Document:

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                                                                   Exhibit 10.14

EMPLOYMENT AGREEMENT entered on the 27th day of September, 1999.

AMONG:                            HF HOLDINGS, INC., a Delaware corporation.

                                  ("COMPANY")

                                  ICON HEALTH & FITNESS, INC., a Delaware
                                  corporation.

                                  ("SUBSIDIARY")

                                  SCOTT R. WATTERSON, acting in his personal
                                  capacity, of the City of LOGAN, State of UTAH.

                                  ("EMPLOYEE")

THE PARTIES AGREE AS FOLLOWS:

1.   PREAMBLE
     --------

     1.1. The COMPANY and the SUBSIDIARY have made an exchange offer for all
          outstanding 13% Senior Subordinated Notes due 2002 of the SUBSIDIARY,
          15% Senior Secured Discount Notes due 2004 of IHF Holdings, Inc. and
          14% Senior Discount Notes due 2006 of ICON Fitness Corporation,
          pursuant to an Exchange Offer and Consent Solicitation, dated July 30,
          1999, as supplemented (the "Exchange Offer").

     1.2. It is recorded that the COMPANY, in connection with the Restructuring
          (as defined in the Equity Letter Agreement (the "Equity Letter"),
          dated July 8, 1999, attached, as amended, to the Exchange Offer as
          Annex H) desires to conclude an agreement for the employment of the
          EMPLOYEE as Chairman and Chief Executive Officer of the COMPANY,
          according to the terms and conditions to be set forth in this
          Agreement.

     1.3. This Agreement is to record the terms and conditions which govern the
          mutual relations of the parties hereto with respect to its subject
          matter.

     1.4. In this Agreement, "BUSINESS" means the manufacture, sale and
          distribution of SPORTING GOODS as carried on by the COMPANY, the
          SUBSIDIARY, and their respective various divisions and subsidiaries,
          from time to time. "SPORTING GOODS" means fitness equipment and
          accessories, which presently involve treadmills, home gyms, aerobic
          exercises, trampolines, weights and benches and exercise accessories,
          but the content of such product lines may vary from time to time.

     1.5. In this Agreement, AFFILIATES means any entity in which the COMPANY or
          the SUBSIDIARY holds more than a 20% voting interest direct or
          indirect.

2.   EMPLOYMENT AND ONE-TIME BONUS
     -----------------------------

     2.1. This Agreement shall come into effect on the date hereof ("EFFECTIVE
          DATE").

     2.2. The COMPANY hereby employs the EMPLOYEE and the EMPLOYEE agrees to
          serve the COMPANY in the positions of Chairman and Chief Executive
          Officer for a term of three (3) years from the EFFECTIVE DATE, subject
          to earlier termination as hereinafter provided (the "TERM").

     2.3. Although this agreement is concluded between the COMPANY and the
          EMPLOYEE, it is agreed that the duties and obligations of the EMPLOYEE
          hereunder extend to the SUBSIDIARY and to all of the COMPANY's other
          subsidiaries, present and future, although the EMPLOYEE will not
          necessarily be an employee of such entities. The EMPLOYEE agrees to
          serve, if requested by the COMPANY, as an officer or director of the
          SUBSIDIARY and any other subsidiaries, in each case without additional
          consideration.

     2.4. Upon the execution and delivery hereof, the COMPANY shall pay the
          EMPLOYEE a one-time bonus of FIVE HUNDRED THOUSAND DOLLARS ($500,000).

3.   BASE SALARY, EXPENSES AND BENEFITS
     ----------------------------------

     3.1. In consideration for the faithful performance of services by the
          EMPLOYEE to be rendered to the COMPANY as herein provided, the COMPANY
          shall pay to the EMPLOYEE during the TERM an annual base salary of
          FIVE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($525,000) payable in
          semi-monthly installments or in accordance with the general policy of
          the COMPANY which may change from time to time but in no event less
          frequently than monthly.

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     3.2. The annual base salary mentioned in Section 3.1 above shall be
          reviewed by the Board of Directors of the COMPANY and may be adjusted
          upwards in the Board's discretion, annually for each year of the TERM,
          taking into account, among other things:

          a)   the performance by the EMPLOYEE of his duties and functions
               pursuant to this Agreement,

          b)   the general economic situation,

          c)   the development and performance of the BUSINESS, and

          d)   other matters deemed relevant by the Board of Directors such as
               an increase in shareholder equity and the rate on return on
               investment.

     3.3. The COMPANY shall reimburse the EMPLOYEE for all reasonable expenses
          which are incurred by the EMPLOYEE in the performance of his duties
          hereunderand (i) subject to the COMPANY's annual budget or (ii) as
          authorized by the Board of Directors of the COMPANY or (iii) in
          accordance with the policies and procedures established from time to
          time by the Board of Directors of the COMPANY or a committee delegated
          for such purpose.

     3.4. During the Term, the COMPANY shall provide the EMPLOYEE with the use
          of a new automobile of his choice, acting reasonably (and consistently
          with his past practice) every 3 years for the purposes of his
          employment commensurate with the position of the EMPLOYEE and having
          regard to COMPANY policy in force from time to time.

     The COMPANY shall assume all costs and expenses of said automobile and
          its operation, including, without limitation, insurance, maintenance,
          gas and use of such automobile. Upon the expiry of the TERM, the
          EMPLOYEE shall deliver such automobile to the COMPANY.

     3.5. During the Term, the EMPLOYEE shall be entitled to participate in the
          COMPANY's life, welfare, and health insurance plans for senior
          executives on the same terms as those of other senior executives.

     3.6. During the Term, the EMPLOYEE shall be entitled to participate in
          fringe benefit programs which are not less favorable than those
          extended by the COMPANY to its senior executives, including without
          limitation an as yet to be defined deferred compensation plan to be
          established by the Board of Directors, but excluding for this purpose
          any such plan or program adopted exclusively for the benefit of junior
          management.

4.   ANNUAL BONUS
     ------------

     4.1. The EMPLOYEE shall receive with respect to (i) each fiscal year ending
          during the Term, and (ii) that portion of any fiscal year ending after
          Term during which he is employed hereunder, a bonus equal to one and
          one-quarter percent (1.25% ) of the consolidated EBITDA (as that term
          is defined in the Credit Agreement of even date herewith among the
          SUBSIDIARY, General Electric Capital Corporation and the other lenders
          thereunder, without regard to any amendments thereto) of the
          SUBSIDIARY and its subsidiaries (but not including the COMPANY),
          provided that such bonus shall not be payable with respect to any such
          fiscal year unless such EBITDA for such fiscal year threeexceeds five
          and one-half percent (5.5%) of the consolidated net sales of the
          SUBSIDIARY and its subsidiaries (but not including the COMPANY)
          determined in accordance with generally accepted accounting principles
          and provided, further, that for purposes of this Agreement, EBITDA
          shall be calculated without regard to any bonuses payable hereunder.

     4.2. The sole basis for the bonus calculation shall be the audited
          financial statements of the SUBSIDIARY and its subsidiaries for the
          fiscal year in question.

     4.3. Any bonus to which EMPLOYEE is entitled under the provisions of this
          Agreement for any fiscal year shall be paid to him (regardless of
          whether the TERM has terminated) in accordance with the COMPANY'S
          previous practice, with a first installment equal to forty percent
          (40%) of a good faith estimate of the bonus for such year, to be paid
          during the month of December of such year and a final installment to
          be paid as promptly as reasonably practicable after the end of, but
          not later than the 75th day after the end of each such fiscal year.

5.   DUTIES
     ------

     5.1. The EMPLOYEE shall perform those functions which are normally the
          functions of the Chairman and Chief Executive Officer of the COMPANY
          and such other offices as he may hold pursuant to Section 2.3, and
          shall further perform those functions which shall be reasonably
          determined from time to time by the Board of Directors of the COMPANY,
          such functions not to be inconsistent with those herein set forth. The
          EMPLOYEE shall report to, and be subject to the authority of, the
          Board of Directors of the COMPANY.

     5.2. The COMPANY shall give the EMPLOYEE a notice of six (6) months prior
          to any relocation of the EMPLOYEE.

     5.3. It is the specific responsibility of the EMPLOYEE, between regular
          meetings of the Board, to apprise Board Members of significant
          business matters.

     5.4. The EMPLOYEE shall, during the TERM, devote his entire working time,
          attention and energies to the business of the COMPANY, the SUBSIDIARY,
          and their respective AFFILIATES.

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     5.5. The EMPLOYEE shall not, during the TERM, except under Section 5.6, be
          engaged in any other business activity, whether or not such business
          activity is pursued for gain, profit or other pecuniary advantage.
          Notwithstanding the prohibition contained in the present clause, the
          EMPLOYEE shall be entitled to continue to sit on the boards of
          directors of the companies listed on Schedule I hereto, and on the
          boards of directors of other companies if such activity is approved in
          writing by the Board of Directors of the COMPANY. In the case of
          non-profit corporations or charities, such approval shall not be
          unreasonably withheld, but in all other cases, the Board shall have
          sole discretion to grant, delay or withhold approval, with or without
          conditions.

