Document:

exv10w69

 

Exhibit 10.69

OUR REF: MYH/SME CAT/RGN/YAN/070517

PRIVATE AND CONFIDENTIAL

21 May 2007

TRIO-TECH (M) SDN BHD

LOT 4, JALAN SS 8/3,

SUNGAI WAY FREE INDUSTRIAL ZONE,

43700 PETALING JAYA,

SELANGOR

Dear Sir/Madam

BANKING FACILITY

CUSTOMER NO : 372-064733

We advise having reviewed your banking facility of RM112,000.00 (Ringgit Malaysia One Hundred
Twelve Thousand only) and are pleased to confirm renewal for a further period, subject to our
customary overriding right of withdrawal and repayment on demand and also to review at any time,
and in any event, by MAY 2008.

All other terms and conditions previously agreed upon as per our Letter of Offer dated 15
SEPTEMBER 2004 (Ref: PGH/CBC/LPK/WYM/lyy) and subsequent renewals/revisions and security
documentation remain unchanged. It is also a term that the facility is subject to there being no
breach of guidelines issued by Bank Negara Malaysia and/or policies of the Bank from time to
time, and that the Bank reserves the right to recall the facility granted hereunder in the event
any of the accountholder’s current accounts are unsatisfactorily conducted as to render any of
its current accounts maintained with any banks liable to closure under regulatory requirements
and/or the prevailing policies of any of the banks with which such accounts are maintained,
notwithstanding that the accountholder’s current account(s) with the Bank whether held solely or
jointly with others has/have been conducted satisfactorily. The Bank may rely on information
furnished by the Credit Bureau established by Bank Negara Malaysia for information whether any of
the customer’s current accounts have become liable to closure, and reliance by the Bank on such
information shall not subject the Bank to any liability to us in the event of any inaccuracy of
such information not known to the Bank.

Facility Management Fee

Renewal of banking facilities will be subject to a Facility Management Fee of RM400-00 which will
be debited from your current account.

We set out the attached List of Securities held at this office for your account. In the event
there is any error or omission, please inform us in writing for our receipt within 14 days of the
notice, failing which it shall be deemed that the said list is correct.

Your continued utilisation of the facilities shall be deemed to be acceptance of the contents
therein. We thank you for banking with us and look forward to being of continued service to you.

If you have any query, please contact our Goh Yew Peng at telephone no 04-6503256.

Yours faithfully

May Low

Assistant Manager SME Credit Approval

	 	 	 
	HSBC Bank Malaysia Berhad

	 	
	(Company number 127776-V)
	 	 
	Head Office, 2, Leboh Ampang, 50100 Kuala Lumpur.
	 	 
	Tel: 03-2070 0744 Fax: 03-2070 1146
	 	 
	Web: www.hsbc.com.myexv4w1

 

Exhibit 4.1

 

 

HASBRO, INC.

$350,000,000 6.30% Notes due 2017

FIRST SUPPLEMENTAL INDENTURE

Dated as of September 17, 2007

to

Indenture Dated as of March 15, 2000

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

Trustee

 

 

 

 

          This FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of
September 17, 2007, to the Indenture (the “Existing Indenture”) dated as of March 15, 2000,
between HASBRO, INC., a Rhode Island corporation (the “Company”), and THE BANK OF NOVA
SCOTIA TRUST COMPANY OF NEW YORK, as trustee (the “Trustee”) (the Existing Indenture as
supplemented by this First Supplemental Indenture, the “Indenture”).

RECITALS

          WHEREAS, the Company and the Trustee have heretofore executed and delivered the Existing
Indenture to provide for the issuance of the Company’s debt securities in one or more series;

          WHEREAS, Sections 2.01, 3.01 and 9.01 of the Existing Indenture provide, among other things,
that the Company and the Trustee may, without the consent of Holders, enter into indentures
supplemental to the Existing Indenture to provide for specific terms applicable to any series of
notes and to add to the covenants of the Company for the benefit of the Holders of each series of
notes (and if such covenants are to be for the benefit of less than all series of notes, stating
that such covenants are expressly being included solely for the benefit of such series);

          WHEREAS, the Company desires to provide for the issuance of a new series of debt securities to
be designated as the “6.30% Notes due 2017” (the “Notes”), and to set forth the terms that
will be applicable thereto and the forms thereof; and

          WHEREAS, all action on the part of the Company necessary to make this Supplemental Indenture a
valid agreement of the Company and to authorize the issuance of the Notes under the Existing
Indenture (as supplemented hereby) has been duly taken;

          NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the sufficiency and adequacy of which are hereby acknowledged, the parties hereto
hereby agree as follows:

ARTICLE I

APPLICATION OF SUPPLEMENTAL INDENTURE

AND CREATION OF NOTES

     Section 1.01 Application of this Supplemental Indenture. 

          Notwithstanding any other provision of this Supplemental Indenture, the provisions of this
Supplemental Indenture, including the covenants set forth herein, are expressly and solely for the
benefit of the Notes.

     Section 1.02 Effect of Supplemental Indenture.

 

 

          With respect to the Notes only, the Existing Indenture shall be supplemented pursuant to
Sections 2.01, 3.01 and 9.01 thereof to establish the terms of the Notes as set forth in this
Supplemental Indenture, including as follows:

	 	(a)	 	the definitions set forth in Article One of the Existing Indenture shall be
modified to the extent provided in Article II of this Supplemental Indenture;
	 
	 	(b)	 	the forms and terms of the securities representing the Notes required to be
established pursuant to Sections 2.01 and 3.01 of the Existing Indenture shall be
established in accordance with Sections 1.03, 1.04, 1.05, 1.06, 1.07 and 1.08 of this
Supplemental Indenture; and
	 
	 	(c)	 	the provisions of Article Ten of the Existing Indenture regarding certain covenants of
the Company shall be supplemented and amended by the provisions of Article V of this
Supplemental Indenture.

     Section 1.03 Designation and Amount of Notes. 

