Document:

<PAGE>

                                                                    EXHIBIT 10.4

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
THIS PROMISSORY NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED OR HYPOTECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THIS PROMISSORY NOTE UNDER THE SECURITIES ACT OF 1933 OR AN
OPINION OF COUNSEL OF THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT.

                           SECOND AMENDED AND RESTATED

                                 PROMISSORY NOTE

$3,000,000                         Dallas, Texas                October 26, 2001

         For value received the undersigned BESTWAY, INC. a Delaware corporation
(the "Maker"), hereby promises to pay O'Donnell & Masur, L.P. (the "Payee"), in
lawful money of the United States of America, the principal sum of THREE MILLION
DOLLARS AND NO/CENTS ($3,000,000), with interest on the unpaid principal balance
thereof from the date of advancement until default or maturity equal to the rate
of 8% per annum, calculated on the basis of the actual number of calendar days
elapsed but computed as if each year consisted of 360 days.

         Accrued interest shall be due and payable quarter-annually on the first
day of January, April, July and October of each calendar year beginning on
January 1, 2002, and continuing regularly and quarter-annually thereafter until
this Note is paid in full. The principal of this Note and all accrued but unpaid
interest shall be due and payable on November 1, 2003. The Maker may at any time
and from time to time prepay all or any part of unpaid principal balance of this
Note without premium or penalty.

         Each payment received by the Payee shall be applied first to late
charges and collection expenses, if any, then to the payment of accrued but
unpaid interest due hereunder, and then to the reduction of the unpaid principal
balance hereof.

         If the Maker defaults in the timely payment of any installment of
principal or interest due hereunder and such default shall continue uncured for
15 days after the Maker has received written notice of such default from the
Payee, the Payee may, at the Payee's option, exercise any or all of the rights,
powers and remedies afforded herein or by law, including, without limitation,
the right to declare the unpaid balance of this Note, together will all accrued
but unpaid interest on such principal balance, immediately due and payable.

         The failure by the Payee to exercise any right, power or remedy upon
the occurrence of a default by the Maker shall not constitute a waiver of the
right to exercise the same or any other right, power or remedy at any subsequent
time in respect to any other default. The acceptance by

<PAGE>

the Payee of any payment hereunder which is less than payment in full of all
amounts due and payable at the time of such payment shall not constitute a
waiver of the right to exercise of any such right, power or remedy without the
written consent of the Payee, except as and to the extent otherwise provided by
law.

         Except as may be otherwise provided herein, the makers, signers,
sureties, guarantors and endorsers of this Note severally waive demand,
presentment, notice of dishonor, notice of intent or demand or accelerate
payment hereof, notice of acceleration, diligence in collecting, grace, notice
and protest and agree to one or more extension for any period or periods of time
and partial payments, before or after maturity, without prejudice to the holder.
If this Note shall be collected by legal proceedings or through a probate or
bankruptcy court, or shall be placed in the hand of an attorney for collection
after default or maturity, the Maker agrees to pay all costs of collection,
including reasonable attorney's fees.

         This Note and the Maker's obligations hereunder shall be subordinated,
at the option of the Maker, to any other current or future indebtedness of the
Maker at any time of from time to time designated by the Maker as senior
indebtedness and the Payee agrees to execute a subordination agreement
subordinating the indebtedness evidenced by this Note on terms reasonably
requested by the holder of any such senior indebtedness of the Maker. The Payee
may not sell, transfer or assign this Note or any of its right hereunder without
the written consent of the Maker, and the Maker shall in no event be obligated
to make payments hereunder to anyone other than the Payee, its successors and
permitted assigns.

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO CONFLICT OF LAWS RULES OR
CHOICE OF LAWS RULES THEREOF.

         EXECUTED as of the date first above written.

                                    THE MAKER

                                    BESTWAY, INC.

                                    By:    /s/ BETH A. DURRETT
                                        -------------------------------------
                                    Name:  Beth A. Durrett
                                    Title: Chief Financial Officer<PAGE>

                                                                     EXHIBIT 4.1

NONQUALIFIED DEFERRED COMPENSATION

Hasbro, Inc.
Nonqualified Deferred Compensation Plan
Master Plan Document

                            EFFECTIVE OCTOBER 1, 1997

                 AMENDED AND RESTATED EFFECTIVE DECEMBER 1, 2002

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                PAGE
                                                                                                ----
<S>                                                                                             <C>
PURPOSE......................................................................................     1

ARTICLE 1           DEFINITIONS..............................................................     1

ARTICLE 2           SELECTION, ENROLLMENT, ELIGIBILITY.......................................     8

           2.1      SELECTION BY COMMITTEE...................................................     8
           2.2      ENROLLMENT REQUIREMENTS..................................................     8
           2.3      ELIGIBILITY; COMMENCEMENT OF PARTICIPATION...............................     8
           2.4      TERMINATION OF PARTICIPATION AND/OR DEFERRALS............................     8

ARTICLE 3           DEFERRAL COMMITMENTS/COMPANY MATCHING/CREDITING TAXES....................     9

           3.1      MINIMUM DEFERRALS........................................................     9
           3.2      MAXIMUM DEFERRAL.........................................................     9
           3.3      ELECTION TO DEFER; EFFECT OF ELECTION FORM...............................    10
           3.4      WITHHOLDING OF ANNUAL DEFERRAL AMOUNTS...................................    10
           3.5      ANNUAL COMPANY MATCHING AMOUNT; ANNUAL COMPANY DISCRETIONARY AMOUNT......    11
           3.6      INVESTMENT OF TRUST ASSETS...............................................    11
           3.7      VESTING..................................................................    12
           3.8      CREDITING/DEBITING OF ACCOUNT BALANCES...................................    12
           3.9      FICA AND OTHER TAXES.....................................................    14
           3.10     DISTRIBUTIONS............................................................    14
           3.11     EMPLOYER DEFERRAL........................................................    15

ARTICLE 4           SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL EMERGENCIES; WITHDRAWAL
                    ELECTION.................................................................    16

           4.1      SHORT-TERM PAYOUT........................................................    16
           4.2      OTHER BENEFITS TAKE PRECEDENCE OVER SHORT-TERM...........................    16
           4.3      WITHDRAWAL PAYOUT/SUSPENSIONS FOR UNFORESEEABLE FINANCIAL EMERGENCIES....    16
           4.4      WITHDRAWAL ELECTION......................................................    16

ARTICLE 5           RETIREMENT BENEFIT.......................................................    18

           5.1      RETIREMENT BENEFIT.......................................................    18
           5.2      PAYMENT OF RETIREMENT BENEFIT............................................    18
           5.3      DEATH PRIOR TO COMPLETION OF RETIREMENT BENEFIT..........................    18
</TABLE>

Amended and Restated December 1, 2002

                                      -i-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

<TABLE>
<S>                                                                                              <C>
ARTICLE 6           PRE-RETIREMENT SURVIVOR BENEFIT..........................................    19

           6.1      PRE-RETIREMENT SURVIVOR BENEFIT..........................................    19
           6.2      PAYMENT OF PRE-RETIREMENT SURVIVOR BENEFIT...............................    19

ARTICLE 7           TERMINATION BENEFIT......................................................    20

           7.1      TERMINATION BENEFIT......................................................    20
           7.2      PAYMENT OF TERMINATION BENEFIT...........................................    20

ARTICLE 8           DISABILITY WAIVER AND BENEFIT............................................    21

           8.1      DISABILITY WAIVER........................................................    21
           8.2      CONTINUED ELIGIBILITY; DISABILITY BENEFIT................................    21

ARTICLE 9           BENEFICIARY DESIGNATION..................................................    22

           9.1      BENEFICIARY..............................................................    22
           9.2      BENEFICIARY DESIGNATION; CHANGE..........................................    22
           9.3      ACKNOWLEDGEMENT..........................................................    22
           9.4      NO BENEFICIARY DESIGNATION...............................................    22
           9.5      DOUBT AS TO BENEFICIARY..................................................    22
           9.6      DISCHARGE OF OBLIGATIONS.................................................    22

ARTICLE 10          LEAVE OF ABSENCE.........................................................    23

           10.1     PAID LEAVE OF ABSENCE....................................................    23
           10.2     UNPAID LEAVE OF ABSENCE..................................................    23

ARTICLE 11          TERMINATION, AMENDMENT OR MODIFICATION...................................    24

           11.1     TERMINATION..............................................................    24
           11.2     AMENDMENT................................................................    24
           11.3     PLAN AGREEMENT...........................................................    25
           11.4     EFFECT OF PAYMENT........................................................    25

ARTICLE 12          ADMINISTRATION...........................................................    26

           12.1     COMMITTEE DUTIES.........................................................    26
           12.2     AGENTS...................................................................    26
           12.3     BINDING EFFECT OF DECISIONS..............................................    26
           12.4     INDEMNITY OF COMMITTEE...................................................    26
           12.5     EMPLOYER INFORMATION.....................................................    26
           12.6     MULTIPLE COMMITTEES......................................................    26

ARTICLE 13          OTHER BENEFITS AND AGREEMENTS............................................    27

           13.1     COORDINATION WITH OTHER BENEFITS.........................................    27
</TABLE>

Amended and Restated December 1, 2002

                                      -ii-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

<TABLE>
<S>                                                                                              <C>
ARTICLE 14          CLAIMS PROCEDURES........................................................    28

           14.1     PRESENTATION OF CLAIM....................................................    28
           14.2     NOTIFICATION OF DECISION.................................................    28
           14.3     REVIEW OF A DENIED CLAIM.................................................    28
           14.4     DECISION ON REVIEW.......................................................    29
           14.5     LEGAL ACTION.............................................................    29

ARTICLE 15          TRUST....................................................................    30

           15.1     ESTABLISHMENT OF THE TRUST...............................................    30
           15.2     INTERRELATIONSHIP OF THE PLAN AND THE TRUST..............................    30
           15.3     DISTRIBUTIONS FROM THE TRUST.............................................    30

ARTICLE 16          MISCELLANEOUS............................................................    31

           16.1     STATUS OF PLAN...........................................................    31
           16.2     UNSECURED GENERAL CREDITOR...............................................    31
           16.3     EMPLOYER'S LIABILITY.....................................................    31
           16.4     NONASSIGNABILITY.........................................................    31
           16.5     NOT A CONTRACT OF EMPLOYMENT.............................................    31
           16.6     FURNISHING INFORMATION...................................................    32
           16.7     TERMS....................................................................    32
           16.8     CAPTIONS.................................................................    32
           16.9     GOVERNING LAW............................................................    32
           16.10    NOTICE...................................................................    32
           16.11    SUCCESSORS...............................................................    32
           16.12    VALIDITY.................................................................    32
           16.13    INCOMPETENT..............................................................    33
           16.14    DISTRIBUTION IN THE EVENT OF TAXATION....................................    33
           16.15    INSURANCE................................................................    33
           16.16    LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL.....................    33
</TABLE>

Amended and Restated December 1, 2002

                                     -iii-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                  HASBRO, INC.

