Exhibit 10.1

 

April 19, 2018

Ynon Kreiz

VIA ELECTRONIC DELIVERY

Dear Ynon,

We are pleased to offer you the position of Chief Executive Officer of Mattel, Inc. (the “Company” or “Mattel”), effective as of April 26, 2018 (the “Effective Date”) on the terms set forth in this letter. As Mattel’s Chief Executive Officer, you will report directly to the Board of Directors of the Company (the “Board”) and devote your full business time and attention to the business and affairs of the Company except as otherwise approved by the Board or set forth in this letter. Your primary work location will be the Company’s El Segundo headquarters. You may continue your existing external board of director and charitable or community organization commitments as you have disclosed to the Company prior to the date hereof, and in the event you cease to serve on such existing external boards, you shall be permitted to serve on one external board, subject to the approval of the Board.

BASE SALARY

As of the Effective Date, your annualized base salary for service as Chief Executive Officer will be $1,500,000, payable on a biweekly basis less applicable federal and state taxes and other required withholdings. The Compensation Committee of the Board (the “Compensation Committee”) will review your base salary on a periodic basis, but not less than annually, consistent with the Company’s compensation review practices. During the course of such review, the Compensation Committee may increase, but not decrease, your base salary as it deems appropriate. You will not be entitled to any additional compensation for your services as a member of the Board.

MATTEL INCENTIVE PLAN

You will be eligible to participate in the Mattel Incentive Plan (“MIP”), which is our way of rewarding our employees for achieving success. The MIP is an annual, cash bonus plan that provides employees the opportunity to earn an award based on Mattel’s financial performance. You are eligible for a target MIP award of 150% of your base salary, up to a maximum of 300%. The amount of your actual award will be determined by the Compensation Committee and will be based on achievement of pre-established performance targets as established by the Compensation Committee. For the avoidance of doubt, your 2018 MIP award will be earned based on the MIP performance metrics previously established for MIP awards of the other senior executive officers of the Company and will be prorated based on a fraction equal to (x) the number of days between the Effective Date and December 31, 2018, divided by (y) 365. MIP

awards are typically paid during the first quarter of the following year and, in any event, by March 15 of the following year.

STOCK – EQUITY GRANTS

New Hire Equity Grant

As an inducement to your employment with the Company, you will receive a stock option grant to purchase a number of shares of Mattel stock equal to $5,000,000, divided by a Black-Scholes value determined by using the average of the closing trading prices of the Company’s common stock over the twenty (20) consecutive trading days ending on the date immediately prior to the grant date.

 

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This new hire option grant will cliff vest at the end of a three-year performance period that begins on the Effective Date, subject to the Company achieving a relative total shareholder return over such period that is equal to or greater than 65 th percentile, as compared to the S&P 500 Index as of the end of such period. The foregoing performance metric shall be established and measured, and performance achievement otherwise determined, in the same manner and pursuant to the same terms as are set forth in that certain Performance Unit award agreement to be used in connection with the 2018 LTIP program (as discussed below). In the event of a termination of your employment (i) by the Company without Cause or (ii) due to your death or permanent disability, the option grant, to the extent then outstanding and unvested, will vest in full and will remain exercisable until the earlier to occur of (x) the third anniversary (or in the event of a termination of your employment due to your death or permanent disability, the fifth anniversary) of the termination date or (y) the expiration of the term of the option.

 

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The exercise price of the stock options will equal the closing price of Mattel stock on the grant date, and, in accordance with the Company’s new hire grant policy, the grant date will occur on the last trading day of the month in which the Effective Date occurs.

Please note that this is a summary of your new hire grant, and you will be required to accept online the stock option grant agreement that sets forth the terms and conditions that govern your stock option grant, which shall be otherwise consistent with the form of stock option grant agreement used under the LTI program for senior executive officers of the Company (discussed below).

