Hasbro, Inc. 2020 Performance Rewards Program

1.0 Background

1.1 Performance Rewards Program (“PRP”)

•Establishes standard criteria to determine PRP eligibility and overall company or business objectives.

•Provides guidelines for the establishment of target incentive awards.

There are two plans to be funded under the PRP.

•1) Corporate Plan - Funding under the PRP for eligible employees of Hasbro, Inc. (the “Company”) and its subsidiaries is based on Company performance.

•2) WotC Plan - Funding under the PRP for eligible employees of Wizards of the Coast (“WotC”) and certain of its subsidiaries will be based on the performance of WotC and its subsidiaries.

•Performance objectives and goals are established to measure performance achievement and may be based on one or more of the following: Sales (Net Revenues), Operating Margin and Returns (Free Cash Flow) for Company performance, and Sales (Net Revenues) and Operating Margin for WotC performance.

1.2 Purpose

The Company has established this PRP (the “Plan”) for the purpose of providing incentive compensation to those employees who contribute significantly to the growth and success of the Company’s business; to attract and retain, in the employ of the Company, individuals of outstanding ability; and to align the interests of employees with the interest of the Company’s shareholders.

1.3 General Guideline

No employee has any legal entitlement to participate in the PRP or to receive an incentive award under the PRP.

1.4 Scope

The PRP is applicable to eligible employees of all global subsidiaries and divisions of the Company.

1.5 Eligibility

Management shall determine, in its sole discretion, those employees whose duties and responsibilities contribute significantly to the growth and success of the Company’s business and are eligible to participate in the PRP. Eligibility to participate in the PRP does not guarantee the receipt of an incentive award under the PRP. Unless otherwise required by law or determined by management, if an employee is eligible to participate in the PRP and/or any other annual incentive (or similar) plan implemented from time to time by the Company, such employee may

only participate in one plan at the same time, as determined by the Company in its sole discretion. For purposes of clarity, the Sales Rewards Program for 2020 has been terminated, and employees who participated in such plan shall be subject to the PRP as follows: participation for employees of North America shall commence effective January 1, 2020, and participation for employees of EMEA, Latin America and Asia Pacific shall be effective as of April 1, 2020, and any amounts to which such employees may become eligible shall be pro-rated from April 1, 2020 through the end of the fiscal year.

Eligible employees will be assigned to the Corporate Plan or the WotC Plan at the Company’s sole discretion.

2.0 Incentive Award Levels

2.1 Target Incentive Award

Except as otherwise determined by the Company, target incentive awards are expressed as a percentage of earned salary for the PRP year. For purposes of this PRP, earned salary means all base compensation for the participant for the year in question, which base compensation shall include all base compensation amounts deferred into the Company’s retirement savings plan, the Company’s Non-Qualified Deferred Compensation Plan and/or any similar successor plans for the fiscal year and excludes, where allowed by law, any bonus or other benefits, other than base compensation, for the PRP year. By design, the target incentive awards are the award levels that PRP participants are eligible to earn when they, the Company or their applicable business units perform as expected (i.e., achieve their goals and objectives). Target incentive awards may be determined by job level, previously determined percentage of base salary in the case of employees of Entertainment One entities (collectively, “eOne”), or previously determined percentage in the case of employees of the Company previously subject to the Sales Rewards Program. Target incentive awards may also vary by region.

2.2 Maximum Incentive Award

Under the PRP, the maximum incentive award for employees below job level 80 is 200% of the target incentive award. The maximum incentive award for employees in a job level 80 or above is 300% of the target incentive award.

3.0 Measures of Performance for 2020

•PRP funding for the Corporate Plan is based on 100% Company performance.

•PRP funding for the WotC Plan is 80% WotC performance and 20% Company performance.

3.1 Establishing Company or WotC Performance Targets

In the first quarter of the PRP year, the Company’s senior management will establish the level of target performance for the year associated with each of the performance metrics for the Corporate Plan and the WotC Plan. Those target levels are reviewed and approved by the Company’s Chief Executive Officer (“CEO”) and by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”).

