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                                                                    EXHIBIT 10.8

              EMPLOYMENT, CONFIDENTIALITY AND NONCOMPETE AGREEMENT

     This Employment, Confidentiality and Noncompete Agreement ("Agreement") is
made and entered into effective as of the 7th day of March, 2004, by and between
Build-A-Bear Workshop, Inc., a Delaware corporation ("Company"), and Scott Seay
("Employee").

     WHEREAS, Company desires to employ and Employee desires to be employed as
the Chief Workshop Officer of Company.

     WHEREAS, Company has pioneered the retail concept of "make your own" stuff
plush toys, including animals and dolls, and is engaged in, among other things,
the business of production, marketing, promotion and distribution of plush stuff
toys, clothing, accessories and similar items, including without limitation, the
ownership, management, franchising, leasing and development of retail stores in
which the basic operation is the selling of such items, and the promotion of the
related concepts and characters through merchandising and mass media. The
Company is headquartered and its principal place of business are located in, and
this Agreement is being signed in, St. Louis, Missouri.

     WHEREAS, Company conducts business in selected locations throughout the
United States and internationally through franchise arrangements.

     WHEREAS, Company has expended a great deal of time, money and effort to
develop and maintain its proprietary Confidential Information (as defined
herein) which is material to Company and which, if misused or disclosed, could
be very harmful to Company's business.

     WHEREAS, the success of Company depends to a substantial extent upon the
protection of its Confidential Information and goodwill by all of its employees.

     WHEREAS, Company compensates its employees to, among other things, develop
and preserve goodwill with its customers, landlords, suppliers and partners on
Company's behalf and business information for Company's ownership and use.

     WHEREAS, if Employee were to leave Company, Company, in all fairness, would
need certain protections in order to prevent competitors of Company from gaining
an unfair competitive advantage over Company or diverting goodwill from Company,
or to prevent Employee from misusing or misappropriating the Confidential
Information.

     NOW, THEREFORE, in consideration of the compensation and other benefits of
Employee's employment by Company and the recitals, mutual covenants and
agreements hereinafter set forth, Employee and Company agree as follows:

     1.   Employment Services.

          (a)  Employee is hereby employed by Company, and Employee hereby
accepts such employment, upon the terms and conditions hereinafter set forth.
Employee shall serve

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as Chief Workshop Officer, during the Employment Period, on a full-time basis.
Employee shall carry out such duties as are assigned to him by Company's
President and Chief Executive Officer.

          (b)  Employee agrees that throughout Employee's employment with
Company, Employee will (i) faithfully render such services as may be delegated
to Employee by Company, (ii) devote substantially all of Employee's entire
business time, good faith, best efforts, ability, skill and attention to
Company's business, and (iii) follow and act in accordance with all of the
rules, policies and procedures of Company, including but not limited to working
hours, sales and promotion policies, and specific Company rules. Company further
agrees that it shall not during the Initial Term of this Agreement require
Employee to relocate his residence outside of the St. Louis metropolitan area.

          (c)  "Company" means Build-A-Bear Workshop, Inc. or one of its
Subsidiaries, whichever is Employee's employer. The term "Subsidiary" means any
corporation, joint venture or other business organization in which Build-A-Bear
Workshop, Inc. now or hereafter, directly or indirectly, owns or controls more
than fifty percent (50%) interest.

     2.   Term of Employment. The term of this Agreement shall commence on the
date first set forth above, and shall end on the third anniversary hereof,
unless sooner terminated as provided in Section 4 hereof (the "Initial Term").
Following the Initial Term, this Agreement shall automatically renew for
successive one-year periods (each a "Renewal Period"; collectively, the Initial
Term and each Renewal Period, the "Employment Period"), unless sooner terminated
as provided in Section 4 hereof.

     3.   Compensation.

          (a)  Base Salary. During the Employment Period, Company shall pay
Employee as compensation for his services an annual base salary of not less than
Two Hundred Ninety-Three Thousand Dollars ($293,000), payable in accordance with
Company's usual practices. Employee's annual base salary rate shall be reviewed
by Company's Compensation Committee at least annually for increase following
each fiscal year so that Employee's salary will be commensurate for similarly
situated executives with firms similarly situated to Company; provided, however,
that if Employee's individualized performance targets (set for each fiscal year
by Employee and Employee's team leader) are achieved, Employee's annual base
salary rate shall not be subject to decrease at any time during the Employment
Period and shall be subject to annual increase by no less than the average
percentage increase given to all other Company executive employees for such
fiscal year (the "Average Increase").

          (b)  Bonus. Should Company exceed its sales, profits and other
objectives for any fiscal year, Employee shall be eligible to receive a bonus
for such fiscal year as determined by the Compensation Committee of the Board of
Directors. For the current fiscal year, Employee will participate in the Chiefs
Bonus Plan previously approved by the Compensation Committee of the Board of
Directors. In future years, such bonus opportunity will not be less than fifty
percent (50%) of Employee's annual base pay for such fiscal year. Any bonus
payable to Employee will be payable in cash, stock or stock options, or
combination thereof, all as determined by the Board of

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Directors or any duly authorized committee thereof, and unless a different
payout schedule is applicable for all executive employees of the Company, any
such bonus payment will be payable in a single, lump sum payment. For the
current fiscal year, and in the event of termination of this Agreement because
of Employee's death or disability (as defined by Section 4(b)), termination by
the Company without Cause pursuant to Section 4.1(c), or pursuant to Employee's
right to terminate this Agreement for Good Reason under Section 4.1(d), the
bonus criteria shall not change and any bonus shall be pro-rated based on the
number of full calendar weeks during the applicable fiscal year during which
Employee was employed hereunder.

          Such bonus, if any, shall be payable after Company's accountants have
determined the sales and profits and have issued their audit report with respect
thereto for the applicable fiscal year, which determination shall be binding on
the parties. Any such bonus shall be paid within one hundred twenty (120) days
after the end of each calendar year or thirty (30) days after the issuance of
the auditor's report, whichever is later, regardless of Employee's employment
status at the time payment is due.

          (c)  Stock Options. Employee had previously been granted options to
purchase 45,000 shares of Company's common stock (the "Common Stock"), pursuant
to the terms set forth more particularly in the Option Agreements used in
connection with the Build-A-Bear Workshop, Inc. 2000 Stock Option Plan (or any
successor plan) (the "Plan"). For 2004, Employee shall be granted options to
purchase an additional 20,000 shares pursuant to the Plan and the applicable
Option Agreements. It is intended that such options will be granted pursuant to
the Plan, and will be incentive stock options. Future options to purchase the
Common Stock may be granted upon the recommendation of the Chief Executive
Officer, in her discretion, and approval of the Compensation Committee.