                     NONQUALIFIED DEFERRED COMPENSATION PLAN

                            Effective October 1, 1997

                                     PURPOSE

         The purpose of this Plan is to provide specified benefits to a select
group of management and highly compensated Employees who contribute materially
to the continued growth, development and future business success of Hasbro,
Inc., a Rhode Island corporation, and its subsidiaries, if any, that sponsor
this Plan. This Plan shall be unfunded for tax purposes and for purposes of
Title I of ERISA.

                                    ARTICLE 1
                                   DEFINITIONS

         For purposes of this Plan, unless otherwise clearly apparent from the
context, the following phrases or terms shall have the following indicated
meanings:

1.1      "Account Balance" shall mean, with respect to a Participant, a
         credit on the records of the Employer equal to the sum of (i) the
         Deferral Account balance and (ii) the Company Matching and
         Discretionary Account balance. The Account Balance, and each other
         specified account balance, shall be a bookkeeping entry only and shall
         be utilized solely as a device for the measurement and determination of
         the amounts to be paid to a Participant, or his or her designated
         Beneficiary, pursuant to this Plan.

1.2      "Annual Bonus" shall mean any compensation, in addition to Base Annual
         Salary relating to services performed during any calendar year, whether
         or not paid in such calendar year or included on the Federal Income Tax
         Form W-2 for such calendar year, payable to a Participant as an
         Employee under any Employer's annual bonus and cash incentive plans,
         excluding stock options, holiday bonuses, retention bonuses, or any
         other discretionary or special bonus or awards.

1.3      "Annual Company Matching Amount" for any one Plan Year shall be the
         amount determined in accordance with Section 3.5.

1.4      "Annual Deferral Amount" shall mean that portion of a Participant's
         Base Annual Salary and Annual Bonus that a Participant elects to have,
         and is deferred, in accordance with Article 3, for any one Plan Year.
         In the event of a Participant's Retirement, Disability (if deferrals
         cease in accordance with Section 8.1), death or a Termination of
         Employment prior to the end of a Plan Year, such year's Annual Deferral
         Amount shall be the actual amount withheld prior to such event.

Amended and Restated December 1, 2002

                                      -1-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

1.5      "Annual Installment Method" shall be an annual installment payment over
         the number of years selected by the Participant in accordance with this
         Plan, calculated as follows: The Account Balance of the Participant
         shall be calculated as of the close of business three business days
         prior to the last business day of the year. The annual installment
         shall be calculated by multiplying this balance by a fraction, the
         numerator of which is one, and the denominator of which is the
         remaining number of annual payments due the Participant. By way of
         example, if the Participant elects a 10-year Annual Installment Method,
         the first payment shall be 1/10 of the Account Balance, calculated as
         described in this definition. The following year, the payment shall be
         1/9 of the Account Balance, calculated as described in this definition.
         Each annual installment shall be paid on or as soon as practicable
         after the last business day of the applicable year.

1.6      "Base Annual Salary" shall mean the annual cash compensation relating
         to services performed during any calendar year, whether or not paid in
         such calendar year or included on the Federal Income Tax Form W-2 for
         such calendar year, excluding bonuses of every type, commissions,
         overtime, fringe benefits, stock options, relocation expenses,
         incentive payments, non-monetary awards, directors fees and other fees,
         automobile and other allowances paid to a Participant for employment
         services rendered (whether or not such allowances are included in the
         Employee's gross income). Base Annual Salary shall be calculated before
         reduction for compensation voluntarily deferred or contributed by the
         Participant pursuant to all qualified or non-qualified plans of any
         Employer and shall be calculated to include amounts not otherwise
         included in the Participant's gross income under Code Sections 125,
         402(e)(3), 402(h), or 403(b) pursuant to plans established by any
         Employer; provided, however, that all such amounts will be included in
         compensation only to the extent that, had there been no such plan, the
         amount would have been payable in cash to the Employee.

1.7      "Beneficiary" shall mean one or more persons, trusts, estates or other
         entities, designated in accordance with Article 9, that are entitled to
         receive benefits under this Plan upon the death of a Participant.

1.8      "Beneficiary Designation Form" shall mean the form established from
         time to time by the Committee that a Participant completes, signs and
         returns to the Committee to designate one or more Beneficiaries.

1.9      "Board" shall mean the board of directors of the Company.

1.10     "Change in Control" shall mean the first to occur of any of the
         following events:

         (a)      The acquisition by any individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Securities
                  Exchange Act of 1934 (the "1934 Act")) of beneficial ownership
                  (within the meaning of Rule 13d-3 promulgated under the 1934
                  Act) of 20% or more of either (i) the then outstanding shares
                  of Common Stock

Amended and Restated December 1, 2002

                                      -2-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                  of Hasbro, Inc. ("Hasbro") (the "Outstanding Common Stock") or
                  (ii) the combined voting power of the then outstanding voting
                  securities of Hasbro entitled to vote generally in the
                  election of directors (the "Outstanding voting Securities");
                  provided, however, that the following acquisitions shall not
                  constitute a Change in Control: (i) any acquisition directly
                  from Hasbro or any of its subsidiaries, (ii) any acquisition
                  by Hasbro or any of its subsidiaries, (iii) any acquisition by
                  any employee benefit plan (or related trust) sponsored or
                  maintained by Hasbro or any of its subsidiaries, (iv) any
                  acquisition by Alan or Sylvia Hassenfeld, members of their
                  respective immediate families, or heirs of Alan or Sylvia
                  Hassenfeld or of any member of their respective immediate
                  families, the Sylvia Hassenfeld Trust, the Merrill Hassenfeld
                  Trust, the Alan Hassenfeld Trust, the Hassenfeld Foundation,
                  any trust or foundation established by or for the primary
                  benefit of any of the foregoing or controlled by one or more
                  of any of the foregoing, or any affiliates or associates (as
                  such terms are defined in Rule 12b-2 promulgated under the
                  1934 Act) of any of the foregoing or (v) any acquisition by
                  any corporation with respect to which, following such
                  acquisition, more than 60% of, respectively, the then
                  outstanding shares of common stock of such corporation and the
                  combined voting power of the then outstanding voting
                  securities of such corporation entitled to vote generally in
                  the election of directors is then beneficially owned, directly
                  or indirectly, by all or substantially all of the individuals
                  and entitles who were the beneficial owners, respectively, of
                  the Outstanding Common Stock and the Outstanding Voting
                  Securities immediately prior to such acquisition in
                  substantially the same proportions as their ownership,
                  immediately prior to such acquisition, of the Outstanding
                  Common Stock and Outstanding Voting Securities, as the case
                  may be; or

         (b)      Individuals who, as the effective date of the Plan constitute
                  the Board (the "Incumbent Board") cease for any reason to
                  constitute at least a majority of the Board; provided,
                  however, that any individual becoming a director subsequent to
                  the effective date of the Plan whose election, or nomination
                  for election by the Company's shareholders, was approved by a
                  vote of at least a majority of the directors then comprising
                  the Incumbent Board shall be considered as though such
                  individual were a member of the Incumbent Board, but
                  excluding, for this purpose, any such individual whose initial
                  assumption of office occurs as a result of either an actual or
                  threatened election contest (as such terms are used in Rule
                  14a-11 of Regulation 14A promulgated under the 1934 Act) or
                  other actual or threatened solicitation of proxies or
                  consents; or

         (c)      Approval by the shareholders of Hasbro of a reorganization,
                  merger or consolidation, in each case, with respect to which
                  all or substantially all of the individuals and entities who
                  were the beneficial owners, respectively of the Outstanding
                  Common Stock and Outstanding Voting Securities immediately
                  prior to such reorganization, merger or consolidation do not,
                  following such reorganization, merger or consolidation,
                  beneficially own, directly or indirectly, more than 60% of,
                  respectively,

Amended and Restated December 1, 2002

                                      -3-
<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                  the then outstanding shares of common stock and the combined
                  voting power of the then outstanding voting securities
                  entitled to vote generally in the election of directors, as
                  the case may be, of the corporation resulting from such
                  reorganization, merger or consolidation in substantially the
                  same proportions as their ownership, immediately prior to such
                  reorganization, merger or consolidation, of the outstanding
                  Common Stock and Outstanding Voting Securities, as the case
                  may be; or

         (d)      Approval by the shareholders of Hasbro of (i) a complete
                  liquidation or dissolution of Hasbro or (ii) the sale or other
                  disposition of all or substantially all of the assets of
                  Hasbro, other than to a corporation, with respect to which
                  following such sale or other disposition, more than 60% of,
                  respectively, the then outstanding shares of common stock of
                  such corporation and the combined voting power of the then
                  outstanding voting securities of such corporation entitled to
                  vote generally in the election of directors is then
                  beneficially owned, directly or indirectly, by all or
                  substantially all of the individuals and entities who were the
                  beneficial owners, respectively, of the Outstanding Common
                  Stock and Outstanding Voting Securities immediately prior to
                  such sale or other disposition in substantially the same
                  proportion as their ownership, immediately prior to such sale
                  or other disposition, of the Outstanding Common Stock and
                  Outstanding Voting Securities, as the case may be.

1.11     "Claimant" shall have the meaning set forth in Section 14.1.

1.12     "Code" shall mean the Internal Revenue Code of 1986, as it may be
         amended from time to time.

1.13     "Committee" shall mean the committee described in Article 12.

1.14     "Company" shall mean Hasbro, Inc., a Rhode Island corporation, and any
         successor to all or substantially all of the Company's assets or
         business.

