Document:

EMPLOYMENT AGREEMENT

          THIS  EMPLOYMENT  AGREEMENT  is  made  as  of October 20, 2000, by and
between  Racing  Champions  Corporation, a Delaware corporation (the "Company"),
and  Peter  J. Henseler (the "Employee").  Certain capitalized terms used herein
are  defined  in  section  10  below.

                                     RECITALS

     A.     The  Company  and the Employee desire to terminate any and all prior
agreements,  whether  oral  or  written,  between  the  parties  and between the
Employee  and  Parent  relating  to  the  Employee's  employment.

     B.     The  Company  desires  to  employ  the  Employee and the Employee is
willing  to  make  his  services  available  to  the  Company  on  the terms and
conditions  set  forth  below.

                                   AGREEMENTS

          In  consideration  of  the  premises  and  the mutual agreements which
follow,  the  parties  agree  as  follows:

          1.     Employment.  The  Company  hereby  employs the Employee and the
                 ----------
Employee  hereby accepts employment with the Company on the terms and subject to
the  conditions  set  forth  in  this  Agreement.

          2.     Term.  The  term  of  the Employee's employment hereunder shall
                 ----
commence  on  the date hereof and shall continue until terminated as provided in
section  6  below.

          3.     Duties.  The  Employee  shall  serve  as  the  President of the
                 ------
Company  and will, under the direction of the Company's Chief Executive Officer,
faithfully  and to the best of his ability, perform the duties of such position.
The Employee shall be one of the principal executive officers of the Company and
shall,  subject  to  the  control  of the Company's Board of Directors, have the
normal  duties,  responsibilities  and  authority associated with such position.
The  Employee  shall  also  perform  such additional duties and responsibilities
which  may  from  time  to time be reasonably assigned or delegated by the Chief
Executive  Officer or Board of Directors of the Company.  The Employee agrees to
devote  his  entire  business  time,  effort,  skill and attention to the proper
discharge  of  such  duties  while  employed  by  the  Company.

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          4.     Compensation.  The  Employee  shall  receive  a  base salary of
                 ------------
$250,000  per year, payable in regular and equal monthly installments (the "Base
Salary").  The Employee's Base Salary shall be reviewed annually by the Board of
Directors  of  the  Company  to determine appropriate increases, if any, in such
Base  Salary.

          5.     Fringe  Benefits.
                 ----------------

               (a)     Vacation.  The  Employee shall be entitled to three weeks
                       --------
of  paid  vacation  annually,  increasing  to  four  weeks  after  six  years of
employment by the Company (including employment by the Company prior to the term
of  this  Agreement).  The Employee and the Company shall mutually determine the
time  and  intervals  of  such  vacation.

               (b)     Medical,  Health,  Dental,  Disability and Life Coverage.
                       --------------------------------------------------------
The  Employee  shall  be eligible to participate in any medical, health, dental,
disability  and life insurance policy in effect for the senior management of the
Company  (excluding  Robert Dods, Boyd Meyer and Peter Chung) (collectively, the
"Non-Board Senior Management") or for Vice Presidents (collectively, the "Second
Tier  Management").

               (c)     Incentive  Bonus and Stock Ownership Plans.  The Employee
                       ------------------------------------------
shall  be  entitled  to  participate  in  any incentive bonus or other incentive
compensation plan developed generally for the Non-Board Senior Management or the
Second  Tier  Management of the Company, on a basis consistent with his position
and level of compensation with the Company.  The Employee shall also be entitled
to  participate in any incentive stock option plan or other stock ownership plan
developed  generally  for  the  Non-Board  Senior  Management or the Second Tier
Management  of the Company, on a basis consistent with his position and level of
compensation  with  the  Company.

               (d)     Automobile.  The Company agrees to reimburse the Employee
                       ----------
up  to  $600.00  per  month,  as  such amount may be increased from time to time
consistent  with  the  Company's  reimbursement  policy for the Non-Board Senior
Management  of  the  Company to cover Employee's expenses in connection with his
leasing  of  an automobile.  Additionally, the Company will pay for the gas used
for business purposes.  All maintenance and insurance expense for the automobile
is  the  responsibility  of  the  Employee.