          (d)  Discounts. Employee and his immediate family will be entitled to
a 20% discount for all merchandise purchased at Company's stores.

          (e)  Vacation. Employee shall be entitled to paid vacation and paid
sick leave on the same basis as may from time to time apply to other Company
executive employees generally. Vacations will be scheduled with the approval of
Company's President and Chief Executive Officer, who may block out certain
periods of time during which vacations may not be taken, including preceding
Valentine's Day, preceding Easter, from November 1 through December 31, during
Company inventory, and just prior to store openings. One-third of one year's
vacation (or any part of it) may be carried over to the next year; provided that
such carry over is used in the first calendar quarter of the next year. Unless
approved by the Chief Executive Bear or President and Chief Operation Officer
Bear, all unused vacation shall be forfeited. No more than two weeks of vacation
can be taken at one time. Employee shall also be entitled to one (1) additional
day per calendar year of paid vacation to be taken in the month of his birthday.

          (f)  Other. Employee shall be eligible for such other perquisites as
may from time to time be awarded to Employee by Company payable at such times
and in such amounts as Company, in its sole discretion, may determine. All such
compensation shall be subject to customary withholding taxes and other
employment taxes as required with respect thereto.

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Employee shall also qualify for all rights and benefits for which Employee may
be eligible under any benefit plans including group life, medical, health,
dental and/or disability insurance or other benefits ("Welfare Benefits") which
are provided for employees generally at his then current location of employment.

     4.   Termination of Employment. Prior to the expiration of the Employment
Period, this Agreement and Employee's employment may be terminated as follows:

          (a)  Upon Employee's death;

          (b)  By the Company upon thirty (30) day's prior written notice to
Employee in the event Employee, by reason of permanent physical or mental
disability (which shall be determined by a physician selected by Company or its
insurers and acceptable to Employee or Employee's legal representative (such
agreement as to acceptability not to be withheld unreasonably), shall be unable
to perform the essential functions of his position, with or without reasonable
accommodation, for three (3) consecutive months; provided, however, Employee
shall not be terminated due to permanent physical or mental disability unless or
until said disability also entitles Employee to benefits under such disability
insurance policy as is provided to Employee by Company.

          (c)  By the Company with or without Cause. For the purposes of this
Agreement shall, "Cause" shall mean: (i) Employee's engagement in any conduct
which, in Company's reasonable determination, constitutes gross misconduct, or
is illegal, unethical, improper provided such conduct brings detrimental
notoriety or material harm to Company; (ii) gross negligence or willful
misconduct; (iii) conviction of fraud or theft; (iv) a material breach of a
material provision of this Agreement by Employee, or (v) failure of Employee to
follow a written directive of the Chief Executive Bear or the Board of Directors
within thirty (30) days after receiving such notice, provided that such
directive is reasonable in scope or is otherwise within the Chief Executive
Bear's or the Board's reasonable business judgment, and is reasonably within
Employee's control; provided Employee does not cure said conduct or breach (to
the extent curable) within 30 days after the Chief Executive Bear or the Board
of Directors provides Employee with written notice of said conduct or breach.

          (d)  By the Employee with or without Good Reason. For purposes of this
Agreement, "Good Reason" shall mean a material breach of a material provision of
this Agreement by Company, provided Company does not cure said breach within
thirty (30) days after Employee provides the Board of Directors with written
notice of the breach.

     4.2  Impact of Termination.

          (a)  Survival of Covenants. Upon termination of this Agreement, all
rights and obligations of the parties hereunder shall cease, except termination
of employment pursuant to Section 4 or otherwise shall not terminate or
otherwise affect the rights and obligations of the parties pursuant to Sections
5 through 13 hereof.

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          (b)  Severance. In the event during the Employment Period (i) the
Company terminates Employee's employment without Cause pursuant to Section
4.1(c) or (ii) the Employee terminates his employment for Good Reason pursuant
to Section 4.1(d), the Company shall continue his base salary for a period of
twelve (12) months from termination, such payments to be reduced by the amount
of any compensation from a subsequent employer during such period. The Company
shall also continue Employee's Welfare Benefits for such period to the extent
permitted by the Company's Welfare Benefit Plans. Employee shall accept these
payments in full discharge of all obligations of any kind which Company has to
him except obligations, if any, to repurchase any capital stock of Company owned
by Employee. Employee shall also be eligible to receive a bonus with respect to
the year of termination as provided in Section 3(b).

     5.   Confidential Information.

          (a)  Employee agrees to keep secret and confidential, and not to use
or disclose to any third parties, except as directly required for Employee to
perform Employee's employment responsibilities for Company, any of Company's
proprietary Confidential Information.

          (b)  Employee acknowledges and confirms that certain data and other
information (whether in human or machine readable form) that comes into his
possession or knowledge (whether before or after the date of this Agreement) and
which was obtained from Company, or obtained by Employee for or on behalf of
Company, and which is identified herein (the "Confidential Information") is the
secret, confidential property of Company. This Confidential Information
includes, but is not limited to:

               (1)  lists or other identification of customers or prospective

     customers of Company;

               (2)  lists or other identification of sources or prospective
     sources of Company's products or components thereof, its landlords and
     prospective landlords and its current and prospective alliance, marketing
     and media partners (and key individuals employed or engaged by such
     parties);

               (3)  all compilations of information, correspondence, designs,
     drawings, files, formulae, lists, machines, maps, methods, models, studies,
     surveys, scripts, screenplays, artwork, sketches, notes or other writings,
     plans, leases, records and reports;

               (4)  financial, sales and marketing data relating to Company or
     to the industry or other areas pertaining to Company's activities and
     contemplated activities (including, without limitation, leasing,
     manufacturing, transportation, distribution and sales costs and non-public
     pricing information);

               (5)  equipment, materials, designs, procedures, processes, and
     techniques used in, or related to, the development, manufacture, assembly,

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     fabrication or other production and quality control of Company's products,
     stores and services;

               (6)  Company's relations with its past, current and prospective
     customers, suppliers, landlords, alliance, marketing and media partners
     and the nature and type of products or services rendered to, received from
     or developed with such parties or prospective parties;

               (7)  Company's relations with its employees (including, without
     limitation, salaries, job classifications and skill levels); and

               (8)  any other information designated by Company to be
     confidential, secret and/or proprietary (including without limitation,
     information provided by customers, suppliers and alliance partners of
     Company).

Notwithstanding the foregoing, the term Confidential Information shall not
consist of any data or other information which has been made publicly available
or otherwise placed in the public domain other than by Employee in violation of
this Agreement.

          (c)  During the Employment Period, Employee will not copy, reproduce
or otherwise duplicate, record, abstract, summarize or otherwise use, any
papers, records, reports, studies, computer printouts, equipment, tools or other
property owned by Company except as expressly permitted by Company in writing or
required for the proper performance of his duties on behalf of Company.

