Document:

EXHIBIT 4.1

 

GOLF
GALAXY, INC.

2004
STOCK INCENTIVE PLAN

 

The purpose of the Golf
Galaxy, Inc. 2004 Stock Incentive Plan (the “Plan”) is to promote the
growth and profitability of Golf Galaxy, Inc. (the “Company”) and its
Affiliates (as defined below) by providing its directors, officers, employees,
consultants and other service providers (“Eligible Persons”) with an incentive
to achieve long-term corporate objectives, to attract and retain persons of
outstanding competence, and to provide such persons with an equity interest in
the Company.

 

1.             Shares
Subject to Plan.  Subject to
adjustment as provided in Sections 8 and 9 of the Plan, an aggregate of One
Million (1,000,000) shares (the “Shares”) of the common stock, par value $0.01
per share, of the Company (“Common Stock”) may be subject to awards granted
under the Plan.  Of such aggregate Plan
limit, the maximum number of shares of Common Stock that may be issued as
Incentive Stock Options under the Plan shall be limited to One Million
(1,000,000) shares.  Shares that are
subject to an award which expires or is terminated unexercised, or which are
reacquired by the Company upon the forfeiture of restricted Shares, shall again
be available for issuance under the Plan. 
Shares that are withheld in full or partial payment to the Company of
the purchase or exercise price relating to an award under the Plan or in
connection with the satisfaction of tax obligations relating to an award (other
than an Incentive Stock Option) shall again be available for granting awards
under the Plan.  Any previously issued
shares of Common Stock that are used by an award recipient as full or partial
payment to the Company of the purchase or exercise price relating to an award
or in connection with the satisfaction of tax obligations relating to an award
shall again be available for granting Awards under the Plan.

 

2.             Administration.

 

a.             Compensation
Committee.  The Plan shall be
administered by the Compensation Committee of the Board of Directors (the “Board”),
or such other committee of the Board as the Board may from time to time
designate (the “Committee”).  The
Committee shall be comprised of not less than such number of directors as shall
be required to permit awards granted under the Plan to qualify under Rule 16b-3
promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended, or any successor rule or regulation, and
no member of the Committee shall be an employee of the Company or an Affiliate
within the meaning of Rule 16b-3.

 

b.             Powers
and Duties.  The Committee shall have
the authority to make rules and regulations governing the administration
of the Plan; to select the Eligible Persons to whom awards shall be granted; to
determine the type, amount, size and terms of awards; to determine the time
when awards shall be granted; to determine whether any

 

 

restrictions shall be
placed on Shares purchased pursuant to any option or issued pursuant to any
award; and to make all other determinations necessary or advisable for the
administration of the Plan. The Committee’s determinations need not be uniform,
and may be made by it selectively among Eligible Persons, whether or not such
persons are similarly situated. All interpretations, decisions or
determinations made by the Committee with respect to the Plan shall be final
and conclusive.

 

3.             Eligibility;
Participants.

 

a.             Any
Eligible Persons who provide services to the Company or any of its Affiliates
shall be eligible to receive awards under the Plan. Eligible Persons may be
selected to receive awards individually or by group or category (for example,
by pay grade) as the Committee may determine. The selection of officers of the
Company to receive awards under the Plan and the terms of any award granted to
such officers shall be approved by the Committee. The Committee, in its sole
discretion, may delegate to one or more officers of the Company the authority
to select persons who are not officers of the Company to receive awards under
the Plan and to establish the terms of awards granted to such persons.

 

b.             A
person who has been granted an award under this Plan, or under any predecessor
plan, may be granted additional awards if the Committee shall so determine.
Except to the extent otherwise provided in the instrument evidencing an award,
the granting of an award under this Plan shall not affect any outstanding award
previously granted under this Plan or under any other plan of the Company or
any Affiliate.

