Document:

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                                                                    EXHIBIT 10.1

                               [QUIKSILVER LOGO]

                                 August 1, 2004

PERSONAL AND CONFIDENTIAL

Robert B. McKnight, Jr.
Quiksilver, Inc.
15202 Graham Street
Huntington Beach, CA  92649

Re:   Employment at Quiksilver

Dear Bob:

            This letter ("Agreement") will confirm our understanding and
agreement regarding your continued employment with Quiksilver, Inc.
("Quiksilver" or the "Company"). This Agreement is effective August 1, 2004 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 Chief Executive Officer. 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 $66,667 per month
                  ($800,000 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 $66,667 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.

            3.    Bonus. For the fiscal year ending October 31, 2004 and each
                  fiscal year thereafter so long as such plans remain in effect
                  and the requisite stockholder approval of such plans under
                  Section 162(m) of the Internal Revenue Code has been obtained
                  to ensure the deductibility of payments made pursuant thereto,
                  you shall be eligible to receive a bonus under the Company's
                  stockholder approved Annual Incentive Plan and/or Long-Term
                  Incentive Plan of up to 300% of your original base salary

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                        hereunder based on achievement of certain incentive
                        goals established by the Compensation Committee of the
                        Board of Directors. Any bonus earned pursuant to the
                        Annual Incentive Plan shall be paid within ten (10) 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 for any reason other than termination for
                        Cause (as defined in Paragraph 9(b), but excluding
                        subparagraphs (i) and (ii) thereof), you shall be
                        entitled to receive a pro rata portion of the bonus
                        otherwise payable to you under the Annual Incentive Plan
                        based upon the actual number of days which you were
                        actively employed by the Company during the applicable
                        fiscal year, which shall be paid on the Bonus Payment
                        Date. Payment of any bonus earned under the Long-Term
                        Incentive Plan and proration thereof on termination of
                        your employment shall be governed by the terms of the
                        Long-Term Incentive Plan. Any bonus payments shall be
                        less applicable withholdings and deductions.

                  4.    Vacation. You will accrue 20 days of vacation each year
                        up to a maximum of 35 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.    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 $2,000 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) or
                        you terminate your employment for Good Reason (as
                        hereinafter defined) within twelve (12) months following
                        a Change of Control (as defined in Addendum "A"), 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.

                  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 contingent upon your

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                        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
                        twenty-four (24) months, (ii) pay you a pro rata portion
                        of your bonus, if any, as provided by Paragraph 3 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 two-year period following
                        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

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                        instead (i) continue to pay your base salary (but not
                        any employment benefits) on its regular payroll dates
                        for a period of thirty-six (36) months, (ii) pay you a
                        pro rata portion of your bonus, if any, as provided by
                        Paragraph 3 for the fiscal year in which such
                        termination occurs, less applicable withholdings and
                        deductions, and (iii) pay you an amount equal to three
                        (3) 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
                        three year 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 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).

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                        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.

                  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 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") National Rules for the
                        Resolution of Employment Disputes, as the exclusive
                        remedy for such controversy, claim or dispute. In any
                        such arbitration, the parties may

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                        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
                        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.

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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,

                                          ______________________________________
                                          Bernard Mariette
                                          President

Enclosure

ACKNOWLEDGED AND AGREED:

_________________________________
Robert B. McKnight, Jr.

Date Effective: ________, 2004

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                                   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~<PAGE>

                                                                    EXHIBIT 10.2

                               [QUICKSILVER LOGO]

                                 August 1, 2004

PERSONAL AND CONFIDENTIAL

Bernard Mariette
Quiksilver, Inc.
15202 Graham Street

Huntington Beach, CA 92649

Re:   Employment at Quiksilver

Dear Bernard:

            This letter ("Agreement") will confirm our understanding and
agreement regarding your continued employment with Quiksilver, Inc.
("Quiksilver" or the "Company"). This Agreement is effective August 1, 2004 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 President, currently reporting to the Chief Executive
                  Officer. 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 $45,833 per month
                  ($550,000 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 $45,833 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.

            3.    Bonus. For the fiscal year ending October 31, 2004 and each
                  fiscal year thereafter so long as such plans remain in effect
                  and the requisite stockholder approval of such plans under
                  Section 162(m) of the Internal Revenue Code has been obtained
                  to ensure the deductibility of payments made pursuant thereto,
                  you shall be eligible to receive a bonus under the Company's
                  stockholder approved Annual Incentive Plan and/or Long-Term
                  Incentive Plan of up to 300% of your original base salary

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                  hereunder based on achievement of certain incentive goals
                  established by the Compensation Committee of the Board of
                  Directors. Any bonus earned pursuant to the Annual Incentive
                  Plan shall be paid within ten (10) 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 for any reason other than termination
                  for Cause (as defined in Paragraph 9(b), but excluding
                  subparagraphs (i) and (ii) thereof), you shall be entitled to
                  receive a pro rata portion of the bonus otherwise payable to
                  you under the Annual Incentive Plan based upon the actual
                  number of days which you were actively employed by the Company
                  during the applicable fiscal year, which shall be paid on the
                  Bonus Payment Date. Payment of any bonus earned under the
                  Long-Term Incentive Plan and proration thereof on termination
                  of your employment shall be governed by the terms of the
                  Long-Term Incentive Plan. Any bonus payments shall be less
                  applicable withholdings and deductions.

            4.    Vacation. You will accrue 20 days of vacation each year up to
                  a maximum of 35 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.    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 $2,000 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) or you
                  terminate your employment for Good Reason (as hereinafter
                  defined) within twelve (12) months following a Change of
                  Control (as defined in Addendum "A"), 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.

            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 $1,000,000.
                  Our obligation to obtain and maintain this insurance is
                  contingent upon your

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                  establishing and maintaining insurability, and we are not
                  required to pay premiums for such a policy in excess of $2,500
                  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 your bonus, if any, as
                  provided by Paragraph 3 for the fiscal year in which such
                  termination occurs, less applicable withholdings and
                  deductions and (iii) pay you an amount equal to one and
                  one-half (1-1/2) 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 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

                                      ~3~
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                  Company will instead (i) continue to pay your base salary (but
                  not any employment benefits) on its regular payroll dates for
                  a period of thirty (30) months, (ii) pay you a pro rata
                  portion of your bonus, if any, as provided by Paragraph 3 for
                  the fiscal year in which such termination occurs, less
                  applicable withholdings and deductions, and (iii) pay you an
                  amount equal to two and one-half (2-1/2) 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 thirty (30) 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 France or 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 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).

                                      ~4~
<PAGE>

                  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.

            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 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") National
                  Rules for the Resolution of Employment Disputes, as the
                  exclusive remedy

                                      ~5~
<PAGE>

                  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 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.

                                      ~6~
<PAGE>

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,

                                              __________________________________
                                              Robert B. McKnight, Jr.
                                              Chief Executive Officer
Enclosure

ACKNOWLEDGED AND AGREED:

_______________________________
Bernard Mariette

Date Effective: _________, 2004

                                      ~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~

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