Document:

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                                                                     EXHIBIT 4.4

                              EOG RESOURCES, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

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                               TABLE OF CONTENTS

                                                                    Page

ARTICLE 1   PURPOSE, COMMITMENT AND INTENT

   1.1   Purpose ................................................     1
   1.2   Share Commitment .......................................     1
   1.3   Intent .................................................     1
   1.4   Shareholder Approval ...................................     1

ARTICLE 2   DEFINITIONS

   2.1   "Affiliate" ............................................     2
   2.2   "Beneficiary" ..........................................     2
   2.3   "Board of Directors" ...................................     2
   2.4   "Code" .................................................     2
   2.5   "Committee" ............................................     2
   2.6   "Company" ..............................................     2
   2.7   "Compensation" .........................................     2
   2.8   "Employee" .............................................     2
   2.9   "Employer" .............................................     2
   2.10  "Exercise Date" ........................................     2
   2.11  "Fair Market Value" or "FMV" ...........................     2
   2.12  "Grant Date" ...........................................     2
   2.13  "Offering Period" ......................................     2
   2.14  "Option" ...............................................     2
   2.15  "Option Price"..........................................     2
   2.16  "Participant" ..........................................     2
   2.17  "Plan" .................................................     3
   2.18  "Shares" ...............................................     3
   2.19  "Stock" ................................................     3

ARTICLE 3   ELIGIBILITY

   3.1   General Requirements ..................................      3
   3.2   Limitations Upon Participation ........................      3

ARTICLE 4   PARTICIPATION

   4.1   Grant and Exercise of Option ..........................      3
   4.2   Payroll Deduction .....................................      3
   4.3   Payroll Deductions Continuing .........................      4
   4.4   Right to Stop Payroll Deductions ......................      4
   4.5   Accounting for Funds ..................................      4

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                               TABLE OF CONTENTS

                                                                            Page

   4.6   Employer's Use of Funds...........................................   4

ARTICLE 5   IN SERVICE WITHDRAWAL, TERMINATION OF
            EMPLOYMENT, DEATH

   5.1   In Service Withdrawal.............................................   4
   5.2   Termination of Employment.........................................   4
   5.3   Death.............................................................   4

ARTICLE 6   EXERCISE OF OPTIONS

   6.1   Purchase of Stock.................................................   5
   6.2   Accounting for Stock..............................................   5
   6.3   Issuance of Shares................................................   5
   6.4   Restriction on Shares.............................................   5

ARTICLE 7   ADMINISTRATION

   7.1   Powers of Committee...............................................   6
   7.2   Standard of Judicial Review of Committee Actions..................   6

ARTICLE 8   ADOPTION OF PLAN BY OTHER EMPLOYERS

   8.1   Adoption Procedure................................................   6
   8.2   No Joint Venture Implied..........................................   7

ARTICLE 9   TERMINATION AND AMENDMENT OF THE PLAN

   9.1   Termination.......................................................   7
   9.2   Amendment.........................................................   7

ARTICLE 10   MISCELLANEOUS

  10.1   Designation of Beneficiary........................................   7
  10.2   Plan Not An Employment Contract...................................   8
  10.3   All Participants' Rights Are Equal................................   8
  10.4   Options Granted Are Not Transferable..............................   8
  10.5   Voting of Stock...................................................   8
  10.6   No Shareholder Rights.............................................   8

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                               TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----
  10.7    Governmental Regulations............................................8
  10.8    Notices.............................................................8
  10.9    Indemnification of Committee........................................8
  10.10   Tax Withholding.....................................................8
  10.11   Gender and Number...................................................9
  10.12   Severability........................................................9
  10.13   Governing Law; Parties to Legal Actions.............................9

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                                                                     EXHIBIT 4.4

                              EOG RESOURCES, INC.

