Document:

Exhibit
10.4

DECKERS
OUTDOOR CORPORATION

STOCK APPRECIATION RIGHTS AWARD
AGREEMENT

UNDER

2006
EQUITY INCENTIVE PLAN

LEVEL 1
AWARD

	
  Name of Grantee:

  	
   

  
	
  Total Number of SARs Granted:

  	
   

  
	
  Grant Date:

  	
   

  
	
  SAR Base Value:

  	
   

  

 

Deckers Outdoor Corporation (the “Company”)
has on the Grant Date specified above (the “Grant Date”)
granted to                                                      
(“Grantee”), in order to provide an
incentive for Grantee to remain a Service Provider of the Company and to exert
added effort towards its growth and success, an award (the “Award”) of stock appreciation rights (“SARs”)
with respect to that number of shares set forth above of the Company’s Common
Stock, $0.01 par value per share (the “Common Stock”),
subject to certain restrictions and on the terms and conditions contained in
this Stock Appreciation Rights Award Agreement (this “Agreement”)
and the Deckers Outdoor Corporation 2006 Stock Incentive Plan (the “Plan”).  Any terms not
defined in this Agreement shall have the meaning set forth in the Plan.

1.             Grant of Stock
Appreciation Rights.  The Company
hereby grants to the Grantee under the Plan and on the terms and on conditions
set forth in this Agreement SARs with respect to that number of shares set
forth above of the Company’s Common Stock at the “Base Value” per share set
forth above (the “SARs”).

2.             Base Value and
Benefit.  The Base Value set forth
above is equal to the Fair Market Value of a share of the Company’s Common
Stock on the Grant Date.  Each SAR
entitles Grantee to receive from the Company upon the settlement of the SAR an
amount, payable in shares of the Company’s Common Stock, equal to the excess,
if any, of (a) the Fair Market Value of one share of Common Stock on the
date of settlement, over (b) the Base Value per share.

3.             Vesting of SARs.
The right to exercise the SARs shall vest in installments, and the SARs shall
be exercisable from time to time in whole or in part as to any vested
installment (“Vested SARs”), based upon the
Grantee’s “Continuous Service” (as defined below) to the Company and the
achievement by the Company of the performance milestones set forth below.  The SARs shall vest as follows:

(a)           If the Company achieves all of the performance objectives
set forth on Exhibit A attached hereto for the twelve month period
ending December 31, 2010, then eighty percent (80%) of the SARs shall vest and
become Vested SARs effective as of December 31, 2010, 

provided that the
Grantee shall have provided Continuous Service to the Company through December
31, 2010.

(b)           If the Company achieves all of the performance objectives
set forth on Exhibit A attached hereto for the twelve month period ending
December 31, 2011, then one hundred percent (100%) of the remaining unvested SARs
shall vest and become Vested SARs effective as of December 31, 2011, provided
that the Grantee shall have provided Continuous Service to the Company through
December 31, 2011.

(c)           No additional SARs shall vest after the date of
termination of Optionee’s “Continuous Service” (as defined below), but Vested
SARs shall continue to be exercisable in accordance with Section 3 hereof
with respect to that number of SARs that have vested as of the date of
termination of Optionee’s Continuous Service.

(d)           As used herein, the term “Continuous Service” means (i) employment by either the Company
or any parent or subsidiary corporation of the Company, or by any successor
entity following a Change in Control, which is uninterrupted except for paid
vacations or paid sick days in accordance with Company policy, as applicable,
or (ii) service as a member of the Board of Directors of the Company until
Grantee resigns, is removed from office, or Grantee’s term of office expires
and he or she is not reelected.  Any leave
of absence or other time off work, whether or not approved by the Company,
shall result in a suspension of Grantee’s Continuous Service, and during such
time any SARs held by Grantee shall not vest unless provided otherwise in
writing by the Administrator.  The
Grantee’s Continuous Service shall not terminate merely because of a change in
the capacity in which the Grantee renders service to the Company or a
corporation or subsidiary corporation described in clause (i) above.  For example, a change in the Grantee’s status
from an employee to a Non-Employee Director will not constitute an interruption
of the Grantee’s Continuous Service, provided there is no interruption in the
Grantee’s performance of such services. 
Notwithstanding the foregoing, for any employee of a subsidiary of the
Company located outside the United States, such employee’s Continuous Service
shall be deemed terminated upon the commencement of such employee’s “garden
leave period,” “notice period,” or other similar period where such employee is
being compensated by such subsidiary but not actively providing service to such
subsidiary.

