Document:

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                                                                  EXHIBIT 10.19

                              FLORSHEIM GROUP INC.

                          EMPLOYMENT SECURITY AGREEMENT

     This Employment Security Agreement (the "Agreement") is entered into as of
this Eleventh day of December, 2000, by and between Florsheim Group Inc., a
Delaware corporation (the "Employer"), and Mark R. Medici (the "Executive").

                                   WITNESSETH

     WHEREAS, the Employer desires to employ the Executive as its Senior Vice
President, National Sales Manager of its domestic Wholesale Division;

     WHEREAS, the Employer desires to attract and retain well-qualified
executives and key personnel and to provide the security of continuity of
management to both itself and the Executive; and

     WHEREAS, the Executive and the Employer desire to enter into this
Agreement, which sets forth the terms of the security the Employer is providing
the Executive with respect to his employment;

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     NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows:

2.   DEFINITIONS. For purposes of this Agreement the following definitions shall
     apply:

     (l)  "Aggregate Compensation" means the sum of the Executive's (i) Base
          Pay, (ii) Bonus, and (iii) economic value of the Medical Plans,
          Retirement Plans and Welfare Plans.

     (m)  "Base Pay" means the Executive's annual base salary rate.

     (n)  "Bonus" means you shall receive an annual bonus in accordance with the
          Employer's bonus plan. The plan is based upon the Executive's
          achievement of budget, such budget objectives to be determined by the
          Employer's compensation committee in its sole discretion exercised in
          good faith, after consultation with management. If the Executive is
          terminated for any reason other than Cause or the Executive terminates
          his employment with the Employer for Good Reason, his bonus will be
          pro-rated for the fiscal year in which his employment terminates to
          the extent the Executive achieves budget for such year.

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     (o)  "Effective Date" means the date of this Agreement as set forth above.

     (p)  "Cause" means:

          (7)  The Board of Directors, in its reasonable discretion, concludes
               that the Executive has willfully failed to follow directions
               communicated to him by either an officer of the Employer to whom
               the Executive directly or indirectly reports or the Board of
               Directors;

          (8)  The Executive willfully engages in conduct that is materially
               injurious to the Employer, monetarily or otherwise;

          (9)  The Executive is convicted of, pleads nolo contendere to, pleads
               guilty to or confesses to an act of fraud, misappropriation or
               embezzlement or any felony;

          (10) The Board of Directors, in its reasonable discretion,
               determinates that the Executive is either habitually drunk or
               using illegal substances;

          (11) The Executive violates the Employer's sexual harassment policy;
               or

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          (12) The Executive commits an act of gross neglect or gross misconduct
               which the Board of Directors, in its reasonable discretion,
               determines is deemed to be good and sufficient Cause.

     (q)  "Good Reason" means:

          (4)  There is a material reduction in the Executive's Aggregate
               Compensation from one fiscal year to the next; or

          (5)  There is a material reduction in the Executive's
               responsibilities.

     (r)  "Medical Plan" means any health and major medical plan currently or
          hereafter made available by the Employer in which the Executive is
          eligible to participate.

     (s)  "Retirement Plans" means any qualified or supplemental defined benefit
          retirement plan or defined contribution retirement plan currently or
          hereinafter made available by the Employer in which the Executive is
          eligible to participate, or any private retirement arrangement
          maintained by the Employer solely for the Executive.

     (t)  "Severance Period" means the period beginning on the date the
          Executive's employment with the Employer terminates under

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          circumstances described in Section 3 and ending on the date that is
          twelve (12) months thereafter as specified in Section 6.

     (u)  "Welfare Plan" means any vision or dental plan, disability plan,
          survivor income plan or life insurance plan or other arrangement
          currently or hereafter made available by the Employer in which the
          Executive is eligible to participate.

