Document:

<PAGE>

                                                                    EXHIBIT 10.4

                                August 17, 2000

The Industrial Bank of Japan, Limited,
 as Administrative Agent and sole Lender
350 South Grand Avenue, Suite 1500
Los Angeles, California 90071
Attention:  J. Blake Seaton
            Vice President

        Re:   First Amendment to Term Loan Agreement

Ladies and Gentlemen:

     We refer to the Term Loan Agreement dated as of July 17, 2000 (the "Loan
                                                                         ----
Agreement") among Mattel, Inc. (the "Company"), The Industrial Bank of Japan,
---------                            -------
Limited, as sole lender thereunder (in such capacity, the "Lender"), The
                                                           ------
Industrial Bank of Japan, Limited, as administrative agent for the Lender (in
such capacity, the "Administrative Agent") and as co-syndication agent, and
                    --------------------
Bear, Stearns & Co. Inc., as co-syndication agent.  Terms defined in the Loan
Agreement and not otherwise defined herein have the same respective meanings
when used herein.

     1.  Effective as of the date of this letter amendment but subject to the
terms and conditions hereof, the Loan Agreement is hereby amended as set forth
below.

         The definition of "Requisite Lenders" in Section 1.01 of the Loan
Agreement is amended in full to read as follows:

         "'Requisite Lenders' means, as at any date of determination, (a) so
           -----------------
     long as IBJ has greater than 62.5% of the then aggregate unpaid principal
     amount of the Loans, Lenders having at least 85% of the then aggregate
     unpaid principal amount of the Loans, (b) so long as IBJ has greater than
     47.5%, but less than or equal to 62.5%, of the then aggregate unpaid
     principal amount of the Loans, Lenders having at least 75% of the then
     aggregate unpaid principal amount of the Loans, (c) so long as IBJ has
     greater than 25%, but less than or equal to 47.5%, of the then aggregate
     unpaid principal amount of the Loans, Lenders having at least 66.7% of the
     then aggregate unpaid principal amount of the Loans and (d) so long as IBJ
     has less than or equal to 25% of the then aggregate unpaid principal amount
     of the Loans, Lenders having at least 51% of the then aggregate unpaid
     principal amount of the Loans."
<PAGE>

August 17, 2000
Page 2

     2.  The Company hereby represents and warrants for the benefit of the
Lender and the Administrative Agent that no event has occurred and is
continuing, or would result from the effectiveness of this letter amendment,
that constitutes a Default or an Event of Default.

     3.  If you agree to the terms and conditions set forth herein, please
evidence your agreement by executing and returning six counterparts of this
letter amendment to the Administrative Agent. This letter amendment shall become
effective as of the date first set forth above when and if (a) the Company and
the Lender execute counterparts of this letter amendment and deliver them to the
Administrative Agent and (b) Fisher-Price and Mattel Sales execute counterparts
of this letter amendment, evidencing their consent hereto, and deliver them to
the Administrative Agent.

     4.  On and after the effective date of this letter amendment, each
reference in the Loan Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import referring to the Loan Agreement, and each
reference in the other Loan Documents to "the Loan Agreement," "thereunder,"
"thereof," "therein" or words of like import referring to the Loan Agreement,
shall mean and be a reference to the Loan Agreement as amended by this letter
amendment. The Loan Agreement, as amended by this letter amendment, is and shall
continue to be in full force and effect and is hereby ratified and confirmed in
all respects.

     5.  This letter amendment may be executed in any number of counterparts and
by the parties hereto in separate counterparts, each of which counterparts shall
be an original and all of which taken together shall constitute one and the same
letter amendment.

     6.  THIS LETTER AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REFERENCE TO THE
CHOICE-OF-LAW PRINCIPLES THEREOF.

                                         Very truly yours,

                                         MATTEL, INC.

                                         By: /s/ William Stavro
                                            -----------------------------
                                              William Stavro
                                              Senior Vice President
                                               and Treasurer
<PAGE>

August 17, 2000
Page 3

Agreed as of the date first written above:

THE INDUSTRIAL BANK OF JAPAN, LIMITED,
 as Administrative Agent and sole Lender

By: /s/ Vicente L. Timiraos
   ---------------------------
Name: Vicente L. Timiraos
     -------------------------
Title: Joint General Manager
      ------------------------

Each of (i) FISHER-PRICE, INC., as guarantor under that certain Fisher-Price
Continuing Guaranty dated as of July 17, 2000 and (ii) MATTEL SALES CORP., as
guarantor under that certain Mattel Sales Corp. Continuing Guaranty dated as of
July 17, 2000 (each a "Guaranty"), each in favor of The Industrial Bank of
                       --------
Japan, Limited, as Administrative Agent, (the "Agent"), hereby consents to the
                                               -----
above letter amendment and hereby confirms and agrees that its Guaranty is and
shall continue to be in full force and effect and is ratified and confirmed in
all respects, except that, on and after the effective date of the letter
amendment, each reference in such Guaranty to "the Loan Agreement,"
"thereunder," "thereof," "therein" or any other expression of like import
referring to the Loan Agreement (as defined in the letter amendment) shall mean
and be a reference to the Loan Agreement as amended by the letter amendment.

FISHER-PRICE, INC

By: /s/ William Stavro
    ---------------------------
Name:  William Stavro
      -------------------------
Title:  Senior Vice President
       ------------------------
        and Treasurer
<PAGE>

August 17, 2000
Page 4

MATTEL SALES CORP.

By:  /s/ William Stavro
    ----------------------------
Name:  William Stavro
      --------------------------
Title:  Senior Vice President and Treasurer
       -------------------------------------<PAGE>

                                                                    Exhibit 10.6

                                    AGREEMENT

                            DATED 30th November, 2001

                                     Between

                      SOCIETE GENERALE BANK NEDERLAND N.V.
                                   as the Bank

                       MATTEL INTERNATIONAL HOLDINGS B.V.

                                  as Depositor

                                       and

                               MATTEL FRANCE S.A.

                                       and

                                   MATTEL GmbH

                                 as the Sellers

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

                                MASTER AGREEMENT
                                     FOR THE
                             TRANSFER OF RECEIVABLES

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

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                                    CONTENTS

<TABLE>
<CAPTION>
Clause                                                                      Page
<S>                                                                         <C>
1.       Definitions ......................................................    1
2.       Purpose and Commitment Duration ..................................   20
3.       Nature of Obligations ............................................   21
4.       Conditions Precedent .............................................   22
5.       Transfer of Relevant Receivables .................................   23
6.       Collection Mandates and Notices of Transfer ......................   25
7.       Collection .......................................................   26
8.       Settlement and Payments ..........................................   28
9.       Deemed Collections ...............................................   31
10.      Representations Relating to Transferred Receivables                  34
11.      Representations Relating to Eligible Transferred Receivables .....   35
12.      General Representations ..........................................   35
13.      Information Undertakings .........................................   38
14.      General Undertakings .............................................   41
15.      Events of Early Amortisation .....................................   49
16.      The Bank's Funding ...............................................   53
17.      Cancellation of the Maximum Amount of the Bank's Funding .........   56
18.      Deposits .........................................................   56
19.      Transfer Fee .....................................................   57
20.      Commitment Fee ...................................................   61
21.      Taxes ............................................................   62
22.      Increased Costs ..................................................   63
23.      Indemnities ......................................................   65
24.      Interest on Late Payments ........................................   67
25.      Fees and Expenses ................................................   67
26.      Payments .........................................................   67
27.      Substitution and Agency ..........................................   68
28.      Confidentiality ..................................................   68
29.      Transferability ..................................................   69
30.      Notices ..........................................................   69
31.      Waivers and Remedies Cumulative ..................................   70
32.      Authentication ...................................................   70
33.      Severability .....................................................   70
34.      Jurisdiction and Waiver of Immunity ..............................   71
35.      Governing Law ....................................................   71
</TABLE>

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<TABLE>
<CAPTION>
Schedules                                                                                            Page
<S>                                                                                                  <C>
1.   Conditions Precedent Documents
2.   Criteria for Relevant Receivables and Eligible Transferred Receivables
     Part I - Relevant Receivables
     Part II -Eligible Transferred Receivables
3.   Form of Assessment Reports
     Part I - For use by Mattel GmbH
     Part II - For use by Mattel France S.A.
4.   Form of Notice of Transfer
5.   Form of Transfer Documents
     Part I - For use with French law Sales Contracts
     Part II - For use with German law Sales Contracts
6.   Form of Transfer Request
7.   Form of Mandate Letter
8.   Form of Solvency Certificates
     Part I - Form of Auditors' Certificate
     Part II - Form of Officer's Certificate
9.   Reservations

Signatories
</TABLE>

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<PAGE>

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THIS AGREEMENT is dated 30th November, 2001 and made BETWEEN:

(1)      MATTEL INTERNATIONAL HOLDINGS B.V., a limited liability company
         organised under the laws of the Netherlands, having its registered
         office at Gondel 1, 1186 MJ Amstelveen, The Netherlands, registered
         with the Commercial Register of the Chamber of Commerce and Industries
         at Amsterdam under number 33 297 747 (the "Depositor");

(2)      MATTEL FRANCE S.A., a societe anonyme organised under the laws of
         France, having its registered office at 27-33 rue d'Antony SILIC 145,
         94150 Rungis, France, and registered with the Trade and Companies
         Registry of Creteil under number 692 039 688;

(3)      MATTEL GmbH, a limited liability company organised under the laws of
         Germany, having its registered office at An der Trift 75, 63303
         Dreieich, Germany, and registered with the commercial registry of the
         local court of Langen under number HRB3552,

(each of (2) and (3) being a "Seller" and together the "Sellers"); and

(4)      SOCIETE GENERALE BANK NEDERLAND N.V., a limited liability company
         organised under the laws of the Netherlands and licensed as a credit
         institution, having its registered office at Amstelplein 1, 1096 HA
         Amsterdam, The Netherlands, registered with the Trade Register of the
         Chamber of Commerce at Amsterdam, The Netherlands under number 33 196
         218 (the "Bank").

IT IS AGREED as follows:

1.       DEFINITIONS

1.1      Interpretation

         In this Agreement:

         "Additional Deposit"

         means the additional deposit made by the Depositor with the Bank in
         accordance with the terms of Clause 18 (Deposits) and the Master
         Additional Deposit Agreement.

         "Adverse Claim"

         means any claim of ownership, lien, security interest, mortgage,
         charge, or encumbrance, or other right or claim by or of any person.

         "Affiliate"

         means a Subsidiary or a holding company of a person or any other
         Subsidiary of that holding company and for these purposes "holding
         company" in respect of a person means an entity of which that person is
         a Subsidiary.

         "Agreement Expiry Date"

         means the earlier of the following:

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<PAGE>

                                       2

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         (a)      the first Business Day after the Commitment Termination Date
                  on which the Bank's Funding and all other amounts due to the
                  Bank under this Agreement have been repaid or paid in full; or

         (b)      the first anniversary of the Commitment Termination Date.

         "Amortisation Event"

         means an Event of Early Amortisation or any event which, with the
         giving of notice, expiration of any applicable grace period,
         determination of materiality or fulfilment of any other applicable
         condition (or any combination of the foregoing), would constitute an
         Event of Early Amortisation.

         "Amount Held by the Depositor"

         means, at any time, the aggregate amount representing the Bank's Share
         of Collections, which is standing to the credit of the Depositor's
         Account.

         "Amount Withheld by the Bank"

         means, at any time, the amount representing the Bank's Share of
         Collections, which is standing to the credit of the Bank's Account.

         "Antalis"

         means Antalis S.A., a company organised under French law, having its
         registered office at 127, rue Amelot - 75011 Paris, France, registered
         with the Companies Registry of Paris under n(degrees) B 335 076 220.

         "Assessment Date"

         means the last day of each calendar month or, in relation to any
         Initial Transfer Date, any other day agreed upon between the Bank and
         the Depositor (acting on behalf of the Obligors).

         "Assessment Report"

         means a report drawn up by a Seller or the Bank, as the case may be, on
         an Assessment Date or Interim Assessment Date, substantially in the
         form of the appropriate part of Schedule 3 for that Seller or in such
         other modified form as may be agreed between the Obligors and the Bank.

         "Associated Refinancing"

         means, in relation to any Tranche, a refinancing transaction the amount
         of which is applied exclusively to fund such Tranche.

         "Auditors' Certificate"

         means a certificate from a Seller's auditors substantially in the form
         of the appropriate part of Part I of Schedule 8.

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<PAGE>

                                       3

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         "Authorisation"

         means an authorisation, permit, authority, consent, approval,
         resolution, agreement, certificate, notarisation, licence, exemption,
         filing, registration or similar matter which may be required from any
         authority or person.

         "Average Term of Associated Refinancings"

         means, at any time, in relation to any Tranche, the number of days
         determined as being the weighted average of the number of days to
         elapse until the Maturity Date of each Associated Refinancing relating
         to such Tranche.

         "Average Term of Transferred Receivables"

         means, at any time, in relation to the Transferred Receivables, the
         number of days determined as being the weighted average of the number
         of days to elapse until the end of the month during which such
         Transferred Receivables become due and payable.

         "Bank's Account"

         means the account in the Bank's name opened by the Bank in the books of
         Societe Generale, Amsterdam branch, which shall record the Collections
         received by the Bank.

         "Bank's Funding"

         means, at any time, the aggregate outstanding amount at that time of
         Payments funded by the Bank out of its own resources (and not, for the
         avoidance of doubt, funded by either Deposit) which have not been
         repaid out of the allocation of Collections.

         "Bank's Percentage"

         means the percentage on each Initial Transfer Date and on each
         Information Date immediately preceding a Transfer Date which (a) the
         aggregate amount of the Bank's Funding on that date and the
         Subordinated Deposit on that date bears to (b) the Net Pool Balance
         (being the Net Pool Balance as at the immediately preceding Assessment
         Date or Interim Assessment Date, as the case may be). Such Bank's
         Percentage shall remain constant from the date it is calculated or
         recalculated until the next Information Date on which it is
         recalculated.

         "Bank's Share of Collections"

         means an amount initially equal to zero increased on each Settlement
         Date, by the amount equal to (i) the aggregate Euro Amount of
         Collections from the Collection Period ending on the immediately
         preceding Assessment Date multiplied by (ii) the Bank's Percentage as
         at the Initial Transfer Date or the Information Date occurring during
         that Collection Period (as appropriate) and which is allocated in
         accordance with Clause 8.2 (Allocation of Collections on Settlement
         Dates which are not Transfer Dates) or Clause 8.3 (Allocation of
         Collections on Settlement Dates which are Transfer Dates).

         "BT Rate"

         means the interest rate per annum applicable to the relevant tranche of
         billets de tresorerie, issued or to be issued from time to time by
         Antalis, and set in accordance with Clause 19.3 (Refinancing Rates).

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<PAGE>

                                       4

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         "Business Day"

         means any day other than a Saturday or a Sunday on which banks are
         simultaneously open for business in Amsterdam, Paris and Frankfurt and
         which is a TARGET Day.

         "Closing Documents"

         means, this Agreement, the Master Subordinated Deposit Agreement, the
         Master Additional Deposit Agreement, each Transfer Document and each
         Mandate Letter and any other document designated as such by the Bank
         and the Obligors.

         "Collection Mandate"

         has the meaning ascribed to it in Clause 6.1 (Collection Mandates).

         "Collection Period"

         means the period commencing on any Assessment Date, excluded, and
         ending on the next following Assessment Date, included.

         "Collections"

         means, at any time, in relation to the Transferred Receivables the
         aggregate of:

         (a)      all cash collections received by the Sellers or, as the case
                  may be, by the Bank which have actually been paid by the
                  Debtors or by any other person obliged to make payment in
                  respect of such Transferred Receivables or as a result of the
                  enforcement of the Related Security;

         (b)      Deemed Collections; and

         (c)      all payments made by the Sellers under Clause 5.5 (Transfer
                  back of Transferred Receivables) or Clause 9.2 (Transfers and
                  Deemed Collections).

         "Commercial Discount"

         means in relation to any Transferred Receivable, any decrease in the
         face value of such receivable resulting from the granting of any rebate
         or any discount for prompt payment, for quantity or as fidelity
         premium.

         "Commitment"

         means the commitment of the Bank to make Payments in accordance with
         this Agreement.

         "Commitment Fee"

         means the commitment fee to be paid in accordance with Clause 20
         (Commitment Fee).

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<PAGE>

                                       5

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         "Commitment Termination Date"

         means the earliest of the following dates:

         (a)      30th June, 2002 or, if that is not a Business Day, the
                  immediately preceding Business Day, (as this date may be
                  extended from time to time in accordance with Clause 2.2
                  (Duration of Commitment); or

         (b)      the date on which the Commitment is terminated in accordance
                  with Clauses 17.1 (Reduction of the Maximum amount of the
                  Bank's Funding), 15.17 (Termination) or 21.1 (Gross up).

         "Consolidated Tranche"

         means any Tranche resulting from the consolidation of two or more
         initial Tranches in accordance with Clause 16.5 (Division and
         Consolidation of Tranches).

         "Controlling Owner of the Sellers"

         means a company that owns and controls (whether directly or indirectly)
         at least 90% of the issued and fully paid up share capital and voting
         rights of each Seller.

         "CP Rate"

         means the interest rate per annum applicable to the relevant tranche
         euro-commercial paper, issued or to be issued from time to time by
         Antalis, and set in accordance with Clause 19.3 (Refinancing Rates).

         "Credit Insurance Policy"

         means any credit insurance policy subscribed to by a Seller with a
         Credit Insurer in order to cover the insolvency risk of any Debtor.

         "Credit Insurer"

         means any insurance company with which a Seller enters into a Credit
         Insurance Policy in order to cover the insolvency risk of any Debtor
         under one or more Relevant Receivables.

         "Credit Note"

         means, in relation to any Transferred Receivable, any rebate on, or
         decrease in the face value of, such receivable granted by a Seller in
         accordance with the Sales Administration Guidelines.

         "Debtor"

         means the primary obligor in respect of one or more Relevant
         Receivables or Transferred Receivables.

         "Deemed Collections"

         means any amount that any Seller is deemed to have received in the
         circumstances set out in Clause 9 (Deemed Collections).

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                                       6

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         "Default Base"

         means, in relation to any Collection Period (the "Relevant Collection
         Period"), the total amount of the Relevant Receivables which had a
         Maturity Date during the Collection Period which was two Collection
         Periods prior to the Relevant Collection Period.

         "Default Rate"

         means, in relation to any Collection Period, the ratio determined as of
         the Assessment Date related to such Collection Period by dividing (a)
         the aggregate Euro Amount of the Outstanding Amount of Relevant
         Receivables which became Defaulted Receivables during such Collection
         Period, by (b) the Default Base for such Collection Period.

         "Defaulted Receivable"

         means, at any time, any Relevant Receivable:

         (a) which remains unpaid by the relevant Debtor more than 60 days after
             the Maturity Date of such Relevant Receivable;

         (b) which is owed by a Debtor which has entered into Insolvency
             Proceedings and which has not been counted under (a) above;

         (c) for which, the relevant Debtor being doubtful, specific provisions
             have been made in the accounts of the relevant Seller or which has
             been written off in that Seller's accounts in accordance with
             applicable accounting principles (and which has not been counted
             for under (a) or (b) above).

         "Delinquency Rate"

         means, in relation to any Collection Period, the ratio determined as of
         the Assessment Date on which that Collection Period ends by dividing
         (a) the aggregate Euro Amount of Delinquent Receivables on such
         Assessment Date, by (b) the Euro Amount of the Outstanding Amount of
         Relevant Receivables on such Assessment Date.

         "Delinquent Receivable"

         means, at any time, any Relevant Receivable which:

         (a) remains unpaid by the relevant Debtor more than 30 days after the
             Maturity Date of such Relevant Receivable; and

         (b) is not a Defaulted Receivable.

         "Deposit"

         means the Additional Deposit or the Subordinated Deposit as the context
         so requires.

         "Depositor's Account"

         means the current account in the Depositor's name opened by the
         Depositor in the books of Societe Generale, Amsterdam branch, for the
         purposes of this Agreement.

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                                       7

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         "Dilution"

         means any Credit Notes, Commercial Discounts, decreases in the face
         value of any Transferred Receivables (including, without limitation, as
         a result of returned merchandise), discharges by way of set-off and
         exchange fees and expenses on any Transferred Receivables charged by a
         bank in connection with a payment made in any currency other than Euro.

         "Dilution Rate"

         means, in relation to any Collection Period, the ratio determined as of
         the Assessment Date relating to that Collection Period by dividing the
         amount of Dilutions arising in that Collection Period by the Euro
         Amount of the Outstanding Amount of Relevant Receivables on the
         Settlement Date immediately following the Assessment Date on which such
         Collection Period has begun.

         "Effective Date"

         means, in relation to any Associated Refinancing, the Business Day on
         which any amount raised under such Associated Refinancing is applied by
         the Bank to a Tranche.

         "Eligible Transferred Receivable"

         means a Transferred Receivable which satisfies the criteria set out in
         Part II of Schedule 2.

         "EONIA"

         means the reference rate known as the "Euro Overnight Index Average" in
         the form of the rate listed under the aegis of the European Central
         Bank and published at approximately 7.00 p.m. (Brussels time) by
         TELERATE (page 247) or REUTERS (page EONIA) (or whatever page that may
         be substituted therefor), and published (a) in relation to any
         Associated Refinancing based on the EONIA, one Business Day after the
         Effective Date of such Associated Refinancing, for the period of such
         Associated Refinancing and (b) in any other cases, one Business Day
         following the date when sums due shall bear interest at such rate.

         "Euro" or "(Euro)"

         means the currency of the participating member states of the European
         Communities in accordance with the definition given in the article
         109-L-4 of the European Union Treaty and in the Council Regulation (EC)
         n(degrees) 974/98 of 3rd May, 1998 on the introduction of the euro.