Long-Term Incentive Equity Grants

The Company’s current portfolio approach to long-term incentives (“LTI”) is comprised of performance-based restricted stock units (“Performance Units”) under our Long-Term Incentive Program (“LTIP”), time-vesting restricted stock units (“RSUs”) and stock options. Your 2018 LTI grant value will be $8,250,000, delivered 33.3% each in Performance Units, RSUs and stock options, subject to requisite Compensation Committee approvals. Your 2018

 

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Performance Units will be granted to you, in accordance with the Company’s new hire grant policy, on the last trading day of the month in which the Effective Date occurs, and otherwise will vest on the same terms and conditions as the Performance Units already granted in April 2018 to the other senior executive officers of the Company. Your 2018 RSUs and options will be granted to you at the same time that annual grants of 2018 RSUs and options are made to senior executive officers of the Company. Thereafter, your LTI values may vary each year as determined by the Compensation Committee.

To the extent that the vesting and/or exercisability provisions set forth above with respect to the awards described under the heading “STOCK – EQUITY GRANTS” are inconsistent with the vesting and/or exercisability provisions in the Mattel, Inc. Amended and Restated 2010 Equity and Long-Term Incentive Plan under which such awards are granted, the provisions set forth above shall control with respect to such awards.

STOCK OWNERSHIP

You will be subject to stock ownership guidelines based on a multiple of base salary. Currently, the guidelines call for a stock ownership requirement equal to six times your base salary. You must meet this requirement within five years of the Effective Date.

PERQUISITES

You will be eligible to receive a monthly automobile allowance in the amount of $2,000 for your automobile expenses, including mileage, gasoline, maintenance and insurance, payable on a biweekly basis, less applicable federal and state taxes and other required withholdings. You will also be eligible to receive financial counseling services from a Mattel selected company or you may elect to receive reimbursement from Mattel of up to $10,000 per year, less applicable federal and state taxes and other required withholdings, for financial counseling services through a company of your choice. You will also be eligible to receive a comprehensive physical examination annually.

DEFERRED COMPENSATION

You will be eligible to participate in the Mattel, Inc. Deferred Compensation & PIP Excess Plan. Under this plan, you may elect to defer a portion of your salary or annual MIP bonus, with various investment and payment options available. Additional information regarding this plan will be provided to you separately.

BENEFITS AND EMPLOYEE PROGRAMS

The Company offers a comprehensive benefits package and an extensive array of valuable programs and services designed to help our employees create a healthy lifestyle, build a financial future and enhance work/life balance.

Health and Welfare

The following is a brief outline of the health and welfare benefits in which you and your qualified dependents, if applicable, will be eligible to participate in as of the Effective Date, with

 

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the exception of short & long-term disability insurance, which are available upon the successful completion of your first 90 days of employment.

 

Medical		Life Insurance
Dental		Accidental Death & Dismemberment
Vision		Business Travel Coverage
Prescription		Short & Long-Term Disability

You will receive information about your health and welfare benefits separately.

Retirement/401(k)

Mattel provides eligible employees the opportunity to participate in a 401(k) retirement program that provides a variety of investment options. You will be automatically enrolled in the Mattel, Inc. Personal Investment Plan (“PIP”), which is a 401(k) savings/retirement plan, if you are age 20 or older. The PIP currently offers both Mattel automatic and matching contributions, which will be provided in the information provided separately to you regarding your 401(k) plan. You will receive more details regarding your contribution and investment options.

SEVERANCE

You will be a participant in the Mattel, Inc. Executive Severance Plan B (the “Severance Plan”) as modified by the terms of your participation letter agreement (the “Participation Letter Agreement”) in the form attached hereto as Appendix I and subject to the terms and conditions thereof. The modifications set forth in the attached Participation Letter Agreement shall control over any inconsistent provisions in the Severance Plan.

DEFINITIONS

“Cause” shall mean (i) your willful neglect of significant duties you are required to perform or your willful violation of a material Company policy; (ii) the commission by you of a material act of dishonesty, fraud, misrepresentation or other act of moral turpitude; (iii) your willful act or omission in the course of your employment which constitutes gross negligence; or (iv) your willful failure to obey a lawful direction of the Board; provided that, in each of (i) through (iv) above, unless the described activity cannot be cured, corrected or ceased, you have received written notice of the described activity, have been afforded a reasonable opportunity to cure or correct the activity described in the notice, and have failed to substantially cure, correct or cease the activity, as appropriate. However, to the extent you act in good faith with the reasonable belief that your conduct was in the best interest of the Company, such conduct shall not constitute Cause.

