eurodollar Rate  = --------------------------------------------
                               1.00 - Eurodollar Reserve Percentage
                  Where,

                  "Eurodollar Base Rate" means, for such Interest Period:
                   --------------------

                  (a)      the rate per annum equal to the rate determined by
         Administrative Agent to be the offered rate that appears on the page of
         the Telerate screen that displays an average British Bankers
         Association Interest Settlement Rate for deposits in Dollars (for
         delivery on the first day of such Interest Period) with a term
         equivalent to such Interest Period, determined as of approximately
         11:00 a.m. (London time) two Business Days prior to the first day of
         such Interest Period, or

                  (b)      in the event the rate referenced in the preceding
         subsection (a) does not appear on such page or service or such page or
         service shall cease to be available, the rate per annum equal to the
         rate determined by Administrative Agent to be the offered rate on such
         other page or other service that displays an average British Bankers
         Association Interest Settlement Rate for deposits in Dollars (for
         delivery on the first day of such Interest Period) with a term
         equivalent to such Interest Period, determined as of approximately
         11:00 a.m. (London time) two Business Days prior to the first day of
         such Interest Period, or

                                    - 7 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                  (c)      in the event the rates referenced in the preceding
         subsections (a) and (b) are not available, the rate per annum
         determined by Administrative Agent as the rate of interest (rounded
         upward to the next 1/100th of 1%) at which deposits in Dollars for
         delivery on the first day of such Interest Period in same day funds in
         the approximate amount of the Eurodollar Rate Loan being made,
         continued or converted by Administrative Agent (or its Affiliate) in
         its capacity as a Lender and with a term equivalent to such Interest
         Period would be offered by Bank of America's London Branch to major
         banks in the offshore Dollar market at their request at approximately
         11:00 a.m. (London time) two Business Days prior to the first day of
         such Interest Period.

                  "Eurodollar Reserve Percentage" means, for any day during any
                   -----------------------------
         Interest Period, the reserve percentage (expressed as a decimal,
         rounded upward to the next 1/100th of 1%) in effect on such day,
         whether or not applicable to any Lender, under regulations issued from
         time to time by the Board of Governors of the Federal Reserve System
         for determining the maximum reserve requirement (including any
         emergency, supplemental or other marginal reserve requirement) with
         respect to Eurocurrency funding (currently referred to as "Eurocurrency
         liabilities"). The Eurodollar Rate for each outstanding Eurodollar Rate
         Loan shall be adjusted automatically as of the effective date of any
         change in the Eurodollar Reserve Percentage.

         The determination of the Eurodollar Reserve Percentage and the
Eurodollar Base Rate by Administrative Agent shall be conclusive in the absence
of manifest error.

         "Event of Default" means any of the events set forth in Section 8.01.
          ----------------                                       ------------

         "Exchange Act" means, at any time, the Securities Exchange Act of 1934,
          ------------
as amended from time to time, and any successor statute, and the rules and
regulations promulgated thereunder.

         "Existing Multi-Year Credit Agreement" has the meaning set forth in
          ------------------------------------
Recital A hereto.

         "Existing 364-Day Credit Agreement" means that certain Credit Agreement
          ---------------------------------
(364-Day Facility) dated as of March 29, 2001, among the Company, the banks
party thereto and Bank of America, N.A. as agent.

         "Federal Funds Rate" means, for any day, the rate per annum equal to
          ------------------
the weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank on the Business Day next
succeeding such day; provided that (a) if such day is not a Business Day, the
                     --------
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day,
and (b) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate charged to Bank of
America on such day on such transactions as determined by the Administrative
Agent.

         "Federal Reserve Board" means the Board of Governors of the Federal
          ---------------------
Reserve System or any successor thereof.

                                    - 8 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Fisher-Price" means Fisher-Price, Inc., a Delaware corporation.
          ------------

         "Fisher-Price Guaranty" means the Amended and Restated Continuing
          ---------------------
Guaranty signed by Fisher-Price substantially in the form of Exhibit F-1 hereto,
                                                             -----------
as amended, supplemented, restated or otherwise modified from time to time.

         "Fisher-Price Subordination Agreement" means the Amended and Restated
          ------------------------------------
Fisher-Price Subordination Agreement substantially in the form of Exhibit G-1
                                                                  -----------
attached hereto signed by the Company and certain Affiliates of the Company with
respect to which Fisher-Price has material outstanding obligations, as it may
hereafter be amended, supplemented, restated or otherwise modified from time to
time.

         "Fitch" means Fitch ICBA or any successor thereto.
          -----

         "Foreign Lender" has the meaning specified in Section 10.15(a).
          --------------                               ----------------

         "Funding Date" means the Business Day of the funding of a Loan.
          ------------

         "GAAP" means generally accepted accounting principles set forth in the
          ----
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination.

         "Governmental Person" means the government of the United States or any
          -------------------
foreign government or the government of any state or locality therein, any
political subdivision or any governmental, quasi-governmental, judicial, public
or statutory instrumentality, authority, body or entity, or other regulatory
bureau, authority, body or entity of the United States, any foreign government
or any state or locality therein, including the Federal Deposit Insurance
Company, the Comptroller of the Currency or the Federal Reserve Board.

         "Governmental Rule" means any law, statute, rule, regulation,
          -----------------
ordinance, order, judgment, guidelines or decision of any Governmental Person.

         "Indebtedness", as applied to any Person, means (i) all indebtedness
          ------------
for borrowed money, (ii) that portion of obligations with respect to Capital
Leases which is required to be capitalized on a balance sheet in conformity with
GAAP, (iii) notes payable and drafts accepted representing extensions of credit
whether or not representing obligations for borrowed money, (iv) any obligation
owed for all or any part of the deferred purchase price of property or services
which purchase price is (y) due more than twelve months from the date of
incurrence of the obligation in respect thereof, or (z) evidenced by a
promissory note and (v) all indebtedness secured by any Lien on any property or
asset owned or held by that Person regardless of whether the indebtedness
secured thereby shall have been assumed by that Person or is non-recourse to the
credit of that Person. The amount of any Indebtedness shall be the principal
amount of and all interest, premium, if any, and other fees and expenses accrued
on any of the foregoing.

                                    - 9 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Interest Payment Date" means, with respect to any Eurodollar Rate
          ---------------------
Loan, the last day of each Interest Period applicable to such Loan and, with
respect to any Base Rate Loan, the last Business Day of each calendar quarter,
and with respect to all Loans, the Termination Date; provided, however, that if
                                                     --------  -------
any Interest Period for a Eurodollar Rate Loan exceeds three months, interest
shall also be paid on the date which falls three months after the beginning of
such Interest Period.

         "Interest Period" means, with respect to any Eurodollar Rate Loan, the
          ---------------
period commencing on the Business Day the Eurodollar Rate Loan is disbursed or
continued or on the date on which a Loan is converted into a Eurodollar Rate
Loan and ending on the date one, two, three or six months thereafter, as
selected by the Company in its Notice of Borrowing or Notice of
Conversion/Continuation; provided that:
                         --------

                  (i)      if any Interest Period pertaining to a Eurodollar
         Rate Loan would otherwise end on a day which is not a Business Day,
         that Interest Period shall be extended to the next succeeding
         Business Day unless the result of such extension would be to carry
         such Interest Period into another calendar month, in which event such
         Interest Period shall end on the immediately preceding Business Day;

                  (ii)     any Interest Period pertaining to a Eurodollar Rate
         Loan that begins on the last Business Day of a calendar month (or on
         a day for which there is no numerically corresponding day in the
         calendar month at the end of such Interest Period) shall end on the
         last Business Day of the calendar month at the end of such Interest
         Period; and

                  (iii)    no Interest Period shall extend beyond the
         Termination Date.

         "Internal Revenue Code" means the Internal Revenue Code of 1986, as
          ---------------------
amended to the date hereof and from time to time hereafter, and the rules and
regulations promulgated thereunder.

         "Lender" has the meaning assigned to that term in the introduction to
          ------
this Agreement, together with any other financial institutions that become a
party hereto as a "Lender" pursuant to Section 10.08.
                                       -------------

         "Lending Office" means, with respect to any Lender, the office or
          --------------
offices of the Lender specified as its "Lending Office" under its name on
Schedule 10.02 hereto, or such other office or offices of the Lender as it may
--------------
from time to time specify to the Company and the Administrative Agent in
writing.

         "Lien" means any lien, mortgage, pledge, security interest, charge or
          ----
encumbrance of any kind (including any conditional sale or other title retention
agreement, any lease in the nature thereof, and any agreement to give any kind
of security interest).

         "Loan Documents" means this Agreement, any Notes, the Mattel Sales
          --------------
Guaranty, the Fisher-Price Guaranty, the Mattel Sales Subordination Agreement,
the Fisher-Price Subordination Agreement and all documents and instruments
delivered in connection herewith or therewith, but shall not include the
Transaction Documents.

                                    - 10 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Loans" has the meaning set forth in Section 2.01.
          -----                               ------------

         "Margin Stock" has the meaning assigned to the term "Margin Stock" in
          ------------
Regulation U of the Federal Reserve Board as in effect from time to time.

         "Material Adverse Effect" means (i) a material adverse effect upon the
          -----------------------
business, operations, properties, assets or condition (financial or otherwise)
of the Company and its Subsidiaries, taken as a whole, or (ii) a material
impairment of the ability of the Company to perform the Obligations or of the
Lenders to enforce the Obligations.

         "Material Subsidiary" means Mattel Sales, Fisher-Price, or any other
          -------------------
Subsidiary of the Company which meets any of the following conditions:

         (a)      the Company's and its Subsidiaries' investments in, and
advances to, the Subsidiary exceed 10 percent of the total assets of the
Company and its Subsidiaries consolidated as of the end of the most recently
completed fiscal year (for a proposed business combination to be accounted for
as a pooling of interest, this condition is also met when the number of common
shares exchanged or to be exchanged by the Company exceeds 10 percent of its
total common shares outstanding at the date the combination is initiated); or

         (b)      the Company and its other Subsidiaries' proportionate share of
the total assets (after intercompany eliminations) of the Subsidiary exceeds 10
percent of the total assets of the Company and its Subsidiaries consolidated as
of the end of the most recently completed fiscal year; or

         (c)      the Company and its other Subsidiaries' equity in the income
from continuing operations before income taxes, extraordinary items and
cumulative effect of a change in accounting principles of the Subsidiary
exceeds 10 percent of such income of the Company and its Subsidiaries
consolidated for the most recently completed fiscal year.

         For purpose of meeting the prescribed income test the following
guidance should be applied:

                  (i)      When a loss has been incurred by either the Company
         and its Subsidiaries consolidated or the tested Subsidiary, but not
         both, the equity in the income or loss of the tested Subsidiary
         should be excluded from the income of the Company and its
         Subsidiaries consolidated for purposes of the computation.

                  (ii)     If income of the Company and its Subsidiaries
         consolidated for the most recent fiscal year is at least 10 percent
         lower than the average of the income for the last five years, such
         average income should be substituted for purposes of the computation.
         Any loss years should be omitted for purposes of computing average
         income.

                  (iii)    Where the test involves combined entities, as in the
         case of determining whether summarized financial data should be
         presented, entities reporting losses shall not be aggregated with
         entities reporting income.

         "Mattel Sales" means Mattel Sales Corp., a California corporation.
          ------------

                                    - 11 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Mattel Sales Guaranty" means the Amended and Restated Continuing
          ---------------------
Guaranty signed by Mattel Sales substantially in the form of Exhibit F-2 hereto,
                                                             -----------
as amended, supplemented, restated or otherwise modified from time to time.

         "Mattel Sales Subordination Agreement" means the Amended and Restated
          ------------------------------------
Mattel Sales Subordination Agreement substantially in the form of Exhibit G-2
                                                                  -----------
attached hereto signed by the Company and certain Affiliates of the Company with
respect to which Mattel Sales has material outstanding obligations, as it may
hereafter be amended, supplemented, restated or otherwise modified from time to
time.

         "Moody's" means Moody's Investors Service, Inc. or any successor
          -------
thereto.

         "Multiemployer Plan" means a "multiemployer plan" as defined in Section
          ------------------
4001(a)(3) of ERISA which is maintained for employees of the Company or any
ERISA Affiliate of the Company.

         "Non-Priority Indebtedness" means Indebtedness which (a) is not senior
          -------------------------
to the Obligations, (b) does not have any priority of payment over the
Obligations or (c) is not secured by Liens on any of the Company's or any
Subsidiary's assets.

         "Note" means a promissory note of the Company payable to the order of a
          ----
Lender substantially in the form of Exhibit A hereto, evidencing the Loans made
                                    ---------
by such Lender to the Company.

         "Notice of Borrowing" means a notice substantially in the form of
          -------------------
Exhibit B hereto with respect to a proposed borrowing pursuant to Section
                                                                  -------
2.03(a).
-------

         "Notice of Conversion/Continuation" means a notice given by the Company
          ---------------------------------
to the Administrative Agent pursuant to Section 2.04, in substantially the form
                                        ------------
of Exhibit C hereto.
   ---------

         "Obligations" means (a) all obligations of every nature of the Company,
          -----------
Fisher-Price and Mattel Sales from time to time owed to the Administrative
Agent, the Lenders or any other Person required to be indemnified hereunder, or
any of them, under any Loan Document and (b) all obligations of every nature of
any Seller Party (as defined in the Receivables Purchase Agreement) from time to
time owed to the Administrative Agent, the Purchasers or any other Person
required to be indemnified thereunder, or any of them, under any Transaction
Document.

         "Officers' Certificate" means a certificate substantially in the form
          --------
of Exhibit D hereto executed on behalf of the Company by two different officers
of the Company, one of which shall be (a) its Chairman of the Board (if an
officer), one of its Presidents, one of its Executive Vice Presidents, or one of
its Senior Vice Presidents, and the other one of which shall be (b) its Chief
Financial Officer, its Treasurer, one of its Assistant Treasurers, or its
Controller, delivered to the Lenders by the Company pursuant to Section 6.02(a).
                                                                ---------------

         "Other Permitted Accounts Receivable Financing Facility" means a
          ------------------------------------------------------
financing arrangement (other than the Receivables Purchase Agreement and the
Purchase and Sale Agreement) entered into in the ordinary course of business
under which accounts receivable of

                                    - 12 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

the Company, Mattel Sales, Fisher-Price or any other Subsidiary are
periodically sold directly to third party purchasers, or sold to a Subsidiary
of the Company formed for such purpose which in turn sells such accounts
receivable to third party purchasers; provided, however, that in connection
                                      --------  -------
with any such financing arrangement:

         (a)      there is no recourse to the Company or any of its Subsidiaries
on account of the creditworthiness of the obligor on such accounts receivable;
and

         (b)      no negative pledge or Lien is created on any accounts
receivables not actually sold or discounted.

         "Participant" has the meaning set forth in Section 10.08(d).
          -----------                               ----------------

         "Pension Plan" means any employee plan which is subject to Section 412
          ------------
of the Internal Revenue Code and which is maintained for employees of the
Company or any ERISA Affiliate of the Company other than a Multiemployer Plan.

         "Percentage" has the meaning set forth in the Receivables Purchase
          ----------
Agreement.

         "Person" means any individual, partnership, corporation (including a
          ------
business trust), joint stock company, joint venture, trust, bank, trust company,
unincorporated association or other entity or a government or any agency or
political subdivision thereof.

         "Pro Rata Share" means with respect to each Lender the percentage set
          --------------
forth opposite such Lender's name on Schedule 1.01 hereto. Each Lender's Pro
                                     -------------
Rata Share shall at all times be equal to its Percentage as a Purchaser under
the Receivables Purchase Agreement.

         "Purchase and Sale Agreement" means the First Amended and Restated
          ---------------------------
Purchase and Sale Agreement dated as of even date herewith, among the sellers
party thereto, the Company, as servicer and guarantor, and Mattel Factoring,
Inc., as the buyer thereunder, as it may be amended, supplemented, restated or
otherwise modified from time to time.

         "Purchasers" has the meaning set forth in the Receivables Purchase
          ----------
Agreement.

