Document:

Execution
      Copy

    Exhibit
      4.5c

     

    Dated
      the 30th
      day
      of July 2004

     

    KORD
      HOLDINGS INC.

     

    and

     

    LI
      SAN TUNG

     

      
        

      

    

     

    SERVICE
      AGREEMENT

     

    
      

    

     

    WOO,
      KWAN, LEE & LO

    27th
      Floor, Jardine House

    1
      Connaught Place

    Central

    Hong
      Kong

    

    BL/TL/04

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      THIS
        AGREEMENT is
        made
        the 30th day of July 2004

       

      BETWEEN:

       

      
        	
                (1)

              	
                KORD
                  HOLDINGS INC., a company incorporated in the British Virgin Islands
                  whose
                  registered office is at Sea Meadow House, Blackburne Highway, Road
                  Town,
                  Tortola, British Virgin Islands with its principal place of business
                  at
                  Unit A, 12/F., Century Industrial Building, Shek Pai Tau Road,
                  Lot 192,
                  Tuen Mun, New Territories, Hong Kong (the “Company”);
                  and

              

      

       

      
        	
                (2)

              	
                LI
                  SAN TUNG (____) holder of Hong Kong Identity Card No. D087428(l), of
                  Unit A, 12/F, Century Industrial Building, Shek Pai Tau Road, Lot
                  192,
                  Tuen Mun, New Territories, Hong Kong (the
                  “Executive”).

              

      

       

      BY
        WHICH IT IS AGREED
        as
        follows:

       

      
        	
                1.

              	
                Purpose
                  and Interpretation

              

      

       

      
        	
                1.1

              	
                This
                  Agreement sets out the terms and conditions upon and subject to
                  which the
                  Company agrees to employ the Executive and the Executive agrees
                  to serve
                  the Company as Managing Director (or in such other capacity with
                  such job
                  title as the Company may reasonably
                  require).

              

      

       

      
        	
                1.2

              	
                In
                  this Agreement, unless the context otherwise requires, the following
                  words
                  and expressions bear the following
                  meanings:

              

      

       

      
        
          	 	
                  “Agreement”

                	 	
                  means
                    this agreement as may from time to time be amended, modified
                    or
                    supplemented pursuant to Clause 20;

                
	 	 	 	 
	 	
                  “Appointment”

                	 	
                  the
                    appointment of the Executive as Managing Director (or in such
                    other
                    capacity with such job title as the Company may reasonably require)
                    of the
                    Company pursuant to Clause 2;

                
	 	 	 	 
	 	
                  “Board”

                	 	
                  the
                    board of directors of the Company;

                
	 	 	 	 
	 	
                  “Business”

                	 	
                  in
                    respect of the Group means the business of the creation, design
                    and/or
                    manufacturing of gifts, party items, plastic products, printing,
                    rubber
                    products and such other business of the Group as may be carried
                    on from
                    time to time;

                
	 	 	 	 
	 	
                  “Companies

                	 	
                  the
                    Companies Ordinance (Chapter 32 of the Laws of Hong
                    Kong);

                
	 	 	 	 
	 	
                  “Group”

                	 	
                  the
                    Company, its subsidiaries and associated companies from time
                    to
                    time;

                
	 	 	 	 
	 	
                  “Hong
                    Kong”

                	 	
                  the
                    Hong Kong Special Administrative Region of the PRC;

                
	 	 	 	 
	 	
                  “month”

                	 	
                  means
                    calendar month;

                

        

         

        
          
             

          

          
            1

            
              

            

          

          
             

          

        

         

        
          	 	
                  “PRC”

                	 	
                  the
                    People’s Republic of China;

                
	 	 	 	 
	 	
                  “Salary”

                	 	
                  means
                    the salary payable to the Executive pursuant to
                    Clause 4;

                
	 	 	 	 
	 	
                  “subsidiary”

                	 	
                  shall
                    have the meaning ascribed thereto in Section 2 of the Companies
                    Ordinance;

                
	 	 	 	 
	 	
                  “working
                    day”

                	 	
                  means
                    Monday to Saturday, a Saturday being reckoned as a half working
                    day, in
                    each case except where such day falls on a statutory holiday,
                    and

                
	 	 	 	 
	 	
                  “HK$”

                	 	
                  Hong
                    Kong dollars, the lawful currency of Hong
                    Kong.

                

        

      

       

      
        	
                1.3

              	
                Words
                  and phrases defined in Section 2 of the Companies Ordinance shall
                  where the context so admits, be construed as having the same meaning
                  in
                  this Agreement.

              

      

       

      
        	
                1.4

              	
                References
                  to Clauses are references to the clauses of this
                  Agreement.

              

      

       

      
        	
                1.5

              	
                Words
                  importing gender or the neuter includes both genders and the
                  neuter.

              

      

       

      
        	
                1.6

              	
                Words
                  importing persons include individuals, firms, companies, corporations
                  and
                  unincorporated bodies of persons.

              

      

       

      
        	
                1.7

              	
                Words
                  importing the singular include the plural and vice
                  versa.

              

      

       

      
        	
                1.8

              	
                The
                  headings in this Agreement are for convenience only and do not
                  affect the
                  interpretation hereof.

              

      

       

      
        	
                1.9

              	
                References
                  in this Agreement to any Ordinance, regulation or other statutory
                  provision include references to such Ordinance, regulation or statutory
                  provision as may be modified, consolidated or re-enacted from time
                  to
                  time.

              

      

       

      
        	
                1.10

              	
                The
                  rule known as ejusdem genes shall not apply, so that words and
                  phrases in
                  general terms following or followed by specific examples shall
                  be
                  construed in the widest possible sense and shall not be construed
                  as
                  limited or related to the examples
                  given.

              

      

       

      
        	
                2.

              	
                Appointment
                  and Term

              

      

       

      The
        Company shall employ the Executive and the Executive shall serve the Company
        as
        Managing Director or in such other capacity with such job title as the Company
        may reasonably require. Subject to Clause 11, the Appointment shall be for
        an initial term of five (5) years commencing from the date hereof and shall
        continue thereafter unless and until terminated by either the Company or
        the
        Executive giving to the other such period of notice in writing as may be
        mutually agreed between the parties hereto to determine the same, such notice
        not to be given at any time on or before 30 July 2006. For the avoidance
        of
        doubt, the Company and the Executive agree and acknowledge that the Executive’s
        employment with the Company or members of the Group have commenced since
        the
        Executive first joined the Company or relevant members of the Group and that
        the
        entering into this Agreement will not affect the continuity of employment
        between the Executive and the Company or relevant members of the
        Group.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      
        	
                3.

              	
                Duties

              

      

       

      
        	
                3.1

              	
                The
                  Executive shall during his Appointment under this
                  Agreement:

              

      

       

      
        	 	
                (a)

              	
                perform
                  the duties and exercise the powers and functions which from time
                  to time
                  may reasonably be assigned to or vested in him by the Board as
                  are
                  necessary for the proper and efficient administration, supervision
                  and
                  management of the Business and for the proper discharge of the
                  duties of
                  his office as the Managing Director (or such other capacity with
                  job title
                  as the Company may reasonably require) of the
                  Company;

              

      

       

      
        	 	
                (b)

              	
                in
                  the discharge of such duties as shall be reasonably required by
                  the Board
                  and in the exercise of such powers observe and comply with the
                  constitutional documents of the Company and all reasonable and
                  lawful
                  resolutions, regulations and directions from time to time made
                  or given by
                  the Board in connection with the conduct of the Business and promptly
                  provide such explanations, information and assistance as to his
                  activities
                  or the Business as the Board may reasonably
                  require;

              

      

       

      
        	 	
                (c)

              	
                during
                  working hours devote the whole of his time, attention and ability
                  to his
                  duties hereunder and shall faithfully and loyally serve the Group
                  to the
                  best of his ability and use his utmost endeavours to promote its
                  interests
                  in all respects; and

              

      

       

      
        	 	
                (d)

              	
                not
                  engage in any other business, profession or occupation whatsoever
                  without
                  the prior written consent of the
                  Board.

              

      

       

      
        	
                3.2

              	
                Notwithstanding
                  the provisions of Clause 3.1, the Company shall have the right to
                  require the Executive at any time to carry out such special projects
                  or
                  functions commensurate with his abilities as the Company shall
                  in its
                  absolute discretion determine.