 

c.             For
purposes of this Plan, the term “Affiliate” shall mean any “parent corporation”
or “subsidiary corporation” of the Company, as those terms are defined in
Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

4.             Awards.  The Committee may make awards to Eligible
Persons in the form of (i) stock options which are intended to qualify as “Incentive
Stock Options” within the meaning of Section 422 of the Code, or any
successor provision, (ii) stock options which are not intended to so
qualify (“Non-Qualified Options”), (iii) awards of restricted stock, or (iv) any
combination thereof.

 

5.             Stock
Options.  A stock option granted
pursuant to the Plan shall entitle the optionee, upon exercise, to purchase
Shares at a specified price during a specified period. Options shall be subject
to such terms and conditions as the Committee shall from time to time approve;
provided, that each such option shall be subject to the following requirements:

 

a.             Type
of Option.  Each option shall be
identified in the instrument pursuant to which it is granted as an Incentive
Stock Option or as a Non-Qualified Option, as the case may be.

 

 

b.             Term.  No option shall be exercisable more than ten
years after the date on which it is granted.

 

c.             Payment.  The purchase price of Shares subject to an
option (“Exercise Price”) shall be payable in full at the time the option is
exercised. Payment may be made in cash, in shares of Common Stock having an
aggregate fair market value on the date of exercise which is not less than the
Exercise Price, or by a combination of cash and such shares, as the Committee
may determine, and subject to such terms and conditions as the Committee deems
appropriate.

 

d.             Options
Not Transferable.  Except to the
extent permitted by the instrument evidencing such option, no option shall be
transferable by the optionee other than by will or by the laws of descent and
distribution. If, pursuant to the instrument evidencing any option, such option
remains exercisable after the optionee’s death, it may be exercised, to the
extent permitted by such instrument, by the personal representative of the
optionee’s estate or by any person who acquired the right to exercise such
option by bequest, inheritance or otherwise by reason of the optionee’s
death.  The Committee, in its discretion
and subject to such additional terms and conditions as it determines, may
permit an optionee to transfer a Non-Qualified Stock Option to any “family
member” (as such term is defined in the General Instructions to Form S-8
(or any successor to such Instructions or such Form) under the Securities Act
of 1933, as amended) at any time that such optionee holds such option, provided
that such transfers may not be for value (i.e.,
the transferor may not receive any consideration therefor) and the family
member may not make any subsequent transfers other than by will or by the laws
of descent and distribution.  No option
granted under the Plan may be pledged, alienated, attached or otherwise
encumbered, and any purported pledge, alienation, attachment or encumbrance
thereof shall be void and unenforceable against the Company.

 

e.             Incentive
Stock Options.  If an option is an
Incentive Stock Option, it shall be subject to the following additional
requirements:

 

i.              Incentive
Stock Options may be granted only to persons who are employees of the Company
or of an Affiliate.

 

ii.             The
Exercise Price of Shares that are subject to an Incentive Stock Option shall
not be less than 100% of the fair market value of such Shares on the date the
option is granted, as determined in good faith by the Committee.

 

iii.            The
aggregate fair market value (determined on the date the option is granted) of
the Shares with respect to which Incentive Stock Options are exercisable by the
optionee for the first time during any calendar year, under this Plan or any
other plan of the Company or any Affiliate, shall not exceed $100,000.

 

 

iv.            The
Exercise Price of Shares that are subject to an Incentive Stock Option granted
to an employee who, at the time such option is granted, owns 10% or more of the
total combined voting power of all classes of stock of the Company or of an
Affiliate shall not be less than 110% of the fair market value of such Shares
on the date such option is granted, and such option may not be exercisable more
than five years after the date on which it is granted. For the purposes of this
subparagraph, the rules of Section 424(d) of the Code shall
apply in determining the stock ownership of any employee.

 

Subject to the foregoing,
options may be made exercisable in one or more installments, upon the happening
of certain events, upon the fulfillment of certain conditions, or upon such
other terms and conditions as the Committee shall determine.

