Document:

Exhibit
10.3

AMENDED
AND RESTATED

EMPLOYMENT AGREEMENT

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”)
is made and entered into this 9th day of October, 2006 by and between Golf
Galaxy, Inc. (the “Company”) and Gregory B. Maanum (the “Executive”).

WITNESSETH:

WHEREAS, the Company has
retained the services of Executive pursuant to the terms of that certain
Employment Agreement between Company and Executive dated December 31, 1997 (the
“1997 Employment Agreement”);

WHEREAS, the Company desires to
amend the terms of Executive’s employment pursuant to the terms of this
Agreement; and

WHEREAS, following execution of
this Agreement, the 1997 Employment Agreement shall terminate and be of no
further force or effect.

NOW, THEREFORE, in consideration
of the mutual covenants contained herein, the sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

ARTICLE
I.

EMPLOYMENT AND TERM

1.1           EMPLOYMENT.  Upon the terms and subject to the conditions
herein contained, the Company hereby employs Executive as Chief Operating
Officer or in such other capacity as may be determined from time to time by the
Board of Directors of the Company (the “Board”), and Executive hereby accepts
such employment.

1.2           TERM.  Except as otherwise provided in this
Agreement, the term (the “Term”) of this Agreement shall commence as of the
date hereof and shall continue until this Agreement is terminated by either
party pursuant to the terms hereof.

ARTICLE
II.

COMPENSATION

2.1           SALARY.  As compensation for his services to the
Company and as compensation for his confidentiality, non-competition and
non-solicitation agreement provided in Article 3 of this Agreement, Executive
shall receive an annual salary in the amount of Two Hundred Sixty Thousand
Dollars ($260,000) (the “Salary”) payable on a pro rata, bi-weekly basis.  The Salary shall be reviewed by the Board on
the first business day of each fiscal year occurring during the Term (the “Review
Date”), the first such review to take place on March 1, 2007 and the Board may
(but shall not be obligated to) increase or decrease said salary as of the
Review Date by such amount as the Board deems appropriate.

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2.2           BENEFITS.  Except as the Board may otherwise provide,
Executive shall be entitled to participate in any retirement savings plan,
profit sharing plan, life insurance, health insurance, dental insurance,
disability insurance or any other fringe benefit plan which the Company may
from time to time make available to its salaried senior executives to the
extent that Executive’s age, tenure and title make him eligible to receive
those benefits.

Any
of such benefits may be modified or withdrawn by the Company in its discretion
during the Term to the extent the same are withdrawn or modified or
supplemented for other employees similarly situated.

2.3           DISCRETIONARY BONUS.  Executive may from time to time receive a
bonus in the sole discretion of the Board.

2.4           PAID TIME OFF.  Executive shall be entitled to twenty (20)
days Paid Time Off (PTO) per calendar year, which shall be prorated during any
partial year during the Term. Any additional PTO that is unused as of the last
day of the calendar year shall be forfeited. Any unused PTO shall be paid to
Executive at termination.

2.5           EXPENSES.  The Company shall reimburse Executive for all
reasonable expenses properly incurred by Executive in the discharge of his
duties hereunder upon production of evidence therefor.

2.6           CELL PHONE.  Executive will be issued a Company-owned cell
phone for his business and personal use during the Term of this Agreement.  Executive agrees to immediately discontinue
use and return such cell phone upon termination of this Agreement.

ARTICLE
III.

DUTIES OF EXECUTIVE

3.1           SERVICES; DUTIES.  Executive shall have the normal duties,
responsibilities and authority of a Chief Operating Officer, subject to the
power of the Board to expand or limit such duties, responsibilities and
authority.  Executive shall devote
Executive’s full time and best efforts to the business of the Company.  Executive shall perform the duties and
obligations required of Executive hereunder in a competent, efficient and
satisfactory manner at such hours and under such conditions as the performance
of such duties and obligations may require.

3.2           CONFIDENTIALITY AND
LOYALTY.  Executive
acknowledges that, during the course of Executive’s employment Executive will
produce and have access to trade secrets, materials, records, data and
information not generally available to the public regarding the Company, its
customers and affiliates (collectively “Confidential Information”).  Accordingly, during and subsequent to the
termination of this Agreement, Executive shall hold in confidence and not ,
directly or indirectly disclose, use, copy or make lists of any Confidential
Information, except to the extent authorized in writing by the Company, or as
required by law or any competent administrative agency or as otherwise is
reasonably necessary or appropriate in connection with the performance by
Executive of his duties pursuant to this Agreement.  Upon termination of Executive’s employment
for any reason, Executive shall promptly deliver to the Company (i) all
records, manuals, books, documents, client lists, letters, reports, data,
tables, calculations and all copies of any of the foregoing which are the
property of the Company or

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which relate in
any way to the business or practices of the Company, and (ii) all other
property of the Company and Confidential Information which in any of these
cases are in his possession or under his control.

3.3           NON-COMPETITION AND
NON-SOLICITATION.

(a)           In further consideration of the
compensation to be paid to Executive hereunder, Executive acknowledges that
during the course of his employment with the Company he has become familiar
with the Company’s trade secrets and with other Confidential Information concerning
the Company and that his services have been and shall be of special, unique and
extraordinary value to the Company, and therefore, Executive agrees that,
during the Term and for a period of eighteen (18) months thereafter (the “Noncompete
Period”), he shall not, without the Company’s prior written consent, directly
or indirectly, own, manage, operate, join, control or participate in the
ownership, management, operation or control of, or be connected as a director,
officer, employee, partner, consultant or otherwise with, any business or
organization in the United States, Canada or Mexico that sells or markets golf
equipment, apparel, accessories or services directly to consumers, whether
through retail or direct marketing channels, including, but not limited to
catalogs and the internet (a “Competitive Business”); provided, however, that
nothing herein shall prohibit Executive from (i) being a passive owner of not
more than 2% of the outstanding stock of any class of a corporation which is
publicly traded, so long as Executive has no active participation in the
business of such corporation; or (ii) becoming involved with a business or
organization for which activities comprising a Competitive Business do not
represent  more than $10 million in
revenues or more than 10% of such business or organization’s total revenues.
If, at the time of enforcement of this Article 3, a court shall hold that the
duration, scope or area restrictions stated herein are unreasonable under
circumstances then existing, the parties agree that the maximum duration, scope
or area reasonable under such circumstances shall be substituted for the stated
duration, scope or area and that the court shall be allowed to revise the
restrictions contained herein to cover the maximum period, scope and area
permitted by law.  Executive acknowledges
that the restrictions contained in this Article 3 are reasonable and that he
has reviewed the provisions of this Agreement with his legal counsel

(b)           During the Term and for a period of
two (2) years thereafter (the “Non-Solicit Period”), Executive shall not
directly or indirectly through another person or entity (i) induce or attempt
to induce any employee of the Company to leave the employ of the Company, or in
any way interfere with the relationship between the Company and any
employeethereof, (ii) hire any person who was an employeeof the Company at any
time during the Term or (iii) induce or attempt to induce any customer,
supplier, licensee, licensor, franchisee or other business relation of the
Company to cease doing business with the Company, or in any way interfere with
the relationship between any such customer, supplier, licensee or business
relation and the Company (including, without limitation, making any negative or
disparaging statements or communications regarding the Company).