     5.6. The EMPLOYEE shall not invest his personal assets in any business
          other than NON-COMPETING BUSINESSES, and even in the case of such
          investments:

          a)   No services are required or furnished on the part of the EMPLOYEE
               in the operations of the companies in which such investments are
               made and in which his participation is solely that of an investor
               provided that this subsection is not infringed by the EMPLOYEE's
               providing counseling (and not acting in a "line" capacity) on a
               non-remunerative basis to all such companies for a maximum of 5
               hours per week and 200 hours per year; and

          b)   If the EMPLOYEE purchases securities in any corporation whose
               securities are regularly traded in a recognized securities
               market, such purchases shall not result in his collectively
               owning beneficially at any time five percent (5%) or more of the
               equity securities of any corporation engaged in a business other
               than a NON-COMPETING BUSINESS.

          The foregoing restrictions shall not apply to any investment of
          whatever extent the EMPLOYEE may take in the shares of the COMPANY or
          of any successor company.

          For the purposes of this subsection, NON-COMPETING BUSINESSES are all
          businesses other than those which compete with:

          a)   the BUSINESS; or

          b)   any other business carried on in the future by the COMPANY, the
               SUBSIDIARY or any AFFILIATES, provided that the EMPLOYEE has
               access to confidential information concerning such business.

          Moreover, the EMPLOYEE shall not knowingly assist any RELATIVE to make
          any investment which the EMPLOYEE is not permitted to make by this
          section.

     5.7. The EMPLOYEE is a member of the Board of Directors and acknowledges
          that he has a significant interest in this Agreement and undertakes
          the following:

          5.7.1. To seek independent legal counsel at the COMPANY's expense to
                 negotiate and review this Agreement on the EMPLOYEE's behalf;

          5.7.2. To disclose his interest in this Agreement to the other members
                 of the Board of Directors; and

          5.7.3. To retire from and abstain from the discussion and vote at any
                 meeting of the Board of Directors at which this Agreement or
                 any default by EMPLOYEE or matter arising therefrom is the
                 subject of a discussion or a vote.

     5.8. The EMPLOYEE also undertakes the following:

          5.8.1. To use every best effort (including the establishment of
                 written procedures known to operation personnel) to promptly
                 bring to the attention of the Board of Directors of the COMPANY
                 any matter requiring the COMPANY's decision or action where his
                 own interests or those of a RELATIVE are involved and to
                 abstain from taking such decision or action until the Board of
                 Directors decides.

          5.8.2. If requested, to be absent from and abstain from the discussion
                 and vote at any meeting of the aforementioned Board of
                 Directors where the subject matter being discussed and voted
                 upon is any matter covered by section 5.8.l.

          5.8.3. For the purposes of this Agreement RELATIVE means the
                 EMPLOYEE's spouse, parent, sibling, child or sibling's
                 children, the spouses of the foregoing and any other person who
                 could be claimed as a dependent on the EMPLOYEE's or RELATIVE's
                 federal income tax return, any corporation or partnership in
                 which a RELATIVE or the EMPLOYEE holds a five percent (5%)
                 interest or of which a RELATIVE or the EMPLOYEE is an officer
                 or director, and any trust of which any of the foregoing is a
                 beneficiary.

6.   EQUITY GRANT
     ------------

     6.1. Contemporaneously herewith, the COMPANY will issue to the EMPLOYEE
          375,000 shares of Common Stock of the COMPANY, at no cost to EMPLOYEE,
          which the COMPANY represents and warrants is equal to 3.74893% of the
          COMPANY's Common Stock outstanding on a fully diluted basis upon
          closing of the Restructuring.

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7.   CONFIDENTIALITY, ETC.
     ---------------------

     7.1. The EMPLOYEE recognizes and acknowledges that the confidential
          information, trade secrets and proprietary processes of the COMPANY,
          its AFFILIATES and subsidiaries as they may exist from time to time
          are valuable, special and unique assets of the BUSINESS of the
          COMPANY, its AFFILIATES and subsidiaries, access to and knowledge of
          which are essential to the performance of the EMPLOYEE's duties
          hereunder. The EMPLOYEE will not, during the TERM of his employment or
          at any time within five (5) years following its termination, for any
          reason whatsoever, in whole or in part, disclose such confidential
          information, secrets or processes to any person, firm, corporation,
          association or other entity for any reason or purpose whatsoever, nor
          shall the EMPLOYEE make use of such property for his own purposes or
          for the benefit of any person, firm, corporation or other entity
          (except the COMPANY, its AFFILIATES and subsidiaries) under any
          circumstances whatsoever, except as may be required in the fulfillment
          of his function with the COMPANY within the terms of this Agreement or
          except as provided by law; provided these restrictions shall not apply
          to such information, secrets and processes which are then in the
          public domain (provided that the EMPLOYEE was not responsible,
          directly or indirectly, for permitting such secrets or process to
          enter the public domain without the COMPANY's consent).

     7.2. The EMPLOYEE furthermore agrees that upon termination of the TERM he
          will remit to the COMPANY all writings and materials, in his
          possession or under his control, which either belong to the COMPANY
          and AFFILIATES or which may contain confidential information
          concerning the COMPANY and AFFILIATES. The EMPLOYEE may, however,
          retain his personal diary/agenda after removing or destroying all
          confidential COMPANY or AFFILIATES material therein.

     7.3. Any and all inventions, discoveries, developments, methods, processes,
          compositions, works, concepts and ideas (whether or not patentable or
          copyrightable) conceived, made, developed, created or reduced to
          practice by the EMPLOYEE (whether at the request or suggestion of the
          COMPANY or otherwise, whether alone or in conjunction with others, and
          whether during regular hours of work or otherwise) during the period
          of his employment by the COMPANY or any of its subsidiaries which may
          relate to the business, ventures or other activities of or products
          manufactured or sold by the COMPANY or any of its subsidiaries
          (collectively, "Proprietary Rights"), shall be promptly and fully
          disclosed by the EMPLOYEE to an appropriate executive officer of the
          COMPANY and shall be the COMPANY's exclusive property as against the
          EMPLOYEE and his heirs and personal representatives, and the EMPLOYEE
          hereby assigns to the COMPANY his entire right, title and interest
          therein and shall promptly deliver to an appropriate executive officer
          of the COMPANY all papers, drawings models, data and other material
          relating to any of the foregoing Proprietary Rights, conceived, made,
          developed, created or reduced to practice by him as aforesaid. All
          copyrightable Proprietary Rights shall be considered "works made for
          hire."

          The EMPLOYEE shall, upon the COMPANY's request and without any payment
          therefor, execute any documents reasonably necessary or advisable in
          the opinion of the COMPANY's counsel to assign, and confirm the
          COMPANY's title in, his entire right, title and interest in the
          foregoing Proprietary Rights and to direct issuance of patents or
          copyrights to the COMPANY with respect to such Proprietary Rights as
          are the COMPANY's exclusive property as against the EMPLOYEE and his
          heirs and personal representatives under this Section 7.3 or to vest
          in the COMPANY title to such Proprietary Rights as against the
          EMPLOYEE and his heirs and personal representatives, the expense of
          securing any such patent or copyright, however, to be borne by the
          COMPANY. In addition, the Company shall reimburse the EMPLOYEE for any
          reasonable expenses incurred in having such documents reviewed by
          EMPLOYEE's counsel.

8.   VACATION
     --------

     8.1. The EMPLOYEE shall have the right to an annual paid vacation of no
          less duration than four (4) weeks.

9.   TERMINATION OF EMPLOYMENT
     -------------------------

     9.1. Notwithstanding any other provision contained herein, the COMPANY may
          on or after the EFFECTIVE DATE send to the EMPLOYEE notice of one of
          the following events and should the EMPLOYEE fail to cure the matter
          giving rise to the notice within thirty (30) days after receipt of
          such notice, the TERM shall terminate without any delay stipulated
          therein or any indemnity payable in lieu thereof:

          a)   EMPLOYEE's willful misconduct or gross negligence;

          b)   The commission of a criminal act by the EMPLOYEE against the
               COMPANY involving material harm (whether nor not charges are
               filed);

          c)   The commission by the EMPLOYEE of a criminal act of moral
               turpitude bringing the COMPANY into disrepute (whether or not
               charges are filed);

          d)   Willful insubordination to any directive of the Board of
               Directors provided reasonable prior notice of such directive is
               given; or

          e)   Actions contrary to Sections 5.4, 5.5, 5.6, 5.8, 7 or 10 causing
               COMPANY or AFFILIATES material harm.

     9.2. Notwithstanding any other provision contained herein, the TERM shall
          terminate automatically, without notice or indemnity in lieu thereof,
          upon the occurrence of one of the following events:

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           a)     The bankruptcy or voluntary state insolvency filing of the
                  EMPLOYEE; or

           b)     The death of the EMPLOYEE.

     9.3.  The EMPLOYEE may terminate the TERM by sending his resignation in
           writing to Board of Directors not less than six (6) months prior to
           the effective date of such resignation or, if such resignation is
           submitted in good faith so that the EMPLOYEE can perform full time
           church service, not less than three (3) months prior to the effective
           date of such resignation, failing which notice the EMPLOYEE may be
           subject to any and all damages incurred as a result of such failure.
           In the event the EMPLOYEE has given such a notice to the COMPANY, the
           COMPANY may, at its option, earlier terminate EMPLOYEE's employment.

     9.4.  Except under the circumstances described in Section 9.6, the COMPANY
           may terminate the TERM by sending a notice in writing to the
           EMPLOYEE.