 

6.             Restricted
Stock.  Restricted stock awards
granted pursuant to the Plan shall entitle the holder to receive Shares, subject
to forfeiture if specified conditions are not satisfied at the end of a
specified period, and shall be subject to such additional terms and conditions
as the Committee shall from time to time approve; provided, that each
such award shall be subject to the following requirements:

 

a.             Restricted
Period.  The Committee shall
establish a period (the “Restricted Period”) at the time an award is granted
during which the holder will not be permitted to sell, transfer, assign, pledge
or otherwise encumber the Shares subject to the award. The Committee may
provide for the lapse of restrictions in installments, or upon the occurrence
of certain events, where deemed appropriate. Any attempt by a holder to dispose
of restricted Shares in a manner contrary to the applicable restrictions shall
be void and of no force and effect. 
Notwithstanding the foregoing, the Committee may, but is not obligated
to, permit acceleration of vesting of such awards in the event of the recipient’s
death, disability or retirement.

 

b.             Rights
During Restricted Period.  Except to
the extent otherwise provided in this Section 6 or under the terms of any
instrument, during the Restricted Period the holder of restricted Shares shall
have all of the rights of a shareholder in the Company with respect to such
Shares, including the right to vote the Shares and to receive dividends and
other distributions with respect to the Shares; provided, that all stock
dividends, stock rights and stock issued upon split-ups or reclassifications of
Shares shall be subject to the same restrictions as the Shares with respect to
which such stock dividends, rights, or additional stock are issued, and may be
held in custody as provided below in this Section 6 until the restrictions
thereon shall have lapsed.

 

c.             Forfeitures.  Except to the extent otherwise provided in
any restricted stock instrument, all Shares then subject to any restriction
shall be forfeited to the Company without further obligation of the Company to
the holder thereof, and all right of the holder with respect to such Shares
shall terminate, if the holder shall cease to provide

 

 

services to the Company
or its Affiliates, or if any condition established by the Committee for the
release of any restriction shall not have occurred, prior to the expiration of
the Restricted Period.

 

d.             Issuance
and Delivery of Shares.  A restricted
stock award under the Plan may be evidenced in such manner as the Committee may
deem appropriate, including book-entry registration or issuance of a stock
certificate or certificates, which certificate or certificates shall be held by
the Company.  The Committee may require
that the recipient of any restricted stock award deliver to the Company one or
more stock powers, endorsed in blank, relating to the restricted Shares as a
condition of receiving the award.  Such
certificate or certificates, if any, shall be registered in the name of the
recipient and shall bear an appropriate legend referring to the restrictions
applicable to such restricted stock. 
Shares representing restricted stock that is no longer subject to
restrictions shall be delivered to the recipient promptly after the applicable
restrictions lapse or are waived.

 

e.             Gifts,
Etc.  Notwithstanding any other
provision of this Section 6, the Committee may permit a gift of restricted
stock to the holder’s spouse, child, stepchild, grandchild, or legal dependent,
or to a trust whose sole beneficiary or beneficiaries shall be the holder
and/or any one or more of such persons; provided, that the donee shall have
entered into an agreement with the Company pursuant to which it agrees that the
restricted stock shall be subject to the same restrictions in the hands of such
donee as it was in the hands of the donor.

 

7.             Instruments.  Each award granted pursuant to the Plan shall
be evidenced by a written instrument or other document evidencing the award,
setting forth the terms and conditions upon which it is granted, and duly
executed on behalf of the Company and, if requested by the Company, signed by
the recipient. Multiple awards may be evidenced by a single instrument. Subject
to the limitations set forth in the Plan, the Committee may waive any
conditions of or rights of the Company under any outstanding award,
prospectively or retroactively.  Except
as otherwise provided herein or in an instrument evidencing an award, the
Committee may not amend, alter, suspend, discontinue or terminate any
outstanding award, prospectively or retroactively, if such action would
adversely affect the rights of the holder of such award, without the consent of
the holder or beneficiary thereof.