3.2 Company Performance

For 2020, the Company performance is measured by Net Revenue, Operating Margin and Returns. Company performance is determined by individually assessing performance against goals for each metric, applying the acceleration/deceleration scale, weighting each metric and summing the total. The weighting and definitions of the overall Company measures are:

The applicable metric must achieve a threshold performance or no award is payable under that metric before the acceleration/deceleration scale is applied to the applicable metric. The threshold for Net Revenue performance is 85%. The threshold for Operating Margin and for Returns performance is 80%.

3.3 WotC Performance

For 2020, WotC will assess performance based on Net Revenue and Operating Margin specific to WotC. Unlike the Corporate Plan where an individual metric’s failure to reach the threshold performance does not impact another individual metric’s ability to reach the threshold performance and payout, for the WotC Plan, both metrics must meet a minimum threshold performance before the acceleration/deceleration scale is applied to both metrics or no award is payable for the WotC component of the WotC Plan. The threshold for WotC Net Revenue performance is 85%. The threshold for WotC Operating Margin performance is 80%.

The weighting and definitions of the WotC Plan are:

Bonus formula metrics are subject to review annually by the CEO.

4.0 Development of Funding Pools

At the end of the fiscal year, the actual performance for the Company and WotC for each financial component of the funding pool for the PRP will be calculated (based on the Company’s and WotC’s performance as of year-end) and approved by the Company’s Chief Financial Officer.

The funding pool scales for the metrics used in the Corporate Plan and the WotC plan, as applicable, are as follows:

Revenue Scale:

Performance % Funding Pool Scale %

< 85% 0% Minimum performance 85%

85% 60% For every 1% below target, 2.6%-2.7% decrease in award

100% 100% Target performance = 100% payout

101% 106.7% For every 1% above 100%, 6.6%-6.8% increase in award

115%+ 200% Maximum payout

Operating Margin Scale:

Performance % Funding Pool Scale %

< 80% 0% Minimum performance 80%

80% 60% For every 1% below target, 2% decrease in award

100% 100% Target performance = 100% payout

101% 104% For every 1% above 100%, 4% increase in award

125%+ 200% Maximum payout

Returns (Free Cash Flow) Scale:

Performance % Funding Pool Scale %

< 80% 0% Minimum performance 80%

80% 60% For every 1% below target, 2% decrease in award

100% 100% Target performance = 100% payout

101% 104% For every 1% above 100%, 4% increase in award

125%+ 200% Maximum payout

In the case of the Corporate Plan and the Company component of the WotC Plan, the threshold performance must be met for a metric before the acceleration/deceleration scale is applied to that metric. If the threshold performance is not achieved for a specific metric, no

award is payable under the specific metric that did not achieve the threshold performance. The payout attributable to each metric will then be weighted and added to arrive at the overall achievement.

An illustrative example of the development of a funding pool for the Corporate Plan and the Company component of the WotC Plan is as follows:

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

(100% x 40%) + (70% x 40%) + (0% x 20%) = 68%

The Company payout under the Corporate Plan would be 68% (and the Company component of the WotC Plan would be 13.6%)

In the case of the WotC Plan, the Net Revenue and Operating Margin for WotC metrics must both individually achieve a minimum threshold performance against target to qualify for that component of the WotC Plan funding pool. If the Net Revenue and Operating Margin for the WotC metrics each achieve a minimum threshold performance against target, an acceleration/deceleration scale will then be applied to each individual metric to develop the component funding pool for each metric. If the Net Revenue metric achieves threshold or higher, and the corresponding Operating Margin metric does not, the funding pool for that component of the WotC Plan will be 0%. Similarly, if the Operating Margin metric achieves threshold or higher, and the corresponding Net Revenue metric does not, the funding pool for that component of the WotC Plan will be 0%.

