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EXHIBIT 4.3  

 
 

AMENDED AND RESTATED
  REGISTRATION RIGHTS AGREEMENT    

        This
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT, dated as of October 3, 2000 ("Agreement"), by and among GOLF GALAXY, INC., a Minnesota corporation (the "Company"),
WILLIAM BLAIR CAPITAL PARTNERS V, L.P. ("Blair"), PRIMUS CAPITAL FUND IV LIMITED PARTNERSHIP ("Primus Capital"), PRIMUS EXECUTIVE FUND LIMITED PARTNERSHIP ("Primus Executive"), FdG Capital Partners
LLC ("FCP"), FdG-Chase Capital Partners LLC (together with FCP, "FdG"), The Musicland Group, Inc. ("Musicland") (FdG, Musicland, Blair, Primus Capital and Primus Executive,
collectively called the "Investors"), RANDALL K. ZANATTA ("Zanatta") and GREGORY B. MAANUM ("Maanum"). 

RECITALS  

        (A)  The
Company, the Investors (except for Musicland), Zanatta and Maanum are parties to that certain Amended and Restated Registration Rights Agreement dated as of
July 9, 1999. 

        (B)  In
connection with the issuance to Musicland of shares of the Series D Convertible Preferred (as hereinafter defined) pursuant to the Stock Purchase Agreement (as
hereinafter defined), the parties desire to amend and restate the Registration Rights Agreement to provide for certain securities registration rights to the Holders of the Series D Convertible
Preferred and to make other changes more fully set forth below. 

AGREEMENTS  

        In consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows: 

        1.    Definitions.    Terms initially capitalized but not otherwise defined herein shall have the meanings given such
terms in the Stock Purchase Agreement, except for the following: 

        "Affiliate"
shall mean any entity controlling, controlled by or under common control with another entity. For the purposes of this definition, "control" shall have the meaning presently
specified for that word in Rule 405 promulgated by the Securities and Exchange Commission under the Securities Act. With respect to any person who is a limited partnership, Affiliate shall also
mean any general partner or limited partner of such limited partnership, or any Person which is a general partner in a general or limited partnership which is a general partner of such limited
partnership. 

        "Common"
means the Company's Common Stock, $.01 par value per share, and any Stock into which such stock may hereafter be changed. 

        "Company"
shall have the meaning set forth in the preamble hereto. 

 

        "Conversion
Stock" means Common issued upon conversion of the Convertible Preferred. 

        "Convertible
Preferred" shall mean the Series A Convertible Preferred, the Series B Convertible Preferred, the Series C Convertible Preferred and the Series D
Convertible Preferred. 

        "Holders"
means the Persons who shall, from time to time, own of record any Security. The term "Holder" shall mean any one of the Holders. 

        "Initial
Public Offering" shall mean the initial firm commitment underwritten public offering of Common by means of a Registration Statement filed by the Company, which offering does not
exclusively relate to the securities under an employee stock option, bonus or other compensation plan. 

        "Management
Stock" shall mean Common held by a Management Shareholder; provided, however,
that Management Stock shall not be deemed to include any shares after such have been registered under the Securities Act and sold pursuant to such registration or any shares sold without registration
under the Securities Act in compliance with Rule 144, or pursuant to any other exemption from registration under the Securities Act to a Person who is free to resell such shares without
registration or restriction under the Securities Act; and provided, further, that any time subsequent to
the closing of the Initial Public Offering, Management Stock shall not include any shares which are eligible to be sold without registration under the Securities Act in compliance with Subsection
(k) of Rule 144. 

        "Management
Shareholders" shall mean Zanatta and Maanum, in each such case, so long as either continues to be an employee, director, officer, agent or consultant of the Company or any of
its Subsidiaries. For the purpose of this Agreement, shares of Management Stock held by any transferee to whom shares may be transferred with registration rights by a Management Shareholder pursuant
to Section 10 hereof, shall be deemed to be held by the transferring Management Shareholder. 

        "Minimum
Price", at any time, shall mean the product of 2.5 multiplied by the then applicable Conversion Price of the Series C Convertible Preferred, as determined in accordance
with the Company's Certificate of Designation, Preferences and Rights of the Series A Convertible Preferred Stock, the Series B Convertible Preferred Stock, the Series C
Convertible Preferred Stock and the Series D Convertible Preferred Stock of the Company. 

        "Other
Registrable Stock" means up to 135,416 shares of Common (subject to anti-dilution adjustments) issuable upon exercise of warrants outstanding on the date hereof, to
the extent that Holders of such shares or warrants are entitled to require registration of such shares in a registration to which this agreement applies. 

        "Person"
means an individual, a corporation, a partnership, a limited liability company, a trust, an unincorporated organization or a governmental organization or any agency or political
subdivision thereof. 

        "Prospectus"
shall mean any prospectus which is a part of a Registration Statement, together with all amendments or supplements thereto. 

2

 

        "Registrable
Conversion Stock" shall mean at any time, the shares of the then outstanding Conversion Stock and the Conversion Stock then issuable upon conversion of the then outstanding
Convertible Preferred, owned by any Investor or any subsequent Holder of Registrable Stock having rights hereunder pursuant to Section 10 hereof;  provided, however, that Registrable Stock shall not be deemed to include any shares after such shares
have been registered under the Securities Act and sold pursuant to such registration or any shares sold without registration under the Securities Act in compliance with Rule 144, or pursuant to
any other exemption from registration under the Securities Act to a Person who is free to resell such shares without registration or restriction under the Securities Act; and  provided, further, that any time subsequent to the closing of the Initial Public Offering, Registrable
Stock shall not include any shares which are eligible to be sold without registration under the Securities Act in compliance with Subsection (k) of Rule 144. 

        "Registrable
Stock" shall mean the Registrable Conversion Stock and the Registrable Warrant Stock, collectively. 

        "Registrable
Warrant Stock" shall mean at any time, the shares of the then outstanding Warrant Stock, and the Warrant Stock then issuable upon conversion of the Warrants, owned by
Musicland; provided, however, that Registrable Stock shall not be deemed to include any shares after
such shares have been registered under the Securities Act and sold pursuant to such registration or any shares sold without registration under the Securities Act in compliance with Rule 144, or
pursuant to any other exemption from registration under the Securities Act to a Person who is free to resell such shares without registration or restriction under the Securities Act; and  provided,
further, that any time subsequent to the closing of the Initial Public Offering, Registrable
Stock shall not include any shares which are eligible to be sold without registration under the Securities Act in compliance with Subsection (k) of Rule 144. 

        "Registration
Statement" shall mean any registration statement filed with the Securities and Exchange Commission in accordance with the Securities Act, together with all amendments or
supplements thereto. 

        "Securities"
shall mean any debt or equity securities of the Company, whether now or hereafter authorized, and any instrument convertible into or exchangeable for Securities or a
Security. The term "Security" shall mean any one of the Securities. 

