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FINAL                                                              EXHIBIT 10.58

                                                   February 13, 2002

Mr. Jay Margolis
Reebok International Ltd.

         RE:  EMPLOYMENT AGREEMENT

Dear Jay:

         This letter will evidence the agreement between you and Reebok
International Ltd. (referred to as "Reebok", "RIL" or the "Company") relating to
your continued employment by Reebok effective as of December 5, 2001 (the
"Effective Date"). As of the Effective Date, this letter supersedes your
Employment Agreement dated December 27, 2000. Our new agreement is as follows:

         1. YOUR POSITION; DUTIES AND RESPONSIBILITIES. Reebok hereby agrees to
continue your employment beginning as of the Effective Date, on the terms and
subject to the conditions set out in this Agreement. You are hereby designated
during the Employment Term (as defined in Section 2 below) as President and
Chief Operating Officer of Reebok International Ltd. In such capacity, you will
have all duties, responsibilities and authorities normally associated with such
position, including responsibility for executing the strategic direction and for
operating results of the business on a worldwide basis. You will devote your
full business time and your best efforts in carrying out the duties,
responsibilities and authorities of that position, and you will operate within
corporate policies, guidelines, regulations, and strategies, and mutually-agreed
budgets, cash flows and capital authorization levels established by the Board of
Directors of the Company or its Chief Executive Officer. Although your
responsibilities as of the Effective Date are as described above, you should
understand that changes may occur that result in some operations and/or direct
reports being removed and some being added to your responsibility. You will
report to the Chairman and CEO of RIL, who is currently Paul Fireman.

         You shall not be prevented from accepting positions of responsibility
in outside business and charitable organizations, such as directorships of
outside business corporations and public charities, subject to the limitation
that such activities shall not interfere with your discharge of your
responsibilities to Reebok hereunder and shall not include any involvement with
any competing enterprise. You will comply with whatever policies are in
existence in this regard, including the current policy, which limits senior
executives to serving on no more than two (2) for-profit boards of directors.

         2. EMPLOYMENT TERM.

         A. EMPLOYMENT TERM. The term of your employment under this Agreement
         shall commence as of the Effective Date and will continue until
         December 31, 2004 (the period of time shall be referred to as the
         "Initial Employment Term"). Subject to the terms and conditions of this
         Agreement, if this Agreement has not been terminated pursuant to
         Section 10 below prior to the expiration of the Initial Employment
         Term, then this

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         Agreement shall automatically be extended for up to two (2) additional
         one (1) year terms (the "Renewal Terms"). The Initial Employment Term
         and any Renewal Terms are herein collectively referred to as the
         "Employment Term."

         B. SURVIVAL OF CERTAIN PROVISIONS. The obligations set forth in the
         Employee Agreement, Non-Competition Agreement, and the Code of Conduct
         referred to in Section 9 will continue in effect, to the extent
         applicable after termination, after the termination of your employment
         with the Company and/or after the expiration of the Employment Term.

         3. BASE SALARY AND PROMOTION BONUS. From the Effective Date through
December 31, 2002, your base salary will be at an annualized rate of $1,000,000
payable in accordance with Reebok's normal pay practices. From January 1, 2003
through the remainder of the Initial Employment Term, your base salary will be
at an annualized rate of $1,300,000 payable in accordance with Reebok's normal
pay practices. The base salary will not be reviewed during the Initial
Employment Term. In addition, you will receive a promotion bonus in the gross
amount of $200,000 in one lump sum on or about February 20, 2002. This gross
amount will be subject to all applicable taxes, deductions and withholdings.

         4. ANNUAL INCENTIVE COMPENSATION.

         (i)   EXECUTIVE PERFORMANCE INCENTIVE PLAN. For each calendar year of
               the Employment Term, you will participate in the same incentive
               compensation plan as the other senior executives of the Company,
               and to the extent that you share financial performance criteria
               with those other executives under the plan, your required level
               of financial performance will be set at the same level as for
               those other executives. Your annual incentive compensation has
               been targeted at 100% of your base salary for fiscal year 2002.
               Actual payment levels under the incentive compensation program
               will be based on your achievement of financial and management
               performance goals, with such goals to be established each year by
               the Company's Chief Executive Officer or Board of Directors, and
               payments will be made in accordance with the terms and subject to
               the conditions of the incentive plan then in effect for the
               senior executives of the Company. You will be eligible to receive
               a bonus award with respect to any plan year for which you are
               actively employed as of December 31 of such plan year.

         (ii)  PAYMENT IN 2002. You will remain eligible to receive an incentive
               payment in 2002 (attributable to fiscal year 2001) in the amount
               otherwise payable under the terms of the 2001 Executive
               Performance Incentive Plan or $200,000, whichever is greater. The
               Company will make such payment, if any, in accordance with its
               usual practice for the payment of incentive compensation to
               senior executives; however, it is anticipated that the Company
               will make such payment in mid-March of 2002. You will receive any
               payments under this Section 4(ii) unless your employment is
               terminated pursuant to Section 10A or Section 10C prior to actual
               payment.

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         (iii) DISPUTES.In the event of any disagreement concerning whether
               incentive plan goals have been achieved and/or the percentage
               bonus to be awarded pursuant to the incentive plan, the decision
               of the Company's Chief Executive Officer shall be final. If you
               believe that the decision of the Company's Chief Executive
               Officer has not been made in good faith, you may submit your
               position on the matter in writing to the Compensation Committee
               of the Company's Board of Directors, which will consider your
               position at its next regular meeting and revise the Chief
               Executive Officer's decision if it determines that revision is
               appropriate. The Compensation Committee has full discretion to
               determine the issue and its determination will fully bind the
               parties.

         5. CHANGE OF CONTROL. Attached as EXHIBIT 1 is a Change of Control
Agreement approved in form by the Compensation Committee of the Board of
Directors.

         6. STOCK OPTIONS AND RESTRICTED STOCK.

         (i)   GENERAL. The Company may grant you so-called "non-qualified"
               stock options with respect to its common stock under the
               Company's 1994 Equity Incentive Plan and the 2001 Equity
               Incentive and Director Deferred Compensation Plan, and any
               subsequent additional or successor plan in effect at a relevant
               time (such plans are referred to herein as the "Option Plan").
               The terms of the Option Plan and any agreement under the Option
               Plan relating to the options will govern the exercise and all
               other matters relating to the options. The amount of any options
               will be in accordance with Board practices and with the approval
               of the Compensation Committee.

         (ii)  STOCK OPTION GRANT. You will receive a mega-grant of 400,000
               "non-qualified" stock options under the Option Plan to acquire
               additional shares of Reebok common stock, at $24.00 per share,
               which was the market price of Reebok's common stock upon the
               closing of the market as of the date of your promotion and of the
               grant. This stock option grant will be governed by the Stock
               Option Certificate attached hereto as EXHIBIT 2. You acknowledge
               that this mega-grant is intended to cover all grants for the
               Initial Term and that you will not be eligible for the annual
               grant of stock options to executives during the Initial Term.

         (iii) RESTRICTED STOCK. You will also receive at the same time as the
               stock option grant discussed in Section 6(ii) a grant of 100,000
               shares of restricted stock under the Option Plan. This grant of
               restricted stock will be governed by the Restricted Stock
               Certificate attached hereto as EXHIBIT 3.

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         7. FRINGE BENEFITS AND BUSINESS RELATED EXPENSES.

         (i)   GENERAL. You will be eligible to participate in or receive
               benefits under any pension plan, 401(k) retirement plan, medical
               and dental benefits plan, life insurance plan, short-term and
               long-term disability plans, supplemental and/or incentive
               compensation plans, or any other employee benefit or fringe
               benefit plan, generally made available by the Company to senior
               executives in accordance with the specific eligibility and
               approval requirements of such plans and subject to the terms and
               conditions set forth in this Agreement. Notwithstanding the
               foregoing, you will not be eligible to participate in the Reebok
               International Ltd. Severance Policy during or at the end of the
               Employment Term.

         (ii)  PERSONAL ALLOWANCE. In addition, the Company will provide to you
               during the Employment Term a personal allowance of $2,500 per
               month to be used in your discretion. This personal allowance may
               be increased, decreased or eliminated, but in no event will you
               be treated less favorably than other similarly situated executive
               officers.

         (iii) EXPENSES. The Company will promptly reimburse you for the
               reasonable and necessary business expenses incurred by you in the
               performance of the duties under this Agreement in accordance with
               its customary practices applicable to senior executives, provided
               that such expenses are incurred and accounted for in accordance
               with the Company's policy.

         (iv)  SERP. The Company will recommend to the Compensation Committee of
               the Board of Directors that you participate in the Company's
               Supplemental Executive Retirement Plan as it may be amended
               ("SERP") in the event that your employment extends beyond the
               Initial Employment Term of this Agreement in the same or higher
               capacity, and that you fulfill all other eligibility requirements
               for participation in the SERP, as they may be modified from time
               to time. You acknowledge that the Company is reviewing its
               executive long-term incentive programs, including the SERP, and
               that as a result of the review the Company may determine that no
               additional employees will participate in the SERP. If you would
               have become eligible for participation in the SERP pursuant to
               this paragraph and the eligibility terms but for such a decision
               to discontinue additional participants in the SERP, the Company
               will recommend you for enrollment in the other long-term
               incentive programs next adopted by the Company and offered
               generally to senior executives.

         8. VACATION. You will be entitled to vacation in accordance with normal
Reebok policy for senior executives, with any additional amount to be determined
by the Company's Chief Executive Officer.

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         9. CONFIDENTIALITY, NON-COMPETITION AND CODE OF CONDUCT.

         (i)   GENERAL. During the Employment Term and thereafter you will be
               subject to the terms and conditions of each of the following
               standard employee agreements as modified pursuant to Section
               9(ii) below: the standard Reebok Employee Agreement attached
               hereto as EXHIBIT 4 (the "Employee Agreement"); the standard
               Reebok Non-Competition Agreement attached hereto as EXHIBIT 5
               (the "Non-Competition Agreement"); and the Reebok Code of Conduct
               attached hereto as EXHIBIT 6 (the "Code of Conduct"). The
               Employee Agreement, Non-Competition Agreement, and the Code of
               Conduct, as modified by this Agreement, will continue in effect,
               to the extent applicable, after the termination of your
               employment with the Company.

         (ii)  ANCILLARY AGREEMENT MODIFICATIONS.

               (a)  EMPLOYEE AGREEMENT [EXHIBIT 4]. The Employee Agreement
                    attached hereto as Exhibit 4 is modified as follows:

                    (I)  Section 5 of the Employee Agreement is modified by
                         adding a new second sentence to read as follows:
                         "Notwithstanding the preceding sentence, in no event
                         will I hold any equity or other interest of any kind in
                         Nike, adidas, Timberland, K Swiss, Puma, Stride Rite,
                         New Balance and Fila or their affiliates."

                    (II) Section 7 of the Employee Agreement is deleted and
                         Section 2 of this Agreement is substituted therefor.

               (b)  NON-COMPETITION AGREEMENT [EXHIBIT 5]. The Non-Competition
                    Agreement attached hereto as Exhibit 5 is modified by adding
                    the following new sentence at the end of Section I.A. to
                    read as follows: "Notwithstanding the preceding sentence,
                    you may invest in 1% or less of the equity securities of any
                    publicly traded company; provided, however, that in no event
                    will you hold any equity or other interest of any kind in
                    Nike, adidas, Timberland, K Swiss, Puma, Stride Rite, New
                    Balance and Fila or their affiliates."

               (c)  CODE OF CONDUCT [EXHIBIT 6]. The Code of Conduct attached
                    hereto as Exhibit 6 is modified as follows:

                    (I)  The second paragraph of the section entitled
                         "Investments in or Affiliations with Suppliers,
                         Customers or Competitors" under "Conflicts of Interest"
                         is modified to read as follows: "Generally, ownership
                         interests of less than 1% of the equity or other
                         securities of a publicly traded corporation will not be
                         considered to create a conflict. However, employees
                         should not hold any ownership or other interest in the
                         following competitors of Reebok or their

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                         affiliates: Nike, adidas, Timberland, K Swiss, Puma,
                         Stride Rite, New Balance and Fila. From time to time,
                         the Company may distribute an updated list of some of
                         our competitors for whom any stock ownership would be
                         prohibited."

                    (II) The last paragraph of the Code of Conduct is modified
                         by adding the following new sentence at the end thereof
                         to read as follows: "Notwithstanding the foregoing,
                         your employment shall be subject to the terms and
                         conditions of any written employment agreement in
                         effect between you and the Company."

         10. EMPLOYMENT TERMINATION. Notwithstanding the provisions of Section 2
above, your employment under this Agreement may be terminated prior to the end
of the Employment Term in any of the following cases:

         A. VOLUNTARY TERMINATION WITHOUT GOOD REASON. You may terminate your
         employment under this Agreement, without "good reason," upon ninety
         (90) days prior written notice to the Company. Such written notice will
         set forth the date your employment ends.

         B. VOLUNTARY TERMINATION WITH GOOD REASON. You may terminate your
         employment under this Agreement with "good reason" upon at least
         fourteen (14) days prior written notice to the Company; provided,
         however, that you must first provide written notice of the "good
         reason" to the Company, and the Company must fail to cure such "good
         reason" within thirty (30) days after the date on which you give
         written notice of such "good reason." For purposes of this Agreement,
         "good reason" will mean the occurrence of any of the following:

         (i)   A material diminution in the overall level of your
               responsibilities, duties, powers or authority, except in
               connection with the cessation of your employment by death, or by
               the Company for cause or your incapacity, as defined in Section
               10E, or by you other than for "good reason."

         (ii)  Any reduction in Base Salary or short or long-term incentive
               compensation, except for across-the-board salary or incentive
               compensation reductions similarly affecting all executives of the
               Company;

         (iii) The failure by the Company to pay you when due any material
               amount of your current compensation or any material amount of
               your compensation payable under any plan, agreement or
               arrangement of or with the Company, within ten (10) days after
               you make written demand for such amount.

         (iv)  The failure of the Company to maintain your relative level of
               coverage under the Company's employee benefit plans, policies,
               practices, or arrangements in which you participate, both in
               terms of the amount and timing of benefits provided and the
               relative level of your participation. For this purpose, the
               Company may

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               eliminate and/or modify existing employee benefit, incentive
               compensation, retirement, or material fringe benefit plans,
               policies, practices, or arrangements and coverage levels on a
               consistent and non-discriminatory basis applicable to all such
               executives; provided, however, that your level of coverage under
               all such programs must be at least as great as is such coverage
               provided to employees who have the same or lesser levels of
               reporting responsibilities within the Company's organization.

         (v)   The changing of your reporting relationship to a position lower
               than the CEO of RIL so long as you deliver your resignation
               within six (6) months of the change and provide at least three
               (3) months advance notice and transition time.

         Your continued employment shall not constitute consent to, or a waiver
         of rights with respect to, any act or failure to act constituting Good
         Reason hereunder.

         C. CAUSE. The Company may terminate your employment under this
         Agreement for cause, upon written notice to you. For purposes of this
         Agreement, "cause" will mean:

         (i)   fraud, embezzlement, or other intentional misappropriation from
               the Company or an affiliate thereof;

         (ii)  your conviction of a felony or a misdemeanor involving moral
               turpitude;

         (iii) any other conduct on your part involving fraud, gross negligence
               or willful misconduct, or other action which materially damages
               the reputation of the Company or an affiliate thereof; or

         (iv)  your default of any material obligations under this Agreement,
               provided, however, that the Company must first provide written
               notice of the default to you, and you must fail to cure such
               default within thirty (30) days after the date on which the
               Company gives you written notice of such default.

         It is understood and agreed that a failure to achieve financial or
         other business results is not a basis for a "for cause" termination. No
         termination of your employment for cause shall be deemed to have
         occurred unless you have been given notice of the reason therefore
         including the allegations which may constitute reason for such
         termination and after (a) you have been provided an opportunity to be
         heard by the Board of Directors of the Company or the Executive
         Committee thereof, and (b) such decision has been upheld by the Board
         or Executive Committee.

         D. DEATH. Your employment will terminate immediately upon your death,
         subject to the payment obligations set forth in Section 11B below.

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         E. INCAPACITY. Upon written notice to you, the Company may terminate
         your employment under this Agreement in the event of your incapacity,
         subject, however, to any legal obligations that mandate continued
         employment. For purposes of this Agreement, "incapacity" will mean such
         incapacity or disability as would qualify you for long-term disability
         coverage under the Company's long-term disability insurance plan.

         F. ANY OTHER REASONS. Subject to the payment obligations set forth in
         Section 11C, the Company may terminate your employment for any other
         reason, upon written notice to you stating the date of termination.

         11. PAYMENT OBLIGATION IN THE EVENT OF TERMINATION. In the event of any
termination pursuant to Section 10, Reebok shall have the following payment
obligations:

         A. VOLUNTARY TERMINATION WITHOUT GOOD REASON AND TERMINATION FOR CAUSE.
         In the event your employment is terminated pursuant to Section 10A
         [voluntary termination without good reason] or Section 10C [termination
         for cause],

         (i)   Your right to receive compensation under this Agreement shall
               cease as of the effective date of such termination.

         (ii)  The Company shall pay the following amounts to you: any accrued
               but unpaid base salary for services rendered to the date of
               termination; any accrued but unpaid expenses required to be
               reimbursed and any vacation accrued to the date of termination.

         (iii) Except as may be provided under the terms of any incentive
               compensation, employee benefit, or fringe benefit plan applicable
               to the you at the time of your termination or resignation of
               employment prior to the end of the Employment Term, you shall
               have no right to receive any other compensation, or to
               participate in any other plan, arrangement or benefit, with
               respect to future periods after such termination or resignation.

