| Delaware                                                  | 36-4088307                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
|                                                           |                              |
| 1111 W. 22nd Street, Suite 320, Oak Brook, Illinois       | 60523                             |
| (Address of principal executive offices)                       | (Zip Code)                        |

| Securities registered pursuant to Section 12(b) of the Exchange Act: |                                      |
|----------------------------------------------------------------------|-------------------------------------------|
| Title of each class                                                  | Name of each exchange on which registered |
| Common Stock, Par Value $0.01 Per Share                              | The NASDAQ Stock Market                   |

| Large accelerated filer [   ]          | Accelerated filer [ X ]                                               |
|-------------------------------------------------------|-----------------------------------------------------------------------|
| Non-accelerated filer  [   ] | Smaller reporting company  [     ] |
| (Do not check if a smaller reporting company)         |                                                                  |

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| Name, Principal Occupation for Past Five Years and Directorships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Age    | Director Since |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           |
| ROBERT E. DODSMr. Dods has been a private investor since January 2003, and has served as Chairman of our Board of Directors since July 1998. The Chairman of the Board is not considered one of our officers or employees. Mr. Dods served as our Chief Executive Officer from July 1998 to January 2003. Mr. Dods co-founded Racing Champions, Inc., our predecessor, in 1989.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 62     | 1996           |
| JOHN S. BAKALARMr. Bakalar has been a private investor since November 1997. From May 1993 to November 1997, Mr. Bakalar was President and Chief Operating Officer of Rand-McNally, Inc., a printing and publishing company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 63     | 1997           |
| JOHN J. VOSICKYMr. Vosicky has been the Acting President of BFG Technologies Inc., a marketer and distributor of graphic cards, since June 2010. Mr. Vosicky was the Chief Financial Officer of BFG Technologies from August 2002 until June 2008 and the Executive Vice President of BFG Technologies from June 2008 to October 2009. Mr. Vosicky was also the President of JAJ Financial, a financial consultant, from 2001 to 2007. From November 1985 to July 5, 2001, Mr. Vosicky was Executive Vice President, Chief Financial Officer and a director of Comdisco Inc., a technology services company. On July 16, 2001, Comdisco, Inc. and 50 of its domestic U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Illinois.  | 62     | 1997           |

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| Name, Principal Occupation for Past Five Years and Directorships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Age    | Director Since |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |
| CURTIS W. STOELTINGMr. Stoelting has served as our Chief Executive Officer since January 2003. Mr. Stoelting was our Chief Operating Officer from October 2000 to January 2003. Mr. Stoelting is a director of Regal-Beloit Corporation, a global manufacturer of motion control and power generation products.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 51     | 2002           |
| PAUL E. PURCELLMr. Purcell has served as President and Chief Executive Officer of Robert W. Baird & Co. Incorporated, an investment banking and brokerage firm, since January 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 64     | 2002           |
| THOMAS M. COLLINGERMr. Collinger has served as Associate Dean at The Medill Graduate School of Northwestern University since November 2005 and Chairman of the Integrated Marketing Communications Graduate Program since February 2007. Mr. Collinger has also been an Associate Professor, The Medill Graduate School of Northwestern University, since January 1998. Mr. Collinger has also served as President of the TC Group, a marketing consulting firm, since May 1998.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 58     | 2003           |
| MICHAEL J. MERRIMAN, JRMr. Merriman has been an operating advisor to Resilience Capital Partners, LLC, a private equity firm, since July 2008. Mr. Merriman was a business consultant for Product Launch Ventures, LLC, a business consulting firm, from November 2007 until July 2008. Mr. Merriman served as a director and as the Chief Executive Officer and President of The Lamson & Sessions Co., a manufacturer and distributor of electrical, consumer, telecommunications and engineered plastic products, from November 2006 to November 2007. Mr. Merriman has been a director of American Greetings Corporation, a designer, manufacturer and seller of greeting cards and other social expression products, since November 2006 and was its Senior Vice President and Chief Financial Officer from September 2005 until November 2006. Mr. Merriman is a director of OMNOVA Solutions, Inc., a producer of specialty chemicals and decorative products, and Nordson Corporation, a manufacturer of equipment used for precision material dispensing, testing and inspection, surface preparation and curing.  | 54     | 2004           |
| LINDA A. HUETTMs. Huett has been a private investor since January 2008. Ms. Huett was an independent advisor to Weight Watchers International, Inc., a global provider of weight management services and products, from January 2007 to December 2007. Ms. Huett was the President and a director of Weight Watchers International, Inc. from September 1999 until December 2000. Ms. Huett was the Chief Executive Officer, President and a director of Weight Watchers International, Inc. from December 2000 until December 2006. Ms. Huett is a director of ANN INC., a women's specialty retailer of the ANN TAYLOR and LOFT brands.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 66     | 2007           |
| PETER J. HENSELERMr. Henseler has served as our President since October 2002. Mr. Henseler was our Executive Vice President – Sales and Marketing from March 1999 to October 2002. Mr. Henseler is a director of First Midwest Bancorp, Inc., a bank holding company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 52     | 2007           |

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| Name, Principal Occupation for Past Five Years and Directorships                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Age    | Director Since |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           |
| JOAN K. CHOWMs. Chow has served as Executive Vice President and Chief Marketing Officer of ConAgra Foods, Inc. since February 2007. Prior to joining ConAgra Foods, Inc., Ms. Chow served Sears Holding Corporation as Senior Vice President and Chief Marketing Officer, Sears Retail from July 2005 until January 2007 and as Vice President, Marketing Services from April 2005 until July 2005. From 2004 until April 2005, Ms. Chow served Sears, Roebuck and Co. as Vice President, Home Services Marketing. | 50     | 2010           |

| Name               | Age | Current Position                                                                                          |   | Other Positions                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------|-----|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Peter A. Nicholson | 47  | Chief Financial Officer of the Company since November 2008. Secretary of the Company since February 2009. |   | President and owner of P. Aristo Nicholson Consulting, Inc., a consulting firm providing various financial reporting consulting services, from January 2005 to November 2008.                                                                                                                                                                                                                                                                                                            |
| Helena Lo          | 51  | Executive Vice President of the Company and Managing Director of RC2 (H.K.) Limited since April 2005.     |   | Managing Director of RC2 (H.K.) Limited from October 2000 to April 2005.                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Gregory J. Kilrea  | 47  | Chief Operating Officer of the Company since April 2007.                                                  |   | Chief Operations Officer of the Company from October 2005 to April 2007. Senior Vice President-Planning and Corporate Development of the Company from April 2004 to October 2005. Chief Financial Officer of HA- LO Industries, Inc., a multi-national distributor of promotional products, from July 1996 to September 2002. On July 30, 2001, HA-LO Industries, Inc. filed a voluntary petition for relief under the United States Bankruptcy Court for the District of Delaware. |

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|  ● |   | attract and retain key executives who are important to our continued success through competitive compensation arrangements;                                                                        |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                               |
|  ● |   | provide strong financial incentives, at a reasonable cost to our stockholders, for performance that creates value for our stockholders by generating returns in excess of our cost of capital; and |
|          |   |                                                                                                                                                                                               |
| ●       |   | link compensation to long-term corporate performance through equity-based awards that reward executives for both gains in our stock price and meeting long-term EBITDA growth goals.               |

| ●       |   | Our compensation program is clear and straightforward.  Nearly all of the current compensation to our named executive officers is based on only three components:  base salary, annual cash incentives and long-term equity grants.  We do not currently provide our named executive officers with any supplemental executive retirement plan (SERP) or similar benefits, and our named executive officers receive a modest level of perquisites or other benefits that are not available to all of our employees.  “All Other Compensation” reported in the Summary Compensation Table constituted only 1.0% of total targeted compensation for our named executive officers in 2010. |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|  ● |   | Each named executive officer receives a base salary which we believe is competitive and fair, but also relatively modest in comparison to potential compensation that is based on our performance.  These base salaries were set at median levels of base salaries derived from a study of a peer group of companies identified by the Compensation Committee’s independent compensation consultant.  See “Peer Group Benchmarking” below for more information.                                                                                                                                                                                                                                      |

