Each PRP formula award contains a performance component related to overall Hasbro company performance. For 2017, the Company component is measured by Sales, Operating Margin, and Returns. Overall Company performance is determined by individually assessing performance against goal for each metric, applying the acceleration/deceleration scale, weighting each metric and summing the total. The weighting and definition of the overall Company measures are:

Bonus formula metrics for level 80 employees are based on the employee’s role and will be comprised of either 100% overall company performance with a personal performance modifier (see note below) or be based on 40% overall company performance and 60% Business Area performance with a personal performance modifier (see note below).

Company Performance Objectives. Each Plan Year, # the Committee shall approve Company Performance Objectives for that Plan Year for the [Section 16] Officers, and # the CEO shall approve Company Performance Objectives for that Plan Year for other Participants. The Company Performance Objectives may relate to performance at the corporate, segment or business unit level. The Company Performance Objectives will be communicated in writing to the Participants. In establishing Company Performance Objectives, the Committee or the CEO, as applicable, may take into account such factors as it deems appropriate, including, without limitation, prior year results, planned business results, anticipated business trends, performance relative to peer companies and macroeconomic conditions.

Future base salary reviews will be conducted on an annual basis and be subject to individual performance and overall Company performance.

Purpose of Award and Performance Goals. This Award was made to provide additional emphasis on and incentive for the attainment of the following Company performance goals on an overall basis during the three-year performance period from ​ through ​.

Target bonus awards are expressed as a percentage of the employee’s eligible earnings for each calendar year. Eligible earnings are defined as regular earnings paid during the year, holiday, vacation, and personal leave time. The target percentages will vary by position level. A participant’s actual bonus award may vary above or below the targeted level based on corporate performance, the overall performance of his or her business unit relative to the overall performance of the Company, and the participant’s performance in relation to his or her pre-determined individual objectives.

The formula incentive award is a calculation of an award based on the actual performance achieved by the overall Company, and each of its applicable Business Areas or Commercial Areas, as well as the budgeted individual performance percentage to be applied across the Company as a whole.

be measured annually (“Annual Target Scoring”). The sum of the weighted Annual Target Scorings will determine the overall Operating Performance Targets achievement over the Performance Period. This calculation determines the Final Operating Payout Percentage.

If sales is achieved at 100% of target (which results in 100% payout based on the acceleration/deceleration scale) and operating margin is achieved at 85% of target (which results in at 70% payout) but returns does not reach threshold performance, then overall Company performance will only pay out on sales and operating margin. The aggregate weighted payout would be:

•Individual Threshold – is solely determined at the discretion of the Board upon their end of year review of the overall Company’s financial condition and operating performance.