(c)           In the event of the breach or a
threatened breach by Executive of any of the provisions of this Section 3.3(c),
the Company would suffer irreparable harm, and in addition and supplementary to
other rights and remedies existing in its favor, the Company shall be entitled
to specific performance and/or injunctive or other equitable relief from a
court of competent jurisdiction in order to enforce or prevent any violations
of the provisions hereof

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(without posting a bond
or other security).  In addition, in the
event of an alleged breach or violation by Executive of this Article III, the
Noncompete Period and the Non-Solicit Period shall be tolled until such breach
or violation has been duly cured.

3.4                           PATENT AND
RELATED MATTERS.

(a)           Disclosure and Assignment.  Executive agrees to promptly disclose in
writing to the Company complete information concerning each and every
invention, discovery, improvement, device, design, apparatus, practice,
process, method or product, whether patentable or not, made, developed,
perfected, devised, conceived or first reduced to practice by Executive, either
solely or in collaboration with others, during the term of this Agreement, or
within six (6) months thereafter, whether or not during regular working hours,
relating either directly or indirectly to the business, products, practices or
techniques of the Company (hereinafter referred to as “Developments”).  Executive,
to the extent that he has the legal right to do so, hereby acknowledges that
any and all of said Developments are the property of the Company and hereby
assigns and agrees to assign to the Company any and all of Executive’s right,
title and interest in and to any and all of such Developments.

(b)           Future Developments.  As to any future Developments made by
Executive which relate to the business, products or practices of the Company
and which are first conceived or reduced to practice during the term of this
Agreement, but which are claimed for any reason to belong to an entity or
person other than the Company, Executive agrees to promptly disclose the same
in writing to the Company and shall not disclose the same to others if the
Company, within twenty (20) days thereafter, shall claim ownership of such
Developments under the terms of this Agreement.

(c)           Limitation on Sections 3.4(a) and
(b).  The provisions of Sections
3.4(a) and (b) shall not apply to any Development meeting the following
conditions:

(i)            such Development was developed
entirely on Executive’s own time;

(ii)           such Development was made without the
use of any Company equipment, supplies, facility or trade secret information;

(iii)          such Development does not relate (a)
directly to the business of the Company, or (b) to the Company’s actual or
demonstrably anticipated research or development; and

(iv)          such Development does not result from
any work performed by Executive for the Company.

(d)           Assistance of Executive.  Upon request and without further compensation
therefore, but at no expense to Executive, and whether during the term of this
Agreement or thereafter, Executive will do all lawful acts, including, but not
limited to, the execution of papers and lawful oaths and the giving of
testimony, that in the opinion of the Company, its successors and assigns, may be
necessary or desirable in obtaining, sustaining, reissuing, extending and

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enforcing United
States and foreign patents, including, but not limited to, design patents, on
any and all of such Developments, and for perfecting, affirming and recording
the Company’s complete ownership and title thereto, and to cooperate otherwise
in all proceedings and matters relating thereto.

(e)           Records.  Executive will keep complete, accurate and
authentic accounts, notes, data and records of all Developments in the manner
and form requested by the Company.  Such
accounts, notes, data and records shall be the property of the Company, and,
upon its request, Executive will promptly surrender same to it or, if not
previously surrendered upon its request or otherwise, Executive will surrender
the same, and all copies thereof, to the Company upon the conclusion of his
employment.

3.5           UNDERSTANDINGS.  Executive acknowledges and agrees that (a) he
has carefully considered the restrictions contained in this Agreement and (b)
the restrictions in this Agreement are reasonable and will not unduly restrict
him in securing other employment in the event of termination.

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

3.7           SURVIVAL.  The obligations of this Article III shall
survive the expiration or termination of this Agreement and/or termination of
Executive’s employment for any reason.

ARTICLE
IV.

TERMINATION

4.1           TERMINATION FOR CAUSE.  Notwithstanding anything contained in this
Agreement to the contrary, the Company shall have the right to terminate the
employment of Executive upon the occurrence of any of the following events
(which events shall constitute “Cause” for termination):

(a)           Executive shall commit any breach or
violation of any of Executive’s representations or covenants under this
Agreement, which breach continues for a period of ten (10) days following
notice thereof from the Company (except in the event of a breach of any
provision of Article III, which shall require no notice to Executive prior to
termination);

(b)           Executive shall willfully and
continually fail to substantially perform Executive’s duties with the Company
(other than due to incapacity resulting from

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physical or mental illness) which failure has
continued for at least 30 days following receipt by Executive of written notice
specifying the failure to substantially perform;

(c)           Executive shall willfully engage in
conduct that is demonstrably and materially injurious to the Company, monetarily
or otherwise, which injurious conduct has continued for at least 30 days
following Executive’s receipt of written notice specifying the injurious
conduct and offering Executive the opportunity to explain the conduct to the
Board;

(d)           Executive shall, in the performance
of Executive’s duties under this Agreement, engage in any act of misconduct,
including misconduct involving moral turpitude, which is injurious to the
Company;

(e)           Executive shall violate or willfully
refuse to obey the lawful and reasonable instructions of the Board of the
Company, provided that such instructions are not in violation of this
Agreement;

(f)            Executive shall become disabled
during the Term (Executive shall be deemed to be disabled if Executive is
eligible to receive disability benefits under any long-term disability plan the
Company may then have in effect, or, if no such plan is then in effect,
Executive shall be deemed to be disabled if Executive is unable to perform the
material functions of his position with the Company, with or without reasonable
accommodation, by reason of a physical or mental infirmity, for a period of
ninety (90) consecutive days within any 180-day period);

(g)           Executive shall die during the Term
of this Agreement.