          The Notes shall be known and designated as the “6.30% Notes due 2017.” The initial
maximum aggregate principal amount of the Notes that may be authenticated and delivered
under this Supplemental Indenture shall not exceed $350,000,000 except for Notes
authenticated and delivered upon registration or transfer of, or in exchange for, or in
lieu of, Notes pursuant to Sections 2.02, 3.04, 3.05, 3.06 or 9.05 of the Existing
Indenture (unless the issue of this series of Notes is “reopened” by issuing additional
Notes of such series (the “Additional Notes”), in an amount or amounts and
registered in the names of such Persons as shall be set forth in any written order of the
Company for the authentication and delivery of the Notes pursuant to Section 3.03 of the
Existing Indenture.

     Section 1.04 Terms; Form of Security. 

          The Notes shall constitute one series for purposes of the Existing Indenture and this
Supplemental Indenture, including, without limitation, waivers, amendments, redemptions and offers
to purchase. The Company shall issue any Additional Notes by adopting a Board Resolution in the
manner set forth in Section 3.01 of the Existing Indenture providing for the terms of such
issuance. Notwithstanding the foregoing, the Notes are issuable in fully registered form as a
global Security (unless otherwise permitted by Section 2.03 of the Existing Indenture) without
coupons and shall be in substantially the form of Exhibit A hereto. The Notes are not issuable in
bearer form. The terms and provisions contained in the form of Note shall constitute, and are
hereby expressly made, a part of this Supplemental Indenture and the Company, by its execution and
delivery of this Supplemental Indenture, expressly agrees to such terms and provisions and to be
bound thereto. Any of the Notes may have such letters, numbers or other marks of identification and
such notations, legends and endorsements as the officers executing the same may approve (execution
thereof to be conclusive evidence of such approval) and are not inconsistent with the provisions of
the Indenture (and which do not affect the rights, duties or immunities of the Trustee), or as may
be required to comply with any law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any securities exchange or automated quotation system on which the Notes may
be listed.

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     Section 1.05 Payment of Principal and Interest.

          (a) The Notes shall mature, and the principal of the Notes shall be due and payable in
Dollars to the Holders thereof, together with all accrued and unpaid interest thereon, on
September 15, 2017.

          (b) The Notes shall bear interest at 6.30% per annum from and including September 17,
2007, or from the most recent Interest Payment Date on which interest has been paid or
provided for until the principal thereof becomes due and payable, and on any overdue
principal and (to the extent that payment of such interest is enforceable under applicable
law) on any overdue installment of interest at the same rate per annum. Interest shall be
calculated on the basis of a 360-day year comprised of twelve 30-day months. Interest on
the Notes shall be payable semi-annually in arrears in Dollars on March 15 and September 15
of each year, commencing on March 15, 2008 (each such date, an “Interest Payment
Date” for the purposes of the Notes under this Supplemental Indenture). Payments of
interest shall be made to the Person in whose name a Note (or predecessor Note) is
registered (which shall initially be the Depositary) at the close of business on March 1 or
September 1, as the case may be, next preceding such Interest Payment Date (each such date,
a “Regular Record Date” for the purposes of the Notes under this Supplemental
Indenture).

          (c) For so long as the Notes are represented in global form by one or more global
Securities, all payments of principal and interest shall be made by the Company by wire
transfer of immediately available funds in Dollars to the Depositary or its nominee, as the
case may be, as the registered owner of the global Security representing such Notes. In
the event that definitive Notes shall have been issued, all payments of principal and
interest shall be made by the Company by wire transfer of immediately available funds in
Dollars to the accounts of the registered Holders thereof; provided, that the Company may
elect to make such payments at the office of the Paying Agent in The City of New York; and
provided further, that the Company may at its option pay interest by check to the
registered address of each Holder of a definitive Note.

          (d) The Notes shall trade in the Depositary’s Same-Day Funds Settlement System until
Stated Maturity (or until they are subject to acceleration pursuant to Article V of the
Existing Indenture) and secondary market trading activity in the Notes may be required by
the Depositary to settle in immediately available funds.

          (e) The Notes are subject to redemption by the Company in whole or in part in the
manner described herein.

          (f) The interest rate payable on the Notes will be subject to adjustments from time to
time if any of Moody’s, S&P or Fitch downgrades (or subsequently upgrades) the debt rating
assigned to the Notes, as set forth below.

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          If the rating on the Notes from Moody’s, S&P or Fitch is a rating set forth in the immediately
following table, the per annum interest rate on the Notes will increase from 6.30% by the
percentage set forth opposite that rating:

	 	 	 	 	 	 	 	 	 	 	 
	Rating	 	Rating Agency	 	 	 
	Level	 	Moody’s	 	S&P	 	Fitch	 	Percentage	 
	 
	1
	 	Ba1	 	BB+	 	BB+	 	 	0.25	%
	2
	 	Ba2	 	BB	 	BB	 	 	0.50	%
	3
	 	Ba3	 	BB-	 	BB-	 	 	0.75	%
	4
	 	B1 or below	 	B or below	 	B or below	 	 	1.00	%

     If any of Moody’s, S&P or Fitch subsequently increases its rating with respect to the
Notes to any of the threshold ratings set forth above, the per annum interest rate on such Notes
will be decreased such that the per annum interest rate equals 6.30% plus the percentages
applicable to the lowest two ratings levels of Moody’s, S&P and Fitch in effect immediately
following the increase.

     In determining the increase or decrease, if any, the percentage applicable to the lowest two
ratings levels of Moody’s, S&P and Fitch shall be used.

     Each adjustment required by any decrease or increase in a rating set forth above, whether
occasioned by the action of Moody’s, S&P or Fitch, shall be made independent of any and all other
adjustments. In no event shall (1) the per annum interest rate on a series of Notes be reduced
below 6.30%, and (2) the total increase in the per annum interest rate on a series of Notes exceed
2.00% above 6.30%.

