Document:

Agreement with TOMY Comapny, Ltd.

 Exhibit 10(i) 
 “* * * * * * * * * * * * *” DENOTE MATERIAL THAT HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 July 13, 2011 

Mr. Isamu Takahashi 
 TOMY Company, Ltd.

 7-9-10 Tateishi, 
 Katsushika-ku,

 Tokyo 124-8511, Japan 
 Dear
Takahashi-san: 
 This letter memorializes the understanding of TOMY Company, Ltd. (TOMY) and Hasbro, Inc. (Hasbro) with respect to continuing
the mutually-beneficial long-standing relationship they have established. In order to protect the investment each party has made and will continue to make in establishing and marketing TRANSFORMERS products, each party confirms as follows:

 For so long as Hasbro continues to pay the annual minimum royalty provided for in the Agreement, the Agreement will continue to be
automatically renewed for additional successive one-year terms without any right of cancellation by either party (provided neither party has defaulted in the performance of the Agreement). The “Agreement” refers to the November 1,
1983 agreement between Hasbro, Inc. and Takara Co., Ltd. (as one of “TOMY’s predecessors-in-interest), together with all amendments and supplements to it, as well as all related agreements, between the parties. 

Each party further confirms that nothing contained herein shall be deemed to enjoin the parties from making any amendment to the Agreement on mutual
agreement. 
 Each of TOMY and Hasbro also acknowledge and agree that to the maximum extent possible they will each consult with the other prior
to making any public disclosure concerning the terms of the Agreement, with the intent that they have the opportunity to mutually discuss and agree on any such proposed disclosure by either party. However, each party reserves the right to make such
disclosure as its legal counsel advises must be made for such party to comply with all applicable legal and regulatory requirements. 
  

	
	Sincerely,
	
	 /s/ Duncan Billing

	Hasbro, Inc.
	Duncan Billing
	Global Chief Development Officer

  
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 Acknowledged and Agreed by TOMY Company, Ltd.: 

 

	
	 /s/ Kantaro Tomiyama

	Signature
	
	 Kantaro Tomiyama

	Name
	
	 President and Chief Executive Officer

	Title
	
	 July 13, 2011

	Date

  
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 THIS TRANSFORMERS COST AND ROYALTY AGREEMENT is made as of November 1, 2006 by and between Tomy
Company, Ltd., a Japanese corporation with offices at 7-9-10, Tateishi, Katsushika-ku, Tokyo 124-8511, Japan (“TakaraTomy”) and Hasbro, Inc., a Rhode Island corporation with offices at 1011 Newport Avenue, Pawtucket, Rhode Island 02862 USA
(“Hasbro”). 
 RECITALS 
 With respect to the TRANSFORMERS property (the “Property”), Hasbro and TakaraTomy each desire to memorialize their understanding concerning several issues that may arise out of the Memorandum of
Agreement made as of July 30, 2004 by and between DreamWorks Films LLC (“DW”) and Hasbro, as amended by the Amendment Agreement made as of February 8, 2006, and the Second Amendment Agreement made as of April 12, 2006,
between DW and Hasbro (together, the “Deal Memo”), as well as a long form agreement that DW and Hasbro may negotiate and execute pursuant to the Deal Memo (the “Long Form”), for the production of TRANSFORMERS live action motion
pictures (each, a “Picture” and together the “Pictures”). 
 Hasbro has delivered to TakaraTomy, and TakaraTomy acknowledges
receipt of, a complete copy of the Deal Memo. 
 TERMS AND CONDITIONS 

In consideration of the Recitals, and of the mutual terms and conditions stated below in this Agreement, TakaraTomy and Hasbro hereby agree as follows:

  

	1.	Supplement of Prior Agreements. The terms and conditions of this Agreement shall be deemed to supplement the prior agreements between the parties, and their
respective predecessors-in-interest, including: (a) the agreement made as of November 1, 1983 by and between Takara Co., Ltd., Takara Toys Corporation and Hasbro Industries, Inc. (the “Initial Agreement”); (b) the
Supplemental Agreement made as of November 18, 1983 by and between Takara Co., Ltd., Takara Toys Corporation and Hasbro, Inc.; (c) Exhibit A to the Supplemental Agreement, i.e., the undated Agreement on Movie Rights between Takara Co.,
Ltd. and Hasbro, Inc.; and (d) the Transformers Letter Amendment made as of January 1, 1987 between Takara Co., Ltd. and Hasbro, Inc. (the Initial Agreement, Supplemental Agreement, Agreement on Movie Rights and Transformers Letter
Agreement are sometimes collectively referred to as the “Prior Agreements”), all of which Prior Agreements shall continue in full force and effect as supplemented by this Agreement. For the avoidance of doubt, TakaraTomy’s
obligations, acknowledgements and consents set forth in Section 2 are made pursuant to the above-described Agreement on Movie Rights. Also for the avoidance of doubt, nothing in this Agreement shall be deemed to amend the terms and conditions
of the Prior Agreement as applied to any TRANSFORMERS branded merchandise other than “Picture-Based Merchandise,” as defined in Paragraph 11 of the Deal Memo. 

 

	2.	Transformers Picture / TakaraTomy Consent / Merchandise Rights / Indemnifications. 

 

	 	(a)	 TakaraTomy hereby acknowledges and consents to: (i) the fact that Hasbro has executed the Deal Memo with DW and that, pursuant to the Deal Memo,
Hasbro may negotiate and execute with DW the Long Form, any amendment to the Deal Memo or the Long Form, provided that Hasbro shall consult with TakaraTomy before it executes any of the forgoing with DW; and (ii) that the Deal Memo and the Long
Form (including subsequent amendment to any of them) sets forth the terms and conditions of (x) the 

  
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worldwide production, promotion, exhibition and/or other distribution of the Pictures based on the Property; and (y) the worldwide right to manufacture, promote, distribute and/or sell
Picture-Based Merchandise. 

  

	 	(b)	TakaraTomy and Hasbro shall execute with DW the Acknowledgment, Consent and Merchandise Rights Agreement (the “Consent Agreement”) a copy of which is attached
as Exhibit A. Pursuant to the Consent Agreement: (i) TakaraTomy consents to DW’s worldwide production, promotion, exhibition and/or distribution of the Pictures, including in Japan; and (ii) Hasbro assigns to TakaraTomy the right to
manufacture, promote, distribute and/or sell Picture-Based Merchandise in Japan, subject to TakaraTomy’s agreement to be bound to certain obligations pursuant to the Deal Memo and the Long Form (including any subsequent amendment to any of the
foregoing), including certain royalty obligations to DW and other parties (“Picture-Based Japanese Merchandise Rights”). 

  

	 	(c)	For the avoidance of doubt, Hasbro shall assign to TakaraTomy all of the Picture-Based Japanese Merchandise Rights, including that, pursuant to Section 3(c) of the
Consent Agreement, Hasbro shall not have any right of control or approval over TakaraTomy’s manufacture, promotion, distribution and/or sale of Picture-Based Merchandise in Japan. 

 

	 	(d)	Hasbro hereby agrees to indemnify, make good and save and hold harmless TakaraTomy and its successors, licensees, officers, directors, employees and assigns (each, a
“TakaraTomy Indemnified Party”) from and against: (i) any damages, costs, charges, recoveries, judgments, penalties and/or expenses that may be obtained against, imposed upon and/or awarded against any TakaraTomy Indemnified Party in
any claim or action that is brought against any TakaraTomy Indemnified Party by DW or any other third party (collectively, “Claim”) which, if true, would constitute a breach or failure of TakaraTomy’s representations, warranties
and/or agreements made in Paragraphs 1(a)(ii) and 4 of the Consent Agreement, provided that the facts upon which the Claim is based involve a breach or failure of the representations, warranties and agreements with respect to the Property for which
Hasbro should be held responsible; and (ii) reasonable outside attorney’s fees incurred by any TakaraTomy Indemnified Party to defend the Claim. For example, but without limitation, Hasbro shall indemnify a TakaraTomy Indemnified Party
from a Claim brought by DW if the Claim involves damages suffered by DW because: (x) a party contracted by Hasbro, or by Hasbro’s agents or contractors, to re-purpose the Japanese version of TRANSFORMERS Energon (and/or any other
TRANSFORMERS animated TV episodes) into an English language version successfully argues that the Picture infringes the intellectual property rights of the third party contractor; or (y) a third party successfully argues that the marketing and
distribution of the Picture outside Japan infringes the trademark rights of the third party. 

  

	 	(e)	 TakaraTomy hereby agrees to indemnify, make good and save and hold harmless Hasbro its successors, licensees, officers, directors, employees and
assigns (each, a “Hasbro Indemnified Party”) from and against: (i) any damages, costs, charges, recoveries, judgments, penalties and/or expenses that may be obtained against, imposed upon and/or awarded against any Hasbro Indemnified
Party in any claim or action that is brought against any Hasbro Indemnified Party by DW or any other third party (collectively, “Claim”) which, if true, would constitute a breach or failure of Hasbro’s representations, warranties
and/or agreements made in the Deal Memo and the Long Form, provided that the facts upon which the Claim is based involve a breach or failure of the representations, warranties and agreements with respect to the Property for which TakaraTomy should
be 

  
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held responsible; and (ii) reasonable outside attorney’s fees incurred by any Hasbro Indemnified Party to defend the Claim. For example, but without limitation, TakaraTomy shall
indemnify a Hasbro Indemnified Party from a Claim brought by DW if the Claim involves damages suffered by DW because: (x) a party contracted by TakaraTomy, or by TakaraTomy’s agents or contractors, to produce the Japanese version of
TRANSFORMERS Energon (and/or any other TRANSFORMERS animated TV episodes) successfully argues that the Picture infringes the intellectual property rights of the third party contractor; or (y) a third party successfully argues that the marketing
and distribution of the Picture in Japan infringes the trademark rights of the third party. 

  

	3.	Backend Fees. Pursuant to the Deal Memo, and as may be further set forth in the Long Form, Hasbro may receive from DW, in respect of the initial Picture and/or
any Subsequent Pictures produced by DW based on the Property, certain contingent compensation calculated as a percentage of the “backend” revenues earned by DW on the distribution of the Pictures (collectively, the “Backend
Fees”). Pursuant to its obligations under paragraph (c)(ii) of the November 18, 1985 Supplemental Agreement, Hasbro shall pay to TakaraTomy * * * * * of the Backend Fees, that Hasbro receives from DW for Japan, the People’s
Republic of China, Korea and Taiwan, it being understood that the * * * * * share of the Backend Fees that TakaraTomy it may receive from Hasbro is the total royalty and/or profit which TakaraTomy may receive from the distribution of the
Pictures. 

  

	4.	Robot Picture-Based Merchandise Royalty to TakaraTomy. For all Picture-Based Merchandise that consists of an action figure that transforms from or into a robot
form (“Robot Picture-Based Merchandise”) and that Hasbro sells outside Japan, Hasbro shall pay TakaraTomy the standard royalty of * * * * * of the Invoice Price that Hasbro pays pursuant to the Initial Agreement and all such royalty
payments shall be calculated and made according to the terms and conditions of the Initial Agreement. For the initial Picture as referred to in Paragraph 3 hereof, Robot Picture-Based Merchandise is listed in Exhibit B attached hereto. However, if
Hasbro uses, pursuant to Section 5(b), a third party to manufacture the Robot Picture-Based Merchandise, the royalty rate will increase by * * * * * so that the total royalty payable by Hasbro to TakaraTomy, on such third-party
manufactured Robot Picture-Based Merchandise, shall be * * * * * of the respective Invoice Price. 

  

	5.	Co-Development of Robot Picture-Based Merchandise. 

  

	 	(a)	Hasbro and TakaraTomy shall work together to co-develop all Robot Picture-Based Merchandise provided that, within thirty (30) days of the date that Hasbro provides
TakaraTomy with the proposed line of Robot Picture-Based Merchandise and Hasbro’s target production cost per assortment: (i) TakaraTomy must agree to the target production cost proposed by Hasbro; and (ii) TakaraTomy and Hasbro must
agree in writing on a schedule for production of the line of Robot Picture-Based Merchandise at the target production cost (“Production/Cost Schedule”). 

 

	 	(b)	If Hasbro and TakaraTomy cannot timely agree on the Production/Cost Schedule, then: (i) TakaraTomy shall do its own development and production of the Robot
Picture-Based Merchandise for sale in Japan; and (ii) subject to Section 5(c), Hasbro may do its own development and production of the Robot Picture-Based Merchandise for sale outside of Japan, provided that Hasbro may do its own
development and production with a third party only if: (x) TakaraTomy does not want to produce the Robot Picture-Based Merchandise for Hasbro; or (y) a third party is willing to produce the Robot Picture-Based Merchandise for a production
cost at least * * * * * less than the production cost quoted to Hasbro by TakaraTomy. 

  
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	 	(c)	Notwithstanding anything to the contrary contained herein, the parties hereby acknowledge and confirm that TakaraTomy is and shall remain the preferred and primary
source of all Robot Picture-Based Merchandise. However, in the event that TakaraTomy’s quoted production cost exceeds Hasbro’s target production cost per assortment in Section 5(a) above, Hasbro will have the right to source Robot
Picture-Based Merchandise through an alternate source if such alternate source can provide Robot Picture-Based Merchandise at a production cost more than * * * * * below TakaraTomy’s quoted production cost; provided, however, that
TakaraTomy shall first be given a reasonable period of time, not to exceed thirty (30) days, in which to match the production cost of the alternate source and to guarantee said production cost for a period not less than the period of any
production cost guarantee offered by said alternate source. If TakaraTomy matches said lower production cost, TakaraTomy shall still be treated as the sole supplier for such Robot Picture-Based Merchandise. In the event of TakaraTomy’s failure
to match said production cost, Hasbro may engage said alternate source to manufacture said Robot Picture-Based Merchandise, provided that TakaraTomy shall still receive the applicable royalties as provided for in Section 4 hereof, and provided
that Hasbro shall introduce TakaraTomy to said alternate manufacturing source and permit TakaraTomy to manage the production of the Robot Picture-Based Merchandise in question (and charge a * * * * * markup). Hasbro will carefully consider
any of TakaraTomy’s concerns with suggested alternate source. 

  

	 	(d)	If Hasbro and TakaraTomy do timely agree on a Production/Cost Schedule, then Hasbro shall pay * * * * * of the tooling costs and TakaraTomy shall use the tools
to produce the Robot Picture-Based Merchandise for Hasbro. Furthermore, TakaraTomy delivered to Hasbro, on October 25, 2006, TakaraTomy’s forecast of its requirements for Robot Picture Based-Merchandise for sale in Japan (“Japanese
Requirements”). Hasbro shall use Hasbro’s fair share process to allocate the total production of Robot Picture Based-Merchandise against the Japanese Requirements of TakaraTomy and against all the other orders from all Hasbro’s other
customers, including in the major Hasbro markets such as North America. Hasbro’s fair share process means that, in the event of production shortfalls, Hasbro will try to allocate a proportionate share of the shortfall across all markets
(including the North American market) so that no one market (including the Japanese market) bears the full brunt of the production shortfall. However, TakaraTomy acknowledges and agrees that it may be more difficult for Hasbro to allocate a full
proportionate share of production to orders (whether or not placed by TakaraTomy or any other Hasbro customer) for assortment mixes of Robot Picture Based-Merchandise that underutilize the total production capacity. TakaraTomy also acknowledges the
on-shelf date of June 2, 2007 for all Robot Pictured-Based Merchandise, including all Robot Picture-Based Merchandise for sale in Japan, and TakaraTomy accordingly agrees that neither TakaraTomy nor its customers will place any Robot Picture
Based-Merchandise on-shelf or otherwise for sale in Japan before June 2, 2007, unless otherwise expressly agreed upon in writing between the parties. For all Robot Picture Based-Merchandise allocated to TakaraTomy, TakaraTomy shall pay to
Hasbro a tool usage fee (“Tool Fee”) equal to * * * * * of TakaraTomy’s “Invoice Price” of Robot Picture Based-Merchandise in Japan, such “Invoice Price” to be defined the same as stated in Paragraph 8(i) of
the Initial Agreement and to be payable according to the payment terms stated in Paragraph 9 of the Initial Agreement. For the avoidance of doubt, the Tool Fee is in addition to, and not in limitation of, any other amounts, if any, that TakaraTomy
may owe to Hasbro or any other party for the Robot Picture-Based Merchandise. 

  
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	 	(e)	For the avoidance of doubt, other than payment of the Tool Fee, TakaraTomy shall not have any fee or royalty obligation to Hasbro arising out of TakaraTomy’s sales
of Picture-Based Merchandise, including Robot Picture Based-Merchandise in Japan. 

  

	6.	Miscellaneous. 

  

	 	(a)	In this Agreement: (i) the Section headings are for reference purposes only and shall not be deemed to affect the meaning or interpretation of this Agreement;
(ii) all Section and Exhibit references are to Sections of, and Exhibits to, this Agreement unless otherwise expressly stated: (iii) the singular shall include the plural and the plural the singular unless the context requires otherwise;
and (iv) whenever the words “include”, “includes” or “including” are used, they shall be deemed to be followed by the phrase “without limitation.” 

 

	 	(b)	This Agreement: (i) shall be binding upon each party and its successors (including, in the case of TakaraTomy, Takara Co., Ltd. and Takara Toys Corporation) and
assigns; (ii) contains the entire understanding and agreement of the parties (and it incorporates or supersedes all other written or verbal agreements and understandings) with respect to the subject matter; (iii) may be amended or modified
only in writing signed by all parties and referring specifically to the Agreement; (iv) shall be deemed severable, and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of any
other term or condition hereof; (v) may be executed in English and Japanese versions, provided that English shall be deemed the language of the contract so that the English version shall control inconsistencies, if any, between the English and
the Japanese versions; and (vi) may be executed in counterparts, each of which shall be deemed an original but all of which counterparts together shall constitute one and the same Agreement. 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written by signing below. 

 

									
	TOMY COMPANY, LTD.	 	HASBRO, INC.
					
	By:	 	 s/ Kantaro Tomiyama
	 		 	By:	 	 /s/ Brian Goldner

	Title:	 	President and CEO	 		 	Title:	 	COO

  
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 EXHIBIT A 
 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

  
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 EXHIBIT B 
 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

  
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 THIS MARVEL/TRANSFORMERS ROYALTY AGREEMENT is made as of October 1, 2007 by and between Tomy
Company, Ltd., a Japanese corporation with offices at 7-9-10, Tateishi, Katsushika-ku, Tokyo 124-8511, Japan (“Tomy”) and Hasbro, Inc., a Rhode Island corporation with offices at 1011 Newport Avenue, Pawtucket, Rhode Island 02862 USA
(“Hasbro”). 
 RECITALS 
 Hasbro and Tomy each desire to memorialize their understanding and agreement with respect to royalties payable by Hasbro to Tomy on certain co-branded MARVEL/TRANSFORMERS merchandise. 

For the avoidance of doubt, nothing in this Agreement shall be deemed to amend the terms and conditions of the Initial Agreement (as defined in
Section 1(a) below) as applied to any TRANSFORMERS branded merchandise other than co-branded MARVEL/TRANSFORMERS merchandise. 
 TERMS AND CONDITIONS 
 In consideration of the Recitals, and of the mutual terms and
conditions stated below in this Agreement, Tomy and Hasbro hereby agree as follows: 
  

	1.	Definitions. Whenever used in this Agreement: (a) “Initial Agreement” shall mean the agreement made as of November 1, 1983 by and between
Takara Co., Ltd. (Tomy’s predecessor-in-interest), Takara Toys Corporation and Hasbro Industries, Inc.; and (b) “Invoice Price” shall mean as defined in Paragraph 8(i) of the Initial Agreement 

 

	2.	Marvel/Transformers Royalty to Tomy. Hasbro shall pay to Tomy a royalty equal to * * * * * of Hasbro’s Invoice Price of all MARVEL/TRANSFORMERS
co-branded transforming robot products manufactured and sold by Hasbro (the “M/T Royalty”). The M/T Royalty shall be payable according to the payment terms stated in Paragraph 9 of the Initial Agreement. For the avoidance of doubt, other
than payment of the M/T Royalty in respect of MARVEL/TRANSFORMERS co-branding transforming robot products manufactured and sold by Hasbro, Hasbro shall not have any royalty obligation to Tomy with respect to Hasbro’s manufacture, promotion
and/or sales of any MARVEL/TRANSFORMERS co-branded products of whatever nature. 

