THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

RC2 Corporation (RCRC)

3/31/2006 Proxy Information

Mr. Dods served as Chief Executive Officer of RC2 Corporation from July 1998 to January 2003.

Mr. Chung served as President of RC2 (H.K.) Limited from April 1996 to July 2003. Mr. Chung formed the predecessors to RC2 Limited in 1989 to handle the overseas operating activities of Racing Champions, Inc.

Mr. Meyer served as President of RC2 Corporation from July 1998 to October 2000.

James Chung, brother of Peter K.K. Chung, a director of the Corporation, owns 70% of one of the CorporationÕs suppliers. For the year ended December 31, 2005, the Corporation purchased $13.5 million of product from this supplier. James Chung also has a 25% interest in another of the CorporationÕs suppliers. For the year ended December 31, 2005, the Corporation purchased $5.1 million of product from this supplier. The Corporation expects to continue to make purchases from both of these suppliers during fiscal 2006. The Corporation believes that the terms for the purchase of products from these suppliers are no less favorable to the Corporation then could have been obtained from an unaffiliated party.

Paul E. Purcell, a director of the Corporation, is the President and Chief Executive Officer of Robert W. Baird & Co. Incorporated (ŌBairdĶ), an investment banking and brokerage firm. The Corporation retained Baird during the year ended December 31, 2005 to provide investment banking and merger and acquisition consulting services. The Corporation has continued to retain Baird during fiscal 2006. The Corporation believes that the terms of BairdÕs engagement with the Corporation were on terms no less favorable to the Corporation then could have been obtained from an unaffiliated party.

Patrick A. Meyer and Eric L. Meyer, each of whom is a son of Boyd L. Meyer, a director of the Corporation, were employed as vice presidents of a subsidiary of the Corporation throughout 2005. Patrick A. Meyer earned aggregate salary and bonus of $212,530 for his services during the year. Eric L. Meyer earned aggregate salary and bonus of $271,222 for his services during the year. Eric L. Meyer made personal use of the CorporationÕs airplane which resulted in incremental operating costs of $8,700 to the Corporation for 2005. Eric L. MeyerÕs personal use of the CorporationÕs airplane is subject to income tax in accordance with applicable regulations.