Document:

<PAGE>   1
                                                                    EXHIBIT 10.1
--------------------------------------------------------------------------------
                                    FORM* OF
                               SECOND AMENDMENT TO
                              AMENDED AND RESTATED
                    REVOLVING CREDIT AND TERM LOAN AGREEMENT
--------------------------------------------------------------------------------

         Second Amendment dated as of June 30, 2000 to the Amended and Restated
Revolving Credit and Term Loan Agreement (the "Second Amendment"), by and among
THE HOLMES GROUP, INC. (FORMERLY KNOWN AS HOLMES PRODUCTS CORP.), a
Massachusetts corporation (the "Company"), THE RIVAL COMPANY, a Delaware
corporation ("Rival"), HOLMES PRODUCTS (FAR EAST) LIMITED, an entity organized
under the laws of the Bahamas ("Far East"), ESTEEM INDUSTRIES LIMITED, an entity
organized under the laws of Hong Kong ("Esteem"), RAIDER MOTOR CORPORATION, an
entity organized under the laws of the Bahamas ("Raider"), HOLMES PRODUCTS
(EUROPE) LIMITED, an entity organized under the laws of the United Kingdom
("Holmes UK"), BIONAIRE INTERNATIONAL B.V., a private company with limited
liability incorporated under the laws of the Netherlands ("Bionaire BV"), PATTON
ELECTRIC (HONG KONG) LTD. a corporation organized under the laws of Hong Kong
("Patton"), THE HOLMES GROUP CANADA LTD. (THE SURVIVOR OF THE AMALGAMATION OF
THE RIVAL COMPANY OF CANADA AND HOLMES AIR (CANADA) CORP.), a corporation
organized under the laws of Canada ("Holmes Canada" and, collectively with the
Company, Rival, Far East, Esteem, Raider, Holmes UK, Bionaire BV and Patton, the
"Borrowers", and each individually a "Borrower"), and FLEET NATIONAL BANK
(FORMERLY KNOWN AS BANKBOSTON, N.A.) and the other lending institutions listed
on SCHEDULE 1 to the Credit Agreement (as hereinafter defined) (the "Banks"),
amending certain provisions of the Amended and Restated Revolving Credit and
Term Loan Agreement dated as of February 5, 1999 (as amended by the First
Amendment to Amended and Restated Revolving Credit and Term Loan Agreement dated
as of August, 1999 and as further amended and in effect from time to time, the
"Credit Agreement") by and among the Borrowers, the Banks, FLEET NATIONAL BANK
(FORMERLY KNOWN AS BANKBOSTON, N.A.) in its capacity as administrative agent
(the "Agent"), LEHMAN COMMERCIAL PAPER INC. in its capacity as documentation
agent, BANKBOSTON, N.A. acting through its Hong Kong and London branches as
fronting bank, FLEETBOSTON ROBERTSON STEPHENS INC. (FORMERLY KNOWN AS BANCBOSTON
ROBERTSTON STEPHENS INC.) as syndication agent and arranger and LEHMAN BROTHERS
INC. as co-arranger. Terms not otherwise defined herein which are defined in the
Credit Agreement shall have the same respective meanings herein as therein.

         WHEREAS, the Borrowers and the Banks have agreed to modify certain
terms and conditions of the Credit Agreement as specifically set forth in this
Second Amendment and Waiver;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

[* Note that within this filing, the "Section" sign is represented by the
letters "SS."]
<PAGE>   2

                                      -2-

         SS.1. AMENDMENT TO SS.1.1 OF THE CREDIT AGREEMENT. Section 1.1 of the
Credit Agreement is hereby amended as follows:

         (a) The definition of "Applicable Margin" is hereby amended on August
15, 2000 by replacing the table contained in the definition of Applicable Margin
on August 15, 2000 with the following table:

================================================================================
                                       BASE RATE   EUROCURRENCY  COMMITMENT FEE
  LEVEL         LEVERAGE RATIO           LOANS      RATE LOANS        RATE
================================================================================

    I      Greater than or equal to
                   4.75:1.00             1.50%         3.25%         0.500%
================================================================================

   II       Less than 4.75:1.00 but
                    greater
               than or equal to
                   4.25:1.00             1.00%         2.75%         0.500%
================================================================================

   III      Less than 4.25:1.00 but
                    greater
               than or equal to
                   3.75:1.00             0.75%         2.50%         0.500%
================================================================================

   IV       Less than 3.75:1.00 but
                    greater
               than or equal to
                   3.25:1.00             0.50%         2.25%         0.375%
================================================================================

    V         Less than 3.25:1.00        0.50%         2.00%         0.375%
================================================================================

         (b) The definition of "EBITDA" is hereby amended by deleting such
definition in its entirety and restating it as follows:

                  EBITDA. With respect to the Company and its Subsidiaries and
         any fiscal period, an amount equal to Consolidated Net Income for such
         period, PLUS, to the extent deducted in the calculation of Consolidated
         Net Income and without duplication, (a) depreciation and amortization
         for such period, PLUS, (b) the charges (both cash and non-cash) taken
         in the 1999 fiscal year in connection with the closing of Rival's
         Fayetteville and New Haven plants, up to an aggregate amount not to
         exceed $2,200,000 for such fiscal year, PLUS (c) for purposes of
         calculating compliance with the financial covenants set forth in ss.10
         hereof only, any deductions to Consolidated Net Income in the December
         31, 1999 and June 30, 2000 fiscal quarters arising from the costs and
         lost profits associated with the 314/316 heater issue previously
         disclosed to the Agent and the Banks, up to an aggregate amount not to
         exceed $5,300,000, PLUS (d) other non-cash charges for such period,
         PLUS (e) income tax expense for such period, PLUS (f) Consolidated
         Total Interest Expense paid or accrued during such period, PLUS (g)
         Integration Expenses paid or accrued during such period, PROVIDED,
         HOWEVER, such Integration Expenses shall be included to the extent such
         Integration Expenses are paid or accrued prior to the second
         anniversary of the

<PAGE>   3

                                      -3-

         Closing Date, all as determined on a Pro Forma Basis and in accordance
         with generally accepted accounting principles.