         "Euro Amount"

         means, on any date:

         (a)  in relation to any Receivable, (i) the amount of such Receivable
              if denominated in Euro or (ii) the amount changed into Euro of
              such Receivable if denominated in a Euro-Linked Currency;

         (b)  in relation to any Collection, Credit Note or Commercial Discount,
              (i) the amount thereof in respect of Receivables denominated in
              Euro or (ii) the amount thereof changed into Euro in respect of
              Receivables denominated in a Euro-Linked Currency,

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<PAGE>

                                       8

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         and for the purpose of this definition, a "Receivable" shall mean, as
         appropriate, a Relevant Receivable, a Transferred Receivable, a
         Delinquent Receivable, a Defaulted Receivable or an Eligible
         Transferred Receivable.

         "EURIBOR"

         means, in relation to any period of a whole number of months, the
         reference rate per annum known as the "European Inter-Bank Offered
         Rate" in the form of the rate listed under the aegis of the European
         Banking Federation and published at approximately 11.00 a.m. (Brussels
         time) on TELERATE (page 248 and 249) or REUTERS (page EURIBOR) (or
         whatever page that may be substituted therefor), two Business Days
         before the first day of that period for the offering of deposits in
         Euros for, and from the first day of, such period.

         "EURIBOR Plus Rate"

         means, in relation to a given period, the applicable EURIBOR for the
         whole number of months closest to that period, plus a margin of 0.25
         per cent. per annum or any such other margin as may be agreed from time
         to time between the Bank and the Obligors.

         "Euro-Linked Currencies"

         means the national currency units of the member states of the European
         Communities that adopt or have adopted the Euro as their currency in
         accordance with legislation of the European Union relating to European
         Economic and Monetary Union.

         "Event of Early Amortisation"

         means any of the events set out in Clause 15 (Events of Early
         Amortisation).

         "Excess Concentration"

         means, on any Assessment Date the positive difference, if any, between:

         (a)    the largest of the following amounts:

                (i)        the Outstanding Amount of Eligible Transferred
                           Receivables standing against the largest Debtor
                           bearing a short term rating of A-1+, A1 or P1 or
                           being subject to an equivalent credit risk
                           appreciation, whether public or not, by the Rating
                           Agencies;

                (ii)       the Outstanding Amount of Eligible Transferred
                           Receivables standing against the two largest Debtors
                           bearing a short term rating of A-2 or P2 or being
                           subject to an equivalent credit risk appreciation,
                           whether public or not, by the Rating Agencies;

                (iii)      the Outstanding Amount of Eligible Transferred
                           Receivables standing against the three largest
                           Debtors bearing a short term rating of A-3 or P3 or
                           being subject to an equivalent credit risk
                           appreciation, whether public or not, by the Rating
                           Agencies; and

                (iv)       the Outstanding Amount of Eligible Transferred
                           Receivables standing against the five largest Debtors
                           bearing no short term rating;

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<PAGE>

                                       9

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         and

         (b)      the Rate of Overcollateralisation multiplied by the
                  Outstanding Amount of Eligible Transferred Receivables,

         provided that in relation to paragraph (a):

         (A)      if a Debtor is an Affiliate of another Debtor, the Excess
                  Concentration for such Debtors shall be calculated as if such
                  Debtors were one Debtor;

         (B)      if a Debtor is a member of a network, association or buying
                  group, which is mainly active in the toys business and the
                  main purpose of which is to purchase toys directly or
                  indirectly, or to guarantee the liabilities of its members in
                  connection with the purchase of toys or to negotiate on behalf
                  of its members the terms of payments in relation to the
                  purchase of toys, the Excess Concentration for that Debtor
                  shall be calculated as if it, together with all the other
                  Debtors member of the same such network, association or buying
                  group were one Debtor;

         (C)      in relation to Debtors which are members of:

                  (1)      Leclerc, the Excess Concentration of the 60 biggest
                           of those Debtors shall be calculated as if those
                           Debtors were one Debtor;

                  (2)      Systeme U or Intermarche, the Excess Concentration of
                           the Debtors which are the two biggest purchasing
                           centre operations and the three biggest hypermarket
                           or supermarket operations amongst those Debtors shall
                           be treated as one Debtor,

                  and for these purposes of this paragraph (C), the size of the
                  Debtors concerned shall be determined by the aggregate amount
                  of Eligible Transferred Receivables owing by each such Debtor.

         "Excluded Tax"

         means any Tax arising other than by reason of a change of law, in any
         jurisdiction by reason of the Bank or any of its Affiliates:

         (a)      being incorporated or resident in that jurisdiction; or

         (b)      having or being deemed to have an office, branch or permanent
                  establishment in that jurisdiction otherwise than by reason
                  of:

                  (i)      any connection between any Obligor or its Affiliates
                           and such jurisdiction; or

                  (ii)     the performance by the Bank of its obligations
                           pursuant to or contemplated by this Agreement or any
                           of the other Closing Documents; or

                  (iii)    the performance by any of the Obligors or their
                           Affiliates of their obligations pursuant to or
                           contemplated by this Agreement or any of the other
                           Closing Documents, or any of their respective
                           employees or officers, whether or not also employees
                           or officers of any Obligor, acting in each case as
                           principal, agent or representative of an Obligor, by
                           reason of their involvement (if any)

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                  in this Agreement and the transactions contemplated by the
                  Closing Documents,

         but for the avoidance of doubt, the Parties agree that the Excluded Tax
         shall include (A) any Tax imposed on Societe Generale by reason of its
         involvement (if any) in this Agreement and the transactions
         contemplated by the Closing Documents and (B) any Tax imposed on the
         Bank, acting outside the Netherlands through Societe Generale or any of
         its Affiliates or any of their respective employees or officers,
         whether or not also employees or officers of the Bank, acting in each
         case as principal, agent or representative of the Bank, by reason of
         their involvement (if any) in this Agreement and the transactions
         contemplated by the Closing Documents.

         "Financial Indebtedness"

         means any indebtedness in respect of:

         (a)      moneys borrowed at banks and other financial institutions;

         (b)      any debenture, bond, note, loan stock or other security;

         (c)      any acceptance or documentary credit;

         (d)      receivables sold or discounted (otherwise than on a non-
                  recourse basis);

         (e)      the acquisition cost of any asset to the extent payable before
                  or after the time of acquisition or possession by the party
                  liable where the advance or deferred payment is arranged
                  primarily as a method of raising finance or financing the
                  acquisition of that asset;

         (f)      any lease entered into primarily as a method of raising
                  finance or financing the acquisition of the asset leased;

         (g)      any currency swap or interest swap, cap or collar arrangement
                  or any other derivative instrument;

         (h)      any amount raised under any other transaction having the
                  commercial effect of a borrowing or raising of money; or

         (i)      any guarantee, indemnity or similar assurance against
                  financial loss in relation to the indebtedness of any person.

         "Group"

         means the Depositor, each Seller and the Depositor's Subsidiaries.

         "Increase in the Additional Deposit"

         means, on any Transfer Date, the positive difference between:

         (a)        the difference between (i) the nominal Euro Amount of
                    Relevant Receivables to be transferred on such date, and
                    (ii) the Euro Amount of Collections related to the latest
                    Collection Period, and

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         (b)        the sum of the Variation in the Bank's Funding and of the
                    Variation in the Subordinated Deposit as calculated on such
                    Transfer Date.

         "Increase in the Subordinated Deposit"

         means, on any Settlement Date, the positive difference, if any, between
         (a) the amount of the Subordinated Deposit on such date, calculated in
         accordance with Clause 18 (Subordinated Deposit), and (b) the amount of
         the Subordinated Deposit on the preceding Settlement Date.

         "Information Date"

         means the fourth Business Day following each Assessment Date.

         "Initial Transfer Date"

         means any Transfer Date on which the Bank's Funding is (without taking
         into account any Payment to be made on such Transfer Date) zero.

         "Insolvency Proceedings"

         means proceedings and circumstances of the type referred to in Clauses
         15.6 (Insolvency) to 15.10 (Analogous proceedings) inclusive.

         "Interim Assessment Date"

         means, so long as any Tranche is outstanding, any Business Day
         determined by mutual agreement between the Obligors and the Bank.

         "Interim EONIA Rate"

         means the EONIA, plus a margin of 0.25 per cent. per annum (or such
         other margin as may be agreed for time to time between the Bank and the
         Obligors).

         "Mandate Letter"

         means each mandate letter substantially in the form of Schedule 7
         executed by each Obligor in favour of Societe Generale containing the
         instructions of each Obligor for operation of its Seller's Account or
         the Depositor's Account (as appropriate).

         "Margin"

         means zero point one eight per cent. (0.18%) per annum (provided that
         if an Event of Early Amortisation is outstanding the Margin shall, from
         the date such event occurs until it is remedied, be two point five zero
         per cent. (2.50%) per annum).

         "Master Additional Deposit Agreement"

         means the agreement dated the date of this Agreement between the Bank
         and the Depositor, under which the Depositor makes the Additional
         Deposit with the Bank.

         "Master Subordinated Deposit Agreement"

         means the agreement dated the date of this Agreement between the Bank
         and the Depositor, under which the Depositor makes the Subordinated
         Deposit with the Bank.

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<PAGE>

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         "Material Adverse Effect"

         means a material adverse effect:

         (a)      on the ability of any Obligor to comply with or perform its
                  payment or other material obligations under the Closing
                  Documents; or

         (b)      on the legal effectiveness or validity of any of the Closing
                  Documents; or

         (c)      on the Bank's rights, title or interest in, or the
                  collectability of Transferred Receivables (i) in an aggregate
                  Euro Amount of (euro)5,000,000 or (if higher) (ii) the
                  aggregate Euro Amount of which comprises 5 per cent. or more
                  of the aggregate Euro Amount of all Transferred Receivables.

         "Material Seller Subsidiary"

         as to a Seller, means a direct or indirect Subsidiary, including its
         direct or indirect Subsidiaries, which meets any of the following
         conditions:

         (a)      the Seller's and its other Subsidiaries' investments in and
                  advances to the Subsidiary exceed 10 percent of the total
                  assets of the Seller and its Subsidiaries consolidated as of
                  the end of the most recently completed fiscal year; or

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

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

         "Mattel Wholly-Owned Subsidiary"

         means a company as to which the Parent owns and controls (whether
         directly or indirectly) the entirety (other than any minority holdings
         of share capital or voting rights by directors of such company as
         required by applicable law) of the issued and paid up share capital and
         voting rights of such company.

         "Maturity Date"

         means:

         (a)      in relation to any Tranche and/or any Associated Refinancing,
                  the date on which the principal amount of the Associated
                  Refinancing falls due for repayment; and

         (b)      in relation to any Transferred Receivable or Relevant
                  Receivable, the date on which such Transferred Receivable or
                  Relevant Receivable becomes due and payable by the relevant
                  Debtor in accordance with the terms of the relevant Sales
                  Contract.

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<PAGE>

                                      13

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         "Maximum Amount of the Bank's Funding"

         means:

         (a)      from 1st February to 31st July (both dates inclusive) in each
                  year, (Euro)60,000,000; and

         (b)      at any other time, (Euro)150,000,000.

         "Net Pool Balance"

         means, at any time, the Euro Amount of Eligible Transferred Receivables
         less the Excess Concentration.

         "Notice of Transfer"

         means any notice issued by the Bank to any Debtor in accordance with
         Clause 6.3 (Termination of Collection Mandates and Notices of
         Transfer), substantially in the form of Schedule 4 of this Agreement.

         "Obligor"

         means the Depositor and each Seller.

         "Officer's Certificate"

         means a certificate from an authorised signatory of the Depositor
         substantially in the form of Part II of Schedule 8.

         "Original Accounts"

         means the annual accounts of each Obligor (consolidated if available
         and audited in the case of each Seller) and the audited consolidated
         accounts of the Parent for the financial year ending 31st December,
         2000.

         "Outstanding Amount"

         means, at any time in relation to Transferred Receivables or Eligible
         Transferred Receivables, the aggregate amount outstanding in respect of
         such Transferred Receivables or Eligible Transferred Receivables (as
         appropriate).

         "Parent"

         means Mattel Inc., a corporation organised under the laws of the state
         of Delaware, U.S.A.

         "Party"

         means a party to this Agreement.

         "Payment"

         means any payment made by the Bank to a Seller in accordance with
         Clause 5.3 (Payments and Transfers).

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<PAGE>

                                      14

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         "Portion of Tranche"

         means any part of a Tranche.

         "Pro Rata Share"

         means, in relation to a Seller and a particular period, the average
         amount of Transferred Receivables transferred by that Seller to the
         Bank during that period expressed as a percentage of the average amount
         of the Transferred Receivables transferred to the Bank by all Sellers
         during that period.

         "Provisional Funding Rate"

         means, on any date, the interest rate per annum determined as the sum
         of:

         (a)      EURIBOR for one month published on such date; and

         (b)      5 per cent.

         "Rate of Overcollateralisation"

         means the higher of the two following rates:

         (a)      15%; and

         (b)      the ratio between:

                  (i)      the Worst Default Assumption; and

                  (ii)     the Outstanding Amount of Eligible Transferred
                           Receivables as of the latest Assessment Date.

         "Rating Agencies"

         means each of Standard & Poor's Rating Services, a division of the
         McGraw-Hill Companies Inc., and Moody's France S.A., or such other
         entity to which it may transfer the whole of its credit rating business
         or with which it may consolidate, amalgamate or merge.

         "Reference Banks"

         means Credit Lyonnais, Credit Agricole Indosuez and BNP Paribas, each
         acting through its principal Paris office.

         "Refinancing Rate"

         means, in relation to any Associated Refinancing, any one of the
         following rates as determined in accordance with Clause 19.3
         (Refinancing Rates):

         (a)      the BT Rate;

         (b)      the CP Rate;

         (c)      the Interim EONIA Rate; or

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<PAGE>

                                      15

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         (d)   the Relevant EURIBOR Plus Rate (or the EURIBOR Plus Rate for one
               month EURIBOR where specified).

         "Related Rights"

         means, with respect to any Relevant Receivable, Transferred Receivable
         or Eligible Transferred Receivable (each a "Receivable") all of the
         Seller concerned's rights, privileges, benefits and claims of any
         nature whatsoever relating to that Receivable under the Sales Contract
         under which the Relevant Receivable, Transferred Receivable or Eligible
         Transferred Receivable arises (other than Related Security).

         "Related Security"

         means, with respect to any Relevant Receivable, Transferred Receivable
         or Eligible Transferred Receivable (each a "Receivable") or Sales
         Contract all Credit Insurance Policies (if any), security, deposits,
         guarantees, indemnities, letters of credit, bills of exchange, cheques,
         other negotiable instruments, warranties, retention of title, priority
         claims and other agreements and arrangements created or made by the
         relevant Debtor supporting or securing payment of such Receivable and
         all other rights and benefits attached to such Receivable.

         "Relevant EURIBOR Plus Rate"

         means, in relation to any Associated Refinancing based on billets de
         tresorerie or euro-commercial papers, the EURIBOR Plus Rate for the
         whole number of months which is the closest to the terms of such
         billets de tresorerie or euro-commercial papers.

         "Relevant Group"

         means the Depositor, each Seller, each company that is both a
         Controlling Owner of the Sellers and a subsidiary of the Depositor, and
         each Material Seller Subsidiary.

         "Relevant Percentage"

         means 90%.

         "Relevant Receivable"

         means a receivable satisfying the criteria set out in Part I of
         Schedule 2.

         "Reservations"

         means those reservations or qualifications as to matters of law
         referred to in Schedule 9.

         "Reserve for Future Transfer Fee"

         means in relation to any Tranche and on each Information Date, the
         amount of such Tranche multiplied by:

         (a)   the Provisional Funding Rate;

         (b)   the positive difference (if any) between (i) the Average Term of
               Transferred Receivables plus 20 and (ii) the Average Term of
               Associated Refinancings; and

         (c)   1/360.

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<PAGE>

                                      16

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         "Reserve for Transfer Fee"

         means, at any time, in relation to any Tranche, the aggregate of:

         (a)   any Transfer Fee which shall fall due on any Transfer Fee Payment
               Date related to any existing Associated Refinancing; and

         (b)   the Reserve for Future Transfer Fee.

         "Residual Amount of the Reserve for Transfer Fee"

         means, at any time and in relation to any Tranche, the amount
         determined as the positive difference between:

         (a)   the Reserve for Transfer Fee as calculated on the Information
               Date immediately preceding the latest Transfer Date; and

         (b)   the aggregate amount of Transfer Fee paid under such Tranche out
               of the Reserve for Transfer Fee, since such Information Date in
               accordance with Clause 19.6 (Payment of Transfer Fee).

         "Sales Administration Guidelines"

         means the sales administration, credit management, recovery and
         collection procedures of each Seller described in the due diligence
         report (and appendices thereto) dated October 2001 prepared by the Bank
         in relation to this Agreement.

         "Sales Contract"

         means each contract in writing (or evidenced in writing by a purchase
         order or confirmation, delivery note or invoice in each case (excepting
         delivery notes) referring to or containing the Seller's standard terms
         and conditions of sale) between a Seller and a Debtor under which
         Relevant Receivables, Transferred Receivables or Eligible Transferred
         Receivables arise or are outstanding.

         "Seller's Account"

         means the current account opened by each Seller in its own name in the
         books of Societe Generale, Amsterdam branch for the purposes of this
         Agreement.

         "Sellers' Percentage"

         means one less the Bank's Percentage.

         "Sellers' Share of Collections"

         means an amount initially equal to zero increased, on each Settlement
         Date, by an amount equal to (i) the aggregate Euro Amount of
         Collections from the Collection Period ending on the immediately
         preceding Assessment Date multiplied by (ii) the Sellers' Percentage as
         at the Initial Transfer Date or the Information Date occurring during
         that Collection Period (as appropriate) and which is allocated in
         accordance with Clause 8.2 (Allocation of Collections on Settlement
         Dates which are not Transfer Dates) or Clause 8.3 (Allocation of
         Collections on Settlement Dates which are Transfer Dates).

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         "Settlement Date"

         means the seventh Business Day after an Assessment Date (or such other
         day as the Parties may agree from time to time).

         "Societe Generale"

         means the Societe Generale, a French credit institution, having its
         registered office at 29, boulevard Haussmann - 75009 Paris, France,
         registered with the Companies Registry of Paris under n(degrees) B 552
         120 222.

         "Stamp Duty"

         means any stamp duty, stamp duty reserve tax, registration or other
         transaction or documentary tax (including, without limitation, any
         penalty or interest payable in connection with any failure to pay or
         any delay in paying any of the same).

         "Subordinated Deposit"

         means the subordinated deposit made by the Depositor with the Bank in
         accordance with the terms of Clause 18.1 (Subordinated Deposit) and the
         Master Subordinated Deposit Agreement.

         "Subsidiary"

         means an entity from time to time of which a person has direct or
         indirect control or owns directly or indirectly 50 per cent. or more of
         the share capital or similar right of ownership.

         "TARGET Day"

         means a day on which the Trans-European Automated Real-Time Gross
         Settlement Express Transfer (TARGET) System is operating.

         "Taxes"

         means all present and future transfer, value added and sales taxes,
         notarial and registration fees, Stamp Duties or other charge or
         withholdings in the nature or on account of income tax together with
         interest thereon and penalties with respect thereto, if any, and
         "Taxation" shall be construed accordingly.

         "Tranche"

         means all or a portion of the Bank's Funding.

         "Transfer Date"

         means, until the Commitment Termination Date, any Settlement Date on
         which the Relevant Receivables are transferred by a Seller to the Bank
         in accordance with the Agreement.

         "Transfer Document"

         means in relation to a transfer of Relevant Receivables arising under a
         Sales Contract governed by:

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<PAGE>

                                      18

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         (a)   French law, a Quittance Subrogative substantially in the form of
               Part I;

         (b)   German law, an agreement substantially in the form of Part II,

         in each case of Schedule 5.

         "Transfer Fee"

         means the transfer fee to be paid in accordance with Clause 19
         (Transfer Fee).

         "Transfer Fee Payment Date"

         means the last day of each Transfer Fee Period.

         "Transfer Fee Period"

         means, in relation to any Tranche, the period beginning on (a) a
         Settlement Date and ending on the next Settlement Date or (b) the
         Transfer Date when such Tranche was created and ending on first
         Settlement Date falling after such date.

         "Transfer Request"

         means any request made by a Seller to the Bank in the circumstances set
         out in Clause 5, substantially in the form of Schedule 6.

         "Transferred Receivable"

         means each Relevant Receivable which has been transferred by any Seller
         to the Bank pursuant to this Agreement by means of a Transfer Document
         and which has not been transferred back to any such Seller pursuant to
         Clause 5.5 (Transfer back of Transferred Receivables) or Clause 9.2
         (Transfers and Deemed Collections).

         "Variation in the Bank's Funding"

         means, on any Settlement Date:

         (a)   the amount of the increase in the Bank's Funding, if any, as
               calculated in accordance with Clause 16.3 (Increase in the Bank's
               Funding), on the Information Date immediately preceding such
               Settlement Date; or

         (b)   the amount of the Bank's Share of Collections allocated by the
               Bank on such Settlement Date to the outstanding amount of the
               Bank's Funding, in accordance with Clauses 8.2(a)(i) and
               8.3(a)(i) which will be used to repay the Tranches at the
               Maturity Dates of the Associated Refinancings.

         "Variation in the Subordinated Deposit"

         means, on any Settlement Date, the positive difference or, as the case
         may be, the negative difference, if any, between:

         (a)   the amount of the Subordinated Deposit, as calculated on such
               date, in accordance with Clause 18.1 (Subordinated Deposit); and

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                                      19

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         (b)   the amount of the Subordinated Deposit on the preceding
               Settlement Date.

         "Worst Default Assumptions"

         means, in relation to any Collection Period,

         (a)   the aggregate amount of all Transferred Receivables (whether
               outstanding or paid) which originally had a Maturity Date falling
               between the date 60 days prior to the latest Assessment Date and
               the date 210 days after the latest Assessment Date,

         multiplied by

         (b)   the highest amount of the three-month (on a rolling basis)
               average of the Default Rates on the last 12 Assessment Dates,

         multiplied by

         (c)   2.25.