        "Securities
Act" shall mean the Securities Act of 1933, as amended prior to or after the date of this Agreement, or any federal statute or statutes which shall be enacted to take the
place of such Act, together with all rules and regulations promulgated thereunder. 

        "Securities
and Exchange Commission" shall mean the United States Securities and Exchange Commission or any successor to the functions of such agency. 

        "Securities
Exchange Act" shall mean the Securities Exchange Act of 1934, as amended prior to or after the date of this Agreement, or any federal statute or statutes which shall be
enacted to take the place of such Act, together with all rules and regulations promulgated thereunder. 

3

 

        "Seller"
shall mean each Holder of Securities of the Company as to which Securities the Company could be required to file a Registration Statement or which could be registered
under the Securities Act at the request of such Holder pursuant to any of the provisions of this Agreement. 

        "Series A
Convertible Preferred" shall mean the Company's Series A Convertible Preferred Stock, $1.00 par value per share, and any Stock into which such Stock may hereafter
be changed other than by exercise of the conversion right of such Stock. 

        "Series B
Convertible Preferred" shall mean the Company's Series B Convertible Preferred Stock, $1.00 par value per share, and any Stock into which such Stock may hereafter
be changed other than by exercise of the conversion right of such Stock. 

        "Series C
Convertible Preferred" shall mean the Company's Series C Convertible Preferred Stock, $1.00 par value per share, and any Stock into which such Stock may hereafter
be changed other than by exercise of the conversion right of such Stock. 

        "Series D
Convertible Preferred" shall mean the Company's Series D Convertible Preferred Stock, $1.00 par value per share, and any Stock into which such Stock may hereafter
be changed other than by exercise of the conversion right of such Stock. 

        "Stock"
shall include any and all shares, interests or other equivalents (however designated) of, or participation in, corporate stock. 

        "Stock
Purchase Agreement" shall mean the Stock Purchase Agreement between the Company and Musicland dated as of October 2, 2000. 

        "Warrant
Stock" shall mean the Common issued upon exercise of the Warrants. 

        2.    Required Registrations.    

        (A)  At
any time after an Initial Public Offering upon the written request to register any number of shares of Registrable Stock under the Securities Act made by Holders of
(i) more than 15% of the then existing shares of Registrable Conversion Stock or (ii) Registrable Conversion Stock that would have an estimated aggregate offering price of at least
$20 million, the Company will use its best efforts to effect the registration of such Registrable Stock under the Securities Act on Form S-2, S-3 or any similar
short-form registration, or if Form S-2, S-3 or such similar short-form registration is not available, on Form S-1 or any
similar long-form registration and the registration or qualification thereof under all applicable state securities or blue sky laws, but only to the extent provided for in the following
provisions of this Agreement. A request pursuant to this Section 2(A) shall state the intended method of disposition of the Registrable Stock sought to be registered. Whenever the Company
shall, pursuant to this Section 2(A), be requested to effect the registration of any Registrable Stock under the Securities Act, the Company shall promptly give written notice of such proposed
registration to all Holders of Registrable Stock, stating that such Holders have the right to request that any or all of the Registrable Stock owned by them be included in such registration. The
Company shall include in such registration all Registrable Stock with respect to which the Company receives written requests from the Holders thereof for inclusion therein (stating the intended method
of 

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disposition
of such Stock); and thereupon the Company will, as expeditiously as possible, use its best efforts to effect the registration, under the Securities Act, of such Registrable Stock which
the Company has been requested to register for disposition by such Holders in accordance with the intended method of disposition described in the requests of such Holders, all to the extent requisite
to permit such sale or other disposition by such Holders of the Registrable Stock so registered. Notwithstanding the above, the Company shall only be obligated to effect one registration on
Form S-1 or any similar long-form registration unless in any such registration, the Holders of Registrable Stock are not permitted, pursuant to the provisions of
Section 8(A), to register all of the shares of Registrable Stock which they have requested be registered, in which case the Holders may request a second registration on
Form S-1 or any similar long-form registration, if Form S-2 or S-3 or such similar short-form registration is not available.
No Management Shareholder shall be entitled to initiate or request a registration pursuant to this Section 2(A), but a Management Shareholder may include its Management Stock in such
registration and in registrations effected pursuant to Section 2(C) and 3 hereof, subject to the restrictions contained in Section 8 hereof. 

        (B)  The
Holders of at least 60% of the Registrable Conversion Stock included in a Registration Statement filed pursuant to this Section 2 shall have the right to
select with the consent of the Company (which consent may not be unreasonably withheld) the investment banker or bankers who shall serve as the manager and/or co-managers for the offering
of Securities covered by such Registration Statement. 

        (C)  From
and after the date, if any, that the Company is entitled to register Common for sale by the Holders thereof under the Securities Act on Form S-2
or S-3 or any form hereafter adopted by the Securities and Exchange Commission to take the place of Form S-2 or S-3, the Holder or Holders of Registrable
Stock shall be entitled to require the Company to register Registrable Stock pursuant to the provisions of Section 2(A) hereof for an unlimited number of times, and the Company shall comply
with each such request in accordance with the terms of Section 2(A) hereof. 

        (D)  Subject
to Section 8 (C) hereof and the Company's performance of its obligations hereunder with respect to all previous requests to register shares made
pursuant to this Section 2 and/or Section 3, below, Holders of Registrable Stock may not make more than one request pursuant to this Section 2 in any twelve month period. 

        3.    Incidental Registration.    If the Company at any time proposes or is required to register any of its Securities
under the Securities Act or any applicable state securities or blue sky laws on a form which permits inclusion of the Registrable Stock and/or Management Stock (including, without limitation, if such
registration was initiated by a demand pursuant to Section 2 above), it will each such time give written notice to all Holders of then existing Registrable Stock and/or Management Stock of its
intention so to do. Upon the written request of any such Holder given within 20 days after receipt of any such notice, the Company will use its best efforts to cause all such Stock which such
Holders shall have requested be registered to be registered under the Securities Act and any applicable state securities or blue sky laws all to the extent requisite to permit the sale or other
disposition by such Holders of the Registrable Stock and/or Management Stock so registered. No registrations of Registrable Stock and/or Management Stock under this Section 3 shall relieve the
Company of its obligation to effect 

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registrations
under Section 2 hereof, or shall constitute a registration request by any Holder of Registrable Stock under Section 2 (i.e. participation by one or more Holders of
Registrable Stock in a registration pursuant to this Section 3, which was initiated pursuant to Section 2 shall only be treated in the aggregate as one request for a registration
pursuant to Section 2). The Company shall have the right to select the investment banker or bankers who shall serve as the manager and/or co-managers for all registrations of
offerings of Securities under this Section 3 initiated by the Company, provided, however, that if
the registration in which Holders of Registrable Stock request to participate herein is the initial registration under the Securities Act by the Company of an
underwritten public offering of Common, then such investment banker or bankers shall be selected for such registration and offering of Securities by the Company, but only with the consent of the
Holders of at least 60% of the Registrable Conversion Stock included therein, which consent shall not be unreasonably withheld. 