 

8.             Adjustments.  In the event of any change in the outstanding
shares of Common Stock by reason of any stock dividend or split,
recapitalization, reclassification, combination, or exchange of shares or other
similar corporate change, then if the Committee shall determine, in its sole
discretion, that such change necessarily or equitably requires an adjustment in
the maximum number of Shares subject to this Plan, or in the number of Shares
subject to an award, the Exercise Price or value of an outstanding award, such
adjustments shall be made by the Committee and shall be conclusive and binding
for all purposes of this Plan. No adjustment shall be made in connection with
the issuance by the Company of any shares of Common Stock, any warrants, rights
or options to acquire shares of Common Stock, or any securities convertible
into Common Stock.

 

 

9.             Merger,
Consolidation, Reorganization, Liquidation, etc.  Subject to the provisions of the instrument
evidencing any award, if the Company shall become a party to any corporate
merger, consolidation, major acquisition of property for stock, reorganization
or liquidation, the Board shall have the power to make any arrangement it deems
advisable with respect to outstanding awards and in the number of Shares
subject to this Plan, which shall be binding for all purposes of this Plan,
including, but not limited to, the substitution of new awards for any awards
then outstanding, the assumption of any such awards, and the termination of
such awards.

 

10.          Expenses
of Plan.  The expenses of
administering this Plan shall be borne by the Company and its Affiliates.

 

11.          Reliance
on Reports.  Each member of the
Committee and each member of the Board shall be fully justified in relying or
acting in good faith upon any report made by the independent public accountants
of the Company and its Affiliates and upon any other information furnished in
connection with this Plan by any person or persons other than himself. In no
event shall any person who is or shall have been a member of the Board or the
Committee be liable for any determination made or other action taken or omitted
in reliance upon any such report or information, or for any action taken or
omitted, including the furnishing of information, in good faith.

 

12.          Rights
as Shareholder.  Except to the extent
otherwise specifically provided hereon, no recipient of any award shall have
any rights as a shareholder with respect to Shares sold or issued pursuant to
the Plan until such shares have been issued to such person.

 

13.          General
Restrictions.  Each award granted
pursuant to the Plan shall be subject to the requirement that if, in the
opinion of the Board or the Committee, the listing, registration or
qualification of any Shares related thereto upon any securities exchange or
under any state or federal law, the consent or approval of any regulatory body,
or an agreement by the recipient with respect to the disposition of any such
Shares, is necessary or desirable as a condition of the issuance or sale of
such Shares, such award shall not be consummated unless and until such listing,
registration, qualification, consent, approval or agreement is effected or
obtained in form satisfactory to the Board or the Committee.

 

14.          Employment
Rights.  Nothing in this Plan, or in
any instrument issued hereunder, shall confer upon any person the right to
continue to provide services to the Company or an Affiliate as a director,
officer, employee, consultant or other service provider, or affect the right of
the Company or Affiliate to terminate such person’s service at any time, with
or without cause.

 

15.          Withholding.
 If the Company proposes or is
required to issue Shares pursuant to the Plan, it may require the recipient to
remit, or it may withhold from such award or from the recipient’s other
compensation, an amount, in the form of cash

 

 

or Shares, sufficient to
satisfy any applicable federal, state or local tax withholding requirements
prior to the delivery of any Shares.

 

16.          Amendments.  The Board may at any time, and from time to
time, amend the Plan in any respect, except that no amendment:

 

a.             materially
increasing the benefits accruing to participants under the Plan;

 

b.             increasing
the number of Shares available for issuance or sale pursuant to the Plan (other
than as permitted by Sections 8 and 9);

 

c.             materially
modifying the requirements as to eligibility for participation in the Plan;

 

shall be made without the
affirmative vote of the holders of at least a majority of the voting stock of
the Company.

 

17.          Shareholder
Approval.  The Plan is subject to
approval by the holders of at least a majority of the voting stock of the
Company, and any award granted under the Plan prior to the date of such
approval shall be contingent upon such approval.

