Document:

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                                                                    EXHIBIT 10.8

                                QUIKSILVER, INC.

                               INDEMNITY AGREEMENT

          THIS INDEMNITY AGREEMENT (the "Agreement") is made as of this _____
day of _____, 200_, by and between QUIKSILVER, INC., a Delaware corporation (the
"Company"), and ___________ (the "Indemnitee"), an ________ of the Company.

          A. The Indemnitee is currently serving as ______________________ of
the Company and in such capacity renders valuable services to the Company.

          B. The Company has investigated whether additional protective measures
are warranted to protect adequately its directors and officers against various
legal risks and potential liabilities to which such individuals are subject due
to their position with the Company and has concluded that additional protective
measures are warranted.

          C. In order to induce and encourage highly experienced and capable
persons such as the Indemnitee to continue to serve as officers and directors,
the Board of Directors has determined, after due consideration, that this
Agreement is not only reasonable and prudent, but necessary to promote and
ensure the best interests of the Company and its stockholders.

          NOW, THEREFORE, in consideration of the continued services of the
Indemnitee and as an inducement to the Indemnitee to continue to serve as
_________ of the Company, the Company and the Indemnitee do hereby agree as
follows:

          1. DEFINITIONS. As used in this Agreement, the following terms shall
have the meanings set forth below:

               (a) "Proceeding" shall mean any threatened, pending or completed
action, suit or proceeding, whether brought in the name of the Company or
otherwise and whether of a civil, criminal, administrative or investigative
nature, by reason of the fact that the Indemnitee is or was an officer and/or a
director of the Company, or is or was serving at the request of the Company as
director, officer, employee or agent of another enterprise, whether or not he is
serving in such capacity at the time any liability or Expense is incurred for
which indemnification or advancement of Expenses is to be provided under this
Agreement.

               (b) "Expenses" means, all costs, charges and expenses incurred in
connection with a Proceeding, including, without limitation, attorneys' fees,
disbursements and retainers, accounting and witness fees, travel and deposition
costs, expenses of investigations, judicial or administrative proceedings or
appeals, and any expenses of establishing a right to indemnification pursuant to
this Agreement or otherwise, including reasonable compensation for time spent by
the Indemnitee in connection with the investigation, defense or appeal of a
Proceeding or action for indemnification for which he is not otherwise
compensated by the Company or any third party; provided, however, that the term
"Expenses" includes only those

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costs, charges and expenses incurred with the Company's consent, which consent
shall not be unreasonably withheld; and provided further, that the term
"Expenses" does not include the amount of damages, judgments, amounts paid in
settlement, fines, penalties or excise taxes under the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), actually levied against the
Indemnitee or paid by or on behalf of the Indemnitee.

          2. AGREEMENT TO SERVE. The Indemnitee agrees to continue to serve as
____________of the Company at the will of the Company for so long as Indemnitee
is duly elected or appointed or until such time as Indemnitee tenders a
resignation in writing or is terminated, as ____________ by the Company. Nothing
in this Agreement shall be construed to create any right in Indemnitee to
continued service as _________ of the Company.

          3. INDEMNIFICATION IN THIRD PARTY ACTIONS. The Company shall indemnify
the Indemnitee in accordance with the provisions of this Section 3 if the
Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any Proceeding (other than a Proceeding by or in the right of the
Company to procure a judgment in its favor), by reason of the fact that the
Indemnitee is or was an officer and/or a director of the Company or is or was
serving at the request of the Company as a director, officer, employee or agent
of another enterprise, against all Expenses, damages, judgments, amounts paid in
settlement, fines, penalties and ERISA excise taxes actually and reasonably
incurred by the Indemnitee in connection with the defense or settlement of such
Proceeding, to the fullest extent permitted by Delaware law; provided that any
settlement shall be approved in writing by the Company.

          4. INDEMNIFICATION IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY.
The Company shall indemnify the Indemnitee in accordance with the provisions of
this Section 4 if the Indemnitee is a party to or threatened to be made a party
to or otherwise involved in any Proceeding by or in the right of the Company to
procure a judgment in its favor by reason of the fact that the Indemnitee is or
was an officer and/or a director of the Company, or is or was serving at the
request of the Company as a director, officer, employee or agent of another
enterprise, against all Expenses actually and reasonably incurred by Indemnitee
in connection with the defense or settlement of such Proceeding, to the fullest
extent permitted by Delaware law.

          5. CONCLUSIVE PRESUMPTION REGARDING STANDARD OF CONDUCT. The
Indemnitee shall be conclusively presumed to have met the relevant standards of
conduct required by Delaware law for indemnification pursuant to this Agreement,
unless a determination is made that the Indemnitee has not met such standards by
(i) the Board of Directors of the Company by a majority vote of a quorum thereof
consisting of directors who were not parties to such Proceeding, (ii) the
stockholders of the Company by majority vote, or (iii) in a written opinion of
independent legal counsel, the selection of whom has been approved by the
Indemnitee in writing.

          6. INDEMNIFICATION OF EXPENSES OF SUCCESSFUL PARTY. Notwithstanding
any other provision of this Agreement, to the extent that the Indemnitee has
been successful on the merits or otherwise in defense of any Proceeding or in
defense of any claim, issue or matter therein, including the dismissal of a
Proceeding without prejudice, the Indemnitee shall be

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indemnified against all Expenses incurred in connection therewith to the fullest
extent permitted by Delaware law.

          7. ADVANCES OF EXPENSES. The Expenses incurred by the Indemnitee in
any Proceeding shall be paid promptly by the Company in advance of the final
disposition of the Proceeding at the written request of the Indemnitee to the
fullest extent permitted by Delaware law; provided that the Indemnitee shall
undertake in writing to repay such amount to the extent that it is ultimately
determined that the Indemnitee is not entitled to indemnification by the
Company.

          8. PARTIAL INDEMNIFICATION. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the Expenses, damages, judgments, amounts paid in settlement, fines,
penalties or ERISA excise taxes actually and reasonably incurred by Indemnitee
in the investigation, defense, appeal or settlement of any Proceeding but not,
however, for the total amount thereof, the Company shall nevertheless indemnify
the Indemnitee for the portion of such Expenses, damages, judgments, amounts
paid in settlement, fines, penalties or ERISA excise taxes to which the
Indemnitee is entitled.

          9. INDEMNIFICATION PROCEDURE; DETERMINATION OF RIGHT TO
INDEMNIFICATION.

               (a) Promptly after receipt by the Indemnitee of notice of the
commencement of any Proceeding with respect to which the Indemnitee intends to
claim indemnification pursuant to this Agreement, the Indemnitee will notify the
Company of the commencement thereof. The omission to so notify the Company will
not relieve the Company from any liability which it may have to the Indemnitee
under this Agreement or otherwise.

               (b) If a claim under this Agreement is not paid by or on behalf
of the Company within 30 days of receipt of written notice thereof, Indemnitee
may at any time thereafter bring suit in any court of competent jurisdiction
against the Company to enforce the right to indemnification provided by this
Agreement. It shall be a defense to any such action (other than an action
brought to enforce a claim for Expenses incurred in defending any Proceeding in
advance of its final disposition where the required undertaking, if any is
required, has been tendered to the Company) that the Indemnitee has failed to
meet the standard of conduct that makes it permissible under Delaware law for
the Company to indemnify the Indemnitee for the amount claimed. The burden of
proving by clear and convincing evidence that indemnification or advancement of
Expenses are not appropriate shall be on the Company. The failure of the
directors or stockholders of the Company or independent legal counsel to have
made a determination prior to the commencement of such Proceeding that
indemnification or advancement of Expenses are proper in the circumstances
because the Indemnitee has met the applicable standard of conduct shall not be a
defense to the action or create a presumption that the Indemnitee has not met
the applicable standard of conduct.