4.             Vesting Upon
Change in Control.

(a)           In the event of a Change in Control (as defined in the
Plan) of the Company, any surviving corporation or acquiring corporation (or
parent thereof) may assume the SARs or shall substitute similar awards
(including an award to acquire the same consideration paid to the stockholders
in such Change in Control). 
Notwithstanding the foregoing, if the Change in Control is not approved
by a majority of the Continuing Directors (as defined below), or if any
surviving corporation or acquiring corporation does not assume the SARs or
agree to substitute similar awards for the SARs covered by this Agreement, the
SARs shall fully vest and Grantee shall have the right to exercise such SARs
immediately prior to the consummation of such Change in Control.  If in connection with a Change in Control
approved by a majority of the Continuing Directors the acquiring or successor
entity (or parent thereof) provides for the continuance or assumption of this
Agreement or the substitution for this Agreement of a new agreement of
comparable value (“New Incentives”),
then vesting of the SARs shall not accelerate; provided, however,

 2
 

(i)            if
Grantee’s Continuous Service is terminated without Cause or pursuant to a
Constructive Termination (as defined below) within 12 months following such
Change in Control, the SARs or New Incentives shall accelerate and become fully
vested effective upon such termination; or

(ii)           if,
following a Change in Control, Grantee shall have provided Continuous Service
through December 31, 2010, then, whether or not the performance objectives set
forth in Exhibit A have been met, 80% of the Restricted Stock Units or
New Incentives shall vest on December 31, 2010, and if, following a Change in
Control, Grantee shall have provided Continuous Service through December 31,
2011, then, whether or not the performance objectives set forth in Exhibit A
have been met, 100% of the Restricted Stock Units or New Incentives shall vest
on December 31, 2011.

(b)           For purposes of this Section 4, the following terms shall
have the meanings set forth below:

(i)            “Cause”
means, with respect to a Grantee’s Continuous Service, the termination by the
Company of such Continuous Service for any of the following reasons: (a) The
continued, unreasonable refusal or omission by the Grantee to perform any
material duties required of him by the Company if such duties are consistent
with duties customary for the position held with the Company; (b) Any material
act or omission by the Grantee involving malfeasance or gross negligence in the
performance of Grantee’s duties to, or material deviation from any of the
policies or directives of, the Company; (c) Conduct on the part of Grantee
which constitutes the breach of any statutory or common law duty of loyalty to
the Company; including the unauthorized disclosure of material confidential
information or trade secrets of the Company; or (d) any illegal act by Grantee
which materially and adversely affects the business of the Company or any
felony committed by Grantee, as evidenced by conviction thereof, provided that
the Company may suspend Grantee with pay while any allegation of such illegal
or felonious act is investigated.  In the
event that the Grantee is a party to an employment agreement or other similar
agreement with the Company or any Affiliate that defines a termination on
account of “Cause” (or a term having similar meaning), such definition shall
apply as the definition of a termination on account of “Cause” for purposes
hereof, but only to the extent that such definition provides the Grantee with
greater rights.  A termination on account
of Cause shall be communicated by written notice to the Grantee, and shall be
deemed to occur on the date such notice is delivered to the Grantee.

(ii)           “Constructive
Termination” shall mean a termination of employment by Grantee
within sixty (60) days following the occurrence of any one or more of the
following events without the Grantee’s written consent (i) any reduction in
position, title, overall responsibilities, level of authority, level of
reporting, base compensation, annual incentive compensation opportunity,
aggregate employee benefits or (ii) a request that Grantee’s location of
employment be relocated by more than fifty (50) miles.  In the event that the Grantee is a party to
an employment agreement or other similar agreement with the Company or any
Affiliate (or a successor entity) that defines a termination on account of “Constructive
Termination,” “Good Reason” or “Breach of Agreement” (or a term having a
similar meaning), such definition shall apply as the definition of “Constructive
Termination” for purposes hereof in lieu of the foregoing, but only to the
extent that such definition provides the Grantee with greater rights.  A Constructive Termination shall be
communicated by written notice to the Committee, and shall be deemed to occur
on the date such notice is delivered to the Committee, unless the circumstances
giving rise to the Constructive Termination are cured within five (5) days of
such notice.

