Document:

exv10w1

Exhibit 10.1

AMENDMENT TO

RC2 CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

(as amended effect May 4, 2007)

     This Amendment to RC2 Corporation Employee Stock Option Plan is adopted by RC2 Corporation, a
Delaware corporation (the “Company”).

     WHEREAS, the Company adopted the RC2 Corporation Employee Stock Purchase Plan (the “Plan”) as
amended effective May 4, 2007, with the Plan intended to qualify as an “employee stock purchase
plan” under Section 423 of the Internal Revenue Code (capitalized terms used in this Amendment and
not otherwise defined herein shall have the respective meanings ascribed to them in the Plan); and

     WHEREAS, the Board has authorized an amendment to the Plan as set forth herein.

     NOW, THEREFORE, the Plan is hereby amended as follows, effective as of the date of its
execution as set out below:

     1. Section 4.01 of the Plan is hereby amended to add the following sentence at the end
thereof:

	 	 	 	Notwithstanding anything in this Plan to the contrary, no new Offerings shall
commence following March 10, 2011.

     2. Except as provided above, the Plan is hereby ratified and confirmed.

     IN WITNESS WHEREOF, the Company has hereby executed this Amendment as of the 10th day of
March, 2011.

	 	 	 	 	 	 	 

	 

	 	RC2 CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY
	 	/s/ Curtis W. Stoelting
 

	 	 
	 

	 	 	 	Name: Curtis W. Stoelting	 	 
	 

	 	 	 	Title: Chief Executive Officerexv10w2

Exhibit 10.2

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”), dated March 10, 2011, is entered into by and between
RC2 Corporation, a Delaware corporation (the “Company”), and Curtis W. Stoelting (the “Employee”)
and, solely with respect to Sections 3(b), 4 and 6, Tomy Company, Ltd., a company organized under
the laws of Japan (“Purchaser”). Capitalized terms used but not defined herein shall have the
respective meanings ascribed to them in the Merger Agreement (as defined below).

     WHEREAS, The Employee and the Company are currently parties to an Employment Agreement, dated
April 1, 2008, as amended December 28, 2010, and as further amended effective March 31, 2011
(collectively, the “Prior Agreement”); and

     WHEREAS, Purchaser and Galaxy Dream Corporation, a Delaware corporation and a wholly owned
subsidiary of Purchaser, expect to enter into an AGREEMENT AND PLAN OF MERGER (the “Merger
Agreement”) with the Company whereby it is proposed that (i) MergerSub make a cash tender offer
(the “Offer”) to purchase all outstanding shares of common stock of the Company and (ii) following
the consummation of the Offer, MergerSub will merge with and into the Company, with the Company
being the surviving corporation; and

     WHEREAS, as a stockholder of the Company and as an owner of options, stock appreciation rights
(cash-settled and stock-settled) and restricted stock units, in each case covering common stock of
the Company (collectively, “Company Equity Awards”), the Employee will receive valuable
consideration as a direct result of the transactions contemplated by the Merger Agreement (the
“Sale Consideration”).

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company and the Employee, intending to be legally bound, hereby agree as follows:

     1. Employment. Subject to the consummation of the Offer, the Company hereby agrees to
employ the Employee and the Employee hereby accepts employment with the Company on the terms and
subject to the conditions set forth in this Agreement.

     2. Term. This Agreement shall be effective as of the date the Offer is consummated
(the “Commencement Date”) and shall continue until terminated as provided in Section 6 below. As
of the Commencement Date, the Employee acknowledges and agrees that

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the Prior Agreement shall be terminated in full and that he shall not be entitled to any
rights or benefits thereunder, including any rights to claim Good Reason (as defined in the Prior
Agreement) with respect to actions, failures or other events that occurred on or prior to the
Commencement Date.

     3. Duties.

     (a) Position. The Employee shall serve as the Chief Executive Officer of the Company
and will, under the direction of the Board of Directors of Purchaser (the “Board”), faithfully, and
to the best of his ability, perform the duties of such position, which includes the management and
operation of the Company’s brands and product lines in North America, South America, Europe and
Australia and related global sourcing activities. The Employee shall be one of the principal
executive officers and Senior Management of the Company and shall, subject to the control of the
Board, have the normal duties, responsibilities and authority associated with such position. The
Employee shall also perform such additional duties and responsibilities which may from time to time
be reasonably assigned or delegated by the Board. The Employee agrees to devote his entire
business time, effort, skill and attention to the proper discharge of such duties while employed by
the Company.

     (b) Board Membership. Subject to applicable law and the approval of Purchaser’s
shareholders, the Employee shall be appointed as a director of Purchaser and the Company as soon as
reasonably practicable following the Commencement Date. In the event of the termination or
expiration of the Employment Period (as defined in Section 6(a)), upon the request of Purchaser,
the Employee shall submit a letter of resignation from his position as a director of Purchaser, his
position on any committees of the Board and his position on the board of directors of any of
Purchaser’s Affiliates (and any committees thereof), to be effective as of the date designated by
Purchaser.

     4. Compensation.

     (a) Base Salary. The Employee shall receive a base salary of $486,720 per year,
payable in regular and equal bi-weekly installments (the “Base Salary”). The Base Salary shall be
reviewed annually by the Board on or around April 1st of each year and shall be subject
to increase based on the Employee’s performance, changes in Employee’s responsibilities and
increases in the Consumer Price Index.

     (b) Incentive Bonus. The Employee shall be entitled to participate in an annual
incentive compensation plan (the “Bonus Plan”) developed generally for the Senior Management of the
Company initially based on the Company’s earnings before interest, taxes, depreciation and
amortization, as determined by the compensation committee of the Board (the “Compensation
Committee”). The Employee’s participation will be on a basis consistent with past practice and his
position and level of compensation with the Company. The Employee’s

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target bonus under the Bonus Plan shall be reviewed annually by the Compensation Committee but
shall be not less than 2.25 times the Employee’s then Base Salary.

