Document:

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                                                                    EXHIBIT 10.2

                                QUIKSILVER, INC.

                              ANNUAL INCENTIVE PLAN

1.    PURPOSE

      The Quiksilver, Inc. Annual Incentive Plan (the "AIP") is designed to
promote the interests of the Company and its stockholders by stimulating the
efforts of the executive officers on behalf of the Company by establishing a
direct relationship between the payment of cash bonuses to such executive
officers and the profitability of the Company.

2.    CALCULATION OF BONUS AMOUNT

      Under the AIP, an annual cash bonus is paid to participants only if a
targeted increase in pre-tax income over the prior year has been met for the
year. In the case of officers of the Company, such bonus is based on the
Company's pre-tax income. Each participant shall receive a cash bonus equal to a
percentage of such participant's base salary, ranging from 0% to 300% of base
salary. The maximum amount payable to any officer in any fiscal year is
$3,000,000. Prior to the beginning of each fiscal year, the Compensation
Committee of the Board of Directors shall establish (i) the pre-tax income
growth goals for the upcoming year, (ii) the bonus, as a percentage of base
salary, payable upon achievement of these goals and (iii) the executives
eligible to participate. At the end of the year, the Committee shall certify in
writing whether the pre-tax income growth goals have been met for the year and
that the amount of bonus to be paid to each participant is correct. The
Compensation Committee does not have the discretion to increase the maximum
bonus percentage of 300% of base salary or the $3,000,000 maximum bonus payable
to any one participating executive for any fiscal year.

3.    ELIGIBLE PARTICIPANTS

      Individuals who are eligible to participate in the AIP include the
executive officers and certain other key employees of the Company as may be
determined by the Compensation Committee of the Board of Directors.

4.    ADMINISTRATION

      The AIP shall be administered by the Compensation Committee of the Board
of Directors.

5.    TERM; AMENDMENT

      The AIP will continue in effect until terminated by the Committee. The
Committee may amend, modify, suspend or terminate the AIP for the purpose of
meeting or addressing any changes in legal requirements or for any other purpose
permitted by law. The Committee will seek stockholder approval of any amendment
determined to require stockholder approval or advisable under the regulations of
the Internal Revenue Service or other applicable laws or regulations.

Approved by Board: February 4, 2005

Approved by Stockholders: March 24, 2005<PAGE>

                                                                    EXHIBIT 10.3

                                QUIKSILVER, INC.
                         EMPLOYEE STOCK PURCHASE PLAN(1)

      1.    PURPOSE OF THE PLAN

      This Employee Stock Purchase Plan is intended to promote the interests of
Quiksilver, Inc., a Delaware corporation, by providing eligible employees with
the opportunity to acquire a proprietary interest in the Corporation through
participation in a payroll-deduction based employee stock purchase plan designed
to qualify under Section 423 of the Code.

      Capitalized terms herein shall have the meanings assigned to such terms in
the attached Appendix.

      2.    ADMINISTRATION OF THE PLAN

      The Plan Administrator shall have full authority to interpret and construe
any provision of the Plan and to adopt such rules and regulations for
administering the Plan as it may deem necessary in order to comply with the
requirements of Code Section 423. Decisions of the Plan Administrator shall be
final and binding on all parties having an interest in the Plan.

      3.    STOCK SUBJECT TO PLAN

            A. The stock purchasable under the Plan shall be shares of
authorized but unissued or reacquired Common Stock, including shares of Common
Stock purchased on the open market. The number of shares of Common Stock
initially reserved for issuance over the term of the Plan shall be limited to
Eight Hundred Thousand (800,000) shares.

            B. Should any change be made to the Common Stock by reason of any
stock split, stock dividend, recapitalization, combination of shares, exchange
of shares or other change affecting the outstanding Common Stock as a class
without the Corporation's receipt of consideration, appropriate adjustments
shall be made to (i) the maximum number and class of securities issuable under
the Plan, (ii) the maximum number and class of securities purchasable per
Participant on any one Purchase Date, (iii) the maximum number and class of
securities purchasable by all Participants in the aggregate on any one Purchase
Date, and (iv) the number and class of securities and the price per share in
effect under each outstanding purchase right in order to prevent the dilution or
enlargement of benefits thereunder.