         "Purchaser Commitment" means, for each Lender, the amount set forth for
          --------------------
each Lender under "Purchaser Commitment" on Schedule 1.01, as such amount may be
                                            -------------
reduced from time to time in accordance with this Agreement and the Receivables
Purchase Agreement. The Purchaser Commitment is part of, and not in addition to,
the Commitment.

         "Purchasers' Investment" has the meaning set forth in the Receivables
          ----------------------
Purchase Agreement.

         "Purchasers' Investment Limit" has the meaning set forth in the
          ----------------------------
Receivables Purchase Agreement and shall be equal to the lesser of the Aggregate
Facilities Commitment and $300,000,000, as such amount may be reduced pursuant
to the Receivables Purchase Agreement. The Purchasers' Investment Limit is part
of, and not in addition to, the Aggregate Facilities Commitment.

                                    - 13 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         "Receivables Purchase Agreement" means the First Amended and Restated
          ------------------------------
Receivables Purchase Agreement dated as of even date herewith, among Mattel
Factoring, Inc., as transferor, the Company, servicer, the Purchasers and the
Administrative Agent, as it may be amended, supplemented, restated or otherwise
modified from time to time.

         "Requisite Lenders" means, as of any date of determination, Lenders
          -----------------
having at least 66-2/3% of the Aggregate Facilities Commitment or, if the
Aggregate Facilities Commitment has been terminated, Lenders holding in the
aggregate at least 66-2/3% of all Loans and Purchasers' Investment; provided
                                                                    --------
that the Commitment of, and the outstanding principal amount of any Loans and
portion of Purchasers' Investment held by any Defaulting Lender shall be
excluded for purposes of making a determination of Requisite Lenders.

         "Securities Act" means, at any time, the Securities Act of 1933, as
          --------------
amended from time to time, and any successor statute, and the rules and
regulations promulgated thereunder.

         "S&P" means Standard & Poor's Ratings Services, a division of The
          ---
McGraw-Hill Companies, Inc., or any successor thereto.

         "Subsidiary" means any corporation, association or other business
          ----------
entity of which more than 50% of the total voting power of shares of stock
entitled to vote in the election of directors, managers or trustees thereof is
at the time owned or controlled, directly or indirectly, by any Person or one or
more of the other Subsidiaries of that Person or a combination thereof.

         "Termination Date" means (a) March 31, 2005, or (b) such earlier date
          ----------------
upon which the Commitments are terminated in accordance with the terms hereof.
At no time shall the Termination Date be earlier than the Facility Termination
Date under and as defined in the Receivables Purchase Agreement.

         "Transaction Documents" has the meaning set forth in the Receivables
          ---------------------
Purchase Agreement.

         1.02     Other Definitional Provisions. References to "Sections" shall
be to Sections of this Agreement unless otherwise specifically provided. Any of
the terms defined in Section 1.01 may, unless the context otherwise requires,
                     ------------
be used in the singular or the plural depending on the reference.

                                    SECTION 2.
                                 THE COMMITMENTS

         2.01     The Aggregate Facilities Commitment. Each Lender hereby
severally agrees during the Availability Period (a) to make advances to the
Company ("Loans") on the terms and conditions set forth in this Agreement and
          -----
(b) to purchase receivables on the terms and conditions set forth in the
Receivables Purchase Agreement; provided, however, that: (i) the aggregate
                                --------  -------
outstanding amount of all Loans and Purchasers' Investment shall not exceed the
Aggregate Facilities Commitment; (ii) the aggregate outstanding Purchasers'
Investments shall not exceed the Purchasers' Investment Limit; (iii) the
aggregate outstanding principal amount of the Loans of any Lender, plus such
                                                                   ----
Lender's Percentage of the aggregate outstanding amount of

                                    - 14 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

Purchasers' Investment in its capacity as a Purchaser under the Receivables
Purchase Agreement shall not exceed such Lender's Commitment; (iv) each
Lender's Percentage of the aggregate outstanding amount of Purchasers'
Investment in its capacity as a Purchaser under the Receivables Purchase
Agreement shall not exceed its Purchaser Commitment; and (v) each Lender's Pro
Rata Share hereunder shall at all times be equal to such Lender's Percentage
under, and as defined in, the Receivables Purchase Agreement. Within the limits
of each Lender's Commitment, and subject to the other terms and conditions
hereof, the Company may borrow under this Section 2.01, prepay pursuant to
                                          ------------
Section 2.06 and reborrow pursuant to this Section 2.01.
------------                               ------------

         2.02     LOAN ACCOUNTS AND NOTES.

         (a)      Subject to Section 2.02(b), the Loans made by each Lender
                             ---------------
shall be evidenced by one or more loan accounts maintained by such Lender in
the ordinary course of business. The loan accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Loans made by the Lenders to the Company and the interest
and payments thereon. Any failure to record or any error in doing so shall not,
however, limit or otherwise affect the obligation of the Company hereunder to
pay any amount owing with respect to the Loans.

         (b)      Upon the written request of any Lender made through the
Administrative Agent, the Loans made by such Lender may be evidenced by one or
more Notes, instead of loan accounts. Each such Lender shall endorse on the
schedules annexed to its Note(s), the date, amount and maturity of each Loan
made by it and the amount of each payment of principal made by the Company with
respect thereto. Each such Lender is irrevocably authorized by the Company to
endorse the schedules annexed to its Note(s) and each Lender's record shall be
conclusive absent manifest error; provided, however, that the failure of a
                                  --------  -------
Lender to make, or an error in making, a notation thereon with respect to any
Loan shall not limit or otherwise affect the obligations of the Company
hereunder or under any such Note to such Lender.

         2.03     BORROWING PROCEDURE.

         (a)      Whenever the Company desires to borrow hereunder, it shall
deliver irrevocable telephonic notice to the Administrative Agent followed
immediately by written notice in the form of a Notice of Borrowing, which
telephonic notice must be received by the Administrative Agent no later than
(i) 8:00 a.m.  (California time) on the proposed Funding Date in the case of
Base Rate Loans and (ii) 9:00 a.m. (California time) three Business Days in
advance of the proposed Funding Date in the case of Eurodollar Rate Loans,
specifying (A) the proposed Funding Date which shall be a Business Day, (B) the
amount of the proposed borrowing, (C) whether the proposed borrowing shall
consist of Base Rate Loans or Eurodollar Rate Loans, and (D) in the case of
Eurodollar Rate Loans, the requested Interest Period. Base Rate Loans made on
any Funding Date shall be in an aggregate minimum amount of $1,000,000 and
integral multiples of $500,000 in excess of that amount. Eurodollar Rate Loans
made on any Funding Date shall be in an aggregate minimum amount of $5,000,000
and integral multiples of $500,000 in excess of that amount.

                                    - 15 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         (b)      Promptly (and normally within two hours) after receipt of a
Notice of Borrowing (or telephone notice in lieu thereof), the Administrative
Agent shall notify each Lender of the proposed borrowing. Each Lender shall
make available to the Administrative Agent its Pro Rata Share of the amount (if
any) by which the principal amount of the proposed borrowing exceeds the
principal amount of the Loans (if any) maturing on the Funding Date, in same
day funds, by remitting such funds to the Administrative Agent's Office no
later than 11:00 a.m. (California time) on the Funding Date. Upon satisfaction
of the conditions set forth in Section 4.02, the Administrative Agent shall
                               ------------
make available to the Company on such Funding Date the aggregate of the amounts
(if any) so made available by the Lenders by causing an amount of same day
funds equal to such aggregate amount (if any) received by the Administrative
Agent to be credited to the account of the Company at the Administrative
Agent's Office. To the extent that Eurodollar Rate Loans made by the Lenders
mature on any Funding Date, the Lenders shall apply the proceeds of the Loans
made on such Funding Date, to the extent thereof, to the repayment of such
maturing Loans, such Loans and repayments intended to be a contemporaneous
exchange.

         2.04     CONVERSION AND CONTINUATION ELECTIONS.

         (a)      The Company may upon irrevocable written notice to the
Administrative Agent: (i) elect to convert any Base Rate Loans (or any part
thereof in an amount not less than $5,000,000 or an integral multiple of
$500,000 in excess thereof) on any Business Day into Eurodollar Rate Loans; (ii)
elect to convert any Eurodollar Rate Loans (or any part thereof) on the last day
of any Interest Period therefor into Base Rate Loans in an amount not less than
$1,000,000 or an integral multiple of $500,000 in excess thereof; or (iii) elect
to continue any Eurodollar Rate Loans (or any part thereof in an amount not less
than $5,000,000 or an integral multiple of $500,000 in excess thereof) on the
last day of any Interest Period therefor; provided, that if the aggregate amount
                                          --------
of Eurodollar Rate Loans shall have been reduced, by payment, prepayment, or
conversion of part thereof to be less than $5,000,000, the Eurodollar Rate Loans
shall automatically convert into Base Rate Loans, and on and after such date the
right of the Company to continue such Loans as Eurodollar Rate Loans shall
terminate.

         (b)      Each conversion or continuation shall be made upon irrevocable
telephonic notice to the Administrative Agent followed immediately by written
notice in the form of a Notice of Conversion/ Continuation, which telephonic
notice must be received by the Administrative Agent prior to (i) 9:00 a.m.
(California time) at least three Business Days in advance of the conversion or
continuation date, if the Loans are to be converted into or continued as
Eurodollar Rate Loans and (ii) 9:00 a.m. (California time) on the conversion or
continuation date, if the Loans are to be converted into Base Rate Loans,
specifying: (A) the proposed conversion or continuation date; (B) the aggregate
amount of Loans to be converted or continued; (C) the nature of the proposed
conversion or continuation; and (D) the duration of the requested Interest
Period, if applicable.

         (c)      If upon the expiration of any Interest Period applicable to
Eurodollar Rate Loans, the Company has failed to select a new Interest Period to
be applicable to such Eurodollar Rate Loans or type of Loan or if any Default or
Event of Default shall then exist, the Company shall be deemed to have elected
to convert such Eurodollar Rate Loans into Base Rate Loans effective as of the
expiration date of such current Interest Period.

                                    - 16 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         (d)      Upon receipt of a Notice of Conversion/Continuation, the
Administrative Agent will promptly notify each Lender thereof, or, if no timely
notice is provided, the Administrative Agent will promptly notify each Lender of
the details of any automatic conversion. All conversions and continuations shall
be made pro rata according to the respective outstanding principal amounts of
the Loans with respect to which the notice was given held by each Lender.

         (e)      Unless the Requisite Lenders shall otherwise agree, after the
occurrence of and during the continuance of a Default or Event of Default, the
Company may not elect to have a Loan be made as, or converted into or continued
as, a Eurodollar Rate Loan.

         (f)      Notwithstanding any other provision contained in this
Agreement, after giving effect to any conversion or continuation of any Loans,
there shall not be more than five different Interest Periods in effect.

         2.05     REDUCTION OR TERMINATION OF AGGREGATE FACILITIES COMMITMENT.

         (a)      The Company may, upon notice to the Administrative Agent,
terminate the Aggregate Facilities Commitment, or permanently reduce the
Aggregate Facilities Commitment to an amount not less than the then aggregate
outstanding amount of all Loans and Purchasers' Investment; provided that (i)
                                                            --------
any such notice shall be received by the Administrative Agent not later than
8:00 a.m.  (California time) three Business Days prior to the date of
termination or reduction, and (ii) any such partial reduction shall be in an
aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess
thereof. The Administrative Agent shall promptly notify the Lenders of any such
notice of reduction or termination of the Aggregate Facilities Commitment. Once
reduced in accordance with this Section, the Aggregate Facilities Commitment
may not be increased. Any reduction of the Aggregate Facilities Commitment
shall be applied to the Commitment of each Lender according to its Pro Rata
Share. All commitment and utilization fees accrued until the effective date of
any termination of the Aggregate Facilities Commitment shall be paid on the
effective date of such termination.

         (b)      Any reduction or termination of the Purchasers' Investment
Limit pursuant to the Receivables Purchase Agreement shall automatically and
concurrently reduce the Purchasers' Investment Limit (but not the Aggregate
Facilities Commitment) for purposes of this Agreement to an amount equal to
such Purchasers' Investment Limit, as so reduced, or terminate the Purchasers'
Investment Limit, as the case may be.

         2.06     Voluntary Prepayments. The Company may, upon not less than one
Business Days' prior written or telephonic notice confirmed in writing to the
Administrative Agent (in the case of a prepayment of a Base Rate Loan) or three
Business Days' prior written or telephonic notice confirmed in writing to the
Administrative Agent (in the case of a prepayment of a Eurodollar Rate Loan)
(which notice the Administrative Agent will promptly transmit by telecopy,
telex or telephone to each Lender), at any time and from time to time prepay
(i) any Eurodollar Rate Loans in whole or in part in an aggregate minimum
amount of $3,000,000 and integral multiples of $500,000 in excess of that
amount so long as the unpaid balance is not less than $5,000,000; or (ii) any
Base Rate Loans in whole or in part in an aggregate minimum amount of
$1,000,000 and integral multiples of $100,000 in excess of that amount;
provided that in the event of any such prepayment of any Eurodollar Rate Loans,
--------
the Company shall be

                                    - 17 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

obligated to reimburse the Lenders in respect thereof pursuant to Section 3.05.
                                                                  ------------
If such notice of prepayment does not specify how such prepayment shall be
applied, it shall be applied first to Base Rate Loans to the full extent
thereof before application to Eurodollar Rate Loans, as determined by the
Administrative Agent.  All prepayments of Eurodollar Rate Loans shall be
applied to the payment of any interest that has accrued to the date of such
prepayment before application to principal. Prepayments of Base Rate Loans
shall be applied to principal only.

         2.07     Repayment of Loans. Each Loan shall mature and the Company
shall repay the unpaid principal amount of each Loan on the Termination Date.

         2.08     INTEREST ON THE LOANS.

         (a)      Subject to Section 2.08(c), the Loans shall bear interest on
                             ---------------
the unpaid principal amount thereof from the Funding Date until paid in full at
a rate per annum equal to (i) with respect to Eurodollar Rate Loans, the
Eurodollar Rate plus the Applicable Amount for Eurodollar Rate Loans or (ii)
                ----
with respect to Base Rate Loans the Base Rate plus the Applicable Amount for
Base Rate Loans.

         (b)      Subject to Section 2.08(c), from and after the Effective Date,
                             ---------------
interest shall be payable in arrears on the Loans on each Interest Payment Date
applicable to that Loan. Interest paid on the date of any partial prepayment of
Loans hereunder shall be paid in respect of the portion of the Loans so prepaid.

         (c)      Any principal payments on the Loans not paid when due and, to
the extent permitted by applicable law, any interest payments on the Loans not
paid when due, in each case whether at stated maturity, by notice of
prepayment, by acceleration or otherwise, shall thereafter bear interest
payable upon demand at a rate equal to the Default Rate. Furthermore, while any
Event of Default exists or after acceleration, the Company shall pay interest
on the principal amount of all outstanding Loans at a fluctuating interest rate
per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Governmental Rule. Accrued and unpaid interest on past
due amounts (including interest on past due interest) shall be due and payable
upon demand.  Notwithstanding the foregoing, interest shall not commence
accruing at the Default Rate until the Administrative Agent, at the direction
of the Requisite Lenders, has notified the Company thereof; provided, however,
                                                            --------  -------
that upon the occurrence of an Event of Default specified in Section 8.01(f) or
                                                             ---------------
(g), the Default Rate shall thereupon automatically commence accruing and be
---
due and payable without further act of or demand by the Administrative Agent or
any Lender.

         2.09     FEES.

         (a)      The Company agrees to pay a commitment fee equal to the
Applicable Amount for the commitment fee on the daily actual unused portion of
the Aggregate Facilities Commitment during the Availability Period. The Company
shall pay the commitment fee to the Administrative Agent for distribution to
each Lender in accordance with its Pro Rata Share. The commitment fee shall be
calculated on the basis of a 360-day year and the actual number of days elapsed
and shall be payable quarterly in arrears on the last Business Day of each
calendar quarter, for all amounts accrued to such date, and on the Termination
Date; provided that, in
      --------

                                    - 18 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

connection with any reduction or termination of the Aggregate Facilities
Commitment pursuant to Section 2.05, the accrued fee calculated on the portion
                       ------------
so terminated or reduced for the period ending on such date shall also be paid
on the date of such reduction or termination.