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| ● |   | A significant portion of total compensation for our named executive officers is contingent on performance.  Specifically for 2010, over 85% of our Chief Executive Officer’s total targeted compensation was performance-based and over 83% of all of our named executive officers’ total targeted compensation was performance-based, of which (a) 48% of our Chief Executive Officer’s and 49% of all of our named executive officers’ targeted compensation consisted of performance-based annual cash incentives and performance-based restricted stock units, and (b) the other 37% of our Chief Executive Officer’s and 34% of all of our named executive officers’ targeted compensation consisted of stock appreciation rights. |
|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ● |   | The annual cash incentives are dependent on our reaching specific company-wide financial performance objectives, primarily rewarding management only after creating value for our stockholders by generating returns in excess our cost of capital. Performance-based restricted stock units issued in 2010 are earned only upon reaching a three year cumulative EBITDA growth goal for 2010 through 2012.  The stock-settled stock appreciation rights vest over several years and result in value to our executives only after appreciation in our stock price has been attained.                                                                                                                                                                                        |

| ● |   | Our named executive officers’ cash compensation arrangements are weighted towards performance-based annual cash incentives.  Specifically for 2010, 69% of our Chief Executive Officer’s total targeted cash compensation was performance-based and 67% of all of our named executive officers’ total targeted cash compensation was performance-based.  Our Incentive Bonus Plan provides for annual payouts based on achieving objective financial criteria, with payouts for 2010 under one component of the plan conditioned on creating value for stockholders by generating returns in excess of our cost of capital and payouts for 2010 under the other component of the plan conditioned on reaching a net sales target. |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ● |   | As a result of weighting our named executive officers’ cash compensation towards performance-based incentives, our cash compensation arrangements result in total cash compensation below the median level of our peer group when the targeted performance has not been met.  In 2008, the thresholds for the annual cash incentives were not met, resulting in below median total cash compensation.  In 2009, the threshold relating to a portion of our Incentive Bonus Plan was exceeded, resulting in total cash compensation above the median but below the 75th percentile of our peer group.  In 2010, although the threshold relating to a portion of our Incentive Bonus Plan was exceeded, 2010 total cash compensation was below the median of our peer group.  Median and 75th percentile of total cash compensation are based on the 2007 study of our peer group by the Compensation Committee’s independent compensation consultant.  See “Peer Group Benchmarking” below for more information regarding our peer group. |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ● |   | provided that one-third of the 2010 long-term equity incentive grant would be performance-based restricted stock units which will be earned only if a three year cumulative EBITDA growth goal is reached, with discretion available to the Compensation Committee to reduce or eliminate the number of restricted stock units earned if return on invested capital is below an acceptable level; |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
|  ● |   | provided that the other two-thirds of the long-term equity incentive grant would be in the form of stock appreciation rights (also referred to as SARs) that will vest over a period of three years, a portion of which were cash-settled SARs that will not cause any dilution;                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                              |
|  ● |   | adopted a commitment that the Company’s average annual burn rate for the three years ended December 31, 2012 will not exceed 3.2% (see definition and calculation of burn rate below);                                                                                                                                                                                                      |

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|  ● |   | adopted a guideline beginning in 2010 for overhang below 15% (see definition and calculation of overhang below);                                                                                                                                                                                                                                                                                                  |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                              |
| ●       |   | modified the individual equity award limit, so that any shares of restricted stock or restricted stock units awarded to an individual is counted as 1.5 times the number of shares subject to the award, effectively providing a lower annual limit for awards of restricted stock and restricted stock units than previously allowed in the 2005 Stock Incentive Plan for options and stock appreciation rights; |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                              |
|  ● |   | set a minimum performance period for performance-based restricted stock and restricted stock units of one year and a minimum vesting period for time vesting restricted stock and restricted stock units of three years (provided that the restrictions may lapse in installments during such vesting period); and                                                                                                |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                              |
|  ● |   | established stock ownership guidelines for our named executive officers and members of the Board.  See “Stock Ownership Guidelines” below.                                                                                                                                                                                                                                                  |

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|  ● |   | Amcol International Corp.       |  ● |   | Jackson Hewitt Tax Service    |
|---------------|--------|---------------------------------|---------------|--------|-------------------------------|
|  ● |   | Amsurg Corp.                    |  ● |   | Jakks Pacific Inc.            |
|  ● |   | Avatar Holdings Inc.            |  ● |   | Korn/Ferry International      |
|  ● |   | Cascade Corp.                   |  ● |   | Kronos Inc.                   |
|  ● |   | Cash America International Inc. |  ● |   | K-V Pharmaceutical Company    |
|  ● |   | Cognex Corp.                    |  ● |   | McGrath Rentcorp.             |
|  ● |   | Comstock Resources Inc.         |  ● |   | MKS Instruments Inc.          |
|  ● |   | Comtech Telecommunications      |  ● |   | Navigant Consulting Inc.      |
|  ● |   | Digital Insight Corporation     |  ● |   | Orthofix International NV     |
|  ● |   | Digitas Inc.                    |  ● |   | Penn Virginia Corp.           |
|  ● |   | DSP Group Inc.                  |  ● |   | Petroleum Development Corp.   |
|  ● |   | Energy Partners Ltd.            |  ● |   | Premiere Global Services Inc. |
|  ● |   | FTI Consulting Inc.             |  ● |   | Progress Software Corp.       |
|  ● |   | Genesee & Wyoming Inc.      |          |   |                          |

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| Name                |   | Targeted Value |      |   | Fair Valueas of 2/24/10 (1) |   |
|---------------------|--------|----------------|-----------|--------|-----------------------------|--------|
| Curtis W. Stoelting |   | $              | 1,333,333 |   |                        | $      | 1,265,992 |   |
| Peter J. Henseler   |   | $              | 1,333,333 |   |                        | $      | 1,265,992 |   |
| Peter A. Nicholson  |   | $              | 633,333   |   |                        | $      | 598,780 |   |
| Helena Lo           |   | $              | 466,667   |   |                        | $      | 444,808 |   |
| Gregory J. Kilrea   |   | $              | 466,667   |   |                        | $      | 444,808 |   |

| (1)  | The fair value of the stock appreciation rights is determined under the Black-Scholes option-pricing model as of February 24, 2010 with the following assumptions:  weighted average expected life:  6 years; weighted average risk-free rate of return:  2.66%; weighted average expected volatility:  60%; and weighted average dividend yield:  none.  The grant date for Mr. Nicholson, Ms. Lo and Mr. Kilrea was February 24, 2010.  For Mr. Stoelting and Mr. Henseler, the size of their awards was determined based on a fair value calculation as of February 24, 2010, but because sufficient shares were not available under the 2005 Stock Incentive Plan to make full grants to them on February 24, 2010, the grant date for their awards was delayed until after the Company's stockholders approved an amendment to the 2005 Stock Incentive Plan on May 6, 2010. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                | Maximum Performance-Based Restricted Stock Units | Grant Date Dollar Value of Maximum Restricted Stock Units (1) |
|---------------------|--------------------------------------------------|---------------------------------------------------------------|
| Curtis W. Stoelting | 44,000                                           | $655,600                                                      |
| Peter J. Henseler   | 44,000                                           | $655,600                                                      |
| Peter A. Nicholson  | 21,000                                           | $312,900                                                      |
| Helena Lo           | 15,500                                           | $230,950                                                      |
| Gregory J. Kilrea   | 15,500                                           | $230,950                                                      |

| (1) | The grant date dollar value of the maximum restricted stock units is calculated based on $14.90 per share, the closing price of our Common Stock on February 24, 2010.  As these awards were granted on February 24, 2010 contingent on stockholder approval of the amendment to the 2005 Stock Incentive Plan at the 2010 Annual Meeting of Stockholders on May 6, 2010, the grant date for purposes of the Compensation – Stock Compensation Topic of the FASB Accounting Standards Codification was May 6, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Type of Award                    |   | Shares |
|----------------------------------|--------|--------|
| Stock-settled SARs               |   |   | 360,000 | (1) |
| Director restricted stock grants |   |   | 49,200 | (2) |
|                             |   |   |   |   |
|    Total          |   |   | 409,200 |   |
| Shares outstanding               |   |   | 21,564,294 | (3) |
| Burn rate                        |   |   | 1.9 | % |

| (1)    | Represents stock-settled SARs granted to Mr. Nicholson, Ms. Lo and Mr. Kilrea, on February 24, 2010 and stock-settled SARs granted to Mr. Stoelting and Mr. Henseler on May 6, 2010. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                      |
| (2)    | Represents restricted stock granted to each outside director totaling 32,800 shares multiplied by 1.5.                                                                                    |
|   |                                                                                                                                                                                      |
| (3)    | Represents the weighted average number of shares outstanding during the year.                                                                                                             |

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| Position                 | Ownership Guidelines                     |
|--------------------------|------------------------------------------|
| Chief Executive Officer  | 3 times three year average base salary   |
| Other Executive Officers | 2 times three year average base salary   |
| Outside Directors        | 2 times three year average cash retainer |