1.2      Construction

(a)      In this Agreement, unless the contrary intention appears, a reference
         to:

         (i)   an "amendment" includes a supplement, novation or re-enactment
               and "amended" is to be construed accordingly;

               "assets" includes present and future properties, revenues and
               rights of every description;

               "control" means the power to direct the management and policies
               of an entity, whether through the ownership of voting capital, by
               contract or otherwise;

               a "change in law" means the introduction of, or any change in, or
               any change in the interpretation or application of, any law or
               regulation after the date of this Agreement;

               a "month" is a reference to a period starting on one day in a
               calendar month and ending on the numerically corresponding day in
               the next calendar month, except that:

               (1)  if there is no numerically corresponding day in the month in
                    which that period ends, that period shall end on the last
                    Business Day in that calendar month; or

               (2)  if an Interest Period commences on the last Business Day of
                    a calendar month, that Interest Period shall end on the last
                    Business Day in the calendar month in which it is to end;

               a Party making a payment "out of its own resources" means that
               Party does not fund that payment by, or out of, Collections;

               a "person" includes any individual, company, unincorporated
               association or body of persons (including a partnership, joint
               venture or consortium), government, state, agency, international
               organisation or other entity;

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<PAGE>

                                      20

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                  a "regulation" includes any regulation, rule, official
                  directive, request or guideline (whether or not having the
                  force of law) of any governmental, inter-governmental or
                  supranational body, agency, department or regulatory, self-
                  regulatory or other authority or organisation;

         (ii)     a provision of law is a reference to that provision as amended
                  or re-enacted;

         (iii)    a Clause or a Schedule is a reference to a clause of or a
                  schedule to this Agreement;

         (iv)     a person includes its permitted successors, transferees and
                  assigns;

         (v)      a Closing Document or another document is a reference to that
                  Closing Document or other document as amended;

         (vi)     a time of day is a reference to Amsterdam time; and

         (vii)    the singular includes the plural and vice versa.

(b)      Unless the contrary intention appears, a term used in any other Closing
         Document or in any notice given under or in connection with any Closing
         Document has the same meaning in that Closing Document or notice as in
         this Agreement.

(c)      The index to and the headings in this Agreement are for convenience
         only and are to be ignored in construing this Agreement.

(d)      the Schedules form an integral part of this Agreement.

2.       PURPOSE AND COMMITMENT DURATION

2.1      Purpose

         The Bank agrees to purchase Relevant Receivables from the Sellers,
         subject to and on the terms and conditions of this Agreement.

2.2      Duration of the Commitment

(a)      Unless terminated or cancelled earlier in accordance with this
         Agreement, the Commitment shall be cancelled in full on the Commitment
         Termination Date.

(b)      Subject to paragraph (c) below, at any time between 60 and 30 days
         before the Commitment Termination Date, the Depositor (on behalf of the
         Obligors) may request the Bank in writing to extend the Commitment
         Termination Date. The Bank may agree to extend the Commitment
         Termination Date by entering into an amendment letter relating to this
         Agreement with the Obligors to that effect, provided that the new
         Commitment Termination Date shall not be later than the earlier of:

         (i)      364 days from the date upon which such extension comes into
                  effect; and

         (ii)     the fifth anniversary date of the date of this Agreement.

(c)      Any agreement of the Bank under paragraph (b) above shall be subject
         to, inter alia, the condition that (i) the Rating Agencies have first
         been informed of such contemplated

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<PAGE>

                                      21

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         extension and (ii) the Rating Agencies have first confirmed that the
         contemplated extension will not entail a deterioration or withdrawal of
         the current rating of the billets de tresorerie or the euro commercial
         paper issued by Antalis, or that the contemplated extension will reduce
         such deterioration (if any) or prevent such withdrawal (if any), and
         (iii) the Bank has first received (A) a new Auditors' Certificate in
         relation to each Seller and (B) a new Officer's Certificate in relation
         to the Depositor.

(d)      The Bank shall notify the Obligors (through the Depositor) of its
         decision on such extension on (or prior to) the later of (i) the date
         which is 15 days after the Obligors' request and (ii) the date which is
         30 days prior to the existing Commitment Termination Date or, if either
         date is not a Business Day, the immediately succeeding Business Day
         (and if the Bank agrees to the extension, paragraph (a) of the
         definition of Commitment Termination Date shall be amended to refer to
         the new date applicable).

3.       NATURE OF OBLIGATIONS

(a)      The obligations of each Seller under the Closing Documents are several.
         No Seller shall be liable for the obligations under the Closing
         Documents of any other Obligor. Failure of a Seller (or the Depositor)
         to carry out any of its obligations under the Closing Documents shall
         not relieve any other Obligor from its obligations under the Closing
         Documents.

(b)      The Depositor is jointly and severally liable with each Seller with
         regard to any and all payments (including, without limitation,
         indemnity payments) due from either Seller under the Closing Documents.

(c)      The Depositor waives all rights arising at law of subrogation,
         contribution or indemnity or otherwise against each Seller pursuant to
         any payment made by the Depositor under the Closing Documents pursuant
         to paragraph (b) above in respect of any amount initially due from a
         Seller until all of the principal, interest and any additional amounts
         required to be paid pursuant to the Closing Documents have been
         irrevocably paid in full.

(d)      The obligations of the Depositor under the Closing Documents
         (including, without limitation, paragraph (b) above) shall remain in
         full force and effect notwithstanding any dissolution or change in the
         structure or legal form of either Seller or in the intercompany
         relationship between the Obligors, any amendment or waiver relating to
         any Closing Document, any invalidity or unenforceability of the
         obligations of either Seller under the Closing Documents or any other
         act or omission, matter or thing, whether or not known to the Bank,
         which, but for this paragraph (d) would reduce, release or prejudice
         the Depositor's obligations under the Closing Documents (including,
         without limitation, paragraph (b) above) and shall benefit the Bank and
         its successors and assigns.

(e)      Until all amounts due to the Bank under the Closing Documents from the
         Obligors (or any of them) have been irrevocably paid in full, each
         Obligor undertakes not to claim, rank, prove or vote as a creditor of
         any other Obligor or its estate in competition with the Bank if to do
         so would result in any claim by the Obligor against another Obligor
         competing with a claim of the Bank against the latter Obligor in
         respect of an amount due from that Obligor to the Bank under the
         Closing Documents.

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<PAGE>

                                      22

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4.       CONDITIONS PRECEDENT

4.1      Documentary conditions precedent

         The Sellers may not deliver the first Transfer Request until the Bank
         has notified the Obligors that it has received all of the documents set
         out in Schedule 1 in form and substance satisfactory to the Bank.

4.2      Further conditions precedent

         The obligation of the Bank to make any Payment following a Transfer
         Request is subject to the further conditions precedent that:

         (a)      on both the date of such Transfer Request and the Transfer
                  Date referred to therein:

                  (i)      the representations and warranties in Clauses 10
                           relating to the receivables to be transferred and 12
                           made or (in the case of Clause 12) deemed to be
                           repeated on those dates are true and accurate and
                           will be true and accurate immediately after the
                           Payment is made; and

                  (ii)     no Event of Early Amortisation or Amortisation Event
                           has occurred and is continuing or will result from
                           the Payment being made;

         (b)      the Bank has received the Assessment Report for the Assessment
                  Date immediately preceding the Transfer Date referred to in
                  such Transfer Request;

         (c)      the Bank's Percentage, as at the Information Date immediately
                  preceding the Transfer Date referred to in such Transfer
                  Request, was less than or equal to the Relevant Percentage
                  (or, in the case of an Initial Transfer Date, is on that date
                  less than or equal to the Relevant Percentage);

         (d)      the Payment and the relevant Transfer Document do not violate
                  any applicable law or regulation in force on the date of that
                  Transfer Request;

         (e)      the making of the Payment will not result in the Bank's
                  Funding exceeding the then applicable Maximum Amount of the
                  Bank's Funding;

         (f)      the Transfer Date referred to in such Transfer Request does
                  not fall after the Commitment Termination Date;

         (g)      the amount of the Reserve for Transfer Fee is less than 2.5
                  per cent. of the Net Pool Balance as determined on the
                  Assessment Date relating to the latest Assessment Report;

         (h)      on the Transfer Date referred to in the Transfer Request
                  (unless it is an Initial Transfer Date) each Seller shall have
                  credited the amount of Collections received by it and Deemed
                  Collections due from it, in each case in respect of the
                  Collection Period immediately preceding that Transfer Date to
                  the Bank's Account in accordance with Clause 8.4 (Payments);
                  and

         (i)      on the Transfer Date referred to in the Transfer Request, the
                  Subordinated Deposit and the Additional Deposit have been duly
                  made and (if required) increased by the

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               Depositor in accordance with Clause 18 (Deposits), the Master
               Additional Deposit Agreement and the Master Subordinated Deposit
               Agreement.

5.        TRANSFER OF RELEVANT RECEIVABLES

5.1       Timing of transfer

          On each Initial Transfer Date and (until the Commitment Termination
          Date) on each other Transfer Date which is not an Initial Transfer
          Date, all of the Sellers shall together have the option to transfer to
          the Bank (in accordance with the relevant Transfer Document) not less
          than all Relevant Receivables to which they each hold title together
          with all Related Security and Related Rights in consideration for
          payment by the Bank of the amount specified in Clause 5.3(a)(ii).

5.2       Delivery of Transfer Requests

          A Seller intending to make a transfer of Relevant Receivables shall
          send to the Bank by no later than 11.00 a.m. on the Information Date
          immediately preceding the relevant Transfer Date a duly completed
          Transfer Request, setting out the aggregate nominal amount of the
          Relevant Receivables to be transferred. Each Transfer Request shall be
          irrevocable.

5.3       Payments and transfers

(a)       Following delivery of a Transfer Request on the relevant Transfer
          Date:

          (i)  the Seller shall deliver to the Bank a duly completed and
               appropriate Transfer Document, duly signed by the Seller, vesting
               in the Bank all its title, ownership and rights in respect of the
               Relevant Receivables and all Related Security and Related Rights
               relating thereto in accordance with the law governing the
               Transfer Document and the relevant Sales Contracts; and

          (ii) subject to Clause 4.2 (Further Conditions Precedent), the Bank
               shall make a Payment to the Seller by crediting the Seller's
               Account for that Seller in an amount equal to the nominal Euro
               Amount of the Relevant Receivables to be transferred by that
               Seller referred to in the Transfer Request.

(b)       Each Transfer shall take effect upon the delivery of a Transfer
          Document and the making of the relevant Payment, and in this Clause
          5.3 "Transfer" means the transfer to the Bank of:

          (i)  the Relevant Receivables referred to in a Transfer Document,
               including in particular any change in the amount of those
               Relevant Receivables as a result of (i) the terms of such
               Relevant Receivables allowing such change occurring in accordance
               with Clause 14.14(b) (Amendments to Sales Contracts and Sales
               Administration Guidelines) or (ii) a material error, whether or
               not a new invoice has been issued due to such change or material
               error; and

          (ii) all Related Security (but, in the case of negotiable instruments,
               only to the extent required by Clause 14.10 (Promissory notes and
               negotiable instruments)) and Related Rights relating thereto,

          in each case in accordance with, and to the fullest extent permitted
          by, the governing law of the relevant Transfer Document or the law
          applicable to the Related Security and Related Rights (as
          appropriate).

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                                      24
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5.4       Transfer Documents

(a)       A Transfer Document shall not be regarded as having been duly
          completed unless it sets out a description of the Relevant
          Receivables, all Related Security and Related Rights in respect
          thereof in sufficient detail to enable:

          (i)  the transfer of such Relevant Receivables, Related Security and
               Related Rights to the Bank under that Transfer Document; and

          (ii) an indisputable identification of such Relevant Receivables,

         in each case in accordance with, and for the purposes of, the governing
         law of that Transfer Document and is delivered with a computer disk
         containing a full list of the Relevant Receivables concerned, showing,
         in relation to each such receivable, the name and address of the
         Debtor, the amount due and the currency, the Maturity Date, invoice
         number and invoice date.

(b)      This Agreement shall apply automatically to all Transfer Documents and
         related electronic or magnetic supports delivered by any of the Sellers
         to the Bank, on each Transfer Date, provided that the Transfer
         Documents and such supports make specific reference to this Agreement.

5.5      Transfer back of Transferred Receivables

(a)      At any time a Seller may request the Bank to transfer back to that
         Seller all or part of the outstanding Transferred Receivables
         transferred by it provided that in the event of a transfer back of
         part, the remaining Net Pool Balance (taking into account the
         Transferred Receivables to be transferred back) is equal to or greater
         than (euro)20,000,000.

(b)      A Seller wishing to make a request under paragraph (a) above shall
         notify the Bank five Business Days before the date on which the Seller
         wishes the transfer back to take place. The Bank shall not be obliged
         to accept such request and shall notify the Seller concerned of its
         decision no later than three Business Days after receipt by the Bank of
         the Seller's notice. The Bank shall be deemed to have accepted the
         request if it has not expressly refused it within such period.

(c)      If the Bank accepts a request for the transfer back of Transferred
         Receivables, the Seller concerned shall, on the date of transfer back,
         before 11.00 a.m., pay to the Bank the Euro Amount of the Outstanding
         Amount of the relevant Transferred Receivables and the Bank shall
         deliver to the Seller such documents or instruments as are necessary to
         effect the transfer back to the Seller of such title ownership and
         rights in respect of the Transferred Receivables concerned and all
         Related Security and Related Rights attached thereto as the Bank has
         acquired from the Seller and has at the time of transfer back. The
         reasonable costs incurred by the Bank in the preparation, execution and
         delivery of such document or instrument shall be borne exclusively by
         the Seller concerned.

(d)      As from the date of such transfer back, the Bank shall pay back to the
         Seller concerned, as soon as practicable, any sum received by the Bank
         in respect of any Transferred Receivables (and any Related Security
         and/or Related Rights attaching thereto) which have been transferred
         back to a Seller under this Clause 5.5.

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5.6       Transfers by the Bank

          Other than pursuant to Clause 5.5 or Clause 9.2 (Transfers and Deemed
          Collections), the Bank will not enter into any assignment or transfer
          or subrogation of any description with any person (or purport or agree
          to do so) of any Transferred Receivable or any Related Security or
          Related Rights.

6.        COLLECTION MANDATES AND NOTICES OF TRANSFER

6.1       Collection Mandates

          The Bank appoints each Seller as its agent to:

          (a)  collect on behalf of the Bank the Transferred Receivables
               transferred by it to the Bank; and

          (b)  take and to conduct on behalf of the Bank (but in the name of the
               Seller) all lawful steps and proceedings, other than court or
               arbitration proceedings (except as may otherwise be requested by
               the Bank pursuant to Clause 14.8(b)(iv) (Collection and
               Recovery)), for the recovery of such Transferred Receivables,
               provided that no Seller shall have, by reason of this Clause 6.1,
               any power to enter into or conclude any agreement on behalf of
               the Bank, to cause the Bank to assume any obligation to any
               person or otherwise to bind the Bank except as otherwise
               contemplated by Clause 14.14(b) (Amendments to Sales Contracts
               and Sales Administration Guidelines),

          (each such appointment being a "Collection Mandate) and each Seller
          accepts its Collection Mandate.

6.2       Remuneration for Collection Mandates

          No Seller shall receive any fee, commission or remuneration from the
          Bank for, or reimbursement by the Bank of any expense incurred by it
          in connection with, its Collection Mandates (other than to the extent
          required in relation to a particular Seller by any applicable law or
          regulation, in which case the Bank shall be entitled to withhold out
          of any amount due from the Bank to such Seller or the Depositor under
          the Closing Documents the amount of any such fee or reimbursement). To
          that end, each Seller shall bear its own costs and expenses incurred
          in the course of performing its Collection Mandate.

6.3       Termination of Collection Mandates and Notices of Transfer

(a)       The Bank may at any time following a Termination Event notify any
          Seller affected by that Termination Event that it wishes to terminate
          that Seller's Collection Mandate in whole or in part and to give a
          Notice of Transfer to the Debtors in respect of the Transferred
          Receivables transferred by that Seller.

(b)       A Seller's Collection Mandate shall automatically terminate on the
          date of the Bank's notice under paragraph (a) above and upon, and at
          any time after such termination, the Bank may give a Notice of
          Transfer to the Debtors concerned.

(c)       Upon and following the termination of its Collection Mandate, the
          Seller concerned shall promptly transfer to the Bank's Account any
          amount received from any Debtor in respect of the Transferred
          Receivables to which the termination relates.

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                                      26
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(d)       The termination of a Collection Mandate shall not affect the
          obligations of any Obligor under the Closing Documents (other than
          those of the relevant Seller relating to the collection of Transferred
          Receivables affected by the termination).

(e)       In this Clause 6.3 "Termination Event" in respect of a Seller means:

          (i)     the occurrence of an Event of Early Amortisation (which is
                  still continuing) in relation to that Seller under Clause 15.2
                  (Non-payment), Clauses 15.5 (Cross default) to 15.10
                  (Analagous proceedings) (inclusive) and Clause 15.13
                  (Cessation of business);

          (ii)    (A) the occurrence of an Event of Early Amortisation under
                  Clause 15.11 (The Parent) in relation to which the Bank has
                  given a Termination Notice under Clause 15.17 (Termination) or
                  (B) the occurrence of an Event of Early Amortisation (which is
                  still continuing) in relation to the Parent under Clause 15.13
                  (Cessation of business);

          (iii)   a material failure by that Seller to perform its Collection
                  Mandate in accordance with reasonable skill and care, its
                  customary business practices and its obligations under this
                  Agreement;

          (iv)    that Seller becomes unable lawfully to perform its Collection
                  Mandate or the obligations of that Seller with respect to its
                  Collection Mandate become invalid, unenforceable or
                  ineffective for any reason or to any material extent; or

          (v)     any event occurs in respect of that Seller which, in the
                  opinion of the Bank (acting in good faith) is reasonably
                  likely to prejudice that Seller's ability to perform, or the
                  performance of, its Collection Mandate or that Seller's
                  ability to make the payment referred to in Clause 8.4(a)(i)
                  (Payments).

7.        COLLECTION

7.1       Collection by the Sellers

(a)       For so long as its Collection Mandate has not been terminated in
          accordance with Clause 6.3 (Termination of Collection Mandates and
          Notices of Transfer), each Seller shall, promptly on receipt of the
          same, credit or cause to be credited to any bank account of that
          Seller each cash collection received by it which has actually been
          paid by a Debtor, or by any other person obliged to make payment, in
          respect of the Transferred Receivables to which its Collection Mandate
          relates (together the "Cash Collections").

(b)       During each Collection Period, each Seller shall be entitled to use
          freely the amount of Cash Collections.

(c)       Subject to Clause 6.3 (Termination of Collection Mandates and Notices
          of Transfer) on each Settlement Date, each Seller shall credit or
          cause to be credited to the Bank's Account all Collections denominated
          in Euro or Euro-Linked Currencies arising in respect of the Collection
          Period ending on the Assessment Date immediately preceding such
          Settlement Date.

(d)       Subject to paragraph (e) below, any payment received by a Seller from
          one of its Debtors shall be applied in priority to the Transferred
          Receivables, unless that Debtor has given express instruction to the
          contrary.

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                                      27
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(e)       If a Debtor is in Insolvency Proceedings and a settlement payment or
          distribution is made in those Insolvency Proceedings in respect of
          both Transferred Receivables and other receivables owing by that
          Debtor to a Seller, the amount received by such Seller shall be
          applied pro rata to the nominal amount of each such Transferred
          Receivable and such other receivables.

7.2       Advanced Transfers and collection by the Bank

(a)       On any Business Day the Bank may require any Seller to transfer all or
          part of the Collections standing to the credit of any Seller's account
          (the "Advanced Transfer") to the Bank's Account on the following
          Business Day (the "Collections Transfer Date").

(b)       Following the termination by the Bank of a Seller's Collection Mandate
          in accordance with Clause 6.3 (Termination of Collection Mandates and
          Notices of Transfer), the Bank shall:

          (i)  promptly on receipt of the same, credit or cause to be credited
               to the Bank's Account the amount of each cash collection received
               by it which have actually been paid by Debtors, or by any other
               person obliged to make payment, in respect of the Transferred
               Receivables to which the terminated Collection Mandate would
               otherwise have related (together the "Bank Collections"); and

          (ii) draw up an Assessment Report on each Assessment Date and on each
               Interim Assessment Date.

(c)       If the Bank exercises its rights under paragraph (a) above, or if the
          Bank terminates a Seller's Collection Mandate, the Bank shall pay the
          Seller concerned a fee calculated on the basis of the amount of the
          Advanced Transfer or the aggregate amount of Bank Collections from
          time to time (as appropriate), at a rate of EONIA plus zero point two
          five per cent. (0.25%) per day elapsed from (and including) the
          Collections Transfer Date or the date on which Bank Collections are
          received (as appropriate) to either (and excluding):

          (i)  the Transfer Date on which the Bank applies the Advanced Transfer
               or the Bank Collections towards the transfer of new Relevant
               Receivables; or

          (ii) if the Bank does not so apply the Advanced Transfer or Bank
               Collections, (A) the Maturity Dates of the Tranches or Associated
               Refinancings on which the Bank applies the Advanced Transfer or
               Bank Collections to the amortisation of the Bank's Funding, and
               (B) the Settlement Date on which the Bank applies the Advanced
               Transfer or Bank Collections to the repayment of the Additional
               Deposit or the Subordinated Deposit.

(d)       The fee referred to in paragraph (c) above is to compensate the Seller
          concerned for the inconveniences it suffers as a consequence of:

          (i)  its inability to use the Cash Collections subject to the Advanced
               Transfer freely in accordance with Clause 7.1(b) (Collection by
               Sellers);

          (ii) the fact that Collections will not be applied to the repayment of
               the Bank's Funding until the Settlement Date falling immediately
               after the Assessment Date on which the Collection Period during
               which such Collections arose ends; and

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                                      28
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          (iii)  its obligation to pay the Transfer Fee in respect of the Bank's
                 Funding up to that Settlement Date.