  

	3.	Plans and Samples. Hasbro agrees to render a notice on Tomy stating brief description of MARVEL/TRANSFORMERS co-branded transforming robot products and
contemplated launching date thereof within reasonable time after Hasbro officially determines their launch. Hasbro further agrees to provide Tomy with three (3) samples of each SKU of MARVEL/TRANSFORMERS co-branded transforming robot products
from the first production run free of charges. For the avoidance of doubt, nothing contained herein shall be construed as granting to Tomy any approval right whatsoever with regard to the subject matter hereof, and Tomy hereby confirms that under no
circumstances it will request Hasbro to alter, change, modify or revise Hasbro’s marketing plan or specifications of MARVEL/TRANSFORMERS co-branded transforming robot products. 

 

	4.	 Miscellaneous. This Agreement: (a) shall be binding upon each party and its predecessors-in-interest and its sucessors-in-interest
(including, in case of Tomy, Takara Co., Ltd. and Takara Toys Corporation) and assigns; (b) contains the entire understanding and agreement of the parties (and it incorporates or supersedes all other written or verbal agreements and
understandings) with respect to the subject matter; (c) may be amended or modified only in writing signed by all parties and referring specifically to the Agreement; (d) may be executed in English and Japanese versions, provided that

  
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English shall be deemed the language of the contract so that the English version shall control inconsistencies, if any, between the English and the Japanese versions; and (e) may be executed
in counterparts, each of which shall be deemed an original but all of which counterparts together shall constitute one and the same Agreement. 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written by signing below. 

 

									
	TOMY COMPANY, LTD.	 		 	HASBRO, INC.
					
	BY:	 	 /s/ Kantaro Tomiyama
	 		 	BY:	 	 /s/ Brian Goldner

		 	Kantaro Tomiyama	 		 		 	Brian Goldner
		 	President and CEO	 		 		 	COO

  
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 THIS STAR WARS TRANSFORMERS ROYALTY AGREEMENT is made of as November 1, 2006 by and between
Tomy Company, Ltd., a Japanese corporation with offices at 7-9-10, Tateishi, Katsushika-ku, Tokyo 124-8511, Japan (“TakaraTomy”) and Hasbro, Inc., a Rhode Island corporation with offices at 1011 Newport Avenue, Pawtucket, Rhode Island
02862 USA (“Hasbro”). 
 RECITALS 
 Hasbro and TakaraTomy each desire to memorialize their understanding with respect to royalties payable by Hasbro to TakaraTomy on certain co-branded STAR WARS / TRANSFORMERS merchandise, which
understanding and agreement has been in effect since December, 2005 (including between Hasbro and TakaraTomy’s predecessor-in-interest, Takara Co. Ltd). 
 For the avoidance of doubt, noting in this Agreement shall be deemed to amend the terms and conditions of the Initial Agreement (as defined in Section 1(a) below) as applied to any TRANSFORMERS
branded merchandise other than co-branded STAR WARS/TRANSFORMERS merchandise. 
 TERMS AND CONDITIONS 

In consideration of the Recitals, and of the mutual terms and conditions stated below in this Agreement, TakaraTomy and Hasbro hereby agree as follows:

  

	1.	Definitions. Whenever used in this Agreement: (a) “Initial Agreement” shall mean agreement made as of November 1, 1983 by and between Takara
Co., Ltd., Takara Toys Corporation and Hasbro Industries, Inc.; and (b) “Invoice Price” shall mean as defined in Paragraph 8(i) of the Initial Agreement. 

 

	2.	Star Wars/Transformers Royalty to TakaraTomy. Hasbro shall pay to TakaraTomy a royalty equal to * * * * * of Hasbro’s Invoice Price of all STAR
WARS/TRANSFORMERS co-branded transforming robot products manufactured and sold by Hasbro (the “SW/T Royalty”). The SW/T Royalty shall be payable according to the payment terms stated in Paragraph 9 of the Initial Agreement. For the
avoidance of doubt, other than payment of the SW/T Royalty in respect of STAR WARS/TRANSFORMERS co-branded transforming robot products manufactured and sold by Hasbro, Hasbro shall not have any royalty obligations to TakaraTomy with respect to
Hasbro’s manufacture, promotion and/or sale of any STAR WARS/ TANSFORMERS co-branded products of whatever nature. 

  

	3.	 Miscellaneous. This Agreement: (a) shall be binding upon each party and its predecessors-in-interest and its successors-in-interest
(including, in the case of TakaraTomy, Takara Co., Ltd. and Takara Toys Corporation) and assigns; (b) contains the entire understanding and agreement of the parties (and it incorporates or supersedes all other written or verbal agreements and
understanding) with respect to the subject matter; (c) may be amended or modified only in writing signed by all parties and referring specifically to the Agreement; (d)

  
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may be executed in English and Japanese versions, provided that English shall be deemed the language of the contract so that the English version shall control inconsistencies, if any, between the
English and the Japanese versions; and (vi) may be executed in counterparts, each of which shall be deemed an original but all of which counterparts together shall constitute one and the same Agreement. 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written by signing below 

 

									
	TOMY COMPANY, LTD.	 		 	HASBRO, I NC.
					
	By:	 	 /s/ Kantaro Tomiyama
	 		 	By:	 	 /s/ Brian Goldner

		 	Kantaro Tomiyama	 		 		 	Brian Goldner
		 	President and CEO	 		 		 	COO

  
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 AMENDMENT TO AGREEMENT 
 THIS AMENDMENT, dated as of October 1, 2006 amends that certain Agreement (the “Agreement”), dated as of November 1, 1983, as amended to date, by and between Tomy Company, Ltd., a
Japanese corporation with offices at 7-9-10, Tateishi, Katsushika-ku, Tokyo 124-8511, Japan (“Tomy”) and Hasbro, Inc., a Rhode Island corporation with offices at 1011 Newport Avenue, Pawtucket, Rhode Island 02862 USA (“Hasbro”).

 NOW, THEREFORE, in consideration of the mutual covenants and understandings contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Agreement as follows: 
 In the event that,
pursuant to mutual agreement between Hasbro and Tomy, Hasbro utilizes product tooling or molds solely owned and controlled by Tomy for the production of Transformer branded robotic toys convertible into the form of separate toy configurations, then
Hasbro will pay to Tomy a mold use fee equal to * * * * * of Hasbro’s Net Sales of such products. For purposes of this Amendment, Net Sales shall be defined as Hasbro’s invoice price to its customers less * * * * * of such
invoice price. The mold use fee shall be payable by Hasbro together with the royalties otherwise payable with respect to such products pursuant to the Agreement. 
 All other provisions of the Agreement shall remain unchanged and in full force and effect. 
 IN
WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first written above. 
 AGREED TO AND ACCEPTED BY: 

 

									
	TOMY CO., LTD.	 		 	HASBRO, INC.
					
	By:	 	 /s/ Kantaro Tomiyama
	 		 	By:	 	 /s/ Brian Goldner

	Date:	 	January 8, 2008	 		 	Date:	 	January 30, 2008

  
 14 

 AMENDMENT 
 THIS AMENDMENT, dated as of March 1, 2005 amends that certain License Agreement (the “Agreement”), dated as of November 1, 1983, as amended to date, by and between Takara Co.,
LTD. (“Takara”), on the one hand, and Hasbro, Inc. and Hasbro International, Inc. (collectively, “Hasbro”) on the other hand. 
 WHEREAS, the parties wish to set forth specific agreements with respect to the development of a TRANSFORMERS-related property, currently entitled “CYBERTRON” (the “Property”);

 NOW, THEREFORE, in consideration of the mutual covenants and understandings contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Product Development 

 The parties
shall jointly participate in the development of the Property and products based on the Property (“Products”). The parties have agreed upon a budget for out-of-pocket development expenses for the Property equal to * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * as more fully described in Schedule 1 attached hereto. The parties shall share such out-of-pocket
development costs up to the amount set forth in this paragraph as follows: Hasbro – * * * * * and Takara – * * * * *. No additional development expenses shall be incurred unless and until the parties agree upon such
additional expenses. In the event that out-of-pocket costs exceed the estimates set forth on Schedule 1, Takara will present revised estimates to Hasbro and the parties shall jointly decide on whether to incur such additional expenses. Takara
shall pay for all development costs and shall send invoices to Hasbro for Hasbro’s share of such development costs as the costs are incurred. Hasbro will pay its share of the development costs to Takara within thirty (30) days after
receipt of an invoice. Notwithstanding the foregoing, the parties also agree to share development expenses incurred by Hasbro in connection with the preparation of Products for manufacturing, including without limitation paintmaster samples, as
follows: Hasbro – * * * * * and Takara – * * * * *. Takara will pay its share of such development expenses to Hasbro within thirty (30) days after receipt of an invoice therefor or, at Hasbro’s option, Hasbro may
offset such amounts against the reimbursement of development expenses otherwise payable to Takara by Hasbro. 
  

	2.	Tooling 

 The parties agree that
they shall share tooling costs associated with Products which both Takara and Hasbro market in their respective territories, such cost sharing to be on the following basis: Hasbro – * * * * * and Takara – * * * * *. In the
event that Takara notifies Hasbro in writing, prior to incurring any tooling costs with respect to a particular Product, that Takara shall not market such Product in Takara’s territory, and Hasbro wishes to proceed with such tooling, Hasbro
shall be responsible for the entire direct cost of such tooling. If at any time thereafter, Takara wishes to market in its territory such Product for which Hasbro has paid for all of the direct tooling cost,

  
 15 

 
the parties will negotiate in good faith for an appropriate reimbursement to Hasbro to cover Takara’s share of the tooling cost. The parties have agreed upon a budget for out-of-pocket
tooling expenses equal to * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * as more fully described in
Schedule 1 attached hereto. No additional tooling expenses shall be incurred unless and until the parties agree upon such additional expenses. In the event that out-of-pocket costs exceed the estimates set forth on Schedule 1, or in
the event that Hasbro desires that additional tooling be developed in order to provide additional capacity for Products to be distributed by Hasbro, Takara will present revised estimates to Hasbro and the parties shall jointly decide on whether to
incur such additional expenses. Such tooling shall be jointly owned by Hasbro and Takara in proportion to each party’s share of investment as described in this Paragraph 2. Takara shall pay for all tooling costs and shall send invoices to
Hasbro for Hasbro’s share of such tooling costs as the costs are incurred. Hasbro will pay its share of the tooling costs to Takara within thirty (30) days after receipt of an invoice. 

 

	3.	Product Shipment 

 If the Products
are designed to change form or “transform”, Takara shall arrange for the manufacturing of the Products and shall manage the manufacturing process for all Products (unless otherwise agreed by the parties), subject to Hasbro’s rights of
approval and disapproval. The parties shall allocate finished product between them based on each party’s agreed upon good faith forecast for sales of such products, or if no such allocation has been agreed upon, based on an allocation of * *
* * * to Hasbro and * * * * * to Takara. Schedule 2 attached hereto sets forth a production schedule for the Products. Takara shall use its best efforts to ensure that the Products are delivered in accordance with such production
schedule. 
  

	4.	Programming and Videogram 

  

	(a)	The parties shall jointly develop fifty-two (52) episodes of television programming for the Property (the “Series”). The programming costs for
development the Series, to completion of the Japanese master by the Japanese production studio, are budgeted to be * * * * * per episode (the “Programming Costs”). The parties agree that they shall share such Programming Costs on
the following basis: Hasbro – * * * * * and Takara – * * * * *. Hasbro’s share of the Programming Costs per episode shall be payable on the following schedule: Episodes 1 – 13 due on October 31, 2004; episodes
14 – 26 due on January 31, 2005; episodes 27 – 39 due on July 31, 2005 and episodes 40 – 52 due on December 31, 2005. Hasbro will be responsible for dubbing the Series into English provided that, in the event that
Takara wishes to utilize in its territory, as described in Paragraph 4(i) below, the version of the Series that has been dubbed into English, the parties will negotiate a reasonable compensation to be paid to Hasbro as reimbursement for a share of
dubbing-related expenses. No additional Programming Costs shall be incurred unless and until the parties agree upon such additional expenses. In the event that Programming Costs exceed the amount specified above in this Paragraph, Takara will
present revised estimates to Hasbro and the parties shall jointly decide on whether to incur such additional expenses. 

  
 16 

	(b)	Takara will manage the programming development process for the Series; provided that Hasbro and Takara will jointly agree upon and provide creative direction to GONZO
Digimation, or such other program developer as may be mutually selected by Hasbro and Takara (the “Producer”). Takara shall ensure that the animation for the Series is consistent with the “Character Appearances” attached hereto
as Schedule 3. Takara shall ensure that the quality of the animation and computer graphic imaging for the Series will be of a quality at least equal to that of Transformers-Armada”; provided that in addition to such quality standard, the
Series shall utilize high quality computer graphic imagery (“CGI”) for all robots and transformation sequences, but may utilize two dimensional animation for human characters and scenic backgrounds. The Series shall also contain a
materially greater number of action sequences than that shown in the “Transformers Armada” series. CGI will comprise at least one-half the screen time of each episode of the Series with the length and expression of characters
transformation sequences increased over those appearing in the “Transformers Armada” series. 

  

	(c)	Takara will ensure that all episodes of the Series are delivered to Hasbro in order to be dubbed into English in accordance with the delivery schedule set forth on
Schedule 4 attached hereto 

  

	(d)	Hasbro shall have the unlimited right to use and sublicense all graphic elements, footage, sound and other elements of the Series worldwide, except for the countries
granted to Takara and listed in subparagraph (h) below. 

  

	(e)	Hasbro shall have right of approval and disapproval over all elements of the Series including, without limitation, storyline, graphic animation, style and character
descriptions and the elements described in subparagraph (f) below. 

  

	(f)	The approval process for the Series shall include the following steps and such other steps to which Takara, Hasbro and the Producer may mutually agree:

  

	 	(i)	The Producer shall submit to Hasbro the plot/storyline of each episode. Hasbro shall endeavor to return comments to the Producer within two (2) business days after
receipt of submission. 

  

	 	(ii)	The Producer shall submit to Hasbro the world designs and character designs for each episode. Hasbro shall endeavor to return comments to the Producer within two
(2) business days after receipt of submission. 

  

	 	(iii)	The Producer shall submit to Hasbro the program synopsis for each episode. Hasbro shall endeavor to return comments to the Producer within two (2) business days
after receipt of submission. 

  

	 	(iv)	The Producer shall submit to Hasbro the script for each episode. Hasbro shall endeavor to return comments to the Producer within five (5) business days after
receipt of submission. 

  

	 	(v)	The Producer shall submit to Hasbro the program storyboards for the first six episodes. Hasbro shall endeavor to return comments to the Producer within two
(2) business days after receipt of submission. 

  
 17 

	 	(vi)	The Producer shall create a sizzle animation and submit all such animation to Hasbro for approval of the animation style. Hasbro shall have final approval over the
animation style. 

  

	 	(vii)	Hasbro shall have final approval over each episode of the Series. 

  

	 	(viii)	Hasbro shall have final approval over the story line. 

  

	 	(ix)	Producer shall submit to Hasbro 300dpi resolution still images of no fewer than twenty-five (25) key characters, without background, in both robot and vehicle
modes, which will be extracted from the television scenes upon Hasbro’s instruction and prepared as a Photoshop file by Producer. 

  

	 	(x)	Producer shall provide to Hasbro no later than September 30, 2004 an animated sequence from the Series that is one (1) to five (5) minutes in length.

  

	(g)	The Series and the trailer (including all copyrights therein and thereto or, in the case of music used in the Series, licensed rights therein and thereto except for the
opening and ending theme music) shall be owned jointly by Hasbro and Takara for use, distribution and exhibition by each party in their respective territories, as set forth in Paragraph (h) below. For the avoidance of doubt, neither the
copyrights nor the licensed rights include, in the case of Hasbro, the right to use the opening and ending Japanese theme music or, in the case of Takara, the right to use the opening and ending English theme music. 

 

	(h)	Hasbro shall have exclusive worldwide distribution and exhibition rights to the Series, including program and videogram distribution and exhibition, except that Takara
shall have program and videogram distribution and exhibition rights in the following countries: Japan, Korea, Taiwan, Hong Kong, Malaysia, Indonesia, Thailand, Philippines and Singapore. Notwithstanding the above, if the Series has not been placed
with a mutually acceptable network and begun broadcast in any of the countries specifically listed in this Paragraph (h) by November 30, 2008, then the rights for such non-broadcasting country(s) shall immediately revert to Hasbro.

  

	(i)	Hasbro shall have exclusive worldwide distribution rights for all toys, games, and computer, video and other types of interactive game products based on the Property
except that Takara shall retain exclusive distribution rights for such products in Japan and exclusive distribution rights for such products other than computer, video and other types of interactive game products in Korea. 

 

	(j)	Hasbro shall have exclusive worldwide distribution rights for all other products based on the Cybertron Property except that Takara shall retain exclusive distribution
rights for such products in Japan. 

  

	(k)	Hasbro and Takara shall work together to agree on and implement a TRANSFORMERS copyright ownership structure that facilitates each party’s exploitation and
enforcement in their respective Territories, including that Takara shall take the steps necessary to implement the agreed copyright ownership structure with GONZO Digimation and the sub-contractors of GONZO Digimation that work on the audio-visual
content (including all music except for the opening and ending theme music) of TRANSFORMERS Cybertron. 

  
 18 

	5.	Other Provisions 

 All other
provisions of the Agreement shall remain unchanged and in full force and effect. 
 AGREED TO AND ACCEPTED BY: 

 

									
	TAKARA CO., LTD.	 		 	HASBRO, INC.
					
	By:	 	 /s/ Keita Satoh
	 		 	By:	 	 /s/ Brian Goldner

	Date:	 	March 14, 2005	 		 	Date:	 	March 3, 2005
				
		 		 		 	HASBRO INTERNATIONAL, INC.
					
		 		 		 	By:	 	 /s/ David D.R. Hargreaves

		 		 		 	Date:	 	March 3, 2005

  
 19 

 SCHEDULE 1: Budgeted Costs 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 20 

 SCHEDULE 2: Production Schedule 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

  
 21 

 SCHEDULE 3 

Character Appearances 
 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 22 

 SCHEDULE 4: Programming Delivery Schedule 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 23 

 AMENDMENT 
 THIS AMENDMENT, dated as of February 24, 2004 amends that certain License Agreement (the “Agreement”), dated as of November 1, 1983, as amended to date, by and between Takara
Co., LTD. (“Takara”), on the one hand, and Hasbro, Inc. and Hasbro International, Inc. (collectively, “Hasbro”) on the other hand. 
 WHEREAS, the parties wish to set forth specific agreements with respect to the development of a TRANSFORMERS-related property, currently entitled “ENERGON” (the “Property”);

 NOW, THEREFORE, in consideration of the mutual covenants and understandings contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Product Development 

 The parties
shall jointly participate in the development of the Property and products based on the Property (“Products”). The parties have agreed upon a budget for out-of-pocket development expenses for the Property equal to * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * as more fully described in Schedule 1 attached hereto. The parties shall share such out-of-pocket
development costs up to the amount set forth in this paragraph as follows: Hasbro – * * * * * and Takara – * * * * *. No additional development expenses shall be incurred unless and until the parties agree upon such
additional expenses. In the event that out-of-pocket costs exceed the estimates set forth on Schedule 1, Takara will present revised estimates to Hasbro and the parties shall jointly decide on whether to incur such additional expenses. Takara
shall pay for all development costs and shall send invoices to Hasbro for Hasbro’s share of such development costs as the costs are incurred. Hasbro will pay its share of the development costs to Takara within thirty (30) days after
receipt of an invoice. Notwithstanding the foregoing, the parties also agree to share development expenses incurred by Hasbro in connection with the preparation of Products for manufacturing, including without limitation paintmaster samples, as
follows: Hasbro – * * * * * and Takara – * * * * *. Takara will pay its share of such development expenses to Hasbro within thirty (30) days after receipt of an invoice therefor or, at Hasbro’s option, Hasbro may
offset such amounts against the reimbursement of development expenses otherwise payable to Takara by Hasbro. 
  

	2.	Tooling 

 The parties agree that
they shall share tooling costs associated with Products which both Takara and Hasbro market in their respective territories, such cost sharing to be on the following basis: Hasbro – * * * * * and Takara – * * * * *. In the
event that Takara notifies Hasbro in writing, prior to incurring any tooling costs with respect to a particular Product, that Takara shall not market such Product in Takara’s territory, and Hasbro wishes to proceed with such tooling, Hasbro
shall be responsible for the entire direct cost of such tooling. If at any time thereafter, Takara wishes to market in its territory such Product for which Hasbro has paid for all of the direct tooling cost,

  
 24 

 
the parties will negotiate in good faith for an appropriate reimbursement to Hasbro to cover Takara’s share of the tooling cost. The parties have agreed upon a budget for out-of-pocket
tooling expenses equal to * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * as more fully described in
Schedule 1 attached hereto. No additional tooling expenses shall be incurred unless and until the parties agree upon such additional expenses. In the event that out-of-pocket costs exceed the estimates set forth on Schedule 1, or in
the event that Hasbro desires that additional tooling be developed in order to provide additional capacity for Products to be distributed by Hasbro, Takara will present revised estimates to Hasbro and the parties shall jointly decide on whether to
incur such additional expenses. Such tooling shall be jointly owned by Hasbro and Takara in proportion to each party’s share of investment as described in this Paragraph 2. Takara shall pay for all tooling costs and shall send invoices to
Hasbro for Hasbro’s share of such tooling costs as the costs are incurred. Hasbro will pay its share of the tooling costs to Takara within thirty (30) days after receipt of an invoice. 

