Document:

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                                                                 Exhibit 10.8

                        GALYAN'S TRADING COMPANY, INC.

                                    FORM OF

                       1999 STOCK SUBSCRIPTION AGREEMENT

          THIS STOCK SUBSCRIPTION AGREEMENT (this "Agreement") is made and
                                                   ---------
entered into as of _________, by and between Galyan's Trading Company, Inc., an
Indiana corporation (the "Company"), and __________________ ("Purchaser").
                          -------                             ---------

                                R E C I T A L S
                                - - - - - - - -

          A.  The Company now desires to sell to Purchaser, who is an employee
of the Company, and Purchaser desires to purchase from the Company, Shares (as
hereinafter defined), subject to the terms and conditions set forth in this
Agreement. The date on which such sale and purchase occur shall be referred to
herein as the "Closing Date."

          B.  In order to induce the Company to sell the Shares to the
Purchaser, Purchaser agrees to hold such shares subject to the restrictions and
interests created by this Agreement.

                              A G R E E M E N T:
                              - - - - - - - - -

          NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual covenants and conditions contained herein, the parties agree as follows:

          1.  Sale and Purchase of Shares. The Company hereby agrees to sell to
              ---------------------------
Purchaser, subject to the conditions and restrictions contained in this
Agreement, and Purchaser hereby agrees to purchase from the Company,
________shares of Class A Common Stock without par value of the Company
(individually, a "Share," and collectively, the "Shares" or the "Common Stock"),
                  -----                                          ------------
at a price of $_________ per Share, for an aggregate purchase price of
__________ (the "Purchase Price"). The Purchase Price shall be payable by
                 --------------
delivery of (a) cash or Purchaser's check in the amount of _________, and (b) a
secured promissory note of Purchaser issued to the Company for ____________ due
five years from the effective date hereof (the "Note"). Payment of all amounts
                                                ----
owed under the Note and compliance by Purchaser with the terms and conditions
of this Agreement and the Pledge Agreement (as hereinafter defined) shall be
secured by a pledge of the Shares, in conjunction with which Purchaser shall
execute a Stock Pledge Agreement dated as of the date hereof (the "Pledge
                                                                   ------
Agreement"). Purchaser shall deliver the cash or check, the Note, and the Pledge
---------
Agreement to the Company prior to the Closing Date, each dated as of the Closing
Date. In connection with the purchase of Shares hereunder, Purchaser
acknowledges that he or she has reviewed the Disclosure Statement regarding
Section 83(b) of the Internal Revenue Code of 1986, as amended.

          2.  Restrictions on Transfer.
              ------------------------

              (a)  Compliance with Securities Laws. Notwithstanding anything
                   -------------------------------
contained in this Agreement, Purchaser may not sell, transfer, assign, pledge,
hypothecate or

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otherwise dispose of (collectively, "Transfer"), or enter into any swap,
                                     --------
participation or other arrangement that transfers to another person, in whole or
in part, any of the economic consequences of ownership with respect to (a "Swap
                                                                           ----
Transaction"), any of the Shares, or any right, title or interest therein,
-----------
except in compliance with the Securities Act of 1933, as amended (the
"Securities Act"), applicable state securities laws and this Agreement. Any
---------------
purported Transfer or Transfers (including involuntary Transfers initiated by
operation of legal process) or Swap Transactions with respect to any of the
Shares or any right, title or interest therein, except in strict compliance with
the terms and conditions of this Agreement, shall be null and void.

              (b)  Opinion of Counsel.  Purchaser agrees that it will not
                   ------------------
Transfer any Shares (other than in a Public Market Sale (as hereinafter
defined)) prior to delivery to the Company of an opinion of counsel in form and
substance reasonably satisfactory to the Company with respect to compliance with
the Securities Act.

              (c)  Transfers by Purchaser.
                  ----------------------

                      (i) Subject to and upon full compliance with Section 6 of
     the Pledge Agreement, Purchaser may, at any time or times, Transfer any or
     all of the Shares: (a) inter vivos to Purchaser's spouse or issue, a trust
     for their benefit, or pursuant to any will or testamentary trust; or (b)
     upon Purchaser's death, to any person in accordance with the laws of
     descent and/or testamentary distribution (such persons described in clauses
     (a) and (b) hereof are collectively referred to herein as "Permitted
     Transferees"). Notwithstanding the foregoing in this Section 2(c)(i),
     Shares shall not be Transferred pursuant to this Section 2(c)(i) until the
     Permitted Transferee executes a valid undertaking, in form and substance
     reasonably satisfactory to the Company, to the effect that the Permitted
     Transferee and the Shares so Transferred shall thereafter remain subject to
     all of the provisions of this Agreement and the Pledge Agreement, as though
     the Permitted Transferee were a party to this Agreement and the Pledge
     Agreement, bound in every respect in the same way as Purchaser. Transfers
     made in accordance with this Section 2(c)(i) shall not be subject to the
     provisions of Section 3 of this Agreement.

                      (ii)   Prior to the date that is five (5) years from the
     date hereof (the "Permitted Transfer Date"), Purchaser shall not Transfer
                       -----------------------
     any of his Shares or enter into any Swap Transaction with respect to any of
     his Shares, other than a Transfer (i) to the Company, (ii) pursuant to and
     in conformity with Section 2(c)(i) hereof, (iii) pursuant to and in
     conformity with Section 5 or 6 hereof, or (iv) in a Public Market Sale. The
     term "Public Market Sale" means any sale of Common Stock after the Initial
     Public Offering which is made pursuant to Rule 144 promulgated under the
     Securities Act or which is permitted by Rule 701 promulgated under the
     Securities Act or which is made pursuant to a registration statement filed
     with, and declared effective by, the Securities and Exchange Commission.

                      (iii)  From and after the Permitted Transfer Date,
Purchaser may Transfer all or any portion of his Shares, provided that (x) the
transferee executes

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              a valid undertaking, in form and substance reasonably satisfactory
              to the Company, to the effect that such transferee and the Shares
              so Transferred shall thereafter remain subject to the provisions
              of Section 3, 4 and 5 of this Agreement and (y) such Transfer is
              subject to compliance with Section 3 hereof.

              3.   Right of First Refusal.
                   ----------------------

                   (a)  Sales, Notice. Prior to any intended Transfer pursuant
                        -------------
to Section 2(c)(iii) hereof, Purchaser shall first give at least thirty (30)
days' advance written notice (the "Notice") to the Company specifying (i)
                                   ------
Purchaser's bona fide intention to sell such Shares; (ii) the name(s) and
address(es) of the proposed transferee(s); (iii) the number of Shares Purchaser
proposes to Transfer (individually, an "Offered Share," and collectively, the
                                        -------------
"Offered Shares"); (iv) the price for which Purchaser proposes to Transfer each
 --------------
Offered Share (the "Proposed Purchase Price"); (v) such evidence as the Company
                    -----------------------
may reasonably request to demonstrate the ability of the proposed transferee(s)
to pay the Proposed Purchase Price; and (vi) all other material terms and
conditions of the proposed transfer.