1.15     "Company Matching and Discretionary Account" shall mean (i) the sum of
         all of a Participant's Annual Company Matching Amounts and Annual
         Company Discretionary Amounts, plus (ii) amounts credited in accordance
         with all the applicable crediting provisions of this Plan that relate
         to the Participant's Company Matching and Discretionary Account, less
         (iii) all distributions made to the Participant or his or her
         Beneficiary pursuant to this Plan that relate to the Participant's
         Company Matching and Discretionary Account.

1.16     "Deduction Limitation" shall mean the following described limitation on
         a benefit that may otherwise be distributable pursuant to the
         provisions of this Plan. Except as otherwise provided, this limitation
         shall be applied to all distributions that are "subject to the
         Deduction Limitation" under this Plan. If an Employer determines in
         good faith prior to a Change in Control that there is a reasonable
         likelihood that any compensation paid to a Participant for a taxable
         year of the Employer would not be deductible by the Employer solely by
         reason of the limitation under Code Section 162(m), then to the extent
         deemed necessary by the Employer

Amended and Restated December 1, 2002

                                      -4-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

         to ensure that the entire amount of any distribution to the Participant
         pursuant to this Plan prior to the Change in Control is deductible, the
         Employer may defer all or any portion of a distribution under this
         Plan. Any amounts deferred pursuant to this limitation shall continue
         to be credited/debited with additional amounts in accordance with
         Section 3.8 below. The amounts so deferred and amounts credited thereon
         shall be distributed to the Participant or his or her Beneficiary (in
         the event of the Participant's death) at the earliest possible date, as
         determined by the Employer in good faith, on which the deductibility of
         compensation paid or payable to the Participant for the taxable year of
         the Employer during which the distribution is made will not be limited
         by Section 162(m), or if earlier, the effective date of a Change in
         Control. Notwithstanding anything to the contrary in this Plan, the
         Deduction Limitation shall not apply to any distributions made after a
         Change in Control.

1.17     "Deferral Account" shall mean (i) the sum of all of a Participant's
         Annual Deferral Amounts, plus (ii) amounts credited in accordance with
         all the applicable crediting provisions of this Plan that relate to the
         Participant's Deferral Account, less (iii) all distributions made to
         the Participant or his or her Beneficiary pursuant to this Plan that
         relate to his or her Deferral Account.

1.18     "Disability" shall mean a period of disability during which a
         Participant qualifies for disability benefits under the Participant's
         Employer's long-term disability plan, or, if a Participant does not
         participate in such a plan, a period of disability during which the
         Participant would have qualified for permanent disability benefits
         under such a plan had the Participant been a participant in such a
         plan, as determined in the sole discretion of the Committee. If the
         Participant's Employer does not sponsor such a plan, or discontinues to
         sponsor such a plan, Disability shall be determined by the Committee in
         its sole discretion.

1.19     "Disability Benefit" shall mean the benefit set forth in Article 8.

1.20     "Election Form" shall mean the form established from time to time by
         the Committee that a Participant completes, signs and returns to the
         Committee to make an election under the Plan.

1.21     "Employee" shall mean a person who is an employee of any Employer.

1.22     "Employer(s)" shall mean the Company and/or any of its subsidiaries
         (now in existence or hereafter formed or acquired) that have been
         selected by the Board or any authorized committee thereof to
         participate in the Plan and have adopted the Plan as a sponsor.

1.23     "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
         as it may be amended from time to time.

1.24     "First Plan Year" shall mean the period beginning October 1, 1997 and
         ending December 31, 1997.

Amended and Restated December 1, 2002

                                      -5-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

1.25     "401(k) Plan" shall mean that certain Hasbro, Inc. Retirement Savings
         Plan adopted by the Company.

1.26     "Maximum 401(k) Amount" with respect to a Participant, shall be the
         maximum amount of elective contributions that can be made by such
         Participant, consistent with Code Section 402(g) and the limitations of
         Code Section 401(k)(3), for a given plan year under the 401(k) Plan.

1.27     "Participant" shall mean any Employee (i) who is selected to
         participate in the Plan, (ii) who elects to participate in the Plan,
         (iii) who signs a Plan Agreement, an Election Form and a Beneficiary
         Designation Form, (iv) whose signed Plan Agreement, Election Form and
         Beneficiary Designation Form are accepted by the Committee, (v) who
         commences participation in the Plan, and (vi) whose Plan Agreement has
         not terminated. A spouse or former spouse of a Participant shall not be
         treated as a Participant in the Plan or have an account balance under
         the Plan, even if he or she has an interest in the Participant's
         benefits under the Plan as a result of applicable law or property
         settlements resulting from legal separation or divorce.

1.28     "Plan" shall mean the Company's Nonqualified Deferred Compensation
         Plan, which shall be evidenced by this instrument and by each Plan
         Agreement, as they may be amended from time to time.

1.29     "Plan Agreement" shall mean a written agreement, as may be amended from
         time to time, which is entered into by and between an Employer and a
         Participant. Each Plan Agreement executed by a Participant and the
         Participant's Employer shall provide for the entire benefit to which
         such Participant is entitled under the Plan; should there be more than
         one Plan Agreement, the Plan Agreement bearing the latest date of
         acceptance by the Employer shall supersede all previous Plan Agreements
         in their entirety and shall govern such entitlement. The terms of any
         Plan Agreement may be different for any Participant, and any Plan
         Agreement may provide additional benefits not set forth in the Plan or
         limit the benefits otherwise provided under the Plan; provided,
         however, that any such additional benefits or benefit limitations must
         be agreed to by both the Employer and the Participant.

1.30     "Plan Year" shall, except for the First Plan Year, mean a period
         beginning on January 1 of each calendar year and continuing through
         December 31 of such calendar year.

1.31     "Pre-Retirement Survivor Benefit" shall mean the benefit set forth in
         Article 6 for purposes of this Plan only.

1.32     "Retirement," "Retire(s)" or "Retired" shall mean, with respect to an
         Employee, severance from employment from all Employers for any reason
         other than a leave of absence, death or Disability on or after the
         earlier of the attainment of (a) age sixty-five (65) or (b) age
         fifty-five (55) with ten (10) Years of Service. The definition in this
         Section 1.32 shall not have any effect on any other plan maintained by
         the Employer.

Amended and Restated December 1, 2002

                                      -6-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

1.33     "Retirement Benefit" shall mean the benefit set forth in Article 5.

1.34     "Short-Term Payout" shall mean the payout set forth in Section 4.1.

1.35     "Termination Benefit" shall mean the benefit set forth in Article 7.

1.36     "Termination of Employment" shall mean the severing of employment with
         all Employers, voluntarily or involuntarily, for any reason other than
         Retirement, Disability, death or an authorized leave of absence.

1.37     "Trust" shall mean one or more trusts established pursuant to one or
         more trust agreements between the Company and the trustee named
         therein, as amended from time to time.

1.38     "Unforeseeable Financial Emergency" shall mean an unanticipated
         emergency that is caused by an event beyond the control of the
         Participant that would result in severe financial hardship to the
         Participant resulting from (i) a sudden and unexpected illness or
         accident of the Participant or a dependent of the Participant, (ii) a
         loss of the Participant's property due to casualty, or (iii) such other
         extraordinary and unforeseeable circumstances arising as a result of
         events beyond the control of the Participant, all as determined in the
         sole discretion of the Committee.

1.39     "Years of Plan Participation" shall mean the total number of full Plan
         Years a Participant has been a Participant in the Plan prior to his or
         her Termination of Employment (determined without regard to whether
         deferral elections have been made by the Participant for any Plan
         Year). Any partial year shall not be counted. Notwithstanding the
         previous sentence, a Participant's first Plan Year of participation
         shall be treated as a full Plan Year for purposes of this definition,
         even if it is only a partial Plan Year of participation.

1.40     "Years of Service" shall mean the total number of full years in which a
         Participant has been employed by one or more Employers. For purposes of
         this definition, a year of employment shall be a 365 day period (or 366
         day period in the case of a leap year) that, for the first year of
         employment, commences on the Employee's date of hiring and that, for
         any subsequent year, commences on an anniversary of that hiring date.
         Any partial year of employment shall not be counted.

Amended and Restated December 1, 2002

                                      -7-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                    ARTICLE 2
                       SELECTION, ENROLLMENT, ELIGIBILITY

2.1      SELECTION BY COMMITTEE. Participation in the Plan shall be limited to a
         select group of management and highly compensated Employees of the
         Employers, as determined by the Committee in its sole discretion. From
         that group, the Committee shall select, in its sole discretion,
         Employees to participate in the Plan.

2.2      ENROLLMENT REQUIREMENTS. As a condition to participation, each selected
         Employee shall complete, execute and return to the Committee a Plan
         Agreement, an Election Form and a Beneficiary Designation Form, all
         within 30 days after he or she is selected to participate in the Plan.
         In addition, the Committee shall establish from time to time such other
         enrollment requirements as it determines in its sole discretion are
         necessary.

2.3      ELIGIBILITY; COMMENCEMENT OF PARTICIPATION. Provided an Employee
         selected to participate in the Plan has met all enrollment requirements
         set forth in this Plan and required by the Committee, including
         returning all required documents to the Committee within the specified
         time period, that Employee shall commence participation in the Plan on
         the first day of the month following the month in which the Employee
         completes all enrollment requirements. If an Employee fails to meet all
         such requirements within the period required, in accordance with
         Section 2.2, that Employee shall not be eligible to participate in the
         Plan until the first day of the Plan Year following the delivery to and
         acceptance by the Committee of the required documents.

2.4      TERMINATION OF PARTICIPATION AND/OR DEFERRALS. If the Committee
         determines in good faith that a Participant no longer qualifies as a
         member of a select group of management or highly compensated employees,
         as membership in such group is determined in accordance with Sections
         201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the
         right, in its sole discretion, to (i) terminate any deferral election
         the Participant has made for the remainder of the Plan Year in which
         the Participant's membership status changes, (ii) prevent the
         Participant from making future deferral elections and/or (iii)
         immediately distribute the Participant's then Account Balance as a
         Termination Benefit and terminate the Participant's participation in
         the Plan.