     6.   Post-Termination Restrictions. Employee recognizes that (i) Company
has spent substantial money, time and effort over the years in developing and
solidifying its relationships with its customers, suppliers, landlords and
alliance, marketing and media partners and in developing its Confidential
Information; (ii) long-term customer, landlord, supplier and partner
relationships often can be difficult to develop and require a significant
investment of time, effort and expense; (iii) Company has paid its employees to,
among other things, develop and preserve business information, customer,
landlord, vendor and partner goodwill, customer, landlord, vendor and partner
loyalty and customer, landlord, vendor and partner contacts for and on behalf of
Company; and (iv) Company is hereby agreeing to employ and pay Employee based
upon Employee's assurances and promises not to divert goodwill of customers,
landlords, suppliers or partners of Company, either individually or on a
combined basis, or to put himself in a position following Employee's employment
with Company in which the confidentiality of Company's Confidential Information
might somehow be compromised. Accordingly, Employee agrees that during the
Employment Period and for the period of time set forth below following
termination of employment, provided termination is in accordance with the terms
of paragraph 4(b) or (c) or due to expiration of the Employment Period, Employee
will not, directly or indirectly (whether as owner, partner, consultant,
employee or otherwise):

          (a)  for three (3) years, engage in, assist or have an interest in, or
enter the employment of or act as an agent, advisor or consultant for, any
person or entity which is engaged

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in, or will be engaged in, the development, manufacture, supplying or sale of a
product, process, service or development which is competitive with a product,
process, service or development on which Employee worked or with respect to
which Employee has or had access to Confidential Information while at Company
("Restricted Activity"), and which is located within the United States or within
any country where the Company has established a retail presence either directly
or through a franchise arrangement; or

          (b)  for three (3) years, induce or attempt to induce any employee,
consultant, partner or advisor of Company to accept employment or an affiliation
with any entity engaged in a Restricted Activity;

provided, however, that following termination of his employment, Employee shall
be entitled to be an employee of an entity that engages in Restricted Activity
so long as: (i) the sale of stuffed plush toys is not a material business of the
entity; (ii) Employee has no direct or personal involvement in the sale of
stuffed plush toys ; and (iii) neither Employee, his relatives, nor any other
entities with which he is affiliated own more than 1% of the entity. As used in
this paragraph 6, "material business" shall mean that either (A) greater than
10% of annual revenues received by such entity were derived from the sale of
stuffed plush toys and related products, or (B) the annual revenues received or
projected to be received by such entity from the sale of stuffed plush toys and
related products exceeded $10 million, or (C) or the entity otherwise annually
derives or is projected to derive annual revenues in excess of $5 million from a
retail concept that is similar in any material regard to Company.

     7.   Acknowledgment Regarding Restrictions. Employee recognizes and agrees
that the restraints contained in Section 6 (both separately and in total),
including the geographic scope thereof in light of the Company's marketing
efforts, are reasonable and enforceable in view of Company's legitimate
interests in protecting its Confidential Information and customer goodwill and
the limited scope of the restrictions in Section 6.

     8.   Inventions.

          Any and all ideas, inventions, discoveries, patents, patent
applications, continuation-in-part patent applications, divisional patent
applications, technology, copyrights, derivative works, trademarks, service
marks, improvements, trade secrets and the like (collectively, "Inventions"),
which are developed, conceived, created, discovered, learned, produced and/or
otherwise generated by Employee, whether individually or otherwise, during the
time that Employee is employed by Company, whether or not during working hours,
that relate to (i) current and anticipated businesses and/or activities of
Company, (ii) the current and anticipated research or development of Company, or
(iii) any work performed by Employee for Company, shall be the sole and
exclusive property of Company, and Company shall own any and all right, title
and interest to such Inventions. Employee assigns, and agrees to assign to
Company whenever so requested by Company, any and all right, title and interest
in and to any such Invention, at Company's expense, and Employee agrees to
execute any and all applications, assignments or other instruments which Company
deems desirable or necessary to protect such interests, at Company's expense.

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          (b)  Employee acknowledges that as part of his work for the Company he
may be asked to create, or contribute to the creation of, computer programs,
documentation and other copyrightable works. Employee hereby agrees that any and
all computer programs, documentation and other copyrightable materials that he
has prepared or worked on for the Company, or is asked to prepare or work on by
the Company, shall be treated as and shall be a "work made for hire," for the
exclusive ownership and benefit of Company according to the copyright laws of
the United States, including, but not limited to, Sections 101 and 201 of Title
17 of the U.S. Code ("U.S.C.") as well as according to similar foreign laws.
Company shall have the exclusive right to register the copyrights in all such
works in its name as the owner and author of such works and shall have the
exclusive rights conveyed under 17 U.S.C. Sections 106 and 106A including, but
not limited to, the right to make all uses of the works in which attribution or
integrity rights may be implicated. Without in any way limiting the foregoing,
to the extent the works are not treated as works made for hire under any
applicable law, Employee hereby irrevocably assigns, transfers, and conveys to
Company and its successors and assigns any and all worldwide right, title, and
interest that Employee may now or in the future have in or to the works,
including, but not limited to, all ownership, U.S. and foreign copyrights, all
treaty, convention, statutory, and common law rights under the law of any U.S.
or foreign jurisdiction, the right to sue for past, present, and future
infringement, and moral, attribution, and integrity rights. Employee hereby
expressly and forever irrevocably waives any and all rights that he may have
arising under 17 U.S.C. Sections 106A, rights that may arise under any federal,
state, or foreign law that conveys rights that are similar in nature to those
conveyed under 17 U.S.C. Sections 106A, and any other type of moral right or
droit moral.

     9.   Company Property. Employee acknowledges that any and all notes,
records, sketches, computer diskettes, training materials and other documents
relating to Company obtained by or provided to Employee, or otherwise made,
produced or compiled during the Employment Period, regardless of the type of
medium in which they are preserved, are the sole and exclusive property of
Company and shall be surrendered to Company upon Employee's termination of
employment and on demand at any time by Company.

     10.  Non-Waiver of Rights. Either party's failure to enforce at any time
any of the provisions of this Agreement or to require at any time performance by
the other party of any of the provisions hereof shall in no way be construed to
be a waiver of such provisions or to affect either the validity of this
Agreement, or any part hereof, or the right of the non-breaching party
thereafter to enforce each and every provision in accordance with the terms of
this Agreement.