(e)       All expenses incurred by the Bank in collecting Transferred
          Receivables shall be borne by it exclusively.

8.        SETTLEMENT AND PAYMENTS

8.1       Calculations

(a)       On each Information Date, the Bank shall calculate and notify the
          Obligors of (in each case providing details of how such calculations
          have been made):

          (i)    the fee due to each Seller in accordance with Clause 7.2(c)
                 (Advanced Transfers and collection by the Bank);

          (ii)   the Net Pool Balance as of the Assessment Date immediately
                 preceding that Information Date;

          (iii)  the Residual Amount of the Reserve for Transfer Fee;

          (iv)   the amount of the Bank's Funding;

          (v)    the amount of the Subordinated Deposit;

          (vi)   the amount of the Additional Deposit;

          (vii)  the new Bank's Percentage; and

          (viii) the new Sellers' Percentage,

          in each case as of the immediately succeeding Settlement Date and
          taking into account any transfer of Relevant Receivables to occur on
          that Settlement Date.

(b)       On each Settlement Date the Bank shall recalculate and notify the
          Obligors of (providing details of how such calculations have been
          made) the fee referred to in paragraph (a)(i) above where additional
          fee has accrued since the calculation made on the immediately
          preceding Information Date.

8.2       Allocation of Collections on Settlement Dates which are not Transfer
          Dates

          If a Settlement Date is not a Transfer Date, the Bank shall allocate
          on that Settlement Date the Collections in the order set out below:

          (a)  the Bank's Share of Collections shall be allocated as follows:

               (i)  first, towards the repayment of the outstanding amount of
                    the Bank's Funding (whether or not any Tranche or Associated
                    Refinancing has a Maturity Date which coincides with that
                    Settlement Date);

               (ii) second, towards the payment of any sum due by any Obligor,
                    out of its own resources, payable to the Bank under the
                    Closing Documents and remaining unpaid on such Settlement
                    Date;

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               (iii)    third, towards the repayment of the Additional Deposit
                        (subject to Clause 18 (Deposits));

               (iv)     fourth, towards the repayment of the Subordinated
                        Deposit (subject to Clause 18 (Deposits)); and

               (v)      fifth, the balance, if any, shall be paid to the
                        Sellers; and

          (b)  the Sellers' Share of Collections shall be allocated:

               (i)      first, towards the payment of any sum due by any Seller,
                        out of its own resources, payable to the Bank under the
                        Closing Documents and remaining unpaid on such
                        Settlement Date;

               (ii)     second, towards the repayment of the Additional Deposit
                        (subject to Clause 18 (Deposits)); and

               (iii)    third, the balance, if any, shall be paid to the
                        Sellers.

8.3       Allocation of Collections on Settlement Dates which are Transfer Dates

          If a Settlement Date is also a Transfer Date, the Bank shall allocate
          on that Settlement Date the Collections in the order set out below:

          (a)  the Bank's Share of Collections shall be allocated as follows:

               (i)      first, if the Bank's Funding is then greater than the
                        Relevant Percentage multiplied by the Net Pool Balance
                        (taking into account Eligible Transferred Receivables to
                        be transferred on such date) less the amount of the
                        Subordinated Deposit (taking into account Eligible
                        Transferred Receivables to be transferred on such date),
                        towards the repayment of the outstanding amount of the
                        Bank's Funding (whether or not any Tranche or Associated
                        Refinancing has a Maturity Date which coincides with
                        that Settlement Date) in an amount equal to such excess;

               (ii)     second, to the transfer of Relevant Receivables taking
                        place on that Transfer Date;

               (iii)    third, to the payment of any sum due by any Obligor, out
                        of its own resources, payable to the Bank under the
                        Closing Documents and remaining unpaid on such date;

               (iv)     fourth, to the repayment of the Additional Deposit
                        (subject to Clause 18 (Deposits));

               (v)      fifth, to the repayment of the Subordinated Deposit
                        (subject to Clause 18 (Deposits)); and

               (vi)     sixth, the balance, if any, shall be paid to the
                        Sellers; and

          (b)  the Sellers' Share of Collections shall be allocated as follows:

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                                      30
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               (i)    first, to the transfer of Relevant Receivables taking
                      place on such Transfer Date;

               (ii)   second, to the payment of any sum due by any Obligor, out
                      of its own resources, payable to the Bank under the
                      Closing Documents and remaining unpaid on such date;

               (iii)  third, to the repayment of the Additional Deposit (subject
                      to Clause 18 (Deposits)); and

               (iv)   fourth, the balance, if any, shall be paid to the Sellers.

8.4       Payments

(a)       On each Settlement Date and subject to the provisions of this
          Agreement the following payments shall be made:

          (i)   each Seller shall credit the amount of Collections received by
                it and the Euro Amount of Deemed Collections occurring, in each
                case in respect of, or during, the Collection Period immediately
                preceding that Settlement Date to the Bank's Account;

          (ii)  the Depositor shall pay to the Bank, out of its own resources,
                the amount corresponding to the Increase in the Subordinated
                Deposit and Increase in the Additional Deposit (in each case if
                any);

          (iii) the Bank shall make a Payment to the Sellers, in accordance with
                Clause 5.3 (Payments and Transfers), to the credit of each of
                the relevant Seller's Accounts;

          (iv)  the Bank shall repay to the Depositor the Additional Deposit and
                the Subordinated Deposit;

          (v)   the Bank shall pay to the Sellers, out of its own resources, the
                compensation determined in accordance with Clause 7.2(c)
                (Advanced Transfers and Collection by the Bank); and

          (vi)  the Bank shall credit to the Depositor's Account the aggregate
                amount of Collections allocated to the repayment of the Bank's
                Funding which the Bank does not actually apply on that
                Settlement Date to the repayment of the Bank's Funding
                ("Unapplied Collections"),

          where appropriate, in an amount determined in accordance with Clause
          8.2 (Allocation of Collections on Settlement Dates which are not
          Transfer Dates) or Clause 8.3 (Allocation of Collections on Settlement
          Dates which are Transfer Dates), as the case may be.

(b)       The Depositor shall, subject to paragraph (d) below, be entitled to
          use freely the amount of Unapplied Collections between the Settlement
          Date on which they are paid to the Depositor in accordance with
          paragraph (a)(vi) above and the Maturity Date of the Associated
          Refinancing on which they are applied to the repayment of the Bank's
          Funding in accordance with Clause 16.4 (Repayment of the Bank's
          Funding).

(c)       The Depositor shall pay to the Bank on the Maturity Date of each
          Associated Refinancing an amount equal to (i) the amount of Unapplied
          Collections paid to the Depositor in accordance with paragraph (a)(vi)
          above multiplied by (ii) the number of days between the Settlement

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         Date on which that payment is made and the Maturity Date of that
         Associated Refinancing multiplied by (c) the Refinancing Rate of that
         Associated Refinancing plus the Margin divided by 360. If the Depositor
         fails to pay all or part of such amount, the Bank shall be entitled to
         apply the Collections standing to the credit of the Bank's Account and
         corresponding to the Sellers' Share of Collections against any amount
         so unpaid up to the amount of the Residual Amount of the Reserve for
         Transfer Fee for the Tranche resulting from the portion of the Bank's
         Funding which is repaid on such Maturity Date.

(d)      On any Business Day the Bank may require the Depositor to transfer all
         or part of the amount of the Unapplied Collections paid to the
         Depositor in accordance with paragraph (a)(vi) above (the "Advanced
         Transfer") to the Bank's Account on the following Business Date (the
         "Collections Transfer Date").

(e)      If the Bank exercises its rights under paragraph (e) above, the Bank
         shall pay the Depositor a compensation calculated on the basis of the
         amount of the Advanced Transfer, at a rate of EONIA plus 0.25% per
         annum per day elapsed from (and including) the Collections Transfer
         Date to (and excluding) the Maturity Date of any Associated Refinancing
         when such Collections are applied to the repayment of the Bank's
         Funding in accordance with Clause 16.4 (Repayment of the Bank's
         Funding).

9.       DEEMED COLLECTIONS

9.1      Deemed Collections

(a)      If:

         (i)      a Payment and/or a Transfer Document ceases to result in a
                  perfect transfer of the Relevant Receivables concerned and all
                  Related Security (in the case of negotiable instruments, to
                  the extent required by Clause 14.10 (Promissory notes and
                  negotiable instruments)) and Related Rights attached thereto;

         (ii)     any representation and warranty in Clause 10 (Representations
                  relating to Transferred Receivables) relating to any
                  Transferred Receivable on any day would (if it were made or
                  repeated on that day) not be true and accurate with respect to
                  the receivables concerned (whether or not any such
                  representation and warranty is in fact made or deemed to be
                  repeated on that day);

         (iii)    on an Assessment Date or Interim Assessment Date an
                  outstanding Transferred Receivable, the amount of which was
                  included within the aggregate amount of Eligible Transferred
                  Receivables declared in an Assessment Report, then has a
                  Maturity Date of more than 210 days and the immediately
                  succeeding Settlement Date is not a Transfer Date;

         (iv)     in an Assessment Report delivered in relation to a Transfer
                  Date, the amount declared as being the aggregate amount of
                  Eligible Transferred Receivables to be transferred on that
                  Transfer Date is greater than the aggregate amount of Eligible
                  Transferred Receivables actually transferred on that Transfer
                  Date (such difference being the "Excess");

         (v)      any Credit Note or Commercial Discount referred to in Clause
                  14.14(c) (Amendments to Sales Contracts and Sales
                  Administration Guidelines) is issued or applies in relation to
                  any Transferred Receivable or any Debtor makes payment in

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                  respect of any Transferred Receivable net of the amount of any
                  anticipated Credit Note;

         (vi)     any Sales Contract which gives rise to a Transferred
                  Receivable is cancelled or terminated and the relevant goods
                  have been billed but remained to be delivered by the Seller
                  concerned on the termination date of such Sales Contract;

         (vii)    any set-off is agreed by a Seller or arises by operation of
                  law (including a Debtor exercising a right of set-off
                  conferred on it by law) or as a result of a final court
                  decision between debts owed by any Seller to any Debtor and
                  the Transferred Receivables against such Debtor;

         (viii)   any judicial or arbitration proceedings are commenced by a
                  Debtor against a Seller in connection with the sale of the
                  goods related to any Transferred Receivable, or the delivery
                  or failure to deliver such goods, or the performance or the
                  failure to perform by the Seller of any of its obligations to
                  that Debtor in relation to the existence and/or the amount of
                  a Transferred Receivable or a Transferred Receivable becomes
                  irrecoverable by reason of the breach by a Seller of the
                  relevant Sales Contract;

         (ix)     any exchange fees or expenses are charged by a bank in
                  connection with a payment made in any currency other than Euro
                  in relation to a Transferred Receivable;

         (x)      any Transferred Receivable has been cancelled, in whole or in
                  part; or

         (xi)     any conflict, claim or dispute arises resulting from the
                  issue, remittance, delivery or endorsement of a negotiable
                  instrument or promissory note (excluding, for the avoidance of
                  doubt, a conflict, claim or dispute in relation to the Sales
                  Contract to which such instrument or promissory note relates)
                  and/or the notification by the Bank to a Debtor of a
                  negotiable instrument or promissory note or the acceptance by
                  a Debtor of a negotiable instrument or promissory note
                  presented by the Bank,

         the Seller concerned shall be deemed to have received:

         (A)      the amount of the receivables concerned in the case of
                  paragraph (ii) above, or the amount of the Transferred
                  Receivable in the case of paragraph (iii) above or the amount
                  of the Excess (as appropriate); or

         (B)      in each other case, the amount it would have collected if such
                  event had not occurred,

         each such amount being a "Deemed Collection".

(b)      Subject to Clause 9.2(a) the Seller concerned shall transfer, out of
         its own resources, the Euro Amount of Deemed Collections in the
         following manner:

         (i)      in accordance with Clause 8.4(a)(i), if the Seller's
                  Collection Mandate has not been terminated in relation to the
                  Transferred Receivable to which the Deemed Collection relates;
                  and; and

         (ii)     if the Seller's Collection Mandate has been terminated in
                  relation to the Transferred Receivable to which the Deemed
                  Collection relates, the amount of such Deemed Collection shall
                  be immediately on its occurrence credited to the Bank's
                  Account.

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9.2      Transfers and Deemed Collections

(a)      On each date on which the Euro Amount of a Deemed Collection is due
         from a Seller under Clause 9.1 (the "Due Date"), that Seller shall have
         the option, if the amount of that Deemed Collection is equal to the
         Outstanding Amount of the Transferred Receivable giving rise to the
         Deemed Collection, either to transfer the Euro Amount of the Deemed
         Collection to the Bank in accordance with Clause 9.1 or to direct the
         Bank to transfer the Transferred Receivable in relation to which the
         Deemed Collection has occurred to the Seller on the Due Date. If the
         Seller elects a transfer, on the Due Date:

         (i)      the Seller shall notify the Bank of such election and
                  simultaneously deliver to the Bank such documents or
                  instruments (together the "Documents") for execution by the
                  Bank as are necessary to effect the transfer to the Seller of
                  such title ownership and rights in respect of the Transferred
                  Receivable concerned and all Related Security and Related
                  Rights attached thereto as the Bank originally acquired from
                  the Seller pursuant to the Closing Documents;

         (ii)     the Bank shall (subject to paragraph (b) below) execute the
                  Documents; and

         (iii)    the Seller shall pay out of its own resources and to the
                  credit of the Bank's Account the Euro Amount of the
                  Transferred Receivable concerned,

         following which, for the avoidance of doubt, the Seller shall have no
         liability to transfer the Euro Amount of the Deemed Collection to the
         Bank (unless for any reason the payment referred to in paragraph (iii)
         above is for any reason set aside or has to be returned by the Bank to
         the Seller or a liquidator of the Seller).

(b)      The Documents shall contain only such provisions as are necessary to
         effect the transfer referred to in paragraph (a)(i) above (and not, for
         the avoidance of doubt, any representations, warranties, undertakings
         or indemnities on the part of the Bank). The Bank shall not be obliged
         to execute any Document that does not comply with this paragraph (b)
         and may make such amendments to the Documents as the Bank deems
         appropriate in order that the Documents do so comply. Further the Bank
         may (acting in good faith), before executing the Documents, require the
         Seller to deliver a certificate (substantially in the form of an
         Officer's Certificate, mutatis mutandis) signed by two of its officers.

(c)      The reasonable cost incurred by the Bank in the execution and delivery
         of the Documents shall be borne exclusively by the Seller concerned.

9.3      Miscellaneous

(a)      Should the Seller concerned fail to pay the Deemed Collections out of
         its own resources or fail to make any payment referred to in Clause
         9.2(a)(iii), the Bank may automatically set-off (i) the amount due to
         the Depositor under the Subordinated Deposit and the Additional Deposit
         against (ii) the amount due to the Bank by reason of the Deemed
         Collections or the amount of such payment (as appropriate). As soon as
         practicable, the Bank shall notify the Seller concerned after exercise
         of its right of set-off.

(b)      Any Deemed Collection shall remain outstanding until it has been paid
         in full by the Seller concerned either out of its own resources or by
         virtue of the operation of paragraph (a) above or by the Depositor.

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(c)      Where any event is a Deemed Collection under more than one paragraph of
         this Clause 9, the amount of that Deemed Collection shall only be
         counted once for the purposes of paragraphs this Clause and for the
         purpose of calculating the amount of Collections.

10.      REPRESENTATIONS RELATING TO TRANSFERRED RECEIVABLES

10.1     Introduction

         Each Seller makes the following representations and warranties to the
         Bank with respect to each receivable referred to in a Transfer Document
         delivered by such Seller to the Bank:

10.2     Relevant Receivables

         Each such receivable:

         (a)      exists and is a Relevant Receivable and the information
                  provided in respect of each such receivable in such Transfer
                  Document and any related magnetic or electronic support is
                  complete and accurate in all material respects; and

         (b)      comprises, in the case of Transferred Receivables transferred
                  by (i) Mattel France S.A., a claim against the relevant Debtor
                  which is a creance certaine and (ii) Mattel GmbH, a claim
                  against the relevant Debtor which is ascertained (bestimmter
                  Geldbetrag).

10.3     Third party rights

         No such receivable:

         (a)      is or has been the subject of any prior transfer or
                  assignment, subrogation, delegation, attachment or seizure
                  whatsoever (whether in whole or in part), nor of any security
                  interest, lien or encumbrance whatsoever and there exists no
                  impediment to its assignment or transfer in accordance with
                  the Closing Documents;

         (b)      is subject to any right of set-off, counterclaim, deduction or
                  withholding whatsoever or subject to any valid Adverse Claims
                  of any nature.

10.4     Title

         Each Seller has, from the time of its origination up to and including
         the relevant Transfer Date, full title to and ownership of each such
         receivable and any Related Security and Related Rights relating
         thereto.

10.5     Compliance with Sales Contracts and applicable laws

(a)      Each Sales Contract under which any such receivable arises shall be the
         legal, valid binding and enforceable obligations of the Seller and the
         Debtor concerned and the relevant Debtor and the Seller are each in
         compliance with all of their respective obligations (except to the
         extent that any such obligation is of an immaterial and technical or
         administrative nature) under those Sale Contracts and all requirements
         of such Sales Contracts upon which payment by the Debtor may be
         dependent have been fulfilled in all respects.

(b)      Each Seller is in compliance in all material respects with the
         provisions of all laws and regulations which apply to (i) each such
         receivable and any Related Security and Related

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         Rights relating thereto and (ii) the relevant Sales Contracts and all
         Authorisations necessary for the execution and performance of such Sale
         Contracts have been obtained and are in full force and effect.

10.6     Related Security

         All Related Security and Related Rights relating to any such receivable
         is legally binding and enforceable in accordance with its applicable
         terms.

10.7     Times for making representations and warranties

         The representations and warranties set out in this Clause 10 are made
         with respect to such receivable on the Transfer Date for that
         receivable.

11.      REPRESENTATIONS RELATING TO ELIGIBLE TRANSFERRED RECEIVABLES

         Each Seller represents and warrants to the Bank that all receivables
         comprising the aggregate amount of receivables stated by it in an
         Assessment Report to be Eligible Transferred Receivables, satisfy the
         criteria for Eligible Transferred Receivables set out in Part II of
         Schedule 2. The representation and warranty referred to in this Clause
         11 shall be made by each Seller on the date of each Assessment Report
         delivered by it.

12.      GENERAL REPRESENTATIONS

12.1     Introduction

         Each Obligor makes the representations and warranties set out in this
         Clause 12 to the Bank.

12.2     Status

(a)      It is a limited liability company duly incorporated and validly
         existing under the laws of its jurisdiction of incorporation; and

(b)      it has the power to own the assets recorded on its balance sheet and
         carry on its business as it is being conducted.

12.3     Powers and authority

         It has the power to enter into and perform, and has taken all necessary
         action to authorise the entry into, performance and delivery of, the
         Closing Documents to which it is or will be a party and the
         transactions contemplated by those Closing Documents.

12.4     Legal validity

         Each Closing Document to which it is or will be a party constitutes, or
         when executed in accordance with its terms will constitute, its legal,
         valid and binding obligation enforceable in accordance with its terms
         subject, in the case of enforceability, to the Reservations.

12.5     Authorisations

         All Authorisations required in connection with the entry into by it,
         its performance, the validity and enforceability against it of, and the
         transactions contemplated by, the Closing

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         Documents to which it is a party have been obtained or effected (as
         appropriate) and are in full force and effect subject, in the case of
         enforceability, to the Reservations.

12.6     Pari passu ranking

         Its obligations under the Closing Documents to which it is a party rank
         and will rank at least pari passu with all its other present and future
         unsecured and unsubordinated obligations (except for obligations which
         are mandatorily preferred by law applying to companies generally in the
         jurisdiction of its incorporation).

12.7     Taxes on payments

         All amounts of Transfer Fee, Commitment Fee and Collections payable by
         it under the Closing Documents may be made free and clear of and
         without deduction for or on account of any Tax (other than any
         applicable notarial fees) in France, Germany or the Netherlands.

12.8     Immunity

(a)      The execution by it of each of the Closing Documents to which it is
         party constitutes, and its exercise of its rights and performance of
         its obligations under each such Closing Document will constitute,
         private and commercial acts done and performed for private and
         commercial purposes; and

(b)      it will not be entitled to claim immunity from suit, execution,
         attachment or other legal process in any proceedings taken in the
         jurisdiction of its incorporation in relation to any Closing Document.

12.9     Non-conflict

         The entry into and performance by it of, and the transactions
         contemplated by, the Closing Documents to which it is a party do not
         and will not:

         (a)      conflict in any material respect with any law or regulation or
                  judicial or official order applicable to it (subject to the
                  Reservation with respect to French Decree 96-1112 of 18th
                  December, 1996 relating to out of court recovery); or

         (b)      conflict with its constitutional documents; or

         (c)      conflict in any material respect with any document which is
                  binding upon it or any of its assets.

12.10    No default

(a)      No Event of Early Amortisation is outstanding in relation to it or
         could be reasonably expected to result from the performance of any
         transaction contemplated by this Agreement; and

(b)      no other event is outstanding which constitutes (or with the giving of
         notice, lapse of time, determination of materiality or the fulfilment
         of any other applicable condition or any combination of the foregoing,
         would constitute) a default under any document which is binding on it
         or any of its assets to an extent or in a manner which could reasonably
         be expected to have a Material Adverse Effect.

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12.11    Litigation

(a)      No litigation, arbitration or administrative proceedings are currently
         being taken against it or, to the best of its knowledge, pending or
         threatened, which, if adversely determined, could reasonably be
         expected to have a Material Adverse Effect.

(b)      No proceedings of any nature are current or, to the best of its
         knowledge, pending or threatened, for its winding-up or dissolution of,
         or in respect of any insolvency proceeding of any nature relating to
         it.