Amended and Restated December 1, 2002

                                      -8-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                    ARTICLE 3
              DEFERRAL COMMITMENTS/COMPANY MATCHING/CREDITING/TAXES

3.1      MINIMUM DEFERRALS.

         (a)      BASE ANNUAL SALARY AND ANNUAL BONUS. For each Plan Year, a
                  Participant may elect to defer, as his or her Annual Deferral
                  Amount, part or all of the Participant's Base Annual Salary,
                  and/or Annual Bonus in the following minimum amounts for each
                  deferral elected:

<TABLE>
<CAPTION>
----------------------------------------------------
     DEFERRAL                         MINIMUM AMOUNT
----------------------------------------------------
<S>                                   <C>
Base Annual Salary                          1%
----------------------------------------------------
Annual Bonus                                1%
----------------------------------------------------
</TABLE>

                  If an election is made for less than stated minimum amounts,
                  or if no election is made, the amount deferred shall be zero.

3.2      MAXIMUM DEFERRAL.

         (a)      BASE ANNUAL SALARY AND ANNUAL BONUS. For each Plan Year, a
                  Participant may elect to defer, as his or her Annual Deferral
                  Amount, part or all of the Participant's Base Annual Salary,
                  and/or Annual Bonus up to the following maximum percentages
                  for each deferral elected:

<TABLE>
<CAPTION>
---------------------------------------------------
     DEFERRAL                        MAXIMUM AMOUNT
---------------------------------------------------
<S>                                  <C>
Base Annual Salary                          75%
---------------------------------------------------
Annual Bonus                               100%
---------------------------------------------------
</TABLE>

                  Notwithstanding the foregoing, if a Participant first becomes
                  a Participant after the first day of a Plan Year, or in the
                  case of the first Plan Year of the Plan itself, the maximum
                  Annual Deferral Amount, with respect to Base Annual Salary
                  and/or Annual Bonus shall be limited to the amount of
                  compensation not yet earned by the Participant as of the date
                  the Participant submits a Plan Agreement and Election Form to
                  the Committee for acceptance.

                  An election to defer Base Annual Salary and/or Annual Bonus
                  may be expressed as an election to defer (i) a specific
                  percentage, (ii) a specific dollar amount or (iii) the excess
                  over a specified dollar amount.

Amended and Restated December 1, 2002

                                      -9-

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MASTER PLAN DOCUMENT CONTINUED...

3.3      ELECTION TO DEFER; EFFECT OF ELECTION FORM.

         (a)      FIRST PLAN YEAR. If a Participant's commencement of
                  participation in the Plan is coincident with the Participant's
                  commencement of employment, the Participant shall, within 30
                  days after commencement of participation, make an irrevocable
                  deferral election for the Plan Year in which the Participant
                  commences participation in the Plan, along with such other
                  elections as the Committee deems necessary or desirable under
                  the Plan. For these elections to be valid, the Election Form
                  must be completed and signed by the Participant, timely
                  delivered to the Committee (in accordance with Section 2.2
                  above) and accepted by the Committee. If a Participant's
                  commencement of participation begins after commencement of
                  employment, the Participant may not make a deferral election
                  until the Plan Year beginning after commencement of
                  employment.

         (b)      SUBSEQUENT PLAN YEARS. For each succeeding Plan Year, an
                  irrevocable election to defer Base Annual Salary shall be made
                  by timely delivery to the Committee, in accordance with its
                  rules and procedures, before the end of the Plan Year
                  preceding the Plan Year for which the election is made, a new
                  Election Form. An Election Form to defer an Annual Bonus which
                  is to be paid in a Plan Year shall be delivered to the
                  Committee in accordance with the procedures described above,
                  no later than November 30 of the preceding Plan Year. If no
                  such Election Form is timely delivered for a Plan Year, the
                  Annual Deferral Amount shall be zero for that Plan Year. Any
                  other elections as the Committee deems necessary or advisable
                  shall be made at such times as the Committee may designate.

3.4      WITHHOLDING OF ANNUAL DEFERRAL AMOUNTS. For each Plan Year, the Base
         Annual Salary portion of the Annual Deferral Amount shall be withheld
         from each regularly scheduled Base Annual Salary payroll in equal
         amounts, as adjusted from time to time for increases and decreases in
         Base Annual Salary. The Annual Bonus portion of the Annual Deferral
         Amount shall be withheld at the time the Annual Bonus is or otherwise
         would be paid to the Participant, whether or not this occurs during the
         Plan Year itself. No withholding shall be permitted within twelve
         months after the Participant has received a hardship distribution from
         the 401(k) Plan.

Amended and Restated December 1, 2002

                                      -10-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

3.5      ANNUAL COMPANY MATCHING AMOUNT; ANNUAL COMPANY DISCRETIONARY AMOUNT.

         (a)      ANNUAL COMPANY MATCHING AMOUNT. For each Plan Year, an
                  Employer, in its sole discretion, may, but is not required to,
                  credit an Annual Company Matching Amount to the Hasbro, Inc.
                  Supplemental Benefit Retirement Plan account or to the Company
                  Matching and Discretionary Account of any Participant who
                  makes a contribution to the 401(k) Plan of the Maximum 401(k)
                  Amount. A Participant's Annual Company Matching Amount for any
                  Plan Year shall be equal to the matching contributions that
                  would have been made to the 401(k) Plan on his behalf for the
                  plan year of the 401(k) Plan that corresponds to the Plan Year
                  if the Participant had made no deferral and had made a
                  contribution to the 401(k) Plan of the Maximum 401(k) Amount
                  for such plan year, reduced by the amount of any matching
                  contributions that were actually made to the 401(k) Plan on
                  his or her behalf for such plan year. If a Participant is not
                  employed by an Employer as of the last day of a Plan Year
                  other than by reason of his or her Retirement or death, the
                  Annual Company Matching Amount for such Plan Year shall be
                  zero. In the event of Retirement or death, a Participant shall
                  be credited with the Annual Company Matching Amount for the
                  Plan Year in which he or she Retires or dies.

         (b)      ANNUAL COMPANY DISCRETIONARY AMOUNT. For each Plan year, an
                  Employer, in its sole discretion, may, but is not required to,
                  credit any amount it desires to any Participant's Matching and
                  Discretionary Account, which amount shall be for that
                  Participant the Annual Company Discretionary Amount for that
                  Plan Year. The amount so credited to a Participant may be
                  smaller or larger that the amount credited to any other
                  Participant, and the amount credited to any Participant for a
                  Plan Year may be zero, even though one or more other
                  Participants receive an Annual Company Discretionary Amount
                  for that Plan Year. The Annual Company Discretionary Amount,
                  if any, shall be credited to the Participant's Annual Company
                  Matching and Discretionary Account at any time during the Plan
                  Year as determined by the Company. If a Participant is not
                  employed by an Employer as of the day within the Plan Year the
                  Annual Company Discretionary Amount is to be credited to the
                  Participant's Matching and Discretionary Account, other than
                  by reason of his or her Retirement or death while employed,
                  the Annual Company Discretionary Amount for that Plan Year for
                  that Participant shall be zero. In the event of Retirement or
                  death, a Participant shall be credited with the Annual Company
                  Discretionary Amount for the Plan Year in which he or she
                  Retires or dies.

3.6      INVESTMENT OF TRUST ASSETS. The Trustee of the Trust shall be
         authorized, upon written instructions received from the Committee or
         investment manager appointed by the Committee, to invest and reinvest
         the assets of the Trust in accordance with the applicable Trust
         Agreement, including the disposition of stock and reinvestment of the
         proceeds in one or more investment vehicles designated by the
         Committee.

Amended and Restated December 1, 2002

                                      -11-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

3.7      VESTING.

         (a)      A Participant shall at all times be 100% vested in his or her
                  Deferral Account.

         (b)      A Participant's Company Matching and Discretionary Account
                  shall vest on the January 1 next following the Participant's
                  completion of a Year of Service.

         (c)      Notwithstanding anything to the contrary contained in this
                  Section 3.7, in the event of a Change in Control, a
                  Participant's Company Matching and Discretionary Account shall
                  immediately become 100% vested (if it is not already vested in
                  accordance with the above vesting schedule).

3.8      CREDITING/DEBITING OF ACCOUNT BALANCES. In accordance with, and subject
         to, the rules and procedures that are established from time to time by
         the Committee, in its sole discretion, amounts shall be credited or
         debited to a Participant's Account Balance in accordance with the
         following rules:

         (a)      ELECTION OF MEASUREMENT FUNDS. A Participant, in connection
                  with his or her initial deferral election in accordance with
                  Section 3.2(a) above, shall elect, on the Election form, one
                  or more Measurement Fund(s) (as described in Section 3.8(c)
                  below) to be used to determine the additional amounts to be
                  credited to his or her Account Balance while the Participant
                  participates in the Plan, unless changed in accordance with
                  the next sentence. Commencing on April 1, 2002, the
                  Participant may (but is not required to) elect on a daily
                  basis, pursuant to such procedures as may be established by
                  the Committee from time to time, to add or delete one or more
                  Measurement Fund(s) to be used to determine the additional
                  amounts to be credited to his or her Account Balance, or to
                  change the portion of his or her Account Balance allocated to
                  each previously or newly elected Measurement Fund. If an
                  election is made in accordance with the previous sentence, it
                  shall apply while the Participant participates in the Plan,
                  unless changed in accordance with the previous sentence.
                  Notwithstanding the preceding sentence, a Participant may only
                  allocate a portion of his or her Account Balance to a
                  Measurement Fund which reflects the performance of the Common
                  Stock of the Company (the "Company Stock Fund"); additions to
                  the Account Balance during a Plan Year may not be allocated to
                  the Company Stock Fund during that Plan Year. An election by a
                  Participant to allocate a portion of his or her Account to the
                  Company Stock Fund may be made only once during the period
                  beginning on October 25 and ending on November 5 of each Plan
                  Year, such election to be effective as of January 1 of the
                  next Plan Year. For the year the Company Stock Fund comes into
                  effect, 1998, the reallocation period is from March 16 through
                  March 25 and will be effective as of April 1, 1998. The
                  Committee may in its sole discretion impose such additional
                  restrictions on allocations to or from the Company Stock Fund
                  as it deems necessary or advisable.

Amended and Restated December 1, 2002

                                      -12-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

         (b)      PROPORTIONATE ALLOCATION. In making any election described in
                  Section 3.8(a) above, the Participant shall specify on the
                  Election Form, in increments of one percentage point (1%), the
                  percentage of his or her Account Balance to be allocated to a
                  Measurement Fund (as if the Participant was making an
                  investment in that Measurement Fund with that portion of his
                  or her Account Balance).