     If any of two of Moody’s, S&P or Fitch ceases to provide a rating of the Notes, any subsequent
increase or decrease in the interest rate of the Notes necessitated by a reduction or increase in
the rating by the agency continuing to provide the rating shall be twice the percentage set forth
in the table above. No adjustments in the interest rate of the Notes shall be made solely as a
result of Moody’s, S&P or Fitch ceasing to provide a rating. If all of Moody’s, S&P and Fitch cease
to provide a rating of the Notes, the interest rate on the Notes will increase to, or remain at, as
the case may be, 2.00% above the interest rate payable on the Notes on the date of their issuance.

     Any interest rate increase or decrease described above will take effect from the first day of
the interest period during which a rating change requires an adjustment in the interest rate.

     The interest rates on a series of Notes will permanently cease to be subject to any adjustment
described above (notwithstanding any subsequent decrease in the ratings by either or both rating
agencies) if the series of Notes becomes rated A3, A- or A- or higher by any two of Moody’s, S&P
and Fitch, respectively (or one of these ratings if only rated by one rating agency), with a stable
or positive outlook by both such rating agencies.

     Section 1.06 Ranking.

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          The Notes shall be general unsecured obligations of the Company. The Notes shall rank pari
passu in right of payment with all unsecured and unsubordinated indebtedness of the Company and
senior in right of payment to all subordinated indebtedness of the Company.

     Section 1.07 Security Registrar and Paying Agent.

          The Company hereby initially appoints the Trustee as Paying Agent and Security Registrar for
the Notes. The Company may change the Paying Agent and Security Registrar without prior notice to
the Holders of the Notes, and the Company or any of its Subsidiaries may act as Paying Agent or
Security Registrar.

     Section 1.08 Sinking Fund

          The Notes are not subject to any sinking fund.

ARTICLE II

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 2.01 Definitions.

          (a) All capitalized terms used herein and not otherwise defined below shall have the
meanings ascribed thereto in the Existing Indenture.

          (b) The following are definitions used in this Supplemental Indenture and to the
extent that a term is defined both herein and in the Existing Indenture, the definition in
this Supplemental Indenture shall govern with respect to the Notes.

          “Below Investment Grade Rating Event” means the Notes are rated below Investment Grade
by each of the Rating Agencies on any date from the date of the public notice of an arrangement
that could result in a Change of Control until the end of the 60-day period following public notice
of the occurrence of a Change of Control (which period shall be extended so long as the rating of
the Notes is under publicly announced consideration for possible downgrade by any of the Rating
Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect of a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes
of the definition of Change of Control Repurchase Event hereunder) if any of the Rating Agencies
making the reduction in rating to which this definition would otherwise apply does not announce or
publicly confirm or inform the Trustee in writing at its request that the reduction was the result,
in whole or in part, of any event or circumstance comprised of or arising as a result of, or in
respect of, the applicable Change of Control (whether or not the applicable Change of Control shall
have occurred at the time of the Below Investment Grade Rating Event).

          “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all

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or substantially all of the Company’s properties or assets and those of the Company’s
Subsidiaries taken as a whole to any “person” or “group” (as that term is used in Section
13(d)(3) of the Securities Exchange Act of 1934, as amended), other than the Company or one
of its Subsidiaries;

     (2) the adoption of a plan relating to the Company’s liquidation or dissolution;

     (3) the first day on which a majority of the members of the Company’s Board of
Directors are not Continuing Directors; or

     (4) the consummation of any transaction or series of related transactions (including,
without limitation, any merger or consolidation) the result of which is that any “person” or
“group” (as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended), other than the Company or one of its wholly-owned Subsidiaries, becomes the
beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of
shares of the Company’s Voting Stock, measured by voting power rather than number of shares;
provided that a merger shall not constitute a “change of control” under this definition if
(i) the sole purpose of the merger is the Company’s reincorporation in another state and
(ii) the Company’s shareholders and the number of shares of the Company’s Voting Stock,
measured by voting power and number of shares, owned by each of them immediately before and
immediately following such merger are identical.

          “Change of Control Repurchase Event” means the occurrence of both a Change of Control
and a Below Investment Grade Rating Event.

          “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term (as measured from the date of
redemption) of the series of the Notes to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of comparable maturity to the remaining term of such Notes.

          “Comparable Treasury Price” means, with respect to any redemption date, (i) the
average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii)
if only one Reference Treasury Dealer Quotation is received, such quotation.

          “Continuing Directors” means, as of any date of determination, any member of the
Company’s Board of Directors who (1) was a member of such Board of Directors on the date of the
issuance of the Notes; or (2) was nominated for election or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such Board of Directors
at the time of such nomination or election (either by a specific vote or by approval of the
Company’s proxy statement in which such member was named as a nominee for election as a director).

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          “Fitch” means Fitch Ratings.

          “Investment Grade” means a rating of BBB- or better by Fitch (or its equivalent under
any successor rating categories of Fitch), Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s) and a rating of BBB- or better by S&P (or its equivalent
under any successor rating categories of S&P) or the equivalent investment grade credit rating from
any additional Rating Agency or Rating Agencies selected by the Company.

          “Moody’s” means Moody’s Investors Service Inc.

          “Rating Agency” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch,
Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available
for reasons outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Securities Exchange Act of
1934, as amended, selected by the Company as a replacement agency for Fitch, Moody’s or S&P, as the
case may be.

          “S&P” means Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.

          “Quotation Agent” means any Reference Treasury Dealer appointed by the Company.

          “Reference Treasury Dealer” means (i) each of Banc of America Securities LLC and
Citigroup Global Markets Inc. (or their respective affiliates that are Primary Treasury Dealers)
and their respective successors; provided, however, that if any of the foregoing shall cease to be
a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”),
the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary
Treasury Dealer selected by the Company.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such redemption date.

          “Treasury Rate” means, with respect to any redemption date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

          “Voting Stock” means, with respect to any person, capital stock of any class or kind
the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such person, even if the right
so to vote has been suspended by the happening of such a contingency.