An
act or failure to act is considered “willful” if done or not done with an
absence of good faith and without a reasonable belief that the act or failure
to act was in the best interests of the Company.  If the employment of Executive is terminated
pursuant to this Section 4.1, such termination shall be effective upon the
delivery of notice thereof to Executive, except in the event of the death of
Executive, in which case termination shall be effective immediately upon death,
and termination pursuant to subsection 4.1(a), (b) or (c) under circumstances
in which Executive is entitled to notice of breach (or failure) and an
opportunity to cure, in which case termination shall be effective immediately
after the notice period if Executive fails to cure the breach or failure to the
reasonable satisfaction of the Company. 
In the event of termination for “Cause”, Executive shall not be entitled
to any severance payments or any other payments under this Agreement.

4.2           TERMINATION BY COMPANY FOR
ANY OTHER REASON.

Notwithstanding
anything contained in this Agreement to the contrary, the Company shall have
the right to terminate the employment of Executive for any reason, including
reasons other than those described in Section 4.1, upon thirty (30) days notice
to Executive.  Such termination shall be
effective upon the expiration of such 30 day period.  In the event of termination by the Company
for any reason not constituting “Cause” (as defined above), Executive shall be
entitled to the severance payments described in Section 4.5 of this Agreement.

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4.3           TERMINATION BY EXECUTIVE
FOR GOOD REASON. 
Notwithstanding anything contained in the Agreement to the contrary,
Executive shall have the right to terminate his employment at any time for “Good
Reason”.  “Good Reason” shall exist if
any of the following events or conditions occurs:

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

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

In
the event of termination of employment by Executive for Good Reason, Executive
shall be entitled to the severance payments described in Section 4.5 of this
Agreement.

4.4           TERMINATION BY EXECUTIVE.  Executive shall have the right to terminate
his employment under this Agreement for any reason.  In the event of termination by Executive for
any reason not constituting a termination for “Good Reason” (as defined above),
Executive shall not be entitled to any severance payment or any other payments
under this Agreement.

4.5           SEVERANCE PAYMENTS.  In the event that Executive’s employment is
terminated by the Company for reasons other than Cause, or, in the event that
Executive terminates Executive’s employment for Good Reason, the Company shall
pay to Executive, within ten (10) days of the date of such termination, the
Salary through such date of termination, and, in lieu of any further
compensation and benefits under this Agreement, Executive shall be entitled to
the following benefits during the “Severance Period” (which Severance Period is
defined herein to be the eighteen (18) - month period beginning on the date of
such termination of Executive’s employment).

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

(b)           During the Severance Period, the
Company shall continue on behalf of Executive (and Executive’s dependents and
beneficiaries), life insurance, disability

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insurance, medical and dental benefits and any/all
other benefits which were being provided to Executive at the time of
termination of employment and the expense shall be allocated between the
Company and Executive on the same basis as prior to the date of termination of
employment.  The benefits provided
pursuant to this Section 4.5(b) shall be no less favorable to Executive than
the coverage provided to Executive under the plans providing such benefits at
the time notice of termination was given to Executive.  The obligation of the Company under this
Section 4.5(b) shall be limited to the extent that Executive obtains any such
benefits pursuant to a subsequent Executive’s benefit plans, in which case the
Company may reduce the coverage of any benefit it is required to provide
Executive under this Section 4.5(b) as long as the aggregate coverage of the
combined benefit plans is no less favorable to Executive, in terms of amounts
and deductibles and costs to Executive, than the coverage required to be
provided under this Section 4.5(b).  This
Section 4.5(b) shall not be interpreted so as to limit any benefits to which
Executive (or Executive’s dependents or beneficiaries) are entitled under any
of the Company’s Executive benefit plans, programs or practices following
Executive’s date of termination of employment. 
The provision of continued benefits to Executive under this Section
4.5(b) shall not deprive Executive of any independent statutory right to
continue benefits coverage pursuant to Sections 601 through 606 of Executive
Retirement Income Security Act of 1974, as amended; and

(c)           For the Company’s fiscal year in
which Executive’s employment is terminated, the Company shall pay Executive
such bonus, if any, equal to the amount found by multiplying (x) the lesser of
(i) such amounts as Executive would have received based on the Company’s actual
results pursuant to any bonus plan in effect during such fiscal year and (ii)
such amounts as Executive would have received based on the Company’s achieving
100% of its financial targets as reflected in such bonus plan (in each case as
though Executive had been employed the full fiscal year) by (y) a fraction, the
numerator of which is the number of days in the applicable fiscal year through
the date of Executive’s termination and the denominator of which is 365.  All bonuses payable pursuant to this
subsection (c) shall be payable to Executive at such time as bonuses for such
period are paid to Company employees under such bonus plan generally.

(d)           In the event Executive is entitled to
severance benefits, all of Executive’s rights to exercise option(s) granted
under the Company’s stock option plan and held by Executive upon termination of
employment shall immediately vest resulting in these option(s) becoming
immediately exercisable for the period specified in the section of the
respective option(s) relating to vesting of options in the event of termination
of employment, or, if no period is so specified, then for six (6) months, after
which time the option(s) shall expire.

(e)           Notwithstanding
anything contained in this Agreement to the contrary, Executive shall be
entitled to the severance pay and benefits described in this Section 4.5 only
if (i) on or within thirty (30) days following Executive’s last date of
employment Employee signs and does not rescind a Release Agreement in a form
prepared by the Company, to include but not be limited to a comprehensive
release of all legal claims by Executive in

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favor of the Company, (ii) Executive fully complies
with his confidentiality obligations under Section 3.2 herein, (iii) Executive
fully complies with his non-competition and non-inducement obligations under
Section 3.3 herein, and (iv) Executive fully complies with his disclosure and
assignment obligations under Section 3.4 herein.  Executive further understands and agrees that
if he does not sign the required Release Agreement, if he rescinds the required
Release Agreement after signing, or if he does not fully comply with the
confidentiality, non-competition, non-inducement, and/or disclosure and
assignment requirements of Sections 3.2, 3.3 and 3.4 herein, he will not be
entitled to the severance pay or benefits described in Section 4.5 and will be
obligated to return any severance pay and/or benefits already received.

4.6           PAYMENT OF COMPENSATION.  Notwithstanding anything in this Agreement or
elsewhere to the contrary:

(a)           If payment or provision of any amount
or other benefit that is “deferred compensation” subject to Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) at the time otherwise
specified in this Agreement or elsewhere would subject such amount or benefit
to additional tax pursuant to Section 409A(a)(1)(B) of the Code, and if payment
or provision thereof at a later date would avoid any such additional tax, then
the payment or provision thereof shall be postponed to the earliest date on
which such amount or benefit can be paid or provided without incurring any such
additional tax.  In the event this
Article IV requires a deferral of any payment, such payment shall be
accumulated and paid in a single lump sum on such earliest date together with
interest for the period of delay, compounded annually, equal to the prime rate
(as published in The Wall Street Journal), and in effect as of the date the
payment should otherwise have been provided.