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| Name and Principal Position | Year   |   | Salary |    |   | Stock Awards (Note 1) |   |    | Option and SAR Awards (Note 2) |   |   | Non-Equity Incentive Plan Compensation (Note 3) |   |   | All OtherCompensation(Note 4) |    |   | Total  |   |
|-----------------------------|--------|--------|--------|---------|--------|-----------------------|--------|---------|--------------------------------|--------|--------|-------------------------------------------------|--------|--------|-------------------------------|---------|--------|--------|--------|
| Curtis W. Stoelting,        | 2010   |   | $      | 478,246 |   |                  | $      | 301,785 |                           |   | $      | 1,544,131                                       |   |   | $                             | 196,220 |   |   | $      | 33,244 |   |   | $ | 2,553,626 |   |
| Chief Executive             | 2009   |   | $      | 450,000 |   |                  |   | – |                           |   | $      | 652,687                                         |   |   | $                             | 695,565 |   |   | $      | 33,114 |   |   | $ | 1,831,366 |   |
| Officer                     | 2008   |   | $      | 443,269 |   |                  |   | – |                           |   | $      | 1,354,169                                       |   |   | $                             | – |   |   | $      | 76,769 |   |   | $ | 1,874,207 |   |
| Peter J. Henseler,          | 2010   |   | $      | 478,246 |   |                  | $      | 301,785 |                           |   | $      | 1,544,131                                       |   |   | $                             | 196,220 |   |   | $      | 31,788 |   |   | $ | 2,552,170 |   |
| President                   | 2009   |   | $      | 450,000 |   |                  |   | – |                           |   | $      | 652,687                                         |   |   | $                             | 695,565 |   |   | $      | 31,788 |   |   | $ | 1,830,040 |   |
|                        | 2008   |   | $      | 443,269 |   |                  |   | – |                           |   | $      | 1,354,169                                       |   |   | $                             | – |   |   | $      | 37,603 |   |   | $ | 1,835,041 |   |
| Peter A. Nicholson,         | 2010   |   | $      | 318,814 |   |                  | $      | 144,034 |                           |   | $      | 598,798                                         |   |   | $                             | 98,843  |   |   | $      | 28,626 |   |   | $ | 1,189,115 |   |
| Chief Financial             | 2009   |   | $      | 300,000 |   |                  |   | – |                           |   | $      | 309,635                                         |   |   | $                             | 353,292 |   |   | $      | 28,684 |   |   | $ | 991,611 |   |
| Officer (5)                 | 2008   |   | $      | 108,361 |   |                  |   | – |                           |   | $      | 357,389                                         |   |   | $                             | – |   |   | $      | 1,246 |   |   | $ | 466,996 |   |
| Helena Lo,                  | 2010   |   | $      | 318,360 |   |                  | $      | 106,311 |                           |   | $      | 444,821                                         |   |   | $                             | 101,750 |   |   | $      | 54,932 |   |   | $ | 1,026,174 |   |
| Executive Vice              | 2009   |   | $      | 300,000 |   |                  |   | – |                           |   | $      | 309,635                                         |   |   | $                             | 363,330 |   |   | $      | 50,803 |   |   | $ | 1,023,768 |   |
| President and               | 2008   |   | $      | 295,320 |   |                  |   | – |                           |   | $      | 473,486                                         |   |   | $                             | – |   |   | $      | 48,512 |   |   | $ | 817,318 |   |
| Managing Director           |   |   |   |    |   |                  |   |    |                           |   |   |                                            |   |   |                          |    |   |   |   |   |   |   |   |   |   |
| of RC2 (H.K.) Limited       |   |   |   |    |   |                  |   |    |                           |   |   |                                            |   |   |                          |    |   |   |   |   |   |   |   |   |   |
| Gregory J. Kilrea,          | 2010   |   | $      | 318,831 |   |                  | $      | 106,311 |                           |   | $      | 444,821                                         |   |   | $                             | 101,750 |   |   | $      | 30,031 |   |   | $ | 1,001,744 |   |
| Chief Operating             | 2009   |   | $      | 300,000 |   |                  |   | – |                           |   | $      | 309,635                                         |   |   | $                             | 363,330 |   |   | $      | 29,121 |   |   | $ | 1,002,086 |   |
| Officer                     | 2008   |   | $      | 278,462 |   |                  |   | – |                           |   | $      | 473,486                                         |   |   | $                             | – |   |   | $      | 33,746 |   |   | $ | 785,694 |   |

| (1)    | The amounts in this column reflect the dollar amount of performance-based restricted stock unit awards pursuant to our 2005 Stock Incentive Plan granted in 2010. These amounts are equal to the grant date fair value, computed in accordance with the Compensation – Stock Compensation Topic of the FASB Accounting Standards Codification, of the performance-based restricted stock unit awards based on the expected outcome as of the date of grant.  As these awards were granted on February 24, 2010 contingent on stockholder approval of the amendment to the 2005 Stock Incentive Plan at the 2010 Annual Meeting of Stockholders on May 6, 2010, the grant date for purposes of the Compensation – Stock Compensation Topic of the FASB Accounting Standards Codification was May 6, 2010.  Assumptions used in the calculation of the grant date fair value are included in Note 12 to our audited consolidated financial statements, included in our Annual Report on Form 10-K filed with the SEC on March 2, 2011. The table below shows the value of the performance-based restricted stock awards on the grant date assuming the maximum level of performance conditions will be achieved: |
|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                |   | Performance-Based Restricted Stock Unitsat Maximum |   |
|---------------------|--------|----------------------------------------------------|--------|
| Curtis W. Stoelting |   | $ 804,760                                          |   |
| Peter J. Henseler   |   | $ 804,760                                          |   |
| Peter A. Nicholson  |   | $ 384,090                                          |   |
| Helena Lo           |   | $ 283,495                                          |   |
| Gregory J. Kilrea   |   | $ 283,495                                          |   |

| (2) | The amounts in this column reflect the dollar amount of stock option and stock appreciation right awards pursuant to our 2005 Stock Incentive Plan in the years indicated in the table. These amounts equal the grant date fair value, computed in accordance with the Compensation – Stock Compensation Topic of the FASB Accounting Standards  Codification, of stock option and stock appreciation right awards.  Assumptions used in the calculation of the grant date fair value are included in Note 12 to our audited consolidated financial statements, included in our Annual Report on Form 10-K filed with the SEC on March 2, 2011. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (3)    | This column discloses the dollar value of annual cash incentives earned by the named executive officers under our Incentive Bonus Plan and includes the 2009 contractual base salary increases of 4% which were converted into performance-based cash incentives. See “Compensation Discussion and Analysis.”                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (4)    | The table below shows the components of this column, which include our match for each individual’s 401(k) plan contributions, the cost of premiums paid by us for term life insurance and disability insurance under which the named executive officer is a beneficiary, perquisites consisting of an automobile allowance and in the case of Mr. Stoelting, personal plane usage in 2008, and in the case of Ms. Lo, a country club membership. For the calculation of the incremental cost of the personal use of the company airplane, we calculate a per hour amount for variable costs such as fuel, landing and parking fees and expenses for the flight crew, and then multiply that per hour cost by the number of hours of personal use by Mr. Stoelting. |

| Name                | Year |   | 401(k) Match(a) |    |   | Life and Disability Insurance |   |    | Perquisites |   |   | Total “All Other Compensation” |   |
|---------------------|------|--------|-----------------|---------|--------|-------------------------------|--------|---------|-------------|--------|--------|--------------------------------------------|--------|
| Curtis W. Stoelting | 2010 |   | $               | 9,800   |   |                          | $      | 14,444  |        |   | $      | 9,000                                      |   |   | $ | 33,244 |   |
|                | 2009 |   | $               | 9,800   |   |                          | $      | 14,314  |        |   | $      | 9,000                                      |   |   | $ | 33,114 |   |
|                | 2008 |   | $               | 16,100  |   |                          | $      | 14,190  |        |   | $      | 46,479                                     |   |   | $ | 76,769 |   |
| Peter J. Henseler   | 2010 |   | $               | 9,800   |   |                          | $      | 12,988  |        |   | $      | 9,000                                      |   |   | $ | 31,788 |   |
|                | 2009 |   | $               | 9,800   |   |                          | $      | 12,988  |        |   | $      | 9,000                                      |   |   | $ | 31,788 |   |
|                | 2008 |   | $               | 16,100  |   |                          | $      | 12,988  |        |   | $      | 8,515                                      |   |   | $ | 37,603 |   |
| Peter A. Nicholson  | 2010 |   | $               | 9,800   |   |                          | $      | 9,826   |        |   | $      | 9,000                                      |   |   | $ | 28,626 |   |
|                | 2009 |   | $               | 9,800   |   |                          | $      | 9,884   |        |   | $      | 9,000                                      |   |   | $ | 28,684 |   |
|                | 2008 |   | $               | – |   |                          | $      | – |        |   | $      | 1,246                                      |   |   | $ | 1,246 |   |
| Helena Lo           | 2010 |   | $               | 16,021  |   |                          | $      | 20,721  |        |   | $      | 18,190                                     |   |   | $ | 54,932 |   |
|                | 2009 |   | $               | 15,000  |   |                          | $      | 19,001  |        |   | $      | 16,802                                     |   |   | $ | 50,803 |   |
|                | 2008 |   | $               | 14,125  |   |                          | $      | 18,376  |        |   | $      | 16,011                                     |   |   | $ | 48,512 |   |
| Gregory J. Kilrea   | 2010 |   | $               | 9,800   |   |                          | $      | 11,231  |        |   | $      | 9,000                                      |   |   | $ | 30,031 |   |
|                | 2009 |   | $               | 9,800   |   |                          | $      | 10,321  |        |   | $      | 9,000                                      |   |   | $ | 29,121 |   |
|                | 2008 |   | $               | 16,100  |   |                          | $      | 9,131   |        |   | $      | 8,515                                      |   |   | $ | 33,746 |   |

