EMPLOYMENT AGREEMENT


      AGREEMENT made June 29, 1999, between ENESCO GROUP, INC., a
Massachusetts corporation (the "Company"), and Jeffrey A. Hutsell of 775
Summit Drive, Deerfield, Illinois ("Hutsell").

      NOW, THEREFORE, in consideration of the mutual undertakings set forth
below, the parties agree as follows:

1.    Employment.  The Company hereby employs Hutsell, and Hutsell agrees to
      be employed by the Company, upon the terms and subject to the
      conditions hereinafter set forth effective forthwith. Unless sooner
      terminated as hereinafter provided, the initial term of this
      employment shall be three (3)years commencing as of the date first
      written above, with an automatic extension of one day at the end of
      each day thereafter while Hutsell remains employed by the Company (so
      that the remaining term at the end of every day thereafter shall be
      three (3) years).

2.    Duties.  Hutsell shall be employed as President and Chief Executive
      Officer of the Company. He shall continue to serve as a member of its
      Board of Directors for the balance of his current term and thereafter
      as re-elected by the Shareholders of the Company. During his
      employment, Hutsell agrees to faithfully and diligently perform the
      duties of his office on a full time basis in the best interests of
      the Company. Nothing herein shall prohibit Hutsell from pursuing
      personal investments provided that such activities do not interfere
      with the performance of Hutsell's duties hereunder. Although it is
      contemplated that Hutsell will undertake some travel as part of
      performing the foregoing duties, Hutsell's principal place of
      employment shall be in the Itasca, Illinois area.

3.    Compensation.  While employed by the Company during the term of this
      agreement, Hutsell will receive the following compensation for
      services:

        (a)    Base Salary.  A base annual salary, payable in equal bi-weekly
        installments less applicable deductions, of $495,000.00 (Four
        Hundred Ninety-Five Thousand Dollars). The base salary shall be
        subject to review and adjustment annually by the Board of Directors
        acting in its sole discretion provided that the base salary shall
        not be less than $495,000.00 during the term of this agreement.

        (b)    Annual Bonus.  Hutsell shall be entitled to participate in the
        Management Incentive Plan maintained by the Company with a target
        bonus of minimally 65% of his annual base salary. His objectives
        shall be determined under the usual procedures of such Plan.

        (c)    Other Benefits.  Hutsell shall be entitled to participate in
        all standard insurance and other benefit programs maintained by the
        Company for its employees and directors at not less than the
        current coverage and benefit amounts in the case of the life and
        disability insurance, annual supplemental medical and financial
        planning bonuses and monthly automobile allowance(subject to
        increase based on the periodic review by the Company's Treasury
        Department). The Company shall continue coverage for both Hutsell
        and his spouse under the Company's Health Plan after retirement
        until (in the case of each of them) the earlier of their 65th
        birthdays, eligibility for Medicare or death. However, in the case
        of the death of Hutsell before his 65th birthday or eligibility for
        Medicare, coverage shall be continued for his spouse until the
        earlier of her 65th birthday, eligibility for Medicare or death.

        (d)    Stock Options.  Hutsell shall be entitled to participate in
        stock options under the Company's Plans offered to him in respect
        of Company shares from time to time.

        (e)    Expenses. The Company shall reimburse Hutsell for all
        ordinary and necessary expenses paid or incurred by him in the
        course of the performance of his duties pursuant to this agreement,
        subject to the Company's requirements with respect to the manner of
        reporting such expenses.

4.    Termination of Employment.

        (a)  Termination by the Company for Cause.  The Company may
        terminate this agreement and Hutsell's employment hereunder by
        giving ten (10) days' prior written notice to Hutsell upon its
        determination of:

             (i) Dishonesty or willful misconduct involving moral turpitude
             by Hutsell in the performance of his duties under this
             agreement (the term "misconduct" includes, without limitation,
             any material and willful breach by Hutsell of the terms of
             Paragraph 5 hereof), or

             (ii) Material disregard of, and material failure to comply
             with, the written instructions, policies or guidelines
             established by the Company's Board of Directors, or material
             failure to perform his duties hereunder.

        In the event of termination of this agreement under this Paragraph
        4(a), Hutsell shall be entitled to all amounts due him under
        Paragraph 3 accrued to the date of termination, excluding the bonus
        for the fractional portion of the year of termination under
        Paragraph 3(b) above.

        (b)  Termination Upon Death of Hutsell.  Upon the death of Hutsell
        during the term of this agreement, his estate shall be entitled to
        receive all amounts due under Paragraph 3 accrued to the date of
        death, including, without limitation, the actual bonus pro-rated
        for the fractional portion of the year of death.