     (v)  "Equity Interest" means prior to March 31, 2001, the Executive shall
          purchase in the open market the lesser of (i) 25,000 shares of Common
          Stock of the Employer or (ii) shares of Common Stock of the Employer
          having an aggregate purchase price (including commissions) of $50,000.
          In addition, upon the execution of this Agreement, the Executive shall
          receive options pursuant to the Employer's 1994 Stock Option Plan to
          purchase an additional 100,000 shares of the Employer's Common Stock
          as follows:

          (1)  50,000 shares at Market,

          (4)  25,000 shares at an exercise price of $5.00 per share, and

          (5)  25,000 shares at an exercise price of $7.50 per share.

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               For purposes hereof, "Market" shall mean the average closing
               price of the Employer's Common Stock on the five (5) trading days
               immediately prior to the Effective Date. Each tranche of options
               set forth above shall vest and become exercisable in accordance
               with the Employer's Stock Option Plan as detailed below:

                       Anniversary Date          % of Each Tranche to Vest

                            First                          33-1/3%
                           Second                          33-1/3%
                           Third                           33-1/3%

               All of the Executive's options shall expire on the tenth (10th)
               anniversary of the Effective Date and when vested, shall remain
               exercisable until the earlier to occur of (i) thirty (30) days
               after the Executive's employment terminates for any reason,
               including, but not limited to, the expiration of the Term of
               Employment or (ii) the tenth (10th) anniversary of the Effective
               Date or until such later exercise date as is permitted under the
               provisions of the Employer's 1994 Stock Option Plan. In the event
               of a Change in Control, all of the Executive's outstanding but
               unvested options will become immediately vested and exercisable.

               For purposes hereof Change in Control shall mean:

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          (1)  The acquisition (other than (i) from the Company or (ii) by
               Apollo (as hereinafter defined)) by any person, entity or
               "group", within the meaning of Section 13(d)(3) or 14(d)(2) of
               the 1934 Act, excluding, for this purpose, the Company or its
               subsidiaries, or any employee benefit plan of the Company or its
               subsidiaries, of beneficial ownership (within the meaning of Rule
               17d-3 promulgated under the 1934 Act) of 50% or more of either
               the then outstanding shares or the combined voting power of the
               Company's then outstanding voting securities entitled to vote
               generally in the election of directors; or

          (2)  Individuals who, as of the Effective Date constitute the Board
               (as of such date, the "Incumbent Board"), cease to constitute at
               least a majority of the Board as a result of an actual or
               threatened election contest relating to the election of the
               directors of the Company, as such terms are used in Rule 14a-11
               of Regulation 14A promulgated under the 1934 Act (a "Proxy
               Vote"); provided, that any person becoming a director subsequent
               to the first anniversary of the Effective Date whose election, or
               nomination for election by the Company's stockholders, was
               approved by a vote of at least a majority of the directors then
               comprising the Incumbent Board (other than as a result of a Proxy
               Vote) shall be considered as

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               though such person were a member of the Incumbent Board; or

          (3)  Approval by the stockholders of the Company of a reorganization,
               merger or consolidation, in each case, with respect to which
               persons who were the stockholders of the Company immediately
               prior to such reorganization, merger or consolidation do not,
               immediately thereafter, own, directly or indirectly, more than
               50% of the combined voting power entitled to vote generally in
               the election of directors of the reorganized, merged or
               consolidated company's then outstanding voting securities, and,
               as a result of any of these transactions, Apollo ceases to be the
               largest shareholder of the reorganized, merge or consolidated
               company or ceases to own at least 20% of the remaining
               outstanding shares of the reorganized, merged or consolidated
               company; or

          (4)  Approval by the stockholders of the Company of a sale of all or
               substantially all of the assets of the Company; or

          (5)  Approval by the stockholders of the Company of a liquidation or
               dissolution of the Company and, as a result of either of these
               transactions, Apollo ceases to be the largest shareholder of the
               Company, in each case, unless the transaction was approved by a
               majority of the directors then comprising the Incumbent Board.

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               For purposes of the definition of "Change of Control", the term
               "Apollo" shall mean Apollo Advisors, L.P., Lion Advisors, L.P.,
               Artemis America Partnership and any entity that controls, is
               controlled by or is under common control with Apollo Advisors,
               L.P., Lion Advisors, L.P. and Artemis America Partnership,
               including accounts under common management.