     (c) Equity Awards. Subject to approval by the Board and any required approval by
Purchaser’s shareholders, the Employee shall be entitled to receive, as soon as reasonably
practicable after the next annual shareholders’ meeting of Purchaser to occur following the
Commencement Date, but in no event later than September 30, 2011, an initial equity award(s)
covering 200,000 shares of Purchaser pursuant to Purchaser’s equity plan in accordance with the
terms and conditions set forth in Schedule A which is attached hereto and made a part hereof.
Purchaser hereby represents that such terms and conditions are at least as favorable as the terms
and conditions applicable to equity award(s) made by Purchaser to its senior management generally.
To the extent the above-referenced approvals are not obtained, Purchaser shall provide the Employee
with a long-term cash incentive benefit equal to the Black-Scholes value of the equity award
described above, measured as of the date such cash incentive benefit is granted. Subject to the
approval of the Board and any required approval by Purchaser’s shareholders, the Employee shall be
eligible for future annual equity awards on the conditions, terms and frequency applicable to
equity award(s) made by Purchaser to its senior management generally.

     (d) Rollover Bonus.

          (i) On the Commencement Date, the Employee shall be entitled to a cash bonus (the “Rollover
Bonus”) in an amount equal to $3,500,000, as set forth under “Total Rollover Bonus” on Schedule B
which is attached hereto and made a part hereof. The Rollover Bonus represents the spread cash
value of certain Company Equity Awards that (a) have not vested as of immediately prior to the
consummation of the Offer and (b) the vesting of which, but for this Section 4(d), otherwise would
have been accelerated and cash payment made therefor in the Merger pursuant to the Merger Agreement
(the “Unvested Company Equity Awards”). In exchange for such Rollover Bonus, the Employee hereby
waives the acceleration of vesting with respect to the Unvested Company Equity Awards, and agrees
to cancel such awards in full as of the Commencement Date, and the Employee hereby agrees that such
awards shall have no further force and effect on and after the Commencement Date. Purchaser shall
cause or cause to be delivered by wire transfer the amounts constituting the Rollover Bonus to an
interest-bearing escrow account established at Harris Bank in Chicago, Illinois. Subject to the
Employee’s continued employment with the Company on the applicable vesting dates, the Rollover
Bonus shall vest as to twenty percent (20%), thirty-five percent (35%), and forty-five percent
(45%) on the eve of each of the first, second, and third anniversaries of the Commencement Date,
respectively. Except as set forth in Section 6, the vested portion of the Rollover Bonus and any
interest thereon shall become payable within ten (10) days following the applicable vesting date.
For the avoidance of doubt, at the Effective Time, each of the Employee’s Company Equity Awards
that have not vested as of immediately prior to the consummation of the Offer and that do not get
canceled in exchange for the Rollover Bonus described in this Section 4(d)(i), shall, at the
Effective Time, be cancelled in full and the Employee shall be entitled to receive a cash

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payment therefor as provided in the Merger Agreement (such cash payment is set forth under
“Cash at Closing” on Schedule B attached hereto).

          (ii) In the event of a Purchaser Change of Control or a Company Change of Control, the
Employee shall be entitled to immediate vesting of the then unvested portion of the Rollover Bonus
and payment therefor and any interest thereon, payable within thirty (30) days following the
Purchaser Change of Control or Company Change of Control, as applicable.

          (iii) In the event that it shall be finally determined by the Internal Revenue Service that
all or any portion of the Rollover Bonus is subject to the additional tax imposed by Section 409A
of the Code, or any interest or penalties incurred by Employee with respect to such additional tax
(such additional tax, together with any such interest and penalties, are hereinafter collectively
referred to as the “Additional Tax”), then the Company agrees that it shall reimburse the Employee
for the amount of the Additional Tax finally imposed by the Internal Revenue Service on the
Rollover Bonus (the “Reimbursement Amount”) and the amount, if any, such that the Employee receives
an after-tax amount equal to the Reimbursement Amount he would have received had no tax under
Section 409A been imposed on him (the “Additional Amount”). The Reimbursement Amount and the
Additional Amount shall be paid within ten (10) days following a final determination by the
Internal Revenue Service that such Additional Tax is due. To the extent the Employee receives of a
refund of or credit relating to the Additional Tax for which the Company paid the Reimbursement
Amount or relating to the Additional Amount, such refund or credit shall be for the benefit of the
Company, and the Employee shall pay such amount to the Company within ten (10) calendar days after
receiving the refund or after the relevant tax return is filed in which the credit is so applied.
The Company’s obligation to pay the Reimbursement Amount and the Additional Amount is subject to
the Employee notifying the Company within thirty (30) calendar days of any written notice of a
pending audit, assessment or other challenge (a “Challenge”) which, if successful, might result in
the Additional Tax. The Company, at its expense, shall have the right to control the response to,
and any proceedings relating to, any Challenge, including initiating or defending any action and/or
appeal relating to such Challenge, with counsel selected by the Company, in any such case to a
final conclusion or settlement at the discretion of the Company. The Company shall have full
control of such response and proceedings, including any compromise or settlement thereof. The
Company shall keep the Employee reasonably informed regarding the status and progress of such
Challenge. Upon the request of Company, the Employee shall cooperate fully with the Company and
its counsel in contesting any Challenge which the Company elects to contest. The Company shall
reimburse the Employee for all costs and expenses, including attorneys’ fees, that the Employee
reasonably incurs in connection with any such cooperation, provided that the Employee shall submit
appropriate documentation of such costs or expenses no later than ninety (90) calendar days after
incurring such costs or expenses. Such reimbursement shall be made no later than thirty (30)
calendar days following submission of appropriate documentation of such costs or expenses by the
Employee, and in no event later than the end of the taxable year following the taxable year in
which such expenses are incurred.