         B. TERMINATION FOR DEATH OR INCAPACITY. In the event of your employment
         is terminated pursuant to Section 10D [death] or Section 10E
         [incapacity], you will be entitled to payment of your base salary only
         until the last day of your employment and no further payments of any
         kind will be due you from the Company. However, upon termination of
         your employment because of death or upon termination of your employment
         because of disability, as defined in the Option Plan, all outstanding
         stock options will become immediately exercisable pursuant to the
         provisions of the Option Plan. Additionally, you or your beneficiaries
         will be entitled to receive any benefits that are payable with respect
         to your termination of employment under the terms of any pension or
         profit-sharing plan, or life insurance or disability plan of the
         Company in which you participated before your employment ended. You
         will, however, not be entitled to receive any benefit under any
         severance plan, arrangement or agreement of the Company other than the
         payments from the Company described in this Section 11B.

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         C. VOLUNTARY TERMINATION WITH GOOD REASON OR INVOLUNTARY TERMINATION
         FOR OTHER REASON. In the event that you terminate your employment under
         this Agreement pursuant to Section 10B [voluntary termination with
         "good reason"], or the Company terminates your employment for any
         reason pursuant to Section 10F, including without cause (as cause is
         defined in Section 10C), you will be entitled to the following:

         (i)   a severance period whereby you could collect your base salary at
               the times and in the amounts that would have been paid for a
               maximum period of eighteen (18) months (the "Severance Period");

         (ii)  continuation on any Company-provided medical coverage in effect
               for you and your family as of the date of termination through the
               Severance Period;

         (iii) continuation of life, supplemental life and AD&D insurance
               coverage to the same extent through the Severance Period;

         (iv)  entitlement for the severance pay and benefits offered pursuant
               to this Section 11C will not extend beyond the date that you
               obtain new employment, and continuation of medical and dental
               coverage will end on the last day of the month in which such new
               employment is obtained.

         (v)   as an incentive to find a new job, however, if you obtain new
               employment prior to the expiration of the Severance Period you
               will receive a lump-sum payment equal to one-half of the
               remaining weeks in the Severance Period. "New employment" shall
               mean a full-time job; or a part-time job or consulting
               relationship in which you earn a substantial portion of your
               previous compensation at RIL, as determined by the Company in its
               sole discretion. However, "new employment" shall not include
               employment in teaching, government, public service or service as
               a corporate director, or work for fewer than twenty-five (25)
               hours per work either as a consultant or employee of a
               not-for-profit company.

         (vi)  you agree to provide information and services (including without
               limitation, cooperation in litigation and transition assistance)
               to the Company, if so requested, during the Severance Period for
               no additional compensation. These services, however, shall not
               exceed sixteen (16) hours per week during the Severance Period;
               provided, however, that the Company will reimburse you for any
               reasonable expenses incurred on its behalf. If you are re-hired
               by RIL or any RIL subsidiary or affiliated organization, the
               Severance Period will cease on the date of re-employment and you
               shall not be entitled to any lump sum or other payment.

         (vii) the payments and benefits set forth in this Section will be
               contingent upon your execution of a general release and such
               other documents in a form acceptable to the Company, and will be
               in lieu of payments and other benefits, if any, to which

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               you may be entitled under any other severance agreement or
               severance plan or arrangement of the Company.

         12. [INTENTIONALLY LEFT BLANK]

         13. MISCELLANEOUS

         (i)   SUCCESSORS, ASSIGNS, AMENDMENT, ETC. This Agreement shall be
               binding upon and shall inure to the benefit of Reebok and its
               successors and assigns. Unless such assumption would otherwise
               occur by operation of law, the Company shall not enter into any
               agreement for the merger, consolidation, restructuring, sale of
               assets or other reorganization of the Company, without providing
               for the express assumption of this Agreement by the Company's
               successor. This Agreement shall be binding upon you and shall
               inure to the benefit of your heirs, executors, administrators and
               legal representatives, but shall not be assignable by you. This
               Agreement may be amended or altered only by the written agreement
               of Reebok and you.

         (ii)  NOTICE. All notices, requests, consents and other communications
               required or permitted hereunder shall be in writing and shall be
               hand delivered or mailed by certified mail, postage prepaid,
               addressed as follows: If to Reebok, to General Counsel, Reebok
               International Ltd., 1895 J. W. Foster Boulevard, Canton, MA
               02021, or to such other address as may have been furnished to you
               in writing as herein provided; or, if to you, to the address set
               forth above, or to such other address as may have been furnished
               to Reebok by you as herein provided in writing. Any notice or
               other communication so addressed and so mailed shall be deemed to
               have been given three days after said mailing.

         (iii) APPLICABLE LAW. This Agreement has been executed and delivered by
               both parties in the Commonwealth of Massachusetts and shall be
               governed by the internal law of the Commonwealth of Massachusetts
               without reference to its choice of law rules or to any rule of
               any jurisdiction which would cause the rule of another
               jurisdiction to apply. The venue of any action relating to this
               Agreement will be the state and federal courts located in the
               Commonwealth of Massachusetts. Respecting any such action, the
               parties waive any right they may have (i) to contest venue on the
               ground of inconvenient forum, and (ii) to have such action heard
               before a jury or an advisory jury.

         (iv)  SEVERABILITY. Each provision of this Agreement is severable from
               the others, and if any provision hereof shall be to any extent
               unenforceable, it and the other provisions hereof shall continue
               to be enforceable to the full extent allowable by any court of
               competent jurisdiction, as if such offending provision had not
               been a part of this Agreement.

         (v)   WITHHOLDING. The Company will cause any federal, state or local
               income, withholding , employment or other tax to be withheld from
               payments hereunder.

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FINAL

         (vi)  HEADINGS; CONSTRUCTION. Section headings are for convenience of
               reference only and do not form part of the text of this
               Agreement. Whenever the context requires, the singular will
               include the plural and vice versa.

         (vii) WAIVER. The failure of a party to insist on strict adherence to
               any term of this Agreement on any occasion will not be considered
               a waiver thereof or deprive that party of the right thereafter to
               insist upon strict adherence to that term or any other term of
               this Agreement.

         (viii)ENTIRE AGREEMENT. This Agreement, constitutes the entire
               agreement between the parties concerning its subject matter, and
               supersedes any and all prior agreements, understandings,
               warranties or representations between the parties except for the
               agreements specifically referred to as exhibits to this
               Agreement.

         (ix)  INDEMNIFICATION. The Company will indemnify and hold you harmless
               to the extent permitted by the Company's certificate of
               incorporation, by-laws or resolutions of the Company's Board of
               Directors against all liability, expense or loss (including
               reasonable attorney's fees and penalties) incurred by you by
               reason of the fact that you are or were a director or officer of
               the Company acting within the scope of your duties and
               authorities.

         (x)   COUNTERPARTS. This Agreement my be executed in any number of
               counterparts, each of which will be considered an original and
               such counterparts will together be one agreement.

         If you accept and agree to the foregoing, please signify by signing the
enclosed counterpart of this letter in the space provided for that purpose at
the foot thereof and delivering the signed counterpart to me, whereupon this
letter will become a binding agreement between you and the Company as of the
Effective Date.

                                Very truly yours,

                                REEBOK INTERNATIONAL LTD.

                                       By: /s/ James R. Jones, III
                                           ----------------------------------
                                                James R. Jones, III
                                                Senior Vice President and
                                                Chief Human Resources Officer

Accepted and agreed to as of
this 13th day of February, 2002:

/s/ Jay Margolis
------------------------
Jay Margolis

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<PAGE>

FINAL

                          CHANGE OF CONTROL AGREEMENT
                          ---------------------------

     This Change of Control Agreement (the "Agreement"), is made effective
as of this 5/th/ day of December, 2001 by and between Jay Margolis (the
"Executive") and Reebok International Ltd. (the "Company").

     WHEREAS, the Board of Directors of the Company (the "Board") has
determined that it is in the best interests of the Company and its shareholders
for the Company to agree to provide benefits under circumstances described
below to Executive; and

     WHEREAS, the Board recognizes that the possibility of a change of control
of the Company followed by a termination of the Executive's employment is
unsettling to the Executive and wishes to make arrangements at this time to
help assure his continuing dedication to his duties to the Company and its
shareholders, notwithstanding any attempts by outside parties to gain control
of the Company; and

     WHEREAS, the Board believes it important, should the Company receive
proposals from outside parties, to enable the Executive, without being
distracted by the uncertainties of his own employment situation, to perform his
regular duties,

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto agree as follows:

    1.   In the event that any individual, corporation, partnership, company,
or other entity (a "Person"), which term shall include a "group" (within
the meaning of section 13(d) of the Securities Exchange Act of 1934 (the
"Act")), begins a tender or exchange offer, circulates a proxy to the
Company's shareholders, or takes other steps to effect a "Change of Control"
(as defined in paragraph 3 below), Executive agrees that he will not
voluntarily leave the employ of the Company and will render the services
contemplated in the recitals to this Agreement until such Person has terminated
the efforts to effect a Change of Control or until a Change of Control has
occurred.

     2.   If, within 24 months following a Change of Control, Executive's
employment with the Company terminates other than as a result of the death,
total disability or retirement of the Executive at or after his normal
retirement date, (i) by the Company other than for "Cause" (as defined in
paragraph 4 below), or (ii) by Executive for "Good Reason" (as defined in
paragraph 4 below), then:

                                      -1-

<PAGE>

FINAL

     a.   The Company will pay to Executive within 30 days of such termination
          of employment a lump-sum cash payment equal to 300% of the aggregate
          of (i) his then-current annual base salary (or, if his base salary
          has been reduced at any time after the Change of Control, his base
          salary in effect prior to the reduction), (ii) his target bonus for
          the then-current year or, if higher, his bonus for the most recent
          calendar year ended before the Change of Control, (iii) the amount of
          his then-current annual automobile allowance and (iv) the annual cost
          of life insurance then furnished to him by the Company.

     b.   All of Executive's outstanding stock options, restricted shares and
          other similar incentive interests and rights will become immediately
          and fully vested and exercisable.

     c.   Executive will be treated for purposes of the Company's Supplemental
          Executive Retirement Plan (the "SERP") as having three additional
          Years of Continuous Service to the extent approved for participation
          by the Board for the SERP. The Company will, within 30 days of his
          termination, pay to him, in a single lump sum cash payment, the
          present value of his benefit under the SERP. Present value will be
          determined by applying the "applicable mortality table" and
          "applicable interest rate" then in effect for purposes of section
          417(e)(3)(A) of the Internal Revenue Code or any successor provision.

     d.   The Company will pay to Executive, in a single lump-sum cash
          payment, an amount equal to the difference, if any, between (i) the
          total distribution that he receives following his termination under
          the Company's Profit-Sharing and Retirement Plan and its Excess
          Benefits Plan and (ii) the total distribution that he would have
          received under such plans had he accumulated three additional Years
          of Service for Vesting prior to termination. The payment will be made
          at the same time that he receives his distribution from those plans.

     e.   Executive, together with his dependents, will continue following
          such termination of employment to participate fully, with no
          contribution to the cost required of him or them, in all accident and
          health plans maintained or sponsored by the Company immediately prior
          to the Change of Control, or receive substantially the equivalent
          coverage (or the full value thereof in cash) from the Company, until
          the third anniversary of such termination.

                                      -2-

<PAGE>

FINAL

     f.   The Company will promptly reimburse Executive for any and all
          legal fees and expenses incurred by him as a result of such
          termination of employment, including without limitation all fees and
          expensces incurred in connection with efforts to enforce the
          provisions of this Agreement (provided such efforts result in
          Executive's recovery of any sum from the Company, whether through
          court award or settlement).

     3.   A Change of Control will occur for purposes of this Agreement if (i)
any Person who does not currently own directly or indirectly 10% or more of the
combined voting power of the Company's outstanding securities becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Act) of securities of
the Company representing more than 30% (or, if higher, the aggregate percentage
of the combined voting power of the Company's then-outstanding securities held
by or for the benefit of Paul Fireman and his family) of the combined voting
power of the company's then-outstanding securities, (ii) there is a change of
control of the Company of a kind which would be required to be reported under
Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Act (or a
similar item in a similar schedule or form), whether or not the Company is then
subject to such reporting requirement, (iii) the Company is a party to a
merger, consolidation, sale of assets or other reorganization, or a proxy
contest, as a consequence of which members of the Board in office immediately
prior to such transaction or event constitute less than a majority of the Board
thereafter, or (iv) individuals who, at the date hereof, constitute the Board
(the "Continuing Directors") cease for any reason to constitute a majority
thereof, provided, however, that any director who is not in office at the date
hereof but whose election by the Board or whose nomination for election by the
Company's shareholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the date hereof or
whose election or nomination for election was previously so approved shall be
deemed to be a Continuing Director for purposes of this Agreement.

     Notwithstanding the foregoing provisions of this paragraph 3, a "Change
of Control" will not be deemed to have occurred solely because of (i) the
acquisition of securities of the Company (or any reporting requirement under
the Act relating thereto) by an employment benefit plan maintained by the
Company for its employees or (ii) the occurrence of a leveraged buy-out or
recapitalization of the Company in which Executive participates as an equity
investor.

                                      -3-

<PAGE>

FINAL

     4. Definitions

     a.   "Cause" means only: conviction of the Executive for a felony or a
          crime involving moral turpitude.

     b.   "Good Reason" means any one or more of the following:

          (i)   Failure by the Company to maintain Executive in the positions,
                with the titles, that he held immediately prior to the Change
                of Control or downgrading of his responsibilities or
                authority. If, following the Change of Control, the Company is
                part of a controlled group of entities, Executive's
                responsibilities and authority will be deemed for this purpose
                to have been reduced unless he is given and retains the same
                responsibilities and authority with the entity that controls
                the group as he held with the Company immediately prior to the
                Change of Control.

          (ii)  Reduction of Executive's base salary or failure in any year to
                pay to him a bonus at least equal to his target bonus for the
                year in which the Change of Control occurs.

          (iii) Material reduction in the health, disability or life
                insurance benefits that the Company was providing Executive
                immediately prior to the Change of Control.

          (iv)  Failure by the Company to provide Executive with the
                opportunity to participate in any executive compensation or
                benefit plan or program that is then generally available to
                other senior executives of the Company.

          (v)   Relocation of Executive's principal place of business more than
                30 miles from the its location immediately prior to the Change
                of Control.

     5.   In the event that it is determined that any payment or benefit
provided by the Company to or for the benefit of Executive, either under this
Agreement or otherwise, will be subject to the excise tax imposed by section
4999 of the Internal Revenue Code or any successor provision ("section
4999"), the Company will, prior to the date on which any amount of the excise
tax must be paid or withheld, make an additional lump-sum payment (the
"gross-up payment") to Executive. The gross-up payment will be sufficient,
after giving effect to all federal, state and other taxes and charges
(including interest and penalties, if any) with respect to the gross-up
payment, to make Executive whole for all taxes (including withholding taxes)
and any associated interest and penalties, imposed under or as a result of
section 4999.

                                      -4-

<PAGE>

FINAL

     Determinations under this Section 5 will be made by Ernst & Young unless
Executive has reasonable objections to the use of that firm, in which case the
determinations will be made by a comparable firm chosen by Executive after
consultation with the Company (the firm making the determinations to be
referred to as the "Firm"). The determinations of the Firm will be binding
upon the Company and Executive except as the determinations are established in
resolution (including by settlement) of a controversy with the Internal Revenue
Service to have been incorrect. All fees and expenses of the Firm will be paid
by the Company.

     If the Internal Revenue Service asserts a claim that, if successful, would
require the Company to make a gross-up payment or an additional gross-up
payment, the Company and Executive will cooperate fully in resolving the
controversy with the Internal Revenue Service. The Company will make or advance
such gross-up payments as are necessary to prevent Executive from having to
bear the cost of payments made to the Internal Revenue Service in the course
of, or as a result of, the controversy. The Firm will determine the amount of
such gross-up payments or advances and will determine after final resolution of
the controversy whether any advances must be returned by Executive to the
Company. The Company will bear all expenses of the controversy and will gross
Executive up for any additional taxes that may be imposed upon Executive as a
result of its payment of such expenses.

     6.   If the Company is at any time before or after a Change of Control
merged or consolidated into or with any other corporation or other entity
(whether or not the Company is the surviving entity), or if substantially all
of the assets thereof are transferred to another corporation or other entity,
the provisions of this Agreement will be binding upon and inure to the benefit
of the corporation or other entity resulting from such merger or consolidation
or the acquirer of such assets, and this paragraph 6 will apply in the event of
any subsequent merger or consolidation or transfer of assets.

     In the event of any merger, consolidation, or sale of assets described
above, nothing contained in this Agreement will detract from or otherwise limit
Executive's right to participate or privilege of participation in any stock
option or purchase plan or any bonus, profit sharing, pension, group insurance,
hospitalization, or other incentive or benefit plan or arrangement which may be
or become applicable to executives of the corporation resulting from such
merger or consolidation or the corporation acquiring such assets of the
Company.

     In the event of any merger, consolidation or sale of assets described
above, references to the Company in this Agreement shall unless the context
suggests otherwise be deemed to include the entity resulting from such merger
or consolidation or the acquirer of such assets of the Company.

     7.   All payments required to be made by the Company hereunder to Executive
or his dependents, beneficiaries, or estate will be subject to the withholding
of such amounts relating to tax and/or other payroll deductions as may be
required by law.