     11.  Company's Right to Injunctive Relief. In the event of a breach or
threatened breach of any of Employee's duties and obligations under the terms
and provisions of Sections 5, 6, or 8 hereof, Company shall be entitled, in
addition to any other legal or equitable remedies it may have in connection
therewith (including any right to damages that it may suffer), to temporary,
preliminary and permanent injunctive relief restraining such breach or
threatened breach. Employee hereby expressly acknowledges that the harm which
might result to Company's business as a result of any noncompliance by Employee
with any of the provisions of Sections 5, 6 or 8 would be largely irreparable.
Employee specifically agrees that if there is a question as to the
enforceability of any of the provisions of Sections 5, 6 or 8 hereof, Employee
will not engage in any conduct

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inconsistent with or contrary to such Sections until after the question has been
resolved by a final judgment of a court of competent jurisdiction.

     12.  Judicial Enforcement. If any provision of this Agreement is
adjudicated to be invalid or unenforceable under applicable law in any
jurisdiction, the validity or enforceability of the remaining provisions thereof
shall be unaffected as to such jurisdiction and such adjudication shall not
affect the validity or enforceability of such provisions in any other
jurisdiction. To the extent that any provision of this Agreement is adjudicated
to be invalid or unenforceable because it is overbroad, that provision shall not
be void but rather shall be limited only to the extent required by applicable
law and enforced as so limited. The parties expressly acknowledge and agree that
this Section is reasonable in view of the parties' respective interests.

     13.  Employee Representations. Employee represents that the execution and
delivery of the Agreement and Employee's employment with Company do not violate
any previous employment agreement or other contractual obligation of Employee.

     14.  Amendments. No modification, amendment or waiver of any of the
provisions of this Agreement shall be effective unless in writing specifically
referring hereto, and signed by the parties hereto. This Agreement supersedes
all prior agreements and understandings between Employee and Company to the
extent that any such agreements or understandings conflict with the terms of
this Agreement.

     15.  Assignments. This Agreement shall be freely assignable by Company to
and shall inure to the benefit of, and be binding upon, Company, its successors
and assigns and/or any other entity which shall succeed to the business
presently being conducted by Company. Being a contract for personal services,
neither this Agreement nor any rights hereunder shall be assigned by Employee.

     16.  Choice of Forum and Governing Law. In light of Company's substantial
contacts with the State of Missouri, the parties' interests in ensuring that
disputes regarding the interpretation, validity and enforceability of this
Agreement are resolved on a uniform basis, and Company's execution of, and the
making of, this Agreement in Missouri, the parties agree that: (i) any
litigation involving any noncompliance with or breach of the Agreement, or
regarding the interpretation, validity and/or enforceability of the Agreement,
shall be filed and conducted in the state or federal courts in St. Louis City or
County, Missouri; and (ii) the Agreement shall be interpreted in accordance with
and governed by the laws of the State of Missouri, without regard for any
conflict of law principles.

     17.  ARBITRATION. ANY CONTROVERSY OR CLAIM ARISING OUT OF, OR RELATING TO
THIS AGREEMENT, THE BREACH THEREOF, OR EMPLOYEE'S EMPLOYMENT BY COMPANY, SHALL,
AT COMPANY'S SOLE OPTION, BE SETTLED BY BINDING ARBITRATION IN THE COUNTY OF ST.
LOUIS IN ACCORDANCE WITH THE RULES THEN IN FORCE OF THE AMERICAN ARBITRATION
ASSOCIATION, AND JUDGMENT UPON THE AWARD RENDERED MAY BE ENTERED AND ENFORCED IN
ANY COURT HAVING JURISDICTION THEREOF. THE CONTROVERSIES OR CLAIMS SUBJECT TO
ARBITRATION AT COMPANY'S OPTION UNDER THIS AGREEMENT INCLUDE, WITHOUT
LIMITATION, THOSE ARISING UNDER TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, 42

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U.S.C. SECTION 1981, THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE AMERICANS
WITH DISABILITIES ACT, THE FAMILY AND MEDICAL LEAVE ACT, THE WORKER ADJUSTMENT
AND RETRAINING NOTIFICATION ACT, THE MISSOURI HUMAN RIGHTS ACT, LOCAL LAWS
GOVERNING EMPLOYMENT, AND THE STATUTORY AND/OR COMMON LAW OF CONTRACT AND TORT.
IN THE EVENT EMPLOYEE COMMENCES ANY ACTION IN COURT WHICH COMPANY HAS THE RIGHT
TO SUBMIT TO BINDING ARBITRATION, COMPANY SHALL HAVE SIXTY (60) DAYS FROM THE
DATE OF SERVICE OF A SUMMONS AND COMPLAINT UPON COMPANY TO DIRECT IN WRITING
THAT ALL OR ANY PART OF THE DISPUTE BE ARBITRATED. ANY REMEDY AVAILABLE IN ANY
COURT ACTION SHALL ALSO BE AVAILABLE IN ARBITRATION.

     18.  Headings. Section headings are provided in this Agreement for
convenience only and shall not be deemed to substantively alter the content of
such sections.

PLEASE NOTE: BY SIGNING THIS AGREEMENT, EMPLOYEE IS HEREBY CERTIFYING THAT
EMPLOYEE (A) HAS RECEIVED A COPY OF THIS AGREEMENT FOR REVIEW AND STUDY BEFORE
EXECUTING IT; (B) HAS READ THIS AGREEMENT CAREFULLY BEFORE SIGNING IT; (C) HAS
HAD SUFFICIENT OPPORTUNITY BEFORE SIGNING THE AGREEMENT TO ASK ANY QUESTIONS
EMPLOYEE HAS ABOUT THE AGREEMENT AND HAS RECEIVED SATISFACTORY ANSWERS TO ALL
SUCH QUESTIONS; AND (D) UNDERSTANDS EMPLOYEE'S RIGHTS AND OBLIGATIONS UNDER THE
AGREEMENT.

[Remainder of page intentionally left blank]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

     THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE
ENFORCED BY COMPANY.

                                        /s/ SCOTT SEAY
                                        ----------------------------------------
                                        Scott Seay

                                        Address:
                                                 -------------------------------

                                                 -------------------------------

                                        BUILD-A-BEAR WORKSHOP, INC.

                                        By:  /s/ MAXINE CLARK
                                            ------------------------------------
                                            Name: Maxine Clark
                                            Title: Chief Executive Bear

                                       11<PAGE>
                                                                    EXHIBIT 10.9

              EMPLOYMENT, CONFIDENTIALITY AND NONCOMPETE AGREEMENT

      This Employment, Confidentiality and Noncompete Agreement ("Agreement") is
made and entered into effective as of the 10th day of September, 2001, by and
between Build-A-Bear Workshop, Inc., a Delaware corporation ("Company"), and
Teresa Kroll ("Employee").

      WHEREAS, Company desires to employ and Employee desires to be employed as
the Chief Marketing Officer of Company.