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          (iv) In the event that the Challenge provides that all or any portion of the Rollover Bonus
that has not then vested is immediately includible in income as a result of the failure to comply
with Section 409A of the Code, the Company shall immediately accelerate the vesting of solely that
portion of the Rollover Bonus necessary to pay such income taxes arising as a result of Section
409A of the Code (“Tax Payment Amount”). The Tax Payment Amount shall equal the aggregate of the
federal, state, local or foreign tax amounts due as a result of the application of Section 409A of
the Code and in no event shall exceed the amount that is required to be included in income as a
result of such failure to comply with the requirements of Section 409A of the Code. Such Tax
Payment Amount shall be paid to the Employee within ten (10) days of the Employee notifying the
Company of such Challenge and in no event later than the last day of the Employee’s taxable year
following the year in which the Employee remits the underlying taxes to the applicable tax
authorities.

          (v) Notwithstanding anything in this Agreement to the contrary, in the event it shall be
determined that any benefit, payment or distribution by the Company to or for the benefit of the
Employee (whether payable or distributable pursuant to the terms of this Agreement or otherwise)
(such benefits, payments or distributions are hereinafter referred to as “Payments”) would, if
paid, be subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code, then,
prior to the making of any Payment to the Employee, a calculation shall be made comparing (i) the
net benefit to the Employee of the Payment after payment of the Excise Tax, to (ii) the net benefit
to the Employee if the Payment had been limited to the extent necessary to avoid being subject to
the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under
(ii) above, then the Payment shall be limited to an amount expressed in present value that
maximizes the aggregate present value of the Payments without causing the Payments or any part
thereof to be subject to the Excise Tax and therefore nondeductible by the Company because of
Section 280G of the Code (the “Reduced Amount”). For purposes of this Section 4(d)(v), present
value shall be determined in accordance with Section 280G(d)(4) of the Code. In the event it is
necessary to reduce the Payments, payments shall be reduced on a last to be paid, first reduced
basis. All determinations required to be made under this Section 4(d)(v), including whether an
Excise Tax would otherwise be imposed, whether the Payments shall be reduced, the amount of the
Reduced Amount, and the assumptions to be utilized in arriving at such determinations, shall be
made by an internationally recognized accounting firm (the “Determination Firm”) which shall
provide detailed supporting calculations both to the Company and the Employee within fifteen (15)
business days of the receipt of notice from the Employee that a Payment is due to be made, or such
earlier time as is requested by the Company. All fees and expenses of the Determination Firm shall
be borne solely by the Company. Any determination by the Determination Firm shall be binding upon
the Company and the Employee. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Determination Firm hereunder, it is
possible that Payments hereunder will have been unnecessarily limited by this Section 4(d)(v)
(“Underpayment”), consistent with the calculations required to be made hereunder. The
Determination Firm shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the Employee together
with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code. In
the event that the provisions of Code Section 280G and 4999 or any successor

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provisions are repealed without succession, this Section 4(d)(v) shall be of no further force
or effect.

     5. Fringe Benefits.

     (a) Vacation. The Employee shall be entitled to four weeks of paid vacation annually.
The Employee and the Company shall mutually determine the time and intervals of such vacation.

     (b) Medical, Health, Dental, Disability and Life Coverage. The Employee shall be
eligible to participate in any medical, health, dental, disability and life insurance policy in
effect for the Senior Management of the Company. The Company shall also pay for an annual
executive medical physical.

     (c) Automobile. The Company agrees to reimburse the Employee up to $750.00 per month,
as such amount may be increased from time to time consistent with the Company’s reimbursement
policy for the Senior Management of the Company to cover Employee’s expenses in connection with his
leasing or ownership of an automobile. Additionally, the Company will pay for the gas used for
business purposes. All maintenance and insurance expense for the automobile shall be the
responsibility of the Employee.

     (d) Reimbursement for Reasonable Business Expenses. The Company shall pay or
reimburse the Employee for reasonable expenses incurred by him in connection with the performance
of his duties pursuant to this Agreement including, but not limited to, travel expenses, customer
entertainment, expenses in connection with seminars, professional conventions or similar
professional functions and other reasonable business expenses.

     (e) Key Man Insurance. The parties agree that the Company has the option to purchase
one or more key man life insurance policies upon the life of the Employee. The Company shall own
and shall have the absolute right to name the beneficiary or beneficiaries of said policy. The
Employee agrees to cooperate fully with the Company in securing said policy, including, but not
limited to, submitting himself to any physical examination which may be required at such reasonable
times and places as the Company shall specify.

     (f) Life and Disability Insurance. During the Employment Period, the Company shall
provide coverage of at least $2 million of life insurance and 75% of Base Salary of disability
insurance. Such insurance policies to be owned by any one or more members of Employee’s immediate
family or by a trust for the primary benefit of the Employee’s immediate family. The owner of the
policy shall have the power to designate the beneficiary and to assign any rights under the policy.
The Company shall pay 100% of the premiums required under these policies; provided, however, that
the Company shall not be obligated to pay greater than $20,000

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for such premiums during any fiscal year. In the event that the premiums for such policies
would exceed this limitation, the Company shall consult with the Employee to determine the
allocation of such amount to the premiums for each type of policy to obtain such insurance as may
be available for an aggregate of $20,000 per fiscal year. The Employee shall have the right to
supplement, at the Employee’s expense, the Company’s payment of premiums for such policies up to
the full coverages described in the first sentence of this Section 5(f).

     6. Termination.

     (a) Termination of the Employment Period. The employment period shall continue until
the earlier of: (i) the fourth anniversary of the Commencement Date (the “Expected Completion
Date”), (ii) the Employee’s death or Disability, (iii) the Employee resigns or (iv) the Board or
its delegate determines that termination of the Employee’s employment is in the best interests of
the Company (the “Employment Period”). The last day of the Employment Period shall be referred to
herein as the “Termination Date.”

