Document:

Exhibit 10.1

 

AMENDMENT TO

SENIOR EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS AMENDMENT TO SENIOR
EXECUTIVE EMPLOYMENT AGREEMENT (this “Amendment”) is made as of February 28,
2008, by and between Deckers Outdoor Corporation, a Delaware corporation (the “Company”),
and
                
(the “Executive”) and is effective as of January 1, 2008.

 

RECITALS

 

WHEREAS, the Company and
Executive are parties to that certain Senior Executive Employment Agreement
dated as 

of
                              
(the “Agreement”); and

 

WHEREAS, the Company and
Executive have agreed to enter into this Amendment to amend the Agreement on
the terms and conditions set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants set forth herein, the parties
hereto agree that the Agreement shall be amended as follows:

 

1.             Section 1.3.  Section 1.3 shall be amended and
restated to read, in its entirety, as follows:

 

“1.3         TERM. The term of the Executive’s employment under this Agreement will commence on the effective date of this Agreement as first written above and will continue, unless sooner terminated, until December 31, 2009. Employment of the Executive is at will and will continue until such time as written notice of termination is given by the Company or written notice is given by the Executive.”
 

2.             Section 2.1.  Section 2.1 shall be amended and
restated to read, in its entirety, as follows:

 

“2.1         BASE SALARY. Effective as of January 1,
2008, the Company will pay to the Executive an annual base salary of
                                            
Dollars
($                  )
to be paid in equal installments in accordance with the Company’s general
payment policies in effect during the term hereof (the “Base Salary”).
Executive’s annual base salary may be reviewed prior to December 31, 2008
and appropriate increases to salary implemented. If Executive’s annual base
salary is not revised effective January 1, 2009, then Executive’s then
existing salary will continue on a monthly basis until changed. This provision
does not alter the at-will nature of Executive’s employment or the provisions
of Articles III and IV below.”

 

3.             Section 4.3.  Subsection (f) or Section 4.3 shall
be amended and restated to read, in its entirety, as follows:

 

“(f)          pay the Executive severance,
commencing on the thirtieth (30th) day following the termination
date, of twelve (12) monthly payments equal to  one-twelfth (1/12th) of the
Executive’s Annual Base Salary in effect immediately prior to the time such
termination occurs.  Severance will be
mitigated on a dollar for dollar basis for any income received by Executive for
duties performed for Company or any third party during the twelve (12) months
following termination.  The severance
payment required under this subsection shall be conditioned upon the Executive
confirming the release in Section 5.2 hereof; and”

 

 

4.             No Other Changes.  Except as expressly modified by this
Amendment, all terms of the Agreement shall remain in full force and effect.

 

5.             Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed and delivered will be deemed an
original and all of which together shall constitute one and the same
instrument.

 

IN
WITNESS WHEREOF, the parties have executed this Amendment to Senior Executive
Employment Agreement as of the date first above written.

	
   

  	
   

  	
   

  
	
   

  	
  THE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  DECKERS OUTDOOR
  CORPORATION

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  	
   

  

 

2Exhibit 10.1

 

Credence Systems Corporation

2008 Executive Incentive Plan

 

I. INTRODUCTION

 

a. The Objective of the 2008 Executive Incentive Plan (the “Plan”) is
to (i) enhance stockholder value by promoting strong linkages between
employee contributions and company performance; (ii) support achievement
of the business objectives of Credence Systems Corporation (the “Company”); and
(iii) promote retention of participating employees of the Company.

 

b. Participants: This plan
applies solely to the President & CEO and the senior executives
reporting directly to the CEO of Credence Systems Corporation.

 

c. Effective Date: This
Plan is effective for the fiscal year 2008, beginning November 4, 2007
through November 1, 2008.  This Plan
is limited in time and expires automatically on November 1, 2008.  All benefits under this Plan are voluntary
benefits.  Participation in this Plan
during fiscal year 2008 does not convey any entitlement to participate in this
or future plans or to the same or similar bonus payment benefits.