 

18.          Effective
Date; Duration.  This Plan shall be
effective as of July 15, 2004, subject to shareholder approval of the Plan
as described above on or before August 31, 2004, 2004. No awards shall be
granted under the Plan after the earlier of (a) the date on which the Plan
is terminated by the Board; or (b) July 14, 2014. Awards outstanding
at the termination of the Plan may continue to be exercised in accordance with
their terms after such termination.EXHIBIT 4.1

 

GOLF
GALAXY, INC.

AMENDED
AND RESTATED

1996
STOCK OPTION AND INCENTIVE PLAN

 

The purpose of the Golf Galaxy, Inc. 1996 Stock
Option and Incentive Plan (the “Plan”) is to promote the growth and
profitability of Golf Galaxy, Inc. (the “Company”) and its Affiliates by
providing its employees, consultants and other service providers with an
incentive to achieve long-term corporate objectives, to attract and retain
persons of outstanding competence, and to provide such persons with an equity
interest in the Company.

 

1.             Stock Subject to Plan.  An aggregate of One Million (1,000,000) shares (the “Shares”) of the
Common Stock, par value $.01 per share, (“Common Stock”) of the Company may be
subject to awards granted under the Plan. 
Of such aggregate Plan limit, the maximum number of shares of Common
Stock that may be issued as Incentive Stock Options under the Plan shall be
limited to One Million (1,000,000) shares. 
The number of shares authorized for issuance under the Plan may be
increased from time to time by approval of the Board of Directors and, if
required pursuant to Rule 16b-3 under the Securities Exchange Act of 1934
or the applicable rules of any securities exchange or the NASD, the
shareholders of the Company.  Such Shares
may be authorized but unissued Common Stock or authorized and issued Common
Stock that has been or may be acquired by the Company.  Shares that are subject to an award which
expires or is terminated unexercised, or which are reacquired by the Company
upon the forfeiture of restricted Shares, shall again be available for issuance
under the Plan.

 

2.                                       Administration.

 

a.             Board of
Directors or Committee.  The
Plan shall be administered by the Board of Directors (the “Board”) or a
Compensation Committee established by the Board of Directors (the “Committee”).  Any such Committee may be comprised of the
entire Board or, if the Board so determines, of two or more members of the
Board.

 

b.             Powers and
Duties.  The Board or
Committee shall have the authority to make rules and regulations governing
the administration of the Plan; to select the eligible employees, consultants
and other service providers to whom awards shall be granted; to determine the
type, amount, size, and terms of awards; to determine the time when awards
shall be granted; to determine whether any restrictions shall be placed on
Shares purchased pursuant to any option or issued pursuant to any award; and to
make all other determinations necessary or advisable for the administration of
the Plan.  The Board or Committee’s
determinations need not be uniform, and may be made by it selectively among
persons who are eligible to receive awards under the Plan, whether or not such
persons are similarly situated.  All
interpretations, decisions, or determinations made by the Board or Committee
pursuant to the Plan shall be final and conclusive.

 

 

3.                                      Eligibility;
Participants.

 

a.             Any persons who provides services
to the Company or any of its Affiliates as an employee, consultant or other
service provider shall be eligible to receive awards under the Plan.  Eligible persons may be selected to receive
awards individually or by group or category (for example, by pay grade) as the
Board or Committee may determine.  The
selection of officers of the Company to receive awards under the Plan and the
terms of any award granted to such officers shall be approved by the Board or
Committee.  The Board or Committee, in
its sole discretion, may delegate to one or more officers of the Company the
authority to select persons who are not officers to receive awards under the
Plan and to establish the terms of awards granted to such persons.

 

b.             A person who has been granted an
award under this Plan, or under any predecessor plan, may be granted additional
awards if the Board or Committee shall so determine.  Except to the extent otherwise provided in
the agreement evidencing an award, the granting of an award under this Plan
shall not affect any outstanding award previously granted under this Plan or
under any other plan of the Company or any Affiliate.

 

c.             For purposes of this Plan, the term
“Affiliate” shall mean any “parent corporation” 
or “subsidiary corporation” of the Company, as those terms are defined
in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986,
as amended.