         (c)      MEASUREMENT FUNDS. The Participant may elect one or more of
                  the following measurement funds set forth on Schedule A. Such
                  election may be changed by the Participant on a daily basis
                  pursuant to such procedures as may be established by the
                  Committee from time to time. As necessary, the Committee may,
                  in its sole discretion, discontinue, substitute or add a
                  Measurement Fund. Each such action will take effect as of the
                  first day of the calendar quarter that follows by thirty (30)
                  days the day on which the Committee gives Participants advance
                  written notice of such change.

         (d)      CREDITING OR DEBITING METHOD. Subject to charges for
                  administrative expenses as provided in Section 3.8(f), the
                  performance of each elected Measurement Fund (either positive
                  or negative) will be determined by the Committee, in its sole
                  discretion, based on the performance of the Measurement Funds
                  themselves. A Participant's Account Balance shall be credited
                  or debited on a daily basis based on the performance of each
                  Measurement Fund selected by the Participant, as determined by
                  the Committee in its sole discretion, as though (i) a
                  Participant's Account Balance were invested in the Measurement
                  Fund(s) selected by the Participant, in the percentages then
                  applicable, (ii) the portion for the Annual Deferral Amount
                  that was actually deferred during any calendar quarter were
                  invested in the Measurement Fund(s) selected by the
                  Participant, in the percentages then applicable, no later than
                  the close of business on the third business day after the day
                  on which such amounts are actually deferred from the
                  Participant's Base Annual Salary through reductions in his or
                  her payroll, at the closing price on such date; and (iii) any
                  distribution made to a Participant that decreases such
                  Participant's Account Balance ceased being invested in the
                  Measurement Fund(s), in the percentages then applicable, no
                  earlier than three business days prior to the distribution, at
                  the closing price on such date. The Participant's Annual
                  Company Matching Amount shall be credited to his or her
                  Company Matching and Discretionary Account for purposes of
                  this Section 3.8(d) as of the close of business on the first
                  business day in March of the Plan Year following the Plan Year
                  to which it relates. In the case of an account for which the
                  Company Stock Fund is a Measurement Fund, the equivalent of
                  such cash dividends paid with respect to the Common Stock
                  shall be credited to such account on the last day of the
                  calendar quarter during which the cash dividend was paid. In
                  the event the Company pays a stock dividend or reclassifies or
                  divides or combines its outstanding Common Stock, then an
                  appropriate adjustment shall be made in the Company Stock
                  Fund.

Amended and Restated December 1, 2002

                                      -13-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

         (e)      NO ACTUAL INVESTMENT. Notwithstanding any other provision of
                  this Plan that may be interpreted to the contrary, the
                  Measurement Funds are to be used for measurement purposes
                  only, and a Participant's election of any such Measurement
                  Fund, the allocation to his or her Account Balance thereto,
                  the calculation of additional amounts and the crediting or
                  debiting of such amounts to a Participant's Account Balance
                  shall not be considered or construed in any manner as an
                  actual investment of his or her Account Balance in any such
                  Measurement Fund. In the event that the Company or the Trustee
                  (as that term is defined in the Trust), in its own discretion,
                  decides to invest funds in any or all of the Measurement
                  Funds, no Participant shall have any rights in or to such
                  investments themselves. Without limiting the foregoing, a
                  Participant's Account Balance shall at all times be a
                  bookkeeping entry only and shall not represent any investment
                  made on his or her behalf by the Company or the Trust; the
                  Participant shall at all times remain an unsecured creditor of
                  the Company.

         (f)      EXPENSES. The Account Balance of each Participant shall be
                  debited by the amount of the reasonable administrative
                  expenses of the Plan in the same proportion that the
                  Participant's Account Balance bears to the total Account
                  Balances of all Participants.

3.9      FICA AND OTHER TAXES.

         (a)      ANNUAL DEFERRAL AMOUNTS. For each Plan Year in which an Annual
                  Deferral Amount is being withheld from a Participant, the
                  Participant's Employer(s) shall withhold from that portion of
                  the Participant's Base Annual Salary and Bonus that is not
                  being deferred, in a manner determined by the Employer(s), the
                  Participant's share of FICA and other employment taxes on such
                  Annual Deferral Amount. If necessary, the Committee may reduce
                  the Annual Deferral Amount in order to comply with this
                  Section 3.9.

         (b)      COMPANY MATCHING AMOUNTS. When a participant becomes vested in
                  a portion of his or her Company Matching and Discretionary
                  Account, the Participant's Employer(s) shall withhold from the
                  Participant's Base Annual Salary and/or Bonus that is not
                  deferred, in a manner determined by the Employer(s), the
                  Participant's share of FICA and other employment taxes. If
                  necessary, the Committee may reduce the vested portion of the
                  Participant's Company Matching and Discretionary Account in
                  order to comply with this Section 3.9.

3.10     DISTRIBUTIONS. The Participant's Employer(s), or the trustee of the
         Trust, shall withhold from any payments made to a Participant under
         this Plan all federal, state and local income, employment and other
         taxes required to be withheld by the Employer(s), or the trustee of the
         Trust, in connection with such payments, in amounts and in a manner to
         be determined in the sole discretion of the Employer(s) and the trustee
         of the Trust.

Amended and Restated December 1, 2002

                                      -14-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

3.11     EMPLOYER DEFERRAL. If an Employer determines in good faith prior to a
         Change in Control that there is a reasonable likelihood that any
         compensation paid to a Participant for a taxable year would not be
         deductible by the Employer solely by reason of the limitation under
         Code Section 162(m), then to the extent deemed necessary by the
         Employer to ensure that all of the compensation payable to the
         Participant prior to the Change in Control is deductible, the Employer
         may reduce the Participant's Base Annual Salary and/or Annual Bonus and
         treat the amount of such reduction as an amount deferred by the
         Participant. The amount so deferred and amounts credited thereon shall
         be distributed to the Participant (or his or her Beneficiary in the
         event of the Participant's death) at the earliest possible date, as
         determined by the Employer in good faith, on which the deductibility of
         compensation paid or payable to the Participant for the taxable year of
         the Employer during which the distribution is made will not be limited
         by Section 162(m), or if earlier, the effective date of a Change in
         Control. No deferrals may be made under this Section 3.11 after the
         effective date of a Change in Control. For purposes of this Section
         3.11 only, the term "Participant" shall mean any Employee who has been
         selected to participate in the Plan.

Amended and Restated December 1, 2002

                                      -15-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                    ARTICLE 4
             SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL EMERGENCIES;
                               WITHDRAWAL ELECTION

4.1      SHORT-TERM PAYOUT. In connection with each election to defer an Annual
         Deferral Amount, a Participant may irrevocably elect to receive a
         future "Short-Term Payout" from the Plan with respect to such Annual
         Deferral Amount. Subject to the Deduction Limitation, the Short-Term
         Payout shall be a lump sum payment in an amount that is equal to the
         Annual Deferral Amount plus amounts credited or debited in the manner
         provided in Section 3.8 above on that amount, determined at the time
         that the Short-Term Payout becomes payable (rather than the date of a
         Termination of Employment). Subject to the Deduction Limitation and the
         other terms and conditions of this Plan, each Short-Term Payout elected
         shall be paid out during a period beginning 1 day and ending 60 days
         after the last day of any Plan Year designated by the Participant that
         is at least three Plan Years after the Plan Year in which the Annual
         Deferral Amount is actually deferred. By way of example, if a three
         year Short-Term Payout is elected for Annual Deferral Amounts that are
         deferred in the Plan Year commencing January 1, 1998, the three year
         Short-Term Payout would become payable during a 60 day period
         commencing January 1, 2002.

4.2      OTHER BENEFITS TAKE PRECEDENCE OVER SHORT-TERM. Should an event occur
         that triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral
         Amount, plus amounts credited or debited thereon, that is subject to a
         Short-Term Payout election under Section 4.1 shall not be paid in
         accordance with Section 4.1 but shall be paid in accordance with the
         other applicable Article.

4.3      WITHDRAWAL PAYOUT/SUSPENSIONS FOR UNFORESEEABLE FINANCIAL EMERGENCIES.
         If the Participant experiences an Unforeseeable Financial Emergency,
         the Participant may petition the Committee to (i) suspend any deferrals
         required to be made by a Participant and/or (ii) receive a partial or
         full payout from the Plan. The payout shall not exceed the lesser of
         the Participant's Account Balance, calculated as if such Participant
         were receiving a Termination Benefit, or the amount reasonably needed
         to satisfy the Unforeseeable Financial Emergency as determined by the
         Committee. If, subject to the sole discretion of the Committee, the
         petition for a suspension and/or payout is approved, suspension shall
         take effect upon the date of approval and any payout shall be made
         within 60 days of the date of approval. The payment of any amount under
         this Section 4.3 shall not be subject to the Deduction Limitation or
         any withdrawal penalty.

4.4      WITHDRAWAL ELECTION. A Participant (or, after a Participant's death,
         his or her Beneficiary) may elect, at any time, to withdraw all of his
         or her Account Balance, calculated as if there had occurred a
         Termination of Employment as of the day of the election, less a
         withdrawal penalty equal to 10% of such amount (the net amount shall be
         referred to as the "Withdrawal Amount"). This election can be made at
         any time, before or after Retirement, Disability, death or Termination
         of Employment, and whether or not the Participant (or Beneficiary) is
         in

Amended and Restated December 1, 2002

                                      -16-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

         the process of being paid pursuant to an installment payment schedule.
         If made before Retirement, Disability or death, a Participant's
         Withdrawal Amount shall be his or her Account Balance calculated as if
         there had occurred a Termination of Employment as of the day of the
         election. No partial withdrawals of the Withdrawal Amount shall be
         allowed. The Participant (or his or her Beneficiary) shall make this
         election by giving the Committee advance written notice of the election
         in a form determined from time to time by the Committee. The
         Participant (or his or her Beneficiary) shall be paid the Withdrawal
         Amount within 60 days of his or her election. Once the Withdrawal
         Amount is paid, the Participant's participation in the Plan shall
         terminate and the Participant shall not be eligible to participate in
         the Plan until the next enrollment period which is at least six months
         after the date of withdrawal. The payment of this Withdrawal Amount
         shall not be subject to the Deduction Limitation.

