<PAGE>
                                                                   EXHIBIT 10.21


                              EMPLOYMENT AGREEMENT


                  THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and
entered into as of November 21, 2001 to be effective as of November 1, 2001 by
and between Home Interiors & Gifts, Inc., a Texas corporation (together with its
successors and assigns permitted hereunder, the "Company"), and Nora Serrano
(the "Executive").

                  WHEREAS, the Executive is currently employed by the Company as
the Vice President of Sales Training and Development;

                  WHEREAS, the Company desires to continue to employ the
Executive in an executive capacity with the Company, and the Executive desires
to continue to be employed by the Company in said capacity; and

                  WHEREAS, the parties hereto deem it desirable and in the best
interests of the Company and its stockholders for the Company to continue to
employ the Executive on the terms and conditions set forth herein.

                  NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

         1. EMPLOYMENT PERIOD. Subject to Section 3 hereof, the Company hereby
agrees to employ the Executive, and the Executive hereby agrees to be employed
by the Company, in accordance with the terms and provisions of this Agreement,
for the period commencing as of the date of this Agreement and continuing until
November 1, 2002; provided, however, that such Employment Period shall be
extended for successive terms of one (1) year each unless either party advises
the other, at least one hundred twenty (120) days prior to the end of the
initial term or annual extension, as the case may be, that it will not agree to
extend this Agreement (the "Employment Period").

         2. TERMS OF EMPLOYMENT.

                  (a) Position and Duties.

                           (i) During the Employment Period, the Executive shall
perform the functions of Senior Vice President of Sales Training and Development
of the Company and shall report directly to the Chief Executive Officer of the
Company. The Executive shall have such powers and duties as may from time to
time be prescribed by the Chief Executive Officer, so long as such powers and
duties are reasonable and customary for the Senior Vice President of Sales
Training and Development of an enterprise comparable to the Company.

                           (ii) During the Employment Period and excluding any
periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote such time as the Chief Executive Officer shall deem
necessary, up to and including substantially all of her business time, to the
business and affairs of the Company and, to the extent necessary to discharge
the responsibilities assigned to the Executive hereunder, to use the Executive's
reasonable best efforts to perform faithfully, effectively and efficiently such
responsibilities. During the term of Executive's employment it shall not be a
violation of this Agreement for the




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Executive to (1) serve on corporate, civic or charitable boards or committees,
(2) deliver lectures or fulfill speaking engagements, and (3) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company in
accordance with this Agreement.

                  (b) Compensation.

                           (i) Base Salary. Beginning on August 1, 2001, during
the Employment Period, the Executive shall receive, at such intervals and in
accordance with such Company policies as may be in effect from time to time, an
annual salary (pro rata for any partial year) equal to $250,000, payable in
equal installments no less often than monthly (the "Annual Base Salary"), which
Annual Base Salary shall be subject to appropriate increase, as determined by
the sole discretion of the Board of Directors of the Company.

                           (ii) Annual Bonus. The Executive shall be eligible to
participate in the Company's Key Employee Bonus Plan applicable to executives of
the Company (the "Annual Bonus") for each fiscal year of the Company commencing
with the fiscal year ending December 31, 2001 as approved by the Board of
Directors of the Company in good faith, and such other criteria as may be
recommended by management and established by the Board of Directors of the
Company from time to time. Each Annual Bonus (or portion thereof) shall be paid
in cash promptly following delivery to the Board of Directors of the Company of
audited financial statements of the Company for the fiscal year for which the
Annual Bonus (or pro rated portion) is earned or awarded, unless electively
deferred by the Executive pursuant to any deferral programs or arrangements that
the Company may make available to the Executive but on the same basis as for
other members of the Senior Executive Management Team;

                           (iii) Stock Options. The Company shall grant to the
Executive options to purchase 5,000 shares of Common Stock of the Company at an
exercise price of $18.05 per share. The options will be evidenced by a separate
Option Agreement and will be granted pursuant to, and subject to the terms and
conditions of the Company's 1998 Stock Option Plan for Key Employees. The
options will vest and become exercisable in the manner and at the times provided
in the Option Agreement. Vesting will be accelerated if there is a change in
control.

                           (iv) Incentive, Savings and Retirement Plans. During
the term of the Executive's employment, the Executive shall be entitled to
participate in all incentive, savings, and retirement plans, practices, policies
and programs applicable generally to other employees of the Company ("Investment
Plans") as determined by and at the discretion of the Board of Directors of the
Company.

