Document:

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                                                                   Exhibit 10.15

                                                                  EXECUTION COPY

                                 VIRGINIA BUNTE
                              EMPLOYMENT AGREEMENT
                                      WITH
                          GOLFSMITH INTERNATIONAL, INC.

      This is an Employment Agreement entered into between Golfsmith
International, Inc., a Delaware corporation (the "COMPANY"), and Virginia Bunte
("EXECUTIVE").

                                    RECITALS:

      WHEREAS, Executive currently serves the Company as a principal accounting
officer;

      WHEREAS, the Company and Executive desire that Executive provide the
Company employment services upon the terms and conditions set forth below;

      NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein, the parties, intending to be legally bound, agree as follows:

                                   AGREEMENT:

SECTION 1. TERM OF EMPLOYMENT

      (a)   Effective Date. Subject to the terms and conditions set forth in
this Employment Agreement, the Company agrees to employ Executive, and Executive
agrees to be employed by the Company for the one year period which starts on
January 15, 2003 (the "EFFECTIVE DATE").

      (b)   Term. The term of this Employment Agreement is subject to automatic
one year extensions starting on the first anniversary of the Effective Date of
this Employment Agreement and on each subsequent anniversary date, unless
Executive or the Company cancels the automatic extension at least 30 days prior
to the anniversary date.

SECTION 2. DEFINITIONS

      "CAUSE" means

            (1)   Executive's (i) fraud, (ii) embezzlement, or (iii)
      misappropriation of funds, in each case involving or against the Company
      or any of its subsidiaries or affiliates,
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            (2)   Executive's indictment for or conviction of any felony or any
      crime which involves dishonesty or a breach of trust,

            (3)   Executive's gross negligence or willful misconduct with
      respect to the Company or any of its subsidiaries or affiliates which
      causes material detriment to the Company or any of its subsidiaries,

            (4)   Executive commits a material violation of the United States'
      Foreign Corrupt Practices Act of 1977, as amended, and such violation is
      not cured, or is not capable of being cured, within thirty days of written
      notice to Executive from the Company,

            (5)   the debarment of Executive from engaging in contracting or
      sub-contracting activities with the United States Government if such
      debarment is the result of a final determination by an agency of such
      government that Executive knowingly acted in a manner justifying such
      debarment,

            (6)   Executive commits a material violation of the Company's code
      of ethics, or any similar written statement or policy of the Company
      setting forth reasonable standards for employee conduct of which Executive
      had prior notice, which the Board of Directors of the Company reasonably
      determines makes her no longer able or fit to fulfill her responsibilities
      under this Employment Agreement, and which is not cured, or is not capable
      of being cured, within thirty days after written notice thereof is given
      to the Executive by the Company,

            (7)   Executive engages in any material breach of the terms of this
      Employment Agreement or fails to fulfill her responsibilities, as directed
      by the Chief Executive Officer or the Board of Directors of the Company,
      under this Employment Agreement and such breach or failure, as the case
      may be, is not cured, or is not capable of being cured, within thirty days
      after written notice thereof is given to the Executive by the Company, or

            (8)   Executive (i) is censured by any agency of the United States
      Government or (ii) fails to satisfy any requirement of any agency of the
      United States Government which the Board of Directors of the Company
      reasonably determines has a material and adverse effect on her ability to
      fulfill her responsibilities under this Employment Agreement and such
      failure is not cured within thirty days after written notice thereof is
      given to the Executive by the Company.

      "COMPETING BUSINESS" means any business which designs, distributes, sells
or markets golf equipment and golf related products, or any other business in
which the Company or any of its subsidiaries is substantially engaged at the
time of the termination of Executive's employment and in which Executive was
substantially engaged on behalf of the Company or any of its subsidiaries during
the last year of Executive's employment.

      "DISABILITY" means a condition which renders Executive unable (as
determined by the Board of Directors of the Company in good faith after
consultation with a physician mutually

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selected by the Executive and the Board of Directors of the Company) to
regularly perform her duties hereunder by reason of illness or injury for a
period of more than six consecutive months.

      "EARNED BONUS" means the bonus, determined based on the actual performance
of the Company for the full fiscal year in which Executive's employment
terminates, that Executive would have earned for the year in which her
employment terminates had she remained employed for the entire year, prorated
based on the ratio of the number of days during such year that Executive was
employed to 365.

      "GOOD REASON" means (i) a material and continuing failure to pay to
Executive compensation or benefits (as described in Section 4) that have been
earned, if any, by Executive, (ii) a material reduction of Executive's
compensation or benefits (as described in Section 4), (iii) material reduction
in Executive's title, position or responsibilities as they existed at the
Effective Date, (iv) relocation of Executive's principle worksite to a location
greater than 50 miles from Austin, Texas, (v) any breach by the Company of this
Employment Agreement which is material and which is not cured within thirty days
after written notice thereof to the Company from Executive or (vi) any attempt
to require Executive to perform duties that, in the good faith professional
judgment of Executive, after consultation with the Board of Directors of the
Company, are inconsistent with ethical business practices.

      "ISP" means the Golfsmith International, Inc. 2003 Incentive Stock Plan,
as amended from time to time, and any successor to such plan.

      "RESTRICTED PERIOD" means the longer of (x) one year following the
termination of any payments to Executive made under this Employment Agreement or
(y) three years from the Effective Date.

      "TERM" means the one year period described in Section 1(b).

SECTION 3. TITLE, POWERS AND RESPONSIBILITIES

      (a)   Title. Executive shall be the Chief Financial Officer of the
Company.

      (b)   Powers and Responsibilities.

            (1)   Executive in fulfilling her responsibilities shall have such
      powers as are normally and customarily associated with a chief financial
      officer in a company of similar size and operating in a similar industry,
      including the power to hire and fire employees and executives of the
      Company reporting to Executive and such other powers as authorized by the
      Chief Executive Officer of the Company.

            (2)   Executive, as a condition to her employment under this
      Employment Agreement, represents and warrants that he can assume and
      fulfill responsibilities described in Section 3(b)(1) without any risk of
      violating any non-compete or other restrictive covenant or other agreement
      to which she is a party.

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      (c)   Reporting Relationship. Executive shall report to the Chief
Executive Officer of the Company.

      (d)   Full Time Basis. Executive shall undertake to perform all her
responsibilities and exercise all her powers in good faith and on a full-time
basis.

      (e)   Geographic Area. Executive shall perform her duties and
responsibilities principally in the Austin, Texas metropolitan area and shall be
required to travel outside of that area as determined in the good faith judgment
of the Board of Directors of the Company.

SECTION 4. COMPENSATION AND BENEFITS

      (a)   Annual Base Salary. Executive's base salary shall be $160,000 per
year, which amount may be reviewed and increased at the discretion of the Board
of Directors of the Company or any committee of the Board of Directors of the
Company duly authorized to take such action. Executive's base salary shall be
payable in accordance with the Company's standard payroll practices and policies
for executives and shall be subject to such withholdings as required by law or
as otherwise permissible under such practices or policies.

      (b)   Annual Bonus. The Company shall pay an annual bonus to Executive no
later than sixty (60) days following the delivery of the auditor's report for
the applicable fiscal year, in the amount, and subject to the terms and
conditions, set forth in Schedule A attached hereto.

      (c)   Employee Benefit Plans. Executive shall be eligible to participate,
on terms no less favorable to Executive than the terms for participation of any
other executive of the Company at the same level within the Company as
Executive, in the employee benefit plans, programs and policies maintained by
the Company in accordance with the terms and conditions to participate in such
plans, programs and policies as in effect from time to time. The employee
benefit plans described in this paragraph shall include (if and for as long as
the Company sponsors such plans):

                        (A)   401(k) retirement savings plan;

                        (B)   disability plan;

                        (C)   health plan; and

                        (D)   ISP.