              

      

       

      
        	
                3.3

              	
                The
                  Executive may be required to work at the principal place of business
                  of
                  the Company in Hong Kong or such other location in Hong Kong or
                  elsewhere
                  as the Board may from time to time reasonably direct for the proper
                  performance and exercise of his duties and powers under this Agreement
                  and
                  the Executive shall also be required to travel and work outside
                  Hong Kong
                  as directed by the Board from time to
                  time.

              

      

       

      
        	
                4.

              	
                Remuneration

              

      

       

      
        	
                4.1

              	
                During
                  the continuance of the Appointment, the Company shall pay to the
                  Executive
                  a Salary of HK$180,000 per month (which shall be deemed to accrue
                  on a
                  daily basis) payable in arrears on or before the last working day
                  of each
                  calendar month provided that if the Appointment is terminated prior
                  to the
                  end of a calendar month, the Executive shall only be entitled to
                  a
                  proportionate part of such Salary in respect of the period of service
                  during the relevant month up to the date of termination. The Board
                  may
                  from time to time in its absolute discretion review the Salary
                  and the
                  Salary may be adjusted with effect from any such review. For the
                  avoidance
                  of doubt, such Salary shall be inclusive of any other sums which
                  the
                  Executive may receive as directors fees or other remuneration to
                  which he
                  may be or become entitled as a director of the Company or of any
                  of its
                  subsidiaries.

              

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      
        	
                4.2

              	
                At
                  the absolute discretion of the Board, the Executive may be eligible
                  for a
                  performance-based annual bonus as may be approved by the Board,
                  subject to
                  such terms and conditions as the Board may
                  determine.

              

      

       

      
        	
                4.3

              	
                The
                  Executive shall solely account to the appropriate authorities for
                  all
                  taxes payable in respect of the Salary and other allowances and
                  benefit(s)
                  provided to him or to which he is otherwise entitled under this
                  Agreement,
                  and hereby undertakes to indemnify the Company on a full indemnity
                  basis
                  for any losses, costs, liabilities or expenses incurred by the
                  Company
                  resulting from his failure to do
                  so.

              

      

       

      
        	
                5.

              	
                Pension
                  and Insurance Benefits

              

      

       

      
        	
                5.1

              	
                The
                  Executive shall be entitled to become and during the continuance
                  of the
                  Appointment to remain a member of any pension scheme or mandatory
                  provident fund operated by the Company. The Executive’s membership of such
                  scheme(s) shall be subject to the provisions thereof as amended
                  from time
                  to time.

              

      

       

      
        	
                5.2

              	
                The
                  Executive shall be entitled to become and during the continuance
                  of the
                  Appointment to remain a member of any medical scheme as may be
                  maintained
                  by the Company from time to time. The Executive’s membership of such
                  medical scheme (if any) shall be subject to the provisions thereof
                  as
                  amended from time to time. The Company has the absolute discretion
                  to
                  amend its arrangements for or withdraw the provision of such benefits
                  as
                  it sees fit

              

      

       

      
        	
                6.

              	
                Expenses

              

      

       

      If
        the
        same is in compliance with the Company’s business and travel expenses policy (as
        may be amended from time to time), the Company shall reimburse to the Executive
        all travelling, hotel and other out-of-pocket expenses properly and reasonably
        incurred by him in the performance of his duties hereunder strictly in
        connection with the Business and properly claimed and vouched upon presentation
        to the Company of expenses statements or vouchers or such other supporting
        information as the Company may require. Notwithstanding the aforesaid,
        exceptions to the Company’s business and travel expenses policy may be allowed
        with the special approval of the Chairman of the board of directors of
        Cornerstone Overseas Investment Limited, the controlling shareholder of the
        Company.

       

      
        	
                7.

              	
                Annual
                  Leave

              

      

       

      
        	
                7.1

              	
                In
                  addition to statutory labour holidays, the Executive shall be entitled
                  to
                  the number of working days’ paid annual leave during each calendar year
                  set out as follows:

              

      

       

      
        	
              	-
                after one year:	
                7
                  working days;

              

        	 	- after two
                years: 	11 working
                days;

        	 	- after
                five years:	16.5
                working days; and

        	 	- after
                ten years:	22 working
                days,

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      with
        such
        annual leave to be taken at such time or times as may be agreed with the
        Board.
        For the avoidance of doubt, any period of employment of the Executive with
        the
        Group prior to the date hereof shall be included for calculating the annual
        leave or any other contractual or statutory entitlement of the
        Executive.

       

      
        	
                7.2

              	
                Any
                  annual leave if not taken during the relevant year, cannot be carried
                  forward to a subsequent year. No payment will be made by the Company
                  (during the continuance of this Agreement) in lieu of holidays
                  not
                  taken.

              

      

       

      
        	
                7.3

              	
                For
                  the calendar year during which the Appointment commences or terminates,
                  the Executive shall be entitled to such proportion of his annual
                  leave
                  entitlement as the period of his employment in each such year bears
                  to one
                  calendar year. Upon termination of his employment for whatever
                  reason he
                  shall if appropriate either be entitled to a payment in lieu of
                  any
                  outstanding annual leave entitlement or be required to pay to the
                  Company
                  any salary received in respect of annual leave taken in excess
                  of his
                  proportionate annual leave
                  entitlement.

              

      

       

      
        	
                8.

              	
                Sickness/Incapacity

              

      

       

      
        	
                8.1

              	
                If
                  the Executive shall be prevented by illness, accident or other
                  incapacity
                  from properly performing his duties hereunder he shall report this
                  fact
                  forthwith to the Board.

              

      

       

      
        	
                8.2

              	
                If
                  he Executive shall be absent from his duties hereunder owing to
                  illness,
                  accident or other incapacity duly certified in accordance with
                  the
                  provisions of Clause 8.1 he shall be paid his full remuneration
                  during any periods of absence up to a maximum of 120 days in any
                  period of
                  12 months or such other period as is required under the Employment
                  Ordinance (Chapter 57 of the Laws of Hong Kong) and subject to the
                  provisions of Clause 11 such remuneration as the Board shall in its
                  absolute discretion allow PROVIDED THAT there shall be deducted
                  from such
                  remuneration any benefits payable to the Executive including any
                  sums
                  recoverable from a third party.

              

      

       

      
        	
                9.

              	
                Confidential
                  Information

              

      

       

      
        	
                9.1

              	
                The
                  Executive shall not during the Appointment (save in the proper
                  course
                  thereof) or at any time after its termination for any reason whatsoever
                  disclose to any person whatsoever or otherwise make use (whether
                  for his
                  own benefit or the benefit of any other person) of any confidential
                  or
                  secret information which he has or may have acquired either in
                  any period
                  prior to the date hereof or in the course of his employment hereunder
                  concerning the Business, finance, customers or trade connections
                  of the
                  Group or any of its suppliers, agents, distributors or customers
                  and shall
                  use his best endeavours to prevent or permit the unauthorised publication
                  or disclosure of any such confidential or secret information. The
                  Executive hereby acknowledges that such confidential or secret
                  information
                  shall at all times belong to and be the absolute property of the
                  Company.

              

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      
        	
                9.2

              	
                Without
                  prejudice to the above, the
                  Executive:

              

      

       

      
        	 	
                (a)

              	
                must
                  not disclose any trade secrets or other information of a confidential
                  or
                  secret nature relating to the Group or the Business or in respect
                  of which
                  the relevant company owes an obligation of confidence to any third
                  party
                  during or after the term of his Appointment, except in the proper
                  cause of
                  his employment or as required by
                  law.

              

      

       

      
        	 	
                (b)

              	
                must
                  not, save in the proper discharge of his duties hereunder, remove
                  any
                  documents, or tangible items which belong to the Company or which
                  contain
                  any confidential or secret information from the Company’s premises at any
                  time.

              

      

       

      
        	 	
                (c)

              	
                must
                  return to the Company upon request and, in any event, upon the
                  termination
                  of his employment hereunder, all documents and tangible items which
                  belong
                  to the Company or which contain or refer to any confidential or
                  secret
                  information and which are in his possession or under his
                  control.

              

      

       

      
        	 	
                (d)

              	
                must
                  upon request and, in any event, upon the termination of his employment
                  hereunder, delete all confidential or secret information from any
                  re-usable material and destroy all other documents and tangible
                  items
                  which contain or refer to any confidential or secret information
                  and which
                  are in his possession or under his
                  control.