         (b)      The Company agrees to pay a utilization fee equal to the
Applicable Amount therefor on the daily actual principal amount of all
outstanding Loans on each day that the aggregate principal amount of
outstanding Loans exceeds 33.00% or 66.00% of an amount equal to (i) the
Aggregate Facilities Commitment less (ii) the aggregate outstanding amount of
                                ----
the Purchasers' Investments. The Company shall pay the utilization fee to the
Administrative Agent for distribution to each Lender in accordance with its Pro
Rata Share. The utilization fee shall be calculated on the basis of a 360-day
year and the actual number of days elapsed and shall be payable quarterly in
arrears on the last Business Day of each calendar quarter, for all amounts
accrued to such date, and on the Termination Date; provided that, in connection
                                                   --------
with any reduction or termination of the Aggregate Facilities Commitment
pursuant to Section 2.05, the accrued utilization fee calculated on the portion
            ------------
so terminated or reduced for the period ending on such date shall also be paid
on the date of such reduction or termination.

         (c)      The Company shall pay an arrangement fee to the Arranger for
the Arranger's own account, and shall pay an agency fee to the Administrative
Agent for the Administrative Agent's own account, in the amounts and at the
times specified in the letter agreement, dated February 6, 2002 (the
"Agent/Arranger Fee Letter"), among the Company, the Arranger and the
 -------------------------
Administrative Agent. Such fees shall be fully earned when paid and shall be
nonrefundable for any reason whatsoever.

         (d)      The Company shall pay to the Administrative Agent such fees
as may from time to time be agreed upon between the Company and the
Administrative Agent.

         2.10     CALCULATION OF INTEREST AND FEES.

         (a)      Interest on all Loans and fees payable under this Agreement
shall be computed on the basis of a 360-day year and the actual number of days
elapsed in the period during which it accrues. In computing interest on any
Loan, the date of the making of the Loan or the first day of an Interest
Period, as the case may be, shall be included and the date of payment shall be
excluded; provided that, if a Loan is repaid on the same day on which it is
          --------
made, one day's interest shall be paid on that Loan.

         (b)      Any change in the interest rate on a Loan resulting from a
change in the Applicable Amount or Eurodollar Reserve Percentage shall become
effective as of the opening of business on the day on which such change in the
Applicable Amount or Eurodollar Reserve Percentage becomes effective. Each
determination of an interest rate by the Administrative Agent pursuant hereto
shall be conclusive and binding on the Company and the Lenders in the absence
of manifest error.

         2.11     PAYMENTS BY THE COMPANY.

         (a)      All payments of principal, interest and fees hereunder and
under any Notes shall be made in Dollars without setoff, counterclaim,
recoupment or any other deduction, in same day

                                    - 19 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

funds and delivered to the Administrative Agent at the Administrative Agent's
Office for the account of the Lenders or the Administrative Agent not later
than 11:00 a.m. (California time) on the date due. The Administrative Agent
will promptly distribute to each Lender its Pro Rata Share (or other applicable
share as expressly provided herein) of such principal, interest, fees or other
amounts in like funds received. Any payment which is received by the
Administrative Agent after that time shall be deemed to have been paid by the
Company on the next succeeding Business Day and any applicable interest or fee
shall continue to accrue.

         (b)      Subject to the provisions in the definition of "Interest
Period", whenever any payment hereunder shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of interest or fees, as the case may be.

         (c)      Unless the Administrative Agent shall have received notice
from the Company prior to the date on which any payment is due to the Lenders
hereunder that the Company will not make such payment in full as and when
required hereunder, the Administrative Agent may assume that the Company has
made such payment in full to the Administrative Agent on such date in
immediately available funds and the Administrative Agent may (but shall not be
so required), in reliance upon such assumption, cause to be distributed to each
Lender on such due date an amount equal to the amount then due such Lender. If
and to the extent the Company shall not have made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent on
demand such amount distributed to such Lender, together with interest thereon
for each day from the date such amount is distributed to such Lender until the
date such Lender repays such amount to the Administrative Agent, at the Federal
Funds Rate as in effect for each such day.

         2.12     PAYMENTS BY THE LENDERS TO THE ADMINISTRATIVE AGENT.

         (a)      Unless the Administrative Agent shall have received notice
from a Lender on the Effective Date or, with respect to each borrowing after
the Effective Date, by 12:00 noon (California time) one Business Day prior to
the date of any proposed borrowing of Eurodollar Rate Loans, or by 10:00 a.m.
(California time) on the date of any proposed borrowing of Base Rate Loans,
that such Lender will not make available to the Administrative Agent as and
when required hereunder for the account of the Company the amount of that
Lender's Pro Rata Share of the borrowing, the Administrative Agent may assume
that each Lender has made such amount available to the Administrative Agent in
immediately available funds on the Funding Date and the Administrative Agent
may (but shall not be so required), in reliance upon such assumption, make
available to the Company on such date a corresponding amount. If and to the
extent any Lender shall not have made its full amount available to the
Administrative Agent in immediately available funds and the Administrative
Agent in such circumstances has made available to the Company such amount, that
Lender shall on the next Business Day following the date of such borrowing make
such amount available to the Administrative Agent, together with interest at
the Federal Funds Rate for and determined as of each day during such period. A
notice of the Administrative Agent submitted to any Lender with respect to
amounts owing under this Section 2.12(a) shall be conclusive, absent manifest
                         ---------------
error. If such amount is so made available, such payment to the Administrative
Agent shall constitute such Lender's Loan on the date of borrowing for all
purposes of this Agreement. If such amount is not made available to the

                                    - 20 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

Administrative Agent on the next Business Day following the date of such
borrowing, the Administrative Agent shall notify the Company of such failure to
fund and, upon demand by the Administrative Agent, the Company shall pay such
amount to the Administrative Agent for the Administrative Agent's account,
together with interest thereon for each day elapsed since the date of such
borrowing, at a rate per annum equal to the interest rate applicable at the
time to the Loans comprising such borrowing.

         (b)      The failure of any Lender to make any Loan on any date of
borrowing shall not relieve any other Lender of any obligation hereunder to
make a Loan on the date of such borrowing, but no Lender shall be responsible
for the failure of any other Lender to make the Loan to be made by such other
Lender on the date of any borrowing.

         2.13     Sharing of Payments, Etc. If, other than as expressly provided
elsewhere herein, any Lender shall obtain on account of the Loans made by it
any payment (whether voluntary, involuntary, through the exercise of any right
of set-off, or otherwise) in excess of its Pro Rata Share of payments on
account of the Loans obtained by all the Lenders, such Lender shall forthwith
(a) notify the Administrative Agent of such fact, and (b) purchase from the
other Lenders such participations in the Loans made by them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion of such excess
                   --------  -------
payment is thereafter recovered from the purchasing Lender, such purchase shall
to that extent be rescinded and each other Lender shall repay to the purchasing
Lender the purchase price paid therefor, together with an amount equal to such
paying Lender's Pro Rata Share (according to the proportion of (i) the amount
of such paying Lender's required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.
The Company agrees that any Lender so purchasing a participation from another
Lender pursuant to this Section 2.13 may, to the fullest extent permitted by
                        ------------
law, exercise all its rights of payment (including the right of set-off) with
respect to such participation as fully as if such Lender were the direct
creditor of the Company in the amount of such participation. The Administrative
Agent will keep records (which shall be conclusive and binding in the absence
of manifest error) of participations purchased pursuant to this Section 2.13
                                                                ------------
and will in each case notify the Lenders following any such purchases or
repayments.

                                    SECTION 3.
                               PAYMENTS IN GENERAL

3.01     TAXES.

         (a)      Subject to Section 3.01(d) and Section 3.01(f), any and all
                             ---------------     ---------------
payments by the Company to each Lender or the Administrative Agent under this
Agreement shall be made free and clear of, and without deduction or withholding
for, any and all present or future taxes, levies, imposts, deductions, charges
or withholdings, and all liabilities with respect thereto, excluding, in the
case of each Lender and the Administrative Agent, such taxes (including income
taxes or franchise taxes) as are imposed on or measured by each Lender's or the
Administrative Agent's net income by the jurisdiction under the laws of which
such Lender or the Administrative Agent, as the case may be, is organized or
maintains a Lending Office or any political subdivision

                                    - 21 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

thereof (all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as "Taxes").
                                                               -----

         (b)      In addition, the Company shall pay any present or future stamp
or documentary taxes or any other excise or property taxes, charges or similar
levies which arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement or
any other Loan Documents (hereinafter referred to as "Other Taxes").
                                                      -----------

         (c)      Subject to Section 3.01(f), the Company shall indemnify and
                             ---------------
hold harmless each Lender and the Administrative Agent for the full amount of
Taxes or Other Taxes (including without limitation, any Taxes or Other Taxes
imposed by any jurisdiction on amounts payable under this Section 3.01) paid by
                                                          ------------
such Lender or the Administrative Agent and any liability (including penalties,
interest, additions to tax and expenses) arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally
asserted. Payment under this indemnification shall be made within 30 days from
the date such Lender or the Administrative Agent makes written demand therefor.

         (d)      If the Company shall be required by law to deduct or withhold
any Taxes or Other Taxes from or in respect of any sum payable hereunder to any
Lender or the Administrative Agent, then, subject to Section 3.01(f): (i) the
                                                     ---------------
sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 3.01) such Lender or the Administrative Agent, as the case may be,
     ------------
receives an amount equal to the sum it would have received had no such
deductions been made; (ii) the Company shall make such deductions, and (iii)
the Company shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.

         (e)      Within 30 days after the date of any payment by the Company of
Taxes or Other Taxes, the Company shall furnish to the Administrative Agent the
original or a certified copy of a receipt evidencing payment thereof, or other
evidence of payment satisfactory to the Administrative Agent.

         (f)      The Company will not be required to pay any additional amounts
in respect of Taxes pursuant to this Section 3.01 to any Lender for the account
                                    ------------
of any Lending Office of such Lender: (i) if the obligation to pay such
additional amounts would not have arisen but for a failure by such Lender to
comply with its obligations under Section 10.15 in respect of such Lending
                                  -------------
Office; or (ii) if such Lender shall have delivered to the Company the form(s)
in respect of such Lending Office pursuant to Section 10.15, and such Lender
                                              -------------
shall not be entitled to exemption from deduction or withholding of United
States Federal income tax in respect of payments by the Company hereunder for
the account of such Lending Office for any reason other than a change in United
States law or regulations or in the official interpretation of such law or
regulations by any Governmental Person charged with the interpretation or
administration thereof (whether or not having the force of law) after the date
of delivery of such form(s).

         (g)      If, at any time, the Company requests any Lender to deliver

any forms or other documentation pursuant to Section 10.15, then the Company
                                             -------------
shall, on demand of such Lender through the Administrative Agent, reimburse such
Lender for any costs and expenses (including

                                    - 22 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

expenses of outside legal counsel and the allocated costs of in-house counsel)
reasonably incurred by such Lender in the preparation or delivery of such forms
or other documentation.

         (h)      If the Company is required to pay additional amounts to any
Lender or the Administrative Agent pursuant to Section 3.01(d), then such Lender
                                               ---------------
shall use its reasonable best efforts (consistent with legal and regulatory
restrictions) to change the jurisdiction of its Lending Office so as to
eliminate any such additional payment by the Company which may thereafter
accrue if such change in the judgment of such Lender is not otherwise
disadvantageous to such Lender.

         (i)      The agreements and obligations of the Company contained in
this Section 3.01 shall survive the payment in full of all other Obligations.
     ------------

         3.02     Capital Adequacy. If (a) any adoption of or any change in or
in the interpretation of any law, rule or regulation, or (b) compliance with any
guideline, request or directive of any central bank or other Governmental
Person or quasi-governmental authority exercising control over banks or
financial institutions generally or any court (whether or not having the force
of law), or (c) any change in the force or effectiveness of the regulations set
forth at 12 C.F.R. Part 3 (Appendix A), 12 C.F.R. Part 225 (Appendix A), 12
C.F.R. Part 208 (Appendix A) or 12 C.F.R. Part 325 (Appendix A) requires that
the commitments of any Lender hereunder (including, without limitation,
commitments and obligations in respect of Loans) be treated as an asset or
otherwise be included for purposes of calculating the appropriate amount of
capital to be maintained by such Lender or any corporation controlling such
Lender (a "Change in Law"), the result of which is to reduce the rate of return
           -------------
on such Lender's capital as a consequence of such commitments to a level below
that which such Lender could have achieved but for such Change in Law, taking
into consideration such Lender's policies with respect to capital adequacy, by
an amount which such Lender deems to be material, the Lender shall deliver to
the Company a statement of the amount necessary to compensate such Lender for
the reduction in the rate of return on its capital attributable to such
commitments (the "Capital Compensation Amount"). The Lender shall determine the
                  ---------------------------
Capital Compensation Amount in good faith, using reasonable attribution and
averaging methods. The Lender shall from time to time notify the Company of the
amount so determined.  Such amount shall be due and payable by the Company to
such Lender ten Business Days after such notice is given. As soon as
practicable after any Change in Law, each Lender seeking compensation under
this Section shall submit to the Company estimates of the Capital Compensation
Amounts that would be payable as a function of such Lender's commitments
hereunder.

         3.03     ILLEGALITY.

         (a)      If any Lender shall determine that any Governmental Rule or
any change therein or in the interpretation or administration there of has made
it unlawful, or that any Governmental Person has asserted that it is unlawful,
for any Lender or its Lending Office to make Eurodollar Rate Loans, then, on
notice thereof by the Lender to the Company through the Administrative Agent,
the obligation of the Lender to make Eurodollar Rate Loans shall be suspended
until the Lender shall have notified the Administrative Agent and the Company
that the circumstances giving rise to such determination no longer exists.

                                    - 23 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         (b)      If a Lender shall determine that any Governmental Rule or any
change therein or in the interpretation or administration thereof has made it
unlawful, or that any Governmental Person has asserted that it is unlawful, for
any Lender or its Lending Office to maintain any Eurodollar Rate Loan, the
Company shall prepay all Eurodollar Rate Loans of the Lender then outstanding,
together with interest accrued thereon, or convert all Eurodollar Rate Loans of
the Lender then outstanding to Base Rate Loans pursuant to Section 2.04, either
                                                           ------------
on the last day of the Interest Period thereof if the Lender may lawfully
continue to maintain such Eurodollar Rate Loans to such day, or promptly, if
the Lender may not lawfully continue to maintain such Eurodollar Rate Loans,
together with any amounts required to be paid in connection therewith pursuant
to Section 3.05.
   ------------

         (c)      If the obligation of any Lender to make or maintain Eurodollar
Rate Loans has been terminated, the Company may elect, by giving notice to the
Lender through the Administrative Agent that all Loans which would otherwise be
made by the Lender as Eurodollar Rate Loans shall be instead Base Rate Loans.

         (d)      Before giving any notice to the Administrative Agent pursuant
to this Section 3.03, the affected Lender shall designate a different Lending
        ------------
Office with respect to its Eurodollar Rate Loans if such designation will avoid
the need for giving such notice or making such demand and will not, in the
judgment of the Lender, be illegal or otherwise disadvantageous to the Lender.

         3.04     Increased Costs and Reduction of Return. If any Lender shall
determine that, due to either (a) the introduction of or any change (other than
any change by way of imposition of or increase in reserve requirements included
in the calculation of the Eurodollar Rate) in or in the interpretation of any
law or regulation or (b) the compliance with any guideline or request from any
Governmental Person (whether or not having the force of law), there shall be
any increase in the cost to such Lender of agreeing to make or making, funding
or maintaining any Eurodollar Rate Loans, then the Company shall be liable for,
and shall from time to time, upon demand therefor by such Lender (with a copy
of such demand to the Administrative Agent), pay to such Lender, additional
amounts as are sufficient to compensate such Lender for such increased costs.
Each Lender agrees to notify the Company of the occurrence of such an increased
cost event promptly after obtaining knowledge thereof.

