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NS GROUP, INC.               DECEMBER 31, 2003 FORM 10-K            EXHIBIT 10.7

                      FORM OF SALARY CONTINUATION AGREEMENT

         THIS AGREEMENT is entered into between NS Group, Inc., a corporation
having its corporate office in Newport, Kentucky ("Company"), and
____________________. ("Participant") effective ________, 2000.

                                   WITNESSETH:

         WHEREAS, Participant is employed by the Company, and by reason thereof,
has acquired experience and knowledge of considerable value to the Company; and

         WHEREAS, the Company wishes to offer an inducement to Participant to
remain in its employ by compensating him beyond his regular salary for services
which he had rendered or will hereafter render; and

         WHEREAS, Participant is willing to continue in the employ of the
Company until his retirement, or until it is mutually agreed by both the Company
and Participant that his services are no longer necessary.

         NOW, THEREFORE, it is mutually agreed as follows:

         1.       As of the date of this Agreement, [AND SUBJECT TO THE TERMS OF
THE EMPLOYMENT AGREEMENT, DATED ___________, ______, AND ANY SUBSEQUENT OR
SUCCESSOR AGREEMENT BETWEEN PARTICIPANT AND THE COMPANY ("EMPLOYMENT
AGREEMENT"),] Participant is employed by the Company, and Participant hereby
agrees to continue such employment upon the terms and conditions set forth in
this Agreement. [EXCEPT AS PROVIDED FOR IN THE EMPLOYMENT AGREEMENT,]
Participant is an "at will" employee of the Company and this Agreement does not
impose any obligation for the employment relationship to continue for a
specified period of time.

         2.       As compensation for his services, the Company hereby agrees to
pay Participant and Participant hereby agrees to accept from the Company, a
yearly salary to be determined by the Board of Directors of the Company.

         3.       Subject to the limitations set forth in Sections 9 and 11
below, in the event that Participant retires from active employment with the
Company after attaining age 62, the Company shall pay Participant a monthly
amount for life commencing on the first day of the month following the date of
such retirement equal to fifty-percent (50%) of the Participant's monthly base
salary for the month prior to the month in which the Participant retires from
active employment with the Company (the "Monthly Payment"); provided, however,
that such Monthly Payment shall be no less than one-twenty-fourth (1/24th) of
the Participant's annualized base salary for the calendar year immediately
preceding the Participant's retirement from active employment with the Company.
The Company may, in its sole discretion, provide that

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Participant may begin receiving the benefits provided for in this Agreement
before attaining age 62, subject to such actuarial reductions as the Company may
deem appropriate to reflect the early commencement of benefits.

         4.       In the event that Participant dies (a) while in the active
employ of the Company, or (b) after becoming fully vested in the benefits
provided pursuant to this Agreement because of either a permanent disability or
a Change of Control (as provided for in Sections 6 and 7) but prior to the
commencement of payments hereunder, Participant's spouse at the time of death
shall be entitled to receive Monthly Payments commencing on the first day of the
month following Participant's death and ending on the earlier of (i) the first
day of the month during which the spouse dies and (ii) the date on which the
120th Monthly Payment is made. In the event that Participant dies (and is
survived by a spouse) while receiving Monthly Payments hereunder but prior to
receipt of at least 120 such payments, the spouse shall be entitled to continue
receiving such payments until the earlier of (i) the first day of the month
during which the spouse dies and (ii) the date on which the 120th Monthly
Payment is made.

         5.       Upon retirement from the Company at or following attainment of
age 62, continued health insurance coverage shall be provided for Participant
and the person (if any) who is his spouse at the time of retirement. The
coverage will be the same as that which may be provided from time to time to
active employees, and will be paid for by the Company. Such coverage will
continue for Participant until Participant reaches the age at which he is
eligible for Medicare and for Participant's spouse until she reaches the age at
which she is eligible for Medicare; provided, however, for any period during
which the Participant or the Participant's spouse is eligible for any other
group health plan, as an employee or otherwise, the health insurance coverage
provided under this Section shall be the secondary plan and the group health
plan under which the Participant or Participant's spouse is eligible shall be
the primary plan.