        4.    Registration Procedures.    Whenever the Company is required by the provisions of this Agreement to use its best
efforts to effect the registration of any Stock under the Securities Act, the Company will, as expeditiously as possible: 

        (A)  prepare
and file with the Securities and Exchange Commission a Registration Statement with respect to such Stock and use its best efforts to cause such Registration
Statement to become and remain effective for a period of not less than one year, provided that before filing a Registration Statement or Prospectus or any amendments or supplements thereto, the
Company will furnish to counsel for the Holders of Stock included in such Registration Statement copies of all such documents proposed to be filed, which documents will be subject to the review of
such counsel; 

        (B)  prepare
and file with the Securities and Exchange Commission such amendments and supplements to such Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective for a period of not less than one year and to comply with the provisions of the Securities Act with respect to the sale or
other disposition of all Securities covered by such Registration Statement during such period in accordance with the intended method or methods of disposition by the Sellers thereof set forth in such
Registration Statement; 

        (C)  furnish
to each Seller such number of copies of such Registration Statement, each amendment and supplement thereto, the Prospectus included in the Registration Statement
(including each preliminary Prospectus), and such other documents, as such Seller may reasonably request in order to facilitate the public sale or other disposition of the Securities owned by such
Seller; 

        (D)  use
every reasonable effort to register or qualify all the Securities covered by such Registration Statement under such other securities or blue sky laws of such
jurisdictions as each Seller shall reasonably request, and do any and all other acts and things which may be necessary under such securities or blue sky laws to enable such Seller to consummate the
public sale or other disposition in such jurisdiction of the Securities owned by such Seller covered by such Registration Statement; provided,  however,
that the Company shall not be required to (i) qualify to do business as a foreign corporation in any jurisdiction wherein it would not
otherwise be 

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required
to qualify but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction, or (iii) consent to general service of process in any such jurisdiction; 

        (E)  notify
each Seller at any time when a Prospectus relating to the Securities of such Seller covered by such Registration Statement is required to be delivered under the
Securities Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement contains an untrue statement of a material fact or omits any fact necessary to
make the statements therein not misleading, and at the request of any such Seller, prepare a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of the
Securities covered by such Registration Statement, such Prospectus will not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not
misleading; 

        (F)  cause
all such Securities covered by such Registration Statement to be listed on each securities exchange on which Securities of the same class are then listed; 

        (G)  provide
a transfer agent and registrar for Common not later than the effective date of such Registration Statement; 

        (H)  enter
into such customary agreements (including an underwriting agreement in customary form) and take all such other actions as the Holders of at least a majority of the
Stock included in such Registration Statement pursuant to the provisions of this Agreement or underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such
Securities (including, without limitation, effecting a stock split or a combination of shares); 

        (I)   make
available for inspection by any Seller, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or
other agent retained by any such Seller who is the Holder of at least 5% of the Stock included in such registration pursuant to the provisions of this Agreement or underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, and cause the Company's officers, directors and employees to supply all information reasonably requested by any such Seller,
underwriter, attorney, accountant or agent in connection with such Registration Statement; and 

        (J)   obtain
a cold comfort letter from the Company's independent public accountants and/or a legal opinion letter from the Company's counsel in customary form and covering
such matters of the type customarily covered by cold comfort letters or legal opinion letters, as the case may be, as the underwriters or the Holders of at least a majority of the Stock included in
such Registration Statement pursuant to the provisions of this Agreement reasonably request. 

        5.    Expenses.    To the fullest extent allocable under applicable state securities and blue sky laws, all expenses
incurred in effecting the first registration provided for in Section 2(A) hereof, and in effecting
all of the registrations provided for in Section 2(C) and all of the registrations provided for in Section 3 hereof, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Company, fees and disbursements of one law firm serving as counsel for the Sellers (who shall be selected by Sellers holding at least 60%
of the Registrable Conversion Stock being offered), underwriting expenses other than 

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underwriting
discounts and commissions, expenses of any audits incident to or required by any such registration and expenses of complying with the securities or blue sky laws of any jurisdictions
pursuant to Subsection (D) of Section 4 hereof, shall be borne and paid by the Company; provided,  however, that if, pursuant to the provisions of
Section 8(A), the Holders of Registrable Stock shall be entitled to register less than the total
number of shares of Registrable Stock that all of such Holders requested be registered pursuant to Section 2(A), then the Company shall bear and pay all expenses incurred in effecting the first
two registrations provided for in Section 2(A). 

        6.    Indemnification.    

        (A)  In
the event of any registration of any of its Securities under the Securities Act pursuant to this Agreement, the Company, to the extent permitted by law, shall
indemnify and hold harmless the Seller of such Securities, each underwriter (as defined in the Securities Act), each other Person who participates in the offering of such Securities, and each other
Person, if any, who controls (within the meaning of the Securities Act) such Seller, underwriter or participating Person, against any losses, claims, damages or liabilities, joint or several, to which
such Seller, underwriter, participating Person or controlling Person may become subject under the Securities Act or any other statute or at common law, in so far as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (1) any alleged untrue statement of any material fact contained, on the effective date thereof, in any Registration
Statement under which such Securities were registered under the Securities Act, any preliminary Prospectus or final Prospectus contained therein, or any summary Prospectus issued in connection with
any Securities being registered, or any amendment or supplement thereto, or (2) any alleged omission to state in any such document a material fact required to be stated therein or necessary to
make the statements therein not misleading, and shall reimburse each such Seller, or any such underwriter, participating Person or controlling Person for any legal or other expenses reasonably
incurred by such Seller, underwriter, participating Person or controlling Person in connection with investigating or defending any such loss, damage, liability or action;  provided, however, that the Company shall not be liable to any Seller, or any such underwriter,
participating Person, or controlling Person in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any alleged untrue statement or alleged
omission made in such Registration Statement, preliminary Prospectus, summary Prospectus, Prospectus, or amendment or supplement thereto in reliance upon and in conformity with written information
furnished to the Company by such Seller, specifically for use therein; and, provided, further that the
foregoing indemnity agreement is subject to the condition that, insofar as it relates to any untrue statement, alleged untrue statement, omission or alleged omission made in any Preliminary
Prospectus, Final Prospectus, supplement or amendment, but eliminated or remedied in the Final Prospectus or subsequent supplements and amendments, as the
case may be, such indemnity agreement shall not inure to the benefit of the indemnified Person if the Person asserting any loss, claim, damage or liability if such Person had an obligation to deliver
a copy of the materials eliminating or remedying the untrue statement or omission to the persons who purchased the securities and failed to do so. 