      4.    PURCHASE PERIODS

      Shares of Common Stock shall be offered for purchase under the Plan
through a series of successive Purchase Periods until such time as (i) the
maximum number of shares of Common

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(1)   All share amounts in this document have been revised to reflect a 2 for 1
      stock split effected through a stock dividend on April 30, 2003 and a 2
      for 1 stock split effected through a stock dividend on April 27, 2005.

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Stock available for issuance under the Plan shall have been purchased or (ii)
the Plan shall have been sooner terminated.

      5.    ELIGIBILITY

            A. Each individual who is an Eligible Employee on the start date of
any Purchase Period under the Plan may enter that Purchase Period on such start
date.

            B. To participate in the Plan for a particular Purchase Period, the
Eligible Employee must complete the enrollment forms prescribed by the Plan
Administrator (including a stock purchase agreement and a payroll deduction
authorization) and file such forms with the Plan Administrator (or its
designate) in advance of that Purchase Period and in accordance with such terms
and conditions as the Plan Administrator may impose.

      6.    PAYROLL DEDUCTIONS

            A. The payroll deduction authorized by the Participant for purposes
of acquiring shares of Common Stock during a Purchase Period may be any multiple
of one percent (1%) of the Base Salary paid to the Participant during the
Purchase Period, up to a maximum of fifteen percent (15%). The deduction rate so
authorized shall continue in effect, except to the extent such rate is changed
in accordance with the following guidelines:

                  (i) The Participant may, at any time during the Purchase
Period, reduce his or her rate of payroll deduction to become effective as soon
as possible after filing the appropriate form with the Plan Administrator. The
Participant may not, however, effect more than one (1) such reduction per
Purchase Period.

                  (ii) The Participant may, prior to the commencement of any new
Purchase Period, increase the rate of his or her payroll deduction by filing the
appropriate form with the Plan Administrator. The new rate (which may not exceed
the fifteen percent (15%) maximum) shall become effective on the start date of
the first Purchase Period following the filing of such form.

            B. Payroll deductions shall begin on the first pay day
administratively feasible following the beginning of the Purchase Period and
shall (unless sooner terminated by the Participant) continue through the pay day
ending with or immediately prior to the last day of that Purchase Period. The
amounts so collected shall be credited to the Participant's book account under
the Plan, but no interest shall be paid on the balance from time to time
outstanding in such account. The amounts collected from the Participant shall
not be required to be held in any segregated account or trust fund and may be
commingled with the general assets of the Corporation and used for general
corporate purposes.

            C. Payroll deductions shall automatically cease upon the termination
of the Participant's purchase right in accordance with the provisions of the
Plan.

            D. The Participant's acquisition of Common Stock under the Plan on
any Purchase Date shall neither limit nor require the Participant's acquisition
of Common Stock on any subsequent Purchase Date.

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      7.    PURCHASE RIGHTS

            A. GRANT OF PURCHASE RIGHT. A Participant shall be granted a
separate purchase right for each Purchase Period in which he or she
participates. The purchase right shall be granted on the first business day of
the Purchase Period and shall provide the Participant with the right to purchase
shares of Common Stock upon the terms set forth below. The Participant shall
execute a stock purchase agreement embodying such terms and such other
provisions (not inconsistent with the Plan) as the Plan Administrator may deem
advisable.

      Under no circumstances shall purchase rights be granted under the Plan to
any Eligible Employee if such individual would, immediately after the grant, own
(within the meaning of Code Section 424(d)) or hold outstanding options or other
rights to purchase, stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of the Corporation or any
Corporate Affiliate.

            B. EXERCISE OF THE PURCHASE RIGHT. Each purchase right shall be
automatically exercised on each successive Purchase Date, and shares of Common
Stock shall accordingly be purchased on behalf of each Participant on each such
Purchase Date. The purchase shall be effected by applying the Participant's
payroll deductions for the Purchase Period ending on such Purchase Date to the
purchase of whole shares of Common Stock at the purchase price in effect for the
Participant for that Purchase Date.