                                      -5-

<PAGE>

FINAL

     8.   There shall be no requirement on the part of the Executive to seek
other employment or otherwise mitigate damages in order to be entitled to the
full amount of any payments and benefits to which Executive is entitled under
this Agreement, and the amount of such payments and benefits shall not be
reduced by any compensation or benefits received by Executive from other
employment.
     9.   Nothing contained in this Agreement shall be construed as a contract
of employment between the Company and the Executive, or as a right of the
Executive to continue in the employ of the Company, or as a limitation of the
right of the Company to discharge the Executive with or without Cause; the
Executive may, subject to the terms and conditions of this Agreement, have the
right to receive upon termination of his employment the payments and benefits
provided in this Agreement and shall not be deemed to have waived any rights he
may have either at law or in equity in respect of such discharge.

     10.   No amendment, change, or modification of this Agreement may be made
except in writing, signed by both parties. Payments made by the Company
pursuant to this Agreement shall be in lieu of payments and other benefits, if
any, to which Executive may be entitled under any other severance agreement or
severance plan of the Company. The provisions of this Agreement shall be
binding upon and shall inure to the benefit of Executive, his executors,
administrators, legal representatives and assigns, and the Company and its
successors. The validity, interpretation, and effect of this Agreement shall be
governed by the laws of The Commonwealth of Massachusetts.

     The Company shall have no right of set-off or counterclaims, in respect of
any claim, debt, or obligation, against any payments to Executive, his
dependents, beneficiaries or estate provided for in this Agreement. The
invalidity or unenforceability of any provisions of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

     No right or interest to or in any payments or benefits hereunder shall be
assignable by the Executive; provided, however, that this provision shall not
preclude him from designating one or more beneficiaries to receive any amount
that may be payable after his death and shall not preclude the legal
representative of his estate from assigning any right hereunder to the person
or persons entitled thereto under his will or, in the case of intestacy, to the
person or persons entitled thereto under the laws of intestacy applicable to
his estate. The term "beneficiaries" as used in this Agreement shall mean a
beneficiary or beneficiaries so designated to receive any such amount, or if no
beneficiary has been so designated, the legal representative of the Executive's
estate.

                                      -6-

<PAGE>

FINAL

     No right, benefit, or interest hereunder, shall be subject to anticipation,
alienation, sale, assignment, encumbrance, charge, pledge, hypothecation, or
set-off in respect of any claim, debt, or obligation, or to execution,
attachment, levy, or similar process, or assignment by operation of law. Any
attempt, voluntary or involuntary, to effect any action specified in the
immediately preceding sentence shall, to the full extent permitted by law, be
null, void, and of no effect.

     IN WITNESS WHEREOF, Reebok International Ltd. and Executive have each
caused this Agreement to be duly executed and delivered as of the date set
forth above.

                                               REEBOK INTERNATIONAL LTD.

                                               By: /s/ Paul Fireman
                                                   -----------------------

Agreed:

/s/ Jay Margolis
--------------------------------
Jay Margolis

                                      -7-

<PAGE>

                            REEBOK INTERNATIONAL LTD.
                           Non-Statutory Stock Option
                  Granted Under the 1994 Equity Incentive Plan
                  --------------------------------------------

     This Non-Statutory Stock Option (the "Option") is granted by Reebok
International Ltd., a Massachusetts corporation (the "Company"), to JAY
MARGOLIS, an employee of the Company or its subsidiaries (the "Employee"),
pursuant to the Company's 1994 Equity Incentive Plan (the "Plan").

1.   Grant of Option. This certificate evidences the grant by the Company on
December 5, 2001 to the Employee of an option to purchase, in whole or in part,
on the terms herein provided, a total of 400,000 Shares (the "Shares") of
Common Stock of the Company at $24.00 per Share. The final exercise date of
this option is December 5, 2011 (the "Final Exercise Date"). It is intended
that the option evidenced by this certificate shall be a non-statutory option.

     This option is exercisable in the following installments on or prior to the
Final Exercise Date:

          100,000 Shares on and after December 5, 2002; and
          100,000 Shares on and after December 5, 2003; and
          100,000 Shares on and after December 5, 2004; and
          100,000 Shares on and after December 5, 2005; and

This Option: (a) may not be exercised to any extent after the Final Exercise
Date, but (b) may be exercised whether or not there is outstanding (within the
meaning of Section 422A(C)(7) of the Internal Revenue Code of 1986, as amended
from time to time) any incentive stock option which was granted to the Employee
prior to the date hereof to purchase stock of the Company or of a corporation
which on the date hereof is a parent or a subsidiary of the Company or is a
predecessor corporation of any such corporation.

2.   Exercise of Option. Each election to exercise this option shall be in
writing, signed by the Employee or by his or her executor or administrator or
the person or persons to whom this option is transferred by will or the
applicable laws of descent and distribution, or the person or persons appointed
to legally represent the Employee if he or she is incapacitated (the "Legal
Representative"), and received by the Company at its principal office,
accompanied by this certificate, and payment in full for the number of Shares
for which the option is exercised. Payment of the purchase price may be made by
delivery of cash, certified check, bank draft, or money order payable to the
order of the Company or by delivery of a properly executed notice with an
undertaking by a broker to deliver promptly to the Company the amount of sale
or loan proceeds to pay the exercise price and required tax withholding
amounts. The Compensation Committee of the Board of Directors of the Company
(the "Committee") or its designees may, in their sole discretion, permit
other methods of payment.

In the event that this option is exercised by a Legal Representative, the
Company is under no obligation to deliver Shares hereunder unless and until the
Company is satisfied as to the authority of the person or persons exercising
this option.

3.   Withholding. No shares will be transferred pursuant to the exercise of this
option unless and until the person exercising this option remits to the Company
an amount sufficient to satisfy any federal, state or local withholding tax
requirements (including, without limitation, any amount required under FICA),
or makes other arrangements satisfactory to the Company with regard to such
taxes. The Committee or its designees may, in their discretion, permit the
Company's withholding liability with respect to any option to be satisfied by
delivery of Stock with a fair market value equal to such liability or by
withholding from Stock delivered on exercise of the option, Shares whose fair
market value is equal to the amount of such liability.

4.   Nontransferability of Option. Except as specifically noted below in this
paragraph, this Option is not transferable by the Employee other than by will
or the laws of descent and distribution, and is exercisable during the
Employee's lifetime only by the Employee. If the Employee is incapacitated,
however, the Legal Representative of the Employee may exercise this Option
provided that the Company is satisfied as to the authority of such Legal
Representative.

<PAGE>

Notwithstanding all of the foregoing, the Company will permit the transfer of
the Option by the Employee through a gift to any or all of the following: any
child, stepchild, grandchild, parent, stepparent, mother-in-law, father-in-law
or spouse of the Employee; any trust in which these persons have more than a
fifty percent (50%) beneficial interest; or a foundation in which these persons
(or the Employee) control the management of assets. The Company will also
permit the retransfer of the Option by any of these permitted transferees back
to the Employee.

5.   Death, Disability or Retirement. If an Employee's employment with the
Company and its subsidiaries is terminated as a result of the Employee's total
and permanent disability (as hereinafter defined), or by reason of death, this
option shall become immediately exercisable in its entirety by the Employee or
his or her Legal Representative at any time within the three-year period ending
with the third anniversary of the date of such termination (except that in no
event may this option be exercised after the Final Exercise Date). Total and
permanent disability shall mean that the Employee is determined by the Company
to be totally and permanently disabled as that term is defined by the U.S.
Social Security Administration.

In the event an Employee terminates his or her employment with the Company and
its subsidiaries because of the Employee's retirement, all installments of this
option to purchase Shares that are exercisable on the date of such termination
will continue to be exercisable for a period of three years from the date of
termination (except that in no event may this option be exercised after the
Final Exercise Date) and, except as provided elsewhere herein, all installments
of this option which are not then exercisable will terminate. For purposes
herein, retirement shall mean the Employee's voluntary termination of his or
her employment with the Company or its subsidiaries (i) at or after age 62 or
(ii) at or after age 55, but before age 62, and after completing ten years of
continuous employment with the Company or its subsidiaries.

6.   Other Termination of Employment. If an Employee's employment with the
Company and its subsidiaries terminates for any reason other than death, total
and permanent disability or retirement, all vested, but unexercised, options
may be exercised by Employee at any time during the ninety (90) day period
following the last date of active employment, after which they will be
automatically cancelled (except that in no event may this option be exercised
after the Final Exercise Date). Any unvested stock options held by Employee
will automatically be cancelled as of the last date of active employment,
provided that, if the Employee (i) is discharged for cause which in the opinion
of the Committee casts such discredit on him or her as to justify termination
of his or her options, or (ii) in the opinion of the Committee, has violated
his or her Non-Competition Agreement with the Company, all of his or her
options shall be terminated as of the date of the Employee's termination of
employment. For purposes herein, employment shall not be considered terminated
(i) in the case of sick leave or other bona fide leave of absence approved for
purposes of the Plan by the Committee, so long as the Employee's right to
reemployment is guaranteed either by statute or by contract, or (ii) in the
case of a transfer of employment between the Company and a subsidiary or
between subsidiaries, or to the employment of a corporation (or a parent or
subsidiary corporation of such corporation) issuing or assuming this option in
a transaction to which section 425(a) of the Code applies.

7.   Provisions of the Plan. This option is subject to the provisions of the
Plan, a copy of which is furnished to the Employee with this option, has been
provided in the past or may be found on the stock option plan administrator
website.

IN WITNESS WHEREOF, the Company has caused this option to be executed under its
corporate seal by its duly authorized officer. This option shall take effect as
a sealed instrument.

                                  REEBOK INTERNATIONAL LTD.

                                  By: /s/ David A. Pace
                                      -----------------------------------------
                                      David A. Pace
                                      Senior Vice President and General Counsel

Dated As Of: December 5, 2001

<PAGE>

                            Reebok International Ltd.

                          RESTRICTED STOCK CERTIFICATE

GRANTED UNDER THE 2001 EQUITY INCENTIVE AND DIRECTOR DEFERRED COMPENSATION PLAN
-------------------------------------------------------------------------------

     This Restricted Stock Certificate (the "Certificate") evidences
Restricted Shares (defined below) granted by Reebok International Ltd., a
Massachusetts corporation ("Reebok" or the "Company"), to JAY MARGOLIS, an
employee of the Company or its subsidiaries (the "Employee"), pursuant to the
Company's 2001 Equity Incentive and Director Deferred Compensation Plan (the
"Plan").

     1.   Grant of Restricted Stock. This Certificate evidences the grant by the
Company on December 5, 2001 to the Employee of a total of 100,000 shares of
Common Stock of the Company (the "Restricted Shares"), at the per share price
of $24.00, subject to the restrictions and other conditions set forth herein.
The Restricted Shares shall be subject to forfeiture by the Employee, and may
not be sold, assigned, transferred, pledged, encumbered or otherwise disposed
of, until they have vested in accordance with the following vesting schedule,
and subject to Section 6:

          (a)   All Restricted Shares will vest on December 31, 2004.

The number of Restricted Shares to be vested on any vesting date hereunder
shall be adjusted appropriately by the Compensation Committee of the Board of
Directors (the "Committee"), or its designees, to reflect any additional
Restricted Shares (if applicable) received pursuant to Section 7 hereof. For
purposes of this section, "trading day" shall be defined as any day in which
shares are traded on the NYSE.

     2.   Stock Certificates. Prior to the vesting of any Restricted Shares, the
stock certificate(s) representing those Restricted Shares that have not yet
vested shall be held for the Employee by the Company or by a custodian
designated by the Company. The Employee shall receive all dividends (other than
stock dividends which shall be held in accordance with the terms of Section 7
below), stockholder communications and proxy materials with regard to the
Restricted Shares. Any certificate or certificates for Restricted Shares which
are forfeited in accordance with the provisions hereof shall be returned to the
Company. The Employee shall be entitled to any dividends or other distributions
(other than stock dividends which shall be held in accordance with the terms of
Section 7 below) attributable to forfeited Restricted Shares which are paid
after forfeiture of such Shares with respect to a record date prior to
forfeiture and shall have voting rights.

     3.   Delivery of Restricted Shares. The Employee shall cooperate to effect
delivery of any Restricted Shares which have vested in accordance with the
terms of all federal and state laws and regulations as interpreted by counsel
for the Company. Without in any way limiting the generality of the foregoing,
the Company may require that the certificate(s) representing Restricted Shares
bear a legend restricting the transfer thereof except upon compliance with the
conditions stated herein and the federal and state securities laws and that the
Employee, as a condition for delivery, make such representation or agreement,
if any, as may be required in the opinion of such counsel to avoid violation of
any laws or regulations, including without limitation, the registration or
other provisions of the Securities Act of 1933.

     4.   Withholding. No Restricted Shares will be delivered to the Employee
unless and until the Employee remits to the Company an amount sufficient to
satisfy any federal, state or local withholding tax requirements (including,
without limitation, any amount required under FICA), or makes other
arrangements satisfactory to the Company with regard to the payment of such
taxes.

                                      1

<PAGE>

     5.   Nontransferability of Grant. No Restricted Shares, nor any interest
therein, may be transferred by the Employee (by sale, pledge, gift or
otherwise) prior to the vesting of such Shares and the Restricted Shares
granted hereunder shall be delivered only to the Employee, or in the case of
death, the Employee's estate. Notwithstanding the foregoing, if the Employee is
incapacitated, the Restricted Shares may be delivered to the person or persons
legally appointed to represent the Employee, provided that the Company is
satisfied as to the authority of such legal representative.

     6.   Termination of Active Employment. Subject to Section 8 and the
provisos in this Section, if Employee's active employment with the Company or
its subsidiaries terminates for any reason (including, without limitation, a
voluntary resignation, death or disability), all Restricted Shares that have
not vested prior to the data of such termination shall be deemed to have been
forfeited by the Employee and shall be returned to the Company; provided,
however, that if the Company terminates Employee for other than "cause" (as
defined in Employee's Employment Agreement dated as of December 5, 2001) after
July 1, 2003, all of the Restricted Shares shall be accelerated such that all
of the Restricted Shares shall vest effective upon the date of such
termination; and provided further, that if the Company terminates Employee for
other than "cause" between January 1, 2003 and June 30, 2003, then 33,333 of
the Restricted Shares shall be accelerated and shall vest effective upon the
date of such termination. The Employee shall not be considered an active
employee if he or she is receiving severance from the Company. The Employee
shall be entitled to delivery of any Restricted Shares that have vested prior
to the date of termination of employment; provided, however, in the event of a
Change of Control (as defined in Section 8), the Restricted Shares shall vest
notwithstanding any termination of active employment. For purposes herein,
employment shall not be considered terminated: (i) in the case of sick leave or
other bona fide leave of absence approved for purposes of the Plan by the
Committee, so long as the Employee's right to reemployment is guaranteed either
by statute or by contract, or (ii) in the case of a transfer of employment
between the Company and a subsidiary or between subsidiaries.

     7.   Additional Restricted Shares. Any shares of Common Stock of the
Company or other securities which the Employee may receive or be entitled to
receive as a result of the ownership of the Restricted Shares, whether the same
are issued as a result of a share split, stock dividend, recapitalization, or
other subdivision or consolidation of Shares effected without receipt of
consideration by the Company or the result of the merger or consolidation of
the Company or sale of assets of the Company, shall be treated for all purposes
as Restricted Shares hereunder and shall be held by the Company pursuant to
Section 2 hereof until such Restricted Shares have vested.

     8.   Change of Control. If a Change in Control of Reebok occurs, the
Restricted Shares shall be accelerated such that all of the Restricted Shares
shall vest effective upon the date of such Change of Control. A Change of
Control will occur for purposes of this Certificate if: (i) any Person who does
not currently own directly or indirectly 5% or more of the combined voting
power of the Company's outstanding securities becomes the "beneficial owner"
(as defined in Rule 13d-3 under the Act) of securities of the Company
representing more than 30% (or, if higher, the aggregate percentage of the
combined voting power of the Company's then-outstanding securities held by or
for the benefit of Paul Fireman and his family) of the combined voting power of
the Company's then-outstanding securities, (ii) there is a change of control of
the Company of a kind which would be required to be reported under Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Act (or a similar item in
a similar schedule or form), whether or not the Company is then subject to such
reporting requirement, (iii) the Company is a party to a merger, consolidation,
sale of assets or other reorganization, or a proxy contest, as a consequence of
which members of the Board in office immediately prior to such transaction or
event constitute less than a majority of the Board thereafter, or (iv)
individuals who, at the date hereof, constitute the Board (the "Continuing
Directors") cease for any reason to constitute a majority thereof, provided,
however, that any director who is

                                      2

<PAGE>

not in office at the date hereof but whose election by the Board or whose
nomination for election by the Company's shareholders was approved by a vote of
at least two-thirds of the directors then still in office who either were
directors at the date hereof or whose election or nomination for election was
previously so approved shall be deemed to be a Continuing Director for purposes
of this Certificate.

     Notwithstanding the foregoing provisions of the above paragraph, a Change
of Control will not be deemed to have occurred if the initiation of any of the
events described in the preceding paragraph is by or with the concurrence of
the Company (acting by its Continuing Directors), nor shall a Change of Control
be deemed to have occurred solely because of: (i) the acquisition of securities
of the Company (or any reporting requirement under the Act relating thereto) by
an employment benefit plan maintained by the Company for its employees, or (ii)
the occurrence of a leveraged buy-out or re-capitalization of the Company in
which Executive participates as an equity investor so long as the Employee's
Restricted Stock was converted to equity securities on a basis no less
favorable than that generally adopted for other senior executives of the
Company.

     9.   Provisions of the Plan. This option is subject to the provisions of
the Plan, a copy of which is furnished to the Employee with this option, has
been provided in the past or may be found on the stock option plan
administrator website.