         3.05     Funding Losses. The Company agrees to reimburse each Lender
and to hold each Lender harmless from any loss or expense which the Lender may
sustain or incur as a consequence of: (a) the failure of the Company to make
any payment or prepayment of principal of any Eurodollar Rate Loan (including
payments made after any acceleration thereof); (b) the failure of the Company
to borrow, continue or convert a Loan after the Company has given (or is deemed
to have given) a Notice of Borrowing or a Notice of Conversion/ Continuation;
(c) the failure of the Company to make any prepayment after the Company has
given a notice in accordance with Section 2.06; or (d) the prepayment of a
                                  ------------
Eurodollar Rate Loan on a day which is not the last day of the Interest Period
with respect thereto; including any such loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain its Eurodollar
Rate Loans hereunder or from fees payable to terminate the deposits from which
such funds were obtained. Solely for purposes of calculating amounts payable by
the Company to the Lenders under Section 3.04 and this Section 3.05, each
                                 ------------          ------------
Eurodollar Rate Loan made by a Lender (and each

                                    - 24 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

related reserve, special deposit or similar requirement) shall be conclusively
deemed to have been funded at the Eurodollar Rate used in determining the
Eurodollar Rate for such Eurodollar Rate Loan by a matching deposit or other
borrowing in the interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan is in fact so
funded. This covenant shall survive the payment in full of all other
Obligations.

         3.06     Inability to Determine Rates. If the Administrative Agent
shall have determined that for any reason adequate and reasonable means do not
exist for ascertaining the Eurodollar Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan, or if the Requisite Lenders
advise the Administrative Agent in writing that the Eurodollar Rate applicable
for any requested Interest Period with respect to a proposed Eurodollar Rate
Loan does not adequately and fairly reflect the cost to such Lenders of funding
such Loan, the Administrative Agent will forthwith give notice of such
determination to the Company and each Lender. Thereafter, the obligation of the
Lenders to make or maintain Eurodollar Rate Loans hereunder shall be suspended
until the Administrative Agent upon the instruction of the Requisite Lenders
revokes such notice in writing. Upon receipt of such notice, the Company may
revoke any Notice of Borrowing or Notice of Conversion/ Continuation then
submitted by it.  If the Company does not revoke such notice with respect to
Loans, the Lenders shall make, convert or continue the Loans, as proposed by
the Company, in the amount specified in the applicable notice submitted by the
Company, but such Loans shall be made, converted or continued as Base Rate
Loans instead of Eurodollar Rate Loans.

         3.07     Survival.  The agreements and obligations of the Company in
this Section 3 shall survive the payment of all other Obligations.
     ---------

                                  SECTION 4.
                             CONDITIONS PRECEDENT

          4.01    Conditions to Effectiveness.  The effectiveness of the
Agreement is subject to satisfaction of the following conditions precedent:

         (a)      The Company shall deliver to the Administrative Agent and
Lenders (or to the Administrative Agent for the Lenders with sufficient
originally executed copies for each Lender, except for any Notes):

                  (i)      This Agreement, duly executed and delivered by the
         Company, the Administrative Agent and all Lenders;

                  (ii)     A Note, duly executed and delivered by the Company,
         drawn to the order of each Lender requesting a Note, with appropriate
         insertions;

                  (iii)    The Mattel Sales Guaranty and the Fisher-Price
         Guaranty, duly executed and delivered by Mattel Sales and Fisher-Price,
         respectively;

                  (iv)     The Mattel Sales Subordination Agreement and the
         Fisher-Price Subordination Agreement duly executed and delivered by the
         Company and each

                                    - 25 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         Affiliate of the Company to whom Mattel Sales or Fisher-Price owes any
         material outstanding obligations;

                  (v)      Copies of the resolutions of the board of directors
         or the executive committee of each Company Party approving and
         authorizing the execution, delivery and performance by such Company
         Party of each Loan Document to which it is a party, certified as of
         the Effective Date by the secretary or an assistant secretary of such
         Company Party;

                  (vi)     A certificate of the secretary or assistant secretary
         of each Company Party, certifying the names and true signatures of the
         officers of such Company Party authorized to execute and deliver the
         Loan Documents to which it is a party;

                  (vii)    The articles or certificate of incorporation or
         organization of each Company Party as in effect on the Effective Date,
         certified by the secretary of state of the state of its incorporation
         or formation as of a recent date, and the bylaws or operating agreement
         of each Company Party as in effect on the Effective Date, in each case,
         certified by the secretary or assistant secretary of such Company Party
         as of the Effective Date;

                  (viii)   A good standing certificate for each Company Party
         from the secretary of state of its state of incorporation or
         formation dated as of a recent date;

                  (ix)     Executed copies of one or more favorable written
         opinions of Christopher O'Brien, Esq., Assistant General Counsel of
         the Company, or a Senior Counsel of the Company, dated as of the
         Effective Date, substantially in the form of Exhibit E hereto
                                                      ---------
         relating to the Company Parties and as to such other matters as the
         Administrative Agent and the Lenders may reasonably request;

                  (x)      A certificate signed by one of the officers
         authorized to deliver an Officers' Certificate certifying (A) that
         the conditions specified in Sections 4.01(c) and (d) have been
                                     ----------------
         satisfied, (B) that there has been no event or circumstance since the
         date of the audited financial statements dated December 31, 2000
         referred to in Section 5.08 which has a Material Adverse Effect; and
                        ------------
         (C) the current ratings on the Company's long-term unsecured
         Indebtedness by S&P, Moody's and Fitch;

                  (xi)     Evidence that all conditions precedent to the initial
         purchase under the Receivables Purchase Agreement have been, or
         concurrently herewith are being, satisfied or waived thereunder; and

               (xii)       Evidence that the Existing 364-Day Credit Agreement
         is being terminated concurrently herewith.

         (b)      The Company shall have paid all fees payable pursuant to
Sections 2.09(c) and (d).
----------------     ---

                                    - 26 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         (c)      The representations and warranties of each Company Party
contained in any Loan Document shall be true, correct and complete in all
material respects on and as of the Effective Date.

         (d)      No Default or Event of Default shall exist.

         (e)      The Company shall have performed in all material respects all
agreements which this Agreement provides shall be performed by it on or before
the Effective Date

         4.02     Conditions to All Loans. The obligation of each Lender to make
any Loan is subject to the following further conditions precedent that, as of
the applicable Funding Date:

         (a)      The Administrative Agent shall have received on or before that
Funding Date a Notice of Borrowing signed by the Chief Executive Officer, the
Chief Financial Officer, the Treasurer or an Assistant Treasurer of the Company
or any officer of the Company designated by any of the above described officers
on behalf of the Company in writing delivered to the Administrative Agent;

         (b)      The representations and warranties of the Company contained in
any Loan Document (except the representation and warranty contained in Section
                                                                       -------
5.09 and, in the case of a borrowing of Loans where the aggregate principal
----
amount of the Loans being made on that Funding Date equals or is less than the
aggregate principal amount of Loans maturing on that Funding Date, the
representation and warranty contained in Section 5.11), shall be true, correct
                                         ------------
and complete in all material respects on and as of that Funding Date (except to
the extent that such representations and warranties expressly refer to an
earlier date, in which case they shall be true and correct in all material
respects as of such earlier date) to the same extent as though made on and as
of that Funding Date; and

         (c)      No Default or Event of Default shall exist or shall result
from such borrowing or continuation or conversion.

         Each Notice of Borrowing submitted by the Company hereunder shall
constitute a representation and warranty by the Company hereunder, as of the
Funding Date, that the conditions in Section 4.02 are satisfied or waived.
                                     ------------

                                  SECTION 5.
                        REPRESENTATIONS AND WARRANTIES

         In order to induce the Lenders and the Administrative Agent to enter
into this Agreement and to make any extension of credit hereunder, the Company
represents and warrants to each Lender and the Administrative Agent that the
following statements are true, correct and complete:

         5.01     Organization and Powers. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware; and, except for changes in the ordinary course of business or as
permitted or contemplated by this Agreement, each of the Material Subsidiaries
is a corporation duly organized, validly existing and in good

                                    - 27 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

standing under the laws of the jurisdiction of its incorporation; and each has
all requisite corporate power and authority to own and operate its properties,
to carry on its business as now conducted and proposed to be conducted and, in
the case of the Company, to enter into this Agreement, a Fisher-Price
Subordination Agreement and a Mattel Sales Subordination Agreement, to issue
the Notes and to carry out the transactions contemplated hereby and thereby.

         5.02     Good Standing. The Company and, except for changes in the
ordinary course of business or as permitted or contemplated by this Agreement,
each Material Subsidiary is in good standing wherever necessary to carry on its
present business and operations, except in jurisdictions in which the failure
to be in good standing has or will have no Material Adverse Effect.

         5.03     Material Subsidiaries. Except for changes in the ordinary
course of business or as permitted or contemplated by this Agreement, Schedule
                                                                      --------
5.03 hereto correctly sets forth the name, jurisdiction of incorporation and
----
ownership interest of the Company in each of its Material Subsidiaries as of
the date hereof.

         5.04     Authorization of Borrowing. The execution, delivery and
performance of each Loan Document to which it is a party, and acknowledgement
of the Fisher-Price Subordination Agreement and the Mattel Sales Subordination
Agreement and the issuance, delivery and payment of the Notes have been duly
authorized by all necessary corporate action by the Company.

         5.05     No Conflict. The execution, delivery and performance by the
Company of this Agreement and the acknowledgement of the Fisher-Price
Subordination Agreement, the Mattel Sales Subordination Agreement and the
issuance, delivery and payment of the Notes do not and will not (a) violate the
Restated Certificate of Incorporation or Bylaws of the Company, (b) violate any
provision of law applicable to the Company, or any material order, judgment or
decree of any court or other agency of government binding on the Company, the
violation of which would result in a Material Adverse Effect, (c) conflict
with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any Contractual Obligation of the Company, (d) result in
or require the creation or imposition of any material lien, security interest,
charge or encumbrance of any nature whatsoever upon any of its material
properties or assets, or (e) require any approval of stockholders or any
approval or consent of any Person under any Contractual Obligation of the
Company.

         5.06     Governmental Consents. The execution, delivery and performance
by the Company of each Loan Document to which it is a party and each agreement,
document, or instrument required hereunder, the acknowledgment of the
Fisher-Price Subordination Agreement, Mattel Sales Subordination Agreement, and
the issuance, delivery and payment of the Notes do not and will not require any
registration with, consent or approval of, or notice to, or other action to,
with or by, any Federal, state or other governmental authority or regulatory
body or other such person.

         5.07     Binding Obligation. This Agreement is, and each other Loan
Document to which it is a party, when executed and delivered hereunder will be,
the legally valid and binding obligations of the Company, enforceable against
it in accordance with their respective terms,

                                    - 28 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws or equitable principles relating to or limiting
creditors' rights generally.

         5.08     Financial Condition. The Company has heretofore delivered to
the Lenders a consolidated balance sheet of the Company and its Subsidiaries
for the fiscal year ended December 31, 2000 and related consolidated statements
of income, shareholders' equity and changes in financial position of the
Company and its Subsidiaries for such fiscal year, audited by
PriceWaterhouseCoopers.  All such statements were prepared in accordance with
GAAP and fairly present the consolidated financial position of the Company and
its Subsidiaries as at the date thereof and the consolidated results of
operations and statement of cash flow of the Company and its Subsidiaries for
the period then ended.  Neither the Company nor any of its Subsidiaries has any
material Contingent Obligation, liability for taxes or long-term lease which as
of the date of this Agreement, individually or in the aggregate, would, if it
became absolute, result in a Material Adverse Effect which is not reflected in
the foregoing statements or in the notes thereto.

         5.09     Changes, Etc. Since December 31, 2000, there has been no event
or events that have, either individually or in the aggregate, resulted in a
Material Adverse Effect.

         5.10     Title to Properties. The Company and its Subsidiaries have
good, sufficient and legal title to all the properties and assets reflected in
the consolidated balance sheet referred to in Section 5.08 except as set forth
                                              ------------
in said balance sheet or in the notes thereto, except for assets acquired or
disposed of in the ordinary course of business or as otherwise permitted by
this Agreement since December 31, 1996 and except for immaterial defects in
title as could not, individually or in the aggregate, have a Material Adverse
Effect.

         5.11     Litigation; Adverse Facts. Except as set forth on Schedule
                                                                    --------
5.11 hereto, there is no action, suit, proceeding or arbitration (whether or
----
not purportedly on behalf of the Company or any of its Subsidiaries) at law or
in equity or before or by any Federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, pending or, to the knowledge of the Company, threatened against or
affecting the Company or any of its Subsidiaries or any of the Company's or
such Subsidiaries' properties which, in the reasonable judgment of the Company
and its executive officers (assuming adverse determination of facts which the
Company in good faith believes it would not successfully disprove, and
considering damages which in their best judgment is the maximum that would be
awarded upon, and the likelihood of, an adverse determination of the claim or
the amount which reflects their best judgment as to that required to be paid to
settle the claims) would result in a Material Adverse Effect and there is no
basis known to such executive officers for any such action, suit or proceeding.
Neither the Company nor any of its Subsidiaries is (i) in violation of any
applicable law which could result in a Material Adverse Effect, or (ii) subject
to or in default with respect to any final judgment, writ, injunction, decree,
rule or regulation of any court or Federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, which could result in a Material Adverse Effect. There is
no action, suit, proceeding or investigation pending or, to the knowledge of
the Company, threatened against or affecting the Company or any of its
Subsidiaries which provides a reasonable basis for questioning the validity or
the enforceability of any Loan Document.

                                    - 29 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         5.12     Payment of Taxes. All tax returns and reports of the Company
and its Material Subsidiaries required to be filed by any of them have been
timely filed, and all taxes, assessments, fees and other governmental charges
upon the Company and its Subsidiaries and upon their respective properties,
assets, income and franchises which are due and payable have been paid when due
and payable or bonded against, except to the extent permitted by Section 6.04.
                                                                 ------------
The Company knows of no proposed tax assessment against it or any of its
Subsidiaries that would result in a Material Adverse Effect.

         5.13     Agreements. Neither the Company nor any of its Subsidiaries
is a party to or is subject to any material agreement or instrument or charter
or other internal restriction which results in a Material Adverse Effect.

         5.14     Performance. Neither the Company nor any of its Subsidiaries
is in default in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any Contractual Obligation of
the Company, and no condition exists which, with the giving of notice or the
lapse of time or both, would constitute such a default, except, in any such
case, where the consequences, direct or indirect, of such default or defaults,
if any, would not result in a Material Adverse Effect.

         5.15     Governmental Regulation. Neither the Company nor any of its
Subsidiaries is subject to regulation under the Public Utility Holding Company
Act of 1935, the Federal Power Act, the Interstate Commerce Act or the
Investment Company Act of 1940 or to any Federal or state statute or regulation
limiting its ability in any material way to incur Indebtedness for money
borrowed.

         5.16     Employee Benefit Plans. The Company and each of its ERISA
Affiliates is in compliance in all material respects with any applicable
provisions of ERISA and the regulations and published interpretations
thereunder with respect to all Pension Plans. Neither the Company nor any of
its ERISA Affiliates has participated in or participates in any Multiemployer
Plan the withdrawal from which may result in any liability to any party in an
amount in excess of $100,000,000.

         5.17     Environmental Matters. The Company conducts in the ordinary
course of business a review of the effect of existing Environmental Laws and
existing Environmental Claims on its business, operations and properties, and
as a result thereof the Company has reasonably concluded that such
Environmental Laws and Environmental Claims could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

         5.18     Disclosure. No representation or warranty of the Company
contained in this Agreement or any other document, certificate or written
statement furnished to the Lenders by the Company since January 1, 2002 for use
in connection with the transactions contemplated by this Agreement as of the
date of this Agreement contains any untrue statement of a material fact or
omits to state a material fact (known to the officers of the Company in the
case of any document or fact not furnished by it) necessary in order to make
the statements contained herein or therein not misleading except to the extent
that any such statement or omission that was untrue or misleading at the time
made or that subsequently became untrue or misleading has been superseded or
corrected by information provided to the Lenders prior to the date of this

                                    - 30 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

Agreement. The projections and pro forma financial information contained in
such written materials are based upon good faith estimates and assumptions
believed by the Company to be reasonable at the time made, it being recognized
by the Lenders that such projections as to future events are not to be viewed
as facts and that actual results during the period or periods covered by any
such projections may differ from the projected results. There is no fact known
to the officers of the Company as of the date of this Agreement (other than
matters of a general economic nature) which materially adversely affects the
business, operations, property, assets or condition (financial or otherwise) of
the Company and its Subsidiaries, taken as a whole, which has not been
disclosed herein or in the written materials referred to in Section 5.08 other
                                                            ------------
than as disclosed in writing to the Lenders on or before the date hereof.