|  (a) |   | For Ms. Lo, the amount is a company contribution to a statutory pension plan under Hong Kong law. |
|-----------|--------|---------------------------------------------------------------------------------------------------|

| (5)  | Effective November 5, 2008, Mr. Nicholson was appointed as our Chief Financial Officer. Mr. Nicholson’s salary includes $70,284 paid to Mr. Nicholson’s consulting firm during 2008 prior to his appointment as our Chief Financial Officer. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|      |   |   Grant |   |   Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) |   | Estimated Future Payouts Under Equity Incentive Plan Awards (2) |   | All Other Option/SAR Awards: Number of Securities Underlying  |          |   | Exercise or Base Price of SAR Awards |      |   | Grant Date Fair Value of SAR/RSU |    |
|-----------|--------|--------------|--------|----------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------------------------------------------------------------------|---------------|--------|--------------------------------------|-----------|--------|----------------------------------|---------|
| Name      |   | Date         |   | Threshold                                                                  |   |                                                            | Target |                                                               | Maximum       |   | Threshold                            |      | Target |                             | Maximum |   | SARs (3) |   |   | ($/Sh) |   |   | Awards (4) |   |
| Curtis W. |   | 5/06/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   | 148,000 |   | $ | 18.29 |   | $ | 1,544,131 |   |
| Stoelting |   |         |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   |   |   |
|      |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 | 16,500    |   |                             | 44,000  |   |   | 44,000 |   |   |   |   |   |   | $ | 301,785 |   |
|      |   | –      |   | $                                                                          | 0      |                                                            |   | $                                                                  | 1,095,120     |   | $                                    | 2,500,000 |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Peter J.  |   | 5/06/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   | 148,000 |   | $ | 18.29 |   | $ | 1,544,131 |   |
| Henseler  |   |         |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             | 16,500  |   |   | 44,000 |   |   | 44,000 |   |   |   |   |   |   | $ | 301,785 |   |
|      |   | –      |   | $                                                                          | 0      |                                                            |   | $                                                                  | 1,095,120     |   | $                                    | 2,500,000 |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Peter A.  |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   | 70,000 |   | $ | 14.90 |   | $ | 598,798 |   |
| Nicholson |   |         |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             | 7,875   |   |   | 21,000 |   |   | 21,000 |   |   |   |   |   |   | $ | 144,034 |   |
|      |   | –      |   | $                                                                          | 0      | (1)                                                             |   | $                                                                  | 551,616       |   | $                                    | 1,259,259 | (1)    |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Helena    |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   | 52,000 |   | $ | 14.90 |   | $ | 444,821 |   |
| Lo        |   |         |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             | 5,813   |   |   | 15,500 |   |   | 15,500 |   |   |   |   |   |   | $ | 106,311 |   |
|      |   | –      |   | $                                                                          | 0      | (1)                                                        |   | $                                                                  |  567,840 |   | $                                    | 1,296,296 | (1)    |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gregory   |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   | 52,000 |   | $ | 14.90 |   | $ | 444,821  |   |
| J. Kilrea |   |         |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      |   | 2/24/10      |   |                                                                       |   |                                                            |   |                                                               |          |   |                                 |      |   |                             | 5,813   |   |   | 15,500 |   |   | 15,500 |   |   |   |   |   |   | $ | 106,311 |   |
|      |   | –      |   | $                                                                          | 0      | (1)                                                        |   | $                                                                  | 567,840       |   | $                                    | 1,296,296 | (1)    |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)  | These amounts show the range of payouts targeted for 2010 performance under our Incentive Bonus Plan as described in “Compensation Discussion and Analysis.”  The Incentive Bonus Plan entitles participants to earn a percentage (which varies by participant and is dependent upon the applicable participant’s position and responsibility) of a cash incentive pool amount. The cash incentive for each executive officer is based on the amount by which Capital Adjusted EBITDA exceeds threshold Capital Adjusted EBITDA and our net sales targets are achieved. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | The performance-based restricted stock units may be earned if performance goals relating to the Company’s cumulative EBITDA over a three-year period ending December 31, 2012, are achieved. If the minimum threshold amount of cumulative three-year EBITDA for this period is achieved, then 37.5% of the restricted stock units will be earned. If the cumulative three-year EBITDA exceeds the minimum threshold, additional restricted stock units will be earned above 37.5% on a pro rata basis up to 100% of the restricted stock units. The threshold amount in the table reflects 37.5% of the restricted stock units and the target and maximum amounts reflect 100% of the restricted stock units. Each restricted stock unit earned will entitle a named executive officer to receive one share of common stock in 2013, subject to the right of the named executive officers to defer receipt of all or a portion of the shares earned for a period of up to ten years. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Each stock appreciation right vests pro rata over a three-year period on each of February 24, 2011, February 24, 2012 and February 24, 2013. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The value of the award is based upon the grant date fair value of the 2010 stock appreciation right awards and performance-based restricted stock unit awards determined pursuant to the Compensation – Stock Compensation Topic of the FASB Accounting Standards Codification. Generally, the grant date fair value is the amount that we would expense in our financial statements over the award’s vesting schedule. See Note 12 to our consolidated financial statements filed with the SEC on March 2, 2011, as part of our Annual Report on Form 10-K for the assumptions we relied on in determining the value of these awards. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Option/SAR Awards | Stock Awards                                                               |
|-------------------|----------------------------------------------------------------------------|
|   Name       |   Number of Securities Underlying Unexercised Options/SARsExercisable |   Option/SAR Awards Underlying Unexercised Options/SARs Unexercisable |   Option/SAR Exercise Price | Option/SAR Expiration Date  | Equity IncentivePlanAwards: Number of Unearned Shares, unitsor Other Rights That Have Not Vested (#) | EquityIncentive Plan Awards: Market or Payout Value of UnearnedShares, units or Other Rights That Have NotVested ($) |
| Curtis W.         | 75,000                                                                     |          – | $    7.94 | 10/30/11 (1) |   |   |
| Stoelting         | 35,000                                                                     |          – | $  13.39 | 02/25/13 (2) |   |   |
|              | 40,000                                                                     |           –  | $  24.78 | 02/24/14 (3) |   |   |
|              | 52,500                                                                     |           –  | $  31.27 | 03/01/15 (4) |   |   |
|              | 40,000                                                                     |   10,000 | $  35.72 | 02/21/16 (5) |   |   |
|              | 57,200                                                                     |   85,800 | $  20.23 | 03/04/18 (6) |   |   |
|              | 83,333                                                                     | 166,667 | $    5.11 | 02/25/19 (7) |   |   |
|              |       –                                     | 113,362 | $  18.29 | 05/06/20 (8) |   |   |
|              |       –                                     |   34,638 | $  18.29 | 05/06/20 (9) |   |   |
|              |                                                                       |   |   |   | 16,500 (10) | $ 359,205 (10) |
| Peter J.          | 35,000                                                                     |           – | $  13.39 | 02/25/13 (2) |   |   |
| Henseler          | 40,000                                                                     |           – | $  24.78 | 02/24/14 (3) |   |   |
|              | 52,500                                                                     |          – | $  31.27 | 03/01/15 (4) |   |   |
|              | 40,000                                                                     |   10,000 | $  35.72 | 02/21/16 (5) |   |   |
|              | 57,200                                                                     |   85,800 | $  20.23 | 03/04/18 (6) |   |   |
|              | 83,333                                                                     | 166,667 | $    5.11 | 02/25/19 (7) |   |   |
|              |        –                               | 113,362 | $  18.29 | 05/06/20 (8) |   |   |
|              |        –                               |   34,638 | $  18.29 | 05/06/20 (9) |   |   |
|              |                                                                       |   |   |   | 16,500(10) | $359,205(10) |
| Peter A.          | 24,000                                                                     |   36,000 | $  12.45 |   11/05/18 (11) |   |   |
| Nicholson         | 39,533                                                                     |   79,067 | $    5.11 | 02/25/19 (7) |   |   |
|              |        –                               |   53,616 | $  14.90 | 02/24/20 (8) |   |   |
|              |        –                               |   16,384 | $  14.90 | 02/24/20 (9) |   |   |
|              |                                                                       |   |   |   | 7,875(10) | $171,439(10) |
| Helena Lo         | 24,750                                                                     |           – | $  24.78 | 02/24/14 (3) |   |   |
|              | 21,000                                                                     |           – | $  31.27 | 03/01/15 (4) |   |   |
|              | 16,000                                                                     |     4,000 | $  35.72 | 02/21/16 (5) |   |   |
|              | 12,000                                                                     |     8,000 | $  39.09 |   02/21/17 (12) |   |   |
|              | 20,000                                                                     |   30,000 | $  20.23 | 03/04/18 (6) |   |   |
|              | 39,533                                                                     |    79,067 | $    5.11 | 02/25/19 (7) |   |   |
|              |        –                               |    39,830 | $  14.90 | 02/24/20 (8) |   |   |
|              |        –                               |   12,170 | $  14.90 | 02/24/20 (9) |   |   |
|              |                                                                       |   |   |   | 5,813(10) | $126,549(10) |
| Gregory J.        |   6,000                                                               |           – | $  29.02 |   04/26/14 (13) |   |   |
| Kilrea            |   6,400                                                               |           – | $  31.27 | 03/01/15 (4) |   |   |
|              | 12,000                                                                     |     3,000 | $  35.72 | 02/21/16 (5) |   |   |
|              | 12,000                                                                     |     8,000 | $  39.09 |   02/21/17 (12) |   |   |
|              | 20,000                                                                     |   30,000 | $  20.23 | 03/04/18 (6) |   |   |
|              |         –                         |   79,067 | $    5.11 | 02/25/19 (7) |   |   |
|              |         –                         |   39,830 | $  14.90 | 02/24/20 (8) |   |   |
|              |         –                         |   12,170 | $  14.90 | 02/24/20 (9) |   |   |
|              |                                                                       |   |   |   | 5,813(10) | $126,549(10) |

