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                                                                   EXHIBIT 10.21
                                                                  
                                                                   April 1, 1995



PERSONAL AND CONFIDENTIAL
-------------------------


Mr. Robert B. McKnight, Jr.
Quiksilver, Inc.
1740 Monrovia Avenue
Costa Mesa, CA  92627

         Re:     Employment at Quiksilver
                 ------------------------

Dear Bob,

         This letter will confirm our understanding regarding your continued
employment at Quiksilver, Inc. ("Quiksilver" or the "Company"), and completely
supersedes and replaces any existing or previous understandings or agreements,
express or implied, we have had.  The terms contained in this letter are
effective on and after April 1, 1995.

         1.      Your position will be Chief Executive Officer, reporting to
                 the Board of Directors of the Company.

         2.      Your base salary will be $29,167 per month, 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 (up or down) at the Company's discretion in light of
                 the Company's performance, your performance, market conditions
                 and other factors deemed relevant by the Company.

         3.      For Quiksilver's fiscal year ("FY") 1994-1995 (ending October
                 31, 1995), you are eligible for a bonus.  The bonus amount for
                 which you are eligible, and the criteria on which the bonus is
                 based, is attached as addendum A.  Your share of the bonus
                 pool will be 50% (percent).  If earned, this bonus is to be 
                 paid yearly, ten (10) days after audited earnings are 
                 released, and is less applicable withholdings and deductions. 
                 If your employment terminates prior to the end of the fiscal 
                 year, and you otherwise meet the bonus eligibility criteria, 
                 you will receive a pro rata portion of the bonus.

         4.      You will accrue 20 days of vacation each year up to a maximum
                 of 25 days.  Once the maximum is reached, additional vacation
                 accrual will cease until you have used some vacation to fall
                 below the maximum accrual allowed.

         5.      You (and any eligible dependents you elect) will be covered by
                 the Company's group medical insurance program on the same
                 terms and conditions applicable to comparable employees.  The
                 Company reserves the right to change, modify, or eliminate
                 such coverage.

         6.      We will pay the premium on a term life insurance policy on
                 your life with a company of our choice in the face amount
                 determined by the Company of not less than $1 Million.  Our
                 obligation to obtain and maintain this insurance is contingent
                 upon your establishing and maintaining insurability, and we
                 are not required to pay premiums for such a policy in excess
                 of $2,500 annually.
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Robert B. McKnight, Jr.
April 1, 1995
Page 2


         7.      The amount and terms of stock options to be granted to you
                 will be determined by the Board of Directors and covered in
                 separate agreements.

         8.      Notwithstanding anything to the contrary in this letter,
                 express or implied, your employment continues to be for an
                 unspecified term, and either you or Quiksilver may terminate
                 such employment at will and without cause at any time for any
                 reason.  This aspect of your employment relationship can only
                 be changed by an individualized written agreement signed by
                 both you and the CEO.

                 The Company may terminate your employment immediately, without
                 notice, and without further obligation for Cause, which shall
                 be defined as (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) violation of law, (v) self-dealing, (iv) willful
                 breach of duty, (vii) habitual neglect of duty, (viii) a
                 material breach by you of your obligations under Pargraphs 9
                 and 10 of this agreement, or (ix) sustained unsatisfactory
                 performance (determined by the Chairman of the Board).

                 If Quiksilver elects to terminate your employment without
                 cause, or if you terminate your employment with the Company
                 for Good Reason (as defined below within six (6) months of the
                 action constituting Good Reason), the Company will continue to
                 pay your base salary (but not any bonuses) on its regular
                 payroll dates for a period of six (6) months, plus one (1)
                 additional month for every year of your service up to a
                 combined maximum salary continuation period of 12 months.
                 Your effective date of employment for this purpose is August
                 1, 1976.

                 "Good Reason" for you to terminate employment means a
                 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 letter 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, or (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 letter.

         9.      Quiksilver owns certain trade secrets and other confidential
                 and/or proprietary information which constitute valuable
                 property rights, which we have 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, marketing strategies, 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 confidential all trade secrets and proprietary
                 information of Quiksilver, including, but not limited to,
                 those items specifically mentioned above.
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Robert B. McKnight, Jr.
April 1, 1995
Page 3

         10.     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.

         11.     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 conflict, the terms of this
                 letter will control.

         12.     This letter, its addendums, and any stock option agreements we
                 may enter into with you contain the entire integrated
                 agreement between us regarding these issues, and no
                 modification to this letter will be valid unless set forth in
                 writing and signed by both you and the CEO.  Any dispute
                 regarding the terms of this letter or any aspect of your
                 employment or the termination thereof must be settled
                 exclusively by final and binding arbitration in Orange County,
                 California, before a single arbitrator selected from Judicial
                 Arbitration & Mediation Services, Inc. ("JAMS"), whose fees
                 and costs shall be evenly divided by the parties.   The
                 Company reserves the right, however, to seek judicial
                 provisional remedies and equitable relief regarding any breach
                 or threatened breach of your obligations regarding trade
                 secrets and proprietary information.

         13.     This letter 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.

         Best personal regards.
                                                     Sincerely,


                                                     Robert B. McKnight, Jr.
                                                     Chairman and
                                                     Chief Executive Officer


RBM:jkm

Enclosure

ACKNOWLEDGED AND AGREED:


---------------------------
Robert B. McKnight, Jr.


Date:                , 1995
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                                  ADDENDUM "B"


"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), (iii) as the result of
or in connection with any tender or exchange offer, any contested election of
directors or any combination thereof, the persons who were directors of the
Company immediately before such tender or exchange offer, contested election or
combination thereof cease to constitute a majority of the Board of Directors of
the Company or any successor to the Company, (iv) the stockholders of the
Company approve a plan of complete liquidation, dissolution or winding up of
the Company or an agreement for the sale or other disposition of all or
substantially all of the assets of the Company or (v) the adoption of a
resolution by the affirmative vote of not less than two-thirds of the members
of the Board of Directors who were members immediately prior to any Change in
Control which resolution shall state that, in the good faith determination of
the Board of Directors, a Change in Control of the Company has occurred.
Notwithstanding anything to the contrary set forth in this definition, if a
transaction that would otherwise create or result in a Change in Control of the
Company is approved by the affirmative vote of not less than two-thirds of the
members of the Board of Directors of the Company, who were members of the Board
of Directors immediately prior to any Change in Control, then no Change of
Control of the Company shall be deemed to have occurred for the purposes of
this agreement.