               (c) The Indemnitee's Expenses incurred in connection with any
action concerning Indemnitee's right to indemnification or advancement of
Expenses in whole or in part pursuant to this Agreement shall also be
indemnified by the Company regardless of the

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outcome of such action, unless a court of competent jurisdiction determines that
each of the material claims made by the Indemnitee in such action was not made
in good faith or was frivolous.

               (d) With respect to any Proceeding for which indemnification is
requested, the Company will be entitled to participate therein at its own
expense and, except as otherwise provided below, to the extent that it may wish,
the Company may assume the defense thereof, with counsel satisfactory to the
Indemnitee. After notice from the Company to the Indemnitee of its election to
assume the defense of a Proceeding, the Company will not be liable to the
Indemnitee under this Agreement for any Expenses subsequently incurred by the
Indemnitee in connection with the defense thereof, other than reasonable costs
of investigation or as otherwise provided below. The Company shall not settle
any Proceeding in any manner which would impose any penalty or limitation on the
Indemnitee without the Indemnitee's written consent. The Indemnitee shall have
the right to employ counsel in any Proceeding, but the Expenses of such counsel
incurred after notice from the Company of its assumption of the defense thereof
shall be at the expense of the Indemnitee, unless (i) the employment of counsel
by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall
have reasonably concluded that there may be a conflict of interest between the
Company and the Indemnitee in the conduct of the defense of a Proceeding, or
(iii) the Company shall not in fact have employed counsel to assume the defense
of a Proceeding, in each of which cases the Expenses of the Indemnitee's counsel
shall be at the expense of the Company. The Company shall not be entitled to
assume the defense of any Proceeding brought by or on behalf of the Company or
as to which the Indemnitee has concluded that there may be a conflict of
interest between the Company and the Indemnitee.

          10. LIMITATIONS ON INDEMNIFICATION. No payments pursuant to this
Agreement shall be made by the Company:

               (a) to indemnify or advance Expenses to the Indemnitee with
respect to actions initiated or brought voluntarily by the Indemnitee and not by
way of defense except with respect to actions brought to establish or enforce a
right to indemnification under this Agreement or any other statute or law or
otherwise as required under Delaware law, but such indemnification or
advancement of Expenses may be provided by the Company in specific cases if
approved by the Board of Directors by a majority vote of a quorum thereof
consisting of directors who are not parties to such action;

               (b) to indemnify the Indemnitee for any Expenses, damages,
judgments, amounts paid in settlement, fines, penalties or ERISA excise taxes
for which payment is actually made to the Indemnitee under a valid and
collectible insurance policy, except in respect of any excess beyond the amount
paid under such insurance;

               (c) to indemnify the Indemnitee for any Expenses, damages,
judgments, amounts paid in settlement, fines, penalties or ERISA excise taxes
for which the Indemnitee has been or is indemnified by the Company otherwise
than pursuant to this Agreement;

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               (d) indemnify the Indemnitee for any Expenses, damages,
judgments, amounts paid in settlement, fines or penalties sustained in any
Proceeding for an accounting of profits made from the purchase or sale by
Indemnitee of securities of the Company pursuant to the provisions of Section
16(b) of the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder or similar provisions of any federal, state
or local statutory law;

               (e) to indemnify the Indemnitee for any Expenses, damages,
judgments, amounts paid in settlement, fines, penalties or ERISA excise taxes
resulting from Indemnitee's conduct which is finally adjudicated by a court of
competent jurisdiction (i) to have been knowingly fraudulent, a knowing
violation of law, deliberately dishonest or in violation of Indemnitee's duty of
loyalty to the Company or (ii) to have involved willful misconduct on the part
of the Indemnitee; or

               (f) if a court of competent jurisdiction shall enter a final
order, decree or judgment to the effect that such indemnification or advancement
of Expenses hereunder is unlawful under the circumstances.

          11. INDEMNIFICATION HEREUNDER NOT EXCLUSIVE. The indemnification and
advancement of Expenses provided by this Agreement shall not be deemed to limit
or preclude any other rights to which the Indemnitee may be entitled under the
Certificate of Incorporation, the Bylaws, any agreement, any vote of
stockholders or disinterested directors, Delaware law, or otherwise, both as to
action in Indemnitee's official capacity and as to action in any other capacity
on behalf of the Company while holding such office.

          12. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon, and
shall inure to the benefit of (i) the Indemnitee and Indemnitee's heirs,
personal representatives, executors, administrators and assigns and (ii) the
Company and its successors and assigns, including any transferee of all or
substantially all of the Company's assets and any successor or assign of the
Company by merger or by operation of law.

          13. SEPARABILITY. Each provision of this Agreement is a separate and
distinct agreement and independent of the other, so that if any provision hereof
shall be held to be invalid or unenforceable for any reason, such invalidity or
unenforceability shall not affect the validity or enforceability of the other
provisions hereof. To the extent required, any provision of this Agreement may
be modified by a court of competent jurisdiction to preserve its validity and to
provide the Indemnitee with the broadest possible indemnification and
advancement of Expenses permitted under Delaware law. If this Agreement or any
portion thereof is invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify Indemnitee as to
Expenses, damages, judgments, amounts paid in settlement, fines, penalties or
ERISA excise taxes with respect to any Proceeding to the full extent permitted
by any applicable portion of this Agreement that shall not have been invalidated
or by any applicable provision of Delaware law or the law of any other
jurisdiction.

          14. HEADINGS. The Headings used herein are for convenience only and
shall not be used in construing or interpreting any provision of the Agreement.

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          15. GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware.

          16. AMENDMENTS AND WAIVERS. No amendment, waiver, modification,
termination or cancellation of this Agreement shall be effective unless in
writing and signed by the party against whom enforcement is sought. The
indemnification rights afforded to the Indemnitee hereby are contract rights and
may not be diminished, eliminated or otherwise affected by amendments to the
Company's Certificate of Incorporation, Bylaws or agreements, including any
directors' and officers' liability insurance policies, whether the alleged
actions or conduct giving rise to indemnification hereunder arose before or
after any such amendment. No waiver of any provision of this Agreement shall be
deemed or shall constitute a waiver of any other provision hereof, whether or
not similar, nor shall any waiver constitute a continuing waiver.

          17. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each
party and delivered to the other.

          18. NOTICES. All notices and communications shall be in writing and
shall be deemed duly given on the date of delivery if personally delivered or
the date of receipt or refusal indicated on the return receipt if sent by first
class mail, postage prepaid, registered or certified, return receipt requested,
to the following addresses, unless notice of a change of address in duly given
by one party to the other, in which case notices shall be sent to such changed
address:

          If to the Company: Quiksilver, Inc.
                             15202 Graham Street
                             Huntington Beach, CA 92649
                             Attention: General Counsel
                             Telephone: 714-889-4215
                             Facsimile: 714-889-4250

          If to M._________: ____________________
                             ____________________
                             ____________________
                             Telephone: _________

          19. SUBROGATION. In the event of any payment under this Agreement to
or on behalf of the Indemnitee, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of the Indemnitee against any
person, firm, corporation or other entity (other than the Company) and the
Indemnitee shall execute all papers requested by the Company and shall do any
and all things that may be necessary or desirable to secure such rights for the
Company, including the execution of such documents necessary or desirable to
enable the Company to effectively bring suit to enforce such rights.

          20. SUBJECT MATTER AND PARTIES. The intended purpose of this Agreement
is to provide for indemnification and advancement of Expenses, and this
Agreement is not intended

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to affect any other aspect of any relationship between the Indemnitee and the
Company and is not intended to and shall not create any rights in any person as
a third party beneficiary hereunder.