              

      

       

      
        	
                9.3

              	
                In
                  the event of the Executive’s breach of any of the above terms, the Company
                  will be entitled to claim damages or exercise any other right,
                  power or
                  remedy under (and subject to and in accordance with the terms of)
                  this
                  Agreement or as otherwise provided by
                  law.

              

      

       

      
        	
                10.

              	
                Restrictions
                  on the Executive

              

      

       

      
        	
                10.1

              	
                Since
                  the Executive will in the course of the Appointment obtain knowledge
                  of
                  the trade secrets and other confidential information with regard
                  to the
                  Business and the Group, the Executive hereby agrees and undertakes
                  to the
                  Company that he shall not without the prior written consent of
                  the Board
                  (such consent to be withheld only so far as may be reasonably necessary
                  to
                  protect the legitimate interests of the
                  Company)

              

      

       

      
        	 	
                (a)

              	
                during
                  the Appointment and for a period of two calendar years after the
                  termination for whatever reason of his employment hereunder be
                  engaged or
                  interested (whether as a director, shareholder, principal, consultant,
                  agent, partner or employee) in any business concern (of whatever
                  kind)
                  which shall in Hong Kong or the PRC be in competition with the
                  Group
                  PROVIDED ALWAYS that nothing in this Clause 10.1 (a) shall restrain
                  the Executive from engaging or being interested as aforesaid in
                  any such
                  business concern in so far as his duties or work relate principally
                  to
                  services or goods of a kind with which the Executive was not concerned
                  during the period of two calendar years prior to the termination
                  of his
                  employment hereunder;

              

      

       

      
        	 	
                (b)

              	
                during
                  the Appointment and for a period of two calendar years after the
                  termination for whatever reason of his employment hereunder either
                  on his
                  own behalf or on behalf of any other person, firm or company in
                  respect of
                  any services of a kind provided or any goods of a kind sold or
                  supplied by
                  the Company in respect of the provision or sale or supply of which
                  the
                  Executive may have been engaged during his employment with the
                  Company:

              

      

       

      
        	 	
                (i)

              	
                canvass,
                  solicit or approach or cause to be canvassed, solicited or approached
                  for
                  orders; or

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      
        	 	
                (ii)

              	
                directly
                  or indirectly deal with

              

      

       

      any
        person, firm or company who at the date of the termination of this Agreement
        or
        within two years prior to such date is or was a client or customer of the
        Group
        or was in the habit of dealing under contract with the Group; and

       

      
        	 	
                (c)

              	
                during
                  the period of Appointment and for a period of two calendar years
                  after the
                  termination for whatever reason of his Appointment hereunder either
                  on his
                  own behalf or on behalf of any other person, firm or
                  company:

              

      

       

      
        	 	
                (i)

              	
                directly
                  or indirectly solicit or entice or endeavour to solicit or entice
                  away
                  from the Group any employee engaged in its or their business and
                  with whom
                  the Executive had dealings at any time during the last year of
                  his
                  Appointment hereunder; and

              

      

       

      
        	 	
                (ii)

              	
                interfere
                  or seek to interfere with the continuance of supplies to the Group
                  (or the
                  terms relating to such supplies) from any suppliers who have been
                  supplying goods, materials or services to the Group at any time
                  during the
                  last year of his Appointment
                  hereunder.

              

      

       

      
        	
                10.2

              	
                Whilst
                  each of the restrictions in Clauses 10.1(a), 10.1(b) and 10.1(c) is
                  considered by the parties hereto to be reasonable in all the circumstances
                  as at the date hereof it is hereby agreed and declared that if
                  any one or
                  more of such restrictions shall be judged to be void as going beyond
                  what
                  is reasonable in all the circumstances for the protection of the
                  interests
                  of the Company but would be valid if words were deleted therefrom
                  the said
                  restrictions shall be deemed to apply with such modifications as
                  may be
                  necessary to make them valid and effective and any such modification
                  shall
                  not thereby affect the validity of any other restriction contained
                  herein.

              

      

       

      
        	
                10.3

              	
                The
                  Executive hereby undertakes to the Company (except with the prior
                  consent
                  in writing of the Company) that during the Appointment, the Executive
                  will
                  not either on his own account or in conjunction with or on behalf
                  of any
                  person, firm or company, directly or indirectly, carry on, be engaged
                  in,
                  concerned with or interested in, whether as shareholder (interested
                  in
                  more than 5% of the issued shares of such company), director, employee,
                  consultant, partner, representative, agent or otherwise, any business
                  (other than as a holder (directly or through nominees) of the issued
                  shares or debentures of any company listed on any recognized stock
                  exchange or unlisted companies.

              

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      
        	
                11.

              	
                Termination
                  on the Happening of Certain
                  Events

              

      

       

      
        	
                11.1

              	
                The
                  Company may, without prejudice to any remedy which it may have
                  against the
                  Executive for the breach or non-performance of any of the provisions
                  of
                  this Agreement, by notice in writing to the Executive forthwith
                  determine
                  this Agreement if the Executive
                  shall:

              

      

       

      
        	 	
                (a)

              	
                commit
                  any serious or persistent breach of any of the provisions herein
                  contained;

              

      

       

      
        	 	
                (b)

              	
                be
                  persistently guilty of any grave misconduct or wilful default or
                  neglect
                  in the discharge of his duties
                  hereunder;

              

      

       

      
        	 	
                (c)

              	
                become
                  bankrupt or have a bankruptcy order made against him or suspend
                  payment of
                  his debts or compound with or make any arrangement or composition
                  with his
                  creditors generally;

              

      

       

      
        	 	
                (d)

              	
                become
                  a lunatic or of unsound mind or become a patient for any purpose
                  of any
                  statute relating to mental health;

              

      

       

      
        	 	
                (e)

              	
                be
                  guilty of any serious conduct tending to bring himself or any member
                  of
                  the Group into disrepute;

              

      

       

      
        	 	
                (f)

              	
                be
                  prohibited by law or other competent authority from being a director
                  of a
                  company or from fulfilling his duties
                  hereunder;

              

      

       

      
        	 	
                (g)

              	
                persistently
                  refuse to carry out any reasonable or lawful order given to him
                  in the
                  course of his Appointment;

              

      

       

      
        	 	
                (h)

              	
                be
                  convicted of any criminal offence (other than an offence which
                  in the
                  reasonable opinion of the Board does not affect his position under
                  this
                  Agreement);

              

      

       

      
        	 	
                (i)

              	
                be
                  guilty of any act of dishonesty whether relating to the Company,
                  any other
                  employee of the Company or any member of the Group during the Appointment;
                  or

              

      

       

      
        	 	
                (j)

              	
                improperly
                  divulge to any unauthorized person, firm or company any confidential
                  information or any other business secret or details of the organization,
                  business or clientele of the Group.

              

      

       

      
        	
                12.

              	
                Obligations
                  upon Termination of
                  Appointment

              

      

       

      
        	
                12.1

              	
                Upon
                  the date of termination of his Appointment hereunder for whatever
                  reason
                  the Executive shall:

              

      

       

      
        	 	
                (a)

              	
                forthwith
                  tender his resignation without compensation (if he has not already
                  done
                  so) from all offices held by him in the Company and its subsidiaries
                  and
                  the Executive hereby irrevocably appoints the Company to be his
                  attorney
                  and in his name and on his behalf to sign and execute any document
                  or do
                  anything necessary if the Executive fails to sign and do the
                  same;

              

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      
        	 	
                (b)

              	
                deliver
                  up to the Company all keys, credit cards, correspondence, plans,
                  documents, specifications, reports, papers and records (including
                  any
                  computer material such as discs or tapes) and all copies thereof
                  and any
                  other property (whether or not similar to the foregoing or any
                  of them)
                  belonging to the Group which may be in his possession or under
                  his
                  control, and (unless prevented by the owner thereof) any such property
                  belonging to others which may be in his possession or under his
                  control
                  and which relates in any way to the Business or affairs of the
                  Group or
                  any supplier, agent, distributor or customer of the Group, and
                  he shall
                  not without written consent of the Board retain any copies thereof;
                  and

              

      

       

      
        	 	
                (c)

              	
                not
                  at any time thereafter represent himself to be connected in any
                  way
                  whatsoever with the Group.

              

      

       

      
        	
                13.

