<PAGE>

                                                                   Exhibit 10.13

                               (QUIKSILVER LOGO)

                               December 22, 2006

PERSONAL AND CONFIDENTIAL

David Morgan
Executive Vice President, Global Finance and Operations
c/o Quiksilver, Inc.
15202 Graham Street
Huntington Beach, California 92649

Re: Employment at Quiksilver, Inc.

Dear David:

          This letter ("Agreement") will confirm our understanding and agreement
regarding your continued employment with Quiksilver, Inc. ("Quiksilver" or the
"Company"). This Agreement is effective as of November 1, 2006, and completely
supersedes and replaces any existing or previous oral or written understandings
or agreements, express or implied, between you and the Company regarding your
employment.

          1.   Position; Exclusivity. The Company hereby agrees to employ you as
               its Executive Vice President, Global Finance and Operations,
               reporting to the President or Chief Executive Officer, or their
               designee. During your employment with Quiksilver, you will devote
               your full professional and business time, interest, abilities and
               energies to the Company and will not render any services to any
               other person or entity, whether for compensation or otherwise, or
               engage in any business activities competitive with or adverse to
               the Company's business or welfare, whether alone, as an employee,
               as a partner, as a member, or as a shareholder, officer or
               director of any other corporation, or as a trustee, fiduciary or
               in any other similar representative capacity of any other entity.

          2.   Base Salary. Your base salary will be $39,583 per month ($475,000
               on an annualized basis), less applicable withholdings and
               deductions, paid on the Company's regular payroll dates. Your
               salary will be reviewed at the time management salaries are
               reviewed periodically and may be adjusted (but not below $39,583
               per month) at the Company's discretion in light of the Company's
               performance, your performance, market conditions and other
               factors deemed relevant by the Company.


                                      -1-

<PAGE>

          3.   Bonus. For the fiscal year ending October 31, 2007 and each
               fiscal year thereafter, you shall be eligible to receive a
               discretionary bonus under the terms approved by the Board of
               Directors for such bonus. Any such bonus shall be paid within
               thirty (30) days following the date the Company publicly releases
               its annual audited financial statements (the "Bonus Payment
               Date"). In the event that your employment with the Company
               terminates prior to the end of the applicable fiscal year, your
               eligibility to receive a pro rata portion of the bonus is
               governed by Paragraph 9 below. Any bonus payments shall be less
               applicable withholdings and deductions.

          4.   Vacation. Since Quiksilver does not have a vacation policy for
               executives of your level, no vacation days will be treated as
               earned or accrued.

          5.   Health and Disability Insurance. You (and any eligible dependents
               you elect) will be covered by the Company's group health
               insurance programs on the same terms and conditions applicable to
               comparable employees. You will also be covered by the long-term
               disability plan for senior executives on the same terms and
               conditions applicable to comparable employees. The Company
               reserves the right to change, modify, or eliminate such coverages
               in its discretion.

          6.   Clothing Allowance. You will be provided a clothing allowance of
               $4,000 per year at the Company's wholesale prices.

          7.   Stock Options. You shall continue to be a participant in
               Quiksilver's Stock Incentive Plan, or any successor equity plan.
               The amount and terms of any restricted stock, stock options,
               stock appreciation rights or other interests to be granted to you
               will be determined by the Board of Directors in its discretion
               and covered in separate agreements, but shall be substantially
               similar to those granted to other senior executives of Quiksilver
               of equivalent level. Stock options granted to you after the date
               hereof through the termination of your employment shall provide
               that if you are terminated by the Company without Cause (as
               hereinafter defined), as a result of your death or permanent
               disability, or you terminate your employment for Good Reason (as
               hereinafter defined), any such options outstanding will
               automatically vest in full on an accelerated basis so that the
               options will immediately prior to such termination become
               exercisable for all option shares and remain exercisable until
               the earlier to occur of (i) the first anniversary of such
               termination, (ii) the end of the option term, or (iii)
               termination pursuant to other provisions of the applicable option
               plan or agreement (e.g., a corporate transaction).