----

| (1)    |   | The common stock option vested pro rata over a five-year period on each of October 30, 2002, October 30, 2003, October 30, 2004, October 30, 2005 and October 30, 2006.      |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                         |
| (2)    |   | The common stock option vested pro rata over a five-year period on each of February 25, 2004, February 25, 2005, February 25, 2006, February 25, 2007 and February 25, 2008. |

| (3)    |   | The common stock option vested pro rata over a five-year period on each of February 24, 2005, February 24, 2006, February 24, 2007, February 24, 2008 and February 24, 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                         |
| (4)    |   | The common stock option vested pro rata over a five-year period on each of March 1, 2006, March 1, 2007, March 1, 2008, March 1, 2009 and March 1, 2010.                     |

| (5)    |   | The common stock option vested pro rata over a five-year period on each of February 21, 2007, February 21, 2008, February 21, 2009, February 21, 2010 and February 21, 2011. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                         |
| (6)    |   | The common stock option vests pro rata over a five-year period on each of March 4, 2009, March 4, 2010, March 4, 2011, March 4, 2012 and March 4, 2013.                      |
|   |   |                                                                                                                                                                         |
| (7)    |   | The stock-settled stock appreciation right vests pro rata over a three-year period on each of February 25, 2010, February 25, 2011 and February 25, 2012.                    |
|   |   |                                                                                                                                                                         |
| (8)    |   | The stock-settled stock appreciation right vests pro rata over a three-year period on each of February 24, 2011, February 24, 2012 and February 24, 2013.                    |

| (9)        |   | The cash-settled stock appreciation right vests pro rata over a three-year period on each February 24, 2011, February 24, 2012 and February 24, 2013.                                                                                                                                                                                                                                                                                                                                                                   |
|------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (10)       |   | The performance-based restricted stock units may be earned if performance goals relating to the Company’s cumulative EBITDA over a three-year period ending December 31, 2012, are achieved. The number of shares subject to performance-based restricted stock units in the table is based upon the threshold performance goals. The value of the performance-based restricted stock units in the table is based on the closing price of our common stock on December 31, 2010, which was $21.77 per share. |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (11)       |   | The common stock option vests pro rata over a five-year period on each November 5, 2009, November 5, 2010, November 5, 2011, November 5, 2012 and November 5, 2013.                                                                                                                                                                                                                                                                                                                                                     |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|  (12) |   | The common stock option vests pro rata over a five-year period on each of February 21, 2008, February 21, 2009, February 21, 2010, February 21, 2011 and February 21, 2012.                                                                                                                                                                                                                                                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|  (13) |   | The common stock option vested pro rata over a five-year period on each of April 26, 2005, April 26, 2006, April 26, 2007, April 26, 2008 and April 26, 2009.                                                                                                                                                                                                                                                                                                                                                           |

|                | Option and SAR Awards                                                |
|---------------------|----------------------------------------------------------------------|
| Name                | Number of Shares Acquired on Exercise                                | Value Realized on Exercise (1) |
| Curtis W. Stoelting |    71,449                                                  | $1,157,154 |
| Peter J. Henseler   |    75,000                                                  | $   656,620 |
| Peter A. Nicholson  |            – | $              – |
| Helena Lo           |          10,000 (2)          | $   139,500 |
| Gregory J. Kilrea   |          39,533 (3)          | $   392,563 |

----

|  (1) |   | Value realized equals the market price of our common stock at the time of exercise, minus the exercise price multiplied by the number of shares acquired on exercise. |
|-----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                  |
|  (2) |   | The exercise of a stock-settled stock appreciation right as to 10,000 shares resulted in the issuance to Ms. Lo of 7,318 shares.                                      |
|      |   |                                                                                                                                                                  |
|  (3) |   | The exercise of a stock-settled stock appreciation right as to 39,533 shares resulted in the issuance to Mr. Kilrea of 26,101 shares.                                 |

| ● |   | Mr. Stoelting receives an annual base salary of at least $450,000, Mr. Henseler receives an annual base salary of at least $450,000, Mr. Nicholson receives an annual base salary of at least $300,000, Ms. Lo receives an annual base salary of at least $300,000 and Mr. Kilrea receives an annual base salary of at least $300,000.  We are required to review each named executive officer’s base salary annually and increase the base salary on each April 1 by at least the greater of 4% or the most recently published increase in the Consumer Price Index, subject to the extension of the date for 2011 salary increases pursuant to the Employment Agreement Amendments; |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ● |   | each of these named executive officers is entitled to participate in our cash incentive plans, stock incentive plans and employee stock purchase plan;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  ● |   | each of these named executive officers is entitled to participate in our Incentive Bonus Plan which provides for target annual cash incentives based upon a multiple of the named executive officer’s base salary;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  ● |   | each of the named executive officers is entitled to share-based grants having a targeted value determined in accordance with U.S. generally accepted accounting principles;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  ● |   | each of these named executive officers receives an auto allowance of $750 per month and each is eligible to participate in any medical, health, dental, disability and life insurance policy that we maintain for the benefit of our other senior management;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  ● |   | each of these named executive officers also receives at our expense at least $2.0 million of life insurance coverage and disability insurance coverage up to 75% of the named executive officer’s base salary, provided that we will not be required to pay premiums in excess of $20,000 in any year for this insurance coverage for any single named executive officer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ●       |   | in the event the named executive officer’s employment is terminated by RC2 without cause (as defined in the Existing Employment Agreements) or by the named executive officer for good reason (as defined in the Existing Employment Agreements), including a failure by us to renew the Existing Employment Agreement after the expected completion date of the Existing Employment Agreement other than for cause, the named executive officer is entitled to continuation of the named executive officer’s then effective base salary (which for purposes of this clause after April 1, 2009 through March 31, 2010 is based on an amount as if the 4% base salary increase had been made on April 1, 2009) for two years following the date of termination of employment and a lump sum payment equal to 100% of the average annual payment under our incentive plans over the preceding three years (50% of the current year target annual cash incentive amount for Mr. Nicholson) or, if after or in anticipation of a change of control, the named executive officer is entitled to a lump sum payment of three years of base salary (which for purposes of this clause after April 1, 2009 through March 31, 2010 is based on an amount as if the 4% base salary increase had been made on April 1, 2009) and a payment equal to the greater of 200% of the average annual payments under our cash incentive plans over the preceding three years or 100% of his or her current year target annual cash incentive amount; |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  ● |   | to the extent necessary to comply with Internal Revenue Code Section 409A, in the event the named executive officer’s employment is terminated by RC2 without cause (as defined in the Existing Employment Agreements) or by the named executive officer for good reason (as defined in the Existing Employment Agreements), RC2 will make a lump sum payment after the six month anniversary of the date of termination of employment equal to the severance benefits (other than certain fringe benefits) that would have otherwise been payable prior to such date plus interest thereon at the prime rate and thereafter continue payment of severance benefits until fully paid under the terms of the Existing Employment Agreement, provided that, if such termination of employment relates to a change of control (as defined in the Existing Employment Agreements), such severance benefits will be paid by RC2 in a lump sum into a rabbi trust for the benefit of the named executive officer upon termination of employment and will not be released from the rabbi trust until after the six month anniversary of the date of termination of employment;                                                                                                                                                                                                                                                                                                                                                                            |