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                        "INDEMNITEE"

                                        ----------------------------------------
                                        [NAME]

                                        "COMPANY"

                                        QUIKSILVER, INC., a Delaware corporation

                                        By:
                                            ------------------------------------
                                        Its:
                                             -----------------------------------

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                                                                EXHIBIT 10.11

                                QUIKSILVER, INC.

                             1996 STOCK OPTION PLAN
                       NONSTATUTORY STOCK OPTION AGREEMENT
                        INCENTIVE STOCK OPTION AGREEMENT
                 NOTICE OF EXERCISE OF NONSTATUTORY STOCK OPTION
                  NOTICE OF EXERCISE OF INCENTIVE STOCK OPTION

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                                QUIKSILVER, INC.

                             1996 STOCK OPTION PLAN

         1. Purpose. The purposes of this Plan are to attract and retain the
best available personnel for positions of substantial responsibility, to provide
additional incentive to the Employees and Consultants of the Company and to
promote the success of the Company's business.

                  Options granted hereunder may be either Incentive Stock
Options or Nonstatutory Stock Options, at the discretion of the Board and as
reflected in the terms of the written option agreement.

         2. Definitions. As used herein, the following definitions shall apply:

                  (a) "Board" shall mean the Board of Directors of the Company.

                  (b) "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                  (c) "Committee" shall mean the Committee appointed by the
Board of Directors in accordance with paragraph (b) of Section 3 of the Plan, if
one is appointed.

                  (d) "Common Stock" shall mean the Common Stock of the Company.

                  (e) "Company" shall mean Quiksilver, Inc., a Delaware
corporation.

                  (f) "Consultant" shall mean any person who is engaged by the
Company or any Parent or Subsidiary to render consulting services and is
compensated for such consulting services, including compensation through Options
granted under this Plan; provided that the term Consultant shall not include
Directors who are not compensated for their services or are paid only a
director's fee by the Company.

                  (g) "Continuous Status as an Employee or Consultant" shall
mean the absence of any interruption or termination of service as an Employee or
Consultant (as the case may be). Continuous Status as an Employee or Consultant
shall not be considered interrupted in the case of sick leave, military leave,
or any other leave of absence approved by the Board; provided that such leave is
for a period of not more than 90 days or reemployment upon the expiration of
such leave is guaranteed by contract or statute.

                  (h)      "Director" shall mean a member of the Board.

                  (i) "Disability" shall mean a total and permanent disability
as that term is defined in Section 22(e)(3) of the Code.

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                  (j) "Disinterested Person" shall have the meaning set forth in
Rule 16b-3 and shall mean a Director who has not, during the one-year period
prior to the date he or she is appointed to the Committee or during the period
he or she is on the Committee, received an option grant or stock issuance under
this Plan or any other stock plan of the Company or any Parent or Subsidiary of
the Company, other than as permitted by Rule 16b-3; provided, however, if Rule
16b-3 is amended after the effective date of this Plan, "Disinterested Person"
shall have the meaning set forth in such amended Rule 16b-3.

                  (k) "Employee" shall mean any person, including officers and
directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a director's fee by the Company shall not be sufficient to
constitute "employment" by the Company.

                  (l) "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.

                  (m) "Fair Market Value" shall mean: (i) if Shares are
exchange-traded or traded on the NASDAQ National Market System ("NMS"), the
closing sale or last sale price per share of the Shares; (ii) if Shares are
regularly traded in any over-the-counter market other than NMS, the average of
the bid and asked prices per share of the Shares; and (iii) if Shares are not
traded as described in (i) and (ii) of this Section 2(m), the per share fair
market value of the Shares as determined in good faith by the Board on such
basis as the Board in its sole discretion shall choose. Fair Market Value as of
a given date with respect to subparagraphs (i), (ii) and (iii) shall be
determined as of the close of business on the day prior to the date of
determination, or if no trading in the Shares takes place on such date, on the
next preceding trading day on which there has been such trading.

                  (n) "Incentive Stock Option" shall mean an Option intended to
qualify as an incentive stock option within the meaning of Section 422(b) of the
Code.

                  (o) "Nonstatutory Stock Option" shall mean an Option not
intended to qualify as an Incentive Stock Option.

                  (p) "Option" shall mean a stock option granted pursuant to the
Plan.

                  (q) "Optionee" shall mean an Employee or Consultant who
receives an Option.

                  (r) "Option Termination Date" shall mean the date of
expiration of the term of such Option as set forth in the written option
agreement.

                  (s) "Parent" shall mean a "parent corporation", whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (t) "Plan" shall mean this Quiksilver, Inc. 1996 Stock Option
Plan.

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                  (u) "Restricted Stockholder" shall mean an Optionee who, at
the time the Option is granted, owns stock representing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or any Parent or Subsidiary of the Company.

                  (v) "Rule 16b-3" shall mean Rule 16b-3 promulgated by the
Securities and Exchange Commission under the Exchange Act, as such rule may be
amended from time to time.

                  (w) "Share" shall mean a share of the Common Stock, as
adjusted in accordance with Section 10 of the Plan.

                  (x) "Subsidiary" shall mean a "subsidiary corporation",
whether now or hereafter existing, as defined in Section 424(f) of the Code.

                  (y) "Terminating Transaction" shall mean any of the following
events: (a) the dissolution or liquidation of the Company; (b) a reorganization,
merger or consolidation of the Company with one or more other corporations
(except with respect to a transaction, the purpose of which is to change the
domicile or name of the Company), as a result of which the Company goes out of
existence or becomes a subsidiary of another corporation (which shall be deemed
to have occurred if another corporation shall own, directly or indirectly, fifty
percent (50%) or more of the aggregate voting power of all outstanding equity
securities of the Company); or (c) a sale of all or substantially all of the
Company's assets.

         3.   Administration.

                  (a) The Plan shall be administered by the Board, which shall
have sole authority in its absolute discretion, subject to the terms of Section
3(b) herein, (i) to determine which Employees and Consultants shall receive
Options, (ii) subject to the express provisions of the Plan, to determine the
time when Options shall be granted, the number of Shares subject to the Options,
the exercise prices, and the terms and conditions of Options other than those
terms and conditions fixed under the Plan, and (iii) to interpret the provisions
of the Plan and any Option granted under the Plan. The Board shall adopt by
resolution such rules and regulations as may be required to carry out the
purposes of the Plan and shall have authority to do everything necessary or
appropriate to administer the Plan. All decisions, determinations and
interpretations of the Board shall be final and binding on all Optionees.

                  (b) The Board may delegate administration of the Plan to a
Committee of no less than two Directors, each of which shall be Disinterested
Persons unless the Board expressly declares that it does not require the Plan to
comply with the requirements of Rule 16b-3. The Board may from time to time
remove members from, or add members to, the Committee, and vacancies on the
Committee shall be filled by the Board. Furthermore, the Board at any time by
resolution may abolish the Committee and revest in the Board the administration
of the Plan. (For purposes of this Plan document, the term "Board" shall mean
the Committee to the extent that the Board's powers have been delegated to the
Committee.)

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         4.  Eligibility.

                  (a) Incentive Stock Options may be granted only to Employees
who render services which contribute to the Company. Nonstatutory Stock Options
may be granted only to Employees or Consultants who render services which
contribute to the Company. Options may not be granted to Directors who are not
Employees of the Company.

                  (b) The Plan shall not confer upon any Optionee any right to
continue as an Employee or Consultant of the Company, nor shall it interfere in
any way with Optionee's right or the Company's right to terminate Optionee's
employment or relationship as a Consultant at any time, with or without cause.