     9.5.  The EMPLOYEE may immediately terminate the TERM by sending a notice
           of termination to the Board of Directors with immediate effect
           following any material diminution of the EMPLOYEE's responsibilities
           or in the event that the EMPLOYEE is asked by the Board of Directors
           to perform any act which a reasonable person would consider illegal
           or unethical and the COMPANY has not withdrawn its request to the
           EMPLOYEE to perform such act within five (5) days of receiving a
           written notice from the EMPLOYEE to withdraw such a request.

     9.6.  The COMPANY may immediately terminate the TERM by sending a notice in
           writing to the EMPLOYEE with immediate effect:

           9.6.1. after a period of six (6) consecutive months (or aggregating
                  six (6) months in any twelve (12) month period) of absence by
                  the EMPLOYEE from his employment as a result of sickness or
                  disability, or

           9.6.2. after sixty (60) days of absence by the EMPLOYEE from his
                  employment as a result of sickness or disability and a
                  certification by three (3) physicians that the EMPLOYEE is
                  likely to be disabled for a period of at least six (6) months
                  from the initial date of sickness or disability. One (1) such
                  physician shall be chosen by the EMPLOYEE, one (1) shall be
                  chosen by the COMPANY and the third shall be chosen by the
                  other two (2) selected physicians. The EMPLOYEE agrees that in
                  the event of his sickness, he shall submit himself for
                  examination by such physicians if reasonably requested to do
                  so by the COMPANY. For the purposes of this section,
                  "disabled" or "disability" shall mean a temporary or permanent
                  substantial inability because of a physical or mental illness
                  to continue to discharge the EMPLOYEE's duties hereunder.

           Notwithstanding any other provision hereof, the EMPLOYEE's
           compensation during any period of the EMPLOYEE'S disability shall be
           reduced to the extent of any payments to the EMPLOYEE for such period
           under any disability plan or program maintained for the EMPLOYEE by
           the COMPANY for his benefit.

     9.7.  In the event of the termination of the TERM by virtue of section 9.6
           in addition to the payments described therein, the COMPANY shall pay
           to the EMPLOYEE a severance pay equal to one (1) month base salary in
           effect at termination for each calendar year, or part thereof, of the
           EMPLOYEE's employment with the COMPANY, the SUBSIDIARY, IHF Capital,
           Inc. or IHF Holdings, Inc. (or any predecessor companies of the
           COMPANY, the SUBSIDIARY, IHF Capital, Inc., or IHF Holdings, Inc.)
           after January 1, 1988.

     9.8.  In the event of the termination of the TERM by virtue of Section 9.3,
           9.4 or 9.5, the COMPANY shall pay to the EMPLOYEE a severance pay
           equal to the EMPLOYEE's base salary then in effect and the bonus
           referred to in Section 4 hereof, pro-rated for the period of the
           payment, for two (2) years following the termination of the TERM,
           provided, however, that if, due to the EMPLOYEE's resignation, there
           is a termination of the TERM, without any action by the COMPANY,
           during the one (1) year period following the EFFECTIVE DATE, the
           EMPLOYEE shall forego FIVE HUNDRED THOUSAND DOLLARS ($500,000) of any
           severance pay to which he would otherwise be entitled under this
           Section 9.8, unless the resignation resulting in such termination is
           submitted (i) in good faith by EMPLOYEE pursuant to Section 9.3 so
           that the EMPLOYEE can perform full time church service, or (ii)
           pursuant to Section 9.5. The bonuses shall be paid to the EMPLOYEE
           within ninety (90) days from the end of the COMPANY's applicable
           fiscal year, and the base salary shall be paid to the EMPLOYEE on the
           same payment schedule as was applicable to the EMPLOYEE during his
           employment.

10.  RESTRICTIVE COVENANT
     --------------------

     10.1. EMPLOYEE shall not, during the TERM of his employment hereunder and
           for a period of four (4) years from its termination, either directly
           or indirectly, individually or in partnership, carry on or be engaged
           in, or concerned with or interested in, in any capacity whatsoever
           (including that of principal, agent, shareholder (subject to section
           5.6(b)), consultant, employee, lender or surety), any person, firm,
           association, syndicate or company engaged in or concerned with or
           interested in the conception, development, fabrication,
           transformation, marketing, distribution, advertising, franchising or
           sale in Canada, the United States or the European Economic Community,
           or any of them, of any products or services similar or identical to
           any of those manufactured, distributed, or sold by the COMPANY or any
           of its subsidiaries in the course of his employment with the COMPANY,
           its AFFILIATES and subsidiaries.

     10.2. (a) EMPLOYEE shall not, during the TERM of his employment hereunder
           and for a period of twelve (12) months from its termination, directly
           or indirectly, hire any Designated Employee.

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           (b)  EMPLOYEE shall not, during the TERM of his employment hereunder
                and for a period of eighteen (18) months from its termination,
                directly or indirectly, solicit, interfere with or endeavor to
                entice away, any Designated Employee.

           (c)  For purposes of this Section 10.2., the term "Designated
                Employee" shall mean any person if that person is or was a
                Senior Employee of the COMPANY or any of its AFFILIATES or
                subsidiaries during the period beginning six (6) months prior to
                the termination of the TERM and ending (i) in the case of clause
                (a), twelve (12) months thereafter and (ii) in the case of
                clause (b), eighteen (18) months thereafter, but shall exclude
                Gary E. Stevenson or any RELATIVE. For purposes of this Section
                10.2 "Senior Employee" shall mean each of the two hundred (200)
                most highly compensated employees of the COMPANY or any of its
                subsidiaries or AFFILIATES.

     10.3. Notwithstanding the foregoing, if termination of employment occurs
           under Section 9.3, 9.4 or 9.5, the period stipulated by Section 10.1
           is reduced to two (2) years; provided, however, that such period
           shall be extended by written notice to the EMPLOYEE within thirty
           (30) days of such termination up to two (2) years (i.e., up to a
           total of four (4) years from the termination of EMPLOYEE's
           employment) to the extent that the COMPANY, at its option, pays to
           the EMPLOYEE a severance pay equal to the EMPLOYEE's base salary then
           in effect and the bonus referred to in Section 4 hereof, pro-rated
           for the period of the payment, for a period of up to an additional
           two (2) years beyond that required to be paid by the COMPANY to the
           EMPLOYEE under Section 9.8. If paid at the COMPANY's option, such
           bonuses are to be paid within ninety (90) days from the end of the
           COMPANY's applicable fiscal year, and the base salary shall be paid
           to the EMPLOYEE on the same payment schedule as was applicable to the
           EMPLOYEE during his employment.

11.  REASONABLENESS AND REMEDIES
     ---------------------------

     11.1. The EMPLOYEE agrees that all the conditions and restrictions
           established in this Agreement are reasonable taking into account the
           circumstances surrounding this Agreement.

     11.2. The EMPLOYEE recognizes that in the view of the serious and
           irreparable harm which a violation hereof would have on the COMPANY,
           and without prejudice to the COMPANY's other remedies, injunctive
           relief would constitute an available and appropriate remedy and, to
           the extent permitted by law, the COMPANY shall not be required to
           furnish any security or bond in respect thereof.

12.  [INTENTIONALLY DELETED]
     ----------------------

13.  GENERAL LIMIT ON EMPLOYEE'S LIABILITY
     -------------------------------------

     13.1. As a general and overall limitation of the EMPLOYEE's liability to
           the COMPANY and AFFILIATES, the COMPANY agrees that the EMPLOYEE
           shall not be liable, for any reason except as set forth below, to the
           COMPANY or any of its AFFILIATES for an amount in excess of the
           amount provided in the next sentence hereof. Accordingly, as and for
           their sole remedy against the EMPLOYEE, the COMPANY agrees that for
           any claim or cause of action that the COMPANY or any of its
           AFFILIATES may have against the EMPLOYEE, whether past or future,
           their sole remedy shall be the forfeiture of the EMPLOYEE's salary,
           bonus and other compensation (but not the equity grant under Section
           6.1 hereof, which shall not be subject to forfeiture) received by the
           EMPLOYEE during the COMPANY's fiscal year in which the EMPLOYEE's
           termination occurred plus subsequently accruing compensation. In this
           regard, the COMPANY agrees, to the extent permitted by applicable
           law, to indemnify the EMPLOYEE from and against any liability the
           EMPLOYEE may have in excess of that provided in the immediately
           preceding sentence (i) hereunder or (ii) for any other claim the
           COMPANY or any of its AFFILIATES may have against the EMPLOYEE.
           However, nothing in this Section 13 shall limit the EMPLOYEE's
           liability to the COMPANY or any of its AFFILIATES or provide the
           EMPLOYEE any indemnity (i) for any act by the EMPLOYEE involving
           theft, fraud or embezzlement against the COMPANY or any of its
           AFFILIATES, (ii) in respect of any equitable remedy against the
           EMPLOYEE, (iii) in respect of any agreement listed on Schedule I of
           the Old Employment Agreement (as defined in that separate Termination
           Agreement among IHF Capital, Inc., IHF Holdings, Inc., SUBSIDIARY and
           EMPLOYEE, dated an even date hereof (the "Termination Agreement")) or
           any agreement heretofore or hereafter entered into by the EMPLOYEE
           after the date of the Old Employment Agreement, (iv) in respect of
           any claim or cause of action asserted by the COMPANY or any of its
           AFFILIATES as a counterclaim (to the extent of any liability the
           COMPANY or any of its AFFILIATES may have by reason of the EMPLOYEE
           claim in question) or as a set off, or (v) under Section 7, 9.3 or 10
           of this Agreement or under the Non-Competition Agreement (as defined
           in the First Amended and Restated Master Transaction Agreement dated
           as of October 12, 1994 among ICON Health & Fitness, Inc. and the
           other parties thereto (the "Master Transaction Agreement"));
           provided, however, that the aggregate of the liability of the
           EMPLOYEE to the COMPANY or any of its AFFILIATES under Section 7, 9.3
           or 10 of this Agreement or to the COMPANY, any of its AFFILIATES, IHF
           Capital, Inc. or any of its AFFILIATES (as defined in the Old
           Employment Agreement) under the Non-Competition Agreement and of the
           liability of the EMPLOYEE to IHF Capital, Inc. or any of its
           AFFILIATES (as so defined) in respect of claims subject to the
           $18,000,000 limits set forth in the third to last sentence of Section
           10.3.1.1 of the Master Transaction, shall not exceed $1,240,000.