                   (b)  Election by the Company. Within twenty (20) days after
                        -----------------------
receipt of the Notice, the Company may elect to purchase any or all of the
Offered Shares at the price and on the terms and conditions set forth in the
Notice by delivery of written notice of such election to Purchaser, specifying a
day, which shall not be more than twenty (20) days after such notice is
delivered, on or before which Purchaser shall surrender (if Purchaser has not
already done so) the certificate or certificates representing the Offered Shares
with stock powers duly endorsed in blank at the administrative office of the
Company. Within twenty (20) days after delivery of such notice to Purchaser, the
Company shall deliver to Purchaser a check, payable to Purchaser or to such
person as Purchaser shall request, in the amount equal to the product of the
Proposed Purchase Price multiplied by the number of Offered Shares (the "First
                                                                         -----
Refusal Price") in exchange for the Offered Shares. If Purchaser fails to so
-------------
surrender such certificate or certificates on or before such date, from and
after such date the Offered Shares shall be deemed to be no longer outstanding,
and Purchaser shall cease to be a Shareholder with respect to such Shares and
shall have no rights with respect thereto except only the right to receive
payment of the First Refusal Price, without interest, upon surrender of the
certificate or certificates therefor with stock powers duly endorsed in blank.
Notwithstanding the foregoing, in the event any principal, interest, fees,
expenses or other amounts due on or in connection with the Note (the
"Outstanding Amount") are owed to the Company by Purchaser, the First Refusal
 ------------------
Price shall be reduced (to an amount not less than zero) by such Outstanding
Amount, which reduction shall be specified in reasonable detail in the Company's
written notice of election to purchase the Offered Shares. If the Company does
not elect to purchase all of the Offered Shares, Purchaser shall be entitled to
Transfer the balance of the Offered Shares, subject to Section 6 of the Pledge
Agreement, to the transferee(s) named in the Notice at the Proposed Purchase
Price, or at a higher price, and on the terms and conditions set forth in the
Notice; provided, however, that such Transfer must be consummated within ninety
(90) days after the date of the Notice and any proposed Transfer after such
ninety (90) day period may be made only by again complying with the procedures
set forth in this Section 3.

                   (c)  Termination on Initial Public Offering. This right of
                        --------------------------------------
first refusal shall terminate upon an underwritten public offering of Common
Stock by the Company registered

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under the Securities Act resulting in gross proceeds to the Company and selling
shareholders, if applicable, in excess of $50 million and the sale of newly
issued Common Stock representing at least fifteen percent (15%) of the
outstanding Common Stock of the Company (an "Initial Public Offering").
                                             -----------------------

              4.  Repurchase Option Upon Termination.
                  ----------------------------------

                  (a)  Repurchase Option. Subject to the terms and conditions of
                       -----------------
this Section 4, in the event that Purchaser's employment or other relationship
with the Company terminates for any reason (including, without limitation, by
reason of Purchaser's death, disability, retirement, voluntary resignation or
dismissal by the Company, with or without cause), the Company shall have the
option (the "Repurchase Option") to purchase from Purchaser all or any portion
             -----------------
of the Shares acquired by Purchaser under this Agreement for a period of six (6)
months after the effective date of such termination (the effective date of
termination is hereinafter referred to as the "Termination Date") (the
                                               ----------------
"Repurchase Period").
 -----------------

                  (b)  Repurchase Price. The purchase price (the "Repurchase
                       ----------------                           ----------
Price") for each Share to be purchased pursuant to the Repurchase Option shall
-----
equal (a) the greater of Purchase Price and Book Value (as defined herein) if
the Termination Date occurs within the two (2) year period commencing on the
date hereof and (b) the greater of the Purchase Price and the Fair Market Value
(as defined herein) thereof thereafter. The "Book Value" of a Share shall equal
$10.00 per Share plus the net income or minus the net loss per share from
September 1, 1999 to the end of the fiscal quarter immediately preceding the
Termination Date, as determined by the Board of Directors of the Company (the
"Board"), acting in good faith and based upon the books and records of the
 -----
Company prepared in accordance with generally accepted accounting principles
consistently applied, which determination shall be final and binding. The "Fair
Market Value" of a Share shall be the fair market value of a Share as of the
Termination Date, as reasonably determined by the Board in good faith.

                  (c)  Adjustments to Repurchase Price. The Repurchase Price for
                       -------------------------------
any Shares to be purchased pursuant to the Repurchase Option shall be increased
or decreased appropriately to reflect any distribution of stock or other
securities of the Company or any successor or assign of the Company which is
made in respect of, in exchange for or in substitution of the Shares by reason
of any split, reverse split, combination, recapitalization, reclassification,
merger, consolidation or otherwise.

                  (d)  Repurchase Notice. The Repurchase Option shall be
                       -----------------
exercised by the Company by delivery to Purchaser of a written notice (the
"Repurchase Notice") (a) setting forth the Company's intent to exercise the
 -----------------
Repurchase Option and containing the total number of Shares to be sold to the
Company pursuant to the Repurchase Option, (b) mailed, via postage pre-paid
registered or certified United States mail, to the attention of or otherwise
actually delivered to the Purchaser at the Purchaser's most recent address
reflected in the Company's payroll records (or to such other representative of
the Purchaser or such other address as the Purchaser may duly notice in writing
to the Company) and (c) delivered to the Purchaser no later than the last day of
the Repurchase Period.

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                 (e)  Closing.  The closing of any repurchase under this Section
                      -------
4 shall be at a date to be specified by the Company, such date to be no later
than the later to occur of (i) 30 days after the date of the Repurchase Notice
and (ii) the last day of the Repurchase Period. The Repurchase Price shall be
paid at the closing in the form of a check payable to the Purchaser, in the
amount equal to the Repurchase Price, against surrender by the Purchaser of a
stock certificate or certificates evidencing the Shares with stock powers duly
endorsed in blank. If Purchaser fails to so surrender such certificate or
certificates on or before such date, from and after such date the Shares which
the Company elected to repurchase shall be deemed to be no longer outstanding,
and Purchaser shall cease to be a stockholder with respect to such Shares and
shall have no rights with respect thereto except only the right to receive
payment of the Repurchase Price, without interest, upon surrender of the
certificate or certificates therefor with duly endorsed stock powers.
Notwithstanding the foregoing in this Section 4, if any Outstanding Amount is
owed to the Company by Purchaser, the Repurchase Price for the number of the
Shares to be repurchased hereunder shall be reduced by such Outstanding Amount,
which reduction shall be specified in reasonable detail in the Company's written
notice of election to exercise the Repurchase Option. If the Outstanding Amount
exceeds the Repurchase Price for the number of the Shares to be repurchased,
Purchaser shall remain obligated and liable to the Company for the unpaid
balance thereof.

                 (f)  Termination of Initial Public Offering. This Repurchase
                      --------------------------------------
Option shall terminate upon an Initial Public Offering.

            5.   Obligation to Sell Securities.
                 -----------------------------

                 (a)  Notice of Sale. If FS Equity Partners IV, L.P., a Delaware
                      --------------
limited partnership, ("FS Equity") finds a third-party buyer (the "Third Party
                       ---------                                   -----------
Buyer") for all shares of Common Stock held by it (whether such sale is by way
-----
of purchase, exchange, merger or other form of transaction), upon the request of
FS Equity, Purchaser shall sell all of Purchaser's Shares for the same per share
consideration (which may be less than the Purchase Price per share paid by
Purchaser), and otherwise pursuant to the terms and conditions applicable to FS
Equity for the sale of its shares of Common Stock. FS Equity shall send
Purchaser a written notice ("Sale Notice") of the exercise of its rights under
                             -----------
this Section 5(a).