         SS.2. AMENDMENT TO SS.3 OF THE CREDIT AGREEMENT. Section 3.5 of the
Credit Agreement is hereby amended as follows:

         (a) Section 3.5.1(c) of the Credit Agreement is hereby amended by
deleting the words "the Base Rate PLUS one and three quarters percent (1.75%)"
which appear in ss.3.5.1(c) and substituting in place thereof the words "(i)
from the Closing Date through August 14, 2000, the Base Rate PLUS one and three
quarters percent (1.75%) and (ii) thereafter, the Base Rate PLUS two percent
(2.00%)"; and

         (b) Section 3.5.1(d) of the Credit Agreement is hereby amended by
deleting the words "the Eurocurrency Rate PLUS three and one half percent (3
1/2%)" which appears in ss.3.5.1(d) and substituting in place thereof the words
"(i) from the Closing Date through August 14, 2000, the Eurocurrency Rate PLUS
three and one half percent (3 1/2%) and (ii) thereafter, the Eurocurrency Rate
PLUS three and three quarters percent (3 3/4%)".

         SS.3. AMENDMENT TO SS.7 OF THE CREDIT AGREEMENT. Section 7.27 of the
Credit Agreement is hereby amended by deleting ss.7.27 in its entirety and
restating it as follows:

                  7.27. CHIEF EXECUTIVE OFFICE. The Company's chief executive
         office is at 233 Fortune Boulevard, Milford, Massachusetts 01757, at
         which location its books and records are kept. Each of the Guarantors'
         chief executive office is as set forth in the Security Agreement to
         which it is a party. Notwithstanding the foregoing, the Company intends
         to move its chief executive offices to 1 Holmes Way, Milford,
         Massachusetts 01757 following the completion of the construction of a
         newly leased facility and upon such move (and notice to the Agent), the
         Company's and its Domestic Subsidiaries' chief executive office will be
         1 Holmes Way, Milford, Massachusetts 01757.

         SS.4. AMENDMENT TO SS.8 OF THE CREDIT AGREEMENT. Section 8 of the
Credit Agreement is hereby amended as follows:

         (a) Section 8.4(h) of the Credit Agreement is hereby amended by
deletingss.8.4(h) in its entirety and restating it as follows:

                  (h) not later than the beginning of each fiscal year of the
         Borrowers and their Subsidiaries, the annual budget of the Borrowers
         and their Subsidiaries for such fiscal year (prepared on a monthly
         basis); PROVIDED, HOWEVER, notwithstanding the foregoing, the Borrowers
         shall be required to deliver the annual budget for the 2001 fiscal year
         by not later than November 30, 2000.

         (b) Section 8.9 of the Credit Agreement is hereby amended by inserting
immediately after the text of ss.8.9.2. the following:

<PAGE>   4
                                      -4-

                  8.9.3. COLLATERAL REPORTS. By not later than September 30,
         2000, the Borrowers will obtain and deliver to the Agent, or, if the
         Agent so elects, will cooperate with the Agent in the Agent's
         obtaining, a report of an independent collateral auditor and/or
         commercial finance examiner satisfactory to the Agent (which may be
         affiliated with one of the Banks), which report shall be in form and
         substance satisfactory to the Agent. All such collateral value reports
         and/or commercial finance examinations shall be conducted and made at
         the expense of the Borrowers.

         SS.5. AMENDMENT TO SS.10 OF THE CREDIT AGREEMENT. Section 10 of the
Credit Agreement is hereby amended as follows:

         (a) Section 10.1 of the Credit Agreement is hereby amended by replacing
the ratio "5.25:1" appearing in the table therein opposite the period "October
1, 2000 to December 31, 2000" with the ratio "5.40:1".

         (b) Section 10.2 of the Credit Agreement is hereby amended by replacing
the ratio "1.95:1" appearing in the table therein opposite the period "October
1, 2000 to December 31, 2000", with the ratio "1.80:1".

         SS.6. AMENDMENT TO THE CREDIT AGREEMENT. The Credit Agreement is
further amended by amending SCHEDULES 7.7, 7.19 and 7.20 to the Credit Agreement
by supplementing each such Schedule with the information set forth on SCHEDULE A
hereto.

         SS.7. CONDITIONS TO EFFECTIVENESS. This Second Amendment shall not
become effective until the Agent receives the following:

         (a) a counterpart of this Second Amendment, executed by the Borrowers,
each Guarantor and the required Banks; and

         (b) an amendment fee for each Bank that consents to this Second
Amendment on or prior to 12:00 noon (Boston time) on August 11, 2000 in an
amount equal to twenty-five basis points on each such consenting Bank's
Commitment plus the outstanding amount of such consenting Bank's Term Loans.

         SS.8. REPRESENTATIONS AND WARRANTIES. Each of the Borrowers hereby
repeats, on and as of the date hereof, each of the representations and
warranties made by it in ss.7 of the Credit Agreement (except to the extent of
changes resulting from transactions contemplated or permitted by the Credit
Agreement and the other Loan Documents and changes occurring in the ordinary
course of business that singly or in the aggregate are not materially adverse to
the Company and its Subsidiaries taken as a whole, and to the extent that such
representations and warranties relate expressly to an earlier date), PROVIDED,
that all references therein to the Credit Agreement shall refer to such Credit
Agreement as amended hereby. In addition, each of the Borrowers hereby
represents and warrants that the execution and delivery by each Borrower of this
Second Amendment and the performance by each Borrower of all of their agreements
and obligations under the Credit Agreement as amended hereby are

<PAGE>   5
                                      -5-

within the corporate authority of each Borrower and have been duly authorized by
all necessary corporate action on the part of each Borrower.

