EXHIBIT 10.1 FIRST AMENDMENT TO SECOND AMENDED AND RESTATED TRANSFER AND ADMINISTRATION AGREEMENT FIRST AMENDMENT TO SECOND AMENDED AND RESTATED TRANSFER AND ADMINISTRATION AGREEMENT (this "Amendment"), dated as of July 31, 1995, by and among MATTEL SALES CORP., a California corporation, and FISHER-PRICE, INC., a Delaware corporation, as transferors (each, a "Transferor"), MATTEL, INC., a Delaware corporation, as guarantor and servicer (the "Guarantor" and the "Servicer"), THE BANKS LISTED ON THE SIGNATURE PAGES HEREOF (collectively, the "Banks") and NATIONSBANK OF TEXAS, N.A., a national banking association, as agent on behalf of the Banks (the "Agent") amending that certain Second Amended and Restated Transfer and Administration Agreement dated as of March 10, 1995, by and among the Transferors, the Guarantor, the Servicer, the Banks and the Agent (the "Original Agreement" and said agreement as amended by this Amendment, the "Agreement"). PRELIMINARY STATEMENTS WHEREAS, the Transferors have requested that the Banks agree to certain amendments to the Original Agreement and subject to the terms and conditions hereof the Banks have agreed to such amendments. NOW, THEREFORE, the parties hereby agree as follows: Section 1. Definitions. All capitalized terms used herein which are not otherwise defined are used as defined in the Original Agreement. Section 2. Amendment of Definition of "Eligible Receivable". Clause (ix) of the definition of "Eligible Receivable" set forth in Section 1.1 of the Original Agreement is hereby deleted in its entirety and replaced with the following: "(ix) the remaining term of which at the time of transfer hereunder does not extend beyond the next succeeding Remittance Date; and" Section 3. Amendment of Section 2.2. Section 2.2 of the Original Agreement is hereby amended by deleting the phrase "March 17" appearing in the proviso in the first paragraph of said Section and replacing such phrase with "December 27". Section 4. Representations and Warranties. The Transferors hereby make to each of the Banks, on and as of the date hereof, all of the representations and warranties set forth in Section 3.1 of the Original Agreement, except to the extent that any such representation or warranty relates to an earlier date. In addition, Mattel, Inc. hereby makes to each of the Banks, on and as of the date hereof, all the representations and warranties set forth in Section 3.2 of the Original Agreement, except to the extent that any such representation or warranty relates to an earlier date. SECTION 5. Conditions Precedent. This Amendment shall not become effective until the Agent shall have received the following: (a) An opinion of counsel to the Transferors with respect to certain corporate matters and the enforceability against the Transferors of the Original Agreement as amended hereby, in form and substance acceptable to the Agent; and (b) An opinion of counsel to Servicer and the Guarantor with respect to certain corporate matters and the enforceability against each of the Servicer and the Guarantor of the Original Agreement as amended hereby, in form and substance acceptable to the Agent. SECTION 6. Amendment and Waiver. No provision hereof may be amended, waived, supplemented, restated, discharged or terminated without the written consent of the parties hereto. SECTION 7. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of Governmental Rules provisions thereof. This Amendment together with the Original Agreement contains the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire Agreement among the parties hereto with respect to the subject matter hereof superseding all prior oral or written understandings. 2 SECTION 8. Severability; Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Amendment. Any provisions of this Amendment which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. SECTION 9. Captions. The captions in this Amendment are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. SECTION 10. Ratification. Except as expressly affected by the provisions hereof, the Original Agreement as amended by this Amendment shall remain in full force and effect in accordance with its terms and ratified and confirmed by the parties hereto. On and after the date hereof, each reference in the Original Agreement to "this Agreement", "hereunder", "herein" or words of like import shall mean and be a reference to the Original Agreement as amended by this Amendment. 3 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the date first above written. MATTEL SALES CORP., as Transferor By: /s/ William Stavro ------------------------- Name: WILLIAM STAVRO Title: Vice President and Treasurer FISHER-PRICE, INC., as Transferor By: /s/ William Stavro ------------------------- Name: WILLIAM STAVRO Title: Treasurer MATTEL, INC., as Guarantor and Servicer By: /s/ William Stavro ------------------------- Name: WILLIAM STAVRO Title: Sr. Vice President and Treasurer NATIONSBANK OF TEXAS, N.A., as Agent and a Bank By: /s/ Tom F. Schaffenberg -------------------------- Name: TOM F. SCHAFFENBERG Title: Vice President 4 BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION By: /s/ Robert W. Troutman ------------------------- Name: ROBERT W. TROUTMAN Title: Managing Director 5 PNC BANK, NATIONAL ASSOCIATION By: /s/ Ted A. Dunn ------------------------------- Name: TED A. DUNN Title: Assistant Vice President 6 CHEMICAL BANK By: /s/ David J. Corcoran ------------------------ Name: DAVID J. CORCORAN Title: Vice President 7 THE FIRST NATIONAL BANK OF BOSTON By: /s/ Debra Zurka --------------------- Name: DEBRA ZURKA Title: Vice President 8 TORONTO-DOMINION (TEXAS), INC. By: /s/ Diane Bailey --------------------- Name: DIANE BAILEY Title: Vice President 9 CITICORP USA, INC. By: /s/ Majorie Futornick ------------------------ Name: MAJORIE FUTORNICK Title: Vice President 10 ABN AMRO BANK N.V. By: /s/ Matthew S. Thomson --------------------------- Name: MATTHEW S. THOMSON Title: Group Vice President By: /s/ Patrick A. Russo ------------------------------- Name: PATRICK A. RUSSO Title: Assistant Vice President 11 DRESDNER BANK AG Los Angeles Agency By: /s/ Barbara J. Readick ---------------------- Name: BARBARA J. READICK Title: Vice President By: /s/ Dennis G. Blank ---------------------- Name: DENNIS G. BLANK Title: Vice President 12 MANUFACTURERS & TRADERS TRUST CO. By: /s/ Geoffrey R. Fenn ----------------------- Name: GEOFFREY R. FENN Title: Vice President 13 ISTITUTO BANCARIO SAN PAOLO DI TORINO SPA By: /s/ Glen Binder --------------------- Name: GLEN BINDER Title: Vice President By: /s/ Jean Chang ------------------------------- Name: JEAN CHANG Title: Assistant Vice President 14 THE BANK OF CALIFORNIA, N.A. By: /s/ Lynn E. Vine --------------------- Name: LYNN E. VINE Title: Vice President 15 BANQUE NATIONALE DE PARIS By: /s/ C. Bettles ---------------------------- Name: C. BETTLES Title: Senior Vice President & Manager By: /s/ Mitchell M. Ozawa ------------------------ Name: MITCHELL M. OZAWA Title: Vice President 16 MARINE MIDLAND BANK By: /s/ William M. Holland ------------------------- Name: WILLIAM M. HOLLAND Title: Vice President 17