                 (b)  Closing of Sale.  Purchaser agrees to timely take such
                      ---------------
actions as FS Equity may reasonably request in connection with the approval of
the consummation of such sale, transfer, reorganization, exchange, merger,
combination or other form of transaction, including voting as a stockholder to
approve any such sale, transfer, reorganization, exchange, merger, combination
or other form of transaction and waiving any appraisal rights that Purchaser may
have in connection therewith. Without limiting the generality of the foregoing,
within 30 days of Purchaser's receipt of the Sale Notice, Purchaser shall
deliver to FS Equity, certificates representing Purchaser's Shares to be sold
pursuant to this Section 5 together with stock powers duly endorsed in blank. In
the event that Purchaser fails to deliver such certificates, Company shall cause
the books and records of Company to show that Purchaser's Shares are bound by
the provisions of this Section 5 and that such Shares shall be transferred only
to the Third Party Buyer upon surrender for transfer by Purchaser. Purchaser
hereby grants to FS Equity an irrevocable proxy to vote Purchaser's Shares and
to exercise all the rights, powers, privileges and remedies to which a holder of
such Shares would be entitled, which proxy shall be effective,

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automatically and without the necessity of any action (including any transfer of
any such Shares on the records books of the Company) by any other person, upon
the failure of Purchaser to deliver any of his Shares pursuant to this Section 5
and which proxy shall terminate only upon consummation of the sale of such
Shares or 120 days after the Sale Notice is given (or such longer period as may
be necessary to complete any applicable regulatory approval process in
connection with such sale) if FS Equity has not completed the sale of such
Shares in accordance herewith.

                 (c)  Termination Upon Initial Public Offering. The rights of FS
                      ----------------------------------------
Equity under this Section 5 shall terminate upon an Initial Public Offering.

           6.    Tag Along Rights. If FS Equity finds a third-party buyer (other
                 ----------------
than a buyer that is an investment fund or partnership affiliated with FS Equity
or a general or limited partner of FS Equity (each a "FS Permitted
                                                      ------------
Transferee")), for all or part of the shares of Common Stock held by FS Equity
----------
(whether such sale is by way of purchase, exchange, merger or other form of
transaction), the Purchaser shall have the right (a "Tag Along Right") to sell,
                                                     ---------------
on the terms set forth in a written notice (the "Offering Notice") delivered by
                                                 ---------------
FS Equity to the Purchaser describing the terms of the proposed sale (including
the minimum sale price to the shares of Common Stock that FS Equity plans to
sell), that amount of the Shares Purchaser then owns which constitutes the same
percentage of his Shares as the percentage of Common Stock sold by FS Equity
after giving effect to the exercise of the Tag Along Right and all other tag
along rights. Each such right shall be exercisable by delivering written notice
to FS Equity within 15 days after receipt of the Offering Notice. Failure to
exercise such right within such 15-day period shall be regarded as a waiver of
such rights. FS Equity shall have 180 days from the expiration of such 15-day
period to consummate the proposed Transfer at a price no greater than the price
set forth in the Offering Notice and on terms and conditions no more favorable
to FS Equity than those stated in the Offering Notice. Any Shares that continue
to be held by FS Equity after such 180-day period shall again be subject to the
provisions of this Section 6. The obligations of FS Equity under this Section 6
shall terminate upon an Initial Public Offering.

           7.   Security for Performance. The Company and Purchaser hereby
                ------------------------
acknowledge (a) that Purchaser has agreed to pledge the Shares to secure the
payment of all obligations existing under the Note whether for principal,
interest, fees, expenses or otherwise and/or to ensure Purchaser's compliance
with the terms and conditions of this Agreement and the Pledge Agreement and (b)
that in connection with such pledge, Purchaser shall enter into the Pledge
Agreement as of the Closing Date requiring that the certificates evidencing the
Shares (the "Certificates") be held by the Company as security for the payment
             ------------
of all obligations existing under the Note, whether for principal, interest,
fees, expenses or otherwise, and for Purchaser's compliance with the terms and
conditions of this Agreement and the Pledge Agreement. Subject to compliance
with the terms and conditions of this Agreement and of the Pledge Agreement,
Purchaser shall exercise all rights and privileges of the registered holder of
the Shares held by the Company pursuant to the Pledge Agreement and shall be
entitled to receive any dividend or other distribution thereon.

           8.   Board of Directors.
                ------------------

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                (a)  Composition of Board. Subject to Section 8(d), The Limited,
                     ---------------------
Inc., a Delaware corporation ("The Limited") shall be entitled, but not
                               -----------
required, to nominate two members (the "Limited Nominees") of the Board. Subject
                                        ----------------
to Section 8(d), FS Equity shall be entitled, but not required, to nominate four
members (the "FS Nominees") of the Board. The seventh member of the Board shall
              -----------
at all times be the then current Chief Executive Officer of the Company. The
eighth member of the Board shall at all times be the chairman of the Board and
the Purchaser agrees that, at Closing, the chairman of the Board shall be Norman
Matthews.

                (b)  Voting of Shares.
                     ----------------

                        (i)  Purchaser agrees to vote or cause to be voted all
           of his Shares at any regular or special meeting of the stockholders
           of the Company called for the purpose of filling positions on the
           Board, or in any written consent executed in lieu of such a meeting
           of stockholders, and agrees to take or cause to be taken all actions
           otherwise necessary, to ensure the election to the Board of the
           Limited Nominees and the FS Nominees and the other directors as
           required by Section 8(a).

                        (ii) Purchaser hereby agrees to use his best efforts to
           call, or cause the appropriate officers and directors of the Company
           to call, a special meeting of stockholders of the Company, and
           Purchaser hereby agrees to vote or cause to be voted all of his
           Shares for, or to take or cause to be taken, all actions by written
           consent in lieu of any such meeting necessary to cause, the removal
           (with or without Cause) of (i) any Limited Nominee if The Limited
           requests such director's removal for any reason, and (ii) any FS
           Nominee if FS Equity requests such director's removal for any reason.

                (c)  Removal of Nominees. Except as provided in Section
8(b)(ii), Purchaser hereby agrees that it will not vote in favor of the removal
of any Limited Nominee or FS Nominee unless such removal shall be for Cause. For
the purposes of this Section 8(c), "Cause" shall mean the willful and continued
failure by a director substantially to perform his duties as a director of the
Company, the willful engaging by a director in conduct which is demonstrably and
materially injurious to the Company, or the director's conviction of any crime
constituting a felony which involves moral turpitude.

                (d)  Reduction in Limited Nominees and FS Nominees.
Notwithstanding the foregoing, (i) at such time as The Limited ceases to own
Shares representing more than 50% of the Shares held by it on August 31, 1999,
The Limited shall be entitled to designate no more than 1 member of the Board,
(ii) at such time as FS Equity ceases to own Shares representing more than 75%
of the Shares held by it on August 31, 1999, FS Equity shall be entitled to
designate no more than 3 members of the Board, (iii) at such time as FS Equity
ceases to own Shares representing more than 50% of the Shares held by it on
August 31, 1999, FS Equity shall be entitled to designate no more than 2 members
of the Board, (iv) at such time as FS Equity ceases to own Shares representing
more than 25% of the Shares held by it as a group on August 31, 1999, FS Equity
shall be entitled to designate no more than 1 member of the Board and (v) at
such time as The Limited or FS Equity shall own less than 5% of the Shares, such
stockholder's right to designate members of the Board shall terminate.