 3
 

(iii)          “Continuing Director”
means any member of the Board of Directors of the Company who was a member of
the Board prior to the adoption of the Plan, and any person who is subsequently
elected to the Board if such person is recommended or approved by a majority of
the Continuing Directors.

5.             Term of SARs and
Limitations on Right to Exercise. 
The term of the SARs is a period of ten (10) years, expiring on the tenth
(10th)
anniversary of the Grant Date (the “Expiration Date”).  To the extent not previously exercised, the
SARs will lapse three months after the termination of the Grantee’s employment
with the Company for any reason.  The
Committee may, subject to Section 10(c) below, prior to the lapse of the SARs
under the circumstances described in this Section, extend the time to exercise
the SARs.  If the Grantee or his or her
beneficiary exercises a SAR after termination of employment, the SARs may be
exercised only with respect to the shares that were otherwise vested as of such
termination.

6.             Value and
Settlement of SARs.  The value due
upon exercise or settlement of the SARs is calculated as follows:  the number of SARs being exercised or
settled, times the excess, if any, of (i) the Fair Market Value of one
share of Stock on the date of exercise or settlement, over (ii) the Base
Value of the SAR.  Upon settlement of the
SARs, the related delivery of shares of Common Stock shall be subject to the
tax withholding provisions of Section 10. 
The value of any fractional shares of Common Stock shall be paid in cash
at the time certificates are delivered to Grantee in payment of the SARs.

7.             Dividend
Equivalents.  No dividend equivalent
rights shall attach to the SARs granted hereby.

8.             Adjustments to
SARs.  Upon or in contemplation of
any reclassification, recapitalization, stock split, reverse stock split or
stock dividend; any merger, combination, consolidation or other reorganization;
any split-up, spin-off, or similar extraordinary dividend distribution in
respect of the Common Stock (whether in the form of securities or property);
any exchange of Common Stock or other securities of the Company, or any
similar, unusual or extraordinary corporate transaction in respect of the
Common Stock; or a sale of substantially all the assets of the Company as an
entirety; then the Company shall, in such manner, make appropriate adjustments
in the number or terms of the SARs, as provided in Section 15 of the Plan.

9.             Limitation of
Rights.  The SARs do not confer to
Grantee or Grantee’s beneficiary any rights of a shareholder of the Company
unless and until shares of Stock are in fact issued to such person in
connection with the exercise of the SARs. 
Nothing in this Agreement shall interfere with or limit in any way the
right of the Company or any affiliate to terminate Grantee’s employment at any
time, nor confer upon Grantee any right to continue in the employment of the
Company or any affiliate.

10.           Income Tax
Matters.

(a)           In order to comply with all applicable federal or state
income tax laws or regulations, the Company may take such action as it deems
appropriate to ensure that all applicable federal or state payroll,
withholding, income or other taxes, which are the sole and absolute
responsibility of Grantee, are withheld or collected from Grantee.

 4
 

(b)           The Company shall reasonably determine the amount of any
federal, state, local or other income, employment, or other taxes which the
Company or any of its affiliates may reasonably be obligated to withhold with
respect to the grant, vesting, or other event with respect to the SARs.  The Company may, in its sole discretion,
withhold an amount from the proceeds of the SARs upon exercise or settlement
sufficient to satisfy the minimum amount of any such withholding obligations
that arise with respect to the vesting of such SARs.  The Company may take such action(s) without
notice to the Grantee, and the Grantee shall have no discretion as to the
satisfaction of tax withholding obligations in such manner.  If, however, any withholding event occurs
with respect to the SARs other than upon the vesting of such SARs, or if the
Company for any reason does not satisfy the withholding obligations with
respect to the vesting of the SARs as provided above in this Section 10(b),
the Company shall be entitled to require a cash payment by or on behalf of the
Grantee and/or to deduct from other compensation payable to the Grantee the minimum
amount of any such withholding obligations.

(c)           The SARs evidenced by this Agreement, and the related
payments to Grantee in settlement of vested SARs, are intended to be taxed
under the provisions of Section 83 of the Internal Revenue Code of 1986, as
amended (the “Code”), and are not
intended to provide and do not provide for the deferral of compensation within
the meaning of Section 409A(d) of the Code. 
The Company reserves the right to amend this Agreement, without the
Grantee’s consent, to the extent it reasonably determines from time to time
that such amendment is necessary in order to achieve the purposes of this
Section.