         5.19     Subordination Agreements. Neither Fisher-Price nor Mattel
Sales has any material outstanding obligations to any Affiliate of the Company
which has not signed a Fisher-Price Subordination Agreement or a Mattel Sales
Subordination Agreement, respectively.

                                  SECTION 6.
                            AFFIRMATIVE COVENANTS

         The Company agrees from the Effective Date until payment in full of
all Obligations and termination of the Aggregate Facilities Commitment and the
Receivables Purchase Agreement, unless Requisite Lenders shall otherwise give
prior written consent, the Company will perform all covenants in this Section 6.
                                                                      ---------

         6.01     Financial Statements. The Company will maintain, and cause
each of its Subsidiaries to maintain, a system of accounting established and
administered in accordance with sound business practices to permit preparation
of financial statements in conformity with GAAP. The Company will deliver to
the Administrative Agent and to each Lender:

         (a)      as soon as practicable and in any event not later than 55 days
after the end of each of the first three fiscal quarters of the Company,
consolidated balance sheets of the Company and its Subsidiaries as at the end
of such period and for the fiscal year to date and the related consolidated
statements of income, consolidated statements of stockholders' equity and
consolidated statements of cash flow all in reasonable detail and certified by
the Chief Financial Officer, Executive Vice President Finance or the Treasurer
of the Company that the consolidated statements (and to the best of his or her
belief, the consolidating statements) and other materials required by this
clause (a) fairly present the financial condition of the Company and its
Subsidiaries as at the dates indicated and the results of their operations for
the periods indicated, subject to changes resulting from year-end audit and
normal year-end adjustments; and

         (b)      as soon as practicable and in any event not later than 100
days after the end of each fiscal year of the Company, consolidated and
consolidating balance sheets of the Company and its Subsidiaries as at the end
of such year and the related consolidated (and, as to statements of income
only, consolidated and consolidating) statements of income, stockholders'
equity and cash flow of the Company and its Subsidiaries for such fiscal year,
setting forth in each case, in comparative form the consolidated figures for
the previous year, all in reasonable detail and (i) in

                                    - 31 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

the case of such consolidated financial statements, accompanied by a report
thereon of Price Waterhouse or other independent accountants of recognized
national standing selected by the Company which report shall state that such
consolidated financial statements present fairly the financial position of the
Company and its Subsidiaries as at the dates indicated and the results of their
operations and their cash flow for the periods indicated in conformity with
GAAP and that the examination by such accountants in connection with such
consolidated financial statements has been made in accordance with generally
accepted auditing standards and (ii) in the case of such consolidating
financial statements, certified by the chief financial or accounting officer of
the Company.

         6.02     Certificates; Other Information. The Company will deliver to
the Administrative Agent and each Lender, in form and detail satisfactory to
the Administrative Agent and the Requisite Lenders:

         (a)      together with each delivery of financial statements of the
Company and its Subsidiaries pursuant to Sections 6.01(a) and (b) above, an
                                         ----------------     ---
Officers' Certificate (i) stating that the signers have reviewed the terms of
this Agreement and the Notes and have made, or caused to be made under their
supervision, a review in reasonable detail of the transactions and condition of
the Company and its Subsidiaries during the accounting period covered by such
financial statements and that such review has not disclosed the existence
during or at the end of such accounting period, and that the signers do not
have knowledge of the existence as at the date of the Officers' Certificate, of
any condition or event which constitutes an Event of Default or Default, or, if
any such condition or event existed or exists, specifying the nature and period
of existence thereof, and (ii) demonstrating in reasonable detail compliance
during (to the extent required) and at the end of such accounting periods with
the restrictions contained in Sections 7.05 and 7.06.
                              -------------     ----

         (b)      together with each delivery of consolidated financial
statements of the Company and its Subsidiaries pursuant to Section 6.01(b)
                                                           ---------------
above, a written statement by the independent accountants giving the report
thereon (i) stating that their audit examination has included a review of the
terms of this Agreement and the Notes as they relate to accounting matters, and
(ii) stating whether, in connection with their audit examination, any condition
or event which constitutes an Event of Default or Default has come to their
attention, and if such a condition or event has come to their attention,
specifying the nature and period of existence thereof; provided that such
                                                       --------
accountants shall not be liable by reason of any failure to obtain knowledge of
any such Event of Default or Default that would not be disclosed in the course
of their audit examination. The Administrative Agent shall have the right, from
time to time, to discuss the affairs of the Company directly with such
independent certified public accountants;

         (c)      promptly upon receipt thereof, copies of all reports submitted
to the Company (including, without limitation, the Company's Board of
Directors) by the Company's independent accountants in connection with each
annual, interim or special audit of the consolidated financial statements of
the Company made by such accountants, including, without limitation, any
comment letter submitted by such accountants to management in connection with
their annual audit; and

                                    - 32 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         (d)      promptly upon their becoming available, copies of all
financial statements, reports, notices and proxy statements sent or made
available generally by the Company to its security holders or by any Subsidiary
of the Company to its security holders other than the Company or another
Subsidiary, and, promptly upon their becoming effective, and in any event
within 15 days of filing, all regular and periodic reports and all registration
statements and prospectuses that have been filed by the Company or any of its
Subsidiaries with any securities exchange or with the Securities and Exchange
Commission or any Governmental Person succeeding to any of its functions, and
all press releases and other statements made available generally by the Company
or any Subsidiary to the public concerning material developments in the
business of the Company and its Subsidiaries.

         Each document required to be delivered pursuant to Section 6.01(a) or
                                                            ---------------
(b) or Section 6.02(d) shall be deemed to have been delivered on the date on
---    ---------------
which the Company posts such document on the Company's website on the Internet
at the website address listed on Schedule 10.02, or when such document is
                                 --------------
posted on the Securities and Exchange Commission's website at www.sec.gov or on
IntraLinks; provided that the Company shall deliver paper copies of all such
            --------
documents to the Administrative Agent or any Lender that requests the Company
to deliver such paper copies until a request to cease delivering paper copies
is given by the Administrative Agent or such Lender. The Administrative Agent
shall have no obligation to request the delivery or to maintain copies of the
documents referred to above in this paragraph, and in any event shall have no
responsibility to monitor compliance by the Company with any such request for
delivery, and each Lender shall be solely responsible for requesting delivery
to it or maintaining its copies of such documents.

         6.03     Notices. The Company will promptly notify the Administrative
Agent and each Lender:

         (a)      promptly upon any executive officer of the Company obtaining
knowledge (i) of any condition or event which constitutes an Event of Default
or Default, or becoming aware that the Administrative Agent or any Lender has
given any notice or taken any other action with respect to a claimed Event of
Default or Default under this Agreement, (ii) of any condition or event which
would be required to be disclosed in a current report filed by the Company with
the Securities and Exchange Commission on Form 8-K (Items 1, 2, 4 and 6 of such
Form as in effect on the date hereof) if the Company were required to file such
reports under the Exchange Act, (iii) that any Person has given any notice to
the Company or any Subsidiary of the Company or taken any other action with
respect to a claimed default or event or condition of the type referred to in
Section 8.01, (iv) of the institution of any litigation involving an alleged
------------
liability of the Company or any of its Subsidiaries equal to or greater than
$20,000,000 or any adverse determination in any litigation involving a
potential liability of the Company or any of its Subsidiaries equal to or
greater than $20,000,000, or (v) of a Material Adverse Effect, in each case an
Officers' Certificate specifying the nature and period of existence of any such
condition or event, or specifying the notice given or action taken by such
holder or Person and the nature of such claimed default, Event of Default,
Default, event or condition, and what action the Company has taken, is taking
and proposes to take with respect thereto;

                                    - 33 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         (b)      as soon as available but no later than March 31 of each year,
copies of the Company's consolidated financial plan for the then current fiscal
year as customarily prepared for internal use;

         (c)      promptly after the acquisition of any Material Subsidiary,
notice of such acquisition;

         (d)      promptly upon any executive officer of the Company obtaining
knowledge, notice of any change in the ratings on the Company's long-term
unsecured Indebtedness by S&P, Moody's and, Fitch; and

         (e)      with reasonable promptness, such other information and data
with respect to the Company or any of its Subsidiaries as from time to time may
be reasonably requested by any Lender or the Administrative Agent, including
any financial reports regularly prepared by the Company for internal use.

         6.04     Corporate Existence, etc. Except as permitted or not
prohibited in Section 7.03, the Company will at all times preserve and keep in
              ------------
full force and effect its corporate existence and rights and franchises
material to its business and those of each of its Material Subsidiaries;
provided that the corporate existence and the rights and franchises of any
--------
Material Subsidiary may be terminated or permitted to lapse if such termination
or lapse is in the best interest of the Company, is approved by the Board of
Directors of the Company and is not materially disadvantageous to the holder of
any Note.

         6.05     Payment of Taxes and Claims; Tax Consolidation. The Company
will, and will cause each of its Material Subsidiaries to, pay all taxes,
assessments and other governmental charges imposed upon it or any of its
properties or assets or in respect of any of its franchises, business, income
or property before any penalty or interest accrues thereon, and all claims
(including, without limitation, claims for labor, services, materials and
supplies) for sums which have become due and payable and which by law have or
may become a Lien upon any of its properties or assets, prior to the time when
any penalty or fine shall be incurred with respect thereto; provided that no
                                                            --------
such charge or claim need be paid if being contested in good faith by
appropriate proceedings promptly instituted and diligently conducted and if
such reserve or other appropriate provision, if any, as shall be required in
conformity with GAAP shall have been made therefor. The Company will not, nor
will it permit any Material Subsidiary to, file or consent to the filing of any
consolidated income tax return with any Person (other than the Company or a
Subsidiary of the Company).

         6.06     Maintenance of Properties; Insurance. Except as permitted or
not prohibited in Section 7.03, the Company will maintain or cause to be
                  ------------
maintained in good repair, working order and condition all material properties
(other than obsolete properties) used or useful in the business of the Company
and its Material Subsidiaries and from time to time will make or cause to be
made all appropriate repairs, renewals, substitutions and replacements thereof.
The Company will maintain or cause to be maintained, with financially sound and
reputable insurers, insurance with respect to its properties and business and
the properties and business of its Material Subsidiaries against loss or damage
of the kinds customarily insured against by corporations of established
reputation engaged in the same or similar businesses and similarly

                                    - 34 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

situated, of such types and in such amounts as are customarily carried under
similar circumstances by such other corporations; provided that the Company may
maintain a program of self insurance for the Company and its Material
Subsidiaries in accordance with sound business practices.

         6.07     Inspection of Property and Books and Records. The Company
shall maintain and shall cause each of its Subsidiaries to maintain proper
books of record and account, in which full, true and correct entries in
conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Company and
such Subsidiaries.  The Company will permit any authorized representatives
designated by any Lender at the expense of that Lender, to visit and inspect
any of the properties of the Company or any of its Subsidiaries, including its
and their financial and accounting records, and to make copies and take
extracts therefrom (but not records relating to intellectual property), and to
discuss its and their affairs, finances and accounts with its and their
officers and independent public accountants, all upon reasonable notice and at
such reasonable times during normal business hours and as often as may be
reasonably requested.

         6.08     Use of Proceeds of Loans. The Company shall use the proceeds
of Loans for general corporate purposes, including, without limitation, lending
to its Subsidiaries and acquiring other Persons or businesses so long as the
acquisition is approved by the board of directors of the Person being acquired.

         6.09     Environmental Laws. The Company shall maintain and shall cause
each of its Subsidiaries to, conduct its operations and keep and maintain its
property in compliance with all Environmental Laws, except where the failure to
do so could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

         6.10     Subordination Agreements. If from time to time Fisher-Price or
Mattel Sales has any material outstanding obligations owing to any Affiliate of
the Company which has not signed a Fisher-Price Subordination Agreement or a
Mattel Sales Subordination Agreement, respectively, the Company shall cause
such Affiliate to execute deliver a Fisher-Price Subordination Agreement or a
Mattel Sales Subordination Agreement, as the case may be, and deliver to the
Administrative Agent a signature and incumbency certificate of the officers of
each such Affiliate and cause Fisher-Price or Mattel Sales, as the case may be,
to acknowledge each such agreement.

         6.11     Compliance with Laws. The Company shall maintain and shall
cause each of its Subsidiaries to, comply in all material respects with the
requirements of all Governmental Rules applicable to it, except in such
instances in which (i) such requirement of Governmental Rules is being
contested in good faith by appropriate proceedings diligently conducted or a
bona fide dispute exists with respect thereto; or (ii) the failure to comply
therewith could not reasonably be expected to have a Material Adverse Effect.

                                  SECTION 7.
                             NEGATIVE COVENANTS

                                    - 35 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         The Company agrees from the Effective Date until payment in full of
all Obligations and termination of the Aggregate Facilities Commitment and the
Receivables Purchase Agreement, unless Requisite Lenders shall otherwise give
prior written consent, the Company will perform all covenants in this Section 7.
                                                                      ---------

         7.01     Indebtedness. The Company will not, and will not permit any of
its Material Subsidiaries to, directly or indirectly incur, assume, guaranty or
otherwise become directly or indirectly liable with respect to any
Indebtedness; except:
              ------

         (a)      Indebtedness permitted to be secured under Section 7.02;
                                                             ------------

         (b)      Non-Priority Indebtedness of the Company; and

         (c)      Non-Priority Indebtedness of Subsidiaries of the Company not
exceeding 20% of Consolidated Net Worth in the aggregate at any time.

         7.02     Liens. The Company will not, and will not permit any of its
Subsidiaries to, directly or indirectly, create, incur, assume or permit to
exist any Lien on or with respect to any property or asset of the Company or
any Subsidiary except:

         (a)      Liens securing Indebtedness for borrowed money not exceeding,
together with the aggregate outstanding face amount of sales or discounting of
notes or receivables permitted under Section 7.04(e), $100,000,000 in aggregate
                                     ---------------
principal amount at any time;

         (b)      Liens existing on the date hereof;

         (c)      Liens securing Indebtedness under the Receivables Purchase
Agreement;

         (d)      Liens securing Indebtedness under Other Permitted Accounts
Receivable Financing Facilities or otherwise arising under transactions
permitted pursuant to Section 7.04;
                      ------------
         (e)      Liens listed on Schedule 7.02; and
                                  -------------

         (f)      Liens on newly-acquired Capital Assets; provided that such
                                                          --------
Liens on Capital Assets located in the United States shall not secure
Indebtedness for borrowed money in excess of $25,000,000.

         7.03     Restriction on Fundamental Changes.

         (a)      The Company shall not, and shall not permit any of its
Material Subsidiaries to, engage in any material line of business substantially
different from those lines of business carried on by it on the date hereof.

         (b)      the Company shall not, and shall not suffer or permit any of
its Material Subsidiaries to, merge, consolidate with or into, or convey,
transfer, lease or otherwise dispose of whether in one transaction or in a
series of transactions, all or substantially all, of its assets to or in favor
of any Person, except:

                                    - 36 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                  (i)      (A) the Company may merge or consolidate with any
         other Person provided that the Company shall be the continuing or
         surviving corporation, and (B) any Material Subsidiary may merge or
         consolidate with any other Person provided that the Company or a
         Material Subsidiary shall be the continuing or surviving corporation;
         provided, further, that (1) if any transaction shall be between a
         --------  -------
         Subsidiary and a wholly-owned Subsidiary, a wholly-owned Subsidiary
         shall be the continuing or surviving corporation, (2) no Default or
         Event of Default shall result from such merger or consolidation, and
         (3) except where a wholly-owned Subsidiary merges or consolidates
         with another wholly-owned Subsidiary or the Company, no Default or
         Event of Default shall exist prior to such merger or consolidation;
         and

                  (ii)     any Subsidiary of the Company may sell all or
         substantially all of its assets (upon voluntary liquidation or
         otherwise), to the Company or another Wholly-Owned Subsidiary of the
         Company.