                                       7
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            9. Purchaser's Representations, Warranties and Agreements. Purchaser
               -------------------------------------------------------
represents and warrants to the Company as follows:

               (a) Restrictions on Transfer. The Purchaser agrees and
                   -------------------------
acknowledges that the Shares are subject to significant restrictions on transfer
as well as certain obligations to sell as set forth in this Agreement.

               (b) Investment Representations. The Purchaser represents and
                   ---------------------------
warrants as follows:

                        (i)  The Purchaser is acquiring the Shares for
investment for Purchaser's own account and not with a view to, or for resale in
connection with, the distribution or other disposition thereof except in
compliance with this Agreement and as permitted by law, including without
limitation, the Act. The Purchaser does not have any present intent to resell or
distribute all or any part of his Shares in violation of the Securities Act.

                        (ii) The Purchaser has been advised that the Shares have
not been registered under the Act, that the Shares may not be sold or otherwise
disposed of unless registered thereunder or an exemption from registration is
available and that accordingly it may be required to bear the economic risk of
the investment in the Shares for an indefinite period of time. The Purchaser
also understands that the Company does not have any intention of registering the
Shares under the Securities Act or of supplying the information which may be
necessary to enable the Purchaser to sell the Shares pursuant to Rule 144 under
the Securities Act.

                        (iii) The Purchaser (A) has received and reviewed a
Disclosure Statement from the Company relating to his investment in the Shares,
(B) by virtue of such Purchaser's employment relationship with the Company is
generally knowledgeable regarding the business of the Company and (C) has been
given the opportunity to obtain any additional information or documents and to
ask questions and receive answers about such documents, the Company and the
business and prospects of the Company as he or she deems necessary to evaluate
the merits and risks related to his investment in the Shares and no
representations concerning such matters or any other matters relating to such
investment have been made to the Purchaser except as set forth in this
Agreement. The Purchaser has consulted his or her own attorney, accountant or
investment advisor with respect to the investment contemplated hereby and its
suitability for the Purchaser, including the tax and other economic
considerations related to the investment.

                        (iv) The Purchaser (A) has knowledge and experience in
financial and business matters such that the Purchaser is capable of evaluating
the merits and risks of the purchase of the Shares as contemplated by this
Agreement, (B) understands and has taken cognizance of all risk factors related
to the purchase of the Shares and (C) is able to bear the economic risk of the
investment in the Shares for an indefinite period of time and can afford to
suffer a complete loss of the investment in the Shares.

                        (v) The Purchaser has been informed that the offer of
the Shares is being made pursuant to an exemption from the registration
requirements of the
                                       8
<PAGE>

Securities Act, relating to transactions by an issuer not involving a public
offering, and that, consequently, the materials relating to the offer have not
been subject to review and comment by the staff of the Securities and Exchange
Commission or any other governmental authority.

                        (vi) This Agreement, when signed by or on behalf of the
Purchaser on the signature page hereof, shall be validly executed and delivered
on behalf of the Purchaser and shall be valid, binding and enforceable against
the Purchaser in accordance with its terms.

                        (vii) The Purchaser is not subscribing for the Shares as
a result of or subsequent to any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast
over television or radio, or presented at any seminar or meeting, or any
solicitation of a subscription by a person not previously known to the Purchaser
in connection with investments in securities generally.

              10.   Miscellaneous.
                    -------------

                    (a) Legends on Certificates. Any and all certificates now or
                        ------------------------
hereafter issued evidencing the Shares shall have endorsed upon them a legend
substantially as follows:

              "THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO
              RESTRICTIONS UPON TRANSFER AND MAY NOT BE SOLD, TRANSFERRED,
              ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT
              IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THAT CERTAIN STOCK
              SUBSCRIPTION AGREEMENT DATED AS OF _________, BY AND BETWEEN
              GALYAN'S TRADING COMPANY, INC., AN INDIANA CORPORATION, AND THE
              ORIGINAL PURCHASER HEREOF, COPIES OF WHICH AGREEMENT ARE ON FILE
              AT THE PRINCIPAL EXECUTIVE OFFICES OF GALYAN'S TRADING COMPANY,
              INC."

Such certificates shall also bear such legends and shall be subject to such
restrictions on transfer as may be necessary to comply with all applicable
federal and state securities laws and regulations.

                    (b)  Further Assurances. Each party hereto agrees to perform
                         -------------------
any further acts and execute and deliver any documents which may be reasonably
necessary to carry out the intent of this Agreement.

                    (c)  Notices. Except as otherwise provided herein, all
                         --------
notices, requests, demands and other communications under this Agreement shall
be in writing, and if by telegram or telecopy, shall be deemed to have been
validly served, given or delivered when sent, or if by personal delivery or
messenger or courier service, or by registered or certified mail, shall be
deemed to have been validly served, given or delivered upon actual delivery, at
the following addresses, telephone and facsimile numbers (or such other
address(es), telephone and facsimile numbers a party may designate for itself by
like notice):

                                       9
<PAGE>

                    If to the Company:

                    Galyan's Trading Company, Inc.
                    2437 E. Main Street
                    Plainfield, IN 46168
                    Attn:  Controller
                    Telecopy:        (317) 532-2060

                    If to Purchaser:

                    c/o Galyan's Trading Company, Inc.
                    2437 E. Main Street
                    Plainfield, IN 46168
                    Telecopy:        (317) 532-2060

                    With a copy to:

                    Ice Miller Donadio & Ryan
                    One American Square
                    Box 82001
                    Indianapolis, IN  46282
                    Attn:  Marc W. Sciscoe, Esq.
                    Telecopy:        (317) 236-2219

                    (d) Amendments. This Agreement may be amended only by a
                        -----------
written agreement executed by both of the parties hereto and by FS Equity.

                    (e) Governing-Law. This Agreement shall be governed by and
                        --------------
construed in accordance with the laws of the State of New York.

                    (f) Disputes. In the event of any dispute among the parties
                        ---------
arising out of this Agreement, the prevailing party shall be entitled to recover
from the nonprevailing party the reasonable expenses of the prevailing party
including, without limitation, reasonable attorneys' fees.

                    (g) Entire Agreement. This Agreement constitutes the entire
                        -----------------
agreement and understanding among the parties pertaining to the subject matter
hereof and supersedes any and all prior agreements, whether written or oral,
relating hereto.

                    (h) Recapitalizations or Exchanges Affecting the Company's
                        ------------------------------------------------------
Capital. The provisions of this Agreement shall apply to any and all stock or
--------
other securities of the Company or any successor or assign of the Company, which
may be issued in respect of, in exchange for or in substitution of, the Shares
by reason of any split, reverse split, recapitalization, reclassification,
combination, merger, consolidation or otherwise, and such Shares or other
securities shall be encompassed within the term "Shares" for purposes of this
Agreement and the Pledge Agreement.

                                      10
<PAGE>

                    (i) No Rights as an Employee. Nothing in this Agreement
                        -------------------------
shall give Purchaser any rights to continued employment or affect in any manner
whatsoever the rights of the Company to terminate Purchaser's employment for any
reason, with or without cause, subject to the terms and conditions of any
employment agreement to which Purchaser may be a party.