11.           Notices.  All notices, requests, demands and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given and effective (i) when
delivered by hand, (ii) when otherwise delivered against receipt therefor,
or (iii) three (3) business days after being mailed if sent by registered
or certified mail, postage prepaid, return receipt requested.  Any notice shall be addressed to the parties
as follows or at such other address as a party may designate by notice given to
the other party in the manner set forth herein:

(a)           if to the Company:

Deckers Outdoor
Corporation

495-A South Fairview
Avenue

Goleta, California  93117

Attention: 
Chief Financial Officer

(b)           if to the Grantee, at the address shown on the signature
page of this Agreement or at his most recent address as shown in the employment
or stock records of the Company.

12.           Binding
Obligations.  All covenants and
agreements herein contained by or on behalf of any of the parties hereto shall
bind and inure to the benefit of the parties hereto and their permitted
successors and assigns.

13.           Captions and
Section Headings.  Captions and
section headings used herein are for convenience only, and are not part of this
Agreement and shall not be used in construing it.

14.           Amendment.  This Agreement may not be amended, waived,
discharged, or terminated other than by written agreement of the parties.

 5
 

15.           Entire Agreement.  This Agreement and the Plan constitute the
entire agreement between the parties with respect to the subject matter hereof
and supersede all prior or contemporaneous written or oral agreements and
understandings of the parties, either express or implied.

16.           Conflict of
Provisions.  The terms contained in
the Plan are incorporated into and made a part of this Agreement and this
Agreement shall be governed by and construed in accordance with the Plan.  In the event of any actual or alleged
conflict between the provisions of the Plan and the provisions of this
Agreement, the provisions of the Plan shall be controlling and determinative.

17.           Assignment.  Grantee shall have no right, without the
prior written consent of the Company, to (i) sell, assign, mortgage, pledge or
otherwise transfer any interest or right created hereby, or (ii) delegate his
or her duties or obligations under this Agreement.  This Agreement is made solely for the benefit
of the parties hereto, and no other person, partnership, association or corporation
shall acquire or have any right under or by virtue of this Agreement.

18.           “Market Stand-Off”
Agreement.  Grantee agrees that, if
requested by the Company or the managing underwriter of any proposed public
offering of the Company’s securities (including any acquisition transaction
where Company securities will be used as all or part of the purchase price),
Grantee will not sell or otherwise transfer or dispose of any SARs held by
Grantee without the prior written consent of the Company or such underwriter,
as the case may be, during such period of time, not to exceed 180 days
following the effective date of the registration statement filed by the Company
with respect to such offering, as the Company or the underwriter may specify.

19.           Severability.  Should any provision or portion of this
Agreement be held to be unenforceable or invalid for any reason, the remaining
provisions and portions of this Agreement shall be unaffected by such holding.

20.           Applicable Law.  This Agreement shall be construed in accordance
with the laws of the State of California without reference to choice of law
principles, as to all matters, including, but not limited to, matters of
validity, construction, effect or performance.

21.           No Agreement to
Employ. Nothing in this Agreement shall affect any right with respect to
continuance of employment by the Company or any of its subsidiaries.  The right of the Company or any of its
subsidiaries to terminate at will the Grantee’s employment at any time (whether
by dismissal, discharge or otherwise), with or without cause, is specifically
reserved, subject to any other written employment agreement to which the
Company and Grantee may be a party.

22.           Attorneys’ Fees.  If any party shall bring an action in law or
equity against another to enforce or interpret any of the terms, covenants and
provisions of this Agreement, the prevailing party in such action shall be
entitled to recover reasonable attorneys’ fees and costs.

23.           Counterparts.  This Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one agreement and
any party hereto may execute this Agreement by signing any such
counterpart.  This Agreement shall be
binding upon Grantee and the Company at such time as the Agreement, in
counterpart or otherwise, is executed by Grantee and the Company.

[Signature Page Follows]

 6

IN
WITNESS WHEREOF, the parties hereto have executed this Stock Appreciation
Rights Award Agreement as of the date first above written.