     IN WITNESS WHEREOF, the Company has caused this grant to be executed under
its corporate seal by its duly authorized officer. This grant shall take
effect as a sealed instrument.

                                                   REEBOK INTERNATIONAL LTD.

                                                   By: /s/ David A. Pace
                                                       ------------------------
                                                       David A. Pace
                                                       Senior Vice President and
                                                       General Counsel

Dated As Of: December 5, 2001

                                      3

<PAGE>

                            REEBOK EMPLOYEE AGREEMENT

     In consideration of my present and continuing employment by Reebok
International Ltd. ("Reebok", which term shall include all entities directly
or indirectly owned by, owning or under common ownership with it), I agree as
follows:

1.   Treatment of Confidential Information. I acknowledge that during the
course of my employment I may develop Confidential Information (as defined
below) for Reebok and I may learn of Confidential Information developed or
owned by Reebok or entrusted to Reebok by others. I will comply with Reebok's
policies and procedures for protecting, Confidential Information, including
without limitation, Reebok's Proprietary Information Protection Policy, and I
will never, directly or indirectly, use any Confidential Information, or
disclose, copy or allow access to any Confidential Information to any other
person, corporation or entity, except as required by the normal and proper
course of my duties for Reebok. I understand that my obligations regarding
Reebok's Confidential information shall survive as long as the confidential
nature of the information is maintained. I also understand that these
restrictions will continue to apply after my employment terminates, regardless
of the reason for termination.

     1.1   Definition of Confidential Information. Confidential Information
means any and all information not generally known by others outside of Reebok.
Confidential Information includes, but is not limited to, all information
proprietary to Reebok whether or not reduced to writing or other tangible
medium of expression, and whether or not patented, patentable, capable of trade
secret protection, or protected as an unpublished or published work under the
United States Copyright Act of 1976, as amended. Confidential Information also
includes information relating to the intellectual Property and Business
Practices (as defined below) of Reebok. Confidential Information also includes
comparable information that Reebok may receive or has received from others who
do business with Reebok. Confidential Information does not include information
which: (a) was already known by me prior to my employment with Reebok as
established by my personal records, (b) becomes generally available to the
public other than through a breach of this Employment Agreement, or (c) is
furnished to me by a third party who is lawfully in possession of such
information and who lawfully conveys that information.

     1.2   Definition of Intellectual Property. Intellectual Property includes
information relating to Reebok's research and development, inventions,
discoveries, developments, improvements, methods and processes, know-how,
drawings, blueprints, specifications, product briefs, algorithms, computer
programs and software, compositions, works, concepts, designs, ideas,
prototypes, models, samples, screens, molds, lasts, patents, copyrights,
trademarks, trade names, trade secrets, formulae, writings, notes and patent,
trademark and copyright applications.

     1.3   Definition of Business Practices. Business Practices includes
information relating to Reebok's Intellectual Property, business plans,
financial information, products, services, manufacturing processes and methods,
costs, sources of supply, advertising and marketing plans, customer lists,
sales, profits, pricing methods, personnel, and business relationships.

2.   Disclosure of Intellectual Property and Assignment of Rights. I will
promptly and fully disclose to Reebok all Intellectual Property conceived,
made, created, developed or reduced to practice by me (whether alone or with
others, whether or not during normal business hours and whether or not on
Reebok's premises) during my employment or within six (6) months thereafter
that relates in any way to the business or prospective activities of Reebok or
that results from, or is suggested by, work I do for Reebok. I hereby assign
and agree to assign to Reebok, or its designees, my full right, title, and
interest in and to all such Intellectual Property. I agree that, during and
subsequent to my employment by Reebok, I will, at Reebok's request and expense,
execute any and all applications for domestic and foreign patents, copyrights
or other rights and otherwise provide assistance (including, but not limited
to, the execution and delivery of instruments of further assurance or
confirmation) to assign such Intellectual Property to Reebok and to permit
Reebok to enforce any patents, copyrights or other rights in and to such
Intellectual Property. All works eligible for copyright protection that I
create shall be considered "works made for hire."

3.   List of Previous Intellectual Property. I attach hereto___pages, which
comprise a list of all Intellectual Property reduced to practice by me before
the commencement of my employment by Reebok, which Intellectual Property shall
be excluded from this Agreement, and I agree that said list is complete. IF
LIST OF INTELLECTUAL PROPERTY IS ATTACHED, EMPLOYEE SHOULD INITIAL HERE.___

4.   Protection of Documents and Return of Property. I will protect all
documents, records, tapes and other media in which Confidential Information is
contained ("Confidential Documents") and abide by Reebok's Proprietary
Information Protection Policy. I acknowledge that such Confidential Documents
are and shall remain the sole and exclusive property of Reebok. I will not copy
any Confidential Documents or remove any Confidential Documents, or copies
thereof, from Reebok premises, except as required by the normal and proper
course of my duties for Reebok. I agree to return to Reebok promptly upon the
termination of my employment, or at any other time when requested by Reebok,
any and all property of Reebok, including, but not limited to, all Confidential
Documents and copies thereof in my possession or control.

5.   Duty of Loyalty. While I am employed by Reebok, I will not compete with
it. Competition prohibited, includes without limitation, any direct or
indirect, sole or joint, ownership, management, operation, control or
investment in the securities of (except ownership of 1% or less of the equity
securities of any publicly traded company), loans or advances to, employment or
consulting with, or any other connection or affiliation with: (1) any
enterprise that is engaged in, or is about to become engaged in, research,
development, production, marketing or selling of (a) any product, process or
service in which Reebok has engaged in research, development, production,
marketing or selling, or has had under consideration during the period of my
employment or (b) any product, process or service that may be used in
substitution thereof: or (2) any enterprise that is a customer, consultant or
supplier of Reebok. I will promptly provide in writing at Reebok's request any
and all information necessary or desirable to confirm my compliance with this
provision.

<PAGE>

6.   Non-Recruitment. During my employment and for a period of one (1) year
after my employment with Reebok terminates, I will not and will not assist
anyone else to, hire any employee of Reebok or seek to persuade any employee of
Reebok to discontinue employment or to become employed in any business which is
directly or indirectly in competition with Reebok's business, nor seek to
persuade any independent contractor or other parties with which Reebok has an
existing relationship, or is in the process of establishing a relationship, to
discontinue his/her/its relationship with Reebok.

7.   Employment Status. I understand and acknowledge that I am being
employed on an "at will" basis and that either Reebok or I may terminate our
employment relationship at any time, for any reason, with or without notice.

8.   Prior Obligations. I represent and warrant to Reebok that my employment by
Reebok and execution and performance of this Agreement do not conflict with any
prior obligations to third parties and I agree that I will not disclose to or
use on behalf of Reebok any confidential information belonging to third
parties, including my prior employers, unless written authorization from such
third parties is first obtained. If any agreement with a third party does
restrict my ability to perform my job at Reebok, then I represent that I have
provided Reebok with a copy of the same.

9.   Remedies. I acknowledge that, were I to breach the provisions of this
Agreement, the harm to Reebok would be immediate and irreparable, I therefore
agree that in the event of such a breach or threat of such a breach Reebok
shall, in addition to other remedies available to it, have the right to obtain
preliminary and permanent injunctive relief against any such breach without
having to post a bond.

10.   General. This Agreement shall continue in effect after the termination
      -------
of my employment, regardless of the reason for termination, and shall be
binding upon my heirs, executors, administrators, representatives and assigns.
I acknowledge that Reebok's business is based out of and directed from
Massachusetts. During my employment, I understand further that I will have
substantial contacts with Massachusetts. This Agreement shall be deemed to have
been made in Massachusetts, and the validity, interpretation and performance of
this Agreement shall be governed by, and construed in accordance with, the
internal laws of the Commonwealth of Massachusetts, without giving effect to
conflict of law principles. I agree also that any action, demand, claim or
counterclaim relating to the terms and provisions of this Agreement, or to its
breach or formation, shall be commenced in Massachusetts in a court of
competent jurisdiction. I acknowledge that venue shall exclusively lie in
Massachusetts and that any material witness and documents would be located in
Massachusetts. This Agreement does not create an obligation on the part of
Reebok or any other person to continue my employment for any specified period
of time. This Agreement may not be modified or amended except by a written
amendment signed by me and an authorized officer of Reebok. A breach of any
provision of this Agreement may only be waived by an authorized officer of
Reebok and the waiver of such breach shall not operate or be construed as a
waiver of any subsequent breach. If any provision of this Agreement should, for
any reason, be held invalid or unenforceable in any respect, the remainder of
this Agreement shall be enforced to the fullest extent permitted by law.

11.   Reaffirmation. I understand that as a condition of my continuing
employment I may be requested to reaffirm this Agreement periodically, or to
sign a revised Agreement, and I agree to do so on a timely matter by signing a
copy of this Agreement, or the revised Agreement when so requested.

After having an adequate opportunity to review and consider this Agreement, and
intending to be legally bound hereby, I have voluntarily signed this Agreement
as an instrument under seal as of the date set forth below. I also acknowledge
receiving a copy of the Reebok Code of Conduct. I have read the Code of
Conduct, and agree by my signature below, to comply with the Code.

                                   REEBOK INTERNATIONAL LTD.

/s/ Jay Margolis                   /s/ James R. Jones, III
-----------------------            ------------------------
Signature of Employee              Signature

Jay Margolis                       Senior Vice President and
-----------------------            Chief Human Resources Officer
Employee's Printed Name            ------------------------
                                   Title

Date: 2/13/02
      -----------------

<PAGE>

                            NON-COMPETITION AGREEMENT

     This Non-Competition Agreement (the "Agreement") is entered into as of
this 5/th/ day of December, 2001, between Reebok International Ltd. ("Reebok")
and JAY MARGOLIS ("you").

     WHEREAS, you have been made aware of or may hereafter be made aware of
highly confidential and sensitive information owned or controlled by Reebok,
and WHEREAS, Reebok desires to protect its highly confidential and sensitive
information from use by or disclosure to parties other than Reebok;

     In consideration of the mutual promises contained herein, the parties
agree as follows:

1.   Non-Competition
     ---------------

     A.   During Term of Employment.

     You agree that while employed by Reebok, you will not, directly or
indirectly, own, manage, operate, control, invest in, make loans or advances
to, be employed by, act as an officer, director, agent or consultant for, or be
in any other way connected with, any enterprise anywhere in the world which is
engaged in the athletic footwear business, athletic apparel business, or any
other business which competes with Reebok or any of its subsidiaries or
affiliates (the "Non-Competition Requirement").

     B.   After Termination of Employment.

     (1)   In the event that your employment with Reebok is terminated for any
reason, Reebok will have the right, in its sole discretion, to extend the
duration of the Non-Competition Requirement described in Section I.A. for a
period of up to one (1) year after termination by providing written notice to
you within fourteen (14) days after your effective date of termination. The
written notice will specify the length of time that Reebok desires to extend
the Non-Competition Requirement. Except as otherwise provided in this
Agreement, for the Non-Competition period specified in Reebok's written notice,
Reebok will pay to you an amount equal to one-half (1/2) of your base salary as
of the date of your termination in accordance with Reebok's customary pay
practices in effect at the time each payment is made (which amount shall be
reduced by the amount of any severance you receive from Reebok). Reebok has the
option, for whatever reason, to elect to waive all or any portion of the
Non-Competition period by giving you written notice of such election at least
thirty (30) days in advance. In such event, Reebok shall not be obligated to
pay you the benefits specified above for any period for which the
Non-Competition Requirement has been waived.

     (2)   You agree that for a period of one (1) year following the date of
termination of your employment at Reebok, you will inform Reebok, prior to the
acceptance of any job or any work as an independent contractor, of the identity
of any new employer or other entity to which you are providing consulting or
other services, along with your starting date, title, job description and any
other information which Reebok may reasonably request to confirm your
compliance with the terms of this Agreement.

<PAGE>

II.   Non-Recruitment
      ---------------

     You agree that while employed by Reebok, and for a period of one (1) year
following the termination of your employment with Reebok (regardless of who
initiated the termination and the circumstances of the termination), you will
not solicit, hire, attempt to hire, or assist in the hiring of any employee of
Reebok or any of its subsidiaries or affiliates, or otherwise persuade or
attempt to persuade any such employee to discontinue his/her employment
relationship with Reebok or any of its subsidiaries or affiliates. This
requirement is independent of the Non-Competition Requirement set forth in
Section 1 of this Agreement and is not dependent on pay or benefit continuation
of any kind.

III.   General
       -------

     A.   In the event that you violate Section I or Section II of this
Agreement, the time period during which that Section remains in effect will be
extended during the time that you are in breach.

     B.   It is acknowledged that the provisions of this Agreement are
reasonable and a condition of your employment by Reebok. However, should any
provision of this Agreement be found unreasonable or invalid by any court of
competent jurisdiction, the parties agree to accept, in its stead, any lesser
restrictions which the court deems reasonable. In the event of your breach of
this Agreement, it is agreed that Reebok may cease making payments to you under
this Agreement and that you will be obligated to refund to Reebok all payments
made to you or on your behalf under this Agreement. In addition, you agree that
the remedy at law for any breach of the provisions of this Agreement will be
inadequate and that, in the event of breach, Reebok will be entitled to
injunctive relief in addition to any other remedy it may have.

     C.   This Agreement supplements, and does not supersede, your Reebok
Employee Agreement. This Agreement will be construed under and governed by the
laws of the Commonwealth of Massachusetts. The Massachusetts courts (state and
federal) will have exclusive jurisdiction of any controversy between you and
Reebok, and no court action may be brought by either party against the other
outside of Massachusetts. This Agreement does not create an obligation on the
part of Reebok or any other person to continue your employment. This Agreement
may not be modified or amended except by a written amendment signed by you and
an authorized officer of Reebok. A breach of any provision of this Agreement
may only be waived by an authorized officer of Reebok and such a waiver will
not be construed as a waiver of any later breach.

Accepted by:                          Agreed to:

REEBOK INTERNATIONAL LTD.

By: /s/ James R. Jones, III           /s/ Jay Margolis
    ---------------------------       -----------------------------
     Signature                        Signature of Employee

Senior Vice President and             Jay Margolis
Chief Human Resources Officer         -----------------------------
-----------------------------         Employee's Typed or Printed Name
     Title

2/13/02                               Dated: 2/13/02
-----------------------------                -----------------------
<PAGE>

8.05
CODE OF CONDUCT
INTRODUCTION

At RIL we conduct our business with high standards of professional conduct and
integrity and in compliance with applicable laws. This Code of Conduct (the
"Code") sets forth standards of business conduct and provides guidance in
certain areas where ethical issues may arise. The Code provides a general
framework for measuring our business conduct and does not address every
possible situation.

The Code applies to all employees of RIL, its divisions, subsidiaries and
affiliates, worldwide. Employees must read and become familiar with the Code
and are expected to comply fully with the Code on an on-going basis. If you
have a question whether particular conduct complies with the Code, you should
discuss the situation with an attorney in the Company's Legal Department. If
you become aware of any breach of the code, you should promptly report it to
your supervisor. Human Resources Representative or an attorney in the Company's
Legal Department.

CONFLICTS OF INTEREST

Employees should avoid situations which may place them in a conflict of
interest with the Company or which may create the appearance of a conflict. A
conflict of interest arises when an employee has a direct or indirect financial
or other interest which might influence the employee's judgment on behalf of
the Company. A conflict of interest exists if there is the potential for
influence, whether or not the employee's judgment is actually affected. In
determining whether a conflict exists, an employee should treat the interests
of members of his or her immediate family (spouse and children) in the same
manner as the employee treats his or her own interests.

If you think you may be involved in a situation that creates a conflict of
interest or the appearance of a conflict, you should advise the Company's Legal
Department. While the Company usually will require that the conflict be
eliminated, there may be some limited situations where the conflict may be
acceptable because procedures can be put in place to protect the Company. The
Company will have full discretion to determine how a conflict will be handled
and its decision in this regard will be final. Although it is impossible to
list all of the situations which might be considered conflicts of interest,
some of the more common examples are described below:

Investments in or Affiliations with Suppliers, Customers or Competitors.
Employees must promptly disclose to Legal any financial or other interests in,
or participation as a director, officer, employee, consultant, agent, creditor,
lender, or in any similar capacity in: (1) any business which supplies goods or
services to RIL or its subsidiaries, (2) any business to which RIL or its
subsidiaries sell goods or services or (3) any business with which RIL or its
subsidiaries compete. As discussed above, RIL will then determine if an
unacceptable conflict of interest exists.

<PAGE>

Generally, ownership interests of less than 1% (as long as such interests have
a value of less than $5,000) will not be considered to create a conflict.
However, employees should not hold any ownership interest in a direct
competitor of RIL or its subsidiaries. Some of our competitors include Nike,
Adidas, Asics, Mizuno, Champion, Starter, Timberland, L.A. Gear, K Swiss, Puma,
and Converse. Smaller start-up companies can also be direct competitors. From
time to time, the Company may distribute an updated list of some of our direct
competitors for whom any stock ownership would be prohibited.

Gifts and Entertainment. Employees should not accept gifts, discounts,
payments, or other personal benefits or favors from individuals or firms which
do business or propose to do business with RIL. In certain cases, because of
protocol or courtesy, it may be appropriate to accept an unsolicited gift of
nominal value (no greater than $200 in any one year period); however, under no
circumstances shall gifts of money (or equivalents such as stocks or bonds or
other financial assets) be accepted. It may be appropriate to accept reasonable
forms of entertainment (such as lunches, dinners, concerts or tickets to
sporting events) in connection with business dealings. If an employee accepts a
gift or entertainment in excess of $50 (but less than the $200 cap), it must be
reported in all cases in writing to your manger. Managers will be responsible
for monitoring the acceptances and determining the appropriateness of the gift.