 

4.             Awards.  The Board or Committee may make
awards to eligible persons in the form of stock options which are intended to
qualify as “Incentive Stock Options” within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended, or stock options which are not
intended to so qualify (“Non-qualified Options”), or awards of restricted
stock, or any combination thereof.

 

5.             Stock Options.  A stock option granted pursuant to the Plan
shall entitle the optionee, upon exercise, to purchase Shares at a specified
price during a specified period.  Options
shall be subject to such terms and conditions as the Board or Committee shall
from time to time approve; provided, that each option shall be subject
to the following requirements:

 

a.             Type of
Option.  Each option shall be
identified in the agreement pursuant to which it is granted as an Incentive
Stock Option or as a Non-qualified Option, as the case may be.

 

b.             Term.  No option shall be exercisable
more than 121 months after the date on which it is granted.

 

c.             Payment.  The purchase price of Shares
subject to an option shall be payable in full at the time the option is
exercised.  Payment may be made in cash,
in shares of Common Stock having an aggregate fair market value on the date of
exercise which is not less than the option price, or by a combination of cash
and such shares, as the Board or

 

 

Committee may determine,
and subject to such terms and conditions as the Board or Committee deem
appropriate.

 

d.             Options Not
Transferable.  Options shall
not be transferable except to the extent permitted by the agreement evidencing
such option; provided, that in no event shall any option be transferable
by the optionee, other than by will or the laws of descent and
distribution.  Options shall be exercised
during an optionee’s lifetime only by such optionee.  If, pursuant to the agreement evidencing any
option, such option remains exercisable after the optionee’s death, it may be
exercised, to the extent permitted by such agreement, by the personal
representative of the optionee’s estate or by any person who acquired the right
to exercise such option by bequest, inheritance, or otherwise by reason of the
optionee’s death.

 

e.             Incentive
Stock Options.  If an option
is an Incentive Stock Option, it shall be subject to the following additional
requirements:

 

i.              Incentive Stock Options may be
granted only to persons who are employees of the Company or of an Affiliate.

 

ii.             The purchase price of Shares that
are subject to an Incentive Stock Option shall not be less than 100% of the
fair market value of such Shares at the time the option is granted, as
determined in good faith by the Board or Committee.

 

iii.            The aggregate fair market value
(determined at the time the option is granted) of the Shares with respect to
which Incentive Stock Options are exercisable by the optionee for the first
time during any calendar year, under this Plan or any other plan of the Company
or any Affiliate, shall not exceed $100,000.

 

iv.            An Incentive Stock Option shall not
be exercisable more than ten years after the date on which it is granted.

 

v.             The purchase price of Shares that
are subject to an Incentive Stock Option granted to an employee who, at the
time such option is granted, owns 10% or more of the total combined voting
power of all classes of stock of the Company or of an Affiliate shall not be
less than 110% of the fair market value of such Shares on the date such option
is granted, and such option may not be exercisable more than five years after
the date on which it is granted.  For the
purposes of this subparagraph, the rules of Section 424(d) of
the Code shall apply in determining the stock ownership of any employee.

 

Subject to the forgoing,
options may be made exercisable in one or more installments, upon the happening
of certain events, upon the fulfillment of certain conditions, or upon such
other terms and conditions as the Board or Committee shall determine.

 

6.             Restricted Stock.  Restricted stock awards granted
pursuant to the Plan shall entitle the holder to receive Shares,

 

 

subject to forfeiture if
specified conditions are not satisfied at the end of a specified period.  Restricted stock awards shall be subject to
such terms and conditions as the Board or Committee shall from time to time
approve; provided, that each award shall be subject to the following
requirements:

 

a.             Restricted
Period.  The Board or
Committee shall establish a period (the “Restricted Period”) at the time an
award is granted during which the holder will not be permitted to sell,
transfer, pledge, encumber, or assign the Shares subject to the award.  The Board or Committee may provide for the
lapse of restrictions in installments, or upon the occurrence of certain
events, where deemed appropriate.  Any
attempt by a holder to dispose of restricted Shares in a manner contrary to the
applicable restrictions shall be void, and of no force and effect.