 

	3.	Product Shipment 

 If the Products
are designed to change form or “transform”, Takara shall arrange for the manufacturing of the Products and shall manage the manufacturing process for all Products (unless otherwise agreed by the parties), subject to Hasbro’s rights of
approval and disapproval. The parties shall allocate finished product between them based on each party’s agreed upon good faith forecast for sales of such products, or if no such allocation has been agreed upon, based on an allocation of * *
* * * to Hasbro and * * * * * to Takara. Schedule 2 attached hereto sets forth a production schedule for the Products. Takara shall use its best efforts to ensure that the Products are delivered in accordance with such production
schedule. 
  

	4.	Programming and Videogram 

  

	(a)	The parties shall jointly develop fifty-two (52) episodes of television programming for the Property (the “Series”). The programming costs for
development the Series, to completion of the Japanese master by the Japanese production studio, are budgeted to be * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * per episode for the first half of the Series (i.e. episode #1 to #26), and * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * per episode for the latter half of the Series (i.e. episode #27 to #52) per
episode (the “Programming Costs”). The parties agree that they shall share such Programming Costs on the following basis: Hasbro – * * * * * and Takara – * * * * *. In the event that Takara wishes to utilize in its
territory, as described in Paragraph 4(i) below, the version of the Series that has been dubbed into English, the parties will negotiate a reasonable compensation to be paid to Hasbro as reimbursement for a share of dubbing-related expenses. No
additional Programming Costs shall be incurred unless and until the parties agree upon such additional expenses. In the event that Programming Costs exceed the amount specified above in this Paragraph, Takara will present revised estimates to Hasbro
and the parties shall jointly decide on whether to incur such additional expenses. 

  
 25 

	(b)	Takara will manage the programming development process for the Series; provided that Hasbro and Takara will jointly agree upon and provide creative direction to
We’ve, or such other program developer as may be mutually selected by Hasbro and Takara (the “Producer”). Takara shall ensure that the animation for the Series is consistent with the “Character Appearances” attached hereto
as Schedule 3. Takara shall ensure that the quality of the animation and computer graphic imaging for the Series will be of a quality at least equal to that of ”Transformers-Armada; provided that in addition to such quality standard, the
Series shall utilize high quality computer graphic imagery (“CGI”) for all robots and transformation sequences, but may utilize two dimensional animation for human characters and scenic backgrounds. The Series shall also contain a
materially greater number of action sequences than that shown in the “Transformers Armada” series. CGI will comprise at least one-half the screen time of each episode of the Series with the length and expression of characters
transformation sequences increased over those appearing in the “Transformers Armada” series. 

  

	(c)	Takara will ensure that all episodes of the Series are delivered to Hasbro in order to be dubbed into English in accordance with the delivery schedule set forth on
Schedule 4 attached hereto 

  

	(d)	Hasbro shall have the unlimited right to use and sublicense all graphic elements, footage, sound and other elements of the Series worldwide, except for the countries
granted to Takara and listed in subparagraph (h) below. 

  

	(e)	Hasbro shall have right of approval and disapproval over all elements of the Series including, without limitation, storyline, graphic animation, style and character
descriptions and the elements described in subparagraph (f) below. 

  

	(f)	The approval process for the Series shall include the following steps and such other steps to which Takara, Hasbro and the Producer may mutually agree:

  

	 	(i)	The Producer shall submit to Hasbro the plot/storyline of each episode. Hasbro shall endeavor to return comments to the Producer within two (2) business days after
receipt of submission. 

  

	 	(ii)	The Producer shall submit to Hasbro the world designs and character designs for each episode. Hasbro shall endeavor to return comments to the Producer within two
(2) business days after receipt of submission. 

  

	 	(iii)	The Producer shall submit to Hasbro the program synopsis for each episode. Hasbro shall endeavor to return comments to the Producer within two (2) business days
after receipt of submission. 

  

	 	(iv)	The Producer shall submit to Hasbro the script for each episode. Hasbro shall endeavor to return comments to the Producer within five (5) business days after
receipt of submission. 

  

	 	(v)	The Producer shall submit to Hasbro the program storyboards for the first six episodes. Hasbro shall endeavor to return comments to the Producer within two
(2) business days after receipt of submission. 

  
 26 

	 	(vi)	The Producer shall create animation and submit all such animation to Hasbro for approval. 

 

	 	(vii)	Hasbro shall have final approval over each episode of the Series. 

  

	 	(viii)	Hasbro shall have final approval over the story line. 

  

	(g)	The Series and the trailer shall be owned jointly by Hasbro and Takara for use, distribution and exhibition by each party in their respective territories, as set forth
in Paragraph (h) below. 

  

	(h)	Hasbro shall have exclusive worldwide distribution and exhibition rights to the Series, including program and videogram distribution and exhibition, except that Takara
shall have program and videogram distribution and exhibition rights in the following countries: Japan, Korea, Taiwan, Hong Kong, Malaysia, Indonesia, Thailand, Philippines and Singapore. 

 

	(i)	Hasbro shall have exclusive worldwide distribution rights for all toys, games, and computer, video and other types of interactive game products based on the Property
except that Takara shall retain exclusive distribution rights for such products in Japan and exclusive distribution rights for such products other than computer, video and other types of interactive game products in Korea. 

 

	(j)	Hasbro shall have exclusive worldwide distribution rights for all other products based on the Energon Property except that Takara shall retain exclusive distribution
rights for such products in Japan, Korea, Taiwan, Hong Kong, Malaysia, Indonesia, Thailand, Philippines and Singapore. 

  

	5.	Other Provisions 

 All other
provisions of the Agreement shall remain unchanged and in full force and effect. 
  

									
	AGREED TO AND ACCEPTED BY:	  		 		 	
			
	TAKARA CO., LTD.	  		 	HASBRO, INC.
					
	By:	  	 /s/ Keita Satoh
	  		 	By:	 	 /s/ Brian Goldner

	Date:	  	2/13/04	  		 	Date:	 	2/24/04
				
		  		  		 	HASBRO INTERNATIONAL, INC.
					
		  		  		 	By:	 	 /s/ David D. R. Hargreaves

		  		  		 	Date:	 	2/24/04

  
 27 

 SCHEDULE 1: Budgeted Costs 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 28 

 SCHEDULE 2: Production Schedule 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 29 

 SCHEDULE 3 

Character Appearances 
 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 30 

 SCHEDULE 4: Programming Delivery Schedule 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 31 

 January 24, 2004 
 Takara Co., Ltd. 
 No. 19-16, Aoto 4-chome 

Katsushika-ku, Tokyo 
 Japan 

 

	Re:	Transformers Alternators – Subaru 

In connection with our November 1, 1983 License Agreement, as amended (the “Agreement”), the following terms shall apply to Transformers
vehicles/robots based on the “Subaru” brand of automobiles. Please sign below if you agree with the following: 
 1. Takara represents
that it has obtained all rights necessary to (a) manufacture Transformers toys using trademarks of SUBARU and IMPREZA and designs worldwide (“Subaru Transformers”) and (b) sell Subaru Transformers to Hasbro for resale and/or
distribution in all territories where Hasbro currently has rights to sell Transformers products. Takara represents that it has obtained such rights through March 31, 2006. Takara shall obtain all required product approvals from Subaru.

 2. On all sales of Subaru Transformers to its customers, Hasbro shall pay Takara a royalty as follows: (a) * * * * * of
Hasbro’s Net Sales (as defined in the Agreement) for Takara’s account (the “Takara Royalty”) and (b) * * * * * of Hasbro’s Net Sales (as defined in the Agreement) for Subaru’s account (the “Subaru
Royalty”). Takara shall pay the Subaru Royalty to Subaru. Takara shall ensure that Hasbro has not obligation to make any payments directly to Subaru or its affiliates for such sales. 
 3. Hasbro shall have no minimum guarantees or advances relating to Subaru Transformers payable to either Takara or Subaru. 
 4. Hasbro shall submit royalty reports to Takara on sales of Subaru Transformers on Hasbro’s standard reporting schedule and forms. Hasbro shall not be required to submit any reports to Subaru.

 All other terms of the Agreement shall remain in full force and effect. 

 

	
	Sincerely,
	
	 /s/ Brian Goldner

	 Brian Goldner

	 President, U.S. Toy Segment

	 Hasbro, Inc.

  
 32 

			
	Agreed:
	
	Takara Co. Ltd.
		
	By:	 	 /s/ Keita Satoh

	Name:	 	Keita Satoh

  
 33 

 AMENDMENT 
 THIS AMENDMENT, dated as of January 10, 2002 amends that certain License Agreement (the “Agreement”), dated as of November 1, 1983, as amended to date, by and between Takara
Co., LTD. (“Takara”), on the one hand, and Hasbro, Inc. and Hasbro International, Inc. (collectively, “Hasbro”) on the other hand. 
 WHEREAS, the parties wish to set forth specific agreements with respect to the development of a TRANSFORMERS-related property, currently entitled “ARMADA” (the “Property”); 

NOW, THEREFORE, in consideration of the mutual covenants and understandings contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Product Development 

 The parties shall jointly participate in the development of the Property and products based on the Property (“Products”). The parties have agreed upon a budget for out-of-pocket development
expenses for the Property equal to * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * as more fully described in
Schedule 1 attached hereto. The parties shall share such out-of-pocket development costs up to the amount set forth in this paragraph as follows: Hasbro – * * * * * and Takara – * * * * *. No additional development
expenses shall be incurred unless and until the parties agree upon such additional expenses. In the event that out-of-pocket costs exceed the estimates set forth on Schedule 1, Takara will present revised estimates to Hasbro and the parties
shall jointly decide on whether to incur such additional expenses. Takara shall pay for all development costs and shall send invoices to Hasbro for Hasbro’s share of such development costs as the costs are incurred. Hasbro will pay its share of
the development costs to Takara within thirty (30) days after receipt of an invoice. Notwithstanding the foregoing, the parties also agree to share development expenses incurred by Hasbro in connection with the preparation of Products for
manufacturing, including without limitation paintmaster samples, as follows: Hasbro – * * * * * and Takara – * * * * *. Takara will pay its share of such development expenses to Hasbro within thirty (30) days after
receipt of an invoice therefor or, at Hasbro’s option, Hasbro may offset such amounts against the reimbursement of development expenses otherwise payable to Takara by Hasbro. 

 

	2.	Tooling 

 The parties agree that
they shall share tooling costs associated with Products which both Takara and Hasbro market in their respective territories, such cost sharing to be on the following basis: Hasbro – * * * * * and Takara – * * * * *. In the
event that Takara notifies Hasbro in writing, prior to incurring any tooling costs with respect to a particular Product, that Takara shall not market such Product in Takara’s territory, and Hasbro wishes to

  
 34 

 
proceed with such tooling, Hasbro shall be responsible for the entire direct cost of such tooling. If at any time thereafter, Takara wishes to market in its territory such Product for which
Hasbro has paid for all of the direct tooling cost, the parties will negotiate in good faith for an appropriate reimbursement to Hasbro to cover Takara’s share of the tooling cost. The parties have agreed upon a budget for out-of-pocket tooling
expenses equal to * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * as more fully described in Schedule 1 attached hereto. No additional tooling expenses shall be incurred unless and
until the parties agree upon such additional expenses. In the event that out-of-pocket costs exceed the estimates set forth on Schedule 1, or in the event that Hasbro desires that additional tooling be developed in order to provide additional
capacity for Products to be distributed by Hasbro, Takara will present revised estimates to Hasbro and the parties shall jointly decide on whether to incur such additional expenses. Hasbro shall have full ownership and control of such tooling in
perpetuity subject to each party’s share of production as described below in Paragraph 3. Takara shall pay for all tooling costs and shall send invoices to Hasbro for Hasbro’s share of such tooling costs as the costs are incurred. Hasbro
will pay its share of the tooling costs to Takara within thirty (30) days after receipt of an invoice. 
  

	3.	Product Shipment 

 If the Products
are designed to change form or “transform”, Takara shall arrange for the manufacturing of the Products and shall manage the manufacturing process for all Products (unless otherwise agreed by the parties), subject to Hasbro’s rights of
approval and disapproval. The parties shall allocate finished product between them based on each party’s agreed upon good faith forecast for sales of such products, or if no such allocation has been agreed upon, based on an allocation of * *
* * * to Hasbro and * * * * * to Takara. Schedule 2 attached hereto sets forth a production schedule for the Products. Takara shall use its best efforts to ensure that the Products are delivered in accordance with such production
schedule. 
  

	4.	Programming and Videogram 

  

	(a)	The parties shall jointly develop fifty-two (52) episodes of television programming for the Property (the “Series”). The programming costs for
development the Series, to completion of the Japanese master by the Japanese production studio, are budgeted to be * * * * * * * * * * * * * * * * * * * * per episode (the “Programming Costs”). The parties agree that they shall
share such Programming Costs on the following basis: Hasbro – * * * * * and Takara – * * * * *. In the event that Takara wishes to utilize in its territory, as described in Paragraph 4(i) below, the version of the Series that
has been dubbed into English, the parties will negotiate a reasonable compensation to be paid to Hasbro as reimbursement for a share of dubbing-related expenses. No additional Programming Costs shall be incurred unless and until the parties agree
upon such additional expenses. In the event that Programming Costs exceed the amount specified above in this Paragraph, Takara will present revised estimates to Hasbro and the parties shall jointly decide on whether to incur such additional
expenses. 

  
 35 

	(b)	Takara will manage the programming development process for the Series; provided that Hasbro and Takara will jointly provide creative direction to Aeon, or such other
program developer as may be mutually selected by Hasbro and Takara (the “Producer”). Takara shall ensure that the animation for the Series is consistent with the “Programming Objectives” attached hereto as Schedule 3.
Takara shall ensure that the quality of the animation and computer graphic imaging for the Series will be of a quality at least equal to that of “Web Driver.” 

 

	(c)	Takara will ensure that all episodes of the Series are delivered to Hasbro in order to be dubbed into English in accordance with the delivery schedule set forth on
Schedule 4 attached hereto 

  

	(d)	Hasbro shall have the unlimited right to use and sublicense all graphic elements, footage, sound and other elements of the Series worldwide, except for the countries
granted to Takara and listed in subparagraph (i) below. 

  

	(e)	Hasbro shall have right of approval and disapproval over all elements of the Series including, without limitation, storyline, graphic animation, style and character
descriptions and the elements described in subparagraph (g) below. 

  

	(f)	The approval process for the Series shall include the following steps and such other steps to which Takara, Hasbro and the Producer may mutually agree:

  

	 	(i)	The Producer shall submit to Hasbro the plot/storyline of each episode. 

  

	 	(ii)	Hasbro shall endeavor to return comments to the Producer within two (2) business days after receipt of submission. 

 

	 	(iii)	The Producer shall submit to Hasbro the program synopsis for each episode. 

 

	 	(iv)	Hasbro shall endeavor to return comments to the Producer within two (2) business days after receipt of submission. 

 

	 	(v)	The Producer shall submit to Hasbro the script for each episode. 

  

	 	(vi)	Hasbro shall endeavor to return comments to the Producer within five (5) business days after receipt of submission. 

 

	 	(vii)	The Producer shall create animation and submit all such animation to Hasbro for approval. 

 

	 	(viii)	Hasbro shall have final approval over each episode of the Series. 

  

	(g)	Takara shall ensure that the Producer creates a trailer for the Series of at least two (2) minutes in length, which trailer shall be subject to Hasbro’s
approval and may be used by Hasbro in perpetuity. 

  

	(h)	The Series and the trailer shall be owned jointly by Hasbro and Takara for use, distribution and exhibition by each party in their respective territories, as set forth
in Paragraph (j) below. 

  
 36 

	(i)	Hasbro shall have exclusive worldwide distribution and exhibition rights to the Series, including program and videogram distribution and exhibition, except that Takara
shall have program and videogram distribution and exhibition rights in the following countries: Japan, Korea, Taiwan, Hong Kong, Malaysia, Indonesia, Thailand, Philippines and Singapore. 

 

	(j)	Hasbro shall have exclusive worldwide distribution rights for all toys, games, and computer, video and other types of interactive game products based on the Property
except that Takara shall retain exclusive distribution rights for such products in Japan and exclusive distribution rights for such products other than computer, video and other types of interactive game products in Korea. 

 

	(k)	Hasbro shall have exclusive worldwide distribution rights for all other products based on the Armada Property except that Takara shall retain exclusive distribution
rights for such products in Japan, Korea, Taiwan, Hong Kong, Malaysia, Indonesia, Thailand, Philippines and Singapore. 

  

	5.	Other Provisions 

 All other
provisions of the Agreement shall remain unchanged and in full force and effect. 
  

									
	AGREED TO AND ACCEPTED BY:
			
	TAKARA CO., LTD.	 		 	HASBRO, INC.
					
	By:	 	 /s/ Keita Satoh
	 		 	By:	 	 /s/ Brian Goldner

	Date:	 	7/7/03	 		 	Date:	 	6/5/03
				
		 		 		 	HASBRO INTERNATIONAL, INC.
					
		 		 		 	By:	 	 /s/ Barry Nagler

		 		 		 	Date:	 	6/6/03

  
 37 

 SCHEDULE 1: Budgeted Costs 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 38 

 SCHEDULE 2: Production Schedule 

  
 39 

 SCHEDULE 3 

Programming Objectives 
 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 40 

 SCHEDULE 4: Programming Delivery Schedule 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

  
 41 

 January 11, 1999 
 Takara Co., Ltd. 
 No. 19-16, Aoto 4-chome 

Katsushika-Ku, Tokyo 
 Japan 

Attention: Mr. T. Watabiki 
  

	 	RE:	TRANSFORMERS/ANIMORPHS 

 Dear
Watabiki-san: 
 As you may recall, for quite some time a formal amendment has been pending to confirm the renewal of the
November 1, 1983 Agreement (as previously amended) between Takara Co., Ltd. (formerly known as Takara Toys Corporation) and Hasbro, Inc. (formerly known as Hasbro Industries, Inc.) regarding the use of the Transformers property. In the
meanwhile, additional issues and circumstances have arisen, so I am writing for the purpose of dealing with all such matters at once. 
 As you know, Hasbro, Inc. has entered into a license agreement with Scholastic, Inc. for the right to sell products based on the “Animorphs” property, which involves a group of children
characters that “morph” into animals. It has been agreed that, insofar as Hasbro, Inc. shall market and sell (or shall have marketed and sold) products based on the Animorphs property in conjunction with its Transformers brand and line of
products, Hasbro, Inc. shall pay Takara Co., Ltd. a royalty equal to * * * * * of the Invoice Price of such products (as “Invoice Price” is defined in the Agreement). Such royalty shall be in lieu of any other royalty payable under
the Agreement, but would not be subject to the deduction referenced in Paragraph 7 of the January 1, 1995 Amendment to the Agreement, which was intended to assist Hasbro, Inc. in funding new Transformers animation. 

In addition to the foregoing, it is hereby acknowledged that Hasbro, Inc. has now paid Takara Co., Ltd. more than the requisite minimum
amount of royalties, specified under Paragraph 8 (ii) of the Agreement (as amended under the November 18, 1995 Amendment thereto), so as to guarantee the right of Hasbro, Inc. to a renewal of the Agreement through December 31, 1999.
The parties hereby acknowledge renewal of the Agreement through December 31, 1999. 
 If the foregoing meets with your
understanding of our arrangement, kindly so signify by signing in the space indicated below and on the 2 enclosed copies of this letter amendment and returning all copies to me at the letterhead address for final execution by an officer of Hasbro,
Inc. Once executed, one copy of the signed amendment will be returned to you for your files. 
 Please feel free to contact me
with any questions. 
  

	
	Very truly yours,
	
	 /s/ David D. Dubosky

	David D. Dubosky
	Managing Attorney, Licensing

  
 - 42 -

  

									
	AGREED:
			
	TAKARA CO., LTD	 		 	HASBRO, INC.
					
