Document:

THIS POOLING AGREEMENT made effective the __ day of August, 2000.

B E T W E E N:

     LIONEL MERCIER, JANICE MERCIER, RICHARD A. BLOCK,
     ANDREA A. BLOCK, HUGH D. TURNER, JEFF EISEN,
     DOMINIQUE MATHERS EISEN and MERCHANT BANKING
     SERVICES INC.

     (hereinafter sometimes collectively called the "Depositors")

                                                               OF THE FIRST PART

     - and -

     WEIR & FOULDS

     (hereinafter called the "Pooling Agent")

                                                              OF THE SECOND PART

     - and -

     MURRAY SMITH

                                                               OF THE THIRD PART

     WHEREAS American Quantum Cycles, Inc. (the "Corporation") is a corporation
duly incorporated under the laws of the State of Florida;

     AND WHEREAS the Depositors are at the present time the beneficial holders
of 225,000 preferred shares (the "Preferred Stock") of the Corporation free and
clear of any liens or encumbrances as follows:

     Name of Depositor                                        Number of Shares
     -----------------                                        ----------------

     Lionel and Janice Mercier                                     75,000
     Richard A. and Andrea A. Block, JT                            75,000
     Merchant Banking Services Inc.                                75,000
     Hugh D. Turner                                                15,000
     Jeff and Dominique Mathers Eisen                               5,000

<PAGE>

     AND WHEREAS each of the Depositors will cause to be delivered to the
Pooling Agent certificates for their respective number of the said Preferred
Stock beneficially held in the capital of the Corporation as set out above to be
held and disposed of by the Pooling Agent under and pursuant to the terms and
conditions hereof;

     NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
respective covenants and agreements herein contained and other good and valuable
consideration, it is agreed by and between the parties hereto as follows:

1.   Each Depositor hereby places and deposits in escrow that number of
Preferred Stock in which it has a beneficial interest as set forth opposite its
name above, under the column " Number of Shares" (hereinafter collectively,
together with any additional shares deposited hereunder, referred to as the
"Pooled Shares") with the Pooling Agent, and hereby undertakes and agrees
forthwith to deliver share certificates for the Pooled Shares (including any
replacement certificates if and when such are issued) to the Pooling Agent for
deposit in escrow. If, during the period in which any of the Pooled Shares are
retained by the Pooling Agent pursuant hereto, any share consolidation,
subdivision, redivision, split or other change of the shares of the Corporation
occurs, the securities issued as a result (the "Additional or Substituted
Securities") in respect of the Pooled Shares shall be held by the Pooling Agent
according to the terms of this Agreement and shall be conclusively deemed to be
Pooled Shares for purposes of this Agreement. Notwithstanding anything to the
contrary herein, the parties hereto specifically acknowledge, confirm and agree
that the Pooled Shares and this Agreement shall not include any shares of the
Corporation which are legally or beneficially held by any of the Depositors in
addition to the Pooled Shares, save and except for any Additional or Substituted
Securities in respect of the Pooled Shares. By way of example, Merchant Banking
Services Inc., on the date hereof, is the beneficial holder of 200,000
preference shares of the Corporation, of which only 75,000 of such preference
shares are Pooled Shares and covered by this Agreement.

2.   Subject to Section 3 below, the parties hereby agree that the Pooled
Shares and the beneficial ownership of, or any interest in them and the
certificates and evidences representing them (including any replacement
securities or certificates) shall not be sold, assigned, hypothecated,
alienated, released from escrow, transferred within escrow or otherwise in any
manner dealt with unless the express written consent, order or direction of, all
parties hereto is provided to the Pooling Agent.

3.   The Pooled Shares shall be held by the Pooling Agent who shall, subject
to the provisions of this Agreement, take directions with respect to the release
of such shares from Murray Smith who shall have the complete and unfettered
discretion in that regard, subject to the terms of this Pooling Agreement.