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

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

          6.     Termination.
                 ------------

               (a)     Termination  of  the  Employment  Period.  The Employment
                       ----------------------------------------
Period shall continue until April 30, 2002, unless the parties mutually agree to
extend  the term of this Agreement (such date hereof or such extended date being
referred to herein as the "Expected Completion Date"), (ii) the Employee's death
or  Disability,  (iii)  the  Employee  resigns  or  (iv)  the Board of Directors
determines that termination of Employee's employment is in the best interests of
the  Company.

               (b)     Definitions.
                       -----------

                    (i)     For  purposes  of this Agreement, "Disability" shall
mean  a  physical  or  mental  sickness or any injury which renders the Employee
incapable  of  performing  the  services  required  of him as an employee of the
Company  and  which does or may be expected to continue for more than six months
during  any 12-month period.  In the event Employee shall be able to perform his
usual  and  customary  duties  on  behalf  of  the Company following a period of
disability,  and  does  so  perform  such  duties  or  such  other duties as are
prescribed  by  the  Board of Directors for a period of three continuous months,
any  subsequent  period  of  disability  shall  be  regarded  as a new period of
disability  for  purposes of this Agreement.  The Company and the Employee shall
determine the existence of a Disability and the date upon which it occurred.  In
the  event  of  a  dispute  regarding whether or when a Disability occurred, the
matter  shall  be  referred  to a medical doctor selected by the Company and the
Employee.  In  the  event  of their failure to agree upon such a medical doctor,
the  Company  and  the  Employee shall each select a medical doctor who together
shall  select  a  third  medical  doctor who shall make the determination.  Such
determination  shall  be  conclusive  and  binding  upon  the  parties  hereto.

                    (ii)     For  purposes  of  this Agreement, "Cause" shall be
deemed  to  exist if the Employee shall have (1) violated the terms of section 7
or  section  8 of this Agreement; (2) failed to substantially perform his duties
to  the reasonable satisfaction of the Board of Directors; provided that so long
as  Robert Dods, Boyd Meyer or Peter Chung serves a director of the Company, any
determination  pursuant  to  this

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clause  (2) must be approved by the Requisite Founder Directors; (3) committed a
felony  or  a crime involving moral turpitude; (4) engaged in serious misconduct
which  is  demonstrably injurious to the Company or any of its Subsidiaries; (5)
engaged  in  fraud  or  dishonest  with  respect  to  the  Company or any of its
Subsidiaries  or  made  a  material  misrepresentation  to  the  stockholders or
directors of the Company; or (6) committed acts of negligence in the performance
of  his  duties  which  are  substantially  injurious  to  the  Company.

                    (iii)     For  purposes  of  this  Agreement,  "Good Reason"
shall  mean  (1)  the  material diminution of the Employee's duties set forth in
section  3  above  or (2) the relocation of the offices at which the Employee is
principally  employed to a location which is more than 50 miles from the offices
at  which  the Employee is principally employed as of the date hereof; provided,
that  travel necessary for the performance of the Employee's duties set forth in
section  3  above  shall  not  determine  the  location  where  the  Employee is
"principally  employed."

               (c)     Termination  for  Disability  or  Death.  In the event of
                       ---------------------------------------
termination  for  Disability  or  death,  payments of the Employee's Base Salary
shall  be  made  to the Employee, his designated beneficiary or his estate for a
period  of  six  months after the Termination Date in accordance with the normal
payroll  practices  of  the Company.  During this period, the Company shall also
reimburse the Employee for amounts paid, if any, to continue medical, dental and
health  coverage  pursuant  to the provisions of the Consolidated Omnibus Budget
Reconciliation  Act.  During  this  period,  the  Company  will  also  continue
Employee's life insurance and disability coverage, to the extent permitted under
applicable  policies,  and will pay to the Employee the fringe benefits pursuant
to  section  5  which  have  accrued  prior  to  the  Termination  Date.