 

d. Changes in the Plan: The
Company presently has no plans to change the Plan during the fiscal year.
However, the Plan is a voluntary benefit provided by the Company and by virtue
of the fact that bonuses are not a contractual entitlement and are paid at the
sole discretion of the Company, the Company reserves the right to modify the
Plan, in total or in part, at any time. 
Any such change must be in writing and approved by the Board of
Directors.  The Board of Directors
reserve the right to interpret the Plan document as needed and such
interpretations will be final, conclusive and binding on all persons, and will
be given the maximum deference permitted by law.

 

e. Entire Agreement: This
Plan is the entire agreement between the Company and the employee regarding the
subject matter of this Plan and supersedes all prior bonus or commission
incentive plans, whether with Credence or any subsidiary or affiliate thereof,
or any written or verbal representations regarding the subject matter of this
Plan.

 

 

II. ELIGIBILITY AND INCENTIVE PLAN ELEMENTS

 

a. Eligibility: The
participants are eligible for the incentive payout if they meet the following
requirements:

 

·                  Except
as otherwise explicitly set forth in the Participant’s Incentive Target
Percentage Schedule (as defined in Section II.c below), are not currently
on a sales incentive or commission plan or any other significant form of
variable compensation (such as a services bonus plan)

 

·                  Have
a performance rating of Meets Expectations or above 

 

·                  Do
not have a performance rating of Needs Development or lower at the time of
calculation 

 

·                  Are
not on a performance improvement plan at the time of calculation 

 

·                  Have
not received a written notice of warning or other disciplinary action during
the year that remains in effect at the time of calculation 

 

AND

 

The participant must be employed in an incentive-eligible position on
or before the first working day of the last fiscal quarter of fiscal year 2008
and must be employed by the Company on the day the bonus is paid to be eligible
for a 2008 incentive payment. Participants may expect to receive their 2008
incentive payment on or about the end of January 2009.  In no event will any individual accrue any
right or entitlement to any incentive under this Plan unless that individual is

 

 

 

employed by the Company on the day the bonus is paid.  Any exception to the above must be approved in
writing by the Company’s Compensation Committee.

 

b. Annual Earnings through
the end of the fiscal year represents the basis for the incentive
calculation.  Nothing in the Plan, or
arising as a result of a Participant’s participation in the Plan, will prevent
the Company from changing a Participant’s annual base salary at any time based
on such factors as the Company in its sole discretion determines appropriate.

 

c. Incentive Target Percentage is
a percentage level of base salary determined by the employee’s position. These
targets will be weighted by company and individual performance, and will be set
forth in an Incentive Target Percentage Schedule for each Participant in
substantially the form attached hereto as Schedule A.

 

d. Individual Performance Factor is
based upon the manager’s evaluation of performance and contribution for the
fiscal year.  As a Factor to the incentive
target for the position, this factor can range from 0 to 150%.

 

e. Credence Systems Corporation
Performance Factor is based upon the Company achieving an
established worldwide revenue target and a worldwide operating income target
per the 2008 operating plan approved by the Board of Directors of the Company.
The applicable targets for fiscal year 2008 can be amended by the Board of
Directors at any time during the fiscal year. Notwithstanding anything to the
contrary contained herein, the Board of Directors has the discretion to
determine to pay less than the full amount (including to pay zero percent) of
the payout to which any Participant would otherwise be entitled, which
determination will be based upon such factors as the Board of Directors
determines appropriate (including without limitation as a result of the Company’s
or a Participant’s failing to achieve one or more objectives with respect to
the fiscal year).  When the Revenue and Operating
Income percentages fall between the stated percentages on the matrix, the
Performance Factor will be determined using a straight-line interpolation
approach. If the Company exceeds 120% of Revenue and/or Operating Income, the
Board of Directors, at its sole discretion, will determine what, if any,
additional amounts may be paid to Plan participants.  The Company must exceed 80% of both the
revenue and operating income target for any incentive payment.  The Company Performance factor may be
modified at the sole discretion of the Board of Directors in the event of an extraordinary
or exceptional circumstance.