                          EMPLOYEE STOCK PURCHASE PLAN

                                   ARTICLE 1

                         PURPOSE, COMMITMENT AND INTENT

     1.1  Purpose.  The purpose of this Plan is to provide Employees of the
Company and its Affiliates which adopt the Plan with an opportunity to purchase
Stock of the Company through offerings of options at a discount and thus develop
a stronger incentive to work for the continued success of the Company and its
Affiliates. Therefore, this Plan is available to all Employees of every Employer
upon their fulfilling the eligibility requirements of Section 3.1. Any Affiliate
may adopt it with the approval of the Committee by fulfilling the requirements
of Section 8.1. This Plan is sponsored by the Company. The Plan will terminate
on the tenth anniversary of the date of commencement of the initial offering
period under the Plan.

     1.2  Share Commitment.  The aggregate number of Shares authorized to be
sold pursuant to Options granted under this Plan is 500,000 Shares, subject to
adjustment as provided in this Section. Any Shares relating to Options that are
granted, but subsequently lapse, are canceled, or are otherwise not exercised by
the Exercise Date, shall be available for future grants of Options.

     In the event of any stock dividend, split-up, recapitalization, merger,
consolidation, combination or exchange of Shares, or the like, as a result of
which shares shall be issued in respect of the outstanding Shares, or the Shares
shall be changed into the same or a different number of the same or another
class of stock, the total number of Shares authorized to be committed to this
Plan, the number of Shares subject to each outstanding Option and the Option
Price applicable to each Option shall be appropriately adjusted by the
Committee.

     1.3  Intent.  It is the intention of the Company to have the Plan qualify
as an "employee stock purchase plan" under section 423 of the Code. Therefore,
the provisions of the Plan are to be construed in a manner consistent with the
requirements of section 423 of the Code.

     1.4  Shareholder Approval.  To be effective for an Employer, this Plan must
be approved by the shareholders of that Employer within 12 months before or
after the Plan is approved by the board of directors of that Employer. The
approval of shareholders must comply with all applicable provisions of the
corporate charter, bylaws and applicable laws of the jurisdiction prescribing
the method and degree of shareholder approval required for the issuance of
corporate stock or options.

                                   ARTICLE 2

                                  DEFINITIONS

     The words and phrases defined in this Article shall have the meaning set
out in these definitions throughout this Plan, unless the context in which any
word or phrase appears reasonably requires a broader, narrower, or different
meaning.

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     2.1  "Affiliate" means any parent corporation and any subsidiary
corporation. The term "parent corporation" means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if, at the
time of the action or transaction, each of the corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain. The term
"subsidiary corporation" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, at the time of the
granting of the Option, each of the corporations other than the last corporation
in the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in the
chain.

     2.2  "Beneficiary" means the person who is entitled to receive amounts
under the Plan upon the death of a Participant.

     2.3  "Board of Directors" means the board of directors of the Company.

     2.4  "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

     2.5  "Committee" means the Compensation Committee of the Board of Directors
of the Company.

     2.6  "Company" means EOG Resources, Inc.

     2.7  "Compensation" means the Employee's regular rate of wages from the
Employer.

     2.8  "Employee" means any person who is a common law employee of the
Employer excluding only those whose customary employment with the Employer is 20
hours or less per week.

     2.9  "Employer" means the Company and each Affiliate which has adopted the
Plan as provided in Section 8.1 of the Plan.

     2.10  "Exercise Date" means the last business day of the Offering Period,
which is the day that all Options that Participants have elected to exercise are
to be exercised.

     2.11  "Fair Market Value" or "FMV" of the Stock as of any date means the
closing price of the Stock on that date (or if there was no sale on a given
date, the next preceding date on which there was a sale) on the principal
securities exchange on which the Stock is listed.

     2.12  "Grant Date" means the first business day of the Offering Period,
which is the day the Committee grants all eligible Employees an Option under
this Plan.

     2.13  "Offering Period" means the six-month periods commencing on July 1
and January 1 of each year. The initial offering period shall begin July 1, 2001
unless the Committee determines that the initial Offering Period shall commence
on January 1, 2002.

     2.14  "Option" means an option granted under this Plan to purchase shares
of Stock at the Option Price on the Exercise Date.

     2.15  "Option Price" means the price to be paid for each Share upon
exercise of an Option, which shall be the lesser of (a) 85% of the FMV of a
Share on the Grant Date or (b) 85% of the FMV of a Share on the Exercise Date.

