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EXHIBIT 10.10  

 
 

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. 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 

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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. 

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        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 

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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 

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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. 

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        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); 

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        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. 

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Exhibit 10.11  

 
 

GOLF GALAXY, INC.
  2004 STOCK INCENTIVE PLAN
  FORM OF
  INCENTIVE STOCK OPTION AGREEMENT    
    

	OPTIONEE:	 	«FirstName» «LastName»
	

GRANT DATE:	
 	

August 3, 2004
	

NUMBER OF OPTION SHARES:	
 	

«NumberofShares»Shares
	

OPTION PRICE PER SHARE:	
 	

$6.30 per Share
	

EXPIRATION DATE:	
 	

August 3, 2014

        THIS
AGREEMENT is made as of the Grant Date set forth above, by and between Golf Galaxy, Inc., a Minnesota corporation (the "Company"), and the Optionee named above, who is an
employee of the Company or a Subsidiary of the Company (the "Optionee"). 

        The
Company desires, by affording the Optionee an opportunity to purchase shares of its Common Stock, par value $.01 per share (the "Common Stock"), as hereinafter provided, to carry out
the purpose of the Golf Galaxy, Inc. 2004 Stock Incentive Plan (the "Option Plan"). 

        NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereby agree as follows: 

        1.     Grant
of Option. The Company hereby grants to the Optionee the right and option to purchase all or any part of the aggregate number of shares of Common Stock set forth
above (the "Option Shares") (such number being subject to adjustment as provided in paragraph 8 hereof) on the terms and subject to the conditions set forth in this Agreement. This option is
intended to be an "incentive stock option" within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 

        2.     Purchase
Price. The purchase price of the Option Shares shall be the Option Price per share set forth above (such Option Price being subject to adjustment as provided in
paragraph 8 hereof). 

        3.     Term
and Exercise of Option. 

        (a)   The
term of this option shall commence on the Grant Date set forth above and shall continue until the Expiration Date set forth above, unless earlier terminated as
provided herein. 

 

        (b)   Except
as otherwise provided herein, this option will be exercisable in cumulative installments as follows: 

        (i)    None
of the Option Shares may be purchased prior to one year from the Grant Date; 

        (ii)   Up
to 25% of the Option Shares may be purchased at any time after one year from the Grant Date and prior to termination of this option; 

        (iii)  Up
to 50% of the Option Shares (less any shares previously purchased pursuant to this option) may be purchased at any time after two years from the Grant Date and
prior to termination of this option; 

        (iv)  Up
to 75% of the Option Shares (less any shares previously purchased pursuant to this option) may be purchased at any time after three years from the Grant Date and
prior to termination of this option; and 

        (v)   Up
to 100% of the Option Shares (less any shares previously purchased pursuant to this option) may be purchased at any time after four years from the Grant Date and
prior to termination of this option. 

        (c)   To
exercise this option, the Optionee shall give written notice to the Company, to the attention of its President or other designated agent, in form satisfactory to the
Company and shall deliver payment in full for the Option Shares with respect to which this option is then being exercised, as provided in paragraph 4(b) below. 

        (d)   Neither
the Optionee nor the Optionee's heirs or legal representatives, as the case may be, will be, or will be deemed to be, a holder of any Option Shares for any
purpose unless and until certificates for such shares are issued to the Optionee or the Optionee's heirs or legal representatives under the terms of the Option Plan. 

        4.     Limitations
on Exercise of Option. 

        (a)   Except
as provided in paragraph 6(a) or 7 below, this option may not be exercised unless the Optionee, at all times during the period beginning on the Grant Date
and ending on the day three months before the date of such exercise, shall have been continuously employed by the Company or a Subsidiary of the Company. 

        (b)   The
exercise of this option will be contingent upon receipt from the Optionee (or the purchaser acting under paragraph 7 below) of the full Option Price of such
Option Shares. Payment of the Option Price may be made in cash, in previously-acquired 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 of Common Stock. For purposes of this Agreement, "previously-owned shares" means shares of the Company's Common Stock which the Optionee has
owned for at least six (6) months prior to the exercise of the stock 

2

 

option,
or for such other period of time as may be required by generally accepted accounting principles. 

        (c)   The
issuance of Option Shares upon the exercise of this option shall be subject to all applicable laws, rules, and regulations. If, in the opinion of the Board of
Directors of the Company or a Stock Option Committee of the Board of Directors, (i) the listing, registration, or qualification of the Option Shares upon any securities exchange or under any
state or federal law, (ii) the consent or approval of any regulatory body, or (iii) an agreement of the Optionee that the Option Shares shall be held for Optionee's own account without a
view to any further distribution thereof and that such Option Shares will not be transferred or disposed of except in compliance with applicable securities laws, is necessary or desirable as a
condition to the issuance or sale of the Option Shares, this option shall not be exercisable unless and until such listing, registration, qualification, consent, approval or agreement is effected or
obtained in form satisfactory to the Stock Option Committee. 