LEGAL FEES

The Company will reimburse you for up to $10,000 in legal fees actually incurred by you in connection with the review and negotiation of this letter on or prior to the Effective Date. The Company will reimburse such legal fees in 2018 as soon as practicable following your delivery to the Company of documentation reasonably satisfactory to the Company evidencing such fees.

 

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GOVERNING LAW

Except to the extent governed by Federal law, this letter shall be governed by and construed in accordance with the laws of the State of California, excluding laws relating to conflicts or choice of law.

GENERAL INFORMATION

This letter is only a summary of your compensation, benefit and employee program offerings. More details and plan provisions are provided in our summary plan descriptions, plan documents or program summaries, which govern and are subject to periodic modification and revision in the Company’s discretion (subject to the terms and conditions thereof).

To the extent that any payments or reimbursements provided to you under this letter are deemed to constitute compensation to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such payments or reimbursements shall be made or provided in accordance with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended from time to time, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during your lifetime (or during a shorter period of time specified in this letter), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

This letter supersedes any prior communications you may have had with Company employees and/or representatives, and reflects the entire understanding between you and the Company, regarding the terms of employment being offered to you. No Company employee and/or representative has the authority to make any promise related to this offer that is not contained in this letter and, by signing below, you affirm that you have not signed this letter in reliance on any such promise. By signing below, you confirm that your negotiation, acceptance and/or performance of the terms of this offer does not violate any contract or arrangement you may have with any third party. If the Company (in its sole discretion) determines that your confirmation may be inaccurate for any reason, it can be a basis for terminating your employment with Cause. By signing below, you agree to indemnify the Company and the Mattel family of companies against any claims that may be brought against such companies relating to any allegation that you violated any contract or arrangement between you and such third party.

The terms of this letter do not constitute a contract of employment for a definite term, and do not obligate the Company to employ you, or you to work for the Company, for any particular period of time. Your employment with the Company will be “at will,” and both you and the Company have the right to terminate your employment at any time, for any or no reason, with or without prior notice or Cause. The at-will relationship cannot be changed by any person, statement, act, series of events, or pattern of conduct, but only by express, individual written

 

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employment agreement signed by a duly authorized member of the Compensation Committee or the Chief Human Resources Officer of Mattel. For purposes of clarity, your participation in any stock option, incentive, or benefit program will not be construed as (i) any assurance of continuing employment for any particular period of time, or (ii) a restriction on the Company’s right to terminate your employment with or without prior notice or Cause.

Also, please note that you will continue to be considered an Insider for purposes of Mattel’s Insider Trading Policy and are subject to window period restrictions. This means that you are restricted to conducting transactions in Mattel stock ONLY during open window periods. Examples of such transactions include sales of shares underlying a stock option (including sales of shares to generate cash to pay the exercise price) and changes in elections in the Mattel stock fund of Mattel’s 401(k) plan. A copy of the Insider Trading Policy and other related information will be provided to you separately.

In addition, as a condition of your employment, you will need to sign an Employee Confidentiality and Inventions Agreement (in which you will be asked to disclose all prior inventions, if any, that you own), certify that you will, at all times, comply with Mattel’s Code of Conduct, and complete a conflict of interest questionnaire. If you would like to review any of these forms before you make your decision to accept our offer, we will be able to provide them.

Ynon, we are sincerely pleased to provide you with this offer and very much look forward to you joining the Mattel leadership team.

Please review the terms contained herein and sign below to indicate your understanding and concurrence. Also, note that I have enclosed two copies of this letter so that you can return a signed copy to me and retain one for your records. This letter may be executed in one or more counterparts, including electronically transmitted counterparts, each of which will be deemed an original and all of which together will be considered one and the same instrument.