     2.16  "Participant" means a person who is eligible to be granted an Option
under this Plan and who elects to have payroll deductions withheld under the
Plan for the purpose of exercising that Option on the Exercise Date.

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     2.17  "Plan" means the EOG Resources, Inc. Employee Stock Purchase Plan, as
set out in this document and as it may be amended from time to time.

     2.18  "Shares" means shares of Stock.

     2.19  "Stock" means the Company's common stock.

                                   ARTICLE 3

                                  ELIGIBILITY

     3.1  General Requirements.  Each Employee is eligible to participate in the
Plan for a given Offering Period if he is an Employee on the Grant Date, subject
to the limitations imposed in Section 3.2.

     3.2  Limitations Upon Participation.  Any provision of this Plan to the
contrary notwithstanding, no Employee shall be granted an Option:

          (a) if, immediately after the grant, the Employee would own, including
     all outstanding options which are still exercisable to purchase Stock, five
     percent or more of the total combined voting power or value of all classes
     of Stock of the Company or of any parent or subsidiary of the Company
     within the meaning of sections 423 and 424 of the Code;

          (b) which permits the Employee to purchase Stock under all employee
     stock purchase plans, as defined in section 423 of the Code, of the Company
     and all Affiliates at a rate which exceeds $25,000 in Fair Market Value of
     the Stock (determined at the time the Option is granted) for each calendar
     year in which the option granted to the Employee is outstanding at any time
     as provided in sections 423 and 424 of the Code; or

          (c) which permits the Employee rights to purchase Stock in excess of
     the number of Shares set by the Committee if it deems such a restriction to
     be appropriate.

                                   ARTICLE 4

                                 PARTICIPATION

     4.1  Grant and Exercise of Option.  Effective as of the Grant Date the
Committee shall grant an Option to each Participant that shall be exercisable on
the Exercise Date only through funds accumulated by the Employee through payroll
deductions made during the Offering Period together with any funds remaining in
the Participant's payroll deduction account at the beginning of the Offering
Period. Except as may be determined otherwise by the Committee and announced to
Employees prior to an Offering Period, the number of Shares included in an
Option deemed to have been granted to an Employee on the Grant Date shall be
determined by dividing $12,500 by the FMV of a share of Stock on such date.

     4.2  Payroll Deduction.  For an Employee to become eligible to receive an
Option granted for a given Offering Period, the Employee must complete a payroll
deduction form and file it with the Employer no earlier than 30 nor later than
15 days prior to the beginning of the Offering Period. The payroll deduction
form shall permit a Participant to elect to have withheld from his Compensation
an amount no less than one percent, nor more than ten percent, of his
Compensation (only in whole percentages) taken pro rata from the Compensation
paid to him by the Employer. Each payroll deduction shall begin on the first pay
period ending after the beginning of an Offering Period and shall continue
through the last pay period ending prior to the

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Exercise Date. No Participant shall be permitted to begin payroll deductions at
any other time. A Participant may not make additional contributions to his Plan
account.

     4.3  Payroll Deductions Continuing.  A Participant's election to have
payroll deductions shall remain in effect for all ensuing Offering Periods until
changed by the Participant by filing an appropriate amended payroll deduction
form not earlier than 30 nor later than 15 days prior to the commencement of the
Offering Period for which it is to be effective.

     4.4  Right to Stop Payroll Deductions.  A Participant may discontinue
payroll deductions and his participation in the Plan as provided in Section 5.1,
but no other change may be made during an Offering Period and, specifically, a
Participant may not alter the rate of his payroll deductions for that Offering
Period.

     4.5  Accounting for Funds.  As of each payroll deduction period, the
Employer shall cause to be credited to the Participant's payroll deduction
account in a ledger established for that purpose, the funds withheld from and
attributable to the Employee's compensation for that period. No interest shall
be credited to the Participant's payroll deduction account at any time. The
obligation of the Employer to the Participant for this account shall be a
general corporate obligation and shall not be funded through a trust nor secured
by any assets which would cause the Participant to be other than a general
creditor of the Employer.

