<PAGE>
                                                                    EXHIBIT 10.9

                               AMENDMENT NO. 1 TO
                              EMPLOYMENT AGREEMENT
                                 GREG A. TUNNEY

      THIS AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT ("Agreement") made and
entered into as of the 1st day of September, 2001 by and between DANIEL GREEN
COMPANY, now PHOENIX FOOTWEAR GROUP, INC. ("Employer" or the "Company"), and
GREG A. TUNNEY ("Employee" or "Tunney").

                                    RECITALS

      WHEREAS, the Company has relocated its principal office to Carlsbad,
California and has requested Tunney to relocate his residence to the same area;
and

      WHEREAS, Tunney and the Company wish to continue his employment under the
Agreement as herein amended (the "Amended Agreement");

      NOW, THEREFORE, in consideration of the premises and the covenants
contained herein, the parties agree as follows, the section numbers coinciding
with the sections of the Agreement:

      4. Base Salary, Expenses and Benefits. Section 4 of the Agreement is
hereby amended to replace the first sentence thereof with the following:

      The Company shall pay Tunney as compensation for his services an annual
      base salary of not less than $220,000 commencing March 1, 2003, and not
      less than $240,000 commencing on the date when Tunney reports for work at
      the Company's offices in Carlsbad, California after having relocated his
      principal residence to that area, payable in accordance with the Company's
      usual payment practices.

And to add a subparagraph 4(c) as follows:

      (c)   Tunney shall participate in such executive bonus incentive plans as
            may be established from time to time by the Board of Directors.

      5. This Section 5 shall be deleted in its entirety.

      7. Termination of Employment.

            (d) Without Cause. Section 4(d) of the Agreement is hereby amended
to read in its entirety as follows:

            Tunney's employment may be terminated by the Company at any time
            without cause, effective upon one (1) month written notice of
            termination and the Company shall be obligated to continue to pay
            Tunney as severance an amount
<PAGE>
            equal to Tunney's salary and benefits (other than incentive
            compensation amounts) for 18 months, payable under the same terms as
            provided while Tunney was an employee. Should Tunney's employment be
            terminated by the Company without cause in connection with a "change
            of control," the Company shall be obligated to pay to Tunney within
            30 days after the occurrence thereof, as severance and in lieu of
            any and all other payments due under the Agreement (except such as
            have accrued to the date of termination) an amount equal to two (2)
            times the "base amount" paid to Tunney in the "base period." The
            terms "base amount" and "base period" shall have the meaning given
            to them in Internal Revenue Code ("Code") Section 280G(b)(3)(A) and
            Section 280G(d)(2), respectively, and the Regulations enacted
            thereunder. In no event shall the aggregate amount payable to Tunney
            hereunder be such as to constitute an Excess Parachute Payment as
            that term is used in Section 280G(b) of the Code. In the event the
            aggregate payments due hereunder constitute an Excess Parachute
            Payment, such payments as selected by Tunney shall be reduced or
            negated in sufficient amount as to render the aggregate of the
            remaining payments not an Excess Parachute Payment. A "change of
            control" shall mean the occurrence of an event which would be
            required to be reported in response to Item 6(e) of Schedule 14A of
            Regulation 14A promulgated under the Securities Exchange Act of
            1934, as amended.

      9. Notices. This section is amended to provide that the address for Tunney
shall be that which he provides to the Company upon execution of this Amendment
No. 1 and upon relocation of his principal residence. The address of the Company
shall be as follows:

                          Phoenix Footwear Group, Inc.
                          5759 Fleet Street
                          Carlsbad, California 92008
                          Attention: Chairman

      10. Governing Law. This section is replaced in its entirety with the
following:

            This Agreement shall be interpreted in accordance with and governed
            by the laws of Delaware, without regard to conflict of laws.

            (a)   Any controversy or claim arising out of or relating to this
                  Agreement, shall be settled by arbitration in accordance with
                  the Commercial Arbitration Rules of the American Arbitration
                  Association (the "Rules") in effect at the time demand for
                  arbitration is made by any party. A single arbitrator
                  acceptable to both parties shall determine the matter. In the
                  event that the single arbitrator is not agreed upon, he or she
                  shall be named by the American Arbitration Association.
                  Arbitration shall occur in San Diego, California. The award
                  made by the arbitrator shall be final and binding and judgment
                  may be entered in any court of law having competent
                  jurisdiction. The prevailing party shall be entitled to an
                  award of reasonable attorney's fees, costs and expenses
                  incurred in connection with the arbitration and any judicial
                  proceedings related thereto.
<PAGE>
            (b)   In the event of any breach or threatened breach by Tunney of
                  any of the provisions of Section 6 of the Agreement, the
                  Company shall be entitled to injunctive relief restraining
                  Tunney or any business, firm, partnership, individual,
                  corporation or entity participating in such breach or
                  threatened breach. Nothing herein shall be construed as
                  prohibiting the Company from pursuing any other remedies
                  available at law or in equity for such breach or threatened
                  breach, including the recovery of damages and the immediate
                  termination of the employment of Employee hereunder. If any of
                  the provisions of or covenants contained in Section 6 are
                  hereafter construed to be invalid or unenforceable in a
                  particular jurisdiction, the same shall not affect the
                  remainder of the provisions or the enforceability thereof in
                  that jurisdiction, which shall be given full effect, without
                  regard to the invalidity or unenforceability thereof in a
                  particular jurisdiction because of the duration and/or scope
                  of such provision or covenant in that jurisdiction and, in its
                  reduced form, said provision or covenant shall be enforceable.
                  In all other jurisdictions Section 6 shall at all times remain
                  in full force and effect. The obligations under this Section 6
                  shall survive any termination of this Agreement.

      16. Entire Agreement. This section is amended to read in its entirety as
follows:

      The Amended Agreement supersedes any and all prior discussions,
      negotiations, employment and similar agreements, written and/or oral
      between the Company and Tunney. This Amendment No. 1 may be executed in
      counterparts, each of which shall be deemed to be an original, and all of
      which together shall constitute Amendment No. 1 to the Agreement. This
      Amendment No. 1 shall not become effective until completely conforming
      counterparts have been signed and delivered by each of the parties hereto.

      IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1
to the Agreement the day and year first above set forth.

                                    /s/ Greg Alan Tunney
                                    ------------------------------------------
                                    Greg Alan Tunney

                                    PHOENIX FOOTWEAR GROUP, INC.


                                    By:   /s/ James R. Riedman
                                       ---------------------------------------
                                          James R. Riedman, Chairman & CEO