        5.     Nontransferability
of Option. This option shall not be transferable by the Optionee, other than by will or the laws of descent and distribution. During the lifetime of
the Optionee, this option shall be exercisable only by the Optionee. 

        6.     Termination
of Employment. 

        (a)   If
the Optionee shall cease to be employed by the Company or a Subsidiary of the Company as a result of permanent and total disability (as defined in Code
Section 22(e)(3), or any successor provision), this option will become exercisable in full on the date of termination of employment and may be exercised within a period of one year after such
termination of employment, but in no case later than the Expiration Date set forth above. 

        (b)   If
the Optionee shall cease to be employed by the Company or a Subsidiary of the Company for any reason other than death or permanent and total disability (as defined in
Code Section 22(e)(3), or any successor provision), this option may be exercised, to the extent the Optionee shall have been entitled to do so at the date of termination of employment, within a
period of three months after such termination of employment, but in no case later than the Expiration Date set forth above. 

        (c)   This
option will not confer upon the Optionee any right with respect to continuance of employment by the Company or a Subsidiary of the Company, nor will it interfere in
any way with the Company's right or the Subsidiary's right to terminate the Optionee's employment at any time. 

        7.     Death
of Optionee. In the event of the death of the Optionee while in the employ of the Company or a Subsidiary of the Company, this option will become exercisable in
full at the date of death and may be exercised within a period of one year after the date of death, but in no case later than the Expiration Date set forth above. In such event, this option shall be
exercisable only by the executors or administrators of the Optionee or by the person or persons to whom the Optionee's rights under the option shall pass by the Optionee's will or the laws of descent
and distribution. 

3

 

        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 of Directors or the Stock Option Committee shall determine, in its sole discretion, that such change necessarily
or equitably requires an adjustment in the number of Option Shares or in the Option Price per share, such adjustments shall be made by the Company and shall be conclusive and binding for all purposes
of this option. 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. Further, no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions or other rights for which the record date is
prior to the date such shares are issued, except as otherwise provided in this paragraph 8. 

        9.     Merger,
Consolidation, Reorganization, Liquidation, etc. Subject to the other provisions of this option, if the Company shall become a party to any corporate merger or
consolidation in which the Company is not the surviving party, or shall sell all or substantially all of its assets (including pursuant to a plan of liquidation), or in the case of a capital
reorganization or reclassification of the shares of the Company, the Board of Directors of the Company shall have the power to make any arrangement it deems advisable with respect to this option and
the number of Shares subject to this option, which shall be binding for all purposes of this option, including, but not limited to, the substitution of a new option for this option or any portion
hereof that is then outstanding, the assumption of this option, or the acceleration of the exercisability of this option. 

        10.   Interpretation.
The interpretation and construction of any provision of the Option Plan and this option shall be made by the Board of Directors or the Stock Option
Committee and shall be final, conclusive and binding on the Optionee and all other persons. 

        11.   Subsidiary.
The term "Subsidiary" as used in the Option Plan and in this Option Agreement means a subsidiary corporation, at least 50% of the outstanding voting stock or
voting power of which is beneficially owned, directly or indirectly, by the Company. 

        12.   Withholding
Taxes on Disqualifying Disposition. In the event of a disqualifying disposition of the shares acquired through the exercise of this Option, Optionee hereby
agrees to inform the Company of such disposition. Upon notice of a disqualifying disposition, the Company may take such action as it deems appropriate to insure that, if necessary to comply with all
applicable federal or state income tax laws or regulations, all applicable federal and state payroll, income or other taxes are withheld from any amounts payable by the Company to Optionee. If the
Company is unable to withhold such federal and state taxes, for whatever reason, Optionee hereby agrees to pay to the Company an amount equal to the amount the Company would otherwise be required to
withhold under federal or state law. Optionee may, subject to the approval and discretion of the Board or such administrative rules it may deem advisable, elect to have all or a portion of such tax
withholding obligations satisfied by delivering shares of the Company's Common Stock or by electing to have the Company withhold shares of Common Stock otherwise issuable to Optionee. Such shares
shall have a Fair Market Value equal to the minimum required 

4

 

tax
withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from the
disqualifying disposition of the shares acquired through the exercise of this Option. In no event may the Company withhold shares having a Fair Market Value in excess of such statutory minimum
required tax withholding. 