        (B)  Each
Holder of Registrable Stock and Management Stock, by acceptance thereof, severally and not jointly, indemnifies and holds harmless each other Holder of Registrable
Stock and/or Management Stock, the Company, its directors and officers, each underwriter (as defined 

8

 

in
the Securities Act), and each other Person, if any, who controls (within the meaning of the Securities Act) the Company, any underwriter or any Holder, against any losses, claims, damages, or
liabilities, joint or several, to which any such other Holder, the Company, any such director or officer, any such underwriter, or any such Person may become subject under the Securities Act or any
other statute or at common law, in so far as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (1) any alleged untrue statement of any
material fact contained, on the effective date thereof, in any Registration Statement under which Registrable Stock and/or Management Stock is registered under the Securities Act at the request of
such Holder, any preliminary Prospectus or final Prospectus contained therein, or any summary Prospectus issued in connection with any such Securities being registered, or any amendment or supplement
thereto, or (2) any alleged omission to state in any such document a material fact required to be stated therein or necessary to make the statements therein not misleading, in either case of
(1) or (2) to the extent, and only to the extent, that such alleged untrue statement or alleged omission was made in such Registration Statement, preliminary Prospectus, summary
Prospectus, Prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company by such Holder specifically for use therein and in connection with
such Holder's status as a selling shareholder, and then only to the extent that such alleged untrue statements or alleged omissions by such Holder were not based on the authority of an expert as to
which such Holder had no reasonable ground to believe, and did not believe, that the statements made on the authority of such expert were untrue or that there was an omission to state a material fact.
Notwithstanding the foregoing provisions of this Subsection (B), no Holder shall be required to pay'under such provisions an amount in excess of the proceeds received by such Holder in payment for the
Securities sold by such Holder pursuant to the Registration Statement. 

        (C)  Indemnification
similar to that specified in Subsections (A) and (B) of this Section 6 shall be given by the Company and each Seller (with such
modifications as shall be appropriate) covered by any registration or other qualification of Securities under any federal or state securities law or regulation other than the Securities Act with
respect to any such registration or other qualification effected pursuant to this Agreement. 

        (D)  Any
Person which proposes to assert the right to be indemnified under Subsections (A), (B) or (C) of this Section 6 shall, promptly after receipt of
notice of commencement of any action, suit or proceeding against such Person in respect of which a claim is to be made against an indemnifying Person under such Subsections (A), (B) or (C),
notify each such indemnifying Person of the commencement of such action, suit or proceeding, enclosing a copy of all papers served. The indemnifying Person shall have the right to investigate and
defend any such loss, claim, damage, liability or action and to employ separate counsel in any such action and to control the defense thereof. The Person claiming indemnification shall have the right
to employ separate counsel in any such action and to control the defense thereof, but the fees and expenses of such counsel shall not be at the expense of the Person against whom indemnification is
sought; provided, however, that notwithstanding the foregoing, in any case when indemnification is
sought against the Company and (i) the Person seeking indemnification has been advised by counsel that its defenses may be different from those of the Company, or (ii) the indemnifying
person has not proceeded in a timely manner to effect such defense, then the reasonable fees and expenses of counsel for such Person shall be paid by the Company and the indemnified Person shall have
the right to control the defense of such action, suit or proceeding. 

9

 

In
no event shall a Person against whom indemnification is sought under Subsections (A), (B) or (C) be obligated to indemnify any Person for any settlement of any claim or action
effected without the indemnifying Person's or Company's consent, as the case may be. 

        (E)  The
indemnification provided for under this Section 6 will remain in full force and effect regardless of any investigation made by or on behalf of the indemnified
party or any officer, director or controlling Person of such indemnified party and will survive the transfer of Securities. 

        7.    Participation in Underwritten Registrations.    No Person may participate in any underwritten registration
hereunder unless such Person (i) agrees to sell such Person's Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting
arrangements; provided, however, that no Holder of Registrable Stock and/or Management Stock shall be
required to make any representations or warranties or to provide information in the Registration Statement relating to such registration except, in either case, with respect to itself and its intended
method of disposition of Registrable Stock. 

        8.    Marketing Restrictions.    

        (A)  If

        (1)   any
Holder of Registrable Stock is entitled and wishes to register any Conversion Stock in a registration made pursuant to Section 2 hereof, and 

        (2)   the
offering proposed to be made by the Holder or Holders for whom such registration is to be made is to be an underwritten public offering, and 

        (3)   the
Company or one or more Holders of Securities other than Registrable Conversion Stock wishes to register Securities in such registration, and 

        (4)   the
managing underwriters of such public offering furnish a written opinion that the total amount of Securities to be included in such offering would exceed the maximum
amount of Securities (as specified in such opinion) which can be marketed at a price reasonably related to the then current market value of such Securities and without otherwise materially and
adversely affecting such offering, 

then
the relative rights to participate in such offering of the Holders of Registrable Stock, the Holders of other Securities having the right to include such Securities in such registration, and the
Company shall be in the following order of priority: 

        First:    The
Holders of Registrable Conversion Stock, together with Holders of Other Registrable Stock, shall be entitled to participate in accordance with the number of
shares of Registrable Stock or Other Registrable Stock which each such Holder shall request to be registered, such participation to be in accordance with the relative priorities, as shall exist among
them, or, if no such relative priorities exist, pro rata in accordance with the number of shares which each such Holder shall request be 

10

 

registered
if, pursuant to clause 4 of this Subsection (A), the total amount of Securities to be included in the offering will be less than the number of shares of Registrable Stock and Other
Registrable Stock that all of such Holders shall request be registered; and then 

        Second:    The
Holders of Registrable Warrant Stock shall be entitled to participate; and then 

        Third:    The
Company shall be entitled to participate; and then 

        Fourth:    The
Holders of Management Stock shall be entitled to participate in accordance with the number of shares of Management Stock which each such Holder shall request to
be registered, such participation to be pro rata in accordance with the number of shares which each such Holder shall request be registered; and then 

        Fifth:    All
Holders of other Securities having the right to include such Securities in such registration shall be entitled to participate in accordance with the relative
priorities, if any, as shall exist among them. 

and
no Securities (issued or unissued) other than those registered and included in the underwritten offering shall be offered for public sale or other public disposition or otherwise sold, including a
sale pursuant to Rule 144, by the Company or any Holder of Registrable Stock and/or Management Stock from 7 days prior to and until 180 days after the effective date of the
Registration Statement filed pursuant to Section 2 hereof, or such earlier time consented to by the managing underwriters. 