12.12    Accounts

         Its accounts (consolidated if delivered and audited in the case of each
         Seller) and the audited consolidated accounts of the Parent, most
         recently delivered to the Bank (which at the date of this Agreement are
         the Original Accounts):

         (a)      have been prepared in accordance with accounting principles
                  and practices generally accepted in the jurisdiction of
                  incorporation of the Obligor to which such accounts relate or
                  in accordance with U.S. GAAP in the case of the Parent's
                  accounts and any consolidated accounts relating to an Obligor,
                  consistently applied; and

         (b)      fairly represent its financial condition (consolidated if
                  appropriate) or, as the case may be, the Parent's consolidated
                  financial condition as at the date to which they were drawn
                  up,

         and there has been no change in its financial condition (consolidated
         if appropriate) or, as the case may be, the Parent's consolidated
         financial condition since the date to which those accounts were drawn
         up which could reasonably be expected to have a Material Adverse
         Effect.

12.13    Information

         All factual information provided by it in writing to the Bank in
         connection with the Closing Documents is true and accurate in all
         material respects and not misleading in any material respect.

12.14    Compliance with laws

         It carries on its business in all material respects in accordance with
         all applicable laws and regulations (including, without limitation,
         those relating to the environment) where failure to do so could
         reasonably be expected to have a Material Adverse Effect.

12.15    Jurisdiction/governing law

(a)      Its:

         (i)      irrevocable submission under Clause 34.1 (Jurisdiction) to the
                  jurisdiction of the courts of Amsterdam;

         (ii)     agreement that this Agreement is governed by the laws of the
                  Netherlands; and

         (iii)    agreement not to claim any immunity to which it or its assets
                  may be entitled,

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         are legal, valid and binding under the laws of the jurisdiction of its
         incorporation subject to the Reservations.

(b)      Any judgement obtained in the Netherlands in legal proceedings based on
         or in connection with the Closing Documents will be recognised and
         enforced by the courts of the jurisdiction of its incorporation without
         re-examination or re-litigation of the matter thereby adjudicated
         (subject to the provisions of the Brussels Convention on jurisdiction
         and enforcement of judgements in civil and commercial matters, 1968).

12.16    Ownership

(a)      The Parent owns and controls (whether directly or indirectly) the
         entirety (other than any minority holdings of share capital or voting
         rights by directors of any Obligor as required by applicable law) of
         the issued and paid up share capital and voting rights of each Obligor.

(b)      The Depositor is a Controlling Owner of the Sellers.

12.17    Times for making representations and warranties

         The representations and warranties set out in this Clause 12:

         (a)      are made on the date of this Agreement; and

         (b)      (with the exception of Clause 12.7 (Taxes on payments)) are
                  deemed to be repeated by each Obligor on each Transfer Date
                  with reference to the facts and circumstances then existing.

13.      INFORMATION UNDERTAKINGS

13.1     Duration

         The undertakings in this Clause 13.1 shall remain in force from the
         date of this Agreement until the Agreement Expiry Date.

13.2     Financial information

(a)      Each Obligor shall supply to the Bank as soon as the same are available
         (and in any event within 120 days (in the case of Mattel France S.A.
         and the Depositor) or 180 days (in the case of Mattel GmbH) of the end
         of each of its financial years) its accounts (consolidated if prepared
         and audited in the case of each Seller) for that financial year
         together with the report of its board of directors and auditors (in
         each case if any) relating thereto and an extract of the minutes of the
         annual general meeting approving the accounts.

(b)      The Depositor shall supply to the Bank as soon as the same are
         available (and in any event within 120 days of the end of each of the
         Parent's financial years) the audited consolidated accounts of the
         Parent for that financial year together with the report of its board of
         directors and auditors (in each case if any) relating thereto.

(c)      Each Obligor shall ensure that each set of accounts delivered by it
         pursuant to paragraph (a) above:

         (i)      is prepared in accordance with accounting principles and
                  practices generally accepted in the jurisdiction of
                  incorporation of the Obligor to which such accounts relate or
                  in

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            accordance with U.S. GAAP in the case of any consolidated accounts
            relating to an Obligor, and (as appropriate) on the same basis as
            was used in the preparation of its Original Accounts;

     (ii)   shall give a true and fair view of the financial condition of the
            Obligor as at the end of the period to which those accounts relate
            and of the results of its operations during that period; and

     (iii)  is (in the case of each Seller's accounts referred to in paragraph
            (a)(i) above) audited by an internationally recognised independent
            qualified firm of auditors.

(d)  Together with each set of accounts referred to in paragraph (a) above, the
     Seller shall deliver to the Bank an Auditors' Certificate and the Depositor
     shall deliver to the Bank an Officer's Certificate.

13.3 Information - miscellaneous

(a)  Each Obligor shall supply to the Bank:

     (i)    all documents despatched by it to (A) its shareholders (or any class
            of them) concerning the convening of, agendas for and resolutions to
            be considered at shareholders meetings or involving or containing
            reports or information relating to its affairs and activities, or
            (B) by it to its creditors generally (or any class of them) at the
            same time as they are despatched;

     (ii)   promptly upon becoming aware of them, details of any litigation,
            arbitration or administrative proceedings which are current,
            threatened or pending, and which, if adversely determined, could
            reasonably be expected to have a Material Adverse Effect; and

     (iii)  within a reasonable period of time following request therefor, any
            other information, documents and records in its possession, custody
            or control as the Bank may at any time reasonably request regarding
            its financial condition, operations or Relevant Receivables or which
            in the Bank's opinion (acting in good faith) will enable the Bank to
            verify the fulfilment by any Seller of its obligations under this
            Agreement with regard to the recovery of sums due under the
            Transferred Receivables.

(b)  Each Seller shall:

     (i)    keep the Bank fully informed of the existence and material progress
            of any legal or arbitration proceedings relating to Transferred
            Receivables (including, without limitation for the purpose of
            recovering sums due under that Transferred Receivable), in respect
            of an amount of (Euro)1,000,000 or more (or the equivalent in other
            currencies);

     (ii)   promptly upon becoming aware of the same, notify the Bank of any
            other event (including the loss or disappearance of any security
            interest or claim) which shall prejudice the payment of any sum in
            excess of (Euro) 1,000,000 (or the equivalent in other currencies)
            in respect of a Transferred Receivable;

     (iii)  promptly (and to the fullest extent it is aware of the same) inform
            the Bank of all Related Security and Related Rights relating to each
            Transferred Receivable transferred by it and to co-operate with the
            Bank if and when the same are exercised; and

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     (iv)   without prejudice to Clause 14.14 (Amendments to Sales Contracts and
            Sales Administration Guidelines) give prior notification to the Bank
            of any proposed change to its Sale Administration Guidelines.

13.4 Notification of Amortisation Events and compliance certificates

(a)  Each Obligor shall notify the Bank of any Amortisation Event (and the
     steps, if any, being taken to remedy it) promptly upon becoming aware of
     the same.

(b)  Each Obligor shall supply to the Bank:

     (i)    together with its accounts under Clause 13.2(a) (Financial
            information); and

     (ii)   promptly at any other time, if the Bank (acting in good faith) so
            requests,

     a certificate signed by two of its senior officers on its behalf certifying
     that no Amortisation Event relating to it is outstanding, or, if an
     Amortisation Event relating to it is outstanding, specifying the
     Amortisation Event and the steps, if any, being taken to remedy it.

13.5 Information relating to Transferred Receivables

(a)  Each Seller shall:

     (i)    preserve all contractual documentation (including Sales Contracts
            and invoices) and the computer information underlying each
            Transferred Receivable and any Related Security and Related Rights;

     (ii)   maintain full and proper accounts and records, showing clearly all
            transactions, payments and proceedings relating to each Transferred
            Receivable transferred by it since the date of its origination;

     (iii)  ensure that all such contractual documentation, computer
            information, accounts and records referred to in paragraphs (i) and
            (ii) above are up-to-date;

     (iv)   maintain an up to date list of the Transferred Receivables
            transferred by it under this Agreement on a form of electronic
            support (including material support) detailing the identity of the
            relevant Debtors, their addresses, the reference number of the
            relevant invoices, their invoice date and the maturity, currency and
            the face value of the receivables;

     (v)    deliver to the Bank promptly on its request (provided such request
            is made within normal business hours) copies of (or, if the Bank so
            requests, allow the Bank or any person appointed by the Bank, during
            normal business hours, to have access to and to take copies of) the
            contractual documentation, computer information and supporting
            documentation referred to in paragraphs (i) and (ii) above.

(b)  Each Seller shall ensure that its accounts and records permit the
     identification of which of its receivables are Transferred Receivables.

(c)  Any costs incurred by the Sellers in connection with the entry into
     Transfer Documents, the preparation and maintenance of the support and the
     compliance with paragraph (a) above

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     shall be borne exclusively by the Sellers and neither the Bank nor any
     person appointed by it shall be under any obligation to reimburse any
     Seller in respect of such costs.

13.6 Assessment Reports

(a)  So long as its Collection Mandate has not been terminated by the Bank in
     accordance with Clause 6.3 (Termination of Collection Mandates and Notices
     of Transfer), each Seller shall transmit to the Bank before 11.00 a.m. on
     each Information Date (or as soon as practicable in the case of an Interim
     Assessment Date) an Assessment Report relating to the month ending on the
     immediately preceding Assessment Date or Interim Assessment Date (as
     appropriate).

(b)  Each Seller shall procure that each Assessment Report delivered by it:

     (i)    identifies each Debtor which, as at the Assessment Date or Interim
            Assessment Date to which the Assessment Report relates, has
            outstanding against it:

            (A)  in the case of Mattel France S.A. (1) Delinquent Receivables
                 exceeding (Euro)2,000,000 (or the equivalent in other
                 currencies), or (2) Defaulted Receivables exceeding
                 (Euro)1,000,000 (or the equivalent in other currencies); and

            (B)  in the case of Mattel GmbH (1) Delinquent Receivables exceeding
                 (Euro)1,000,000 (or the equivalent in other currencies), or (2)
                 Defaulted Receivables exceeding (Euro)500,000 (or the
                 equivalent in other currencies); and

     (ii)   does not contain misleading or inaccurate information (excluding any
            de-minimis errors).

13.7 Audit

     Each Seller shall, upon the Bank's reasonable request, arrange, at the
     Seller's cost, for an audit of the Relevant Receivables originated by it
     and the collection procedures applying in relation to such Relevant
     Receivables (provided that the Bank may not make such a request more than
     once in any period of 12 months).

14.  GENERAL UNDERTAKINGS

14.1 Duration

     The undertakings in this Clause 14.1 shall remain in force from the date of
     this Agreement until the Agreement Expiry Date.

14.2 Authorisations

     Subject to the Reservation with respect to French Decree 96-1112 of 18th
     December, 1996 relating to out of court recovery, each Obligor shall
     promptly:

     (a)    obtain, maintain and comply with the terms of; and

     (b)    provide certified copies to the Bank of,

     any authorisation required under any law or regulation to enable it to
     perform any of its obligations under the Closing Documents to which it is a
     party, or for the validity or enforceability of, any Closing Document.

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14.3 Pari passu ranking

     Each Obligor shall procure that its obligations under the Closing Document
     do and will rank at least pari passu with all its other present and future
     unsecured and unsubordinated obligations (except for obligations which are
     mandatorily preferred by law applying to companies generally in the
     jurisdiction of its incorporation).

14.4 Insurance

     Each Obligor shall insure its assets with insurance companies to such an
     extent and against such risks as companies engaged in a similar business as
     that Obligor normally insure and each Seller shall comply with any material
     requirements as to insurance in place (if any) arising out of its capacity
     as collection agent for the Bank in respect of the Transferred Receivables
     (provided that this Clause 14.4 shall not have the effect of obliging any
     Obligor to take out and maintain any insurance policy relating to
     operational loss).

14.5 Maintenance of status

     Each Obligor shall:

     (a)    do all such things as are necessary to maintain its corporate
            existence; and

     (b)    ensure that it has the right and is duly qualified to conduct its
            business as it is conducted in all applicable jurisdictions.

14.6 Compliance with laws

     Each Obligor shall comply in all respects with all laws to which it is
     subject where failure to do so has, or could reasonably be expected to
     have, a Material Adverse Effect.

14.7 Transfer Documents and magnetic or electronic supports

     Each Seller shall procure that all information and particulars relating to
     Transferred Receivables appearing in each Transfer Document and each
     magnetic or electronic support relating to any Transfer Document delivered
     by it is accurate and complete in all material respects and does not omit
     any information and particulars which would result in any Transfer Document
     or supports related thereto being misleading in any material respect (and
     shall promptly notify the Bank upon it becoming aware that this is not in
     any instance the case).

14.8 Collection and recovery

(a)  Each Seller shall act in the recovery of the sums due under the Transferred
     Receivables transferred by it as would a prudent and informed businessman,
     and be no less diligent than it would have been in recovering sums due
     under Transferred Receivables if it had not transferred such receivables to
     the Bank.

(b)  Without prejudice to paragraph (a) above, each Seller shall:

     (i)    apply to the recovery of sums due under Transferred Receivables
            transferred by it collection and recovery procedures that comply
            with all applicable laws and regulations and the relevant Sales
            Contracts and the Sales Administration Guidelines (except to the
            extent that the relevant provisions or elements of such Sales
            Contracts

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             or Sales Administration Guidelines are of an immaterial and
             technical or administrative nature);

      (ii)   take all steps as are within its power as may be required to ensure
             that all Related Security and Related Rights relating to
             Transferred Receivables transferred by it remain in force and are
             exercised in a timely fashion;

      (iii)  take all reasonable steps as are within its power to oppose any
             claim challenging the existence, validity, amount or maturity of
             any Transferred Receivables transferred by it or any Related
             Security or Related Rights;

      (iv)   take such steps as are within its power (including, without
             limitation, legal or arbitration proceedings) as may reasonably be
             requested by the Bank or considered necessary or appropriate for
             the recovery of sums due under the Transferred Receivables
             transferred by it and any Related Security or Related Rights
             (including, without limitation, taking action against Credit
             Insurers); and

      (v)    take all reasonable steps promptly to cause any attachment, seizure
             or any other enforcement measure levied or applied for against any
             Seller's Account or any Transferred Receivable to be released or
             withdrawn to the satisfaction of the Bank.

(c)   The Depositor shall take all reasonable steps promptly to cause any
      attachment, seizure or any other enforcement measure levied or applied for
      against the Depositor's Account to be released or withdrawn to the
      satisfaction of the Bank.

14.9  Taxes

      Each Seller shall collect and pay within any applicable time limit all
      applicable Taxes (other than Excluded Tax) in relation to the Transferred
      Receivables transferred by it and the Closing Documents as are required to
      be collected and paid by each Seller by applicable law.

14.10 Promissory notes and negotiable instruments

      Where a Relevant Receivable is evidenced by a negotiable instrument, no
      Seller shall endorse, deliver, release or negotiate that instrument to, or
      in favour of, any person other than the Bank (and each Seller concerned
      shall endorse, deliver, release or negotiate any such negotiable
      instrument to or in favour of the Bank promptly upon the Bank's request on
      a non recourse basis either (a) if to do so is necessary to confer title
      to the Relevant Receivable on the Bank or (b) following the termination of
      that Seller's Collection Mandate relating to that Relevant Receivable in
      accordance with Clause 6.3 (Termination of Collection Mandates and Notices
      of Transfer)).

14.11 Subsequent transfers

      No Seller shall enter into any subsequent assignment or transfer or
      subrogation of any description (or purport or agree to do so) of any
      Transferred Receivable or any Related Security or Related Rights or grant
      any security interest over or in relation to any Transferred Receivable or
      act in any way that might result in an Adverse Claim being made in respect
      of any Transferred Receivable.

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14.12 Rating Agencies

(a)   Subject to paragraph (b) below, each Obligor shall promptly comply with
      the requirements of the Rating Agencies (as notified by the Bank to the
      Obligors) with regard to the Relevant Receivables and the Closing
      Documents (including, without limitation, any requirements of the Rating
      Agencies relating to amendments to the Closing Documents or the provision
      of further information relating to the Obligors or legal opinions).

(b)   If any Obligor does not agree to any requirements of the Rating Agencies
      referred to in paragraph (a) above, the Sellers may (without premium or
      penalty and without obligation to indemnify the Bank for any costs or
      losses arising on such cancellation other than in respect of breakage
      costs under Clause 23.1 (Breakage costs), if any, but without prejudice to
      the Obligors continuing obligations under the Closing Documents with
      respect to Transferred Receivables) cancel the Maximum Amount of the
      Bank's Funding forthwith by notice to the Bank (and such cancellation
      shall take effect on the first Information Date after such notice is
      given). Any notice of cancellation under this Clause 14.12 shall be
      irrevocable and no amount of the Maximum Amount of the Bank's Funding
      cancelled under this Clause 14.12 shall be reinstated.

14.13 Further assurances

      Each Obligor shall, at its own expense, take whatever action the Bank may
      reasonably require to facilitate or effect the transfer of Relevant
      Receivables and Related Security and Related Rights pursuant to this
      Agreement and any Transfer Document, including the execution of any
      transfer, conveyance, assignment or assurance and the giving of any
      notice, order or direction and the making of any registration, which the
      Bank may, in its reasonable opinion, think necessary (including, without
      limitation, the endorsement of any negotiable instruments relating to
      Relevant Receivables to or in favour of the Bank or the delivery of any
      such negotiable instruments to the Bank, in each case to the fullest
      extent practicable and permitted by applicable law).

14.14 Amendments to Sales Contracts and Sales Administration Guidelines

(a)   No Seller shall:

      (i)   subject to paragraphs (b) and (c), below make, or agree to make, any
            amendment or waiver to any Sales Contract which would have the
            effect of:

            (A)  reducing the amount, place of payment or the originally
                 applicable Maturity Date of any Transferred Receivable (other
                 than to remedy a technical error so as to ensure compliance
                 with the Sales Administration Guidelines);

            (B)  waiving, impairing, invalidating or reducing the Related
                 Security or Related Rights attached to any Transferred
                 Receivable;

            (C)  changing the governing law of the Sales Contract or introducing
                 a restriction or prohibition on the transfers of Relevant
                 Receivables contemplated by the Closing Documents; or

            (D)  adversely affecting the collectability of any Transferred
                 Receivable or the ability of the Seller concerned to perform
                 any of its obligations, or the rights of the Bank, under the
                 Closing Documents; or

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      (ii)   make any material change to the Sale Administration Guidelines
             (including, without limitation, the collection procedures in
             operation thereunder at the date of this Agreement).

(b)   A Seller may in the context of Insolvency Proceedings relating to a
      Debtor, participate in, make proposals for, or agree to the terms of, a
      voluntary rescheduling of that Debtor's indebtedness (and may make
      proposals for that purpose) provided that:

      (i)    its Collection Mandate with respect to Transferred Receivables
             owing by that Debtor has not been terminated by the Bank;

      (ii)   the Seller at all times complies with its obligations under Clause
             14.8 (Collection and recovery) with respect to its involvement in
             such rescheduling;

      (iii)  the Seller keeps the Bank fully informed of the progress of such
             rescheduling; and

      (iv)   if the aggregate amount of the Transferred Receivables subject to
             such rescheduling exceeds (euro) 5,000,000 (or its equivalent in
             other currencies), the Seller shall act in accordance with the
             Bank's instructions with respect to such rescheduling and shall not
             enter into any agreement with in relation thereto without the prior
             consent of the Bank, and such consent shall be deemed to have been
             given if not expressly refused by the Bank within five Business
             Days of the Seller's request.

(c)   Each Seller may issue Credit Notes or grant Commercial Discounts in
      accordance with its Sales Administration Guidelines in relation to any
      Transferred Receivable with respect to which its Collection Mandate has
      not been terminated, provided that, for the avoidance of doubt, any such
      Credit Note or Commercial Discount shall be a Deemed Collection.

14.15 Performance of Sales Contracts and related matters

(a)   Each Seller shall comply with its contractual obligations (except to the
      extent that the relevant obligations are of an immaterial and technical or
      administrative nature) under:

      (i)    the Sales Contracts under which any Transferred Receivables is
             outstanding and shall in no event act in such a way that any Debtor
             is able to raise any valid set-off, counterclaim, deduction or
             withholding of any nature whatsoever or any valid defence that it
             is not obliged to make payment in full in cash in respect of any
             Transferred Receivable to the Bank on the originally applicable
             Maturity Date; and

      (ii)   any applicable Credit Insurance Policy (if any) such that no
             insurance company is able to raise any claim or defence, set-off,
             counterclaim, deduction or withholding of any nature whatsoever
             that it is not obliged to make payment in full in cash under any
             such insurance policy.

(b)   No Seller shall use any Seller's Account for any purpose other than those
      provided for in the Closing Documents.

(c)   No Seller shall use software for the management of Transferred Receivables
      unless the software user license allows it to be used for the management
      of assets which are no longer owned by that Seller.

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14.16    Conduct of business

         No Seller shall conduct its business in a way that could reasonably be
         expected to materially adversely affect the collectability of the
         Transferred Receivables or otherwise have a Material Adverse Effect.

14.17    Accounts

(a)      No Obligor shall create or allow to subsist any security interest or
         encumbrance on or over its Seller's Account (in the case of the
         Sellers) or the Depositor's Account (in the case of the Depositor).

(b)      Each Obligor shall operate its Seller's Account (in the case of the
         Sellers) or the Depositor's Account (in the case of the Depositor)
         exclusively for the purpose of the Closing Documents or any agreement
         relating thereto.

14.18    Change of business

         Except with the prior written consent of the Bank (which consent shall
         not be unreasonably withheld or delayed) neither of the Sellers shall
         engage in any material line of business which is substantially
         different from the lines of business carried on by such Seller at the
         date of this Agreement.