         6.       In the event that Participant becomes permanently disabled (as
defined in the Company's long-term disability plan which covers the Participant)
while in the active employ of the Company, Participant shall become fully vested
in the benefits provided pursuant to Section 3 of this Agreement, and shall
begin receiving such benefits at the later of age 62 or when long-term
disability benefits are no longer payable to Participant.

         7.       In the event of a Change of Control (as defined herein) of the
Company while Participant is in the active employ of the Company, Participant
shall become fully vested in the benefits provided pursuant to Section 3 of this
Agreement. Participant must wait until age 62 to begin receiving these benefits.
Change of Control shall mean the happening of any of the following:

                  (a)      the direct or indirect sale, lease, exchange or other
         transfer of all or substantially all of the assets of the Company to
         any Person (i.e., individual, corporation, partnership, joint venture,
         association, joint-stock company, trust, unincorporated organization,
         government or any agency or political subdivision thereof or any other
         entity within the meaning of Section 13(d)(3) of 14(d)(2) of the
         Securities Exchange Act of 1934) or entity or group of Persons or
         entities acting in concert as a partnership or other group ("Group of
         Persons") other than a Person described in clause (i) of the

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         definition of Affiliate, as set forth herein. Affiliate of any
         specified Person means: (i) any other Person which, directly or
         indirectly, is in control of, is controlled by or is under common
         control with such specified Person or (ii) any other Person who is a
         director or officer (a) of such specified Person, (b) of any subsidiary
         of such specified Person or (c) of any Person described in clause (i)
         above or (iii) any Person in which such person has, directly or
         indirectly, a 5% or greater voting or economic interest or the power to
         control. Control of a Person means the power, direct or indirect, to
         direct or cause the direction of the management or policies of such
         Person whether through the ownership of voting securities, or by
         contract or otherwise; and the terms "controlling" and "controlled"
         have meanings correlative to the foregoing:

                  (b)      the consummation of any consolidation or merger of
         the Company with or into another corporation with the effect that the
         stockholders of the Company immediately prior to the date of the
         consolidation or merger hold less than 51% of the combined voting power
         of the outstanding voting securities of the surviving entity of such
         merger or the corporation resulting from such consolidation ordinarily
         having the right to vote in the election of directors (apart from
         rights accruing under special circumstances) immediately after such
         merger or consolidation;

                  (c)      the stockholders of the Company shall approve any
         plan or proposal for the liquidation or dissolution of the Company;

                  (d)      a Person or Group of Persons acting in concert as a
         partnership, limited partnership, syndicate or other group shall, as a
         result of a tender or exchange offer, open market purchases, privately
         negotiated purchases or otherwise, have become the direct or indirect
         beneficial owner (within the meaning of Rule 13d-3 under the Securities
         Exchange Act of 1934, as amended) ("Beneficial Owner") of securities of
         the Company representing 30% or more of the combined voting power of
         the then outstanding securities of the Company ordinarily (and apart
         from rights accruing under special circumstances) having the right to
         vote in the election of directors;

                  (e)      a Person or Group of Persons, together with any
         Affiliate thereof, shall succeed in having sufficient number of its
         nominees elected to the Board of Directors of the Company such that
         such nominees, when added to any existing director remaining on the
         Board of Directors of the Company after such election who is an
         Affiliate of such Person or Group of Persons, will constitute a
         majority of the Board of Directors of the Company;

provided that the Person or Group of Persons referred to in clauses (a), (d) and
(e) shall not mean Clifford Borland or any Group of Persons with respect to
which Clifford Borland is the Beneficial Owner of the majority of the voting
equity interests.

         8.       Notwithstanding any other provision of the Agreement, the
Company has an unconditional right to offset any amounts which Participant owes
the Company against amounts due under this Agreement.