        (B)  If

        (1)   any
Holder of Registrable Stock and/or Management Stock entitled to do so requests registration of Registrable Stock under Section 3 hereof (other than in a
registration initiated pursuant to Section 2 hereof, the priorities with respect to which shall be covered by Section 8(A) above), and 

        (2)   the
offering proposed to be made is to be an underwritten public offering, and 

        (3)   the
managing underwriters of such public offering furnish a written opinion that the total amount of Securities to be included in such offering would exceed the maximum
amount of Securities (as specified in such opinion) which can be marketed at a price reasonably related to the then current market value of such Securities and without materially and adversely
affecting such offering, 

then
the relative rights to participate in such offering of the Holders of Registrable Stock, the Holders of Management Stock, the Holders of other Securities having the right to include such
Securities in such registration, and the Company shall be in the following order of priority: 

11

 

        First:    The
Person or Persons (including the Company in the case of an offering initiated by the Company) requesting such registration and the Holders of Other Registrable
Stock shall be entitled to participate in accordance with the relative priorities, if any, as shall exist among them; and then 

        Second:    The
Holders of Registrable Conversion Stock shall be entitled to participate pro rata among themselves in accordance with the number of shares of Registrable
Conversion Stock which each such Holder shall have requested be registered (for the purposes of this clause, Securities convertible into or exchangeable or exercisable for Common to be treated as if
they were so converted or exchanged or exercised immediately prior to the filing of the Registration Statement covering such registration; and then 

        Third:    The
Holders of Registrable Warrant Stock shall be entitled to participate; and then 

        Fourth:    The
Holders of Management Stock shall be entitled to participate pro rata among themselves in accordance with the number of shares of Management Stock which each
such Holder shall have requested be registered; and then 

        Fifth:    If
such registration shall have been requested by a Person or Persons other than the Company, the Company shall be entitled to include Securities in such
registration; and then 

        Sixth:    All
other Holders of other Securities having the right to include such Securities in such registration shall be entitled to participate with the relative priorities,
if any, as shall exist among them; 

and
no Securities (issued or unissued) other than those registered and included in the underwritten offering shall be offered for public sale or other public disposition or otherwise sold, including a
sale pursuant to Rule 144, by the Company or any Holder of Registrable Stock and/or Management Stock from 7 days prior to and until the expiration of 180 days after the effective
date of the Registration Statement in which Registrable Stock and/or Management Stock was included pursuant to Section 3 hereof, or such earlier time consented to by the managing underwriters. 

        9.    Sale of Convertible Preferred to Underwriter.    Notwithstanding anything in this Agreement to the contrary, in
lieu of converting any shares of Convertible Preferred prior to or simultaneously with the filing or the effectiveness of any Registration Statement filed pursuant to this Agreement, the Holder of
such Convertible Preferred may sell such Convertible Preferred to the underwriter of the offering being registered if such underwriter consents thereto and if such underwriter undertakes to convert
such Convertible Preferred before making any distribution pursuant to such Registration Statement and to include the Conversion Stock among the Securities being offered pursuant to such Registration
Statement. The Company agrees to cause the Conversion Stock to be issued within such time as will permit the underwriter to make and complete the distribution contemplated by the underwriting. 

12

 

        10.    Grant of Subsequent Registration Rights.    The Company may not grant registration rights to subsequent
investors in the Company unless such rights are subordinate to the rights of the Holders of Registrable Stock or the grant of such rights is consented to by the Holders of not less than 60% of the
then outstanding Registrable Conversion Stock. Notwithstanding the foregoing, so long as any shares of Registrable Stock exist, the Company shall not grant to any Holder of its Securities other than
Registrable Stock the right to include such Securities in any Registration Statement filed pursuant to Section 2 hereof without the consent of the Holders of not less than 60% of the then
outstanding Registrable Conversion Stock, except as contemplated pursuant to the definition of Management Shareholders herein. 

        11.    Miscellaneous    

        (A)    Remedies.    Each of the parties to this Agreement will be entitled to enforce his or its rights under this
Agreement specifically, to recover damages by reason of a breach of a provision of this Agreement, and to exercise all other rights existing in his or its favor. The parties agree and acknowledge that
money damages might not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion obtain from any court of competent jurisdiction specific
performance or injunctive relief in order to enforce (or prevent any violations of) the provisions of this Agreement (without any bond or other security being required), and-waive the
defense in any action or proceeding brought to enforce this Agreement that there exists an adequate remedy at law. 

        (B)    Further Execution.    The parties hereto agree to execute any additional documents or instruments necessary to
carry out the purposes of this Agreement. 

        (C)    Governing Law.    The validity, meaning and effect of this Agreement shall be determined in accordance with the
laws of the State of Minnesota applicable to contracts made and to be performed in that state. 

        (D)    Descriptive Headings.    The descriptive headings herein are solely for the convenience of the parties and
shall not serve to modify or interpret the text of the Sections at the beginnings of which they appear. 

        (E)    Severability.    Whenever possible, each provision of this Agreement will be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent
of such prohibition or invalidity, without invalidating the remainder of this Agreement. 

        (F)    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original but all of which shall together constitute one and the same document. 

        (G)    Entire Agreement.    This Agreement constitutes the entire agreement by and among the parties hereto with
respect to the subject matter hereof. 

        (H)    Assignability of Registration Rights.    The registration rights set forth in this Agreement shall accrue to
each subsequent Holder of Registrable Stock who consents in writing 

13

 

to
be bound by the terms and conditions of this Agreement; but not to any subsequent Holder of Management Stock other than any of (i) a nominee for such Management Shareholder, (ii) an
Affiliate of such Management Shareholder, (iii) the spouse or any lineal descendant of a Management Shareholder (a "Relative") and (iv) a trust or family partnership for the sole benefit
of one or more of such Management Shareholder and/or one or more of such Management Shareholder's Relatives, which transferee, in any such case, consents in writing to be bound by the terms and
conditions of this Agreement. 

        (I)    Notices.    All communications provided for hereunder shall be in writing and delivered by hand or by
first-class or certified mail, postage prepaid or, nationally recognized overnight courier to the following addresses, or such other addresses as shall be given by notice delivered hereunder, and
shall be deemed to have been received on the day of personal delivery, next day when sent by overnight courier or five business days after such mailing: 

If
to any Holders of Registrable Stock, addressed to such Holders at their addresses as shown on the books of the Company or its transfer agent (and if to FdG, with a copy to Kaye, Scholer, Fierman,
Hays & Handler, LLP, 425 Park Avenue, New York, New York 10022, Attention: Nancy Fuchs); 

If
to the Company, to: 

Golf
Galaxy, Inc.

7725 Washington Ave. South, Ste.250

Edina, Minnesota 55439

Attention: President 

or,
as to any Holder of Registrable Stock or the Company, to such other persons or at such other addresses as shall be furnished by any such party by like notice to the other parties. 

        (J)    Termination.    All rights under this Agreement shall terminate as to any Holder of Registrable Stock and/or
Management Stock at such time as such Holder is free to sell all shares of Registrable Stock held by such Holder pursuant to Rule 144(k) under the Securities Act or a comparable exemption from
registration that enables the Holder to sell all shares of Registrable Stock and/or Management Stock held by such Holder without registration under the Securities Act and without restriction as to the
manner of sale or otherwise. This Agreement shall terminate at such time as no shares of Profonma Conversion Stock exist. 