(b)           If any payment or benefit permitted
or required under this Agreement, or otherwise, is reasonably determined by
either party to be subject for any reason to a material risk of additional tax
pursuant to Section 409A(a)(1)(B) of the Code, then the parties shall promptly
agree in good faith on appropriate provisions to avoid such risk without
materially changing the economic value of this Agreement to either party.

4.7           SURVIVING RIGHTS.  Notwithstanding the termination of Executive’s
employment, the parties shall be required to carry out any provisions hereof
which contemplate performance subsequent to such termination; and such
termination shall not affect any liability or other obligation which shall have
accrued prior to such termination, including, but not limited to, any liability
for loss or damage on account of a prior default.

ARTICLE
V.

SETTLEMENT BY ARBITRATION

5.1           ARBITRATION.  The Company and Executive agree that any
claim or controversy arising out of or relating to this Agreement, including
but not limited to the making of it or the alleged breach of it, and any
alleged violation of any right created by statute, shall be discussed between
the disputing parties in a good faith effort to arrive at a mutual settlement
of

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any such claim or
controversy.  If, notwithstanding, such
claim or controversy cannot be resolved, the Company and Executive agree that
any claim or controversy will be settled by arbitration in the City of
Minneapolis, Minnesota, in accordance with the provisions of this Agreement,
and the 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 award rendered pursuant to
such arbitration shall be final, binding and conclusive as to the Company and
Executive, and judgment upon such award may be entered without notice and
enforced in any court having jurisdiction. 
Costs of arbitration (excluding the costs of each party’s own counsel or
advisors) shall be borne equally by the Company and Executive.  Notwithstanding the foregoing, the Company
shall have the right to submit any claim against Executive arising out of any
provision of Article III hereof to any court of competent jurisdiction in
Hennepin County, Minnesota, in lieu of seeking arbitration pursuant to this
Section.

ARTICLE
VI.

GENERAL PROVISIONS

6.1           NOTICES.  All notices, requests, and other
communications shall be in writing and except as otherwise provided herein,
shall be considered to have been delivered if personally delivered or when
deposited in the United States Mail, first class, certified or registered,
postage prepaid, return receipt requested, addressed to the proper party at its
address as set forth below, or to such other address as such party may
hereafter designate by written notice to the other party:

	
   

  	
  (a)

  	
  If to the Company, to:

  	
   

  	
  Golf Galaxy, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  7275 Flying
  Cloud Drive

  
	
   

  	
   

  	
   

  	
   

  	
  Eden Prairie, MN
  55344

  
	
   

  	
   

  	
   

  	
   

  	
  ATTN: President]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  If to Executive, to:

  	
   

  	
  Gregory B. Maanum

  
	
   

  	
   

  	
   

  	
   

  	
  8040 Acorn Lane

  
	
   

  	
   

  	
   

  	
   

  	
  Chanhassen, MN
  55317

  

 

6.2           NO CONFLICTION OBLIGATIONS.  Executive represents and warrants to the
Company that he is not under, or bound to be under in the future, any
obligation to any person, firm, or corporation that is or would be inconsistent
or in conflict with this Agreement or would prevent, limit, or impair in any
way the performance by him of his obligations hereunder.

6.3           WAIVER, MODIFICATION OR
AMENDMENT.  No waiver,
modification or amendment of any term, condition or provision of this Agreement
shall be valid or of any effect unless made in writing, signed by the party to
be bound or its duly authorized representative and specifying with
particularity the nature and extent of such waiver, modification or
amendment.  Any waiver by any party of
any default of the other shall not affect or impair any right arising

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from any
subsequent default.  Nothing herein shall
limit the rights and remedies of the parties hereto under and pursuant to this
Agreement, except as set forth above.

6.4           ENTIRE AGREEMENT.  This Agreement contains the entire
understanding of the parties hereto in respect of the subject matter hereof and
supersedes all prior agreements and understandings between the parties with
respect to such subject matter; provided that the parties acknowledge that they
have also entered into a retention agreement of even date herewith and that,
pursuant to Section 2(b)(iv) of such agreement, the severance payments and/or
benefits shall be reduced in a dollar-for-dollar basis by the severance
payments and/or benefits provided hereunder, it being the intention of the
parties hereto that Executive shall only be entitled to receive “one” set of
severance payments and benefits under any circumstances.

6.5           INTERPRETATION.  The provisions of this Agreement shall be
applied and interpreted in a manner consistent with each other so as to carry
out the purposes and intent of the parties hereto, but if for any reason any
provision hereof is determined to be unenforceable or invalid, such provision
or such part thereof as may be unenforceable or invalid shall be deemed severed
from this Agreement and the remaining provisions shall be carried out with the
same force and effect as if the severed provision or part thereof had not been
a part of this Agreement.

6.6           GOVERNING LAW.  This Agreement shall be construed and
enforced in accordance with the laws of the State of Minnesota, without regard
to its principles of conflict of laws.

6.7           ASSIGNMENT.  Executive acknowledges that Executive’s
services are unique and personal. 
Accordingly, Executive may not assign Executive’s rights or delegate
Executive’s duties or obligations wider this Agreement.  This Agreement shall inure to the benefit of
and be enforceable by the Company and any successor or permitted assignee, and
may be assigned by the Company to any purchaser of all or substantially all of
the Company’s business or assets (by merger, sale of assets, consolidation,
acquisition of stock or otherwise) without the consent of Executive, and may
otherwise be assigned by the Company only with Executive’s consent.

6.8           CAPTIONS AND HEADINGS.  The captions and section headings used in
this Agreement are for convenience of reference only, and shall not affect the
construction or interpretation of this Agreement or any of the provisions
thereof

6.9           TERMINATION OF 1997
EMPLOYMENT AGREEMENT. Effective the date of this Agreement, the
1997 Employment Agreement shall terminate and be of no further force and
effect, and shall be superseded and replaced in its entirety by this Agreement.

 11
 

 

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

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  GOLF GALAXY,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RANDALL K.
  ZANATTA

  	
   

  
	
   

  	
   

  	
  Its:

  	
  President and
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ GREGORY B.
  MAANUM

  	
   

  
	
   

  	
    Gregory
  B. Maanum

  
							

 

 12Exhibit
10.4

AMENDED
AND RESTATED

EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(this “Agreement”) is made and entered into this 9th day
of October, 2006 by and between Golf Galaxy, Inc. (the “Company”) and Richard
C. Nordvold (the “Executive”).