      (d)   Stock Options. Executive shall receive stock options at the
discretion of the Board of Directors of the Company, subject to the terms and
conditions set forth in the ISP and any corresponding option certificate granted
to Executive under the ISP.

      (e)   Vacation. Executive shall have the right to three weeks of vacation
during each successive one year period in the Term, which vacation time shall be
taken at such time or times in each such one year period so as not to materially
and adversely interfere with the performance of her responsibilities under this
Employment Agreement. Executive in addition shall have the right to the same
holidays as other employees of the Company.

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      (f)   Expense Reimbursements. Executive shall have the right to expense
reimbursements in accordance with the Company's standard policy on expense
reimbursements.

      (g)   Indemnification. With respect to Executive's acts or failures to act
during her employment in her capacity as a director, officer, employee or agent
of the Company, Executive shall be entitled to indemnification from the Company,
and to liability insurance coverage (if any), on the same basis as other
officers of the Company.

SECTION 5. TERMINATION OF EMPLOYMENT

      (a)   General. The Board of Directors of the Company shall have the right
to terminate Executive's employment at any time with or without Cause, and
Executive shall have the right to resign at any time with or without Good
Reason.

      (b)   Termination by Board of Directors without Cause or by Executive for
Good Reason. If the Board of Directors terminates Executive's employment without
Cause or Executive resigns for Good Reason, the Company shall pay Executive her
earned but unpaid base salary plus 100% of her current total annual base salary
(subject to such withholdings as required by law) payable in twelve equal
monthly installments during the twelve month period immediately following such
termination and, when actually determined, the Executive's Earned Bonus for the
year of termination. This obligation shall remain in effect even if Executive
accepts other employment. In addition, the Company shall make any COBRA
continuation coverage premium payments (not only for Executive, but for
Executive's dependents), for the one year period following the termination of
Executive's employment or, if earlier, until Executive is eligible to be covered
under another substantially equivalent medical insurance plan by a subsequent
employer.

      (c)   Termination by the Board of Directors for Cause or by Executive
without Good Reason. If the Board of Directors of the Company terminates
Executive's employment for Cause or Executive resigns without Good Reason, the
Company's only obligation to Executive under this Employment Agreement shall be
to pay Executive her earned but unpaid base salary, if any, up to the date
Executive's employment terminates, and Executive shall have no right to any
Earned Bonus or any bonus payment whatsoever. The Company shall only be
obligated to make such payments and provide such benefits under any employee
benefit plan, program or policy in which Executive was a participant as are
explicitly required to be paid to Executive by the terms of any such benefit
plan, program or policy following the date on which Executive's employment
terminates.

      (d)   Termination for Disability. The Board of Directors of the Company
shall have the right to terminate Executive's employment on or after the date
Executive has a Disability, and such a termination shall not be treated as a
termination without Cause under this Employment Agreement. If Executive's
employment is terminated on account of a Disability, the Company shall:

            (1)   pay Executive her base salary through the end of the month in
      which her employment terminates as soon as practicable after her
      employment terminates,

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            (2)   pay Executive her Earned Bonus, when actually determined, for
      the year in which such termination of employment occurs,

            (3)   pay or cause the payment of benefits to which Executive is
      entitled under the terms of the disability plan of the Company covering
      the Executive at the time of such Disability,

            (4)   make such payments and provide such benefits as otherwise
      called for under the terms of the ISP and each other employee benefit
      plan, program and policy in which Executive was a participant; provided no
      payments made under Section 5(d)(1), Section 5(d)(2), or Section 5(d)(3)
      shall be taken into account in computing any payments or benefits
      described in this Section 5(d)(4), and

            (5)   make any COBRA continuation coverage premium payments (not
      only for Executive, but for Executive's dependents), for the one year
      period following the termination of Executive's employment or, if earlier,
      until Executive is eligible to be covered under another substantially
      equivalent medical insurance plan by a subsequent employer.

      (e)   Death. If Executive's employment terminates as a result of her
death, the Company shall:

            (1)   pay Executive her base salary through the end of the month in
      which her employment terminates as soon as practicable after her
      employment terminates,

            (2)   pay Executive her Earned Bonus, when actually determined, for
      the year in which Executive's death occurs,

            (3)   make such payments and provide such benefits as otherwise
      called for under the terms of the ISP and each other employee benefit
      plan, program and policy in which Executive was a participant; provided no
      payments made under Section 5(e)(1) or Section 5(e)(2) shall be taken into
      account in computing any payments or benefits described in this Section
      5(e)(3), and

            (4)   make any COBRA continuation coverage premium payments for
      Executive's dependents, for the one year period following Executive's
      death or, if earlier, until such dependents are eligible to be covered
      under another substantially equivalent medical insurance plan.

      SECTION 6. COVENANTS BY EXECUTIVE

      (a)   Company Property. Executive upon the termination of Executive's
employment for any reason or, if earlier, upon the Company's request shall
promptly return all Company Property which had been entrusted or made available
to Executive by the Company, where the term "PROPERTY" means all records, files,
memoranda, reports, price lists, customer lists, drawings, plans, sketches,
keys, codes, computer hardware and software and other property of

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any kind or description prepared, used or possessed by Executive during
Executive's employment by the Company (and any duplicates of any such Property)
together with any and all information, ideas, concepts, discoveries, and
inventions and the like conceived, made, developed or acquired at any time by
Executive individually or, with others during Executive's employment which
relate to the Company or its products or services.

      (b)   Trade Secrets. Executive agrees that Executive shall hold in a
fiduciary capacity for the benefit of the Company and its affiliates and shall
not directly or indirectly use or disclose any Trade Secret that Executive may
have acquired during the term of Executive's employment by the Company or any of
its predecessors for so long as such information remains a Trade Secret, where
the term "TRADE SECRET" means information, including, but not limited to,
technical or non-technical data, a formula, a pattern, a compilation, a program,
a device, a method, a technique, a drawing or a process that (1) derives
economic value, actual or potential, from not being generally known to, and not
being generally readily ascertainable by proper means by, other persons who can
obtain economic value from its disclosure or use and (2) is the subject of
reasonable efforts by the Company and any of its affiliates to maintain its
secrecy. This Section 6(b) is intended to provide rights to the Company and its
affiliates which are in addition to, not in lieu of, those rights the Company
and its affiliates have under the common law or applicable statutes for the
protection of trade secrets.

      (c)   Confidential Information. Executive while employed by the Company or
its affiliates and thereafter during the Restricted Period shall hold in a
fiduciary capacity for the benefit of the Company and its affiliates, and shall
not directly or indirectly use or disclose, any Confidential Information that
Executive may have acquired (whether or not developed or compiled by Executive
and whether or not Executive is authorized to have access to such information)
during the term of, and in the course of, or as a result of Executive's
employment by the Company or its predecessors without the prior written consent
of the Board of Directors of the Company unless and except to the extent that
such disclosure is (i) made in the ordinary course of Executive's performance of
her duties under this Employment Agreement or (ii) required by any subpoena or
other legal process (in which event Executive will give the Company prompt
notice of such subpoena or other legal process in order to permit the Company to
seek appropriate protective orders). For the purposes of this Employment
Agreement, the term "CONFIDENTIAL INFORMATION" means any secret, confidential or
proprietary information possessed by the Company or any of its affiliates,
including, without limitation, trade secrets, customer or supplier lists,
details of client or consultant contracts, current and anticipated customer
requirements, pricing policies, price lists, market studies, business plans,
operational methods, marketing plans or strategies, product development
techniques or flaws, computer software programs (including object code and
source code), data and documentation data, base technologies, systems,
structures and architectures, inventions and ideas, past current and planned
research and development, compilations, devices, methods, techniques, processes,
financial information and data, business acquisition plans and new personnel
acquisition plans (not otherwise included as a Trade Secret under this
Employment Agreement) that has not become generally available to the public, and
the term "Confidential Information" may include, but not be limited to, future
business plans, licensing strategies, advertising campaigns, information
regarding customers or suppliers, executives and independent contractors and the
terms and conditions of this Employment Agreement. Notwithstanding the
provisions of this

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Section 6(c) to the contrary, Executive shall be permitted to furnish this
Employment Agreement to a subsequent employer or prospective employer.

