QUIKSILVER INC
EXHIBIT 10.2
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>a19113exv10w2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<DIV align="RIGHT" style="font-size: 10pt; margin-top: 6pt">EXHIBIT
10.2</DIV>

<P align="center">
<B><FONT size="2">QUIKSILVER, INC.</FONT></B>

<P align="center">
<B><FONT size="2">2006 RESTRICTED STOCK PLAN</FONT></B>

<P align="center">
<FONT size="2">ARTICLE&nbsp;I
</FONT>

<P align="center">
<FONT size="2">GENERAL PROVISIONS
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">1.1</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">PURPOSE OF THE PLAN</FONT></U></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This 2006 Restricted Stock Plan is intended to
promote the interests of Quiksilver, Inc., a Delaware
corporation, by providing eligible persons in the
Corporation&#146;s service with the opportunity to acquire a
proprietary interest, or otherwise increase their proprietary
interest, in the Corporation as an incentive for them to remain
in such service. The specific purpose of the Plan is to provide
a special incentive to key contributors to the Rossignol
acquisition and integration and to retain key contributors
throughout the integration period.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Capitalized terms shall have the meanings
assigned to such terms in the attached Appendix.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">1.2</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">ADMINISTRATION OF THE PLAN</FONT></U></B></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">A.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Committee shall have sole and exclusive
    authority to administer the Plan.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">B.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Members of the Committee shall serve for such
    period of time as the Board may determine and may be removed by
    the Board at any time.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">C.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Committee shall, within the scope of its
    administrative functions under the Plan, have full power and
    authority (subject to the provisions of the Plan) to establish
    such rules and regulations as it may deem appropriate for proper
    administration of the Plan and to make such determinations
    under, and issue such interpretations of, the provisions of the
    Plan and any outstanding restricted stock award issued
    thereunder as it may deem necessary or advisable. Decisions of
    the Committee within the scope of its administrative functions
    under the Plan shall be final and binding on all parties who
    have an interest in the Plan under its jurisdiction or any stock
    issuance thereunder.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">D.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Service on the Committee shall constitute service
    as a Board member, and members of each such committee shall
    accordingly be entitled to full indemnification and
    reimbursement as Board members for their service on such
    committee. No member of the Committee shall be liable for any
    act or omission made in good faith with respect to the Plan or
    any stock issuances under the Plan.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">1.3</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">ELIGIBILITY</FONT></U></B></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">A.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The persons eligible to participate in the Plan
    are Employees who are key contributors to the strategic
    initiatives related to the Rossignol acquisition, and the long
    term integration activities with respect to such acquisition.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">B.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Committee shall, within the scope of its
    administrative jurisdiction under the Plan and subject to the
    terms of the Plan, have full authority to determine, with
    respect to awards granted under the Plan, which eligible persons
    are to receive awards, the time or times when such awards are to
    be made, the number of shares subject to awards issued to each
    Participant and the consideration, if any, to be paid for shares
    subject to such awards.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">1.4</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">STOCK SUBJECT TO THE PLAN</FONT></U></B></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">A.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The stock issuable under the Plan shall be shares
    of authorized but unissued or reacquired Common Stock, including
    shares repurchased by the Corporation on the open market. The
    number of shares of Common Stock reserved for issuance over the
    term of the Plan shall not exceed 1,000,000&nbsp;shares.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">B.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">No one person participating in the Plan may
    receive awards for more than 200,000&nbsp;shares of Common Stock
    in the aggregate.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">C.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">If any change is made to the Common Stock by
    reason of any stock split, stock dividend, recapitalization,
    combination of shares, exchange of shares or other change
    affecting the outstanding Common Stock as a class without the
    Corporation&#146;s receipt of consideration, appropriate
    adjustments shall be made by the Committee to (i)&nbsp;the
    maximum number and/or class of securities issuable under the
    Plan, (ii)&nbsp;the number and/or class of securities for which
    any one person may be granted awards under the Plan, and
    (iii)&nbsp;the number and/or class of securities in effect under
    each outstanding restricted stock award. Such adjustments to the
    outstanding awards are to be effected in a manner which shall
    preclude the enlargement or dilution of rights and benefits
    under such awards. The adjustments determined by the Committee
    shall be final, binding and conclusive.
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<FONT size="2">ARTICLE&nbsp;II
</FONT>