As a guidelines for helping you to determine whether a particular gift,
entertainment or other benefit is appropriate, you should consider whether it
would be considered extravagant or excessive or whether a disinterested third
party might infer that it could affect your judgment. If so, the gift,
entertainment or other benefit should not be accepted. If you receive a gift,
entertainment or other benefit which does not comply with this policy, or are
unsure if it complies, it should be reported in writing to the Company's Legal
Department who may choose to accept the gift on behalf of the Company,
determine that it is appropriate for you to keep the gift, or require that the
gift be returned. In addition, employees should not receive any form of
compensation from a third party for services that he or she normally would
perform on behalf of the Company within the scope of his or her employment.

Use of Company Position or Assets. Employees may not use their position in RIL
or use Company assets or Company property for personal gain (financial or
otherwise). Specifically. no RIL employee may use RIL property for his or her
own personal benefit, including trading or bartering property, or selling RIL
product for personal gain. Company property includes product made by the
Company, but not purchased by the employee, other items or product from
suppliers or endorsers and computer equipment and software.

IMPROPER PAYMENTS

Political Contributions. Political contributions of Company funds made directly
or indirectly to candidates for political office or political organizations are
in most instances considered illegal in the United States and in many foreign
countries. Where

<PAGE>

lawful, corporate political contributions may be made only when specifi-cally
approved in advance by the Company's General Counsel and the Chief Executive
Officer. Employees are free to make personal political contributions within
applicable limits, but will not be compensated or reimbursed by the Company for
any such contributions.

Other Improper Payments, Kickbacks. No bribes, illicit rebates, kickbacks
or other illegal payments shall be made to government officials, customers,
suppliers, prospective suppliers or customers, or anyone else, either directly
or indirectly. Gifts, favors or entertainment may be extended to such
individuals or companies only if all of the following conditions are met:

[STAR]  They do not violate applicable laws.
[STAR]  They are not extended to obtain a specific action by a government
        official, supplier or customer.
[STAR]  They are of such limited value and are in such form that they can not be
        construed as a bribe, payoff or deal.
[STAR]  Public disclosure of the facts surrounding them would not embarrass the
        Company or the recipients in any way.

Allowable Payments. In some countries, it may be necessary to pay small amounts
of money or provide small gifts to facilitate or expedite the performance of
tasks such as customs clearance, visa applications and exchange transactions.
While such "expediting or facilitating" payments should be avoided, if
possible, they are allowable if they are made only to enable timely and correct
performance of these routine tasks, and not to deter or circumvent these tasks
in any way. Such payments may not be made to induce foreign officials to fail
to perform their duties or to perform them in an incorrect manner. In the event
you have any question concerning whether a possible payment is appropriate you
should consult with the Company's Legal Department.

Bookkeeping and Accurate Recordkeeping. RIL is required to establish and
maintain appropriate accounting procedures and accurate books and records which
reflect all corporate assets, liabilities and transactions and which ensure
that the Company's funds are not being put to improper use. All transactions of
any nature must be recorded accurately in the Company's books and records and
no payments should be made with the understanding that such payment is for any
purpose other than that described by the documents supporting such payment.
Employees should accurately disclose all transactions to the Company's internal
and external auditors.

INSIDER TRADING

Insider Trading. The United States and many foreign countries have laws that
deal with purchasing and selling Company stock. These laws are designed to
protect the investing public by prohibiting the purchase or sale of stock based
on "inside" information. Any employee who knows information about RIL that a
reasonable investor would consider important in making a decision to buy, hold
or sell stock (in short, any information which could reasonably affect the
price of the stock) and which

<PAGE>

has not been disclosed to the general public, possesses "inside" information.

Common examples of possible "inside" information are: projections (or changes
in projections) of future earnings or losses: information on results of
operations of the Company or significant operating units before results are
announced; news of a proposed merger, acquisition or tender offer; news of a
significant sale of assets or the sale of a subsidiary; changes in dividend
policies; the declaration of a stock split or the offering of additional
securities; changes in senior management; significant new products; impending
bankruptcy problems; major litigation developments; and the gain or loss of a
substantial customer or supplier.

Information generally will be regarded as having become public when it has
effectively been disclosed to the public -- generally through its publication in
the news media or by filings with the Securities and Exchange Commission -- and
                                                                            ---
the public has had sufficient time to consider and act upon it. Generally, you
can feel safe in assuming that information has become public as of the third
business day after it has been released.

The securities laws prohibit any RIL employee from trading (either personally
or on behalf of others) in RIL stock on the basis of information or having
others trade for him or her on the basis of that information. It is also
illegal to communicate (to "tip") inside information to others so that they
may trade in RIL stock based on that information. These illegal activities are
commonly referred to as "insider trading." Transactions that may be necessary
or justifiable for independent reasons (such as your need to raise money for an
emergency) are not an exception to this rule. Certain employees are also
subject to the Company's trading windows policy that limits the time period in
which they may trade RIL stock.

Although it is most likely that any inside information you might learn will be
about RIL, the prohibitions described above also apply to trading in the
securities of any company about which you have such information. Failure to
abide by these rules can lead to serious consequences (including criminal
penalties) for both RIL and the employee involved. If you have any questions as
to whether you possess "inside" information or whether you should trade in
securities, you should consult with Legal.

In addition to prohibiting employees from trading on "inside" information, as
a matter of policy the Company requires its employees to keep confidential all
non-public material information regarding RIL's business or operations. Such
matters should not be discussed with family members or friends, and employees
should take all steps necessary to ensure that the confidentiality of such
information is maintained.

Disclosing Confidential Information. Employees may not directly or indirectly
divulge Company confidential information to any unauthorized recipient, use or
divulge such information for the purpose of securing personal profit, or retain
the confidential information following termination of employment. The Employee
Agreement signed by each of you contains more specific provisions concerning
confidential information.

<PAGE>

ANTITRUST AND COMPETITION LAWS
------------------------------

Antitrust and competition laws are designed to promote fair and open
competition by prohibiting unfair, restrictive or collusive business practices.
It is the Company's policy to comply fully with all such laws.

U.S. antitrust laws prohibit among other things agreements or arrangements
between competitors to fix or influence price, or agreements requiring
purchasers or distributors to adhere to a specific resale price and agreements
to allocate customers or markets. Unlawful agreements need not take the form of
a written agreement, but can be based on oral commitments or informal
understandings. Thus, employees should use caution when communicating with
competitors or discussing pricing issues with our customers. In addition to
prohibiting price fixing or resale price maintenance agreements and allocation
of customers or markets, the U.S. antitrust laws forbid unfair or deceptive
trade practices and other activities which may restrain or reduce competition.

You should be aware that U.S. antitrust laws may apply to activities that occur
outside the U.S. if such activities have a significant and foreseeable effect
on commerce within the U.S. Moreover, the European Community and other foreign
countries have competition laws similar to the U.S. antitrust laws which must
also be followed when dealing in international markets.

Because of the complexity of these laws and the serious consequences to both
the Company and the employees involved if such laws are violated the Company's
Legal Department should be consulted if there is any question as to whether a
particular practice or transaction complies with such laws.

COMPLIANCE WITH CUSTOMS AND IMPORT/EXPORT LAWS

It is crucial to the Company's business that its products are able to be sold
in all international markets in which we operate. The Company thus requires
employees to follow all applicable import/export laws and regulations so that
its trading privileges are not jeopardized.

Employees involved in import/export transactions should ensure that all
required documents are accurately completed and maintained, and that all
import/export transactions are conducted in compliance with applicable laws and
regulations. Because of the complexity of such laws and regulations, the
Company's Legal Department should be consulted if any questions arise.

MISCELLANEOUS
-------------

Reebok also publishes several other policies and guidelines relating to proper
business conduct that must be followed, including without limitation, policies
on the usage of computer software, the internet and E-mail. Preventing
Harassment; use of sample and

<PAGE>

promat accounts, and travel and expense reimbursement.

REPORTING VIOLATIONS

If you believe you are in violation of any of the provisions of this Code of
Conduct, please contact Human Resources or a representative (counsel) of the
Company's Legal Department to discuss the matter. In addition, in order to help
the Company maintain compliance with the Code, you may disclose any other
violation of the Code, of which you are aware, so that appropriate action may
be taken by the Company.<Page>

FINAL                                                              EXHIBIT 10.59

                                            Effective January 1, 2002

Mr. David Perdue
Reebok International Ltd.

         RE:  EMPLOYMENT AGREEMENT

Dear David:

         This letter will evidence the agreement between you and Reebok
International Ltd. (referred to as "Reebok", "RIL" or the "Company") relating to
your continued employment by Reebok effective as of January 1, 2002 (the
"Effective Date"). Our agreement is as follows:

         1. YOUR POSITION; DUTIES AND RESPONSIBILITIES. Reebok hereby agrees to
continue your employment beginning as of January 1, 2002, on the terms and
subject to the conditions set out in this Agreement. You are hereby designated
during the Employment Term (as defined in Section 2 below) as Executive Vice
President of RIL and President and CEO of the Reebok Brand. In such capacity,
you will have all duties, responsibilities and authorities normally associated
with such position, including responsibility for executing the strategic
direction and for operating results of the business in the Reebok Brand on a
worldwide basis. You will devote your full business time and your best efforts
in carrying out the duties, responsibilities and authorities of that position,
and you will operate within corporate policies, guidelines, regulations, and
strategies, and mutually-agreed budgets, cash flows and capital authorization
levels established by the Board of Directors of the Company or its Chief
Executive Officer. Subject to the provisions of Section 10B, your duties and
responsibilities may be changed from time to time. You will report to the
President and COO of RIL (currently Jay Margolis) or an individual with the same
or higher level title.

         You shall not be prevented from accepting positions of responsibility
in outside business and charitable organizations, such as directorships of
outside business corporations and public charities, subject to the limitation
that such activities shall not interfere with your discharge of your
responsibilities to Reebok hereunder and shall not include any involvement with
any competing enterprise. You will comply with whatever policies are in
existence in this regard, including the current policy, which limits senior
executives to serving on no more than two (2) for-profit boards of directors.

         2. EMPLOYMENT TERM.

         A. EMPLOYMENT TERM. The term of your employment under this Agreement
shall commence as of the Effective Date and will continue until December 31,
2004 (the period of time shall be referred to as the "Initial Employment Term").
Subject to the terms and conditions of this Agreement, if this Agreement has not
been terminated pursuant to Section 10 below prior to the expiration of the
Initial Employment Term, then this Agreement shall automatically be extended for
up to two (2) additional one (1) year terms (the "Renewal Terms"). The Initial

                                    Page 1/11
<Page>

Employment Term and any Renewal Terms are herein collectively referred to as the
"Employment Term."

         B. SURVIVAL OF CERTAIN PROVISIONS. The obligations set forth in the
Employee Agreement, Non-Competition Agreement, and the Code of Conduct referred
to in Section 9 will continue in effect, to the extent applicable after
termination, after the termination of your employment with the Company and/or
after the expiration of the Employment Term.

         3. BASE SALARY. Your initial base salary will be at an annualized rate
of $600,000 payable in accordance with Reebok's normal pay practices. Your base
salary will next be reviewed in March of 2002, and annually thereafter in
accordance with Board practices. You understand, however, that any increase in
base salary for 2002 shall not occur until increases are provided to other
senior executives.

         4. ANNUAL INCENTIVE COMPENSATION.

         (i)   EXECUTIVE PERFORMANCE INCENTIVE PLAN. For each calendar year of
               the Employment Term, you will participate in the same incentive
               compensation plan as the other senior executives of the Company,
               and to the extent that you share financial performance criteria
               with those other executives under the plan, your required level
               of financial performance will be set at the same level as for
               those other executives. Your annual incentive compensation has
               been targeted at 100% of your base salary for fiscal year 2002.
               Actual payment levels under the incentive compensation program
               will be based on your achievement of financial and management
               performance goals, with such goals to be established each year by
               the Company's Chief Executive Officer or Board of Directors, and
               payments will be made in accordance with the terms and subject to
               the conditions of the incentive plan then in effect for the
               senior executives of the Company. You will be eligible to receive
               a bonus award with respect to any plan year for which you are
               actively employed as of December 31 of such plan year.

         (ii)  PAYMENT IN 2002. You will remain eligible to receive an incentive
               payment in 2002 (attributable to fiscal year 2001) in the amount
               otherwise payable under the terms of the 2001 Executive
               Performance Incentive Plan. The Company will make such payment,
               if any, in accordance with its usual practice for the payment of
               incentive compensation to senior executives; however, it is
               anticipated that the Company will make such payment in mid-March
               of 2002. You will receive any payments under this Section 4(ii)
               unless your employment is terminated pursuant to Section 10A or
               Section 10C prior to actual payment.

         (iii) DISPUTES. In the event of any disagreement concerning whether
               incentive plan goals have been achieved and/or the percentage
               bonus to be awarded pursuant to the incentive plan, the decision
               of the Company's Chief Executive Officer shall be final. If you
               believe that the decision of the Company's Chief Executive
               Officer has not been made in good faith, you may submit your
               position on the matter in writing to the Compensation Committee
               of the Company's Board of Directors,

                                    Page 2/11
<Page>

               which will consider your position at its next regular meeting.
               The Compensation Committee has full discretion to determine the
               issue and its determination will fully bind the parties.

         5. CHANGE OF CONTROL. Attached as EXHIBIT A is a Change of Control
Agreement approved in form by the Compensation Committee of the Board of
Directors.

         6. STOCK OPTIONS.

         (i)   GENERAL. The Company may grant you so-called "non-qualified"
               stock options with respect to its common stock under the
               Company's 1994 Equity Incentive Plan and any subsequent
               additional or successor plan in effect at a relevant time (such
               plans are referred to herein as the "Option Plan"). The terms of
               the Option Plan and any agreement under the Option Plan relating
               to the options will govern the exercise and all other matters
               relating to the options. The amount of any options will be in
               accordance with Board practices and with the approval of the
               Compensation Committee.

         (ii)  STOCK OPTION GRANT. 100,000 "non-qualified" stock options will be
               granted to you under the Option Plan to acquire additional shares
               of Reebok common stock, at $24.00 per share (the market price of
               Reebok's common stock upon the closing of the market as of the
               December 5, 2001 date of grant). This stock option grant will
               expire ten (10) years after the date of grant and will become
               ratably exercisable over a four (4) year period on the
               anniversary of the date of grant.

         7. FRINGE BENEFITS AND BUSINESS RELATED EXPENSES.

         (i)   GENERAL. You will be eligible to participate in or receive
               benefits under any pension plan, 401(k) retirement plan, medical
               and dental benefits plan, life insurance plan, short-term and
               long-term disability plans, supplemental and/or incentive
               compensation plans, or any other employee benefit or fringe
               benefit plan, generally made available by the Company to senior
               executives in accordance with the specific eligibility and
               approval requirements of such plans and subject to the terms and
               conditions set forth in this Agreement. Notwithstanding the
               foregoing, you will not be eligible to participate in the Reebok
               International Ltd. Severance Policy during or at the end of the
               Employment Term.

         (ii)  PERSONAL ALLOWANCE. In addition, the Company will provide to you
               during the Employment Term a personal allowance of $2,500 per
               month to be used in your discretion. This personal allowance may
               be increased, decreased or eliminated, but in no event will you
               be treated less favorably than other similarly situated executive
               officers.

         (iii) EXPENSES. The Company will promptly reimburse you for the
               reasonable and necessary business expenses incurred by you in the
               performance of the duties under this Agreement in accordance with
               its customary practices applicable to

                                    Page 3/11
<Page>

               senior executives, provided that such expenses are incurred and
               accounted for in accordance with the Company's policy.

         (iv)  SERP. The Company will recommend to the Compensation Committee of
               the Board of Directors that you participate in the Company's
               Supplemental Executive Retirement Plan as it may be amended
               ("SERP") in the event that your employment extends beyond the
               Initial Employment Term of this Agreement in the same or higher
               capacity, and that you fulfill all other eligibility requirements
               for participation in the SERP, as they may be modified from time
               to time. You acknowledge that the Company is reviewing its
               executive long-term incentive programs, including the SERP, and
               that as a result of the review the Company may determine that no
               additional employees will participate in the SERP. If you would
               have become eligible for participation in the SERP pursuant to
               this paragraph and the eligibility terms but for such a decision
               to discontinue additional participants in the SERP, the Company
               will recommend you for enrollment in the other long-term
               incentive programs next adopted by the Company and offered
               generally to senior executives.

         8. VACATION. You will be entitled to vacation in accordance with normal
Reebok policy for senior executives, with any additional amount to be determined
by the Company's Chief Executive Officer.

         9. CONFIDENTIALITY, NON-COMPETITION AND CODE OF CONDUCT.

         (i)   GENERAL. During the Employment Term and thereafter you will be
               subject to the terms and conditions of each of the following
               standard employee agreements as modified pursuant to Section
               9(ii) below: the standard Reebok Employee Agreement attached
               hereto as EXHIBIT B (the "Employee Agreement"); the standard
               Reebok Non-Competition Agreement attached hereto as EXHIBIT C
               (the "Non-Competition Agreement"); and the Reebok Code of Conduct
               attached hereto as EXHIBIT D (the "Code of Conduct"). The
               Employee Agreement, Non-Competition Agreement, and the Code of
               Conduct, as modified by this Agreement, will continue in effect,
               to the extent applicable, after the termination of your
               employment with the Company.

         (ii)  ANCILLARY AGREEMENT MODIFICATIONS.