        (c)  Termination Upon Total Disability.  If, at any time during the
        term of this agreement, Hutsell becomes unable to perform his
        duties hereunder due to illness or physical or mental incapacity
        for a continuous period of one hundred and eighty (180) days, the
        Company, may, at or after the expiration of such one hundred and
        eighty (180) day period and provided that Hutsell's incapacity is
        then continuing, elect to terminate Hutsell's employment under this
        agreement. During such one hundred and eighty (180) day period and
        until the Company so terminates his employment, Hutsell shall be
        entitled to all amounts payable or accrued under Paragraph 3 above
        until the date of termination, including, without limitation, the
        actual bonus prorated for the fractional portion of the year of
        termination.

        (d)  Other Benefits Unaffected.  Life or disability insurance
        benefits which may otherwise be payable are not affected by the
        provisions of Paragraphs 4(b) and 4(c) above.

        (e)  Termination by Company Other Than For Cause or Total Disability.
        If the Company shall terminate Hutsell's employment other than for
        cause under Paragraph 4(a) above or for Total Disability under
        Paragraph 4(c) above, and his employment has not terminated by
        reason of his death under Paragraph 4(b) above, Hutsell shall
        receive (at the times such payments would have been made had there
        not been a termination) all amounts that would otherwise have been
        paid to him, or benefits provided, for the remaining term of this
        agreement under Paragraphs 3(a), 3(b), and 3(c), (except that the
        Health Plan coverage provided under Paragraph 3(c) shall continue
        for the duration as required in that Paragraph 3(c)) had Hutsell's
        employment not been terminated, except that no payments will be
        made for periods following his death. For purposes of the bonus
        payment made for any year under this provision, the target bonus
        shall be based on the Profit Plan objectives for such year and any
        bonus shall be determined based on the corporate performance versus
        those Plan objectives. In return for the payments to be made under
        this subparagraph (e), Hutsell agrees to execute and deliver to the
        Company a Release in the form as deemed appropriate or necessary by
        the Company.

        (f) Termination by Hutsell. Hutsell may terminate this agreement
        and his employment hereunder at any time by giving six (6) months'
        prior written notice to the Company or such lesser notice period as
        the Company may accept. In the event of a termination of this
        agreement under this Paragraph 4(f), Hutsell shall be entitled to
        all amounts due to him under Paragraph 3 to the date of
        termination, including, without limitation, the actual bonus
        pro-rated for the fractional portion of the year of termination.

        (g) Change in Control. The amount payable to Hutsell under
        Paragraph 4(e) of this agreement shall be reduced on a
        proportionate basis (over the remaining term of this agreement) by
        any amount paid to Hutsell under the Change in Control Agreement
        between Hutsell and the Company dated June 15, 1998, without giving
        effect to the Gross-Up Payment under Paragraph 1(c) thereof for
        this purpose.

        (h) Survival of Rights and Obligations.  In the event of termination
        of Hutsell's employment under either Paragraphs 4(a), 4(b), 4(e) or
        4(f), then, except to the extent specifically provided for in
        Paragraphs 3, 4, 5 and 6, neither party shall have any right,
        claim, or action against, or obligation or responsibility to, the
        other party arising out of, or resulting from, such termination of
        employment.

5.    Confidential Information, Covenant Not to Compete and
      Non-Solicitation.

        (a) Hutsell agrees that he will not use or disclose to anyone
        (other than for the benefit of the Company) either during the term
        of his employment or at any time thereafter, any Confidential
        Information obtained by him or made known to him while employed by
        the Company, and will make all reasonable, necessary and
        appropriate efforts to safeguard all such Confidential Information
        from disclosure to anyone other than as permitted hereby. As used
        herein "Confidential Information" includes, but is not limited to,
        trade secrets, business and sales policies, methods, plans and
        customer lists, including any lists written or other of such
        persons or entities, whether of the Company or any other
        organization associated or affiliated with or owned by or owning
        the Company, but shall not include information which becomes
        generally available to the public other than as a result of
        disclosure by Hutsell's act or default or the acts or defaults of
        Hutsell's agents or representatives.

        (b) In consideration of Hutsell's continued employment in
        accordance with the terms of this agreement, Hutsell agrees that he
        will not, during the term hereof and for the period ending one (1)
        year (or such longer period as he is paid hereunder) from the date
        he ceases to be employed by the Company, either alone or in
        conjunction with any individual, firm, corporation, association or
        other entity (except for the benefit of the Company), either as
        principal, agent, officer, employee, director, investor,
        consultant, shareholder, associate or in any other capacity
        whatsoever:

           (i) carry on, participate in, or be engaged in, concerned with,
           or interested in, directly or indirectly, any undertaking which
           is in whole or in part competitive with any of the businesses
           carried on by the Company within the respective territories in
           which such businesses are then carried on (except for any equity
           share investment in a public company whose shares are listed on
           a recognized stock exchange where such share investment does not
           in the aggregate exceed 5% of the issued equity shares of such
           company);

           (ii) attempt to solicit any suppliers, customers, employees or
           independent dealers away from the Company;

           (iii) carry on, participate in, or be engaged in, concerned
           with, or interested in, directly or indirectly, any undertaking
           which bears any name similar to that of the Company; or

           (iv) take any act as a result of which the relations between the
           Company and its suppliers, customers, employees or others may be
           impaired or which may otherwise be detrimental to the business
           of the Company.