         7.04     Sale or Discount of Receivables. The Company will not,
and will not permit any of its Domestic Subsidiaries to, directly or
indirectly, sell with or without recourse, or discount or otherwise
sell for less than the face value thereof any of its notes or
accounts receivable, except:

         (a)      discounts offered in the ordinary course of business for
early payment of accounts receivable and negotiated settlements of
bad debts and disputed accounts receivable in the ordinary course of
business;

         (b)      sales of accounts receivable under the Receivables Purchase
Agreement and agreements entered into in connection therewith;

         (c)      sales of accounts receivable under Other Permitted Accounts
Receivable Financing Facilities;

         (d)      sales of accounts receivable where the Company believes in
good faith that the collectability of such accounts receivable is or may be
jeopardized by the distressed financial condition of the obligor under such
accounts receivable; and

         (e)      sales or discounting of any other notes or receivables, the
aggregate outstanding face amount of which does not exceed, together with the
aggregate outstanding principal amount of secured Indebtedness permitted under
Section 7.02(a), $100,000,000 in the aggregate at any time.
---------------

         7.05     Consolidated Funded Indebtedness to Total Capitalization. The
Company shall not permit the ratio of the sum of (a) Consolidated Funded
Indebtedness plus (b) Combined Purchasers' Investments to the sum of (x)
             ----
Consolidated Funded Indebtedness plus (y) Combined Purchasers' Investments plus
                                 ----                                      ----
(z) the consolidated net worth of the Company and its Subsidiaries on a
consolidated basis determined in conformity with GAAP to exceed 60% at the end
of each of the first three fiscal quarters in each fiscal year and 50% at the
end of each fiscal year.

         7.06     Interest Coverage Ratio. The Company shall not permit, as of
the last day of each fiscal quarter, the ratio of (a) the sum of (i) its net
income from continuing operations, for

                                    - 37 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

the four consecutive fiscal quarters ending on such date, before (A) special
items, (B) minority interest, (C) gains on reacquisition of debt, plus (ii)
                                                                  ----
income taxes accrued for the four consecutive fiscal quarters ending on such
date, plus (iii) interest accrued for the four consecutive fiscal quarters
      ----
ending on such date, excluding capitalized interest and without regard to
interest income plus (iv) depreciation and amortization for the four
                ----
consecutive fiscal quarters ending on such date to (b) interest incurred for
the four consecutive fiscal quarters ending on such date, including capitalized
interest and without regard to interest income, to be less than 3.50 to 1.

         7.07     ERISA. The Company will not, and will not permit any of its
ERISA Affiliates to, permit the aggregate actuarial present value of all
benefit liabilities under all Pension Plans to exceed the aggregate fair market
value of the assets of such Pension Plans allocable to such benefit liabilities
by more than $100,000,000, determined in accordance with the actuarial
assumptions and liabilities set forth in the most recent actuarial valuation
prepared with respect to such Pension Plans.

         7.08     Margin Regulations. No portion of the proceeds of any
borrowing under this Agreement shall be used by the Company for the purpose of
"purchasing" or "carrying" any Margin Stock in violation of Regulation U, of
the Federal Reserve Board (or any other regulation of the Federal Reserve
Board) or the Exchange Act, in each case as in effect on the date or dates of
such borrowing and the use of such proceeds.

         7.09     Independence of Covenants. All covenants hereunder shall be
given independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or be otherwise within the limitations of, another covenant shall
not avoid the occurrence of an Event of Default or Default if such action is
taken or condition exists.

                                  SECTION 8.
                              EVENTS OF DEFAULT

         8.01     Events of Default.  Any of the following conditions or events
shall constitute an "Event of Default:"
                     ----------------

         (a)      Failure to Make Payments When Due. (i) Failure by any Company
Party to pay any required payment of principal under this Agreement or the
Receivables Purchase Agreement or of any Loan or any Notes, when due, whether
at stated maturity, by acceleration, by notice of prepayment or otherwise, (ii)
failure by any Company Party to pay any required payment of interest under this
Agreement or the Receivables Purchase Agreement or on any Loan or any Note or
any fees payable pursuant to Section 2 for a period of five days or more after
                             ---------
the date such payment is due, or (iii) failure by any Company Party to pay any
other amount due under this Agreement or the Receivables Purchase Agreement
within 90 days after written notice thereof; or

                                    - 38 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         (b)      Default in Other Agreements. (i) Failure of the Company or any
of its Material Subsidiaries to pay or any default in the payment of any
principal or interest on any Indebtedness in an amount exceeding $15,000,000 or
any default in any other obligation for the payment of money in an amount in
excess of $15,000,000 beyond any period of grace allowed; or (ii) any breach or
default (unless cured or waived) with respect to any other term of any evidence
of such other Indebtedness for borrowed money in an amount exceeding
$15,000,000 or of any loan agreement, mortgage, indenture or other agreement
relating thereto, and such breach or default continues after the applicable
grace or notice period, if any, specified in the document relating thereto, if
the effect of such failure, default or breach is to cause, or to permit the
holder or holders of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with the giving of
notice if required, such Indebtedness for borrowed money to become or be
declared due prior to its stated maturity; or

         (c)      Breach of Certain Covenants.  Failure of the Company to
perform or comply with any term or condition contained in Sections 6.03(a),
                                                          ----------------
6.04 or Section 7 of this Agreement; or
----    ---------

         (d)      Breach of Warranty.  Any of the Company's, Fisher-Price's or
Mattel Sales' representations or warranties made in any Loan Document in
writing pursuant hereto or in connection herewith shall be false in any
material respect on the date as of which made; or

         (e)      Other Defaults Under Loan Documents. Failure of any Company
Party to perform or comply with any other term or condition contained in any
Loan Document to which it is a party thereto, other than the conditions
referred to in Subsections (a), (b), (c) and (d) above, and such default shall
not have been remedied or waived within 30 days after receipt of notice from
the Administrative Agent or any Lender of such default; or

         (f)      Involuntary Bankruptcy; Appointment of Receiver, etc. (i) A
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company or any of its Material Subsidiaries in an
involuntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, which decree or order is not stayed, or (ii)
any other similar relief shall be granted under any applicable federal or state
or applicable foreign law; a petition for an involuntary case shall be filed
against the Company or any of its Material Subsidiaries under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect or a
decree or order of a court having jurisdiction in the premises for the
appointment of a receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over the Company or any of its Material
Subsidiaries, or over all or substantially all of its property, shall have been
entered; or an interim receiver, trustee or other custodian of the Company or
any of its Material Subsidiaries for all or substantially all of the property
of the Company or any of its Material Subsidiaries shall be appointed
involuntarily; and the continuance of any such events in clause (ii) for 45
days unless dismissed, bonded or discharged; or

         (g)      Voluntary Bankruptcy; Appointment of Receiver, etc. The
Company or any of its Material Subsidiaries shall have an order for relief
entered with respect to it or commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in any involuntary case, or
to the conversion from an involuntary case, under any such law, or shall
consent to the appointment of

                                    - 39 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

or taking possession by a receiver, liquidator, sequestrator, trustee or other
custodian for all or substantially all of its property; the making by the
Company or any of its Material Subsidiaries of any assignment for the benefit
of creditors; or the inability or failure of the Company or any of its Material
Subsidiaries, or the admission by the Company or any of its Material
Subsidiaries in writing of its inability, to generally pay its debts as such
debts become due; or the Board of Directors of the Company or any of its
Material Subsidiaries adopts any resolution or otherwise takes action to
approve any of the foregoing; or

         (h)      Judgments. Any final money judgment involving in any case an
amount in excess of $20,000,000 or in excess of $40,000,000 in the aggregate at
any one time for all final judgments shall be entered or filed against the
Company or any Material Subsidiary or any of their respective assets and shall
remain undischarged, unvacated, unbonded or unstayed for a period of 45 days or
in any event later than five days prior to the date of any proposed sale
thereunder; or

         (i)      Dissolution. Any order, judgment or decree shall be entered
against the Company or any Material Subsidiary decreeing the dissolution or
split up of the Company and such order shall remain undischarged or unstayed
for a period in excess of 30 days; or

         (j)      ERISA. (i) Any Pension Plan maintained by the Company or any

of its ERISA Affiliates shall be terminated within the meaning of Title IV of
ERISA, or (ii) a trustee shall be appointed by an appropriate United States
district court to administer any Pension Plan, or (iii) the Pension Benefit
Guaranty Corporation (or any successor thereto) shall institute proceedings to
terminate any Pension Plan or to appoint a trustee to administer any Pension
Plan, or (iv) the Company or any of its ERISA Affiliates shall withdraw (under
Section 4063 of ERISA) from a Pension Plan, if, as of the date of the event
listed in clauses (i)-(iv) above or any subsequent date, any of the Company or
its ERISA Affiliates has any liability (such liability to include, without
limitation, any liability to the Pension Benefit Guaranty Corporation, or any
successor thereto, or to any other party under Sections 4062, 4063 or 4064 of
ERISA or any other provision of law) resulting from or otherwise associated
with the events listed in clauses (i)-(iv) above for unfunded guarantied vested
benefits under the Pension Plans which exceeds the current value of assets
accumulated in such Pension Plan by more than $100,000,000; or

         (k)      Loss of Property. All, or a substantial part of, the property,
assets or business of the Company or any Material Subsidiary shall be condemned
or seized and such condemnation or seizure shall have (after taking into
account any insurance or condemnation award) a Material Adverse Effect; or

         (l)      Cessation of Business.  The Company or any Material Subsidiary
shall at any time voluntarily or involuntarily suspend its business or a
substantial part thereof which would constitute a substantial part of, and
would have a Material Adverse Effect; or

         (m)      Servicer Default.  A Servicer Default (as defined in the
Receivables Purchase Agreement) shall occur and be continuing; or

         (n)      Change of Control.  There occurs any Change of Control.

                                    - 40 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         8.02     Remedies. If any Event of Default occurs, the Administrative
Agent shall, at the request of, or may, with the consent of, the Requisite
Lenders, (a) declare the Commitment of each Lender to be terminated, whereupon
such Commitments shall forthwith be terminated; (b) declare the unpaid
principal amount of all outstanding Loans, all interest accrued and unpaid
thereon, and all other amounts owing or payable hereunder or under any other
Loan Document to be immediately due and payable; without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived
by the Company; and (c) exercise on behalf of itself and the Lenders all rights
and remedies available to it and the Lenders under the Loan Documents or
applicable law; provided, however, that upon the occurrence of any event
                --------  -------
specified in paragraph (f) or (g) of Section 8.01 above (in the case of clause
                                     ------------
(ii) of paragraph (f) upon the expiration of the 45-day period mentioned
therein), the obligation of each Lender to make Loans shall automatically
terminate and the unpaid principal amount of all outstanding Loans and all
interest and other amounts as aforesaid shall automatically become due and
payable without further act of the Administrative Agent or any Lender.

         8.03     Rights Not Exclusive. The rights provided for in this
Agreement and the other Loan Documents are cumulative and are not exclusive of
any other rights, powers, privileges or remedies provided by law or in equity,
or under any other instrument, document or agreement now existing or hereafter
arising, including without limitation, under the Transaction Documents.

                                  SECTION 9.
                           THE ADMINISTRATIVE AGENT

         9.01     Appointment and Authorization. Each Lender hereby irrevocably
appoints, designates and authorizes the Administrative Agent to take such
action on its behalf under the provisions of this Agreement and each other Loan
Document and to exercise such powers and perform such duties as are expressly
delegated to it by the terms of this Agreement or any other Loan Document,
together with such powers as are reasonably incidental thereto. Notwithstanding
any provision to the contrary contained elsewhere in this Agreement or in any
other Loan Document, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall the
Administrative Agent have or be deemed to have any fiduciary relationship with
any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against the Administrative Agent.

         9.02     Delegation of Duties. The Administrative Agent may execute
any of its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. The Administrative
Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects with reasonable care.

         9.03     Liability of Administrative Agent. None of the Administrative
Agent-Related Persons shall (i) be liable for any action taken or omitted to be
taken by any of them under or in connection with this Agreement or any other
Loan Document (except for its own gross negligence or willful misconduct), or
(ii) be responsible in any manner to any of the Lenders for

                                    - 41 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

any recital, statement, representation or warranty made by the Company or any
Subsidiary or Affiliate of the Company, or any officer thereof, contained in
this Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Agreement or any other
Loan Document, or for the value of any Collateral or the validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document, or for any failure of the Company or any other party
to any Loan Document to perform its obligations hereunder or thereunder. No
Administrative Agent-Related Person shall be under any obligation to any Lender
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the Properties, books or records of the Company or any
of the Company's Subsidiaries or Affiliates.

         9.04     RELIANCE BY ADMINISTRATIVE AGENT.

         (a)      The Administrative Agent shall be entitled to rely, and shall
be fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone
message, statement or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons, and upon advice and statements of legal counsel (including counsel
to the Company), independent accountants and other experts selected by the
Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Requisite Lenders as it deems appropriate and, if it so requests, it shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement or any other Loan Document in accordance with a request or consent of
the Requisite Lenders or all Lenders, as applicable, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all of
the Lenders.

         (b)      For purposes of determining compliance with the conditions
specified in Sections 4.01 and 4.02, each Lender that has executed this
             -------------     ----
Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter either sent by the Administrative
Agent to such Lender for consent, approval, acceptance or satisfaction, or
required thereunder to be consented to or approved by or acceptable or
satisfactory to the Lender, unless an officer of the Administrative Agent
responsible for the transactions contemplated by the Loan Documents shall have
received notice from the Lender prior to any borrowing specifying its objection
thereto and either such objection shall not have been withdrawn by notice to
the Administrative Agent to that effect or the Lender shall not have made
available to the Administrative Agent the Lender's ratable portion of such
borrowing.

         9.05     Notice of Default. The Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Lenders, unless the Administrative Agent shall have received written notice
from a Lender or the Company referring to this Agreement, describing such

                                    - 42 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

Default or Event of Default and stating that such notice is a "notice of
default". In the event that the Administrative Agent receives such a notice,
the Administrative Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be requested by the Requisite Lenders in accordance
with Section 8; provided, however, that unless and until the Administrative
     ---------  --------  -------
Agent shall have received any such request, the Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall deem
advisable or in the best interest of the Lenders.

         9.06     Credit Decision. Each Lender expressly acknowledges that none
of the Administrative Agent-Related Persons has made any representation or
warranty to it and that no act by the Administrative Agent hereinafter taken,
including any review of the affairs of the Company and its Subsidiaries shall
be deemed to constitute any representation or warranty by the Administrative
Agent to any Lender. Each Lender represents to the Administrative Agent that it
has, independently and without reliance upon the Administrative Agent and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of the Company and
its Subsidiaries, and all applicable bank regulatory laws relating to the
transactions contemplated thereby, and made its own decision to enter into this
Agreement and extend credit to the Company hereunder. Each Lender also
represents that it will, independently and without reliance upon the
Administrative Agent and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigations as it deems
necessary to inform itself as to the business, prospects, operations, property,
financial and other condition and creditworthiness of the Company. Except for
notices, reports and other documents expressly herein required to be furnished
to the Lenders by the Administrative Agent, the Administrative Agent shall not
have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of the Company which may come into the
possession of any of the Administrative Agent-Related Persons.

         9.07     Indemnification. Whether or not the transactions contemplated
hereby shall be consummated, the Lenders shall indemnify upon demand the
Administrative Agent-Related Persons (to the extent not reimbursed by or on
behalf of the Company and without limiting the obligation of the Company to do
so), ratably from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses and
disbursements of any kind whatsoever which may at any time (including at any
time following the repayment of the Loans and the termination or resignation of
the related Administrative Agent) be imposed on, incurred by or asserted
against any such Person any way relating to or arising out of this Agreement or
any document contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by
any such Person under or in connection with any of the foregoing; provided,
                                                                  --------
however, that no Lender shall be liable for the payment to the Administrative
-------
Agent-Related Persons of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or

                                    - 43 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

disbursements resulting from such Person's gross negligence or willful
misconduct. The obligation of the Lenders in this Section shall survive the
payment of all Obligations hereunder.