Amended and Restated December 1, 2002

                                      -17-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                    ARTICLE 5
                               RETIREMENT BENEFIT

5.1      RETIREMENT BENEFIT. Subject to the Deduction Limitation, a Participant
         who Retires shall receive, as a Retirement Benefit, his or her Account
         Balance.

5.2      PAYMENT OF RETIREMENT BENEFIT. A Participant, in connection with his or
         her commencement of participation in the Plan, shall elect on an
         Election Form to receive the Retirement Benefit in a lump sum or
         pursuant to an Annual Installment Method of 5, 10 or 15 years. The
         Participant may annually change his or her election to an allowable
         alternative payout period by submitting a new Election Form to the
         Committee, provided that any such Election Form is submitted at least
         one year prior to the Participant's Retirement and is accepted by the
         Committee in its sole discretion. The Election Form most recently
         accepted by the Committee shall govern the payout of the Retirement
         Benefit. For Retirements on or after January 1, 2002, the Committee, in
         its sole discretion, may cause the Retirement Benefit to be paid in a
         lump sum or pursuant to the Annual Installment Method of not more than
         5 years irrespective of the Election Form most recently accepted. If a
         Participant does not make any election with respect to the payment of
         the Retirement Benefit, then such benefit shall be payable in a lump
         sum. The lump sum payment shall be made, or installment payments shall
         commence, no later than the January following the Participant's
         Retirement. The Committee, in its sole discretion, may accelerate
         commencement of the Retirement Benefit. Any payment made shall be
         subject to the Deduction Limitation.

5.3      DEATH PRIOR TO COMPLETION OF RETIREMENT BENEFIT. If a Participant dies
         after Retirement but before the Retirement Benefit is paid in full, the
         Participant's unpaid Retirement Benefit payments shall continue and
         shall be paid to the Participant's Beneficiary (a) over the remaining
         number of months and in the same amounts as that benefit would have
         been paid to the Participant had the Participant survived, or (b) in a
         lump sum, if requested by the Beneficiary and allowed in the sole
         discretion of the Committee, that is equal to the Participant's unpaid
         remaining Account Balance.

Amended and Restated December 1, 2002

                                      -18-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                    ARTICLE 6
                         PRE-RETIREMENT SURVIVOR BENEFIT

6.1      PRE-RETIREMENT SURVIVOR BENEFIT. Subject to the Deduction Limitation,
         the Participant's Beneficiary shall receive a Pre-Retirement Survivor
         Benefit equal to the Participant's Account Balance if the Participant
         dies before he or she Retires, experiences a Termination of Employment
         or suffers a Disability.

6.2      PAYMENT OF PRE-RETIREMENT SURVIVOR BENEFIT. A Participant, in
         connection with his or her commencement of participation in the Plan,
         shall elect on an Election Form whether the Pre-Retirement Survivor
         Benefit shall be received by his or her Beneficiary in a lump sum or
         pursuant to an Annual Installment Method of 5, 10 or 15 years. The
         Participant may annually change this election to an allowable
         alternative payout period by submitting a new Election Form to the
         Committee, which form must be accepted by the Committee in its sole
         discretion. The Election Form most recently accepted by the Committee
         prior to the Participant's death shall govern the payout of the
         Participant's Pre-Retirement Survivor Benefit. If a Participant does
         not make any election with respect to the payment of the Pre-Retirement
         Survivor Benefit, then such benefit shall be paid in a lump sum.
         Despite the foregoing, if the Participant's Account Balance at the time
         of his or her death is less than $25,000, payment of the Pre-Retirement
         Survivor Benefit may be made, in the sole discretion of the Committee,
         in a lump sum or pursuant to an Annual Installment Method of not more
         than 5 years. The lump sum payment shall be made, or installment
         payments shall commence, no later than the January following the
         Participant's death. The Committee, in its sole discretion, may
         accelerate commencement of the Pre-Retirement Survivor Benefit. Any
         payment made shall be subject to the Deduction Limitation. In no event
         will payments commence prior to such time as the Committee is provided
         with proof satisfactory to the Committee of the Participant's Death.

Amended and Restated December 1, 2002

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MASTER PLAN DOCUMENT CONTINUED...

                                    ARTICLE 7
                               TERMINATION BENEFIT

7.1      TERMINATION BENEFIT. Subject to the Deduction Limitation, the
         Participant shall receive a Termination Benefit, which shall be equal
         to the Participant's vested Account Balance if a Participant
         experiences a Termination of Employment prior to his or her Retirement,
         death or Disability.

7.2      PAYMENT OF TERMINATION BENEFIT. If the Participant's vested Account
         Balance at the time of his or her Termination of Employment is less
         than $25,000, payment of his or her Termination Benefit shall be paid
         in a lump sum. If his or her vested Account Balance at such time is
         equal to or greater than that amount, the Committee, in its sole
         discretion, may cause the Termination Benefit to be paid in a lump sum
         or in substantially equal annual installment payments over a period of
         time that does not exceed five years in duration. The lump sum payment
         shall be made, or installment payments shall commence, no later than
         the January following Termination of Employment. The Committee, in its
         sole discretion, may accelerate commencement of the Termination
         Benefit. Any payment made shall be subject to the Deduction Limitation.

Amended and Restated December 1, 2002

                                      -20-

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                                    ARTICLE 8
                          DISABILITY WAIVER AND BENEFIT

8.1      DISABILITY WAIVER.

         (a)      WAIVER OF DEFERRAL. A Participant who is determined by the
                  Committee to be suffering from a Disability shall be excused
                  from fulfilling that portion of the Annual Deferral Amount
                  commitment that would otherwise have been withheld from a
                  Participant's Base Annual Salary and Annual Bonus for the Plan
                  Year during which the Participant first suffers a Disability.
                  During the period of Disability, the Participant shall not be
                  allowed to make any additional deferral elections, but will
                  continue to be considered a Participant for all other purposes
                  of this Plan.

         (b)      RETURN TO WORK. If a Participant returns to employment with an
                  Employer after a Disability ceases, the Participant may elect
                  to defer an Annual Deferral Amount for the Plan Year following
                  his or her return to employment or service and for every Plan
                  Year thereafter while a Participant in the Plan; provided such
                  deferral elections are otherwise allowed and an Election Form
                  is delivered to and accepted by the Committee for each such
                  election in accordance with Section 3.3 above.

8.2      CONTINUED ELIGIBILITY; DISABILITY BENEFIT. A Participant suffering a
         Disability shall, for benefit purposes under this Plan, continue to be
         considered to be employed and shall be eligible for the benefits
         provided for in Articles 4, 5, 6 or 7 in accordance with the provisions
         of those Articles. Notwithstanding the above, the Committee shall have
         the right to, in its sole and absolute discretion and for purposes of
         this Plan only, and must in the case of a Participant who is otherwise
         eligible to Retire, deem the Participant to have experienced a
         Termination of Employment, or in the case of a Participant who is
         eligible to Retire, to have Retired, at any time (or in the case of a
         Participant who is eligible to Retire, as soon as practicable) after
         such Participant is determined to be suffering a Disability, in which
         case the Participant shall receive a Disability Benefit equal to his or
         her Account Balance at the time of the Committee's determination;
         provided, however, that should the Participant otherwise have been
         eligible to Retire, he or she shall be paid in accordance with Article
         5. The Disability Benefit shall be paid in a lump sum within 60 days of
         the Committee's exercise of such right. Any payment made shall be
         subject to the Deduction Limitation.

Amended and Restated December 1, 2002

                                      -21-

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                                    ARTICLE 9
                             BENEFICIARY DESIGNATION

9.1      BENEFICIARY. Each Participant shall have the right, at any time, to
         designate his or her Beneficiary(ies) (both primary as well as
         contingent) to receive any benefits payable under the Plan to a
         beneficiary upon the death of a Participant. The Beneficiary designated
         under this Plan may be the same as or different from the Beneficiary
         designation under any other plan of an Employer in which the
         Participant participates.

9.2      BENEFICIARY DESIGNATION; CHANGE. A Participant shall designate his or
         her Beneficiary by completing and signing the Beneficiary Designation
         Form, and returning it to the Committee or its designated agent. A
         Participant shall have the right to change a Beneficiary by completing,
         signing and otherwise complying with the terms of the Beneficiary
         Designation Form and the Committee's rules and procedures, as in effect
         from time to time. Upon the acceptance by the Committee of a new
         Beneficiary Designation Form, all Beneficiary designations previously
         filed shall be canceled. The Committee shall be entitled to rely on the
         last Beneficiary Designation Form filed by the Participant and accepted
         by the Committee prior to his or her death.

9.3      ACKNOWLEDGMENT. No designation or change in designation of a
         Beneficiary shall be effective until received and acknowledged in
         writing by the Committee or its designated agent.

9.4      NO BENEFICIARY DESIGNATION. If a Participant fails to designate a
         Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all
         designated Beneficiaries predecease the Participant or die prior to
         complete distribution of the Participant's benefits, then the
         Participant's designated Beneficiary shall be deemed to be his or her
         surviving spouse. If the Participant has no surviving spouse, the
         benefits remaining under the Plan to be paid to a Beneficiary shall be
         payable to the then living issue of the Participant per stirpes and, if
         there is no such issue, to the executor or personal representative of
         the Participant's estate.

9.5      DOUBT AS TO BENEFICIARY. If the Committee has any doubt as to the
         proper Beneficiary to receive payments pursuant to this Plan, the
         Committee shall have the right, exercisable in its discretion, to cause
         the Participant's Employer to withhold such payments until this matter
         is resolved to the Committee's satisfaction.

9.6      DISCHARGE OF OBLIGATIONS. The payment of benefits under the Plan to a
         Beneficiary shall fully and completely discharge all Employers and the
         Committee from all further obligations under this Plan with respect to
         the Participant, and that Participant's Plan Agreement shall terminate
         upon such full payment of benefits.

Amended and Restated December 1, 2002

                                      -22-

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MASTER PLAN DOCUMENT CONTINUED...

                                   ARTICLE 10
                                LEAVE OF ABSENCE

10.1     PAID LEAVE OF ABSENCE. If a Participant is authorized by the
         Participant's Employer for any reason to take a paid leave of absence
         from the employment of the Employer, the Participant shall continue to
         be considered employed by the Employer and the Annual Deferral Amount
         shall continue to be withheld during such paid leave of absence in
         accordance with Section 3.4.