                  (c) The determination as to whether an Employee or Consultant
is eligible to receive Options hereunder shall be made by the Board in its sole
discretion, and the decision of the Board shall be binding and final.

         5.  Number of Shares. The maximum aggregate number of Shares which may
be optioned and sold under this Plan is Seven Hundred Thousand (700,000) Shares
of authorized but unissued Common Stock of the Company. No Employee or
Consultant shall receive Options for more than 100,000 shares over any one-year
period. In the event that Options granted under the Plan shall terminate or
expire without being exercised, in whole or in part, the Shares subject to such
unexercised Options may again be optioned and sold under this Plan.

         6.  Term of the Plan. The Plan shall be effective as of March 22, 1996,
and shall continue in effect until March 21, 2006, unless terminated earlier.

         7.  Exercise Price and Consideration.

                  (a) The per Share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board in its sole discretion, but, in the case of Incentive Stock Options only,
shall be subject to the following:

                           (i) for an Incentive Stock Option granted to a
         Restricted Stockholder, the per Share exercise price shall be no less
         than 110% of the Fair Market Value per Share on the date of grant; and

                           (ii) for an Incentive Stock Option granted to any
         Employee (other than a Restricted Stockholder), the per Share exercise
         price shall be no less than 100% of the Fair Market Value per Share on
         the date of grant.

                  (b) The consideration to be paid for the Shares to be issued
upon exercise of an Option shall consist of full payment in cash or cash
equivalents or, with the consent of the Board, one of the alternative forms
specified below:

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                           (i) full payment in shares of Common Stock (duly
         endorsed for transfer to the Company) held by the Optionee for the
         requisite period necessary to avoid a charge to the Company's earnings
         for financial reporting purposes and valued at Fair Market Value on the
         date of delivery; or

                           (ii) full payment through a combination of cash or
         cash equivalents and shares of Common Stock (duly endorsed for transfer
         to the Company) held by the Optionee for the requisite period necessary
         to avoid a charge to the Company's earnings for financial reporting
         purposes and valued at Fair Market Value on the date of delivery; or

                           (iii) full payment effected through a broker-dealer
         sale and remittance procedure pursuant to which the Optionee (A) shall
         provide irrevocable written instructions to a designated brokerage firm
         to effect the immediate sale of the purchased shares and remit to the
         Company, out of the sale proceeds available on the settlement date,
         sufficient funds to cover the aggregate option price payable for the
         purchased Shares plus all applicable Federal and State income and
         employment taxes required to be withheld by the Company by reason of
         such purchase and (B) shall provide written directives to the Company
         to deliver the certificates for the purchased Shares directly to such
         brokerage firm in order to complete the sale transaction; or

                           (iv) any other legal consideration that may be
         acceptable to the Board.

         8.  Exercise of Options.

                  (a) Vesting of Options. Any Option granted hereunder shall be
exercisable at such times and under such conditions as determined by the Board,
including performance criteria with respect to the Company and/or the Optionee,
and as shall be permissible under the terms of the Plan.

                  (b) Procedure for Exercise. An Option may be exercised at any
time as to all or any portions of the Shares as to which it is then exercisable,
except that an Option may not be exercised for a fraction of a Share and shall
be subject to any provision in the written option agreement governing the
minimum number of Shares as to which the Option may be exercised. An Option
shall be deemed to be exercised when written notice of such exercise has been
given to the Company in accordance with the terms of the Option by the person
entitled to exercise the Option and full payment for the Shares with respect to
which the Option is exercised has been received by the Company. Full payment
may, as authorized by the Board, consist of any consideration and method of
payment allowable under Section 7(b) of the Plan.

                  (c) Termination of Options. All installments of an Option
shall expire and terminate on such date(s) as the Board shall determine, but in
no event later than ten (10) years from the date such Option was granted (except
that an Incentive Stock Option granted to a Restricted Stockholder shall by its
terms not be exercisable after the expiration of five (5) years from the date
such Option was granted).

                                        5

<PAGE>

                  (d) Death or Termination of Service of Optionee. The following
provisions shall govern the exercise period applicable to any Options held by an
Optionee at the time of his or her death or termination of service with the
Company or any Parent or Subsidiary of the Company:

                           (i) Termination of Continuous Status as an Employee
         or Consultant. In the event of termination of an Optionee's Continuous
         Status as an Employee or Consultant (as the case may be) for any reason
         other than Optionee's death or Disability, such Optionee may only
         exercise the Option within three (3) months (or such shorter period as
         specified in the written option agreement) after the date of such
         termination.

                           (ii) Disability of Optionee. In the event of
         termination of an Optionee's Continuous Status as an Employee or
         Consultant as a result of the Optionee's Disability, the Optionee may
         only exercise the Option within twelve (12) months (or such shorter
         period as is specified in the written option agreement) from the date
         of such termination.

                           (iii) Death of Optionee. In the event of termination
         of an Optionee's Continuous Status as an Employee or Consultant as a
         result of the Optionee's death, the Option may only be exercised any
         time within twelve (12) months (or such shorter period as is specified
         in the written option agreement) following the date of death by the
         Optionee's estate or by a person who acquired the right to exercise the
         Option by bequest or inheritance.

                           (iv) Limitations. Each Option shall, during the
         limited exercise period under this Section 8(d), be exercisable only as
         to the Shares for which the Option is exercisable on the date of the
         Optionee's death or termination of service with the Company. Under no
         circumstances shall any Option become exercisable under this Section
         8(d) after the Option Termination Date. Upon the earlier of the
         expiration of such limited exercise period or the Option Termination
         Date, the Option shall terminate and cease to be exercisable.

                           (v) Immediate Termination. Should (A) the Optionee's
         Continuous Status as an Employee or Consultant be terminated for
         misconduct (including, but not limited to, any act of dishonesty,
         willful misconduct, fraud or embezzlement) or (B) the Optionee make any
         unauthorized use or disclosure of confidential information or trade
         secrets of the Company or any Parent or Subsidiary, then in any such
         event all outstanding Options granted to the Optionee under this Plan
         shall terminate immediately and cease to be exercisable.

                           (vi) Board Discretion to Accelerate. The Board shall
         have complete discretion, exercisable either at the time the Option is
         granted or at any time the Option remains outstanding, to permit one or
         more Options granted under this Plan to be exercised during the limited
         exercise period applicable under this Section 8(d), not only for the
         number of Shares for which each such Option is exercisable at the time
         of the

                                        6

<PAGE>

         Optionee's death or termination of service but also for one or more
         subsequent installments of Shares for which the Option would otherwise
         have become exercisable had such death or termination of service not
         occurred.

                  (e) Extensions. Notwithstanding the provisions covering the
exercisability of Options following death or termination of service, as
described in Section 8(d), the Board may, in its sole discretion, with the
consent of the Optionee or the Optionee's estate (in the case of the death of
Optionee), extend the period of time during which the Option shall remain
exercisable, provided that in no event shall such extension go beyond the Option
Termination Date. In the case of Incentive Stock Options, extensions under this
Section 8(e) may result in loss of the favorable treatment accorded to incentive
stock options under the Code.

         9.  Restrictions on Grants of Options and Issuance of Shares.

                  (a) Regulatory Approvals. No Shares shall be issued or
delivered upon exercise of an Option unless and until there shall have been
compliance with all applicable requirements of the Securities Act of 1933, as
amended, (the "1933 Act"), and any other requirement of law or of any regulatory
body having jurisdiction over such issuance and delivery. The inability of the
Company to obtain any required permits, authorizations or approvals necessary
for the lawful issuance and sale of any Shares hereunder on terms deemed
reasonable by the Board shall relieve the Company, the Board, and any Committee
of any liability in respect of the non-issuance or sale of such Shares as to
which such requisite permits, authorizations, or approvals shall not have been
obtained.