If I can answer any questions, please do not hesitate to call me.

[ Signature Page Follows ]

 

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Agreed and Accepted:

/s/ Ynon Kreiz

Ynon Kreiz

Dated: April 19, 2018

[ Signature Page to Mattel Employment Letter Agreement ]

Exhibit 10.2

MATTEL, INC.

EXECUTIVE SEVERANCE PLAN B

Participation Letter Agreement for Ynon Kreiz

 

Employee

Name:   Ynon Kreiz

 

Re:	The Mattel, Inc. Executive Severance Plan B

Dear Ynon:

This participation letter agreement (“ Letter Agreement ”) relates to the Mattel, Inc. Executive Severance Plan B (the “ Plan ”).

Through this Letter Agreement, you are being offered the opportunity to become a participant in the Plan (a “ Participant ”), and thereby to be eligible to receive the severance benefits set forth therein, as modified below (the “ Modifications ”). The terms not defined in this Letter Agreement but beginning with a capital letter shall have the meaning assigned to them in the Plan.

1. In the event that you become entitled to a Severance Payment or CIC Severance Payment under the Plan, the amount of your Severance Payment or your CIC Severance Payment, as applicable, shall be equal to two (2.0) times the sum of your (x) annual base salary at the rate in effect at the time the Notice of Termination is given and (y) target annual bonus opportunity under the Mattel Incentive Plan or any successor plan (the “ MIP ”) for the year in which the Date of Termination occurs, and shall in paid in the form and at the times specified in the Plan (except that the reference to the 12-month period in Section 3(b)(iii)(I) and the reference to 18-month period in Section 3(c)(ii) shall be to a 24-month period). Section 3(b)(iii)(II) of the Plan shall not apply to you and in no event will you be entitled to any Income Continuation Payments under Section 3(b)(iii)(II) of the Plan or this Letter Agreement.

2. For purposes of this Letter Agreement and your participation in the Plan, “ Covered Termination ” shall mean that, at any time after the Participant’s Eligibility Date, the Participant’s employment with the Company is (i) involuntarily terminated by the Company without Cause at any time, or (ii) terminated by the Participant for Good Reason (as defined below) within twenty-four (24) months following a Change of Control.

3. For purposes of Section 3(c)(vi)(I) of the Plan, in the event of a Covered Termination within twenty-four (24) months following a Change in Control, you will be eligible for the Additional Benefits until the earlier of (x) twenty-four (24) months after the Date of Termination or (y) the date you accept New Employment.

4. For purposes of this Letter Agreement and your participation in the Plan, “ Good Reason ” shall mean that any one or more of the following have occurred without the express written consent of the Participant, provided that (i) the Participant provides Mattel with written notice of the Good Reason event in accordance with Section 15 of the Plan within ninety (90)

days of the initial existence of such event and (ii) such event is not remedied by Mattel within thirty (30) days following the delivery of written notice of such Good Reason event:

(a) any material diminution in any of the Participant’s duties, authority or responsibilities as Chief Executive Officer;

(b) the Company’s material reduction of the Participant’s base salary and target bonus opportunity, as in effect on the Eligibility Date or as the same may be increased from time to time;

(c) any other action or inaction that constitutes a breach by Mattel of this Letter Agreement or Section 12(a) of the Plan;

(d) any failure by Mattel to obtain the assumption and agreement to perform this Plan by a successor as contemplated by Section 13 of the Plan, except where such assumption and agreement occurs by operation of law; or

(e) any relocation of Participant’s principal office by more than 50 miles from its current location in El Segundo, California. The Participant may provide a Notice of Termination for a Good Reason event only if Mattel does not timely and reasonably remedy such event within the prescribed thirty (30) days.