               (a)  EMPLOYEE AGREEMENT [EXHIBIT B]. The Employee Agreement
                    attached hereto as Exhibit B is modified as follows:

                    (I)  Section 5 of the Employee Agreement is modified by
                         adding a new second sentence to read as follows:
                         "Notwithstanding the preceding sentence, in no event
                         will I hold any equity or other interest of any kind in
                         Nike, adidas, Timberland, K Swiss, Puma, Stride Rite,
                         New Balance and Fila or their affiliates."

                                    Page 4/11
<Page>

                    (II) Section 7 of the Employee Agreement is deleted and
                         Section 2 of this Agreement is substituted therefor.

               (b)  NON-COMPETITION AGREEMENT. The Non-Competition Agreement
                    attached hereto as Exhibit C is modified by adding the
                    following new sentence at the end of Section I.A. to read as
                    follows: "Notwithstanding the preceding sentence, you may
                    invest in 1% or less of the equity securities of any
                    publicly traded company; provided, however, that in no event
                    will you hold any equity or other interest of any kind in
                    Nike, adidas, Timberland, K Swiss, Puma, Stride Rite, New
                    Balance and Fila or their affiliates."

               (c)  CODE OF CONDUCT. The Code of Conduct attached hereto as
                    Exhibit D is modified as follows:

                    (I)  The second paragraph of the section entitled
                         "Investments in or Affiliations with Suppliers,
                         Customers or Competitors" under "Conflicts of Interest"
                         is modified to read as follows: "Generally, ownership
                         interests of less than 1% of the equity or other
                         securities of a publicly traded corporation will not be
                         considered to create a conflict. However, employees
                         should not hold any ownership or other interest in the
                         following competitors of Reebok or their affiliates:
                         Nike, adidas, Timberland, K Swiss, Puma, Stride Rite,
                         New Balance and Fila. From time to time, the Company
                         may distribute an updated list of some of our
                         competitors for whom any stock ownership would be
                         prohibited."

                    (II) The last paragraph of the Code of Conduct is modified
                         by adding the following new sentence at the end thereof
                         to read as follows: "Notwithstanding the foregoing,
                         your employment shall be subject to the terms and
                         conditions of any written employment agreement in
                         effect between you and the Company."

         10. EMPLOYMENT TERMINATION. Notwithstanding the provisions of Section 2
above, your employment under this Agreement may be terminated prior to the end
of the Employment Term in any of the following cases:

         A. VOLUNTARY TERMINATION WITHOUT GOOD REASON. You may terminate your
         employment under this Agreement, without "good reason," upon ninety
         (90) days prior written notice to the Company. Such written notice will
         set forth the date your employment ends.

         B. VOLUNTARY TERMINATION WITH GOOD REASON. You may terminate your
         employment under this Agreement with "good reason" upon at least
         fourteen (14) days prior written notice to the Company; provided,
         however, that you must first provide written notice of the "good
         reason" to the Company, and the Company must fail to cure such "good
         reason" within thirty (30) days after the date on which you give
         written notice of such "good

                                    Page 5/11
<Page>

         reason" within thirty (30) days after the date on which you give
         written notice of such "good reason." For purposes of this Agreement,
         "good reason" will mean the occurrence of any of the following:

         (i)   A material diminution in the overall level of your
               responsibilities, duties, powers or authority, except in
               connection with the cessation of your employment by a) death, b)
               by the Company for cause or your incapacity, as defined in
               Section 10E, or c) by you other than for "good reason" as defined
               in this Section 10B.

         (ii)  Any reduction in Base Salary or short or long-term incentive
               compensation, except for across-the-board salary or incentive
               compensation reductions similarly affecting all senior executives
               of the Company;

         (iii) The failure by the Company to pay you when due any material
               amount of your current compensation or any material amount of
               your compensation payable under any plan, agreement or
               arrangement of or with the Company, within ten (10) days after
               you make written demand for such amount.

         (iv)  The failure of the Company to maintain your relative level of
               coverage under the Company's employee benefit plans, policies,
               practices, or arrangements in which you participate, both in
               terms of the amount and timing of benefits provided and the
               relative level of your participation. For this purpose, the
               Company may eliminate and/or modify existing employee benefit,
               incentive compensation, retirement, or material fringe benefit
               plans, policies, practices, or arrangements and coverage levels
               on a consistent and non-discriminatory basis applicable to all
               such executives; provided, however, that your level of coverage
               under all such programs must be at least as great as is such
               coverage provided to employees who have the same or lesser levels
               of reporting responsibilities within the Company's organization.

         (v)   The changing of your reporting relationship to a position lower
               than President and COO of RIL so long as you deliver your
               resignation within six (6) months of the change and provide at
               least three (3) months advance notice and transition time

         Your continued employment shall not constitute consent to, or a waiver
of rights with respect to, any act or failure to act constituting Good Reason
hereunder.

         C. CAUSE. The Company may terminate your employment under this
         Agreement for cause, upon written notice to you. For purposes of this
         Agreement, "cause" will mean:

         (i)   fraud, embezzlement, or other intentional misappropriation from
               the Company or an affiliate thereof;

                                    Page 6/11
<Page>

         (ii)  your conviction of a felony or a misdemeanor involving moral
               turpitude;

         (iii) any other conduct on your part involving fraud, gross negligence
               or willful misconduct, or other action which materially damages
               the reputation of the Company or an affiliate thereof; or

         (iv)  your default of any material obligations under this Agreement,
               provided, however, that the Company must first provide written
               notice of the default to you, and you must fail to cure such
               default within thirty (30) days after the date on which the
               Company gives you written notice of such default.

         It is understood and agreed that a failure to achieve financial or
         other business results is not a basis for a "for cause" termination. No
         termination of your employment for cause shall be deemed to have
         occurred unless you have been given notice of the reason therefore
         including the allegations which may constitute reason for such
         termination and after (a) you have been provided an opportunity to be
         heard by the Board of Directors of the Company or the Executive
         Committee thereof, and (b) such decision has been upheld by the Board
         or Executive Committee.

         D. DEATH. Your employment will terminate immediately upon your death,
         subject to the payment obligations set forth in Section 11B below.

         E. INCAPACITY. Upon written notice to you, the Company may terminate
         your employment under this Agreement in the event of your incapacity,
         subject, however, to any legal obligations that mandate continued
         employment. For purposes of this Agreement, "incapacity" will mean such
         incapacity or disability as would qualify you for long-term disability
         coverage under the Company's long-term disability insurance plan.

         F. ANY OTHER REASONS. Subject to the payment obligations set forth in
         Section 11C, the Company may terminate your employment for any other
         reason, upon written notice to you stating the date of termination.

         11. PAYMENT OBLIGATION IN THE EVENT OF TERMINATION. In the event of any
termination pursuant to Section 10, Reebok shall have the following payment
obligations:

         A. VOLUNTARY TERMINATION WITHOUT GOOD REASON AND TERMINATION FOR CAUSE.
         In the event your employment is terminated pursuant to Section 10A
         [voluntary termination without good reason] or Section 10C [termination
         for cause],

         (i)   Your right to receive compensation under this Agreement shall
               cease as of the effective date of such termination.

         (ii)  The Company shall pay the following amounts to you: any accrued
               but unpaid base salary for services rendered to the date of
               termination; any accrued but unpaid expenses required to be
               reimbursed and any vacation accrued to the date of termination.

                                    Page 7/11
<Page>

         (iii) Except as may be provided under the terms of any incentive
               compensation, employee benefit, or fringe benefit plan applicable
               to the you at the time of your termination or resignation of
               employment prior to the end of the Employment Term, you shall
               have no right to receive any other compensation, or to
               participate in any other plan, arrangement or benefit, with
               respect to future periods after such termination or resignation.

         B. TERMINATION FOR DEATH OR INCAPACITY. In the event of your employment
         is terminated pursuant to Section 10D [death] or Section 10E
         [incapacity], you will be entitled to payment of your base salary only
         until the last day of your employment and no further payments of any
         kind will be due you from the Company. However, upon termination of
         your employment because of death or upon termination of your employment
         because of disability, as defined in the Option Plan, all outstanding
         stock options will become immediately exercisable pursuant to the
         provisions of the Option Plan. Additionally, you or your beneficiaries
         will be entitled to receive any benefits that are payable with respect
         to your termination of employment under the terms of any pension or
         profit-sharing plan, or life insurance or disability plan of the
         Company in which you participated before your employment ended. You
         will, however, not be entitled to receive any benefit under any
         severance plan, arrangement or agreement of the Company other than the
         payments from the Company described in this Section 11B.

         C. VOLUNTARY TERMINATION WITH GOOD REASON OR INVOLUNTARY TERMINATION
         FOR ANY OTHER REASON. In the event that you terminate your employment
         under this Agreement pursuant to Section 10B [voluntary termination
         with "good reason"], or the Company terminates your employment for any
         reason pursuant to Section 10F, including without cause (as cause is
         defined in Section 10C), you will be entitled to the following:

         (i)   a severance period whereby you could collect your base salary at
               the times and in the amounts that would have been paid for a
               maximum period of eighteen (18) months (the "Severance Period");

         (ii)  continuation on any Company-provided medical coverage in effect
               for you and your family as of the date of termination through the
               Severance Period;

         (iii) continuation of life, supplemental life and AD&D insurance
               coverage to the same extent through the Severance Period;

         (iv)  entitlement for the severance pay and benefits offered pursuant
               to this Section 11C will not extend beyond the date that you
               obtain new employment, and continuation of medical and dental
               coverage will end on the last day of the month in which such new
               employment is obtained.

         (v)   as an incentive to find a new job, however, if you obtain new
               employment prior to the expiration of the Severance Period you
               will receive a lump-sum payment equal to one-half of the
               remaining weeks in the Severance Period. "New employment" shall
               mean a full-time job; or a part-time job or consulting
               relationship in which

                                    Page 8/11
<Page>

               you earn a substantial portion of your previous compensation at
               RIL, as determined by the Company in its sole discretion.
               However, "new employment" shall not include employment in
               teaching, government, public service or service as a corporate
               director, or work for fewer than twenty-five (25) hours per work
               either as a consultant or employee of a not-for-profit company.

         (vi)  you agree to provide information and services (including without
               limitation, cooperation in litigation and transition assistance)
               to the Company, if so requested, during the Severance Period for
               no additional compensation. These services, however, shall not
               exceed sixteen (16) hours per week during the Severance Period;
               provided, however, that the Company will reimburse you for any
               reasonable expenses incurred on its behalf. If you are re-hired
               by RIL or any RIL subsidiary or affiliated organization, the
               Severance Period will cease on the date of re-employment and you
               shall not be entitled to any lump sum or other payment.

         (vii) the payments and benefits set forth in this Section will be
               contingent upon your execution of a general release contained in
               a Separation Agreement in a form acceptable to you and the
               Company, and will be in lieu of payments and other benefits, if
               any, to which you may be entitled under any other severance
               agreement or severance plan or arrangement of the Company.

         12. [INTENTIONALLY LEFT BLANK]

         13. MISCELLANEOUS

         (i)   SUCCESSORS, ASSIGNS, AMENDMENT, ETC. This Agreement shall be
               binding upon and shall inure to the benefit of Reebok and its
               successors and assigns. Unless such assumption would otherwise
               occur by operation of law, the Company shall not enter into any
               agreement for the merger, consolidation, restructuring, sale of
               assets or other reorganization of the Company, without providing
               for the express assumption of this Agreement by the Company's
               successor. This Agreement shall be binding upon you and shall
               inure to the benefit of your heirs, executors, administrators and
               legal representatives, but shall not be assignable by you. This
               Agreement may be amended or altered only by the written agreement
               of Reebok and you.

         (ii)  NOTICE. All notices, requests, consents and other communications
               required or permitted hereunder shall be in writing and shall be
               hand delivered or mailed by certified mail, postage prepaid,
               addressed as follows: If to Reebok, to General Counsel, Reebok
               International Ltd., 1895 J. W. Foster Boulevard, Canton, MA
               02021, or to such other address as may have been furnished to you
               in writing as herein provided; or, if to you, to the address set
               forth above, or to such other address as may have been furnished
               to Reebok by you as herein provided in writing and with a copy to
               your attorney: H. James Hartley, Perkins, Smith &

                                    Page 9/11
<Page>

               Cohen, Boston, Massachusetts. Any notice or other communication
               so addressed and so mailed shall be deemed to have been given
               three days after said mailing.

         (iii) APPLICABLE LAW. This Agreement has been executed and delivered by
               both parties in the Commonwealth of Massachusetts and shall be
               governed by the internal law of the Commonwealth of Massachusetts
               without reference to its choice of law rules or to any rule of
               any jurisdiction which would cause the rule of another
               jurisdiction to apply. The venue of any action relating to this
               Agreement will be the state and federal courts located in the
               Commonwealth of Massachusetts. Respecting any such action, the
               parties waive any right they may have (i) to contest venue on the
               ground of inconvenient forum, and (ii) to have such action heard
               before a jury or an advisory jury.

         (iv)  SEVERABILITY. Each provision of this Agreement is severable from
               the others, and if any provision hereof shall be to any extent
               unenforceable, it and the other provisions hereof shall continue
               to be enforceable to the full extent allowable by any court of
               competent jurisdiction, as if such offending provision had not
               been a part of this Agreement.

         (v)   WITHHOLDING. The Company will cause any federal, state or local
               income, withholding , employment or other tax to be withheld from
               payments hereunder.

         (vi)  HEADINGS; CONSTRUCTION. Section headings are for convenience of
               reference only and do not form part of the text of this
               Agreement. Whenever the context requires, the singular will
               include the plural and vice versa.

         (vii) WAIVER. The failure of a party to insist on strict adherence to
               any term of this Agreement on any occasion will not be considered
               a waiver thereof or deprive that party of the right thereafter to
               insist upon strict adherence to that term or any other term of
               this Agreement.

        (viii) ENTIRE AGREEMENT. This Agreement, constitutes the entire
               agreement between the parties concerning its subject matter, and
               supersedes any and all prior agreements, understandings,
               warranties or representations between the parties except for the
               agreements specifically referred to as exhibits to this
               Agreement.

         (ix)  INDEMNIFICATION. The Company will indemnify and hold you harmless
               to the extent permitted by the Company's certificate of
               incorporation, by-laws or resolutions of the Company's Board of
               Directors against all liability, expense or loss (including
               reasonable attorneys's fees and penalties) incurred by you by
               reason of the fact that you are or were a director or officer of
               the Company acting within the scope of your duties and
               authorities.

         (x)   COUNTERPARTS. This Agreement my be executed in any number of
               counterparts, each of which will be considered an original and
               such counterparts will together be one agreement.

                                   Page 10/11
<Page>

         If you accept and agree to the foregoing, please signify by signing the
enclosed counterpart of this letter in the space provided for that purpose at
the foot thereof and delivering the signed counterpart to me, whereupon this
letter will become a binding agreement between you and the Company as of the
Effective Date.

                                Very truly yours,

                                REEBOK INTERNATIONAL LTD.

                                        By: /s/ James R. Jones, III
                                           -----------------------------------
                                                 James R. Jones, III
                                                 Senior Vice President and
                                                 Chief Human Resources Officer

Accepted and agreed to as of this 1st day of January, 2002:

/s/ David Perdue
------------------------
David Perdue

                                   Page 11/11

<PAGE>

FINAL

                          CHANGE OF CONTROL AGREEMENT
                          ---------------------------

     This Change of Control Agreement (the "Agreement") is made as of
this 13th day of February, 2002 by and between David Perdue (the "Executive")
and Reebok International Ltd. (the "Company").

     WHEREAS, the Board of Directors of the Company (the "Board") has
determined that it is in the best interests of the Company and its shareholders
for the Company to agree to provide benefits under circumstances described
below to Executive; and

     WHEREAS, the Board recognizes that the possibility of a change of control
of the Company followed by a termination of the Executive's employment is
unsettling to the Executive and wishes to make arrangements at this time to
help assure his continuing dedication to his duties to the Company and its
shareholders, notwithstanding any attempts by outside parties to gain control
of the Company; and

     WHEREAS, the Board believes it important, should the Company receive
proposals from outside parties, to enable the Executive, without being
distracted by the uncertainties of his own employment situation, to perform his
regular duties,

     NOW, THEREFORE, in consideration of the premises and the mutual convenants
contained herein, the parties hereto agree as follows:

     1.  In the event that any individual, corporation, partnership, company,
or other entity (a "Person"), which term shall include a "group" (within the
meaning of section 13(d) of the Securities Exchange Act of 1934 (the "Act")),
begins a tender or exchange offer, circulates a proxy to the Company's
shareholders, or takes other steps to effect a "Change of Control" (as
defined in paragraph 3 below), Executive agrees that he will not voluntarily
leave the employ of the Company and will render the services contemplated in
the recitals to this Agreement until such Person has terminated the efforts to
effect a Change of Control or until a Change of Control has occurred.