10.2     UNPAID LEAVE OF ABSENCE. If a Participant is authorized by the
         Participant's Employer for any reason to take an unpaid leave of
         absence from the employment of the Employer, the Participant shall
         continue to be considered employed by the Employer and the Participant
         shall be excused from making deferrals until the earlier of the date
         the leave of absence expires or the Participant returns to a paid
         employment status. Upon such expiration or return, deferrals shall
         resume for the remaining portion of the Plan Year in which the
         expiration or return occurs, based on the deferral election, if any,
         made for that Plan Year. If no election was made for that Plan Year, no
         deferral shall be withheld.

Amended and Restated December 1, 2002

                                      -23-

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                                   ARTICLE 11
                     TERMINATION, AMENDMENT OR MODIFICATION

11.1     TERMINATION. Although each Employer anticipates that it will continue
         the Plan for an indefinite period of time, there is no guarantee that
         any Employer will continue the Plan or will not terminate the Plan at
         any time in the future. Accordingly, each Employer reserves the right
         to discontinue its sponsorship of the Plan and/or to terminate the Plan
         at any time with respect to any or all of its participating Employees,
         by action of its board of directors or any duly authorized committee
         thereof. Upon the termination of the Plan with respect to any Employer,
         the Plan Agreements of the affected Participants who are employed by
         that Employer shall terminate and their Account Balances, determined as
         if they had experienced a Termination of Employment on the date of Plan
         termination or, if Plan termination occurs after the date upon which a
         Participant was eligible to Retire, then with respect to that
         Participant as if he or she had Retired on the date of Plan
         termination, shall be paid to the Participants as follows: Prior to a
         Change in Control, if the Plan is terminated with respect to all of its
         Participants, an Employer shall have the right, in its sole discretion,
         and notwithstanding any elections made by the Participant, to pay such
         benefits in a lump sum or pursuant to an Annual Installment Method of
         up to 15 years, with amounts credited and debited during the
         installment period as provided herein. If the Plan is terminated with
         respect to less than all of its Participants, an Employer shall be
         required to pay such benefits in a lump sum. After a Change in Control,
         the Employer shall be required to pay such benefits in a lump sum. The
         termination of the Plan shall not adversely affect any Participant or
         Beneficiary who has become entitled to the payment of any benefits
         under the Plan as of the date of termination; provided however, that
         the Employer shall have the right to accelerate installment payments
         without a premium or prepayment penalty by paying the Account Balance
         in a lump sum or pursuant to an Annual Installment Method using fewer
         years (provided that the present value of all payments that will have
         been received by a Participant at any given point of time under the
         different payment schedule shall equal or exceed the present value of
         all payments that would have been received at that point in time under
         the original payment schedule).

11.2     AMENDMENT. Any Employer may, at any time, amend or modify the Plan in
         whole or in part with respect to that Employer by the action of its
         board of directors or any duly authorized committee thereof; provided,
         however, that no amendment or modification shall be effective to
         decrease or restrict the value of a Participant's Account Balance in
         existence at the time the amendment or modification is made, calculated
         as if the Participant had experienced a Termination of Employment as of
         the effective date of the amendment or modification or, if the
         amendment or modification occurs after the date upon which the
         Participant was eligible to Retire, the Participant had Retired as of
         the effective date of the amendment or modification. The amendment or
         modification of the Plan shall not affect any Participant or
         Beneficiary who has become entitled to the payment of benefits under
         the Plan as of the date of the amendment or modification; provided,
         however, that the Employer shall have the right

Amended and Restated December 1, 2002

                                      -24-

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MASTER PLAN DOCUMENT CONTINUED...

         to accelerate installment payments by paying the Account Balance in a
         lump sum or pursuant to an Annual Installment Method using fewer years
         (provided that the present value of all payments that will have been
         received by a Participant at any given point of time under the
         different payment schedule shall equal or exceed the present value of
         all payments that would have been received at that point in time under
         the original payment schedule).

11.3     PLAN AGREEMENT. Despite the provisions of Sections 11.1 and 11.2 above,
         if a Participant's Plan Agreement contains benefits or limitations that
         are not in this Plan document, the Employer may only amend or terminate
         such provisions with the consent of the Participant.

11.4     EFFECT OF PAYMENT. The full payment of the applicable benefit under
         Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all
         obligations to a Participant and his or her designated Beneficiaries
         under this Plan and the Participant's Plan Agreement shall terminate.

Amended and Restated December 1, 2002

                                      -25-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                   ARTICLE 12
                                 ADMINISTRATION

12.1     COMMITTEE DUTIES. This Plan shall be administered by a Committee, which
         shall consist of the Board, or such committee as the Board shall
         appoint. Members of the Committee may be Participants under this Plan.
         The Committee shall also have the complete discretion and authority to
         (i) make, amend, interpret, and enforce all appropriate rules and
         regulations for the administration of this Plan and (ii) decide or
         resolve any and all questions including interpretations of this Plan,
         as may arise in connection with the Plan. Any individual serving on the
         Committee who is a Participant shall not vote or act on any matter
         relating solely to himself or herself. When making a determination or
         calculation, the Committee shall be entitled to rely on information
         furnished by a Participant or the Company.

12.2     AGENTS. In the administration of this Plan, the Committee may, from
         time to time, employ agents and delegate to them such administrative
         duties as it sees fit (including acting through a duly appointed
         representative) and may from time to time consult with counsel who may
         be counsel to any Employer.

12.3     BINDING EFFECT OF DECISIONS. The decision or action of the Committee
         with respect to any question arising out of or in connection with the
         administration, interpretation and application of the Plan and the
         rules and regulations promulgated hereunder shall be final and
         conclusive and binding upon all persons having any interest in the
         Plan.

12.4     INDEMNITY OF COMMITTEE. All Employers shall indemnify and hold harmless
         the members of the Committee, and any Employee to whom the duties of
         the Committee may be delegated, against any and all claims, losses,
         damages, expenses or liabilities arising from any action or failure to
         act with respect to this Plan, except in the case of willful misconduct
         by the Committee or any of its members or any such Employee.

12.5     EMPLOYER INFORMATION. To enable the Committee to perform its functions,
         each Employer shall supply full and timely information to the Committee
         on all matters relating to the compensation of its Participants, the
         date and circumstances of the Retirement, Disability, death or
         Termination of Employment of its Participants, and such other pertinent
         information as the Committee may reasonably require.

12.6     MULTIPLE COMMITTEES. The Board may divide the duties of the Committee
         among more than one Committee. If more than one Committee is
         established, the Board shall designate the scope of authority of each
         such Committee. Each such Committee shall have all the powers and
         privileges set forth above subject only to any limitations on the scope
         of its authority imposed by the Board.

Amended and Restated December 1, 2002

                                      -26-

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MASTER PLAN DOCUMENT CONTINUED...

                                   ARTICLE 13
                          OTHER BENEFITS AND AGREEMENTS

13.1     COORDINATION WITH OTHER BENEFITS. The benefits provided for a
         Participant and Participant's Beneficiary under the Plan are in
         addition to any other benefits available to such Participant under any
         other plan or program for employees of the Participant's Employer. The
         Plan shall supplement and shall not supersede, modify or amend any
         other such plan or program except as may otherwise be expressly
         provided.

Amended and Restated December 1, 2002

                                      -27-

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MASTER PLAN DOCUMENT CONTINUED...

                                   ARTICLE 14
                                CLAIMS PROCEDURES

14.1     PRESENTATION OF CLAIM. Any Participant or Beneficiary of a deceased
         Participant (such Participant or Beneficiary being referred to below as
         a "Claimant") may deliver to the Committee a written claim for a
         determination with respect to the amounts distributable to such
         Claimant from the Plan. If such a claim relates to the contents of a
         notice received by the Claimant, the claim must be made within 60 days
         after such notice was received by the Claimant. All other claims must
         be made within 180 days of the date on which the event that caused the
         claim to arise occurred. The claim must state with particularity the
         determination desired by the Claimant.

14.2     NOTIFICATION OF DECISION. The Committee shall consider a Claimant's
         claim within a reasonable time, and shall notify the Claimant in
         writing:

         (a)      that the Claimant's requested determination has been made, and
                  that the claim has been allowed in full; or

         (b)      that the Committee has reached a conclusion contrary, in whole
                  or in part, to the Claimant's requested determination, and
                  such notice must set forth in a manner calculated to be
                  understood by the Claimant:

                  (i)      the specific reason(s) for the denial of the claim,
                           or any part of it;

                  (ii)     specific reference(s) to pertinent provisions of the
                           Plan upon which such denial was based;

                  (iii)    a description of any additional material or
                           information necessary for the Claimant to perfect the
                           claim, and an explanation of why such material or
                           information is necessary; and

                  (iv)     an explanation of the claim review procedure set
                           forth in Section 14.3 below.

14.3     REVIEW OF A DENIED CLAIM. Within 60 days after receiving a notice from
         the Committee that a claim has been denied, in whole or in part, a
         Claimant (or the Claimant's duly authorized representative) may file
         with the Committee a written request for a review of the denial of the
         claim. Thereafter, but not later than 30 days after the review
         procedure began, the Claimant (or the Claimant's duly authorized
         representative):

         (a)      may review pertinent documents;

         (b)      may submit written comments or other documents; and/or

         (c)      may request a hearing, which the Committee, in its sole
                  discretion, may grant.

Amended and Restated December 1, 2002

                                      -28-

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MASTER PLAN DOCUMENT CONTINUED...

14.4     DECISION ON REVIEW. The Committee shall render its decision on review
         promptly, and not later than 60 days after the filing of a written
         request for review of the denial, unless a hearing is held or other
         special circumstances require additional time, in which case the
         Committee's decision must be rendered within 120 days after such date.
         Such decision must be written in a manner calculated to be understood
         by the Claimant, and it must contain:

         (a)      specific reasons for the decision;

         (b)      specific reference(s) to the pertinent Plan provisions upon
                  which the decision was based; and

         (c)      such other matters as the Committee deems relevant.

14.5     LEGAL ACTION. A Claimant's compliance with the foregoing provisions of
         this Article 14 is a mandatory prerequisite to a Claimant's right to
         commence any legal action with respect to any claim for benefits under
         this Plan.