5. For purposes of this Letter Agreement and your participation in the Plan, “ Notice of Termination ” shall mean a written notice delivered in accordance with Section 15 of the Plan which (i) if applicable, indicates the specific clause of the definition of Cause or Good Reason relied upon; (ii) if applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of a Participant’s employment for Cause or Good Reason under the provision so indicated; and (iii) specifies the Date of Termination. If Mattel does not timely and reasonably remedy the Good Reason event specified by the Participant in the notice to Mattel pursuant to the Good Reason definition above, then the Participant may resign for Good Reason by delivering a Notice of Termination within sixty (60) days following the end of Mattel’s thirty (30) day cure period set forth the Good Reason definition. If the Participant does not cure, correct or cease the activity described in the written notice to the Participant pursuant to Section 2(b) of the Plan, then Mattel may terminate the Participant’s employment for Cause by delivering a Notice of Termination to the Participant following the end of an appropriate cure period. The Plan Administrator’s discretion under Sections 8 and 9 of the Plan shall not apply to the determination as to whether a Good Reason event has occurred.

6. For purposes of this Letter Agreement and your participation in the Plan, the phrase “or the Chief Executive Officer” shall be deleted from clause (iv) of the definition of “ Cause ” in Section 2(b) of the Plan.

7. Notwithstanding anything in the Plan, any employment letter agreement or equity grant agreement to the contrary, in the event of a Covered Termination within twenty-four (24) months following a Change in Control, any unvested performance-based restricted stock units granted after May 17, 2018 that you then hold will become fully vested, based on the greater of actual or prorated target performance through the most recently completed applicable performance year in accordance with the applicable Equity Plan; but if after May 17, 2018,

 

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Mattel grants performance-based restricted stock units to other executives that contain more favorable vesting treatment under the applicable circumstances, any performance-based restricted units granted to you concurrently or at a later date will be granted on the basis of such more favorable vesting treatment.

8. For purposes of this Letter Agreement and your participation in the Plan, the defined term “ Severance Benefit ” shall capture the foregoing Modifications.

9. Notices to the Company under Section 15 of the Plan shall be sent to the attention of the Board of Directors of Mattel.

A copy of the Plan is attached to this Letter Agreement. You should read it carefully and become familiar with its terms and conditions, and those set forth below.

By signing below, you will be acknowledging and agreeing to the Modifications set forth above and the following additional provisions:

 

(i)

that you have received and reviewed a copy of the Plan;

 

(ii)

that participation in the Plan requires that you agree irrevocably and voluntarily to the terms of the Plan (including, without limitation, the covenants set forth in Section 7 of the Plan) and the terms set forth below; and

 

(iii)

that you have had the opportunity to carefully evaluate this opportunity, and desire to participate in the Plan according to the terms and conditions set forth herein.

Subject to the foregoing, we invite you to become a Participant in the Plan.

NOW, THEREFORE, you and Mattel (hereinafter referred to as “the parties”) hereby AGREE as follows:

1. The day you start employment with Mattel shall be your “ Eligibility Date ” for purposes of the Plan.

2. As a condition of receiving the Severance Benefit (other than the Accrued Amounts and Other Benefits), you must (a) execute and accept the terms and conditions of, and the effectiveness of, a General Release of All Claims (the “ Release ”) in substantially the form attached hereto as Exhibit A (which form may be modified by Mattel to the extent Mattel determines in good faith that any such modification is necessary to make it valid and encompassing under applicable law) and such Release must become irrevocable within fifty-five (55) days following your Date of Termination, (b) comply with the covenants set forth in Section 7 of the Plan and (c) promptly resign from any position as an officer, director or fiduciary of the Company and any Mattel-related entity.

3. In consideration of becoming eligible to receive the Severance Benefits provided under the terms and conditions of the Plan, you agree to waive any and all rights, benefits, and

 

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privileges to severance benefits that you might otherwise be entitled to receive under any other plan or arrangement of the Company except as otherwise provided in the Offer Letter.

4. You understand that the waiver set forth in Section 3 above is irrevocable for so long as this Letter Agreement is in effect, and that this Letter Agreement, the Offer Letter, and the Plan set forth the entire agreement between the parties with respect to any subject matter covered herein.