            C. PURCHASE PRICE. The purchase price per share at which Common
Stock will be purchased on the Participant's behalf on each Purchase Date shall
be equal to eighty-five percent (85%) of the lower of (i) the Fair Market Value
per share of Common Stock on the first business day of the Purchase Period or
(ii) the Fair Market Value per share of Common Stock on that Purchase Date.

            D. NUMBER OF PURCHASABLE SHARES. The number of shares of Common
Stock purchasable by a Participant on each Purchase Date shall be the number of
whole shares obtained by dividing the amount collected from the Participant
through payroll deductions during the Purchase Period ending with that Purchase
Date by the purchase price in effect for the Participant for that Purchase Date.
However, the maximum number of shares of Common Stock purchasable per
Participant on any one Purchase Date shall not exceed 4,000 shares, subject to
periodic adjustments in the event of certain changes in the Corporation's
capitalization. In addition, the maximum number of shares of Common Stock
purchasable in the aggregate by all Participants on any one Purchase Date shall
not exceed 400,000 shares, subject to periodic adjustments in the event of
certain changes in the Corporation's capitalization. However, the Plan
Administrator shall have the discretionary authority, exercisable prior to the
start of any Purchase Period under the Plan, to increase or decrease the
limitations to be in effect for the number of shares purchasable per Participant
and in the aggregate by all Participants on each Purchase Date.

            E. EXCESS PAYROLL DEDUCTIONS. Any payroll deductions not applied to
the purchase of shares of Common Stock on any Purchase Date because they are not
sufficient to purchase a whole share of Common Stock shall be held for the
purchase of Common Stock on the next Purchase Date. However, any payroll
deductions not applied to the purchase of

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Common Stock by reason of the limitation on the maximum number of shares
purchasable per Participant or in the aggregate on the Purchase Date shall be
promptly refunded.

            F. TERMINATION OF PURCHASE RIGHT. The following provisions shall
govern the termination of outstanding purchase rights:

                        (A) A Participant may, at any time prior to the next
            scheduled Purchase Date, terminate his or her outstanding purchase
            right by filing the appropriate form with the Plan Administrator (or
            its designate), and no further payroll deductions shall be collected
            from the Participant with respect to the terminated purchase right.
            Any payroll deductions collected during the Purchase Period in which
            such termination occurs shall, at the Participant's election, be
            immediately refunded or held for the purchase of shares on the next
            Purchase Date. If no such election is made at the time such purchase
            right is terminated, then the payroll deductions collected with
            respect to the terminated right shall be refunded as soon as
            possible.

                        (B) The termination of such purchase right shall be
            irrevocable, and the Participant may not subsequently rejoin the
            Purchase Period for which the terminated purchase right was granted.
            In order to resume participation in any subsequent Purchase Period,
            such individual must re-enroll in the Plan (by making a timely
            filing of the prescribed enrollment forms).

                        (C) Should the Participant cease to remain an Eligible
            Employee for any reason (including death, disability or change in
            status) while his or her purchase right remains outstanding, then
            that purchase right shall immediately terminate, and all of the
            Participant's payroll deductions for the Purchase Period in which
            the purchase right so terminates shall be immediately refunded.
            However, should the Participant cease to remain in active service by
            reason of an approved unpaid leave of absence, then the Participant
            shall have the right, exercisable up until the last business day of
            the Purchase Period in which such leave commences, to (a) withdraw
            all the payroll deductions collected to date on his or her behalf
            for that Purchase Period or (b) have such funds held for the
            purchase of shares on his or her behalf on the next scheduled
            Purchase Date. In no event, however, shall any further payroll
            deductions be collected on the Participant's behalf during such
            leave. Upon the Participant's return to active service (x) within
            ninety (90) days following the commencement of such leave or (y)
            prior to the expiration of any longer period for which such
            Participant's right to reemployment with the Corporation is
            guaranteed by statute or contract, his or her payroll deductions
            under the Plan shall automatically resume at the rate in effect at
            the time the leave began, unless the Participant withdraws from the
            Plan prior to his or her return. An individual who returns to active
            employment following a leave of absence which exceeds in duration
            the applicable (x) or (y) time period will be treated as anew
            Employee for purposes of subsequent participation in the Plan and
            must accordingly re- enroll in the Plan (by making a timely filing
            of the prescribed enrollment forms).