 

b.             Rights
During Restricted Period.  Except
to the extent otherwise provided in this paragraph 6 or under the terms of any
restricted stock agreement, during the Restricted Period the holder of
restricted Shares shall have all of the rights of a shareholder in the Company
with respect to such Shares, including the right to vote the Shares and to
receive dividends and other distributions with respect to the Shares; provided,
that all stock dividends, stock rights, and stock issued upon split-ups or
reclassifications of Shares shall be subject to the same restrictions as the
Shares with respect to which such stock dividends, rights, or additional stock
are issued, and may be held in custody as provided below in this paragraph 6
until restrictions thereon shall have lapsed.

 

c.             Forfeitures.  Except to the extent otherwise
provided in the restricted stock agreement, all Shares then subject to any
restriction shall be forfeited to the Company without further obligation of the
Company to the holder thereof, and all rights of the holder with respect to
such Shares shall terminate, if the holder shall cease to provide services to
the Company and its Affiliates as an employee, consultant or other service
provider, or if any condition established by the Board or Committee for the
release of any restriction shall not have occurred, prior to the expiration of
the Restricted Period.

 

d.             Custody.  The Board or Committee may provide
that the certificates evidencing restricted Shares shall be held in custody by
a bank or other institution, or by the Company or any Affiliate, until the
restrictions thereon have lapsed, and may require that the holder of any
restricted Shares shall have delivered to the Company one or more stock powers,
endorsed in blank, relating to the restricted Shares as a condition of
receiving the award.

 

e.             Certificates.  A recipient of a restricted stock
award shall be issued a certificate or certificates evidencing the Shares
subject to such award.  Such certificates
shall be registered in the name of the recipient, and may bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such
award, which legend shall be in substantially the following form:

 

 

“The transferability of this certificate and the
shares represented hereby are subject to the terms and conditions (including
forfeiture) of the Golf Galaxy, Inc. 1996 Stock Option and Incentive Plan
and an Agreement entered into between the registered owner and Golf Galaxy, Inc.  Copies of such Plan and Agreement are on file
in the stores of Golf Galaxy, Inc.”

 

f.              Gifts,
Etc.  Notwithstanding any
other provision of this paragraph 6, the Board or Committee may permit a gift
of restricted stock to the holder’s spouse, child, stepchild, grandchild, or
legal dependent, or to a trust whose sole beneficiary or beneficiaries shall be
the holder and/or any one or more of such persons; provided, that the
donee shall have entered into an agreement with the Company pursuant to which
it agrees that the restricted stock shall be subject to the same restrictions
in the hands of such donee as it was in the hands of the donor.

 

7.             Agreements.  Each option or award granted pursuant to the
Plan shall be evidenced by an agreement setting forth the terms and conditions
upon which it is granted.  Multiple
options or awards may be evidenced by a single agreement.  Subject to the limitations set forth in the
Plan, the Board or Committee may, with the consent of the person to whom an
award has been granted, amend any such agreement to modify the terms or
conditions governing the award evidenced thereby.

 

8.             Adjustments.  In the event of any change in the outstanding
Shares of Common Stock by reason of any stock dividend or split,
recapitalization, reclassification, combination, or exchange of Shares or other
similar corporate change, then if the Board or Committee shall determine, in
its sole discretion, that such change necessarily or equitably requires an
adjustment in the number of Shares subject to an award, in the option price or
value of an award, or in the maximum number of Shares subject to this Plan,
such adjustments shall be made by the Board or Committee and shall be
conclusive and binding for all purposes of this Plan.  No adjustment shall be made in connection
with the issuance by the Company of any warrants, rights, or options to acquire
additional Common Stock or of securities convertible into Common Stock.