         SS.9. RATIFICATION, ETC. Except as expressly amended hereby, the Credit
Agreement and all documents, instruments and agreements related thereto or
delivered thereunder, including, but not limited to the Security Documents, are
hereby ratified and confirmed in all respects and shall continue in full force
and effect. The Credit Agreement and this Second Amendment shall be read and
construed as a single agreement. All references to the Credit Agreement in the
Credit Agreement or any Loan Document shall hereafter refer to the Credit
Agreement as amended hereby.

         SS.10. NO WAIVER. Nothing contained herein shall constitute a waiver
of, impair or otherwise affect any Obligations, any other obligation of the
Borrowers or any rights of the Agent, the Documentation Agent or the Banks
consequent thereon.

         SS.11. COUNTERPARTS. This Second Amendment may be executed in one or
more counterparts, each of which shall be deemed an original but which together
shall constitute one and the same instrument.

         SS.12. GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS
(WITHOUT REFERENCE TO CONFLICT OF LAWS).

<PAGE>   6

         IN WITNESS WHEREOF, the parties hereto have executed this Second
Amendment as a document under seal as of the date first above written.

                                 THE HOLMES GROUP, INC.

                                 By:
                                     ---------------------------------
                                     Title:

                                 THE RIVAL COMPANY

                                 By:
                                     ---------------------------------
                                     Title:

                                 HOLMES PRODUCTS (FAR EAST) LIMITED

                                 By:
                                     ---------------------------------
                                     Title:

                                 ESTEEM INDUSTRIES LIMITED

                                 By:
                                     ---------------------------------
                                     Title:

                                 RAIDER MOTOR CORPORATION

                                 By:
                                     ---------------------------------
                                     Title:

                                 BIONAIRE INTERNATIONAL B.V.

                                 By:
                                     ---------------------------------
                                     Title:

                                 HOLMES PRODUCTS (EUROPE) LIMITED

                                 By:
                                     ---------------------------------
                                     Title:
<PAGE>   7
                                 PATTON ELECTRIC (HONG KONG) LTD.

                                 By:
                                     ---------------------------------
                                     Title:

                                 THE HOLMES GROUP OF CANADA LTD.

                                 By:
                                     ---------------------------------
                                     Title:

                                 FLEET NATIONAL BANK (F/K/A BANKBOSTON, N.A.)

                                 By:
                                     ---------------------------------
                                     Title:

                                 SYNDICATED LOAN FUNDING TRUST

                                 BY:  LEHMAN COMMERCIAL PAPER INC., NOT IN ITS
                                      INDIVIDUAL CAPACITY, BUT
                                      SOLELY AS ASSET MANAGER

                                 By:
                                     ---------------------------------
                                     Title:

                                 HELLER FINANCIAL, INC.

                                 By:
                                     ---------------------------------
                                     Title:

                                 LASALLE BANK, NATIONAL ASSOCIATION

                                 By:
                                     ---------------------------------
                                     Title:

<PAGE>   8

                                 COMERICA BANK

                                 By:
                                     ---------------------------------
                                     Title:

                                 KEY CORPORATE CAPITAL INC.

                                 By:
                                     ---------------------------------
                                     Title:

                                 CITIZENS BANK OF MASSACHUSETTS, A
                                 MASSACHUSETTS BANK

                                 By:
                                     ---------------------------------
                                     Title:

                                 STAR BANK, NATIONAL ASSOCIATION

                                 By:
                                     ---------------------------------
                                     Title:

                                 ANTARES CAPITAL CORPORATION

                                 By:
                                     ---------------------------------
                                     Title:

                                 NATIONAL CITY BANK

                                 By:
                                     ---------------------------------
                                     Title:

                                 THE PROVIDENT BANK

                                 By:
                                     ---------------------------------
                                     Title:
<PAGE>   9
                                 FRANKLIN FLOATING RATE TRUST

                                 By:
                                     ---------------------------------
                                     Title:

                                 THE TRAVELERS INSURANCE COMPANY

                                 By:
                                     ---------------------------------
                                     Title:

                                 TRAVELERS CORPORATE LOAN FUND INC.
                                 BY: TRAVELERS ASSET MANAGEMENT
                                     INTERNATIONAL COMPANY LLC

                                 By:
                                     ---------------------------------
                                     Title:

                                 MERRILL LYNCH SENIOR FLOATING RATE FUND, INC.

                                 By:
                                     ---------------------------------
                                     Title:

                                 MAGNETITE ASSET INVESTORS LLC

                                 By:
                                     ---------------------------------
                                     Title:

                                 MERRILL LYNCH PRIME RATE PORTFOLIO

                                 By:
                                     ---------------------------------
                                     Title:

<PAGE>   10

                                 PILGRIM PRIME RATE TRUST

                                 By:
                                     ---------------------------------
                                     Title:

                                 PILGRIM AMERICA HIGH INCOME INVESTMENTS LTD.

                                 By:
                                     ---------------------------------
                                     Title:

                                 SEQUILS-PILGRIM I, LTD.

                                 By:
                                     ---------------------------------
                                     Title:

                                 CAPTIVA IV FINANCE LTD.
                                 AS ADVISED BY PACIFIC INVESTMENT
                                 MANAGEMENT COMPANY LLC

                                 By:
                                     ---------------------------------
                                     Title:

                                 PILGRIM CLO 1999 - 1 LTD.