	
  THE COMPANY:

  	
   

  	
  GRANTEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DECKERS
  OUTDOOR CORPORATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Print
  Name)

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:Exhibit
10.5

DECKERS
OUTDOOR CORPORATION

STOCK APPRECIATION RIGHTS AWARD
AGREEMENT

UNDER

2006
EQUITY INCENTIVE PLAN

LEVEL 2
AWARD

	
  Name of Grantee:

  	
   

  
	
  Total Number of SARs Granted:

  	
   

  
	
  Grant Date:

  	
   

  
	
  SAR Base Value:

  	
   

  

 

Deckers Outdoor Corporation (the “Company”)
has on the Grant Date specified above (the “Grant Date”)
granted to                                              
(“Grantee”), in order to provide an
incentive for Grantee to remain a Service Provider of the Company and to exert
added effort towards its growth and success, an award (the “Award”) of stock appreciation rights (“SARs”)
with respect to that number of shares set forth above of the Company’s Common
Stock, $0.01 par value per share (the “Common Stock”),
subject to certain restrictions and on the terms and conditions contained in
this Stock Appreciation Rights Award Agreement (this “Agreement”)
and the Deckers Outdoor Corporation 2006 Stock Incentive Plan (the “Plan”).  Any terms not
defined in this Agreement shall have the meaning set forth in the Plan.

1.             Grant of Stock
Appreciation Rights.  The Company
hereby grants to the Grantee under the Plan and on the terms and on conditions
set forth in this Agreement SARs with respect to that number of shares set
forth above of the Company’s Common Stock at the “Base Value” per share set
forth above (the “SARs”).

2.             Base Value and
Benefit.  The Base Value set forth
above is equal to the Fair Market Value of a share of the Company’s Common
Stock on the Grant Date.  Each SAR
entitles Grantee to receive from the Company upon the settlement of the SAR an
amount, payable in shares of the Company’s Common Stock, equal to the excess,
if any, of (a) the Fair Market Value of one share of Common Stock on the
date of settlement, over (b) the Base Value per share.

3.             Vesting of SARs.
The right to exercise the SARs shall vest in installments, and the SARs shall
be exercisable from time to time in whole or in part as to any vested
installment (“Vested SARs”), based upon the
Grantee’s “Continuous Service” (as defined below) to the Company and the
achievement by the Company of the performance milestones set forth below.  The SARs shall vest as follows:

(a)           If
the Company achieves all of the performance objectives set forth on Exhibit
A attached hereto for the twelve month period ending December 31, 2015, then
eighty percent (80%) of the Restricted Stock Units shall vest effective as of
December 31, 2015, 

provided that the Grantee shall have provided
Continuous Service to the Company through December 31, 2015.

(b)           If
the Company achieves all of the performance objectives set forth on Exhibit
A attached hereto for the twelve month period ending December 31, 2016, then
one hundred percent (100%) of the remaining unvested Restricted Stock Units
shall vest effective as of December 31, 2016, provided that the Grantee
shall have provided Continuous Service to the Company through December 31, 2016.

(c)           No additional SARs shall vest after the date of
termination of Optionee’s “Continuous Service” (as defined below), but Vested
SARs shall continue to be exercisable in accordance with Section 3 hereof
with respect to that number of SARs that have vested as of the date of
termination of Optionee’s Continuous Service.

(d)           As used herein, the term “Continuous Service” means (i) employment by either the Company
or any parent or subsidiary corporation of the Company, or by any successor
entity following a Change in Control, which is uninterrupted except for paid
vacations or paid sick days in accordance with Company policy, as applicable,
or (ii) service as a member of the Board of Directors of the Company until
Grantee resigns, is removed from office, or Grantee’s term of office expires
and he or she is not reelected.  Any
leave of absence or other time off work, whether or not approved by the
Company, shall result in a suspension of Grantee’s Continuous Service, and
during such time any SARs held by Grantee shall not vest unless provided
otherwise in writing by the Administrator. 
The Grantee’s Continuous Service shall not terminate merely because of a
change in the capacity in which the Grantee renders service to the Company or a
corporation or subsidiary corporation described in clause (i) above.  For example, a change in the Grantee’s status
from an employee to a Non-Employee Director will not constitute an interruption
of the Grantee’s Continuous Service, provided there is no interruption in the
Grantee’s performance of such services. 
Notwithstanding the foregoing, for any employee of a subsidiary of the
Company located outside the United States, such employee’s Continuous Service
shall be deemed terminated upon the commencement of such employee’s “garden
leave period,” “notice period,” or other similar period where such employee is
being compensated by such subsidiary but not actively providing service to such
subsidiary.