Illustrative examples of the development of a funding pool for the WotC component of the WotC Plan are as follows:

If WotC Revenue is achieved at 90% of target (which results in an 73% funding based on the acceleration/deceleration scale) and Operating Margin is at 65% (which is below 80% threshold) the WotC component of the WotC Plan will not fund (0% funding of the WotC component).

or

If WotC Revenue is achieved at 91% target (which results in an 76% funding), and Operating Margin is achieved at 85% target (which results in a 70% funding) the aggregate weighted funding is:

(76% x 50%) + (70% x 50%) = 73% WotC funding

Once all WotC results have been calculated, the funding pool of WotC component is developed. The WotC component funding pool (weighted at 80%), combined with the Corporate component funding pool (weighted at 20%), will equal the aggregate of the PRP funding pool for the WotC Plan.

4.1 Funding Pools

The Company calculates the component funding pools, based on the Company’s performance through the end of the year, the performance at the corporate level and WotC against the applicable performance targets. Those component funding pools as established (composed of the pools for the Company’s performance and the performance of WotC) are aggregated. Collectively these amounts constitute one aggregate funding pool (the “Funding Pool”), based on performance as of the end of the year, which the Company will pay out to all participants in the PRP collectively for performance during the year.

Although the CEO and the Compensation Committee reserve the right to alter the Funding Pool after year end, but prior to the actual payment of awards to participants in the PRP, it is expected that such discretion will only be exercised in rare or extreme circumstances, and that generally the entire Funding Pool, as it has been computed, will be paid (absent any affirmative exercise of this discretion) out to the participants in the PRP collectively following the closing of the year in question.

4.2 High Performer Pool Funding for Corporate

Following the end of the year, but prior to the payment of all awards under the Plan with respect to the completed fiscal year, management of the Company, in its sole discretion, may determine to add additional funding to the Plan, to cover individual performance awards for some employees or officers (the “Corporate High Performer Pool”). To the extent such determinations are made, they are subject to the approval of the appropriate management of the Company. Funding of the Corporate High Performer Pool is determined by the achievement of the Company’s Operating Profit, overall Company performance and affordability. The aggregate amount of the Corporate High Performer Pool is subject to the approval of both the CEO and the Compensation Committee.

Employees on the WotC Plan are not eligible to participate in the Corporate High Performer Pool.

4.3 High Performer Pool Funding for WotC

Following the end of the year, but prior to the payment of all awards under the Plan with respect to the completed fiscal year, management of the Company, in its sole discretion, may determine to add additional funding to the Plan, to cover individual performance awards for WotC (the “WotC High Performer Pool”). To the extent such determinations are made, they are subject to the approval of the appropriate management of the Company. Funding of the WotC High Performer Pool is determined by the achievement of WotC’s Operating Profit and Revenue, overall performance and affordability. The aggregate amount of the WotC High Performer Pool is subject to the approval of both the CEO and the Compensation Committee.

Employees on the Corporate Plan are not eligible to participate in the WotC High Performer Pool.

4.4 Total Awards Under the PRP

The aggregate of all incentive awards under the PRP shall consist of the sum of the Funding Pool, the Corporate High Performer Pool and the WotC High Performer Pool. In addition to the procedures set forth above, any incentive awards

recommended under the PRP which exceed one times a participant’s base salary must be reviewed and approved by the Company’s CEO.

4.5 Management Review

Payment of any incentive award to an employee is subject to management’s review.

•For purposes of the PRP, management has the ability to review the proposed payout of any incentive award under the PRP to an eligible employee and to determine whether such proposed incentive award should be adjusted based on the participant’s performance, contributions to the organization, or any other factor allowed by law. In completing this review, management has the option of providing a zero value incentive award to the employee regardless of Company or WotC performance. For participants that do not receive an incentive award or that receive a reduced incentive award, the portion of such person’s potential incentive award that might have been reflected in the Funding Pool will remain in the Funding Pool and be allocated to other PRP participants in the manner determined by management.

5.0 Removals, Transfers, Terminations, Promotions and Hiring Eligibility

Except to the extent applicable legal requirements mandate a different result for a Plan participant, the following scenarios will be dealt with under the PRP in the manner set forth below.