     2.  If, within 24 months following a Change of Control, Executive's
employment with the Company terminates other than as a result of the death,
total disability or retirement of the Executive at or after his normal
retirement date, (i) by the Company other than for "Cause" (as defined in
paragraph 4 below), or (ii) by Executive for "Good Reason" (as defined in
paragraph 4 below), then:

                                       -1-

<PAGE>

FINAL

     a.   The Company will pay to Executive within 30 days of such termination
          of employment a lump-sum cash payment equal to 300% of the aggregate
          of (i) his then-current annual base salary (or, if his base salary
          has been reduced at any time after the Change of Control, his base
          salary in effect prior to the reduction), (ii) his target bonus for
          the then-current year or, if higher, his bonus for the most recent
          calendar year ended before the Change of Control, (iii) the amount
          of his then-current annual automobile allowance and (iv) the annual
          cost of life insurance then furnished to him by the Company.

     b.   All of Executive's outstanding stock options, restricted shares and
          other similar incentive interests and rights will become immediately
          and fully vested and exercisable.

     c.   Executive will be treated for purposes of the Company's
          Supplemental Executive Retirement Plan (the "SERP") as having
          three additional Years of Continuous Service to the extent approved
          for participation by the Board for the SERP. The Company will,
          within 30 days of his termination, pay to him, in a single lump-sum
          cash payment, the present value of his benefit under the SERP.
          Present value will be determined by applying the "applicable
          mortality table" and "applicable interest rate" then in effect
          for purposes of section 417(e)(3)(A) of the Internal Revenue Code or
          any successor provision.

     d.   The Company will pay to Executive, in a single lump-sum cash
          payment, an amount equal to the difference, if any, between (i) the
          total distribution that he receives following his termination under
          the Company's Profit-Sharing and Retirement Plan and its Excess
          Benefits Plan and (ii) the total distribution that he would have
          received under such plans had he accumulated three additional Years
          of Service for Vesting prior to termination. The payment will be
          made at the same time that he receives his distribution from those
          plans.

     e.   Executive, together with his dependents, will continue following
          such termination of employment to participate fully, with no
          contribution to the cost required of him or them, in all accident
          and health plans maintained or sponsored by the Company immediately
          prior to the Change of Control, or receive substantially the
          equivalent coverage (or the full value thereof in cash) from the
          Company, until the third anniversary of such termination.

                                       -2-

<PAGE>

FINAL

     f.   The Company will promptly reimburse Executive for any and all legal
          fees and expenses incurred by him as a result of such termination of
          employment, including without limitation all fees and expenses
          incurred in connection with efforts to enforce the provisions of
          this Agreement (provided such efforts result in Executive's recovery
          of any sum from the Company, whether through court award or
          settlement).

     3.   A Change of Control will occur for purposes of this Agreement if (i)
any Person who does not currently own directly or indirectly 10% or more of the
combined voting power of the Company's outstanding securities becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Act) of securities of
the Company representing more than 30% (or, if higher, the aggregate percentage
of the combined voting power of the Company's then-outstanding securities held
by or for the benefit of Paul Fireman and his family) of the combined voting
power of the company's then-outstanding securities, (ii) there is a change of
control of the Company of a kind which would be required to be reported under
Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Act (or a
similar item in a similar schedule or form), whether or not the Company is then
subject to such reporting requirement, (iii) the Company is a party to a
merger, consolidation, sale of assets or other reorganization, or a proxy
contest, as a consequence of which members of the Board in office immediately
prior to such transaction or event constitute less than a majority of the Board
thereafter, or (iv) individuals who, at the date hereof, constitute the Board
(the "Continuing Directors")cease for any reason to constitute a majority
thereof, provided, however, that any director who is not in office at the date
hereof but whose election by the Board or whose nomination for election by the
Company's shareholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the date hereof or
whose election or nomination for election was previously so approved shall be
deemed to be a Continuing Director for purposes of this Agreement.

     Notwithstanding the foregoing provisions of this paragraph 3, a "Change
of Control" will not be deemed to have occurred solely because of (i) the
acquisition of securities of the Company (or any reporting requirement under
the Act relating thereto) by an employment benefit plan maintained by the
Company for its employees or (ii) the occurrence of a leveraged buy-out or
recapitalization of the Company in which Executive participates as an equity
investor.

                                       -3-

<PAGE>

FINAL

     4.   Definitions

     a.   "Cause" means only: conviction of the Executive for a felony or a
          crime involving moral turpitude.

     b.   "Good Reason" means any one or more of the following:

          (i)   Failure by the Company to maintain Executive in the
                positions, with the titles, that he held immediately prior to
                the Change of Control or downgrading of his responsibilities
                or authority. If, following the Change of Control, the
                Company is part of a controlled group of entities,
                Executive's responsibilities and authority will be deemed for
                this purpose to have been reduced unless he is given and
                retains the same responsibilities and authority with the
                entity that controls the group as he held with the Company
                immediately prior to the Change of Control.

          (ii)  Reduction of Executive's base salary or failure in any year to
                pay to him a bonus at least equal to his target bonus for the
                year in which the Change of Control occurs.

          (iii) Material reduction in the health, disability or life insurance
                benefits that the Company was providing Executive immediately
                prior to the Change of Control.

          (iv)  Failure by the Company to provide Executive with the
                opportunity to participate in any executive compensation or
                benefit plan or program that is then generally available to
                other senior executives of the Company.

          (v)   Relocation of Executive's principal place of business more
                than 30 miles from the its location immediately prior to the
                Change of Control.

     5.   In the event that it is determined that any payment or benefit
provided by the Company to or for the benefit of Executive, either under this
Agreement or otherwise, will be subject to the excise tax imposed by section
4999 of the Internal Revenue Code or any successor provision ("section 4999"),
the Company will, prior to the date on which any amount of the excise tax must
be paid or withheld, make an additional lump-sum payment (the "gross-up
payment") to Executive. The gross-up payment will be sufficient, after giving
effect to all federal, state and other taxes and charges (including interest
and penalties, if any) with respect to the gross-up payment, to make Executive
whole for all taxes (including withholding taxes) and any associated interest
and penalties, imposed under or as a result of section 4999.

                                       -4-

<PAGE>

FINAL

     Determinations under this Section 5 will be made by Ernst & Young unless
Executive has reasonable objections to the use of that firm, in which case the
determinations will be made by a comparable firm chosen by Executive after
consultation with the Company (the firm making the determinations to be
referred to as the "Firm"). The determinations of the Firm will be binding
upon the Company and Executive except as the determinations are established in
resolution (including by settlement) of a controversy with the Internal Revenue
Service to have been incorrect. All fees and expenses of the Firm will be paid
by the Company.

     If the Internal Revenue Service asserts a claim that, if successful, would
require the Company to make a gross-up payment or an additional gross-up
payment, the Company and Executive will cooperate fully in resolving the
controversy with the Internal Revenue Service. The Company will make or advance
such gross-up payments as are necessary to prevent Executive from having to
bear the cost of payments made to the Internal Revenue Service in the course
of, or as a result of, the controversy. The Firm will determine the amount of
such gross-up payments or advances and will determine after final resolution of
the controversy whether any advances must be returned by Executive to the
Company. The Company will bear all expenses of the controversy and will gross
Executive up for any additional taxes that may be imposed upon Executive as a
result of its payment of such expenses.

     6.   If the Company is at any time before or after a Change of Control
merged or consolidated into or with any other corporation or other entity
(whether or not the Company is the surviving entity), or if substantially all
of the assets thereof are transferred to another corporation or other entity,
the provisions of this Agreement will be binding upon and inure to the benefit
of the corporation or other entity resulting from such merger or consolidation
or the acquirer of such assets, and this paragraph 6 will apply in the event of
any subsequent merger or consolidation or transfer of assets.

     In the event of any merger, consolidation, or sale of assets described
above, nothing contained in this Agreement will detract from or otherwise limit
Executive's right to participate or privilege of participation in any stock
option or purchase plan or any bonus, profit sharing, pension, group insurance,
hospitalization, or other incentive or benefit plan or arrangement which may be
or become applicable to executives of the corporation resulting from such
merger or consolidation or the corporation acquiring such assets of the Company.

     In the event of any merger, consolidation or sale of assets described
above, references to the Company in this Agreement shall unless the context
suggests otherwise be deemed to include the entity resulting from such merger
or consolidation or the acquirer of such assets of the Company.

     7.   All payments required to be made by the Company hereunder to Executive
or his dependents, beneficiaries, or estate will be subject to the withholding
of such amounts relating to tax and/or other payroll deductions as may be
required by law.

                                       -5-

<PAGE>

FINAL
     8.   There shall be no requirement on the part of the Executive to seek
other employment or otherwise mitigate damages in order to be entitled to the
full amount of any payments and benefits to which Executive is entitled under
this Agreement, and the amount of such payments and benefits shall not be
reduced by any compensation or benefits received by Executive from other
employment.

     9.   Nothing contained in this Agreement shall be construed as a contract
of employment between the Company and the Executive, or as a right of the
Executive to continue in the employ of the Company, or as a limitation of the
right of the Company to discharge the Executive with or without Cause; the
Executive may, subject to the terms and conditions of this Agreement, have the
right to receive upon termination of his employment the payments and benefits
provided in this Agreement and shall not be deemed to have waived any rights he
may have either at law or in equity in respect of such discharge.

     10.   No amendment, change, or modification of this Agreement may be made
except in writing, signed by both parties. Payments made by the Company
pursuant to this Agreement shall be in lieu of payments and other benefits, if
any, to which Executive may be entitled under any other severance agreement or
severance plan of the Company. The provisions of this Agreement shall be
binding upon and shall inure to the benefit of Executive, his executors,
administrators, legal representatives and assigns, and the Company and its
successors. The validity, interpretation, and effect of this Agreement shall be
governed by the laws of The Commonwealth of Massachusetts.

     The Company shall have no right of set-off or counterclaims, in respect of
any claim, debt, or obligation, against any payments to Executive, his
dependents, beneficiaries or estate provided for in this Agreement. The
invalidity or unenforceability of any provisions of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

     No right or interest to or in any payments or benefits hereunder shall be
assignable by the Executive; provided, however, that this provision shall not
preclude him from designating one or more beneficiaries to receive any amount
that may be payable after his death and shall not preclude the legal
representative of his estate from assigning any right hereunder to the person
or persons entitled thereto under his will or, in the case of intestacy, to the
person or persons entitled thereto under the laws of intestacy applicable to
his estate. The term "beneficiaries" as used in this Agreement shall mean a
beneficiary or beneficiaries so designated to receive any such amount, or if no
beneficiary has been so designated, the legal representative of the Executive's
estate.

                                      -6-

<PAGE>

FINAL

     No right, benefit, or interest hereunder, shall be subject to
anticipation, alienation, sale, assignment, encumbrance, charge, pledge,
hypothecation, or set-off in respect of any claim, debt, or obligation, or to
execution, attachment, levy, or similar process, or assignment by operation of
law. Any attempt, voluntary or involuntary, to effect any action specified in
the immediately preceding sentence shall, to the full extent permitted by law,
be null, void, and of no effect.

     IN WITNESS WHEREOF, Reebok International Ltd. and Executive have each
caused this Agreement to be duly executed and delivered as of the date set
forth above.

                                         REEBOK INTERNATIONAL LTD.

                                         By /s/ James R. Jones III
                                            ______________________
Agreed:

/s/ David Perdue
_______________________
David Perdue

                                      -7-

<PAGE>

                               EMPLOYEE AGREEMENT

In consideration of my present and continuing employment by Reebok
International Ltd. ("Reebok", which term shall include all entities directly
or indirectly owned by, owning or under common ownership with it), I agree as
follow:

1.        Treatment of Confidential Information. I acknowledge that during the
course of my employment I may develop Confidential Information for Reebok and I
may learn of Confidential Information developed or owned by Reebok or entrusted
to Reebok by others. I will comply with Reebok's policies and procedures for
protecting Confidential Information, including, without limitation, Reebok's
Proprietary Information Protection Policy, and I will never, directly or
indirectly, use any Confidential Information, or disclose, copy or allow access
to any Confidential Information to any other person, corporation or entity,
except as required by the normal and proper course of my duties for Reebok. I
understand that my obligations regarding Reebok's Confidential Information
shall survive as long as the confidential nature of the information is
maintained. I also understand that these restrictions will continue to apply
after my employment terminates, regardless of the reason for termination.

          1.1   Definition of Confidential Information. Confidential Information
means any and all information not generally known by others outside of Reebok.
Confidential Information includes, but is not limited to, all information
proprietary to Reebok, whether or not reduced to writing or other tangible
medium of expression, and whether or not patented, patentable, capable of trade
secret protection, or protected as an unpublished or published work under the
United States Copyright Act of 1976 as amended. Confidential Information also
includes information relating to the Intellectual Property and Business
Practices of Reebok. Confidential Information also includes comparable
information that Reebok may receive or has received from others who do business
with Reebok. Confidential Information does not include information which (a)
was already known by me prior to my employment with Reebok as established by my
personal records, (b) becomes generally available to the public other than
through a breach of this Employment Agreement, or (c) is furnished to me by a
third party who is lawfully in possession of such information and who lawfully
conveys that information.

          1.2   Definition of Intellectual Property. Intellectual Property
includes information relating to Reebok's research and development, inventions,
discoveries, developments, improvements, methods and processes, know-how,
drawings, blueprints, specifications, product briefs, algorithms, computer
programs and software, compositions, works, concepts, designs, ideas,
prototypes, models, samples, screens, molds, lasts, patents, copyrights,
trademarks, trade names, trade secrets, formulae, writings, notes and patent,
trademark, and copyright applications.

          1.3   Definition of Business Practices. Business Practices includes
information relating to Reebok's intellectual property, business plans,
financial information, products, services, manufacturing processes and methods,
costs, sources of supply, advertising and marketing plans, customer lists,
sales, profits, pricing methods, personnel, and business relationships.

2.        Disclosure of Intellectual Property and Assignment of Rights. I will
promptly and fully disclose to Reebok all Intellectual Property conceived,
made, created, developed or reduced to practice by me (whether alone or with
others, whether or not during normal business hours and whether or not on
Reebok's premises) during my employment or within six months thereafter that
relates in any way to the business or prospective activities of Reebok or that
results from, or is suggested by, work I do for Reebok. I hereby assign and
agree to assign to Reebok, or its designees, my full right, title, and interest
in and to all such Intellectual Property. I agree that, during and subsequent
to my employment by Reebok, I will, at Reebok's request and expense, execute
any and all applications for domestic and foreign patents, copyrights or other
rights and otherwise provide assistance (including, but not limited to, the
execution and delivery of instruments of further assurance or confirmation) to
assign such Intellectual Property to Reebok and to permit Reebok to enforce any
patents, copyrights or other rights in and to such Intellectual Property. All
copyrightable works that I create shall be considered "works made for hire".

3.        List of Previous Intellectual Property. I attach hereto_____pages,
which comprise a list of all intellectual property reduced to practice by me
before the commencement of my employment by Reebok, which intellectual property
shall be excluded from this Agreement, and I agree that said list is complete.
IF LIST OF INTELLECTUAL PROPERTY IS ATTACHED, EMPLOYEE INITIAL HERE. ________

4.        Protection of Documents and Return of Property. I will protect all
documents, records, tapes and other media in which Confidential Information is
contained ("Confidential Documents") and abide by Reebok's Proprietary
Information Protection Policy. I acknowledge that such Confidential Documents
are and shall remain the sole and exclusive property of Reebok. I will not copy
any Confidential Documents or remove any Confidential Documents, or copies
thereof, from Reebok premises, except as required by the normal and proper
course of my duties for Reebok. I agree to return to Reebok promptly upon the
termination of my employment, or at any other time when requested by Reebok,
any and all property of Reebok, including, but not limited to, all Confidential
Documents and copies thereof in my possession or control.

                                        1

<PAGE>

5.        Non-Competition. While I am employed by Reebok, I will not compete
with it.  Competition prohibited includes, but is not limited to, any direct or
indirect, sole or joint, ownership, management, operation, control or
investment in the securities of (except ownership of 1% or less of the equity
securities of any publicly traded company), loans or advances to, employment or
consulting with, or any other connection or affiliation with, (1) any
enterprise that is engaged in, or is about to become engaged in, research,
development, production, marketing or selling of (a) any product, process or
service in which Reebok has engaged in research, development, production,
marketing or selling, or has had under consideration during the period of my
employment or (b) any product, process or service that may be used in
substitution thereof; or (2) any enterprise that is a customer, consultant or
supplier of Reebok. I will promptly provide in writing at Reebok's request any
and all information necessary or desirable to confirm my compliance with this
provision.

6.        Non-Recruitment. For a period of one year after my employment with
Reebok terminates, I will not and will not assist anyone else to, hire any
employee of Reebok or seek to persuade any employee of Reebok to discontinue
employment or to become employed in any business which is directly or
indirectly in competition with Reebok's business, nor seek to persuade any
independent contractor to discontinue his/her relationship with Reebok.

7.        Employment Status. I understand and acknowledge that I am being
employed on an "at will" basis and that either Reebok or I may terminate our
employment relationship at any time, for any reason.

8.        Prior Obligations. I represent and warrant to Reebok that my
employment by Reebok and execution and performance of this Agreement do not
conflict with any prior obligations to third parties and I agree that I will
not disclose to or use on behalf of Reebok any confidential information
belonging to third parties, including my prior employers, unless written
authorization from such third parties is first obtained.

9.        Remedies. I acknowledge that, were I to breach the provisions of this
Agreement, the harm to Reebok would be irreparable, I therefore agree that in
the event of such a breach or threat of such a breach Reebok shall, in addition
to other remedies available to it, have the right to obtain preliminary and
permanent injunctive relief against any such breach without having to post a
bond.

10.       General. This Agreement shall continue in effect after the
termination of my employment, regardless of the reason for termination, shall
be binding upon my heirs, executors, administrators, representatives and
assigns and shall be governed by the laws of The Commonwealth of Massachusetts.
This Agreement does not create an obligation on the part of Reebok or any other
person to continue my employment. This Agreement may not be modified or amended
except by a written amendment signed by me and an authorized officer of Reebok.
A breach of any provision of this Agreement may only be waived by an authorized
officer of Reebok and the waiver of such breach shall not operate or be
construed as a waiver of any subsequent breach. If any provision of this
Agreement should, for any reason, be held invalid or unenforceable in any
respect, the remainder of this Agreement shall be enforced to the full extent
permitted by law.

11.       Reaffirmation. I understand that as a condition of my continuing
employment I may be requested to reaffirm this Agreement periodically and I
agree to do so on a timely matter by signing a copy of this Agreement when so
requested.