                                 By:
                                     ---------------------------------
                                     Title:

                                 GREAT POINT CLO 1999 - 1 LTD.

                                 By:
                                     ---------------------------------
                                     Title:

<PAGE>   11

                                 FIRST MASSACHUSETTS BANK

                                 By:
                                     ---------------------------------
                                     Title:

                                 SUMMIT BANK

                                 By:
                                     ---------------------------------
                                     Title:

                                 TRANSAMERICA BUSINESS CREDIT CORPORATION

                                 By:
                                     ---------------------------------
                                     Title:

                                 CHASE BANK OF TEXAS, N.A.

                                 By:
                                     ---------------------------------
                                     Title:

                                 VAN KAMPEN SENIOR INCOME TRUST

                                 By:
                                     ---------------------------------
                                     Title:

                                 VAN KAMPEN PRIME RATE INCOME TRUST

                                 By:
                                     ---------------------------------
                                     Title:

<PAGE>   12

                            RATIFICATION OF GUARANTY

         Each of the undersigned guarantors hereby acknowledges and consents to
the foregoing Second Amendment as of June 30, 2000, and agrees that the Amended
and Restated Guaranty dated as of February 5, 1999 from each of Holmes
Manufacturing Corp., Holmes Air (Taiwan) Corp., Holmes Motor Corporation, Patton
Electric Company, Inc., Patton Building Products Inc. and Rival Consumer Sales
Corporation (collectively, the "Guarantors") in favor of the Agent for the
benefit of the Agent and the Banks and all other Loan Documents to which each of
the Guarantors are a party remain in full force and effect, and each of the
Guarantors confirms and ratifies all of its obligations thereunder.

                                 HOLMES MANUFACTURING CORP.

                                 By:
                                     ---------------------------------
                                     Title:

                                 HOLMES AIR (TAIWAN) CORP.

                                 By:
                                     ---------------------------------
                                     Title:

                                 HOLMES MOTOR CORPORATION

                                 By:
                                     ---------------------------------
                                     Title:

                                 PATTON ELECTRIC COMPANY, INC.

                                 By:
                                     ---------------------------------
                                     Title:

                                 PATTON BUILDING PRODUCTS, INC.

                                 By:
                                     ---------------------------------
                                     Title:

                                 RIVAL CONSUMER SALES CORPORATION

                                 By:
                                     ---------------------------------
                                     Title:<PAGE>   1

                                                                   Exhibit 10.44

                                   AGREEMENT

     THIS AGREEMENT (this "AGREEMENT"), is entered into as of May 2, 2000,
between Reebok International Ltd., a Massachusetts corporation (the "COMPANY"),
and Paul B. Fireman (the "EXECUTIVE").

     WHEREAS, on July 24, 1990 the Company granted the Executive (i) an option
designated as option number 000655 ("OPTION 655") to purchase 1,000,000 shares
(the "OPTION 655 SHARES") of the common stock, par value $.01 per share, of the
Company (the "COMMON STOCK") at an exercise price of $18.37 per share (the
"OPTION 655 EXERCISE PRICE"), and (ii) an option designated as option number
000657 ("OPTION 657" and, together with Option 655, the "OPTIONS") to purchase
1,000,000 shares of the Common Stock (the "OPTION 657 SHARES" and, together with
the Option 655 Shares, the "OPTION SHARES") at an exercise price of $17.32 per
share (the "OPTION 657 EXERCISE PRICE" and, together with the Option 655
Exercise Price, the "EXERCISE PRICES");

     WHEREAS, the Options expire on July 24, 2000 in accordance with their terms
(the "EXPIRATION DATE");

     WHEREAS, the Executive intends to exercise Option 655 and Option 657 at
such time, if any, as the market price of the shares of the Common Stock exceeds
the Option 655 Exercise Price and Option 657 Exercise Price, respectively, prior
to the Expiration Date;

     WHEREAS, the Board of Directors of the Company (the "BOARD OF DIRECTORS")
believes it is in the best interests of the Company and its shareholders to
enter into this Agreement in order to avoid the dilution to shareholders that
would result from the sale of the Option Shares to the public; and

     WHEREAS, the Board of Directors believes it is in the best interests of the
Company and the shareholders to grant to the Executive the 2000 Option (as
defined below) in consideration of his valuable service to the Company and in
order to provide the Executive with an incentive to perform additional services
to the Company in the future;

     NOW, THEREFORE, in consideration of the mutual agreements contained herein
and other good and valuable consideration, the receipt of which is hereby
acknowledged, the Company and the Executive agree as follows:

Section 1.        Purchase in Lieu of Exercise.

     1.1. TRIGGERING EVENT. The provisions of this Section 1 shall become
effective with respect to an Option simultaneously with the first trade (the
"FIRST TRADE") of a share of Common Stock on the New York Stock Exchange (the
"NYSE") at a price that exceeds such Option's Exercise Price (the "FIRST TRADE
PRICE"), PROVIDED that a Threshold Number of Shares (as defined below) are
bought and sold on the NYSE within two trading days after the First Trade at a
price

<PAGE>   2

that exceeds the Option's Exercise Price (each such date, an "EFFECTIVE DATE").
The term "THRESHOLD NUMBER OF SHARES" shall mean a number of shares of Common
Stock equal to or greater than ten percent (10%) of the average volume of Common
Stock traded on the NYSE during the thirty (30) trading days immediately
preceding an Effective Date.