     (b) Termination for Disability or Death.

     (i) In the event of termination for Disability during the Employment Period,
the Employee shall be entitled to (A) the Base Salary through the date of
termination, payable in accordance with the Company’s usual payment practices; (B)
such fringe benefits, if any, as to which the Employee may be entitled under the
employee benefit plans of the Company (the amounts described in clauses (A) and (B)
hereof being referred to as the “Accrued Rights”); (C) subject to the Employee’s
execution and non-revocation of a Release pursuant to Section 12 herein, continued
payment of Base Salary for a period of six months after the Termination Date,
payable in accordance with the Company’s usual payment practices; provided
that the first payment shall begin on the first regular payroll date to occur on or
after the sixtieth (60th) day following the Termination Date (the “First
Payment Date”) and shall include payment of any amounts that would otherwise be due
prior thereto; (D) subject to the Employee’s execution and non-revocation of a
Release pursuant to Section 12 herein, a pro rata portion of any incentive bonus
that the Employee would have been entitled to receive pursuant to Section 4(b)
hereof in such year based upon the percentage of the fiscal year that shall have
elapsed through the date of the Employee’s termination of employment (the “Pro-Rata
Bonus”), payable when such incentive bonus would have otherwise been payable to the
Employee pursuant to Section 4(b) had the Employee’s employment not terminated; (E)
subject to the Employee’s execution and non-revocation of a Release pursuant to
Section 12 herein, immediate vesting of the then unvested portion of the Rollover
Bonus and payment therefore and any interest thereon (the “Rollover Acceleration
Payment”), payable upon the First Payment Date; (F) subject to the Employee’s
execution and non-revocation of a Release pursuant to Section 12 herein, for a
period of three years after the Termination Date, reimbursement by the Company to
the Employee for amounts

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paid, if any, to continue medical, dental and health coverage pursuant to the
provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”); and (G)
subject to the Employee’s execution and non-revocation of a Release pursuant to
Section 12 herein, for a period of three years after the Termination Date, the
continuation by the Company of Employee’s life insurance and disability coverage, to
the extent limited by Section 5(f).

     (ii) In the event of termination as a result of the Employee’s death during the
Employment Period, Employee’s designated beneficiary or his estate shall be entitled
to receive (A) the Accrued Rights; (B) the proceeds of any life insurance obtained
pursuant to Section 5(f); (C) the Pro Rata Bonus, payable when such incentive bonus
would have otherwise been payable to the Employee pursuant to Section 4(b) had the
Employee’s employment not terminated; and (D) the Rollover Acceleration Payment,
payable within thirty (30) days following the Termination Date.

     (c) Termination by the Company without Cause or by the Employee for Good Reason. If
(i) the Employment Period is terminated by the Company for any reason other than for Cause,
Disability or death, (ii) the Employment Period is terminated by the Company for what the Company
(acting in good faith) reasonably believes is Cause or Disability, and it is ultimately determined
that the Employment Period was terminated without Cause or Disability, or (iii) the Employee
resigns for Good Reason, the Employee shall be entitled to receive, (A) the Accrued Rights; (B)
subject to the Employee’s execution and non-revocation of a Release pursuant to Section 12 herein,
continued payment of Base Salary for a period of twenty-four months after the Termination Date,
payable in accordance with the Company’s usual payment practices; provided that the first
payment shall begin on the first regular payroll date to occur on or after the First Payment Date
and shall include payment of any amounts that would otherwise be due prior thereto; (C) subject to
the Employee’s execution and non-revocation of a Release pursuant to Section 12 herein, the
Rollover Acceleration Payment, payable upon the First Payment Date; (D) subject to the Employee’s
execution and non-revocation of a Release pursuant to Section 12 herein, for a period of two (2)
years from the Termination Date, reimbursement by the Company to the Employee for amounts paid, if
any, to continue medical, dental and health coverage pursuant to the provisions of COBRA; and (E)
subject to the Employee’s execution and non-revocation of a Release pursuant to Section 12 herein,
for a period two (2) years from the Termination Date, the continuation of Employee’s life insurance
and disability coverage to the extent limited by Section 5(f). Notwithstanding anything herein to
the contrary, Employee may only resign for Good Reason pursuant to this Section 6(c) provided that
the Employee has given written notice to the Company within thirty (30) days of the occurrence of
any of the events in Section 11(f) and such event remains uncured thirty (30) days after the
Company’s receipt of such notice.

     (d) Termination by the Company for Cause or by the Employee Without Good Reason. If
the Employment Period is terminated by the Company with Cause or as a result of the Employee’s
resignation without Good Reason, the Employee shall be entitled to receive

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the Accrued Rights. Following such a termination, the Employee shall have no further rights
to any compensation or any other benefits under this Agreement. Notwithstanding anything herein to
the contrary, the Company may only terminate the Employment Period for Cause pursuant to this
Section 6(d) provided that the Company has given written notice to the Employee of the occurrence
of any events constituting Cause within ninety (90) days of the occurrence of any such events and
the Employee fails to cure such events within thirty (30) days after the Employee’s receipt of such
notice.

     (e) Termination of Employment Period Involving Non-Renewal or Non-Extension. If this
Agreement is not renewed or otherwise extended by the Company after the Expected Completion Date
and the Employee’s employment is terminated as of the Expected Completion Date, the Employee shall
be entitled to receive, (A) the Accrued Rights; (B) subject to the Employee’s execution and
non-revocation of a Release pursuant to Section 12 herein, continued payment of Base Salary for a
period of twelve months after the Termination Date, payable in accordance with the Company’s usual
payment practices; provided that the first payment shall begin on the first regular payroll
date to occur on or after the First Payment Date and shall include payment of any amounts that
would otherwise be due prior thereto; (C) subject to the Employee’s execution and non-revocation of
a Release pursuant to Section 12 herein, for a period of one year from the Termination Date, the
Company’s reimbursement to the Employee for amounts paid, if any, to continue medical, dental and
health coverage pursuant to the provisions of COBRA; and (D) subject to the Employee’s execution
and non-revocation of a Release pursuant to Section 12 herein, for a period of one year from the
Termination Date, the continuation of Employee’s life insurance and disability coverage to the
extent limited by Section 5(f). The Company shall provide written notice of any non-renewal or
non-extension of the Agreement pursuant to this Section 6(e) at least sixty (60) days prior to the
Expected Completion Date.