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            G. CHANGE IN CONTROL. Each outstanding purchase right shall
automatically be exercised, immediately prior to the effective date of any
Change in Control, by applying the payroll deductions of each Participant for
the Purchase Period in which such Change in Control occurs to the purchase of
whole shares of Common Stock at a purchase price per share equal to eighty-five
percent (85%) of the lower of (i) the Fair Market Value per share of Common
Stock on the first business day of the Purchase Period in which such Change in
Control occurs or (ii) the Fair Market Value per share of Common Stock
immediately prior to the effective date of such Change in Control. However, the
applicable limitation on the number of shares of Common Stock purchasable per
Participant shall continue to apply to any such purchase, but not the limitation
applicable to the maximum number of shares of Common Stock purchasable in the
aggregate by all participants.

      The Corporation shall use its best efforts to provide at least ten
(10)-days prior written notice of the occurrence of any Change in Control, and
Participants shall, following the receipt of such notice, have the right to
terminate their outstanding purchase rights prior to the effective date of the
Change in Control.

            H. PRORATION OF PURCHASE RIGHTS. Should the total number of shares
of Common Stock to be purchased pursuant to outstanding purchase rights on any
particular date exceed the number of shares then available for issuance under
the Plan, the Plan Administrator shall make a pro-rata allocation of the
available shares on a uniform and nondiscriminatory basis, and the payroll
deductions of each Participant, to the extent in excess of the aggregate
purchase price payable for the Common Stock pro-rated to such individual, shall
be refunded.

            I. ASSIGNABILITY. The purchase right shall be exercisable only by
the Participant and shall not be assignable or transferable by the Participant.

            J. STOCKHOLDER RIGHTS. A Participant shall have no stockholder
rights with respect to the shares subject to his or her outstanding purchase
right until the shares are purchased on the Participant's behalf in accordance
with the provisions of the Plan and the Participant has become a holder of
record of the purchased shares.

      8.    ACCRUAL LIMITATIONS

            A. No Participant shall be entitled to accrue rights to acquire
Common Stock pursuant to any purchase right outstanding under this Plan if and
to the extent such accrual, when aggregated with (i) rights to purchase Common
Stock accrued under any other purchase right granted under this Plan and (ii)
similar rights accrued under other employee stock purchase plans (within the
meaning of Code Section 423) of the Corporation or any Corporate Affiliate,
would otherwise permit such Participant to purchase more than Twenty-Five
Thousand Dollars ($25,000.00) worth of stock of the Corporation or any Corporate
Affiliate (determined on the basis of the Fair Market Value per share on the
date or dates such rights are granted) for each calendar year such rights are at
any time outstanding.

            B. For purposes of applying such accrual limitations to the purchase
rights granted under the Plan, the following provisions shall be in effect:

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                  (i) The right to acquire Common Stock under each outstanding
purchase right shall accrue on each successive Purchase Date on which such right
remains outstanding.

                  (ii) No right to acquire Common Stock under any outstanding
purchase right shall accrue to the extent the Participant has already accrued in
the same calendar year the right to acquire Common Stock under one or more other
purchase rights at a rate equal to Twenty-Five Thousand Dollars ($25,000.00)
worth of Common Stock (determined on the basis of the Fair Market Value per
share on the date or dates of grant) for each calendar year such rights were at
any time outstanding.

            C. If by reason of such accrual limitations, any purchase right of a
Participant does not accrue for a particular Purchase Period, then the payroll
deductions which the Participant made during that Purchase Period with respect
to such purchase right shall be promptly refunded.

            D. In the event there is any conflict between the provisions of this
Article and one or more provisions of the Plan or any instrument issued
thereunder, the provisions of this Article shall be controlling.

