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                                                                   EXHIBIT 10.39

                        MATTEL LONG-TERM INCENTIVE PLAN
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                                   ARTICLE I
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                  ESTABLISHMENT, PURPOSE, AND EFFECTIVE DATE
                  ------------------------------------------

     This Long-Term Incentive Plan is established by Mattel, Inc. for the
purpose of providing long-term incentive rewards for key executives who are in a
position to increase shareholder value and to build the net worth of the
Company. To assist in this goal, the Plan helps to focus those executives upon
the Company's financial objectives of profitability, asset management, and
revenue growth. The effective date of this Plan is January 1, 1993.

                                  ARTICLE II
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                                  DEFINITIONS
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     2.1  Code.  "Code" shall mean the Internal Revenue Code  of
1986 and the regulations promulgated thereunder.

     2.2  Committee. "Committee" shall mean the Committee described in Section
5.1 below.

     2.3  Company. "Company" shall mean Mattel, Inc. and any of its subsidiaries
whose employees participate in the Plan.

     2.4  Covered Employee.

          (a)  "Covered Employee" means any individual who is, on the last day
     of the Company's taxable year:

                (i)   The Chief Executive Officer; or

                (ii)  Among the four highest compensated individuals (other than
          the Chief Executive Officer).

          (b)  The determination as to which individuals are Covered Employees
     is determined in accordance with the rules of the Securities and Exchange
     Commission, except that an individual will not be a Covered Employee unless
     he or she is employed by the Company on the last day of its taxable year.

     2.5  Outside Director.

          (a)  Whether a director is an "Outside Director," will be determined
     under Code Section 162(m). An individual will constitute an "Outside
     Director" only if he or she:

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                    (i)    Is not a current employee of the Company;

                    (ii)   Is not a former employee of the Company who receives
          compensation for prior services (other than benefits under a tax-
          qualified retirement plan);

                    (iii)  Has not been an officer of the Company; and

                    (iv)   Does not receive any remuneration from the Company,
          either directly or indirectly, in any capacity other than as a
          director. Remuneration will be considered to be paid to a director if
          amounts are paid to an entity:

                                      (A)   In which the director holds more
                than 50% of the ownership interest;

                                      (B)   Which employs the director; or

                                      (C)   Of which the director holds at least
                5% but not more than 50% of the ownership interests.

                (b) Payments will not be taken into account for purposes of
          Clauses (B) and (C) of Paragraph (a)(iv) above if the total amounts
          paid by the Company during the preceding year did not exceed the
          lesser of $60,000 or 5% of the recipient's income.

                (c) For purposes of this Section 2.5, "Company" shall include
          the other members of the affiliated group of corporations, within the
          meaning of Code Section 1504.

     2.6  Participant. "Participant" shall mean an employee of the Company (or
of a subsidiary) that has been selected to participate in the Plan.

     2.7  Plan. "Plan" shall mean the Mattel, Inc. Long-Term Incentive Plan.

                                  ARTICLE III
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                           ELIGIBILITY AND BENEFITS
                           ------------------------

     3.1  Separate Standards.

          (a)  The Committee may elect to establish separate standards for
     purposes of determining eligibility to participate and benefits for each
     year. These standards shall be set forth in minutes of the Committee.

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     3.2  No Discretion.

          (a)  The Committee has the discretion to modify the Plan to take into
     account the effect of unforeseen or extraordinary events or accounting
     changes.

          (b)  Notwithstanding the provisions of Paragraph (a), the Committee
     shall not have any discretion to increase the benefits payable to any
     Participant who is a Covered Employee, to the extent precluded by Code
     Section 162(m).

     3.3  Shareholder Approval. Notwithstanding the above, effective for
payments that are deductible in years beginning on or after January 1, 1994, no
payments to Covered Employees may be made under the Plan unless and until:

          (a)  The shareholders of the Company approve the Plan in a separate
     vote, with affirmative votes being cast by the majority of the voting
     shares; and

                    (i)   For this purpose, abstentions are not counted unless
          applicable law provides otherwise.

                    (ii)  Shareholder approval must be obtained every five (5)
          years.

          (b) The Committee certifies in writing that the performance goals and
     any other material terms were satisfied. This requirement may be satisfied
     by means of a certificate in approved minutes of the Committee.

                                  ARTICLE IV
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                              PAYMENT OF BENEFITS
                              -------------------

     4.1  Designation of Beneficiary. In the event of the death of a Participant
prior to the date on which the Participant's benefit is paid, the benefit (if
any) shall be paid to the Participant's surviving spouse. If the Participant
does not have a surviving spouse, the benefit (if any) will be paid to his or
her estate.

     4.2  Payees under Legal Disability. If the Committee reasonably believes
that any payee is legally incapable of giving a valid receipt and discharge for
any payment due him or her, the Committee may have the payment made to the
person (or persons or institution) whom it reasonably believes is caring for or
supporting such payee. Any such payment shall be a payment for the benefit of
the payee and shall be a complete discharge of any liability under the Plan to
the payee.

     4.3  Payment of Benefits. All payments under the Plan shall be delivered in
person or mailed to the last address of the Participant (or, in the case of the
death of the Participant (if applicable), to that of his or her surviving
spouse). Each Participant shall be responsible for furnishing the Committee with
his or her current address.

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                                   ARTICLE V
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                              PLAN ADMINISTRATION
                              -------------------

     5.1  Committee. Authority to administer the Plan shall be vested in the
Compensation/Options Committee of the Board of Directors of Mattel, Inc.
("Committee"). Only Outside Directors may be members of the Committee, and the
Committee must have at least two members.