     (f) Effect of Termination. The termination of the Employment Period pursuant to
Section 6(a) shall not affect the Employee’s obligations as described in Sections 7 and 8.

     (g) Retirement. Upon the Employee’s retirement from the Company, to the extent
permitted by the Company’s plans and to the extent the Employee’s or his spouse’s or their eligible
dependent(s) participation would not cause the Company to be subject to an excise tax, the Company
shall continue to provide medical coverage for the Employee, his spouse and their eligible
dependent(s) under the Company’s medical plans from the date of the Employee’s retirement until the
later of the Employee’s or his spouse’s death. To the extent permitted by the applicable plan, the
Employee would be required to make the same contributions for such medical benefits as active
employees. In the event the Company would subject to an excise tax as a result of such medical
coverage, the Employee may nonetheless elect to receive such medical coverage so long as the
Employee reimburses the Company for fifty percent (50%) of the excise tax imposed on the Company as
a result of such participation. The Employee shall also be eligible to participate in the
Company’s group life, disability and dental coverage on and after the retirement date until his
death provided that the Employee pays 100% of the cost for

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such coverage. For the avoidance of doubt, if the Employment Period is terminated (i) by the
Company with Cause at any time or (ii) as a result of the Employee’s resignation without Good
Reason prior to the second anniversary of the Commencement Date, neither the Employee, his spouse
nor any of their dependents shall be entitled to any of the benefits set forth in this Section
6(g).

     7. Noncompetition and Nonsolicitation. The Employee acknowledges and agrees that as a
stockholder of the Company and as an owner of options, stock appreciation rights (cash-settled and
stock-settled) and restricted stock units, in each case covering common stock of the Company, the
Employee will receive valuable consideration as a direct result of the transactions contemplated by
the Merger Agreement. The Employee acknowledges and agrees that the contacts and relationships of
the Company and its Affiliates with its customers, suppliers, licensors and other business
relations are, and have been, established and maintained at great expense and provide the Company
and its Affiliates with a substantial competitive advantage in conducting their business. The
Employee acknowledges and agrees that by virtue of the Employee’s employment with the Company, the
Employee will have unique and extensive exposure to and personal contact with the Company’s
customers and licensors, and that he will be able to establish a unique relationship with those
Persons that will enable him, both during and after employment, to unfairly compete with the
Company and its Affiliates. Furthermore, the parties agree that the terms and conditions of the
following restrictive covenants are reasonable and necessary for the protection of the business,
trade secrets and Confidential Information (as defined in Section 8 below) of the Company and its
Affiliates and to prevent great damage or loss to the Company and its Affiliates as a result of
action taken by the Employee. The Employee acknowledges and agrees that the noncompete
restrictions and nondisclosure of Confidential Information restrictions contained in this Agreement
are reasonable and the consideration provided for herein is sufficient to fully and adequately
compensate the Employee for agreeing to such restrictions. The Employee acknowledges that he could
continue to actively pursue his career and earn sufficient compensation in the same or similar
business without breaching any of the restrictions contained in this Agreement.

     (a) Noncompetition. The Employee hereby covenants and agrees that during the
Employment Period and for two years thereafter (the “Noncompete Period”), he shall not, directly or
indirectly, either individually or as an employee, principal, agent, partner, shareholder, owner,
trustee, beneficiary, co-venturer, distributor, consultant, representative or in any other
capacity, participate in, become associated with, provide assistance to, engage in or have a
financial or other interest in any business, activity or enterprise anywhere in the world which is
competitive with the Company or any of its Affiliates or any successor or assign of the Company or
any of its Affiliates. The ownership of less than a one percent interest in a corporation whose
shares are traded in a recognized stock exchange or traded in the over-the-counter market, even
though that corporation may be a competitor of the Company, shall not be deemed financial
participation in a competitor. If the final judgment of a court of competent jurisdiction declares
that any term or provision of this section is invalid or unenforceable, the parties agree that the
court making the determination of invalidity or unenforceability shall have the power to reduce the
scope, duration, or area of the term or provision, to delete specific words or phrases, or to
replace any invalid or unenforceable term or provision with a term or provision that is valid and

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enforceable and that comes closest to expressing the intention of the invalid or unenforceable
term or provision, and this Agreement shall be enforceable as so modified. The term “indirectly”
as used in this section and Section 8 below is intended to include any acts authorized or directed
by or on behalf of the Employee or any Affiliate of the Employee.

     (b) Nonsolicitation. The Employee hereby covenants and agrees that during the
Noncompete Period, he shall not, directly or indirectly, either individually or as an employee,
agent, partner, shareholder, owner, trustee, beneficiary, co-venturer, distributor, consultant or
in any other capacity:

     (i) canvass, solicit or accept from any Person who is a customer or licensor of
the Company or any of its Affiliates (any such Person is hereinafter referred to
individually as a “Customer,” and collectively as the “Customers”) any business
which is in competition with the business of the Company or any of its Affiliates or
the successors or assigns of the Company or any of its Affiliates, including,
without limitation, the canvassing, soliciting or accepting of business from any
Person which is or was a Customer of the Company or any of its Affiliates within two
years preceding the date of this Agreement, during the Employment Period or during
the Noncompete Period;

     (ii) advise, request, induce or attempt to induce any of the Customers,
suppliers, or other business contacts of the Company or any of its Affiliates who
currently have or have had business relationships with the Company or any of its
Affiliates within two years preceding the date of this Agreement, during the
Employment Period or during the Noncompete Period, to withdraw, curtail or cancel
any of its business or relations with the Company or any of its Affiliates; or

     (iii) hire or induce or attempt to induce any officer or other senior manager
of the Company or any of its Affiliates to terminate his or her relationship or
breach any agreement with the Company or any of its Affiliates unless such person
has previously been terminated by the Company.