14.19    Mergers and disposals

(a)      Except with the prior written consent of the Bank:

         (i)      no Seller shall enter into any merger or demerger; provided,
                  however, that without the Bank's consent a Seller may enter
                  into any of the following transactions on a solvent basis with
                  a Mattel Wholly-Owned Subsidiary:

                  (A)      a merger in which the Seller is the surviving entity;
                           or

                  (B)      a partial contribution to the Seller of assets from
                           another Mattel Wholly-Owned Subsidiary, whereby
                           assets and liabilities comprising part of the
                           business of such Mattel Wholly-Owned Subsidiary are
                           transferred to the Seller in exchange for shares of
                           the Seller, provided further, in this case, that the
                           Depositor remains the Controlling Owner of the
                           Seller,

                  and provided further that:

                  (1)      the Bank is given prior notice of the transaction;

                  (2)      the Rating Agencies have confirmed that they have no
                           objection to the transaction or any requirement of
                           any Rating Agency with respect to such transaction
                           has been fulfilled; and

                  (3)      the transaction does not have, and could not
                           reasonably be expected to have, a Material Adverse
                           Effect;

         (ii)     no Seller shall, either in a single transaction or in a series
                  of transactions, whether related or not and whether
                  voluntarily or involuntarily, sell, transfer, grant, lease or

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                  otherwise dispose of a material portion of its assets, if to
                  do so has, or could reasonably be expected to have, a Material
                  Adverse Effect;

         (iii)    the Depositor shall not enter into any merger or demerger;
                  provided, however, that without the Bank's consent the
                  Depositor shall be permitted to enter into any of the
                  following transactions on a solvent basis with a Mattel
                  Wholly-Owned Subsidiary:

                  (A)      a merger in which the surviving entity is the
                           Depositor;

                  (B)      a partial contribution to the Depositor of assets
                           from another Mattel Wholly-Owned Subsidiary, whereby
                           assets and liabilities comprising part of the
                           business of such Mattel Wholly-Owned Subsidiary are
                           transferred to the Depositor in exchange for shares
                           of the Depositor; or

                  (C)      a merger in which the Depositor merges with and into
                           another Mattel Wholly-Owned Subsidiary (other than
                           the Sellers), with such Mattel Wholly-Owned
                           Subsidiary as the surviving entity, provided that all
                           of the following conditions are met:

                           (1)      the Depositor will cease to exist; and

                           (2)      the surviving entity will, by operation of
                                    law, acquire all rights and assume all
                                    obligations of the Depositor under the
                                    Closing Documents; and

                           (3)      the surviving entity will be a company duly
                                    incorporated and validly existing under the
                                    laws of the Netherlands; and

                           (4)      the surviving entity will be the Controlling
                                    Owner of the Sellers; and

                           (5)      the Bank first receives legal opinions in
                                    form reasonably satisfactory to the Bank and
                                    the Rating Agencies (if necessary) as to
                                    conditions (1) to (3) (inclusive) above, and
                                    a certificate from an authorised signatory
                                    of the Parent and/or the surviving entity
                                    reasonably satisfactory to the Bank as to
                                    condition (4) above,

                  and provided further that (in the case of (A), (B) and (C)
                  above):

                  (I)      the Bank is given prior notice of the transaction;

                  (II)     the Rating Agencies have confirmed that they have no
                           objection to the transaction or any requirement of
                           any Rating Agency with respect to such transaction
                           has been fulfilled; and

                  (III)    the transaction does not have, and could not
                           reasonably be expected to have, a Material Adverse
                           Effect; and

         (iv)     the Depositor shall not, in a single transaction or in a
                  series of transactions, whether related or not and whether
                  voluntary or involuntary, sell, transfer, grant, lease or
                  otherwise dispose of a material portion of its assets;
                  provided, however, that without the Bank's consent the
                  Depositor may, on a solvent basis, (A) transfer its legal
                  relationship (rechtsverhouding) with the Sellers and the Bank
                  under the Closing Documents, being all of the rights and
                  obligations of the Depositor, to a Mattel

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                  Wholly-Owned Subsidiary or (B) transfer all of its assets and
                  liabilities to a Mattel Wholly-Owned Subsidiary (an
                  activa/passiva transactie), if in the case of either (A) or
                  (B) all of the following conditions are met:

                  (1)      the transferee will, as a result of the transfer,
                           acquire all rights and assume all obligations of the
                           Depositor under the Closing Documents (upon which
                           references in the Closing Documents to the Depositor
                           shall refer to the transferee); and

                  (2)      the transferee will be a company duly incorporated
                           and validly existing under the laws of the
                           Netherlands; and

                  (3)      the transferee will, upon completion of the transfer
                           and any related transactions, be the Controlling
                           Owner of the Sellers; and

                  (4)      the Bank first receives legal opinions in form
                           reasonably satisfactory to the Bank and the Rating
                           Agencies (if necessary) as to conditions (1) and (2)
                           above, and a certificate of the Parent and/or the
                           surviving entity reasonably satisfactory to the Bank
                           as to condition (3) above,

                  and provided further that

                  (I)      the Bank is given prior notice of the transaction;

                  (II)     the Rating Agencies have confirmed that they have no
                           objection to the transaction or any requirement of
                           any Rating Agency with respect to such transaction
                           has been fulfilled; and

                  (III)    the transaction does not have, and could not
                           reasonably be expected to have, a Material Adverse
                           Effect.

(b)      The Bank agrees:

         (i)      to consider in good faith any request by an Obligor to enter
                  into a transaction which is prohibited by this clause; and

         (ii)     in accordance with Article 6:159 of the Netherlands Civil
                  Code, to cooperate in advance with the Depositor and the
                  Sellers with regard to any transaction referred to in this
                  Clause 14.19 for which the Bank's consent is not required.

(c)      In this Clause 14.19, the expression "on a solvent basis" in relation
         to a transaction means that no company involved in that transaction is
         in Insolvency Proceedings at the time that transaction is to take
         place.

(d)      The Depositor (or its permitted successor or transferee) shall pay the
         reasonable costs and expenses of the Bank, including but not limited to
         the Bank's reasonable attorneys' fees, in connection with any of the
         following:

         (i)      review by the Bank of any transaction pursuant to this Clause
                  14.19 as to which the Bank's consent is sought;

         (ii)     review by the Bank of the opinion and the certificate
                  mentioned in Clause 14.19(a)(iii)(C)(5) and Clause
                  14.19(a)(iv)(4) above;

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         (iii)    the cooperation of the Bank pursuant to Clause 14.19(b); or

         (iv)     any re-evaluation by the Rating Agencies due to any
                  transaction pursuant to this Clause 14.19.

15.      Events of Early Amortisation

15.1     Events of Early Amortisation

         Each of the events set out in this Clause 15 is an Event of Early
         Amortisation (whether or not caused by any reason whatsoever outside
         the control of any Obligor or any other person).

15.2     Non-payment

         An Obligor does not pay on the due date (or within two Business Days of
         the due date where the failure to pay is for administrative or
         technical reasons) any amount payable by it under the Closing Documents
         at the place at, and in the currency in, which it is expressed to be
         payable.

15.3     Breach of other obligations

         An Obligor does not comply with any provision of the Closing Documents
         (other than those referred to in Clause 15.2 (Non-payment) and the
         failure to comply, if it is (in the reasonable opinion of the Bank)
         capable of remedy, continues for seven Business Days after the date of
         its occurrence.

15.4     Misrepresentation

(a)      A representation, warranty or statement made or repeated in or in
         connection with any Closing Document or in any document delivered by or
         on behalf of any Obligor under or in connection with any Closing
         Document is incorrect in any material respect when made or deemed to be
         made or repeated and, if the facts or circumstances giving rise to the
         representation, warranty or statement being made or repeated
         incorrectly are (in the reasonable opinion of the Bank) capable of
         remedy or negation, such facts or circumstances are not remedied or
         negated within seven Business Days of the making or repetition of the
         representation, warranty or statement concerned.

(b)      Without prejudice to paragraph (a) above), any Obligor delivers to the
         Bank any document containing information concerning the Transferred
         Receivables which is inaccurate, misleading or incomplete in any
         material respect and, if the inaccuracy, misleading nature or
         incompleteness of the information concerned is (in the reasonable
         opinion of the Bank) capable of being remedied, it is not remedied
         within seven Business Days of the earlier of the date on which the
         Obligor concerned becomes aware of such matter and the date on which
         the Bank gives notice thereof to the Obligor concerned.

15.5     Cross-default

(a)      Any Financial Indebtedness of the Depositor at any time exceeding in
         aggregate U.S.$15,000,000 (or the equivalent in other currencies) in
         outstanding principal amount (i) is declared currently due and payable
         as a result of the occurrence and continuance of an event of default
         (howsoever described) with respect to that Financial Indebtedness, or
         (ii) is not paid

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         when due under the terms of the credit documentation relating to such
         Financial Indebtedness; or

(b)      any Financial Indebtedness of the Sellers (or either of them) at any
         time exceeding in aggregate U.S.$5,000,000 (or the equivalent in other
         currencies) in outstanding principal amount (i) is declared currently
         due and payable as a result of the occurrence and continuance of an
         event of default (howsoever described) with respect to that Financial
         Indebtedness, or (ii) is not paid when due under the terms of the
         credit documentation relating to such Financial Indebtedness.

15.6     Insolvency

(a)      Any member of the Relevant Group is, or is deemed for the purposes of
         any law to be, unable to pay its debts as they fall due or to be
         insolvent, or admits inability to pay its debts as they fall due; or

(b)      any member of the Relevant Group suspends making payments on all or any
         class of its debts or announces an intention to do so, or a moratorium
         is declared in respect of any of its indebtedness; or

(c)      any member of the Relevant Group, by reason of financial difficulties,
         begins negotiations with one or more of its creditors with a view to
         the readjustment or rescheduling of any of its indebtedness.

15.7     Insolvency proceedings

(a)      Any step (including petition, proposal or convening a meeting) is taken
         with a view to a composition, assignment or arrangement with any
         creditors of any member of the Relevant Group; or

(b)      a meeting of any member of the Relevant Group is convened for the
         purpose of considering any resolution for (or to petition for) its
         winding-up or for its administration or any such resolution is passed;
         or

(c)      any person presents a petition for the winding-up or for the
         administration of any member of the Relevant Group; or

(d)      an order for the winding-up or administration of any member of the
         Relevant Group is made; or

(e)      any other step (including petition, proposal or convening a meeting) is
         taken with a view to the rehabilitation, administration, custodianship,
         liquidation, winding-up or dissolution of any member of the Relevant
         Group or any other insolvency proceedings involving any member of the
         Relevant Group.

15.8     Appointment of receivers and managers

(a)      Any liquidator, trustee in bankruptcy, judicial custodian, compulsory
         manager, receiver, administrative receiver, administrator or the like
         is appointed in respect of any member of the Relevant Group or any part
         of its assets; or

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(b)      the directors of any member of the Relevant Group requests the
         appointment of a liquidator, trustee in bankruptcy, judicial custodian,
         compulsory manager, receiver, administrative receiver, administrator or
         the like; or

(c)      any other steps are taken to enforce any security interest or
         encumbrance over any part of the assets of any member of the Relevant
         Group.

15.9     Creditors' process / final judgement

(a)      Any attachment, sequestration, distress or execution affects:

         (i)      any Seller's Account or the Depositor's Account; or

         (ii)     any other material asset of a member of the Relevant Group and
                  is not discharged within 14 days;

(b)      a final, non appealable judgment or court order for the payment of
         (euro)5,000,000 or more (or the equivalent in other currencies) is made
         against any member of the Relevant Group and continues unsatisfied for
         a period of 45 days after the date for payment set forth in the
         judgment or order.

15.10    Analogous proceedings

         There occurs, in relation to a member of the Relevant Group, any event
         anywhere which, in the reasonable opinion of the Bank, appears to be
         analogous to any of those mentioned in Clauses 15.6 (Insolvency) to
         15.9 (Creditors' process) (inclusive).

15.11    The Parent

(a)      (i) A court having jurisdiction in respect of the Parent shall enter a
         decree or order for relief in respect of the Parent in an involuntary
         case under any applicable bankruptcy, insolvency or other similar law
         now or hereafter in effect, which decree or order is not stayed, (ii)
         any other similar relief shall be granted in respect of the Parent
         under any applicable federal or state or applicable foreign law, (iii)
         a petition for an involuntary case is filed against the Parent under
         any applicable bankruptcy, insolvency or other similar law now or
         hereafter in effect, (iv) a decree or order is made by a court having
         jurisdiction in respect of the Parent for the appointment of a
         receiver, liquidator, sequestrator, trustee, custodian or other officer
         having similar powers in respect of the Parent, or in respect of all or
         substantially all of its property, or (v) an interim receiver, trustee
         or other custodian is appointed in respect of the Parent for all or
         substantially all of the property of the Parent shall be appointed
         involuntarily, and any such events referred to in (ii) to (v) continue
         for 45 days unless dismissed, bonded or discharged.

(b)      (i) An order for relief is entered with respect to the Parent or the
         Parent commences a voluntary case under any applicable bankruptcy,
         insolvency or other similar law now or hereafter in effect, (ii) the
         Parent consents to (A) the entry of an order for relief in respect of
         the Parent in any involuntary case, or (B) the conversion of an
         involuntary case in respect of the Parent to a voluntary case, under
         any such law, or (C) the appointment of a receiver, liquidator,
         sequestrator, trustee or other custodian for all or substantially all
         of its property or the taking of possession by any such officer of all
         or substantially all of its property, (iii) the Parent makes any
         assignment for the benefit of its creditors, (iv) the Parent fails or
         is unable, or admits in writing that it is unable, generally to pay its
         debts as such debts become due, or

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         (v) the Board of Directors of the Parent adopts any resolution or
         otherwise takes action to approve any of the foregoing.

(c)      Any Financial Indebtedness of the Parent in excess of U.S.$25,000,000
         (or the equivalent in other currencies) in outstanding principal amount
         (i) is declared currently due and payable as a result of the occurrence
         and continuance of an event of default under or in respect of such
         Financial Indebtedness, or (ii) is not paid when due under the terms of
         the credit documentation relating to such Financial Indebtedness.

15.12    Unlawfulness and invalidity

(a)      It is or becomes unlawful for any Obligor to perform any of its
         material obligations under the Closing Documents (other than the
         Transfer Documents) or any of its obligations under the Transfer
         Documents, in each case to which it is party.

(b)      Any Closing Document (other than a Transfer Document) is not valid,
         enforceable or effective or is alleged by any Obligor to be invalid,
         unenforceable or ineffective for any reason or to any material extent
         or any Transfer Document is not valid, enforceable or effective or is
         alleged by any Obligor to be invalid, unenforceable or ineffective for
         any reason or to any extent.

15.13    Cessation of business

         Any Obligor or the Parent ceases, or states in writing its intention to
         cease, to carry on all or a substantial part of its business.

15.14    Transfer Documents

         Any Transfer Document does not operate so as to transfer to and vest in
         the Bank (without notice of the transfer being given to the relevant
         Debtor) full title and ownership to and of the receivables referred to
         therein together all Related Security and Related Rights relating
         thereto (including, without limitation, the right to receive any
         default interest for late payment) free and clear of any security
         interest, third party or other Adverse Claim whatsoever and, to the
         extent that such breach is capable of remedy, such breach is not
         remedied within a period of five Business Days following the date of
         the Transfer Document.

15.15    Program parameters

(a)      On any Assessment Date the three-month rolling average of the
         Delinquency Rate exceeds (i) from 1st August to 31st December in any
         year (both dates inclusive), 3 per cent., and (ii) at any other time, 5
         per cent., or the three month rolling average of the Default Rate
         exceeds 8.25 per cent., or the three month rolling average of the
         Dilution Rate exceeds (i) from 1st July to 31st December in any year
         (both dates inclusive) 4.5 per cent., and (ii) at any other time, 7 per
         cent.

(b)      On any Settlement Date which is not a Transfer Date, the amount of the
         Bank's Funding plus the amount of the Subordinated Deposit is greater
         than the Relevant Percentage multiplied by the Net Pool Balance.

(c)      On any Settlement Date which is not a Transfer Date the ratio expressed
         as a percentage between (i) the Subordinated Deposit and (ii) the sum
         of the Bank's Funding and the Subordinated Deposit is less than the
         Rate of Overcollateralisation.

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15.16    Material adverse change

         Any event or series of events occurs which, in the reasonable opinion
         of the Bank (acting in good faith), has or could reasonably be expected
         to have a Material Adverse Effect.

15.17    Termination

(a)      Subject to paragraph (c) below, following the occurrence of an Event of
         Early Amortisation (with regard to any Obligor) and whilst the same is
         continuing, the Bank may send a termination notice to the Obligors
         (through the Depositor) (the "Termination Notice").

(b)      On the date of the Termination Notice the Commitment of the Bank will
         be terminated (and the Bank may otherwise exercise all its rights under
         the Closing Documents or under applicable law). Following the giving of
         a Termination Notice, any Transfer Fee and principal amount in respect
         of any Tranche will be repaid respectively on the applicable Transfer
         Fee Payment Date and the Maturity Date of the Associated Refinancing
         related to such Tranche, in accordance with Clause 16.4 (Repayment of
         the Bank's Funding) and Clause 8 (Settlement and Payments) and provided
         that in the event that a Shortfall (as defined in Clause16.4) exists,
         the amount of such Shortfall shall only be refinanced by an Associated
         Refinancing based on the EURIBOR Plus Rate for one month EURIBOR or
         Interim EONIA Rate.

(c)      Where any event referred to in Clause 15.3 (Breach of other
         obligations), Clause 15.4 (Misrepresentation) or Clause 15.14 (Transfer
         Documents) also constitutes a Deemed Collection, such event shall not
         constitute an Event of Early Amortisation (provided that this paragraph
         shall cease to apply in relation to any Deemed Collection of the type
         referred to in this paragraph occurring during any Collection Period if
         the aggregate Euro Amount of all Deemed Collections of such type
         occurring in that Collection Period exceeds (Euro)3,000,000 (or the
         equivalent in other currencies)).

16.      THE BANK'S FUNDING

16.1     Funding Payments

         Subject to the provisions of this Agreement, the Bank agrees to make
         Payments funded:

         (a)   by the Deposits; and

         (b)   out of the Bank's own resources (provided that the amount of the
               Bank's Funding shall at no time exceed the then applicable
               Maximum Amount of the Bank's Funding).

16.2     Amount of the Bank's Funding on each Initial Transfer Date

         (a)   Subject to Clause 16.1, on each Initial Transfer Date, the amount
               of the Bank's Funding shall be equal to the lower of:

               (i)  the Relevant Percentage multiplied by the Net Pool Balance
                    taking into account Relevant Receivables to be transferred
                    to the Bank on that Transfer Date, less the amount of the
                    Subordinated Deposit calculated on such date; and

               (ii) the then applicable Maximum Amount of the Bank's Funding.

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(b)  Following the making of a Payment on an Initial Transfer Date, the then
     amount of the Bank's Funding shall constitute a new and separate Tranche.

16.3 Increase in the Bank's Funding

(a)  Subject to Clause 16.1, on each Transfer Date which is not an Initial
     Transfer Date, the Bank's Funding shall be increased (the "Increase") by an
     amount equal to:

     (i)    the Relevant Percentage multiplied by the Net Pool Balance,
            calculated taking into account the Relevant Receivables to be
            transferred on that Transfer Date, less the amount of the
            Subordinated Deposit calculated on such date; minus

     (ii)   the amount of the Bank's Funding outstanding on such date prior to
            any Payment being made.

(b)  Following the making of a Payment on that Transfer Date, the amount of the
     Increase shall constitute a new and separate Tranche.

16.4 Repayment of the Bank's Funding

(a)  The Bank's Funding and the Tranches shall be reduced at the Maturity Date
     of each Associated Refinancing, by a sum equal to the principal amount of
     the Associated Refinancing actually repaid out of the Bank's Share of
     Collections, in accordance with this Clause 16.4.

(b)  The amount of Collections allocated to the repayment of the Bank's Funding
     in accordance with Clauses 8.2(a)(i) and 8.3(a)(i) shall be allocated by
     the Bank to the Tranches. The amount allocated to each Tranche shall be the
     proportion of those Collections which the amount of the Tranche bears to
     the aggregate amount of all outstanding Tranches.

(c)  Each Associated Refinancing shall be repaid on its Maturity Date in an
     amount equal to the amount of Collections allocated under paragraph (b)
     above to the Tranche to which such Associated Refinancing relates and such
     repayment shall be made:

     (i)    first, out of the Amount Withheld by the Bank; and

     (ii)   second, out of the Amount Held by the Depositor,

     and where the amount applied under this paragraph to the repayment of an
     Associated Refinancing is less than that Associated Refinancing, the amount
     of the shortfall (the "Shortfall") shall constitute a new and separate
     Tranche and be refinanced on the relevant Maturity Date by one or more new
     Associated Refinancings.

(d)  To facilitate the repayment of principal on the Maturity Date of an
     Associated Refinancing:

     (i)    three Business Days before that Maturity Date, the Bank shall give a
            notice to the Depositor stating the principal amount due on such
            Maturity Date and the amount which shall be paid out of the Amount
            Withheld by the Bank in accordance with paragraph (c)(i) above;

     (ii)   two Business Days before that Maturity Date, the Depositor shall:

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                (A)    calculate the amount to be paid out of the Amount Held
                       by the Depositor in accordance with paragraph (c)(ii)
                       above; and

                (B)    issue to the Bank, before 3.00 p.m., a payment notice
                       specifying (1) the amount determined under (A) above,
                       and (2) the amount of the Shortfall, if any; and

         (iii)  the Depositor shall pay, on that Maturity Date, and before
                10.00 a.m., to the credit of the Bank's Account, the amount to
                be paid out of the Amount Held by the Depositor, as specified
                in the payment notice.

16.5     Division and consolidation of Tranches

(a)      Notwithstanding the other provisions of this Clause 16, the Bank may,
         at any time and without first obtaining the consent of the Obligors,
         but subject to paragraphs (b) and (c) below:

         (i)    divide a Tranche into two or more Tranches (each a "Divided
                Tranche"); or

         (ii)   consolidate two or more Tranches into one Tranche (each a
                "Consolidated Tranche"),

         and on the date of the division or consolidation each Divided Tranche
         or Consolidated Tranche shall constitute a new and separate Tranche.