        Competition shall be deemed to include (i) any dealings with the
        Company's employees or independent dealers, and (ii) the use in any
        way of the Company's customer or mailing lists. Competition shall
        be deemed to exclude employment by another company or enterprise
        whose principal business activity is not the creation, making or
        manufacturing of gifts, giftware or collectibles. The reference to
        Company in this Paragraph 5 shall include all subsidiaries and
        affiliated entities of the Company. Hutsell agrees that the remedy
        at law for breach by him of the foregoing covenant will be
        inadequate and that the Company shall be entitled to injunctive
        relief.

6.    Discoveries.  Hutsell will promptly disclose in writing to the Company
      when requested, each improvement, discovery, idea and invention
      relating to the business of the Company made or conceived by him from
      and after the date hereof either alone or in conjunction with others
      and while employed by the Company or within one (1) year after the
      termination of such employment if such improvement, discovery, idea
      or invention then results from or was suggested by such employment
      (whether or not patentable, whether or not made or conceived (i) at
      the request of or upon the suggestion of the Company, (ii) during his
      usual hours of work, or (iii) in or about the premises of the Company
      and whether or not prior or subsequent to the execution hereof). He
      will not disclose any such improvement, discovery, idea or invention
      to any person, except the Company. Each such improvement, discovery,
      idea and invention shall be the sole and exclusive property of, and
      is hereby assigned to, the Company, and at the request of the
      Company, Hutsell will assist and cooperate with the Company and any
      person or persons from time to time designated by the Company to
      obtain for the Company the grant of any letters patent in the United
      States and/or such other country or countries as may be designated by
      the Company, covering any such improvement, discovery, idea or
      invention and will, in connection therewith, execute such
      applications, statements, assignments or other documents, furnish
      such information and data and take all such other actions (including,
      without limitation, the giving of testimony) as the Company may from
      time to time reasonably request.

7.    Applicable Law.  This agreement shall be construed in accordance with
      the laws of the State of Illinois.

8.    Notices.  Any notice or other writing required or permitted to be given
      hereunder or for the purposes hereof (hereinafter in this Paragraph 8
      called a "notice") to any party shall be sufficiently given if
      delivered personally, if sent by prepaid registered mail or if
      transmitted by facsimile machine or other form of recorded
      communication tested prior to transmission to such party:

          (a)   in the case of notice to Hutsell to him at:

                         775 Summit Drive
                         Deerfield, Illinois 60015

          (b) in the case of a notice to the Company to it at:

                         Enesco Group, Inc.
                         225 Windsor Drive
                         Itasca, Illinois 60143

                         Attention: General Counsel

      or at such other address as the party to whom such writing is to be
      given shall have last notified the party giving the same in the
      manner provided in this paragraph. Any notice delivered to the party
      to whom it is addressed as hereinbefore provided shall be deemed to
      have been given and received on the day it is so delivered at such
      address, provided that if such day is not a Business Day (Monday
      through Friday excluding federal and state holidays) then the notice
      shall be deemed to have been given and received on the Business Day
      next following such day. Any notice mailed as aforesaid shall be
      deemed to have been given and received on the seventh Business Day
      next following the date of its mailing. Any notice transmitted by
      telex or other form of recorded communication shall be deemed given
      and received on the first Business Day after its transmission.

9.    Entirety of Agreement.  This agreement constitutes the entire agreement
      between the parties and no amendment, waiver, alteration or
      modification of this agreement shall be valid unless in each instance
      such amendment, waiver, alteration or modification is agreed to in
      writing by all of the parties.

10.   Assignment.  Neither party may assign this agreement or any of the
      rights or duties hereunder, except that the Company must assign its
      rights, obligations and responsibilities under this agreement to (i)
      a successor or assignee of all or substantially all of its business
      or assets, or (ii) any corporation with which it merges or with which
      it may be consolidated. Subject to the foregoing, this agreement
      shall inure to the benefit of and be binding upon the Company and
      Hutsell and their respective successors, assigns, heirs and legal
      representatives.

11.   Invalidity of any Provision. If any provision of this agreement or the
      application thereof to any party or circumstance is held invalid or
      unenforceable, the remaining provisions of this agreement and the
      application of such provisions to the other party or circumstances
      will not be affected thereby, the provisions of this agreement being
      severable in any such instance.

            IN WITNESS WHEREOF, the parties have executed this Agreement.



                                    ENESCO GROUP, INC.


                           By:      /s/ John F. Cauley
                                    ------------------------------
                                    John F. Cauley
                                    Chairman of the Board



                                    /s/ Jeffrey A. Hutsell
                                    ------------------------------
                                    Jeffrey A. Hutsell