     8. Confidential Information. The Employee acknowledges and agrees that the customers,
business connections, customer lists, procedures, operations, techniques, and other aspects of and
information about the business of the Company and its Affiliates (the “Confidential Information”)
are established at great expense and protected as confidential information and provide the Company
and its Affiliates with a substantial competitive advantage in conducting their business. The
Employee further acknowledges and agrees that by virtue of his past employment with the Company,
and by virtue of his employment with the Company, he has had access to and will have access to, and
has been entrusted with and will be entrusted with, Confidential Information, and that the Company
would suffer great loss and injury if the Employee would disclose this information or use it in a
manner not specifically authorized by the

11

 

Company. Therefore, the Employee agrees that during the Employment Period and at all times
thereafter, he will not, directly or indirectly, either individually or as an employee, agent,
partner, shareholder, owner trustee, beneficiary, co-venturer distributor, consultant or in any
other capacity, use or disclose or cause to be used or disclosed any Confidential Information,
unless and to the extent that any such information become generally known to and available for use
by the public other than as a result of the Employee’s acts or omissions. The Employee shall
deliver to the Company at the termination of the Employment Period, or at any other time the
Company may request, all memoranda, notes, plans, records, reports, computer tapes, printouts and
software and other documents and data (and copies thereof) relating to the Confidential
Information, Work Product (as defined below) or the business of the Company or any of its
Affiliates which he may then possess or have under his control. The Employee acknowledges and
agrees that all inventions, innovations, improvements, developments, methods, designs, analyses,
drawings, reports and all similar or related information (whether or not patentable) which relate
to the Company’s or any of its Affiliate’s actual or anticipated business research and development
or existing or future products or services and which are conceived, developed or made by the
Employee while employed by the Company and its Affiliates (“Work Product”) belong to the Company or
such Affiliate, as the case may be.

     9. Common Law of Torts and Trade Secrets. The parties agree that nothing in this
Agreement shall be construed to limit or negate the common law of torts or trade secrets where it
provides the Company and its Affiliates with broader protection than that provided herein.

     10. Section 409A. Notwithstanding any provision to the contrary in the Agreement, in
order to be eligible to receive any termination benefits under this Agreement that are deemed
deferred compensation subject to Section 409A of the Code, the Employee’s termination of employment
must constitute a “separation from service” within the meaning of Treas. Reg. Section 1.409A-1(h)
(a “Separation from Service”). If the Employee is deemed at the time of his termination of
employment with the Company to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i)
of the Code, then to the extent delayed commencement of any portion of the termination benefits to
which the Employee is entitled under this Agreement is required in order to avoid a prohibited
distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of the Employee’s termination
benefits shall not be provided to the Employee prior to the earlier of (i) the expiration of the
six-month period measured from the date of the Employee’s Separation from Service with the Company
or (ii) the date of the Employee’s death. Upon the earlier of such dates, all payments deferred
pursuant to this Section 10 shall be paid in a lump sum to the Employee, and any remaining payments
due under the Agreement shall be paid as otherwise provided herein. The determination of whether
the Employee is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of
the time of his separation from service shall made by the Company in accordance with the terms of
Section 409A of the Code and applicable guidance thereunder (including without limitation Treas.
Reg. Section 1.409A-1(i) and any successor provision thereto). Notwithstanding the foregoing or
any other provisions of this Agreement, the Company and the Employee agree that, for purposes of
the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment
of compensation under this Agreement shall be treated as a right to receive

12

 

a series separate and distinct payments of compensation for purposes of applying the Section 409A of
the Code.

     11. Definitions.

     (a) “Affiliate” means, with respect to any Person, any other Person controlling, controlled by
or under common control with such Person and any partner of a Person which is a partnership.

     (b) “Cause” shall be deemed to exist if the Employee shall have (i) violated the terms of
Section 7 or Section 8 of this Agreement in any material respect; (ii) committed a felony or a
crime involving moral turpitude; (iii) engaged in willful misconduct which is shown to have
material adverse effect on the Company or any of its Affiliates; (iv) engaged in fraud or
dishonesty with respect to the Company or any of its Affiliates or made a material
misrepresentation to the stockholders or directors of the Company; or (v) committed acts of gross
negligence in the performance of his duties which are repeated and willful and are shown to have a
material adverse effect on the Company or any of its Affiliates.

     (c) “Code” means the Internal Revenue Code of 1986, as amended or corresponding provisions of
subsequent superseding federal tax laws, as amended.

     (d) “Company Change of Control” means:

     (i) the acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 50% or more of either (a) the then
outstanding shares of common stock of the Company (the “Outstanding Common Stock”)
or (b) the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the “Outstanding
Voting Securities”); provided, however, that the following acquisitions shall not
constitute a Change of Control: (a) any acquisition directly from the Company, (b)
any acquisition by the Company, (c) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation controlled
by the Company or (d) any acquisition by any corporation pursuant to a transaction
which complies with clauses (a) and (b) of subsection (ii) of this definition; or

     (ii) the consummation of a reorganization, merger or consolidation (a “Business
Combination”) of the Company, in each case, unless, following such Business
Combination, (a) all or substantially all of the individuals and entities

13

 

who were the beneficial owners, respectively, of the Outstanding Common Stock
and Outstanding Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 60% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of such
transaction owns the Company through one or more Subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business Combination
of the Outstanding Common Stock and Outstanding Voting Securities, as the case may
be and (b) no Person (excluding any employee benefit plan (or related trust) of the
Company or such corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 50% or more of, respectively, the then outstanding
 shares of common stock of the corporation resulting from such Business Combination
or the combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the Business
Combination; or