2.   TERM OF EMPLOYMENT. The employment hereunder shall be for a term of twelve
     (12) months commencing on the date hereof (the "Effective Date") and ending
     on the day immediately preceding the twelve (12) month anniversary of the
     Effective Date (the "Expiration Date"), unless terminated earlier pursuant
     to Section 3 of this Agreement (the "Term of Employment"). Beginning on the
     first anniversary of the Effective Date and on each anniversary date
     thereafter (each, an "Anniversary Date"), the Term of Employment shall
     automatically be extended for twelve (12) additional months unless such
     extension is objected to by either the Employer or the Executive in writing
     to the other party not less than ninety (90) days prior to an Anniversary
     Date.

3.   BENEFITS UPON TERMINATION OF EMPLOYMENT. If, at any time on or after the
     Effective Date and during the Term of this Agreement, (i) the employment of
     the Executive with the Employer is terminated by the Employer (or any
     successor to the Employer) for any reason other than Cause, or (ii) the
     Executive terminates

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     his employment with the Employer for Good Reason, the following provisions
     will apply:

     (e)  The Employer shall pay the Executive, during the Severance Period, an
          aggregate amount equal to one times the sum of the Executive's Base
          Pay at the highest rate in effect during the Term of Employment. Such
          amount shall be paid in substantially equal monthly installments over
          the Severance Period. The first of such payments will commence as soon
          as practicable following the date of the Executive's termination of
          employment.

     (f)  For purposes of all Retirement Plans (to the extent permissible
          thereunder), the Executive shall be given compensation credit and
          service credit for all purposes for, and shall be deemed to be an
          employee of the Employer during, the Severance Period, notwithstanding
          that he is not an employee of the Employer during the Severance
          Period.

     (g)  During the Severance Period, the Executive and his spouse and other
          dependents will continue to be covered by the Medical Plan and all
          Welfare Plans maintained by the Employer in which the Executive or
          spouse or dependents were participating immediately before the date of
          the Executive's termination as if the Executive continued to be an
          employee of the Employer. If, however, the Executive obtains

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          employment with another employer during the Severance Period, such
          Medical Plan coverage shall cease for the Executive and his spouse and
          other dependents. This Section 3(c) is not intended to impair the
          Executive's rights as otherwise provided by law (e.g., rights under
          Section 4980B of the Internal Revenue Code).

     (h)  The Executive shall be entitled to a payment attributable to
          compensation for unused vacation periods accrued as of the date of his
          termination of employment. The Executive shall not be entitled to
          payment for vacation periods that would have accrued had his
          employment continued during the Severance Period. Payment for accrued
          vacation shall be made to the Executive in a lump sum within ten (10)
          days following the date of the Executive's termination of employment.
          This Section 3(d) is not intended to impair the Executive's right to
          receive payment for accrued vacation as otherwise provided by law.

13.  DEATH. If the Executive dies during the Severance Period, the following
     rules shall apply:

     (e)  All amounts payable hereunder to the Executive shall, during the
          remainder of the Severance Period, be paid to his surviving spouse or
          other beneficiary designated in writing by the Executive. On the death
          of the survivor of the Executive and his spouse or other beneficiary,

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          payments shall be made to the Executive's estate.

     (f)  During the remainder of the Severance Period, the Executive's spouse
          and dependents, if any, shall be covered under the Medical Plan and
          Welfare Plans made available by the Employer to the Executive or his
          spouse or dependents immediately before the date of the Executive's
          death.

          Any benefits payable under this Section 4 are in addition to any other
          death benefits due to the Executive or his spouse or other
          beneficiaries or dependents from the Employer, including, but not
          limited to, payments under any of the Retirement Plans.

14.  TERMINATION FOR CAUSE OR WITHOUT GOOD REASON. If the Executive's employment
     with the Employer is terminated by the Employer for Cause or by the
     voluntary action of the Executive without Good Reason, the Executive's Base
     Pay in effect on the date of termination shall be paid through the date of
     termination, and the Employer shall have no further obligation to the
     Executive or his spouse or other beneficiary under this Agreement, except
     for payments or benefits under the terms of any compensation or benefits
     plans or arrangements, including any Retirement Plans, Medical Plan and
     Welfare Plans.