      WHEREAS, Company is engaged in, among other things, the business of
production, marketing, promotion and distribution of stuffed animals, clothing,
accessories and similar items, including without limitation, the ownership,
management, franchising, leasing and development of retail stores in which the
basic operation is the selling of such items. The Company is headquartered and
its principal place of business are located in, and this Agreement is being
signed in, St. Louis, Missouri.

      WHEREAS, Company conducts business in selected locations throughout the
United States.

      WHEREAS, Company has expended a great deal of time, money and effort to
develop and maintain its proprietary Confidential Information (as defined
herein) which is material to Company and which, if misused or disclosed, could
be very harmful to Company's business.

      WHEREAS, the success of Company depends to a substantial extent upon the
protection of its Confidential Information and customer goodwill by all of its
employees.

      WHEREAS, Company compensates its employees to, among other things, develop
and preserve goodwill with its customers on Company's behalf and business
information for Company's ownership and use.

      WHEREAS, if Employee were to leave Company, Company, in all fairness,
would need certain protections in order to prevent competitors of Company from
gaining an unfair competitive advantage over Company or diverting goodwill from
Company, or to prevent Employee from misusing or misappropriating the
Confidential Information.

      NOW, THEREFORE, in consideration of the compensation and other benefits of
Employee's employment by Company and the recitals, mutual covenants and
agreements hereinafter set forth, Employee and Company agree as follows:

      1. Employment Services.

         (a) Employee is hereby employed by Company, and Employee hereby accepts
such employment, upon the terms and conditions hereinafter set forth. Employee
shall serve as Chief Marketing Officer, during the Employment Period, on a
full-time basis. Employee shall carry out such duties as are assigned to her by
Company's President and Chief Executive Officer.

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         (b) Employee agrees that throughout Employee's employment with Company,
Employee will (i) faithfully render such services as may be delegated to
Employee by Company, (ii) devote substantially all of Employee's entire business
time, good faith, best efforts, ability, skill and attention to Company's
business, and (iii) follow and act in accordance with all of the rules, policies
and procedures of Company, including but not limited to working hours, sales and
promotion policies, and specific Company rules. Company further agrees that it
shall not relocate its headquarters outside of the St. Louis metropolitan area
during the term of this Agreement or otherwise during the term of this Agreement
require Employee to relocate her residence outside of the St. Louis metropolitan
area.

         (c) "Company" means Build-A-Bear Workshop, Inc. or one of its
Subsidiaries, whichever is Employee's employer. The term "Subsidiary" means any
corporation, joint venture or other business organization in which Build-A-Bear
Workshop, Inc. now or hereafter, directly or indirectly, owns or controls more
than fifty percent (50%) interest.

      2. Term of Employment. The term of this Agreement shall commence on the
date first set forth above, and shall end on September 9, 2002, unless sooner
terminated as provided in Section 4 hereof (the "Initial Term"). Following the
Initial Term, this Agreement shall automatically renew for successive one-year
periods (each a "Renewal Period"; collectively, the Initial Term and each
Renewal Period, the "Employment Period"), unless sooner terminated as provided
in Section 4 hereof.

      3. Compensation.

         (a) Signing Bonus. Company shall pay Employee a one-time signing bonus
of Ten Thousand Dollars ($10,000) (the "Signing Bonus"), payable with the first
installment of Employee's base salary.

         (b) Base Salary. During the Employment Period, Company shall pay
Employee as compensation for her services an annual base salary of not less than
One Hundred Eighty-Five Thousand Dollars ($185,000), payable in accordance with
Company's usual practices. Employee's annual base salary rate shall be reviewed
by Company's Compensation Committee at least annually for increase following
each fiscal year so that Employee's salary will be commensurate for similarly
situated executives with firms similarly situated to Company; provided, however,
that if Employee's individualized performance targets (set for each fiscal year
by Employee and Employee's team leader) are achieved, Employee's annual base
salary rate shall not be subject to decrease at any time during the Employment
Period and shall be subject to annual increase by no less than the average
percentage increase given to all other Company executive employees for such
fiscal year (the "Average Increase"). Notwithstanding the foregoing, for the
fiscal year ended December 31, 2001, the Average Increase shall be pro-rated so
that Employee shall only be entitled to three-twelfths of her base salary
increase, if any.

         (c) Bonus. Should Company exceed its sales, profits and other
objectives as set forth on EXHIBIT 3(c) attached hereto for the fiscal year
beginning January 2, 2001 and ending

                                       2
<PAGE>

December 31, 2001, Employee shall receive a bonus for such fiscal year equal to
35% of Employee's actual annual Base Salary paid during such fiscal year, such
bonus to be payable in cash, stock or stock options, or combinations thereof, as
agreed to by the Board of Directors and Employee. Should Company exceed its
sales, profits and other objectives as agreed upon between Employee and Board of
Directors at the beginning of each calendar year for any fiscal year thereafter
during the Employment Period, Employee shall be entitled to receive a bonus for
such fiscal year equal to an amount agreed upon by Employee and the Board of
Directors, such bonus to be payable in cash, stock or stock options, or
combination thereof, as agreed to by the Board of Directors and Employee;
provided that in no event shall such bonus be less than 35% of Employee's actual
annual Base Salary paid during such fiscal year. In the event of termination of
this Agreement because of Employee's death or disability (as defined by
paragraph 4(b)), or pursuant to Employee's right to terminate this Agreement
under paragraph 4, the bonus criteria shall not change and any bonus shall be
pro-rated based on the number of full calendar weeks during the applicable
fiscal year during which Employee was employed hereunder.

         Such bonus, if any, shall be payable after Company's accountants have
determined the sales and profits and have issued their audit report with respect
thereto for the applicable fiscal year, which determination shall be binding on
the parties. Any such bonus shall be paid within one hundred twenty (120) days
after the end of each calendar year or thirty (30) days after the issuance of
the auditor's report, whichever is later, regardless of Employee's employment
status at the time payment is due. For the period after the fiscal year ending
December 31, 2001, Employee's bonus shall be based upon Company exceeding sales
and profit objectives as agreed upon between Employee and Board of Directors at
the beginning of each calendar year. The objectives and formula for determining
bonuses, once agreed upon, shall be put in writing and signed by Employee and
Board of Directors

         (d) Stock Options. Subject to approval by Company's Compensation
Committee, an option to purchase 20,000 shares of Company's common stock, par
value $.01 per share (the "Common Stock") at a purchase price per share equal to
the per share fair market value (as determined by the Compensation Committee) of
the Common Stock on the date such option is granted, will be granted to
Employee, pursuant to the terms set forth more particularly in the Option
Agreement (the "Option Agreement") used in connection with the Build-A-Bear
Workshop, Inc. 2000 Stock Option Plan (the "Plan"). Subject to the terms of the
Option Agreement and the Plan, it is intended that such option will vest in
equal increments of 4,000 shares each over a period of five (5) years from the
date of grant. It is also intended that such option will be granted pursuant to
the Plan, and will be an incentive stock option. Future options to purchase the
Common Stock may granted upon the recommendation of the Chief Executive Officer,
in her discretion, and approval of the Compensation Committee.

