Document:

<PAGE>   1
                                                                   Exhibit 10.32

                          CONSULTING SERVICES AGREEMENT

         THIS CONSULTING SERVICES AGREEMENT (this "Agreement"), dated September
__, 2000, is made to be effective as of the 1st day of January, 2000 by and
between R.G. BARRY CORPORATION, an Ohio corporation (the "Company"), and
FLORENCE ZACKS MELTON ("Consultant").

                                   WITNESSETH:

         WHEREAS, the Company is engaged in the business of manufacturing,
marketing and selling a variety of slipper-type footwear and other products;

         WHEREAS, Consultant is a founder of the Company and has been engaged
for many years in the design and development of new products and product
constructions for the Company; and

         WHEREAS, on the terms and conditions set forth herein, the Company
desires to engage Consultant as a consultant to the Company and Consultant
desires to be so engaged by the Company.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants in this Agreement, the Company and Consultant agree as follows:

         1.   ENGAGEMENT OF CONSULTANT. The Company hereby retains Consultant as
an independent contractor and the Consultant hereby accepts such retention and
engagement as an independent contractor, all in accordance with the terms and
conditions of this Agreement.

         2.   TERM OF ENGAGEMENT. The Consultant's engagement under this
Agreement will begin on January 1, 2000 (the "Effective Date") and will continue
until December 31, 2001 (the "Consulting Period"). The Consulting Period will be
automatically extended for additional 12 month periods, unless at least 30 days
prior to the end of the last day of the then current term of the Consulting
Period, either party gives written notice to the other party that it does not
wish to extend the Consulting Period.

         3.    SERVICES. During the Consulting Period, the Consultant shall make
herself available to provide, and so provide, the consulting and advisory
services described below (the "Services") as required, from time to time, by the
Chief Executive Officer or Board of Directors of the Company (the "Board"), at
such times as may be mutually agreed between Consultant and the officer
requesting such services or the Board, provided that the Services shall not
require Consultant to travel outside the Central Ohio area. Consultant shall
devote such time and energy as reasonably required to perform the Services. The
Services shall include the following:

              (i)   Consult with Company personnel regarding product designs and
                    constructions and manufacturing techniques;

<PAGE>   2

              (ii)  Serve as a representative of the Company to promote and
                    enhance the Company's image, traditions and reputation;

              (iii) Make occasional presentations to the Company's associates
                    regarding the Company's traditions, values and philosophy
                    and similar matters; and

              (iv)  Consult on such other matters pertaining to the Company's
                    business as the Company may reasonably request.

         4.   CONSULTING FEE. As consideration for Consultant's performance of
the Services, the Company shall pay Consultant during the Consulting Period a
quarterly fee of $15,000. On the date of signing of this Agreement, the Company
will pay to Consultant the sum of $45,000 for Services rendered during the first
nine months of 2000. Thereafter, so long as this Agreement is in effect, the
Company shall pay to Consultant the amount of $15,000 on the first day of each
and every October, January, April and July for Services for the following
three-month period. All ordinary and reasonable out-of-pocket expenses incurred
by Consultant in connection with the performance of the Services shall be
reimbursed to Consultant by the Company, provided that if such expenses are
reasonably expected to exceed $5,000 in the aggregate during any six-month
period, Consultant shall have such expenses approved in advance by the Chief
Executive Officer of the Company.

         5.   TERMINATION. If Consultant dies or becomes Permanently Disabled
during the Consulting Period, this Agreement shall automatically terminate on
the date of Consultant's death or Permanent Disability, as applicable.
Consultant shall be deemed to have a "Permanent Disability" or to be
"Permanently Disabled" if she is unable to perform, by reason of physical or
mental incapacity, the Services for a total period of 120 days in any 360-day
period. The Board shall determine, according to the facts then available,
whether and when Consultant became Permanently Disabled. Such determination by
the Board shall not be arbitrary or unreasonable, but such decision by the Board
shall be final and binding on the parties hereto. If Consultant becomes
Permanently Disabled or dies, the Consultant shall be entitled to receive no
further payments under this Agreement. If this Agreement is terminated by the
Company for any other reason (other than as a result of Consultant's continuing
breach of this Agreement after receipt of written notice of the breach and her
failure to cure the breach within a reasonable period of time following such
notice), the Company shall continue to pay Consultant the consulting fees
provided for in Section 4 for the remainder of the Consulting Period.