     5.2  Administrative Powers. The Committee shall have all powers necessary
to administer the Plan. In addition to any and authority conferred on the
Committee elsewhere in the Plan or by law, the Committee shall have the
following powers and authority:

          (a)  To designate agents to carry out responsibilities relating to the
     Plan;

          (b)  To administer, interpret, and answer all questions which may
     arise under this Plan. The determinations by the Committee will be binding
     upon all parties, to the maximum extent permitted by law;

          (c)  To establish rules and procedures for the conduct of its business
     and for the administration of the Plan; and

          (d)  To perform or cause to be performed such further acts as it may
     deem necessary or appropriate in the administration of the Plan.

     5.3  Indemnification.

          (a)  To the maximum extent permitted by law, the Company shall
     indemnify each member of the Committee and of the Board of Directors of the
     Company against expenses (including any amount paid in settlement)
     reasonably incurred by him or her in connection with any claims against him
     or her by reason of the performance of his or her duties under the Plan.
     This indemnity shall not apply if the individual:

                (i)   Acted fraudulently or in bad faith in the performance of
          his or her duties; or

                (ii)  Fails to assist the Company in defending against the
          claim.

          (b)  The Company shall have the right to select counsel and to control
     the prosecution or defense of the suit.

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               (c)  The Company shall not be required to indemnify any person
     for any amount incurred through settlement of any action unless the Company
     consents in writing to the settlement.

                                  ARTICLE VI
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                             MISCELLANEOUS MATTERS
                             ---------------------

     6.1   Amendment and Termination. The Company expects the Plan to be
permanent, but since future conditions affecting the Company cannot be
anticipated or foreseen, the Company reserves the right to amend, modify, or
terminate the Plan at any time by action of its Board of Directors.

     6.2   Benefits Not Alienable. Benefits under the Plan may not be assigned
or alienated, whether voluntarily or involuntarily.

     6.3   No Enlargement of Employee Rights. Nothing contained in the Plan
shall be deemed to give a participant the right to be retained in the employ of
the Company or to interfere with the right of the Company to discharge any
Participant at any time.

     6.4   Governing Law. All legal questions pertaining to the Plan shall be
determined in accordance with the laws of the State of Delaware.

     IN WITNESS WHEREOF, Mattel, Inc. has caused this instrument to be executed.

                                 MATTEL, INC.

                                 By:   /s/ E. Joseph McKay
                                       -------------------

                                 Its:  Senior Vice President, Human Resources
                                       -------- -----------------------------

                                 Date: January 1, 1994
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                                       5<PAGE>

                                                                   EXHIBIT 10.43

                              AMENDMENT NO. 1 TO
                    MATTEL, INC. DEFERRED COMPENSATION PLAN
                          FOR NON-EMPLOYEE DIRECTORS

          The Mattel, Inc. Deferred Compensation Plan for Non-Employee Directors
(the "Plan") is hereby amended, effective as of August 17, 2000, as set forth
below.

1.   Section 3(b)(i) of the Plan is hereby amended and restated to read in its
     entirety as follows:

          (i) Determination of Credited Amounts.  Deferrals credited to the
              ---------------------------------
     Stock Equivalent Account portion of a Director's Account shall be applied
     on the last business day of the month in which occurs the date the related
     compensation is or would be otherwise paid to the hypothetical purchase of
     whole shares of the Company's common stock, par value $1.00 per share (the
     "Common Stock") determined by dividing the amount of such compensation by
     the price of a share of Common Stock.  Amounts remaining after the
     hypothetical purchase of whole shares of Common Stock shall be credited to
     the Interest Accrual Account until the next Valuation date when the
     remaining principal amount shall be credited to the Stock Equivalent
     Account and applied to the hypothetical purchase of Common Stock.  The
     Director's Account (including any portion of an Assumed Account represented
     by the Stock Equivalent Account) shall also be credited on the last
     business day of the month in which cash dividends are paid with a
     hypothetical number of shares of Common Stock equivalent to any cash
     dividend payment on the number of shares of Common stock equal to the
     number of hypothetical shares of Common Stock in the Director's Stock
     Equivalent Account on the record date for such dividend.  Such amount shall
     then be converted to a number of additional hypothetical shares determined
     by dividing such amount by the price of a share of Common Stock.  For
     purposes of this Section 3(b)(i), the price of a share of Common Stock to
     be applied on the last business day of the month in which occurs any
     compensation or dividend date shall be the closing price of a share of
     Common Stock on the date the related compensation or cash dividend is paid
     or would be otherwise paid.  The closing price for each day shall be the
     last sale price, regular way, or, in case no such sale takes place on such
     day, the average of the closing bid and asked prices, regular way, in
     either case as reported in the principal consolidated transaction reporting
     system with respect to securities listed or admitted to trading on the New
     York Stock Exchange or if the Common Stock is not listed or admitted to
     trading on the New York Stock Exchange, as reported in the principal
     consolidated transaction reporting system with respect to securities listed
     on the principal national securities exchange on which the Common Stock is
     listed or admitted to trading on any national securities exchange, the last
     quoted price or, if not so quoted, the average of the high bid and low
     asked prices in the over-the-counter market, as reported by the National
     Association of Securities Dealers, Inc. Automated Quotation System
     ("NASDAQ") or such other system then in use, or, if on any such date the
     Common Stock is not quoted by any such organization, the average of the
     closing bid and asked prices as furnished by the professional market maker
     making a market in the Common Stock.
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2.   This Amendment No. 1 to the Plan shall be and is hereby incorporated in and
forms a part of the Plan.

3.   Except as set forth herein, the Plan shall remain in full force and effect.

                                  *    *    *

          IN WITNESS WHEREOF, the Company has caused this Amendment No. 1 to the
Plan to be executed, effective as set forth above.

                                             MATTEL, INC.

                                             By: /s/ Alan Kaye
                                                 ------------------------------
                                                 Name:
                                                 Title:

                                      -2-

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