     4.6  Employer's Use of Funds.  All payroll deductions received or held by
an Employer may be used by the Employer for any corporate purposes, and the
Employer shall not be obligated to segregate such payroll deductions.

                                   ARTICLE 5

                             IN SERVICE WITHDRAWAL
                           TERMINATION OF EMPLOYMENT
                                     DEATH

     5.1  In Service Withdrawal.  A Participant may, at any time on or before 15
days prior to the Exercise Date, or such other date as shall be determined by
the Committee from time to time, elect to withdraw all funds then credited to
his payroll deduction account by giving written notice to his Employer in
accordance with the rules established by the Committee. All funds credited to
the Participant's payroll deduction account shall be paid to him as soon as
administratively feasible. The withdrawal election terminates the Participant's
right to exercise his Option on the Exercise Date and his entitlement to elect
any further payroll deductions for the then current Offering Period. Should the
Participant wish to participate in any future Offering Period, the Participant
must file a new payroll deduction election form with the Committee within the
time frame required for participation for that Offering Period.

     5.2  Termination of Employment.  If a Participant's employment is
terminated for any reason other than death prior to the Exercise Date, the
Option granted to the Participant for that Option Period shall lapse. The
Participant's payroll deduction account shall be returned to him as soon as
administratively feasible.

     5.3  Death.  If a Participant dies before the Exercise Date, the Option
granted to the Participant for that Offering Period shall lapse. The
Participant's payroll deduction account shall be returned to him as soon as
administratively feasible. If the Participant dies after the Exercise Date but
prior to the delivery of his certificate, the Stock shall be delivered to his
Beneficiary (or to his estate if he has no Beneficiary). If there is no
Beneficiary, the Stock shall be held in the Participant's account until the
representative of the estate has been appointed and provides such evidence as
may be required by the Committee before the certificate is

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delivered to the proper party together with a check in the amount of any
remaining funds in the Participant's payroll deduction account.

                                   ARTICLE 6

                              EXERCISE OF OPTIONS

     6.1  Purchase of Stock.  Subject to the limitations in Sections 3.2 and 4.1
of the Plan, on the Exercise Date of each Offering Period each Participant's
payroll deduction account shall be used to purchase the maximum number of whole
shares of Stock that can be purchased at the Option Price for that Offering
Period. Any funds remaining in a Participant's payroll deduction account after
the exercise of his Option for an Offering Period shall remain in the
Participant's account to be used in the ensuing Offering Period, together with
new payroll deductions, if any, for that Offering Period to exercise the next
succeeding Option which is to be exercised. If in any Offering Period the total
number of shares of Stock to be purchased by all Participants exceed the number
of shares of Stock committed to the Plan, then each Participant shall be
entitled to purchase only his pro rata portion of the shares of Stock remaining
available under the Plan based on the balances in each Participant's payroll
deduction account as of the Exercise Date. No fractional shares of Stock may be
purchased under this Plan. After the purchase of all shares of Stock available
on the Exercise Date, all Options granted for the Offering Period to the extent
not used shall terminate.

     6.2  Accounting for Stock.  After the Exercise Date of each Offering Period
a report shall be given to each Participant stating the amount of his payroll
deduction account, the number of shares of Stock purchased and the applicable
Option Price.

     6.3  Issuance of Shares.  As soon as administratively feasible after the
end of the Offering Period the Committee shall advise the appropriate officer of
the Company that the terms of the Plan have been complied with and that it is
appropriate for the officer to cause to be issued the shares of Stock upon which
Options have been exercised under the Plan. The Committee may determine to hold
such shares of Stock until the Participant requests such shares of Stock. The
Committee may determine in its discretion the manner of delivery of the shares
of Stock purchased under the Plan, which may be by electronic account entry into
new or existing accounts, delivery of certificates or any other means as the
Committee, in its discretion, deems appropriate. The Committee may, in its
discretion, hold the certificate for any shares of Stock or cause it to be
legended in order to comply with the securities laws of the applicable
jurisdiction.