         6.   MISCELLANEOUS.

              (a)   Counterparts.  This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same Agreement.

              (b)   Entire Agreement. Except as otherwise expressly set forth
herein, this Agreement sets forth the entire understanding of the parties, and
supersedes and preempts all prior oral or written understandings and agreements
with respect to the subject matter hereof.

                                      -2-

<PAGE>   3

              (c)   Governing Law. This Agreement shall be construed and
enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Agreement shall be governed by,
the laws of the State of Ohio without giving effect to provisions thereof
regarding conflict of laws.

              (d)   Arbitration. Any controversy or claim arising out of or
relating to this Agreement, or the breach thereof, shall be submitted to
arbitration by the American Arbitration Association in Columbus, Ohio, and the
determination of the American Arbitration Association shall be final and
absolute. The arbitration and the arbitrator shall be governed by the Commercial
Arbitration Rules of the America Arbitration Association and the pertinent
provisions of the laws of the State of Ohio relating to arbitration. Any
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. Compensation and benefits provided hereunder shall
continue while any proceeding entered into pursuant to this section is in
progress.

              (e)   Amendment and Waivers.  Any provisions of the Agreement may
be amended or waived only with the prior written consent of the Company and
Consultant.

              (f)   No Effect on Royalty Agreement.  Nothing contained in this
Agreement shall be deemed an amendment or otherwise affect any other agreement
presently in effect between
the Company and Consultant.

              IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.

                                       COMPANY:

                                       R.G. BARRY CORPORATION

                                       By:   /s/ Daniel D. Viren
                                           -------------------------------------

                                       Its:  CFO
                                            ------------------------------------

                                       CONSULTANT:

                                             /s/ Florence Zacks Melton
                                       -----------------------------------------
                                       Florence Zacks Melton

                                      -3-<PAGE>   1
                                                                   Exhibit 10.33

                                    AGREEMENT

          THIS AGREEMENT made and entered into this 7th day of February, 1952 by
and between R. G. Barry Corporation, an Ohio corporation having its principal
office at 78 East Chestnut Street, Columbus, Ohio (hereinafter referred to as
"Barry"), and Florence Zacks (hereinafter referred to as "Zacks").

                                   WITNESSETH:

          WHEREAS, Zacks has heretofore created and designed certain products
now manufactured by Barry and for which she has been receiving various
designer's fees as from time to time agreed upon by the parties, and

          WHEREAS, the parties desire to ratify and confirm the basis for
payments previously made by Barry to Zacks and to evidence in writing the
agreement of the parties as to future payments to be made by Barry to Zacks;

          NOW THEREFORE in consideration of the premises and the mutual
covenants hereinafter contained, it is agreed by and between the parties as
follows:

          Zacks agrees that Barry may manufacture and sell and Barry agrees to
pay to Zacks three percent (3%) of all gross income received by Barry from the
sale of the following products created and designed by Zacks, to-wit:

          1.  All snap-on shoulder pads including those known as and sold under
              the names Barry Foam and Barry Bone.

          2.  All slippers known as and sold under the names of Angel Treads for
              women, King Barry Angel Treads for men and Platforms.

          3.  Laundry bags known as and sold under the name of Swishees.

          4.  Any new items hereafter created and designed by Zacks and
              manufactured and sold by Barry.

<PAGE>   2

          Gross income is hereby defined as total sales less returns. excluding,
however, the proceeds from sales of any seconds, close-outs or merchandise sold
below regular list price.