     (iii) the consummation of (a) a complete liquidation or dissolution of the
Company or (b) the sale or other disposition of all or substantially all of the
assets of the Company, other than to a corporation, with respect to which following
such sale or other disposition, [1] more than 60% of, respectively, the then
outstanding shares of common stock of such corporation and the combined voting power
of the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Common Stock and Outstanding
Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such sale
or other disposition, of the Outstanding Common Stock and Outstanding Voting
Securities, as the case may be and [2] less than 50% of, respectively, the then
outstanding shares of common stock of such corporation and the combined voting power
of the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by any Person (excluding any employee benefit plan (or related trust) of
the Company or such corporation), except to the extent that such Person owned 50% or
more of the Outstanding Common Stock or Outstanding Voting Securities prior to the
sale or disposition.

     (e) “Disability” shall mean a physical or mental sickness or any injury which renders the
Employee incapable of performing the services required of him as an employee of the Company and
which does or may be expected to continue for more than six months during any 12-month period. In
the event the Employee shall be able to perform his usual and customary duties on behalf of the
Company following a period of disability, and does so perform such duties or such other duties as
are prescribed by the Board for a period of three continuous

14

 

months, any subsequent period of disability shall be regarded as a new period of disability
for purposes of this Agreement. The Company and the Employee shall determine the existence of a
Disability and the date upon which it occurred. In the event of a dispute regarding whether or when
a Disability occurred, the matter shall be referred to a medical doctor selected by the Company and
the Employee. In the event of their failure to agree upon such a medical doctor, the Company and
the Employee shall each select a medical doctor who together shall select a third medical doctor
who shall make the determination. Such determination shall be conclusive and binding upon the
parties hereto.

     (f) “Good Reason” shall mean (i) the material diminution of the Employee’s duties set forth in
Section 3(a) above or (ii) the relocation of the offices at which the Employee is principally
employed to a location which is more than 50 miles from the offices at which the Employee is
principally employed as of the date hereof; provided, that travel necessary for the performance of
the Employee’s duties set forth in Section 3(a) above shall not determine the location where the
Employee is “principally employed.” The Employee agrees that any change in the Employee’s duties
as set forth in Section 3(a) above as compared to the Employee’s duties on or prior to the
Commencement Date shall not constitute Good Reason.

     (g) “Person” means any individual, partnership, corporation, limited liability company,
association, joint stock company, trust, joint venture, unincorporated organization and any
governmental entity or any department, agency or political subdivision thereof.

     (h) “Purchaser Change of Control” means:

     (i) the acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 50% or more of either (a) the then
outstanding shares of common stock of Purchaser (the “Outstanding Common Stock”) or
(b) the combined voting power of the then outstanding voting securities of Purchaser
entitled to vote generally in the election of directors (the “Outstanding Voting
Securities”); provided, however, that the following acquisitions shall not
constitute a Change of Control: (a) any acquisition directly from Purchaser, (b)
any acquisition by Purchaser, (c) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by Purchaser or any corporation controlled by
Purchaser or (d) any acquisition by any corporation pursuant to a transaction which
complies with clauses (a), (b) and (c) of subsection (iii) of this definition; or

     (ii) individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board” ) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by Purchaser’s

15

 

stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or

     (iii) the consummation of a reorganization, merger or consolidation (a
“Business Combination”) of Purchaser, in each case, unless, following such Business
Combination, (a) all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Common Stock and Outstanding
Voting Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 60% of, respectively, the then outstanding shares
of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may
be, of the corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns Purchaser
through one or more Subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination of the Outstanding Common
Stock and Outstanding Voting Securities, as the case may be, (b) no Person
(excluding any employee benefit plan (or related trust) of Purchaser or such
corporation resulting from such Business Combination) beneficially owns, directly or
indirectly, 50% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the combined
voting power of the then outstanding voting securities of such corporation except to
the extent that such ownership existed prior to the Business Combination and (c) at
least a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the Incumbent Board at the
time of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

     (iv) the consummation of (a) a complete liquidation or dissolution of Purchaser
or (b) the sale or other disposition of all or substantially all of the assets of
Purchaser, other than to a corporation, with respect to which following such sale or
other disposition, [1] more than 60% of, respectively, the then outstanding shares
of common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in the
election of directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Common Stock and Outstanding Voting Securities
immediately prior to such sale or other disposition in substantially the same
proportion as their ownership, immediately prior to such sale or other disposition,
of the Outstanding Common Stock and Outstanding

16

 

Voting Securities, as the case may be, [2] less than 50% of, respectively, the
then outstanding shares of common stock of such corporation and the combined voting
power of the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by any Person (excluding any employee benefit plan (or related trust) of
Purchaser or such corporation), except to the extent that such Person owned 50% or
more of the Outstanding Common Stock or Outstanding Voting Securities prior to the
sale or disposition, and [3] at least a majority of the members of the board of
directors of such corporation were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for
such sale or other disposition of assets of Purchaser or were elected, appointed or
nominated by the Board.

     (i) “Senior Management” at any time means the senior executive officers of the Company which
will include, without limitation, the Chief Executive Officer, President, Chief Operating Officer,
Managing Director (China), Chief Financial Officer, Chief Marketing Officer and such other officers
of the Company as the Board shall determine from time to time.

     12. Release of Claims. The receipt of any payments and benefits subsequent to the
termination of the employment or resignation of the Employee pursuant to this Agreement (other
than those payable on account of Employee’s death) shall be subject to the Employee executing a
release of claims (the “Release”) in a form reasonably acceptable to the Company within twenty-one
(21) days (or forty-five days (45) for a group termination) following such termination or
resignation and not subsequently revoking such Release.