     1.2. EXERCISE OF THE OPTION. On the Effective Date, the Company shall
provide the Executive with a written notice substantially in the Form of EXHIBIT
A designating the Option to which this Section 1 has become effective (such
Option to be referred to herein as the "EXERCISABLE OPTION") and such
Exercisable Option shall be deemed automatically exercised. Within five business
days of the Effective Date, the Executive shall deliver written notice of
exercise substantially in the form of EXHIBIT B accompanied by payment in full
to the Company of the Exercisable Option's Exercise Price. Payment in full shall
consist of (i) payment of an amount equal to the product of the number of Option
Shares of such Exercisable Option and $.01 (the "PAR VALUE PRICE"), by delivery
of (a) cash, a certified check, a bank draft or a money order, (b) shares of
Common Stock having a fair market value on the last business day preceding the
Effective Date equal to the Par Value Price, PROVIDED that payment in the form
of such shares does not have tax consequences for the Company which are more
adverse than the tax consequences of its receiving payment in another form
described in clause (a) above, or (c) by a combination of any of the foregoing;
and (ii) a payment in an amount equal to the product of the Exercise Price of
such Exercisable Option and the number of Option Shares of such Exercisable
Option, LESS the Par Value Price (the "REMAINDER"), by the delivery to the
Company of (a) any property described in clauses (i)(a) and (i)(b) (PROVIDED
that the fair market value referenced in clause (i)(b) above is to be equal to
the Remainder), or (b) a promissory note in substantially the form of EXHIBIT C
hereto (the "PROMISSORY NOTE"), or (c) by a combination of any of the foregoing.

     1.3. REPURCHASE OF THE OPTION SHARES. Upon receipt of the Exercise Price
for the Option Shares of an Exercisable Option, the Company shall repurchase the
Option Shares of such Exercisable Option from the Executive, and the Executive
shall sell the Option Shares to the Company, for an amount equal to the product
of (i) the number of Option Shares of the Exercisable Option and (ii) the First
Trade Price (the "REPURCHASE PRICE"). The Company shall pay the Executive the
Repurchase Price, less any amount that the Company is obligated to withhold for
federal or state tax purposes, in immediately available funds within one (1)
business day of receipt of the Purchase Price from the Executive. In addition,
upon receipt of the Repurchase Price, the Executive shall remit to the Company a
portion of the Repurchase Price equal to the sum of (x) the Remainder and (y)
any accrued interest on any Promissory Note, if any (the "RETURNED AMOUNT").
Upon receipt of the Returned Amount, the Company shall immediately cancel any
Promissory Note, if any, issued as payment of the Remainder and return to the
Executive any and all other money, shares, or other consideration, if any, paid
in respect of the Remainder.

     1.4. SOLE MEANS OF EXERCISE. The Executive agrees that this Section 1 is
the sole means by which he will exercise each Option and agrees to waive any and
all rights under any contrary provisions of the Stock Option Certificate dated
July 24, 1990, the Stock Option Agreement dated as of July 24, 1990 and the 1985
Stock Option Plan, each as in effect from time

                                      -2-

<PAGE>   3

to time. Once the Option Shares of an Option are repurchased by the Company
pursuant to Section 1.3 hereof, any and all rights under this Agreement or any
other agreement, instrument or document with respect to such Option Shares are
terminated.

Section 2.        Grant of the 2000 Option

     2.1. The Company hereby agrees to grant to the Executive on the Effective
Date of an Exercisable Option an option to purchase the number shares of the
Common Stock equal to the number of Option Shares of such Exercisable Option
pursuant to the terms and conditions of a Stock Option Agreement in
substantially the form attached hereto as EXHIBIT D (the "2000 OPTION").

Section 3.        Miscellaneous

     3.1. AMENDMENTS. No amendment or waiver of any provision of this Agreement
shall be effective unless the same shall be in writing and signed by the Company
and the Executive.

     3.2. SUCCESSOR. The provisions of this Agreement shall be binding upon and
inure to the benefit of any successor to the Company.

     3.3. NONTRANSFERABILITY. The rights and obligations of this Agreement are
not transferable by the Executive.

     3.4. COUNTERPARTS. This Agreement may be executed by the parties in
counterparts, each of which, when so executed, shall be deemed an original, and
both of said counterparts taken together shall be deemed to constitute but one
and the same instrument.

     3.5. SEVERABILITY. The illegality or unenforceability of any provision of
this Agreement shall not in any way affect or impair the legality or
enforceability of the remaining provisions of this Agreement.

     3.6. CAPTIONS. The captions and headings of this Agreement are for
convenience of reference only and shall not affect the interpretation of this
Agreement.

     3.7. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of The Commonwealth of Massachusetts without regard to
conflict of laws provisions thereof.

     3.8. ENTIRE AGREEMENT. This Agreement, together with the 2000 Option,
embodies the entire agreement and understanding between the Company and the
Executive, and supersedes all prior or contemporaneous agreements and
understandings of the parties, oral or written, relating to the subject matter
hereof. Execution of this Agreement by the Executive constitutes a full,
complete and irrevocable release of any and all claims which the Executive may
have at law or in

                                      -3-

<PAGE>   4

equity in respect of all prior discussions and understandings, oral or written,
relating to the subject matter of this Agreement.

                                      -4-
<PAGE>   5

     IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto
as of the date first written above.

REEBOK INTERNATIONAL LTD.

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

/s/ Paul Fireman
----------------------------------------
PAUL B. FIREMAN

                                      -5-

<PAGE>   6

                                                                       EXHIBIT A

                          FORM OF EFFECTIVENESS NOTICE

To:  PAUL B. FIREMAN

     Pursuant to Section 1.2 of the Agreement dated as of May 2, 2000 between
Reebok International Ltd. (the "COMPANY") and you (the "AGREEMENT"), notice is
hereby given to you that Section 1 has become effective, as of _______________,
2000, as to Option [______]. For purposes of the Agreement, the First Trade
Price is $_____ per share of Common Stock. Capitalized terms not defined herein
but used herein shall have the meanings assigned to such terms in this
Agreement.