          With respect to any new items no fee shall be payable to Zacks from
Barry until such time as Barry shall show a profit on any such new item, profit
to be calculated in accordance with the customary past practice of Barry.

          All sums due and payable to Zacks in accordance with the terms of this
agreement shall be credited to her account on or before the last day of each
succeeding month with respect to all products billed during the preceding month.

          Barry agrees to make full and true returns to Zacks (which returns
shall be under oath if requested) within one month after the close of each
fiscal year of Barry of all gross income received by the corporation from the
sale of the articles herein licensed to it for manufacture and sale.

          All license fees due Zacks from Barry shall be accrued monthly but
Barry may defer payment thereof up to two and one-half months after the close of
each fiscal year of Barry. Upon failure of Barry to make returns as herein
provided or to make payment to Zacks of the license fees as herein provided
within two and one-half months after the close of each fiscal year of Barry,
Zacks may terminate this license by serving written notice upon Barry; but Barry
shall not thereby be discharged from any liability to Zacks for any license fees
due at the time of the service of said notice.

          This contract shall not apply to certain shoulder pads created and
designed by Florence Zacks covered by patents assigned by her to Barry with
respect

                                      -2-
<PAGE>   3

to which a special agreement entered into by the parties under date of April 7,
1947 shall remain in full force and effect. The parties are also executing as of
this date separate licensing agreements with respect to the manufacture by Barry
of shoulder pads covered by U. S. Patent No. 2,497,808, and washable scuffs with
foam rubber soles covered by U. S. Patent No. 2,563,092, which patents are owned
by Zacks, and with respect to said articles the terms of said special licensing
agreements shall supercede this agreement.

          Zacks agrees that she will offer and make available to Barry
exclusively for manufacture and sale all products which may hereafter be created
and designed by her. In the event, however, Barry shall not agree to undertake
the manufacture and sale of any new product, the manufacturing and sale rights
of which shall be offered to it by Zacks, within thirty (30) days after such
offer, Zacks shall be free to offer such new products and the rights of
manufacture and sale therefor to persons, firms or corporations other than
Barry, if she so desires.

          In the event Barry shall undertake the manufacture and sale of any
product or products created and designed by Zacks, it shall have the exclusive
privilege to continue the manufacture and sale thereof subject to the
limitations hereinafter contained. Barry agrees that it will not sell, transfer
or assign to any other person, firm or corporation the rights hereby granted to
it by Zacks without her consent in writing.

          Barry reserves the right to discontinue the manufacture and sale of
any product or products created and designed by Zacks at any time. If, however,
Barry shall discontinue the manufacture and sale of any such product or products
for a period of three (3) months, Zacks shall be free to license any other
person, firm or corporation to manufacture and sell such product or products
created and designed by her and also to terminate the right of Barry to
manufacture and sell the same in the event Zacks shall so desire. In the event
Barry shall be adjudged a bankrupt or if it shall be placed in receivership, or
if it shall make an assignment for the benefit of its creditors, then and in any
one of such events Zacks shall be free to license any

                                      -3-
<PAGE>   4

other person, firm or corporation to manufacture and sell all or
any of the products covered by this agreement created and designed by her, and
also to terminate all or any of the rights herein granted to Barry in the event
Zacks shall so desire.

          This agreement shall supercede all previous agreements between the
parties with respect to creator's and designer's fees and royalties payable by
Barry to Zacks.

          IN WITNESS WHEREOF, the parties hereto have executed this agreement as
of the day and year first above-mentioned.