              	
                Effect
                  of Termination of this
                  Agreement

              

      

       

      Termination
        for whatever reason shall not relieve the parties hereto of their respective
        obligations and liabilities arising or accrued prior to the termination of
        the
        Appointment or of obligations and liabilities which expressly or by necessary
        implication continue after termination of the Appointment.

       

      
        	
                14.

              	
                Inventions
                  and other industrial or intellectual
                  property

              

      

       

      
        	
                14.1

              	
                Any
                  discovery or invention or secret process or new or more advanced
                  technology or improvement in procedure made or discovered by the
                  Executive
                  during the Appointment in connection with or in any way affecting
                  or
                  relating either directly or indirectly to the Business, or capable
                  of
                  being used or adapted for use therein or in connection therewith,
                  shall
                  forthwith be disclosed to the Company and shall belong to and be
                  the
                  absolute property of the Company.

              

      

       

      
        	
                14.2

              	
                Any
                  concept, idea, invention, improvement, design, plan, drawing or
                  specification or process or information discovered or copyright
                  work or
                  trade mark or trade name or get-up relating to the Business discovered,
                  created, developed or otherwise acquired by the Executive or communicated
                  to the Executive by any other employee of the Company or any member
                  of the
                  Group during the continuance of the Appointment (capable of being
                  patented
                  or registered and discovered, created, developed or otherwise acquired
                  in
                  the course of his Appointment) in conjunction with or in any way
                  affecting
                  or relating to the Business or capable of being used or adapted
                  for use
                  therein or in connection therewith shall (unless such concept,
                  idea,
                  invention, improvement, design, plan, drawing or specification
                  or process
                  or information discovered or copyright work or trade mark or trade
                  name or
                  get-up were in existence prior to the commencement of a similar
                  business
                  by any company in the Group) forthwith be disclosed in writing
                  to the
                  Company and shall belong to and be the absolute property of the
                  Company or
                  such company in the Group as the Company may direct without any
                  compensation whatsoever to the
                  Executive.

              

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      
        	
                14.3

              	
                The
                  Executive, if and whenever required so to do shall, at the expense
                  of a
                  company within the Group, apply or join with such company in applying
                  for,
                  obtaining and/or renewing letters patent or other protection or
                  registration for any such intellectual property in Hong Kong or
                  any other
                  part of the world for such discovery, invention, process, technology
                  or
                  improvement as aforesaid and execute all instruments and do all
                  things
                  necessary for the vesting of the said letters patent or other similar
                  protection when obtained and all right and title to and interest
                  in the
                  same in such company within the Group absolutely as the sole beneficial
                  owner or such other person as the Company may
                  require.

              

      

       

      
        	
                14.4

              	
                The
                  Executive shall promptly disclose to the Company all copyright
                  works
                  originated, conceived, written or made by him alone or with others
                  (except
                  only those works originated, conceived, written or made by him
                  wholly
                  outside his normal working hours and wholly unconnected with his
                  Appointment) and shall until such rights shall be fully and absolutely
                  vested in the Group, hold them on trust for the
                  Company.

              

      

       

      
        	
                15.

              	
                Working
                  Hours

              

      

       

      
        	
                15.1

              	
                The
                  Executive shall attend punctually at such offices of the Company
                  as the
                  Company shall designate during normal office hours of the Company
                  (subject
                  to Clause 15.2) and shall not be absent from work at any time without
                  the consent of the Board. For the avoidance of doubt, the normal
                  office
                  hours of the Company are Monday to Friday 9.00 a.m. - 1.00 p.m.,
                  2.00 p.m.
                  - 6.00 p.m., and Saturday 9.00 a.m. - 1.00
                  p.m.

              

      

       

      
        	
                15.2

              	
                If
                  and whenever it may be necessary for the proper discharge of his
                  duties,
                  the Executive shall attend at the offices of the Company or elsewhere
                  as
                  may be required at such earlier hour or for such longer period
                  as may be
                  required and the Executive shall not be entitled to receive any
                  remuneration for work done outside normal office
                  hours.

              

      

       

      
        	
                16.

              	
                Waiver

              

      

       

      
        	
                16.1

              	
                Time
                  is of the essence of this Agreement but no failure or delay on
                  the part of
                  either party to exercise any power, right or remedy hereunder shall
                  operate as a waiver thereof, nor shall any single or partial exercise
                  by
                  either party of any power, right or remedy preclude any other or
                  further
                  exercise thereof or the exercise of any other power, right or remedy
                  by
                  that party.

              

      

       

      
        	
                16.2

              	
                The
                  remedies provided herein are cumulative and are not exclusive of
                  any
                  remedies provided by law.

              

      

       

      
        	
                17.

              	
                Former
                  employment agreements

              

      

       

      
        	
                17.1

              	
                This
                  Agreement constitutes the entire agreement between the parties
                  hereto in
                  relation to the subject matter hereof and shall be in substitution
                  for and
                  supersedes all and any previous and existing employment agreements
                  entered
                  into between the Executive and any member of the Group and for
                  any terms
                  of employment previously in force between any such company and
                  the
                  Executive, whether or not on a legal or formal basis which shall
                  be deemed
                  to have been cancelled with effect from the date of commencement
                  of the
                  term of the Appointment.

              

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      
        	
                17.2

              	
                The
                  Executive hereby acknowledges that he has no claim of any kind
                  whatsoever
                  against any member of the Group and without prejudice to the generality
                  of
                  the foregoing he further acknowledges that he has no claim for
                  damages
                  against any member of the Group for the termination of any previous
                  employment agreements for the purpose of entering into this
                  Agreement.

              

      

       

      
        	
                18.

              	
                Notices

              

      

       

      
        	
                18.1

              	
                All
                  notices, requests, demands, consents or other communications to
                  or upon
                  the parties under or pursuant to this Agreement shall be in writing
                  addressed to the relevant party at such party’s address set out below (or
                  at such other address or facsimile number as such party may hereafter
                  specify to the other party) and shall be deemed to have been duly
                  given or
                  made: -

              

      

       

      
        	 	
                (a)

              	
                in
                  the case of a communication by letter 5 days (if overseas) or 2
                  days (if
                  local) after despatch or, if such letter is delivered by hand,
                  on the day
                  of delivery; or

              

      

       

      
        	 	
                (b)

              	
                in
                  the case of a communication by telex or facsimile, when sent provided
                  that
                  the transmission is confirmed by the answer back of the recipient
                  (in the
                  case of telex) or by a transmission report (in the case of
                  facsimile).

              

      

      

        
          	 	The
                  Company’s address:
	 	
                  Address:

                	 	
                  Room
                    UG202, Floor UG2, Chinachem Golden Plaza, 77 Mody

                
	 	 	 	
                  Road,
                    Tsimshatsui East, Kowloon, Hong Kong

                
	 	
                  Fax
                    No.:

                	 	
                  (852)
                    2520 5515 / 2520 5049

                
	 	
                  For
                    the attention of: Mr.
                    Henry Hu

                
	 	 
	 	
                  The
                    Executive’s address:

                
	 	
                  Address:

                	 	
                  Unit
                    A, 12/F, Century Industrial Building, Shek Pai Tau Road, Lot

                  192,
                    Tuen Mun, New Territories, Hong Kong

                
	 	
                  Fax
                    No.:

                	 	
                  2456
                    3072

                
	 	
                  For
                    the attention of Li San Tung

                

        

      

      
         

      

      
        	
                19.

              	
                Assignment

              

      

       

      
        	
                19.1

              	
                This
                  Agreement shall be binding upon and endure for the benefit of each
                  party
                  hereto and its successors and assigns and personal representatives
                  (as the
                  case may be), provided always that the Executive shall not assign
                  his
                  obligations and liabilities under this
                  Agreement.

              

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      
        	
                20.

              	
                Amendment

              

      

       

      
        	
                20.1

              	
                This
                  Agreement may not be amended, supplemented or modified except by
                  a written
                  agreement or instrument signed by or on behalf of the parties
                  hereto.

              

      

       

      
        	
                21.

              	
                Severability

              

      

       

      
        	
                21.1

              	
                Any
                  provision of this Agreement prohibited by or unlawful or unenforceable
                  under any applicable law actually applied by any court of competent
                  jurisdiction shall, to the extent required by such law, be severed
                  from
                  this Agreement and rendered ineffective so far as is possible without
                  modifying the remaining provisions of this Agreement. Where, however,
                  the
                  provisions of any such applicable law may be waived, they are hereby
                  waived by the parties hereto to the full extent permitted by such
                  law to
                  the end that this Agreement shall be a valid and binding agreement
                  enforceable in accordance with its
                  terms.