                    (j) Disclosure. The Company shall have no duty or obligation
                        -----------
to affirmatively disclose to Purchaser, and Purchaser shall have no right to be
advised of, any material information regarding the Company at any time prior to,
upon or in connection with the Company's repurchase of the Shares under this
Agreement at the cessation or termination of Purchaser's employment with the
Company.

                    (k) Successors and Assigns. The Company may assign with
                        -----------------------
absolute discretion any or all of its rights and/or obligations and/or delegate
any of its duties under this Agreement to any of its affiliates, successors
and/or assigns and this Agreement shall inure to the benefit of, and be binding
upon, such respective affiliates, successors and/or assigns of the Company in
the same manner and to the same extent as if such affiliates, successors and/or
assigns were original parties hereto. Without limiting the foregoing, the
Company may assign the right of first refusal and/or the Repurchase Option
provided for in Section 3 and Section 4 of this Agreement, respectively, to any
of its affiliates, successors and/or assigns. FS Equity may assign its rights
under Section 5 to any FS Permitted Transferee or to a purchaser of shares of
Common Stock then owned by FS Equity. Except as expressly provided in Section
2(c) hereof, Purchaser may not assign any or all of his rights and/or
obligations and/or delegate any or all his duties under this Agreement without
the prior written consent of the Company and FS Equity. Upon an assignment of
any or all of Purchaser's rights and/or obligations and/or a delegation of any
or all of his duties under this Agreement in accordance with the terms of this
Agreement, this Agreement shall, if and to the extent set forth herein, inure to
the benefit of, and be binding upon, Purchaser's respective affiliates,
successors and/or assigns in the same manner and to the same extent as if such
affiliates, successors and/or assigns were original parties hereto.

                    (l) Headings. Introductory headings at the beginning of each
                        ---------
section and subsection of this Agreement are solely for the convenience of the
parties and shall not be deemed to be a limitation upon or description of the
contents of any such section and subsection of this Agreement.

                    (m) Counterparts. This Agreement may be executed in two
                        -------------
counterparts, each of which shall be deemed an original and both of which, when
taken together, shall constitute one and the same agreement.

                 [Remainder of page intentionally left blank]

                                      11
<PAGE>

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

                                    THE COMPANY:

                                    Galyan's Trading Company, Inc.,
                                    an Indiana corporation

                                    By:
                                       ----------------------------------

                                    PURCHASER:

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

                                      12<PAGE>

                                                                    EXHIBIT 10.9

                                                                   WARRANT NO. 1

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF AND ANY OTHER
SECURITIES INTO WHICH SUCH SECURITIES ARE CONVERTED HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS.  THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ENCUMBERED OR DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  THIS WARRANT AND THE
SECURITIES ISSUABLE UPON EXERCISE HEREOF AND ANY OTHER SECURITIES INTO WHICH
SUCH SECURITIES ARE CONVERTED ARE FURTHER SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER CONTAINED HEREIN AND IN THAT CERTAIN STOCKHOLDERS AGREEMENT DATED AS OF
AUGUST 31, 1999 AMONG THE COMPANY, THE FS STOCKHOLDERS, THE OTHER STOCKHOLDERS
AND THE LIMITED STOCKHOLDER.  IN ADDITION, THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF AND ANY OTHER SECURITIES INTO WHICH SUCH
SECURITIES ARE CONVERTED ARE SUBJECT TO AN OBLIGATION TO SELL AS SET FORTH IN
THE STOCKHOLDERS AGREEMENT.

                              WARRANT TO PURCHASE
                                  COMMON STOCK

          This certifies that, for value received, The Limited, Inc. or its
assigns (the "Holder"), is entitled to purchase up to 1,350,000 shares of class
B common stock (the "Class B Common Stock") or shares of a single class of
voting common stock ("Voting Common Stock") into which all shares of Class A
common stock of the Company and Class B Common Stock may be converted pursuant
to the Company's Amended and Restated Articles of Incorporation, as determined
pursuant to Section 1(c) hereof, of Galyan's Trading Company, Inc., an Indiana
corporation (the "Company"), at a purchase price per share of Common Stock (each
a "Share" and collectively the "Shares") set forth in Section 1 hereof (as
adjusted from time to time in accordance with Section 6 hereof, the "Exercise
Price").  As used herein, the term "Common Stock" shall refer to either the
Voting Common Stock or the Class B Common Stock for which the Warrant may be
exercised, as applicable.

          Capitalized terms used but not otherwise defined herein shall have
those meanings set forth in that certain Stockholders Agreement dated as of
August 31, 1999 among the Company, the FS Stockholders, the Other Stockholders
and the Limited Stockholder (as the same may be amended from time to time, the
"Stockholders Agreement").
<PAGE>

          his Warrant is subject to the following terms and conditions:

          1.  Exercise Price; Exercisability of Warrant.
              -----------------------------------------

          (a) The Exercise Price from and after the date of issuance of this
Warrant through the first day of the calendar month following the calendar month
in which such date of issuance occurs (such first day of such month, and each
anniversary of such first day, an "Anniversary Date") shall be $10.00.  On the
first day of each calendar month following the first Anniversary Date, the
Exercise Price in effect during the preceding calendar month shall be increased
by an amount equal to 3 1/3% of the Exercise Price as the most recent
Anniversary Date (adjusted to the extent necessary to reflect adjustments under
Section 6 hereof).  For the avoidance of doubt, there shall only be one
Anniversary Date per year.  Notwithstanding the foregoing provisions of this
Section 1(a), the term Exercise Price at any date shall be the price determined
as set forth above and reflecting all appropriate adjustments made in accordance
with the provisions of Section 6 hereof payable to purchase one share.

          (b) This Warrant shall be exercisable solely by the Holder, in whole
or in part, and from time to time during the period commencing immediately prior
to the earlier to occur of (x) the occurrence of the Triggering Event (as
defined below) and (y) the fourth anniversary of the date hereof and terminating
at 5:00 p.m., New York time, on August 31, 2009 (the "Warrant Exercise Period").

          (c) If, at the time this Warrant is exercised, (a) the Triggering
Event has occurred this Warrant shall be exercisable for Voting Common Stock and
(b) the Triggering Event has not occurred this Warrant shall be exercisable for
Class B Common Stock.

          (d)  "Triggering Event" shall mean the earliest to occur of (i) an
initial public offering, (ii) sale of all or substantially all of the assets of
the Company and (iii) any transaction (including, without limitation, a merger,
reorganization, stock sale, stock issuance or like transaction) immediately
following which the shareholders of the Company as of the date hereof own less
than 50% of the stock of the Company.

          2.  Method of Exercise.
              ------------------

          (a) This Warrant may be exercised by the Holder, in whole or in part,
during the Warrant Exercise Period by the surrender of this Warrant, properly
endorsed, at the principal office of the Company and by (i) the payment in cash
or by certified check to the Company of the Exercise Price in respect of the
Common Stock being purchased and (ii) delivery to the Company of the Form of
Subscription attached hereto (or a reasonable facsimile thereof).
Notwithstanding the foregoing, this Warrant shall not be exercisable in any one
exercise for a number of Shares fewer than the number equal to the lesser of (A)
100,000 Shares and (B) the number of Shares then subject to this Warrant.

          (b) Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the Business Day on which
(i) this Warrant shall have been surrendered to the Company, (ii) the Company
shall have received payment of the Exercise Price in respect of the Shares being
purchased and (iii) the Company shall have received the Form of Subscription
attached hereto, all as provided in this Section 2.