5. This Letter Agreement shall terminate, and your status as a Participant in the Plan shall end, on the first to occur of –

(a) your termination of employment for a reason other than a “Covered Termination” as defined in Section 2(e) of the Plan and modified by this Letter Agreement, and

(b) the first anniversary of your Eligibility Date; provided that commencing on the first day of the first month following the month in which your Eligibility Date occurs and on the first day of each month thereafter (the most recent of such dates is hereinafter referred to as the “ Renewal Date ”), your participation in the Plan shall be automatically extended so as to terminate one year from such Renewal Date, unless at least 90 days prior to any Renewal Date (including prior to your Eligibility Date) Mattel shall give notice to you that your participation in the Plan shall not be so extended beyond the first anniversary of such Renewal Date. Accordingly, you shall retain your status as a Participant for at least 15 months following any notice from Mattel that your participation in the Plan is not being extended.

6. Notwithstanding anything herein to the contrary, if a Change of Control occurs while you are a Participant in the Plan, in no event will your status as a Participant in the Plan end prior to the end of the twenty-four (24) month period beginning on a Change of Control regardless of when any written notification is given to you terminating your participation in the Plan (including any written notification given prior to such Change of Control) in accordance with Section 5(b).

7. Your participation in the Plan shall continue in effect following any Covered Termination that occurs while you are a Participant in the Plan with respect to all rights and obligations accruing as a result of such termination.

8. You recognize and agree that your execution of this Letter Agreement results in your enrollment and participation in the Plan, that you agree to be bound by the terms and conditions of the Plan and this Letter Agreement, and that you understand that this Letter Agreement may not be amended or modified except pursuant to Section 12 of the Plan.

9. This Letter Agreement may be executed in one or more counterparts, including electronically transmitted counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same instrument.

[ Signature Page Follows ]

 

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Dated: April 19, 2018		Mattel, Inc.
		By /s/ Robert Nomile

 

ACCEPTED AND AGREED TO this 19 ^th of April, 2018.

 

/s/ Ynon Kreiz

Ynon Kreiz

[ Signature Page to Mattel Participation Letter Agreement ]

EXHIBIT A TO PARTICIPATION LETTER AGREEMENT

GENERAL RELEASE

OF ALL CLAIMS

1. For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned (the “ Participant ”) does hereby on behalf of the Participant and the Participant’s successors, assigns, heirs and any and all other persons claiming through the Participant, if any, and each of them, forever relieve, release, and discharge Mattel, Inc. (“ Mattel ”) and its respective predecessors, successors, assigns, owners, attorneys, representatives, affiliates, Mattel corporations, subsidiaries (whether or not wholly-owned), divisions, partners and their officers, directors, agents, employees, servants, executors, administrators, accountants, investigators, insurers, and any and all other related individuals and entities, if any, and each of them (collectively, the “ Released Parties ”), in any and all capacities from any and all claims, debts, liabilities, demands, obligations, liens, promises, acts, agreements, costs and expenses (including, but not limited to attorneys’ fees), damages, actions and causes of action, of whatever kind or nature, including, without limiting the generality of the foregoing, any claims arising out of, based upon, or relating to the hire, employment, remuneration (including salary; bonus; incentive or other compensation; vacation, sick leave or medical insurance benefits; or other benefits) or termination of the Participant’s employment with Mattel.

2. This release (“ Release ”) includes a release of any rights or claims the Participant may have under the Age Discrimination in Employment Act, which prohibits age discrimination in employment as to individuals forty years of age and older; the Older Workers Benefit Protection Act, which prohibits discrimination against older workers in all executive benefits; Title VII of the Civil Rights Act of 1964, as amended in 1991, which prohibits discrimination in employment based on race, color, national origin, religion or sex; the California Fair Employment and Housing Act, which prohibits discrimination based on race, color, religion, national origin, ancestry, physical or mental disability, medical condition, sex, pregnancy-related condition, marital status, age or sexual orientation; the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; the American with Disabilities Act, which prohibits discrimination against qualified individuals with disabilities; or any other federal, state or local laws or regulations which prohibit employment discrimination, restrict an employer’s right to terminate the Participant, or otherwise regulate employment. This Release also includes a release by the Participant of any claims for breach of contract, wrongful discharge and all claims for alleged physical or personal injury, emotional distress relating to or arising out of the Participant’s employment with Mattel or the termination of that employment; any claims under the WARN Act or any similar law, which requires, among other things, that advance notice be given of certain work force reductions; and all claims under the Employee Retirement Income Security Act of 1974, such as claims relating to pension or health plan benefits. Notwithstanding anything else herein to the contrary, this Release shall not affect claims that relate to: (i) Participant’s right to enforce the terms of the Mattel, Inc. Executive Severance Plan B; (ii) any rights the Participant may have to indemnification from personal liability in accordance with the applicable charter, bylaws or other governing documents of Mattel, to the extent such documents are not inconsistent with Section 2802 of the California Labor Code; (iii) the Participant’s right, if any, to government-provided unemployment benefits; (iv) the Participant’s vested rights under