<P align="center">
<FONT size="2">RESTRICTED STOCK AWARDS
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">2.1</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">STOCK ISSUANCE TERMS</FONT></U></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Shares of Common Stock will be issued under the
Plan through direct and immediate issuances. Each such stock
issuance shall be evidenced by a Stock Issuance Agreement which
complies with the terms specified below. The Committee, in its
sole discretion, shall determine the number of shares of Common
Stock to be granted to each Participant, provided that no
Participant shall receive more than 200,000&nbsp;shares of
Common Stock in the aggregate under the Plan.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">A.&nbsp;</FONT></TD>
    <TD align="left">
    <U><FONT size="2">Purchase Price</FONT></U><FONT size="2">.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(i)</FONT></TD>
    <TD align="left">
    <FONT size="2">The purchase price per share of Common Stock
    shall be fixed by the Committee.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(ii)</FONT></TD>
    <TD align="left">
    <FONT size="2">Shares of Common Stock may be issued under the
    Plan for any item of consideration which the Committee may deem
    appropriate in each individual instance.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(iii)</FONT></TD>
    <TD align="left">
    <FONT size="2">To the extent an award under the Plan is in the
    form of newly issued shares of Common Stock, the Participant, as
    a condition to the grant of such award, shall be required to pay
    the Corporation in cash an amount equal to at least the par
    value of such shares. To the extent that an award is granted in
    the form of shares from the Corporation&#146;s treasury, no cash
    consideration shall be required of the award recipient.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">B.&nbsp;</FONT></TD>
    <TD align="left">
    <U><FONT size="2">Vesting/ Issuance
    Provisions</FONT></U><FONT size="2">.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(i)</FONT></TD>
    <TD align="left">
    <FONT size="2">All shares of Common Stock issued under the Plan
    shall be restricted shares, subject to vesting based on the
    Participant completing a Service period to be determined by the
    Committee, provided that such period must end on or after
    January&nbsp;31, 2011. In addition, the Committee may provide
    for accelerated vesting on or after January&nbsp;31, 2009 based
    upon the achievement of certain performance goals, as set forth
    in subsection&nbsp;(ii)&nbsp;below.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(ii)</FONT></TD>
    <TD align="left">
    <FONT size="2">One or more pre-established performance goals may
    be set by the Committee with respect to awards under the Plan.
    Such performance goals shall be based on business criteria of
    the Corporation as a whole or any of its Subsidiaries (or any
    division, department or business unit of the foregoing), as
    determined by the Committee, including but not limited to the
    following or similar criteria: revenues, profitability, earnings
    (including, without limitation, earnings per share, earnings per
    share growth, earnings before taxes or earnings before interest,
    depreciation, taxes, and amortization), return on assets, return
    on equity, economic value created, successful acquisitions of
    other companies or assets and/or successful integration of such
    companies or assets, successful dispositions of Subsidiaries,
    divisions or departments of the Corporation or any of its
    Subsidiaries, share market prices, return to stockholders,
    market share, or cost or expense control. Performance goals may
    be expressed as absolute goals or goals in relation to
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">2
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">previous performance or performance of comparable
    companies or industry indexes, or otherwise based on the
    business criteria as determined by the Committee.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(iii)</FONT></TD>
    <TD align="left">
    <FONT size="2">The effect which death, Permanent Disability or
    other event designated by the Committee is to have upon the
    vesting schedule shall be determined by the Committee and
    incorporated into the Stock Issuance Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(iv)</FONT></TD>
    <TD align="left">
    <FONT size="2">Any new, substituted or additional securities or