	BY:	 	 /s/ Yasuta Satoh,
	 		 	By:	 	 /s/ Harold P. Gordon

		 	Yasuta Satoh, Chairman	 		 		 	
					
	Cc:	 	George Dunsay, Total Toys	 		 		 	
		 	Tom McGrath, Hasbro	 		 		 	

  
 - 43 -

 TRANSFORMERS LICENSE AGREEMENT 

Amendment for 1995 and Beyond 
 This is an amendment, effective January 1, 1995, to the License Agreement (hereinafter, “Agreement”) dated November 1, 1993, as subsequently amended, between Takara Co., Ltd.
(hereinafter, “Takara”), on the one hand, and Hasbro, Inc. and Hasbro International, Inc. on the other hand (hereinafter, collectively, “Hasbro”). 
  

	1.	Tooling Ownership. 

Inasmuch as Hasbro shall be primarily responsible for the cost of all tooling, created in calendar year 1995 and in each year of the term
of the Agreement thereafter, for the manufacture of new products within the line of transformable toy robots known collectively as “Transformers”, it is agreed that Hasbro will have full ownership and control of such tooling, in
perpetuity; however, it is understood that any sale of products made with such tooling, whether by Hasbro or a sublicensee, will require the payment of a royalty to Takara, at a rate to be negotiated at that time. 

 

	2.	Takara’s Japanese Sales. 

 It is agreed that Takara shall pay Hasbro a mold use royalty equal to * * * * * of Takara’s Net Sales receipts from sales in Japan of Transformers products (including “Beast Wars”)
in 1996 and thereafter which were made using Hasbro’s tooling. This mold use royalty supersedes and replaces the * * * * * mold use fee referenced in Article 6(3) of the June 20, 1985 Amendment to the Agreement, as well as any other
arrangement for Takara’s reimbursement for Hasbro’s tooling costs. Hasbro will permit Takara to use and have access to Hasbro’s advertising for such products. Such royalties would be paid on a quarterly basis within (30) days of
the end of each calendar quarter, and would be accompanied by a full royalty/sales report. Furthermore, it is expressly agreed that Takara’s use of the Transformers tooling may not interfere in any way with Takara’s ability to fill
Hasbro’s orders for Transformers products on a timely basis and to fully comply with Hasbro’s production schedule and target shipping dates. Hasbro’s orders for such products shall be given first priority, both in the use of the
tooling and production facilities and with respect to raw materials, and any failure to meet such schedules and deadlines due to the failure to give first priority to filling Hasbro’s orders will be deemed material. 

 

	3.	Takara’s Use of Generation 2 Tooling and Advertising. 

 On a one-time basis only, Hasbro will make its 1993, 1994, and 1995 “Generation 2” Transformers tooling and 1994 Transformers advertising available for Takara’s free use in Japan during
calendar year 1995; however, after 1995, any such use would require the payment of a royalty of * * * * * of Takara’s “A” price receipts from sales of such “Generation 2” Transformers products in Japan. 

 

	4.	Staffing. 

 Takara has
agreed to add and maintain internal staffing in order to meet the critical December 1995/January 1996 European/U.S. availability dates for a broad array of products for the Transformers re-launch. 

  
 - 44 -

	5.	Cost Increases. 

 Once
product development has reached the stage known as “Final Takover” (hereinafter, “FTO”), and costing for the products in a given year has been finalized, Hasbro will negotiate with Takara concerning any justified cost increases
imposed by the manufacturing vendors. 
  

	6.	Takara’s Markup. 

 It
is expressly acknowledged that, in addition to it’s royalty revenues, Takara shall have the right to a reasonable markup over the manufacturing costs in its resale of the products to Hasbro, such markup to be * * * * *. Hasbro shall have
access to all vendor cost details and the right to discuss and negotiate concerning such costs with the manufacturing vendors and thereby attempt to lower such costs. 
  

	7.	Funding of New Animation. 

Takara agrees to assist Hasbro in the funding of new Transformers animation. Such funding would be deducted out of royalties earned by
Takara in 1996 and thereafter on all sales in excess of 1995 sales levels, for a total contribution of * * * * * * * * * * * * * * * per episode of animation (for 26 episodes in total), as follows: on all worldwide sales for 1996 and beyond
in excess of final 1995 sales levels, * * * * * of Net Sales receipts would be deducted from royalties earned by Takara on that added sales volume. Such deduction from royalties earned shall continue in each year until total deductions to
assist in such funding equal * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *. In exchange for Takara’s funding assistance, it is agreed that Takara shall receive rights to air and sell copies of such animation (in
any format) in Japan. 
  

	8.	Royalty Clarification. 

It is acknowledged that Hasbro is not liable for royalties on Close Out Sales. “Close Out Sales” shall be defined as * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * *. Furthermore, subject to the deductions specified in Paragraph 7 above, it is understood that the standard royalty for the sale of Transformers products shall be * * * * * of Net Sales receipts.

  

	9.	Sourcing. 

 Takara is and
shall remain the preferred and primary source for all Transformers products. However, in the event that Takara’s quoted price exceeds Hasbro’s target cost, Hasbro will have the right to source that product through an alternate source if
such alternate source can provide the product at a price more than * * * * * below Takara’s quoted price; provided, however, * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * *. 

  
 - 45 -

	10.	Manufacture Approval. 

Hasbro shall have a right of reasonable approval of any vendor engaged by Takara for the manufacture of Transformers products. 

 

	11.	Shipping Delay. 

 It is
understood that, once the on-board-ship date has been agreed upon by the parties at the time of FTO, if Takara, through no fault of Hasbro, is late in shipping the Transformers products, Takara will ship said products at its own expense via such
alternate mode of transportation as necessary to meet Hasbro’s delivery schedule, including shipments via air freight. If shipping delays are due to changes by Hasbro in the products after FTO, or the failure of Hasbro to release to Takara
materials that are critical to production in a timely fashion, a new schedule will then be agreed upon by the parties, and Takara shall not be liable for the expense of such alternate mode of transportation. 

 

	12.	Renewal. 

 It is agreed
that, notwithstanding the level of royalties actually earned by Takara on the sales of Transformers products in 1994 and 1995, the Agreement shall be deemed renewed through December 31, 1996. Furthermore, it is understood that amounts deducted
as funding for animation under Paragraph 7 above shall be included for purposes of calculating whether Hasbro has paid Takara the requisite minimum amount of royalties under Paragraph 8(ii) of the Agreement, as amended under the November 18,
1985 Amendment (i.e., U.S. * * * * * annually), to guarantee its rights to additional annual renewals. 
  

	13.	All other provisions of the Agreement shall remain unchanged and in full force and effect, including but not limited to those provisions provided for future renewals of
the Agreement depending upon sales levels of the Transformers products. The provisions of this Amendment shall survive into any subsequent renewals of the Agreement, except as to provisions which are expressly limited in duration, e.g., the. waiver
of minimum sales levels for renewal through December 31, 1996. 

  

							
	AGREED TO AND ACCEPTED BY:
		
	TAKARA CO., LTD.	  	HASBRO, INC.
				
	By:	  	 /s/ Hirohisa Satoh
	  	By:	  	 /s/ Tom McGrath

	Date:	  	NOV 18 1996	  	Date:	  	12/13/96
		  		  		  	/s/ Dan D. Owen
			
		  		  	HASBRO INTERNATIONAL, INC.
				
		  		  	By:	  	 /s/ Cynthia P. Reed

		  		  	Date:	  	7/1/96

  
 - 46 -

 FURTHER AMENDMENT TO AGREEMENT DATED NOVEMBER 1, 1983 

AS PREVIOUSLY AMENDED THROUGH SEPTEMBER 8, 1991 (“Agreement”) 

BETWEEN TAKARA CO., LTD. (“Takara”) AND 
 HASBRO, INC./HASBRO INTERNATIONAL, INC. (“Hasbro”) 
 EFFECTIVE
AS OF SEPTEMBER 9, 1991 
 The Amendment to the Agreement previously signed between Hasbro and Takara effective as of
September 8, 1991 (“Amendment”) is hereby modified such that Paragraph 3 of the Amendment is deleted and the following inserted in its place: 
 3. Notwithstanding Paragraph 5 of the Agreement dated November 1, 1983, Takara has the right to distribute and sell “Transformer-Type Products” (a) through any company owned and/or
controlled by Takara anywhere in the world, and (b) through third party importers only in Taiwan, Korea, Thailand, Malaysia, Indonesia, Singapore and Hong Kong. 
 All other terms and conditions of the Agreement, as previously amended, shall remain in full force and effect. 
  

							
	TAKARA CO., LTD.	  	HASBRO, INC.
				
	By:	  	 /s/ Hirohisa Satoh
	  	By:	  	 /s/

	Its:	  	Executive Vice President	  	Its:	  	President
			
		  		  	HASBRO INTERNATIONAL, INC.
				
		  		  	By:	  	 /s/ Norman Walker

		  		  	Its:	  	President

  

  
 - 47 -

 AMENDMENT TO AGREEMENT DATED NOVEMBER 1, 1983, 

As Previously Amended (“Agreement”) BETWEEN TAKARA CO., LTD. (“Takara”) 

AND HASBRO, INC./HASBRO INTERNATIONAL, INC. (“Hasbro”) 

EFFECTIVE AS OF SEPTEMBER 8, 1991 
 1. Takara and Hasbro will have an annual meeting (April-May; pre-toy Fair Japan) to discuss “Transformer-Type Products” for coordination between the parties hereto. “Transformer-Type
Products” means * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *. 
 2. As between Takara and Hasbro, Takara has the unlimited right to manufacture, distribute, market and sell toy products that are styled as robots which do not transform, change or convert into other
items throughout the world. 
 3. Notwithstanding Paragraph 5 of the Agreement dated November 1,1983, Takara has the right
to sell “Transformer-Type Products” in Taiwan, Korea, Thailand, Malaysia, Indonesia, Singapore and Hong Kong direct (a) through any company owned wholly by Takara and (b) through third party importers. 

4. (a) At the annual meeting referenced in Paragraph 1 above, Hasbro and Takara will mutually agree which “PRODUCTS” (as
defined in the Agreement) molds will be sent to China. 
 (b) The manufacturing cost for those PRODUCTS manufactured in China
for Hasbro and sold outside China anytime after December 31, 1991 will be invoiced by the Chinese factory to Takara, after which Takara will invoice Hasbro or Hasbro’s designated buyer the same invoice price plus * * * * *. In
respect of such PRODUCTS sold by Hasbro outside China on or before December 31, 1991, Hasbro will pay Takara a royalty of * * * * * of the “Net Sales” (as defined in the Agreement) of such PRODUCTS. 

(c) Once PRODUCT molds are in China, PRODUCTS will be manufactured in the Hasbro joint venture plant for the China market and other world
markets. 
 5. Except as set forth above in Paragraph 4(c), Takara is the exclusive source of “Transformer-Type
Products” for Hasbro. 
 6. The renewal year of the Term commencing November 1, 1990 and ending October 31, 1991
is hereby extended so that the same now ends December 31, 1991. Each renewal year of the Term shall thereafter be on a calendar year basis, commencing January 1 and ending December 31 of each such year. 

7. Except as set forth above, all terms and conditions of the Agreement shall remain in full force and effect. 

  
 - 48 -

 8. The parties hereto shall continue to discuss in good faith the matters which may be
brought up from time to time by other party to modify the Agreement. 
  

							
	TAKARA CO., LTD.	  	HASBRO, INC.
				
	By:	  	 /s/ Hirohisa Satoh
	  	By:	  	 /s/

	Its:	  	Managing Director	  	Its:	  	President
			
		  		  	HASBRO INTERNATIONAL, INC.
				
		  		  	By:	  	 /s/ Norman Walker

		  		  	Its:	  	President

  

  
 - 49 -

 HASBRO, INC. 
 OF THE GENERAL COUNSEL 
 1027 NEWPORT AVENUE 

P.O. BOX 1059 

PAWTUCKET, RHODE ISLAND 02862-1059 U.S.A 
 TELEPHONE (401) 727-5757 
 Fax Number: (401) 727-5089 

Telex Number: (230) 6814168 

VIA FAX 
  

	
	September 28, 1990

 TAKARA CO., LTD. 
 19-16 4-CHOME 
 AOTO Katsushika-ku 
 Tokyo, Japan 125 
 Attention: Yasuta Satoh, President 

 

	RE:	“TRANSFORMERS” 

 Dear
Satoh-san: 
 This letter will serve to confirm that the License Agreement dated November 1, 1983, as amended, between Takara Co., Ltd. and
Hasbro, Inc./Hasbro International, Inc. for the use of the licensed product known as “TRANSFORMERS,” shall be automatically renewed for an additional one year period through November 1, 1991. 

All terms and conditions of the Agreement shall remain in full force and effect. 
 Please feel free to contact me if you have any questions. 
  

	
	Very truly yours,
	
	 /s/ David Dubosky

	David Dubosky
	Counsel

 /anc 

  
 - 50 -

 TAKARA CO., LTD 
 19-16 Chrome Aoto, Katsushika-ku 
 Tokyo, Japan 125 

Phone: (03) 603-2131 
 Telex: J28141
TKARATYO 
 Facs: (03) 603-2180 
  

	
	As of January 1, 1987

 HASBRO, INC. 
 1027 Newport Avenue 
 P.O. Box 1059 
 Pawtucket, RI 02862-1059 
 U.S.A. 

 

	RE:	THE TRANSFORMERS, Letter Amendment 

 Gentlemen:

 This letter will serve to confirm our understanding that the Agreement between Takara Co., Ltd. and Hasbro, inc. dated November 1, 1983,
as amended July 31, 1984, November 18, 1985, and September 1, 1986, regarding THE TRANSFORMERS TOY product line, is amended such that the Sales Territory described in Paragraph 4 of the Agreement is extended to include all
countries of the world, excluding Japan, provided that sales in Italy may be made only through Linea GIG, S.P.A. 
 All other terms and
conditions of the said Agreement shall remain in full force and effect. 
 If the foregoing accurately sets forth your understanding of our
agreement, would you please so signify by signing and returning the enclosed copy of this Letter Amendment. 
  

	
	Sincerely,
	
	TAKARA Co., LTD.
	
	 /s/ Yasuta Satoh

	Yasuta Satoh
	President

  

	
	Agreed to and Accepted:
	
	HASBRO, INC.
	
	 /s/ Donald M. Robbins

	Donald M. Robbins
	Vice President/General Counsel

  
 - 51 -

 CONTINUATION AGREEMENT 

THIS AGREEMENT is made and entered into as of the first day of September, 1986, by and between Takara Co., Ltd., a
corporation organized and existing under the laws of Japan having its principal office at No. 19-16, 4-Chome, Aoto, Katsushika-ku, Tokyo, Japan (hereinafter “Seller”), Hasbro Inc., a corporation organized and existing under the laws
of Rhode island, having its principal office at 1027 Newport Avenue, Pawtucket, Rhode Island 02862, U.S.A. (hereinafter “Buyer”), and Takara Toys Corporation, a corporation organized and existing under the laws of New York, having it
principal office at 200 5th Avenue, New York, New York
(hereinafter “Takara U.S.”). 
 WHEREAS Takara Co., Ltd., Takara Toys Corporation, and Hasbro Industries Inc., (a
predecessor corporation of Hasbro, Inc.) entered into an Agreement for a term of Three (3) years on November 1, 1983, which term subject to the conditions and obligations set forth in that Agreement, and a Supplemental Agreement of
November 18, 1985, would expire on November 1, 1986. 
 WHEREAS Takara U.S. has executed its obligations pursuant to
the terms and conditions of the Agreement and desires to delegate its duties and assign its rights to Seller; 
 WHEREAS Seller
is willing to accept all rights, obligations and responsibilities, if any, of Takara U.S. that are outstanding or are necessary to be performed in the future on any continuation of the Agreement; and 

WHEREAS Buyer and Seller desire to extend the term of the Agreement of November 1, 1983, as modified by the Supplemental Agreement
of November 18, 1985, for an additional year until the first day of November, 1987 on the same outstanding terms and conditions with Takara U.S. released from the Agreement. 

  
 - 52 -

 NOW, THEREFORE, in consideration of the following mutual covenants herein contained, the
parties hereto have agreed and do agree as follows: 
 1. The term of the Agreement of November 1, 1983, as modified by the
Supplemental Agreement of November 18, 1985, extended for a period of one year from November 1, 1986, to November 1, 1987. 
 2. Takara U.S., is hereby removed from the extended term of this Continuation Agreement and all rights and duties, if any, existing now or to have been occurred in the future are hereby assumed in full by
the Seller. 
 3. Buyer hereby acknowledges the release of Takara U.S. from any and all obligations to Buyer and agrees to
accept in substitute the assumption of those rights and the delegations of those duties to the Seller. 
 IN WITNESS WHEREOF,
the respective parties have affixed their signatures hereto as of the date in this Continuation Agreement first above written. 
  

			
	HASBRO INC.
		
	By:	 	 /s/ Alan G. Hassenfeld

	
	TAKARA CO., LTD.
		
	By:	 	 /s/ Yasuta Satoh

	
	TAKARA TOYS CORPRATION
		
	By:	 	 /s/ Yasuta Satoh

 HASBRO, INC. 

  
 - 53 -

 1027 NEWPORT AVENUE 
 P.O. BOX 1059 
 PAWTUCKET, RHODE ISLAND 02862-1059 U.S.A 

TELEPHONE (401) 727-5000 
 TELEX:927-754 
 May 6,
1986                                 

Mr. K. Okano 
 Takara Co., Ltd. 

No. 19-16, 4-chome, Aoto 
 Katsushika-ku

 Tokyo, Japan 
 Dear Okano-san:

 This letter is to confirm the agreement made between Hasbro and Takara as a result of Hasbro’s purchasing the rights to
sell and distribute Transformers in Europe from CEJI. 
 The basis of the acquisition is that Hasbro agreed to pay CEJI * * *
* * * * * * * and has purchased all Diaclone inventory at CEJI’s cost. Takara, in order to help Hasbro defray some of the expenses, has agreed to waive the first * * * * * * * * * * in royalties from the sale of Transformers in
Europe. 
 Should you have any questions concerning the above, or if I can be of further assistance, please let me know.

  

							
		 		 		 	Sincerely yours,
				
		 		 		 	HASBRO, INC.
				
		 		 		 	 /s/ Steven L. Rodyn

		 		 		 	Steven L. Rodyn
		 		 		 	Director of Special Projects
		 		 		 	Office of the President
			
	SLR/sm	 		 	
				
	cc:	 	A. Hassenfeld	 		 	
		 	D. Robbins	 		 	We agree
				
		 		 		 	 /s/ Y. Satoh

		 		 		 	Y.Satoh: President
		 		 		 	Takara Co., Ltd.
		 		 		 	Tokyo.

  
 - 54 -

 A G R E E M E N T 

This Agreement made and entered into this 1st day of January, 1986 by and between TAKARA CO., LTD., a corporation organized and existing under the laws of Japan and
having its principal office at 19-16, 4-chome, Aoto, Katsushika-ku, Tokyo, Japan (hereinafter referred to as TAKARA) and HASBRO INDUSTRIES, INC., a corporation organized and existing under the laws of the State of Rhode Island, having its principal
office at 1027 New Port Avenue, Pawtucket, Rhode Island 02862, U.S.A. (hereinafter referred to as HASBRO), 
 WITNESSETH:

 WHEREAS, TAKARA and HASBRO have entered into an agreement dated the 1st day of November, 1983, as amended, pursuant to which HASBRO has been
granted an exclusive right to sell certain products manufactured by TAKARA (hereinafter referred to as PRODUCTS) in the area provided therein; 

WHEREAS, TAKARA has made molds for the PRODUCTS and HASBRO has borne, wholly or partly, the costs for some of the PRODUCTS; 

WHEREAS, TAKARA and LINEA GIG S.P.A., an Italian corporation (hereinafter referred to as GIG), intend to enter into an agreement under which TAKARA shall
manufacture for and sell to GIG some of the PRODUCTS under the brand “TRANSFORMERS” and/or such other brands as to agreed upon by TAKARA and GIG, such PRODUCTS to be manufactured for and sold to GIG being hereinafter referred to as
GIG-PRODUCTS; and 
 WHEREAS, HASBRO is willing to allow TAKARA to use the molds for the PRODUCTS, for which HASBRO has borne the cost, for the
purpose of manufacture for and sale to GIG the GIG-PRODUCTS under the terms and conditions set forth hereinbelow. 
 NOW, THEREFORE, the parties
hereto agree as follows: 
  

	1.	Subject to the terms and conditions herein contained, TAKARA shall have the right to use the molds for the PRODUCTS listed in Schedule A attached hereto (hereinafter
referred to as MOLDS) for the production and sale of the GIG-PRODUCTS. 

  
 - 55 -

	2.	TAKARA shall exercise due care to prevent any losses or damages to the MOLDS during the term of this Agreement. TAKARA shall report all cases of losses or damages
immediately in writing to HASBRO. 