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         9.       Participant agrees that if his employment with the Company is
terminated with "Cause" (as defined below and regardless of whether Participant
has attained the age of 62), Participant shall not be entitled to any benefits
whatsoever provided under this Agreement and the Company shall have no liability
or obligation to provide any such benefits to Participant pursuant to this
Agreement. "Cause" shall be defined as (i) Conviction or judicial admission by
the Participant of any felony criminal act, a crime involving moral turpitude,
or a crime of fraud or dishonesty; (ii) acts by Participant constituting gross
negligence or willful misconduct to the detriment of the Company; (iii)
Participant's misfeasance, nonfeasance or malfeasance in the performance of his
duties; [OR] (iv) Participant's failure or refusal to comply with the lawful
directions of Company's Board of Directors or with the policies, standards and
regulations of the Company after notice and failure to cure within thirty (30)
days; [OR (v) PARTICIPANT'S BREACH OF SECTIONS 4, 5, 6, 7, AND 9 OF THE
EMPLOYMENT AGREEMENT].

         10.      Participant agrees that, without the written consent of the
Board of Directors of the Company, he will not, during the term of his
employment with the Company or any business entity controlling, controlled by or
under common control with the Company (an "Affiliate"), directly or indirectly
(a) engage in any activity, or in any manner be connected with or employed by
any person, firm, corporation, or any other entity, in competition with the
Company or any Affiliate, or (b) call upon, solicit, divert, or take away or
attempt to solicit, divert, or take away any of the customers or employees of
the Company or any Affiliate. The parties agree that these restrictions against
competition and solicitation will continue to apply after Participant's
employment with the Company ends if and only if Participant's benefits are
vested (i.e. Participant is entitled to receive Monthly Payments hereunder
either immediately or upon the attainment of age 62), and in such event will
remain in effect for 5 years after Participant's termination of employment.
Participant further agrees that he will not, during the term of his employment
with the Company or any Affiliate and for a period of 5 years thereafter, use or
disclose to anyone not legally entitled thereto any confidential or proprietary
information or trade secrets relating to the business of the Company. The
covenants contained in this Section 10 are enhanced covenants not to compete
that relate specifically to the salary continuation benefits provided under this
Agreement and are not intended to supersede any covenants not to compete
contained in any employment agreement between Participant and the Company.

         11.      Participant agrees that, if he breaches any covenant of
Section 10 above, no further payments shall be due or payable by the Company
hereunder either to Participant or to Participant's spouse and the Company shall
have no further liability or obligation hereunder. Solely with respect to this
Agreement, the Company waives the right to injunctive relief with respect to a
breach of any covenant of Section 10 after the Participant's termination of
employment with the Company.

         12.      The benefits provided hereunder shall not affect the right of
the Participant to participate in any current or future Company retirement plan
or in any supplemental compensation arrangement which constitutes a part of the
Company's regular compensation structure. Upon Participant's termination of
employment, his annual base salary and other benefits shall cease upon
commencement of the benefits provided hereunder, except as required by
applicable law or the applicable benefit plan.

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         13.      It is agreed that neither Participant nor Participant's spouse
shall have any right to commute, sell, assign, transfer or otherwise convey the
right to receive any payments hereunder, which payments and the right thereto
are expressly declared to be non-transferable. In the event that Participant or
Participant's spouse takes any action or agrees to take any action in violation
of this Section, the Company shall have no further liability or obligation
hereunder.

         14.      If the Company acquires an insurance policy or any other asset
in connection with the liabilities assumed by it hereunder, it is expressly
understood by Participant and agreed to by him that neither Participant nor
Participant's spouse shall have any right with respect to, or claim against,
such policy or asset. Such policy or asset: (a) shall not be deemed to be held
under any trust for the benefit of Participant or Participant's spouse; (b)
shall not be held in any way as collateral security for the fulfillment of the
obligations of the Company under this Agreement; and (c) shall be, and remain, a
general unpledged, unrestricted asset of the Company.

         15.      This Agreement shall be binding upon and inure to the benefit
of and be enforceable by the parties hereto and their respective successors,
permitted assigns and other legal representatives. Nothing in this Agreement,
whether expressed or implied, is intended to confer any rights or remedies under
or by reason of this Agreement on any other persons other than the Company, each
of the Company's Affiliates, Participant or Participant's spouse, and their
respective successors, permitted assigns and other legal representatives.