WITNESSETH:

WHEREAS, the Company has
retained the services of Executive pursuant to the terms of that certain
Employment Agreement between Company and Executive dated March 15, 2004 (the “2004
Employment Agreement”);

WHEREAS, the Company desires to
amend the terms of Executive’s employment pursuant to the terms of this
Agreement; and

WHEREAS, following execution of
this Agreement, the 2004 Employment Agreement shall terminate and be of no
further force or effect.

NOW, THEREFORE, in consideration
of the mutual covenants contained herein, the sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

ARTICLE
I.

EMPLOYMENT
AND TERM

1.1           EMPLOYMENT.  Upon the terms and subject to the conditions
set forth in this Agreement, the Company hereby employs Executive as Chief
Financial Officer or in such other capacity as may be determined from time to
time by the President or the Board of Directors of the Company (the “Board”),
and Executive hereby accepts such employment.

1.2           TERM.  Except as otherwise provided in this
Agreement, the term (the “Term”) of this Agreement shall commence as of the
date hereof and shall continue until this Agreement is terminated by either
party pursuant to the terms hereof.

ARTICLE
II.

COMPENSATION

2.1           SALARY.  As compensation for his services to the
Company and as compensation for his confidentiality, non-competition and
non-solicitation agreement provided in Article 3 of this Agreement, Executive
shall receive an annual salary in the amount of Two Hundred Thousand Dollars
($200,000) (the “Salary”) payable on a pro rata, bi-weekly basis.  The Salary shall be reviewed by the Board on
the first business day of each fiscal year occurring during the Term (the “Review
Date”), the first such review to take place on March 1, 2007 and the Board may
(but shall not be obligated to) increase or decrease said salary as of the
Review Date by such amount as the Board deems appropriate.

 1
 

 

2.2           STOCK OPTIONS.   Effective upon the date of the 2004 Employment
Agreement, the Board approved grants for his right and option to purchase
75,000 shares of common stock of the Company as a senior level executive
employee.  Future grants for his right
and option to purchase additional shares of Common Stock of the Company shall be
reviewed by the Company’s Board annually in the spring occurring during the
Term (the “Review Date”), the first such review to take place in the spring of
2007 and the Board of Directors may (but shall not be obligated to) approve
additional grants as of the Review Date by an amount as the Board deems
appropriate.  The vesting schedule and
terms of the options will be consistent with other grants and communicated at
the time of Board approval.

2.3           BENEFITS.  Except as the Board may otherwise provide,
Executive shall be entitled to participate in any retirement savings plan,
profit sharing plan, life insurance, health insurance, dental insurance,
disability insurance or any other fringe benefit plan which the Company may
from time to time make available to its salaried senior executives to the
extent that Executive’s age, tenure and title make him eligible to receive
those benefits.

Any
of such benefits may be modified or withdrawn by the Company in its discretion
during the Term to the extent the same are withdrawn or modified or
supplemented for other employees similarly situated.

2.4           DISCRETIONARY BONUS.  Executive may from time to time receive a
bonus in the sole discretion of the Board.

2.5           PAID TIME OFF.  Executive shall be entitled to twenty (20)
days Paid Time Off (PTO) per calendar year, which shall be prorated during any
partial year during the Term.  Any
additional PTO that is unused as of the last day of the calendar year shall be
forfeited.  Any unused PTO shall be paid
to Executive at termination.

2.6           EXPENSES.  The Company shall reimburse Executive for all
reasonable expenses properly incurred by Executive in the discharge of his
duties hereunder upon production of evidence therefore.

2.7           CELL PHONE.  Executive will be issued a company-owned cell
phone for his business and personal use during the Term of this Agreement.  Executive agrees to immediately discontinue
use and return such cell phone upon termination of this Agreement.

ARTICLE
III.

DUTIES OF EXECUTIVE

3.1           SERVICES; DUTIES.  Executive shall have the normal duties,
responsibilities and authority of a Chief Financial Officer, subject to the
power of the President or the Board to expand or limit such duties,
responsibilities and authority. 
Executive shall devote Executive’s full time and best efforts to the
business of the Company.  Executive shall
perform the duties and obligations required of Executive hereunder in a
competent, efficient and satisfactory manner at

 2
 

 

such hours and
under such conditions as the performance of such duties and obligations may
require.

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

3.3           NON-COMPETITION AND
NON-SOLICITATION.

(a)           In further consideration of the
compensation to be paid to Executive hereunder, Executive acknowledges that
during the course of his employment with the Company he has become familiar
with the Company’s trade secrets and with other Confidential Information
concerning the Company and that his services have been and shall be of special,
unique and extraordinary value to the Company, and therefore, Executive agrees
that, during the Term and for a period of six (6) months thereafter (the “Noncompete
Period”), he shall not, without the Company’s prior written consent, directly
or indirectly, own, manage, operate, join, control or participate in the ownership,
management, operation or control of, or be connected as a director, officer,
employee, partner, consultant or otherwise with, any business or organization
in the United States, Canada or Mexico that sells or markets golf equipment,
apparel, accessories or services directly to consumers, whether through retail
or direct marketing channels, including, but not limited to catalogs and the
internet (a “Competitive Business”); provided, however, that nothing herein
shall prohibit Executive from (i) being a passive owner of not more than 2% of
the outstanding stock of any class of a corporation which is publicly traded,
so long as Executive has no active participation in the business of such
corporation; or (ii) becoming involved with a business or organization for
which activities comprising a Competitive Business do not represent  more than $10 million in revenues or more
than 10% of such business or organization’s total revenues. If, at the time of
enforcement of this Article III, a court shall hold that the duration, scope or
area restrictions stated herein are unreasonable under circumstances then
existing, the parties agree that the maximum duration, scope or area reasonable
under such circumstances shall be substituted for the stated duration, scope or
area and that the court shall be allowed to revise the restrictions contained
herein to cover the maximum period, scope and area permitted by law.

 3
 

 

Executive acknowledges that the restrictions contained
in this Article III are reasonable and that he has reviewed the provisions of
this Agreement with his legal counsel

(b)           During
the Term and for a period of two (2) years thereafter (the “Non-Solicit Period”),
Executive shall not directly or indirectly through another person or entity (i)
induce or attempt to induce any employee of the Company to leave the employ of
the Company, or in any way interfere with the relationship between the Company
and any employee thereof, (ii) hire any person who was an employee of the
Company at any time during the Term or (iii) induce or attempt to induce any
customer, supplier, licensee, licensor, franchisee or other business relation
of the Company to cease doing business with the Company, or in any way
interfere with the relationship between any such customer, supplier, licensee
or business relation and the Company (including, without limitation, making any
negative or disparaging statements or communications regarding the Company).