  

	3.	During the term of this Agreement, TAKARA, at its own expense, shall keep and maintain the MOLDS in a good state of repair, normal wear and tear excepted.

  

	4.	In consideration for the grant to TAKARA by HASBRO of the right to use the MOLDS for the production and sale of the GIG-PRODUCTS, TAKARA shall agree that it shall pay
to HASBRO the sum of * * * * * of TAKARA’s original price, FOB port of the country in which the GIG-PRODUCTS are manufactured, payable in Japanese Yen within one (1) month from the end of each quarter calendar year by means of TT
remittance or bank draft addressed to the bank account designated by HASBRO. In this connection HASBRO shall agree and acknowledge that the price to be charged to GIG by TAKARA shall include the sum equal to * * * * * of TAKARA’s
original price as mentioned above. 

 IN WITNESS WHEREOF, the parties hereunder have caused this Agreement to
be executed by their duly authorized officers as of this
1st day of January, of 1986. 

 

	
	TAKARA CO., LTD.
	
	 /s/ Yasuta Satoh

	Yasuta Satoh
	President
	
	HASBRO INDUSTRIES, INC.
	
	 /s/ Alan G. Hassenfeld

  
 - 56 -

 Schedule “A” 
 All products under the trademark of “TRANSFORMER” which are to be manufactured by Takara and/or its subsidiaries in the Orient except those products that Hasbro shall not allow to sell GIG.

 Territory : ITALY only 

  
 - 57 -

 SUPPLEMENTAL AGREEMENT 

This Supplemental Agreement is made and entered into as of the 18th day of November, 1985, by and between Takara Co., Ltd. (hereinafter “Takara”), Hasbro Inc. (hereinafter
“Hasbro”), formerly known as Hasbro Industries, Inc. and Takara Toys Corporation (hereinafter “Takara N.Y.). 

WHEREAS, the respective parties wish to modify certain terms of the agreement dated November 1, 1983 (hereinafter
“Agreement”) among Takara, Hasbro and Takara N.Y. as follows: 
 a) The Sales Territory of Paragraph 4 of the Agreement
for all the identified Products listed on the Schedule “A” attached to the Agreement and on any other supplemental Schedules signed by the parties hereto and for Products presently being sold pursuant to the Agreement by Hasbro
(hereinafter referred to as “Products”) shall be extended to include all countries of the world including Italy (however, limited to sales only through G.I.G.), France (however, subject to the Compagnie General Du Jouet Agreement of
May 1, 1984) with the exception of: 
  

	 	(1)	Japan 

  

	 	(2)	Korea 

  

	 	(3)	Taiwan 

  

	 	(4)	People’s Republic of China 

The above territories (1) through (4) being reserved to Takara. The territory granted to Hasbro by the Agreement and this
Supplemental Agreement shall be hereinafter referred to as “Territory”. 
 b) Hasbro shall have the right to use,
license and sublicense in the Territory and Takara shall have the right to use, license and sublicense in the territories reserved to Takara under Paragraph a) above, any derivative property right including but not limited to copyrights and
trademarks on the Products and the packaging designs subject to the terms of the Agreement and this Supplemental Agreement. 

  
 - 58 -

 c)(i) The right to license and sublicense shall further include the exclusive right to
license the appearance, design and derivative works of the Products in television, motion pictures, cassettes, discs, sound recordings, printed publications, non-theatrical productions, and merchandise rights and in connection therewith to change,
alter, modify or adopt the Products for such purposes and to obtain copyrights in the results of such modifications in the name of Hasbro or Takara or in the name of any designee of Hasbro or Takara, as the case may be. It is expressly recognized
that the creation of such derivative works from the Products in such medium may provide an advertising advantage for the Products to the respective parties and that Hasbro or Takara, where necessary to secure such advertising advantage, shall have
the right to assign full rights on behalf of Takara in any such medium copyrights to any third party who requires such an assignment as a precondition to the production of such derivative works. Such audio, audiovisual and/or printed medium
copyrights on such derivative works can be assigned for the full life of the copyright registrations regardless of the Term set forth in Paragraph 7 of the Agreement, subject, however, to Hasbro assigning all rights retained by Hasbro, at the date
of any termination of the Agreement, to Takara, except with respect to any agreements entered into prior to such termination with respect to the production and/or distribution of motion pictures, television programs or series and related rights.

 c) (ii) Notwithstanding the Sales Territory exception of Paragraph a) above, Takara agrees to convey to Hasbro the
exclusive right in perpetuity throughout the universe to exhibit any motion pictures in a theatre, on television, by cablecast, by video cassette, video disc, and non-theatrical, subject to Hasbro paying to Takara ***** of the total royalty
and/or profit which Hasbro receives from the distribution of a motion picture in Japan, Republic of China, Korea and Taiwan. To permit Hasbro to negotiate with a third party or parties to produce and exhibit a motion picture, Takara, subject to the
other conditions of this Supplemental Agreement agrees to execute the attached AGREEMENT ON MOVIE RIGHTS, Exhibit A, which is hereby incorporated by reference into this Supplemental Agreement. Pursuant to the Agreement on Movie Rights, Hasbro has
the 

  
 - 59 -

 
exclusive right to retain or assign, in perpetuity throughout the universe, all rights to a movie picture in which production has been contracted for and/or started and/or completed before the
termination of the Agreement (subject to the Territorial obligations and restrictions). 
 d) The television rights (apart from
the right to televise the motion picture, if any) herein set forth shall include without limitation, the exclusive right to produce television programming of any nature and in any format, and to broadcast, distribute and exhibit same by any and all
means and methods, whether now or hereinafter created. With respect to the reserved territories (1) through (4) of Paragraph a), Takara, and not Hasbro, shall have the exclusive right in perpetuity to broadcast, distribute and exhibit
television programming (apart from the right to televise the motion picture, if any) and Hasbro will provide to Takara, free of charge, a copy of the same, and further, Takara has the right to make reproductions of the same for sale for home video
use. Hasbro acknowledges that it is not to receive any additional compensation for the aforesaid. Additionally, Hasbro has the exclusive right to retain ownership, in perpetuity through the universe, to all rights to any television program in which
production had been contracted for and/or started and/or was completed before the termination of the Agreement (subject to the Territorial obligations and restrictions). 
 e) For the sole purposes of licensing the derivative property rights, including the motion picture rights, and Hasbro’s creation of television programming, Takara warrants and represents that it has
sole and exclusive right to enter into this Supplemental Agreement and to grant the rights herein granted, that the Products are its original creation, that Takara is the sole owner of all rights therein, and that Hasbro’s exercise of any
rights granted herein will not violate the rights of any third party, and Takara agrees to defend and indemnify Hasbro, its successors, licensees, sublicensees and assigns, against any and all claims, damages, losses, actions, judgments, liabilities
and expenses (including reasonable counsel fees) arising out of or based on the use by Hasbro or its licensees or sublicensees of any of the rights granted to them herein. 
 f) Takara hereby acknowledges that Hasbro is entering into a license agreement with the Marvel Comics Group (hereinafter “Marvel”) granting Marvel certain rights

  
 - 60 -

 
throughout the world in printed media. Hasbro acknowledges that Marvel shall not be given the right to sell or distribute under such license in the territories reserved to Takara under Paragraph
a) above without Marvel first obtaining Takara’s written permission. 
 g) Takara acknowledges that the revenue from the
commercial exploitation of the derivative property rights of the Products resulting from licenses heretofore granted by Hasbro shall, for the term of those licenses, and subject to the Agreement term, continue to be Hasbro’s revenue.

 h) In consideration of the expansion of the territories granted to Hasbro hereunder, the parties hereto shall agree that the
annual minimum royalty of * * * * * * * * * * as provided in Paragraph 8 (ii) of the Agreement shall be modified to be a minimum royalty of * * * * * * * * * * annually. 

i) Except to the extent expressly provided herein, such as the right to assign or license in perpetuity the rights to a motion picture,
all of the terms and conditions of the Agreement of November 1, 1983, shall remain in full force and effect. 
 j) The
letter agreement dated March 14, 1985 among Hasbro, Takara and Takara N.Y. shall be replaced with this Supplemental Agreement and rendered null and void. 
 k) The effective period of this Supplemental Agreement, except as otherwise provided for herein, shall be coterminous with the effective period of the Agreement. 

 

			
	HASBRO, INC.
		
	By	 	 /s/Alfred J. Verrecchia

	
	TAKARA CO., LTD
		
	By	 	 /s/ Yasuta Satoh

	
	TAKARA TOYS CORPORATION
		
	By	 	 /s/ Yasuta Satoh

  
 - 61 -

 Exhibit A 
 AGREEMENT ON MOVIE RIGHTS 
 WHEREAS, Takara Co.,
Ltd. (hereinafter “Takara”) and Hasbro Inc. (hereinafter “Hasbro”) wish to authorize Hasbro to be the sole negotiator and authority for the production and exhibition of a motion picture based on the licensed TRANSFORMER
characters in accordance with the following: 
 1) The term “Property” as used herein shall mean the following:

 a) The names, titles, characterizations, literary descriptions, artwork and all size representations of all of the characters
comprising the line of toys created or manufactured and exploited by Takara and/or Hasbro, their respective affiliates, licensees and agents, known as “TRANSFORMER and all other TRANSFORMER characters” which have heretofore or may
hereafter be developed by Takara and/or Hasbro, their respective affiliates, licensees and agents. 
 b) The names, titles,
characterizations, literary descriptions, artwork and all size representations of all fictional locations, fictional conveyances and other devices depicted, contained in and/or relating to the TRANSFORMER line of toys referred to in (a) above.

 c) All literary, dramatic, photographic, artwork and physical replications, descriptions and other material relating to the
foregoing, and the themes, plots, situations, sequences, pictorial action, dialogue lines, sketches, figurines, models, replicas etc., contained in such line of toys and related materials and any future versions or adaptations thereof. 

  
 - 62 -

 2. Takara hereby grants to Hasbro, solely, and exclusively the following rights: 

a) To make or to authorize other to make motion picture versions, or adaptations, of the Property, or any part thereof, and to produce
one or more silent, sound and talking dialogue and/or musical motion pictures (which term shall include reproduction by video recordings) (including, without limitation, remakes, sequels, serials and series of two (2) or more episodes) of any
type now known or hereafter to be known of any length, whether shown in one or more parts, based upon or adapted in whole or in part from the Property, or any part thereof, or any versions or adaptations (all such motion pictures, photoplays,
versions or adaptations being hereinafter included and embraced in the expression “motion picture versions”), said right shall include the right to license or assign in perpetuity throughout the universe the full rights to any motion
picture versions to any third party; 
 b) To adapt, use, dramatize, arrange, change, vary, modify, alter, transpose and make
musical and non-musical motion picture versions of the Property, or any part thereof, and to add to, interpolate in and subtract or omit from the Property characters, language, plot, theme, scenes, incidents, situations, action, titles, dialogue,
songs, music and lyrics and to translate any of the foregoing into all languages; to include in such motion pictures and sound records such language, speech, songs, music, lyrics, dancing, choreography, sound, sound effects, action, situations,
scenes, plot, dialogue, incidents, characters, characterizations, and other material whether or not based upon, or taken from, the Property and/or in conjunction with all or any part of any other work, writings or other materials, or otherwise, as
Hasbro or its nominee in its uncontrolled discretion may deem advisable, it being the intention hereof that Hasbro shall have the exclusive, absolute and unlimited right to use the Property, and each and every part thereof, for motion picture
purposes in any manner it may, in its uncontrolled discretion, deem advisable with the same force and effect as though Hasbro were the sole author of the Property, specifically including, without limitation, the right to represent

  
 - 63 -

 
and portray any of the characters (including their names, mannerisms, habits, gestures, characterizations, and turns of phrases), situations, bits of business, gags, routines, buildings, locales,
backgrounds, dialogue, animals, props, sets, costumes, drawings, designs, photographs, pictures, choreography and all other parts, elements and components contained in the Property, or in any motion picture version or adaptation thereof, in motion
pictures, as sequels or otherwise (including serials of two or more episodes), all without in any way being further accountable or liable to Takara for any use which Hasbro or its nominee may make thereof for any of the uses or purposes aforesaid,
and Takara hereby waives the benefits of any provision of law or right known as “droit moral”, or any similar laws, and agrees not to institute, support, maintain or authorize any action or lawsuit on the ground that any motion pictures or
sound records produced therefrom authorized by this Agreement in any way constitutes any infringement or violation of any law or right such as “droit moral” or a defamation or mutilation of any part thereof, or that Hasbro’s use
constitutes or contains unauthorized variations, alterations, modifications, changes or translations; 
 c) To interpolate in
any motion picture songs, lyrics and music of all kinds; to set to music any verse, lyric, prose or part or parts of the Property and any characters thereof, and to use, print, reprint, publish, copy and record by any means and/or method, and sell,
license or otherwise exploit any such copy of such music and lyrics or versions or vend such song, music and/or lyrics on any and all reproducing devices now or hereafter known (whether on film, magnetic tape, wire, records or other devices of any
kind and whether now or hereafter known) and to perform (for profit or non-profit), arrange, adapt and exploit same throughout the universe and to secure copyright therein everywhere in Hasbro’s name or otherwise, and to use, superimpose and/or
photograph lines, scenes, excerpts from or translations of, the title, subtitles, text and dialogue of any motion picture version. 

  
 - 64 -

 d) To advertise and publicize the title or titles thereof, and all motion picture versions
and records and other adaptations and versions, in any manner and through any mediums that Hasbro may desire and, for the purpose thereof, to make, publish and copyright, or cause to be made, published and copyrighted, in any and all languages and
in such form as Hasbro may deem advisable, including publication in newspapers, fan magazines, trade periodicals, novelizations, fictionalizations, novels, books, synopsis, summaries, resumes and stories of any such motion picture versions or
adaptations, and to use excerpts from, and resumes and summaries of, the Property with or without illustrations, in heralds, programs, booklets, papers, lobby displays, press books, newspapers, magazines and other periodicals, adapted from or
suggested by any motion picture versions made pursuant hereto, commercial and all other tie-ups and all other media of advertising and publicity whatsoever, and to copyright the same in the name of Hasbro or its nominees; 

e) To produce, issue, reproduce, make, remake, reissue, distribute, exhibit, transmit, project, perform, televise, cablecast, sell,
lease, rent, license, exploit, turn to account, dispose of and generally deal in and with, in any other manner or by any method whatsoever, in any and all media, whether now known or hereafter devised, one or more motion picture versions based in
whole or in part on the Property, and trailers in connection therewith, including negatives, sound records, positive prints, cassettes and discs and other records thereof, of any size, color or type and any and all by-products of any thereof, in any
and all parts of the universe, and to import and export any thereof, or copies thereof, into or out of any place, country or territory without limitation or restriction; 
 f) To make, publish, copy, vend, license and otherwise use in any manner that Hasbro or its nominee may desire, disc or other sound records, sound on film, cassettes and any and all other mechanical,
electrical and any other contrivances or devices of any nature whatsoever, for the recordation 

  
 - 65 -

 
and rerecordation of the sound, talking, musical, and any and all other audible portions of the soundtrack of the motion picture based on said Property and any adaptations or versions thereof,
and any motion picture versions, or any parts of any of the foregoing, and for the reproduction, transmission, projection and/or performance of any or all such sounds separately or as part of or incidental to or in synchronization with the
exhibition or performance thereof, whether such contrivances or devices are now known or are hereafter known, invented or devised; 
 g) To broadcast by means of television and radio or any process analogous thereto, whether now known or hereafter devised, all or any part of the motion picture versions including any announcements of or
concerning said motion picture accomplished through the use of living actors performing simultaneously with such broadcast or transmission. 
 h) To use the title, titles, names and/or logos by which the Property and the elements of the Property may be now or hereafter known, or any components of any such title or titles and/or logos (i) as
the title or titles and/or logos of motion pictures and in connection with the advertising and exploitation thereof, whether such motion pictures are based in whole or in part on the Property or are independent of the Property and (ii) to use
such title or titles and/or logos or any components of the same in connection with songs, musical compositions, music or lyrics included in any such motion picture, and in connection with the publication recordation, performance and any other use
whatsoever of any thereof, or (iii) to use different titles as the title of such motion pictures; 
 i) To secure copyright
and renewals and extensions thereof (or equivalent protections) in all parts of the universe for such motion picture versions, and any sound records, soundtracks, or recordings in connection therewith, in all places and countries of the world under
any now existing or hereafter created laws, regulations or rules, in the name of Hasbro or any other person, firm or corporation; 

  
 - 66 -

 j) To secure all rights to dramatize, produce and present dramatic versions of the Property
on the Spoken Stage with the actors appearing and speaking their respective lines in the immediate presence of the audience; and 
 k) To write and prepare screenplays, teleplays, treatments, story boards, plans, specifications and designs for motion pictures and sound records produced hereunder, and to cause musical compositions
including both original music and words and music outlining or based upon or adapted from all or any part of the Property of any title or titles thereof to be written and composed in motion pictures and sound records produced hereunder and in all
other media. 
 3) All rights granted Hasbro under this Agreement shall be cumulative, and Hasbro may exercise or refrain from
exercising any one or more of said rights separately or simultaneously or in connection with any other rights granted to Hasbro hereunder or obtained by Hasbro from other sources, and regardless of whether said rights are granted in the disjunctive
or conjunctive. 
 4) All motion pictures produced hereunder and all elements contained therein, and the literary, dramatic and
musical material upon which any of the foregoing are based, and all copyrights and renewals with respect thereto, shall be owned by Hasbro and any third party designated by Hasbro, if any, in perpetuity throughout the universe. 

 

									
		 		 		  		 	HASBRO, INC.
					
	Date:	 		 		  	By	 	 /s/ Alfred J. Verrecchia

					
		 		 		  		 	TAKARA CO., LTD.
					
	Date:	 		 		  	By	 	 /s/ Yasuta Satoh

  
 - 67 -

 AGREEMENT 
 This Agreement made and entered into on June 20, 1985 by Takara Co., Ltd. with its office at No. 19-16, Aoto 4-chome, Katsushika-ku, Tokyo 125, Japan (“Takara”) and Hasbro, Inc. with
its office at 1027 Newport Avenue, Pawtuket, Rhode Island 02862, U. S. A. (“Hasbro”). 
 WITNESSETH: 

WHEREAS, Takara is manufacturing, among others, certain toy products for the sale of Hasbro under the trademark ‘TRANSFORMER” (such products
collectively “Transformers”), 
 WHEREAS, Takara has started selling the Transformers in Japan, 

WHEREAS, the costs of the molds being used by Takara for manufacture of the Transformers are and will continue to be borne by Hasbro, and 

WHEREAS, Takara offers to Hasbro to share certain costs of the molds to manufacture the Transformers in view of the fact that Takara will continue the
sale of the Transformers in Japan. 
 NOW, THEREFORE, in consideration of the mutual covenants and premises contained herein the parties shall
hereby agree as follows: 
  

	Article 1.	Definition 

 “Molds” shall mean
such molds and tools as to be used by Takara for manufacture of the Transformers for the sale to Hasbro, the costs thereof being initially borne by Hasbro. 
  

	Article 2.	Payment for Molds 

 The half portion of
the costs and expenses for the Molds manufactured or obtained by Takara shall be paid from Hasbro to Takara upon replacement of order to manufacture the Molds, and the other half portion of the costs and expenses for the Molds manufactured or
obtained by Takara shall be paid from Hasbro to Takara upon completion of the manufacture of the Molds. 

  
 - 68 -

	Article 3.	Maintenance of Molds 

 Takara shall keep
the Molds in good custody until the durable periods of the respective Molds expire and shall be responsible for the losses and damages caused by fire, theft and other causes attributable to Takara before the expiration of the durable periods.

  

	Article 4.	Ownership of Molds 

 The ownerships of the
Molds shall belong to Hasbro, and Hasbro shall transfer the ownership of the Molds to Takara by written request of Takara upon termination of the AGREEMENT between the parties hereto dated November 1, 1983. 

 

	Article 5.	Removal of Molds 

 Neither party hereto
shall move the molds out of Japan without the prior consent of the other party. 
  