15.  EXPIRATION OF THIS AGREEMENT. In the event that the Employer objects to an
     extension of the Term of Employment, and the Executive continues to work
     until

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     the Term of Employment expires, the Employer shall pay the Executive his
     then current Annual Base Salary for a period of twelve (12) months from the
     date of termination of the Executive's employment. Such amount shall be
     paid in substantially equal monthly installments over a twelve (12) month
     Severance Period and during such period, the Employer shall continue to
     provide the Executive with fringe benefits, perquisites and other benefits
     as set forth in this Agreement. In addition, in the event that this
     Agreement expires during any portion of a fiscal year, the Executive shall
     be entitled to receive a pro-rated Bonus for such fiscal year, provided
     that the Executive achieves budget for such fiscal year. Notwithstanding
     the foregoing, if the Employer objects to an extension of the Term of
     Employment in conjunction with or following a Change of Control and the
     Executive continues to work until the Term of Employment expires, the
     Employer shall pay the Executive (i) his then current Annual Base Salary
     during the twelve (12) month Severance Period, (ii) his pro-rated Bonus for
     the fiscal year in which his employment terminates to the extent the
     Executive achieves budget for such year, and (iii) during the twelve (12)
     month Severance Period, the Employer shall continue to provide the
     Executive with fringe benefits, perquisites and other benefits as set forth
     in this Agreement. Thereafter, the Employer shall have no further
     obligation to the Executive under this Agreement.

16.  MITIGATION. The Executive shall not have a duty to mitigate damages.

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17.  CONFIDENTIALITY AND RESTRICTIVE COVENANTS.

     (a)  The Executive acknowledges that:

          (1)  The business in which the Employer is engaged is intensely
               competitive and that his employment by the Employer will require
               that he have access to and knowledge of confidential information
               of the Employer, including, but not limited to, certain/all of
               the Employer's plans for creation, acquisition or disposition of
               products, expansion plans, financial status and plans, products,
               improvements, formulas, designs or styles, method of
               distribution, customer lists, product development plans, rules
               and regulations, personnel information and trade secrets of the
               Employer, all of which are of vital importance to the success of
               the Employer's business (collectively, "Confidential
               Information");

          (2)  The direct or indirect disclosure of any Confidential Information
               would place the Employer at a serious competitive disadvantage
               and would do serious damage, financial and otherwise, to the
               Employer's business;

          (3)  By his training, experience and expertise, the Executive's
               services to the Employer will be special and unique; and

          (4)  If the Executive leaves the Employer's employ to work for a
               competitive business, in any capacity, it would cause the
               Employer irreparable harm.

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     (b)  Covenant Against Disclosure. The Executive therefore covenants and
          agrees that all Confidential Information relating to the business
          products and services of the Employer, any subsidiary, affiliate or
          customer shall be and remain the sole property and confidential
          business information of the Employer, free of any rights of the
          Executive. The Executive further agrees not to make any use of the
          Confidential Information or disclose Confidential Information to third
          parties except in the performance of his duties hereunder or with the
          prior written consent of the Employer. The obligations of the
          Executive under this Section 8 shall survive any termination of this
          Agreement. The Executive agrees that, upon any termination of his
          employment with the Employer, all Confidential Information in his
          possession, directly or indirectly, that is in written or other
          tangible form (together with all duplicates thereof) will forthwith be
          returned to the Employer and will not be retained by the Executive or
          furnished to any third party, either by sample, facsimile, film, audio
          or video cassette, electronic data, verbal communication or any other
          means of communication.

          The Executive shall preserve the confidentiality of this Agreement and
          its terms and conditions during the Term of Employment and thereafter.
          If the Executive breaches the confidentiality of this Agreement and
          its terms and conditions, the Executive will be liable to the Employer
          for its actual damages and may be subject to injunctive relief. In
          case of any such breach, the Employer may seek injunctive relief.