     6.4  Restriction on Shares.  A Participant shall be free to undertake a
disposition (as that term is defined in Section 424(c) of the Code) of the
shares in his account at any time, whether by sale, exchange, gift, or other
transfer of legal title, but in the absence of such a disposition of the shares,
the shares must remain in the Participant's account at the brokerage or other
financial services firm designated by the Committee until the holding period set
forth in Section 423(a) of the Code has been satisfied. With respect to Shares
for which such holding period has been satisfied, the Participant may direct
that those Shares be moved to another account of Participant's choosing or
request that a stock certificate be issued and delivered to him.

     Notwithstanding anything to the contrary contained in this Plan, a
Participant shall not transfer or otherwise dispose of Stock in violation of the
Company's Insider Trading Policy.

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                                   ARTICLE 7

                                 ADMINISTRATION

     7.1  Powers of Committee.  The Committee has the exclusive responsibility
for the general administration of the Plan, and has all powers necessary to
accomplish that purpose, including but not limited to the following rights,
powers, and authorities:

          (a) to make rules for administering the Plan so long as they are not
     inconsistent with the terms of the Plan;

          (b) to construe all provisions of the Plan;

          (c) to correct any defect, supply any omission, or reconcile any
     inconsistency which may appear in the Plan;

          (d) to select, employ, and compensate at any time any consultants,
     accountants, attorneys, and other agents the Committee believes necessary
     or advisable for the proper administration of the Plan;

          (e) to determine all questions relating to eligibility, Fair Market
     Value, Option Price and all other matters relating to benefits or
     Participants' entitlement to benefits;

          (f) to resolve all controversies relating to the administration of
     the Plan, including but not limited to any differences of opinion arising
     between the Employer and a Participant, and any questions it believes
     advisable for the proper administration of the Plan; and

          (g) to delegate any clerical or record-keeping duties of the Committee
     as the Committee believes is advisable to properly administer the Plan.

     7.2  Standard of Judicial Review of Committee Actions.  The Committee has
full and absolute discretion in the exercise of each and every aspect of its
authority under the Plan. Notwithstanding anything to the contrary, any action
taken, or ruling or decision made, by the Committee in the exercise of any of
its powers and authorities under the Plan shall be final and conclusive as to
all parties other than the Company and its Affiliates, including without
limitation all Participants and their Beneficiaries, regardless of whether the
Committee or one or more of its members may have an actual or potential conflict
of interest with respect to the subject matter of the action, ruling, or
decision. No final action, ruling, or decision of the Committee shall be subject
to de novo review in any judicial proceeding; and no final action, ruling, or
decision of the Committee may be set aside unless it is held to have been
arbitrary and capricious by a final judgment of a court having jurisdiction with
respect to the issue.

                                   ARTICLE 8

                      ADOPTION OF PLAN BY OTHER EMPLOYERS

     8.1  Adoption Procedure.  With the approval of the Committee, any Affiliate
may adopt this Plan by:

          (a) a certified resolution or consent of the board of directors of the
     adopting Affiliate or an executed adoption instrument (approved by the
     board of directors of the adopting Affiliate) agreeing to be bound as an
     Affiliate by all the terms, conditions and limitations of this Plan; and

          (b) providing all information required by the Committee.

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     8.2  No Joint Venture Implied.  The document which evidences the adoption
of the Plan by an Affiliate shall become a part of this Plan. However, neither
the adoption of this Plan by an Affiliate nor any act performed by it in
relation to this Plan shall create a joint venture or partnership relation
between it and the Company or any other Affiliate.

                                   ARTICLE 9

                     TERMINATION AND AMENDMENT OF THE PLAN

     9.1  Termination.  The Company may, by action of the Board of Directors,
terminate the Plan at any time and for any reason. The Plan shall automatically
terminate upon the purchase by Participants of all shares of Stock committed to
the Plan, unless the number of Shares committed to the Plan are increased by the
Board of Directors and approved by the shareholders of the Company. Upon
termination of the Plan, as soon as administratively feasible there shall be
refunded to each Participant the remaining funds in his payroll deduction
account, and there shall be forwarded to the Participants certificates for all
shares of Stock held under the Plan for the account of Participants. The
termination of this Plan shall not affect the current Options already
outstanding under the Plan to the extent there are Shares committed, unless the
Participants agree.