----

|  ● |   | in the event the named executive officer’s employment is terminated by the named executive officer without good reason (as defined in the Existing Employment Agreements), we are obligated to pay the named executive officer his or her actual current year cash incentive earned, as determined at year end and prorated by the number of months employed in the year of termination; |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                           |
|  ● |   | the named executive officer has up to twelve months after termination other than by us for cause to exercise any vested share-based grants previously granted to the named executive officer;                                                                                                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                           |
|  ● |   | all outstanding share-based grants vest upon death or disability as well as upon a change of control of RC2; and                                                                                                                                                                                                                                                                               |

| ● |   | each of these named executive officers agreed not to compete with us during employment and for a period of two years following termination of employment (six months if employment is terminated by us after a change of control or if the Existing Employment Agreements is not renewed by us after the expected completion date of the Existing Employment Agreements) and agreed to maintain the confidentiality of our proprietary information and trade secrets during the term of employment and for five years thereafter. |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                |   | Salary |    |   | Cash Incentive |   |    | Benefits (1) |   |   | Total   |   |
|---------------------|--------|--------|---------|--------|----------------|--------|---------|--------------|--------|--------|---------|--------|
| Curtis W. Stoelting |   | $      | 973,440 |   |           | $      | 297,262 |         |   | $      | 116,747 |   |   | $ | 1,387,449 |   |
| Peter J. Henseler   |   | $      | 973,440 |   |           | $      | 297,262 |         |   | $      | 112,378 |   |   | $ | 1,383,080 |   |
| Peter A. Nicholson  |   | $      | 648,960 |   |           | $      | 275,808 |         |   | $      | 102,604 |   |   | $ | 1,027,372 |   |
| Helena Lo           |   | $      | 648,960 |   |           | $      | 155,027 |         |   | $      | 77,517  |   |   | $ | 881,504 |   |
| Gregory J. Kilrea   |   | $      | 648,960 |   |           | $      | 155,027 |         |   | $      | 105,226 |   |   | $ | 909,213 |   |

| Name                |   | Salary |      |   | Cash Incentive |   |      | Benefits (1) |   |   | Total   |   |
|---------------------|--------|--------|-----------|--------|----------------|--------|-----------|--------------|--------|--------|---------|--------|
| Curtis W. Stoelting |   | $      | 1,460,160 |   |           | $      | 1,095,120 |         |   | $      | 116,747 |   |   | $ | 2,672,027 |   |
| Peter J. Henseler   |   | $      | 1,460,160 |   |           | $      | 1,095,120 |         |   | $      | 112,378 |   |   | $ | 2,667,658 |   |
| Peter A. Nicholson  |   | $      | 973,440   |   |           | $      | 551,616   |         |   | $      | 102,604 |   |   | $ | 1,627,660 |   |
| Helena Lo           |   | $      | 973,440   |   |           | $      | 567,840   |         |   | $      | 77,517  |   |   | $ | 1,618,797 |   |
| Gregory J. Kilrea   |   | $      | 973,440   |   |           | $      | 567,840   |         |   | $      | 105,226 |   |   | $ | 1,646,506 |   |

| Names               |   | Number of SharesUnderlying Unvested Options/SARs/RSUs |    |   | Unrealized Value of Unvested Options/SARs/RSUs (1) |   |
|---------------------|--------|------------------------------------------------------------|---------|--------|----------------------------------------------------|--------|
| Curtis W. Stoelting |   |                                                       | 454,467 |   |                                               |   | $4,381,724 |   |
| Peter J. Henseler   |   |                                                       | 454,467 |   |                                               |   | $4,381,724 |   |
| Peter A. Nicholson  |   |                                                       | 206,067 |   |                                               |   | $2,590,846 |   |
| Helena Lo           |   |                                                       | 188,567 |   |                                               |   | $2,058,131 |   |
| Gregory J. Kilrea   |   |                                                       | 187,567 |   |                                               |   | $2,058,131 |   |

| (1) | Unrealized value equals the closing market value of our common stock as of December 31, 2010, minus the exercise price for options and SARs, multiplied by the number of unvested shares of our common stock as of such date.  The closing market value of our common stock on December 31, 2010, was $21.77.  Options and stock appreciation rights that have an exercise price in excess of the closing market value of our common stock on December 31, 2010, are deemed to have no value for this purpose. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                     |   | Fees Earned or Paid in Cash |   |   | Restricted Stock Awards (Note 1) |   |    | All Other Compensation (Note 2) |   |   | Total   |   |
|--------------------------|--------|-----------------------------|--------|--------|----------------------------------|--------|---------|---------------------------------|--------|--------|---------|--------|
| John S. Bakalar          |   | $                           | 35,000 |   |                             | $      | 74,989  |                            |   | $      | – |   |   | $ | 109,989 |   |
| Joan K. Chow             |   | $                           | 29,069 |   |                             | $      | 74,989  |                            |   | $      | – |   |   | $ | 104,058 |   |
| Thomas M. Collinger      |   | $                           | 43,000 |   |                             | $      | 74,989  |                            |   | $      | – |   |   | $ | 117,989 |   |
| Robert E. Dods           |   | $                           | 35,000 |   |                             | $      | 74,989  |                            |   | $      | 11,236  |   |   | $ | 121,225 |   |
| Linda A. Huett           |   | $                           | 43,000 |   |                             | $      | 74,989  |                            |   | $      | – |   |   | $ | 117,989 |   |
| Michael E. Merriman, Jr. |   | $                           | 45,418 |   |                             | $      | 74,989  |                            |   | $      | – |   |   | $ | 120,407 |   |
| Paul E. Purcell          |   | $                           | 35,000 |   |                             | $      | 74,989  |                            |   | $      | – |   |   | $ | 109,989 |   |
| John J. Vosicky          |   | $                           | 40,582 |   |                             | $      | 74,989  |                            |   | $      | – |   |   | $ | 115,571 |   |
| Daniel M. Wright (3)     |   | $                           | 12,212 |   |                             | $      | – |                            |   | $      | – |   |   | $ | 12,212 |   |

----

| (1)  | Under our Outside Director Compensation Plan in effect in 2010, on May 6, 2010, each director received an award of 4,100 shares of restricted stock with a value of $74,989 determined based upon the fair market value per share on the date of grant of $18.29. All such shares of restricted stock vest pro rata over a three year period on each anniversary date of the grant.       |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                                                                                      |
| (2)       | In the case of Mr. Dods, consists of personal usage of the company airplane. For the calculation of the incremental cost of the personal use of the company airplane, we calculate a per hour amount for variable costs such as fuel, landing and parking fees and expenses for the flight crew, and then multiply that per hour cost by the number of hours of personal use by Mr. Dods. |
|      |                                                                                                                                                                                                                                                                                                                                                                                      |
| (3)       | Mr. Wright retired from the Board of Directors as of May 6, 2010.                                                                                                                                                                                                                                                                                                                         |

| Name of Outside Director | Number of Shares of Common Stock Subject to Common Stock Options Outstanding as of December 31, 2010 |
|--------------------------|------------------------------------------------------------------------------------------------------|
| John S. Bakalar          | 29,892                                                                                               |
| Joan K. Chow             |         –                                                   |
| Thomas M. Collinger      |   3,586                                                                                         |
| Robert E. Dods           |   1,915                                                                                         |
| Linda A. Huett           |         –                                                   |
| Michael J. Merriman, Jr. |   1,915                                                                                         |
| Paul E. Purcell          |   9,911                                                                                         |
| John J. Vosicky          | 10,862                                                                                               |