(c)           In
the event of the breach or a threatened breach by Executive of any of the
provisions of this Section 3.3(c), the Company would suffer irreparable harm,
and in addition and supplementary to other rights and remedies existing in its
favor, the Company shall be entitled to specific performance and/or injunctive
or other equitable relief from a court of competent jurisdiction in order to
enforce or prevent any violations of the provisions hereof (without posting a
bond or other security).  In addition, in
the event of an alleged breach or violation by Executive of this Article III,
the Noncompete Period and the Non-Solicit Period shall be tolled until such
breach or violation has been duly cured.

3.4                   PATENT
AND RELATED MATTERS.

(a)           Disclosure and Assignment.  Executive agrees to promptly disclose in
writing to the Company complete information concerning each and every
invention, discovery, improvement, device, design, apparatus, practice,
process, method or product, whether patentable or not, made, developed, perfected, devised,
conceived or first reduced to practice by Executive, either solely or in
collaboration with others, during the term of this Agreement, or within six (6)
months thereafter, whether or not during regular working hours, relating either
directly or indirectly to the business, products, practices or techniques of
the Company (hereinafter referred to as “Developments”).  Executive,
to the extent that he has the legal right to do so, hereby acknowledges that
any and all of said Developments are the property of the Company and hereby
assigns and agrees to assign to the Company any and all of Executive’s right,
title and interest in and to any and all of such Developments.

(b)           Future Developments.  As to any future Developments made by
Executive which relate to the business, products or practices of the Company
and which are first conceived or reduced to practice during the term of this
Agreement, but which are claimed for any reason to belong to an entity or
person other than the Company, Executive agrees to promptly disclose the same
in writing to the Company and shall not

 4
 

 

disclose the same to others if the Company, within
twenty (20) days thereafter, shall claim ownership of such Developments under
the terms of this Agreement.

(c)           Limitation on Sections 3.4(a) and
(b).  The provisions of Sections
3.4(a) and (b) shall not apply to any Development meeting the following
conditions:

(i)            such Development was developed
entirely on Executive’s own time;

(ii)           such Development was made without the
use of any Company equipment, supplies, facility or trade secret information;

(iii)          such Development does not relate (a)
directly to the business of the Company, or (b) to the Company’s actual or
demonstrably anticipated research or development; and

(iv)          such Development does not result from
any work performed by Executive for the Company.

(d)           Assistance of Executive.  Upon request and without further compensation
therefore, but at no expense to Executive, and whether during the term of this
Agreement or thereafter, Executive will do all lawful acts, including, but not
limited to, the execution of papers and lawful oaths and the giving of
testimony, that in the opinion of the Company, its successors and assigns, may
be necessary or desirable in obtaining, sustaining, reissuing, extending and
enforcing United States and foreign patents, including, but not limited to,
design patents, on any and all of such Developments, and for perfecting,
affirming and recording the Company’s complete ownership and title thereto, and
to cooperate otherwise in all proceedings and matters relating thereto.

(e)           Records.  Executive will keep complete, accurate and
authentic accounts, notes, data and records of all Developments in the manner
and form requested by the Company.  Such
accounts, notes, data and records shall be the property of the Company, and,
upon its request, Executive will promptly surrender same to it or, if not
previously surrendered upon its request or otherwise, Executive will surrender
the same, and all copies thereof, to the Company upon the conclusion of her
employment.

3.5           UNDERSTANDINGS.  Executive acknowledges and agrees that (a)
the Company informed him, as part of the offer of employment and prior to his
accepting employment with the Company, that a confidentiality, non-competition,
and non-inducement agreement would be required as part of the terms and
conditions of his employment; (b) he has carefully considered the restrictions
contained in this Agreement; (c) the restrictions in this Agreement are
reasonable and will not unduly restrict him in securing other employment in the
event of termination.

3.6           REMEDIES.  Executive agrees and understands that any
breach of any of the covenants or agreements set forth in Article III of this
Agreement will cause the Company irreparable harm for which there is no
adequate remedy at law, and, without limiting whatever other rights and
remedies the Company may have under this Agreement, Executive consents to

 5
 

 

the issuance of an
injunction by any court of competent jurisdiction in favor of the Company
enjoining the breach of any of the aforesaid covenants or agreements.  If any or all of the aforesaid covenants or
agreements are held to be unenforceable because of the scope or duration of
such covenant or agreement, the parties agree that the court making such
determination shall have the power to reduce or modify the scope and/or
duration of such covenant to the extent that allows the maximum scope and/or
duration permitted by applicable law.

3.7           SURVIVAL.  The obligations of this Article III shall
survive the expiration or termination of this Agreement and/or termination of
Executive’s employment for any reason.

ARTICLE
IV.

TERMINATION

4.1           TERMINATION FOR CAUSE.  Notwithstanding anything contained in this
Agreement to the contrary, the Company shall have the right to terminate the
employment of Executive upon the occurrence of any of the following events
(which events shall constitute “Cause” for termination):

(a)           Executive shall commit any breach or
violation of any of Executive’s representations or covenants under this
Agreement, which breach continues for a period of ten (10) days following
notice thereof from the Company (except in the event of a breach of any
provision of Article III, which shall require no notice to Executive prior to
termination);

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

(c)           Executive shall willfully engage in
conduct that is demonstrably and materially injurious to the Company,
monetarily or otherwise, which injurious conduct has continued for at least 30
days following Executive’s receipt of written notice specifying the injurious
conduct and offering Executive the opportunity to explain the conduct to the
Board;

(d)           Executive shall, in the performance
of Executive’s duties under this Agreement, engage in any act of misconduct,
including misconduct involving moral turpitude, which is injurious to the
Company;

(e)           Executive shall violate or willfully
refuse to obey the lawful and reasonable instructions of the President and/or
Board of the Company, provided that such instructions are not in
violation of this Agreement;

(f)            Executive shall become disabled
during the Term (Executive shall be deemed to be disabled if Executive is
eligible to receive disability benefits under any long-term disability plan the
Company may then have in effect, or, if no such plan is then

 6
 

 

in effect, Executive shall be deemed to be disabled if
Executive is unable to perform the material functions of his position with the
Company, with or without reasonable accommodation, by reason of a physical or
mental infirmity, for a period of ninety (90) consecutive days within any
180-day period);

(g)           Executive shall die during the Term
of this Agreement.