      9.    EFFECTIVE DATE AND TERM OF THE PLAN

            A. The Plan was adopted by the Board on February 15, 2000 and shall
become effective at the Effective Time, provided no purchase rights granted
under the Plan shall be exercised, and no shares of Common Stock shall be issued
hereunder, until (i) the Plan shall have been approved by the stockholders of
the Corporation and (ii) the Corporation shall have complied with all applicable
requirements of the 1933 Act (including the registration of the shares of Common
Stock issuable under the Plan on a Form S-8 registration statement filed with
the Securities and Exchange Commission), all applicable listing requirements of
any stock exchange (or the Nasdaq National Market, if applicable) on which the
Common Stock is listed for trading and all other applicable requirements
established by law or regulation. In the event such stockholder approval is not
obtained, or such compliance is not effected, within twelve (12) months after
the date on which the Plan is adopted by the Board, the Plan shall terminate and
have no further force or effect, and all sums collected from Participants during
the initial Purchase Period hereunder shall be refunded.

            B. Unless sooner terminated by the Board, the Plan shall terminate
upon the earliest of (i) the last business day in December 2009, (ii) the date
on which all shares available for issuance under the Plan shall have been sold
pursuant to purchase rights exercised under the Plan or (iii) the date on which
all purchase rights are exercised in connection with a Change in Control. No
further purchase rights shall be granted or exercised, and no further payroll
deductions shall be collected, under the Plan following such termination.

      10.   AMENDMENT OF THE PLAN

            A. The Board may alter, amend, suspend or terminate the Plan at any
time to become effective immediately following the close of any Purchase Period.
In addition, the Plan may be amended or terminated immediately upon Board
action, if and to the extent necessary to

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assure that the Corporation will not recognize, for financial reporting
purposes, any compensation expense in connection with the shares of Common Stock
offered for purchase under the Plan, should the financial accounting rules
applicable to the Plan at the Effective Time be subsequently revised so as to
require the Corporation's recognition of compensation expense in the absence of
such amendment or termination.

            B. In no event may the Board effect any of the following amendments
or revisions to the Plan without the approval of the Corporation's stockholders:
(i) increase the number of shares of Common Stock issuable under the Plan,
except for permissible adjustments in the event of certain changes in the
Corporation's capitalization, (ii) alter the purchase price formula so as to
reduce the purchase price payable for the shares of Common Stock purchasable
under the Plan or (iii) modify the eligibility requirements for participation in
the Plan.

      11.   GENERAL PROVISIONS

            A. All costs and expenses incurred in the administration of the Plan
shall be paid by the Corporation; however, each Plan Participant shall bear all
costs and expenses incurred by such individual in the sale or other disposition
of any shares purchased under the Plan.

            B. Nothing in the Plan shall confer upon the Participant any right
to continue in the employ of the Corporation or any Corporate Affiliate for any
period of specific duration or interfere with or otherwise restrict in any way
the rights of the Corporation (or any Corporate Affiliate employing such person)
or of the Participant, which rights are hereby expressly reserved by each, to
terminate such person's employment at any time for any reason, with or without
cause.

            C. The provisions of the Plan shall be governed by the laws of the
State of California without resort to that State's conflict-of-laws rules.

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                                    APPENDIX

      The following definitions shall be in effect under the Plan:

      A. BASE SALARY shall mean the regular base salary paid to a
Participant by one or more Participating Companies during such
individual's period of participation in one or more Purchase Periods under the
Plan. Base Salary shall be calculated before deduction of (A) any income or
employment tax withholdings or (B) any and all contributions made by the
Participant to any Code Section 401(k) salary deferral plan or Code Section 125
cafeteria benefit program now or hereafter established by the Corporation or any
Corporate Affiliate. Base Salary shall NOT include (i) any overtime payments,
bonuses, commissions, profit-sharing distributions and other incentive- type
payments received during the period of participation in the Plan and (ii) any
contributions made on the Participant's behalf by the Corporation or any
Corporate Affiliate to any employee benefit or welfare plan now or hereafter
established (other than Code Section 401(k) or Code Section 125 contributions
deducted from Base Salary).