     Section 2.02 Other Definitions.

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	Term	 	Defined in Section
	 
	“Additional Notes”

	 	1.03
	“Company”

	 	Introduction
	“Existing Indenture”

	 	Introduction
	“Indenture”

	 	Introduction
	“Interest Payment Date”

	 	1.05(b)
	“Notes”

	 	Recitals
	“Regular Record Date”

	 	1.05(b)
	“Supplemental Indenture”

	 	Introduction
	“Trustee”

	 	Introduction

ARTICLE III

REDEMPTION

     Section 3.01 Optional Redemption.

          (a) The Notes will be redeemable, in whole at any time or in part from time to time, at the
Company’s option at a redemption price equal to the greater of:

	 	(i)	 	100% of the principal amount of the Notes to be redeemed; and
	 
	 	(ii)	 	the sum of the present values of the remaining scheduled payments of principal
and interest thereon (not including any portion of such payments of interest accrued as
of the date of redemption), discounted to the date of redemption on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus
30 basis points,

plus, in each case, accrued and unpaid interest thereon to the date of redemption. Notwithstanding
the foregoing, installments of interest on Notes that are due and payable on Interest Payment Dates
falling on or prior to a redemption date will be payable on the Interest Payment Date to the
registered Holders as of the close of business on the Regular Record Date according to the Notes
and the Indenture.

          (b) Notice of any redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder of the Notes to be redeemed by the Company or by the Trustee on
the Company’s behalf; provided that notice of redemption may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of

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the Notes or a satisfaction and discharge of the Notes. Unless the Company defaults in payment of
the redemption price, on and after the redemption date, interest will cease to accrue on the Notes
or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the
Notes to be redeemed shall be selected by lot by The Depository Trust Company, in the case of Notes
represented by a global Security, or by the Trustee by a method the Trustee deems to be fair and
appropriate, in the case of Notes that are not represented by a global Security.

ARTICLE IV

CHANGE OF CONTROL

     Section 4.01 Change of Control.

          (a) If a Change of Control Repurchase Event occurs, unless the Company has exercised its right
to redeem the Notes, the Company will make an offer to each Holder of Notes to repurchase all or
any part (in integral multiples of $1,000) of that Holder’s Notes at a repurchase price in cash
equal to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid
interest on the Notes repurchased to the date of purchase. Within 30 days following any Change of
Control Repurchase Event or, at the Company’s option, prior to any Change of Control, but after the
public announcement of an impending Change of Control, the Company will mail a notice to each
Holder, with a copy to the Trustee, describing the transaction or transactions that constitute or
may constitute the Change of Control Repurchase Event and offering to repurchase Notes on the
payment date specified in the notice, which date will be no earlier than 30 days and no later than
60 days from the date such notice is mailed. The notice shall, if mailed prior to the date of
consummation of the Change of Control, state that the offer to purchase is conditioned on the
Change of Control Repurchase Event occurring on or prior to the payment date specified in the
notice.

          (b) The Company will comply with the requirements of Rule 14e-1 under the Securities Exchange
Act of 1934, as amended, and any other securities laws and regulations thereunder, to the extent
those laws and regulations are applicable in connection with the repurchase of the Notes as a
result of a Change of Control Repurchase Event. To the extent that the provisions of any securities
laws or regulations conflict with the Change of Control Repurchase Event provisions of the Notes,
the Company will comply with the applicable securities laws and regulations and will not be deemed
to have breached its obligations under the Change of Control Repurchase Event provisions of the
Notes by virtue of such conflict.

          (c) On the Change of Control Repurchase Event payment date, the Company will, to the extent
lawful:

	 	(i)	 	accept for payment all Notes or portions of Notes (in integral multiples of $1,000) properly
tendered pursuant to the Company’s offer;
	 
	 	(ii)	 	deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of
all Notes or portions of Notes properly tendered; and

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	 	(iii)	 	deliver or cause to be delivered to the Trustee the Notes properly accepted, together with
an Officers’ Certificate stating the aggregate principal amount of Notes being purchased by the
Company.

          (d) The Paying Agent will promptly mail to each Holder of Notes properly tendered the purchase
price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of any Notes surrendered; provided, that each new Note will be in a principal amount of
$2,000 or an integral multiple of $1,000 above that amount.

          (e) The Company will not be required to make an offer to repurchase the Notes upon a Change of
Control Repurchase Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by the Company and such third party
purchases all Notes properly tendered and not withdrawn under its offer.

ARTICLE V

MISCELLANEOUS

     Section 5.01 Trust Indenture Act Controls.

     If any provision of this Supplemental Indenture limits, qualifies or conflicts with another
provision that is required or deemed to be included in this Supplemental Indenture by the Trust
Indenture Act, the required or deemed provision shall control.

     Section 5.02 Notices.

          Any notice or communication shall be in writing and delivered in person or mailed by
first-class mail or sent by facsimile (with a hard copy delivered in person or by mail promptly
thereafter) and addressed as follows:

if to the Company:

Hasbro, Inc.

1027 Newport Avenue

Pawtucket, Rhode Island 02862

Attention: General Counsel

Facsimile: (401) 729-7122

with a copy to:

Ropes & Gray LLP

One International Place

Boston, Massachusetts 02110

Attention: Julie Jones

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Facsimile: (617) 951-7050

if to the Trustee:

The Bank of Nova Scotia Trust Company of New York

One Liberty Plaza

New York, New York 10006

Attention: Corporate Trust Administration

Facsimile: (212) 225-5436

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

     Section 5.03 Governing Law.

          THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

     Section 5.04 No Personal Liability of Directors, etc.

          None of the Company’s directors, officers, employees, incorporators or stockholders, as such,
shall have any liability for any of the Company’s obligations under the Notes, the Indenture, or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes.

     Section 5.05 Successors.

          All agreements of the Company in the Indenture and the Notes shall bind its successors. All
agreements of the Trustee in the Indenture shall bind its successors.