    other property (including money paid other than as a regular
    cash dividend) which the Participant may have the right to
    receive with respect to his or her unvested shares of Common
    Stock by reason of any stock dividend, stock split,
    recapitalization, combination of shares, exchange of shares or
    other change affecting the outstanding Common Stock as a class
    without the Corporation&#146;s receipt of consideration shall be
    issued subject to (i)&nbsp;the same vesting requirements
    applicable to the Participant&#146;s unvested shares of Common
    Stock and (ii)&nbsp;such escrow arrangements as the Committee
    shall deem appropriate.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(v)</FONT></TD>
    <TD align="left">
    <FONT size="2">The Participant shall have substantially full
    stockholder rights with respect to any shares of Common Stock
    issued to the Participant under the Plan, whether or not the
    Participant&#146;s interest in those shares is vested.
    Accordingly, the Participant shall have the right to vote such
    shares and to receive any regular cash dividends paid on such
    shares.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(vi)</FONT></TD>
    <TD align="left">
    <FONT size="2">Should the Participant cease to remain in Service
    while holding one or more unvested shares of Common Stock issued
    under the Plan, then those shares shall be immediately
    surrendered to the Corporation for cancellation, and the
    Participant shall have no further stockholder rights with
    respect to those shares. To the extent the surrendered shares
    were previously issued to the Participant for cash
    consideration, unless the Committee provides otherwise, the
    Corporation shall repay that consideration to the Participant at
    the time the shares are surrendered.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(vii)</FONT></TD>
    <TD align="left">
    <FONT size="2">The Committee may in its discretion waive the
    surrender and cancellation of one or more unvested shares of
    Common Stock (or other assets attributable thereto) which would
    otherwise occur upon the cessation of the Participant&#146;s
    Service or the non-attainment of the performance objectives
    applicable to those shares. Such waiver shall result in the
    immediate vesting of the Participant&#146;s interest in the
    shares of Common Stock as to which the waiver applies. Such
    waiver may be effected at any time, whether before or after the
    Participant&#146;s cessation of Service or the attainment or
    non-attainment of the applicable performance objectives.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">2.2</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">CORPORATE TRANSACTION/ CHANGE IN
    CONTROL</FONT></U></B></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">A.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">All of the Corporation&#146;s outstanding
    repurchase rights under the Plan shall terminate automatically,
    and all the shares of Common Stock subject to those terminated
    rights shall immediately vest in full, in the event of any
    Corporate Transaction, except to the extent (i)&nbsp;those
    repurchase rights are to be assigned to the successor
    corporation (or parent thereof) in connection with such
    Corporate Transaction or (ii)&nbsp;such accelerated vesting is
    precluded by other limitations imposed in the Stock Issuance
    Agreement.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">B.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Committee shall have the discretionary
    authority, exercisable either at the time the unvested shares
    are issued or any time while the Corporation&#146;s repurchase
    rights remain outstanding under the Plan, to provide that those
    rights shall automatically terminate in whole or in part, and
    the shares of Common Stock subject to those terminated rights
    shall immediately vest upon a Corporate Transaction or Change in
    Control or upon an event or events associated with such
    transactions.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">2.3</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">SHARE ESCROW/ LEGENDS</FONT></U></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unvested shares may, in the Committee&#146;s
discretion, be held in escrow by the Corporation until the
Participant&#146;s interest in such shares vests or may be
issued directly to the Participant with restrictive legends on
the certificates evidencing those unvested shares.
</FONT>