4.   The Pooled Shares shall be released upon the following terms and
conditions:

     (a)  subject to subsection (b) herein:

          (i)  on December 28, 2000, one-half (1/2) of the Pooled Shares shall
               be released pro rata among the Depositors, based on the number of
               Pooled Shares beneficially held; and

                                       2
<PAGE>

          (ii) on December 28, 2001, all of the remaining Pooled Shares shall be
               released pro rata among the Depositors, based on the number of
               Pooled Shares beneficially held;

     (b)  if any of Murray Smith, Richard A. Block, Lionel Mercier, Hugh D.
          Turner or Jeff Eisen are not employed by or consulting to the
          Corporation (or its successor) on either of the aforementioned release
          dates, then the following shall occur:

          o    if Murray Smith is not employed or consulting on such date as a
               result of his resignation or termination for cause, then the
               Pooled Shares of Merchant Banking Services Inc. shall be released
               to Merchant Banking Services Inc.

          o    If Richard A. Block is not employed or consulting on such date as
               a result of his resignation or termination for cause, then the
               Pooled Shares of Richard A. and Andrea A. Block, JT shall be
               released to Merchant Banking Services Inc.

          o    if Lionel Mercier is not employed or consulting on such date as a
               result of his resignation or termination for cause, then the
               Pooled Shares of Lionel and Janice Mercier shall be released to
               Merchant Banking Services Inc.

          o    if Hugh D. Turner is not employed or consulting on such date as a
               result of his resignation or termination for cause, then the
               Pooled Shares of Hugh D. Turner shall be released to Merchant
               Banking Services Inc.

          o    if Jeff Eisen is not employed or consulting on such date as a
               result of his resignation or termination for cause, then the
               Pooled Shares of Jeff and Dominique Eisen shall be released to
               Merchant Banking Services Inc.

     (c)  each of Richard A. Block, Andrea A. Block, Lionel Mercier, Janice
          Mercier, Hugh D. Turner, Jeff Eisen and Dominique Mathers Eisen hereby
          irrevocably transfer and assign all legal and beneficial rights to
          their respective Pooled Shares to Merchant Banking Services Inc., in
          the event that the Pooled Shares are to be released to Merchant
          Banking Services Inc. pursuant to subsection (b) hereof;

     (d)  each of Murray Smith, Richard A. Block, Lionel Mercier, Hugh D. Turner
          and Jeff Eisen agree to enter into employment or consulting agreements
          with the Corporation within ninety (90) days from the date hereof and

                                       3
<PAGE>

          all of the parties hereto shall use their best efforts to cause the
          Corporation to enter into the said employment or consulting agreements
          with the said individuals within the said time period.

5.   The Depositors hereby jointly and severally agree to and do hereby
release and indemnify and save harmless Murray Smith from and against all
claims, suits, demands, costs, damages and expenses which may be occasioned by
reason of Murray Smith giving directions in good faith with respect to the
release of the Pooled Shares in accordance with the terms hereof.

6.   The Depositors hereby direct the Pooling Agent to retain the Pooled
Shares and the certificates and evidences representing them (including any
replacement securities or certificates) and not to cause anything to be done to
release the same from escrow or allow any transfer, hypothecation or alienation
thereof except as expressly provided herein. The Pooling Agent agrees to perform
the same in accordance with the terms hereof.

7.   If during the Pooling Period any dividend or other distribution is
received by the Pooling Agent in respect of the Pooled Shares any such dividend
or other distribution shall be forthwith paid or transferred pro-rata to the
relevant Depositors.

8.   Subject to the provisions of any other agreement, attorney or proxy to
the contrary, all voting rights attached to the Pooled Shares held hereunder
shall at all times be exercised by the respective registered owners thereof.

9.   The acceptance by the Pooling Agent of its duties and obligations under
this Pooling Agreement is subject to the following terms and conditions which
the parties to this Pooling Agreement hereby agree shall govern and control the
Pooling Agent with respect to its rights, duties, liabilities and immunities:

     (a)  the Pooling Agent shall not be liable or accountable for any loss or
          damage whatsoever to any person caused by the performance or failure
          to perform its responsibilities under this Pooling Agreement, save
          only to the extent that such loss or damage is attributable to the
          negligence or wilful misconduct of the Pooling Agent;

     (b)  the Pooling Agent shall have no duties except those which are
          expressly herein set forth and the rights, duties, liabilities and
          immunities of the Pooling Agent may not be altered without its prior
          written consent;