               (d)     Termination  by  the  Company  without  Cause  or  by the
                       ---------------------------------------------------------
Employee  for  Good  Reason.  If  (i) the Employment Period is terminated by the
      ---------------------
Company  for  any  reason  other  than  for Cause, Disability or death, (ii) the
Employment  Period is terminated by the Company for what the Company believes is
Cause  or Disability, and it is ultimately determined that the Employment Period
was  terminated  without  Cause  or Disability or (iii) the Employee resigns for
Good  Reason,  the  Employee shall be entitled to receive, as damages for such a
termination, his Base Salary from the Termination Date to the second anniversary
of  the  Termination  Date;  provided,  however,  that  if  such  termination or
resignation  occurs at any time after the occurrence of or in contemplation of a
Change  of  Control,  the  Employee shall be entitled to receive his Base Salary
from  the  Termination  Date  to  the third anniversary of the Termination Date.
Such  payment of Base Salary shall be made in accordance with the normal payroll
practices  of the Company.  During this period, the Company shall also reimburse
the  Employee  for  amounts paid, if any, to continue medical, dental and health
coverage  pursuant  to  the

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<PAGE>
provisions  of  the Consolidated Omnibus Budget Reconciliation Act.  During this
period,  the Company will also continue Employee's life insurance and disability
coverage, to the extent permitted under applicable policies, and will pay to the
Employee  the  fringe benefits pursuant to section 5 which have accrued prior to
the  date  of  termination.

               (e)     Termination  by  the Company for Cause or by the Employee
                       ---------------------------------------------------------
Without Good Reason.  If the Employment Period is terminated by the Company with
 ------------------
Cause  or  as  a  result  of the Employee's resignation without Good Reason, the
Employee shall not be entitled to receive his Base Salary or any fringe benefits
or  bonuses  for  periods  after  the  Termination  Date.

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

          7.     Noncompetition  and Nonsolicitation.  The Employee acknowledges
                 -----------------------------------
and agrees that the contacts and relationships of the Company and its Affiliates
with  its  customers, suppliers, licensors and other business relations are, and
have  been,  established and maintained at great expense and provide the Company
and  its Affiliates with a substantial competitive advantage in conducting their
business.  The Employee acknowledges and agrees that by virtue of the Employee's
employment  with  the  Company,  the  Employee  will  have  unique and extensive
exposure to and personal contact with the Company's customers and licensors, and
that  he will be able to establish a unique relationship with those Persons that
will  enable him, both during and after employment, to unfairly compete with the
Company  and  its Affiliates.  Furthermore, the parties agree that the terms and
conditions  of  the following restrictive covenants are reasonable and necessary
for  the  protection of the business, trade secrets and Confidential Information
(as defined in section 8 below) of the Company and its Affiliates and to prevent
great  damage  or  loss  to the Company and its Affiliates as a result of action
taken by the Employee.  The Employee acknowledges and agrees that the noncompete
restrictions  and  nondisclosure  of  Confidential  Information  restrictions
contained  in  this  Agreement are reasonable and the consideration provided for
herein  is  sufficient  to  fully  and  adequately  compensate  the Employee for
agreeing to such restrictions.  The Employee acknowledges that he could continue
to  actively  pursue  his career and earn sufficient compensation in the same or
similar  business  without  breaching  any of the restrictions contained in this
Agreement.  The  Employee  acknowledges that one business of the Company and its
Affiliates  is  the design, production (including, without limitation, obtaining
the  licenses necessary therefor), marketing and sale of die cast metal replicas
of  vehicles  and  collectible  pewter  figures.

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<PAGE>
               (a)     Noncompetition.  The Employee hereby covenants and agrees
                       --------------
that  during the Employment Period and for two years thereafter (the "Noncompete
Period"),  he  shall  not,  directly or indirectly, either individually or as an
employee,  principal,  agent, partner, shareholder, owner, trustee, beneficiary,
co-venturer,  distributor,  consultant, representative or in any other capacity,
participate in, become associated with, provide assistance to, engage in or have
a  financial  or other interest in any business, activity or enterprise which is
competitive with the Company or any of its Affiliates or any successor or assign
of  the  Company  or  any  of  its Affiliates.  The ownership of less than a one
percent  interest in a corporation whose shares are traded in a recognized stock
exchange  or traded in the over-the-counter market, even though that corporation
may  be a competitor of the Company, shall not be deemed financial participation
in  a  competitor.  If  the  final judgment of a court of competent jurisdiction
declares that any term or provision of this section is invalid or unenforceable,
the  parties  agree  that  the  court  making the determination of invalidity or
unenforceability  shall have the power to reduce the scope, duration, or area of
the  term  or  provision, to delete specific words or phrases, or to replace any
invalid  or  unenforceable  term  or  provision with a term or provision that is
valid  and enforceable and that comes closest to expressing the intention of the
invalid  or  unenforceable  term  or  provision,  and  this  Agreement  shall be
enforceable  as  so modified.  The term "indirectly" as used in this section and
section  8 below is intended to include any acts authorized or directed by or on
behalf  of  the  Employee  or  any  Affiliate  of  the  Employee.