<P align="center"><FONT size="2">3
</FONT>

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<P align="center">
<FONT size="2">ARTICLE&nbsp;III
</FONT>

<P align="center">
<FONT size="2">MISCELLANEOUS
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.1</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">TAX WITHHOLDING</FONT></U></B></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">A.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Corporation&#146;s obligation to deliver
    shares of Common Stock upon the issuance of awards or vesting of
    such shares under the Plan shall be subject to the satisfaction
    of all applicable Federal, state and local income and employment
    tax withholding requirements.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">B.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Committee may, in its discretion, provide any
    or all holders of unvested awards under the Plan with the right
    to use shares of Common Stock in satisfaction of all or part of
    the minimum Withholding Taxes to which such holders become
    subject in connection with the vesting or disposition of shares
    issued pursuant to such awards. Such right may be provided to
    any such holder in either or both of the following formats:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Stock Withholding:</FONT></I><FONT size="2">
    The election to have the Corporation withhold, from the shares
    of Common Stock otherwise issuable upon the vesting of such
    shares or upon disposition of the shares, a portion of those
    shares with an aggregate Fair Market Value equal to the
    percentage of the Withholding Taxes (not to exceed one hundred
    percent (100%) of the minimum amount required to be withheld)
    designated by the holder.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Stock Delivery:</FONT></I><FONT size="2"> The
    election to deliver to the Corporation, at the time the shares
    vest or are otherwise issued or upon disposition of the shares,
    one or more shares of Common Stock previously acquired by such
    holder (other than in connection with the share vesting
    triggering the Withholding Taxes) with an aggregate Fair Market
    Value equal to the percentage of the Withholding Taxes (not to
    exceed one hundred percent (100%) of the minimum amount required
    to be withheld) designated by the holder.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.2</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">EFFECTIVE DATE AND TERM OF THE
    PLAN</FONT></U></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Plan shall become effective immediately on
the Plan Effective Date and shall remain in effect until the
earliest to occur of (i)&nbsp;December&nbsp;31, 2013, or
(ii)&nbsp;the date on which all shares available for issuance
under the Plan shall have been issued as fully-vested shares. No
awards shall be made under the Plan after December&nbsp;31, 2007.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.3</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">AMENDMENT OF THE PLAN</FONT></U></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board shall have complete and exclusive power
and authority to amend or modify the Plan in any or all
respects, subject to any stockholder approval which may be
required pursuant to applicable laws or regulations; provided,
however, that the Board may not, without stockholder approval,
(i)&nbsp;increase the number of shares of Common Stock
authorized for issuance under the Plan, or (ii)&nbsp;materially
increase the benefits offered to participants under the Plan. No
amendment or modification shall adversely affect any rights and
obligations with respect to awards at the time outstanding under
the Plan unless the Participant consents to such amendment or
modification.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.4</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">USE OF PROCEEDS</FONT></U></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any cash proceeds received by the Corporation
from the sale of shares of Common Stock under the Plan shall be
used for general corporate purposes.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.5</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">REGULATORY APPROVALS</FONT></U></B></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">A.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The implementation of the Plan, the granting of
    any award under the Plan and the issuance of any shares of
    Common Stock pursuant to an award shall be subject to the
    Corporation&#146;s procurement of all approvals and permits
    required by regulatory authorities having jurisdiction over the
    Plan, the awards granted under it and the shares of Common Stock
    issued pursuant to it.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">4
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">No shares of Common Stock or other assets shall
    be issued or delivered under the Plan unless and until there
    shall have been compliance with all applicable requirements of
    Federal and state securities laws, and all applicable listing
    requirements of any stock exchange (or the Nasdaq National
    Market, if applicable) on which Common Stock is then listed for
    trading.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">3.6</FONT></B></TD>
    <TD>
    <B><U><FONT size="2">NO EMPLOYMENT/ SERVICE RIGHTS</FONT></U></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Nothing in the Plan shall confer upon the
Participant any right to continue in Service for any period of
specific duration or interfere with or otherwise restrict in any
way the rights of the Corporation (or any Parent or Subsidiary
employing or retaining such person) or of the Participant, which
rights are hereby expressly reserved by each, to terminate such
person&#146;s Service at any time for any reason, with or
without cause.
</FONT>