                                       2
<PAGE>

          (c) In the event of any exercise of this Warrant, certificates for
Shares so purchased shall be delivered at the Company's expense to the Holder
within five Business Days after the Warrant shall have been so exercised, and
unless this Warrant has expired, a new Warrant of like tenor representing the
number of Shares, if any, with respect to which this Warrant shall not then have
been exercised, shall also be issued to the Holder within such time.

          3.  Limitation on Exercise.  Notwithstanding the provisions of Section
              ----------------------
1, the Company shall not be required to deliver any Shares pursuant to the terms
of this Warrant, except in accordance with the provisions and subject to the
limitations hereof.

          4.  Due Authorization and Issuance; Reservation of Shares.  The
              -----------------------------------------------------
Company covenants and agrees that any and all of the Shares issued to the Holder
in accordance with the terms hereof and any securities into which such Shares
are converted will, upon issuance, be duly authorized, validly issued, free from
all preemptive rights of any holder of Shares and free and clear of all taxes,
liens and charges with respect to such issuance; provided however that any and
                                                 --------
all Shares issued to the Holder and any securities into which such Shares are
converted shall be subject to the provisions of the Stockholders Agreement.  The
Company further covenants and agrees that, during the Warrant Exercise Period,
the Company will take no action that would restrict or otherwise limit the
number of Shares issuable on such exercise or conversion.  The Company will take
all such action as may be necessary to assure that such Shares may be issued as
provided herein (or upon conversion of any such Shares) without violation of any
applicable law or regulation.  The Company further covenants and agrees that
during the Warrant Exercise Period, the Company will at all times have
authorized and reserved for the purpose of the issue upon the exercise of the
this Warrant, at least the maximum number of Shares as are then issuable upon
the exercise of this Warrant (or upon conversion of any such Shares).

          5.  Fractional Shares.  No fractional Shares will be issued in
              -----------------
connection with any exercise hereunder but in lieu of such fractional Shares,
the Company shall make a cash payment therefor to the Holder in an amount equal
to the fair market value of such fraction.

          6.  Anti-Dilution Adjustments.  The Exercise Price and the exercise
              -------------------------
quantity are subject to adjustment from time to time upon the occurrence of the
events set forth in this Section 6.

          (a) Adjustment for Change in Capital Stock.
              --------------------------------------

          If the Company:

               (1) pays a dividend or makes a distribution on its Shares in
                   Shares;

               (2) subdivides its outstanding Shares into a greater number of
                   Shares;

               (3) combines its outstanding Shares into a smaller number of
                   Shares; or

               (4) issues by reclassification of its Shares any shares of its
                   capital stock;

                                       3
<PAGE>

then the Exercise Price in effect immediately prior to such action shall be
proportionately adjusted (in conjunction with the adjustment provided for in
Section 6(l) hereof) so that thereafter, the Holder of the Warrant, upon
exercise of the Warrant, may receive the aggregate number and kind of shares of
capital stock of the Company which he would have owned immediately following
such action if the Warrant had been exercised immediately prior to such action.

          An adjustment made pursuant to this Section 6(a) shall become
effective on the effective date of an event referred to in clauses (1) - (4)
above, retroactive to the record date (if any) for such event.

          If after an adjustment the Holder of the Warrant upon exercise of it
may receive shares of two or more classes of capital stock of the Company, the
Board shall determine the allocation of the adjusted Exercise Price between the
classes of capital stock.  After such allocation, the exercise privilege and the
Exercise Price of each class of capital stock shall thereafter be subject to
adjustment on terms comparable to those applicable to the Shares in this
Section.  Notwithstanding the foregoing, if the Triggering Event has not
occurred, the Warrant shall be exercisable only for Class B Common Stock and
similar non-voting stock of the Company and upon the occurrence of the
Triggering Event, such Class B Common Stock or similar non-voting stock of the
Company shall be convertible into Voting Common Stock or other voting stock of
the Company.

          Such adjustment shall be made successively whenever any event listed
above shall occur.

          (b) Adjustment for Rights Issue.  If the Company distributes (other
              ---------------------------
than in a transaction referred to in Section 6(a) hereof) any rights, options or
warrants to all holders of its Shares entitling them to purchase Shares at a
price per share less than the Current Market Price (as defined in Section 6(f)
below) per share as of the record date established for such distribution, the
Exercise Price shall be adjusted in accordance with the formula:

                                          O + N x P
                                              -----
                                                M
                            E'  =  E  X  -----------
                                            O + N

where:

         E'   =   the adjusted Exercise Price.

         E    =   the current Exercise Price.

         O    =   the number of Shares outstanding on the record date.

         N    =   the number of additional Shares offered.

         P    =   the offering price per Share of the additional Shares.

         M    =   the Current Market Price per Share on the record date.

                                       4
<PAGE>

          An adjustment made pursuant to this Section 6(b) shall become
effective when any such rights, options, or warrants are issued, retroactive to
the record date for such issuance.

          (c) Adjustment for Other Distribution.  If the Company distributes to
              ---------------------------------
all holders of its Common Stock any of its assets, debt securities or other
securities of the Company (other than Shares) or any rights or warrants to
purchase debt securities, assets or other securities of the Company (other than
Shares), the Exercise Price shall be adjusted in accordance with the formula:

                               E' = E x (M - F)
                                        -------
                                           M

where:

         E'   =   the adjusted Exercise Price.

         E    =   the current Exercise Price.

         M    =   the Current Market Price per Share on the record date
                  mentioned below.

         F    =   the Fair Market Value on the record date of the assets,
                  securities, rights or warrants applicable to one Share.

          Adjustments made pursuant to this Section 6(c) shall be made
successively whenever any such distribution is made and shall become effective
on the effective date of any such distribution, retroactive to the record date
for such event.

          This subsection (c) does not apply to cash dividends paid out of
consolidated current or retained earnings as shown on the books of the Company
prepared in accordance with generally accepted accounting principles
consistently applied, provided such cash dividends do not exceed in any fiscal
year of the Company more than 4% of the immediately preceding fiscal year-end's
market price per Share as determined in accordance with subsection (f) of this
Section 6.  Also, this subsection (c) does not apply to any transaction referred
to in Sections 6(a), 6(b), 6(d) or 6(e).

                                       5
<PAGE>

          (d) Adjustment for Issuance of Shares.  If the Company issues Shares
              ---------------------------------
for a consideration per share less than the Current Market Price per Share as of
the date the Company fixes the offering price of such additional shares, the
Exercise Price shall be adjusted in accordance with the formula:

                                             P
                                             -
                                E' = E x O + M
                                         -----
                                           A

where:

         E'   =   the adjusted Exercise Price.

         E    =   the current Exercise Price.

         O    =   the number of shares outstanding immediately prior to the
                  issuance of such additional shares.

         P    =   the aggregate consideration received for the issuance of such
                  additional shares.

         M    =   the Current Market Price per share on the date of issuance of
                  such additional shares.

         A    =   the number of shares outstanding immediately after the
                  issuance of such additional shares.

          Adjustments pursuant to this Section 6(d) shall be made successively
whenever any such issuance is made and shall become effective immediately after
such issuance.