                           (v) Welfare Benefit Plans. During the term of the
Executive's employment, the Executive and/or the Executive's family, as the case
may be, shall be eligible for participation in and shall receive all benefits
under welfare benefit plans, practices, policies and programs ("Welfare Plans")
provided by the Company (including, without limitation, medical, prescription,
dental, vision, disability, salary continuance, employee life, group life,
accidental death and travel accident insurance plans and programs) to the extent
applicable generally to other executives of the Company. In addition, during the
term of the Executive's




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employment, the Company shall (A) pay all medical, dental and vision insurance
costs for the Executive and the Executive's family, including all premiums and
co-payments and (B) increase the Executive and family members' annual maximum
dental covered expenses from $1,000 to $5,000.

                           (vi) Expenses. During the term of the Executive's
employment, the Executive shall be entitled to receive prompt reimbursement for
all reasonable employment expenses incurred by the Executive in accordance with
the policies, practices and procedures of the Company.

                           (vii) Vacation and Holidays. During the term of the
Executive's employment, the Executive shall be entitled to paid vacation of
three weeks per year and paid holidays in accordance with the plans, policies,
programs and practices of the Company for its employees which includes six (6)
national holidays and two additional vacation days at Christmas.

                           (viii) Vehicle Allowance. During the term of the
Executive's employment, the Company shall lease a vehicle for the Executive with
such monthly lease, fuel, maintenance and insurance costs as are reasonable and
customary for other similarly situated executives of the Company at the
Executive's level. Upon termination of the Executive's employment for any
reason, the Executive shall be entitled to purchase such vehicle at the
then-current trade-in value as determined by the National Auto Research Black
Book published by Hearst Holdings.

                           (ix) Physical Exam. During the term of the
Executive's employment, the Company shall reimburse the Executive for all costs
associated with Executive's physical exam at the Cooper Clinic or a similar
facility; provided, that the Executive shall only be reimbursed for the costs of
one such exam during each calendar year.

                           (x) Supplemental Insurance. The Company shall procure
supplemental life, accidental death and dismemberment insurance in the amount of
$1,000,000 for the Executive; provided, however, that the Company shall only pay
annual premiums on such policies for so long as the Executive is employed by the
Company.

                           (xi) Other Benefits. During the term of the
Executive's employment, the Executive shall be entitled to other perquisites and
benefits applicable to other members of the Senior Executive Management Team in
effect from time to time and in accordance with the policies, practices and
procedures of the Company.

         3. TERMINATION OF EMPLOYMENT.

                  (a) Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), the Company shall
give to the Executive no less than thirty (30) days written notice in accordance
with Section 11 (b) hereof of its intention to terminate the Executive's
employment based upon Disability, and in the event Executive shall within such
30 day period become able to perform her duties and obligations under this
Agreement, then Executive's




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employment shall not be terminated. In such event, the Executive's employment
with the Company shall terminate effective on the receipt of such notice by the
Executive (the "Disability Effective Date"). For purposes of this Agreement,
"Disability" shall mean the Executive's inability to perform her duties and
obligations hereunder for a period of 120 consecutive days or any 120 days in
any twelve month period due to mental or physical incapacity as determined by a
physician selected by the Company or its insurers and acceptable to the
Executive or the Executive's legal representative (such agreement as to
acceptability not to be withheld unreasonably).

                  (b) Termination by the Company. The Company may terminate the
Executive's employment during the Employment Period either with or without
Cause. For purposes of this Agreement, "Cause" shall mean (i) a breach by the
Executive of the Executive's obligations under Section 2(a) (other than as a
result of physical or mental incapacity) which constitutes a continued material
nonperformance by the Executive of her obligations and duties thereunder, as
reasonably determined by the Board of Directors of the Company, (ii) commission
by the Executive of an act of fraud upon, or willful misconduct toward, the
Company, as reasonably determined by a majority of the disinterested members of
the Board of Directors of the Company (neither the Executive nor members of her
family being deemed disinterested for this purpose), (iii) a material breach by
the Executive of Section 6 or Section 9 hereof, (iv) the conviction of the
Executive of any felony unless the Board of Directors of the Company reasonably
determines that the Executive's conviction of such felony does not materially
affect the Executive's business reputation or significantly impair the
Executive's ability to carry out her duties under this Agreement (provided that
the Board of Directors shall have no obligation to make such determination), or
(v) the failure of the Executive to carry out, or comply with, in any material
respect any directive of the Chief Executive Officer consistent with the terms
of this Agreement, which is not remedied within 30 days after receipt of written
notice from the Company specifying such failure.