              

      

       

      
        	
                22.

              	
                Governing
                  Law and Jurisdiction

              

      

       

      
        	
                22.1

              	
                This
                  Agreement shall be governed by, construed and take effect in accordance
                  with the laws of Hong Kong. The courts of Hong Kong shall have
                  the
                  non-exclusive jurisdiction to settle any claim, dispute or matter
                  of
                  difference which may arise out of or in connection with this Agreement
                  (including without limitation claims of set off or counterclaim)
                  or the
                  legal relationships established by this
                  Agreement.

              

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      IN
        WITNESS whereof
        this Agreement has been entered into the day and year first above
        written

       

      
        
          	
                  SIGNED
                    by HU HAI LIN

                	 	
                  )

                
	
                  for
                    and on behalf of

                	 	
                  )
                    /s/ HU HAI LIN

                
	
                  KORD
                    HOLDINGS INC.

                	 	
                  )

                
	
                  in
                    the presence of:-

                	 	
                  )

                

        

         

        /s/

         

        Lam
          Wai
          Ming

         

        Solicitor,
          Hong Kong SAR

         

        Woo,
          Kwan, Lee & Lo

         

        
          	
                  SIGNED,
                    SEALED and DELIVERED by

                	 	
                  )

                
	
                  LI
                    SAN TUNG

                	 	
                  )
                    /s/ LI SAN TUNG

                
	
                  in
                    the presence of:-

                	 	
                  )

                

        

      

       

       

      /s/

       

      Lam
        Wai
        Ming

       

      Solicitor,
        Hong Kong SAR

       

      Woo,
        Kwan, Lee & Lo

       

      
        
           

        

        
          13EXECUTION
        VERSION

    

     

    Exhibit 4.5d

     

    EMPLOYMENT
      AGREEMENT

     

    THIS
      AGREEMENT is made and entered into as of the 19th day of July, 2007, by and
      between Grand Toys International Limited, a limited company organized under
      the
      laws of Hong Kong, having its principal office at Room UG202, Floor UG2,
      Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui, Kowloon, Hong Kong (“Grand”),
      and David C.W. Howell, an individual residing at 64C Sheung Sze Wan, Clearwater
      Bay, Sai Kung, New Territories, Hong Kong (“Employee”).

     

    WHEREAS,
      Grand is desirous of employing Employee as its executive vice president and
      chief financial officer, and Employee is willing to serve Grand in such
      capacity, all upon the terms and subject to the conditions hereinafter set
      forth.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements herein
      contained, the parties hereto, intending to be legally bound, agree as
      follows:

     

    1. DEFINITIONS.
      

     

    The
      following terms, when used in capitalized form in this Agreement, shall have
      the
      meanings attributed to them in this Section:

     

    (a) “2004
      Plan” means the 2004 stock option plan adopted by Grand, as amended from time to
      time.

     

    (b) “Change
      in Control” means the occurrence of any one of the following
      events:

     

    (i) individuals
      who, as of the date of the Agreement, constitute the Board (the “Incumbent
      Directors”) cease for any reason to constitute at least a majority of the Board,
      provided that any person becoming a director subsequent to the date of the
      Agreement, whose election or nomination for election was approved by a vote
      of
      at least two-thirds of the Incumbent Directors then on the Board (either by
      a
      specific vote or by approval of the proxy statement of Grand in which such
      person is named as a nominee for director, without written objection to such
      nomination) shall be deemed to be an Incumbent Director; provided,
      however,
      that no
      individual initially elected or nominated as a director of Grand as a result
      of
      an actual or threatened election contest with respect to directors or as a
      result of any other actual or threatened solicitation of proxies or consents
      by
      or on behalf of any person other than the Board shall be deemed to be an
      Incumbent Director;

     

    (ii) any
      “person” (as such term is defined in Section 3(a)(9) of the U.S. Securities
      Exchange Act of 1934, as amended (the “Exchange Act”) and as used in
      Sections 13(d)(3) and 14(d)(2) of the Exchange Act) becomes a “beneficial
      owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
      indirectly, of securities of Grand representing 50% or more of the combined
      voting power of Grand’s then outstanding securities eligible to vote for the
      election of the Board (the “Grand Voting Securities”) or any person who
      beneficially owns 50% of the Grand Voting Securities increases their beneficial
      ownership by more than 5%; provided,
      however,
      that
      the event described in this paragraph (ii) shall not be deemed to be a
      Change in Control by virtue of any of the following acquisitions: (A) by
      Grand or any member of the Grand Group, (B) by any employee benefit plan
      (or related trust) sponsored or maintained by Grand or any member of the Grand
      Group, (C) by any underwriter temporarily holding securities pursuant to an
      offering of such securities, (D) pursuant to a Non-Qualifying Transaction
      (as defined in paragraph (iii)), or (E) pursuant to any acquisition by
      Employee or any group of persons including Employee (or any entity controlled
      by
      Employee or any group of persons including Employee);

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      EXECUTION
        VERSION

    

     

    (iii) the
      consummation of a merger, consolidation, statutory share exchange, merger or
      similar form of corporate transaction involving Grand or any member of the
      Grand
      Group that requires the approval of Grand’s stockholders, whether for such
      transaction or the issuance of securities in the transaction (a “Business
      Combination”), unless immediately following such Business Combination:
      (A) more than 50% of the total voting power of (x) the corporation
      resulting from such Business Combination (the “Surviving Corporation”), or
      (y) if applicable, the ultimate parent corporation that directly or
      indirectly has beneficial ownership of at least 95% of the voting securities
      eligible to elect directors of the Surviving Corporation (the “Parent
      Corporation”), is represented by Grand Voting Securities that were outstanding
      immediately prior to such Business Combination (or, if applicable, is
      represented by shares into which such Grand Voting Securities were converted
      pursuant to such Business Combination), and such voting power among the holders
      thereof is in substantially the same proportion as the voting power of such
      Grand Voting Securities among the holders thereof immediately prior to the
      Business Combination, (B) no person (other than any employee benefit plan
      (or related trust) sponsored or maintained by the Surviving Corporation or
      the
      Parent Corporation or an existing Grand shareholder, with greater than 50%
      beneficial ownership of the Grand Voting Securities prior to the Business
      Combination, whose percentage beneficial ownership compared to the other Grand
      shareholders in existence immediately prior to the Business Combination does
      not
      change on consummation of the Business Transaction), is or becomes the
      beneficial owner, directly or indirectly, of 50% or more of the total voting
      power of the outstanding voting securities eligible to elect directors of the
      Parent Corporation (or, if there is no Parent Corporation, the Surviving
      Corporation) and (C) at least a majority of the members of the board of
      directors of the Parent Corporation (or, if there is no Parent Corporation,
      the
      Surviving Corporation) following the consummation of the Business Combination
      were Incumbent Directors at the time of the Board’s approval of the execution of
      the initial agreement providing for such Business Combination (any Business
      Combination which satisfies all of the criteria specified in (A), (B) and (C)
      above shall be deemed to be a “Non-Qualifying Transaction”); or

     

    (iv) the
      stockholders of Grand approve a plan of complete liquidation or dissolution
      of
      Grand or the consummation of a sale of all or substantially all of Grand’s
      assets.

     

    Notwithstanding
      the foregoing, a Change in Control of Grand shall not be deemed to occur solely
      because any person acquires beneficial ownership of more than 50% of the Grand
      Voting Securities as a result of the acquisition of Grand Voting Securities
      by
      Grand which reduces the number of Grand Voting Securities outstanding; provided,
      that if after such acquisition by Grand such person becomes the beneficial
      owner
      of additional Grand Voting Securities that increases the percentage of
      outstanding Grand Voting Securities beneficially owned by such person, a Change
      in Control of Grand shall then occur.”

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

      EXECUTION
        VERSION

    

     

    (c) “Dollars”
      and “US$” means United States dollars.