         9.08     Administrative Agent in Individual Capacity. Bank of America
and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire equity interests in and generally engage in
any kind of banking, trust, financial advisory or other business with the
Company and its Subsidiaries and Affiliates as though Bank of America were not
the Administrative Agent hereunder and without notice to or consent of the
Lenders.  With respect to its Loans, Bank of America shall have the same rights
and powers under this Agreement as any other Lender and may exercise the same
as though it were not the Administrative Agent, and the terms "Lender" and
"Lenders" shall include Bank of America in its individual capacity.

         9.09     Successor Administrative Agent. The Administrative Agent may
resign as Administrative Agent upon 30 days' notice to the Lenders; provided
that any such resignation by Bank of America shall also constitute its
resignation as Administrative Agent under the Receivables Purchase Agreement.
If the Administrative Agent shall resign as Administrative Agent under this
Agreement, the Requisite Lenders shall appoint from among the Lenders a
successor administrative agent for the Lenders which successor administrative
agent shall be consented to by the Company at all times other than during the
existence of an Event of Default (which consent of the Company shall not be
unreasonably withheld or delayed). If no successor administrative agent is
appointed prior to the effective date of the resignation of the Administrative
Agent, the Administrative Agent may appoint, after consulting with the Lenders
and the Company, a successor administrative agent from among the Lenders. Upon
the acceptance of its appointment as successor administrative agent hereunder,
the Person acting as such successor administrative agent shall succeed to all
the rights, powers and duties of the retiring Administrative Agent, and the
term "Administrative Agent" shall mean such successor administrative agent and
the retiring Administrative Agent's appointment, powers and duties as
Administrative Agent shall be terminated. After any retiring Administrative
Agent's resignation hereunder as Administrative Agent, the provisions of this
Section 9 and Sections 10.04 and 10.05 shall inure to its benefit as to any
---------     --------------     -----
actions taken or omitted to be taken by it while it was Administrative Agent
under this Agreement. If no successor administrative agent has accepted
appointment as Administrative Agent by the date which is 30 days following a
retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Requisite Lenders appoint a
successor agent as provided for above.

         9.10     Other Agents; Lead Managers. None of the Lenders identified on
the facing page or signature pages of this Agreement as a "syndication agent,"
"documentation agent," "co-agent" or "lead manager" shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than those applicable to all Lenders as such. Without limiting the foregoing,
none of the Lenders so identified shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied,
and will not rely, on any of the Lenders so identified in deciding to enter
into this Agreement or in taking or not taking action hereunder.

                                    - 44 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                                  SECTION 10.
                                 MISCELLANEOUS

         10.01    Amendments and Waivers. No amendment or waiver of any
provision of this Agreement or any other Loan Document, and no consent with
respect to any departure by the Company therefrom, shall be effective unless
the same shall be in writing and signed by the Requisite Lenders and the
Company, and acknowledged by the Administrative Agent, and then such waiver
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no such waiver, amendment, or consent
                 --------  -------
shall, unless in writing and signed by each of the Lenders directly affected
thereby and the Company, and acknowledged by the Administrative Agent, do any
of the following:

         (a)      increase or extend any Lender's Commitment or subject any
Lender to any additional obligations;

         (b)      postpone or delay any date fixed for any payment of principal,
interest, fees or other amounts due to the Lenders (or any of them) hereunder
or under any Loan Document;

         (c)      reduce the principal of, or the rate of interest specified
herein on any Loan, or of any fees or other amounts payable hereunder or under
any Loan Document;

         (d)      change the percentage of the Aggregate Facilities Commitment
or of the aggregate unpaid principal amount of the Loans and Purchasers'
Investment which is required for the Lenders or any of them to take any action
hereunder without the written consent of all of the Lenders;

         (e)      amend this Section 10.01 or Section 2.13; and
                             -------------    ------------

         (f)      amend Section 2.01, the definitions of "Pro Rata Share" or
                        ------------
"Requisite Lenders;" or

         (g)      discharge any Guarantor;

provided further, that no amendment, waiver or consent shall (i), unless in
----------------
writing and signed by the Administrative Agent in addition to the Requisite
Lenders or all the Lenders, as the case may be, affect the rights or duties of
the Administrative Agent under any Loan Document, or (ii) have the effect of
making any Lender's Pro Rata Share hereunder a different percentage than its
Percentage under the Receivables Purchase Agreement. No notice to or demand on
the Company in any case shall entitle the Company to any other or further
notice or demand in similar or other circumstances. Any amendment,
modification, termination, waiver or consent effected in accordance with this
Section 10.01 shall be binding upon each holder of any Notes at the time
outstanding, each future holder of the Notes and, if signed by the Company, on
the Company.  Notwithstanding anything to the contrary herein, no Defaulting
Lender shall have any right to approve or disapprove any amendment, waiver or
consent hereunder, except that the Commitment of such Lender may not be
increased or extended nor the principal owing to such Lender be reduced without
the consent of such Lender.

                                    - 45 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         10.02    Notices and Other Communications; Facsimile Copies.

         (a)      General. Unless otherwise expressly provided herein, all
                  -------
notices and other communications provided for hereunder shall be in writing
(including by facsimile transmission) and mailed, faxed or delivered, to the
address, facsimile number or (subject to subsection (c) below) electronic mail
address specified for notices on Schedule 10.02; or, in the case of the Company
                                 --------------
or the Administrative Agent, to such other address as shall be designated by
such party in a notice to the other parties, and in the case of any other
party, to such other address as shall be designated by such party in a notice
to the Company or the Administrative Agent. All such notices and other
communications shall be deemed to be given or made upon the earlier to occur of
(i) actual receipt by the intended recipient and (ii) (A) if delivered by hand
or by courier, when signed for by the intended recipient; (B) if delivered by
mail, upon the earlier of receipt and four Business Days after deposit in the
mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt
has been confirmed by telephone during a Business Day; and (D) if delivered by
electronic mail (which form of delivery is subject to the provisions of
subsection (c) below), when delivered; provided, however, that notices and
                                       --------  -------
other communications to the Administrative Agent pursuant to Section 2 shall
not be effective until actually received by such Person. Any notice or other
communication permitted to be given, made or confirmed by telephone hereunder
shall be given, made or confirmed by means of a telephone call to the intended
recipient at the number specified on Schedule 10.02, it being understood and
                                     --------------
agreed that a voicemail message shall in no event be effective as a notice,
communication or confirmation hereunder.

         (b)      Effectiveness of Facsimile Documents and Signatures. Loan
                  ---------------------------------------------------
Documents may be transmitted and/or signed by facsimile. The effectiveness of
any such documents and signatures shall, subject to applicable Governmental
Rule, have the same force and effect as manually-signed originals and shall be
binding on all Loan Parties, the Administrative Agent and the Lenders. The
Administrative Agent may also require that any such documents and signatures be
confirmed by a manually-signed original thereof; provided, however, that the
                                                 --------  -------
failure to request or deliver the same shall not limit the effectiveness of any
facsimile document or signature.

         (c)      Limited Use of Electronic Mail. Electronic mail and Internet
                  ------------------------------
and intranet websites may be used only to distribute routine communications,
such as financial statements and other information as provided in Section 6.02,
                                                                  ------------
and to distribute Loan Documents for execution by the parties thereto, and may
not be used for any other purpose.

         (d)      Reliance by Administrative Agent and Lenders. The
                  --------------------------------------------
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including telephonic Notices of Borrowing and Notices of
Conversion/Continuation) purportedly given by or on behalf of the Company even
if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein,
or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof. The Company shall indemnify each Administrative
Agent-Related Person and each Lender from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Company. All telephonic notices to and
other communications with the Administrative Agent pursuant to Section 2 may be
                                                               ---------
recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

                                    - 46 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         10.03    Failure or Indulgence Not Waiver; Remedies Cumulative. No
                  -----------------------------------------------------
failure or delay on the part of any Lender or any holder of any Note in the
exercise of any power, right or privilege hereunder or under any Note shall
impair such power, right or privilege or be construed to be a waiver of any
default or acquiescence therein, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privilege. All rights and remedies existing
under this Agreement or any Notes are cumulative to and not exclusive of, any
rights or remedies otherwise available.

         10.04    Fees and Expenses. Whether or not the transactions
                  -----------------
contemplated hereby shall be consummated, the Company agrees to pay within 30
days after submission of an invoice therefor (a) all the actual and reasonable
out-of-pocket costs and expenses of preparation of the Loan Documents and all
the costs of furnishing all opinions by counsel for the Company (including
without limitation any opinions requested by the Lenders as to any legal
matters arising hereunder), and of the Company's performance of and compliance
with all agreements and conditions contained therein on its part to be
performed or complied with; (b) the cost of delivering to the Lenders any Notes
pursuant to the provisions of this Agreement; (c) the reasonable fees, expenses
and disbursements of the Administrative Agent and the Administrative Agent's
counsel (including the allocated cost of Administrative Agent's inhouse counsel
and staff) in connection with the negotiation, preparation, execution and
administration of the Loan Documents and the Loans and any amendments and
waivers hereto; and (d) after the occurrence of an Event of Default, all actual
and reasonable out-of-pocket costs and expenses (including reasonable fees of
law firms engaged by the Lenders and the reasonable estimate of the allocable
costs of counsel in the staff of legal departments of the Lenders and costs of
settlement) incurred by the Administrative Agent and each Lender in enforcing
any Obligations or in collecting any payments due from the Company hereunder or
under any Notes by reason of such Event of Default or in connection with any
refinancing or restructuring of any Loan Document in the nature of a "work-out"
or of any insolvency or bankruptcy proceeding.

         10.05    Indemnity. Whether or not the transactions contemplated hereby
are consummated, the Company shall indemnify and hold the Administrative
Agent-Related Persons, and each Lender and each of its respective officers,
directors, employees, counsel, agents and attorneys-in-fact (each, an
"Indemnified Person") harmless from and against any and all liabilities,
 ------------------
obligations, losses, damages, penalties, actions, judgments, suits, costs,
charges, expenses and disbursements (including reasonable fees and
out-of-pocket expenses of counsel and the allocated cost of internal counsel)
of any kind or nature whatsoever which may at any time (including at any time
following repayment of the Loans and the termination, resignation or
replacement of the Administrative Agent or replacement of any Lender) be
imposed on, incurred by or asserted against any such Person arising out of this
Agreement or any document contemplated by or referred to herein, or the
transactions contemplated hereby, the Commitments, the use or proposed use of
the proceeds from the Loans, or any action taken or omitted by any such Person
under or in connection with any of the foregoing, including with respect to any
investigation, litigation or proceeding (including any proceeding of the type
referred to in Section 8.01(f) or (g) or appellate proceeding) related to or
               ---------------
arising out of this Agreement or the Loans or the use of the proceeds thereof,
whether or not any Indemnified Person is a party thereto (all the foregoing,
collectively, the "Indemnified Liabilities"); provided, that the Company shall
                   -----------------------    --------
have no obligation hereunder to any Indemnified Person with respect to

                                    - 47 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

Indemnified Liabilities resulting from the gross negligence or willful
misconduct of such Indemnified Person. No Indemnified Person shall be liable
for any damages arising from the use by others of any information or other
materials obtained through IntraLinks or other similar information transmission
systems in connection with this Agreement; provided, that the Company shall
                                           --------
have no obligation hereunder to any Indemnified Person with respect to such
damages resulting from the gross negligence or willful misconduct of such
Indemnified Person. No Indemnified Person shall have any liability for any
indirect or consequential damages relating to this Agreement or any other Loan
Document or arising out of its activities in connection herewith or therewith
(whether before or after the Closing Date).

         The agreements in this Section shall survive payment of all other
Obligations.

         10.06    Set Off. In addition to any rights now or hereafter granted
under applicable law and not by way of limitation of any such rights, upon the
occurrence of and during the continuance of any Event of Default (after the
giving of any notice and the expiration of any grace period contained in the
definition thereof), each Lender and each subsequent holder of any Note is
hereby authorized by the Company at any time or from time to time, without
notice to the Company, or to any other Person, any such notice being hereby
expressly waived, to set off and to appropriate any and all deposits
(including, but not limited to, indebtedness evidenced by certificates of
deposit, whether matured or unmatured but not including trust accounts) and any
other indebtedness at any time held or owing by that Lender or that subsequent
holder to or for the credit or the account of the Company and to apply any such
amounts in accordance with the provisions of Section 2.13 irrespective of
                                             ------------
whether or not that Lender or that subsequent holder shall have made any demand
hereunder and whether or not such deposits or other indebtedness are otherwise
fully secured and Lender and that subsequent holder is hereby irrevocably
authorized to permit such setoff and appropriation. Each Lender agrees promptly
to notify the Company and the Administrative Agent after any such set-off and
application made by such Lender; provided, however, that the failure to give
                                 --------  -------
such notice shall not affect the validity of such set-off and application.

         10.07    Survival of Warranties and of Certain Agreements.

         (a)      All agreements, representations and warranties made herein
shall survive the execution and delivery of this Agreement, the making of the
Loans hereunder and the execution and delivery of any Notes.

         (b)      Notwithstanding anything in this Agreement or implied by law
to the contrary, the agreements of the Company set forth in Sections 2.09, 3,
                                                            -------------  -
10.04 and 10.05 and the agreements of the Lenders set forth in Sections 2.13,
-----     -----                                                -------------
9, 10.06 and 10.08 shall survive the payment of the Obligations by the Company
-  -----     -----
and the termination of this Agreement.

                                    - 48 -
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         10.08    SUCCESSORS AND ASSIGNS.

         (a)      The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that the Company may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by the Company
without such consent shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to
the extent expressly contemplated hereby, the Indemnitees) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

         (b)      From time to time following the Effective Date, each Lender
may assign to one or more Eligible Assignees all or any portion of its Loan
Commitment and outstanding Loans; provided that (i) such Lender concurrently
                                  --------
assigns a ratable portion of its Purchaser Commitment and its Percentage of the
Purchasers' Investment under the Receivables Purchase Agreement, (ii) such
assignment, if not to a Lender or an Affiliate of the assigning Lender, shall
be consented to by the Company at all times other than during the existence of
a Default or Event of Default and by the Administrative Agent (which approval
of the Company shall not be unreasonably withheld or delayed), (iii) a copy of
a duly signed and completed Assignment and Assumption shall be delivered to the
Administrative Agent and the Company, (iv) except in the case of an assignment
(A) to an Affiliate of the assigning Lender or to another Lender or an Approved
Fund (as defined in subsection (g) of this Section) with respect to a Lender or
(B) of the entire remaining Commitment of the assigning Lender, the portion of
the Aggregate Facilities Commitment assigned shall not be less than
$10,000,000, (v) the assigning Lender shall have delivered any Note or Notes
subject to the assignment to the Administrative Agent and (vi) the effective
date of any such assignment shall be as specified in the Assignment and
Assumption, but not earlier than the date which is five Business Days after the
date the Administrative Agent has received the Assignment and Assumption. Upon
satisfaction of the conditions set forth in the prior sentence, any forms
required by Section 10.15 and payment of the requisite fee described below, the
            -------------
assignee named therein shall be a Lender for all purposes of this Agreement
effective as of the specified effective date to the extent of the Assigned
Interest (as defined in such Assignment and Assumption), and the assigning
Lender shall be released from any further obligations under this Agreement to
the extent of such Assigned Interest. Until satisfaction of the conditions set
forth herein to any assignment, the Company and Administrative Agent may
continue to deal solely and directly with the assigning Lender in connection
the Assigned Interest. Upon request following satisfaction of the conditions
set forth herein to any assignment, the Company shall execute and deliver new
or replacement Notes to the assigning Lender and the assignee Lender to
evidence Loans made by them. The Administrative Agent's consent to any
assignment shall not be deemed to constitute any representation or warranty by
any Administrative Agent-Related Person as to any matter.