                  (c) Voluntary Termination by Executive. Notwithstanding
anything in this Agreement to the contrary, the Executive's employment may be
terminated during the Employment Period by the Executive for any reason or no
reason; provided that any termination by the Executive pursuant to Section 3(d)
on account of Good Reason shall not be treated as a voluntary termination under
this Section 3(c).

                  (d) Termination for Good Reason. The Executive may terminate
her employment at any time for Good Reason. For purposes of this Agreement,
"Good Reason" shall mean (i) any reduction or alteration, approved by the Board
of Directors without the Executive's written consent, in the Executive's title,
duties or responsibilities, the Executives' Base Salary and/or target annual
bonus opportunity other than under a circumstance that constitutes Cause and for
purposes of this Section 3(d) only, the Vehicle allowance and supplemental
insurance provided to the Executive under Sections 2(b)(viii) and (x),
respectively; provided, that any such reduction or alteration in the Executive's
title, duties or responsibilities without the Executive's consent during the
thirty-day cure period applicable to subparagraph (v) of Section 3(b) shall not
constitute Good Reason; provided, further, that any cure by the Executive during
such thirty-day period shall entitle the Executive to reinstatement of her
title, duties and responsibilities and (ii) a change, without the Executive's
written consent, of more than twenty-five (25) miles in the office or location
where the Executive is based.



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Notwithstanding the above, the occurrence of any of the events described above
will not constitute Good Reason unless the Company fails to cure any such event
within thirty (30) days after receipt from the Executive of the Notice of
Termination (as defined in Section 3(e)).

                  (e) Notice of Termination. Any termination by the Company (for
Cause or otherwise), or by the Executive, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 11 (b)
hereof.

                  (f) Date of Termination. "Date of Termination" means (i) the
date of receipt of the Notice of Termination or any later date specified therein
pursuant to Section 3(e) hereof, as the case may be, and (ii) if the Executive's
employment is terminated by reason of death or Disability, the date of death of
the Executive or the Disability Effective Date, as the case may be.

         4. OBLIGATIONS OF THE COMPANY UPON TERMINATION.

                  (a) Termination by the Company. If the Company terminates the
Executive other than for Cause, or in connection with death or disability as
covered by Section 4(b) below, or fails to renew this Agreement beyond the
initial term ending November 1, 2002 or any extension term, or if the Executive
terminates her employment for Good Reason, the Company shall pay to the
Executive (i) in a lump sum in cash within ten days after the Date of
Termination (1) the sum of the Executive's applicable Annual Base Salary through
the Date of Termination to the extent not theretofore paid ("Accrued
Obligations") and (2) any amount arising from the Executive's participation in,
or benefits under, any Investment Plans ("Accrued Investments"), which amounts
shall be payable in accordance with the terms and conditions of such Investment
Plans, (ii) severance pay equal to the Executive's Annual Base Salary, payable
in a lump-sum in cash within ten days after the Date of Termination, for twelve
(12) months from the date of termination of employment and (iii) any earned but
unpaid Annual Bonus in respect of any full fiscal year ended prior to the date
the Executive's employment is terminated, payable in a lump sum in cash at such
time as such Annual Bonus otherwise would be payable pursuant to the last
sentence of Section 2(b)(ii) ("Accrued Bonus").

                  (b) Death or Disability. If the Executive's employment is
terminated by reason of the Executive's Disability during the Employment Period,
the Company shall pay to her legal representatives (i) in a lump sum in cash
within ten days after the Date of Termination the aggregate of the Accrued
Obligations; (ii) the Accrued Investments, which shall be payable in accordance
with the terms and conditions of the Investment Plans; (iii) any Accrued Bonus,
which shall be payable at such time as such Annual Bonus otherwise would be
payable pursuant to the last sentence of Section 2(b)(ii); and (iv) an amount
equal to the Executive's Annual Base Salary, payable in accordance with the
Company's regular pay schedule, for twelve (12) months from the date of the
Executive's Disability. If the Executive's employment is terminated by reason of
the Executive's death during the Employment Period, the Company shall pay to her
legal representatives (i) in a lump sum in cash within ten days after the Date
of Termination the aggregate of the Accrued Obligations; (ii) the Accrued
Investments, which shall be payable in accordance with the terms and conditions
of the Investment Plans; and (iii) any Accrued Bonus, which shall be payable at
such time as such Annual Bonus otherwise would be payable pursuant to the last
sentence of Section 2(b)(ii). The Company shall have no further payment
obligations




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to the Executive or her legal representatives under this Agreement as a result
of the Executive's death or Disability.