     9.2  Amendment.  The Board of Directors reserves the right to modify, alter
or amend the Plan at any time and from time to time to any extent that it deems
advisable, including, without limiting the generality of the foregoing, any
amendment deemed necessary to ensure compliance of the Plan with Section 423 of
the Code. The Board of Directors may suspend operation of the Plan for any
period as it may deem advisable. However, no amendment or suspension shall
operate to reduce any amounts previously allocated to a Participant's payroll
deduction account, to reduce a Participant's rights with respect to shares of
Stock previously purchased and held on his behalf under the Plan nor to affect
the current Option a Participant already has outstanding under the Plan without
the Participant's agreement. Any amendment changing the aggregate number of
Shares to be committed to the Plan or the class of employees eligible to receive
Options under the Plan must have shareholder approval as set forth in Section
1.4.

                                   ARTICLE 10

                                 MISCELLANEOUS

     10.1  Designation of Beneficiary.

          (a) A Participant may file a written designation of a Beneficiary who
     is to receive any cash and Shares credited to the Participant's account
     under the Plan. If a Participant is married and the designated Beneficiary
     is not the Participant's spouse, written spousal consent shall be required
     for the designation to be effective.

          (b) A Participant may change his designation of a Beneficiary at any
     time by written notice. If a Participant dies when he has not validly
     designated a Beneficiary under the Plan, the Company shall deliver such
     Shares and cash to the executor or administrator of the estate of the
     Participant, or if no such executor or administrator has been appointed (to
     the knowledge of the Company), the Company, in its discretion, may deliver
     such Shares and cash to the spouse or to any one or more dependents or
     relatives of the Participant, or if no spouse, dependent or relative is
     known to the Company, then to such other person as the Company may
     designate.

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     10.2  Plan Not An Employment Contract.  The adoption and maintenance of
this Plan is not a contract between the Employer and its Employees which gives
any Employee the right to be retained in its employment. Likewise, it is not
intended to interfere with the rights of the Employer to discharge any Employee
at any time or to interfere with the Employee's right to terminate his
employment at any time.

     10.3  All Participants' Rights Are Equal.  All Participants will have the
same rights and privileges under this Plan as are required by section 423 of the
Code and section 1.423-2(f) of the regulations promulgated under that section of
the Code.

     10.4  Options Granted Are Not Transferable.  No Option granted a
Participant under this Plan is transferable by the Participant and must be
exercisable only by him. In the event any Participant attempts to violate the
terms of this Section, any Option held by the Participant shall be terminated by
the Company and upon return to the Participant of the remaining funds in his
payroll deduction account, all of his rights under the Plan will terminate.

     10.5  Voting of Stock.  Shares of Stock held under the Plan for the account
of each Participant shall be voted by the holder of record of those shares in
accordance with the Participant's instructions.

     10.6  No Shareholder Rights.  No eligible Employee or Participant shall by
reason of participation in the Plan have any rights of a shareholder of the
Company until he acquires shares of Stock as provided in this Plan.

     10.7  Governmental Regulations.  The obligation to sell or deliver the
shares of Stock under this Plan is subject to the approval of all governmental
authorities required in connection with the authorization, purchase, issuance or
sale of that Stock.

     10.8  Notices.  All notices and other communication in connection with the
Plan shall be in the form specified by the Committee and shall be deemed to have
been duly given when sent to the Participant at his last known address or to his
designated personal representative or beneficiary, or to the Employer or its
designated representative, as the case may be.

     10.9  Indemnification of Committee.  In addition to all other rights of
indemnification as they may have as directors or as members of the Committee,
the members of the Committee shall be indemnified by the Company against the
reasonable expenses, including attorneys' fees, actually and necessarily
incurred in connection with the defense of any action, suit or proceeding, or in
connection with any appeal, to which they or any of them may be a party by
reason of any action taken or failure to act under or in connection with the
Plan or any Option granted under the Plan, and against all amounts paid in
settlement (provided the settlement is approved by independent legal counsel
selected by the Company) or paid by them in satisfaction of a judgment in any
action, suit or proceeding, except in relation to matters as to which it is
adjudged in the action, suit or proceeding, that the Committee member is liable
for gross negligence or willful misconduct in the performance of his duties.