         (c)      After receipt of a completed Assignment and Assumption, and
receipt of an assignment fee of $3,500 (which fee includes any assignment fees
in connection with the concurrent assignment of interests under the Receivables
Purchase Agreement) from such Eligible Assignee or such assigning Lender
(including in the case of assignments to Affiliates of

                                     -49-
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

assigning Lenders), the Administrative Agent shall, promptly following the
effective date thereof, provide to the Company and Lenders a revised Schedule
                                                                     --------
10.02 giving effect thereto.
-----

         (d)      Upon advance written notice to the Company, any Lender may at
any time sell to one or more commercial banks or other Persons not Affiliates
of the Company (a "Participant") participating interests in any Loans, the
                   -----------
Commitment of that Lender and the other interests of that Lender (the
"originating Lender") hereunder and under the other Loan Documents; provided,
 ------------------                                                 --------
however, that (i) such Lender shall concurrently with any sale of a
-------
participation herein sell a ratable participation in the Receivables Purchase
Agreement and thereafter cause any such participation herein to remain ratable
with such participation in the Receivables Purchase Agreement, (ii) the
originating Lender's obligations under this Agreement shall remain unchanged,
(iii) the originating Lender shall remain solely responsible for the
performance of such obligations, (iv) the Company and the Administrative Agent
shall continue to deal solely and directly with the originating Lender in
connection with the originating Lender's rights and obligations under this
Agreement and the other Loan Documents, and (v) no Lender shall transfer or
grant any participating interest under which the Participant shall have rights
to approve any amendment to, or any consent or waiver with respect to this
Agreement except to the extent such amendment, consent or waiver would require
unanimous consent as described in the first proviso to Section 10.01. The
                                                       -------------
Company hereby acknowledges and agrees that any such disposition will give rise
to a direct obligation of the Company to the Participant with respect to, and
the Participant shall be entitled to the benefit of, Sections 3.01, 3.02, 3.04,
                                                     -------------  ----  ----
3.05 and 10.05 as if it were a "Lender." To the extent permitted by law, each
----     -----
Participant also shall be entitled to the benefits of Section 10.06 as though
                                                      -------------
it were a Lender, provided such Participant agrees to be subject to Section
                                                                    -------
2.13 as though it were a Lender.
----
         (e)      A Participant shall not be entitled to receive any greater
payment under Section 3.01, 3.02, 3.04, or 3.05 or 10.05 than the applicable
              ------------  ----  ----     ----    -----
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with the Company's prior written consent. A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 3.01 unless the Company is notified of the participation
            ------------
sold to such Participant and such Participant agrees, for the benefit of the
Company, to comply with Section 10.15 as though it were a Lender.
                        -------------

         (f)      Notwithstanding any other provision in this Agreement, any
Lender may at any time create a security interest in, or pledge, all or any
portion of its rights under and interest in this Agreement and the Note(s) held
by it in favor of any Federal Reserve Bank in accordance with Regulation A of
the FRB or U.S. Treasury Regulation 31 CFR ss.203.14, and such Federal Reserve
Bank may enforce such pledge or security interest in any manner permitted under
applicable law.

         (g)      As used herein, the following terms have the following
                  meanings:

                  "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
                   -----------------
         Lender; (iii) an Approved Fund; and (iv) any other Person (other than a
         natural person) approved by (A) the Administrative Agent and (B) unless
         an Event of Default has occurred and is continuing, the Company (each
         such approval not to be unreasonably withheld or

                                     -50-
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         delayed); provided that notwithstanding the foregoing, "Eligible
                   --------
         Assignee" shall not include the Company or any of the Company's
         Affiliates or Subsidiaries.

                  "Fund" means any Person (other than a natural person) that is
                   ----
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

                  "Approved Fund" means any Fund that is administered or managed
                   -------------
         by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an
         Affiliate of an entity that administers or manages a Lender.

         (h)      Each Lender agrees to take normal and reasonable precautions
and exercise due care to maintain the confidentiality of all information
provided to it by the Company or any Subsidiary of the Company, or by the
Administrative Agent on such Company's or Subsidiary's behalf, in connection
with this Agreement or any other Loan Document, and neither it nor any of its
Affiliates shall use any such information for any purpose or in any manner
other than pursuant to the terms contemplated by this Agreement and the
Receivables Purchase Agreement; except to the extent such information (i) was
or becomes generally available to the public other than as a result of a
disclosure by the Lender, or (ii) was or becomes available on a
non-confidential basis from a source other than the Company, provided that such
source is not bound by a confidentiality agreement with the Company known to
the Lender; provided, however, that any Lender may disclose such information
            --------  -------
(A) at the request or pursuant to any requirement of any Governmental Person to
which the Lender is subject or in connection with an examination of such Lender
by any such authority; (B) pursuant to subpoena or other court process and when
required to do so in accordance with the provisions of any applicable
Governmental Rule; provided, that a Lender shall disclose only the information
                   --------
required by such request and shall notify the Company in advance of such
disclosure so that the Company may seek an appropriate protective order, (C) to
such Lender's Affiliates and independent auditors and other professional
advisors provided such Persons are obligated to keep such information
confidential, (D) to any other party to this Agreement, and (E) if an Event of
Default exists, in connection with the exercise of any remedies hereunder or
any suit, action or proceeding relating to any Loan Document or Transaction
Document or the enforcement of rights hereunder or thereunder. Notwithstanding
the foregoing, the Company authorizes each Lender to disclose to any assignee
or Participant and to any prospective assignee or Participant, such financial
and other information in such Lender's possession concerning the Company or its
Subsidiaries which has been delivered to Administrative Agent or the Lenders
pursuant to this Agreement or which has been delivered to the Administrative
Agent or the Lenders by the Company in connection with the Lenders' credit
evaluation of the Company prior to entering into this Agreement; provided that,
                                                                 --------
unless otherwise agreed by the Company, such assignee or Participant agrees in
writing to such Lender to keep such information confidential to the same extent
required of the Lenders hereunder.

         10.09    Severability. In case any provision in or obligation under
this Agreement or any Notes shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

                                     -51-
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         10.10    Obligations Several. The obligation of each Lender hereunder
is several, and no Lender shall be responsible for any obligation or commitment
of any other Lender hereunder. Nothing contained in this Agreement and no
action taken by Lenders pursuant hereto shall be deemed to constitute Lenders
to be a partnership, an association, a joint venture or another entity.

         10.11    Certain Changes. If (a) any changes in accounting principles
from those used in the preparation of the financial statements referred to in
Section 5.08 hereafter occasioned by the promulgation of rules, regulations,
------------
pronouncements and opinions by or requested by the Financial Accounting
Standards Board or the American Institute of Certified Public Accounts (or
successors thereto or agencies with similar functions) result in a change in
the method of calculation of financial covenants, standards or terms found in
Sections 1, 6 and 7, or (b) the Company changes the manner in which its fiscal
----------  -     -
year, fiscal quarters and fiscal months are determined, the parties hereto
agree to enter into negotiations in order to amend the appropriate provisions
of this Agreement so as to equitably reflect such changes with the desired
result that the criteria for evaluating the Company's financial condition and
operations or establishing limitations hereunder shall be the same after such
changes as if such changes had not been made.

         10.12    Headings. Section headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of
this Agreement for any other purpose or be given any substantive effect.

         10.13    Counterparts. This Agreement and any amendments, waivers,
consents, or supplements may be executed in any number of counterparts, and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.

         10.14    Integration. This Agreement, together with the other Loan
Documents, comprises the complete and integrated agreement of the parties on
the subject matter hereof and thereof and supersedes all prior agreements,
written or oral, on such subject matter. In the event of any conflict between
the provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion of
                                            --------
supplemental rights or remedies in favor of the Administrative Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this
Agreement. Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.

         10.15    Tax Forms. (a) Each Lender that is not a "United States
person" within the meaning of Section 7701(a)(30) of the Code (a "Foreign
                                                                  -------
Lender") shall deliver to the Administrative Agent, prior to receipt of any
------
payment subject to withholding under the Code (or upon accepting an assignment
of an interest herein), two duly signed completed copies of either IRS Form
W-8BEN or any successor thereto (relating to such Person and entitling it to an
exemption from, or reduction of, withholding tax on all payments to be made to
such Person by the Company pursuant to this Agreement) or IRS Form W-8ECI or
any successor thereto (relating to all payments to be made to such Person by
the Company pursuant to this Agreement) or such other evidence satisfactory to
the Company and the Administrative Agent that such Person is entitled to an
exemption from, or reduction of, U.S. withholding tax. Thereafter and from time
to time, each such Person shall (i) promptly submit to the Administrative Agent
such

                                     -52-
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United
States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to
the Company and the Administrative Agent of any available exemption from or
reduction of, United States withholding taxes in respect of all payments to be
made to such Person by the Company pursuant to this Agreement, (ii) promptly
notify the Administrative Agent of any change in circumstances which would
modify or render invalid any claimed exemption or reduction, and (iii) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable
Governmental Rules that the Company make any deduction or withholding for taxes
from amounts payable to such Person. If such Person fails to deliver the above
forms or other documentation, then the Administrative Agent may withhold from
any interest payment to such Person an amount equivalent to the applicable
withholding tax imposed by Sections 1441 and 1442 of the Code, without
reduction.

         (b)      Upon the request of the Administrative Agent, each Lender that
is a "United States person" within the meaning of Section 7701(a)(30) of the
Code shall deliver to the Administrative Agent two duly signed completed copies
of IRS Form W-9. If such Lender fails to deliver such forms, then the
Administrative Agent may withhold from any interest payment to such Lender an
amount equivalent to the applicable back-up withholding tax imposed by the
Code, without reduction.

         (c)      If any Governmental Authority asserts that the Administrative
Agent did not properly withhold or backup withhold, as the case may be, any tax
or other amount from payments made to or for the account of any Lender, such
Lender shall indemnify the Administrative Agent therefor, including all
penalties and interest, any taxes imposed by any jurisdiction on the amounts
payable to the Administrative Agent under this Section, and costs and expenses
(including Attorney Costs) of the Administrative Agent; provided, that no
                                                        --------
Lender shall have any obligation hereunder to the Administrative Agent with
respect to amounts resulting from the gross negligence or willful misconduct of
the Administrative Agent.. The obligation of the Lenders under this Section
shall survive the termination of the Aggregate Facilities Commitment, repayment
of all Obligations and the resignation of the Administrative Agent.

         10.16    APPLICABLE LAW.

         (a)      This Agreement, any Notes and the other Loan Documents shall
be governed by, and shall be construed and enforced in accordance with, the
internal laws of the State of California, without regard to conflicts of laws
principles.

         (b)      Any legal action or proceeding with respect to this Agreement
and any other Loan Documents may be brought in the courts of the State of
California or of the United States for the Central District of California, and
by execution and delivery of this Agreement, each of the Company, the
Administrative Agent and the Lenders consents, for itself and in respect of its
property, to the non-exclusive jurisdiction of those courts. Each of the
Company, the Administrative Agent and the Lenders irrevocably waives any
objection, including any objection

                                     -53-
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

to the laying of venue or based on the grounds of forum non conveniens, which
it may now or hereafter have to the bringing of any action or proceeding in
such jurisdiction in respect of this Agreement or any document related hereto.
The Company, the Administrative Agent and the Lenders each waive personal
service of any summons, complaint or other process, which may be made by any
other means permitted by California law.

         10.17    Waiver of Right to Trial by Jury. EACH PARTY TO THIS AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT
OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         10.18    Amendment and Restatement. This Agreement amends and restates
the Existing Multi-Year Agreement. All notes issued under the Existing
Multi-Year Credit Agreement are hereby cancelled.

                                     -54-
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Credit Agreement to be duly executed and delivered by their proper and
duly authorized officers as of the day and year first above written.

                             MATTEL, INC.

                             By:              /s/ WILLIAM STAVRO
                                ------------------------------------------------
                                               William Stavro
                                         Senior Vice President and
                                                 Treasurer

                                     S - 1
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             BANK OF AMERICA, N.A.,
                               as Administrative Agent and a Lender

                             By:               /s/ CASEY COSGROVE
                                ------------------------------------------------
                                               Casey Cosgrove
                                               Vice President

                                     S - 2
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             BNP PARIBAS,
                             as a Documentation Agent and a Lender

                             By:              /s/ JANICE S.H. HO
                                ------------------------------------------------
                             Name:  Janice S.H. Ho

                             Title: Director

                             By:              /s/ TJALLING TERPSTRA
                                ------------------------------------------------
                             Name:  Tjalling Terpstra

                             Title: Director

                                     S - 3
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             CITICORP USA, INC.,
                             as a Syndication Agent and a Lender

                             By:                 /s/ WALT LARSEN
                                ------------------------------------------------
                             Name  Walt Larsen

                             Title  Vice President

                                     S - 4
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             FLEET NATIONAL BANK,
                             as a Syndication Agent and a Lender

                             By:             /s/ MARIO F. TEIXEIRA
                                ------------------------------------------------
                             Name  Mario F. Teixeira

                             Title  Vice President

                                     S - 5
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             SOCIETE GENERALE,
                             as a Documentation Agent and a Lender

                             By:               /s/ RICHARD BERNAL
                                ------------------------------------------------
                             Name  Richard Bernal

                             Title  Director, Corporate Banking

                                     S - 6
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             THE BANK OF NOVA SCOTIA

                             By:      /s/ R.P. REYNOLDS
                                ------------------------------------------------
                             Name:  R. P. Reynolds

                             Title: Director

                                     S - 7
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             BARCLAYS BANK PLC

                             By:      /s/ NICHOLAS BELL
                                ------------------------------------------------
                             Name:  Nicholas Bell

                             Title: Director

                                     S - 8
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             CREDIT SUISSE FIRST BOSTON

                             By:         /s/ ROBERT HETU
                                ------------------------------------------------
                             Name:  Robert Hetu

                             Title: Director

                             By:          /s/ MARK HERON
                                ------------------------------------------------
                             Name:  Mark Heron

                             Title: Associate

                                     S - 9
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             THE INDUSTRIAL BANK OF JAPAN,
                             LIMITED

                             By:    /s/ VICENTE L. TIMIRAOS
                                ------------------------------------------------
                             Name:  Vicente L. Timiraos

                             Title: Joint General Manager

                                     S - 10
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             MANUFACTURERS & TRADERS TRUST
                             COMPANY

                             By:   /s/ CHRISTOPHER KANIA
                                ------------------------------------------------
                             Name:  Christopher Kania

                             Title: Vice President

                                     S - 11
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             SANPAOLO IMI S.p.A.

                             By:        /s/ CARLO PERSICO
                                ------------------------------------------------
                             Name:  Carlo Persico

                             Title: E.V.P./General Manager

                             By:        /s/ ETTORE VIAZZO
                                ------------------------------------------------
                             Name:  Ettore Viazzo

                             Title: Vice President

                                     S - 12
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             WELLS FARGO BANK, N.A.

                             By:        /s/ PEITTY CHOU
                                ------------------------------------------------
                             Name:  Peitty Chou

                             Title: Vice President

                                     S - 13
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             CREDIT LYONNAIS, Los Angeles Branch

                             By:          /s/ DIANNE M. SCOTT
                                ------------------------------------------------
                             Name:  Dianne M. Scott

                             Title: Senior Vice President and Manager

                                     S - 14
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             UNION BANK OF CALIFORNIA, N.A.

                             By:       /s/ GAIL I. BOYLE
                                ------------------------------------------------
                             Name:  Gail I. Boyle

                             Title: Vice President

                                     S - 15
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             FIRST UNION NATIONAL BANK

                             By:      /s/ DAVID SILANDER
                                ------------------------------------------------
                             Name:  David Silander

                             Title: Director

                                     S - 16
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             JPMORGAN CHASE BANK

                             By:   /s/ WILLIAM P. RINDFUSS
                                ------------------------------------------------
                             Name:  William P. Rindfuss

                             Title: Vice President

                                     S - 17
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             U.S. BANK NATIONAL ASSOCIATION

                             By:        /s/ JANET JORDAN
                                ------------------------------------------------
                             Name:  Janet E. Jordan

                             Title: Vice President

                                     S - 18
               Mattel, Inc. Amended and Restated Credit Agreement
<PAGE>

                             BANK OF TOKYO-MITSUBISHI TRUST
                             COMPANY

                             By:   /s/ R. L. VAN DE BERGHE
                                ------------------------------------------------
                             Name:  R. L. Van de Berghe

                             Title: Vice President

                                    S - 19
              Mattel, Inc. Amended and Restated Credit Agreement

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