Amended and Restated December 1, 2002

                                      -29-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                   ARTICLE 15
                                      TRUST

15.1     ESTABLISHMENT OF THE TRUST. The Company shall establish the Trust, and
         each Employer shall at least annually transfer over to the Trust such
         assets as the Employer determines, in its sole discretion, are
         necessary to provide, on a present value basis, for its respective
         future liabilities created with respect to the Annual Deferral Amounts
         and Company Matching Amounts for such Employer's Participants for all
         periods prior to the transfer, as well as any debits and credits to the
         Participants' Account Balances for all periods prior to the transfer,
         taking into consideration the value of the assets in the trust at the
         time of the transfer.

15.2     INTERRELATIONSHIP OF THE PLAN AND THE TRUST. The provisions of the Plan
         and the Plan Agreement shall govern the rights of a Participant to
         receive distributions pursuant to the Plan. The provisions of the Trust
         shall govern the rights of the Employers, Participants and the
         creditors of the Employers to the assets transferred to the Trust. Each
         Employer shall at all times remain liable to carry out its obligations
         under the Plan.

15.3     DISTRIBUTIONS FROM THE TRUST. Each Employer's obligations under the
         Plan may be satisfied with Trust assets distributed pursuant to the
         terms of the Trust, and any such distribution shall reduce the
         Employer's obligations under this Plan.

Amended and Restated December 1, 2002

                                      -30-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

                                   ARTICLE 16
                                  MISCELLANEOUS

16.1     STATUS OF PLAN. The Plan is intended to be a plan that is not qualified
         within the meaning of Code Section 401(a) and that "is unfunded and is
         maintained by an employer primarily for the purpose of providing
         deferred compensation for a select group of management or highly
         compensated employee" within the meaning of ERISA Sections 201(2),
         301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted
         to the extent possible in a manner consistent with that intent.

16.2     UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries,
         heirs, successors and assigns shall have no legal or equitable rights,
         interests or claims in any property or assets of an Employer. For
         purposes of the payment of benefits under this Plan, any and all of an
         Employer's assets shall be, and remain, the general, unpledged
         unrestricted assets of the Employer. An Employer's obligation under the
         Plan shall be merely that of an unfunded and unsecured promise to pay
         money in the future.

16.3     EMPLOYER'S LIABILITY. An Employer's liability for the payment of
         benefits shall be defined only by the Plan and the Plan Agreement, as
         entered into between the Employer and a Participant. An Employer shall
         have no obligation to a Participant under the Plan except as expressly
         provided in the Plan and his or her Plan Agreement.

16.4     NONASSIGNABILITY. Neither a Participant nor any other person shall have
         any right to commute, sell, assign, transfer, pledge, anticipate,
         mortgage or otherwise encumber, transfer, hypothecate, alienate or
         convey in advance of actual receipt, the amounts, if any, payable
         hereunder, or any part thereof, which are, and all rights to which are
         expressly declared to be, unassignable and non-transferable. No part of
         the amounts payable shall, prior to actual payment, be subject to
         seizure, attachment, garnishment or sequestration for the payment of
         any debts, judgments, alimony or separate maintenance owed by a
         Participant or any other person, be transferable by operation of law in
         the event of a Participant's or any other person's bankruptcy or
         insolvency or be transferable to a spouse as a result of a property
         settlement or otherwise.

16.5     NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this Plan
         shall not be deemed to constitute a contract of employment between any
         Employer and the Participant. Such employment is hereby acknowledged to
         be an "at will" employment relationship that can be terminated at any
         time for any reason, or no reason, with or without cause, and with or
         without notice, unless expressly provided in a written employment
         agreement. Nothing in this Plan shall be deemed to give a Participant
         the right to be retained in the service of any Employer, either as an
         Employee or a Director, or to interfere with the right of any Employer
         to discipline or discharge the Participant at any time.

Amended and Restated December 1, 2002

                                      -31-

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16.6     FURNISHING INFORMATION. A Participant or his or her Beneficiary will
         cooperate with the Committee by furnishing any and all information
         requested by the Committee and take such other actions as may be
         requested in order to facilitate the administration of the Plan and the
         payments of benefits hereunder, including but not limited to taking
         such physical examinations as the Committee may deem necessary.

16.7     TERMS. Whenever any words are used herein in the masculine, they shall
         be construed as though they were in the feminine in all cases where
         they would so apply; and whenever any words are used herein in the
         singular or in the plural, they shall be construed as though they were
         used in the plural or the singular, as the case may be, in all cases
         where they would so apply.

16.8     CAPTIONS. The captions of the articles, sections and paragraphs of this
         Plan are for convenience only and shall not control or affect the
         meaning or construction of any of its provisions.

16.9     GOVERNING LAW. Subject to ERISA, the provisions of this Plan shall be
         construed and interpreted according to the internal laws of the State
         of Rhode Island without regard to its conflicts of laws principles.

16.10    NOTICE. Any notice or filing required or permitted to be given to the
         Committee under this Plan shall be sufficient if in writing and
         hand-delivered, or sent by registered or certified mail, to the address
         below:

                           Benefits Committee
                           c/o Corporate Benefits, A-951
                           Hasbro, Inc.
                           1027 Newport Avenue
                           Pawtucket, RI 02862

         Such notice shall be deemed given as of the date of delivery or, if
         delivery is made by mail, as of the date shown on the postmark on the
         receipt for registration or certification.

         Any notice or filing required or permitted to be given to a Participant
         under this Plan shall be sufficient if in writing and hand-delivered,
         or sent by mail, to the last known address of the Participant.

16.11    SUCCESSORS. The provisions of this Plan shall bind and inure to the
         benefit of the Participant's Employer and its successors and assigns
         and the Participant and the Participant's designated Beneficiaries.

16.12    VALIDITY. In case any provision of this Plan shall be illegal or
         invalid for any reason, said illegality or invalidity shall not affect
         the remaining parts hereof, but this Plan shall be construed and
         enforced as if such illegal or invalid provision had never been
         inserted herein.

Amended and Restated December 1, 2002

                                      -32-

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16.13    INCOMPETENT. If the Committee determines in its discretion that a
         benefit under this Plan is to be paid to a minor, a person declared
         incompetent or to a person incapable of handling the disposition of
         that person's property, the Committee may direct payment of such
         benefit to the guardian, legal representative or person having the care
         and custody of such minor, incompetent or incapable person. The
         Committee may require proof of minority, incompetence, incapacity or
         guardianship, as it may deem appropriate prior to distribution of the
         benefit. Any payment of a benefit shall be a payment for the account of
         the Participant and the Participant's Beneficiary, as the case may be,
         and shall be a complete discharge of any liability under the Plan for
         such payment amount.

16.14    DISTRIBUTION IN THE EVENT OF TAXATION.

         (a)      IN GENERAL. If, for any reason, all or any portion of a
                  Participant's benefits under this Plan becomes taxable to the
                  Participant prior to receipt, a Participant may petition the
                  Committee before a Change in Control, or the trustee of the
                  Trust after a Change in Control, for a distribution of that
                  portion of his or her benefit that has become taxable. Upon
                  the grant of such a petition, which grant shall not be
                  unreasonably withheld (and, after a Change in Control, shall
                  be granted), a Participant's Employer shall distribute to the
                  Participant immediately available funds in an amount equal to
                  the taxable portion of his or her benefit (which amount shall
                  not exceed a Participant's unpaid Account Balance under the
                  Plan). If the petition is granted, the tax liability
                  distribution shall be made within 90 days of the date when the
                  Participant's petition is granted. Such a distribution shall
                  affect and reduce the benefits to be paid under this Plan.

         (b)      TRUST. If the Trust terminates in accordance with Section
                  3.6(e) of the Trust and benefits are distributed from the
                  Trust to a Participant in accordance with that Section, the
                  Participant's benefits under this Plan shall be reduced to the
                  extent of such distributions.

16.15    INSURANCE. The Employers, on their own behalf or on behalf of the
         trustee of the Trust, and, in their sole discretion, may apply for and
         procure insurance on the life of the Participant, in such amounts and
         in such forms as the Trust may choose. The Employers or the trustee of
         the Trust, as the case may be, shall be the sole owner and beneficiary
         of any such insurance. The Participant shall have no interest
         whatsoever in any such policy or policies, and at the request of the
         Employers shall submit to medical examinations and supply such
         information and execute such documents as may be required by the
         insurance company or companies to whom the Employers have applied for
         insurance.

16.16    LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL. The Company and
         each Employer is aware that upon the occurrence of a Change in Control,
         the Board or the board of directors of a Participant's Employer (which
         might then be composed of new members) or a shareholder of the Company
         or the Participant's Employer, or of any successor corporation

Amended and Restated December 1, 2002

                                      -33-

<PAGE>

MASTER PLAN DOCUMENT CONTINUED...

         might then cause or attempt to cause the Company, the Participant's
         Employer or such successor to refuse to comply with its obligations
         under the Plan and might cause or attempt to cause the Company or the
         Participant's Employer to institute, or may institute, litigation
         seeking to deny Participants the benefits intended under the Plan. In
         these circumstances, the purpose of the Plan could be frustrated.
         Accordingly, if, following a Change in Control, it should appear to any
         Participant that the Company, the Participant's Employer or any
         successor corporation has failed to comply with any of its obligations
         under the Plan or any agreement thereunder or, if the Company, such
         Employer or any other person takes any action to declare the Plan void
         or unenforceable or institutes any litigation or other legal action
         designed to deny, diminish or to recover from any Participant the
         benefits intended to be provided, then the Company and the
         Participant's Employer irrevocably authorize such Participant to retain
         counsel of his or her choice at the expense of the Company and the
         Participant's Employer (who shall be jointly and severally liable) to
         represent such Participant in connection with the initiation or defense
         of any litigation or other legal action, whether by or against the
         Company, the Participant's Employer or any director, officer,
         shareholder or other person affiliated with the Company, the
         Participant's Employer or any successor thereto in any jurisdiction.

         IN WITNESS WHEREOF, the Company has caused this instrument to be
executed by its duly authorized officer as of December 1, 2002.

                               "Company"

                               Hasbro, Inc., a Rhode Island corporation

                               By: \s\ Alfred J. Verrecchia
                                   ------------------------

Amended and Restated December 1, 2002

                                      -34-

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