(b)      The Bank may not divide Tranches unless each of the following
         conditions is fulfilled:

         (i)    the aggregate amount of the Divided Tranches is equal to the
                amount of the Tranche divided and such division of Tranches does
                not result in the total number of Tranches exceeding five;

         (ii)   each Associated Refinancing applicable to the divided Tranche
                applies to no more than one Divided Tranche, with the same
                amount, refinancing rate and Maturity Date, so that the Divided
                Tranches have the same refinancing terms as the Tranche; and

         (iii)  the Residual Amount of the Reserve for Transfer Fee of the
                Tranche is divided and applied first to the Divided Tranches
                refinanced by Associated Refinancings based on the BT Rate or CP
                Rate up to the amount of Transfer Fee which shall fall due on
                the Transfer Fee Payment Dates related to such Associated
                Refinancings, and thereafter pari passu to each Divided Tranche
                in an amount so that the ratios which (x) the Residual Amount of
                the Reserve for Transfer Fee for each Divided Tranche bears to
                (y) the Reserve for Transfer Fee, on the date of division, for
                such Divided Tranche, are the same for all the Divided Tranches.

(c)      The Bank may not consolidate Tranches unless each of the following
         conditions is fulfilled:

         (i)    the amount of the Consolidated Tranche is equal to the aggregate
                amount of the Tranches consolidated;

         (ii)   each Associated Refinancing applicable to each Tranche
                consolidated applies to the Consolidated Tranche, with the same
                amount, refinancing rate and Maturity Date, so that the
                Consolidated Tranche has the same refinancing terms as the
                Tranches; and

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          (iii)    the Residual Amount of the Reserve for Transfer Fee of the
                   Consolidated Tranche is equal to the sum of the Residual
                   Amount of the Reserve for Transfer Fee of each Tranche
                   consolidated.

(d)       By no later than three Business Days after any division or
          consolidation of Tranches, the Bank shall notify the Obligors of (i)
          the amount of the Tranche that has been divided and of each Divided
          Tranche or the amount of each Tranche that has been consolidated and
          of the Consolidated Tranche, (ii) the amount, refinancing rate and
          Maturity Date of each Associated Refinancing applicable to each
          Divided Tranche or the Consolidated Tranche (as appropriate) and (iii)
          the Residual Amount of the Reserve for Transfer Fee of each Tranche
          and of each Divided Tranche or Consolidated Tranche (as appropriate).

17.       CANCELLATION OF THE MAXIMUM AMOUNT OF THE BANK'S FUNDING

(a)       The Sellers may (in addition to their rights under Clause 14.12(b)
          (Rating Agencies) and Clause 22.1(e) (Increased costs)), by giving not
          less than 15 Business Day's prior notice to the Bank, reduce the
          Maximum Amount of the Bank's Funding in whole or in part (but if in
          part, in a minimum amount, and an integral multiple, of
          (Euro)10,000,000 and provided that the Maximum Amount of the Bank's
          Funding may not be reduced to below (Euro)20,000,000 (and if it is,
          the Commitment Termination Date shall be deemed to have occurred on
          the date the Maximum Amount of the Bank's Funding is so reduced)).

(b)       Any notice of reduction under paragraph (a) above shall be irrevocable
          and the reduction shall take effect on the date which is 15 days after
          the date of receipt by the Bank of such notice. No reduction in the
          Maximum Amount of the Bank's Funding shall be reinstated.

18.       DEPOSITS

          Pursuant to the terms of the Master Additional Deposit Agreement and
          the Master Subordinated Deposit Agreement, the Depositor shall make
          the Additional Deposit and the Subordinated Deposit with the Bank.

18.1      Subordinated Deposit

          On each Transfer Date, the amount of the Subordinated Deposit shall be
          equal to the amount of the Bank's Funding (taking into account any
          Payment to be made on that date) multiplied by the Rate of
          Overcollateralisation, divided by one less the Rate of
          Overcollateralisation.

18.2      Additional Deposit

(a)       On each Initial Transfer Date, the amount of the Additional Deposit
          shall be equal to the positive difference between:

          (i)      the nominal Euro Amount of Relevant Receivables to be
                   transferred to the Bank on such Initial Transfer Date; and

          (ii)     the amount of the Bank's Funding and Subordinated Deposit on
                   such date.

(b)       On each Transfer Date other than an Initial Transfer Date, the
          variation in the Additional Deposit shall be equal to the positive or,
          if any, negative difference between the two following amounts:

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         (i)     the difference between (A) the nominal Euro Amount of Relevant
                 Receivables to be transferred to the Bank on that date, and (B)
                 the Euro Amount of Collections related to the latest Collection
                 Period; and

         (ii)    the sum of the Variation in the Bank's Funding and the
                 Variation in the Subordinated Deposit.

18.3     Pledge of Deposits

         The Additional Deposit and the Subordinated Deposit shall be pledged
         (eerste recht van pand) and applied as cash collateral by the Depositor
         in favour of the Bank in accordance with the terms of this Agreement,
         the Master Subordinated Deposit Agreement and the Master Additional
         Deposit Agreement and the law of the Netherlands, to secure the payment
         to the Bank of any sum due under the Closing Documents in respect of
         the Transferred Receivables and in respect of Collections.

18.4     Repayment of Deposits

         The repayment of the Additional Deposit and the Subordinated Deposit
         shall occur in the circumstances set forth in Clause 8 (Settlements and
         Payments) and in accordance with the terms of the Master Additional
         Deposit Agreement and of the Master Subordinated Deposit Agreement.

19.      TRANSFER FEE

19.1     Transfer fee

(a)      In relation to each Tranche the Sellers shall pay to the Bank a
         Transfer Fee (determined in accordance with Clause 19.5(c)), which
         shall be the aggregate of:

         (i)      the Margin applied to the amount of such Tranche; and

         (ii)     the Refinancing Rate applicable to the Associated Refinancings
                  or the rate determined in accordance with Clause 19.5 in the
                  case of several Associated Refinancings applying in relation
                  to a Tranche.

(b)      In no case shall any Tranche bear Transfer Fee after the Agreement
         Expiry Date.

19.2     Associated Refinancings

(a)      At any time each Tranche may be refinanced by one or more simultaneous
         or successive Associated Refinancings until the earlier of (i) the date
         on which such Tranche is fully repaid and (ii) the Agreement Expiry
         Date. In no case shall the Maturity Date of an Associated Refinancing
         extend beyond the Agreement Expiry Date.

(b)      The aggregate amount of the Associated Refinancings relating to a
         Tranche shall be equal to the amount of that Tranche (as that amount
         may be increased from time to time by the amount of accrued Transfer
         Fee in accordance with Clause 19.6 (Payment of Transfer Fee).

(c)      The Bank may elect to refinance a Tranche by more than one Associated
         Refinancing if the conditions prevailing in the interbank market or the
         conditions applicable to the provision of the BT Rate or the CP Rate
         are such that the Bank would be prevented from offering the Sellers a
         single Associated Refinancing in relation to that Tranche. The Transfer
         Fee

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         applicable to such Tranche shall be based on the weighted average of
         the Refinancing Rate applicable to each Associated Refinancing, plus
         the Margin.

19.3     Refinancing Rates

(a)      The Refinancing Rate for an Associated Refinancing shall be equal to
         one of the following rates:

         (i)      the rate offered by Antalis to the Bank and declared by
                  Antalis to be the same as it has accepted itself, whilst
                  issuing on billets de tresorerie, one Business Day (the "BT
                  Rate"), or euro-commercial paper, two Business Days (the "CP
                  Rate"), before the Effective Date of the relevant Associated
                  Refinancing, for a period of between 10 and 125 days, and for
                  a minimum of (Euro)1,000,000 provided that such rate shall
                  never exceed the Relevant EURIBOR Plus Rate;

         (ii)     the Interim EONIA Rate; or

         (iii)    the Relevant EURIBOR Plus Rate,

         as determined in accordance with Clause 19.4 (Determination of
         applicable Refinancing Rate).

(b)      If a billet de tresorerie or an euro-commercial paper is issued in a
         currency other than Euro, the BT Rate or the CP Rate offered to the
         Bank shall include the cost of the currency hedge agreement that shall
         be entered into by Antalis to convert the proceeds of such issuance
         into Euro.

(c)      In relation to the BT Rate and the CP Rate:

         (i)      each Obligor acknowledges that the nature of the billets de
                  tresorerie or the euro-commercial paper market is such that it
                  does not allow the Bank to guarantee to the Obligors that:

                  (A)      there will always be sufficient funds available on
                           such a market;

                  (B)      Antalis will always be able to obtain such funds even
                           when other issuers have managed to do so; and

                  (C)      such funds will be effectively received by Antalis in
                           case of euro-commercial paper;

         (ii)     the Bank confirms to the Obligors that Antalis will issue an
                  undertaking for the benefit of the Bank to the effect that
                  Antalis will use its best endeavours to obtain funds on the
                  market, on the best terms available to it, until the Agreement
                  Expiry Date. To the best of the information available to the
                  Bank at the date of this Agreement, the Bank is not aware of
                  any reason to believe that Antalis will not be capable of
                  fulfilling such undertaking and in the event the Bank becomes
                  aware of any such reason, it shall promptly notify the
                  Obligors.

19.4     Determination of applicable Refinancing Rate

(a)      If, before 12.00 on the Effective Date of the Associated Refinancing,
         the Bank has received from Antalis a BT Rate or a CP Rate which is less
         than or equal to the arithmetic average of

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         the Relevant EURIBOR Plus Rate offered one Business Day before that
         Effective Date, the Bank shall offer to the Sellers that BT Rate or CP
         Rate by sending a notice to the Obligors by no later than 12.00 noon on
         that Effective Date setting out the following:

         (i)      the BT Rate or CP Rate received from Antalis;

         (ii)     the period during which such BT Rate or CP Rate applies, which
                  shall be between 10 and 125 days; and

         (iii)    the Tranche or the Portion of Tranche refinanced at such BT
                  Rate or CP Rate which shall be for a minimum of
                  (Euro)1,000,000.

(b)      Following a notice under paragraph (a) above, the applicable
         Refinancing Rate shall be the BT Rate or CP Rate unless:

         (i)      the Depositor notifies the Bank by no later than 1.00 p.m. on
                  the Effective Date that it does not accept the BT Rate or CP
                  rate; or

         (ii)     the BT Rate or CP Rate is higher than the Relevant EURIBOR
                  Plus Rate,

         in which case the Refinancing Rate for the Associated Refinancing for
         the relevant Tranche or the Portion of Tranche for the period referred
         to in paragraph (a)(ii) above shall be the Relevant EURIBOR Plus Rate.

(c)      If Antalis has not offered the Bank a BT Rate or a CP Rate under
         paragraph (a) above by 12.00 noon on the Effective Date of the
         Associated Refinancing, then the Refinancing Rate for that Associated
         Refinancing shall either be the Interim EONIA Rate or the EURIBOR Plus
         Rate for one month EURIBOR, as determined in accordance with paragraph
         (d) or (e) below.

(d)      (i)      The Interim EONIA Rate shall apply to an Associated
                  Refinancing if:

                  (A)   by 11.00 a.m. two Business Days before the Effective
                        Date for that Associated Refinancing the Bank has not
                        received any notification from Antalis that Antalis will
                        not be able to offer to the Bank a BT Rate, a CP Rate or
                        a EURIBOR Plus Rate;

                  (B)   the Sellers have, on their own initiative, requested the
                        reorganisation of the payment schedule for the
                        Associated Refinancings based on the BT Rate or a CP
                        Rate; or

                  (C)   the conditions prevailing in Paris for the issue and
                        placement of billets de tresorerie, and the conditions
                        prevailing on the euro-commercial paper market for the
                        issue and placement of euro-commercial paper, are
                        temporarily disrupted.

         (ii)     At no time shall an Associated Refinancing be based on the
                  Interim EONIA Rate for more than five consecutive Business
                  Days.

(e)      The EURIBOR Plus Rate for one month EURIBOR shall apply to an
         Associated Refinancing in any other case or where the Interim EONIA
         Rate has applied to an Associated Refinancing for five consecutive
         Business Days and the Bank has not at the end of that period obtained
         from Antalis a BT Rate or a CP Rate.

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(f)      If either the Interim EONIA Rate or EURIBOR Plus Rate for one month
         EURIBOR applies the Bank shall send a notice to the Obligors by no
         later than 12.00 noon on the Business Day before the Effective Date of
         the relevant Associated Refinancing setting out the following:

         (i)      the Tranche or the Portion of Tranche to be refinanced at the
                  Interim EONIA Rate or the EURIBOR Plus Rate for one month
                  EURIBOR (as appropriate); and

         (ii)     the reason why the Tranche or the Portion of Tranche is to be
                  refinanced at the Interim EONIA Rate or the EURIBOR Plus Rate
                  for one month EURIBOR (as appropriate).

(g)      If, at any time, EURIBOR or EONIA cannot be determined, then the Bank
         shall request each of the Reference Banks to quote an interest rate for
         an amount and period equivalent to those of the relevant Associated
         Refinancing. The Bank shall substitute the arithmetic average of the
         rates so obtained for EURIBOR or for EONIA (as applicable). In the
         event that any of the Reference Banks does not quote such a refinancing
         rate, then (i) the Bank's Funding shall remain available and (ii) the
         Refinancing Rate for such Associated Refinancing shall be equal to the
         refinancing costs, per annum, of the Bank at that time, as duly
         documented and evidenced.

19.5     Transfer Fee Period and amounts

(a)      Each Transfer Fee Period with respect to a Tranche shall extend from
         (and including) a Settlement Date to (but excluding) the next
         Settlement Date or from (and including) the Transfer Date when such
         Tranche was initially created to (but excluding) the next Settlement
         Date.

(b)      During any Transfer Fee Period, a Tranche shall bear a Transfer Fee at
         a rate equal to the aggregate of (i) the weighted average of the
         Refinancing Rates of the Associated Refinancings associated to such
         Tranche during such Transfer Fee Period and (ii) the Margin (the
         "Transfer Fee Rate").

(c)      The Transfer Fee amount in relation to any Transfer Fee Period shall be
         equal to:

         (i)      the amount of the Tranche on the first day of the Transfer Fee
                  Period minus the amount of any Collection allocated to the
                  repayment of such Tranche in accordance with Clauses
                  8.2(a)(i), 8.3(a)(i) and 16.4 (Repayment of the Bank's
                  Funding);

         (ii)     multiplied by the Transfer Fee Rate for such Transfer Fee
                  Period;

         (iii)    multiplied by the number of days of such Transfer Fee Period;
                  and

         (iv)     divided by 360.

19.6     Payment of Transfer Fee

(a)      Without prejudice to Clause 3 (Nature of Obligations), each Seller
         shall pay to the Bank on each Transfer Fee Payment Date, out of its own
         resources, its Pro Rata Share of the Transfer Fee for the Transfer Fee
         Period ending on that Transfer Fee Payment Date.

(b)      To facilitate payment of Transfer Fee on any Transfer Fee Payment Date:

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         (i)      three Business Days before such Transfer Fee Payment Date, the
                  Bank shall give a notice to the Obligors stating the Transfer
                  Fee amount due on such Transfer Fee Payment Date from each
                  Seller and the Residual Amount of the Reserve for Transfer
                  Fee;

         (ii)     two Business Days before such Transfer Fee Payment Date, each
                  Seller shall issue to the Bank, before 3.00 p.m., a payment
                  notice confirming the Transfer Fee amount due from it and
                  which will be paid on such Transfer Fee Payment Date; and

         (iii)    each Seller shall pay, on such Transfer Fee Payment Date, and
                  before 10.00 a.m., to the credit of the Bank's Account the
                  Transfer Fee amount due from it on such Transfer Fee Payment
                  Date.

(c)      Should any Seller fail to pay all or part of the Transfer Fee due on a
         Tranche on any Transfer Fee Payment Date, the Bank shall be entitled to
         apply the Collections standing to the credit of the Bank's Account and
         corresponding to the Sellers' Share of Collections against the unpaid
         Transfer Fee, up to the amount of the Residual Amount of the Reserve
         for Transfer Fee for such Tranche.

(d)      Any Transfer Fee amount due and remaining unpaid on any Transfer Fee
         Payment Date (the "Shortfall") shall be capitalised on such Transfer
         Fee Payment Date. The amount of the Shortfall shall constitute a new
         and separate Tranche and shall be refinanced by one or more new
         Associated Refinancing(s) which shall bear Transfer Fee at the rate
         applicable to Tranches plus 2 per cent. per annum (and for the
         avoidance of doubt shall be payable on the Transfer Fee Payment Date
         relating to such new Associated Refinancings).

19.7     Taux Effectif Global

(a)      In order to fulfil the obligations imposed by Articles L 313-1 to L
         313-6 of the French Consumer Code (Code de la Consommation), the Bank
         represents to Mattel France S.A., who accepts such representation, that
         the effective global rate (taux effectif global) calculated in
         accordance with the Clauses referred to above, on the basis of a 365
         days year, is 4.0343 per cent. per annum.

(b)      The effective global rate referred to in this Clause 19.7 was
         calculated on the basis of utilisation of the Bank's Funding by Mattel
         France S.A. in the amount of (euro)100,000,000 for five years and
         EURIBOR for one month at 29th November, 2001 of 3.4490 per cent. Such
         rate is given on an indicative basis and shall not be binding on the
         Bank in the future.

20.      COMMITMENT FEE

         Until the Commitment Termination Date, the Sellers shall pay to the
         Bank, a Commitment Fee at the rate of zero point three five per cent.
         (0.35%) per annum, applied to the then applicable Maximum Amount of the
         Bank's Funding. The Commitment Fee shall be calculated on each
         Assessment Date, on the number of days elapsed during the Collection
         Period ending on that Assessment Date and on the basis of a year of 360
         days. Without prejudice to Clause 3 (Nature of Obligations), each
         Seller shall pay to the Bank on each Settlement Date, out of its own
         resources, its Pro Rata Share of the Commitment Fee for the Collection
         Period ending on the Assessment Date immediately preceding that
         Settlement Date.

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21.      TAXES

21.1     Gross up

(a)      All payments to be made by any Obligor to the Bank under the Closing
         Documents shall be made without any deduction and free and clear of,
         and without deduction for or on account of Tax, unless an Obligor is
         required by applicable law to make such a payment subject to deduction
         or withholding of Tax. If any Tax, other than Excluded Tax, or amounts
         in respect of Tax must be deducted, or any other deductions must be
         made, from any amounts payable or paid by an Obligor under the Closing
         Documents, that Obligor shall pay such additional amounts as may be
         necessary to ensure that the Bank receives a net amount equal to the
         full amount which it would have received had payment not been made
         subject to such Tax or any other deduction.

(b)      If the payment of additional amounts under paragraph (a) above is
         contrary to any applicable law, the Bank and the Obligors shall
         negotiate in good faith for a period of 30 days from the date on which
         the such additional amounts fell due (the "Relevant Date") with a view
         to agreeing a compromise acceptable to all the Parties. From the
         Relevant Date until an agreement is reached, the Refinancing Rate for
         any new Associated Refinancing shall be based only on the Interim EONIA
         Rate or the EURIBOR Plus Rate for one month EURIBOR.

(c)      If no agreement is reached under paragraph (b) above, the Commitment
         shall be terminated on the date which is thirty days after the Relevant
         Date. Any Transfer Fee and principal amount in respect of any Tranche
         will be repaid respectively on the applicable Transfer Fee Payment Date
         and the Maturity Date of the Associated Refinancing related to such
         Tranche, in accordance with Clauses 8 (Settlement and Payments) and
         16.4 (Repayment of the Bank's Funding), provided that in the event that
         a Shortfall (as defined in Clause 16.4(c)) exists, the amount of such
         Shortfall shall only be refinanced by an Associated Refinancing based
         on the EURIBOR Plus Rate for one month EURIBOR or Interim EONIA Rate.

(d)      In the event that any Obligor is required by applicable law to make any
         deduction or withholding from any payment under the Closing Documents
         in respect of Tax, other than Excluded Tax, then the Bank shall
         (without in any way limiting or reducing or otherwise qualifying that
         Obligor's obligations under paragraph (a) above) provide to that
         Obligor such documentation within the Bank's custody or control or
         which the Bank can in its opinion (acting reasonably) cause to be in
         its custody or control which is requested by the Obligor (acting
         reasonably) in order to enable it to make payments under the Closing
         Documents without (or with a reduced amount of) such deduction and free
         and clear of such Tax under the terms of any relevant double taxation
         treaty or other applicable tax credit provision unless to do so might
         (in the Bank's sole discretion, acting in good faith) prejudice the
         Bank and provided that nothing in this paragraph (d) shall interfere
         with the right of the Bank to arrange its affairs (Tax or otherwise) in
         whatever manner it thinks fit, oblige the Bank to investigate or claim
         any credit, relief, remission or repayment available to it in respect
         of Tax or oblige the Bank to disclose any information relating to its
         affairs (Tax or otherwise) or any computation in respect of any Tax
         where such information is, in the Bank's opinion confidential to the
         Bank or commercially sensitive.

(e)      Without prejudice to paragraph (d) above, if the Bank determines in its
         sole discretion that it has obtained a credit, relief, remission or
         repayment in respect of any Tax, other than Excluded Tax, that has
         given rise to an additional amount payable under paragraph (a) above,
         then to the extent that it can, without losing the benefit of such
         credit, relief, remission or repayment, promptly repay the relevant
         Obligor such part of that additional amount as the Bank considers in
         its sole discretion will leave it (after such reimbursement) in the
         same net

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         after tax position that it would have been in had no such Tax been
         required to be withheld. The Bank shall not be obliged to disclose to
         any Obligor, nor shall any Obligor be entitled to inspect, any of the
         books or records of the Bank nor shall anything contained in this
         paragraph (e) interfere with the right of the Bank to arrange its
         affairs (Tax or otherwise) in whatever manner it thinks fit, and in
         particular the Bank shall not be under any obligation to claim credit,
         relief or remission from or against its profits or similar tax
         liability in respect of the amount of such deduction as aforesaid in
         priority to any other claims, reliefs or deductions available to it.