14.  AMENDMENTS
     ----------

     14.1. This Agreement may be amended only by written instrument duly
           executed by all the parties hereby and approved by the Board of
           Directors of the COMPANY.

15.  NO ASSIGNMENT
     -------------

<PAGE>

     15.1. No party hereto shall assign, in whole or in part, this agreement or
           any of its or his respective rights and obligations hereunder without
           the express prior written consent of the other parties hereto; for
           this purpose the merger or reorganization of the COMPANY or the
           SUBSIDIARY or any AFFILIATE shall not be considered an assignment.

16.  NO WAIVER
     ---------

     16.1  No waiver by any party of any breach of the obligations of any other
           party hereunder shall be a waiver of any subsequent breach or of any
           other obligation, nor shall any forbearance to seek a remedy for any
           breach be a waiver of any rights and remedies with respect to any
           subsequent breach.

17.  SEVERABILITY
     ------------

     17.1. The invalidity of one of the provisions of this Agreement shall not
           invalidate or otherwise affect any of the other provisions of this
           Agreement, which shall remain in full force and effect, and each such
           invalid provision shall be construed by limiting it so as to be valid
           for the maximum extent permitted by law.

18.  CURRENCY, ETC.
     -------------

     18.1. All references in this Agreement to dollar of $ mean lawful currency
           of the United States of America.

     18.2. The COMPANY shall have the right to withhold, from or in respect of
           any payment, benefit or other item of compensation due to the
           EMPLOYEE hereunder, any federal, state or local taxes of any kind
           required by law to be withheld with respect thereto. In the event
           that at the time any withholding is required hereunder, the amount of
           cash payments from which the applicable withholding taxes may be
           deducted is less than the withholding taxes due, the EMPLOYEE shall
           pay to the COMPANY, in immediately available funds, an amount equal
           to such shortfall.

19.  GOVERNING LAW; ARBITRATION
     --------------------------

     19.1. This Agreement shall be governed by and construed in accordance with
           the domestic substantive laws of the State of Utah, without giving
           effect to any choice or conflict of law provision or rule that would
           cause the application of the domestic substantive laws of any other
           jurisdiction; provided, however, that any dispute relating to the
           provisions of Section 19.2 shall be governed by the United States
           Arbitration Act as then in force.

     19.2. Except solely as set forth in Section 19.4, each dispute, difference,
           controversy or claim arising in connection with or related or
           incidental to, or question occurring under, this Agreement or the
           subject matter hereof shall be finally settled under the Commercial
           Arbitration Rules of the American Arbitration Association (the "AAA")
           by an arbitral tribunal composed of three (3) arbitrators, at least
           one (1) of whom shall be an attorney experienced in corporate
           transactions, appointed by agreement of the parties in accordance
           with said Rules. In the event the parties fail to agree upon a panel
           of arbitrators from the first list of potential arbitrators proposed
           by the AAA, the AAA will submit a second list in accordance with said
           Rules. In the event the parties shall have failed to agree upon a
           full panel of arbitrators from said second list, any remaining
           arbitrators to be selected shall be appointed by the AAA in
           accordance with said Rules. If, at the time of the arbitration, the
           parties agree in writing to submit the dispute to a single
           arbitrator, said single arbitrator shall be appointed by agreement of
           the parties in accordance with the foregoing procedure, or, failing
           such agreement, by the AAA in accordance with said Rules. The
           foregoing arbitration proceedings may be commenced by any party by
           notice to all other parties.

     19.3. The place of arbitration shall be Salt Lake City, Utah.

     19.4. The parties hereto exclude any right of appeal to any court on the
           merits of the dispute. The provisions of this Section 19 may be
           enforced in any court having jurisdiction over the award of any of
           the parties or any of their respective assets and judgment on the
           award (including without limitation equitable remedies) granted in
           any arbitration hereunder may be entered in any such court. Nothing
           contained in this Section 19 shall prevent any party from seeking
           interim measures of protection in the form of pre-award attachment of
           assets or preliminary or temporary equitable relief.

     19.5. To the extent not prohibited by applicable law which cannot be
           waived, each of the parties hereto hereby waives, and covenants that
           he or it will not assert (whether as plaintiff, defendant, or
           otherwise), any right to trial by jury in any forum in respect of any
           issue, claim, demand, cause of action, action, suit or proceeding
           arising out of or based upon this Agreement or the subject matter
           hereof, in each case whether now existing or hereafter arising and
           whether in contract or tort or otherwise. Any of the parties hereto
           may file an original counterpart or a copy of this Section 19.5 with
           any court as written evidence of the consent of each of the parties
           hereto to the waiver of his or its right to trial by jury.

     19.6. Each of the parties hereto acknowledges that he or it has been
           informed by each other party that the provisions of Section 19
           constitute a material inducement upon which such party is relying and
           will rely in entering into this Agreement and the transactions
           contemplated hereby.

20.  BINDING ON HEIRS
     ----------------

<PAGE>

     20.1. This Agreement binds and inures to the benefit of the parties, their
           heirs, executors, administrators, successors and permitted assigns
           (subject to Section 9.2(b)).

21.  ENTIRE AGREEMENT
     ----------------

     21.1  This Agreement embodies the entire Agreement between the parties
           hereto concerning the subject matters mentioned herein and supersedes
           all previous discussions, correspondence, understandings or
           agreements, whether written or oral, with respect to such matters,
           except as provided in the Termination Agreement. This agreement shall
           constitute an agreement between employer and employee of the type
           referred to in Section 1, Chapter 28, Title 34 of the Utah Code,
           Annotated.

22.  ATTORNEY'S FEES
     ---------------

     22.1. In the event that any party hereto shall be found in default or in
           breach of this Agreement pursuant to arbitral or judicial
           proceedings, such party shall be liable to pay all reasonable
           attorney's fees, court costs and other related collection costs and
           expenses incurred by the non-defaulting or non-breaching party in
           pursuing its rights hereunder.

23.  NOTICES
     -------

     23.1. All notices and other communications necessary or contemplated under
           this Agreement shall be in writing and shall be delivered in the
           manner specified herein or, in the absence of such specification,
           shall be deemed to have been duly given three (3) business days after
           mailing by certified mail, when delivered by hand, or when delivered
           by facsimile upon confirmation of receipt, or one (1) day after
           sending by overnight delivery service, to the respective addresses of
           the parties set forth below:

           a)  for notices and communications to the COMPANY or the SUBSIDIARY:

               HF HOLDINGS, INC.
               ICON HEALTH & FITNESS, INC.
               1500 South 1000 East
               Logan, Utah 84321
               Fax: 435-750-5238
               Attn: Board of Directors

           b)  For notices and communications to the EMPLOYEE:

               Scott R. Watterson
               560 South 1000 East
               Logan, Utah 84321

           c)  With a copy in each case to:

               Hutchins, Wheeler & Dittmar
               101 Federal Street
               Boston, MA         02110
               Fax: 617-951-1295
               Attn: Charles W. Robins, Esq.

               and

               Ropes & Gray
               One International Place
               Boston, MA 02110
               Fax: 617-951-7050
               Attn: R. Newcomb Stillwell, Esq.

24.  JOINT AND SEVERAL LIABILITY
     ---------------------------

     24.1. The COMPANY and the SUBSIDIARY shall be jointly and severally liable
           in respect of all payment obligations of the COMPANY hereunder.

<PAGE>

     IN WITNESS WHEREOF the parties have hereto signed this 27th day of
September, 1999.

                                                    HF HOLDINGS, INC.

__________________________                          By: /s/ S. Fred Beck
                                                       -----------------
Witness                                             Title: Vice President

                                                    ICON HEALTH & FITNESS, INC.

__________________________                          By: /s/ S. Fred Beck
                                                       -----------------
Witness                                             Title: Vice President

__________________________                          /s/ Scott R. Watterson
                                                    ----------------------
Witness                                             SCOTT R. WATTERSON

<PAGE>

                                   SCHEDULE I
                                       To
                              EMPLOYMENT AGREEMENT
                                      Among
                                HF HOLDINGS, INC.
                           ICON HEALTH & FITNESS, INC.
                                       And
                               SCOTT R. WATTERSON

                                   Board Seats

                                      Ampad
                         Make-a-Wish Foundation of Utah
                                 Utah Foundation
                           Utah State Foundation Board
                                Patient Link.com
                               Cornerstone Capital<PAGE>
                                                                   Exhibit 10.15

EMPLOYMENT AGREEMENT entered on the 27th day of September, 1999.