                  (b) Representations and Warranties. As a condition to the
granting or exercise of any Option, the Board may require the person receiving
or exercising such Option to make any representation and/or warranty to the
Company as may be required (or deemed appropriate by the Board, in its
discretion) under any applicable law or regulation, including but not limited to
a representation that the Option and/or Shares are being acquired only for
investment and without any present intention to sell or distribute such Option
and/or Shares, if such a representation is required under the 1933 Act or any
other applicable law, rule, or regulation.

                  (c) Stockholder Approval. The exercise of Options under the
Plan also is conditioned on approval of the Plan by the Company's Stockholders,
and no Option shall be exercisable hereunder unless and until the Plan has been
so approved.

         10. Option Adjustments.

                  (a) Change in Capitalization. If the outstanding shares of
Common Stock of the Company are increased, decreased, changed into or exchanged
for a different number or kind of shares of the Company through reorganization,
recapitalization, reclassification, stock dividend, stock split or reverse stock
split, upon authorization by the Board an appropriate and proportionate
adjustment shall be made in the number or kind of shares, and the per-share
option price thereof, which may be issued in the aggregate and to any individual
Optionees under the Plan upon exercise of Options granted under the Plan;
provided, however, that no such

                                        7

<PAGE>

adjustment need be made if, upon the advice of counsel, the Board determines
that such adjustment may result in the receipt of federal taxable income to
holders of Options granted under the Plan or the holders of Common Stock or
other classes of the Company's securities.

                  (b) Corporate Reorganizations. Upon the occurrence of a
Terminating Transaction, as of the effective date of such Terminating
Transaction, the Plan and any then outstanding Options (whether or not vested)
shall terminate unless (i) provision is made in writing in connection with such
transaction for the continuance of the Plan and for the assumption of such
Options, or for the substitution for such Options of new options covering the
securities of a successor corporation or an affiliate thereof, with appropriate
adjustments as to the number and kind of securities and exercise prices, in
which event the Plan and such outstanding Options shall continue or be replaced,
as the case may be, in the manner and under the terms so provided; or (ii) the
Board otherwise shall provide in writing for such adjustments as it deems
appropriate in the terms and conditions of the then-outstanding Options (whether
or not vested), including without limitation (A) accelerating the vesting of
outstanding Options, and/or (B) providing for the cancellation of Options and
their automatic conversion into the right to receive the securities or other
properties which a holder of the Shares underlying such Options would have been
entitled to receive upon such Terminating Transaction had such Shares been
issued and outstanding (net of the appropriate option exercise prices). If,
pursuant to the foregoing provisions of this paragraph (b), the Plan and the
Options shall terminate by reason of the occurrence of a Terminating Transaction
without provision for any of the action(s) described in clause (i) or (ii)
hereof, then any Optionee holding outstanding Options shall have the right, at
such time immediately prior to the consummation of the Terminating Transaction
as the Board shall designate, to exercise his or her Options to the full extent
not theretofore exercised, including any portion which has not yet become
exercisable.

         11. Option Agreement. The terms and conditions of Options granted under
the Plan shall be evidenced by a written option agreement executed by the
Company and the person to whom the Option is granted. Each option agreement
shall incorporate the Plan by reference and shall include such provisions as are
determined to be necessary or appropriate by the Board.

         12. Limitations on Incentive Stock Options. In the event that the
aggregate Fair Market Value of Shares (determined as of the date of grant of the
Option covering such Shares) with respect to which Incentive Stock Options are
exercisable for the first time by an Employee during any calendar year under
this Plan and any other plan of the Company exceeds $100,000, Options with
respect to and to the extent of such excess shall be treated as Nonstatutory
Stock Options. This Section 12 shall be applied by taking Options which are
intended to be Incentive Stock Options into account in the order in which they
were granted.

         13. Amendment or Termination of the Plans.

                  (a) Board Authority. The Board may amend, suspend, alter, or
terminate the Plan at any time. To the extent necessary or desirable to comply
with Rule 16b-3 of the Exchange Act, the Code or any other applicable law or
regulation, the Company may obtain

                                        8

<PAGE>

stockholder approval of any amendment to the Plan only in such a manner and to
such a degree as required under applicable law.

                  (b) Limitation on Board Authority. Furthermore, the Plan may
not, without the approval of the stockholders, be amended in any manner that
would cause Incentive Stock Options issued hereunder to fail to qualify as
Incentive Stock Options as defined in Section 422(b) of the Code.
Notwithstanding the foregoing, no amendment, suspension or termination of the
Plan shall adversely affect Options granted on or prior to the date thereof, as
evidenced by the execution of an option agreement by both the Company and the
Optionee, without the consent of such Optionee.

                  (c) Contingent Grants Based on Amendments. Options may be
granted in reliance on and consistent with any amendment adopted by the Board
and which is necessary to enable such Options to be granted under the Plan, even
though such amendment requires future stockholder approval; provided, however,
that any such contingent Option by its terms may not be exercised prior to
stockholder approval of such amendment, and provided further, that in the event
stockholder approval is not obtained within twelve months of the date of grant
of such contingent Option, then such contingent Option shall be deemed cancelled
and no longer outstanding.

         14. Options Not Transferable. Options granted under this Plan may not
be sold, pledged, hypothecated, assigned, encumbered, gifted or otherwise
transferred or alienated in any manner, either voluntarily or involuntarily by
operation of law, other than by will or the laws of descent or distribution, and
may be exercised during the lifetime of an Optionee only by such Optionee.

         15. No Rights in Shares Before Issuance and Delivery. Neither the
Optionee, his or her estate nor his or her transferees by will or the laws of
descent and distribution shall be, or have any rights or privileges of, a
stockholder of the Company with respect to any Shares issuable upon exercise of
the Option unless and until certificates representing such Shares shall have
been issued and delivered notwithstanding exercise of the Option. No adjustment
will be made for a dividend or other rights where the record date is prior to
the date such stock certificates are issued, except as provided in Section 10.

         16. Taxes. The Board shall make such provisions and take such steps as
it deems necessary or appropriate for the withholding of any federal, state,
local and other tax required by law to be withheld with respect to the grant or
exercise of an Option under the Plan, including, without limitation, the
deduction of the amount of any such withholding tax from any compensation or
other amounts payable to an Optionee by the Company, or requiring an Optionee
(or the Optionee's beneficiary or legal representative) as a condition of
granting or exercising an Option to pay to the Company any amount required to be
withheld, or to execute such other documents as the Board deems necessary or
desirable in connection with the satisfaction of any applicable withholding
obligation. In the discretion of the Board, upon exercise of a Nonstatutory
Stock Option, the Optionee may request the Company to withhold from the Shares
to be issued upon such exercise that number of Shares (based on the Fair

                                        9

<PAGE>

Market Value of the Shares as of the day notice of exercise is received by the
Company) that would satisfy any tax withholding requirement.

         17. Legends on Options and Stock Certificates. Each option agreement
and each certificate representing Shares acquired upon exercise of an Option
shall be endorsed with all legends, if any, required by applicable federal and
state securities laws to be placed on the option agreement and/or the
certificate. The determination of which legends, if any, shall be placed upon
option agreements and/or the certificates representing Shares shall be made by
the Board in its sole discretion and such decision shall be final and binding.

         18. Availability of Plan. A copy of this Plan shall be delivered to the
Secretary of the Company and shall be shown by the Secretary to any eligible
person making reasonable inquiry concerning the Plan.