(f)      If any Obligor is required to indemnify the Bank pursuant to Clause
         21.2 (Sales taxes and duties) or (to the extent the indemnity relates
         to Tax) Clause 22 (Increased costs) or Clause 23.2 (Other indemnities)
         and the Bank determines (in its sole discretion, acting in good faith)
         that the Tax in respect of which the indemnity payment is to be made
         would reduce an amount of Excluded Tax payable by the Bank, the Bank
         shall notify that Obligor thereof and the indemnity payment shall be
         reduced by the amount so notified, provided that nothing in this
         paragraph (f) shall interfere with the right of the Bank to arrange its
         affairs (Tax or otherwise) in whatever manner it thinks fit, oblige the
         Bank to disclose to any Obligor, nor shall any Obligor be entitled to
         inspect, any of the books or records of the Bank or oblige the Bank to
         disclose any information relating to its affairs (Tax or otherwise) or
         any computation in respect of any Tax where such information is, in the
         Bank's opinion confidential to the Bank or commercially sensitive and
         in particular the Bank shall not be under any obligation to claim
         credit, relief or remission from or against its profits or similar tax
         liability in respect of the amount of any Tax in respect of which an
         indemnity payment is to be made pursuant to Clause 21.2 (Sales taxes
         and duties) in priority to any other claims, reliefs or deductions
         available to it.

21.2     Sales taxes and duties

(a)      The Obligors will pay on demand by the Bank any sales, excise,
         registration and other Taxes, duties and fees payable in connection
         with the execution, delivery, filing or recording of the Closing
         Documents, any Transfer Document or other documents to be delivered in
         connection with the Closing Documents or in connection with any
         transaction contemplated by this Agreement (excluding Excluded Tax).
         The Obligors will indemnify the Bank on demand against liabilities with
         respect to or resulting from any delay in paying or omission to pay
         such taxes, duties or fees.

(b)      The Obligors will, within three Business Days of demand by the Bank,
         indemnify the Bank against all liability which the Bank incurs for
         German trade or sales tax by reason of the Bank entering into the
         Closing Documents and performing the transactions contemplated thereby.

22.      INCREASED COSTS

22.1     Increased Costs

(a)      Subject to paragraph (d) below and Clause 22.2 (Exceptions), the
         Obligors shall forthwith on demand by the Bank pay to the Bank the
         amount of any increased cost incurred by it or any of its Affiliates as
         a result of:

         (i)      the introduction of, or any change in, or any change in the
                  interpretation or application of, any law or regulation
                  applicable generally to banks or financial institutions; or

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         (ii)     compliance by the Bank or any person which has agreed to make
                  funds available to the Bank in connection with the Closing
                  Documents with any regulation made after the date of this
                  Agreement,

         (including any law or regulation relating to taxation, change in
         currency of a country or reserve asset, special deposit, cash ratio,
         liquidity or capital adequacy requirements or any other form of banking
         or monetary control).

(b)      In this Agreement "increased cost" means:

         (i)      an additional cost incurred by the Bank or any of its
                  Affiliates as a result of it having entered into, or
                  performing, maintaining or funding its obligations under, any
                  Closing Document;

         (ii)     an additional cost to the Bank in making, funding or
                  maintaining any Payment and/or assuming, maintaining or
                  funding the Commitment or otherwise giving effect to this
                  Agreement;

         (iii)    a reduction in any amount payable to the Bank or any of its
                  Affiliates or in the effective return to the Bank or any of
                  its Affiliates under this Agreement or (to the extent that it
                  is attributable to this Agreement) on its capital;

         (iv)     the amount of any payment made by the Bank or any of its
                  Affiliates, or the amount of any interest or other return
                  foregone by the Bank or any of its Affiliates, calculated by
                  reference to any amount received or receivable by the Bank or
                  any of its Affiliates from any other Party under this
                  Agreement; or

         (v)      the Bank becomes liable to make any payment on account of tax
                  (except on account of tax imposed on its general income) or is
                  obliged to forego any interest or other return, on or
                  calculated by reference to the amount of this Agreement or any
                  Payment or all or part of the Bank's Funding.

(c)      If the Bank wishes to make a claim under this Clause 22.1 it shall
         provide to the Obligors written details of the circumstances by reason
         of which it is entitled to do so and calculations evidencing in
         reasonable detail the increased cost claimed.

(d)      Without prejudice to Clause 3(b) (Nature of Obligations), each Seller
         shall liable for 50% of the amount of any increased cost due to the
         Bank unless the occurrence of such increased cost is referable to one
         Seller only, in which case that Seller shall be liable in full for that
         increased cost and the other Seller shall have no liability in relation
         thereto.

(e)      In the event of an increased cost arising, the Obligors may (without
         premium or penalty and without obligation to indemnify the Bank for any
         costs or losses arising on such cancellation other than in respect of
         breakage costs under Clause 23.1 (Breakage costs), if any, but without
         prejudice to the relevant Seller's obligation to pay any increased cost
         already incurred by the Bank and the Obligors continuing obligations
         under the Closing Documents with respect to Transferred Receivables)
         cancel the Maximum Amount of the Bank's Funding forthwith by notice to
         the Bank (and such cancellation shall take effect on the first
         Information Date after such notice is given). Any notice of
         cancellation under this Clause 22.1 shall be irrevocable and no amount
         of the Maximum Amount of the Bank's Funding cancelled under this Clause
         22.1 shall be reinstated.

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22.2     Exceptions

         Clause 22.1 (Increased costs) does not apply to any increased cost:

         (a)      compensated for by the operation of Clause 14.9 (Taxes) or
                  Clause 21 (Taxes); or

         (b)      attributable to any Excluded Tax; or

         (c)      attributable to any change in the rate of, or change in the
                  basis of calculating, Tax on the overall net income of the
                  Bank (or the overall net income of a division or branch of the
                  Bank) imposed in the jurisdiction in which its principal
                  office is for the time being situated.

23.      INDEMNITIES

23.1     Breakage costs

         Without prejudice to Clause 3(b) (Nature of Obligations), each Seller
         shall indemnify the Bank within five Business Days of demand by the
         Bank against any loss suffered or expense incurred by the Bank as a
         result of:

         (a)      that Seller not transferring Relevant Receivables following a
                  Transfer Request. In this case, the indemnity amount shall be
                  equal to the positive difference between (a) the Transfer Fee
                  the Seller concerned would have paid under the transfer of
                  Relevant Receivables (excluding any amount of the Margin which
                  is retained for the Bank's own account and not passed or paid
                  on to those persons providing funding, or financial support to
                  the Bank in connection with the Closing Documents) and (b) the
                  return generated by the reinvestment of the monies raised by
                  the Bank under the Bank's Funding at EONIA minus 0.125 per
                  cent. for a period equal to the duration of the Associated
                  Refinancing made in relation to the Relevant Receivables
                  referred to in that Transfer Request; and

         (b)      a partial or total principal payment being made by that Seller
                  or by the Depositor in respect of any Tranche before the
                  Maturity Date of any Associated Refinancing. In this case, the
                  indemnity amount shall be equal to the positive difference
                  between (a) the Transfer Fee the Seller concerned would have
                  paid under the Tranche up to that Maturity Date (excluding any
                  amount of the Margin which is retained for the Bank's own
                  account and not passed or paid on to those persons providing
                  funding or financial support to the Bank in connection with
                  the Closing Documents) and (b) the return generated by the
                  reinvestment of the monies raised by the Bank under the Bank's
                  Funding at EONIA minus 0.125 per cent. for the period
                  beginning on the second Business Day after the payment is
                  received by the Bank and ending on that Maturity Date.

23.2     Other indemnities

(a)      Subject to paragraph (c) below, the Obligors shall indemnify the Bank
         within five Business Days of demand by the Bank against any loss,
         liability, damages, claims and related reasonable costs and expenses,
         including reasonable legal fees and disbursements (and, in each case,
         any value added tax thereon) that the Bank incurs (and which are not
         effectively compensated (i) by the payment of a Deemed Collection or
         (ii) by another Clause of this Agreement) as a consequence of:

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         (i)      the occurrence of any Event of Early Amortisation or any
                  payment by an Obligor under the Closing Documents or in
                  respect of any Transferred Receivable being made in a currency
                  other than Euro;

         (ii)     the performance of the transactions contemplated by the
                  Closing Documents and the ownership of the Transferred
                  Receivables;

         (iii)    the failure of a Transferred Receivable and Related Security
                  to vest and remain in the Bank's ownership, free and clear of
                  any Adverse Claim and/or (b) the endorsement or delivery of
                  any negotiable instrument relating to Relevant Receivables to
                  or in favour of any person other than the Bank;

         (iv)     any dispute, claim, set-off, counterclaim, deduction or
                  withholding of any nature whatsoever or defence raised by a
                  Debtor in relation to the payment of any amount due under any
                  receivable which is or purports to be a Transferred Receivable
                  (including, without limitation, a defence based on a
                  Transferred Receivable or the related Sales Contract not being
                  a legal, valid, binding enforceable obligation of the Debtor)
                  or any other claim resulting from the sale of the goods or
                  services related to such Transferred Receivable or the
                  delivery or failure to deliver such goods and services;

         (v)      any products liability or environmental claim, or personal
                  injury or property damage claim, or other similar or related
                  claim or action of any sort whatsoever arising out of or in
                  connection with goods, merchandise or services which are the
                  subject of any Transferred Receivable or Sales Contract;

         (vi)     the transfer of an ownership interest in any receivable which
                  is not a Relevant Receivable.

(b)      The amount of any indemnity under this Clause 23.2 shall be determined
         by the Bank which shall notify the Obligors by delivering to the
         Depositor a certificate specifying such indemnity amount (and setting
         out calculations, in reasonable detail, evidencing such amount). The
         indemnity amount shall be paid by the Obligors out of their own
         respective resources, on the Settlement Date following the receipt of
         such certificate by the Depositor.

(c)      Without prejudice to Clause 3(a) (Nature of Obligations):

         (i)      each Seller shall be liable for 50% of the amount of any
                  amount due to the Bank under this Clause 23.2, unless the
                  occurrence giving rise to the Bank's claim is referable to one
                  Seller only, in which case that Seller shall be liable in full
                  for that amount and the other Seller shall have no liability
                  in relation thereto; and

         (ii)     no Obligor shall be liable for any amount which would
                  otherwise be due to the Bank under this Clause 23.2 to the
                  extent that the occurrence giving rise to the Bank's claim has
                  resulted from the negligence, act or omission or wilful
                  default of the Bank.

23.3     Exceptions

         Clause 23.2 (Other indemnities) does not apply to any loss, liability,
         damage, claim or related cost and expense to the extent that it:

         (a)      is effectively compensated for by the operation of Clause 14.9
                  (Taxes), Clause 21 (Taxes) or Clause 22 (Increased costs; or

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         (b)  results from any Excluded Tax; or

         (c)  results from any change in the rate of, or voluntary change in the
              basis of calculating, Tax on the overall net income of the Bank
              (or the overall net income of a division or branch of the Bank)
              imposed in the jurisdiction in which its principal office is for
              the time being situated.

24.      INTEREST ON LATE PAYMENTS

         Any default by an Obligor in its payment obligations under this
         Agreement shall automatically entitle the Bank without prior notice, to
         receive interest on the amounts payable and unpaid, calculated from the
         date when such payment was due until the date of actual payment, at
         EONIA plus 2 per cent. per annum. Such interest shall be paid by the
         Obligor out of its own resources, on the Settlement Date following the
         date of actual payment.

25.      FEES AND EXPENSES

(a)      The Depositor shall, out of its own resources, pay to the Bank the Up
         Front Fee as defined in the mandate letter signed between the Depositor
         and the Bank in relation to this Agreement dated 22nd June, 2001 on the
         date referred to therein.

(b)      The Depositor shall reimburse the Bank, out of its own respective
         resources, for all reasonable and duly documented costs and expenses
         (including legal fees and value added tax thereon) (i) arising out of
         any modification, waiver or amendment of any Closing Document requested
         by an Obligor, or (ii) incurred in connection with the preservation
         and/or enforcement of the rights of the Bank under any Closing
         Document.

26.      PAYMENTS

(a)      The Seller's Accounts, the Depositor's Account and the Bank's Account
         shall be used exclusively for the purpose of the payment of any sum due
         under this Agreement. Such accounts will be used exclusively for the
         purpose of the Closing Documents or any agreement relating thereto.

(b)      At any time, the Bank shall be entitled to set-off any amount due and
         payable by the Bank to any Obligor under any Closing Document against
         any amount due and payable by any Obligor to the Bank under any Closing
         Document.

(c)      All payments from any Obligor shall be made without set-off or
         counterclaim.

(d)      The Transfer Fee, Commitment Fee and any other amounts, as are payable
         in accordance with this Agreement, shall be calculated on the exact
         number of days elapsed during the period where such Transfer Fee,
         Commitment Fee and other amounts have accrued and on the basis of a
         year of 360 days.

(e)      All payments falling due on a day which is not a Business Day shall
         instead fall due on the following Business Day.

(f)      All payments to be made under the Closing Documents shall be made in
         Euro (provided that amounts payable in respect of costs, expenses and
         taxes and the like are payable in the currency in which they are
         incurred).

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27.      SUBSTITUTION AND AGENCY

         In addition to the matters set out in Clause 14.19 (Mergers and
         disposals), each Party shall have the right to be assisted by, to
         appoint or to substitute for itself one or more third parties in the
         performance of certain tasks provided that:

         (a)   such Party has given written notice of the exercise of that right
               to the other Parties and the Rating Agencies (other than in the
               case of an appointment by a Seller of a bailiff or other similar
               collection agent for the recovery of payment in respect of a
               Transferred Receivable falling with that Seller's Collection
               Mandate);

         (b)   such Party remains liable to the other Parties for the proper
               performance of those tasks and the relevant third party has
               expressly renounced any right to any contractual claim against
               the other Party; and

         (c)   the relevant third party undertake to comply with all obligations
               binding upon such Party under this Agreement.

28.      CONFIDENTIALITY

(a)      Each Party agrees to keep the Closing Documents and all information of
         any kind transmitted by any other Party (whether directly or through an
         Affiliate) as confidential. The Parties agree not to disclose such
         information to any other person and to ensure that their respective
         personnel similarly respect the confidential nature of such information
         provided that a Party may make any such disclosure:

         (i)   to its auditors, accountants, legal counsel and tax advisers and
               to any other professional advisers (together "Advisers") under a
               professional or duty of confidentiality to it in respect of the
               relevant information;

         (ii)  to any other third party where the Parties have previously agreed
               in writing that disclosure may be made to that third party;

         (iii) (in the case of the Bank) to any banking or other regulatory or
               examining authorities (whether governmental or otherwise) or
               fiscal administration authorities, in each case where such
               disclosure is requested by them and with whose requests the Bank
               has to comply under applicable law or regulation (or with whose
               requests banks in the relevant jurisdiction are accustomed to
               complying);

         (iv)  pursuant to subpoena or other legal process, or in connection
               with any action, suit or proceeding relating to any of the
               Closing Documents, Transferred Receivables or Sales Contracts,
               notice of which is given to the other Parties;

         (v)   pursuant to any law or regulation whether or not having the force
               of law, but, if not having the force of law, is a regulation in
               accordance with which a party is accustomed to act;

         (vi)  (in the case of the Bank) in connection with the preservation of
               any rights under or with respect to any of the Closing Documents,
               Transferred Receivables or Sales Contracts;

         (vii) in the case of the Bank, to Societe Generale, Antalis or any
               other person which has agreed to make funds available to the Bank
               in connection with this Agreement if, in

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                  each case, such disclosure is necessary for the purposes of
                  the Bank performing its obligations under the Closing
                  Documents, any Associated Refinancing or for such funds to be
                  made available to the Bank by that person provided that any
                  such person undertakes to keep such information confidential
                  on terms no less stringent than those set out in this Clause
                  28;

         (viii)   in the case of an Obligor, to any fiscal administration
                  authorities where such disclosure is requested by them and
                  with whose requests the Obligor has to comply under applicable
                  law or regulation (or with whose requests companies in the
                  relevant jurisdiction are accustomed to complying); or

         (ix)     to a Rating Agency.

(b)      This Clause 28 shall not apply in relation to information:

         (i)      which was lawfully known by a Party without any breach of any
                  obligation of confidentiality of any person and where, at the
                  time it become so known, such Party was not under any
                  obligation of confidentiality in relation thereto; or

         (ii)     which is or becomes publicly available without any breach of
                  any obligation of confidentiality.

(c)      The obligation to preserve confidentiality set out in this Clause 28
         shall remain valid for ten years from the Agreement Expiry Date.

29.      Transferability

         Subject to the provisions of Clause 27 (Substitution and Agency), and
         except as provided in Clause 14.19 (Mergers and disposals), none of the
         Parties may transfer any of its respective rights, interests and/or
         obligations hereunder to any third party whatsoever, without the prior
         written consent of the other Parties.

30.      NOTICES

30.1     Giving of notices

(a)      All notices or other communications under or in connection with the
         Closing Documents shall be given in writing and, unless otherwise
         stated, may be made by letter or facsimile. Any such notice will be
         deemed to be given as follows:

         (i)      if by letter, when delivered personally or on actual receipt;
                  and

         (ii)     if by facsimile, when received in legible form.

         However, a notice given in accordance with the above but received on a
         non-working day or after business hours in the place of receipt will
         only be deemed to be given on the next working day in that place. All
         Parties may rely on any notice or document believed by it to be genuine
         and correct and to have been signed by, or with the authority of, the
         proper person.

(b)      Each Seller irrevocably authorises the Depositor to receive and make
         all notices and communications from the Bank to the Seller or the
         Seller to the Bank under the Closing Documents on its behalf and agrees
         that any such notice or communication received by the Depositor or
         received by the Bank from the Depositor shall be binding upon, and
         shall be

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         effective as if it had been delivered by the Bank directly to the
         Seller or by the Seller directly to the Bank.

30.2     Addresses for notices

(a)      The address and facsimile number of the Bank are:

         Societe Generale Bank Nederland N.V.
         Amstelplein 1
         1096 HA Amsterdam
         The Netherlands

         For the attention of:      Niek Volkers
         Fax:                       00 31 20 463 5358
         E-mail:                    niek.volkers@socgen.com,

         or such other as the Bank may notify to the Obligors by not less than
         five Business Days' notice.

(b)      The address and facsimile number of the Depositor are:

         Mattel International Holdings B.V.
         P.O. Box 576
         1180 AN Amstelveen
         The Netherlands

         For the attention of:      Joop van der Haar
         Fax:                       00 31 20 50 30 415
         E-mail:                    vanderhj@mattel.com,

         or such other as the Depositor may notify to the Bank by not less than
         five Business Days' notice.

31.      WAIVERS AND REMEDIES CUMULATIVE

         The rights of Parties under the Closing Documents:

         (a)      may be exercised as often as necessary;

         (b)      are cumulative and not exclusive of its rights under the
                  general law; and

         (c)      may be waived only in writing and specifically.

         Delay in exercising or non-exercise of any such right is not a waiver
         of that right.

32.      AUTHENTICATION

         The Parties agree that the execution of this Agreement by the Bank and
         the Obligors shall be legalised by a Notary Public in The Netherlands
         at the sole cost of the Obligors.

33.      SEVERABILITY

         If a provision of any Closing Document is or becomes illegal, invalid
         or unenforceable in any

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         jurisdiction, the Parties agree that such event shall not affect (to
         the fullest extent possible under applicable law):

         (a)      the legality, validity or enforceability in that jurisdiction
                  of any other provision of the Closing Documents; or

         (b)      the legality, validity or enforceability in other
                  jurisdictions of that or any other provision of the Closing
                  Documents.

34.      JURISDICTION AND WAIVER OF IMMUNITY

34.1     Jurisdiction

(a)      Any dispute as to the validity, interpretation, performance or any
         other matter arising out of any Closing Document shall be subject to
         the jurisdiction of the competent courts of Amsterdam.

(b)      The designation of jurisdiction in this Clause 34 is entirely for the
         benefit of the Bank and the Bank shall have the right to elect to
         proceed against any Obligor before the courts of any other competent
         jurisdiction.

34.2     Waiver of immunity

         Each Obligor irrevocably and unconditionally:

         (a)      agrees that if the Bank brings proceedings against it or its
                  assets in relation to a Closing Document, no immunity from
                  those proceedings (including, without limitation, suit,
                  attachment prior to judgement, other attachment, the obtaining
                  of judgement, execution or other enforcement) will be claimed
                  by or on behalf of itself or with respect to its assets;

         (b)      waives any such right of immunity which it or its assets now
                  has or may subsequently acquire; and

         (c)      consents generally in respect of any such proceedings to the
                  giving of any relief or the issue of any process in connection
                  with those proceedings, including, without limitation, the
                  making, enforcement or execution against any assets whatsoever
                  (irrespective of its use or intended use) of any order or
                  judgement which may be made or given in those proceedings.

35.      GOVERNING LAW

(a)      This Agreement shall be governed by the laws of the Netherlands.

(b)      Without prejudice to paragraph (a) above this Agreement is not intended
         to govern the actual transfer of title to Relevant Receivables by means
         of the execution of a Transfer Document and the proprietary effects of
         any such transfer (which in each case shall be governed by the law of
         the Transfer Document to the extent possible under the governing law of
         the Sales Contracts under which the Relevant Receivables to which the
         Transfer Document relates arise).

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                                      72

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(c)      The Bank accepts the law of the Netherlands as the law governing the
         powers of attorney issued by the Depositor and Mattel GmbH in favour of
         the person executing this Agreement on behalf of the Depositor and
         Mattel GmbH.

THIS AGREEMENT has been entered into in Amsterdam, on 30th November, 2001 in
four originals.

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                             [Schedules omitted.]

                                  SIGNATORIES

Depositor

MATTEL INTERNATIONAL HOLDINGS B.V.

By: /s/ JOOP VAN DER HAAR

Sellers

MATTEL FRANCE S.A.

By: /s/ JOOP VAN DER HAAR
    Power of Attorney

MATTEL GmbH

By: /s/ JOOP VAN DER HAAR
    Power of Attorney

The Bank

SOCIETE GENERALE BANK NEDERLAND N.V.

By: /s/ NIEK VOLKERS

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