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                                                                    EXHIBIT 10.3

                              DANIEL GREEN COMPANY

                              STOCK PURCHASE OPTION

      Daniel Green Company, a Massachusetts corporation with a principal office
at One Main Street, Dolgeville, New York 13329-1398 (the "Company"), hereby
certifies that Riedman Corporation, a New York corporation with a principal
office at 45 East Avenue, Rochester, New York 14604 (the "Optionee") is entitled
to purchase shares of the Company's Common Stock upon the terms and conditions
of this Stock Purchase Option.

      1. Grant. The Company hereby grants to the Optionee the Option to purchase
from the Company an aggregate of 50,000 shares of its Common Stock, $2.50 par
value ("Common Stock").

      2. Option Price. This Option may be exercised at the Option price of $4.75
per share of the Common Stock.

      3. Term and Exercisability of Option. This Option shall be exercisable in
whole or in part at any time after the date hereof and prior to September 1,
2009.

      4. Method of Exercise. This Option may be exercised from time to time by
written notice to the Company substantially in the form attached hereto as
Exhibit 1, accompanied by payment in full of the Option price for the number of
shares to be delivered, in cash or check payable to the Company. As soon as
practicable after its receipt of such notice, the Company shall, without
transfer, issue tax or other expense to the Optionee, deliver or cause to be
delivered to the Optionee stock certificates representing the number of shares
to be issued upon such exercise.
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      5. Resale of Stock Acquired Pursuant to this Option.

            (a) Any Common Stock of the Company acquired by the Optionee
pursuant to the exercise of this Option may not be sold, transferred, exchanged
or otherwise disposed of unless: (i) such shares have been registered under the
Securities Act of 1933 (the "Act"), (ii) such shares can be sold, transferred,
exchanged or otherwise disposed of without registration pursuant to an exemption
from the Act or otherwise without registration and the Optionee has furnished an
opinion of counsel or other evidence, including an opinion of the Company's
counsel, satisfactory to the Company to this effect, or (iii) the Optionee shall
have held such shares for a period of at least one year from the date of
acquisition of the shares and shall have complied with all other provisions of
Rule 144 issued under the Act, as amended and in effect at the time of such sale
or other disposition. The stock certificate or certificates evidencing shares of
Common Stock issued pursuant to any exercise of this Option will bear a legend
referring to these restrictions on their transferability.

            (b) Registration Rights. Upon the request(s) of Optionee at any
time, the Company shall promptly cause any or all Common Stock subject to the
Option or held by Optionee pursuant to its exercise of the Option to be
registered for sale under the Securities Act (or any statutory successor
thereto) and qualified for sale pursuant to state "blue sky" laws and do all
things reasonably necessary to facilitate the registered sale of the Common
Stock by Optionee. To the extent reasonably practicable, Optionee shall combine
any such request with a request for registration pursuant to its rights under
Section 4.6 of the Stock Purchase Agreement dated June 26, 1996 between the
Company and the Optionee. The Company shall bear the expenses of such
registration and qualifications, other than Optionee's legal counsel's fees and
distribution fees and expenses, which shall be borne by Optionee.
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            If the proposed sale by the Optionee could be accomplished in a
manner substantially similar to that proposed and at the same net sale price to
Optionee by means of a transaction which would be exempt from registration in
accordance with the existing rules and regulations under the Securities Act,
then the Company shall not be required to register such sale.

      6. Changes in Capital Structure. In the event that the outstanding shares
of Common Stock are hereafter changed for a different number or kind of shares
or other securities of the Company, by reason of a reorganization,
recapitalization, exchange of shares, stock split, reverse stock split,
combination of shares or dividend payable in Common Stock or other securities, a
corresponding adjustment shall be made in the number and kind of shares or other
securities covered by this Option. Any such adjustment in this Option shall be
made without change in the total price applicable to the unexercised portion of
the Option, but the price per shares specified in the Option shall be
correspondingly adjusted.

      If the Company merges or consolidates with one or more corporations
(whether or not the Company is the surviving corporation) or if the Company is
liquidated or sells or otherwise disposes of substantially all of its assets to
another entity, then, the terms of the unexercised portion of the Option shall
be amended so that after the effective date of such merger, consolidation or
sale, as the case may be, either:

            (a) the Optionee shall be entitled, upon exercise of the Option to
receive in lieu of shares of Common Stock the number and class of shares of such
stock or other securities to which it would have been entitled pursuant to the
terms of the merger, consolidation or sale if on the effective date of such
merger, consolidation or sale it had been the holder of record of the number of
shares of Common Stock to which the Option could be converted upon exercise in
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full, or (b) the Optionee shall be entitled to receive from the successor entity
a new stock option of comparable value in lieu of the old Option, which shall be
canceled.