        (K)    Amendments.    This Agreement may be amended, modified or supplemented (other than to add a Management
Shareholder as a party hereto) only by a written instrument executed by the Company, Holders of not less than 60% of the then existing shares of Registrable Stock, and in the event any such action
adversely affects the rights or interests of the Holders of Management Stock, Holders of not less than a majority of the then existing shares of Management Stock. Any term, covenant, agreement or
condition in this Agreement may be waived (either generally or in particular instances and either retroactively or prospectively) by written instruments signed by the Company and Holders of not less
than 60% of the existing shares of Registrable Stock, and in the event any such action adversely affects the rights or interests of the Holders of Management Stock, Holders of not less than a majority
of the then 

14

 

existing
shares of Management Stock. Any such waiver shall be limited to its express terms and shall not be termed a waiver of any other term, covenant, agreement or condition. 

        (L)    Status of Amended and Restated Registration Rights Agreement dated July 9, 1999.    This Agreement
amends and replaces in its entirety the Amended and Restated Registration Rights Agreement dated July 9, 1999 among the Company, the Investors (except Musicland), Zanatta and Maanum, which
shall have no further force or effect. 

15

        IN WITNESS WHEREOF, each of the parties hereto has executed this Registration Rights Agreement as of the day and year first written above. 

	

ATTEST:	
 	

GOLF GALAXY, INC.
	

/s/  GREGORY B. MAANUM      
	
 	

/s/  RANDALL K. ZANATTA      

	Secretary	 	By:	 	Randall K. Zanatta
	 	 	Its:	 	President

	

 	
 	

The terms of the foregoing Registration Rights Agreement are approved, agreed to and accepted by the undersigned as of the day and year first written above.
	

 	
 	

WILLIAM BLAIR CAPITAL PARTNERS V, L.P.
	

 	
 	

By:	
 	

William Blair Capital Management, L.L.C.
	 	 	Its:	 	General Partner
	

 	
 	

/s/  GREGG S. NEWMARK      

	 	 	By:	 	Gregg S. Newmark
	 	 	Its:	 	Managing Director

	

 	
 	

The terms of the foregoing Registration Rights Agreement are approved, agreed to and accepted by the undersigned as of the day and year first written above.
	

 	
 	

/s/  GREGORY B. MAANUM      
 GREGORY B. MAANUM

	

 	
 	

The terms of the foregoing Registration Rights Agreement are approved, agreed to and accepted by the undersigned as of the day and year first written above.
	

 	
 	

/s/  RANDALL K. ZANATTA      
 RANDALL K. ZANATTA

	

 	
 	

The terms of the foregoing Registration Rights Agreement are approved, agreed to and accepted by—the undersigned as of the day and year first written above.
	

 	
 	

PRIMUS CAPITAL FUND IV

LIMITED PARTNERSHIP
	

 	
 	

By:	
 	

Primus Venture Partners IV

Limited Partnership,

its General Partner
	

 	
 	

By:	
 	

Primus Venture Partners IV, Inc.,

its General Partner
	

 	
 	

/s/  WILLIAM C. MULLIGAN      

	 	 	By:	 	William C. Mulligan
	 	 	Its:	 	Executive Vice President
	

 	
 	

PRIMUS EXECUTIVE FUND LIMITED PARTNERSHIP
	

 	
 	

By:	
 	

Primus Venture Partners IV

Limited Partnership;

its General Partner
	

 	
 	

By:	
 	

Primus Venture Partners IV, Inc.,

its General Partner
	

 	
 	

/s/  WILLIAM C. MULLIGAN      

	 	 	By:	 	William C. Mulligan
	 	 	Its:	 	Executive Vice President

	

 	
 	

The terms of the foregoing Registration Rights Agreement are approved, agreed to and accepted by the undersigned as of the day and year first written above.
	

 	
 	

FdG CAPITAL PARTNERS LLC
	

 	
 	

By:	
 	

FdG Capital Associates LLC
	

 	
 	

/s/  M. ANTHONY FISHER      

	 	 	By:	 	M. Anthony Fisher
	 	 	Its:	 	Manager
	

 	
 	

FdG-CHASE CAPITAL PARTNERS LLC
	

 	
 	

By:	
 	

FdG Capital Associates LLC
	

 	
 	

/s/  M. ANTHONY FISHER      

	 	 	By:	 	M. Anthony Fisher
	 	 	Its:	 	Manager

	

 	
 	

The terms of the foregoing Registration Rights Agreement are approved, agreed to and accepted by the undersigned as of the day and year first written above.
	

 	
 	

THE MUSICLAND GROUP, INC.
	

 	
 	

/s/  JACK W. EUGSTER      

	 	 	By:	 	Jack W. Eugster
	 	 	Its:	 	Chairman, CEO & President

QuickLinks

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENTEXHIBIT 10.1  

RETENTION AGREEMENT  

	DATE:	 	December 31, 1997	 	 
	
PARTIES:	
 	

Golf Galaxy, Inc,

7850 Dupont Avenue

South Bloomington, MN 55420	
 	

("Company")
	

 	
 	

Randy Zanatta

4721 White Oak Court

Eagan, Minnesota 55122	
 	

("Employee")

RECITALS:  

	A.
	Employee
is employed by the Company.

	B.
	Although
the Company presently anticipates no change in control, the Board of Directors wishes to plan for such a possibility and to ensure Employee's continued dedication and efforts
in such event without undue concern for personal financial and employment security.

	C.
	The
parties hereto desire to fulfill the above purpose according to the terms set forth in this Agreement. 

AGREEMENTS:  

        In consideration for the mutual covenants set forth in this Agreement and other good and valuable consideration, the sufficiency of which is hereby acknowledged,
the parties to this Agreement agree as follows: 

	1.
	Definitions.    The following words and phrases as used in this Agreement shall have the following respective meanings.

	a)
	a
termination of employment for Cause is a termination precipitated by Employee's:

	i)
	The
Employee shall commit any breach or violation of any of the Employee's representations or covenants under this Agreement or under any employment agreement with the
Company, which breach continues for a period of ten (10) days following notice thereof from the Company (except in the event of a breach of any provisions of this Agreement or of any employment
agreement or other agreement relating to confidentiality, loyalty, noncompetition or noninducement, which shall require no notice to Employee prior to termination; 

1

 

	ii)
	The
Employee shall willfully and continually fail to substantially perform Employee's duties with the Company (other than due to incapacity resulting from physical or
mental illness) which failure has continued for at least 30 days following receipt by Employee of written notice specifying the failure to substantially perform;

	iii)
	The
Employee shall willfully engage in conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise, which injurious conduct has
continued for at least 30 days following Employee's receipt of written notice specifying the injurious conduct and offering Employee the opportunity to explain the conduct to the Board.

	iv)
	The
Employee shall, in the performance of the Employee's duties under any employment agreement, engage in any act of misconduct, including misconduct involving moral
turpitude, which is injurious to the Company;

	v)
	The
Employee shall violate or willfully refuse to obey the lawful and reasonable instructions of the Board of the Company, provided that such instructions are not in
violation of this Agreement, or any employment agreement between the Employee and the Company.

	vi)
	The
Employee shall become disabled during the Term (the Employee shall be deemed to be disabled if the Employee is unable to perform the material functions of Employee's
position with the Company, with or without reasonable accommodation, by reason of a physical or mental infirmity, for a period of ninety (90) consecutive days within any 180.day period).

	vii)
	The
Employee shall die during the Term of this Agreement.

	b)
	A Change in Control shall be deemed to occur:

	i)
	if
any person other than persons currently owning more than five percent of the Company's securities is or becomes the "beneficial owner" (as defined in
Rule 13d-3 of the Securities Exchange Act of 1934), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company's then
outstanding securities;

	ii)
	upon
the approval by the Company's stockholders and the consummation of a Transaction; or

	iii)
	if,
during any period, members of the Incumbent Board cease for any reason to constitute at least a majority of the Board. 