      (d)   Non-solicitation of Customers or Employees.

            (1)   Executive (i) while employed by the Company or any of its
      affiliates shall not, on Executive's own behalf or on behalf of any
      person, firm, partnership, association, corporation or business
      organization, entity or enterprise (other than the Company or one of its
      affiliates), solicit Competing Business from customers of the Company or
      any of its affiliates and (ii) during the Restricted Period shall not, on
      Executive's own behalf or on behalf of any person, firm, partnership,
      association, corporation or business organization, entity or enterprise,
      solicit Competing Business from customers or suppliers of the Company or
      any of its affiliates with whom Executive within the twenty-four month
      period immediately preceding the beginning of the Restricted Period had or
      made contact with in the course of Executive's employment by the Company.

            (2)   Executive (i) while employed by the Company or any of its
      affiliates shall not, either directly or indirectly, call on, solicit or
      attempt to induce any other officer, employee or independent contractor of
      the Company or any of its affiliates to terminate his or her employment
      with such business and shall not assist any other person or entity in such
      a solicitation (regardless of whether any such officer, employee or
      independent contractor would commit a breach of contract by terminating
      his or her employment), and (ii) during the Restricted Period, shall not,
      either directly or indirectly, call on, solicit or attempt to induce any
      other officer, employee or independent contractor of such business with
      whom Executive had contact, knowledge of, or association in the course of
      Executive's employment with the Company or any of its predecessors or
      affiliates, as the case may be, during the twelve month period immediately
      preceding the beginning of the Restricted Period, to terminate his or her
      employment with the Company or any of its affiliates and shall not assist
      any other person or entity in such a solicitation (regardless of whether
      any such officer, employee or independent contractor would commit a breach
      of contract by terminating his or her employment). Notwithstanding the
      foregoing, nothing shall prohibit any person from contacting Executive
      about employment or other engagement during the restricted period,
      provided that Executive does not solicit the contact.

      (e)   Non-competition Obligation. Executive, while employed by the Company
or any of its affiliates and thereafter until the end of the Restricted Period
will not, for herself or on behalf of any other person, partnership, company or
corporation, directly or indirectly, acquire any financial or beneficial
interest in (except as provided in the next sentence), be employed by, or own,
manage, operate or control, or become a director, officer, partner, employee,
agent or consultant of, any entity which is primarily engaged in a Competing
Business. Notwithstanding the preceding sentence, Executive will not be
prohibited from owning less than five (5%) percent of any publicly traded
corporation, whether or not such corporation is in a Competing Business.

      (f)   Reasonable and Continuing Obligations. Executive agrees that
Executive's obligations under this Section 6 are obligations which will continue
beyond the date Executive's employment terminates and that such obligations are
reasonable, fair and equitable in scope,

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terms and duration, are necessary to protect the Company's legitimate business
interests and are a material inducement to the Company to enter into this
Employment Agreement.

      (g)   Remedy for Breach. Executive agrees that the remedies at law of the
Company for any actual or threatened breach by Executive of the covenants in
this Section 6 would be inadequate and that the Company shall be entitled to
specific performance of the covenants in this Section 6, including entry of a
temporary restraining order in state or federal court, preliminary and permanent
injunctive relief against activities in violation of this Section 6, or both, or
other appropriate judicial remedy, writ or order, in addition to any damages and
legal expenses which the Company may be legally entitled to recover. The Company
agrees, however, to give Executive and, if known, Executive's attorney
reasonable advance notice of any legal proceeding, including any application for
a temporary restraining order, relating to an attempt to enforce the covenants
in this Section 6 against Executive. Executive acknowledges and agrees that the
covenants in this Section 6 shall be construed as agreements independent of any
other provision of this Employment Agreement or any other agreement between the
Company and Executive, and that the existence of any claim or cause of action by
Executive against the Company, whether predicated upon this Employment Agreement
or any other agreement, shall not constitute a defense to the enforcement by the
Company of such covenants.

SECTION 7. MISCELLANEOUS

      (a)   Notices. Notices and all other communications shall be in writing
and shall be deemed to have been duly given when personally delivered or when
mailed by United States registered or certified mail. Notices to the Company
shall be sent to:

                        GOLFSMITH INTERNATIONAL, INC..
                        c/o First Atlantic Capital, Ltd.
                        135 E. 57th Street, 29th Floor
                        New York, New York 10022
                        Attention: Noel Wilens
                        Facsimile: (212) 750-0300

      Notices and communications to Executive shall be sent to the address
Executive most recently provided to the Company.

      (b)   No Waiver. Except for the notice described in Section 7(a), no
failure by either the Company or Executive at any time to give notice of any
breach by the other of, or to require compliance with, any condition or
provision of this Employment Agreement shall be deemed a waiver of any
provisions or conditions of this Employment Agreement.

      (c)   Texas Law. This Employment Agreement shall be governed by Texas law
without reference to the choice of law principles thereof. Any litigation that
may be brought by either the Company or Executive involving the enforcement of
this Employment Agreement or any rights, duties, or obligations under this
Employment Agreement, shall be brought exclusively in a Texas state court or
United States District Court in Texas.

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      (d)   Assignment. This Employment Agreement shall be binding upon and
inure to the benefit of the Company and any successor in interest to the Company
or any segment of such business. The Company may assign this Employment
Agreement to any affiliate or successor that acquires all or substantially all
of the assets and business of the Company or a majority of the voting interests
of the Company, and no such assignment shall be treated as a termination of
Executive's employment under this Employment Agreement. Executive's rights and
obligations under this Employment Agreement are personal and shall not be
assigned or transferred.

      (e)   Other Agreements. This Employment Agreement replaces and merges any
and all previous agreements and understandings regarding all the terms and
conditions of Executive's employment relationship with the Company, and this
Employment Agreement constitutes the entire agreement between the Company and
Executive with respect to such terms and conditions.

      (f)   Amendment. No amendment to this Employment Agreement shall be
effective unless it is in writing and signed by the Company and by Executive.

      (g)   Invalidity. If any part of this Employment Agreement is held by a
court of competent jurisdiction to be invalid or otherwise unenforceable, the
remaining part shall be unaffected and shall continue in full force and effect,
and the invalid or otherwise unenforceable part shall be deemed not to be part
of this Employment Agreement.

      (h)   Litigation. In the event that either party to this Employment
Agreement institutes litigation against the other party to enforce her or its
respective rights under this Employment Agreement, each party shall pay its own
costs and expenses incurred in connection with such litigation.

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      IN WITNESS WHEREOF, the Company and Executive have executed this
Employment Agreement in multiple originals effective as of the Effective Date.