Dated:  _________, 2000                              REEBOK INTERNATIONAL LTD.

By:_______________________________

Its:______________________________

<PAGE>   7

                                                                       EXHIBIT B

                           FORM OF NOTICE OF EXERCISE

To:  REEBOK INTERNATIONAL LTD.

     The undersigned holder of Option Number [_________] hereby irrevocably
exercises such Option for, and purchases thereunder, 1,000,000 shares of the
Common Stock of Reebok International Ltd. and herewith makes payment therefor
as follows: (i) $10,000 in payment of the Par Value Price and (ii) [FORM OF
CONSIDERATION] in payment of the Remainder. Capitalized terms used herein but
not defined herein shall have the meanings assigned to such terms in the
Agreement dated as of May 2, 2000 between Reebok International Ltd. and the
undersigned.

Dated:  _________, 2000                         _______________________________
                                                PAUL B. FIREMAN

                                                _______________________________
                                                      (Street Address)

                                                _______________________________
                                                (City)    (State)   (Zip Code)

<PAGE>   8

                                                                       EXHIBIT C

                                 PROMISSORY NOTE

$[REMAINDER]                                         _________, 2000

     For value received, Paul B. Fireman (the "EXECUTIVE") promises to pay to
the order of Reebok International Ltd., a Massachusetts corporation (the
"COMPANY"), at 1895 J.W. Foster Boulevard, Canton, Massachusetts 02021, or such
other place as designated in writing by the holder hereof, the aggregate
principal sum of $[SEE ABOVE], together with all accrued but unpaid interest
thereon, on or before [364 DAYS AFTER DATE OF NOTE]. From the date hereof until
the entire principal amount of this promissory note has been paid in full,
interest shall accrue at a rate of [6.2]% per annum, compounding annually, on
the unpaid principal amount outstanding from time to time, or (if less) at the
highest rate then permitted by applicable law.

     The indebtedness evidenced hereby may be prepaid, in whole or in part, at
any time without premium or penalty.

     The Executive, on behalf of himself and his assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Note, and expressly agrees that this Note, or
any payment hereunder, may be extended from time to time and that the holder
hereof may accept security for this Note or release security for this Note, all
without in any way affecting the liability of the Executive hereunder.

     This Note shall be governed by the internal laws, not the laws of
conflicts, of The Commonwealth of Massachusetts.

                                        ----------------------------
                                        PAUL B. FIREMAN

<PAGE>   9

                                                                       EXHIBIT D

                             STOCK OPTION AGREEMENT

     This Stock Option Agreement (this "AGREEMENT") is entered into as of
________________, 2000 by and between Reebok International Ltd., a Massachusetts
corporation (the "COMPANY"), and Paul B. Fireman (the "EXECUTIVE").

1.   CERTAIN DEFINITIONS. As used in this Agreement, the following terms shall
     have the following meanings:

     (1)  "ACQUIRING PERSON" shall mean, with respect to any Transaction, each
          Person who is a party to or a participant in such Transaction or who,
          as a result of such Transaction, would (together with other Persons
          acting in concert) own a majority of the Company's outstanding Common
          Stock; PROVIDED, HOWEVER, that none of the Company, any wholly-owned
          subsidiary of the Company, any employee benefit plan of the Company or
          any trustee in respect thereof acting in such capacity shall, for
          purposes of this Section, be deemed an "Acquiring Person".

     (2)  "ACT" shall mean the Securities and Exchange Act of 1934, as amended.

     (3)  "AFFILIATE", with respect to any Person, shall mean any other Person
          who is, or would be deemed to be, an "affiliate" or an "associate" of
          such Person within the respective meanings ascribed to such terms in
          Rule 12b-2 of the General Rules and Regulations under the Act.

     (4)  "BOARD OF DIRECTORS" shall mean the board of directors of the Company.

     (5)  "CAUSE" shall mean any one or more of the following:

               (1)  the Executive's admission or conviction of a felony or of
                    any crime involving moral turpitude, fraud, embezzlement,
                    theft or misrepresentation; and

               (2)  any gross or willful misconduct of the Executive resulting
                    in substantial loss to the Company or substantial damage to
                    the Company's reputation.

     (6)  "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

<PAGE>   10

          for the benefit of the Executive 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 of Directors in office
          immediately prior to such transaction or event constitute less than a
          majority of the Board of Directors thereafter, or (iv) the Continuing
          Directors cease for any reason to constitute a majority thereof.

     (7)  "CODE" shall mean the Internal Revenue Code of 1986, as amended.

     (8)  "CONTINUING DIRECTOR" shall mean any director of the Company who (i)
          is not an Acquiring Person or an Affiliate of an Acquiring Person and
          (ii) either was (A) a member of the Board of Directors of the Company
          on the date hereof or (B) nominated for his or her initial term of
          office by a majority of the Continuing Directors in office at the time
          of such nomination.

     (9)  "EXERCISE PERIOD" shall mean the period of time beginning on the first
          business day of the first taxable year in which the Executive does not
          constitute a "covered employee" (subject to the proviso of the first
          sentence of Section 3) and ending on the third anniversary of the date
          on which the Executive no longer has a material affiliation with the
          Company as a director, an officer or a consultant; PROVIDED, HOWEVER,
          that the Option shall no longer be exercisable after the tenth
          anniversary hereof.