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     (g)  Non-competition. The Executive agrees that, during the Term of
          Employment and for the Severance Period following the termination of
          employment for any reason (including, without limitation, the
          expiration of this Agreement), the Executive will not, directly or
          indirectly, own, manage, operate, control or participate in the
          ownership, management or control of, or be connected as an officer,
          employee, partner, director, consultant, or otherwise with, or have
          any financial interest in, or aid or assist anyone else in the conduct
          of, any entity or business which competes with any business conducted
          by the Employer or any of its subsidiaries or affiliates either by (i)
          selling products to customers of the Employer that are similar to the
          products sold by the Employer; (ii) selling casual or dress footwear;
          (iii) operating similar retail operations engaged in the sale of
          footwear; or (iv) otherwise competing in a competitive business. The
          Executive's ownership of securities of a public company engaged in
          competition with the Employer not in excess of five (5) percent of any
          class of such securities shall not be considered a breach of the
          covenants set forth in this Section 8.

     (h)  Further Covenant. For the Severance Period following the date of the
          termination of the Executive's employment hereunder for any reason,
          the Executive will not, directly or indirectly, take any of the
          following actions,

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          and, to the extent the Executive owns, manages, operates, controls, is
          employed by or participates in the ownership, management, operation or
          control of, or is connected in any manner with, any business, the
          Executive will use his best efforts to ensure that such business does
          not take any of the following actions:

          (1)  Persuade or attempt to persuade any customer of the Employer to
               cease doing business with the Employer or any of its subsidiaries
               or affiliates, or to reduce the amount of business it does with
               the Employer or any of its subsidiaries or affiliates;

          (2)  Solicit for himself or any entity the business of a customer of
               the Employer or any of its subsidiaries or affiliates, or solicit
               any business which was a customer of the Employer or any of its
               subsidiaries or affiliates within six (6) months prior to the
               termination of the Executive's employment; and

          (3)  Persuade, attempt to persuade or hire any employee of the
               Employer or any of its subsidiaries or affiliates or any
               individual who was an employee of the Employer or any of its
               subsidiaries or affiliates during the two (2) years prior to the
               Executive's termination of employment, to leave the employ of the
               Employer or any of its subsidiaries or affiliates.

18.  APPLICABLE LAW. This Agreement shall be subject to, construed and
     interpreted pursuant to the laws of the State of Illinois without giving
     effect to the choice of law provisions thereof.

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19.  ENTIRE AGREEMENT. This Agreement contains the entire Agreement between the
     Employer and the Executive and supersedes any and all previous agreements,
     written or oral, among the parties relating to the subject matter hereof.
     No amendment or modification of the terms of this Agreement shall be
     binding upon the parties hereto unless reduced to writing and signed by the
     Employer and the Executive.

20.  SUCCESSORS. This Agreement shall be binding upon an inure to the benefit of
     the parties hereto and their respective heirs, representatives and
     successors.

MARK R. MEDICI                         FLORSHEIM GROUP INC.

/s/ Mark R. Medici                     By: /s/ Peter P. Corritori,Jr.
----------------------------               -----------------------------------
Senior Vice President,

National Sales Manager                 Name: Peter P. Corritori, Jr.
                                             ---------------------------------
Domestic Wholesale Division
                                       Its:  Chairman & CEO
                                             ---------------------------------<PAGE>   1

                                                                 EXHIBIT 10.20

                              FLORSHEIM GROUP, INC.
                          EMPLOYMENT SECURITY AGREEMENT

     This Employment Security Agreement (the "Agreement") is entered into as of
this 14th day of December, 1999, by and between Florsheim Group, Inc., a
Delaware corporation (the "Employer"), and Terry Blanchard (the "Executive").

                                   WITNESSETH

     WHEREAS, the Executive is currently employed by the Employer as its Vice
President and Controller;

     WHEREAS, the Employer desires to attract and retain well-qualified
executives and key personnel and to provide the security of continuity of
management to both itself and the Executive; and

     WHEREAS, the Executive and the Employer desire to enter into this
Agreement, which sets forth the terms of the security the Employer is providing
the Executive with respect to his employment;

     NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows:

     1. DEFINITIONS. For purposes of this Agreement the following definitions
shall apply:

     (a) "Aggregate Compensation" means the sum of the Executive's (i) Base Pay
and (ii) Bonus.