     Section 5.06 Multiple Originals.

          The parties may sign any number of copies of this Supplemental Indenture. Each signed copy
shall be an original, but all of them together represent the same agreement. One signed copy is
enough to prove this Supplemental Indenture.

     Section 5.07 Table of Contents; Headings.

          The table of contents and headings of the Articles and Sections of this Supplemental Indenture
have been inserted for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

     Section 5.08 Not Responsible for Recitals or Issuance of Notes.

          The recitals contained herein and in the Notes, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the Trustee assumes no

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responsibility for their correctness. The Trustee makes no representation as to the validity
or sufficiency of this Supplemental Indenture or of the Notes. The Trustee shall not be
accountable for the Company’s use of the proceeds from the Notes or for monies paid over to the
Company pursuant to this Supplemental Indenture.

     Section 5.09 Adoption, Ratification and Confirmation. 

          The Existing Indenture, as supplemented and amended by this First Supplemental Indenture, is
in all respects hereby adopted, ratified and confirmed.

-12-

 

          IN WITNESS WHEREOF, the parties have caused this First Supplemental Indenture to be duly
executed as of the date first written above.

	 	 	 	 	 
	 	HASBRO, INC.

 	 
	 	By:  	/s/ David D.R. Hargreaves
 	 
	 	 	Name:  	David D.R. Hargreaves 	 
	 	 	Title:  	Executive Vice President, Finance and Global Operations
and Chief Financial Officer 	 
	 
	 	THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK, as Trustee

 	 
	 	By:  	/s/ Warren A. Goshin
 	 
	 	 	Name:  	Warren A. Goshine 	 
	 	 	Title:  	Vice President 	 

13

 

EXHIBIT A

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

CUSIP: 418056 AP 2

ISSUE DATE: September 17, 2007

HASBRO, INC.

6.30% NOTES DUE 2017

			
	 	 	 
	$350,000,000
	 	No.: R-1

          Hasbro Inc., a Rhode Island Corporation (herein called the “Company”), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of THREE
HUNDRED FIFTY MILLION DOLLARS ($350,000,000) or such other principal amount as shall be set forth
on Schedule I hereto on September 15, 2017 and to pay interest thereon at the rate of 6.30%, or as
may be adjusted pursuant to the terms hereof, per annum from September 17, 2007 or from the most
recent interest payment date to which interest has been paid or duly provided for, on March 15 and
September 15 of each year, commencing March 15, 2008 (each an “Interest Payment Date”),
until the principal hereof is paid or made available for payment.

          The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, except as provided in the Indenture hereinafter referred to, be paid to the Person in
whose name this Note (or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which will be the March 1 and September 1, as the
case may be, immediately preceding each Interest Payment Date. Any such interest not so punctually
paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record
Date and either may be paid to the Person in whose name this

A-1

 

Note (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice
whereof shall be given to the Holders not less than ten days prior to such Special Record Date, or
may be paid at any time in any other lawful manner, all as more fully provided in the Indenture.
Payment of the principal of and interest on this Note will be made at the office or agency of the
Company maintained for that purpose in New York, New York or in such other office or agency as may
be established by the Company pursuant to the Indenture (initially the principal corporate trust
office of the Trustee in New York, New York (the “Corporate Trust Office”), in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment of interest may be made at the option of
the Company (i) by check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or (ii) by wire transfer to an account maintained by the Person
entitled thereto as specified in the Security Register. Payments of principal and interest at
maturity will be made against presentation of this Note at the Corporate Trust Office (or such
other office as may be established pursuant to the Indenture), by check or wire transfer.

          All capitalized terms used herein and not otherwise defined shall have the meanings ascribed
to them in the Indenture dated as of March 15, 2000 as supplemented by the First Supplemental
Indenture dated as of September 17, 2007 (herein called the “Indenture”), between the
Company and The Bank of Nova Scotia Trust Company of New York as trustee (herein called the
“Trustee,” which term includes any successor Trustee under the Indenture).

          Reference is hereby made to the further provisions of this Note set forth on the reverse side
hereof, which further provisions shall for all purposes have the same effect as though fully set
forth at this place.

          Unless the certificate of authentication hereon has been executed by the Trustee under the
Indenture referred to on the reverse hereof by the manual signature of one of its authorized
officers, this Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

A-2

 

          IN WITNESS WHEREOF, the Company has caused this Note to be signed in its name by the manual or
facsimile signature of its President and Chief Executive Officer and attested by the manual or
facsimile signature of its Assistant Secretary.

Date: September 17, 2007

	 	 	 	 	 
	 	HASBRO, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Alfred J. Verrecchia 	 
	 	 	Title:  	President and Chief Executive Officer 	 

	 	 	 	 	 
	ATTEST:
 	 	 
	 	 	 
	Name:  	Tarrant L. Sibley 	 	 
	Title:  	Assistant Secretary 	 	 

Trustee’s Certificate of Authentication

          This is one of the Notes described in the Indenture.

Dated: September 17, 2007

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory: 	 
	 	 	 	 

A-3

 

(Reverse of Note)

HASBRO, INC.

6.30% NOTES DUE 2017

          1. Interest. The Company promises to pay interest on the principal amount of this Note at the
rate per annum shown above, as may be adjusted as set forth below. The Company will pay interest
semiannually on March 15 and September 15 of each year, beginning March 15, 2008. Interest on the
Notes will accrue from the most recent date to which interest has been paid or, if no interest has
been paid from September 17, 2007; provided, that, if there is no existing Event of Default in the
payment of interest, and if this Note is authenticated between a record date referred to on the
face hereof and the next succeeding Interest Payment Date, interest shall accrue from such Interest
Payment Date. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

          The interest rate payable on the Notes will be subject to adjustments from time to
time if any of Moody’s, S&P or Fitch downgrades (or subsequently upgrades) the debt rating
assigned to the Notes, as set forth below.