         19. Applicable Law. This Plan shall be governed by and construed in
accordance with the laws of the State of California.

Date Plan approved by Board:  January 26, 1996

Date Plan approved by Shareholders:  March 22, 1996

                                       10

<PAGE>

                       NONSTATUTORY STOCK OPTION AGREEMENT

                  On this ___ day of __________, ____, ("Grant Date"),
QUIKSILVER, INC., a Delaware corporation (the "Company"), hereby grants to
____________________ (the "Optionee") an Option to purchase a total of
__________ shares of Common Stock (the "Shares"), on the terms and conditions
set forth below, and in all respects subject to the terms, definitions and
provisions of the Quiksilver, Inc. 1996 Stock Option Plan (the "Plan") adopted
by the Company, which is incorporated herein by reference. Unless otherwise
defined in this Option, the terms defined in the Plan shall have the same
defined meanings in this Option. In the event of any conflict between the
provisions of this Option and those of the Plan, the Plan shall control.

         1. NATURE OF THE OPTION. This Option is intended to qualify as a
Nonstatutory Stock Option.

         2. EXERCISE PRICE. The exercise price is $____ for each share of Common
Stock.

         3. VESTING AND EXERCISE OF OPTION. This Option shall be exercisable
during its term in accordance with the provisions of Section 8 of the Plan as
follows:

                  (a) VESTING. Subject to the limitations contained in this
Option and the Plan, this Option shall become exercisable in installments as
follows:

         Number of Shares                      Date of Earliest Exercise
           (Installment)                               (Vesting)

The installments provided for in this Section 3(a) are cumulative. Each such
installment which becomes exercisable pursuant to this Section shall remain
exercisable until expiration or earlier termination of this Option.

                  (b) METHOD OF EXERCISE. This Option shall be exercisable by
written notice (in a form designated by the Company) which shall state the
election to exercise the Option, the number of Shares in respect of which the
Option is being exercised, and such other representations and warranties of
Optionee as may be required by the Company pursuant to Section 9(b) of the Plan.
Such written notice shall be signed by Optionee and shall be delivered in person
or by certified mail to the President, Secretary or Chief Financial Officer of
the Company. The written notice shall be accompanied by payment of the exercise
price.

<PAGE>

                  No Shares will be issued pursuant to the exercise of an Option
unless such issuance and such exercise shall comply with all relevant provisions
of law. Assuming such compliance, for income tax purposes the Shares shall be
considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares.

                  (c) MINIMUM EXERCISE. The minimum number of Shares with
respect to which this Option may be exercised at any one time is One Hundred
(100) Shares, and this Option shall be exercised for whole Shares only.

         4.  CERTAIN REPRESENTATIONS AND WARRANTIES.

                  (a)      Optionee represents to the Company the following:

                                    (i)     that Optionee has read and
         understands the terms and provisions of the Plan, and hereby accepts
         this Agreement subject to all the terms and provisions of the Plan;

                                    (ii)    that Optionee shall accept as
         binding and final all decisions or interpretations of the Board or of
         the Committee upon any questions arising under the Plan; and

                                    (iii)   Optionee understands that, unless at
         the time of exercise of this Option a registration statement under the
         Securities Act of 1933, as amended, is in effect covering the Shares,
         as a condition to the exercise of the Option the Company may require
         Optionee to represent that Optionee is acquiring the Shares for
         Optionee's own account only and not with a view to, or for sale in
         connection with, any distribution of the Shares.

         5.  METHOD OF PAYMENT.

                  (a) The consideration to be paid for the Shares to be issued
upon exercise of the Option shall consist of full payment in cash or cash
equivalents or, with the consent of the Board or the Committee, one of the
alternative forms specified below:

                                    (i)    full payment in shares of Common
         Stock (duly endorsed for transfer to the Company) held by the Optionee
         for the requisite period necessary to avoid a charge to the Company's
         earnings for financial reporting purposes and valued at Fair Market
         Value on the date of delivery; or

                                    (ii)    full payment through a combination
         of cash or cash equivalents and shares of Common Stock (duly endorsed
         for transfer to the Company) held by the Optionee for the requisite
         period necessary to avoid a charge to the Company's earnings for
         financial reporting purposes and valued at Fair Market Value on the
         date of delivery; or

                                        2

<PAGE>

                                    (iii)   full payment effected through a
         broker-dealer sale and remittance procedure pursuant to which the
         Optionee (A) shall provide irrevocable written instructions to a
         designated brokerage firm to effect the immediate sale of the purchased
         shares and remit to the Company, out of the sale proceeds available on
         the settlement date, sufficient funds to cover the aggregate option
         price payable for the purchased Shares plus all applicable Federal and
         State income and employment taxes required to be withheld by the
         Company by reason of such purchase and (B) shall provide written
         directives to the Company to deliver the certificates for the purchased
         Shares directly to such brokerage firm in order to complete the sale
         transaction; or

                                    (iv)    any other legal consideration that
         may be acceptable to the Board or the Committee.

         6. RESTRICTIONS ON EXERCISE. This Option may not be exercised if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such Shares would constitute a violation of any applicable
federal or state securities or other law or regulation. As a condition to the
exercise of this Option, the Company may require Optionee to make any
representation and warranty to the Company as may be required by any applicable
law or regulation.

         7. TERMINATION OF STATUS AS AN EMPLOYEE OR CONSULTANT. In the event of
termination of Optionee's Continuous Status as an Employee or Consultant,
Optionee may, but only within three (3) months after the date of such
termination (but in no event later than the date of expiration of the term of
this Option as set forth in Section 11 below), exercise this Option to the
extent that Optionee was entitled to exercise it at the date of such
termination. To the extent that Optionee was not entitled to exercise this
Option at the date of such termination, or if Optionee does not exercise this
Option within the time specified herein, this Option shall terminate.

         8. DISABILITY OF OPTIONEE. Notwithstanding the provisions of Section 7
above, in the event of termination of Optionee's Continuous Status as an
Employee or Consultant as a result of Optionee's permanent and total disability
(as defined in Section 22(e)(3) of the Code), Optionee may, but only within
twelve (12) months from the date of termination of employment or relationship as
director or consultant (but in no event later than the date of expiration of the
term of this Option as set forth in Section 11 below), exercise this Option to
the extent Optionee was entitled to exercise it at the date of such termination.
To the extent that Optionee was not entitled to exercise this Option at the date
of termination, or if Optionee does not exercise such Option (which Optionee was
entitled to exercise) within the time specified herein, this Option shall
terminate.

         9. DEATH OF OPTIONEE. In the event of the death of Optionee during the
term of this Option while an Employee or Consultant of the Company and having
been in Continuous Status as an Employee or Consultant since the date of grant
of this Option, this Option may be exercised, at any time within twelve (12)
months following the date of death (but in no event later than the date of
expiration of the term of this Option as set forth in Section 11 below), by

                                        3

<PAGE>

Optionee's estate or by a person who acquired the right to exercise this Option
by bequest or inheritance, but only to the extent Optionee was entitled to
exercise this Option on the date of death.

         10. NON-TRANSFERABILITY OF OPTION. This Option may not be transferred
in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Optionee only by Optionee. The terms
of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of Optionee.

         11. TERM OF OPTION. In no event may this Option be exercised after
__________, 200_ (which date shall be no more than ten (10) years from the date
this Option was granted).