          8.   Life Insurance. The Company will pay the premium on a term life
               insurance policy on your life with a company and policy of our
               choice, and a beneficiary of your choice, in the face amount
               determined by the Company of not less than $2,000,000. Our
               obligation to obtain and maintain this insurance is


                                      -2-

<PAGE>

               contingent upon your establishing and maintaining insurability,
               and we are not required to pay premiums for such a policy in
               excess of $5,000 annually.

          9.   Unspecified Term; At Will Employment; Termination.

               (a) Notwithstanding anything to the contrary in this Agreement or
               in your prior employment relationship with the Company, express
               or implied, your employment is for an unspecified term and either
               you or Quiksilver may terminate your employment at will and with
               or without Cause (as defined below) or notice at any time for any
               reason; provided, however, that you agree to provide the Company
               with thirty (30) days advance written notice of your resignation
               (during which time the Company may elect, in its discretion, to
               relieve you of all duties and responsibilities). This at-will
               aspect of your employment relationship can only be changed by an
               individualized written agreement signed by both you and an
               authorized officer of the Company.

               (b) The Company may also terminate your employment immediately,
               without notice, for Cause, which shall include, but not be
               limited to, (i) your death, (ii) your permanent disability which
               renders you unable to perform your duties and responsibilities
               for a period in excess of three consecutive months, (iii) willful
               misconduct in the performance of your duties, (iv) commission of
               a felony or violation of law involving moral turpitude or
               dishonesty, (v) self-dealing, (vi) willful breach of duty, (vii)
               habitual neglect of duty, or (viii) a material breach by you of
               your obligations under this Agreement. If the Company terminates
               your employment for Cause, or you terminate your employment other
               than for Good Reason (as defined below), you (or your estate or
               beneficiaries in the case of your death) shall receive your base
               salary and other benefits earned and accrued prior to the
               termination of your employment and, in the case of a termination
               pursuant to subparagraphs (i) or (ii) only, a pro rata portion of
               your bonus, if any, as provided in Paragraph 3 for the fiscal
               year in which such termination occurs, less applicable
               withholdings and deductions, and you shall have no further rights
               to any other compensation or benefits hereunder on or after the
               termination of your employment.

               (c) If Quiksilver elects to terminate your employment without
               Cause, or if you terminate your employment with the Company for
               Good Reason within six (6) months of the action constituting Good
               Reason, the Company will (i) continue to pay your base salary
               (but not any employment benefits) on its regular payroll dates
               for a period of eighteen (18) months, (ii) pay you a pro rata
               portion of a bonus adopted pursuant to Paragraph 3, if any, for
               the fiscal year in which such termination occurs, less applicable
               withholdings and deductions, and (iii) pay you an amount equal to
               two (2) times the average annual bonus earned by you pursuant to
               Paragraph 3 during the two (2) most recently completed fiscal
               years of the Company, payable over an eighteen (18) month period
               following


                                      -3-

<PAGE>

               termination in equal installments on the Company's regular
               payroll dates, less applicable withholdings and deductions.
               Notwithstanding the foregoing, if such termination without Cause
               or for Good Reason occurs within twelve (12) months immediately
               following a Change of Control (as defined in Addendum "A"), the
               Company will instead (i) continue to pay your base salary (but
               not any employment benefits) on its regular payroll dates for a
               period of twenty-four (24) months, (ii) pay you a pro rata
               portion of a bonus, if any, for the fiscal year in which such
               termination occurs, less applicable withholdings and deductions,
               and (iii) pay you an amount equal to two (2) times the average
               annual bonus earned by you pursuant to Paragraph 3 during the two
               (2) most recently completed fiscal years of the Company, payable
               over a twenty-four (24) month period following termination in
               equal installments on the Company's regular payroll dates, less
               applicable withholdings and deductions. In order for you to be
               eligible to receive the payments specified in this Paragraph
               9(c), you must execute a general release of claims in a form
               reasonably acceptable to the Company. You shall have no further
               rights to any other compensation or benefits hereunder on or
               after the termination of your employment. You shall not have a
               duty to seek substitute employment, and the Company shall not
               have the right to offset any compensation due you against any
               compensation or income received by you after the date of such
               termination.