In the Presence of:                       R. G. BARRY CORPORATION

 /s/ Richard F. Sater                     By: /s/ Aaron Zacks
----------------------------------            ----------------------------------

 /s/ Carl H. Tangeman                      Sec & treasurer
----------------------------------        --------------------------------------

 /s/ Richard F. Sater                      /s/ Florence Zacks
----------------------------------        --------------------------------------
                                          Florence Zacks
 /s/ Charles D. Minor
----------------------------------

                                      -4-

<PAGE>   5

                             AGREEMENT OF AMENDMENT

          THIS AGREEMENT, made and entered into this 18th day of September,
1961, by and between R. G. BARRY CORPORATION (hereinafter referred to as
"BARRY"), and FLORENCE ZACKS (hereinafter referred to as "ZACKS"), WITNESSETH:

          WHEREAS, Barry and Zacks under date of February 7, 1952 entered into
an agreement whereby Zacks agreed that Barry may manufacture and sell, and Barry
agreed to pay to Zacks three percent (3%) of all gross income received by Barry
from the sale of certain products created and designed by Zacks, all as in said
agreement more particularly set forth, and

          WHEREAS, Barry desires to make a public offering of 100,000 shares of
its stock of the par value of $1.00 each at $5.00 per share through Arnold
Malkan & Co., Inc. as Underwriter, and said Underwriter is reluctant to
undertake the sale of said shares at such price unless there is a reduction in
the rate of the payments to be made by Barry to Zacks under the aforementioned
agreement, and is insistent that a substantial reduction be made as a condition
precedent to the proposed underwriting, and

          WHEREAS, the new capital to be received by Barry from such a sale of
additional shares may enable it to increase its business generally with a
resulting increase in the manufacture and sale of the products created and
designed by Zacks, and

          WHEREAS, Zacks desires to be helpful in connection with the issuance
by Barry of stock to the public,

          NOW, THEREFORE, in consideration of the premises it is agreed by and
between the parties hereto as follows:

          If, on or before February 15, 1962, Barry, pursuant to Underwriting
Agreement with Arnold Malkan & Co., Inc., shall sell all of 100,000 shares of
its stock of the par value of

<PAGE>   6

$1.00 each at $5.00 per share less underwriting discounts, commissions and
expenses, then and in such event the percentage to be paid Zacks by Barry for
1961 and each subsequent year under the aforesaid agreement of February 7, 1952
for the right to manufacture and sell products of Zack's design, not patented,
shall be one and one-half percent (1-1/2%) instead of three percent (3%).

          It is expressly understood that this Agreement of Amendment shall be
effective only in the event of consummation of the sale of shares of Barry
hereinabove set forth, and that if such sale be not consummated, this Amendment
shall be of no force and effect.

          IN WITNESS WHEREOF, the parties hereto have executed this agreement as
of the day and year first abovementioned. In the Presence of:

                                           R. G. BARRY CORPORATION

/s/ Edward M. Stan                         By /s/  Harry Streim
------------------------------------          ----------------------------------
    Edward M. Stan                                 Harry Streim, President

/s/ Richard F. Sater                          /s/  Florence Zacks
------------------------------------          ----------------------------------
    Richard F. Sater                               Florence Zacks

                                       2

<PAGE>   7

                               SECOND AMENDMENT TO
                                    AGREEMENT

          THIS AGREEMENT, made and entered into this 15th day of April, 1968, by
and between R. G. BARRY CORP. (hereinafter referred to as "BARRY") and FLORENCE
ZACKS (hereinafter referred to as "ZACKS",

                              W I T N E S S E T H:

          WHEREAS, BARRY and ZACKS, under date of February 7, 1952, entered into
an agreement whereby ZACKS agreed that BARRY would manufacture and sell, and
BARRY agreed to pay to ZACKS three percent (3%) of all gross income received by
BARRY from the sale of certain products created and designed by ZACKS, all as in
said agreement more particularly set forth, and

          WHEREAS, under date of September 18, 1961, the aforesaid agreement was
amended to reduce from three percent (3%) to one and one-half percent (1-1/2%),
the fees to be paid by BARRY to ZACKS, and

          WHEREAS, BARRY and ZACKS mutually desire to remove any ambiguity in
the original agreement regarding the period of time said agreement is to be in
force, and

          WHEREAS, BARRY desires in connection with a proposed secondary
underwriting to have its liability under the aforesaid agreement more definite
and certain, and

          WHEREAS, ZACKS feels it is in her best interest at this time to
resolve any doubt as to the term of said agreement, and to reduce on a sliding
scale the fees to be paid by BARRY to ZACKS in the event a successful secondary
underwriting can be achieved.