      7. General Provisions.

            (a) Amendment; Waivers. This Option may not be modified or amended,
nor may any provision hereof be waived, except by a written agreement duly
signed by each of the parties. The waiver by either of the parties hereto of any
provision hereof in any instance shall not operate as a waiver of any other
provision hereof or in any other instance.

            (b) Governing Law. This Option shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts.

            (c) Notices. Any notice in connection with this Option shall be
deemed to have been properly delivered if it is in writing and is delivered by
hand or sent by registered mail to the party at the address given above,
attention of the President.

            (d) Expenses. The Company hereby agrees to pay on demand all
reasonable expenses incurred or paid by Riedman Corporation, including
reasonable fees of attorneys, in connection with the review of this Stock
Purchase Option and compliance with applicable SEC requirements reporting
requirements.

      IN WITNESS WHEREOF, the Company has caused this Option to be executed by
its officer thereunto duly authorized this 1st day of September, 1999.

                                          DANIEL GREEN COMPANY

                                          By:    /s/ Greg A. Tunney
                                              ----------------------------------
                                                 Greg A. Tunney, President
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                       Exhibit 1 to Stock Purchase Option

                           ____________________, 1999

Treasurer
Daniel Green Company
One Main Street
Dolgeville, New York  13329

      Re:  Exercise of Stock Purchase Option

Dear Sir:

      The undersigned hereby elects to purchase _______________ shares of Common
Stock, $2.50 par value, of Daniel Green Company (the "Company") for the option
price of $4.75 per share, pursuant and subject to the terms and conditions of
the Stock Purchase Option dated July ____, 1997 (the "Option").

      The undersigned encloses herewith payment, in cash or check payable to the
Company, of the option purchase price for said shares.

      The undersigned hereby specifically confirms to the Company that the
shares shall be held subject to all of the terms and conditions of the Option.

                                           Very truly yours,

                                           _____________________________________<PAGE>

                                                                    EXHIBIT 10.4

                                    AGREEMENT

      MADE, as of the 18th day of December, 2000 by and between DANIEL GREEN
COMPANY (the "Company") and WILHELM PFANDER ("Pfander").

                                    RECITALS

      A. Pfander is an officer of the Company and prior to becoming such, was an
officer of Penobscot Shoe Company which was acquired by, and became a wholly
owned subsidiary of, the Company.

      B. While employed by Penobscot, Pfander entered into a Change-of-Control
Agreement with Penobscot dated January 6, 1999 whereby Penobscot agreed, upon
any change of control as defined in that Agreement, to pay Pfander certain
monies (see Exhibit attached hereto).

      C. Pfander and the Company wish to terminate the Change-of-Control
Agreement with Penobscot in favor of this Agreement by the Company to provide
deferred compensation to Pfander upon his retirement.

                                    COVENANTS

      NOW, THEREFORE, in consideration of the covenants herein contained, the
parties agree as follows:

      1. Deferred Compensation. Upon Pfander's retirement from the Company one
year from the date hereof, or later, or upon Pfander's earlier death or total
disability, the Company agrees to pay to Pfander the sum of $100,000 (less
applicable payroll taxes) in four equal quarterly installments commencing on the
date which is three months after the date of Pfander's retirement (or earlier
death or total disability) and continuing on that same day each of the next
three quarters. Payments are conditioned on Pfander's compliance with the
provisions of Sections 3 and 4 of this Agreement.

      2. Termination of Change-of-Control Agreement. In consideration of the
agreement of the Company to make the deferred compensation payments described in
Section 1 above, Pfander waives all rights to payments under the
Change-of-Control Agreement and agrees that the same is hereby terminated and of
no further force and effect.