        13.   Lockup
Period Limitation. Optionee agrees that in the event the Company advises Optionee that it plans an underwritten public offering of its Common Stock in compliance
with the Securities Act of 1933, as amended, and that the underwriter(s) seek to impose restrictions under which certain shareholders may not sell or contract to sell or grant any option to buy or
otherwise dispose of part or all of their stock purchase rights or the underlying Common Stock, Optionee hereby agrees that for a period not to exceed 180 days from the date of the prospectus,
Optionee will not sell or contract to sell or grant an option to buy or otherwise dispose of this option or any of the underlying shares of Common Stock without the prior written consent of the
underwriter(s) or its representative(s). 

        14.   Blue
Sky Limitation. Notwithstanding anything in this Agreement to the contrary, in the event the Company makes any public offering of its securities and determines in
its sole discretion that it is necessary to reduce the number of issued but unexercised stock purchase rights so as to comply with any state securities or Blue Sky law limitations with respect
thereto, the Board of Directors of the Company shall have the right (i) to accelerate the exercisability of this Option and the date on which this Option must be exercised, provided that the
Company gives Optionee 15 days' prior written notice of such acceleration, and (ii) to cancel any portion of this Option or any other option granted to Optionee pursuant to the Plan
which is not exercised prior to or contemporaneously with such public offering. Notice shall be deemed given when delivered personally or when deposited in the United States mail, first class postage
prepaid and addressed to Optionee at the address of Optionee on file with the Company. 

        15.   Accounting
Compliance. Optionee agrees that, if a merger, reorganization, liquidation or other "transaction" as defined in paragraph 9 occurs and Optionee is an
"affiliate" of the Company or any Subsidiary (as defined in applicable legal and accounting principles) at the time of such transaction, Optionee will comply with all requirements of Rule 145
of the Securities Act of 1933, as amended, and the requirements of such other legal or accounting principles, and will execute any documents necessary to ensure such compliance. 

        16.   Stock
Legend. The Board may require that the certificates for any shares of Common Stock purchased by Optionee (or, in the case of death, Optionee's successors) shall
bear an appropriate legend to reflect the restrictions of paragraph 4(c) and paragraphs 13 through 15 of this Agreement. 

        17.   Scope
of Agreement. This Agreement shall bind and inure to the benefit of the Company and its successors and assigns and Optionee and any successor or successors of
Optionee permitted by paragraph 5 above. 

        18.   Arbitration.
Any dispute arising out of or relating to this Agreement or the alleged breach of it, or the making of this Agreement, including claims of fraud in the
inducement, shall be 

5

 

discussed
between the disputing parties in a good faith effort to arrive at a mutual settlement of any such controversy. If, notwithstanding, such dispute cannot be resolved, such dispute shall be
settled by binding arbitration. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall be a retired state or federal judge or
an attorney who has practiced securities or business litigation for at least 10 years. If the parties cannot agree on an arbitrator within 20 days, any party may request that the chief
judge of the District Court for Hennepin County, Minnesota, select an arbitrator. Arbitration will be conducted pursuant to the provisions of this Agreement, and the commercial arbitration rules of
the American Arbitration Association, unless such
rules are inconsistent with the provisions of this Agreement. Limited civil discovery shall be permitted for the production of documents and taking of depositions. Unresolved discovery disputes may be
brought to the attention of the arbitrator who may dispose of such dispute. The arbitrator shall have the authority to award any remedy or relief that a court of this state could order or grant;
provided, however, that punitive or exemplary damages shall not be awarded. The arbitrator may award to the prevailing party, if any, as determined by the arbitrator, all of its costs and fees,
including the arbitrator's fees, administrative fees, travel expenses, out-of-pocket expenses and reasonable attorneys' fees. Unless otherwise agreed by the parties, the place
of any arbitration proceedings shall be Hennepin County, Minnesota. 

        19.   Option
Plan Governs. This option is in all respects subject to and governed by all of the provisions of the Option Plan. 

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed in its corporate name by its duly authorized officer, and the Optionee has executed this Agreement as of the
Grant Date set forth above. 

	

COMPANY:	
 	

GOLF GALAXY, INC.
	

 	

 	

 	

 
	

 	

 	

By:	

 Randall K. Zanatta

President
	

OPTIONEE:	

 	

 	

 
	

 	
 	

 «FirstName» «LastName»

6

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GOLF GALAXY, INC. 2004 STOCK INCENTIVE PLAN FORM OF INCENTIVE STOCK OPTION AGREEMENT

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