An
act or failure to act is considered “willful” if done or not done with an
absence of good faith and without a reasonable belief that the act or failure
to act was in the best interests of the Company.  If the employment of Executive is terminated
pursuant to this Section 4.1, such termination shall be effective upon the
delivery of notice thereof to Executive, except in the event of the death of Executive,
in which case termination shall be effective immediately upon death, and
termination pursuant to subsection 4.1(a), (b) or (c) under circumstances in
which Executive is entitled to notice of breach (or failure) and an opportunity
to cure, in which case termination shall be effective immediately after the
notice period if Executive fails to cure the breach or failure to the
reasonable satisfaction of the Company. 
In the event of termination for “Cause”, Executive shall not be entitled
to any severance payments or any other payments under this Agreement.

4.2           TERMINATION BY COMPANY FOR
ANY OTHER REASON.

Notwithstanding
anything contained in this Agreement to the contrary, the Company shall have
the right to terminate the employment of Executive for any reason, including
reasons other than those described in Section 4.1, upon thirty (30) days notice
to Executive.  Such termination shall be
effective upon the expiration of such 30 day period.  In the event of termination by the Company
for any reason not constituting “Cause” (as defined above), Executive shall be
entitled to the severance payments described in Section 4.5 of this Agreement.

4.3           TERMINATION BY EXECUTIVE
FOR GOOD REASON. 
Notwithstanding anything contained in the Agreement to the contrary,
Executive shall have the right to terminate his employment at any time for “Good
Reason”.  “Good Reason” shall exist if
any of the following events or conditions occurs:

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

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

 7
 

 

In
the event of termination of employment by Executive for Good Reason, Executive
shall be entitled to the severance payments described in Section 4.5 of this
Agreement.

4.4           TERMINATION BY EXECUTIVE.  Executive shall have the right to terminate
his employment under this Agreement for any reason.  In the event of termination by Executive for
any reason not constituting a termination for “Good Reason” (as defined above),
Executive shall not be entitled to any severance payment or any other payments
under this Agreement.

4.5           SEVERANCE PAYMENTS.  In the event that Executive’s employment is
terminated by the Company for reasons other than Cause, or, in the event that
Executive terminates Executive’s employment for Good Reason, the Company shall
pay to Executive, within ten (10) days of the date of such termination, the
Salary through such date of termination, and, in lieu of any further
compensation and benefits under this Agreement, Executive shall be entitled to
the following benefits during the “Severance Period” (which Severance Period is
defined herein to be the six (6) - month period beginning on the date of such
termination of Executive’s employment).

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

(b)           During the Severance Period, the
Company shall continue on behalf of Executive (and Executive’s dependents and
beneficiaries), life insurance, disability insurance, medical and dental
benefits and any/all other benefits which were being provided to Executive at
the time of termination of employment and the expense shall be allocated
between the Company and Executive on the same basis as prior to the date of
termination of employment.  The benefits
provided pursuant to this Section 4.5(b) shall be no less favorable to
Executive than the coverage provided to Executive under the plans providing
such benefits at the time notice of termination was given to Executive.  The obligation of the Company under this
Section 4.5(b) shall be limited to the extent that Executive obtains any such
benefits pursuant to a subsequent Executive’s benefit plans, in which case the
Company may reduce the coverage of any benefit it is required to provide
Executive under this Section 4.5(b) as long as the aggregate coverage of the
combined benefit plans is no less favorable to Executive, in terms of amounts
and deductibles and costs to Executive, than the coverage required to be
provided under this Section 4.5(b).  This
Section 4.5(b) shall not be interpreted so as to limit any benefits to which
Executive (or Executive’s dependents or beneficiaries) are entitled under any
of the Company’s Executive benefit plans, programs or practices following
Executive’s date of termination of employment. 
The provision of continued benefits to Executive under this Section
4.5(b) shall not deprive Executive of any independent statutory right to
continue benefits coverage pursuant to Sections 601 through 606 of Executive
Retirement Income Security Act of 1974, as amended; and

 8
 

 

(c)           For the Company’s fiscal year in
which Executive’s employment is terminated, the Company shall pay Executive
such bonus, if any, equal to the amount found by multiplying (x) the lesser of
(i) such amounts as Executive would have received based on the Company’s actual
results pursuant to any bonus plan in effect during such fiscal year and (ii)
such amounts as Executive would have received based on the Company’s achieving
100% of its financial targets as reflected in such bonus plan (in each case as
though Executive had been employed the full fiscal year) by (y) a fraction, the
numerator of which is the number of days in the applicable fiscal year through
the date of Executive’s termination and the denominator of which is 365.  All bonuses payable pursuant to this
subsection (c) shall be payable to Executive at such time as bonuses for such
period are paid to Company employees under such bonus plan generally.

(d)           In the event Executive is entitled to
severance benefits, all of Executive’s rights to exercise option(s) granted
under the Company’s stock option plan and held by Executive upon termination of
employment shall immediately vest resulting in these option(s) becoming
immediately exercisable for the period specified in the section of the
respective option(s) relating to vesting of options in the event of termination
of employment, or, if no period is so specified, then for six (6) months, after
which time the option(s) shall expire.

(e)          Notwithstanding anything contained in
this Agreement to the contrary, Executive shall be entitled to the severance
pay and benefits described in this Section 4.5 only if (i) on or within
thirty (30) days following Executive’s last date of employment Employee signs
and does not rescind a Release Agreement in a form prepared by the Company, to
include but not be limited to a comprehensive release of all legal claims by
Executive in favor of the Company, (ii) Executive fully complies with his
confidentiality obligations under Section 3.2 herein, (iii) Executive fully
complies with his non-competition and non-inducement obligations under Section
3.3 herein, and (iv) Executive fully complies with his disclosure and
assignment obligations under Section 3.4 herein.  Executive further understands and agrees that
if he does not sign the required Release Agreement, if he rescinds the required
Release Agreement after signing, or if he does not fully comply with the
confidentiality, non-competition, non-inducement, and/or disclosure and
assignment requirements of Sections 3.2, 3.3 and 3.4 herein, he will not be
entitled to the severance pay or benefits described in Section 4.5 and will be
obligated to return any severance pay and/or benefits already received.

4.6           PAYMENT OF COMPENSATION.  Notwithstanding anything in this Agreement or
elsewhere to the contrary:

(a)           If payment or provision of any amount
or other benefit that is “deferred compensation” subject to Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) at the time otherwise
specified in this Agreement or elsewhere would subject such amount or benefit
to additional tax pursuant to Section 409A(a)(1)(B) of the Code, and if payment
or provision thereof at a later date would avoid any such additional tax, then
the payment or provision thereof shall be postponed to the earliest

 9
 

 

date on which such amount or benefit can be paid or
provided without incurring any such additional tax.  In the event this Article IV requires a
deferral of any payment, such payment shall be accumulated and paid in a single
lump sum on such earliest date together with interest for the period of delay,
compounded annually, equal to the prime rate (as published in The Wall Street
Journal), and in effect as of the date the payment should otherwise have been
provided.