Notwithstanding
the foregoing, a Change in Control pursuant to subparagraphs (ii) and (iii) above shall not be deemed to occur if immediately following the consummation of a Transaction
or other event approved by the Incumbent Board, 

2

 

holders
of the Company's voting securities immediately prior to a Transaction either continue to own at least 50% of the combined voting power of the Company's then outstanding voting securities
representing at least 50% of the combined voting power of each surviving entity after a Transaction. 

	c)
	Termination
of employment by Employee for Good Reason is a termination of employment due to the occurrence of any one of the following events or conditions:

	i)
	a
material change in Employee's title, position or responsibilities which represents a substantial reduction of the title, position or responsibilities in effect
immediately prior to the change; the assignment of Employee to a position which requires Employee to relocate permanently to a site outside of the Minneapolis-St. Paul metropolitan area;
the assignment to Employee of any duties or responsibilities (other than due to a promotion) which are inconsistent with such title, position or responsibilities; or any removal of Employee from or
failure to reappoint or reelect Employee to any Of such positions, except in connection with the termination of employment for Cause, as a result of permanent disability (as determined by Employee's
eligibility to receive disability benefits under any long-term disability plan the Company may then have in effect), as a result of Employee's death, or by Employee other than for Good
Reason; or

	ii)
	any
material breach by the Company of any provision of this Agreement.

	d)
	The
Incumbent Board consists of the members of the Board of Directors of the Company as of the date of this Agreement, to the extent
they continue to serve as Board members and any individual who becomes a Board member after the date of this Agreement if (i) his or her election or nomination as a director was approved by a
vote of at least two thirds of the then incumbent Board and such person does not own more than 20% of the Company's securities, or (ii) such individual is a representative of an institutional
investor than either owns less than 20% of the Company's securities or was represented on the Board as of the date of this Agreement.

	e)
	The
Severance Period is the six-month period beginning on the date of termination of Employee's employment.

	f)
	A
Transaction means a merger or consolidation, reorganization, distribution of assets to stockholders by spin-off,
split-up or otherwise, a sale or disposition of all or substantially all of the Company's assets or a liquidation or dissolution of the Company.

	2.
	Severance.

	a)
	Employee
shall be entitled to receive from the Company severance benefits in the amount provided in subsection b. below, if in connection with a Change in 

3

 

Control
or within one year after a Change in Control, Employee's employment with the Company is terminated; provided, however, that Employee will not be entitled to any severance benefit if Employee's
termination of employment is (i) for Cause, or (ii) initiated by Employee for other than Good Reason. Notwithstanding any other provision of this Agreement, the consummation of a
Transaction in itself shall not be deemed a termination of employment entitling Employee to severance benefits hereunder even if such event results in Employee being employed by a different entity
which assumes the Company's obligations under this Agreement. 

	b)
	If
Employee's services are terminated, entitling Employee to severance benefits pursuant to subsection a. above, Employee shall be entitled to the following benefits:

	i)
	During
the Severance Period, the Company shall continue to pay to Employee the annual base salary payable to Employee at the rate and according to the payment schedule in
place immediately prior to the termination of employment, subject to federal and state withholding, FICA, FUTA and withholding for all other applicable taxes;

	ii)
	During
the Severance Period, the Company shall continue on behalf of Employee (and Employee's dependents and beneficiaries), life insurance, disability insurance,
medical and dental benefits and any/all other benefits which were being provided to Employee at the time of termination of employment and the expense shall be allocated between the Company and
Employee on the same basis as prior to the date of termination of employment. The benefits provided pursuant to this subsection (ii) shall be no less favorable to Employee than the coverage provided
to Employee under the plans providing such benefits at the time notice of termination was given to Employee. The obligation of the Company under this subsection (ii) shall be limited to the
extent that Employee obtains any such benefits pursuant to a subsequent employee's benefit plans, in which case the Company may reduce the coverage of any benefit it is required to provide Employee
under this subsection (ii) as long as the aggregate coverage of the combined benefit plans is no less favorable to Employee, in terms of amounts and deductibles and costs to Employee, than the
coverage required to be provided under this subsection (ii) as long as the aggregate coverage of the combined benefit plans is no less favorable to Employee, in terms of amounts and deductibles
and costs to Employee, than the coverage required to be provided under this subsection (ii). This subsection (ii) shall not be interpreted so as to limit any benefits to which Employee (or
Employee's dependents or beneficiaries) are entitled under any of the Company's employee benefit plans, programs or practices following Employee's date of termination of employment. The provision of
continued benefits to Employee under this subsection (ii) shall not deprive Employee of any independent statutory right to continue benefits 

4

 

coverage
pursuant to Sections 601 through 606 of the Employee Retirement Income Security Act of 1974, as amended; and 

	iii)
	On
the date of termination of employment, the Company shall pay Employee an amount equal to the bonus(es), if any, Employee would have received had Employee remained in
the Company's employment during the Severance Period, calculated using the targeted bonus rate established by the Company under any applicable employment agreement or in its bonus plan then in effect
(or, if no rate was established for the period in question, the targeted bonus rate established for the prior period) and assuming that all performance criteria would have been met, provided, however,
that if the targeted bonus rate is based on performance over a period of time which ends after the Severance Period, then the amount paid to Employee under this subsection (iii) shall be
prorated based on the number of days Employee was employed by the Company during the applicable bonus period plus the number of days in the Severance Period.

	iv)
	In
the event the Employee is employed under any employment agreement with the Company which also provides for severance payments upon termination of Employee's
employment under certain circumstances, and if Employee is entitled to receive severance payments and/or benefits thereunder, then the severance payments and/or benefits provided hereunder shall be
reduced on a dollar-for-dollar basis by the severance payments and/or benefits provided under the employment agreement; it being the intention of the parties hereto that the
Employee shall only be entitled to receive "one" set of severance payments and benefits under any circumstances.

	3.
	Acceleration of Options.    In the event the Employee is entitled to severance benefits following the occurrence of a Change
in Control, all of Employee's rights to exercise option(s) granted under Company's stock option plan and held by Employee at the time of the Change in Control shall immediately vest resulting in these
option(s) becoming immediately exercisable for the period specified in the section of the respective option(s) relating to vesting of options in the event of termination of employment, or, if no
period is so specified, then for six months, after which time the option(s) shall expire.