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

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

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

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<PAGE>
                    (iii)     induce  or  attempt  to induce any employee, sales
representative,  consultant  or  other  agent  of  the  Company  or  any  of its
Affiliates  to  terminate  his  relationship  or  breach  any agreement with the
Company  or  any  of  its  Affiliates;  or

                    (iv)     hire  any  person  who  was  an  employee,  sales
representative,  consultant  or  other  agent  of  the  Company  or  any  of its
Affiliates  at  any  time  during  the  Noncompete  Period.

          8.     Confidential Information.  The Employee acknowledges and agrees
                 ------------------------
that  the  customers,  business  connections,  customer  lists,  procedures,
operations,  techniques, and other aspects of and information about the business
of  the  Company  and  its  Affiliates  (the  "Confidential  Information")  are
established  at  great  expense  and  protected  as confidential information and
provide  the Company and its Affiliates with a substantial competitive advantage
in conducting their business.  The Employee further acknowledges and agrees that
by  virtue  of  his  past  employment  with  the  Company,  and by virtue of his
employment  with  the Company, he has had access to and will have access to, and
has  been  entrusted  with and will be entrusted with, Confidential Information,
and  that  the  Company would suffer great loss and injury if the Employee would
disclose  this information or use in a manner not specifically authorized by the
Company.  Therefore,  the  Employee agrees that during the Employment Period and
for  five  years  thereafter,  he  will  not,  directly  or  indirectly,  either
individually  or  as  an  employee,  agent, partner, shareholder, owner trustee,
beneficiary,  co-venturer  distributor, consultant or in any other capacity, use
or  disclose  or  cause  to  be  used or disclosed any Confidential Information,
unless and to the extent that any such information become generally known to and
available for use by the public other than as a result of the Employee's acts or
omissions.  The  Employee shall deliver to the Company at the termination of the
Employment  Period, or at any other time the Company may request, all memoranda,
notes, plans, records, reports, computer tapes, printouts and software and other
documents  and  data  (and  copies  thereof)  relating  to  the  Confidential
Information,  Work  Product (as defined below) or the business of the Company or
any  of its Affiliates which he may then possess or have under his control.  The
Employee acknowledges and agrees that all inventions, innovations, improvements,
developments,  methods,  designs, analyses, drawings, reports and all similar or
related information (whether or not patentable) which relate to the Company's or
any of its Affiliate' actual or anticipated business research and development or
existing  or  future  products or services and which are conceived, developed or
made  by  the  Employee  while employed by the Company and its Affiliates ("Work
Product")  belong  to  the  Company  or  such  Affiliate,  as  the  case may be.

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

          10.     Definition.
                  ----------

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

          "Change  of  Control"  means:
           -------------------

               (a)     The  acquisition  by  any  individual,  entity  or  group
(within  the  meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act  of  1934,  as  amended  (the  "Exchange  Act"))  (a "Person") of beneficial
ownership  (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of  20%  or  more  of  either (i) the then outstanding shares of common stock of
Parent (the "Outstanding Common Stock") or (ii) the combined voting power of the
then  outstanding  voting securities of Parent entitled to vote generally in the
election  of directors (the "Outstanding Voting Securities"); provided, however,
that  the  following acquisitions shall not constitute a Change of Control:  (i)
any  acquisition directly from Parent, (ii) any acquisition by Parent, (iii) any
acquisition  by  any  employee  benefit  plan  (or  related  trust) sponsored or
maintained  by  Parent  or  any  corporation  controlled  by  Parent or (iv) any
acquisition  by  any  corporation  pursuant to a transaction which complies with
clauses  (i),  (ii)  and  (iii)  of  subsection  (c)  of  this  definition;  or