<!-- link1 "APPENDIX" -->

<P align="center">
<B><FONT size="2">APPENDIX</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following definitions shall be in effect
under the Plan:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">A.&nbsp;BOARD shall mean the Corporation&#146;s
    Board of Directors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">B.&nbsp;CHANGE IN CONTROL shall mean a change in
    ownership or control of the Corporation effected through either
    of the following transactions:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(i)&nbsp;the acquisition, directly or indirectly
    by any person or related group of persons (other than the
    Corporation or a person that directly or indirectly controls, is
    controlled by, or is under common control with, the
    Corporation), of beneficial ownership (within the meaning of
    Rule&nbsp;13d-3 of the 1934&nbsp;Act) of securities possessing
    more than fifty percent (50%) of the total combined voting power
    of the Corporation&#146;s outstanding securities pursuant to a
    tender or exchange offer made directly to the Corporation&#146;s
    stockholders,&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(ii)&nbsp;a change in the composition of the
    Board over a period of thirty-six (36)&nbsp;consecutive months
    or less such that a majority of the Board members ceases, by
    reason of one or more contested elections for Board membership,
    to be comprised of individuals who either (A)&nbsp;have been
    Board members continuously since the beginning of such period or
    (B)&nbsp;have been elected or nominated for election as Board
    members during such period by at least a majority of the Board
    members described in clause&nbsp;(A)&nbsp;who were still in
    office at the time the Board approved such election or
    nomination.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">C.&nbsp;COMMITTEE shall mean the Compensation
    Committee of the Board of Directors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">D.&nbsp;COMMON STOCK shall mean the
    Corporation&#146;s common stock.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">E.&nbsp;CORPORATE TRANSACTION shall mean either
    of the following stockholder-approved transactions to which the
    Corporation is a party:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(i)&nbsp;a merger or consolidation in which
    securities possessing more than fifty percent (50%) of the total
    combined voting power of the Corporation&#146;s outstanding
    securities are transferred to a person or persons different from
    the persons holding those securities immediately prior to such
    transaction,&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(ii)&nbsp;the sale, transfer or other disposition
    of all or substantially all of the Corporation&#146;s assets in
    complete liquidation or dissolution of the Corporation.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">F.&nbsp;CORPORATION shall mean Quiksilver, Inc.,
    a Delaware corporation, and any corporate successor to all or
    substantially all of the assets or voting stock of Quiksilver,
    Inc. which shall by appropriate action adopt the Plan.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">G.&nbsp;EMPLOYEE shall mean an individual who is
    in the employ of the Corporation (or any Parent or Subsidiary),
    subject to the control and direction of the employer entity as
    to both the work to be performed and the manner and method of
    performance.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">Appendix-1
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">H.&nbsp;FAIR MARKET VALUE per share of Common
    Stock on any relevant date shall be determined in accordance
    with the following provisions:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(i)&nbsp;If the Common Stock is at the time
    traded on the Nasdaq National Market, then the Fair Market Value
    shall be the closing selling price per share of Common Stock on
    the date in question, as such price is reported by the National
    Association of Securities Dealers on the Nasdaq National Market.
    If there is no closing selling price for the Common Stock on the
    date in question, then the Fair Market Value shall be the
    closing selling price on the last preceding date for which such
    quotation exists.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(ii)&nbsp;If the Common Stock is at the time
    listed on any Stock Exchange, then the Fair Market Value shall
    be the closing selling price per share of Common Stock on the
    date in question on the Stock Exchange determined by the
    Committee to be the primary market for the Common Stock, as such
    price is officially quoted in the composite tape of transactions
    on such exchange. If there is no closing selling price for the
    Common Stock on the date in question, then the Fair Market Value
    shall be the closing selling price on the last preceding date
    for which such quotation exists.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">I.&nbsp;1934 ACT shall mean the Securities
    Exchange Act of 1934, as amended.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">J.&nbsp;PARENT shall mean any corporation (other
    than the Corporation) in an unbroken chain of corporations
    ending with the Corporation, provided each corporation in the
    unbroken chain (other than the Corporation) owns, at the time of
    the determination, stock possessing fifty percent (50%) or more
    of the total combined voting power of all classes of stock in
    one of the other corporations in such chain.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">K.&nbsp;PARTICIPANT shall mean any person who is
    issued an award under the Plan.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">L.&nbsp;PERMANENT DISABILITY OR PERMANENTLY
    DISABLED shall mean the inability of the Participant to engage
    in any substantial gainful activity by reason of any medically
    determinable physical or mental impairment expected to result in
    death or to be of continuous duration of twelve (12)&nbsp;months
    or more.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">M.&nbsp;PLAN shall mean the Corporation&#146;s
    2006 Restricted Stock Plan, as set forth in this document.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">N.&nbsp;PLAN EFFECTIVE DATE shall mean
    March&nbsp;24, 2006.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">O.&nbsp;ROSSIGNOL means Skis Rossignol S.A.
    together with its subsidiaries.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">P.&nbsp;SERVICE shall mean the performance of
    services for the Corporation (or any Parent or Subsidiary) by a
    person in the capacity of an Employee, except to the extent
    otherwise specifically provided in the Stock Issuance Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Q.&nbsp;STOCK EXCHANGE shall mean either the
    American Stock Exchange or the New York Stock Exchange.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">R.&nbsp;STOCK ISSUANCE AGREEMENT shall mean the
    agreement entered into by the Corporation and the Participant at
    the time of issuance of shares of Common Stock under the Plan.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">S.&nbsp;SUBSIDIARY shall mean any corporation
    (other than the Corporation) in an unbroken chain of
    corporations beginning with the Corporation, provided each
    corporation (other than the last corporation) in the unbroken
    chain owns, at the time of the determination, stock possessing
    fifty percent (50%) or more of the total combined voting power
    of all classes of stock in one of the other corporations in such
    chain.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">T.&nbsp;WITHHOLDING TAXES shall mean the Federal,
    state and local income and employment withholding taxes to which
    the holder of unvested shares may become subject in connection
    with the vesting of those shares or upon the disposition of
    shares acquired pursuant to a stock issuance.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">Appendix-2
</FONT>
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