     

    (d) “Good
      Reason” shall mean the occurrence after a Change in Control of any of the
      following events without the Employee’s express written consent: (i) the
      assignment to the Employee of duties inconsistent with his position and status
      as an executive of the Grand Group, or a substantial alteration in the nature,
      status or prestige of the Employee’s responsibilities with the Grand Group from
      those in effect immediately prior to such Change in Control; or (ii) a
      reduction in the Employee’s base salary or bonus at the rate most recently
      approved by the Board prior to the occurrence of such Change in Control; or
      (iii) any other material adverse change in the terms or conditions of the
      Employee’s employment hereunder following the occurrence of such Change in
      Control.

     

    (e) “Grand
      Group” means Grand and any other corporation or other entity which at the
      relevant time is more than fifty percent (50%) owned, directly or indirectly,
      by
      Grand.

     

    (f) “Hong
      Kong” means the Hong Kong Special Administrative Region of the People’s Republic
      of China.

     

    (g) “Termination”
      means, according to the context, the termination of this Agreement or the
      cessation of rendering employment services by Employee.

     

    2. EMPLOYMENT.

     

    Grand
      agrees to employ Employee, and Employee agrees to be employed by Grand, upon
      the
      terms and subject to the conditions of this Agreement.

     

    3. TERM.

     

    The
      term
      of this Agreement shall be for a period of two (2) years commencing as of
      July 6, 2007, unless sooner terminated as hereinafter provided (the
“Term”).

     

    4. DUTIES;
      EFFORTS; INDEMNIFICATION.

     

    (a) During
      the Term of this Agreement, Employee shall serve as Executive Vice President
      -
      Finance of Grand and, beginning on September 1, 2007, as Chief Financial
      Officer, reporting directly to the Chief Executive Officer. Employee shall
      be
      responsible for the management of financial and accounting matters affecting
      the
      Grand Group, including without limitation the preparation of financial
      statements and compliance with applicable securities laws and regulations,
      as
      well as such other duties as are commensurate with such position. Employee
      shall
      also perform such executive duties as may be assigned to him from time to time
      by the Board of Directors of Grand (the “Board”) or the Chief Executive Officer
      so long as such duties are not inconsistent with the duties commensurate with
      a
      principal financial officer of a company of comparable size. Employee shall
      perform his duties under this Agreement principally in Hong Kong.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

      EXECUTION
        VERSION

    

     

    (b) Employee
      agrees that Employee shall comply with all of the applicable policies, rules
      or
      codes of conduct generally in effect for employees of Grand or the Grand Group
      during the Term of his employment.

     

    (c) Employee
      shall devote all of his business time, attention and energies, on a full time
      and exclusive basis, to the business of the Grand Group, shall use his best
      efforts to advance the best interests of Grand, and shall not during the Term
      be
      engaged in any other business activities, whether or not such business
      activities are pursued for gain, profit or other pecuniary advantage, without
      Board consent; provided,
      however,
      that,
      it shall not be a violation of this Agreement for Employee to (i) serve on
      corporate, civic or charitable boards or committees, or (ii) manage passive
      personal investments, in either case so long as any such activities do not
      interfere with the performance of his responsibilities as an employee of Grand
      in accordance with this Agreement.

     

    5. COMPENSATION
      AND BENEFITS.

     

    (a) Base
      Salary.
      Grand
      agrees to pay Employee, and Employee agrees to accept from Grand, a salary
      at
      the rate of US$375,000 per annum (“Base Salary”) payable in accordance with
      Grand’s payroll practices for its executive employees to Employee’s bank account
      in Hong Kong as provided in writing by Employee. Employee shall receive annual
      salary reviews by the Board with a view to ensuring that it remains commensurate
      with the time and effort required for the discharge of his responsibilities
      pursuant to this Agreement, provided that such salary shall not be reduced
      below
      the Base Salary. After a Change in Control, Employee’s salary shall not be
      reduced below the level immediately prior to the Change in Control. For any
      period during the Term that Employee is working on a basis other than full-time,
      the Base Salary shall be adjusted pro rata for the reduced work schedule, as
      mutually agreed by Employee and Grand.

     

    (b) Executive
      Bonus.
      Employee will participate in any Grand executive bonus program that is
      established by the Board.

     

    (c) Provident
      Fund.
      Grand
      will contribute to a provident fund for the benefit of Employee on such terms
      and conditions to be agreed between Grand and Employee.

     

    (d) ADSs
      Options.
      In
      addition to the amounts of compensation provided in subsections (a), (b) and
      (c)
      of this Section 5, Employee shall be eligible for the following incentive
      compensation:

     

    (i) Grand
      shall grant to Employee the following option to purchase American Depositary
      Shares (“ADSs”) representing beneficial ownership in ordinary shares in the
      capital of Grand at an exercise price per ADS which shall be equivalent to
      the
      closing market price thereof on the last trading day prior to the date of the
      grant on which securities markets in the United States are open, subject to
      the
      terms and conditions of this Section 5 and the 2004 Plan; provided,
      however,
      that
      each such grant shall be subject to the condition that Employee continues to
      be
      employed in good standing by Grand Group through the relevant date of grant.
      

     

    (1)  First,
      300,000 ADSs options shall be granted as of the date of this Agreement; and
      

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      EXECUTION
        VERSION

    

     

    (2)  Second,
      300,000 ADSs options shall be granted on the first anniversary of the date
      of
      the first grant. 

     

    Unless
      otherwise provided herein or in the 2004 Plan, the ADSs options shall become
      vested as to ADSs representing 100,000 shares on each of the first, second
      and
      third anniversaries of each grant and shall expire on the tenth anniversary
      of
      the relevant date of grant.

     

    (ii) The
      number of ADSs subject to the ADS Options will be adjusted for stock splits
      and
      reverse splits; provided that such number of ADSs shall not be adjusted if
      Grand
      should otherwise change or modify its capitalization, including but not limited
      to the issuance by Grand of new securities (including options or convertible
      securities), ESOP’s or other employee stock plans. It is the intent of the
      parties that the ADSs subject to the ADS options shall be subject to dilution,
      except for stock splits and reverse splits.

     

    (iii) Upon
      the
      occurrence of a Change in Control, Termination by Grand without Cause,
      Disability of Employee or non-renewal of terms of this Agreement after expiry,
      all of Employee’s then unvested ADS Options in Grand shall vest and all
      outstanding ADS Options shall become immediately exercisable only for a period
      of 90 days from the date of such occurrence. If Employee’s employment is
      terminated by Grand without Cause after a definitive agreement for a transaction
      that would constitute a Change in Control has been approved by the shareholders
      of Grand, but before such transaction is consummated, Employee’s ADS Options in
      Grand shall vest on the date of such termination without Cause. Income realized
      by Employee as a result of the acceleration of vesting of equity compensation
      or
      otherwise resulting from a Termination/Change in Control is specifically paid
      in
      consideration of post-employment restrictions of Sections 9 and 10
      hereunder.

     

    (iv) In
      the
      event of the termination of Employee’s employment by Grand for Cause or by
      Employee voluntarily (other than as a result of Grand’s material breach of this
      Agreement), all of Employee’s then outstanding unvested ADS Options shall be
      terminated and shall be null and void, and any vested options shall become
      exercisable only for a period of 90 days from the date of
      termination.

     

    (v) Except
      as
      otherwise set forth herein, the terms and conditions of the 2004 Plan shall
      govern the ADS Options.

     

    (e) Paid
      Leave.
      Employee shall be entitled to five (5) weeks paid leave during each year of
      this
      Agreement taken at such times as mutually convenient to Employee and Grand
      Group.

     

    (f) Out-of-Pocket
      Expenses.
      Grand
      shall promptly reimburse Employee for the reasonable expenses incurred by him
      in
      the performance of his duties hereunder in accordance with Grand’s policies in
      effect from time to time, including, without limitation, those incurred in
      connection with business related travel or entertainment, provided that Employee
      provides proper documentation setting forth information sufficient to
      establish:

     

    (i) the
      amount, date, and place of each such expense;

     

    (ii) the
      business reason for each such expense and the nature of the business benefit
      derived or expected to be derived as a result thereof; and 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

      EXECUTION
        VERSION

    

     

    (iii) the
      names, occupations, addresses, and other information sufficient to establish
      the
      business relationship to Grand Group of any person who was entertained by
      Employee.

     

    6. TERMINATION.

     

    (a) Termination
      without Cause.
      After
      the first anniversary of Employee’s employment with Grand, i.e., July 6,
      2008, either party may terminate the Agreement without Cause (as defined below)
      upon six months’ written notice.