GOLFSMITH INTERNATIONAL, INC.                EXECUTIVE

By: /s/ James D. Thompson                       /s/ Virginia Bunte
   ---------------------------               --------------------------
Name:   James D. Thompson                    Name:  Virginia Bunte
Title:  President

Date: 1/15/03                                Date:   1/15/03
     -------------------------               --------------------------

ACCEPTED AND APPROVED BY:

GOLFSMITH INTERNATIONAL
HOLDINGS, INC.

By:  /s/ Noel Wilens
     -------------------------
Name:    Noel Wilens
Title:   President

Date: 1/15/03
      ------------------------

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                                   SCHEDULE A

                                  BONUS PROGRAM

For purposes of this Employment Agreement, the Executive's annual bonus shall be
calculated based upon the Company attaining mutually agreed upon EBITDA targets
for that year in accordance with the following:

<TABLE>
<S>                <C>       <C>       <C>        <C>        <C>        <C>        <C>
% of EBITDA        90.00 -   95.00 -   100.00 -   105.00 -   110.00 -   115.00 -   120% or
Target             94.99%    99.99%    104.99%    109.99%    114.99%    119.99%    greater

% of Current         50%       60%       75%       87.5%       100%       105%      110%
Annual Base
Salary
</TABLE><PAGE>

                                                                   EXHIBIT 10.16

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                     GOLFSMITH INTERNATIONAL HOLDINGS, INC.

                            2002 INCENTIVE STOCK PLAN

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<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   Page
                                                                                                                   ----
<S>                                                                                                                <C>
SECTION 1. BACKGROUND AND PURPOSE................................................................................    1

SECTION 2. DEFINITIONS...........................................................................................    1

     2.1    Affiliate............................................................................................    1
     2.2    Board................................................................................................    1
     2.3    Change in Control....................................................................................    1
     2.4    Code.................................................................................................    2
     2.5    Committee............................................................................................    2
     2.6    Director.............................................................................................    2
     2.7    Fair Market Value....................................................................................    2
     2.8    ISO..................................................................................................    3
     2.9    Key Employee.........................................................................................    3
     2.10   1933 Act.............................................................................................    3
     2.11   1934 Act.............................................................................................    3
     2.12   Non-ISO..............................................................................................    3
     2.13   Option...............................................................................................    3
     2.14   Option Certificate...................................................................................    3
     2.15   Option Price.........................................................................................    3
     2.16   Parent...............................................................................................    3
     2.17   Plan.................................................................................................    3
     2.18   Golfsmith............................................................................................    4
     2.19   Rule 16b-3...........................................................................................    4
     2.20   Stock................................................................................................    4
     2.21   Stock Grant..........................................................................................    4
     2.22   Stock Grant Certificate..............................................................................    4
     2.23   SAR Value............................................................................................    4
     2.24   Stock Appreciation Right.............................................................................    4
     2.25   Stock Appreciation Right Certificate.................................................................    4
     2.26   Subsidiary...........................................................................................    4
     2.27   Ten Percent Stockholder..............................................................................    4

SECTION 3. SHARES RESERVED UNDER PLAN............................................................................    4

SECTION 4. EFFECTIVE DATE........................................................................................    5

SECTION 5. COMMITTEE.............................................................................................    5

SECTION 6. ELIGIBILITY...........................................................................................    6

SECTION 7. OPTIONS...............................................................................................    6

     7.1    Committee Action.....................................................................................    6
     7.2    $100,000 Limit.......................................................................................    7
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                 <C>
     7.3    Option Price.........................................................................................    7
     7.4    Payment..............................................................................................    7
     7.5    Exercise Period......................................................................................    8
     7.6    Reload Option Grants.................................................................................    8

SECTION 8. STOCK APPRECIATION RIGHTS.............................................................................    9

     8.1    Committee Action.....................................................................................    9
     8.2    Terms and Conditions.................................................................................   10
     8.3    Exercise.............................................................................................   11

SECTION 9. STOCK GRANTS..........................................................................................   12

     9.1    Committee Action.....................................................................................   12
     9.2    Conditions...........................................................................................   12
     9.3    Dividends and Voting Rights..........................................................................   13
     9.4    Satisfaction of Forfeiture Conditions; Provision for Income Taxes....................................   14

SECTION 10. NON-TRANSFERABILITY..................................................................................   14

SECTION 11. SECURITIES REGISTRATION..............................................................................   15

SECTION 12. LIFE OF PLAN.........................................................................................   16

SECTION 13. ADJUSTMENT...........................................................................................   16

     13.1   Capital Structure....................................................................................   16
     13.2   Mergers..............................................................................................   17
     13.3   Fractional Shares....................................................................................   17

SECTION 14. SALE, MERGER OR CHANGE IN CONTROL....................................................................   18

SECTION 15. AMENDMENT OR TERMINATION.............................................................................   18

SECTION 16. MISCELLANEOUS........................................................................................   19

     16.1   Stockholder Rights...................................................................................   19
     16.2   No Contract of Employment............................................................................   20
     16.3   Withholding..........................................................................................   20
     16.4   Construction.........................................................................................   20
     16.5   Other Conditions.....................................................................................   21
     16.6   Rule 16b-3...........................................................................................   21
     16.7   Loans................................................................................................   21
</TABLE>

                                      -ii-

<PAGE>

                           SECTION 1. BACKGROUND AND PURPOSE

                  The purpose of this Plan is to promote the interests of
Golfsmith by authorizing the Committee to grant Options and Stock Appreciation
Rights and to make Stock Grants to Key Employees and Directors in order (1) to
attract and retain Key Employees and Directors, (2) to provide an additional
incentive to each Key Employee or Director to work to increase the value of
Stock and (3) to provide each Key Employee or Director with a stake in the
future of Golfsmith which corresponds to the stake of each of Golfsmith's
stockholders.

                           SECTION 2. DEFINITIONS

         "AFFILIATE" means any organization (other than a Subsidiary) that would
be treated as under common control with Golfsmith under Section 414(c) of the
Code if "50 percent" were substituted for "80 percent" in the income tax
regulations under Section 414(c) of the Code.

         "BOARD" means the Board of Directors of Golfsmith.

         "CHANGE IN CONTROL" means a transaction (other than an initial public
offering of Stock) which occurs after the effective date of this Plan pursuant
to which (1) there is a "change in control" of Golfsmith of a nature that would
be required to be reported in response to Item 6(e) of Schedule 14A for a proxy
statement filed under Section 14(a) of the 1934 Act, (2) a "person" (as that
term is used in Section 14(d)(2) of the 1934 Act), other than any general or
limited partner of Atlantic Equity Partners III, L.P. or any person or entity
controlled by First Atlantic Capital, Ltd., becomes the beneficial owner (as
defined in Rule 13d-3 under the 1934 Act) directly or indirectly of securities
representing 50% or more of the combined voting power for election of directors
of the then outstanding securities of Golfsmith, (3) the individuals who at

<PAGE>

the beginning of any period of two consecutive years or less constitute the
Board cease for any reason during such period to constitute at least a majority
of the Board, unless the election or nomination for election of each new member
of the Board was approved by vote of at least two-thirds of the members of the
Board then still in office who were members of the Board at the beginning of
such period, (4) the stockholders of Golfsmith approve any dissolution or
liquidation of Golfsmith or any sale or disposition of 50% or more of the assets
or business of Golfsmith or (5) the stockholders of Golfsmith approve a merger
or consolidation to which Golfsmith is a party (other than a merger or
consolidation with a wholly-owned subsidiary of Golfsmith) or a share exchange
in which Golfsmith shall exchange Golfsmith shares for shares of another
corporation as a result of which the persons who were stockholders of Golfsmith
immediately before the effective date of such merger, consolidation or share
exchange shall have beneficial ownership of less than 50% of the combined voting
power for election of directors of the surviving corporation following the
effective date of such merger, consolidation or share exchange.