     10.10  Tax Withholding.  At the time a Participant's Option is exercised or
at the time a Participant disposes of some or all of the Stock purchased under
the Plan, the Participant must make adequate provision for the Employer's
federal, state or other tax withholding obligations, if any, which arise upon
the exercise of the Option or the disposition of the Stock. At any time, the
Employer may, but shall not be obligated to, withhold from the Participant's
compensation the amount necessary for the Employer to meet applicable
withholding obligations.

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     The IRS recently issued guidance providing that it will not require the
withholding or payment of FICA or FUTA taxes or withholding for Federal income
taxes at the time a participant's Options are exercised or at the time a
participant disposes of some or all of the Stock purchased under the Plan prior
to January 1, 2003. The IRS stated that further guidance regarding withholding
may be issued effective January 1, 2003 in which it may require the withholding
and payment of FICA, FUTA, and Federal income taxes upon an exercise or
disposition made on or after that date.

     10.11  Gender and Number.  If the context requires it, words of one gender
when used in this Plan shall include the other genders, and words used in the
singular or plural shall include the other.

     10.12  Severability.  Each provision of this Plan may be severed. If any
provision is determined to be invalid or unenforceable, that determination shall
not affect the validity or enforceability of any other provision.

     10.13  Governing Law; Parties to Legal Actions.  The provisions of this
Plan shall be construed, administered, and governed under the laws of the State
of Texas and, to the extent applicable, by the securities, tax, employment and
other laws of the United States which are applicable to an employee stock
purchase plan.

                                       9<PAGE>

                                                                   EXHIBIT 10.18

                             EMPLOYMENT AGREEMENT
                             --------------------

          This Agreement ("Agreement") is made and entered into as of the 21st
day of May 2001 between C. David Zoba residing at 2626 Haverford Road, Columbus,
Ohio 43220 ("Employee"), and Galyan's Trading Company, Inc., an Indiana
corporation ("Company").

     1.   TERM OF EMPLOYMENT:  Subject to the terms of this Agreement, Company
          ------------------
hereby agrees to employ Employee, and Employee hereby agrees to accept such
employment, for the period beginning on May 29th, 2001 (the "Effective Date")
and ending at the close of business on the third anniversary of the Effective
Date or on such earlier date upon which this Agreement is terminated in
accordance with the provisions set forth herein (the "Initial Term"). The term
of this Agreement will automatically extend past the Initial Term for succeeding
periods of one year each unless either party terminates this Agreement as of the
end of the Initial Term, or as of the end of any subsequent one-year period (in
either case, the "Termination Date"), by delivering notice to the other party
specifying the applicable Termination Date not later than 90 days prior to the
date so specified. The "Term" of this Agreement shall include any automatic
extensions pursuant to the preceding sentence.

     2.   POSITION AND DUTIES:
          -------------------

          (a) General Duties; Performance: At all times during the Term,
Employee shall (i) serve as General Counsel, Secretary and Executive Vice
President responsible for real estate and legal and, in such capacity, shall
perform such duties and have such responsibilities not materially inconsistent
with the foregoing as may from time to time be assigned or delegated to him by
the Chief Executive Officer of the Company (the "CEO") or the Chief Operating
Officer of the Company (the "COO"). During this period, Employee shall
diligently and conscientiously devote his full and exclusive business time,
energy and ability to his duties and the business of Company. At all times
during the Term (i) Employee shall perform his duties faithfully and
efficiently, subject to the direction of the CEO and the COO; and (ii) Employee
shall observe and comply with all directions, policies and regulations given or
promulgated by the CEO or the COO.

          (b) Non-Contravention: Employee represents and warrants that (i) he
has the full right and authority to enter into this Agreement and to render the
services as required under this Agreement, (ii) by signing this Agreement he is
not breaching any contract or legal obligation he owes to any third party and
(iii) he is not party to any other agreement with Company or any other party
providing for the performance by him of services or, in the case of Company and
its subsidiaries, for any compensation to be paid to him.