AMONG:                              HF HOLDINGS, INC., a Delaware corporation.

                                    ("COMPANY")

                                    ICON HEALTH & FITNESS, INC., a Delaware
                                    corporation.

                                    ("SUBSIDIARY")

                                    GARY E. STEVENSON, acting in his personal
                                    capacity, of the City of PROVIDENCE, State
                                    of UTAH.

                                    ("EMPLOYEE")

THE PARTIES AGREE AS FOLLOWS:

1.   PREAMBLE
     --------

     1.1.  The COMPANY and the SUBSIDIARY have made an exchange offer for all
           outstanding 13% Senior Subordinated Notes due 2002 of the SUBSIDIARY,
           15% Senior Secured Discount Notes due 2004 of IHF Holdings, Inc. and
           14% Senior Discount Notes due 2006 of ICON Fitness Corporation,
           pursuant to an Exchange Offer and Consent Solicitation, dated July
           30, 1999, as supplemented (the "Exchange Offer").

     1.2.  It is recorded that the COMPANY, in connection with the Restructuring
           (as defined in the Equity Letter Agreement (the "Equity Letter"),
           dated July 8, 1999, attached, as amended, to the Exchange Offer as
           Annex H) desires to conclude an agreement for the employment of the
           EMPLOYEE as President and Chief Operating Officer of the COMPANY,
           according to the terms and conditions to be set forth in this
           Agreement.

     1.3.  This Agreement is to record the terms and conditions  which govern
           the mutual  relations of the parties hereto with respect to its
           subject matter.

     1.4.  In this Agreement, "BUSINESS" means the manufacture, sale and
           distribution of SPORTING GOODS as carried on by the COMPANY, the
           SUBSIDIARY, and their respective various divisions and subsidiaries,
           from time to time. "SPORTING GOODS" means fitness equipment and
           accessories, which presently involve treadmills, home gyms, aerobic
           exercises, trampolines, weights and benches and exercise accessories,
           but the content of such product lines may vary from time to time.

     1.5.  In this Agreement,  AFFILIATES  means any entity in which the COMPANY
           or the SUBSIDIARY  holds more than a 20% voting interest direct or
           indirect.

2.   EMPLOYMENT AND ONE-TIME BONUS
     -----------------------------

     2.1.  This Agreement shall come into effect on the date hereof ("EFFECTIVE
           DATE").

     2.2.  The COMPANY hereby employs the EMPLOYEE and the EMPLOYEE agrees to
           serve the COMPANY in the positions of President and Chief Operating
           Officer for a term of three (3) years from the EFFECTIVE DATE,
           subject to earlier termination as hereinafter provided (the "TERM").

     2.3.  Although this agreement is concluded between the COMPANY and the
           EMPLOYEE, it is agreed that the duties and obligations of the
           EMPLOYEE hereunder extend to the SUBSIDIARY and to all of the
           COMPANY's other subsidiaries, present and future, although the
           EMPLOYEE will not necessarily be an employee of such entities. The
           EMPLOYEE agrees to serve, if requested by the COMPANY, as an officer
           or director of the SUBSIDIARY and any other subsidiaries, in each
           case without additional consideration.

     2.4.  Upon the execution and delivery  hereof,  the COMPANY shall pay the
           EMPLOYEE a one-time bonus of FIVE HUNDRED THOUSAND DOLLARS
           ($500,000).

3.   BASE SALARY, EXPENSES AND BENEFITS
     ----------------------------------

     3.1.  In consideration for the faithful performance of services by the
           EMPLOYEE to be rendered to the COMPANY as herein provided, the
           COMPANY shall pay to the EMPLOYEE during the TERM an annual base
           salary of FOUR HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($475,000)
           payable in semi-monthly installments or in accordance with the
           general policy of the COMPANY which may change from time to time but
           in no event less frequently than monthly.

<PAGE>

     3.2.  The annual base salary mentioned in Section 3.1 above shall be
           reviewed by the Board of Directors of the COMPANY and may be adjusted
           upwards in the Board's discretion, annually for each year of the
           TERM, taking into account, among other things:

           a)    the performance by the EMPLOYEE of his duties and functions
                 pursuant to this Agreement,

           b)    the general economic situation,

           c)    the development and performance of the BUSINESS, and

           d)    other matters deemed relevant by the Board of Directors such as
                 an increase in shareholder equity and the rate on return on
                 investment.

     3.3.  The COMPANY shall reimburse the EMPLOYEE for all reasonable expenses
           which are incurred by the EMPLOYEE in the performance of his duties
           hereunder and (i) subject to the COMPANY's annual budget or (ii) as
           authorized by the Board of Directors of the COMPANY or (iii) in
           accordance with the policies and procedures established from time to
           time by the Board of Directors of the COMPANY or a committee
           delegated for such purpose.

     3.4.  During the Term, the COMPANY shall provide the EMPLOYEE with the use
           of a new automobile of his choice, acting reasonably (and
           consistently with his past practice) every 3 years for the purposes
           of his employment commensurate with the position of the EMPLOYEE and
           having regard to COMPANY policy in force from time to time.

           The COMPANY shall assume all costs and expenses of said automobile
           and its operation, including, without limitation, insurance,
           maintenance, gas and use of such automobile. Upon the expiry of the
           TERM, the EMPLOYEE shall deliver such automobile to the COMPANY.

     3.5.  During the Term, the EMPLOYEE shall be entitled to participate in the
           COMPANY's life, welfare, and health insurance plans for senior
           executives on the same terms as those of other senior executives.

     3.6.  During the Term, the EMPLOYEE shall be entitled to participate in
           fringe benefit programs which are not less favorable than those
           extended by the COMPANY to its senior executives, including without
           limitation an as yet to be defined deferred compensation plan to be
           established by the Board of Directors, but excluding for this purpose
           any such plan or program adopted exclusively for the benefit of
           junior management.

4.   ANNUAL BONUS
     ------------

     4.1.  The EMPLOYEE shall receive with respect to (i) each fiscal year
           ending during the Term, and (ii) that portion of any fiscal year
           ending after Term during which he is employed hereunder, a bonus
           equal to one and one-tenth percent (1.10%) of the consolidated EBITDA
           (as that term is defined in the Credit Agreement of even date
           herewith among the SUBSIDIARY, General Electric Capital Corporation
           and the other lenders thereunder, without regard to any amendments
           thereto) of the SUBSIDIARY and its subsidiaries (but not including
           the COMPANY), provided that such bonus shall not be payable with
           respect to any such fiscal year unless such EBITDA for such fiscal
           year exceeds five and one-half percent (5.5%) of the consolidated net
           sales of the SUBSIDIARY and its subsidiaries (but not including the
           COMPANY) determined in accordance with generally accepted accounting
           principles and provided, further, that for purposes of this
           Agreement, EBITDA shall be calculated without regard to any bonuses
           payable hereunder.

     4.2.  The sole basis for the bonus calculation shall be the auditied
           financial statements of the SUBSIDIARY and its subsidiairies for the
           fiscal year in question.

     4.3.  Any bonus to which EMPLOYEE is entitled under the provisions of this
           Agreement for any fiscal year shall be paid to him (regardless of
           whether the TERM has terminated) in accordance with the COMPANY'S
           previous practice, with a first installment equal to forty percent
           (40%) of a good faith estimate of the bonus for such year, to be paid
           during the month of December of such year and a final installment to
           be paid as promptly as reasonably practicable after the end of, but
           not later than the 75th day after the end of each such fiscal year.

5.   DUTIES
     ------

     5.1.  The EMPLOYEE shall perform those functions which are normally the
           functions of the President and Chief Operating Officer of the COMPANY
           and such other offices as he may hold pursuant to Section 2.3, and
           shall further perform those functions which shall be reasonably
           determined from time to time by the Board of Directors of the
           COMPANY, such functions not to be inconsistent with those herein set
           forth. The EMPLOYEE shall report to, and be subject to the authority
           of, the Board of Directors of the COMPANY.

     5.2.  The COMPANY shall give the EMPLOYEE a notice of six (6) months prior
           to any relocation of the EMPLOYEE.

     5.3.  It is the specific responsibility of the EMPLOYEE, between regular
           meetings of the Board, to apprise Board Members of significant
           business matters.

<PAGE>

     5.4.  The EMPLOYEE shall, during the TERM, devote his entire working time,
           attention and energies to the business of the COMPANY, the
           SUBSIDIARY, and their respective AFFILIATES.

     5.5.  The EMPLOYEE shall not, during the TERM, except under Section 5.6, be
           engaged in any other business activity, whether or not such business
           activity is pursued for gain, profit or other pecuniary advantage.
           Notwithstanding the prohibition contained in the present clause, the
           EMPLOYEE shall be entitled to continue to sit on the boards of
           directors of the companies listed on Schedule I hereto, and on the
           boards of directors of other companies if such activity is approved
           in writing by the Board of Directors of the COMPANY. In the case of
           non-profit corporations or charities, such approval shall not be
           unreasonably withheld, but in all other cases, the Board shall have
           sole discretion to grant, delay or withhold approval, with or without
           conditions.