          If the rating on the Notes from Moody’s, S&P or Fitch is a rating set forth in the immediately
following table, the per annum interest rate on the Notes will increase from 6.30% by the
percentage set forth opposite that rating:

	 	 	 	 	 	 	 	 	 	 	 
	Rating	 	Rating Agency	 	 	 
	Level	 	Moody’s	 	S&P	 	Fitch	 	Percentage
	 
	 	 	 	 	 	 	 	 	 	 
	1

	 	Ba1
	 	BB+
	 	BB+
	 	 	0.25	%
	2

	 	Ba2
	 	BB
	 	BB
	 	 	0.50	%
	3

	 	Ba3
	 	BB-
	 	BB-
	 	 	0.75	%
	4

	 	B1 or below
	 	B or below
	 	B or below
	 	 	1.00	%

     If any of Moody’s, S&P or Fitch subsequently increases its rating with respect to the
Notes to any of the threshold ratings set forth above, the per annum interest rate on such Notes
will be decreased such that the per annum interest rate equals 6.30% plus the percentages
applicable to the lowest two ratings levels of Moody’s, S&P and Fitch in effect immediately
following the increase.

     In determining the increase or decrease, if any, the percentage applicable to the lowest two
ratings levels of Moody’s, S&P and Fitch shall be used.

     Each adjustment required by any decrease or increase in a rating set forth above, whether
occasioned by the action of Moody’s, S&P or Fitch, shall be made independent of any and all other
adjustments. In no event shall (1) the per annum interest rate on a series of Notes be reduced
below 6.30%, and (2) the total increase in the per annum interest rate on a series of Notes exceed
2.00% above 6.30%.

A-4

 

     If any of two of Moody’s, S&P or Fitch ceases to provide a rating of the Notes, any subsequent
increase or decrease in the interest rate of the Notes necessitated by a reduction or increase in
the rating by the agency continuing to provide the rating shall be twice the percentage set forth
in the table above. No adjustments in the interest rate of the Notes shall be made solely as a
result of Moody’s, S&P or Fitch ceasing to provide a rating. If all of Moody’s, S&P and Fitch cease
to provide a rating of the Notes, the interest rate on the Notes will increase to, or remain at, as
the case may be, 2.00% above the interest rate payable on the Notes on the date of their issuance.

     Any interest rate increase or decrease described above will take effect from the first day of
the interest period during which a rating change requires an adjustment in the interest rate.

          The interest rates on a series of Notes will permanently cease to be subject to any adjustment
described above (notwithstanding any subsequent decrease in the ratings by either or both rating
agencies) if the series of Notes becomes rated A3, A- or A- or higher by any two of Moody’s, S&P
and Fitch, respectively (or one of these ratings if only rated by one rating agency), with a stable
or positive outlook by both such rating agencies.

          “Fitch” means Fitch Ratings.

          “Moody’s” means Moody’s Investors Service Inc.

          “S&P” means Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.

          2. Method of Payment. The Company will pay interest on the Notes (except defaulted interest)
to the Persons who are the registered Holders of the Notes at the close of business on the March 1
or September 1 next preceding the Interest Payment Date. The Company will pay principal and
interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. The Company, however, may pay principal and interest by its check payable
in such money.

          The principal of and interest on this Note shall be payable at the office or agency of the
Company maintained for that purpose; provided, however, that, payment of interest may be made at
the option of the Company (i) by check mailed to the Holder at such address as shall appear in the
Security Register or (ii) by transfer to an account maintained by the Person entitled thereto,
provided that proper written transfer instructions have been received by the relevant record date.

          The foregoing notwithstanding, principal of and interest on Notes which are represented by
global Securities held of record by the Depositary will be payable in same-day funds.

          3. Registrar and Agents. Initially, The Bank of Nova Scotia Trust Company of New York will act
as Registrar, Paying Agent and agent for service of notices and demands. The Company or any of its
Subsidiaries may act as Paying Agent. The address of The Bank of Nova Scotia Trust Company of New
York is One Liberty Plaza, 23rd Floor, New York, New York 10006.

A-5

 

          4. Indenture; Limitations. The Company issued the Notes under the Indenture dated as of March
15, 2000 as supplemented by the First Supplemental Indenture dated as of September 17, 2007 (the
“Indenture”), between the Company and The Bank of Nova Scotia Trust Company of New York, as
trustee (in such capacity, the “Trustee”). Capitalized terms herein are used as defined in
the Indenture unless otherwise defined herein. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended, 15 U.S.C. ss.ss. 77aaa-77bbbb (the “TIA”), as in effect on the date of the
Indenture. The Notes are subject to all such terms, and the Holders of the Notes are referred to
the Indenture and the TIA for a statement of them.

          The Notes are senior unsecured obligations of the Company ranking pari passu with all other
unsecured and unsubordinated indebtedness of the Company from time to time outstanding, and are
limited to $350,000,000 aggregate principal amount. The Indenture imposes certain limitations on
the ability of the Company to, among other things, merge or consolidate with any other Person and
sell, lease, transfer or otherwise dispose of all or substantially all of its properties or assets
or to engage in Sale and Leaseback Transactions.

          5. Optional Redemption by the Company. The Notes will be redeemable, in whole at any time or
in part from time to time, at the Company’s option at a redemption price equal to the greater of:

	 	(i)	 	100% of the principal amount of the Notes to be redeemed; and
	 
	 	(ii)	 	the sum of the present values of the remaining scheduled payments of principal
and interest thereon (not including any portion of such payments of interest accrued as
of the date of redemption), discounted to the date of redemption on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus
30 basis points,

plus, in each case, accrued and unpaid interest thereon to the date of redemption. Notwithstanding
the foregoing, installments of interest on Notes that are due and payable on Interest Payment Dates
falling on or prior to a redemption date will be payable on the Interest Payment Date to the
registered Holders as of the close of business on the Regular Record Date according to the Notes
and the Indenture.

          Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder of the Notes to be redeemed by the Company or by the Trustee on the
Company’s behalf; provided that notice of redemption may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction and discharge of the Notes. Unless the Company defaults in payment of the redemption
price, on and after the redemption date, interest will cease to accrue on the Notes or portions
thereof called for redemption. If less than all of the Notes are to be redeemed, the Notes to be
redeemed shall be selected by lot by The Depository Trust Company, in the case of Notes represented
by a global Security, or by the Trustee by a method the Trustee deems to be fair and appropriate,
in the case of Notes that are not represented by a global Security.

A-6

 

          “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term (as measured from the date of
redemption) of the series of the Notes to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of comparable maturity to the remaining term of such Notes.

          “Comparable Treasury Price” means, with respect to any redemption date, (i) the
average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii)
if only one Reference Treasury Dealer Quotation is received, such quotation.

          “Quotation Agent” means any Reference Treasury Dealer appointed by the Company.

          “Reference Treasury Dealer” means (i) each of Banc of America Securities LLC and
Citigroup Global Markets Inc. (or their respective affiliates that are Primary Treasury Dealers)
and their respective successors; provided, however, that if any of the foregoing shall cease to be
a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”),
the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary
Treasury Dealer selected by the Company.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such redemption date.

          “Treasury Rate” means, with respect to any redemption date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

          6. Change of Control Repurchase Event. If a Change of Control Repurchase Event occurs, unless
the Company has exercised its right to redeem the Notes, the Company will make an offer to each
holder of Notes to repurchase all or any part (in integral multiples of $1,000) of that Holder’s
Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Notes
repurchased plus any accrued and unpaid interest on the Notes repurchased to the date of purchase.
Within 30 days following any Change of Control Repurchase Event or, at the Company’s option, prior
to any Change of Control, but after the public announcement of an impending Change of Control, the
Company will mail a notice to each holder, with a copy to the Trustee, describing the transaction
or transactions that constitute or may constitute the Change of Control Repurchase Event and
offering to repurchase Notes on the payment date specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice is mailed. The notice
shall, if mailed prior to the date of consummation of the Change of Control, state that the offer
to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the
payment date specified in the notice.

A-7

 

          The Company will comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended, and any other securities laws and regulations thereunder, to the extent those
laws and regulations are applicable in connection with the repurchase of the Notes as a result of a
Change of Control Repurchase Event. To the extent that the provisions of any securities laws or
regulations conflict with the Change of Control Repurchase Event provisions of the Notes, the
Company will comply with the applicable securities laws and regulations and will not be deemed to
have breached its obligations under the Change of Control Repurchase Event provisions of the Notes
by virtue of such conflict.

          On the Change of Control Repurchase Event payment date, the Company will, to the extent
lawful:

	 	(i)	 	accept for payment all Notes or portions of Notes (in integral multiples of $1,000) properly
tendered pursuant to the Company’s offer;
	 
	 	(ii)	 	deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of
all Notes or portions of Notes properly tendered; and
	 
	 	(iii)	 	deliver or cause to be delivered to the Trustee the Notes properly accepted, together with
an Officers’ Certificate stating the aggregate principal amount of Notes being purchased by the
Company.

          The Paying Agent will promptly mail to each Holder of Notes properly tendered the purchase
price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of any Notes surrendered; provided, that each new Note will be in a principal amount of
$2,000 or an integral multiple of $1,000 above that amount.

          The Company will not be required to make an offer to repurchase the Notes upon a Change of
Control Repurchase Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by the Company and such third party
purchases all Notes properly tendered and not withdrawn under its offer.

          “Below Investment Grade Rating Event” means the Notes are rated below Investment Grade
by each of the Rating Agencies on any date from the date of the public notice of an arrangement
that could result in a Change of Control until the end of the 60-day period following public notice
of the occurrence of a Change of Control (which period shall be extended so long as the rating of
the Notes is under publicly announced consideration for possible downgrade by any of the Rating
Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect of a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes
of the definition of Change of Control Repurchase Event hereunder) if any of the Rating Agencies
making the reduction in rating to which this definition would otherwise apply does not announce or
publicly confirm or inform the Trustee in writing at its request that the reduction was the result,
in whole or in part, of any event or circumstance comprised of or arising as a result of, or in
respect of, the applicable Change of Control (whether

A-8

 

or not the applicable Change of Control shall have occurred at the time of the Below
Investment Grade Rating Event).

          “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the Company’s properties or assets and those of the Company’s
Subsidiaries taken as a whole to any “person” or “group” (as that term is used in Section
13(d)(3) of the Securities Exchange Act of 1934, as amended), other than the Company or one
of its Subsidiaries;

     (2) the adoption of a plan relating to the Company’s liquidation or dissolution;

     (3) the first day on which a majority of the members of the Company’s Board of
Directors are not Continuing Directors; or

     (4) the consummation of any transaction or series of related transactions (including,
without limitation, any merger or consolidation) the result of which is that any “person” or
“group” (as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended), other than the Company or one of its wholly-owned Subsidiaries, becomes the
beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of
 shares of the Company’s Voting Stock, measured by voting power rather than number of shares;
provided that a merger shall not constitute a “change of control” under this definition if
(i) the sole purpose of the merger is the Company’s reincorporation in another state and
(ii) the Company’s shareholders and the number of shares of the Company’s Voting Stock,
measured by voting power and number of shares, owned by each of them immediately before and
immediately following such merger are identical.

          “Change of Control Repurchase Event” means the occurrence of both a Change of Control
and a Below Investment Grade Rating Event.

          “Investment Grade” means a rating of BBB- or better by Fitch (or its equivalent under
any successor rating categories of Fitch), Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s) and a rating of BBB- or better by S&P (or its equivalent
under any successor rating categories of S&P) or the equivalent investment grade credit rating from
any additional Rating Agency or Rating Agencies selected by the Company.