         "CODE" means the Internal Revenue Code of 1986, as amended.

         "COMMITTEE" means a committee of the Board, each member of which shall
be appointed by and shall serve at the pleasure of the Board.

         "DIRECTOR" means any member of the Board who is not an employee of
Golfsmith or a Parent or Subsidiary or Affiliate.

         "FAIR MARKET VALUE" means the price which the Committee acting in good
faith determines through any reasonable valuation method that a share of Stock
might change hands

                                      -2-

<PAGE>

between a willing buyer and a willing seller, neither being under any compulsion
to buy or to sell and both having reasonable knowledge of the relevant facts.

         "INCENTIVE STOCK OPTION" or "ISO" means an option granted under this
Plan to purchase Stock which is intended to satisfy the requirements of Section
422 of the Code.

         "KEY EMPLOYEE" means an employee of, or consultant to, Golfsmith or any
Subsidiary or Parent or Affiliate designated by the Committee who, in the
judgment of the Committee acting in its absolute discretion, is key directly or
indirectly to the success of Golfsmith.

         "1933 ACT" means the Securities Act of 1933, as amended.

         "1934 ACT" means the Securities Exchange Act of 1934, as amended.

         "NON-QUALIFIED INCENTIVE STOCK OPTION" or "NON-ISO" means an option
granted under this Plan to purchase Stock which is intended to fail to satisfy
the requirements of Section 422 of the Code.

         "OPTION" means an ISO or a Non-ISO which is granted under Section 7.

         "OPTION CERTIFICATE" means the written certificate which sets forth the
terms and conditions of an Option granted under this Plan.

         "OPTION PRICE" means the price which shall be paid to purchase one
share of Stock upon the exercise of an Option granted under this Plan.

         "PARENT" means any corporation which is a parent corporation (within
the meaning of Section 424(e) of the Code) of Golfsmith.

         "PLAN" means the Golfsmith International, Inc. 2002 Incentive Stock
Plan as effective as of the date adopted by the Board in 2002 and as amended
from time to time thereafter.

                                      -3-

<PAGE>

         "GOLFSMITH" means Golfsmith International Holdings, Inc., a Delaware
corporation, and any successor to Golfsmith International Holdings, Inc.

         "RULE 16b-3" means the exemption under Rule 16b-3 to Section 16(b) of
the 1934 Act or any successor to such rule.

         "STOCK" means the common stock of Golfsmith.

         "STOCK GRANT" means Stock granted under Section 9.

         "STOCK GRANT CERTIFICATE" means the written certificate which sets
forth the terms and conditions of a Stock Grant.

         "SAR VALUE" means the value assigned by the Committee to a share of
Stock in connection with the grant of a Stock Appreciation Right under Section
8.

         "STOCK APPRECIATION RIGHT" means a right to receive the appreciation in
a share of Stock which is granted under Section 8.

         "STOCK APPRECIATION RIGHT CERTIFICATE" means the written certificate
which sets forth the terms and conditions of a Stock Appreciation Right which is
not granted as part of an Option.

         "SUBSIDIARY" means a corporation which is a subsidiary corporation
(within the meaning of Section 424(f) of the Code) of Golfsmith.

         "TEN PERCENT STOCKHOLDER" means a person who owns (after taking into
account the attribution rules of Section 424(d) of the Code) more than ten
percent of the total combined voting power of all classes of stock of either
Golfsmith, a Subsidiary or Parent.

                           SECTION 3. SHARES RESERVED UNDER PLAN

                  There shall (subject to Section 13) be 2,850,000 shares of
Stock reserved for issuance under this Plan, and no more than such number of
shares shall (subject to Section 13) be

                                      -4-

<PAGE>

issued in connection with the exercise of ISOs. Such shares of Stock shall be
reserved to the extent that Golfsmith deems appropriate from authorized but
unissued shares of Stock and from shares of Stock which have been reacquired by
Golfsmith. Any shares of Stock subject to an Option or Stock Grant which remain
unissued after the cancellation, expiration or exchange of such Option or Stock
Grant or which are forfeited after issuance and any shares of Stock subject to
issuance under a Stock Appreciation Right which remain unissued after the
cancellation or expiration of such Stock Appreciation Right thereafter shall
again become available for issuance under this Plan. Any shares of Stock used to
satisfy a withholding obligation shall be treated as issued under this Plan and
not again become available for grants under this Plan. Finally, if the Option
Price under an Option is paid in whole or in part in shares of Stock or if
shares of Stock are tendered to Golfsmith in satisfaction of any condition to a
Stock Grant, such shares thereafter shall become available for issuance under
this Plan and shall be treated the same as any other shares available for
issuance under this Plan.

                           SECTION 4. EFFECTIVE DATE

                  The effective date of this Plan shall be the date of its
adoption by the Board, provided the stockholders of Golfsmith (acting at a duly
called meeting of such stockholders) approve such adoption within twelve (12)
months of such effective date. Any Option or Stock Appreciation Right granted or
Stock Grant made before such stockholder approval automatically shall be granted
subject to such approval.

                           SECTION 5. COMMITTEE

         This Plan shall be administered by the Committee. The Committee acting
in its

                                      -5-

<PAGE>

absolute discretion shall exercise such powers and take such action as expressly
called for under this Plan and, further, the Committee shall have the power to
interpret this Plan and (subject to Section 14 and Section 15 and Rule 16b-3) to
take such other action in the administration and operation of this Plan as the
Committee deems equitable under the circumstances, which action shall be binding
on Golfsmith, on each affected Key Employee or Director and on each other person
directly or indirectly affected by such action.

                           SECTION 6. ELIGIBILITY

                  Only Key Employees who are employed by Golfsmith or a
Subsidiary shall be eligible for the grant of ISOs under this Plan. All Key
Employees and Directors shall be eligible for the grant of Non-ISOs and Stock
Appreciation Rights and for Stock Grants under this Plan.

SECTION 7. OPTIONS

                  7.1 Committee Action. The Committee acting in its absolute
discretion shall have the right to grant Options to Key Employees and to
Directors under this Plan from time to time to purchase shares of Stock and,
further, the Committee shall have the right to grant new Options in exchange for
the cancellation of outstanding Options which have a higher or lower Option
Price than the new Options. Each grant of an Option to a Key Employee or
Director shall be evidenced by an Option Certificate, and each Option
Certificate shall set forth whether the Option is an ISO or a Non-ISO and shall
set forth such other terms and conditions of such grant as the Committee acting
in its absolute discretion deems consistent with the terms of this Plan;
however, if the Committee grants an ISO and a Non-ISO to a Key Employee on the
same date,

                                      -6-

<PAGE>

the right of the Key Employee to exercise the ISO shall not be conditioned on
his or her failure to exercise the Non-ISO.

                  7.2 $100,000 Limit. No Option shall be treated as an ISO to
the extent that the aggregate Fair Market Value of the Stock subject to the
Option which would first become exercisable in any calendar year exceeds
$100,000. Any such excess shall instead automatically be treated as a Non-ISO.
The Committee shall interpret and administer the ISO limitation set forth in
this Section 7.2 in accordance with Section 422(d) of the Code, and the
Committee shall treat this Section 7.2 as in effect only for those periods for
which Section 422(d) of the Code is in effect.