     5.6.  The EMPLOYEE shall not invest his personal assets in any business
           other than NON-COMPETING BUSINESSES, and even in the case of such
           investments:

           a)     No services are required or furnished on the part of the
                  EMPLOYEE in the operations of the companies in which such
                  investments are made and in which his participation is solely
                  that of an investor provided that this subsection is not
                  infringed by the EMPLOYEE's providing counseling (and not
                  acting in a "line" capacity) on a non-remunerative basis to
                  all such companies for a maximum of 5 hours per week and 200
                  hours per year; and

           b)     If the EMPLOYEE purchases securities in any corporatio whose
                  securities are regularly traded in a recognized securities
                  market, such purchases shall not result in his collectively
                  owning beneficially at any time five percent (5%) or more of
                  the equity securities of any corporation engaged in a business
                  other than a NON-COMPETING BUSINESS.

           The foregoing restrictions shall not apply to any investment of
           whatever extent the EMPLOYEE may take in the shares of the COMPANY or
           of any successor company.

           For the purposes of this subsection, NON-COMPETING BUSINESSES are all
           businesses other than those which compete with:

           a)     the BUSINESS; or

           b)     any other business carried on in the future by the COMPANY,
                  the SUBSIDIARY or any AFFILIATES, provided that the EMPLOYEE
                  has access to confidential information concerning such
                  business.

           Moreover, the EMPLOYEE shall not knowingly assist any RELATIVE to
           make any investment which the EMPLOYEE is not permitted to make by
           this section.

     5.7.  The EMPLOYEE is a member of the Board of Directors and acknowledges
           that he has a significant interest in this Agreement and undertakes
           the following:

           5.7.1. To seek independent legal counsel at the COMPANY's expense to
                  negotiate and review this Agreement on the EMPLOYEE's behalf;

           5.7.2. To disclose his interest in this Agreement to the other
                  members of the Board of Directors; and

           5.7.3. To retire from and abstain from the discussion and vote at any
                  meeting of the Board of Directors at which this Agreement or
                  any default by EMPLOYEE or matter arising therefrom is the
                  subject of a discussion or a vote.

     5.8.  The EMPLOYEE also undertakes the following:

           5.8.1. To use every best effort (including the establishment of
                  written procedures known to operation personnel) to promptly
                  bring to the attention of the Board of Directors of the
                  COMPANY any matter requiring the COMPANY's decision or action
                  where his own interests or those of a RELATIVE are involved
                  and to abstain from taking such decision or action until the
                  Board of Directors decides.

           5.8.2. If requested, to be absent from and abstain from the
                  discussion and vote at any meeting of the aforementioned Board
                  of Directors where the subject matter being discussed and
                  voted upon is any matter covered by section 5.8.l.

           5.8.3. For the purposes of this Agreement RELATIVE means the
                  EMPLOYEE's spouse, parent, sibling, child or sibling's
                  children, the spouses of the foregoing and any other person
                  who could be claimed as a dependent on the EMPLOYEE's or
                  RELATIVE's federal income tax return, any corporation or
                  partnership in which a RELATIVE or the EMPLOYEE holds a five
                  percent (5%) interest or of which a RELATIVE or the EMPLOYEE
                  is an officer or director, and any trust of which any of the
                  foregoing is a beneficiary.

6.   EQUITY GRANT
     ------------

<PAGE>

     6.1.  Contemporaneously herewith, the COMPANY will issue to the EMPLOYEE
           291,700 shares of Common Stock of the COMPANY, at no cost to
           EMPLOYEE, which the COMPANY represents and warrants is equal to
           2.91617% of the COMPANY's Common Stock outstanding on a fully diluted
           basis upon closing of the Restructuring.

7.   CONFIDENTIALITY, ETC.
     ---------------------

     7.1.  The EMPLOYEE recognizes and acknowledges that the confidential
           information, trade secrets and proprietary processes of the COMPANY,
           its AFFILIATES and subsidiaries as they may exist from time to time
           are valuable, special and unique assets of the BUSINESS of the
           COMPANY, its AFFILIATES and subsidiaries, access to and knowledge of
           which are essential to the performance of the EMPLOYEE's duties
           hereunder. The EMPLOYEE will not, during the TERM of his employment
           or at any time within five (5) years following its termination, for
           any reason whatsoever, in whole or in part, disclose such
           confidential information, secrets or processes to any person, firm,
           corporation, association or other entity for any reason or purpose
           whatsoever, nor shall the EMPLOYEE make use of such property for his
           own purposes or for the benefit of any person, firm, corporation or
           other entity (except the COMPANY, its AFFILIATES and subsidiaries)
           under any circumstances whatsoever, except as may be required in the
           fulfillment of his function with the COMPANY within the terms of this
           Agreement or except as provided by law; provided these restrictions
           shall not apply to such information, secrets and processes which are
           then in the public domain (provided that the EMPLOYEE was not
           responsible, directly or indirectly, for permitting such secrets or
           process to enter the public domain without the COMPANY's consent).

     7.2.  The EMPLOYEE furthermore agrees that upon termination of the TERM he
           will remit to the COMPANY all writings and materials, in his
           possession or under his control, which either belong to the COMPANY
           and AFFILIATES or which may contain confidential information
           concerning the COMPANY and AFFILIATES. The EMPLOYEE may, however,
           retain his personal diary/agenda after removing or destroying all
           confidential COMPANY or AFFILIATES material therein.

     7.3.  Any and all inventions, discoveries, developments, methods,
           processes, compositions, works, concepts and ideas (whether or not
           patentable or copyrightable) conceived, made, developed, created or
           reduced to practice by the EMPLOYEE (whether at the request or
           suggestion of the COMPANY or otherwise, whether alone or in
           conjunction with others, and whether during regular hours of work or
           otherwise) during the period of his employment by the COMPANY or any
           of its subsidiaries which may relate to the business, ventures or
           other activities of or products manufactured or sold by the COMPANY
           or any of its subsidiaries (collectively, "Proprietary Rights"),
           shall be promptly and fully disclosed by the EMPLOYEE to an
           appropriate executive officer of the COMPANY and shall be the
           COMPANY's exclusive property as against the EMPLOYEE and his heirs
           and personal representatives, and the EMPLOYEE hereby assigns to the
           COMPANY his entire right, title and interest therein and shall
           promptly deliver to an appropriate executive officer of the COMPANY
           all papers, drawings models, data and other material relating to any
           of the foregoing Proprietary Rights, conceived, made, developed,
           created or reduced to practice by him as aforesaid. All copyrightable
           Proprietary Rights shall be considered "works made for hire."

           The EMPLOYEE shall, upon the COMPANY's request and without any
           payment therefor, execute any documents reasonably necessary or
           advisable in the opinion of the COMPANY's counsel to assign, and
           confirm the COMPANY's title in, his entire right, title and interest
           in the foregoing Proprietary Rights and to direct issuance of patents
           or copyrights to the COMPANY with respect to such Proprietary Rights
           as are the COMPANY's exclusive property as against the EMPLOYEE and
           his heirs and personal representatives under this Section 7.3 or to
           vest in the COMPANY title to such Proprietary Rights as against the
           EMPLOYEE and his heirs and personal representatives, the expense of
           securing any such patent or copyright, however, to be borne by the
           COMPANY. In addition, the Company shall reimburse the EMPLOYEE for
           any reasonable expenses incurred in having such documents reviewed by
           EMPLOYEE's counsel.

8.   VACATION
     --------

     8.1.  The EMPLOYEE shall have the right to an annual paid vacation of no
           less duration than four (4) weeks.

9.   TERMINATION OF EMPLOYMENT
     -------------------------

     9.1.  Notwithstanding any other provision contained herein, the COMPANY may
           on or after the EFFECTIVE DATE send to the EMPLOYEE notice of one of
           the following events and should the EMPLOYEE fail to cure the matter
           giving rise to the notice within thirty (30) days after receipt of
           such notice, the TERM shall terminate without any delay stipulated
           therein or any indemnity payable in lieu thereof:

           a)   EMPLOYEE's willful misconduct or gross negligence;

           b)   The commission of a criminal act by the EMPLOYEE against the
                COMPANY involving material harm (whether nor not charges are
                filed);

           c)   The commission by the EMPLOYEE of a criminal act of moral
                turpitude bringing the COMPANY into disrepute (whether or not
                charges are filed);

           d)   Willful insubordination to any directive of the Board of
                Directors provided reasonable prior notice of such directive is
                given; or

<PAGE>

           e)     Actions contrary to Sections 5.4, 5.5, 5.6, 5.8, 7 or 10
                  causing COMPANY or AFFILIATES material harm.

     9.2.  Notwithstanding any other provision contained herein, the TERM shall
           terminate automatically, without notice or indemnity in lieu thereof,
           upon the occurrence of one of the following events:

           a)     The bankruptcy or voluntary state insolvency filing of the
                  EMPLOYEE; or

           b)     The death of the EMPLOYEE.

     9.3.  The EMPLOYEE may terminate the TERM by sending his resignation in
           writing to Board of Directors not less than six (6) months prior to
           the effective date of such resignation or, if such resignation is
           submitted in good faith so that the EMPLOYEE can perform full time
           church service, not less than three (3) months prior to the effective
           date of such resignation, failing which notice the EMPLOYEE may be
           subject to any and all damages incurred as a result of such failure.
           In the event the EMPLOYEE has given such a notice to the COMPANY, the
           COMPANY may, at its option, earlier terminate EMPLOYEE's employment.

     9.4.  Except under the  circumstances  described in Section 9.6, the
           COMPANY may  terminate  the TERM by sending a notice in writing to
           the EMPLOYEE.