          “Voting Stock” means, with respect to any person, capital stock of any class or kind
the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such person, even if the right
so to vote has been suspended by the happening of such a contingency.

          7. Convertibilty. The Notes are not Convertible Debt Securities.

A-9

 

          8. Sinking Fund. The Notes are not subject to any sinking fund.

          9. Governing Law. The Notes and the Indenture shall be deemed to be contracts made under the
laws of the State of New York, and for all purposes shall be construed in accordance with the laws
of said state.

          10. Discharge Prior to Maturity. The Company may elect under certain conditions either (A) to
defease and be discharged from any and all obligations with respect to the Notes (except as
otherwise provided in the Indenture) (“defeasance”) or (B) with respect to such Notes, to
be released from its obligations with respect to such Notes relating to restrictions on secured
debt and restrictions on Sale and Leaseback Transactions, pursuant to Sections 10.09 and 10.10 of
the Indenture, respectively, (“covenant defeasance”), upon the irrevocable deposit with the
Trustee, in trust for such purpose, of money, and/or U.S. Government Obligations which through the
payment of principal and interest in accordance with their terms will provide money in an amount
sufficient to pay the principal of and interest, if any, on such Notes on the scheduled due dates
therefor. Such a trust may only be established if, among other things, the Company has delivered to
the Trustee an Opinion of Counsel to the effect that (i) the Holders of such Notes will not
recognize income, gain or loss, for federal income tax purposes as a result of such defeasance or
covenant defeasance and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such defeasance or covenant defeasance
had not occurred (such opinion, in the case of defeasance under clause (A) above, must refer to and
be based upon a ruling of the Internal Revenue Service) and (ii) if the deposit referred to above
shall include U.S. Government Obligations, such deposit shall not result in the Company, the
Trustee or such trust being regulated as an “investment company,” under the Investment Company Act
of 1940, as amended.

          11. Denominations, Transfer, Exchange. The Notes shall be known and designated as the “6.30%
Notes due 2017.” The initial maximum aggregate principal amount of the Notes that may be
authenticated and delivered under the Supplemental Indenture shall not exceed $350,000,000 except
for Notes authenticated and delivered upon registration or transfer of, or in exchange for, or in
lieu of, Notes pursuant to Sections 2.02, 3.04, 3.05, 3.06 or 9.05 of the Existing Indenture
(unless the issue of this series of Notes is “reopened” by issuing additional Notes of such series
(the “Additional Notes”), in an amount or amounts and registered in the names of such
Persons as shall be set forth in any written order of the Company for the authentication and
delivery of the Notes pursuant to Section 3.03 of the Existing Indenture. The Notes are issuable in
registered form without coupons in denominations of $2,000 principal amount and integral multiples
of $1,000 thereof. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture.

          12. Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all
purposes.

A-10

 

          13. Amendment and Waiver. Subject to certain exceptions, without notice to the Holders of the
Notes, the Indenture or the Notes may be amended with the consent of (i) the Holders of not less
than a majority in principal amount of the Outstanding Notes, or (ii)
in case less than all of the several series of Notes are affected by such amendment, the Holders of
not less than a majority in principal amount of each series so affected voting as a single class;
and any existing default or compliance with any provision may be waived with the consent of
the Holders of a majority in principal amount of the Notes then outstanding. Without the consent of
or notice to any Holder of Notes, the Company may amend the Indenture or the Notes to, among other
things, cure any ambiguity, to correct or supplement any provision of the
Indenture which may be defective or inconsistent with any other provision of the Indenture, or make
any other provisions with respect to matters or questions arising under the Indenture, provided
that such other provision does not adversely affect the interests of the Holders in any material
respect.

          14. Defaults and Remedies. If an Event of Default, as defined in the Indenture, occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of Notes may declare all
the Notes to be due and payable immediately in the manner and with the effect provided in the
Indenture. Holders of Notes may not enforce the Indenture or the Notes except as provided in the
Indenture. The Trustee may require indemnity satisfactory to it, subject to the provisions of the
TIA, before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a
majority in principal amount of the Notes then outstanding may direct the Trustee in writing in its
exercise of any trust or power with respect to the Notes.

          15. Trustee Dealings with the Company. The Bank of Nova Scotia Trust Company of New York, the
Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not Trustee.

          16. No Recourse Against Others. No stockholder, director, officer or incorporator, as such,
past, present or future, of the Company or any successor corporation or trust shall have any
liability for any obligation of the Company under the Notes or the Indenture or for any claim based
on, in respect of or by reason of, such obligations or their creation. Each Holder of a Note by
accepting a Note waives and releases all such liability. This waiver
and release are part of the consideration for the issuance of the Notes.

          17. Authentication. This Note shall not be valid until the Trustee signs the certificate of
authentication on the other side of this Note.

          18. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint
tenants with rights of survivorship and not as tenants in common), CUST (= Custodian), AND U/G/M/A
(= Uniform Gifts to Minors Act).

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to: Hasbro, Inc. 1027 Newport Avenue, Pawtucket, Rhode Island
02862, Attention: General Counsel.

A-11

 

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

			
	 	 	 
	 	 	 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

	 	 	 
	 

	 	 
	 

	 	 
	 

	 	 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing                     
                                                             attorney to transfer said Note on the books of the Company, with full
power of substitution in the premises.

Dated:                                         

Signature:                                                             

	 	 	 
	NOTICE:

	 	THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
THE WITHIN INSTRUMENT IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER.

Signature Guarantee:

SIGNATURE GUARANTEE

          Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

A-12

 

Schedule I

SCHEDULE OF TRANSFERS AND EXCHANGES

     The following increases or decreases in Principal Amount of this Global Security have been
made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of this	 	Signature of
	 	 	Amount of Decrease in	 	Amount of Increase in	 	Global Security	 	Authorized
	Date of	 	Principal Amount of	 	Principal Amount of	 	following such Decrease	 	Signatory of trustee
	Exchange	 	this Global Security	 	this Global Security	 	or Increase	 	or Custodian

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