               (b)     Individuals  who,  as  of the date hereof, constitute the
Board  of  Directors  of  Parent (the "Incumbent Board") cease for any reason to
constitute  at  least  a majority of the Board of Directors of Parent; provided,
however,  that  any individual becoming a director subsequent to the date hereof
whose  election,  or  nomination  for  election  by  Parent's  stockholders, was
approved  by  a vote of at least a majority of the directors then comprising the
Incumbent  Board  shall be considered as though such individual were a member of
the  Incumbent Board, but excluding, for this purpose, any such individual whose
initial  assumption  of  office  occurs  as  a result of an actual or threatened
election  contest  with respect to the election or removal of directors or other
actual  or  threatened  solicitation of proxies or consents by or on behalf of a
Person  other  than  the  Board  of  Directors  of  Parent;  or

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<PAGE>
               (c)     Approval  by  the  stockholders  of  Parent  of  a
reorganization,  merger  or  consolidation  (a  "Business Combination"), in each
case,  unless, following such Business Combination, (i) all or substantially all
of the individuals and entities who were the beneficial owners, respectively, of
the Outstanding Common Stock and Outstanding Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than
60%  of,  respectively,  the  then  outstanding  shares  of common stock and the
combined voting power of the then outstanding voting securities entitled to vote
generally  in  the election of directors, as the case may be, of the corporation
resulting  from  such  Business  Combination  (including,  without limitation, a
corporation  which  as  a  result of such transaction owns Parent through one or
more  subsidiaries)  in  substantially  the same proportions as their ownership,
immediately  prior  to such Business Combination of the Outstanding Common Stock
and Outstanding Voting Securities, as the case may be, (ii) no Person (excluding
any  employee  benefit  plan  (or  related  trust) of Parent or such corporation
resulting  from  such  Business  Combination)  beneficially  owns,  directly  or
indirectly,  20% or more of, respectively, the then outstanding shares of common
stock  of  the  corporation  resulting  from  such  Business  Combination or the
combined  voting  power  of  the  then  outstanding  voting  securities  of such
corporation  except  to  the  extent  that  such  ownership existed prior to the
Business  Combination  and (iii) at least a majority of the members of the board
of  directors  of  the corporation resulting from such Business Combination were
members  of  the  Incumbent  Board  at  the time of the execution of the initial
agreement,  or  of the action of the Board of Directors of Parent, providing for
such  Business  Combination;  or

               (d)     Approval  by the stockholders of Parent of (i) a complete
liquidation  or  dissolution  of Parent or (ii) the sale or other disposition of
all  or  substantially all of the assets of Parent, other than to a corporation,
with  respect  to  which following such sale or other disposition, [a] more than
60%  of,  respectively,  the  then  outstanding  shares  of common stock of such
corporation  and  the  combined  voting  power  of  the  then outstanding voting
securities  of  such  corporation  entitled to vote generally in the election of
directors  is  then  beneficially  owned,  directly  or  indirectly,  by  all or
substantially  all  of  the  individuals  and  entities  who were the beneficial
owners,  respectively,  of  the  Outstanding Common Stock and Outstanding Voting
Securities  immediately prior to such sale or other disposition in substantially
the  same proportion as their ownership, immediately prior to such sale or other
disposition,  of the Outstanding Common Stock and Outstanding Voting Securities,
as  the  case  may  be, [b] less than 20% of, respectively, the then outstanding
shares  of common stock of such corporation and the combined voting power of the
then  outstanding  voting  securities  of  such  corporation  entitled  to  vote
generally  in  the election of directors is then beneficially owned, directly or
indirectly,  by  any  Person  (excluding  any  employee benefit plan (or related
trust)  of  Parent  or  such corporation), except to the extent that such Person
owned  20%  or  more  of  the  Outstanding  Common  Stock  or Outstanding Voting
Securities  prior  to  the  sale  or

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<PAGE>
disposition,  and  [c]  at  least  a  majority  of  the  members of the board of
directors of such corporation were members of the Incumbent Board at the time of
the  execution  of  the  initial  agreement,  or  of  the action of the Board of
Directors  of  Parent, providing for such sale or other disposition of assets of
Parent  or  were  elected,  appointed  or nominated by the Board of Directors of
Parent.