          This subsection (d) does not apply to:

          (1) any of the transactions described in subsections (a), (b), (c) or
(e) of this Section 6;

          (2) the exercise of Warrants, or the conversion or exchange of other
securities convertible or exchangeable for Shares;

          (3) Shares issued to (x) stockholders of any Person which merges with
or into the Company, or with or into a subsidiary of the Company, in proportion
to the stock holdings of such Person immediately prior to such merger, upon such
merger or (y) to any Person in exchange for assets sold by such Person to the
Company;

          (4) Shares issued in a bona fide public offering pursuant to a firm
commitment underwriting; or

                                       6
<PAGE>

          (5) Shares issuable to employees or directors of the Company under or
pursuant to employee benefit or option plans approved by either the Board or
stockholders of the Company.

          (e) Adjustment for Convertible Securities Issue.  If the Company
              -------------------------------------------
issues any warrants, options, or other rights to purchase Shares or other
securities convertible into or exchangeable for Shares (other than securities
issued in transactions described in subsections (a), (b), (c) or (d) of this
Section 6) for a consideration per Share initially deliverable upon conversion
or exchange of such securities less than the Current Market Price per share as
of the date of issuance of such securities, the Exercise Price shall be adjusted
in accordance with this formula:

                                              P
                                              -
                                          O + M
                                E' = E X  -----
                                          O + D

where:

         E'   =    the adjusted Exercise Price.

         E    =    the then current Exercise Price.

         O    =    the number of Shares outstanding immediately prior to the
                   issuance of such securities.

         P    =    the aggregate consideration received for the issuance of such
                   securities.

         M    =    the Current Market Price per share on the date of issuance of
                   such securities.

         D    =    the maximum number of shares deliverable upon conversion or
                   in exchange for such securities at the initial conversion or
                   exchange rate.

          Adjustments pursuant to this Section 6(e) shall be made successively
whenever any such issuance is made and shall become effective immediately after
such issuance.

          This subsection (e) does not apply to:

          (1) convertible securities issued to stockholders of any Person which
merges with or into the Company, or with or into a subsidiary of the Company, in
proportion to the stock holdings of such Person immediately prior to such
merger, upon such merger; or

          (2) convertible securities issued in a bona fide public offering
pursuant to a firm commitment underwriting; or

          (3) convertible securities issued in connection with the placement of
the Preferred Stock for an aggregate purchase price of $50 million at the
Closing.

                                       7
<PAGE>

          (f) Current Market Price.  In subsections (b), (c), (d) and (e) of
              --------------------
this Section 6 the "Current Market Price" per Share as of any date is the
average of the closing prices of the Shares for 30 consecutive trading days
commencing 45 trading days before the date in question.  At any time prior to an
Initial Public Offering, "Current Market Price" per Share as of any date shall
be equal to its Fair Market Value.  "Fair Market Value" of a Share is the fair
market value of such Share on the date of determination, as determined in good
faith by the Board of Directors of the Company.

          (g) Consideration Received; Occurrence of Transactions.  For purposes
              --------------------------------------------------
of any computation respecting consideration received pursuant to subsections (d)
and (e) of this Section 6, the following shall apply:

          (1) in the case of the issuance of Shares for cash, the consideration
shall be the amount of such cash, provided that in no case shall any deduction
be made for any commissions, discounts or other expenses incurred by the Company
for any underwriting of the issue or otherwise in connection therewith;

          (2) in the case of the issuance of Shares for a consideration in whole
or in part other than cash, the consideration other than cash shall be deemed to
be the Fair Market Value thereof;

          (3) in the case of the issuance of securities convertible into or
exchangeable for Shares, the aggregate consideration received therefor shall be
deemed to be the consideration received by the Company for the issuance of such
securities plus the additional minimum consideration, if any, to be received by
the Company upon the conversion or exchange thereof (the consideration in each
case to be determined in the same manner as provided in clauses (1) and (2) of
this subsection); and

          (4) in the case of the issuance of securities as part of an investment
unit, the aggregate consideration payable per such investment unit shall be
allocated among the securities as determined in good faith by the Board.

          For the purpose of any adjustment made pursuant to this Section 6, any
specified event shall be deemed to have occurred at the close of business on the
date of its occurrence.

          (h) When De Minimis Adjustment May be Deferred.  No adjustment in the
              ------------------------------------------
Exercise Price need be made unless the adjustment would require an increase or
decrease of at least 0.1% in the Exercise Price.  Any adjustments that are not
made shall be carried forward and taken into account in any subsequent
adjustment.

          All calculations under this Section 6 shall be made to the nearest
cent or to the nearest 1/100th of a share, as the case may be.

          (i) Notice of Adjustment.  Whenever the Exercise Price is adjusted,
              --------------------
the Company shall provide the notices required by Section 13 hereof.

          (j) Notice of Certain Transactions.  If:
              ------------------------------

                                       8
<PAGE>

          (1) the Company takes any action that would require an adjustment in
the Exercise Price pursuant to subsections (a), (b), (c), (d) or (e) of this
Section 6; or

          (2) there is a liquidation or dissolution of the Company then, the
Company shall mail to the Holder a notice stating the proposed record date for a
dividend or distribution or the proposed effective date of a subdivision,
combination, reclassification, consolidation, merger, transfer, lease,
liquidation or dissolution.  The Company shall mail the notice at least 30 days
before such date.

          (k) When Adjustment Not Required.  If the Company shall take a record
              ----------------------------
of the holders of its Shares for the purpose of entitling them to receive a
dividend or distribution or subscription or purchase rights and shall,
thereafter and before the distribution to stockholders thereof, legally abandon
its plan to pay or deliver such dividend, distribution, subscription or purchase
rights, then thereafter no adjustment shall be required by reason of the taking
of such record and any such adjustment previously made in respect thereof shall
be rescinded and annulled.

          (l) Adjustment in Exercise Quantity.  Upon each adjustment of the
              -------------------------------
Exercise Price pursuant to this Section 6, each Warrant outstanding prior to the
making of the adjustment in the Exercise Price shall thereafter evidence the
right to receive upon payment of the aggregate Exercise Price thereunder that
number of Shares (calculated to the nearest hundredth) obtained from the
following formula:

                                           E
                                  N' = N x -
                                           E'

where:

         N'   =    the adjusted number of Warrant Shares issuable upon exercise
                   of a Warrant by payment of the adjusted Exercise Price.

         N    =    the number of Warrant Shares previously issuable upon
                   exercise of a Warrant by payment of the Exercise Price prior
                   to adjustment.

         E'   =    the adjusted Exercise Price.

         E    =    the Exercise Price prior to adjustment.

          (m) Form of Warrants.  Irrespective of any adjustments in the Exercise
              ----------------
Price or the number or kind of shares purchasable upon the exercise of the
Warrant, the Warrant theretofore or thereafter issued may continue to express
the same price and number and kind of shares as are stated in the Warrant
initially issuable pursuant thereto.

          (n) Superseding Adjustment of Number of Shares to be Received.  If at
              ---------------------------------------------------------
any time after an adjustment of the Exercise Price and/or exercise quantity in
respect of the Warrant shall have been made pursuant to Section 6 on the basis
of the issuance of securities convertible into Shares, options, warrants, rights
or exchangeable securities, the right of conversion, exercise or exchange
applicable to such securities convertible into Shares, options, warrants, rights
or exchangeable securities shall expire, or the right of conversion, exercise or
exchange in respect

                                       9
<PAGE>

of a portion of such securities convertible into shares, options, warrants,
rights or exchangeable securities shall have not been exercised, a recomputation
shall be made of the effect of such securities convertible into Shares, options,
warrants, rights or exchangeable securities on the basis of the issuance of only
the number of Shares, options, if any, theretofore actually issued or issuable
pursuant to the previous exercise of such right of conversion, exercise or
exchange and for the consideration actually received and receivable therefor;
and if and to the extent called for by the foregoing provisions of this Section
on the basis aforesaid, a new adjustment shall be made, which new adjustment
shall supercede the previous adjustment so rescinded and annulled.