     (10) "LEGAL REPRESENTATIVE" shall mean the Executive's executor or
          administrator or the Person or Persons to whom the Option is
          transferred by will or the applicable laws of descent and
          distribution, or the Person or Persons appointed to legally represent
          the Executive if he is incapacitated.

     (11) "OPTION TERMS" shall mean the Exercise Prices, the maximum number of
          Shares that the Executive may purchase pursuant to the terms of the
          Option, and the other terms and conditions of the Option.

     (12) "PERSON" shall mean a corporation, association, partnership, joint
          venture, trust, organization, business, individual or government or
          any governmental agency or political subdivision thereof.

     (13) Each of the following terms is identified in the Section set forth
          opposite such term:

                                      -2-

<PAGE>   11

                   Term                                        Section
                   ----                                        -------

               Agreement.........................................Preamble
               Common Stock.............................................2
               Company...........................................Preamble
               Executive.........................................Preamble
               Exercise Prices..........................................2
               162(m) Restriction.......................................3
               Option...................................................2
               Shares...................................................2
               Transaction..............................................8

2.   GRANT OF OPTION.

     The Company hereby grants to the Executive an option (the "OPTION") to
purchase, exercisable in whole or in part, on the terms herein provided, a total
of [NUMBER OF OPTION SHARES OF THE EXERCISABLE OPTION] shares (the "SHARES") of
Common Stock, par value $.01 per Share, of the Company (the "COMMON STOCK") at
the per Share price indicated below (the "EXERCISE PRICES"). It is intended that
the Option shall be a non-statutory option.

     The Option shall vest, subject to the terms and conditions of this
Agreement, in the following installments:

     [ONE-THIRD OF TOTAL] Shares at $______ per Share on and after _____, 2001;

     [ONE-THIRD OF TOTAL] Shares at $______ per Share on and after _____, 2002;
and

     [ONE-THIRD OF TOTAL] Shares at $______ per Share on and after _____, 2003;

PROVIDED, HOWEVER, that the Option shall immediately vest, subject to the terms
and conditions of this Agreement, on the date on which (i) the Executive ceases
for any reason (other than for cause) to be Chief Executive Officer of the
Company or (ii) there occurs a Change of Control.

3.   DURATION OF OPTION.

     The Option shall not be exercisable during any taxable year in which the
Executive constitutes a "covered employee" for purposes of Code Section 162(m),
or any successor Code Section related to excessive employee remuneration (the
"162(M) RESTRICTION"); PROVIDED, HOWEVER, that the 162(m) Restriction shall no
longer apply if any statute, any Treasury regulation or any court order or other
decision binding on the Company amends or modifies the scope of the definition
of "covered employee" to a material extent such that such definition includes a
broad employee base of the Company, including "rank and file" employees,
directors or consultants. The Executive may exercise the Option at any time
during the Exercise Period, so long as:

                                      -3-

<PAGE>   12

     (1)  the employment of the Executive is not terminated for Cause which, in
          the opinion of the Board of Directors, casts such discredit on the
          Executive as to justify termination of the Option;

     (2)  the Executive makes himself available to the Company upon the
          reasonable request of the Company for consulting or director services,
          regardless of whether he actually renders any of such services; and

     (3)  the Executive does not compete with the Company or any of its
          subsidiaries or Affiliates, either directly or indirectly, as a
          principal stockholder (other than the owner of less than five percent
          (5%) of the equity of any publicly traded issuer), partner, director,
          officer, employee, consultant, agent, or otherwise;

PROVIDED, HOWEVER that if the requirement set forth in clause (b) above ceases
to be accurate:

          (1)  by reason of the Executive's death, then the Option shall become
               exercisable by his Legal Representative, at any time or times
               during the Exercise Period; or

          (2)  by reason of the Executive's disability, then the Option shall
               continue to be exercisable for the duration of the Exercise
               Period.

     If any of clauses (a), (b) or (c) above ceases to accurate and if the
Executive fails to cure such inaccuracy within a period of time found to be
reasonable by the Company, the Option shall terminate and cease to be
exercisable after the date that is the earlier of (x) three months after such
conditions(s) cease to be satisfied and (y) the end of the Exercise Period.

     After completion of the Exercise Period, the Option shall terminate to the
extent not previously exercised, expired or terminated.

4.   EXERCISE OF OPTION.

     Each election to exercise the Option shall be in writing and in
substantially the form of EXHIBIT A, signed by the Executive or the Legal
Representative, as the case may be, and received by the Company at its principal
office, accompanied by payment in full. The purchase price may be paid by
delivery of: (a) cash, certified check, bank draft or money order; (b) shares of
Common Stock having a fair market value on the last business day preceding the
date of exercise equal to the purchase price, PROVIDED that payment in the form
of such shares does not have tax consequences for the Company which are more
adverse than the tax consequences of its receiving payment in another form
described in clause (a) above; or (c) by a combination of any of the foregoing.
In the event that the Option is exercised by the Legal Representative, the
Company shall be under no obligation to deliver Shares hereunder unless and
until the Company is satisfied as to the authority of the person or persons
exercising the Option.

5.   WITHHOLDING.

                                      -4-

<PAGE>   13

     No Shares will be transferred pursuant to the exercise of the Option unless
and until the Person exercising the Option remits to the Company an amount
sufficient to satisfy any federal, state or local withholding tax requirements,
or makes other arrangements satisfactory to the Company with regard to such
taxes.