----

| Name                                            |   | Share of Common Stock Beneficially Owned |      |   | Percent of Common Stock Beneficially Owned |   |
|-------------------------------------------------|--------|------------------------------------------|-----------|--------|--------------------------------------------|--------|
| Principal Stockholders:                         |   |                                     |      |   |                                       |   |
| FMR LLC (1)                                     |   |                                     | 1,833,292 |   |                                       |   | 8.5 | % |
| BlackRock, Inc. (2)                             |   |                                     | 1,815,014 |   |                                       |   | 8.4 | % |
| Wells Fargo & Company (3)                   |   |                                     | 1,645,471 |   |                                       |   | 7.6 | % |
| Wellington Management Company, LLP (4)          |   |                                     | 1,590,120 |   |                                       |   | 7.3 | % |
| Royce & Associates (5)                      |   |                                     | 1,292,962 |   |                                       |   | 6.0 | % |
|                                            |   |                                     |      |   |                                       |   |   |   |
| Directors and Executive Officers:               |   |                                     |      |   |                                       |   |   |   |
| Robert E. Dods (6)                              |   |                                     | 137,244   |   |                                       |   | * |   |
| John S. Bakalar (7)                             |   |                                     | 94,771    |   |                                       |   | * |   |
| John J. Vosicky (8)                             |   |                                     | 32,741    |   |                                       |   | * |   |
| Curtis W. Stoelting (9)                         |   |                                     | 632,507   |   |                                       |   | 2.9 | % |
| Paul E. Purcell (10)                            |   |                                     | 61,790    |   |                                       |   | * |   |
| Thomas M. Collinger (11)                        |   |                                     | 20,465    |   |                                       |   | * |   |
| Michael J. Merriman, Jr. (12)                   |   |                                     | 18,794    |   |                                       |   | * |   |
| Linda A. Huett                                  |   |                                     | 16,531    |   |                                       |   | * |   |
| Joan K. Chow                                    |   |                                     | 4,100     |   |                                       |   | * |   |
| Peter J. Henseler (13)                          |   |                                     | 422,586   |   |                                       |   | 1.9 | % |
| Peter A. Nicholson (14)                         |   |                                     | 95,683    |   |                                       |   | * |   |
| Gregory J. Kilrea (15)                          |   |                                     | 108,484   |   |                                       |   | * |   |
| Helena Lo (16)                                  |   |                                     | 168,979   |   |                                       |   | * |   |
| All directors and executive officers as a group |   |                                     |      |   |                                       |   |   |   |
|    (13 persons) (17)             |   |                                     | 1,814,675 |   |                                       |   | 8.1 | % |

| (1)    | FMR LLC filed a Schedule 13G dated June 9, 2010, as amended as of February 11, 2011, reporting that as of February 11, 2011, FMR LLC, a parent holding company, and Edward C. Johnson 3d, the chairman of FMR LLC, beneficially owned 1,833,292 shares of our common stock, with sole voting power over 273,009 shares and sole investment power over all 1,833,292 shares of our common stock.  The address of FMR LLC is 82 Devonshire Street, Boston, MA 02109.                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (2)    | BlackRock, Inc. (“BlackRock”) filed a Schedule 13G dated January 20, 2010, as amended as of January 21, 2011, reporting that as of January 21, 2011, BlackRock beneficially owned 1,815,014 shares of our common stock with sole voting power and sole investment power over all such shares of our common stock.  BlackRock’s address is 40 East 52nd Street, New York, New York 10022.                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (3)    | Wells Fargo & Company filed a Schedule 13G dated January 28, 2009, as amended as of January 29, 2010 and as of January 14, 2011, reporting that as of January 14, 2011, it (on behalf of its subsidiaries) beneficially owned 1,645,471 shares of our common stock, with sole voting power over 1,066,439 shares, sole investment power over 1,517,739 shares and shared investment power over 4,700 shares.  Wells Fargo & Company’s address is 420 Montgomery Street, San Francisco, California 94104.                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (4)    | Wellington Management Company, LLP filed a Schedule 13G dated August 10, 2009, as amended as of February 12, 2010, as of December 10, 2010 and as of February 14, 2011, reporting that as of February 14, 2011, Wellington Management Company beneficially owned 1,590,120 shares of our common stock, with shared voting power over 1,248,093 shares and shared investment power over all 1,590,120 shares of our common stock.  Wellington Management Company’s address is 280 Congress Street, Boston, MA 02210.                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (5)    | Royce & Associates, LLC filed a Schedule 13G dated February 5, 2004, as amended as of February 2, 2005, as of January 31, 2006, as of January 24, 2007, as of January 30, 2008, as of January 30, 2009, as of January 26, 2010, and as of January 19, 2011, reporting that as of January 19, 2011, Royce & Associates beneficially owned 1,292,962 shares of our common stock, with sole voting and investment power over all such shares of our common stock.  Royce & Associates’ address is 745 Fifth Avenue, New York, New York 10151. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (6)    | Represents 118,450 shares of our common stock held by a trust for which Mr. Dods serves as trustee, 16,879 shares of our common stock owned directly by Mr. Dods and 1,915 shares of our common stock subject to stock options.                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (7)    | Includes 29,892 shares of our common stock subject to stock options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (8)    | Includes 10,862 shares of our common stock subject to stock options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

| (9)    | Represents (a) 120,725 shares of our common stock held by a revocable trust for which Mr. Stoelting serves as trustee, (b) 17,000 shares of our common stock held by a revocable trust for which Mr. Stoelting’s spouse serves as trustee, (c) 12,000 shares held in three separate trusts for the benefit of Mr. Stoelting’s children, (d) 338,300 shares of our common stock subject to stock options, (e) 10,379 shares of our common stock purchased pursuant to our Employee Stock Purchase Plan and (f) 134,103 shares of our common stock subject to stock-settled stock appreciation rights calculated using the March 9, 2011 closing price of our common stock.                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (10)   | Includes 9,911 shares of our common stock subject to stock options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (11)   | Includes 3,586 shares of our common stock subject to stock options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (12)   | Includes 1,915 shares of our common stock subject to stock options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (13)   | Includes 263,300 shares of our common stock subject to stock options and 134,103 shares of our common stock subject to stock-settled stock appreciation rights calculated using the March 9, 2011 closing price of our common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (14)   | Includes (a) 24,000 shares of our common stock subject to stock options, (b) 2,811 shares of our common stock purchased pursuant to our Employee Stock Purchase Plan and (c) 66,372 shares of our common stock subject to stock-settled stock appreciation rights calculated using the March 9, 2011 closing price of our common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (15)   | Represents (a) 73,400 shares of our common stock subject to stock options, (b) 506 shares of our common stock purchased pursuant to our Employee Stock Purchase Plan and (c) 34,578 shares of our common stock subject to stock-settled stock appreciation rights calculated using the March 9, 2011 closing price of our common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (16)   | Represents 111,750 shares of our common stock subject to stock options and 57,229 shares of our common stock subject to stock-settled stock appreciation rights calculated using the March 9, 2011 closing price of our common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (17)   | Includes (a) 118,450 shares of our common stock held by a trust for which Mr. Dods serves as trustee, (b) 13,696 shares of our common stock purchased under our Employee Stock Purchase Plan, (c) 123,725 shares of our common stock held by a revocable trust for which Mr. Stoelting serves as trustee, (d) 17,000 shares of our common stock held by a revocable trust for which Mr. Stoelting’s spouse serves as trustee, (e) 9,000 shares held in three separate trusts for the benefit of Mr. Stoelting’s children, (f) 868,831 shares of our common stock subject to stock options and (g) 426,385 shares of our common stock subject to stock-settled stock appreciation rights calculated using the March 9, 2011 closing price of our common stock. |

| Plan Category                                          | Number of Common Shares to BeIssued Upon Exercise of Outstanding Options and SSARs | Weighted Average Exercise Price of Outstanding Options/SSARs | Number of Common SharesAvailable for FutureIssuance Under Equity Compensation Plans (1) |
|--------------------------------------------------------|------------------------------------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| Equity compensation plans approved by stockholders     | 2,629,423                                                                          | $16.01                                                            | 1,157,845                                                                               |
| Equity compensation plans not approved by stockholders |             -               |          -                |              -              |
| Total                                                  | 2,629,423                                                                          | $16.01                                                            | 1,157,845                                                                               |

|  (1) |   | Number of common shares available for future issuance under equity compensation plans consists of 740,999 shares related to the 2005 Stock Incentive Plan and 416,846 shares related to the ESPP. |
|-----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  (1) |   | John S. Bakalar     |   (5) |   | Linda A. Huett           |
|-----------|--------|---------------------|------------|--------|--------------------------|
|  (2) |   | Joan K. Chow        |   (6) |   | Michael J. Merriman, Jr. |
|  (3) |   | Thomas M. Collinger |   (7) |   | Paul E. Purcell          |
|  (4) |   | Robert E. Dods      |   (8) |   | John J. Vosicky          |

| Service Type           |   | 2010   |    |   | 2009   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
| Audit fees (1)         |   | $      | 713,058 |   |   | $      | 708,164 |   |
| Audit-related fees (2) |   |   | 28,863  |   |   |   | 11,041 |   |
| Tax fees (3)           |   |   | 11,577  |   |   |   | 32,141 |   |
| All other fees         |   |   | — |   |   |   | — |   |
| Total fees billed      |   | $      | 753,498 |   |   | $      | 751,346 |   |