Intending to be legally bound hereby, the Employee has signed this Agreement as
an instrument under seal as of the date set forth below.

                                               REEBOK INTERNATIONAL LTD.

/s/ David A. Perdue                            /s/ William F. Holmes
_________________________                      _______________________
Signature of Employee                          Signature

David A. Perdue                                Director of H.R.
_________________________                      _______________________
Employee's Printed Name                        Title

Date: 6/29/98
      ___________________

                                        2

<PAGE>

                            NON-COMPETITION AGREEMENT

     This Agreement ("Agreement") is entered into on this 26 day of June,
                                                            __        ____
1998, between Reebok International Ltd. ("Reebok") and David Perdue ("you").
                                                         ____________

     WHEREAS, you have been made aware of or may hereafter be made aware of
highly confidential and sensitive information owned or controlled by Reebok,
and WHEREAS, Reebok desires to protect its highly confidential and sensitive
information from use by or disclosure to parties other than Reebok;
     In consideration of the mutual promises contained herein, the parties
agree as follows:

I.   Non-Competition
     ---------------

          A.   During Term of Employment.

     You agree that while employed by Reebok, you will not, directly or
indirectly, own, manage, operate, control, invest in, make loans or advances
to, be employed by, act as an officer, director, agent or consultant for, or be
in any other way connected with, any enterprise anywhere in the world which is
engaged in the athletic footwear business, athletic apparel business, or any
other business which competes with Reebok or any of its subsidiaries or
affiliates (the "Non-Competition Requirement").

          B.   After Termination of Employment.

     (1)   In the event that your employment with Reebok is terminated for any
reason, Reebok will have the right, in its sole discretion, to extend the
duration of the Non-Competition Requirement described in Section I.A. for a
period of up to one (1) year after termination by providing written notice to
you within fourteen (14) days after your effective date of termination. The
written notice will specify the length of time that Reebok desires to extend
the Non-Competition Requirement. Except as otherwise provided in this
Agreement, for the Non-Competition period specified in Reebok's written notice,
Reebok will pay to you an amount equal to one-half (1/2) of your base salary as
of the date of your termination in accordance with Reebok's customary pay
practices in effect at the time each payment is made (which amount shall be
reduced by the amount of any severance you receive from Reebok). Reebok has the
option, for whatever reason, to elect to waive all or any portion of the
Non-Competition period by giving you written notice of such election at least
thirty (30) days in advance. In such event, Reebok shall not be obligated to
pay you the benefits specified above for any period for which the
Non-Competition Requirement has been waived.

     (2)   You agree that for a period of one (1) year following the date of
termination of your employment at Reebok, you will inform Reebok, prior to the
acceptance of any job or any work as an independent contractor, of the identity
of any new employer or other entity to which you are providing consulting or
other services, along with your starting date, title, job description and any
other information which Reebok may reasonably request to confirm your
compliance with the terms of this Agreement.

<PAGE>

II.  Non-Recruitment
     ---------------

     You agree that while employed by Reebok, and for a period of one (1) year
following the termination of your employment with Reebok (regardless of who
initiated the termination and the circumstances of the termination), you will
not solicit, hire, attempt to hire, or assist in the hiring of any employee of
Reebok or any of its subsidiaries or affiliates, or otherwise persuade or
attempt to persuade any such employee to discontinue his/her employment
relationship with Reebok or any of its subsidiaries or affiliates. This
requirement is independent of the Non-Competition Requirement set forth in
Section I of this Agreement and is not dependent on pay or benefit continuation
of any kind.

III. General
     -------

     A.   In the event that you violate Section I or Section II of this
Agreement, the time period during which that Section remains in effect will be
extended during the time that you are in breach.

     B.   It is acknowledged that the provisions of this Agreement are
reasonable and a condition of your employment by Reebok. However, should any
provision of this Agreement be found unreasonable or invalid by any court of
competent jurisdiction, the parties agree to accept, in its stead, any lesser
restrictions which the court deems reasonable. In the event of your breach of
this Agreement, it is agreed that Reebok may cease making payments to you under
this Agreement and that you will be obligated to refund to Reebok all payments
made to you or on your behalf under this Agreement. In addition, you agree that
the remedy at law for any breach of the provisions of this Agreement will be
inadequate and that, in the event of breach, Reebok will be entitled to
injunctive relief in addition to any other remedy it may have.

     C.   This Agreement supplements, and does not supersede, your Reebok
Employee Agreement. This Agreement will be construed under and governed by the
laws of the Commonwealth of Massachusetts. The Massachusetts courts (state and
federal) will have exclusive jurisdiction of any controversy between you and
Reebok, and no court action may be brought by either party against the other
outside of Massachusetts. This Agreement does not create an obligation on the
part of Reebok or any other person to continue your employment. This Agreement
may not be modified or amended except by a written amendment signed by you and
an authorized officer of Reebok. A breach of any provision of this Agreement
may only be waived by an authorized officer of Reebok and such a waiver will
not be construed as a waiver of any later breach.

Accepted by:                                   Agreed to:
Reebok International Ltd.

By: /s/ William F. Holmes                  /s/ David A. Perdue
________________________                   ________________________________
Signature                                  Signature of Employee

Director of H.R.                           David A. Perdue
____________________________               ________________________________
     Title                                 Employee's Typed or Printed Name

      6/29/98
__________________                         Dated: 6/26/98
     Date                                  _________________________

                            Reebok International Ltd.
                                CODE OF CONDUCT
                                ---------------

INTRODUCTION
------------

At Reebok International Ltd. (often referred to in the Code of Conduct as the
"Company" or "Reebok"), we conduct our business with high standards of
professional conduct and integrity and in compliance with applicable laws. This
Code of Conduct (the "Code") sets forth standards of business conduct and
provides guidance in certain areas where ethical issues may arise. The Code
provides a general framework for measuring our business conduct and does not
address every possible situation.

The Code applies to all employees of Reebok International Ltd., its divisions,
subsidiaries and affiliates, worldwide. Employees must read and become familiar
with the Code and are expected to comply fully with the Code on an on-going
basis. If you have a question whether particular conduct complies with the
Code, you should discuss the situation with an attorney in the Company's Legal
Department. If you become aware of any breach of the Code, you should promptly
report it to your supervisor or an attorney in the Company's Legal Department.

CONFLICTS OF INTEREST
---------------------

Employees should avoid situations which may place them in a conflict of
interest with the Company or which may create the appearance of a conflict. A
conflict of interest arises when an employee has a direct or indirect financial
or other interest which might influence the employee's judgment on behalf of
the Company. A conflict of interest exists if there is the potential for
influence, whether or not the employee's judgment is actually affected. In
determining whether a conflict exists, an employee should treat the interests
of members of his or her immediate family (which shall include as an employee's
spouse, children, parents, any person regularly residing in the employee's
home, or other relatives, depending on the circumstances, of the employee) in
the same manner as the employee treats his or her own interests.

If you think you may be involved in a situation that creates a conflict of
interest or the appearance of a conflict, you should advise the Company's Legal
Department. While the Company usually will require that the conflict be
eliminated, there may be some limited situations where the conflict may be
acceptable because procedures can be put in place to protect the Company. The
Company will have full discretion to determine how a conflict will be handled
and its decision in this regard will be final. Although it is impossible to
list all of the situations that might be considered conflicts of interest, some
of the more common examples are described below:

Investments in or Affiliations with Suppliers, Customers or Competitors.
Employees most promptly disclose to the Legal Department any financial or other
interests in, or participation as a director, officer, employee, consultant,
agent, creditor, lender, or in any similar capacity in: (1) any business which
supplies goods or services to Reebok or its subsidiaries; (2) any business to
which Reebok or its subsidiaries sell goods or services; or (3) any business
with which Reebok or its subsidiaries compete. As discussed above, Reebok will
then determine if an unacceptable conflict of interest exists.

Generally, ownership interests of less than 1% (as long as such interests have
a value of less than $10,000) will not be considered to create a conflict.
However, employees should not hold any ownership interest in a competitor of
Reebok or its subsidiaries. Some of our competitors for this purpose include
Nike, Adidas, Timberland, L.A. Gcar, K. Swiss, Puma, Stride Rite, New Balance
and Converse. Smaller start-up companies can also be competitors. From time to
time, the Company may distribute an updated list of some of our competitors for
whom any stock ownership would be prohibited.

Gifts and Entertainment. Employees should not accept gifts, discounts,
payments, or other personal benefits or favors from individuals or firms which
do business or propose to do business with Reebok. In certain cases, because of
protocol or courtesy, it may be appropriate to accept an unsolicited gift of
nominal value (but in no event greater than $200 in any one year period);
however, under no circumstances shall gifts of money (or equivalents such as
stocks or bonds or other financial assets) be accepted. It may also be
appropriate to accept unsolicited reasonable forms of entertainment (such as
lunches, dinners, concerts or tickets to sporting events) in connection with
business dealings. If an employee accepts a gift or entertainment in excess of
$50 (but less than the $200 cap), it must be reported in all cases in writing
to his or her manager. Managers will be responsible for monitoring the
acceptances and determining the appropriateness of the gift.

<PAGE>

As a guideline for helping you to determine whether a particular gift,
entertainment or other benefit is appropriate, you should consider whether it
would be considered extravagant or excessive or whether a disinterested third
party might infer that it could affect your judgment. If so, the gift,
entertainment or other benefit should not be accepted. If you receive a gift,
entertainment or other benefit which does not comply with this policy, or are
unsure if it complies, it should be reported in writing to the Company's Legal
Department who may choose to accept it on behalf of the Company, determine that
it is appropriate for you to keep, or require that it be returned. In addition,
employees shall not receive any form of compensation from a third party for
services that he or she normally would perform on behalf of the Company within
the scope of his or her employment.

Use of Company Position or Assets. Employees may not use their position in
Reebok or use Company assets or Company property for personal gain (financial
or otherwise). Specifically, no Reebok employee may use Reebok property for his
or her own personal benefit, including trading or bartering property, or selling
Reebok product for personal gain. Company property includes product made by the
Company, but not purchased by the employee, other items or product from
suppliers or endorsers and computer equipment and software.

IMPROPER PAYMENTS
-----------------

Political Contributions. Political contributions of Company funds made directly
or indirectly to candidates for political office or political organizations
are in most instances considered illegal in the United States and in many
foreign countries. Where lawful, corporate political contributions may be made
only when specifically approved in advance by the Company's General Counsel and
the Chief Executive Officer. Employees are free to make personal political
contributions within applicable limits, but will not be compensated or
reimbursed by the Company for any such contributions.

Other Improper Payments, Kickbacks. No bribes, illicit rebates, kickbacks or
other illegal payments shall be made to government officials, customers,
suppliers, prospective suppliers or customers, or anyone else, either directly
or indirectly, whether by money or through use of Company assets. Gifts, favors
or entertainment may be extended to such individuals or companies only if all
of the following conditions are met:

     .   They do not violate applicable laws.
     .   They are not extended to obtain a specific action by a government
         official, supplier or customer.
     .   They are of such limited value and are in such form that they can not
         be construed as a bribe, payoff or deal.
     .   Public disclosure of the facts surrounding them would not embarrass the
         Company or the recipients in any way.

Allowable Payments. In some countries, it may be necessary to pay small amounts
of money or provide small gifts to facilitate or expedite the performance of
tasks such as customs clearance, visa applications and exchange transactions.
While such "expediting or facilitating" payments should be avoided, if
possible, they are allowable if they are made only to enable timely and correct
performance of these routine tasks, and not to deter or circumvent these tasks
in any way. Such payments may not be made to induce foreign officials to fail
to perform their duties or to perform them in an incorrect manner. In the event
you have any question concerning whether a possible payment is appropriate you
should consult with the Company's Legal Department.

Bookkeeping and Accurate Recordkeeping. Reebok is required to establish and
maintain appropriate accounting procedures and accurate books and records that
reflect all corporate assets, liabilities and transactions, and which ensure
that the Company's funds are not being put to improper use. All transactions of
any nature must be recorded accurately in the Company's books and records and
all payments should be made with the understanding that such payment is for the
specific purpose described by the documents supporting such payment. All
payments must be supported by appropriately approved invoices or receipts,
expense reports or other customary documents, in accordance with established
policies and procedures. Employees should accurately disclose all transactions
to the Company's internal and external auditors.

INSIDER TRADING AND CONFIDENTIAL INFORMATION
--------------------------------------------

Insider Trading. The United States and many foreign countries have laws that
deal with purchasing and selling Company stock. These laws are designed to
protect the investing public by prohibiting the purchase or sale of stock based
on "inside" information. Any employee who knows information about Reebok that
a reasonable investor would consider important in making a decision to buy,
hold or sell stock (in short, any information which could reasonably affect the
price of the stock) and which has not been disclosed to the general public,
possesses "inside" information.

Common examples of possible "inside" information are: projections (or changes
in projections) of future earnings or losses; information on results of
operations of the Company or significant operating units before results are
announced; news of a proposed merger, sequisition or tender offer; news of a
significant sale of assets or the sale of a subsidiary; changes in dividend
policies; the declaration of a stock split or the offering of additional
securities; changes in senior management; significant new products; impending
bankruptcy problems; major litigation developments; and the gain or loss of a
substantial customer or supplier.

Information generally will be regarded as having become public when it has
effectively been disclosed to the public--generally through its publication in
the news media or by filings with the Securities and Exchange Commission--and
the public has had sufficient time to

                                        2

<PAGE>

consider and act upon it. Generally, you can feel safe in assuming that
information has become public as of the third business day after it has been
released.

The securities laws prohibit any Reebok employee from trading (either
personally or on behalf of others) in Reebok stock on the basis of information
or having others trade for him or her on the basis of that information. It is
also illegal to communicate (to "tip") inside information to others so that
they may trade in Reebok stock based on that information. These illegal
activities are commonly referred to as "insider trading." Transactions that
may be necessary or justifiable for independent reasons (such as your need to
raise money for an emergency) are not an exception to this rule. Certain
employees are also subject to the Company's trading windows policy that limits
the time period in which they may trade Reebok stock.

Although it is most likely that any inside information you might learn will be
about Reebok, the prohibitions described above also apply to trading in the
securities of any company about which you have such information. Failure to
abide by these rules can lead to serious consequences (including criminal
penalties) for both Reebok and the employee involved. If you have any questions
as to whether you possess "inside" information or whether you should trade in
securities, you should consult the Company's Legal Department.

In addition to prohibiting employees from trading on "inside" information, as
a matter of policy the Company requires its employees to keep confidential all
non-public material information regarding Reebok's business or operations. Such
matters should not be discussed with family members or friends, and employees
should take all steps necessary to ensure that the confidentiality of such
information is maintained.

Disclosing Confidential Information. Employees may not directly or indirectly
divulge Company confidential information to any unauthorized recipient, use or
divulge such information for the purpose of securing personal profit, or retain
the confidential information following termination of employment. The Employee
Agreement signed by each employee contains more specific provisions concerning
confidential information.

ANTITRUST AND COMPETITION LAWS
------------------------------

Antitrust and competition laws are designed to promote fair and open
competition by prohibiting unfair, restrictive or collusive business practices.
It is the Company's policy to comply fully with all such laws.

U.S. antitrust laws prohibit among other things agreements or arrangements
between competitors to fix or influence price, or agreements requiring
purchasers or distributors to adhere to a specific resale price and agreements
to allocate customers or markets. Unlawful agreements need not take the form of
a written agreement, but can be based on oral commitments or informal
understandings. Thus, employees should use caution when communicating with
competitors or discussing pricing issues with our customers. In addition to
prohibiting price fixing or resale price maintenance agreements and allocation
of customers or markets, the U.S. antitrust laws forbid unfair or deceptive
trade practices and other activities which may restrain or reduce competition.

You should be aware that U.S. antitrust laws may apply to activities that occur
outside the U.S. if such activities have a significant and foreseable effect on
commerce within the U.S. Moreover, the European Community and other foreign
countries have competition laws similar to the U.S. antitrust laws which must
also be followed when dealing in international markets.

Because of the complexity of these laws and the serious consequences to both
the Company and the employees involved if such laws are violated the Company's
Legal Department should be consulted if there is any question as to whether a
particular practice or transaction complies with such laws.

COMPLIANCE WITH CUSTOMS AND IMPORT/EXPORT LAWS
----------------------------------------------

It is crucial to the Company's business that its products are able to be sold
in all international markets in which we operate. The Company thus requires
employees to follow all applicable import/export laws and regulations so that
its trading privileges are not jeopardized.

Employees involved in import/export transactions should ensure that all
required documents are accurately completed and maintained, and that all
import/export transactions are conducted in compliance with applicable laws and
regulations. Because of the complexity of such laws and regulations, the
Company's Legal Department should be consulted if any questions arise.

                                        3

<PAGE>

MISCELLANEOUS
-------------

Reebok also publishes several other policies and guidelines relating to proper
business conduct that must be followed, including without limitation, policies
on the usage of computer software, the internet and E-mail; Preventing
Harassment; use of sample and promat accounts; and travel and expense
reimbursement.

REPORTING VIOLATIONS
--------------------

If you believe you are in violation of any of the provisions of this Code of
Conduct, please contact an attorney in the Company's Legal Department to discuss
the matter. In addition, in order to help the Company maintain compliance with
the Code, you may disclose any other violation of the Code, of which you are
aware, so that appropriate action may be taken by the Company.

**

Employees should understand that this document is not intended to create a
contract of employment between you and Reebok. Neither Reebok nor you are
obligated to continue the employment relationship if either does not with to do
so. Furthermore, after receiving a copy of Reebok's Code of Conduct, you should
read the document, understand it and comply with the Code.

                                        4

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