	Article 6.	Payment by Takara for Molds 

  

	(1)	Takara shall hereby agree to pay to Hasbro the amount of * * * * * as the compensation for use of the Molds for the manufacture of such Transformers as listed in
the Exhibit A attached hereto and as to be sold in Japan, such amount being payable as follows: 

  

			
	Upon execution of this Agreement	  	* * * * *
		
	By the end of May, 1986	  	* * * * *

  

	(2)	Takara shall hereby agree to pay to Hasbro the amount of money equal to * * * * * of the total costs and expenses borne by Hasbro for the manufacture of the
Molds to be used for manufacture of such Transformers as listed in the Exhibit B attached hereto, such payment being as the compensation for use by Takara of the Molds for the sale by Takara of such Transformers in Japan and payable as follows:

 By the end of each May, August and November, 1986 and February, 1987 one fourth of * * * * *
of the said total costs and expenses borne by Hasbro 
  

	(3)	Takara shall hereby agree to pay to Hasbro the amount of money equal to * * * * * of the total costs and expenses borne by Hasbro for the manufacture of the
Molds to be used for manufacture of such Transformers as to be added based on the mutual agreement by the parties hereto, such payment being as the compensation for use by Takara of the Molds for the sale by Takara of such Transformers in Japan and
payable by four equal installments with sixty (60) days from the end of March, June, September and December. 

  
 - 69 -

	Article 7.	Use of Molds by Takara 

  

	 	(1)	Takara shall have the right to use the Molds referred to in Article 6 hereof for the purpose of manufacture of the Transformers to be sold by Takara in Japan.

  

	 	(2)	The parties hereto shall from time to time discuss and decide the number of the Transformers to be sold to Hasbro and those to be sold by Takara in Japan.

  

	Article 8.	Period 

 The period of validity of
this Agreement shall be coterminous with the period of the AGREEMENT between the parties hereto dated November 1, 1983. 
 IN WITNESS
WHEREOF, the parties hereto shall have caused this Agreement to be executed by their duly authorized respective representatives on the day first above written. 
  

									
	Takara Co., Ltd.	  		 	Hasbro, Inc.
					
	By	  	 /s/ Yasuta Satoh
	  		 	By	  	 /s/ Alan G. Hassenfeld

  
 - 70 -

					
	Exhibit A
			
	 Item Number
	  	 Item
	  	  
	5753	  	HOUND	  	
			
	5760	  	WHEEL JACK	  	
			
	5751	  	SUN STREAKER	  	
			
	5755	  	BLUE STREAK	  	
			
	5756	  	PROWL	  	
			
	5701	  	BUMBLEBEE	  	
			
	5704	  	WIND CHARGER	  	
			
	5702	  	CLIFF JUMPER	  	
			
	5706	  	GEAPS	  	
			
	5703	  	HUFFER	  	
			
	5732	  	FRENZY	  	
			
	5731	  	RAVAGE	  	
			
	5732	  	LASERBEAK	  	
			
	5781	  	STAR SCREAM	  	
			
	5783	  	SKY WARP	  	
		
	5782	  	THANDER CRACKER
		
	5761	  	TRAIL BREAKER
			
	5919	  	LONG HAUL	  	
			
	5917	  	SCRAPPER	  	
			
	5918	  	HOOK	  	
			
	5920	  	MIXMASTER	  	
			
	5916	  	SCAVENGER	  	
			
	5915	  	BONE CRUSHER	  	
			
	5953	  	SMOKE SCREEN	  	
			
	5955	  	HOIST	  	
			
	5796	  	OPTIMUS PRIME	  	

  
 - 71 -

							
	Exhibit B	    	
				
	 Takara Number
	  	 Item Number
	    	 Item
	    	  
	C-56	  	5711	    	BUMBLEBEE
				
	C-57	  	“	    	HUBCAP	    	
				
	C-58	  	“	    	SWERVE	    	
				
	C-59	  	“	    	OUTBREAK	    	
				
	C-60	  	“	    	PIPES	    	
				
	C-61	  	“	    	TAILGATE	    	
			
	C-62	  	“	    	POWERGLODE
			
	C-63	  	“	    	BEACHCOMBER
			
	C-64	  	“	    	SEASPRAY
				
	C-67	  	5733	    	STEEL JAW	    	
				
	C-68	  	“	    	RAMHORN	    	
				
	C-65	  	“	    	REWIND	    	
				
	C-66	  	“	    	EJECT	    	
				
	D-58	  	“	    	FRENZY	    	
				
	D-59	  	“	    	RAVAGE	    	
				
	D-60	  	“	    	LASERBEAK	    	
				
	D-61	  	“	    	RATBAT	    	
			
	C-69	  	5795	    	ULTRAMAGNUS
				
	D-62	  	5794	    	CALVATRON	    	
			
	C-70	  	5791	    	METROPLEX
			
	D-63	  	5803	    	DINOSAURCITY
				
	C-71	  	5818	    		    	
				
	C-72	  	“	    		    	
				
	C-73	  	“	    		    	
				
	C-74	  	“	    		    	

  
 - 72 -

					
			
	C-75	  	“	    	
			
	C-76	  	“	    	
			
	D-64	  	5817	    	
			
	D-65	  	“	    	
			
	D-66	  	“	    	
			
	D-67	  	“	    	
			
	D-68	  	“	    	
			
	D-69	  	“	    	
			
		  	5726	    	BATTLE CHARGER
			
		  	5943	    	747 JET-TANKER TRUCK
			
		  	5941	    	COPTER-BUGGY
			
		  	5942	    	AIRCRAFT CARRIER-JET
			
		  	5819	    	ANIMAL ROBOT GIFT SET

  
 - 73 -

 HASBRO BRADLEY, INC. 

1027 NEWPOT AVENUE 
 P.O. BOX 1059 
 PAWTUCKET, RHODE ISLAND 02862-1059 U.S.A. 

March 14, 1985 
 Takara Co.,
Ltd. 
 No. 19-16 Aoto 4-chome 

Katsushika-ku 
 Tokyo, Japan 

Genetlemen: 
 Reference is made to the
agreement dated November 1, 1983 among you, Takara Co., Ltd., (“Takara”), Hasbro Industries, Inc. (now known as Hasbro Bradley,Inc. and hereinafter referred to as “Hasbro”, and Takara Toys Corporation, relating to the
manufacture and sale of certain toy products (the “Products”) as more fully set forth and defined in said agreement (the “Agreement”). It is our understanding that you hereby agree to modify the sales Territory of Paragraph 4 to
extend it and permit Hasbro to sell the Products through out the world including Italy (however limited to sales only through G.I.G.) and with the exception of: 
  

	 	(1)	Japan 

  

	 	(2)	Korea 

  

	 	(3)	Taiwan 

  

	 	(4)	People Republic of China 

  

	 	(5)	Hong Kong 

  

	 	(6)	Singapore 

 The above territory (1) through
(6) being reserved to Takara. 
 Please signify your agreement that Hasbro’s territory has now been expanded to the entire world, by
signing and returning the enclosed copy of this letter to my attention. 
 In all other aspects, all of the other terms and conditions of the
said Agreement shall remain in full force and effect. 
  

			
	Very truly yours,
	
	HASBRO BRADLEY, INC.
	
	/s/ Donald M. Robbins
	Donald M. Robbins
	Vice President/General Counsel
	
	DMR/mw
	ACCEPTED AND AGREED TO:
	
	TAKARA CO.,, LTD.
		
	By	 	 /s/ Yasuta Satoh

	
	ACCEPTED AND AGREED TO
	INSOFAR AS TO MY BE CONCERNED:

  
 - 74 -

 As of July 31, 1984 

Hasbro Industries, Inc. 
 1027 Newport Avenue,

 Pawtucket, Rhode Island 02862 

Gentlemen: 
 Reference is made
to the agreement (the “Agreement”), dated as of November 1, 1983, between you and the undersigned. The terms used herein and not otherwise defined are used as defined in the Agreement. In order to more accurately reflect the relative
contributions of Takara Co., Ltd. and Takara Toys Corporation in the implementation of the Agreement and to reflect the fact that Takara Co., Ltd.’s involvement has been far more than originally anticipated while Takara Toys Corporation’s
involvement has been far less than originally anticipated, the parties agree to clarify and/or modify the Agreement as follows: 

1. Effective as of August 1, 1984, the royalties payable by Hasbro Industries, Inc. or its subsidiary or affiliated companies
pursuant to paragraph 8 of the Agreement shall, from and after the date hereof, be paid in the following amounts and manner: (i) 90% of all royalty payments under the Agreement (including within such 90% all payments from any subsidiary or
affiliate of Hasbro Industries, Inc. outside the United States) shall be paid directly by Hasbro Industries, Inc. or it subsidiary or affiliate, as the case may be, to Takara Co., Ltd. at its offices at No. 19-16, Aoto 4-chome, Katsushika-ku,
Tokyo, Japan, and (ii) 10% of such royalty payments due under the Agreement shall be paid directly to Takara Toys Corporation at its office at 200 Fifth Avenue, New York, New York, at the times and in the manner specified in the Agreement,
subject to applicable with-holding tax requirements, if any, provided that Hasbro Industries, Inc. shall provide to Takara Co., Ltd. a valid original U.S. government or other foreign government, as the case may be, tax receipt showing the amount of
such taxes withheld. 
 2. In order to conform the Agreement to the present and prospective actual relative involvement of
Takara Co., Ltd. and Takara Toys Corporation in the performance of their obligations under the Agreement, we agree that the following amendments are to be effective as of August 1, 1984 with respect to the Agreement: 

 

	 	(a)	Paragraph 1 of the Agreement is amended to insert immediately before the words “Takara U.S.” wherever such words appear in such paragraph, the words
“Seller and”: 

  

	 	(b)	Paragraph 8(i) of the Agreement (line 1) is amended to delete the first line thereof and to substitute in its place the words “Buyer shall pay to Seller and Takara
U.S. in the proportions agreed upon a Royalty Rate”: 

  

	 	(c)	Paragraph 8(i) of the Agreement (except the first line) is amended to substitute for the words “Takara U.S.” wherever they may appear, the words “Seller
or Takara U.S., as the case may be”: 

  
 - 75 -

	 	(d)	Paragraph 8(i) of the Agreement is amended to delete on the fifth line the words “Takara U.S.” and to substitute therefor the word “Seller”:

  

	 	(e)	Pragraph 9 of the Agreement is amended to delete the first three lines thereof and to substitute therefor the words “Royalty payments shall be made in the
proportions agreed upon in this Agreement to Seller at No.19-16, Aoto 4-chome, Katsushika-ku, Tokyo, Japan, and to Takara U.S. at the offices of such subsidiary at 200 Fifth Avenue, New York, New York, or in any other way”:

  

	 	(f)	Paragraph 10 of the Agreement is amended to insert on the third line thereof after the “furnish” and before the words “Takara U.S.” the words
Seller” and ” ; and 

  

	 	(g)	Paragraph 11 of the Agreement is amended to insert immediately before the words “Takara U.S.” wherever they may appear, the words “Seller or”.

 3. Except as set forth above, the parties hereto hereby reconfirm the Agreement, which shall otherwise remain
in full force and effect in accordance with its terms. 
 If the foregoing satisfactorily sets forth our agreement, would you
please sign the enclosed extra copy of this letter in the space provided below and return it to the undersigned. Thank you very much. 
  

									
		  		 	Very truly yours,
			
		  		 	TAKARA CO., LTD.
				
	ACCEPTED AND AGREED TO AS OF	  		 	By	 	 /s/ Yasuto Satoh

				
	THE DATE SET FORTH ABOVE:	  		 		 	
			
	HASBRO INDUSTRIES, INC.	  		 	TAKARA TOYS CORPORATION
	Now known as	  		 		 	
	HASBRO BRADLEY, INC.	  		 		 	
					
	By	  	 /s/ Alfred J. Verrecchia
	  		 	By	 	 /s/

  
 - 76 -

 ASSIGNMENT 

WHEREAS, TAKARA CO. LTD., a Japanese company having a principal place of business at No. 19-16, 4-Chome, Aoto Katsushika-ku,
Tokyo, Japan (hereinafter TAKARA), warrants and represents that it is the owner and author of various sculptural designs relating to vehicles, weapons and cassettes which are convertible into robots (hereinafter the DESIGNS), some of which DESIGNS
are listed and identified on attached Schedule A; 
 WHEREAS, HASBRO INDUSTRIES, INC., a Rhode Island corporation having
a principal place of business at 1027 Newport Avenue, Pawtucket, Rhode Island U.S.A. (hereinafter HASBRO), is purchasing the DESIGNS from TAKARA and has exclusive rights to the distribution and sale of the DESIGNS in the United States of America,
Canada and the United Kingdom; and 
 WHEREAS, HASBRO is desirous of acquiring all right, title and interest in and to
any copyrights on the DESIGNS for the United State of America, including the right to apply for and own copyrights subject to the Agreement of November 1, 1983; 
 NOW, THEREFORE, for one dollar and other good and valuable consideration, receipt of which is hereby acknowledged, TAKARA does hereby sell, assign, transfer and set over to HASBRO the entire right,
title and interest to any copyrights on the DESIGNS for the United States of America, including the right to apply for, at its own expense, and own copyrights thereon in those countries for a term of three (3) years subject to the terms of the
Agreement of November 1, 1983, at the conclusion of which, unless renewed for additional terms by mutual consent, HASBRO agrees to assign back to TAKARA, free of any charge, all of the rights assigned herein, including any copyrights covering
said rights that may be issued. TAKARA agrees to sign, or cause to be signed, free of charge, any additional documents reasonably necessary to permit HASBRO to apply for and own copyrights covering the DESIGNS in the United States of America.

  

									
		  		 		 	TAKARA CO. LTD.
					
		  		 		 	By:	 	 /s/ Yasuta Satoh

	Dated:	  	June 21, 1984	 		 	Title:	 	President

  
 - 77 -

									
		  		 		 	HASBRO INDUSTRIES, INC.
					
		  		 		 	By:	 	 /s/ Donald M. Robbins

	Dated:	  		 		 	Title:	 	General Counsel

  
 - 78 -

 S C H E D U L E A* 

 

					
		  	BLUESTREAK	  	
		  	BRAWN	  	
		  	BUMBLEBEE	  	
		  	BUZZSAW	  	
		  	CLIFFJUMPER	  	
		  	FRENZY	  	
		  	GEARS	  	
		  	HOUND	  	
		  	HUFFER	  	
		  	IRONHIDE	  	
		  	JAZZ	  	
		  	LASERBEAK	  	
		  	MEGATRON	  	
		  	MIRAGE	  	
		  	OPTIMUS PRIME	  	
		  	PROWL	  	
		  	RATCHET	  	
		  	RAVAGE	  	
		  	RUMBLE	  	
		  	SIDESWIPE	  	
		  	SKYWARP	  	
		  	SOUNDWAVE	  	
		  	STARSCREAM	  	
		  	SUNSTREAKER	  	
		  	THUNDERCRACKER	  	
		  	TRAILBREAKER	  	
		  	WHEELJACK	  	
		  	WINDCHARGER	  	

  

	*	The designs listed in the schedule are illustrated on pages 64-71 of Hasbro’s 1984 catalog under the name and trademark THE TRANSFORMER. 

  
 79 

 S C H E D U L E A* 

 

					
	 Title of Work
	  	 	  	 Copyright Registrations

	 #5755 ROBOT; #5755 CAR
	  	BLUESTREAK	  	VA 170-142; 170-143; 7/16/84
	 #5705 TRUCK; #5705 ROBOT
	  	BRAWN	  	VA 170-123; 170-124; 7/16/84
	 #5701 ROBOT; #5701 CAR
	  	BUMBLEBEE	  	VA 170-152; 170-153; 7/16/84
	 #5732 CONDOR
	  	BUZZSAW	  	VA 170-131; 7/16/84
	 #5702 CAR; #5702 ROBOT
	  	CLIFFJUMPER	  	VA 170-145; 170-146; 7/16/84
	 #5732 ROBOT
	  	FRENZY1	  	VA 170-129; 7/16/841
	 #5706 TRUCK; #5706 ROBOT
	  	GEARS	  	VA 170-148; 170-149; 7/16/84
	 #5753 ROBOT; #5753 CAR
	  	HOUND	  	VA 170-137; 170-138; 7/16/84
	 #5703 ROBOT; #5703 TRUCK
	  	HUFFER	  	VA 170-154; 170-155; 7/16/84
	 #5758 VAN; #5758 ROBOT
	  	IRONHIDE	  	VA 156-841; 156-842; 7/12/84
	 #5757 ROBOT; #5757 CAR
	  	JAZZ	  	VA 170-127; 170-128 7/16/84
	 #5732 CASSETTE (Condor)
	  	LASERBEAK	  	VA 170-132; 7/16/84
	 #5793 ROBOT; #5793 GUN
	  	MEGATRON	  	VA 156-843; 156-844; 7/12/84
	 #5754 CAR; #5754 ROBOT
	  	MIRAGE	  	VA 156-856; 156-857; 7/12/84
	 #5796 TRUCK; #5796 ROBOT
	  	OPTIMUS PRIME	  	VA 156-837; 156;838; 7/12/84
	 #5756 CAR; #5756 ROBOT
	  	PROWL	  	VA 156-849; 156-852; 7/12/84
	 #5759 ROBOT; #5759 VAN
	  	RATCHET	  	VA 170-125; 170-126; 7/16/84
	 #5731 JAGUAR
	  	RAVAGE2	  	VA 170-135; 7/16/842
	 #5731 ROBOT
	  	RUMBLE3	  	VA 170-133; 7/16/843
	 #5752 CAR; #5752 ROBOT
	  	SIDESWIPE	  	VA 170-121; 170-122; 7/16/84
	 #5783 PLANE #5783 ROBOT
	  	SKYWARP	  	VA 170-150; 170-151; 7/16/84
	 #5790 ROBOT
	  	SOUNDWAVE	  	VA 156-845; 7/12/84
	 #5781 PLANE; #5781 ROBOT
	  	STARSCREAM	  	VA 156-836; 156-855; 7/12/84
	 #5751 ROBOT; #5751 CAR
	  	SUNSTREAKER	  	VA 170-139; 170-158; 7/16/84
		  	THUNDERCRACKER	  	
	 #5761 TRUCK; #5761 ROBOT
	  	TRAILBREAKER	  	VA 170-120; 170-159; 7/16/84
	 #5760 ROBOT; #5760 CAR
	  	WHEELJACK	  	VA 170-140; 170-141; 7/16/84
	 #5704 CAR; #5704 ROBOT
	  	WINDCHARGER	  	VA 170-144; 170-147; 7/16/84

  

					
	
1         and #5732 CASSETTE (Robot)
	  		  	VA 170-130; 7/16/84
	
2         and #5731 CASSETTE (Jaguar)
	  		  	VA 170-136; 7/16/84
	
3         and #5731 CASSETTE (ROBOT)
	  		  	VA 170-134; 7/16/84

  
 80 

 AGREEMENT 

This Agreement is made and entered into as of the 1st day of November, 1983, by and between TAKARA CO., LTD., a corporation organized and existing under the laws of Japan,
having its principal office at No. 19-16, Aoto 4-chome, Katsushika-ku, Tokyo, Japan (hereinafter called “Seller”), HASBRO INDUSTRIES, INC., a corporation organized and existing under the laws of Rhode Island, having its principal
office at 1027 Newport Avenue, Pawtucket, Rhode Island 02862, U.S.A.(hereinafter called “Buyer”) and TAKARA TOYS CORPORATION, a corporation organized and existing under the laws of New York, having its principal office at 200 5th Avenue,
New York, New York (hereinafter called “Takara U.S.”). 
 PREMISES OF AGREEMENT: 

WHEREAS, Takara U.S. has the exclusive right to sell certain toys, such as, but not limited to, robotic toys convertible into the
form of separate toy configurations, and began the marketing and sale of such toys in North America; 
 WHEREAS, Buyer
desires to have the exclusive sales rights of Takara U.S. and to have the assistance of Takara U.S. in transferring all sales leads and sales inquiries to Buyer; 
 WHEREAS, Takara U.S. is agreeable to transfer their exclusive sales rights in return for a royalty payment; 
 WHEREAS, Buyer desires to purchase and/or license certain toys defined hereinafter as “PRODUCTS” in Schedule “A” and to have the opportunity to review future Products of Seller;

 WHEREAS, Seller wishes to sell and license the right to manufacture and sell the PRODUCTS for sale within the
Territory defined herein to Buyer; 
 WHEREAS, the respective parties wish to establish a foundation for developing a
working relationship for their mutual benefit in the future; 

  
 81 

 NOW, THEREFORE, in consideration of the following mutual covenants herein contained,
the parties hereto have agreed and do agree as follows: 
  

	1.	Release of Exclusive Sales Territory 

Takara U.S. hereby agrees to release its rights to sell the PRODUCTS in North America subject to the fulfillment of any pending sales orders presently
outstanding on the PRODUCTS. Takara U.S. further agrees not to solicit directly and/or indirectly any future orders for the PRODUCTS and to assist Buyer by transferring (1) its present customer list for the PRODUCTS, (2) all future sales
leads, and (3) future sales inquiries for the PRODUCTS to Buyer. Takara U.S., subject to any outstanding warranties to replace defective PRODUCTS previously sold and to fill any outstanding contractual commitments to deliver PRODUCTS, hereby
agrees to cease every and all sales activities relating to the PRODUCTS in return for the royalty payments of Paragraph 8. 
  