	4.
	Term of Agreement.    This Agreement shall continue in full force and effect until terminated as provided in this section.
This Agreement shall terminate on the earlier of:

	a)
	the
August 31st of a year after 1998, if the Board by the affirmative vote of a majority of its members prior to June 1 of such year and prior to the occurrence or active
consideration of a specific Change in Control has voted to terminate this Agreement; or 

5

 

	b)
	if
Employee's services are terminated prior to the occurrence of a Change in Control or after the first anniversary of a Change in Control, the date of such termination of services; or

	c)
	if
Employee's services are terminated upon or within the first year following a Change in Control under circumstances where Employee would not be entitled to severance benefits
pursuant to this Agreement, the date of such termination of services; or

	d)
	after
a Change in Control, the date on which any successor to the Company has performed all of its obligations under Section 2 of this Agreement and Employee has performed all
of Employee's obligations under Section 5 of this Agreement.

	5.
	Agreement not to Compete.    In consideration of the severance and other benefits granted to Employee hereunder, Employee
agrees that during the period of Employee's employment with the Company and for the six-month period immediately following termination of the Employee's employment with the Company for any
reason, Employee shall not, directly or indirectly, on his own account or in the service of any other person, firm, corporation or other entity, become involved as an employee, partner, director,
officer, principal, agent, consultant or in any other relationship or capacity with any person, firm, corporation or other entity engaged in any business of the type being conducted or rendered by the
Company on the date of the termination of Employee's employment. Employee further agrees that during the period of his employment with the Company and for the six-month period immediately
following termination of such employment for any reason, Employee shall not, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity aid or endeavor to
solicit or induce any of the employees of the Company or its affiliates to leave their employment in order to accept employment elsewhere.

	6.
	Confidentiality and Loyalty.    Employee acknowledges that, during the course of Employee's employment Employee will produce
and have access to materials, records, data and information not generally available to the public regarding the Company, its customers and affiliates (collectively "Confidential Information").
Accordingly, during and subsequent to the termination of this Agreement, Employee shall hold in confidence and not directly or indirectly disclose, use, copy or make lists of any Confidential
Information, except to the extent authorized in writing by the Company, or as required by law or any competent administrative agency or as otherwise is reasonably necessary or appropriate in
connection with the performance by Employee of his duties pursuant to this Agreement. Upon termination of Employee's employment under this Agreement, Employee shall promptly deliver to the Company
(i) all records, manuals, books, documents, client lists, letters, reports, data, tables, calculations and all copies of any of the foregoing which are the property of the Company or which
relate in any way to the business or practices of the Company, and (ii) all other property of the Company and Confidential Information which in any of these cases are in his possession or under
his control. 

6

 
	7.
	Remedies.    Employee agrees and understands that any breach of any of the covenants or agreements set forth in Sections 5 or
6 of this Agreement will cause the Company irreparable harm for which there is no adequate remedy at law, and, without limiting whatever other rights and remedies the Company may have under this
Agreement, Employee consents to the issuance of an injunction in favor of the Company enjoining the breach of any of the aforesaid covenants or agreements by any court of competent jurisdiction. If
any or all of the aforesaid covenants or agreements are held to be unenforceable because of the scope or duration of such covenant or agreement, the parties agree that the court making such
determination shall have the power to reduce or modify the scope and/or duration of such covenant to the extent that allows the maximum scope and/or duration permitted by applicable law.

	8.
	Successors.    This Agreement shall bind, and may be enforced by, any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, in the same manner and to the same extent that the Company would be obligated under or
entitled to enforce this Agreement if no succession had taken place. In the case of any Transaction in which a successor would not by the foregoing provision or by operation of law be bound by this
Agreement, the Company shall use its best efforts to require such successor expressly and unconditionally to assume and agree to perform the Company's obligations under this Agreement, in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place unless the Company previously arranged to establish an escrow to satisfy its
obligations hereunder.

	9.
	Entire Agreement.    This Agreement contains the entire understanding of the parties hereto in respect of the subject matter
hereof and supersedes all prior agreements and understandings between the parties with respect to such subject matter; provided, that the parties acknowledge that they have also entered into an
employment agreement of even date herewith which also provides for severance payments and/or benefits upon termination of Employee's employment for certain circumstances and that pursuant to
Section 2.(b)(iv) of this Agreement, the severance payments and/or benefits provided hereunder shall be reduced on a dollar for dollar basis by the severance payments and/or benefits
provided under such Employment Agreement, it being the intention of the parties hereto that they Employee shall only be entitled to receive "one" set of severance payments and benefits under any
circumstances.

	10.
	Assignment.    This Agreement shall not be assignable by Employee. Any and all assignments of this Agreement or any interest
therein not made in accordance with this paragraph shall be void.

	11.
	No Waiver.    Any waiver of any term or condition of this Agreement by either party shall not operate as a waiver of any
continued breach of such term or condition, or any other term or condition, nor shall any failure to enforce a provision of this Agreement operate as a waiver of such provision or of any other
provision of this Agreement.

	12.
	Captions.    The captions and headings of this Agreement are for convenience only and shall in no way limit or otherwise
effect any of the terms or provisions contained herein. 

7

 
	13.
	Severability.    Should any provision of this Agreement, or its application, to any extent by held invalid or unenforceable,
the remainder of this Agreement and its application, excluding such invalid or unenforceable provisions shall not be affected by such exclusion and shall continue valid and enforceable to the fullest
extent permitted by law or equity.

	14.
	Governing Law.    This Agreement shall for all purposes be governed and interpreted in accordance with the laws of the State
of Minnesota.

	15.
	Arbitration.    The Company and Executive agree that any claim or controversy that arises out of or relates to this
Agreement, or the breach of it by either party, will be settled by arbitration in the City of Minneapolis, Minnesota, in accordance with the rules then obtaining of the American Arbitration
Association, and the award rendered pursuant to such arbitration shall be final, binding and conclusive as to the Company and Executive, and judgment upon such award may be entered without notice and
enforced in any court having jurisdiction. Costs of arbitration (excluding the costs of each party's own counsel or advisors) shall be borne equally by the Company and Executive. Notwithstanding the
foregoing, the Company shall have the right to submit any claim against Executive arising out of any provision of Section 5 and 6 hereof to any court of competent jurisdiction in Hennepin
County, Minnesota, in lieu of seeking arbitration pursuant to this Section. 

        Each
of the parties hereto have executed this Agreement in the manner appropriate to each, all as of the date first above written. 

	GOLF GALAXY, INC.	 	EMPLOYEE
	

By	
 	

/s/ GREG B. MAANUM
	
 	

/s/ RANDY ZANATTA

	Its	 	Executive V.P.
	 	Randy Zanatta

8

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