         (e) Relocation Expenses. Company shall reimburse Employee for the
reasonable cost of the following relocation expenses: (i) transportation of all
Employee's household goods via a national moving company from Employee's current
home in New Jersey to St. Louis, Missouri; (ii) real estate commission expense
up to seven percent (7%) on the sale price of Employee's current home in New
Jersey; (iii) an amount equal to one (1) point of the purchase price upon
closing of the purchase of Employee's new home in St. Louis, Missouri; (iv)
transportation, lodging and meal

                                       3
<PAGE>

expenses for a reasonable amount of househunting trips to St. Louis, Missouri
for Employee and Employee's spouse; (v) temporary housing for Employee and
Employee's spouse for a reasonable length of time until Employee can relocate to
a permanent home in St. Louis, Missouri; (vi) during the period of time, if any,
after Employee closes on a permanent home in St. Louis, Missouri but prior to
Employee selling her home in New Jersey, the lesser of the payments on the
permanent home in St. Louis or her home in New Jersey; and (vii) the amount of
income taxes payable by Employee on the items listed in this Section 3(e) which
are deemed taxable income (collectively, the "Relocation Expenses"). Employee
will provide written back-up for such Relocation Expenses as Company may
reasonably request.

         (f) Discounts. Employee and her immediate family will be entitled to a
20% discount for all merchandise purchased at Company's stores.

         (g) Vacation. After completing ninety (90) days of continuous service,
Employee shall be entitled to fifteen (15) days per calendar year of paid
vacation, and paid sick leave on the same basis as may from time to time apply
to other Company executive employees generally. Vacations will be scheduled with
the approval of Company's President and Chief Executive Officer, who may block
out certain periods of time during which vacations may not be taken, including
preceding Valentine's Day, preceding Easter, from November 1 through December
31, during Company inventory, and just prior to store openings. One-third of one
year's vacation (or any part of it) may be carried over to the next year;
provided that such carry over is used in the first calendar quarter of the next
year. All unused vacation shall be forfeited. No more than two weeks of vacation
can be taken at one time. After completing ninety (90) days of continuous
service, Employee shall also be entitled to one (1) day per calendar year of
paid vacation to be taken in the month of her birthday. After completing ninety
(90) days of continuous service, if Employee finds that the amount of vacation
and sick leave granted hereunder is inadequate to meet her needs, she may
request additional leave from Company's President and Chief Executive Officer.

         (h) Long-Term Disability. Employee shall qualify for all rights and
benefits for which Employee may be eligible under Company's group long-term
disability plan. In the event Company's group long-term disability plan is not
in place at the beginning of the Employment Period, Company shall reimburse
Employee for the reasonable cost of an individual long-term disability plan
procured by Employee until such time as the group long-term disability plan is
in place. In the event Company elects not to procure a group plan, Company shall
procure an individual long-term disability plan for Employee or continue
reimbursing Employee for the reasonable cost of her plan, as applicable.

         (i) Other. Employee shall be eligible for such other perquisites as may
from time to time be awarded to Employee by Company payable at such times and in
such amounts as Company, in its sole discretion, may determine. All such
compensation shall be subject to customary withholding taxes and other
employment taxes as required with respect thereto. Employee shall also qualify
for all rights and benefits for which Employee may be eligible under any benefit
plans including group life, medical, health, dental and/or disability insurance
or other benefits which are provided for employees generally at her then current
location of employment. To the extent Employee is eligible for such coverage,
Company shall reimburse Employee for the cost

                                       4
<PAGE>

of COBRA coverage during the period, if any, between the termination of
Employee's medical/health benefits at her previous employer and the beginning of
Employee's coverage under Company's medical/health benefit plans.

         4. Termination of Employment. Prior to the expiration of the Employment
Period, this Agreement and Employee's employment may be terminated by Company as
follows:

         (a) Upon Employee's death;

         (b) Upon thirty (30) day's prior written notice to Employee in the
event Employee, by reason of permanent physical or mental disability (which
shall be determined by a physician selected by Company or its insurers and
acceptable to Employee or Employee's legal representative (such agreement as to
acceptability not to be withheld unreasonably), shall be unable to perform the
essential functions of her position, with or without reasonable accommodation,
for three (3) consecutive months; provided, however, Employee shall not be
terminated due to permanent physical or mental disability unless or until said
disability also entitles Employee to benefits under such disability insurance
policy as is provided to Employee by Company.

         (c) For cause, which for the purposes of this Agreement shall mean: (i)
Employee's engagement in any conduct which, in Company's reasonable
determination, constitutes gross misconduct, or is illegal, unethical, improper
or which otherwise brings detrimental notoriety or material harm to Company;
(ii) gross negligence or willful misconduct; (iii) conviction of fraud or theft;
(iv) a material breach of a material provision of this Agreement by Employee, or
(v) failure of Employee to follow a written directive of the Chief Executive
Officer or the Board of Directors within thirty (30) days after receiving such
notice, provided that such directive is reasonable in scope or is otherwise
within the Chief Executive Officer's or the Board's reasonable business
judgment, and is reasonably within Employee's control.

         In addition, Employee's employment may be terminated by Employee in the
event of a material breach of a material provision of this Agreement by Company,
provided Company does not cure said breach within thirty (30) days after
Employee provides the Board of Directors with written notice of the breach.

    Upon termination of this Agreement, all rights and obligations of the
parties hereunder shall cease, except termination of employment pursuant to this
Section 4 or otherwise shall not terminate or otherwise affect the rights and
obligations of the parties pursuant to Sections 5 through 13 hereof; provided,
however, should Company terminate Employee's employment for any reason other
than matters set forth in Section 4(b) or 4(c) of this Agreement during the
period ending September 9, 2002, Company shall continue her base salary until
the earlier of September 9, 2002 or such time as Employee has obtained other
employment; and, provided, further, should Employee voluntarily resign or should
Company terminate Employee's employment pursuant to Section 4(c) of this
Agreement during the period ending September 9, 2002, Employee shall repay the
Signing Bonus in full and a pro-rata portion of the Relocation Expenses.
Employee shall accept these payments in full discharge of all obligations of any
kind which Company has to her except obligations, if any, to repurchase any
capital stock of Company owned by Employee.

                                       5

<PAGE>

      5.   Confidential Information.

         (a) Employee agrees to keep secret and confidential, and not to use or
disclose to any third parties, except as directly required for Employee to
perform Employee's employment responsibilities for Company, any of Company's
proprietary Confidential Information.