         12. NO EMPLOYMENT RIGHTS. Optionee acknowledges and agrees that the
vesting of Shares pursuant to Section 3 hereof is earned only through Optionee's
Continuous Status as an Employee or Consultant (not through the act of being
hired or engaged, being granted this Option or acquiring Shares hereunder).
Optionee further acknowledges and agrees that this Option, the Company's Plan
which is incorporated herein by reference, the transactions contemplated
hereunder and the vesting schedule set forth herein do not constitute an express
or implied promise of continued engagement as an Employee or Consultant for the
vesting period, for any period, or at all, and shall not interfere with
Optionee's right or the Company's right to terminate Optionee's employment or
consulting relationship at any time, with or without cause.

         13. WITHHOLDING OF TAXES. Optionee authorizes the Company to withhold,
in accordance with any applicable law, from any compensation payable to him any
taxes required to be withheld by federal, state, or foreign law as a result of
the grant of the Option or the issuance of stock pursuant to the exercise of the
Option.

         14. NOTICES. Any notice to be given to the Company shall be addressed
to the Company in care of its Secretary at its principal office, and any notice
to be given to Optionee shall be addressed to Optionee at the address given
below or at such other address as the Optionee may hereafter designate in
writing to the Company. Any such notice shall be deemed duly given upon personal
delivery or three business days after deposit in the United States mail,
registered or certified, postage prepaid.

                                        4

<PAGE>

         15. GOVERNING LAW. This Option shall be governed by and construed in
accordance with the internal laws of the State of California.

                                     QUIKSILVER, INC.

                                     By:___________________________________
                                     Title:________________________________

                                     ______________________________________
                                     _________________, Optionee

                                     Address:______________________________
                                     ______________________________________

                                        5

<PAGE>

                        INCENTIVE STOCK OPTION AGREEMENT

                  On this ___ day of __________, ____, ("Grant Date"),
QUIKSILVER, INC., a Delaware corporation (the "Company"), hereby grants to
____________________ (the "Optionee") an Option to purchase a total of
__________ shares of Common Stock (the "Shares"), on the terms and conditions
set forth below, and in all respects subject to the terms, definitions and
provisions of the Quiksilver, Inc. 1996 Stock Option Plan (the "Plan") adopted
by the Company, which is incorporated herein by reference. Unless otherwise
defined in this Option, the terms defined in the Plan shall have the same
defined meanings in this Option. In the event of any conflict between the
provisions of this Option and those of the Plan, the Plan shall control.

         1. NATURE OF THE OPTION. This Option is intended to qualify as an
Incentive Stock Option.

         2. EXERCISE PRICE. The exercise price is $___ for each share of Common
Stock, which price is not less than the fair market value per share of Common
Stock on the date of grant, as determined by the Board or the Committee.

         3. VESTING AND EXERCISE OF OPTION. This Option shall be exercisable
during its term in accordance with the provisions of Section 8 of the Plan as
follows:

                  (a) VESTING. Subject to the limitations contained in this
Option and the Plan, this Option shall become exercisable in installments as
follows:

         Number of Shares               Date of Earliest Exercise
          (Installment)                         (Vesting)

The installments provided for in this Section 3(a) are cumulative. Each such
installment which becomes exercisable pursuant to this Section shall remain
exercisable until expiration or earlier termination of this Option.

                  (b) METHOD OF EXERCISE. This Option shall be exercisable by
written notice (in a form designated by the Company) which shall state the
election to exercise the Option, the number of Shares in respect of which the
Option is being exercised, and such other representations and warranties of
Optionee as may be required by the Company pursuant to Section 9(b) of the Plan.
Such written notice shall be signed by Optionee and shall be delivered in person
or by certified mail to the President, Secretary or Chief Financial Officer of
the Company. The written notice shall be accompanied by payment of the exercise
price.

<PAGE>

                  No Shares will be issued pursuant to the exercise of an Option
unless such issuance and such exercise shall comply with all relevant provisions
of law. Assuming such compliance, for income tax purposes the Shares shall be
considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares.

                  (c) MINIMUM EXERCISE. The minimum number of Shares with
respect to which this Option may be exercised at any one time is One Hundred
(100) Shares, and this Option shall be exercised for whole Shares only.

         4.  CERTAIN REPRESENTATIONS AND WARRANTIES.

                  (a)      Optionee represents to the Company the following:

                           (i)  that Optionee has read and understands the terms
         and provisions of the Plan, and hereby accepts this Agreement subject
         to all the terms and provisions of the Plan;

                           (ii) that Optionee shall accept as binding and final
         all decisions or interpretations of the Board or of the Committee upon
         any questions arising under the Plan;

                           (iii) Optionee understands that the existence of the
         Plan and the execution of this Option are not sufficient by themselves
         to cause any exercise of any Incentive Stock Options granted under the
         Plan and this Option to qualify for favorable tax treatment through the
         application of Section 422(a) of the Code; and that Optionee must, in
         order to so qualify, individually meet by Optionee's own action all
         applicable requirements of Section 422, including without limitation,
         the requirement that no disposition of Shares may be made by Optionee
         within two (2) years from the date of the granting of the Option nor
         within one (1) year after the transfer of such Shares to Optionee; and

                           (iv) Optionee understands that, unless at the time of
         exercise of this Option a registration statement under the Securities
         Act of 1933, as amended, is in effect covering the Shares, as a
         condition to the exercise of the Option the Company may require
         Optionee to represent that Optionee is acquiring the Shares for
         Optionee's own account only and not with a view to, or for sale in
         connection with, any distribution of the Shares.

         5.  METHOD OF PAYMENT.

                  (a) The consideration to be paid for the Shares to be issued
upon exercise of the Option shall consist of full payment in cash or cash
equivalents or, with the consent of the Board or the Committee, one of the
alternative forms specified below:

                                        2

<PAGE>

                           (i) full payment in shares of Common Stock (duly
         endorsed for transfer to the Company) held by the Optionee for the
         requisite period necessary to avoid a charge to the Company's earnings
         for financial reporting purposes and valued at Fair Market Value on the
         date of delivery; or

                           (ii) full payment through a combination of cash or
         cash equivalents and shares of Common Stock (duly endorsed for transfer
         to the Company) held by the Optionee for the requisite period necessary
         to avoid a charge to the Company's earnings for financial reporting
         purposes and valued at Fair Market Value on the date of delivery; or

                           (iii) full payment effected through a broker-dealer
         sale and remittance procedure pursuant to which the Optionee (A) shall
         provide irrevocable written instructions to a designated brokerage firm
         to effect the immediate sale of the purchased shares and remit to the
         Company, out of the sale proceeds available on the settlement date,
         sufficient funds to cover the aggregate option price payable for the
         purchased Shares plus all applicable Federal and State income and
         employment taxes required to be withheld by the Company by reason of
         such purchase and (B) shall provide written directives to the Company
         to deliver the certificates for the purchased Shares directly to such
         brokerage firm in order to complete the sale transaction; or

                           (iv) any other legal consideration that may be
         acceptable to the Board or the Committee.

         6. RESTRICTIONS ON EXERCISE. This Option may not be exercised if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such Shares would constitute a violation of any applicable
federal or state securities or other law or regulation. As a condition to the
exercise of this Option, the Company may require Optionee to make any
representation and warranty to the Company as may be required by any applicable
law or regulation.

         7. TERMINATION OF STATUS AS AN EMPLOYEE. In the event of termination of
Optionee's Continuous Status as an Employee, Optionee may, but only within three
(3) months after the date of such termination (but in no event later than the
date of expiration of the term of this Option as set forth in Section 11 below),
exercise this Option to the extent that Optionee was entitled to exercise it at
the date of such termination. To the extent that Optionee was not entitled to
exercise this Option at the date of such termination, or if Optionee does not
exercise this Option within the time specified herein, this Option shall
terminate.