          NOW, THEREFORE, in consideration of the premises, it is agreed by and
between the parties hereto that said agreement of February 7, 1952, as amended
September 18, 1961, be, and is hereby further amended as follows:

          l.  After the death of ZACKS, BARRY shall continue to have the right
to manufacture and sell as set forth in the original agreement of February 7,
1952. For a period of five (5) years commencing on the date of ZACKS' death,
BARRY shall be obligated to make payments in the same manner and respect as if
ZACKS were still living. BARRY shall pay such sums to such beneficiaries as
ZACKS may designate in a writing delivered to the company. In the absence of
such a designation, BARRY shall make such payments to the estate of ZACKS.

          2.  Commencing one (1) year after the completion of a secondary stock
underwriting, the consideration to be paid ZACKS by BARRY shall be changed from
one and one-half percent (1-1/2%) of gross income from the sale of products
created and designed by ZACKS to one and four-tenths percent (1-4/10%); one (1)
year thereafter the consideration to be paid ZACKS by BARRY shall be further
changed from one and four-tenths percent (1-4/10%) of said gross income to one
and three-tenths percent (1-3/10%); one (1) year thereafter the consideration
shall be changed from one and three-tenths percent (1-3/10%) of said gross
income to one and two-tenths percent (1-2/10%); one (1) year thereafter said
consideration shall be

<PAGE>   8

changed from one and two-tenths percent (1-2/10%) of said gross income to one
and one-tenth percent 1-1/10%) and one (1) year thereafter the consideration to
be paid ZACKS by BARRY shall be changed from one and one-tenths percent 1-1/10%)
of said gross income to one percent (1%). Thereafter, the consideration to be
paid ZACKS by BARRY shall remain at one percent (1%) of gross income from the
sale of products created and designed by ZACKS until the termination of this
agreement, as provided for in paragraph 1 of this Second Amendment to the
Agreement.

          IN WITNESS WHEREOF, the parties hereto have executed this agreement as
of the day and year first above mentioned.

Signed in the presence of:

                                       R. G. BARRY CORPORATION

 /s/ Rita L. Tapia                     By  /s/ Harry Streim
----------------------------------        --------------------------------------
                                          Harry Streim, Chairman of the Board,
                                          Chief Executive Officer
 /s/ Janet L. Anderson
----------------------------------

As to R. G. Barry Corporation

 /s/ Rita L. Tapia                         /s/ Florence Zacks
----------------------------------       ---------------------------------------
                                         Florence Zacks
                                         now Florence Melton
 /s/ Janet L. Anderson
----------------------------------
As to Florence Zacks

                                      -2-

<PAGE>   9

                                 THIRD AMENDMENT

          THIS AMENDMENT is made this 31st day of October, 2000 by and between
R.G. Barry Corporation, an Ohio corporation (the "Company"), and Florence Zacks
Melton ("Mrs. Melton");

                              W I T N E S S E T H:

          WHEREAS, the Company and Mrs. Melton are parties to an Agreement dated
February 7, 1952, as amended by an Agreement of Amendment dated September 18,
1961 and a Second Amendment dated April 15, 1968 (the "Royalty Agreement")
pursuant to which Mrs. Melton granted to the Company the exclusive right to
utilize various product designs owned by her, including designs created by her
after the date of the Royalty Agreement, in exchange for the Company's agreement
to pay to Mrs. Melton royalties on its sale of products based on Mrs. Melton's
designs;