     

    (b) Termination
      for Cause.
      Grand
      shall have the right to terminate Employee’s employment for Cause. For the
      purpose of this section, the term “Cause” shall mean:

     

    (i) breach
      of
      or failure to comply with any of the material terms of this Agreement including,
      but not limited to, Sections 4, 9,10, or 11 of this Agreement;

     

    (ii) failure
      to perform his duties under this Agreement, including refusing to carry out
      the
      reasonable written instructions of the Board or deliberately and internationally
      disregarding the lawful instructions from the Board, in either case which
      instructions are consistent with the responsibilities and duties of Employee
      contemplated by this Agreement;

     

    (iii) material
      breach by Employee of a fiduciary obligation to any member of Grand
      Group;

     

    (iv) intentional
      commission by Employee of any act or omission to perform any act (excluding
      the
      omission to perform any act attributable to Employee’s Disability) which results
      in or is intended to result in material adverse consequences to any member
      of
      Grand Group or which results in or is intended to result in substantial personal
      enrichment of Employee at the expense of any member of Grand Group;

     

    (v) any
      attempt by Employee to assign or delegate this Agreement or any of the rights,
      duties, responsibilities, privileges or obligations hereunder without the prior
      written consent of Grand (except in respect of any delegation by Employee of
      his
      employment duties hereunder to other employees of Grand Group in accordance
      with
      its usual business practice);

     

    (vi) commission
      of any act of fraud, larceny, misappropriation of funds or embezzlement or
      conviction of a felony or a crime of moral depravity under the laws of the
      United States or Hong Kong;

     

    (vii) death
      of
      Employee;

     

    (viii) declaration
      by a court that Employee is insane or incompetent to manage his business
      affairs; or

     

    (ix) the
      filing of any petition or other proceeding seeking to find Employee bankrupt
      or
      insolvent.

     

    
      
         

      

      
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      EXECUTION
        VERSION

    

     

    Termination
      for Cause shall become effective upon a resolution adopted by the Board finding
      an occurrence of an event giving rise to Cause, except that in the case of
      subsections (i), (ii), (iii), (iv) and (v), Employee shall receive thirty (30)
      days’ advance written notice that the Board intends to meet to consider
      Employee’s termination and specifying the actions constituting Cause, Employee
      shall have the opportunity to cure the conduct constituting Cause during such
      thirty (30) day period. Any act, or failure to act, based upon authority given
      pursuant to a resolution duly adopted by the Board or based upon the advice
      of
      counsel for Grand shall be conclusively presumed to be done, or omitted to
      be
      done, by Employee in good faith and in the best interests of Grand.

     

    (c) Termination
      for Disability.
      Grand
      shall have the right to terminate Employee’s employment as a result of
      Employee’s “Disability.” For the purposes of this Agreement, a termination for
      Disability shall occur:

     

    (i) immediately
      after the Board has provided a written termination notice to Employee supported
      by a written statement from a reputable independent physician selected by Grand
      to the effect that Employee shall have become so incapacitated as to be unable
      to resume, within twelve (12) weeks, his employment hereunder by reason of
      physical or mental illness or injury; or 

    (ii) upon
      rendering of a written termination notice by Grand after Employee has been
      unable to substantially perform his duties hereunder for a cumulative period
      of
      twelve (12) weeks in any twelve (12) month period by reason of physical or
      mental illness or injury.

     

    Employee
      agrees to make himself available and to cooperate in any reasonable examination
      by a reputable independent physician selected by Grand for the purpose of a
      termination pursuant to Section 6(c)(i).

     

    (d) Termination/Change
      in Control.
      Employee
      may terminate this Agreement if Employee has Good Reason for such Termination
      following a Change in Control. Such Termination by Employee is hereinafter
      referred to as Termination/Change in Control.

     

    7. EFFECT
      OF TERMINATION.

     

    (a) Termination
      for Cause by Grand, by Employee voluntarily or upon expiration of the
      Term.
      In the
      event that Employee’s employment is terminated by Grand for Cause or by Employee
      voluntarily (other than as a result of Grand’s material breach of this
      Agreement) or upon expiration of the Term, the Employee shall not be entitled
      to
      receive any further compensation and benefits under the provisions of this
      Agreement after the effective date of such Termination.

     

    (b) Termination
      without Cause by Grand, for Disability, or Termination/Change in
      Control.
      In the
      event of termination without Cause by Grand, Disability of Employee or
      Termination/Change in Control, (i) Grand will continue to pay Employee his
      Base Salary until the earlier of six months from the effective date of
      Termination or the expiration of the Term of this Agreement, and
      (ii) Employee’s ADS options will be treated as set forth in
      Section 5(d) hereof.

     

    
      
         

      

      
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      EXECUTION
        VERSION

    

     

    (c) This
      Section 7 sets forth the entire obligation of Grand with respect to the
      termination of Employee’s employment with Grand, and Employee acknowledges that
      upon the Termination of his employment, he shall not be entitled to any payments
      or benefits which are not explicitly provided herein.

     

    8. RETURN
      OF RECORDS AND PROPERTY.

     

    Upon
      Termination of Employee’s employment with Grand for any reason, Employee shall
      deliver promptly to Grand all records, manuals, books, blank forms, documents,
      letters, memoranda, notes, notebooks, reports, computer disks, computer
      software, computer programs (including source code, object code, on-line files,
      documentation, testing materials and plans and reports), designs, drawings,
      formulae, data, tables or calculations or copies thereof, which are the property
      of Grand or which relate in any way to the business, products, practices or
      techniques of Grand, and all other property, trade secrets and confidential
      information of Grand, including, but not limited to, all tangible, written,
      graphical, machine readable and other materials (including all copies) which
      in
      whole or in part contain any trade secrets or Confidential Information of Grand
      which in any of these cases are in Employee’s possession or under Employee’s
      control. 

     

    9. RESTRICTION
      OF COMPETITION; NON-SOLICITATION; INTERFERENCE.

     

    (a) As
      a
      significant inducement to Grand to enter into and perform its obligations under
      this Agreement, during the Term and for a period of one year after expiration
      or
      any Termination (other than in the event of a Termination/Change in Control)
      of
      such employment for any reason (either by Employee or Grand), with or without
      cause, voluntarily or involuntarily (the Term and the additional year together
      “Prohibition Period”), Employee agrees that 

     

    (i) he
      will
      not, directly or indirectly, engage in, be employed by or become affiliated
      with
      any person or entity which offers, develops, performs or is engaged in services,
      products or systems which are competitive with the business of Grand Group
      or
      any other products, services or systems hereafter developed, produced or offered
      by Grand Group, at or prior to the date of the termination of Employee’s
      employment (“Grand Business”), anywhere Grand Group engages in business
      activities during the period of Employee’s employment with Grand;

     

    (ii) during
      the Prohibition Period, he will not, directly or indirectly, become an owner
      or
      member, to the extent of an ownership interest of five percent (5%) or more,
      of
      a joint venture, partnership, corporation or other entity, or a consultant,
      employee, agent, officer or director of a corporation, joint venture,
      partnership or other entity, which is competitive with, directly or indirectly,
      the Grand Business; and

     

    (iii) if
      at any
      time during the Prohibition Period Employee accepts new employment of or becomes
      affiliated with a third party, Employee shall immediately notify Grand of the
      identity and business of Employee’s new employer or affiliation.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
       

      EXECUTION
        VERSION

    

     

    Without
      limiting the foregoing, Employee’s obligation to give notice under this
      Section 9(a) shall apply to any business ventures in which Employee
      proposes to engage, even if not with a third-party employer (such as, without
      limitation, a joint venture, partnership or sole proprietorship). Employee
      hereby consents to Grand notifying any such new employer or business venture
      of
      the terms of the covenants in this Section 9.

     

    (b) During
      the Prohibition Period, Employee shall not (i) induce or attempt to induce
      any Grand Group employee to leave Grand Group’s employ, or in any way interfere
      adversely with the relationship between any such employee and Grand Group;
      (ii) induce or attempt to induce any Grand Group employee to work for,
      render services to, provide advice to, or supply Grand Group confidential
      business information or trade secrets to any third person, firm or corporation;
      (iii) employ, or otherwise pay for services rendered by, any Grand Group
      employee in any business enterprise with which Employee may be associated,
      connected or affiliated; or (iv) induce or attempt to induce any customer,
      supplier, licensee, licensor or other business relation of Grand Group to cease
      doing business with Grand Group, or in any way interfere with the then existing
      business relationship between any such customer, supplier, licensee, licensor
      or
      other business relation and Grand Group.