	2.	Sale of Products 

 Seller agrees to make
available for exclusive sale within the Territory and Buyer agrees to buy certain Products to be manufactured by Seller as listed on the Schedule “A” attached hereto. By mutual agreement in writing and executed by each party, additional
present and future Products may be added on Supplemental Schedules during the term of this Agreement and any extension thereof. Any individual sale agreements (hereinafter called “Purchase Contract”) made by the parties hereto, based on an
order placed with Seller by Buyer, shall be subject to the terms and conditions of this Agreement. 
  

	3.	License of Products 

 Seller hereby grants
to Buyer the exclusive right to sell the Products listed on Schedule “A” and any Supplemental Schedule within the Sales Territory. Buyer is further granted the right to manufacture or subcontract the manufacturing at any location which
shall not be limited to the Sales Territory. Seller’s grant herein will include the rights under any patents and/or copyrights, if any, on the Products existing within the Territory. 

 

	4.	Sales Territory 

 The Territory for the
importation, distribution and sale of the PRODUCTS shall be exclusive to Buyer and limited to the United States of America and its possessions, Canada, United Kingdom of Great Britain and the Republic of Ireland. While Buyer may manufacture outside
the Sales Territory, subject to royalty payments of Paragraph 8 herein, it agrees not to sell PRODUCTS outside the Sales Territory. Neither Seller nor Takara U.S. shall directly or indirectly sell the same PRODUCTS within the Territory. The
respective parties acknowledge that Seller shall not be responsible for independent retail purchase and resale that is not controlled or directed by Seller within the Sales Territory unless known by Seller prior to the sale. Each party further
acknowledges the right of the other parties to sell other products not covered by this Agreement anywhere in the world. The exclusivity of the Sales Territory of the United Kingdom of Great Britain is, however. subject to any existing firm sales
contract with Action Toys that are outstanding with Seller as of January 10, 1984. 
  

	5.	Toy Robot Products 

 The parties
acknowledge that the exclusive right of Buyer to develop and sell a robot line of toy products within the Territory is important to Buyer. Seller hereby agrees that during the Term of this Agreement and subject to the conditions set forth herein, it
will not sell any current robotic toy products presently 

  
 82 

 
being offered for sale by Seller (except for a Robotic Watch Series sold by Takara U.S.), or future competitive robotic toy products developed by Seller within the Territory regardless of the
specific PRODUCTS listed on Schedule “A” and/or Supplements thereof. Additionally, Seller Takara U.S. acknowledge that they will not sell any nonrobotic products, if any, within the Territory that are listed specifically on Schedule
“A” and/or Supplements thereof during the Term of the Agreement. 
  

	6.	Accessory Products 

 Buyer acknowledges
that in return for the territory exclusivity of this Agreement and the other conditions set forth herein, any and all products developed by or for Buyer similar in nature to those PRODUCTS identified in Schedule “A,” whether with or
without the help of Seller and/or Takara U.S., shall be subject to the Royalty Terms set forth herein and shall also be listed specifically on a Supplemental Schedule executed by the respective parties. 

 

	7.	Term 

 (i) The basic Term
of this Agreement shall be for a period of Three (3) Years, subject to automatic renewal on a yearly basis unless either party informs the other party, in writing, of its intention to cancel within Sixty (60) days before the Third
anniversary date or before each subsequent anniversary date of this Agreement after the Third anniversary. However, the Term of this Agreement as to PRODUCTS listed on any Schedules and currently commercially sold within the Territory may be
extended at the option of the Buyer, as long as Buyer has paid a minimum yearly royalty as set forth in Paragraph 8, in which event Buyer can continue its exclusive sales rights pursuant to this Agreement as to those specific PRODUCTS previously
listed on the Schedules beyond the basic Three (3) Year term, and Seller and Takara U.S. agree not to sell those PRODUCTS directly or indirectly in the Sales Territory, as long as the minimum yearly royalty has been paid in the previous year.

 (ii) Unless otherwise provided herein, this Agreement may be terminated by a Sixty (60) Day prior written notice by
either party to the other if the other party defaults in the performance of any obligation set forth herein and on its part to be performed, unless such default is cured within the notice period after service of notice of default on the party in
default. 
 (iii) In case of termination of this Agreement for whatever causes, Buyer shall not demand from Seller and/or Takara
U.S. any compensation, monetary or otherwise, except for defective PRODUCTS, and the firm orders accepted by Seller prior to the termination shall survive such termination and continue to be effective when Seller is in default. Additionally, Buyer
shall be responsible for any royalties owed to Takara U.S. 
  

	8.	Royalty 

 (i) Buyer shall
pay to Takara U.S. a Royalty Rate * * * * * * * * * * of the “Invoice Price” of the Products, regardless of whether Buyer purchases the Products from Seller or manufactures the Products. The specific Royalty Rate on a specific
Product shall be mutually agreed upon by the parties depending upon the profit level of Buyer and shall be listed on the Schedules. However, any Product manufactured by or for Buyer in Hong Kong or an Asian country by Buyer or a third party for
Buyer shall be subject to a Royalty rate of * * * * *. The definition “Invoice Price” shall be Buyer’s Invoice Price 

  
 83 

 
minus * * * * * to cover any and all deductions and allowances. There shall be no additional deduction from royalties owed Takara U.S. for uncollectible accounts, fees, impositions,
payments or expenses of any kind. Withholding taxes may be deducted from said royalties, if required, but only to the extent that Buyer shall provide to Takara U.S. a valid original U.S. government tax receipt showing the amount of such taxes
withheld. All royalties due to Takara U.S. shall accrue upon the sale of the PRODUCTS regardless of the time of collection by Buyer. For purposes of this Agreement, the PRODUCTS shall be considered “sold” upon the date when it is billed or
invoiced, shipped or paid for, whichever occurs first. 
 (ii) Buyer shall pay a minimum royalty of * * * * * * * * * *
annually to maintain the exclusiveness of its right to the PRODUCTS listed on the Schedules. If Buyer fails to pay the minimum royalty, Takara U.S. shall have the option of cancelling the Agreement in its entirety or of converting the Agreement
into a nonexclusive right to sell the PRODUCTS. If the Agreement is cancelled, Buyer shall have the right to sell any PRODUCTS in its possession, subject to the payment of royalties and the terms of this Agreement for a period of Six
(6) Months. Upon cancellation, Buyer shall assist in transferring all rights acquired by Buyer to the PRODUCTS including, but not limited to, copyrights, trademarks, and licenses to Buyer upon Seller’s written request. Buyer shall further
refrain from selling the same type of PRODUCTS anywhere in the world. 
  

	9.	Time of Payment 

 Royalty payments shall
be made to Takara U.S. at the offices of Takara Toys Corporation, Room 660, 200 Fifth Avenue, New York, New York 10010, or in any other way agreed upon in writing between both parties for each calendar quarter within thirty (30) days after the
end thereof. The first of said payments shall be submitted within thirty (30) days after the calendar quarter including the Buyer’s first sale of the PRODUCTS. All payments due under this Agreement shall be made in United States Dollars
and shall be calculated at the bank rate of exchange as of the last day of the corresponding calendar quarter. Any late payments, paid sixty (60) days or more after the end of the calendar quarter, shall be subject to a monthly interest rate of
one and one-half percent (1.5%). 
  

	10.	Reports 

 At the time each royalty payment
is due, regardless of the amount of royalties due and even if no royalties shall be due, Buyer shall furnish Takara U.S. with a statement showing therein all sales by or for Buyer of the PRODUCTS during the respective calendar quarterly period. Each
such statement shall also show the number of items sold, Buyer’s selling price of each, total sales in dollars, royalty percentage rate and payment due stated in dollars and conversion rate used in the calculation. If the sale by Buyer is to a
purchaser in which Buyer, directly or indirectly, has a financial interest, said royalty shall be paid by Buyer on the basis of the price which has been charged by Buyer to said purchaser or on this basis of the price charged by said purchaser to
its customer, whichever price is greater. 
  

	11.	Books of Account 

 Buyer shall keep full
and accurate books of account and all documents and other material relating to this Agreement and the subject matter hereof at Buyer’s main office at all times during the continuance of this Agreement and for two (2) years thereafter.
Takara U.S. or its duly authorized agent or representative shall have the right to confidential examination of such books, documents and other material, shall have 

  
 84 

 
full and free access thereto during all ordinary business hours, and shall be at liberty to make copies of all or any part of such books, documents and other material relevant to the payments.
Any discrepancy in payments to Takara U.S. as determined by such examination of Buyer’s records shall immediately be paid to Takara U.S. upon request. The cost of such examination shall be paid by Takara U.S. unless an error or discrepancy in
the amount of * * * * * or more of the royalty payable to Seller for any calendar year is discovered in which case the cost of the examination shall be paid entirely by Buyer. SEE RIDER 

 

	12.	Orders 

 (i) Every month
Buyer may place with Seller a firm order for the PRODUCTS to be purchased from Seller containing exact models, quantities and prices of the PRODUCTS to be shipped within three (3) months from the order acceptance date. Seller shall respond
within seven (7) days of receipt by telex. Buyer shall provide three (3) month forecasts of PRODUCTS to be purchased by Buyer based on the best estimate during the three (3) months subsequent to the month in which the above firm order
covers. 
 (ii) The inspections and quality assurance procedures will be in accordance with Exhibit B attached hereto.

 (iii) All of the PRODUCTS and packages thereof shall carry one or more notations of “TAKARA”, “MANUFACTURED BY
TAKARA CO., LTD., TOKYO” and/or any other similar reference as seller may reasonably request from time to time. Any changes requested may be introduced at the next printing of the packages. 

(iv) In case Buyer sells or distributes the PRODUCTS to others (except for final consumers), Buyer shall impose on them the same and
similar obligations and prohibitions as imposed on Buyer in this Agreement and shall be liable for any violation by them of such obligations or prohibitions. 
 (v) Buyer shall not manufacture, sell, distribute or cause to be manufactured, sold or distributed any other products similar to or competitive with any of the PRODUCTS or any products having such
trademarks, brand names or other names similar to those of the PRODUCTS during the Term of this Agreement. 
  

	13.	Price 

 All prices of the PRODUCTS shall
be contacted at the price quoted by Seller for F.O.B. Tokyo in Japanese Yen, unless otherwise specified. Payment to Seller by Buyer shall be effected by an irrevocable and confirmed Letter of Credit drawable at sight. The currency in terms of which
the price is quoted by Seller shall be the basic currency for making payments. Except as herein provided or otherwise agreed to by Seller in writing, all charges for freight, transportation, insurance, shipping, storage, handling, demurrage, or
similar charges shall be for the account of Buyer. If any such charges are included in the price by terms of Purchase Contract, any increase in the rates of such charges after the date of Purchase Contract shall be for the account of Buyer.

  
 85 

	14.	Payments 

 Confirmed and irrevocable
Letters of Credit conforming to the terms of the Agreement and Purchase Contract shall be established by a first class prime bank satisfactory to Seller forty-two (42) days prior to the confirmed schedule for shipment or at the time that Buyer
places an order, whichever is less, provided that the Letters of Credit do not have to be opened up three (3) months in advance. Buyer shall promptly advise Seller thereof by telex. If Buyer fails to provide such Letters of Credit as prescribed
above, Seller may cancel the concerned Purchase Contract and/or resell or hold the PROUDCTS for Buyer’s account and risk at Seller’s option. Buyer shall be responsible for any and all losses and damages, either direct, consequential or
incidental, to Seller caused by such failure, cancellation, resale or holding. 
  

	15.	Shipments 

 Seller shall ship at the
direction of Buyer. Title and risk of loss shall pass to Buyer, and delivery shall occur, upon delivery to the transportation company at the Japanese Port of Embarkation. In case PRODUCTS under a single order are shipped in more than one lot, each
lot shall be deemed to be a separate sales contact subject to the terms and conditions of the Purchase Contract. Shipments in installments shall be separately invoiced and due to be paid for separately without regarding to subsequent deliveries to
be made. Failure to pay for any of the installments when due shall relieve Seller from making further shipments. The date of the airway bill or ocean bill of lading, as the case may be, shall be conclusively deemed to be the date of shipment. A
twenty (20) days’ grace or leeway period shall be allowed for shipments made earlier or later than the time fixed for shipment by the parties. 
  

	16.	Warranty 

 Seller warrants against defect
of materials and workmanship which it supplies subject to Paragraph 21 below, but makes no warranty that the PRODUCTS are fit for Buyer’s particular purpose, unless otherwise specifically agreed to by Seller herein or by other writing.
Illustrations, photographs or descriptions in catalogues, manuals or other sales promotion materials issued or furnished by Seller are for purposes of general illustration only and shall not be blinding on Seller for purposes of any warranty of
conformance to sample or otherwise. If Seller manufactures to Buyer’s specifications, then Buyer is responsible. If Seller deviates from Buyer’s specification, then Seller shall hold Buyer harmless from any injury caused by such deviation.

  

	17.	Alterations 

 No change, alteration or
modification in part or in whole of the PRODUCTS ordered by Buyer and accepted by Seller shall be effective as to Seller, unless agreed to in writing by Seller, Seller reserves the right to change the price of the PRODUCTS and the right to make any
change in specification of the PRODUCTS subject to Buyer’s approval. In no event shall Seller be liable for any losses and damages caused by designs, specifications, changes, alterations, or modifications and made pursuant to Buyer’s
instructions. 
  

	18.	Patents and Trademarks 

 With respect to
or in connection with PRODUCTS or sale and distribution thereof, Seller shall not be responsible for any claims of infringements as to any patent, utility model, trademark, design, copyright and/or any other industrial property right in the Sales
Territory. Should any dispute or claim arise in 

  
 86 

 
connection with any of such rights against Seller, Seller may cancel this Agreement and/or Purchase Contract at its discretion and Buyer shall hold Seller free and harmless from and defend Seller
against any claims, suits, losses, liability and expenses arising from the alleged infringement and disputes upon Seller’s request. 
  

	19.	Production Yields and Claims 

 (i) Buyer accepts Seller’s production yields within the rate of *****, which will occur in Seller’s manufacturing the PRODUCTS. 

(ii) No claim by Buyer shall be entertained unless payment for the PRODUCTS involved have first been made or the export draft honored
prior thereto. Buyer shall inspect all shipments of the PRODUCTS and notify Seller of any claim for defective materials or workmanship of the Products, or any part thereof, by written notice within four (4) weeks after arrival of the PRODUCTS
at the destination specified in the bill of lading or airway bill. Further full particulars of such claim shall be made in writing and forwarded by registered airmail to Seller within fifteen (15) days following aforementioned notification of
the defects. If Buyer fails to notify Seller of such claim or forward the particulars thereof within the respective periods specified above, Buyer shall be deemed to have waived its right to assert any claim. Unless otherwise advised by Seller, the
PRODUCTS alleged to be defective shall be retained intact for inspection by Seller’s representative and must not be used or resold until such inspection shall have been completed. Buyer may return the defective PRODUCTS of the shipment to
Seller for repair or replacement. In such event, Seller shall bear costs of shipment (including insurance) of the defective PRODUCTS to Seller; Seller shall bear the costs of reshipment or shipment (including insurance) of the repaired or replaced
PRODUCTS to Buyer. Except as herein provided, Seller shall in no event be liable to Buyer for any of Buyer’s manufacturing costs, lost profits, loss of goodwill, or for any other damages, including special or consequential damages, of
whatsoever nature or kind. 
  

	20.	Notices 

 All notices to be given
hereunder shall be in writing and sent by certified or registered airmail or telecopy, telex or telegraph cable to the other party at the respective addresses first mentioned above, or to such other address as shall be dessignated in writing by a
party to the other party. Notice shall be deemed to have been served within three (3) days after dispatch by telecopy, telex, or telegraphic cable and within ten (10) days after posting by registered airmail. 

 

	21.	Jurisdiction 

 All disputes,
controversies, or differences which may arise between the parties hereto, out of or in relation to or in connection with the Agreement, shall be finally determined by the competent court in Tokyo, Japan, if Buyer initiates the proceeding against
Seller and in Pawtucket, Rhode Island, if Seller initiates the proceeding against Buyer. 
  

	22.	Attorney’s Fees 

 If legal action is
instituted to enforce any of the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees incurred in such action. 

  
 87 

	23.	Merger Clause 

 This writing is intended
by the parties as a final expression of their agreement concerning sale and purchase of the PRODUCTS between the parties hereto and as a complete and exclusive statement of the terms and conditions thereof. No course of prior dealings between the
parties and not usage of trade shall be relevant or admissible to vary any terms of this Agreement. Acceptance of, or acquiescence in a course of performance rendered hereunder or under any prior agreement shall not be relevant or admissible to
determine the meaning of this Agreement even though the accepting party or acquiescing party has knowledge of the nature of the performance and an opportunity to object. No representations, understanding, or agreements have been made or relied upon
in making of this Agreement other than those specifically set forth herein. This Agreement can be modified or supplemented only by a writing signed by both parties hereto or their duly authorized agents. 

 

	24.	Prohibition against Assignment 

 Buyer
shall not assign, transfer or otherwise dispose of this Agreement in whole or in part to any other individual, firm, corporation, or other legal entity except Hasbro Industries (Canada) Ltd. and/or Hasbro Industries (U.K.) Limited without the
written consent of Seller first obtained. Any assignment, transfer, or disposal of this Agreement without such consent shall be null and void. 
  

	25.	Governing Law 

 This Agreement shall be
governed as to all matters, including its validity, construction, and performance by the laws of Japan. 
  

	26.	Privity 

 This Agreement is concluded upon
a principal to principal basis between Buyer and Seller, and Buyer shall be responsible for performing this Agreement even if a third party establishes a Letter of Credit or holds an import license. 

 

	27.	No Waiver 

 No single or repeated waiver
of any default for any period of time shall be construed as a continuing waiver by either party, and the failure to exercise a legal right shall not affect in any way the full right of the party to require any future performance of the provision
upon which default has occurred. 
  

	28.	Force Majeure 

 Neither party shall be
held liable to the other for failure to perform this Agreement or any part hereof where it is prevented from doing so by any so-called Act of God (natural disasters), competent governmental orders or restrictions, war, threat of war, blockades,
embargoes, revolution, riot, strikes, lockouts, epidemics, shortage of materials, energy or labor, or other causes recognized as a force majeure, namely, causes arising beyond the control of the parties hereto. 

  
 88 

 IN WITNESS WHEREOF, the respective parties have affixed their signatures hereto as of the date in
this Agreement first above written. 
  

			
	HASBRO INDUSTRIES, INC.
	“Buyer”
		
	By:	 	 /s/ Donald M. Robbins

	
	TAKARA CO., LTD.
	“Seller”
		
	By:	 	 /s/ Yasuta Satoh

	
	TAKARA TOYS CORPORATION
	“Takara U.S.”
		
	By:	 	 /s/ Yasuta Satoh

  
 89 

 RIDER TO LICENSE AGREEMENT DATED AS OF THE 1st DAY OF NOVEMBER 1983, BY AND BETWEEN TAKARA CO., LTD. HASBRO
INDUSTRIES, INC. and TAKARA TOYS CORPORATION: 
 RIDER TO PARAGRAPH 11: 
 In the event that TAKARA U.S. shall examine the records, documents and materials in the possession of or under the control of the BUYER with respect to the subject matter, such examination shall be
conducted in such manner as to not unduly interfere with the business of the BUYER. TAKARA U.S. and/or its duly authorized representatives shall not disclose to any other person, firm or corporation any information acquired as a result of any such
examination; provided, however, that nothing herein contained shall be construed to prevent TAKARA U.S. and/or its duly authorized representatives from testifying in any court of competent jurisdiction with respect to the information obtained as a
result of such examination in any action instituted to enforce the rights of TAKARA U.S. under the terms of this Agreement. 