          WHEREAS, Mrs. Melton has also granted to the Company the exclusive
right to use all patent rights owned by her which relate to slippers and other
products manufactured or sold by the Company and its affiliates;

          WHEREAS, Mrs. Melton has agreed to grant to the Company the option to
purchase and acquire her ownership interest in the product designs and patent
rights described above upon the occurrence of her death or a change of control
of the Company;

          WHEREAS, the Company has agreed to grant to Mrs. Melton, her assigns
and estate, the right to require the Company to purchase and acquire the product
designs and patent rights described above on the occurrence of a change of
control; and

<PAGE>   10

          WHEREAS, the parties hereto desire to amend the Royalty Agreement to
reflect their agreements described above;

          NOW, THEREFORE, in consideration of the premises and the mutual
covenants of the parties contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree to amend the Royalty Agreement as follows:

          1.  The following paragraphs are hereby added to the Royalty
              Agreement:

              A.   Option of Company to Purchase Product Designs and Patent
          Rights. Subject to the terms and conditions set forth below, Mrs.
          Melton hereby grants to the Company the right and an option (the
          "Company Option") to purchase all of her right, title and ownership
          interest in and to the following (together, the "Optioned Property"):
          (i) all slippers and other footwear products that have been designed
          and/or created by Mrs. Melton, either alone or with others, including
          all product designs, constructions, inventions, know-how and rights
          related thereto, (ii) all other items, products, designs and
          constructions created by Mrs. Melton which have been manufactured or
          sold by the Company or which have been presented to the Company for
          possible manufacture or sale by the Company, and (iii) all patents and
          patent rights of Mrs. Melton which relate to the manufacture of
          slippers and other footwear products. The Company Option may be
          exercised by the Company at any time during the six-month period
          following the earlier of (A) the death of Mrs. Melton or (B) the
          occurrence of a Change of Control (as defined below) of the Company.
          The Company Option shall be exercisable by the Company by giving
          written notice (the "Company Exercise Notice") of exercise to Mrs.
          Melton or to her assigns or estate, as applicable. The purchase price
          (the "Purchase Price") for the

                                       2
<PAGE>   11

          Optioned Property shall be $750,000 if the Company Option is exercised
          following a Change of Control of the Company that occurs prior to the
          death of Mrs. Melton and $500,000 if the Company Option is exercised
          following the death of Mrs. Melton if her death occurs prior to the
          occurrence of a Change of Control of the Company.

               The Company Exercise Notice shall set forth a date for the
          closing of the purchase and sale of the Optioned Property, which shall
          be a date not later than 15 days from the date the Company Exercise
          Notice is mailed or otherwise delivered (the "Company Option
          Closing"). At the Company Option Closing, Mrs. Melton or her assigns
          or estate, as the case may be, shall execute and deliver to the
          Company an assignment of the Optioned Property to the Company, free
          and clear of any liens or other encumbrances, and the Company shall
          pay the Purchase Price to Mrs. Melton or to her assigns or estate, in
          cash or immediately available funds. Mrs. Melton or her assigns or
          estate, as the case may be, shall also execute and deliver all other
          instruments of transfer or conveyance that the Company reasonably
          deems necessary to vest title in the Optioned Property in the Company.

               For purposes of this Amendment, a "Change of Control" of the
          Company shall be deemed to have occurred if (i) any individual or
          entity or group of related individuals or entities (an "Acquiring
          Person"), shall hereafter acquire (or disclose the previous
          acquisition of ) beneficial ownership of common shares of the Company
          which results in the Acquiring Person possessing more than 20% of the
          total voting power of the Company's outstanding common shares; or (ii)
          as the result of, or in connection with, any tender or exchange offer,
          merger or other business combination, sale of assets or contested
          election, or any combination of the foregoing transactions, the
          individuals who

                                       3
<PAGE>   12

          were directors of the Company immediately before the completion of
          such transaction shall cease to constitute a majority of the Board of
          Directors of the Company or any successor to the Company.