     (b) "Base Pay" means the Executive's annual base salary rate.

     (c) "Bonus" means the average annual incentive payment made to the
Executive for the immediately preceding two full fiscal years of the Employer,
or for such shorter period that the Executive has been employed by the Employer.
If the Executive has not been employed by the Employer for two full fiscal
years, "Bonus" shall mean the average annual incentive payment made to all of
the executives of the Employer who have entered into Employment Security
Agreements, not including the Chief Financial and Chief Operating Officers.

     (d) "Effective Date" means the date of this Agreement as set forth above.

<PAGE>   2

     (e) "Cause" means:

          (1)  The Board of Directors, in its reasonable discretion, concludes
               that the Executive has willfully failed to follow directions
               communicated to him by either an officer of the Employer to whom
               the Executive directly or indirectly reports or the Board of
               Directors;

          (2)  The Executive willfully engages in conduct that is materially
               injurious to the Employer, monetarily or otherwise;

          (3)  The Executive is convicted of, pleads nolo contendere to, pleads
               guilty to or confesses to an act of fraud, misappropriation or
               embezzlement or any felony;

          (4)  The Board of Directors, in its reasonable discretion,
               determinates that the Executive is either habitually drunk or
               using illegal substances;

          (5)  The Executive violates the Employer's sexual harassment policy;
               or

          (6)  The Executive commits an act of gross neglect or gross misconduct
               which the Board of Directors, in its reasonable discretion,
               determines is deemed to be good and sufficient cause.

     (f)  "Good Reason" means:

          (1)  There is a material reduction in the Executive's Aggregate
               Compensation from one fiscal year to the next;

          (2)  There is a material reduction in the Executive's Medical Plan,
               Retirement Plans, or Welfare Plans; or

          (3)  There is a material reduction in the Executive's
               responsibilities.

     (g) "Medical Plan" means any health and major medical plan currently or
hereafter made available by the Employer in which the Executive is eligible to
participate.

     (h) "Retirement Plans" means any qualified or supplemental defined benefit
retirement plan or defined contribution retirement plan currently or hereinafter
made available by the Employer in which the Executive is eligible to
participate, or any private retirement arrangement maintained by the Employer
solely for the Executive.

     (i) "Severance Period" means the period beginning on the date the
Executive's employment with the Employer terminates under circumstances
described in Section 3 and ending on the date that is 12 months thereafter.

<PAGE>   3

     (j) "Welfare Plan" means any vision or dental plan, disability plan,
survivor income plan or life insurance plan or other arrangement currently or
hereafter made available by the Employer in which the Executive is eligible to
participate.

     2. TERM. The term of this Agreement (the "Term") shall be the period
beginning on the Effective Date and terminating the date that (i) is 12 months
after the date of the Executive's termination of employment under circumstances
described in Section 3, (ii) the Executive's employment is terminated for Cause,
or (iii) the Executive terminates his employment with the Employer without Good
Reason.

     3. BENEFITS UPON TERMINATION OF EMPLOYMENT. If, at any time on or after the
Effective Date (i) the employment of the Executive with the Employer is
terminated by the Employer (or any successor to the Employer) for any reason
other than Cause, or (ii) the Executive terminates his employment with the
Employer for Good Reason, the following provisions will apply:

     (a) The Employer shall pay the Executive, during the Severance Period, an
aggregate amount equal to one times the sum of the Executive's (i) Base Pay at
the highest rate in effect during the Term and (ii) Bonus. Such amount shall be
paid in substantially equal monthly installments over the Severance Period. The
first of such payments will commence as soon as practicable following the date
of the Executive's termination of employment.

     (b) For purposes of all Retirement Plans (to the extent permissible
thereunder), the Executive shall be given compensation credit and service credit
for all purposes for, and shall be deemed to be an employee of the Employer
during, the Severance Period, notwithstanding that he is not an employee of the
Employer during the Severance Period.