5.1 Participants whose employment with the Company is terminated because of retirement or disability:

5.2 Participants whose employment with the Company is terminated because

of death:

5.3 Participants who resign for any reason after the close of the PRP year, but prior to the distribution of incentive awards for such year, will not receive an incentive award. For any such participant, the portion of such person’s potential incentive award that might have been reflected in the Funding Pool will remain in the Funding Pool and be allocated to other plan participants in the manner determined by management if the planning budgets have already been established.

5.4 Participants who are discharged from the employ of the Company or any of its subsidiaries for cause or for any offense involving moral turpitude or an offense involving breach of the fiduciary duty owed by the individual to the Company will not be entitled to an incentive award for any PRP year. For any such participant, the portion of such person’s potential incentive award that might have been reflected in the Funding Pool will remain in the Funding Pool and be allocated to other plan participants in the manner determined by management.

5.5 Participants who are discharged from the employ of the Company or any of its subsidiaries due to any reason other than the ones enumerated above, including, without limitation, participants who are discharged due to job elimination:

5.6 Participants under statutory or contractual notices as may be required by applicable law:

5.7 Participants transferred during the PRP year from one division of the Company to another will be eligible to receive an incentive award (subject to achievement of the requisite organizational and individual performance) through the division in which he or she is employed at the end of the PRP year, but the award amount may be based on the performance made in each division in which the individual was employed during the PRP year.

5.8 Employees hired during the PRP year must be actively employed on or before October 1^st or another date designated by the Chief Human Resource Officer or his designee of the PRP year to participate in the PRP for that PRP year. Incentive awards will be made based upon the employee's earned salary during the period of their employment with the Company during the PRP year.

•For employees formerly on the Sales Rewards Plan (SRP) in EMEA, Latin America or Asia Pacific who were on a quarterly paid plan, eligibility will be effective April 1, 2020. For employees on the SRP in North America who were paid on an annual-incentive plan, eligibility will be effective January 1, 2020.

5.9 The eligibility for an incentive award under the PRP for employees who remain employed with the Company during the PRP year but whose change in employment status through promotion or reclassification affects their level of participation:

5.10 The eligibility for an incentive award under the PRP for employees who remain employed with the Company during the PRP year but whose change in employment status through demotion affects their level of participation will be determined by the Chief Human Resource Officer.

6.0 Administration of the PRP

6.1 Amendments to the PRP (Contingency Clause)

The CEO and the Compensation Committee reserve the right to interpret, amend, modify, or terminate the PRP in accordance with changing conditions at any time in their sole discretion.

6.2 Incentive Award Distribution

Incentive awards, when payable, shall be paid as near to the close of the Company’s fiscal year as may be feasible. In furtherance of the preceding sentence, any incentive awards under the PRP will be paid no later than the date allowable to ensure tax deductibility in the year of accrual, which in the case of the United States is two and a half months after the fiscal year end. Participants in the PRP must be

employed at the time of award distribution in order to receive an incentive award, except as provided in Section 5.0.

No individual has the rights to receive an incentive award until it has been approved and distributed in accordance with the provisions of the PRP.

6.3 Non-Assignment of Awards

Participants eligible to receive incentive awards shall not have any right to pledge, assign, or otherwise dispose of any unpaid or projected awards.

6.4 Deferral of Awards

Participants eligible to defer incentive awards through the Deferred Compensation Program (DCP) may elect to do so during the annual DCP enrollment.

6.5 Clawback of Awards

By accepting any incentive awards under the Plan, the participant hereby acknowledges and agrees that (i) any incentive compensation the participant is awarded is subject to the Company’s Clawback Policy, which was adopted by the Company’s Board of Directors (the “Board”) in October 2012, and (ii) any incentive award the participant is awarded will be subject to the terms of such Clawback Policy, as it may be amended from time to time by the Board in the future. Such acknowledgement and agreement is a material condition to receiving any incentive award under the Plan, which would not have been awarded to the participant otherwise.

6.6 Stock Ownership