         (b) Employee acknowledges and confirms that certain data and other
information (whether in human or machine readable form) that comes into her
possession or knowledge (whether before or after the date of this Agreement) and
which was obtained from Company, or obtained by Employee for or on behalf of
Company, and which is identified herein (the "Confidential Information") is the
secret, confidential property of Company. This Confidential Information
includes, but is not limited to:

                  (1) lists or other identification of customers or prospective
            customers of Company (and key individuals employed or engaged by
            such parties);

                  (2) lists or other identification of sources or prospective
            sources of Company's products or components thereof (and key
            individuals employed or engaged by such parties);

                  (3) all compilations of information, correspondence, designs,
            drawings, files, formulae, lists, machines, maps, methods, models,
            notes or other writings, plans, records and reports;

                  (4) financial, sales and marketing data relating to Company or
            to the industry or other areas pertaining to Company's activities
            and contemplated activities (including, without limitation,
            manufacturing, transportation, distribution and sales costs and
            non-public pricing information);

                  (5) equipment, materials, procedures, processes, and
            techniques used in, or related to, the development, manufacture,
            assembly, fabrication or other production and quality control of
            Company's products and services;

                  (6) Company's relations with its customers, prospective
            customers, suppliers and prospective suppliers and the nature and
            type of products or services rendered to such customers (or proposed
            to be rendered to prospective customers);

                  (7) Company's relations with its employees (including, without
            limitation, salaries, job classifications and skill levels); and

                  (8) any other information designated by Company to be
            confidential, secret and/or proprietary (including without
            limitation, information provided by customers or suppliers of
            Company).

                                       6

<PAGE>

Notwithstanding the foregoing, the term Confidential Information shall not
consist of any data or other information which has been made publicly available
or otherwise placed in the public domain other than by Employee in violation of
this Agreement.

         (c) During the Employment Period, Employee will not copy, reproduce or
otherwise duplicate, record, abstract, summarize or otherwise use, any papers,
records, reports, studies, computer printouts, equipment, tools or other
property owned by Company except as expressly permitted by Company in writing or
required for the proper performance of her duties on behalf of Company.

      6. Post-Termination Restrictions. Employee recognizes that (i) Company has
spent substantial money, time and effort over the years in developing and
solidifying its relationships with its customers and suppliers and in developing
its Confidential Information; (ii) long-term customer relationships often can be
difficult to develop and require a significant investment of time, effort and
expense; (iii) Company has paid its employees to, among other things, develop
and preserve business information, customer goodwill, customer loyalty and
customer contacts for and on behalf of Company; and (iv) Company is hereby
agreeing to employ and pay Employee based upon Employee's assurances and
promises not to divert goodwill of customers or suppliers of Company, either
individually or on a combined basis, or to put herself in a position following
Employee's employment with Company in which the confidentiality of Company's
Confidential Information might somehow be compromised. Accordingly, Employee
agrees that during the Employment Period and for the period of time set forth
below following termination of employment, provided termination is in accordance
with the terms of paragraph 4(b) or (c) or due to expiration of the Employment
Period, Employee will not, directly or indirectly (whether as owner, partner,
consultant, employee or otherwise):

         (a) for three (3) years, engage in, assist or have an interest in, or
enter the employment of or act as an agent, advisor or consultant for, any
person or entity which is engaged in, or will be engaged in, the development,
manufacture, supplying or sale of a product, process, service or development
which is competitive with a product, process, service or development on which
Employee worked or with respect to which Employee has or had access to
Confidential Information while at Company ("Restricted Activity"), and which is
located within 100 miles of any Company retail store;

         (b) for three (3) years, solicit, call on or provide any Restricted
Activity to any customer or active prospective customer of Company which was a
customer or supplier of Company at any time during the most recent twelve (12)
months of Employee's employment by Company, or cause or attempt to cause such a
person to divert, terminate, limit, modify or fail to enter into any existing or
potential relationship with Company; or

         (c) for three (3) years, induce or attempt to induce any employee,
consultant or advisor of Company to accept employment or an affiliation
involving Restricted Activity;

                                       7

<PAGE>

provided, however, that following termination of her employment, Employee shall
be entitled to be an employee of an entity that engages in Restricted Activity
so long as: (i) the sale of stuffed animals is not a principal business of the
entity; (ii) Employee has no direct or personal involvement in the sale of
stuffed animals; and (iii) neither Employee, her relatives, nor any other
entities with which she is affiliated own more than 1% of the entity. As used in
this paragraph 6, "principal business" shall mean that greater than 10% of
revenues received during the twelve (12) months preceding a dispute under this
paragraph 6 were derived from the sale of stuffed animals and related products,
or otherwise derives revenues from a retail concept that is similar in any
material regard to Company.

      7. Acknowledgment Regarding Restrictions. Employee recognizes and agrees
that the restraints contained in Section 6 (both separately and in total) are
reasonable and enforceable in view of Company's legitimate interests in
protecting its Confidential Information and customer goodwill and the limited
scope of the restrictions in Section 6.

      8.   Inventions.

      Any and all ideas, inventions, discoveries, patents, patent applications,
continuation-in-part patent applications, divisional patent applications,
technology, copyrights, derivative works, trademarks, service marks,
improvements, trade secrets and the like (collectively, "Inventions"), which are
developed, conceived, created, discovered, learned, produced and/or otherwise
generated by Employee, whether individually or otherwise, during the time that
Employee is employed by Company, whether or not during working hours, that
relate to (i) current and anticipated businesses and/or activities of Company,
(ii) the current and anticipated research or development of Company, or (iii)
any work performed by Employee for Company, shall be the sole and exclusive
property of Company, and Company shall own any and all right, title and interest
to such Inventions. Employee assigns, and agrees to assign to Company whenever
so requested by Company, any and all right, title and interest in and to any
such Invention, at Company's expense, and Employee agrees to execute any and all
applications, assignments or other instruments which Company deems desirable or
necessary to protect such interests, at Company's expense.

      9. Company Property. Employee acknowledges that any and all notes,
records, sketches, computer diskettes, training materials and other documents
relating to Company obtained by or provided to Employee, or otherwise made,
produced or compiled during the Employment Period, regardless of the type of
medium in which they are preserved, are the sole and exclusive property of
Company and shall be surrendered to Company upon Employee's termination of
employment and on demand at any time by Company.

      10. Non-Waiver of Rights. Either party's failure to enforce at any time
any of the provisions of this Agreement or to require at any time performance by
the other party of any of the provisions hereof shall in no way be construed to
be a waiver of such provisions or to affect either the validity of this
Agreement, or any part hereof, or the right of the non-breaching party
thereafter to enforce each and every provision in accordance with the terms of
this Agreement.