6.   NONTRANSFERABILITY OF OPTION.

     Except as specifically noted below in this paragraph, the Option is not
transferable by the Executive other than by will or the laws of descent and
distribution, and is exercisable during the Executive's lifetime only by the
Executive. If the Executive is incapacitated, however, the Legal Representative
of the Executive may exercise the Option provided that the Company is satisfied
as to the authority of such Legal Representative. Notwithstanding all of the
foregoing, the Company will permit the transfer of the Option by the Executive
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 Executive; any
trust in which these persons have more than fifty percent (50%) beneficial
interest; or a foundation in which these persons (or the Executive) control the
management of assets. The Company will also permit the retransfer of the Option
by any of these permitted transferees back to the Executive.

7.   SHARES SUBJECT TO THE OPTION.

     (1)  SHARES TO BE DELIVERED. Shares delivered upon the exercise of the
          Option shall be authorized but unissued Shares or, if the Board of
          Directors so decides in its sole discretion, previously issued Shares
          acquired by the Company and held in treasury. No fractional Shares
          shall be delivered pursuant to the exercise of the Option.

     (2)  CHANGES IN THE SHARES. In the event of a stock dividend, stock split
          or combination of shares, recapitalization or other change in the
          Company's capital stock, any Option Term may be appropriately adjusted
          by the Board of Directors, whose determination shall be binding on the
          Executive. The Board of Directors may also adjust any Option Term to
          take into consideration material changes in accounting practices or
          principles, consolidations or mergers, acquisitions or dispositions of
          stock or property or any other event if it is determined by the Board
          of Directors that such adjustment is appropriate to avoid distortion
          in the Option Terms.

8.   MERGERS, ETC.

     In the event of any merger or consolidation involving the Company, any sale
of substantially all of the Company's assets or any other transaction or series
of related transactions as a result of which a single Person or several Persons
acting in concert own a majority of the Company's then outstanding capital stock
(such merger, consolidation, sale or other transaction being hereinafter
referred to as a "TRANSACTION"), the Option shall become exercisable

                                      -5-

<PAGE>   14

immediately prior to the consummation of the Transaction. Upon consummation of
the Transaction, the Option, if it remains outstanding, shall terminate and
cease to be exercisable. There shall be excluded from the foregoing any
Transaction as a result of which (i) the holders of shares of Common Stock prior
to the Transaction retain, or acquire securities constituting, a majority of the
outstanding voting common stock of the acquiring or surviving corporation or
other entity and (ii) no single Person owns more than half of the outstanding
voting common stock of the acquiring or surviving corporation or other entity.
For purposes of this Section, voting common stock of the acquiring or surviving
corporation or other entity that is issuable upon conversion of convertible
securities or upon exercise of warrants or options shall be considered
outstanding, and all securities that vote in the election of directors (other
than solely as the result of a default in the making of any dividend or other
payment) shall be deemed to constitute that number of shares of voting common
stock which is equivalent to the number of such votes that may be cast by the
holders of such securities.

     In lieu of the foregoing, if there is an acquiring or surviving corporation
or entity, the Board of Directors may, by vote of a majority of the members of
the Board of Directors who are Continuing Directors, arrange to have such
acquiring or surviving corporation or entity or an Affiliate thereof grant to
the Executive a replacement option.

9.   EMPLOYMENT RIGHTS

     The grant of the Option shall confer upon the Executive any right to
continued employment with the Company or any parent or subsidiary or affect in
any way the right of the Company or parent or subsidiary to terminate the
employment of the Executive. Except as specifically provided by the Board of
Directors in any particular case, the loss of existing or potential profit in
the Option shall not constitute an element of damages in the event of
termination of the employment of the Executive even if the termination is in
violation of an obligation of the Company to the Executive by contract or
otherwise.

10.  DELEGATION TO COMMITTEE.

     The Board of Directors may delegate, in its discretion, its duties
hereunder to the Compensation Committee or any other committee of directors, and
any determination pursuant this Agreement by such committee shall be binding on
the Executive.

11.  RIGHTS AS A STOCKHOLDER.

     This Option shall not give the Executive rights as a stockholder of the
Company.

12.  CONDITIONS ON DELIVERY OF STOCK.

     The Company will not be obligated to deliver any Shares pursuant to this
Option until: (a) in the opinion of the Company's counsel, regulations have been
complied with, and (b) all other legal matters in connection with the issuance
and delivery of such Shares have been approved by the Company's counsel.

                                      -6-

<PAGE>   15

13.  GOVERNING LAW.

     This Agreement shall be governed by and construed in accordance with the
laws of The Commonwealth of Massachusetts without regard to the conflicts of law
provisions thereof.

                                      -7-

<PAGE>   16

     IN WITNESS WHEREOF, the Company has caused this Stock Option Agreement to
be executed under its corporate seal by its duly authorized officer. The
Executive's signature on a counterpart of this Stock Option Agreement
constitutes his agreement to the foregoing. This Option shall take effect as a
sealed instrument.

                                     REEBOK INTERNATIONAL LTD.

                                     By:___________________________________

                                     Title:________________________________

AGREED TO:

____________________________
PAUL B. FIREMAN

                                      -8-

<PAGE>   17

                                             EXHIBIT A TO STOCK OPTION AGREEMENT

                           FORM OF NOTICE OF ELECTION

To:  REEBOK INTERNATIONAL LTD.

     The undersigned holder of the Option issued pursuant to the Stock Option
Agreement dated as of _____________, 2000 hereby irrevocably exercises such
Option for, and purchases thereunder, _______________ shares of the Common Stock
of Reebok International Ltd. and herewith makes payment of $_______ therefor,
and requests that the certificates for such shares be issued in the name of, and
delivered to, the undersigned at the address set forth below.

Dated:  __________________                  _________________________________
                                            PAUL B. FIREMAN

                                            _________________________________
                                            (Street Address)

                                            _________________________________
                                            (City)     (State)     (Zip Code)

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