any of the Company’s retirement plans or equity plans; (vi) any rights the Participant may have to COBRA benefits; or (vii) any rights or claims that the law does not permit the Participant to release.

3. Notwithstanding any other provision of this Release, this Release does not apply to any rights or claims which arise after the execution of this Release.

4. This Release covers both claims that the Participant knows about and those the Participant may not know about. The Participant expressly waives all rights afforded by any statute (such as Section 1542 of the Civil Code of the State of California) which limits the effect of a release with respect to unknown claims. The Participant understands the significance of the Participant’s release of unknown claims and the Participant’s waiver of statutory protection against a release of unknown claims (such as under Section 1542). Section 1542 of the Civil Code of the State of California states as follows:

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

Notwithstanding the provisions of Section 1542, the Participant expressly acknowledges that this Release is intended to include both claims that the Participant knows about and those the Participant does not know or suspect to exist.

5. The Participant hereby represents and warrants that he or she has not filed, initiated, or prosecuted (or caused to be filed, initiated, or prosecuted) any lawsuit with respect to any claim this Release purports to waive, and the Participant covenants never to do so in the future, whether as a named plaintiff, class member, or otherwise. The Participant understands that this Release does not (a) require him/her to withdraw, or prohibit him/her from participating in an investigation, filing a charge or otherwise communicating with any federal, state or local government office, official or agency, including, but not limited to, the Equal Employment Opportunity Commission, Department of Labor, National Labor Relations Board or the Securities and Exchange Commission, (b) in any way interfere with his/her right and responsibility to give truthful testimony under oath, or (c) limit or affect his/her rights to challenge the validity of this Release under the ADEA or Older Workers Benefit Protection Act, as long as the Participant does not personally seek reinstatement, damages, remedies, or other relief as to any claim that the Participant released by signing this Release, as the Participant has waived any right the Participant might have had to any of those things.

If the Participant is ever awarded or recovers any amount as to a claim the Participant purported to waive in this Release, the Participant agrees that the amount of the award or recovery shall be reduced by the amounts he or she was paid under this Plan, increased appropriately for the time value of money, using an interest rate of 10% per annum. The Participant covenants never directly or indirectly to bring or participate in an action against any Released Party under California Business & Professions Code Section 17200 or under any other unfair competition law of any jurisdiction.

 

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6. The provisions of this Release are severable, and if any part of it is found to be unenforceable, the other paragraphs shall remain fully valid and enforceable. This Release shall be construed in accordance with its fair meaning and in accordance with the laws of the State of California, without regard to conflicts of laws principles thereof.

7. The Participant is strongly encouraged to consult with an attorney before signing this Release. The Participant acknowledges that the Participant has been advised of this right to consult an attorney and the Participant understands that whether to do so is the Participant’s decision. The Participant acknowledges that Mattel has advised the Participant that the Participant has twenty-one (21) days in which to consider whether the Participant should sign this Release and has advised the Participant that if the Participant signs this Release, the Participant has seven (7) days following the date on which the Participant signs the Release to revoke it and that the Release will not be effective until after this seven-day period had lapsed.

PLEASE READ THIS AGREEMENT CAREFULLY. IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

Date:
				Mattel, Inc.
Date:
				Participant

 

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