----

| (1)    | Includes fees for professional services rendered in connection with the audit of our consolidated financial statements for the fiscal years ended December 31, 2010 and December 31, 2009; the audit of effectiveness of our internal control over financial reporting as of December 31, 2010 and December 31, 2009; the reviews of the consolidated financial statements included in each of our quarterly reports on Form 10-Q during those fiscal years; and consents and assistance with documents filed by us with the SEC. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (2)    | Consists primarily of fees for due diligence related to the pending acquisition of the Company by Parent, statutory audit requirements in foreign jurisdictions and the audits of certain international benefit plans.                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (3)    | Primarily consists of fees for the tax review of certain investments, the preparation of statutory tax returns and other tax assistance in foreign jurisdictions.                                                                                                                                                                                                                                                                                                                                                                 |

----

| 3.1    | Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2002 (File No. 0-22635)).                                           |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                |
| 3.2    | First Amendment to Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2002 (File No. 0-22635)).                        |
|   |                                                                                                                                                                                                                                                                |
| 3.3    | Certificate of Ownership and Merger changing the Company’s name to Racing Champions Ertl Corporation (incorporated by reference to Exhibit 3.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2002 (File No. 0-22635)). |
|   |                                                                                                                                                                                                                                                                |
| 3.4    | Certificate of Ownership and Merger changing the Company’s name to RC2 Corporation (incorporated by reference to Exhibit 3.4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2003 (File No. 0-22635)).                   |
|   |                                                                                                                                                                                                                                                                |
| 3.5    | Amended and Restated By-Laws of the Company (incorporated by reference to Exhibit 3.5 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 (File No. 0-22635)).                                                                |

----

| 10.1*  | Employment Agreement, dated April 1, 2008, between the Company and Curtis W. Stoelting (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 (File No. 0-22635)).                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.2*  | Employment Agreement, dated April 1, 2008, between the Company and Peter J. Henseler (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 (File No. 0-22635)).                                                                          |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.3*  | Employment Agreement, dated November 5, 2008, between the Company and Peter A. Nicholson (incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K dated November 5, 2008 (File No. 0-22635) filed by the Company with the Securities and Exchange Commission on November 10, 2008). |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.4*  | Employment Agreement, dated April 1, 2008, between the Company and Helena Lo (incorporated by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 (File No. 0-22635)).                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.5*  | Employment Agreement, dated April 1, 2008, between the Company and Gregory J. Kilrea (incorporated by reference to Exhibit 10.5 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 (File No. 0-22635)).                                                                          |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.6*  | RC2 Corporation 2005 Stock Incentive Plan, as amended (incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K (File No. 0-22635) filed by the Company with the Securities and Exchange Commission on May 10, 2010).                                                                |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.7*  | Form of Non Statutory Stock Option Grant Agreement for the RC2 Corporation 2005 Stock Incentive Plan (incorporated by reference to Exhibit 99.2 of the Company’s Current Report on Form 8-K (File No. 0-22635) filed by the Company with the Securities and Exchange Commission on May 10, 2005).                 |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.8*  | Form of Stock-Settled Stock Appreciation Right Grant Agreement for RC2 Corporation 2005 Stock Incentive Plan (incorporated by reference to Exhibit 10.8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 0-22635)).                                                     |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.9*  | Form of Cash-Settled Stock Appreciation Right Grant Agreement for RC2 Corporation 2005 Stock Incentive Plan (incorporated by reference to Exhibit 10.9 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 0-22635)).                                                      |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.10* | Form of Restricted Stock Grant Agreement for RC2 Corporation 2005 Stock Incentive Plan (incorporated by Reference to Exhibit 10.10 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 0-22635)).                                                                          |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.11* | Form of Performance-Based Restricted Stock Unit Agreement (incorporated by reference to Exhibit 99.2 of the Company’s Current Report on Form 8-K (File No. 0-22635) filed by the Company with the Securities and Exchange Commission on May 10, 2010).                                                            |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.12* | RC2 Corporation 2008 Incentive Bonus Plan (incorporated by reference to Exhibit 99.2 of the Company’s Current Report on Form 8-K (File No. 0-22635) filed by the Company with the Securities and Exchange Commission on May 12, 2008).                                                                            |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.13* | Outside Director Compensation Plan (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (File No. 0-22635)).                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.14* | Amendment to Outside Director Compensation Plan effective January 1, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 (File No. 0-22635)).                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                    |
| 10.15* | Racing Champions Ertl Corporation Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10.5 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2002 (File No. 0-22635)).                                                                                        |

----

| 10.16* | RC2 Corporation Employee Stock Purchase Plan, as amended (incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K dated May 4, 2007 (File No. 0-22635) filed by the Company with the Securities and Exchange Commission on May 10, 2007).                                                                                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.17  | Credit Agreement, dated as of November 3, 2008, among the Company, certain of its subsidiaries, Bank of Montreal, as administrative agent, BMO Capital Markets as sole lead arranger and sole book runner, and other lenders named therein (incorporated by reference to Exhibit 10.17 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 0-22635)). |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.18  | First Amendment to Credit Agreement, dated as of February 12, 2009, among the Company, certain of its subsidiaries, Bank of Montreal, as administrative agent, and other lenders named therein (incorporated by reference to Exhibit 10.18 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 0-22635)).                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.19  | Second Amendment to Credit Agreement, dated as of November 10, 2010, among the Company, certain of its Subsidiaries, Bank of Montreal, as administrative agent, and other lenders named therein (previously filed).                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.20* | Technical Amendment to Employment Agreement for 409A Compliance, dated December 28, 2010, between the Company and Curtis W. Stoelting (previously filed).                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.21* | Technical Amendment to Employment Agreement for 409A Compliance, dated December 28, 2010, between the Company and Peter J. Henseler (previously filed).                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.22* | Technical Amendment to Employment Agreement for 409A Compliance, dated December 28, 2010, between the Company and Peter A. Nicholson (previously filed).                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.23* | Technical Amendment to Employment Agreement for 409A Compliance, dated December 28, 2010, between the Company and Gregory J. Kilrea (previously filed).                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 21     | Subsidiaries of the Company (previously filed).                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 23.1   | Consent of Independent Registered Public Accounting Firm (previously filed).                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 24     | Power of Attorney (previously filed).                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.1   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.2   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| 32.1** | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002) (previously filed).                                                                                                                                                                                                                        |

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| By: *______________________                                                                                           |   | Chairman of the Board and Director           | April 8, 2011 |
|-----------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------------|
|  Robert E. Dods                                                                                                  |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: /s/ Curtis W. Stoelting                |   | Chief Executive Officer and                  | April 8, 2011 |
| Curtis W. Stoelting                                                                                                   |   | Director (Principal Executive Officer)       |          |
|                                                                                                                  |   |                                         |          |
| By: /s/ Peter A. Nicholson                 |   | Chief Financial Officer and Secretary        | April 8, 2011 |
| Peter A. Nicholson                                                                                                    |   | (Principal Financial and Accounting Officer) |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  Peter J. Henseler                                                                                               |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  Linda A. Huett                                                                                                  |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  Paul E. Purcell                                                                                                 |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  John S. Bakalar                                                                                                 |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  John J. Vosicky                                                                                                 |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  Joan K. Chow                                                                                                    |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  Thomas M. Collinger                                                                                             |   |                                         |          |
|                                                                                                                  |   |                                         |          |
| By: *______________________                                                                                           |   | Director                                     | April 8, 2011 |
|  Michael J. Merriman, Jr.                                                                                        |   |                                         |          |

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