4.             Vesting Upon
Change in Control.

(a)           In the event of a Change in Control (as defined in the
Plan) of the Company, any surviving corporation or acquiring corporation (or
parent thereof) may assume the SARs or shall substitute similar awards
(including an award to acquire the same consideration paid to the stockholders
in such Change in Control). 
Notwithstanding the foregoing, if the Change in Control is not approved
by a majority of the Continuing Directors (as defined below), or if any
surviving corporation or acquiring corporation does not assume the SARs or
agree to substitute similar awards for the SARs covered by this Agreement, the
SARs shall fully vest and Grantee shall have the right to exercise such SARs
immediately prior to the consummation of such Change in Control.  If in connection with a Change in Control
approved by a majority of the Continuing Directors the acquiring or successor
entity (or parent thereof) provides for the continuance or assumption of this
Agreement or the substitution for this Agreement of a new agreement of
comparable value (“New Incentives”),
then vesting of the SARs shall not accelerate; provided, however,

 2
 

(i)            if
Grantee’s Continuous Service is terminated without Cause or pursuant to a
Constructive Termination (as defined below) within 12 months following such
Change in Control, the SARs or New Incentives shall accelerate and become fully
vested effective upon such termination; or

(ii)           if,
following a Change in Control, Grantee shall have provided Continuous Service
through December 31, 2015, then, whether or not the performance objectives set
forth in Exhibit A have been met, 80% of the Restricted Stock Units or
New Incentives shall vest on December 31, 2015, and if, following a Change in
Control, Grantee shall have provided Continuous Service through December 31,
2016, then, whether or not the performance objectives set forth in Exhibit A
have been met, 100% of the Restricted Stock Units or New Incentives shall vest
on December 31, 2016.

(b)           For purposes of this Section 4, the following terms shall
have the meanings set forth below:

(i)            “Cause”
means, with respect to a Grantee’s Continuous Service, the termination by the
Company of such Continuous Service for any of the following reasons: (a) The
continued, unreasonable refusal or omission by the Grantee to perform any
material duties required of him by the Company if such duties are consistent
with duties customary for the position held with the Company; (b) Any material
act or omission by the Grantee involving malfeasance or gross negligence in the
performance of Grantee’s duties to, or material deviation from any of the
policies or directives of, the Company; (c) Conduct on the part of Grantee
which constitutes the breach of any statutory or common law duty of loyalty to
the Company; including the unauthorized disclosure of material confidential
information or trade secrets of the Company; or (d) any illegal act by Grantee
which materially and adversely affects the business of the Company or any
felony committed by Grantee, as evidenced by conviction thereof, provided that
the Company may suspend Grantee with pay while any allegation of such illegal
or felonious act is investigated.  In the
event that the Grantee is a party to an employment agreement or other similar
agreement with the Company or any Affiliate that defines a termination on
account of “Cause” (or a term having similar meaning), such definition shall
apply as the definition of a termination on account of “Cause” for purposes
hereof, but only to the extent that such definition provides the Grantee with
greater rights.  A termination on account
of Cause shall be communicated by written notice to the Grantee, and shall be
deemed to occur on the date such notice is delivered to the Grantee.

(ii)           “Constructive
Termination” shall mean a termination of employment by Grantee
within sixty (60) days following the occurrence of any one or more of the
following events without the Grantee’s written consent (i) any reduction in
position, title, overall responsibilities, level of authority, level of
reporting, base compensation, annual incentive compensation opportunity,
aggregate employee benefits or (ii) a request that Grantee’s location of employment
be relocated by more than fifty (50) miles. 
In the event that the Grantee is a party to an employment agreement or
other similar agreement with the Company or any Affiliate (or a successor
entity) that defines a termination on account of “Constructive Termination,” “Good
Reason” or “Breach of Agreement” (or a term having a similar meaning), such
definition shall apply as the definition of “Constructive Termination” for
purposes hereof in lieu of the foregoing, but only to the extent that such
definition provides the Grantee with greater rights.  A Constructive Termination shall be
communicated by written notice to the Committee, and shall be deemed to occur
on the date such notice is delivered to the Committee, unless the circumstances
giving rise to the Constructive Termination are cured within five (5) days of
such notice.