(b)           If any payment or benefit permitted
or required under this Agreement, or otherwise, is reasonably determined by
either party to be subject for any reason to a material risk of additional tax
pursuant to Section 409A(a)(1)(B) of the Code, then the parties shall promptly
agree in good faith on appropriate provisions to avoid such risk without
materially changing the economic value of this Agreement to either party.

4.7           SURVIVING RIGHTS.  Notwithstanding the termination of Executive’s
employment, the parties shall be required to carry out any provisions hereof
which contemplate performance subsequent to such termination; and such
termination shall not affect any liability or other obligation which shall have
accrued prior to such termination, including, but not limited to, any liability
for loss or damage on account of a prior default.

ARTICLE
V.

SETTLEMENT BY ARBITRATION

5.1           ARBITRATION.  The Company and Executive agree that any
claim or controversy arising out of or relating to this Agreement, including
but not limited to the making of it or the alleged breach of it, and any
alleged violation of any right created by statute, shall be discussed between
the disputing parties in a good faith effort to arrive at a mutual settlement
of any such claim or controversy.  If,
notwithstanding, such claim or controversy cannot be resolved, the Company and
Executive agree that any claim or controversy will be settled by arbitration in
the City of Minneapolis, Minnesota, in accordance with the provisions of this
Agreement, and the 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 award rendered pursuant to
such arbitration shall be final, binding and conclusive as to the Company and Executive,
and judgment upon such award may be entered without notice and enforced in any
court having jurisdiction.  Costs of
arbitration (excluding the costs of each party’s own counsel or advisors) shall
be borne equally by the Company and Executive. 
Notwithstanding the foregoing, the Company shall have the right to
submit any claim against Executive arising out of any provision of Article III
hereof to any court of competent jurisdiction in Hennepin County, Minnesota, in
lieu of seeking arbitration pursuant to this Section.

 10
 

 

ARTICLE
VI.

GENERAL PROVISIONS

6.1           NOTICES.  All notices, requests, and other
communications shall be in writing and except as otherwise provided herein,
shall be considered to have been delivered if personally delivered or when deposited
in the United States Mail, first class, certified or registered, postage
prepaid, return receipt requested, addressed to the proper party at its address
as set forth below, or to such other address as such party may hereafter
designate by written notice to the other party:

	
   

  	
  (a)

  	
  If to the Company, to:

  	
   

  	
  Golf Galaxy, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  7275 Flying
  Cloud Drive

  
	
   

  	
   

  	
   

  	
   

  	
  Eden Prairie, MN
  55344

  
	
   

  	
   

  	
   

  	
   

  	
  ATTN: President]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  If to Executive, to:

  	
   

  	
  Richard C. Nordvold

  
	
   

  	
   

  	
   

  	
   

  	
  2000 Luisa Court

  
	
   

  	
   

  	
   

  	
   

  	
  Chaska, MN 55318

  

 

6.2           NO CONFLICTION OBLIGATIONS.  Executive represents and warrants to the
Company that he is not under, or bound to be under in the future, any
obligation to any person, firm, or corporation that is or would be inconsistent
or in conflict with this Agreement or would prevent, limit, or impair in any
way the performance by him of his obligations hereunder.

6.3           WAIVER, MODIFICATION OR
AMENDMENT.  No waiver,
modification or amendment of any term, condition or provision of this Agreement
shall be valid or of any effect unless made in writing, signed by the party to
be bound or its duly authorized representative and specifying with
particularity the nature and extent of such waiver, modification or
amendment.  Any waiver by any party of
any default of the other shall not affect or impair any right arising from any
subsequent default.  Nothing herein shall
limit the rights and remedies of the parties hereto under and pursuant to this
Agreement, except as set forth above.

6.4           ENTIRE AGREEMENT.  This Agreement contains the entire
understanding of the parties hereto in respect of the subject matter hereof and
supersedes all prior agreements and understandings between the parties with
respect to such subject matter, whether oral or written; provided that the
parties acknowledge that they have also entered into a retention agreement of
even date herewith and that, pursuant to Section 2(b)(iv) of such agreement,
the severance payments and/or benefits shall be reduced in a dollar-for-dollar
basis by the severance payments and/or benefits provided hereunder, it being
the intention of the parties hereto that Executive shall only be entitled to
receive “one” set of severance payments and benefits under any circumstances.

6.5           INTERPRETATION.  The provisions of this Agreement shall be
applied and interpreted in a manner consistent with each other so as to carry
out the purposes and intent of the parties hereto, but if for any reason any
provision hereof is determined to be unenforceable or invalid, such provision
or such part thereof as may be unenforceable or invalid shall be deemed severed
from this Agreement and the remaining provisions shall be carried out with the
same force and effect as if the severed provision or part thereof had not been
a part of this Agreement.

 11
 

 

6.6           GOVERNING LAW.  This Agreement shall be construed and
enforced in accordance with the laws of the State of Minnesota, without regard
to its principles of conflict of laws.

6.7           ASSIGNMENT.  Executive acknowledges that Executive’s
services are unique and personal. 
Accordingly, Executive may not assign Executive’s rights or delegate
Executive’s duties or obligations under this Agreement.  This Agreement shall inure to the benefit of
and be enforceable by the Company and any successor or permitted assignee, and
may be assigned by the Company to any purchaser of all or substantially all of
the Company’s business or assets (by merger, sale of assets, consolidation,
acquisition of stock or otherwise) without the consent of Executive, and may
otherwise be assigned by the Company only with Executive’s consent.

6.8           CAPTIONS AND HEADINGS.  The captions and section headings used in
this Agreement are for convenience of reference only, and shall not affect the
construction or interpretation of this Agreement or any of the provisions
thereof.

6.9           TERMINATION OF 2004
EMPLOYMENT AGREEMENT. Effective the date of this Agreement, the
2004 Employment Agreement shall terminate and be of no further force and
effect, and shall be superseded and replaced in its entirety by this Agreement.

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

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  GOLF GALAXY,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RANDALL K.
  ZANATTA

  	
   

  
	
   

  	
   

  	
  Its:

  	
  President and Chief
  Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ RICHARD C.
  NORDVOLD

  	
   

  
	
   

  	
  Richard C. Nordvold

  
							

 

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