     (c)  the Pooling Agent shall not be bound by any notice, claim or demand
          with respect hereto or any waiver, modification, termination or
          rescission of this Pooling Agreement, unless received by it in writing
          and signed by all of the other parties hereto;

     (d)  upon the release and delivery by the Pooling Agent of the Deposited
          Shares as provided in this Pooling Agreement, the Pooling Agent shall
          be released and discharged from all of its obligations hereunder;

                                       4
<PAGE>

     (e)  in acting hereunder, the Pooling Agent shall be jointly and severally
          indemnified and saved harmless by the Depositors from all expenses,
          liabilities, claims, suits, costs and demands (collectively the
          "Expenses") arising in connection with the performance by it of its
          duties under this Pooling Agreement, save only to the extent that the
          Expenses arise from the negligence or wilful misconduct of the Pooling
          Agent;

     (f)  the Pooling Agent may act on the opinion or advice obtained from its
          counsel or accountants duly qualified to practice in the Province of
          Ontario and shall not be responsible for any loss occasioned by doing
          so nor shall it incur any liability or responsibility for deciding in
          good faith not to act upon such opinion or advice;

     (g)  the Pooling Agent may rely upon any document or instrument delivered
          to it in compliance with or purporting to be in compliance with any
          provision of this Pooling Agreement without any obligation whatsoever
          for it to make any inquiry as to the correctness of any statement made
          therein;

     (h)  each of the Depositors shall be jointly and severally responsible for
          the payment of all the reasonable fees and expenses charged and
          incurred by the Pooling Agent in the carrying out of its duties and
          obligations hereunder; and

     (i)  the Pooling Agent may resign and be discharged from any further duties
          or liabilities hereunder by giving fifteen (15) days' written notice
          to the Depositors or such shorter notice as they may accept. Upon the
          resignation of the Pooling Agent, its successors shall be forthwith
          appointed by the Depositors and upon such appointment the Deposited
          Shares will be transferred to the successor and it shall be vested
          with the same powers, rights, duties and responsibilities as if the
          successor had been originally named as the Pooling Agent hereunder.

10.  This Pooling Agreement shall, unless otherwise agreed in writing by all
of the parties hereto, continue in force and effect until the last of the Pooled
Shares are released pursuant to Section 4 herein. 11. This Agreement may be
executed in several counterparts in the same form and such counterparts as so
executed shall together form one original agreement, and such counterparts, if
more than one, shall be read together and construed as if all the signing
parties hereto had executed one copy of this Agreement.

12.  Unless the context otherwise requires, words importing the singular
include the plural and vice versa and words importing gender include all
genders.

13.  This Agreement shall enure to the benefit of and be binding upon the
parties hereto and each of their heirs, executors, administrators, successors
and assigns.

                                       5
<PAGE>

14.  This Agreement shall be governed by and construed under the laws of the
Province of Ontario.

     IN WITNESS WHEREOF the parties hereto have executed these presents the day
and year first above written.

                                               /s/ Lionel Mercier
                                               ---------------------------------
                                               Lionel Mercier

                                               /s/ Janice Mercier
                                               ---------------------------------
                                               Janice  Mercier

                                               /s/ Richard A. Block
                                               ---------------------------------
                                               Richard A. Block

                                               /s/ Andrea A. Block
                                               ---------------------------------
                                               Andrea A. Block

                                               /s/ Hugh D. Turner
                                               ---------------------------------
                                               Hugh D. Turner

                                               /s/ Jeff Eisen
                                               ---------------------------------
                                               Jeff Eisen

                                               /s/ Dominique Mathers Eisen
                                               ---------------------------------
                                               Dominique Mathers Eisen

                                               MERCHANT BANKING SERVICES INC.