<PAGE>   4

     (c) During the Severance Period, the Executive and his spouse and other
dependents will continue to be covered by the Medical Plan and all Welfare Plans
maintained by the Employer in which the Executive or spouse or dependents were
participating immediately before the date of the Executive's termination as if
the Executive continued to be an employee of the Employer. If, however, the
Executive obtains employment with another employer during the Severance Period,
such Medical Plan coverage shall cease for the Executive and his spouse and
other dependents. This Section 3(c) is not intended to impair the Executive's
rights as otherwise provided by law (e.g. rights under Section 4980B of the
Internal Revenue Code).

     (d) The Executive shall be entitled to a payment attributable to
compensation for unused vacation periods accrued as of the date of his
termination of employment. The Executive shall not be entitled to payment for
vacation periods that would have accrued had his employment continued during the
Severance Period. Payment for accrued vacation shall be made to the Executive in
a lump sum within 10 days following the date of the Executive's termination of
employment. This Section 3(d) is not intended to impair the Executive's right to
receive payment for accrued vacation as otherwise provided by law.

     4. DEATH. If the Executive dies during the Severance Period, the following
rules shall apply:

     (a) All amounts payable hereunder to the Executive shall, during the
remainder of the Severance Period, be paid to his surviving spouse or other
beneficiary designated in writing by the Executive. On the death of the survivor
of the Executive and his spouse or other beneficiary, payments shall be made to
the Executive's estate.

     (b) During the remainder of the Severance Period, the Executive's spouse
and dependents, if any, shall be covered under the Medical Plan and Welfare
Plans made available by the Employer to the Executive or his spouse or
dependents immediately before the date of the Executive's death.

     Any benefits payable under this Section 4 are in addition to any other
death benefits due to the Executive or his spouse or other beneficiaries or
dependents from the Employer, including, but not limited to, payments under any
of the Retirement Plans.

     5. TERMINATION FOR CAUSE OR WITHOUT GOOD REASON. If the Executive's
employment with the Employer is terminated by the Employer for Cause or by the
voluntary action of the Executive without Good Reason, the Executive's Base Pay
in effect on the date of termination shall be paid through the date of
termination, and the Employer shall have no further obligation to the Executive
or his spouse or other beneficiary under this Agreement, except for payments or
benefits under the terms of any compensation or benefits plans or arrangements,
including any Retirement Plans, Medical Plan and Welfare Plans.

     6. MITIGATION. The Executive shall not have a duty to mitigate damages.

     7. RESTRICTIVE COVENANTS. The Executive shall be precluded from working
with any competitor companies for the Term.

     8. CONFIDENTIALITY. The Executive shall preserve the confidentiality of
this Agreement and its terms and conditions during the Term and thereafter. If
the Executive breaches the confidentiality of this Agreement and its

<PAGE>   5

terms and conditions, the Executive will be liable to the Employer for its
actual damages and may be subject to injunctive relief. In case of any such
breach, the Employer may seek injunctive relief.

     9.  APPLICABLE LAW. This Agreement shall be subject to, construed and
interpreted pursuant to the laws of the State of Illinois without giving effect
to the choice of law provisions thereof.

     10. ENTIRE AGREEMENT. This Agreement contains the entire Agreement between
the Employer and the Executive and supersedes any and all previous agreements,
written or oral, among the parties relating to the subject matter hereof. No
amendment or modification of the terms of this Agreement shall be binding upon
the parties hereto unless reduced to writing and signed by the Employer and the
Executive.

     11. NO EMPLOYMENT CONTRACT. Nothing contained in this Agreement shall be
construed to be an employment contract between the Executive and the Employer.
The Executive is employed at will, and (subject to the payments to be made and
the benefits to be provided by the Employer to the Executive hereunder) the
Employer may terminate the Executive's employment at any time, with or without
cause.

     12. SUCCESSORS. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, representatives and
successors.

                                      * * *

F. TERRENCE BLANCHARD                       FLORSHEIM GROUP, INC.

/s/  F. Terrence Blanchard                  By: /s/ Richard J. Anglin
------------------------------------            ------------------------------
Vice President and Controller
                                            Name:   Richard J. Anglin
                                                    --------------------------

                                            Its:  EVP, CFO
                                                  ----------------------------

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