               "Good Reason" for you to terminate employment means a voluntary
               termination as a result of (i) the assignment to you of duties
               materially inconsistent with your position as set forth above
               without your consent, (ii) a material change in your reporting
               level from that set forth in this Agreement without your consent,
               (iii) a material diminution of your authority without your
               consent, (iv) a material breach by the Company of its obligations
               under this Agreement, (v) a failure by the Company to obtain from
               any successor, before the succession takes place, an agreement to
               assume and perform the obligations contained in this Agreement,
               or (vi) the Company requiring you to be based (other than
               temporarily) at any office or location outside of the Southern
               California area without your consent. Notwithstanding the
               foregoing, Good Reason shall not exist unless you provide the
               Company notice of termination on account thereof and, if such
               event or condition is curable, the Company fails to cure such
               event or condition within thirty (30) days of such notice.

               (d) In the event that any payment or benefit received or to be
               received by you (collectively, the "Payments") would constitute a
               parachute payment within the meaning of Section 280G of the
               Internal Revenue Code of 1986, as amended (the "Code"), then the
               following limitation shall apply:

               The aggregate present value of those Payments shall be limited in
               amount to the greater of the following dollar amounts (the
               "Benefit


                                      -4-

<PAGE>

               Limit"):

               (i) 2.99 times your Average Compensation (as defined below), or

               (ii) the amount which yields you the greatest after-tax amount of
               Payments under this Agreement after taking into account any
               excise tax imposed under Code Section 4999 on those Payments.

               The present value of the Payments will be measured as of the date
               of the Change in Control and determined in accordance with the
               provisions of Code Section 280G(d)(4).

               Average Compensation means the average of your W-2 wages from the
               Company for the five (5) calendar years completed immediately
               prior to the calendar year in which the Change in Control is
               effected. Any W-2 wages for a partial year of employment will be
               annualized, in accordance with the frequency which such wages are
               paid during such partial year, before inclusion in Average
               Compensation.

               (e) Notwithstanding the foregoing, to the extent the Company
               reasonably determines that any payment or benefit under this
               Agreement is subject to Section 409A of the Code, such payment or
               benefit shall be made at such times and in such forms as the
               Company reasonably determines are required to comply with Code
               Section 409A (including, without limitation, in the case of a
               "specified employee" within the meaning of Code Section 409A, any
               payments that would otherwise be made during the six-month period
               following separation of service will be paid in a lump sum after
               the end of the six-month period) and the Treasury Regulations and
               the transitional relief thereunder; provided, however, that in no
               event will the Company be required to provide you with any
               additional payment or benefit in the event that any of your
               payments or benefits trigger additional income tax under Code
               Section 409A or in the event that the Company changes the time or
               form of your payments or benefits in accordance with this
               paragraph.

          10.  Trade Secrets; Confidential and/or Proprietary Information. The
               Company owns certain trade secrets and other confidential and/or
               proprietary information which constitute valuable property
               rights, which it has developed through a substantial expenditure
               of time and money, which are and will continue to be utilized in
               the Company's business and which are not generally known in the
               trade. This proprietary information includes the list of names of
               the customers and suppliers of Quiksilver, and other
               particularized information concerning the products, finances,
               processes, material preferences, fabrics, designs, material
               sources, pricing information, production schedules, sales and
               marketing strategies, sales commission formulae, merchandising
               strategies, order forms and other types of proprietary
               information relating to our products, customers and suppliers.
               You agree that you will not disclose and will keep strictly
               secret and


                                      -5-

<PAGE>

               confidential all trade secrets and proprietary information of the
               Company, including, but not limited to, those items specifically
               mentioned above.

          11.  Expense Reimbursement. The Company will reimburse you for
               documented reasonable and necessary business expenses incurred by
               you while engaged in business activities for the Company's
               benefit on such terms and conditions as shall be generally
               available to other executives of the Company.

          12.  Compliance With Business Policies. You will devote your full
               business time and attention to Quiksilver and will not be
               involved in other business ventures without written authorization
               from the Company's Board of Directors. You will be required to
               observe the Company's personnel and business policies and
               procedures as they are in effect from time to time. In the event
               of any conflicts, the terms of this Agreement will control.

          13.  Entire Agreement. This Agreement, its addenda, and any stock
               option agreements the Company may enter into with you contain the
               entire integrated agreement between us regarding these issues,
               and no modification or amendment to this Agreement will be valid
               unless set forth in writing and signed by both you and an
               authorized officer of the Company.