     

    10. PROTECTION
      OF CONFIDENTIAL INFORMATION AND PROPRIETARY INFORMATION.

     

    (a) Employee
      understands and agrees that he will be exposed to (or have access to)
      confidential information, knowhow, knowledge, data, techniques, computer
      software and hardware, and trade secrets of Grand Group or related to the Grand
      Business, including, without limitation, customer or supplier requirements,
      notes, drawings, writings, designs, plans, specifications, records, charts,
      methods, procedures, systems, price lists, financial data, records, and customer
      or supplier lists (collectively “Confidential Information”). Notwithstanding the
      above, the following shall not be considered “Confidential Information” within
      the meaning of this section: (i) information known to Employee or to the
      public at the date of this Agreement; and (ii) information which hereafter
      becomes known to the public through no fault of Employee. Accordingly, except
      as
      permitted or required in the performance of his duties for Grand Group, Employee
      agrees not to disclose, divulge, make public, utilize, communicate or use,
      whether for his own benefit or for the benefit of others, either directly or
      indirectly, any Confidential Information relating to the Grand Business unless
      specifically authorized in writing by Grand to do so. In addition, Employee
      shall comply with the terms of any confidentiality agreement by which Grand
      is
      bound to a third party.

     

    (b) Employee
      shall promptly communicate and disclose to Grand Group all information,
      inventions, improvements, discoveries, knowhow, methods, techniques, processes,
      observations and data (“Proprietary Information”) obtained, developed, invented
      or otherwise discovered by him in the course of this employment. All written
      materials, records, computer programs or data and documents made by Employee
      or
      coming into his possession during the employment period concerning any
      Proprietary Information used or developed by Grand Group, or by Employee, shall
      be the sole exclusive property of Grand Group. Employee shall have no right,
      title or interest therein notwithstanding that he may have purchased the medium
      on which such Proprietary Information is recorded.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

      EXECUTION
        VERSION

    

     

    (c) Upon
      Termination, Employee shall not take with him any of the Confidential
      Information or Proprietary Information. Upon Termination, or at any time upon
      the request of Grand, Employee shall promptly deliver all Confidential
      Information and Proprietary Information, and all copies thereof, to Grand Group
      with no cost or charge to Grand Group. Upon request by Grand, Employee shall
      promptly execute and deliver any documents necessary or convenient to evidence
      ownership of the Confidential Information and Proprietary Information by Grand
      Group, or the transfer and assignment of the Confidential Information and
      Proprietary Information to Grand Group without cost or charge. The provisions
      of
      this Section 10 shall survive any Termination of this
      Agreement.

     

    11. Other
      Agreements.

     

    Employee
      hereby represents that he is not bound by the terms of any agreement with any
      previous employer, or with any other party, that would impair his right or
      ability to enter the employment of Grand or perform fully his obligations
      pursuant to this Agreement. Employee further represents and warrants that his
      performance of all the terms of this Agreement and as an executive of Grand
      does
      not and will not breach any agreement to keep in confidence proprietary
      information, knowledge or data acquired by him in confidence or in trust prior
      to his employment with Grand.

     

    12. Successors
      and Assigns.

     

    This
      Agreement shall inure to the benefit of and be binding upon Grand and its
      successors and assigns, including but not limited to any corporation, person
      or
      other entity which may acquire all or substantially all of the assets and
      business of Grand or any corporation with or into which it may be consolidated
      or merged. This Agreement shall not be assignable, in whole or in part, by
      any
      party without the written consent of the other party, except that (i) Grand
      may assign its rights and obligations to another present or future member of
      Grand Group and (ii) Employee may, without the prior consent of any member
      of Grand Group, assign to his spouse, or to an immediate family member, proceeds
      of payments resulting from his death or a disability which, in either case,
      occurs after a termination of this Agreement. After any assignment by Grand,
      Grand shall be discharged from all further liability hereunder and such assignee
      shall thereafter be deemed to be Grand for the purposes of all provisions of
      this Agreement including this Section 12.

     

    13. COUNTERPARTS.
      

     

    This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original but all of which shall constitute one and the same
      instrument.

     

    14. GOVERNING
      LAW AND FORUM.

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      Hong
      Kong without reference to the choice of law principles thereof. The parties
      agree that any dispute or litigation in anyway relating to this Agreement or
      to
      employee’s employment by Grand, including, but not limited to, the termination
      of this Agreement or of Employee’s employment will be subject to the exclusive
      jurisdiction of the Hong Kong courts.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

      EXECUTION
        VERSION

    

     

    15. ENTIRE
      AGREEMENT.

     

    This
      Agreement constitutes the entire agreement between the parties and supersedes
      all prior agreements and understandings, whether written or oral, relating
      to
      the subject matter of this Agreement.

     

    16. VALIDITY
      OF PROVISIONS.

     

    Should
      any provision(s) of this Agreement be void or unenforceable in whole or in
      part,
      the remainder of this Agreement shall not in any way be affected thereby, and
      such provision(s) shall be modified or amended so as to provide for the
      accomplishment of the provision(s) and intentions of this Agreement to the
      maximum extent possible.

     

    17. MODIFICATIONS
      OR DISCHARGE.

     

    This
      Agreement shall not be deemed waived, changed, modified, discharged or
      terminated in whole or in part, except as expressly provided for herein or
      by
      written instrument signed by all parties hereto.

     

    18. NOTICES.

     

    Any
      notice or other communications required or permitted hereunder shall be in
      writing and shall be deemed effective (i) upon delivery, if delivered by
      hand and followed by notice by mail or facsimile transmission, or electronic
      mail, (ii) three (3) days after the date of deposit in the mails, if mailed
      by certified or registered mail (return receipt requested), or (iii) on the
      next business day, if mailed by an overnight mail service to the parties or
      sent
      by facsimile transmission, 

     

    If
      to
      Grand: 

     

    Grand
      Toys International Limited

    Room
      UG202, Floor UG2 Chinachem

    Golden
      Plaza 77 Mody Road

    Tsimshatsui
      East Kowloon, Hong Kong

    Attention:
      Jeff Hsieh

    Facsimile
      No.: (852) 2520 5515

     

    with
      copies to: 

     

    Dorsey &
      Whitney

    One
      Pacific Place, Suite

    3008
      88
      Queensway

    Hong
      Kong

    Attention:
      Steven C. Nelson, Esq.

    Facsimile
      No.: (852) 2524-3000

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

      EXECUTION
        VERSION

    

     

    If
      to
      Employee:

     

    Mr.
      David
      C.W. Howell

    64C
      Sheung Sze Wan, Clearwater Bay,

    Sai
      Kung,
      New Territories, Hong Kong

    
      	 	
              Telephone:
                

            	
              852-2791-1654

            

    

    
      	 	
              Telefax:
                

            	
              852-2791-1514

            

    

     

    19. NUMBER;
      GENDER.

     

    In
      this
      Agreement, the masculine shall include the feminine and neuter and vice versa,
      and the singular shall include the plural and vice versa, as the context may
      reasonably require or permit.

     

    20. INDEMNIFICATION.
      

     

    If
      any
      disputes shall arise under this Agreement involving the Termination of
      Employee’s employment with Grand, Grand shall indemnify Employee, on a current
      basis, for all reasonable legal fees and expenses, if any, incurred by Employee
      in connection with such contest or dispute if Employee’s claim is upheld by a
      court of competent jurisdiction; Employee shall indemnify Grand, on a current
      basis, for all reasonable legal fees and expenses incurred by Grand in
      connection with such contest or dispute if the court issues a final and
      non-appealable order setting forth the determination that the position taken
      by
      Employee was frivolous or advanced by Employee in bad faith.

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      year
      first above written.

    
      	 	 	 
	 	
              GRAND
                TOYS INTERNATIONAL LIMITED

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Jeff
              Hsieh    
	 	
              

              Name: Jeff
                Hsieh

              Title: Chief
                Executive Officer

            

    

     

    
      
        	 	 	 
	
              	
              	/s/
                David C.W.
                Howell   
	 	
                

                
                  David
                    C.W. Howell

                

              

      

       

    

    
      
         

      

      
        12

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