                  7.3 Option Price. The Option Price for each share of Stock
subject to an Option shall be no less than the Fair Market Value of a share of
Stock on the date the Option is granted; provided, however, if the Option is an
ISO granted to a Key Employee who is a Ten Percent Stockholder, the Option Price
for each share of Stock subject to such ISO shall be no less than 110% of the
Fair Market Value of a share of Stock on the date such ISO is granted.

                  7.4 Payment. The Option Price shall be payable in full upon
the exercise of any Option, and at the discretion of the Committee, an Option
Certificate can provide for the payment of the Option Price either in cash, by
check or in Stock which has been held for at least 6 months and which is
acceptable to the Committee or in any combination of cash, check and such Stock.
The Option Price in addition may be paid through any cashless exercise procedure
which is acceptable to the Committee or its delegate and which is facilitated
through a sale of Stock. Any payment made in Stock shall be treated as equal to
the Fair Market Value of such

                                      -7-

<PAGE>

Stock on the date the certificate for such Stock (or proper evidence of such
certificate) is presented to the Committee or its delegate in such form as
acceptable to the Committee.

                  7.5 Exercise Period. Each Option granted under this Plan shall
be exercisable in whole or in part at such time or times as set forth in the
related Option Certificate, but no Option Certificate shall make an Option
exercisable on or after the earlier of :

                           (1)      the date which is the fifth anniversary of
                                    the date the Option is granted, if the
                                    Option is an ISO and the Key Employee is a
                                    Ten Percent Stockholder on the date the
                                    Option is granted, or

                           (2)      the date which is the tenth anniversary of
                                    the date the Option is granted, if the
                                    Option is (a) a Non-ISO or (b) an ISO which
                                    is granted to a Key Employee who is not a
                                    Ten Percent Stockholder on the date the
                                    Option is granted.

                  An Option Certificate may provide for the exercise of an
Option after the employment of a Key Employee or the term of a Director has
terminated for any reason whatsoever, including death or disability.

                  7.6 Reload Option Grants. The Committee as part of the grant
of an Option may provide in the related Option Certificate for the automatic
grant of an additional Option as of each date that a Key Employee or Director
exercises the original Option if the Key Employee or Director in connection with
such exercise uses (in accordance with Section 7.4) Stock to pay all or a part
of the Option Price or uses Stock to satisfy all or a part of any related tax
withholding requirement. As for each such additional Option,

                                      -8-

<PAGE>

                           (1)      the number of shares of Stock subject to the
                                    additional Option shall be no more than the
                                    number of shares of Stock used to pay the
                                    related Option Price or to satisfy the
                                    related withholding requirement,

                           (2)      the Option Price shall be no less than the
                                    Fair Market Value of a share of Stock on the
                                    date of the related exercise of the original
                                    Option,

                           (3)      the additional Option shall expire no later
                                    than the expiration date for the original
                                    Option,

                           (4)      the additional Option shall be subject to
                                    such other terms and conditions as the
                                    Committee deems appropriate under the
                                    circumstances, and

                           (5)      the additional Option shall be evidenced by
                                    a Stock Option Certificate.

                           SECTION 8. STOCK APPRECIATION RIGHTS

                  8.1 Committee Action. The Committee acting in its absolute
discretion shall have the right to grant Stock Appreciation Rights to Key
Employees and to Directors under this Plan from time to time, and each Stock
Appreciation Right grant shall be evidenced by a Stock Appreciation Right
Certificate or, if such Stock Appreciation Right is granted as part of an
Option, shall be evidenced by the Option Certificate for the related Option.

                                      -9-

<PAGE>

                  8.2 Terms and Conditions.

                           (a)      Stock Appreciation Right Certificate. If a
                                    Stock Appreciation Right is evidenced by a
                                    Stock Appreciation Right Certificate, such
                                    certificate shall set forth the number of
                                    shares of Stock on which the Key Employee's
                                    or Director's right to appreciation shall be
                                    based and the SAR Value of each share of
                                    Stock. Such SAR Value shall be no less than
                                    the Fair Market Value of a share of Stock on
                                    the date that the Stock Appreciation Right
                                    is granted. The Stock Appreciation Right
                                    Certificate shall set forth such other terms
                                    and conditions for the exercise of the Stock
                                    Appreciation Right as the Committee deems
                                    appropriate under the circumstances, but no
                                    Stock Appreciation Right Certificate shall
                                    make a Stock Appreciation Right exercisable
                                    on or after the date which is the tenth
                                    anniversary of the date such Stock
                                    Appreciation Right is granted.

                           (b)      Option Certificate. If a Stock Appreciation
                                    Right is evidenced by an Option Certificate,
                                    the number of shares of Stock on which the
                                    Key Employee's or Director's right to
                                    appreciation shall be based shall be the
                                    same as the number of shares of Stock
                                    subject to the related Option and the SAR
                                    Value for each such share of Stock shall be
                                    no less than the Option Price under the
                                    related Option. Each such Option Certificate
                                    shall provide that the exercise of the

                                      -10-

<PAGE>

                                    Stock Appreciation Right with respect to any
                                    share of Stock shall cancel the Key
                                    Employee's or Director's right to exercise
                                    his or her Option with respect to such share
                                    and, conversely, that the exercise of the
                                    Option with respect to any share of Stock
                                    shall cancel the Key Employee's or
                                    Director's right to exercise his or her
                                    Stock Appreciation Right with respect to
                                    such share. A Stock Appreciation Right which
                                    is granted as part of an Option shall be
                                    exercisable only while the related Option is
                                    exercisable. The Option Certificate shall
                                    set forth such other terms and conditions
                                    for the exercise of the Stock Appreciation
                                    Right as the Committee deems appropriate
                                    under the circumstances.

                  8.3 Exercise. A Stock Appreciation Right shall be exercisable
only when the Fair Market Value of a share of Stock on which the right to
appreciation is based exceeds the SAR Value for such share, and the payment due
on exercise shall be based on such excess with respect to the number of shares
of Stock to which the exercise relates. A Key Employee or Director upon the
exercise of his or her Stock Appreciation Right shall receive a payment from
Golfsmith in cash or in Stock issued under this Plan, or in a combination of
cash and Stock, and the number of shares of Stock issued shall be based on the
Fair Market Value of a share of Stock on the date the Stock Appreciation Right
is exercised. The Committee acting in its absolute discretion shall have the
right to determine the form and time of any payment under this Section 8.3.

                                      -11-

<PAGE>

                           SECTION 9. STOCK GRANTS

                  9.1 Committee Action. The Committee acting in its absolute
discretion shall have the right to make Stock Grants to Key Employees and to
Directors. Each Stock Grant shall be evidenced by a Stock Grant Certificate, and
each Stock Grant Certificate shall set forth the conditions, if any, under which
Stock will be issued under the Stock Grant and the conditions under which the
Key Employee's or Director's interest in any Stock which has been issued will
become non-forfeitable.

                  9.2 Conditions.

                           (a)      Conditions to Issuance of Stock. The
                                    Committee acting in its absolute discretion
                                    may make the issuance of Stock under a Stock
                                    Grant subject to the satisfaction of one, or
                                    more than one, condition which the Committee
                                    deems appropriate under the circumstances
                                    for Key Employees or Directors generally or
                                    for a Key Employee or a Director in
                                    particular, and the related Stock Grant
                                    Certificate shall set forth each such
                                    condition and the deadline for satisfying
                                    each such condition. Stock subject to a
                                    Stock Grant shall be issued in the name of a
                                    Key Employee or Director only after each
                                    such condition, if any, has been timely
                                    satisfied, and any Stock which is so issued
                                    shall be held by Golfsmith pending the
                                    satisfaction of the forfeiture conditions,
                                    if any, under Section 9.2(b) for the related
                                    Stock Grant.