 3
 

(iii)          “Continuing Director”
means any member of the Board of Directors of the Company who was a member of
the Board prior to the adoption of the Plan, and any person who is subsequently
elected to the Board if such person is recommended or approved by a majority of
the Continuing Directors.

5.             Term of SARs and
Limitations on Right to Exercise. 
The term of the SARs is a period of fifteen (15) years, expiring on the
fifteenth (15th)
anniversary of the Grant Date (the “Expiration Date”).  To the extent not previously exercised, the
SARs will lapse three months after the termination of the Grantee’s employment
with the Company for any reason.  The
Committee may, subject to Section 10(b) below, prior to the lapse of the SARs
under the circumstances described in this Section, extend the time to exercise
the SARs.  If the Grantee or his or her
beneficiary exercises a SAR after termination of employment, the SARs may be
exercised only with respect to the shares that were otherwise vested as of such
termination.

6.             Value and
Settlement of SARs.  The value due
upon exercise or settlement of the SARs is calculated as follows:  the number of SARs being exercised or
settled, times the excess, if any, of (i) the Fair Market Value of one
share of Stock on the date of exercise or settlement, over (ii) the Base
Value of the SAR.  Upon settlement of the
SARs, the related delivery of shares of Common Stock shall be subject to the
tax withholding provisions of Section 10. 
The value of any fractional shares of Common Stock shall be paid in cash
at the time certificates are delivered to Grantee in payment of the SARs.

7.             Dividend
Equivalents.  No dividend equivalent
rights shall attach to the SARs granted hereby.

8.             Adjustments to
SARs.  Upon or in contemplation of
any reclassification, recapitalization, stock split, reverse stock split or
stock dividend; any merger, combination, consolidation or other reorganization;
any split-up, spin-off, or similar extraordinary dividend distribution in
respect of the Common Stock (whether in the form of securities or property);
any exchange of Common Stock or other securities of the Company, or any
similar, unusual or extraordinary corporate transaction in respect of the
Common Stock; or a sale of substantially all the assets of the Company as an
entirety; then the Company shall, in such manner, make appropriate adjustments
in the number or terms of the SARs, as provided in Section 15 of the Plan.

9.             Limitation of
Rights.  The SARs do not confer to
Grantee or Grantee’s beneficiary any rights of a shareholder of the Company
unless and until shares of Stock are in fact issued to such person in
connection with the exercise of the SARs. 
Nothing in this Agreement shall interfere with or limit in any way the
right of the Company or any affiliate to terminate Grantee’s employment at any
time, nor confer upon Grantee any right to continue in the employment of the
Company or any affiliate.

10.           Income Tax
Matters.

(a)           In order to comply with all applicable federal or state
income tax laws or regulations, the Company may take such action as it deems
appropriate to ensure that all applicable federal or state payroll,
withholding, income or other taxes, which are the sole and absolute
responsibility of Grantee, are withheld or collected from Grantee.

 4
 

(b)           The Company shall reasonably determine the amount of any
federal, state, local or other income, employment, or other taxes which the
Company or any of its affiliates may reasonably be obligated to withhold with
respect to the grant, vesting, or other event with respect to the SARs.  The Company may, in its sole discretion,
withhold an amount from the proceeds of the SARs upon exercise or settlement
sufficient to satisfy the minimum amount of any such withholding obligations
that arise with respect to the vesting of such SARs.  The Company may take such action(s) without
notice to the Grantee, and the Grantee shall have no discretion as to the satisfaction
of tax withholding obligations in such manner. 
If, however, any withholding event occurs with respect to the SARs other
than upon the vesting of such SARs, or if the Company for any reason does not
satisfy the withholding obligations with respect to the vesting of the SARs as
provided above in this Section 10(b), the Company shall be entitled to
require a cash payment by or on behalf of the Grantee and/or to deduct from
other compensation payable to the Grantee the minimum amount of any such
withholding obligations.

(c)           The SARs evidenced by this Agreement, and the related
payments to Grantee in settlement of vested SARs, are intended to be taxed
under the provisions of Section 83 of the Internal Revenue Code of 1986, as
amended (the “Code”), and are not
intended to provide and do not provide for the deferral of compensation within
the meaning of Section 409A(d) of the Code. 
The Company reserves the right to amend this Agreement, without the
Grantee’s consent, to the extent it reasonably determines from time to time
that such amendment is necessary in order to achieve the purposes of this
Section.