                                               Per: /s/ Murray Smith
                                               ---------------------------------

                                               WEIR & FOULDS

                                               Per: /s/ John L. Pandell
                                               ---------------------------------
                                               John L. Pandell

                                               /s/ Murray Smith
                                               ---------------------------------
                                               Murray Smith

                                       6<PAGE>   1

                                                                    EXHIBIT 10.3

                                  July 18, 2000

TO THE LENDERS PARTIES TO THE REVOLVING
CREDIT AGREEMENT REFERRED TO BELOW

         Re:      First Amendment to Revolving Credit Agreement

Ladies and Gentlemen:

         We refer to the Revolving Credit Agreement dated as of April 25, 2000
(the "Credit Agreement") among Quiksilver, Inc. (the "Borrower"), the lenders
referred to therein (the "Lenders"), The Chase Manhattan Bank, as syndication
agent and co-lead arranger, and Union Bank of California, N.A., as
administrative agent for the Lenders (in such capacity, the "Agent") and co-lead
arranger. Terms defined in the Credit Agreement and not otherwise defined herein
have the same respective meanings when used herein.

         1. Effective as of the date of this letter amendment but subject to the
terms and conditions hereof, the Credit Agreement is hereby amended as set forth
below.

                  (a) The definition of "Borrowing Base" in Section 1.1 of the
Credit Agreement is amended in full to read as follows:

                  "`Borrowing Base': as at any date, an amount determined by the
         Agent by reference to the most recent Borrowing Base Certificate, which
         is equal to the sum of the following, without duplication:

                           (a) 80% of Eligible Accounts Receivable; plus

                           (b) 40% of Eligible Inventory (provided that such
                  percentage shall be increased to 50% with respect to any
                  calculation of the Borrowing Base during the months of (i)
                  January through April of any year or (ii) May through
                  September of 2000); plus

                           (c) 40% of outstanding and undrawn commercial Letters
                  of Credit issued hereunder for the account of the Borrower
                  (provided that such percentage shall be increased to 50% with
                  respect to any calculation of the Borrowing Base during the
                  months of (i) January through April of any year or (ii) May
                  through September of 2000)."

<PAGE>   2

July 18, 2000
Page 2

                  (b) The Lenders' signature pages to the Credit Agreement are
amended by (i) deleting the amount "$40,000,000" set forth below the signature
block of Union Bank of California, N.A. ("UBOC") and substituting "$44,444,445",
(ii) deleting the amount "$22,500,000" set forth below the signature block of
The Chase Manhattan Bank ("Chase") and substituting "$25,000,000", (iii)
deleting the amount "$20,000,000" set forth below the signature block of Fleet
National Bank ("Fleet") and substituting "$22,222,222" and (iv) deleting the
amount "$7,500,000" set forth below the signature block of Pacific Century Bank,
N.A. ("PCB") and substituting "$8,333,333"; provided, however, that, as of the
close of business in Los Angeles on October 31, 2000, such amounts shall
automatically revert to $40,000,000 for UBOC, $22,500,000 for Chase, $20,000,000
for Fleet and $7,500,000 for PCB, in each case without any further action by any
party.

                  (c) Section 5.8 of the Credit Agreement is amended in full to
read as follows:

                  "5.8 Use of Proceeds. The Borrower will use the proceeds of
         the Loans solely to provide funds for (a) working capital, capital
         expenditures and acquisitions permitted by Section 6.7(d) or (g), (b)
         the repayment of amounts outstanding under the Existing Line and (c)
         general corporate purposes of the Borrower and its Domestic
         Subsidiaries; provided, however, that (i) any Loans whose proceeds are
         used to provide funds for the acquisition permitted by Section 6.7(g)
         shall be limited to $25,000,000, shall be used only to pay the portion
         of the purchase price for such acquisition payable on the date of
         closing of such acquisition and shall be repaid by the Borrower in full
         not later than October 31, 2000, (ii) no proceeds of any Loans may be
         used by the Borrower after October 31, 2000 to provide funds for the
         payment of any portion of the purchase price for such acquisition and
         (iii) not later than October 31, 2000, the Borrower shall provide
         evidence satisfactory to the Lenders that the Borrower has refinanced
         the Loans referred to in (i) above. Notwithstanding anything herein to
         the contrary, no Loan or Letter of Credit shall be used for the
         purchasing or carrying of any Margin Stock."

                  (d) Section 6.6 of the Credit Agreement is amended by deleting
the amount "$20,000,000" therein and substituting "$10,000,000."