               B.  Option of Mrs. Melton to Require Company to Purchase the
          Optioned Property. Subject to the terms and conditions set forth
          below, the Company hereby grants to Mrs. Melton, her assigns and
          estate the right and option (the "Melton Option") to require the
          Company to purchase the Optioned Property. The Melton Option may be
          exercised by Mrs. Melton or her estate or assigns at any time during
          the six-month period following a Change of Control of the Company that
          occurs prior to the death of Mrs. Melton. The Melton Option shall be
          exercisable by Mrs. Melton or her assigns or estate by giving written
          notice (the "Melton Exercise Notice") of exercise of the Melton Option
          to the Company. The Purchase Price for the Optioned Property upon
          exercise of the Melton Option shall be $750,000.

               The Melton Exercise Notice shall set forth a date for the closing
          of the purchase and sale of the Optioned Property, which shall be a
          date not later than 15 days from the date the Melton Exercise Notice
          is mailed or otherwise delivered (the "Melton Option Closing"). At the
          Melton Option Closing, Mrs. Melton or her assigns or estate, as the
          case may be, shall execute and deliver to the Company an assignment of
          the Optioned Property to the Company, free and clear of any liens or
          other encumbrances, and the Company shall pay the applicable Purchase
          Price to Mrs. Melton or to her assigns or estate, as applicable, in
          cash or immediately available funds. Mrs. Melton or her assigns or
          estate, as applicable, shall also execute and deliver all other
          instruments of conveyance

                                       4
<PAGE>   13

          that the Company reasonably deems necessary to vest title in the
          Optioned Property to the Company.

          2.  Until the Optioned Property is purchased by the Company in
accordance with this Amendment the Royalty Agreement shall remain in full force
and effect. The Royalty Agreement shall terminate automatically and without
further action of either of the parties as of the date of the Company Option
Closing or the Melton Option Closing (except that the Company shall remain
obligated to make payment of any royalties accruing prior to the date of the
Company Option Closing or the Melton Option Closing, as the case may be). At the
Company Option Closing or the Melton Option Closing, as the case may be, the
Company shall pay in full, all accrued and unpaid royalties under the Royalty
Agreement through the date of such closing.

          3.  This Amendment shall be deemed an amendment of the Royalty
Agreement. The Amendment and the Royalty Agreement (as amended hereby and as
previously amended) embody the complete agreement and understanding between the
parties with respect to the subject matter of such agreements and supersede and
preempt any prior understandings, agreements or representations between the
parties, written or oral, which may have related to the subject matter hereof in
any way.

          4.  This Amendment may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together shall
constitute one and the same agreement.

          5.  THE CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS AMENDMENT
WILL BE GOVERNED BY THE INTERNAL LAW, AND NOT THE LAW OF CONFLICTS, OF THE STATE
OF OHIO.

                                       5
<PAGE>   14

          6.  This Amendment shall inure to the benefit of and be binding upon
the Company, its successors and assigns. This Amendment shall inure to the
benefit of and be binding upon Mrs. Melton and Mrs. Melton's heirs, legatees,
personal representatives, administrators, executors, successors and assigns. The
rights and obligations of Mrs. Melton under the Royalty Agreement and this
Amendment may be assigned by Mrs. Melton without the consent of the Company;
provided, however, that any such assignment must include the transfer to the
assignee of the Optioned Property, which Option Property shall remain subject to
the terms of this Agreement.

          7.  Whenever possible, each provision of this Amendment shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Amendment is held to be prohibited by or invalid
under applicable law, such provision shall be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of this
Amendment.

                                       6
<PAGE>   15

          IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above mentioned.

 /s/ Florence Z. Melton                R.G. BARRY CORPORATION
----------------------------------
Florence Zacks Melton
                                       By   /s/ Daniel D. Viren
                                           -------------------------------------

                                       Its  CFO
                                           -------------------------------------

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]