          7.   Reorganization, Reclassification, Consolidation, Merger or Sale.
               ----------------------------------------------------------------
If any reorganization or reclassification of outstanding Shares, or any
consolidation or merger of the Company with another entity, or the sale of all
or substantially all of the Company's assets to another entity shall be effected
in such a way that holders of Shares shall be entitled to receive cash, stock,
securities or assets with respect to or in exchange therefor, then, as a
condition of such reorganization, reclassification, consolidation, merger or
sale, lawful and adequate provision shall be made whereby the Holder shall
thereafter have the right upon the terms and conditions specified in this
Warrant to receive, in lieu of Shares upon the payment of the Exercise Price,
solely such cash, stock, securities or assets as would have been issued or
payable with respect to or in exchange for Shares pursuant to the terms hereof
had the Holder exercised the Warrant in full immediately prior to the effective
date of such reorganization, reclassification, consolidation, merger or sale,
and in any such case appropriate provision shall be made with respect to the
rights and interests of the Holder to the end that the provisions hereof shall
thereafter be applicable, as nearly as may be possible, in relation to any
stock, securities or assets thereafter deliverable upon the exercise hereof, and
appropriate adjustment shall be made to determine and provide for the price per
Share, shares of stock or other security or asset deliverable hereunder, as well
as the number of Shares, shares of stock or other securities, or the amount of
assets, deliverable hereunder. The Company will not effect any such
consolidation, merger or sale, unless prior to the consummation thereof the
successor corporation or other entity (if other than the Company) resulting from
such consolidation or merger or the corporation or other entity purchasing such
assets shall assume by written instrument, executed and mailed or delivered to
the last address of such Holder appearing on the books of the Company, the
obligation to deliver to such Holder such cash, stock, securities or assets as,
in accordance with the foregoing provisions, such Holder may be entitled to
receive.

          8.   Issue Tax.  The issuance of Shares upon payment of the Exercise
               ----------
Price pursuant to this Warrant shall be made without charge to the Holder for
any issue tax in respect thereof, provided that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any Shares in a name other than that of the
Holder.

          9.   Distributions; Limitation of Liability. All distributions or
               ---------------------------------------
similar payments made by the Company to holders of Shares with respect to
outstanding Shares shall accrue in respect of this Warrant and shall be paid to
the Holder upon the exercise hereof, except for ordinary dividends and except
for distributions that caused an adjustment to the Exercise Price. Nothing
contained in this Warrant shall be construed as conferring upon the Holder any
rights as a stockholder of the Company (except to the extent that Shares are
issued to such Holder pursuant to this Warrant or such Holder otherwise owns any
Shares) or as imposing any

                                       10
<PAGE>

liabilities on such Holder to purchase any securities or as a stockholder of the
Company, whether such liabilities are asserted by the Company or by creditors or
stockholders of the Company or otherwise.

         10.   Transferability of Warrant. This Warrant shall not be transferred
               ---------------------------
in any manner whatsoever except to a direct or indirect wholly-owned subsidiary
of The Limited, Inc. in accordance with the Securities Act of 1933, as amended;
provided, however, that each such qualified transferee hereof must, prior to the
--------  -------
acknowledgement and acceptance of such transfer by the Company, agree to take
and hold this Warrant subject to the provisions specified herein and to the
terms and conditions of the Stockholders Agreement, including without
limitation, the restrictions on transfer of shares of the Company's common stock
contained in Article II thereof. Any permitted transfer made hereunder shall be
made without charge to the Holder (except for transfer taxes), at the office or
agency of the Company, by the Holder in person or by his duly authorized
attorney, upon surrender of this Warrant properly endorsed pursuant to the Form
of Assignment attached hereto.

          11.  Restrictive Legend.  Each instrument representing any other
               ------------------
securities issued in respect of this Warrant upon any distribution, capital
reorganization or reclassification, merger, consolidation or similar event,
shall (unless such securities have been registered under the Securities Act of
1933, as amended) be stamped or otherwise imprinted with a legend substantially
in the form set forth on the cover hereof.

          12.  Modification and Waiver.  This Warrant and any provision hereof
               -----------------------
may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought.

          13.  Notices.  Any notice, request or other document required or
               -------
permitted to be given or delivered to the Holder or the Company shall be
delivered, or shall be sent by certified or registered mail, postage prepaid, to
the Holder at its address as shown on the books of the Company or to the Company
at the address indicated therefor in the first paragraph of this Warrant.

          14.  Descriptive Headings and Governing Law.  The descriptive headings
               --------------------------------------
of the several paragraphs of this Warrant are inserted for convenience only and
do not constitute a part of this Warrant.  This Warrant shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the laws of the State of New York.

          15.  Lost Warrant.  The Company represents and warrants to the Holder
               ------------
that upon receipt of evidence reasonably satisfactory to the Company of the
loss, theft, destruction, or mutilation of this Warrant and, in the case of any
such loss, theft or destruction upon receipt of an indemnity reasonably
satisfactory to the Company, or in the case of any such mutilation upon
surrender and cancellation of such Warrant, the Company will make and deliver a
new Warrant in lieu of the lost, stolen, destroyed or mutilated Warrant.

          16.  Expiration of Warrant.  This Warrant shall expire and shall no
               ---------------------
longer be exercisable on or after the expiration of the Warrant Exercise Period.

                                       11
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed and issued by its officers thereunto duly authorized as of this 31st
day of August 1999.

                                        GALYAN'S TRADING COMPANY, INC.,
                                        an Indiana corporation

                                        By:
                                           -------------------------------------
                                        Name:
                                        Title:
<PAGE>

                             FORM OF SUBSCRIPTION
                             --------------------

             (to be signed only upon payment of the Exercise Price
                           pursuant to the Warrant)

To the Company:

          The undersigned, the holder of the within Warrant, hereby irrevocably
elects to purchase __ shares of [Voting][Class B] Common Stock for an aggregate
Exercise Price of $_______________, and requests that such shares of
[Voting][Class B] Common Stock be held (and the related capital contribution be
made) in the name of, __________________________________________________________
________________________________________________________________________________
______________________________________________________________, whose address is
____________________________________________________________.

          The undersigned represents that it is purchasing such shares of
[Voting][Class B] Common Stock for its own account for investment purposes only
and not with a view to or for sale of such shares of [Voting][Class B] Common
Stock in connection with any distribution of shares of [Voting][Class B] Common
Stock.

DATED: _____________                    _______________________________
                                        (Signature must conform in all
                                        respects to name of holder as
                                        specified on the face of the Warrant)

                                        _______________________________

                                        _______________________________
                                        (Address)
<PAGE>

                               FORM OF ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned, the holder of the within Warrant,
hereby sells, assigns and transfers all of the rights of the undersigned under
the within Warrant unto:

Name of Assignee                                 Address
----------------                                 -------

DATED: _____________                    _______________________________
                                        (Signature must conform in all
                                        respects to name of holder as
                                        specified on the face of the Warrant)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]