                  (c) Cause. If the Executive's employment shall be terminated
by the Company for Cause, or by the Executive other than for Good Reason, during
the Employment Period, the Company shall have no further payment obligations to
the Executive other than for payment of Accrued Obligations, Accrued Investments
(which, shall be payable in accordance with the terms and conditions of the
Investment Plans), and Accrued Bonus (which shall be payable at such time as
such Annual Bonus otherwise would be payable pursuant to the last sentence of
Section 2(b)(ii)).

         5. FULL SETTLEMENT, MITIGATION. In no event shall the Executive be
obligated to seek other employment or take any other action by way of mitigation
of the, amounts payable to the Executive under any of the provisions of this
Agreement and such amounts shall not be reduced whether or not the Executive
obtains other employment. Neither the Executive nor the Company shall be liable
to the other party for any damages in addition to the amounts payable under
Section 4 hereof arising out of the termination of the Executive's employment
prior to the end of the Employment Period; provided, however, that the Company
shall be entitled to seek damages for any breach of Sections 6, 7, or 9 hereof
or criminal misconduct, and further provided the Executive shall be entitled to
seek damages for any violation by the Company of applicable statutory employment
law or for slander or libel.

         6. CONFIDENTIAL INFORMATION.

                  (a) The Executive acknowledges that the Company and its
affiliates have trade, business, and financial secrets and other confidential
and proprietary information including but not limited to sales and marketing and
product information and strategy, identity of suppliers, displayers
(collectively, the "Confidential Information"). As defined herein, Confidential
Information shall not include (i) information that is generally known to other
persons or entities who can obtain economic value from its disclosure or use and
(ii) information required to be disclosed by the Executive pursuant to a
subpoena or court order, or pursuant to a requirement of a governmental agency
or law of the United States of America or a state thereof or any governmental or
political subdivision thereof; provided, however, that the Executive shall take
all reasonable steps to prohibit disclosure pursuant to subsection (ii) above at
the sole cost and expense of the Company.

                  (b) During and following the Employment Period, the Executive
agrees (i) to hold such Confidential Information in confidence and (ii) not to
release such information to any person, including, without limitation the
Executive's spouse (other than Company employees and other persons to whom the
Company has authorized the Executive to disclose such information and then only
to the extent that such Company employees and other persons authorized by the
Company have a need for such knowledge).

                  (c) The Executive further agrees not to use any Confidential
Information for the benefit of any person or entity other than the Company.



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         7. SURRENDER OF MATERIALS UPON TERMINATION. Upon any termination of the
Executive's employment, the Executive shall immediately return to the Company
all copies, in whatever form, of any and all Confidential Information and other
properties of the Company and its affiliates which are in the Executive's
possession, custody or control.

         8. SUCCESSORS.

                  (a) This Agreement is personal to the Executive and without
the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

                  (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                  (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. The failure of any successor of Company to expressly assume to
perform this Agreement in writing shall, at the election of the Executive, be
deemed to be termination of this Agreement without cause, entitling the
Executive to payment of one year's severance. As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

         9. NON-COMPETITION AND NON-SOLICITATION.

                  (a) The term of Non-Competition and Non-Solicitation (herein
so called) shall be for a term beginning on the date hereof and continuing until
the first anniversary of the Date of Termination of this Agreement, by either
the Company or the Executive for any reason.

                  (b) During the term of Non-Competition and Non-Solicitation,
the Executive will not (other than for the benefit of the Company pursuant to
this Agreement) directly or indirectly, individually or as an officer, director,
employee, shareholder, consultant, contractor, partner, joint venturer, agent,
equity owner or in any capacity whatsoever, (i) engage in any business that
competes with the Company, either by selling similar products in the continental
United States and Mexico or by utilizing a direct sales or multi-level marketing
sales format to sell consumer products in the continental United States (a
"Competing Business"), (ii) hire, attempt to hire, or contact or solicit with
respect to hiring any employee or Independent Contractor Displayers of the
Company, or (iii) divert or take away any customers, including Independent
Contractors, or suppliers of the Company in the continental United States.
Notwithstanding the foregoing, the Company agrees that the Executive may own
less than five percent of the outstanding voting securities of any publicly
traded company that is a Competing Business so long as the Executive does not
otherwise participate in such competing business in any way prohibited by the
preceding clause. As used in this Section 9(b) (and in Section 6 hereof),
"Company" shall include the Company and any of its subsidiaries.