     13. Specific Performance. The Employee acknowledges and agrees that irreparable
injury to the Company may result in the event the Employee breaches any covenant or agreement
contained in Sections 7 and 8 and that the remedy at law for the breach of any such covenant will
be inadequate. Therefore, if the Employee engages in any act in violation of the provisions of
Sections 7 and 8, the Employee agrees that the Company shall be entitled, in addition to such other
remedies and damages as may be available to it by law or under this Agreement, to injunctive relief
to enforce the provisions of Sections 7 and 8.

     14. Waiver. The failure of either party to insist in any one or more instances, upon
performance of the terms or conditions of this Agreement shall not be construed as a waiver or a
relinquishment of any right granted hereunder or of the future performance of any such term,
covenant or condition.

     15. Notices. Any notice to be given hereunder shall be deemed sufficient if addressed
in writing and delivered by registered or certified mail or delivered personally, in the case of
the Company, to its principal business office, and in the case of the Employee, to his address
appearing on the records of the Company, or to such other address as he may designate in writing to
the Company.

17

 

     16. Severability. In the event that any provision shall be held to be invalid or
unenforceable for any reason whatsoever, it is agreed such invalidity or unenforceability shall not
affect any other provision of this Agreement and the remaining covenants, restrictions and
provisions hereof shall remain in full force and effect and any court of competent jurisdiction may
so modify the objectionable provision as to make it valid, reasonable and enforceable.
Furthermore, the parties specifically acknowledge the above covenant not to compete and covenant
not to disclose confidential information are separate and independent agreements.

     17. Complete Agreement. Except as otherwise expressly set forth herein, this document
embodies the complete agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related to the subject
matter hereof in any way. Without limiting the generality of the foregoing, this Agreement
supersedes the Prior Agreement. Upon consummation of the Offer, the Prior Agreement is hereby
terminated and shall cease to be of any further force or effect.

     18. Amendment. This Agreement may only be amended by an agreement in writing signed
by each of the parties hereto.

     19. Governing Law. This Agreement shall be governed by and construed exclusively in
accordance with the laws of the State of Delaware, regardless of choice of law requirements.

     20. Benefit. This Agreement shall be binding upon and inure to the benefit of and
shall be enforceable by and against the Company, its successors and assigns and the Employee, his
heirs, beneficiaries and legal representatives. It is agreed that the rights and obligations of
the Employee may not be delegated or assigned.

[Remainder of page intentionally left blank. Signature page to follow.]

18

 

     IN WITNESS WHEREOF, the parties have executed or caused this Employment Agreement to be
executed as of the date first above written.

	 	 	 	 	 
	 	RC2 Corporation

 	 
	 	By:  	/s/  Peter J. Henseler
 	 
	 	 	Name:  	Peter J. Henseler 	 
	 	 	Title:  	President 	 

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	By:  	/s/ Curtis W. Stoelting
 	 
	 	 	Name:  	Curtis W. Stoelting 	 

     THE UNDERSIGNED has executed or caused this Employment Agreement to be executed as
of the date first above written, solely for purposes of Sections 3(b), 4 and 6 hereof.

	 	 	 	 	 
	 	Tomy Company, Ltd.

 	 
	 	By:  	/s/ Kantaro Tomiyama
 	 
	 	 	Name:  	Kantaro Tomiyama 	 
	 	 	Title:  	President & C.E.O 	 
	 

 

 

SCHEDULE A

	 	1.	 	Award Type; Vesting and Exercisability Schedule. The initial equity award set
forth in Section 4(c) of this Agreement shall be in the form of provision of stock
acquisition rights (shinkabu yoyakuken) covering shares of Purchaser’s equity (“Taurus
Option(s)”) and shall vest as follows: 50% on the 2nd anniversary of the date of
grant and 50% on the 4th anniversary of the date of grant.
	 
	 	2.	 	Term of Option. The Taurus Option(s) shall expire on the 6th
anniversary of the date of grant.
	 
	 	3.	 	Change of Control. The Taurus Option(s) held by the Employee shall immediately
vest upon a Purchaser Change of Control.
	 
	 	4.	 	Exercise of Taurus Option(s) Following Termination of Employment. If the
Employee’s employment is terminated for any reason other than a termination by the Company
for Cause or resignation by the Employee without Good Reason, the Employee (or his
designated beneficiary or his estate in the event of the termination of the Employee’s
employment due to death) may exercise any Taurus Option(s) vested as of the Termination
Date at any time prior to the original expiration date of such Taurus Option(s) or within
twelve months after the Termination Date, whichever period is shorter. If the Employee’s
employment is terminated for Cause, any Taurus Options, to the extent not exercised before
such termination, shall terminate on the Termination Date.
	 
	 	5.	 	Other Terms. Such Taurus Option(s) shall be subject to all other terms and
conditions as may be approved by the Board and the shareholders of Purchaser that are not
inconsistent with this Schedule A.

 

 

SCHEDULE B

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total Value of	 	 	 	 	 	 	 	 	 	 
	 	 	Company	 	 	 	 	 	 	 	 	 	 
	 	 	Equity Awards	 	 	 	 	 	 	 	 	 	Vesting Schedule
	 	 	(unvested as of	 	 	 	 	 	 	 	 	 	Eve of 1st	 	Eve of 2nd	 	Eve of 3rd
	 	 	immediately	 	 	 	 	 	 	 	 	 	Anniversary of	 	Anniversary of	 	Anniversary of
	 	 	prior to the	 	 	 	 	 	 	 	 	 	Commencement	 	Commencement	 	Commencement
	 	 	consummation	 	Total Roll	 	Cash at	 	Date	 	Date	 	Date
	 	 	of the Offer)	 	Over Bonus	 	Closing	 	20%	 	35%	 	45%
	Stoelting
	 	$	4,513,647	 	 	$	3,500,000	 	 	$	1,013,647	 	 	$	700,000	 	 	$	1,225,000	 	 	$	1,575,000

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