  
 90 

 SCHEDULE “A” 

 

							
	CAR ROBOT SERIES	  	*****
				
	No.	 	1	    	Countach	  	
	No.	 	15	    	New Countach (Yellow)	  	
	No.	 	12	    	Jeep	  	
	No.	 	16	    	F-1 Ligier	  	
	No.	 	7	    	Fair Lady Z	  	
	No.	 	13	    	Z – Police Car	  	
	No.	 	14	    	Porsche 935 Turbo	  	
	No.	 	2	    	Cherry Vanette (Red)	  	
	No.	 	4	    	Ambulance	  	
	No.	 	18	    	Lania Stratos	  	
	No.	 	5	    	HI LUX (Black)	  	
		
	PLANE ROBOT SERIES	  	*****
				
	4614010	 		    	F-15 Eagle Jet Robot	  	
		 		    	3 Colors Assortment	  	
		
	MINI-CAR ROBOT	  	*****
				
	1918084	 		    	VW-Car (Yellow)	  	
		 		    	Porsche	  	
	1918096	 		    	Truck	  	
		 		    	4WD Off-Road	  	
		 		    	Jeep	  	
		 		    	Transam	  	
		
	MINI-CASSETTE SERIES	  	*****
				
	1918187	 		    	MC-01 Micros Robot	  	
	1918199	 		    	MC-02 Robot Jaguar	  	
		 		    	MC-03 Robot Condor	  	
		
	CASSETTE MAN	  	*****
				
		 		    	MC-10 Walkman Type Cassette	  	
	
	GUN ROBOT
				
		 		    	MC-13 Walther P-38 with Extension Set	  	
		
	TRAILER TRUCK (Battle Convoy	  	*****
				
		 		    	No. 17 Car robot Trailer Base	  	
		 		    	Battle Convoy)	  	

  

									
	Dated:	 		 		 		 	
			
	HASBRO INDUSTRIES, INC.	 		 	TAKARA CO., LTD.
					
	By:	 	 /s/ Donald M. Robbins
	 		 	By:	 	 /s/ Yasuta Satoh

  
 91 

 EXHIBIT B 
 QUALITY ASSURANCE LOT SAMPLING INSPECTION – TRANSFORMERS 

Quality Assurance will perform lot sampling inspection on each 
 shipment as follow: 
 Acceptable Quality Levels (AQL) will be: 

* * * * * defective for major defects. 
 * * * * * defective for minor defects. 
 (Note: Attached excerpts from
MIL-STD-105D) 
 Major Defect – is a defect that will reduce materially the useability of the product for its intended
purpose, a defect that will cause substantial customer dissatisfaction, or a defect that might result in return of the product. 

Minor Defect – is a defect that is not likely to reduce materially the useability of the product or is a departure from established
standards having little bearing on the effective use or play value of the product. 
 The sampling plan will be in accordance
with “MIL-STD-105D – Sampling Procedures and Tables for Inspection by Attributes.” The single sampling plan, Level II for Normal Inspection will be used. 
 To maintain the size of the sample at a reasonable level, the lot will be considered to consist of an assortment of vehicles and each specific vehicle type within the assortment will not be considered a
separate lot for sampling purposes. The sample chosen randomly from the lot, will include all vehicle types within the assortment. 
 The detail of the sampling plan and the characteristics of inspection will be defined in “Inspection Requirement”. 
 Note: The Product must be in conformance to all related Federal Regulations pertaining to safety or potential injury to a child. 

  
 92 

 MIL-STD-105D 
 TABLE I – Sample size code letters 
 (See 9.2 and 9.3)

  

															
	 	  	Special inspection levels	  	General inspection levels
	Lot or batch size	  	 	  	 	  	 	  	 	  	 	  	 	  	 
		  	S-1	  	S-2	  	S-3	  	S-4	  	I	  	II	  	III
	 2 to 8

9 to 15
 16 to 25
  
 26 to 50
 51 to 90

91 to 150
  

151 to 280
 281 to 500
 501 to 1200

 
 1201 to 3200

3201 to 10000
 10001 to 35000
  
 35001 to150000
 150001 to 500000

500001 and over
	  	 A
 A
 A

 
 A

B
 B

 
 B

B
 C

 
 C

C
 C

 
 D

D

D
	  	 A
 A
 A

 
 B

B
 B

 
 C

C
 C

 
 D

D
 D

 
 E

E

E
	  	 A
 A
 B

 
 B

C
 C

 
 D

D
 E

 
 E

F
 F

 
 G

G

H
	  	 A
 A
 B

 
 C

C
 D

 
 E

E
 F

 
 G

G
 H

 
 J

J

K
	  	 A
 A
 B

 
 C

C
 D

 
 E

F
 G

 
 H

J
 K

 
 L

M

N
	  	 A
 B
 C

 
 D

E
 F

 
 G

H
 J

 
 K

L
 M

 
 N

P

Q
	  	 B
 C
 D

 
 E

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 93<![CDATA[Form of Performance Share Award Notice & Agreement]]>

 Exhibit 10.10 
 FORTUNE BRANDS HOME & SECURITY, INC. 
 2011 LONG-TERM INCENTIVE
PLAN 
 Form of Performance Share Award Notice—February 21, 2012 (the “Notice”) 

Home & Security Corporate Officers and Operating Company Presidents 

You have been awarded [XX] target performance share awards (“PSAs”) that will be paid in shares of
common stock of Fortune Brands Home & Security, Inc. (the “Company”). Pursuant to the terms and conditions of the Fortune Brands Home & Security, Inc. 2011 Long-Term Incentive Plan (the “Plan”) and
the Performance Share Award Agreement (together with this Notice, the “Agreement”), the number of shares of Company common stock paid (if any) at the end of the Performance Period will be based upon Company performance compared to
the performance goals. Copies of the Plan and the Performance Share Award Agreement are available on the Morgan Stanley Smith Barney Benefit Access® website (www.benefitaccess.com). Capitalized terms not defined in this Notice have the meanings specified in the Plan or the Agreement. 

 

			
	Award:	  	The right to earn a number of shares of Company common stock, to be paid at the end of the Performance Period, based upon the Company’s attainment of the performance
goals.
		
	Award Amount:	  	
		
	Award Date:	  	February 21, 2012
		
	Performance Period:    	  	January 1, 2012 – December 31, 2014
		
	Vesting Date:	  	The later of January 31, 2015 or the date as of which the Compensation Committee of the Company’s Board of Directors certifies attainment of the performance
goals.

 FORTUNE BRANDS HOME & SECURITY, INC. 

2011 LONG-TERM INCENTIVE PLAN 
 Form of February 21, 2012 Performance Share Award Agreement (the “Agreement”) 
 Fortune Brands Home & Security, Inc., a Delaware corporation (“Home & Security”), grants to the individual (“Holder”) named in the Award notice (the
“Award Notice”) a performance stock award (the “Award”) under the Fortune Brands Home & Security, Inc. 2011 Long-Term Incentive Plan (the “Plan”), subject to the terms and conditions of the
Plan, the Award Notice and this Agreement. The date of the grant, the number of shares of common stock of Home & Security to be paid to Holder under the Award (“Performance Shares”), and the minimum, target and maximum
goals (“Performance Goals”), are set forth in the attachment to this Agreement. In all cases, Performance Goals for Home & Security and its consolidated subsidiaries (“Company”) will be determined in accordance
with this Agreement and the attachment to this Agreement. 
 1. Number of Shares Payable Pursuant to Award. Subject to
the provisions of Sections 4 through 12 below, the number of Performance Shares payable to Holder pursuant to the Award shall be determined as follows: 
 (a) If the Company’s performance during the period of January 1, 2012 through December 31, 2014 (“Performance Period”) equals the minimum Performance Goals, the number of
Performance Shares payable to Holder will equal the minimum number of Performance Shares. 
 (b) If the
Company’s performance during the Performance Period equals or exceeds the maximum Performance Goals for the Performance Period, the number of Performance Shares payable to Holder will equal the maximum number of Performance Shares. 

(c) If the Company’s performance during the Performance Period exceeds the minimum Performance Goals but is less than
the maximum Performance Goals, the number of Performance Shares payable to Holder will be interpolated between the minimum and maximum number of Performance Shares available under the Award, in accordance with the matrix found in the attachment to
this Agreement. 
 (d) No Performance Shares shall be payable for the Performance Period if the Company’s
actual performance is less than the minimum Performance Goals established for the Performance Period. 
 Subject to the
provisions of Sections 4 through 12 below, any Performance Shares that become payable to Holder under this Award shall be issued by Home & Security as soon as practicable following: (i) the end of the Performance Period; and
(ii) the certification by the Compensation Committee of the Company’s Board of Directors (the “Committee”) of the Company’s attainment of the Performance Goals. Notwithstanding any other provision of this Agreement, no
Performance Shares shall be paid unless and until the Committee certifies the attainment of Performance Goals. 
 2. Dividend
Equivalents. Subject to the provisions of Sections 4, 5, 6, 8, 10, 11 and 12 below, Holder shall be paid, on the date of the payment of any Performance Shares, a cash amount that is equal to the amount of any cash dividends that would have been
paid on the Performance Shares during the Performance Period if such shares had been issued and outstanding on any record date for the payment of any cash dividends on common stock of Home & Security 

 
during the Performance Period and prior to the date of payment of such shares (“Dividend Equivalents”). Such Dividend Equivalents, if any, shall be paid, subject to
Section 16 below, on the date of payment of such shares pursuant to Section 1 above. Payment of any Dividend Equivalent shall be made by check or in such other manner as is determined by the Committee. To the extent that Home &
Security does not issue dividends on outstanding common stock during the Performance Period, no such payment of Dividend Equivalents shall be due to Holder. 
 3. Transferability of Award. This Award may not be transferred, assigned, pledged or hypothecated in any manner, by operation of law or otherwise, other than by Holder (a) by will or by the
laws of descent and distribution; or (b) pursuant to an approved domestic relations order approved in writing by the Secretary of the Committee or the Secretary’s designee, or, and shall not be subject to execution, attachment or similar
process. 
 4. Termination of Employment for Death, Disability or Retirement. If Holder’s employment with the
Company terminates during the Performance Period by reason of Holder’s death, Retirement or Disability (as such capitalized terms are defined below), Holder will be entitled to receive as soon as practicable following the certification of the
Company’s performance by the Committee (as described in Section 1 above), a payment of the number of shares of Home & Security common stock, if any, that would have otherwise been payable to Holder had Holder’s employment not
terminated prior to the end of the Performance Period, based upon actual Company performance, but prorated to reflect the portion of the Performance Period that elapsed prior to Holder’s death, Disability or Retirement, as applicable. In
addition, Holder shall be entitled to receive Dividend Equivalents (if any) on any shares of Company common stock paid under this Section 4, equal to any dividends paid by the Company during the Performance Period. 

For purposes of this Award, (a) “Retirement” means the attainment of age 55 and the completion of five
(5) years of service with the Company or its predecessors or affiliates; and (b) “Disability” means the Holder’s inability to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as
amended (the “Code”). 
 Notwithstanding the foregoing, in the event of a Change in Control or Divestiture (as
described in Sections 11 and 12 respectively, below), Holder shall be entitled to receive any shares under this Award as provided under Section 11 or 12, as applicable, and not this Section 4, even if Holder is eligible for Retirement when
Holder’s employment terminates. 
 5. Termination of Employment for Other Reasons. Except as otherwise provided in
Sections 11 or 12 below, if Holder’s employment with the Company terminates during the Performance Period other than by reason of death, Disability or Retirement, Holder will not be entitled to any payment of Performance Shares or Dividend
Equivalents. 
 6. Company Clawback Policy. Notwithstanding any provision of the Plan or this Agreement to the contrary,
the Company may require Holder to return shares of Company common stock (or the value of such stock when originally paid to Holder), Dividend Equivalents received as a result of a prior settlement of Performance Shares and any other amount required
by law to be returned, in the event that such repayment is required in order to comply with the Company’s clawback policy as then effect or any laws or regulations relating to restatements of the Company’s publicly-reported financial
results. 

 7. Stock Exchange Listing; Fractional Shares. Home & Security shall not be
obligated to deliver any shares until they have been listed (or authorized for listing upon official notice of issuance) upon each stock exchange upon which are listed outstanding shares of the same class as that of the shares subject to the Award
and until there has been compliance with such laws or regulations as Home & Security may deem applicable. Home & Security agrees to use its best efforts to effect such listing and compliance. No fractional shares (or any cash
payment in lieu thereof) will be delivered and the number of shares to be delivered will be rounded up or down to the nearest whole share. 
 8. Transfer of Employment; Leave of Absence. For the purposes of this Agreement, (a) a transfer of Holder’s employment from Home & Security to a subsidiary or vice versa, or from
one subsidiary to another, without an intervening period, shall not be deemed a termination of employment, and (b) if Holder is granted in writing a leave of absence, Holder shall be deemed to have remained in the employ of Home &
Security or a subsidiary during such leave of absence. 
 9. Investment Representations. Prior to each issuance of shares
of common stock payable hereunder, Holder shall make such representations (as may be required) that such shares are to be held for investment purposes and not with a view to or for resale or distribution except in compliance with the Securities Act
of 1933, as amended (the “Securities Act”), and shall, if required by the Committee, give a written undertaking to Home & Security in form and substance satisfactory to the Committee that Holder will not publicly offer or
sell or otherwise distribute such shares other than (a) in the manner and to the extent permitted by Rule 144 promulgated by the Securities and Exchange Commission under the Securities Act, (b) pursuant to any other exemption from the
registration provisions of the Securities Act or ( c) pursuant to an effective registration statement under the Securities Act. 

10. Adjustments. 
 (a) In the event of any merger, consolidation, stock or other non-cash dividend, extraordinary cash dividend, split-up, spin-off, combination or exchange of shares, reorganization or recapitalization or
change in capitalization, the number and kind of shares that are covered by the Award (including, in the case of any such event other than an extraordinary cash dividend, the number of shares in respect of which Dividend Equivalents (if any) may be
credited and paid pursuant to Section 2 above) immediately prior to such event shall be proportionately and appropriately adjusted. 
 (b) Appropriate and equitable adjustments (which may be increases or decreases) shall be made by the Committee to the Performance Goals to take into account changes in law to reflect the inclusion or
exclusion of the impact of extraordinary or unusual items, events or circumstances, including, but not limited to (i) changes in laws, regulations and accounting principles; (ii) actual gains or losses related to defined benefit plan
accounting; and (iii) impairment and restructuring related changes; provided that, except as permitted by Section 162(m) of the Code, no adjustment shall be made which would result in an increase in Holder’s compensation if
Holder’s compensation is subject to the limitation on deductibility under Code Section 162(m), for the year with respect to which the adjustment occurs. 

(c) The determination of the Committee as to the terms of any adjustment made pursuant to this Section 10 shall be
binding and conclusive upon Holder and any other person or persons who are at any time entitled to receipt of any payment pursuant to the Award. 

 11. Change in Control of Home & Security. Upon a Change in Control, the
Award will be subject to Section 5.8 of the Plan. Notwithstanding any other provision hereof, in the event that the Performance Shares remain outstanding following a Change in Control, but Holder’s employment is terminated on or after such
Change in Control: (a) by the Company other than for “Cause” (as defined below) or (b) by Holder for “Good Reason” (as defined below), the Award shall become nonforfeitable and shall be paid out on the date
Holder’s employment terminates (x) assuming that the Company had achieved its target Performance Goals under the Award for the entire Performance Period, but (y) pro-rated for the portion of the Performance Period that elapsed prior
to Holder’s termination of employment. In addition, Holder will be entitled to receive payment of any Dividend Equivalent that would have been declared during the Performance Period and prior to the date of payment of such shares, but will not
be entitled to be credited with or to receive any other Dividend Equivalents. 
 For purposes of this Award,
“Cause” shall have the same meaning as such term has under any employment or other written agreement between Holder and the Company (“Termination Agreement”), provided that if Holder is not a party to any
Termination Agreement that contains such definition, then Cause shall have the same meaning provided for such term under the severance plan sponsored by Holder’s employer and under which Holder is eligible to participate; and “Good
Reason” shall have the same meaning as such term has under any Termination Agreement, provided that if Holder is not a party to any Termination Agreement that contains such definition, then Good Reason shall include any of the
reasons allowing Holder to terminate employment and remain eligible for severance benefits under the severance plan sponsored by Holder’s employer and under which Holder is eligible to participate. 

12. Divestiture. In the event that Holder’s principal employer is a subsidiary of Home & Security that ceases to be
a subsidiary of Home & Security (“Divestiture”), then Holder’s employment shall be deemed to be terminated for all purposes as of the date on which Holder’s principal employer ceases to be a subsidiary of Home &
Security (the “Divestiture Date”), and the Award shall become nonforfeitable and shall be paid out on the Divestiture Date (x) based upon actual subsidiary performance through the date of Divestiture and (y) pro-rated for
the portion of the Performance Period that elapsed prior to Holder’s termination of employment. In addition, Holder will be entitled to receive payment of any Dividend Equivalents representing any dividends that would have been paid during the
Performance Period on the number of shares of common stock paid under this Section 12 but prior to the Divestiture, but will not be entitled to be credited with or to receive any other Dividend Equivalents. 

13. Stockholder Rights. Neither Holder nor any other person shall have any rights of a stockholder as to Performance Shares until
such shares shall have been recorded on Home & Security’s official stockholder records as having been issued or transferred in the form of common stock. 
 14. Tax Withholding. Upon any payment to Holder of shares of common stock of Home & Security or of any Dividend Equivalents, Federal income and other tax withholding (and state and local
income tax withholding, if applicable) may be required to be withheld by the Company. The Company may withhold such required amounts from Holder’s future paychecks or, if applicable, any Dividend Equivalents, or the Company may require that
Holder deliver the amounts to be withheld. In addition, upon any payment of shares of Home & Security common stock, Holder may pay any Federal income and other tax withholding (and any state and local income tax withholding, if applicable)
by electing either to have the Company withhold a portion of the shares of common stock otherwise deliverable, or by delivering other shares of common stock owned by Holder, in either case having a fair market value (determined on the date that the
amount of tax Holder has elected to have withheld is to be determined) of the amount to be withheld, provided that the election shall be irrevocable and shall be subject to such rules as the Committee may adopt. For purposes of this Section 14,
“Fair Market Value” as of any date means the value determined by reference to the closing price of a share of Common Stock as finally reported on the New York Stock Exchange for the trading day immediately preceding such date.

 15. Governing Law. This agreement and the Award provided for hereunder shall be
governed by and construed in accordance with the laws of the State of Delaware. 
 16. Conflicts. In the event of a
conflict between this Agreement and the Plan, the terms of the Plan shall apply. 
 17. No Rights to Continued
Employment. In no event will the granting of the Award or its acceptance by Holder, or any provision of this Agreement or the Plan, give or be deemed to give Holder any right to continued employment by the Company or affect in any manner the
right of the Company to terminate the employment of any person at any time for any reason. 
 18. Decisions of Board or
Committee. The Board or the Committee has the right to resolve all questions which may arise in connection with the Award. Any interpretation, determination or other action made or taken by the Board or the Committee regarding the Plan or this
Agreement is final, binding and conclusive. 
 19. Successors. This Agreement is binding upon and will inure to the
benefit of any successor or successors of the Company and any person or persons who, upon the death of Holder, acquire any rights in accordance with this Agreement or the Plan. 

20. Notices. All notices, requests or other communications provided for in this Agreement will be made, if to the Company, to
Fortune Brands Home & Security, Inc., Attn. Secretary of the Compensation Committee of the Board of Directors, 520 Lake Cook Road, Deerfield, Illinois 60015, and if to Holder, to the last known mailing address of Holder contained in the
records of the Company. All notices, requests or other communications provided for in this Agreement will be made in writing either (a) by personal delivery; (b) by facsimile or electronic mail with confirmation of receipt; (c) by
mailing in the United States mails; or (d) by express courier service. The notice, request or other communication will be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile or electronic mail
transmission or upon receipt by the intended party if by United States mail or express courier service; provided, however, that if a notice, request or other communication sent to the Company is not received during regular business hours, it will be
deemed to be received on the next succeeding business day of the Company. 
 21. Partial Invalidity. The invalidity or
unenforceability of any particular provision of this Agreement will not affect any other provisions of this Agreement and this Agreement will be construed in all respects as if such invalid or unenforceable provisions were omitted. 

22. Agreement Subject to the Plan. This Agreement is subject to, and will be interpreted in accordance with, the provisions of the
Plan. Holder hereby acknowledges receipt of a copy of the Plan, and by accepting the Award in the manner specified by the Company, he or she agrees to be bound by the terms and conditions of this Agreement, the Award and the Plan. 

23. Section 409A. This Agreement and the Award are intended to comply with the requirements of Section 409A of the Code
and will be interpreted and construed consistently with such intent. Any payment of Performance Shares and Dividend Equivalents to the Holder pursuant to this Agreement is also intended to be exempt from Section 409A of the Code to the maximum
extent possible as a short-term deferral pursuant to Treasury regulation 

 
§1.409A-1(b)(4). In the event the terms of this Agreement would subject Holder to taxes or penalties under Section 409A of the Code (“409A Penalties”), Holder and the
Company will cooperate diligently to amend the terms of this Agreement to avoid such 409A Penalties, to the extent possible; provided that in no event will the Company be responsible for any 409A Penalties that arise in connection with any
amounts payable under this Agreement. 
 24. Counterparts. This Agreement may be executed in one or more counterparts,
all of which together will constitute but one Agreement.

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