         8. DISABILITY OF OPTIONEE. Notwithstanding the provisions of Section 7
above, in the event of termination of Optionee's Continuous Status as an
Employee, as a result of Optionee's permanent and total disability (as defined
in Section 22(e)(3) of the Code), Optionee may, but only within twelve (12)
months from the date of termination of employment (but in no event later than
the date of expiration of the term of this Option as set forth in Section 11
below), exercise this Option to the extent Optionee was entitled to exercise it
at the date of such

                                        3

<PAGE>

termination. To the extent that Optionee was not entitled to exercise this
Option at the date of termination, or if Optionee does not exercise such Option
(which Optionee was entitled to exercise) within the time specified herein, this
Option shall terminate.

         9. DEATH OF OPTIONEE. In the event of the death of Optionee during the
term of this Option while an Employee of the Company and having been in
Continuous Status as an Employee since the date of grant of this Option, this
Option may be exercised, at any time within twelve (12) months following the
date of death (but in no event later than the date of expiration of the term of
this Option as set forth in Section 11 below), by Optionee's estate or by a
person who acquired the right to exercise this Option by bequest or inheritance,
but only to the extent Optionee was entitled to exercise this Option on the date
of death.

         10. NON-TRANSFERABILITY OF OPTION. This Option may not be transferred
in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Optionee only by Optionee. The terms
of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of Optionee.

         11. TERM OF OPTION. In no event may this Option be exercised after
_______, ____ (which date shall be no more than ten (10) years from the date
this Option was granted).

         12. NO EMPLOYMENT RIGHTS. Optionee acknowledges and agrees that the
vesting of Shares pursuant to Section 3 hereof is earned only by continuing
service as an employee at the will of the Company (not through the act of being
hired, being granted this Option or acquiring Shares hereunder). Optionee
further acknowledges and agrees that this Option, the Company's Plan which is
incorporated herein by reference, the transactions contemplated hereunder and
the vesting schedule set forth herein do not constitute an express or implied
promise of continued engagement as an employee for the vesting period, for any
period, or at all, and shall not interfere with Optionee's right or the
Company's right to terminate Optionee's employment relationship at any time,
with or without cause.

         13. WITHHOLDING OF TAXES. Optionee authorizes the Company to withhold,
in accordance with any applicable law, from any compensation payable to him any
taxes required to be withheld by federal, state, or foreign law as a result of
the grant of the Option or the issuance of stock pursuant to the exercise of the
Option.

         14. NOTICES. Any notice to be given to the Company shall be addressed
to the Company in care of its Secretary at its principal office, and any notice
to be given to Optionee shall be addressed to Optionee at the address given
below or at such other address as the Optionee may hereafter designate in
writing to the Company. Any such notice shall be deemed duly given upon personal
delivery or three business days after deposit in the United States mail,
registered or certified, postage prepaid.

                                        4

<PAGE>

         15. GOVERNING LAW. This Option shall be governed by and construed in
accordance with the internal laws of the State of California.

                                     QUIKSILVER, INC.

                                     By:___________________________________
                                     Title:________________________________

                                     ______________________________________
                                     _________________, Optionee

                                     Address:______________________________
                                     ______________________________________

                                        5

<PAGE>

                 NOTICE OF EXERCISE OF NONSTATUTORY STOCK OPTION

Quiksilver, Inc.
1740 Monrovia Avenue
Costa Mesa, CA  92627

Gentlemen:

                  In accordance with the terms of the Quiksilver, Inc. 1996
Stock Option Plan (the "Plan"), and the related Incentive Stock Option Agreement
dated as of ________________, 199_ between me and Quiksilver, Inc. (the
"Company"), I hereby give notice of exercise of my option (the "Option") as to
___________ shares of Company Common Stock (the "Shares") at a purchase price of
$______________ per share, or $__________________ in the aggregate.

                  By this exercise, I agree (i) to provide such additional
documents as you may require pursuant to the terms of the Plan, and (ii) to
provide for the payment by me to you (in the manner designated by you) of your
withholding obligation, if any, relating to the exercise of the Option.

                  Unless a registration statement covering the Shares is
currently in effect under the Securities Act of 1933, as amended (the "Act"), I
hereby make the following certifications and representations with respect to the
Shares:

                  (1) I acknowledge that the Shares have not been registered
under the Act and are deemed to constitute "restricted securities" under Rule
144 promulgated under the Act. I represent and warrant to the Company that I am
acquiring the Shares for my own account and for investment purposes only and I
have no present intention of distributing or selling the Shares, except as
permitted under the Act and any applicable state securities laws; and

                  (2) I further acknowledge that all certificates representing
any of the Shares subject to the provisions of the Option shall have endorsed
thereon appropriate legends reflecting the foregoing limitations, as well as any
legends reflecting restrictions pursuant to applicable securities laws.

<PAGE>

                  There accompanies this Notice payment in full for the
aggregate purchase price for the Shares as follows (check applicable method of
payment):

                      / / Check in the amount of $___________________

                      / / If authorized by the Plan and the Board, shares of
                          the Company's Stock currently owned by me as follows:

         Certificate Number(s)              Number of Shares
         ---------------------              ----------------

                  __________                    __________

                  __________                    __________

Please mail the certificate representing the Shares to the following address:

                           __________________________
                           __________________________
                           __________________________

Dated:  ________________, 199_              ____________________________________
                                                       Signature

                                            ____________________________________
                                                    Type or Print Name

                                        2

<PAGE>

                  NOTICE OF EXERCISE OF INCENTIVE STOCK OPTION

Quiksilver, Inc.
1740 Monrovia Avenue
Costa Mesa, CA  92627

Gentlemen:

                  In accordance with the terms of the Quiksilver, Inc. 1996
Stock Option Plan (the "Plan"), and the related Incentive Stock Option Agreement
dated as of ________________, 199_ between me and Quiksilver, Inc. (the
"Company"), I hereby give notice of exercise of my option (the "Option") as to
___________ shares of Company Common Stock (the "Shares") at a purchase price of
$______________ per share, or $__________________ in the aggregate.

                  By this exercise, I agree (i) to provide such additional
documents as you may require pursuant to the terms of the Plan, and (ii) to
notify you in writing within fifteen (15) days after the date of any disposition
of any of the shares of Common Stock issued upon exercise of the Option that
occurs within two (2) years after the date of grant of the Option or within one
(1) year after such shares of Common Stock are issued upon exercise of the
Option.

                  Unless a registration statement covering the Shares is
currently in effect under the Securities Act of 1933, as amended (the "Act"), I
hereby make the following certifications and representations with respect to the
Shares:

                  (3) I acknowledge that the Shares have not been registered
under the Act and are deemed to constitute "restricted securities" under Rule
144 promulgated under the Act. I represent and warrant to the Company that I am
acquiring the Shares for my own account and for investment purposes only and I
have no present intention of distributing or selling the Shares, except as
permitted under the Act and any applicable state securities laws; and

                  (4) I further acknowledge that all certificates representing
any of the Shares subject to the provisions of the Option shall have endorsed
thereon appropriate legends reflecting the foregoing limitations, as well as any
legends reflecting restrictions pursuant to applicable securities laws.

<PAGE>

                  There accompanies this Notice payment in full for the
aggregate purchase price for the Shares as follows (check applicable method of
payment):

                      / / Check in the amount of $___________________

                      / / If authorized by the Plan and the Board, shares of
                          the Company's Stock currently owned by me as follows:

         Certificate Number(s)              Number of Shares
         ---------------------              ----------------

                  __________                    __________

                  __________                    __________

Please mail the certificate representing the Shares to the following address:

                           __________________________
                           __________________________
                           __________________________

Dated:  ________________, 199_              ____________________________________
                                                       Signature

                                            ____________________________________
                                                    Type or Print Name

                                        2

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