                                      -12-

<PAGE>

                           (b)      Forfeiture Conditions. The Committee acting
                                    in its absolute discretion may make Stock
                                    issued in the name of a Key Employee or
                                    Director subject to one, or more than one,
                                    objective employment, performance or other
                                    forfeiture condition that the Committee
                                    acting in its absolute discretion deems
                                    appropriate under the circumstances for Key
                                    Employees or Directors generally or for a
                                    Key Employee or a Director in particular,
                                    and the related Stock Grant Certificate
                                    shall set forth each such forfeiture
                                    condition, if any, and the deadline, if any,
                                    for satisfying each such forfeiture
                                    condition. A Key Employee's or a Director's
                                    non-forfeitable interest in the shares of
                                    Stock underlying a Stock Grant shall depend
                                    on the extent to which he or she timely
                                    satisfies each such condition. Each share of
                                    Stock underlying a Stock Grant shall be
                                    unavailable under Section 3 after such grant
                                    is effective unless such share thereafter is
                                    forfeited as a result of a failure to timely
                                    satisfy a forfeiture condition, in which
                                    event such share of Stock shall again become
                                    available under Section 3 as of the date of
                                    such forfeiture.

                  9.3 Dividends and Voting Rights. If a cash dividend is paid on
a share of Stock after such Stock has been issued under a Stock Grant but before
the first date that a Key Employee's or a Director's interest in such Stock (1)
is forfeited completely or (2) becomes completely non-forfeitable, Golfsmith
shall pay such cash dividend directly to such Key

                                      -13-

<PAGE>

Employee or Director. If a Stock dividend is paid on such a share of Stock
during such period, such Stock dividend shall be treated as part of the related
Stock Grant, and a Key Employee's or a Director's interest in such Stock
dividend shall be forfeited or shall become non-forfeitable at the same time as
the Stock with respect to which the Stock dividend was paid is forfeited or
becomes non-forfeitable. The disposition of each other form of dividend which is
declared on such a share of Stock during such period shall be made in accordance
with such rules as the Committee shall adopt with respect to each such dividend.
A Key Employee or a Director also shall have the right to vote the Stock issued
under his or her Stock Grant during such period.

                  9.4 Satisfaction of Forfeiture Conditions; Provision for
Income Taxes. A share of Stock shall cease to be subject to a Stock Grant at
such time as a Key Employee's or a Director's interest in such Stock becomes
non-forfeitable under this Plan, and the certificate representing such share
shall be transferred to the Key Employee or Director as soon as practicable
thereafter. The Committee acting in its absolute discretion shall have the power
to authorize and direct Golfsmith to pay a cash bonus (or to provide in the
terms of the Stock Grant Certificate for Golfsmith to make such payment) to a
Key Employee to pay all, or any portion of, his or her federal, state and local
income tax liability which the Committee deems attributable to his or her
interest in the shares of Stock issued under his or her Stock Grant becoming
non-forfeitable and, further, to pay any such tax liability attributable to such
cash bonus.

                           SECTION 10. NON-TRANSFERABILITY

                  No Option, Stock Grant or Stock Appreciation Right shall
(absent the Committee's consent) be transferable by a Key Employee or a Director
other than by will or by the laws of descent and distribution, and any Option or
Stock Appreciation Right shall (absent

                                      -14-

<PAGE>

the Committee's consent) be exercisable during a Key Employee's or Director's
lifetime only by the Key Employee or Director. The person or persons to whom an
Option or Stock Grant or Stock Appreciation Right is transferred by will or by
the laws of descent and distribution (or with the Committee's consent)
thereafter shall be treated as the Key Employee or Director.

                           SECTION 11. SECURITIES REGISTRATION

                  As a condition to the receipt of shares of Stock under this
Plan, the Key Employee or Director shall, if so requested by Golfsmith, agree to
hold such shares of Stock for investment and not with a view of resale or
distribution to the public and, if so requested by Golfsmith, shall deliver to
Golfsmith a written statement satisfactory to Golfsmith to that effect.
Furthermore, if so requested by Golfsmith, the Key Employee or Director shall
make a written representation to Golfsmith that he or she will not sell or offer
for sale any of such Stock unless a registration statement shall be in effect
with respect to such Stock under the 1933 Act and any applicable state
securities law or he or she shall have furnished to Golfsmith an opinion in form
and substance satisfactory to Golfsmith of legal counsel satisfactory to
Golfsmith that such registration is not required. Certificates representing the
Stock transferred upon the exercise of an Option or Stock Appreciation Right or
upon the lapse of the forfeiture conditions, if any, on any Stock Grant may at
the discretion of Golfsmith bear a legend to the effect that such Stock has not
been registered under the 1933 Act or any applicable state securities law and
that such Stock cannot be sold or offered for sale in the absence of an
effective registration statement as to such Stock under the 1933 Act and any
applicable state securities law or an opinion in form and substance satisfactory
to Golfsmith legal counsel that such registration is not required.

                                      -15-

<PAGE>

SECTION 12. LIFE OF PLAN

                  No Option or Stock Appreciation Right shall be granted or
Stock Grant made under this Plan on or after the earlier of

                           (1)      the tenth anniversary of the effective date
                                    of this Plan (as determined under Section
                                    4), in which event this Plan otherwise
                                    thereafter shall continue in effect until
                                    all outstanding Options and Stock
                                    Appreciation Rights have been exercised in
                                    full or no longer are exercisable and all
                                    Stock issued under any Stock Grants under
                                    this Plan have been forfeited or have become
                                    non-forfeitable, or

                           (2)      the date on which all of the Stock reserved
                                    under Section 3 has (as a result of the
                                    exercise of Options or Stock Appreciation
                                    Rights granted under this Plan or the
                                    satisfaction of the forfeiture conditions,
                                    if any, on Stock Grants) been issued or no
                                    longer is available for use under this Plan,
                                    in which event this Plan also shall
                                    terminate on such date.

                           SECTION 13. ADJUSTMENT

                  13.1 Capital Structure. The number, kind or class (or any
combination thereof) of shares of Stock reserved under Section 3, the number,
kind or class (or any combination thereof) of shares of Stock subject to Options
or Stock Appreciation Rights granted under this Plan and the Option Price of
such Options and the SAR Value of such Stock Appreciation Rights as well as the
number, kind or class (or any combination thereof) of shares of Stock subject to
Stock Grants granted under this Plan shall be adjusted by the Committee in an
equitable manner

                                      -16-

<PAGE>

to reflect any change in the capitalization of Golfsmith, including, but not
limited to, such changes as stock dividends or stock splits.

                  13.2 Mergers. The Committee as part of any corporate
transaction described in Section 424(a) of the Code shall have the right to
adjust (in any manner which the Committee in its discretion deems consistent
with Section 424(a) of the Code) the number, kind or class (or any combination
thereof) of shares of Stock reserved under Section 3. Furthermore, the Committee
as part of any corporate transaction described in Section 424(a) of the Code
shall have the right to adjust (in any manner which the Committee in its
discretion deems consistent with Section 424(a) of the Code) the number, kind or
class (or any combination thereof) of shares of Stock subject to any outstanding
Stock Grants under this Plan and any related grant conditions and forfeiture
conditions, and the number, kind or class (or any combination thereof) of shares
subject to Option and Stock Appreciation Right grants previously made under this
Plan and the related Option Price and SAR Value for each such Option and Stock
Appreciation Right, and, further, shall have the right (in any manner which the
Committee in its discretion deems consistent with Section 424(a) of the Code) to
make any Stock Grants and Option and Stock Appreciation Right grants to effect
the assumption of, or the substitution for, stock grants and option and stock
appreciation right grants previously made by any other corporation to the extent
that such corporate transaction calls for such substitution or assumption of
such stock grants and stock option and stock appreciation right grants.