     9.5.  The EMPLOYEE may immediately terminate the TERM by sending a notice
           of termination to the Board of Directors with immediate effect
           following any material diminution of the EMPLOYEE's responsibilities
           or in the event that the EMPLOYEE is asked by the Board of Directors
           to perform any act which a reasonable person would consider illegal
           or unethical and the COMPANY has not withdrawn its request to the
           EMPLOYEE to perform such act within five (5) days of receiving a
           written notice from the EMPLOYEE to withdraw such a request.

     9.6.  The COMPANY may immediately terminate the TERM by sending a notice in
           writing to the EMPLOYEE with immediate effect:

           9.6.1. after a period of six (6) consecutive months (or aggregating
                  six (6) months in any twelve (12) month period) of absence by
                  the EMPLOYEE from his employment as a result of sickness or
                  disability, or

           9.6.2. after sixty (60) days of absence by the EMPLOYEE from his
                  employment as a result of sickness or disability and a
                  certification by three (3) physicians that the EMPLOYEE is
                  likely to be disabled for a period of at least six (6) months
                  from the initial date of sickness or disability. One (1) such
                  physician shall be chosen by the EMPLOYEE, one (1) shall be
                  chosen by the COMPANY and the third shall be chosen by the
                  other two (2) selected physicians. The EMPLOYEE agrees that in
                  the event of his sickness, he shall submit himself for
                  examination by such physicians if reasonably requested to do
                  so by the COMPANY. For the purposes of this section,
                  "disabled" or "disability" shall mean a temporary or permanent
                  substantial inability because of a physical or mental illness
                  to continue to discharge the EMPLOYEE's duties hereunder.

           Notwithstanding any other provision hereof, the EMPLOYEE's
           compensation during any period of the EMPLOYEE'S disability shall be
           reduced to the extent of any payments to the EMPLOYEE for such period
           under any disability plan or program maintained for the EMPLOYEE by
           the COMPANY for his benefit.

     9.7.  In the event of the termination of the TERM by virtue of section 9.6
           in addition to the payments described therein, the COMPANY shall pay
           to the EMPLOYEE a severance pay equal to one (1) month base salary in
           effect at termination for each calendar year, or part thereof, of the
           EMPLOYEE's employment with the COMPANY, the SUBSIDIARY, IHF Capital,
           Inc. or IHF Holdings, Inc. (or any predecessor companies of the
           COMPANY, the SUBSIDIARY, IHF Capital, Inc., or IHF Holdings, Inc.)
           after January 1, 1988.

     9.8.  In the event of the termination of the TERM by virtue of Section 9.3,
           9.4 or 9.5, the COMPANY shall pay to the EMPLOYEE a severance pay
           equal to the EMPLOYEE's base salary then in effect and the bonus
           referred to in Section 4 hereof, pro-rated for the period of the
           payment, for two (2) years following the termination of the TERM,
           provided, however, that if, due to the EMPLOYEE's resignation, there
           is a termination of the TERM, without any action by the COMPANY,
           during the one (1) year period following the EFFECTIVE DATE, the
           EMPLOYEE shall forego FIVE HUNDRED THOUSAND DOLLARS ($500,000) of any
           severance pay to which he would otherwise be entitled under this
           Section 9.8, unless the resignation resulting in such termination is
           submitted (i) in good faith by EMPLOYEE pursuant to Section 9.3 so
           that the EMPLOYEE can perform full time church service, or (ii)
           pursuant to Section 9.5. The bonuses shall be paid to the EMPLOYEE
           within ninety (90) days from the end of the COMPANY's applicable
           fiscal year, and the base salary shall be paid to the EMPLOYEE on the
           same payment schedule as was applicable to the EMPLOYEE during his
           employment.

10.  RESTRICTIVE COVENANT
     ---------------------

     10.1. EMPLOYEE shall not, during the TERM of his employment hereunder and
           for a period of four (4) years from its termination, either directly
           or indirectly, individually or in partnership, carry on or be engaged
           in, or concerned with or interested in, in any capacity whatsoever
           (including that of principal, agent, shareholder (subject to section
           5.6(b)), consultant, employee, lender or surety), any person, firm,
           association, syndicate or company engaged in or concerned with or
           interested in the conception, development, fabrication,
           transformation, marketing, distribution, advertising, franchising or
           sale in Canada, the United States or the European Economic Community,
           or any of them, of any products or services similar or identical to
           any of those manufactured, distributed, or sold by the COMPANY or any
           of its subsidiaries in the course of his employment with the COMPANY,
           its AFFILIATES and subsidiaries.

<PAGE>

     10.2. (a)  EMPLOYEE shall not, during the TERM of his employment hereunder
                and for a period of twelve (12) months from its termination,
                directly or indirectly, hire any Designated Employee.

           (b)  EMPLOYEE shall not, during the TERM of his employment hereunder
                and for a period of eighteen (18) months from its termination,
                directly or indirectly, solicit, interfere with or endeavor to
                entice away, any Designated Employee.

           (c)  For purposes of this Section 10.2., the term "Designated
                Employee" shall mean any person if that person is or was a
                Senior Employee of the COMPANY or any of its AFFILIATES or
                subsidiaries during the period beginning six (6) months prior to
                the termination of the TERM and ending (i) in the case of clause
                (a), twelve (12) months thereafter and (ii) in the case of
                clause (b), eighteen (18) months thereafter, but shall exclude
                Scott R. Watterson or any RELATIVE. For purposes of this Section
                10.2 "Senior Employee" shall mean each of the two hundred (200)
                most highly compensated employees of the COMPANY or any of its
                subsidiaries or AFFILIATES.

     10.3. Notwithstanding the foregoing, if termination of employment occurs
           under Section 9.3, 9.4 or 9.5, the period stipulated by Section 10.1
           is reduced to two (2) years; provided, however, that such period
           shall be extended by written notice to the EMPLOYEE within thirty
           (30) days of such termination up to two (2) years (i.e., up to a
           total of four (4) years from the termination of EMPLOYEE's
           employment) to the extent that the COMPANY, at its option, pays to
           the EMPLOYEE a severance pay equal to the EMPLOYEE's base salary then
           in effect and the bonus referred to in Section 4 hereof, pro-rated
           for the period of the payment, for a period of up to an additional
           two (2) years beyond that required to be paid by the COMPANY to the
           EMPLOYEE under Section 9.8. If paid at the COMPANY's option, such
           bonuses are to be paid within ninety (90) days from the end of the
           COMPANY's applicable fiscal year, and the base salary shall be paid
           to the EMPLOYEE on the same payment schedule as was applicable to the
           EMPLOYEE during his employment.

11.  REASONABLENESS AND REMEDIES
     ---------------------------

     11.1. The EMPLOYEE agrees that all the conditions and restrictions
           established in this Agreement are reasonable taking into account the
           circumstances surrounding this Agreement.

     11.2. The EMPLOYEE recognizes that in the view of the serious and
           irreparable harm which a violation hereof would have on the COMPANY,
           and without prejudice to the COMPANY's other remedies, injunctive
           relief would constitute an available and appropriate remedy and, to
           the extent permitted by law, the COMPANY shall not be required to
           furnish any security or bond in respect thereof.

12.  [INTENTIONALLY DELETED]
      ---------------------

13.  GENERAL LIMIT ON EMPLOYEE'S LIABILITY
     -------------------------------------

     13.1. As a general and overall limitation of the EMPLOYEE's liability to
           the COMPANY and AFFILIATES, the COMPANY agrees that the EMPLOYEE
           shall not be liable, for any reason except as set forth below, to the
           COMPANY or any of its AFFILIATES for an amount in excess of the
           amount provided in the next sentence hereof. Accordingly, as and for
           their sole remedy against the EMPLOYEE, the COMPANY agrees that for
           any claim or cause of action that the COMPANY or any of its
           AFFILIATES may have against the EMPLOYEE, whether past or future,
           their sole remedy shall be the forfeiture of the EMPLOYEE's salary,
           bonus and other compensation (but not the equity grant under Section
           6.1 hereof, which shall not be subject to forfeiture) received by the
           EMPLOYEE during the COMPANY's fiscal year in which the EMPLOYEE's
           termination occurred plus subsequently accruing compensation. In this
           regard, the COMPANY agrees, to the extent permitted by applicable
           law, to indemnify the EMPLOYEE from and against any liability the
           EMPLOYEE may have in excess of that provided in the immediately
           preceding sentence (i) hereunder or (ii) for any other claim the
           COMPANY or any of its AFFILIATES may have against the EMPLOYEE.
           However, nothing in this Section 13 shall limit the EMPLOYEE's
           liability to the COMPANY or any of its AFFILIATES or provide the
           EMPLOYEE any indemnity (i) for any act by the EMPLOYEE involving
           theft, fraud or embezzlement against the COMPANY or any of its
           AFFILIATES, (ii) in respect of any equitable remedy against the
           EMPLOYEE, (iii) in respect of any agreement listed on Schedule I of
           the Old Employment Agreement (as defined in that separate Termination
           Agreement among IHF Capital, Inc., IHF Holdings, Inc., SUBSIDIARY and
           EMPLOYEE, dated an even date hereof (the "Termination Agreement")) or
           any agreement heretofore or hereafter entered into by the EMPLOYEE
           after the date of the Old Employment Agreement, (iv) in respect of
           any claim or cause of action asserted by the COMPANY or any of its
           AFFILIATES as a counterclaim (to the extent of any liability the
           COMPANY or any of its AFFILIATES may have by reason of the EMPLOYEE
           claim in question) or as a set off, or (v) under Section 7, 9.3 or 10
           of this Agreement or under the Non-Competition Agreement (as defined
           in the First Amended and Restated Master Transaction Agreement dated
           as of October 12, 1994 among ICON Health & Fitness, Inc. and the
           other parties thereto (the "Master Transaction Agreement"));
           provided, however, that the aggregate of the liability of the
           EMPLOYEE to the COMPANY or any of its AFFILIATES under Section 7, 9.3
           or 10 of this Agreement or to the COMPANY, any of its AFFILIATES, IHF
           Capital, Inc. or any of its AFFILIATES (as defined in the Old
           Employment Agreement) under the Non-Competition Agreement and of the
           liability of the EMPLOYEE to IHF Capital, Inc. or any of its
           AFFILIATES (as so defined) in respect of claims subject to the
           $18,000,000 limits set forth in the third to last sentence of Section
           10.3.1.1 of the Master Transaction, shall not exceed $1,240,000.