                                       8

<PAGE>

      11. Company's Right to Injunctive Relief. In the event of a breach or
threatened breach of any of Employee's duties and obligations under the terms
and provisions of Sections 5, 6, or 8 hereof, Company shall be entitled, in
addition to any other legal or equitable remedies it may have in connection
therewith (including any right to damages that it may suffer), to temporary,
preliminary and permanent injunctive relief restraining such breach or
threatened breach. Employee hereby expressly acknowledges that the harm which
might result to Company's business as a result of any noncompliance by Employee
with any of the provisions of Sections 5, 6 or 8 would be largely irreparable.
Employee specifically agrees that if there is a question as to the
enforceability of any of the provisions of Sections 5, 6 or 8 hereof, Employee
will not engage in any conduct inconsistent with or contrary to such Sections
until after the question has been resolved by a final judgment of a court of
competent jurisdiction.

      12. Judicial Enforcement. If any provision of this Agreement is
adjudicated to be invalid or unenforceable under applicable law in any
jurisdiction, the validity or enforceability of the remaining provisions thereof
shall be unaffected as to such jurisdiction and such adjudication shall not
affect the validity or enforceability of such provisions in any other
jurisdiction. To the extent that any provision of this Agreement is adjudicated
to be invalid or unenforceable because it is overbroad, that provision shall not
be void but rather shall be limited only to the extent required by applicable
law and enforced as so limited. The parties expressly acknowledge and agree that
this Section is reasonable in view of the parties' respective interests.

      13. Employee Representations. Employee represents that the execution and
delivery of the Agreement and Employee's employment with Company do not violate
any previous employment agreement or other contractual obligation of Employee.

      14. Amendments. No modification, amendment or waiver of any of the
provisions of this Agreement shall be effective unless in writing specifically
referring hereto, and signed by the parties hereto. This Agreement supersedes
all prior agreements and understandings between Employee and Company to the
extent that any such agreements or understandings conflict with the terms of
this Agreement.

      15. Assignments. This Agreement shall be freely assignable by Company to
and shall inure to the benefit of, and be binding upon, Company, its successors
and assigns and/or any other entity which shall succeed to the business
presently being conducted by Company. Being a contract for personal services,
neither this Agreement nor any rights hereunder shall be assigned by Employee.

      16. Choice of Forum and Governing Law. In light of Company's substantial
contacts with the State of Missouri, the parties' interests in ensuring that
disputes regarding the interpretation, validity and enforceability of this
Agreement are resolved on a uniform basis, and Company's execution of, and the
making of, this Agreement in Missouri, the parties agree that: (i) any
litigation involving any noncompliance with or breach of the Agreement, or
regarding the interpretation, validity and/or enforceability of the Agreement,
shall be filed and conducted in the state or federal courts in St. Louis City or
County, Missouri; and (ii) the Agreement shall be

                                       9
<PAGE>

interpreted in accordance with and governed by the laws of the State of
Missouri, without regard for any conflict of law principles.

      17. ARBITRATION. ANY CONTROVERSY OR CLAIM ARISING OUT OF, OR RELATING TO
THIS AGREEMENT, THE BREACH THEREOF, OR EMPLOYEE'S EMPLOYMENT BY COMPANY, SHALL,
AT COMPANY'S SOLE OPTION, BE SETTLED BY BINDING ARBITRATION IN THE COUNTY OF ST.
LOUIS IN ACCORDANCE WITH THE RULES THEN IN FORCE OF THE AMERICAN ARBITRATION
ASSOCIATION, AND JUDGMENT UPON THE AWARD RENDERED MAY BE ENTERED AND ENFORCED IN
ANY COURT HAVING JURISDICTION THEREOF. THE CONTROVERSIES OR CLAIMS SUBJECT TO
ARBITRATION AT COMPANY'S OPTION UNDER THIS AGREEMENT INCLUDE, WITHOUT
LIMITATION, THOSE ARISING UNDER TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, 42
U.S.C. SECTION 1981, THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE AMERICANS
WITH DISABILITIES ACT, THE FAMILY AND MEDICAL LEAVE ACT, THE WORKER ADJUSTMENT
AND RETRAINING NOTIFICATION ACT, THE MISSOURI HUMAN RIGHTS ACT, LOCAL LAWS
GOVERNING EMPLOYMENT, AND THE STATUTORY AND/OR COMMON LAW OF CONTRACT AND TORT.
IN THE EVENT EMPLOYEE COMMENCES ANY ACTION IN COURT WHICH COMPANY HAS THE RIGHT
TO SUBMIT TO BINDING ARBITRATION, COMPANY SHALL HAVE SIXTY (60) DAYS FROM THE
DATE OF SERVE OF A SUMMONS AND COMPLAINT UPON COMPANY TO DIRECT IN WRITING THAT
ALL OR ANY PART OF THE DISPUTE BE ARBITRATED. ANY REMEDY AVAILABLE IN ANY COURT
ACTION SHALL ALSO BE AVAILABLE IN ARBITRATION.

      18. Headings. Section headings are provided in this Agreement for
convenience only and shall not be deemed to substantively alter the content of
such sections.

                            [SIGNATURE PAGE FOLLOWS]

                                       10
<PAGE>

PLEASE NOTE: BY SIGNING THIS AGREEMENT, EMPLOYEE IS HEREBY CERTIFYING THAT
EMPLOYEE (A) HAS RECEIVED A COPY OF THIS AGREEMENT FOR REVIEW AND STUDY BEFORE
EXECUTING IT; (B) HAS READ THIS AGREEMENT CAREFULLY BEFORE SIGNING IT; (C) HAS
HAD SUFFICIENT OPPORTUNITY BEFORE SIGNING THE AGREEMENT TO ASK ANY QUESTIONS
EMPLOYEE HAS ABOUT THE AGREEMENT AND HAS RECEIVED SATISFACTORY ANSWERS TO ALL
SUCH QUESTIONS; AND (D) UNDERSTANDS EMPLOYEE'S RIGHTS AND OBLIGATIONS UNDER THE
AGREEMENT.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

      THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE
ENFORCED BY COMPANY.

                                     /s/ Teresa Kroll
                                 -----------------------------------------
                                 Teresa Kroll

                                 Address:     #4 Ivy Lane
                                              Manalapan, New Jersey  07726

                                 BUILD-A-BEAR WORKSHOP, INC.

                                 By: /s/ Maxine Clark
                                    --------------------------------------
                                 Name: Maxine Clark
                                 Title: President

                                       11

<PAGE>

                                                                    EXHIBIT 3(c)

The goals and objectives for Employee shall be mutually agreed upon by Employee
and the Compensation Committee at the first Compensation Committee meeting after
the date of this Agreement.

                                       12

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