                  13.3 Fractional Shares. If any adjustment under this Section
13 would create a fractional share of Stock or a right to acquire a fractional
share of Stock, such fractional share shall be disregarded and the number of
shares of Stock reserved under this Plan and the number

                                      -17-

<PAGE>

subject to any Options or Stock Appreciation Right grants and Stock Grants shall
be the next lower number of shares of Stock, rounding all fractions downward. An
adjustment made under this Section 13 by the Committee shall be conclusive and
binding on all affected persons.

                           SECTION 14. SALE, MERGER OR CHANGE IN CONTROL

                  If (1) Golfsmith agrees on any date (whether or not such
agreement is subject to the approval of Golfsmith's stockholders) to sell all or
substantially all of its assets or agrees to any merger, consolidation,
reorganization, division or other corporate transaction in which Stock is
converted into another security or into the right to receive securities or
property or if (2) a tender offer is made on any date which could lead to a
Change in Control (other than a tender offer by Golfsmith or an employee benefit
plan established and maintained by Golfsmith), or if (3) there otherwise is a
Change in Control of Golfsmith on any date, then any and all conditions to the
exercise of all outstanding Options and Stock Appreciation Rights on such date
and any and all outstanding issuance and forfeiture conditions on any Stock
Grants on such date automatically shall be deemed satisfied in full on such
date, and the Board shall have the right (to the extent expressly required as
part of such transaction) to cancel such Options, Stock Appreciation Rights and
Stock Grants after providing each Key Employee and Director a reasonable period
(which period shall not be less than 10 business days) to exercise his or her
Options and Stock Appreciation Rights and to take such other action as necessary
or appropriate to receive the Stock subject to any Stock Grants.

SECTION 15. AMENDMENT OR TERMINATION

                  This Plan may be amended by the Board from time to time to the
extent that the

                                      -18-

<PAGE>

Board deems necessary or appropriate; provided, however, (1) no amendment shall
be made absent the approval of the stockholders of Golfsmith to the extent such
approval is required under applicable law and (2) no amendment shall be made to
Section 14 on or after any date described in Section 14(1), Section 14(2) or
Section 14(3) which might adversely affect any rights which otherwise vest on
such date. The Board also may suspend granting Options or Stock Appreciation
Rights or making Stock Grants under this Plan at any time and may terminate this
Plan at any time; provided, however, the Board shall not have the right
unilaterally to modify, amend or cancel any Option or Stock Appreciation Right
granted or Stock Grant made before such suspension or termination unless (x) the
Key Employee or Director consents in writing to such modification, amendment or
cancellation or (y) there is a dissolution or liquidation of Golfsmith or a
transaction described in Section 13 or Section 14.

                           SECTION 16. MISCELLANEOUS

                  16.1 Stockholder Rights. No Key Employee or Director shall
have any rights as a stockholder of Golfsmith as a result of the grant of an
Option or a Stock Appreciation Right pending the actual delivery of the Stock
subject to such Option or Stock Appreciation Right to such Key Employee or
Director. Subject to Section 9.3, a Key Employee's or a Director's rights as a
stockholder in the shares of Stock underlying a Stock Grant which is effective
shall be set forth in the related Stock Grant Certificate. Any stock issued or
purchased pursuant to this Plan is subject to the Stockholders Agreement dated
as of October 15, 2002, as it may be subsequently amended from time to time (the
"STOCKHOLDERS AGREEMENT"), and holders of any such stock, prior to its issuance,
shall become Management Stockholders under the Stockholders Agreement and
executive Management Stockholder Joinder.

                                      -19-

<PAGE>

                  16.2 No Contract of Employment. The grant of an Option or a
Stock Appreciation Right or a Stock Grant to a Key Employee or Director under
this Plan shall not constitute a contract of employment or a right to continue
to serve on the Board and shall not confer on a Key Employee or Director any
rights upon his or her termination of employment or service in addition to those
rights, if any, expressly set forth in the related Option Certificate, Stock
Appreciation Right Certificate, or Stock Grant Certificate.

                  16.3 Withholding. Each Option, Stock Appreciation Right and
Stock Grant shall be made subject to the condition that the Key Employee or
Director consents to whatever action the Committee directs to satisfy the
minimum statutory federal and state tax withholding requirements, if any, which
Golfsmith determines are applicable to the exercise of such Option or Stock
Appreciation Right or to the satisfaction of any forfeiture conditions with
respect to Stock subject to a Stock Grant issued in the name of the Key Employee
or Director. The Committee also shall have the right to provide in an Option
Certificate, Stock Appreciation Right Certificate or a Stock Grant Certificate
that a Key Employee or Director may elect to satisfy such minimum statutory
federal and state tax withholding requirements through a reduction in the cash
or the number of shares of Stock actually transferred to him or to her under
this Plan. No withholding shall be effected under this Plan which exceeds the
minimum statutory federal and state withholding requirements.

                  16.4 Construction. All references to Sections are to sections
of this Plan unless otherwise indicated. This Plan shall be construed under the
laws of the State of New York. Finally, each term set forth in Section 2 shall
have the meaning set forth opposite such term for

                                      -20-

<PAGE>

purposes of this Plan and, for purposes of such definitions, the singular shall
include the plural and the plural shall include the singular.

                  16.5 Other Conditions. Each Option Certificate, Stock
Appreciation Right Certificate or Stock Grant Certificate may require that a Key
Employee or Director (as a condition to the exercise of an Option or a Stock
Appreciation Right or the issuance of Stock subject to a Stock Grant) enter into
any agreement (including the Stockholders Agreement) or make such
representations prepared by Golfsmith, including (without limitation) any
agreement which restricts the transfer of Stock acquired pursuant to the
exercise of an Option or a Stock Appreciation Right or a Stock Grant or provides
for the repurchase of such Stock by Golfsmith.

                  16.6 Rule 16b-3. The Committee shall have the right to amend
any Option, Stock Grant or Stock Appreciation Right to withhold or otherwise
restrict the transfer of any Stock or cash under this Plan to a Key Employee or
Director as the Committee deems appropriate in order to satisfy any condition or
requirement under Rule 16b-3 to the extent Rule 16 of the 1934 Act might be
applicable to such grant or transfer.

                  16.7 Loans. If approved by the Committee, Golfsmith may lend
money to, or guarantee loans made by a third party to, subject to applicable
law, including the Sarbanes-Oxley Act, any Key Employee or Director to finance
all or a part of the exercise of any Option granted under this Plan or the
purchase of any Stock subject to a Stock Grant under this Plan, and the exercise
of an Option or the purchase of any such Stock with the proceeds of any such
loan shall be treated as an exercise or purchase for cash under this Plan.

             [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                      -21-

<PAGE>

                  IN WITNESS WHEREOF, Golfsmith International Holdings, Inc. has
caused its duly authorized officer to execute this Plan to evidence its adoption
of this Plan.

                                                 GOLFSMITH INTERNATIONAL
                                                 HOLDINGS, INC.

                                                 By: /s/ Noel Wilens
                                                     ----------------------
                                                     Name:  Noel Wilens
                                                     Title: Vice-President

                                                     Date:

                                      -22-

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