 

 

Company Performance Factor

 

	
  Company

  Revenue

  Target

  	
   

  	
   

  	
   

  	
  Company

  Operating

  Income

  Target

  	
   

  	
   

  
	
  % of Target

  	
   

  	
  Payout

  	
   

  	
  % of Target

  	
   

  	
  Payout

  
	
  120%

  	
   

  	
  100%

  	
   

  	
  120%

  	
   

  	
  100%

  
	
  110%

  	
   

  	
  90%

  	
   

  	
  110%

  	
   

  	
  90%

  
	
  105%

  	
   

  	
  85%

  	
   

  	
  105%

  	
   

  	
  85%

  
	
  100%

  	
   

  	
  80%

  	
   

  	
  100%

  	
   

  	
  80%

  
	
  95%

  	
   

  	
  75%

  	
   

  	
  95%

  	
   

  	
  75%

  
	
  90%

  	
   

  	
  50%

  	
   

  	
  90%

  	
   

  	
  50%

  
	
  85%

  	
   

  	
  25%

  	
   

  	
  85%

  	
   

  	
  25%

  
	
  80%

  	
   

  	
  0%

  	
   

  	
  80%

  	
   

  	
  0%

  

 

 

 

Example:                                         Credence Systems Corporation
Performance

Actual
Revenue is 110% of Goal

Actual
Operating Income is 120% of Goal

 

Credence Systems Corporation Performance Factor =
..5(90%) + .5(100%) = 95%

 

 

f. Transfers and Terminations: Any
employee who is a participant in the Plan and who transfers to a new position
not governed by this Plan will be eligible on a pro-rata basis for the
applicable period and paid as defined by the Plan. Employees who transfer into
the Plan from another plan will be subject to proration as well, and
consequently will be eligible to receive an incentive payment prorated for the
time they participate in this Plan during fiscal year 2008. Payments from the
Plan are subject to reduction by advances, unearned commission advances, draws
or prorations and appropriate withholdings. Any exceptions to the Plan must be
in writing and approved by the Board of Directors.

 

A participant must be employed as of the day the bonus is paid to be
eligible for any incentive payment. If an employee terminates prior to the date
the bonus is paid, the employee will not be eligible for such incentive
payment.

 

 

III. PRACTICES AND PROCEDURES

 

a. Procedure:

 

·                  A
copy of the Plan will be made available to each participant. 

 

·                  All
incentive payments will be made after all required or elected withholdings have
been deducted. 

 

b. Governing
Law: This Plan is governed by the law of California and the parties
hereby submit to the exclusive jurisdiction of the County of Santa Clara,
California courts.

 

 

 

SCHEDULE
A

 

INCENTIVE TARGET PERCENTAGE SCHEDULE

 

 

	
  Position

  	
   

  	
  Target

  	
   

  	
  Company 

  Performance

  	
   

  	
  Individual 

  Performance

  	
   

  
	
  SVP, WW Field Operations

  	
   

  	
  0.60

  	
   

  	
  0.8

  	
   

  	
  0.2

  	
   

  
	
  SVP, R&D

  	
   

  	
  0.60

  	
   

  	
  0.8

  	
   

  	
  0.2

  	
   

  
	
  VP, Business Operations

  	
   

  	
  0.60

  	
   

  	
  0.8

  	
   

  	
  0.2

  	
   

  
	
  CFO

  	
   

  	
  0.60

  	
   

  	
  0.8

  	
   

  	
  0.2

  	
   

  
	
  SVP, Manufacturing Ops

  	
   

  	
  0.60

  	
   

  	
  0.8

  	
   

  	
  0.2

  	
   

  
	
  President & CEO

  	
   

  	
  1.00

  	
   

  	
  0.8

  	
   

  	
  0.2

  	
   

  
	
  SVP & General Counsel

  	
   

  	
  0.60

  	
   

  	
  0.8

  	
   

  	
  0.2

  	
   

  
	
  VP, Human Resources

  	
   

  	
  0.60

  	
   

  	
  0.8

  	
   

  	
  0.2

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