      B. BOARD shall mean the Corporation's Board of Directors.

      C. CHANGE IN CONTROL shall mean a change in ownership of the Corporation
pursuant to any of the following transactions:

            (i) a merger or consolidation in which securities possessing more
than fifty percent (50%) of the total combined voting power of the Corporation's
outstanding securities are transferred to a person or persons different from the
persons holding those securities immediately prior to such transaction, or

            (ii) the sale, transfer or other disposition of all or substantially
all of the assets of the Corporation in complete liquidation or dissolution of
the Corporation, or

            (iii) the acquisition, directly or indirectly by an person or
related group of persons (other than the Corporation or a person that directly
or indirectly controls, is controlled by or is under common control with the
Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the
1934 Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation's outstanding securities pursuant to a
tender or exchange offer made directly to the Corporation's stockholders.

      D. CODE shall mean the Internal Revenue Code of 1986, as amended.

      E. COMMON STOCK shall mean the Corporation's common stock.

      F. CORPORATE AFFILIATE shall mean any parent or subsidiary corporation of
the Corporation (as determined in accordance with Code Section 424), whether now
existing or subsequently established.

      G. CORPORATION shall mean Quiksilver, Inc., a Delaware corporation, and
any corporate successor to all or substantially all of the assets or voting
stock of Quiksilver, Inc. which shall by appropriate action adopt the Plan.

<PAGE>

      H. EFFECTIVE TIME shall mean July 1, 2000. Any Corporate Affiliate which
becomes a Participating Corporation after such Effective Time shall designate a
subsequent Effective Time with respect to its employee-Participants.

      I. ELIGIBLE EMPLOYEE shall mean any person who is employed by a
Participating Corporation on a basis under which he or she is regularly expected
to render more than twenty (20) hours of service per week for more than five (5)
months per calendar year for earnings considered wages under Code Section
3401(a).

      J. FAIR MARKET VALUE per share of Common Stock on any relevant date shall
be determined in accordance with the following provisions:

            (i) If the Common Stock is at the time traded on the Nasdaq National
Market, then the Fair Market Value shall be the closing selling price per share
of Common Stock on the date in question, as such price is reported by the
National Association of Securities Dealers on the Nasdaq National Market. If
there is no closing selling price for the Common Stock on the date in question,
then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

            (ii) If the Common Stock is at the time listed on any Stock
Exchange, then the Fair Market Value shall be the closing selling price per
share of Common Stock on the date in question on the Stock Exchange determined
by the Plan Administrator to be the primary market for the Common Stock, as such
price is officially quoted in the composite tape of transactions on such
exchange. If there is no closing selling price for the Common Stock on the date
in question, then the Fair Market Value shall be the closing selling price on
the last preceding date for which such quotation exists.

      K. 1933 ACT shall mean the Securities Act of 1933, as amended.

      L. PARTICIPANT shall mean any Eligible Employee of a Participating
Corporation who is actively participating in the Plan.

      M. PARTICIPATING CORPORATION shall mean the Corporation and such Corporate
Affiliate or Affiliates as may be authorized from time to time by the Board to
extend the benefits of the Plan to their Eligible Employees. The Participating
Corporations in the Plan are listed in attached Schedule A.

      N. PLAN shall mean the Corporation's Employee Stock Purchase Plan, as set
forth in this document.

      O. PLAN ADMINISTRATOR shall mean the committee of two (2) or more Board
members appointed by the Board to administer the Plan.

      P. PURCHASE DATE shall mean the last business day of each Purchase Period.
The initial Purchase Date shall be December 29, 2000.

      Q. PURCHASE PERIOD shall mean each successive approximate six (6)-month
period, beginning on the first business day in each of July and January and
ending on the last

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business day in each of June and December of each year, at the end of which
there shall be purchased shares of Common Stock on behalf of each Participant.

      R. STOCK EXCHANGE shall mean either the American Stock Exchange or the New
York Stock Exchange.

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                                   SCHEDULE A

                          CORPORATIONS PARTICIPATING IN
                          EMPLOYEE STOCK PURCHASE PLAN
                            AS OF THE EFFECTIVE TIME

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