FOSSIL INC
EXHIBIT 10.25
<DOCUMENT>
<TYPE>EX-10.25
<SEQUENCE>6
<FILENAME>a2168053zex-10_25.htm
<DESCRIPTION>EXHIBIT 10.25
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="page_mr1030_1_1"> </A> </FONT> <FONT SIZE=2><B>EXHIBIT 10.25  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>November&nbsp;9,
2005 </FONT></P>

<P><FONT SIZE=2>Mr.&nbsp;Mark
D. Quick<BR>
2280 N. Greenville Avenue<BR>
Richardson, Texas 75082 </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>Re:</FONT></DT><DD><FONT SIZE=2>Award
Agreements under the 1993 and 2004 Long Term Incentive Plans of Fossil,&nbsp;Inc. (the "Plans") </FONT></DD></DL>

<P><FONT SIZE=2>Dear
Mark: </FONT></P>

<P><FONT SIZE=2>This
Letter Agreement shall confirm our mutual understanding and intent regarding certain stock options granted to you pursuant to certain Award Agreements under the Plans consisting of (i)&nbsp;the
Award Agreement dated January&nbsp;1, 2002 ("2002 Award"), and (ii)&nbsp;the Award Agreements granted to you after 2002 ("Post 2002 Awards") (collectively, "Awards"). By signing this letter, you
agree that the Awards were granted in the manner expressly set forth in this Letter Agreement. </FONT></P>

<P><FONT SIZE=2>All
of the Awards provide certain special rights and benefits (described below) upon your "Retirement", which for all purposes of this Letter Agreement, means your termination of full time employment
with Fossil&nbsp;Inc. and its subsidiaries and related companies (the "Company") on the date ("Retirement Date") you set forth in an Effective Retirement Notice (as hereafter defined.) All of the
Awards provide that an "Effective Retirement Notice" is one which satisfies all of the following conditions: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>is
in writing and addressed to the CEO and Compensation Committee;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>is
delivered to the General Counsel of the Company after you have attained the age of fifty seven (57); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(3)</FONT></DT><DD><FONT SIZE=2>specifies
a Retirement Date that is not earlier than the first anniversary of the date it is delivered to the General Counsel. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>Without
limiting the generality of the forgoing, if your full time employment with the Company terminates for any reason on any date other than your Retirement Date, your termination will not be a
Retirement, and your rights, duties and obligations under the Awards will be unaffected by the terms set forth in this Letter Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Awards further provide as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2002 Award.</B></FONT><FONT SIZE=2> The 2002 Award provides that upon your Retirement, you will be entitled to exercise 100% of your 2002 Award
(including, without limitation, otherwise nonvested options) for a period of 90&nbsp;days following your Retirement Date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Post 2002 Awards.</B></FONT><FONT SIZE=2> The Post 2002 Awards (including, without limitation, Awards not yet granted unless they expressly
provide to the contrary) provide that upon your Retirement (i)&nbsp;such Post 2002 Awards will continue to vest as though you continued to be employed after your Retirement Date, and
(ii)&nbsp;such Post 2002 Awards may be exercised (a)&nbsp;in the case of options which were vested on your Retirement Date, at any time prior to the first anniversary of your Retirement Date, and
(b)&nbsp;in the case of each option which becomes vested after your Retirement Date, at any time prior to the first anniversary of such option's vesting date. </FONT></P>

<P><FONT SIZE=2>Any
options under Award Agreements not timely exercised in accordance with the terms of this Letter Agreement or the respective Award Agreement, as applicable, shall terminate and be of no further
force or effect. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=1,EFW="2168053",CP="FOSSIL, INC.",DN="6",CHK=690981,FOLIO='1',FILE='DISK121:[06DFW0.06DFW1030]MR1030A.;4',USER='DCUSHIN',CD=';7-MAR-2006;11:03' -->
<A NAME="page_mr1030_1_2"> </A>
<BR>

<P><FONT SIZE=2>This
Letter Agreement supercedes any and all prior written or verbal agreements between you and the Company pertaining to the subject matter herein, and may only be amended in a writing signed by both
parties. Except as specifically provided for herein, all other terms and conditions of the Award Agreements shall remain unchanged and in full force and effect. Notwithstanding anything in this Letter
Agreement to the contrary, the provisions of this Letter Agreement pertaining to the 2002 Award and Post 2002 Awards shall be superceded by any contrary provisions regarding accelerated vesting
included in any future Company amendments to awards made under the Plans pertaining to executive officers. Without limiting the generality of the forgoing, this Letter Agreement shall have no force or
effect on the terms of any grants to you under the Company's Restricted Stock Plan, but shall apply only to the Awards as described herein. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Sincerely,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
Fossil,&nbsp;Inc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>/s/ Kosta N. Kartsotis</FONT><HR NOSHADE><FONT SIZE=2> Kosta N. Kartsotis<BR>
President and CEO</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
Agreed and accepted:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
/s/ Mark D. Quick</FONT><HR NOSHADE><FONT SIZE=2> Mark D. Quick</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP"><FONT SIZE=2><BR>
Date:</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="39%" VALIGN="TOP"><BR><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
<!-- ZEQ.=2,SEQ=2,EFW="2168053",CP="FOSSIL, INC.",DN="6",CHK=1043106,FOLIO='2',FILE='DISK121:[06DFW0.06DFW1030]MR1030A.;4',USER='DCUSHIN',CD=';7-MAR-2006;11:03' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<!-- SEQ=,FILE='QUICKLINK',USER=LHOUSE,SEQ=,EFW="2168053",CP="FOSSIL, INC.",DN="6" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