         16.      This Agreement sets forth the entire agreement and
understanding of the parties in respect of the transactions contemplated hereby
and supersedes all prior agreements, arrangements and understandings relating to
the subject matter hereof.

         17.      This Agreement may be executed simultaneously in two
counterparts, each of which shall be deemed an original but both of which taken
together shall constitute one and the same instrument.

         18.      If any question shall arise in regard to the interpretation of
any provision of this Agreement or as to the rights and obligations of either of
the parties hereunder, the Participant and a designated representative of the
Company shall meet to negotiate and attempt to resolve such question in good
faith. The Participant and such representative may, if they so desire, consult
outside experts for assistance in arriving at a resolution. In the event that a
resolution is not achieved within fifteen (15) days after their first meeting,
then either party may submit the question for final resolution by binding
arbitration in accordance with the rules and procedures of the American
Arbitration Association applicable to commercial transactions, and judgment upon
any award thereon may be entered in any court having jurisdiction thereof. The
arbitration shall be held in Covington, Kentucky. In the event of any
arbitration, the Participant shall select one arbitrator, the Company shall
select one arbitrator and the two arbitrators so selected shall select a third
arbitrator, any two of which arbitrators together shall make the necessary
determinations. All out-of-pocket costs and expenses of the parties in
connection with such arbitration, including, without limitation, the fees of the
arbitrators and any administration fees and reasonable attorney's fees and
expenses, shall be borne by the parties in such proportions as the arbitrators
shall decide that such expenses should, in equity, be apportioned.

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         19.      If any provision of this Agreement is determined by a court of
competent jurisdiction to be unenforceable because it is overbroad, the other
provisions hereof shall not be effected, and this agreement shall be modified to
the extent necessary to make the invalid or unenforceable provision valid and
enforceable to the maximum extent permissible under applicable law. This
Agreement shall be construed in accordance with the laws of the State of
Kentucky, and Participant and the Company hereby consent to the filing and
conduct of any litigation concerning this Agreement exclusively in the State of
Kentucky.

         20.      Whenever the singular number is used herein it shall include
the plural if the context so requires and reference to the masculine gender
herein shall be deemed to refer to all genders.

         21.      The Company, or any successor thereto, may not amend or
terminate this Agreement, without the written consent of Participant.

         22.      The Company shall use its best efforts to cause this Agreement
to be assumed by any successor to the Company by virtue of a sale of
substantially all of its assets or otherwise.

         23.      This Agreement shall supersede any previous agreement between
Participant and the Company with regard to salary continuation benefits, which
is deemed to be terminated.

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I HAVE READ THIS SALARY CONTINUATION AGREEMENT AND, UNDERSTANDING ALL ITS TERMS,
INCLUDING THAT THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY
BE ENFORCED BY THE PARTIES, I SIGN IT AS MY FREE ACT AND DEED.

         IN WITNESS WHEREOF, Participant and the Company, by its duly authorized
officer, have executed this Agreement as of _______________, 2000.

                                         NS GROUP, INC.:

                                    By:  ________________________________

                                         PARTICIPANT:

                                         _______________________________________
                                         [PARTICIPANT NAME]

SCHEDULE OF DOCUMENTS OMITTED

The following agreements are substantially identical to the Form of Salary
Continuation Agreement shown here, except for the identity of the employees,
dates of execution and the amount of the monthly benefit. The monthly benefit
amounts are an estimate based on base salaries at December 31, 2002. These
documents are not filed as separate documents in accordance with Exchange Act
rule 12b-31.

<TABLE>
<CAPTION>
      Employee          Monthly Benefit
<S>                     <C>
Rene J. Robichaud       $        16,282
Thomas J. Depenbrock    $         7,663
Thomas L. Golatzki      $         6,695
Frank J. LaRosa         $         6,500
Robert L. Okrzesik      $         7,000
Thomas J. Weber         $         7,000
</TABLE>

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