<PAGE>
                                                                    EXHIBIT 10.2

                               AMENDMENT NO. 2 TO
                              EMPLOYMENT AGREEMENT


                  This Amendment No. 2 to Employment Agreement ("Amendment")
dated as of January 1, 2004, amends the Employment Agreement dated as of January
1, 1997 (the "Original Agreement") between WEYCO GROUP, INC., a Wisconsin
corporation (the "Company") and THOMAS W. FLORSHEIM, JR. ("Florsheim").

                                   BACKGROUND

The Company and Florsheim are parties to the Original Agreement, which states
that Florsheim is employed as the President and Chief Operating Officer of the
Company at an annual salary of $280,000, or such greater amount as the Board of
Directors of the Company may fix. The Company and Florsheim have now agreed that
Florsheim will serve as Chairman and Chief Executive Officer of the Company at a
salary of $459,000.00 or such greater amount as the Board may fix. The purpose
of this Amendment is to revise the Original Agreement to reflect these changes
and to extend its term through December 31, 2007.

                                    AGREEMENT

1.       The second sentence of Paragraph 1 of the Original Agreement is amended
         to read as follows:

              "Florsheim shall have such title and
              responsibilities as the Company's Corporate
              Governance and Compensation Committee of the
              Board of Directors shall from time to assign
              to him, but the duties which he shall be
              called upon to render hereunder shall not be
              of a nature substantially inconsistent with
              those he has rendered and is currently
              rendering to the Company as its Chairman and
              Chief Executive Officer."

2.       The first sentence of Paragraph 2 of the Original Agreement is hereby
         amended to read as follows:

              "As compensation for his services to the
              Company during the term of this Agreement in
              whatever capacity or capacities rendered, the
              Company shall, subject to the provisions of
              Paragraph 3 hereof, pay Florsheim a salary of
              $459,000.00 (Four Hundred, Fifty-nine Thousand
              Dollars) per annum, or such greater amount per
              annum as the Corporate Governance and
              Compensation Committee of the Board of
              Directors of the Company may in its discretion
              fix; said salary to be payable in equal or
              approximately equal biweekly installments.

3.       The first sentence of Paragraph 3 of the Original Agreement if hereby
         amended to extend the term of the Agreement to and including December
         31, 2007.


<PAGE>

4.     Except as revised herein, the Original Agreement is hereby confirmed in
       all respects.

       IN WITNESS WHEREOF, Florsheim has duly executed this
Amendment and the Company has caused this Amendment to be
executed by its duly authorized officers and its corporate
seal to be affixed hereunto, all as of the day and year
first above written.

                                   WEYCO GROUP, INC.
                                   a Wisconsin Corporation




                                   By  /s/ John W. Florsheim
                                     -------------------------------------
                                       John W. Florsheim, President & COO


                                   Attest:




                                   By  /s/ John Wittkowske
                                     -------------------------------------
                                       John Wittkowske, Secretary






                                      /s/ Thomas W. Florsheim, Jr.
                                   --------------------------------------
                                   Thomas W. Florsheim, Jr. Personally