          "Founder  Director" at any time means Robert Dods, Boyd Meyer or Peter
           -----------------
Chung  if  at  such  time  such individual is a member of the Company's Board of
Directors.

          "Person"  means  any  individual,  partnership,  corporation,  limited
           ------
liability  company,  association,  joint  stock  company,  trust, joint venture,
unincorporated  organization  and  any  governmental  entity  or any department,
agency  or  political  subdivision  thereof.

          "Requisite Founder Directors" at any time means (i) if there are three
           ---------------------------
Founder Directors at such time, any two Founder Directors; (ii) if there are two
Founder  Directors  at such time, any Founder Director; or (iii) if there is one
Founder  Director  at  such  time,  such  Founder  Director.

          "Subsidiary"  means,  with  respect  to  any  Person, any corporation,
           ----------
partnership, association or other business entity of which (i) if a corporation,
a majority of the total voting power of shares of stock entitled (without regard
to  the  occurrence  of  any  contingency) to vote in the election of directors,
managers  or  trustees  thereof  is at the time owned or controlled, directly or
indirectly,  by  that  Person  or  one or more of the other Subsidiaries of that
Person  or a combination thereof, or (ii) if a partnership, association or other
business  entity,  a  majority  of  the  partnership  or other similar ownership
interest  thereof is at the time owned or controlled, directly or indirectly, by
any  Person or one or more Subsidiaries of that Person or a combination thereof.
For  purposes  hereof,  a  Person  or Persons shall be deemed to have a majority
ownership  interest  in  a  partnership, association or other business entity if
such Person or Persons shall be allocated a majority of partnership, association
or  other  business  entity  gains or losses or shall be or control any managing
director  or  general partner of such partnership, association or other business
entity.

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

                                       10
<PAGE>
          12.     Waiver.  The  failure  of either party to insist in any one or
                  ------
more  instances,  upon  performance of the terms or conditions of this Agreement
shall  not  be  construed  as  a waiver or a relinquishment of any right granted
hereunder  or of the future performance of any such term, covenant or condition.

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

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

          15.     Complete  Agreement.  Except  as otherwise expressly set forth
                  -------------------
herein,  this  document  embodies the complete agreement and understanding among
the  parties hereto with respect to the subject matter hereof and supersedes and
preempts any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof in
any  way.  Without  limiting  the  generality  of  the foregoing, this Agreement
supersedes  the  Employment  Agreement,  dated as of April 30, 1996, between the
Company  and  the  Employee  (together  with  all amendments thereto, the "Prior
Agreement").  The  Prior Agreement is hereby terminated and shall cease to be of
any  further  force  or  effect.

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

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

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

                                       11
<PAGE>
          IN  WITNESS  WHEREOF,  the  parties  have  executed  or  caused  this
Employment  Agreement  to  be  executed  as  of  the  date  first above written.

                              RACING  CHAMPIONS CORPORATION

                              By:/s/    Robert  E.  Dods
                                 -----------------------
                                 Its:  Chairman  and  CEO
                                     --------------------

                                 /s/   Peter  J.  Henseler
                                 ------------------------------
                                      Peter  J.  Henseler

                                       12AMENDMENT TO EMPLOYMENT AGREEMENT

This  amendment  is made and entered into as of the 19th day of September, 2000,
by  and  between  Racing Champions, Inc., an Illinois corporation, and Robert E.
Dods.  The parties wish to amend paragraph 4 of the Employment Agreement made as
of  the  30th  day  of  April,  1999,  to  the  following-

'4.  Compensation.  As of July 1, 2000, the Employee shall receive a base salary
     ------------
of  $350,000  per  year, . . .'

In  witness  whereof,  the  parties  have executed this amendment as of the date
first  above  written,  to  be  effective  as  of  that  date.

                              Racing  Champions,  Inc.

                              By  /s/  Boyd  Meyer
                                  ----------------
                                   Boyd  Meyer,  Vice  Chairman

                              By  /s/  Robert  E.  Dods
                                  ---------------------
                                   Robert  E.  Dods

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]