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                  (c) During the term of Non-Competition and Non-Solicitation,
the Executive will not use the Executive's access to, knowledge of, or
application of Confidential Information to perform any duty for any Competing
Business; it being understood and agreed to that this Section 9(c) shall be in
addition to and not be construed as a limitation upon the covenants in Section
9(b) hereof.

                  (d) The Executive acknowledges that the geographic boundaries,
scope of prohibited activities, and time duration of the preceding paragraphs
are reasonable in nature and are no broader than are necessary to maintain the
confidentiality and the goodwill of the Company's proprietary information, plans
and services and to protect the other legitimate business interests of the
Company.

         10. EFFECT OF AGREEMENT ON OTHER BENEFITS. The existence of this
Agreement shall not prohibit or restrict the Executive's entitlement to full
participation in the employee benefit and other plans or programs in which
employees of the Company are eligible to participate.

         11. MISCELLANEOUS.

                  (a) This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas without reference to principles
of conflict of laws. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect. Whenever the terms
"hereof", "hereby", "herein", or words of similar import are used in this
Agreement they shall be construed as referring to this Agreement in its entirety
rather than to a particular section or provision, unless the context
specifically indicates to the contrary. Any reference to a particular "Section"
or "paragraph" shall be construed as referring to the indicated section or
paragraph of this Agreement unless the context indicates to the contrary. The
use of the term "including" herein shall be construed as meaning "including
without limitation." This Agreement may not be amended or modified otherwise
than by a written agreement executed by the parties hereto or their respective
successors and legal representatives.

                  (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                  If to the Executive:   Nora Serrano
                                         5648 Dunlap Ct.
                                         Plano, Texas 75007

                  If to the Company:     Donald J. Carter, Jr., CEO
                                         Home Interiors & Gifts, Inc.
                                         1649 Frankford Road West
                                         Carrollton, Texas 75007

                                         With a copy to the Company's
                                         General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.



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                  (c) If any provision of this Agreement is held to be illegal,
invalid or unenforceable under present or future laws effective during the term
of this Agreement, such provision shall be fully severable; this Agreement shall
be construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a portion of this Agreement; and the remaining provisions of
this Agreement shall remain in full force and effect and shall not be affected
by the illegal, invalid or unenforceable provision or by its severance from this
Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable
provision there shall be added automatically as part of this Agreement a
provision as similar-in terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable.

                  (d) The Company may withhold from any amounts payable under
this Agreement such Federal, state or local taxes as shall be required to be
withheld pursuant to any applicable law or regulation. The Company may not
withhold any sums under any circumstances from any amounts payable under this
Agreement as Accrued Obligations, Accrued Investments or Accrued Bonuses to the
Executive beyond the date due.

                  (e) The Executive's or the Company's failure to insist upon
strict compliance with any provision of this Agreement or the failure to assert
any right the Executive or the Company may have hereunder shall not be deemed to
be a waiver of such provision or right or any other provision or right of this
Agreement.

                  (f) The Executive acknowledges that money damages would be
both incalculable and an insufficient remedy for a breach of Section 6 or 9 by
the Executive and that any such breach would cause the Company irreparable harm.
Accordingly, the Company, in addition to any other remedies at law or in equity
it may have, shall be entitled, without the requirement of posting of bond or
other security, to equitable relief, including injunctive relief and specific
performance, in connection with a breach of Section 6 or 9 by the Executive.

                  (g) The provisions of this Agreement constitute the complete
understanding and agreement between the parties with respect to the subject
matter hereof.

                  (h) This Agreement may be executed in two or more
counterparts.

                  (i) Sections 6 and 9 of this Agreement shall survive the
termination of this Agreement.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]



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                  IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from the Board of Directors
of the Company, the Company has caused this Agreement to be executed in its name
on its behalf, all as of the day and year first above written.

                                           NORA SERRANO


                                           /s/ NORA SERRANO
                                           -------------------------------------



                                           HOME INTERIORS & GIFTS, INC.



                                           By: /s/ DONALD J. CARTER, JR.
                                              ----------------------------------
                                                    Donald J. Carter, Jr.
                                                    Chief Executive Officer


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