      3. Covenant Not to Compete.

            (a) Pfander recognizes and acknowledges that the Confidential
Information (as hereafter defined) constitutes valuable secret, special, and
unique assets of the Company. Pfander covenants and agrees that, during the term
of this Agreement and for a period of one year following termination (whether
voluntary or involuntary), Pfander will not disclose the
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Confidential Information to any person, firm, corporation, association, or other
entity for any reason or purpose without the express written approval of the
Company and will not use the Confidential Information except in the Company"
business. The term "Confidential Information" includes all information, whether
or not reduced to written or recorded form, that is related to the Company and
that is not generally known to competitors of the Company nor intended for
general dissemination, whether furnished by the Company or compiled by Pfander,
including but not limited to: (i) lists of the Company's customers, supplies,
agents, manufacturers, distributors or brokers and the terms of all contracts or
relationships with them, (ii) designs and specifications of Company products or
proposed products, (iii) Company strategies, plans (financial, operational or
otherwise), and all other types of written information customarily used by the
Company or available to Pfander. Pfander understands that it is the Company's
intention to maintain the confidentiality of this information notwithstanding
that employees of the Company may have free access to the information for the
purpose of performing their duties with the Company, and notwithstanding that
employees who are not expressly bound by agreements similar to this agreement
may have access to such information for job purposes. Pfander acknowledges that
it is not practical, and shall not be necessary, to mark such information as
"confidential," nor to transfer it within the Company by confidential envelope
or communication, in order to preserve the confidential nature of the
information.

            (b) For a period of one (1) year following termination of employment
(whether voluntary or involuntary), Pfander specifically agrees not to engage
in, either as officer, director, stockholder, owner, partner, employee,
promoter, consultant, manager, or otherwise, any business of any kind or
character that competes with the business of the Company wherever the same is
conducted.

            (c) Pfander agrees that the Company shall have the right to
communicate the terms of this Agreement to any prospective employer of Pfander.

            (d) In the event of a breach or threatened breach of the provisions
of this Section 3, the Company shall be entitled to injunctive relief as well as
any other remedies at law or in equity. Pfander understands, and agrees that
without such protection, the Company's business would be irreparably harmed, and
that the remedy of monetary damages alone would be inadequate.

            (e) Should legal proceedings (including arbitration proceedings)
have to be brought by the Company against Pfander to enforce this Agreement, the
period of restriction under this Section 3 shall be deemed to begin running on
the date of entry of an order granting the Company preliminary injunctive relief
and shall continue uninterrupted for the next succeeding year. Pfander
acknowledges that the purposes of this Section 3 would be frustrated by
measuring the period of restriction from the date of termination of employment
where Pfander failed to honor the Agreement until directed to do so by court
order.

            (f) The provisions of this Section 3 shall be independent of any
other provision of this Agreement, and the existence of any claim or cause of
action by Pfander against the Company, whether predicated on this Agreement or
otherwise, shall not constitute a defense to the enforcement of this Section 3
by the Company.
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            (g) Should a court of competent jurisdiction declare any of the
covenants set forth in this Section 3 unenforceable, each of the parties hereto
agrees that such court shall be empowered and shall grant the Company injunctive
relief reasonably necessary to protect its interest.

      4. Soliciting; the Company's Employees. Pfander agrees that he will not,
for a period of one (1) year following termination of employment with the
Company, directly or indirectly solicit or seek to induce any of the Company's
employees to leave the Company's employ for any reason, including, without
limitation, to work for Pfander or any other competitive company. Pfander
acknowledges and agrees that all activities under this Section 4 shall justify
injunctive relief as provided in Section 3.

      5. Entire Agreement. This instrument contains the entire agreement of the
parties. This Agreement may not be changed orally but only by an agreement in
writing signed by the party against whom enforcement of any waiver, change,
modification, extension or discharge is sought.

      6. Binding Effect. This Agreement shall be binding on and inure to the
benefit of the respective parties and their respective heirs, legal
representatives, successors and assigns.

      7. Waiver of Jury Trial. Pfander and the Company hereby knowingly,
voluntarily and intentionally waive any right either may have to a trial by jury
with respect to any litigation related to or arising out of, under or in
conjunction with this Agreement, or Pfander's employment with the Company.

      8. Governing Law. This Agreement shall be governed by and construed and
enforced according to the internal laws of the State of New York, excluding laws
related to conflicts of law.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first set forth above.

                                           DANIEL GREEN COMPANY

                                           By:  /s/ James R. Riedman
                                              ----------------------------------

                                                /s/ Wilhelm Pfander
                                           -------------------------------------
                                           WILHELM PFANDER

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