11.           Notices.  All notices, requests, demands and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given and effective (i) when
delivered by hand, (ii) when otherwise delivered against receipt therefor,
or (iii) three (3) business days after being mailed if sent by registered
or certified mail, postage prepaid, return receipt requested.  Any notice shall be addressed to the parties
as follows or at such other address as a party may designate by notice given to
the other party in the manner set forth herein:

(a)           if to the Company:

Deckers Outdoor
Corporation

495-A South Fairview
Avenue

Goleta, California  93117

Attention:  Chief
Financial Officer

(b)           if to the Grantee, at the address shown on the signature
page of this Agreement or at his most recent address as shown in the employment
or stock records of the Company.

12.           Binding
Obligations.  All covenants and
agreements herein contained by or on behalf of any of the parties hereto shall
bind and inure to the benefit of the parties hereto and their permitted
successors and assigns.

13.           Captions and
Section Headings.  Captions and
section headings used herein are for convenience only, and are not part of this
Agreement and shall not be used in construing it.

14.           Amendment.  This Agreement may not be amended, waived,
discharged, or terminated other than by written agreement of the parties.

 5
 

15.           Entire Agreement.  This Agreement and the Plan constitute the
entire agreement between the parties with respect to the subject matter hereof
and supersede all prior or contemporaneous written or oral agreements and
understandings of the parties, either express or implied.

16.           Conflict of Provisions.  The terms contained in the Plan are
incorporated into and made a part of this Agreement and this Agreement shall be
governed by and construed in accordance with the Plan.  In the event of any actual or alleged
conflict between the provisions of the Plan and the provisions of this
Agreement, the provisions of the Plan shall be controlling and determinative.

17.           Assignment.  Grantee shall have no right, without the
prior written consent of the Company, to (i) sell, assign, mortgage, pledge or
otherwise transfer any interest or right created hereby, or (ii) delegate his
or her duties or obligations under this Agreement.  This Agreement is made solely for the benefit
of the parties hereto, and no other person, partnership, association or
corporation shall acquire or have any right under or by virtue of this
Agreement.

18.           “Market Stand-Off”
Agreement.  Grantee agrees that, if
requested by the Company or the managing underwriter of any proposed public
offering of the Company’s securities (including any acquisition transaction
where Company securities will be used as all or part of the purchase price),
Grantee will not sell or otherwise transfer or dispose of any SARs held by
Grantee without the prior written consent of the Company or such underwriter,
as the case may be, during such period of time, not to exceed 180 days
following the effective date of the registration statement filed by the Company
with respect to such offering, as the Company or the underwriter may specify.

19.           Severability.  Should any provision or portion of this
Agreement be held to be unenforceable or invalid for any reason, the remaining
provisions and portions of this Agreement shall be unaffected by such holding.

20.           Applicable Law.  This Agreement shall be construed in
accordance with the laws of the State of California without reference to choice
of law principles, as to all matters, including, but not limited to, matters of
validity, construction, effect or performance.

21.           No Agreement to
Employ. Nothing in this Agreement shall affect any right with respect to
continuance of employment by the Company or any of its subsidiaries.  The right of the Company or any of its
subsidiaries to terminate at will the Grantee’s employment at any time (whether
by dismissal, discharge or otherwise), with or without cause, is specifically
reserved, subject to any other written employment agreement to which the
Company and Grantee may be a party.

22.           Attorneys’ Fees.  If any party shall bring an action in law or
equity against another to enforce or interpret any of the terms, covenants and
provisions of this Agreement, the prevailing party in such action shall be
entitled to recover reasonable attorneys’ fees and costs.

23.           Counterparts.  This Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one agreement and
any party hereto may execute this Agreement by signing any such
counterpart.  This Agreement shall be
binding upon Grantee and the Company at such time as the Agreement, in
counterpart or otherwise, is executed by Grantee and the Company.

[Signature Page Follows]

 6

IN
WITNESS WHEREOF, the parties hereto have executed this Stock Appreciation
Rights Award Agreement as of the date first above written.

	
  THE COMPANY:

  	
   

  	
  GRANTEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DECKERS
  OUTDOOR CORPORATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Print
  Name)

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]