 

9.             Merger, Consolidation,
Reorganization, Liquidation, etc.  Subject
to the provisions of the agreement evidencing any award, if the Company shall
become a party to any corporate merger, consolidation, major acquisition of
property for stock, reorganization, or liquidation, the Board of Directors of
the Company shall have the power to make any arrangement it deems advisable
with respect to outstanding awards and in the number of Shares subject to this
Plan, which shall be binding for all purposes of this Plan, including, but not
limited to, the substitution of new awards for any awards then outstanding, the
assumption of any such awards, and the termination of such awards.

 

10.           Expenses of Plan.  The expenses of administering this Plan shall
be borne by the Company and its Affiliates.

 

11.           Reliance on Reports.  Each member of the Board or
Committee and each member of the Board of Directors shall

 

 

be fully justified in
relying or acting in good faith upon any report made by the independent public
accountants of the Company and its Affiliates and upon any other information
furnished in connection with this Plan by any person or persons other than
himself.  In no event shall any person
who is or shall have been a member of the Board or Committee or of the Board of
Directors be liable for any determination made or other action taken or omitted
in reliance upon any such report or information, or for any action taken or
omitted, including the furnishing of information, in good faith.

 

12.           Rights as
Shareholder.  Except to the
extent otherwise specifically provided hereon, no recipient of any award shall
have any rights as a shareholder with respect to Shares sold or issued pursuant
to the Plan until certificates for such shares have been issued to such person.

 

13.           General Restrictions.  Each award granted pursuant to the
Plan shall be subject to the requirement that if, in the opinion of the Board
or Committee, the listing, registration, or qualification of any Shares related
thereto upon any securities exchange or under any state or federal law, the
consent or approval of any regulatory body, or an agreement by the recipient
with respect to the disposition of any such Shares, is necessary or desirable
as a condition of the issuance or sale of such Shares, such award shall not be
consummated unless and until such listing, registration, qualification,
consent, approval, or agreement is effected or obtained in form satisfactory to
the Board or Committee.

 

14.           Employment Rights.  Nothing in this Plan, or in any agreement
entered into hereunder, shall confer upon any person the right to continue to
provide services to the Company or an Affiliate as an employee, consultant, or
other service provider, or affect the right of the Company or Affiliate to
terminate such person’s service at any time, with or without cause.

 

15.           Withholding.  If the Company proposes or is
required to issue Shares pursuant to the Plan, it may require the recipient to
remit it, or may withhold from such award or from the recipient’s other
compensation, an amount, in the form of cash or Shares, sufficient to satisfy
any applicable federal, state, or local tax withholding requirements prior to
the delivery of any certificates for such Shares.

 

16.           Amendments.  The Board of Directors of the Company may at
any time, and from time to time, amend the Plan in any respect, except that no
amendment that would:

 

a.                                       materially
increase the benefits accruing to participants under the Plan;

 

b.             increase the number of Shares
available for issuance or sale pursuant to the Plan (other than as permitted by
paragraphs 8 and 9); or

 

c.                                       materially
modify the requirements as to eligibility for participation in the Plan;

 

shall be made without the
affirmative vote of shareholders holding at least a majority of the voting

 

 

stock of the Company
represented in person or by proxy at a duly held shareholders’ meeting.

 

17.           Shareholder Approval.  The Plan shall be subject to approval by the shareholders
holding at least a majority of the voting stock of the Company represented in
person or by proxy and voting thereon at a duly held shareholders’ meeting, and
any award granted under the Plan prior to the date of such approval shall be
contingent upon such approval.

 

18.           Effective Date;
Duration.  This Plan shall be
effective as of October 30, 1996, subject to shareholder approval of the
Plan as described above on or before October 30, 1997.  No options or rights shall be granted under
the Plan after the earlier of (a) the date on which the Plan is terminated
by the Board of Directors of the Company; or (b) October 30,
2006.  Options or rights outstanding at
the termination of the Plan may continue to be exercised in accordance with
their terms after such termination.

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