          14.  Arbitration as Exclusive Remedy. To the fullest extent allowed by
               law, any controversy, claim or dispute between you and the
               Company (and/or any of its affiliates, owners, shareholders,
               directors, officers, employees, volunteers or agents) relating to
               or arising out of your employment or the cessation of that
               employment will be submitted to final and binding arbitration in
               Orange County, California, for determination in accordance with
               the American Arbitration Association's ("AAA") Employment
               Arbitration Rules, as the exclusive remedy for such controversy,
               claim or dispute. In any such arbitration, the parties may
               conduct discovery to the same extent as would be permitted in a
               court of law. The arbitrator shall issue a written decision, and
               shall have full authority to award all remedies which would be
               available in court. The Company shall pay the arbitrator's fees
               and any AAA administrative expenses. Any judgment upon the award
               rendered by the arbitrator(s) may be entered in any court having
               jurisdiction thereof. Possible disputes covered by the above
               include (but are not limited to) unpaid wages, breach of
               contract, torts, violation of public policy, discrimination,
               harassment, or any other employment-related claims under laws
               including but not limited to, Title VII of the Civil Rights Act
               of 1964, the Americans With Disabilities Act, the Age
               Discrimination in Employment Act, the California Fair Employment
               and Housing Act, the California Labor Code and any other statutes
               or laws relating to an employee's relationship with his/her
               employer, regardless of whether such dispute is initiated by the
               employee or the Company. Thus, this bilateral arbitration
               agreement fully applies to any and all claims that the Company
               may have against you, including (but not limited to) claims for
               misappropriation of Company property, disclosure of proprietary
               information or trade secrets, interference


                                      -6-

<PAGE>

               with contract, trade libel, gross negligence, or any other claim
               for alleged wrongful conduct or breach of the duty of loyalty.
               Nevertheless, claims for workers' compensation benefits or
               unemployment insurance, those arising under the National Labor
               Relations Act, and any other claims where mandatory arbitration
               is prohibited by law, are not covered by this arbitration
               agreement, and such claims may be presented by either the Company
               or you to the appropriate court or government agency. BY AGREEING
               TO THIS BINDING ARBITRATION PROVISION, BOTH YOU AND THE COMPANY
               GIVE UP ALL RIGHTS TO TRIAL BY JURY. This mutual arbitration
               agreement is to be construed as broadly as is permissible under
               applicable law.

          15.  Successors and Assigns. This Agreement will be assignable by the
               Company to any successor or to any other company owned or
               controlled by the Company, and will be binding upon any successor
               to the business of the Company, whether direct or indirect, by
               purchase of securities, merger, consolidation, purchase of all or
               substantially all of the assets of the Company or otherwise.

Please sign, date and return the enclosed copy of this letter to me for our
files to acknowledge your agreement with the above.

                                        Very truly yours,


                                        ----------------------------------------
                                        Charles Exon
                                        Executive Vice President, General
                                        Counsel and Secretary


Enclosure

ACKNOWLEDGED AND AGREED:


-------------------------------------
David Morgan

Date Effective: December 22, 2006


                                      -7-

<PAGE>

                                   ADDENDUM A

                         DEFINITION OF CHANGE IN CONTROL

          "Change in Control" means the occurrence of one or more of the
following events: (i) any corporation, partnership, person, other entity, or
group (as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended) (collectively, a "Person") acquires shares of capital stock of the
Company representing more than 50% of the total number of shares of capital
stock that may be voted for the election of directors of the Company, (ii) a
merger, consolidation, or other business combination of the Company with or into
another Person is consummated, or all or substantially all of the assets of the
Company are acquired by another Person, as a result of which the stockholders of
the Company immediately prior to the consummation of such transaction own,
immediately after consummation of such transaction equity securities possessing
less than 50% of the voting power of the surviving or acquiring Person (or any
Person in control of the surviving or acquiring Person, the equity securities of
which are issued or transferred in such transaction), or (iii) the stockholders
of the Company approve a plan of complete liquidation, dissolution or winding up
of the Company.


                                  -Addendum A-