                  (e) Section 6.7 of the Credit Agreement is amended by deleting
the word "and" at the end of Section 6.7(e), deleting the period at the end of
Section 6.7(f) and replacing it with "; and" and adding the following new
Section 6.7(g):

                  "(g) acquisition of all of the shares of capital stock of
         Quiksilver International Pty Ltd, a corporation organized under the
         laws of the State of

<PAGE>   3

July 18, 2000
Page 3

         Victoria, Australia, by a newly formed, directly and wholly owned
         Subsidiary of the Borrower, Quiksilver Australia Pty Ltd, a corporation
         organized under the laws of the State of Victoria, Australia."

         2. The Borrower hereby represents and warrants for the benefit of the
Lenders and the Agent that (a) the representations and warranties contained in
the Loan Documents are correct in all material respects on and as of the date of
this letter amendment, before and after giving effect to the same, as if made on
and as of such date and (b) no event has occurred and is continuing, or would
result from the effectiveness of this letter amendment, that constitutes a
Default.

         3. If you agree to the terms and conditions set forth herein, please
evidence your agreement by executing and returning six counterparts of this
letter amendment to the Agent. This letter amendment shall become effective as
of the date first set forth above when and if (a) the Borrower and the Lenders
execute counterparts of this letter amendment and deliver them to the Agent, (b)
the Borrower pays a fee of $10,000 to the Agent, for the account of the Lenders
in such amounts as agreed between the Agent and each of the Lenders, (c) the
Borrower executes and delivers to the Agent new Revolving Notes, appropriately
completed for each of the Lenders, (d) the Borrower delivers to the Agent
certified copies of the forms of the purchase agreements by which the Borrower's
wholly owned Subsidiary, Quiksilver Australia Pty Ltd, a corporation organized
under the laws of the State of Victoria, Australia ("QAPL"), is to acquire all
of the capital stock of Quiksilver International Pty Ltd, a corporation
organized under the laws of the State of Victoria, Australia ("QIPL"), together
with such related documents as the Agent may reasonably request, and (e) the
Borrower delivers to the Agent a Covenant Compliance Certificate showing pro
forma calculations assuming that the acquisition of all of the capital stock of
QIPL by QAPL has been consummated; provided, however, that it shall be a
condition subsequent to the effectiveness of this letter amendment that the
Borrower deliver to the Agent not later than August 31, 2000 a pledge agreement,
duly executed by the Borrower and QAPL (if required), by which the Borrower
pledges 65% of the capital stock of QAPL as Collateral, together with other
documents, including a legal opinion of Australian counsel to QAPL,
substantially the same as those required to be provided pursuant to Section 4.3
of the Credit Agreement in connection with the Borrower's pledge of stock of Na
Pali.

         4. On and after the effective date of this letter amendment, each
reference in the Credit Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import referring to the Credit Agreement, and each
reference in the other Loan Documents to "the Credit Agreement," "thereunder,"
"thereof," "therein" or words of like import referring to the Credit Agreement,
shall mean and be a reference to the Credit Agreement as amended by this letter
amendment. The Credit Agreement, as amended by this letter amendment, is and
shall continue to be in full force and effect and is hereby ratified and
confirmed in all respects.

<PAGE>   4

July 18, 2000
Page 4

         5. This letter amendment may be executed in any number of counterparts
and by any combination of the parties hereto in separate counterparts, each of
which counterparts shall be an original and all of which taken together shall
constitute one and the same letter amendment.

         6. THIS LETTER AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA WITHOUT
REFERENCE TO THE CHOICE-OF-LAW PRINCIPLES THEREOF.

                                            Very truly yours,

                                            QUIKSILVER, INC.

                                            By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

Agreed as of the date first written above:

UNION BANK OF CALIFORNIA, N.A.,
   as Agent and a Lender

By:
   ---------------------------------
Name:
     -------------------------------
Title:
      ------------------------------

THE CHASE MANHATTAN BANK

By:
   ---------------------------------
Name:
     -------------------------------
Title:
      ------------------------------

<PAGE>   5

July 18, 2000
Page 5

FLEET NATIONAL BANK

By:
   ---------------------------------
Name:
     -------------------------------
Title:
      ------------------------------

PACIFIC CENTURY BANK, N.A.

By:
   ---------------------------------
Name:
     -------------------------------
Title:
      ------------------------------

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