We won’t need to hold a benefit for Jay Margolis, who recently resigned as president and COO at Reebok.  In a recent SEC filing, Reebok stated that Margolis had resigned “with immediate effect” on 10/20/04 and that the departure would be treated as “termination without cause” under his employment agreement.

Under the agreement, “assuming Mr. Margolis complies with the covenant” regarding non-compete, non-recruitment, and non-disparagement, he will receive $108,000 per month for 18 months ($1.95 million) , or until he gets a new job, and will be entitled to exercise 212,500 options and continue to vest 237,500 options, and will also be entitled to 100,000 options that were to be distributed on 11/30/04. 

The options reportedly have an exercise value of $20 million at the 10/28 closing price.  If all options were exercised today at the $24 option price, Margolis would net about $7 million.

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