14.  AMENDMENTS
     ----------

     14.1. This Agreement may be amended only by written instrument duly
           executed by all the parties hereby and approved by the Board of
           Directors of the COMPANY.

<PAGE>

15.  NO ASSIGNMENT
     -------------

     15.1. No party hereto shall assign, in whole or in part, this agreement or
           any of its or his respective rights and obligations hereunder without
           the express prior written consent of the other parties hereto; for
           this purpose the merger or reorganization of the COMPANY or the
           SUBSIDIARY or any AFFILIATE shall not be considered an assignment.

16.  NO WAIVER
     ---------

     16.1  No waiver by any party of any breach of the obligations of any other
           party hereunder shall be a waiver of any subsequent breach or of any
           other obligation, nor shall any forbearance to seek a remedy for any
           breach be a waiver of any rights and remedies with respect to any
           subsequent breach.

17.  SEVERABILITY
     ------------

     17.1. The invalidity of one of the provisions of this Agreement shall not
           invalidate or otherwise affect any of the other provisions of this
           Agreement, which shall remain in full force and effect, and each such
           invalid provision shall be construed by limiting it so as to be valid
           for the maximum extent permitted by law.

18.  CURRENCY, ETC.
     --------------

     18.1. All references in this Agreement to dollar of $ mean lawful currency
           of the United States of America.

     18.2. The COMPANY shall have the right to withhold, from or in respect of
           any payment, benefit or other item of compensation due to the
           EMPLOYEE hereunder, any federal, state or local taxes of any kind
           required by law to be withheld with respect thereto. In the event
           that at the time any withholding is required hereunder, the amount of
           cash payments from which the applicable withholding taxes may be
           deducted is less than the withholding taxes due, the EMPLOYEE shall
           pay to the COMPANY, in immediately available funds, an amount equal
           to such shortfall.

19.  GOVERNING LAW; ARBITRATION
     --------------------------

     19.1. This Agreement shall be governed by and construed in accordance with
           the domestic substantive laws of the State of Utah, without giving
           effect to any choice or conflict of law provision or rule that would
           cause the application of the domestic substantive laws of any other
           jurisdiction; provided, however, that any dispute relating to the
           provisions of Section 19.2 shall be governed by the United States
           Arbitration Act as then in force.

     19.2. Except solely as set forth in Section 19.4, each dispute, difference,
           controversy or claim arising in connection with or related or
           incidental to, or question occurring under, this Agreement or the
           subject matter hereof shall be finally settled under the Commercial
           Arbitration Rules of the American Arbitration Association (the "AAA")
           by an arbitral tribunal composed of three (3) arbitrators, at least
           one (1) of whom shall be an attorney experienced in corporate
           transactions, appointed by agreement of the parties in accordance
           with said Rules. In the event the parties fail to agree upon a panel
           of arbitrators from the first list of potential arbitrators proposed
           by the AAA, the AAA will submit a second list in accordance with said
           Rules. In the event the parties shall have failed to agree upon a
           full panel of arbitrators from said second list, any remaining
           arbitrators to be selected shall be appointed by the AAA in
           accordance with said Rules. If, at the time of the arbitration, the
           parties agree in writing to submit the dispute to a single
           arbitrator, said single arbitrator shall be appointed by agreement of
           the parties in accordance with the foregoing procedure, or, failing
           such agreement, by the AAA in accordance with said Rules. The
           foregoing arbitration proceedings may be commenced by any party by
           notice to all other parties.

     19.3. The place of arbitration shall be Salt Lake City, Utah.

     19.4. The parties hereto exclude any right of appeal to any court on the
           merits of the dispute. The provisions of this Section 19 may be
           enforced in any court having jurisdiction over the award of any of
           the parties or any of their respective assets and judgment on the
           award (including without limitation equitable remedies) granted in
           any arbitration hereunder may be entered in any such court. Nothing
           contained in this Section 19 shall prevent any party from seeking
           interim measures of protection in the form of pre-award attachment of
           assets or preliminary or temporary equitable relief.

     19.5. To the extent not prohibited by applicable law which cannot be
           waived, each of the parties hereto hereby waives, and covenants that
           he or it will not assert (whether as plaintiff, defendant, or
           otherwise), any right to trial by jury in any forum in respect of any
           issue, claim, demand, cause of action, action, suit or proceeding
           arising out of or based upon this Agreement or the subject matter
           hereof, in each case whether now existing or hereafter arising and
           whether in contract or tort or otherwise. Any of the parties hereto
           may file an original counterpart or a copy of this Section 19.5 with
           any court as written evidence of the consent of each of the parties
           hereto to the waiver of his or its right to trial by jury.

     19.6. Each of the parties hereto acknowledges that he or it has been
           informed by each other party that the provisions of Section 19
           constitute a material inducement upon which such party is relying and
           will rely in entering into this Agreement and the transactions
           contemplated hereby.

20.  BINDING ON HEIRS
     ----------------

<PAGE>

     20.1. This Agreement binds and inures to the benefit of the parties, their
           heirs, executors, administrators, successors and permitted assigns
           (subject to Section 9.2(b)).

21.  ENTIRE AGREEMENT
     ----------------

     21.1  This Agreement embodies the entire Agreement between the parties
           hereto concerning the subject matters mentioned herein and supersedes
           all previous discussions, correspondence, understandings or
           agreements, whether written or oral, with respect to such matters,
           except as provided in the Termination Agreement. This agreement shall
           constitute an agreement between employer and employee of the type
           referred to in Section 1, Chapter 28, Title 34 of the Utah Code,
           Annotated.

22.  ATTORNEY'S FEES
     ---------------

     22.1. In the event that any party hereto shall be found in default or in
           breach of this Agreement pursuant to arbitral or judicial
           proceedings, such party shall be liable to pay all reasonable
           attorney's fees, court costs and other related collection costs and
           expenses incurred by the non-defaulting or non-breaching party in
           pursuing its rights hereunder.

     23.   NOTICES

     23.1. All notices and other communications necessary or contemplated under
           this Agreement shall be in writing and shall be delivered in the
           manner specified herein or, in the absence of such specification,
           shall be deemed to have been duly given three (3) business days after
           mailing by certified mail, when delivered by hand, or when delivered
           by facsimile upon confirmation of receipt, or one (1) day after
           sending by overnight delivery service, to the respective addresses of
           the parties set forth below:

           a)   for notices and communications to the COMPANY or the SUBSIDIARY:

                HF HOLDINGS, INC.
                ICON HEALTH & FITNESS, INC.
                1500 South 1000 East
                Logan, Utah 84321
                Fax: 435-750-5238
                Attn: Board of Directors

           b)   For notices and communications to the EMPLOYEE:

                Gary E. Stevenson
                370 Abbey Lane
                Providence, Utah 84332

           c)   With a copy in each case to:

                Hutchins, Wheeler & Dittmar
                101 Federal Street
                Boston, MA         02110
                Fax: 617-951-1295
                Attn: Charles W. Robins, Esq.

                and

                Ropes & Gray
                One International Place
                Boston, MA 02110
                Fax: 617-951-7050
                Attn: R. Newcomb Stillwell, Esq.

24.  JOINT AND SEVERAL LIABILITY
     ---------------------------

     24.1. The COMPANY and the SUBSIDIARY  shall be jointly and severally
           liable in respect of all payment  obligations of the COMPANY
           hereunder.

<PAGE>

IN WITNESS WHEREOF the parties have hereto signed this 27th day of September,
1999.

                                                 HF HOLDINGS, INC.

______________________________                   By: /s/ S. Fred Beck
                                                     ----------------
Witness                                              Title: Vice President

                                                 ICON HEALTH & FITNESS, INC.

______________________________                   By: /s/ S. Fred Beck
                                                     -----------------
Witness                                              Title: Vice President

______________________________                   /s/ Gary E. Stevenson
                                                 ---------------------
Witness                                           GARY E. STEVENSON

<PAGE>

                                   SCHEDULE I
                                       To
                              EMPLOYMENT AGREEMENT
                                     Among
                               HF HOLDINGS, INC.
                          ICON HEALTH & FITNESS, INC.
                                      And
                               GARY E. STEVENSON

                                  Board Seats

                      Boy Scots of America, Local Council
                          Utah State Business College

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