     3.   COMPENSATION, BENEFITS AND EXPENSES:  During the Term, Company shall
          -----------------------------------
compensate Employee for his services as follows:

          (a) Salary and Expenses: Company shall pay Employee a base salary at
an annual rate of $300,000 for the period from the Effective Date through and
including February 2/nd/ 2002 and $325,000 for fiscal year 2002, with an
increase to at least $350,000 per year for fiscal year 2003, in each case less
standard income and payroll tax withholding and other authorized deductions.
Such salary shall be earned and shall be payable in regular installments in

                                      -1-
<PAGE>

accordance with Company's normal payroll practices.  Employee shall also be
entitled to reimbursement for reasonable business expenses in accordance with
Company policy.

     (b) Health Insurance:  Employee and his dependents shall be eligible to
participate in Company's group health plan as in effect from time to time for
employees of Company.

     (c) Bonus:  Employee shall be eligible to receive an annual bonus in
accordance with the Company's existing bonus program, with such bonus to be
determined based on Company achieving its targeted operating income for the
applicable fiscal year (the "Target Income") as set forth in Company's annual
budget for such fiscal year prepared by management and approved by the Board.
The "Target Bonus" shall be equal to 40% of base salary in each fiscal year
beginning in fiscal year 2001 with the ability to earn up to 200% of the Target
Bonus if the Target Income is exceeded by an amount to be determined by the
Board.

     (d) Vacation:  Employee shall be entitled to annual paid vacation in
accordance with Company's policies as in effect from time to time for similarly
situated executive employees of Company, but not less than four weeks of paid
vacation per year.

     (e) Retirement Plan:  Employee shall be eligible to participate in
Company's retirement plans applicable to Employee, in accordance with the terms
of such plans.  Employee understands that the Board monitors such plans or
arrangements and may, from time to time, add benefits to or delete benefits from
the plans or arrangements, or modify or terminate existing plans or
arrangements, provided that no such modification or termination shall decrease
the retirement benefits accrued by the Employee prior to the modification or
termination without the written consent of the Employee.

     (f) Stay Bonus:  So long as this Agreement has not been terminated by
Employee or by Company for Cause (as hereinafter defined), at the end of each of
fiscal year 2001, 2002 and 2003, Company shall pay to Employee a stay bonus of
$100,000 in accordance with its customary bonus payment schedule.

     (g) Company Stock/Options.  The Company shall grant to Employee (i) the
right to purchase shares of  Class A common stock of Company (the "Common
Stock") upon the terms and conditions set forth in a Stock Subscription
Agreement attached hereto as Exhibit A and (ii) 110,000 options with a $19.00
                             ---------
exercise price pursuant to Company's 1999 Stock Option Plan (collectively, the
"Options"); provided that the grant of Options is subject to Employee purchasing
at least 30,000 shares of Common Stock at a per share price of $19.00 (up to
$285,000 of which may be financed by the Company on the terms and conditions set
forth in the Stock Subscription Agreement and the related Stock Pledge Agreement
and Secured Promissory Note attached hereto as Exhibit B and Exhibit C,
                                               ---------     ---------
respectively) pursuant to clause (i) hereof.  The Options shall become vested in
one-third increments on the Employee's first anniversary, second anniversary and
third anniversary with the Company.  The Options shall be governed by and
subject to the terms and conditions of the 1999 Stock Option Plan and Employee's
Stock Option Agreement.

                                      -2-
<PAGE>

          (h)  Moving Expenses: Company shall reimburse Employee for (1)
reasonable expenses incurred in connection with Employee's relocation to
Indiana, (2) the reasonable commuting and temporary living costs for a period of
up to eight months from the Effective Date, including, without limitation,
airfare and ground transportation between Columbus, Ohio and Indianapolis,
Indiana every other week during such eight-month period, house hunting and
relocation trips to Indianapolis, Indiana for Employee's wife during such eight-
month period and (3) points associated with the purchase of a residence in the
greater Indianapolis area, in each case upon the provision to the Company of
receipts evidencing such expenses. In addition to the foregoing, Company agrees
to make on June 1, 2001 a one time payment to Employee in the amount of $50,000
for incidental expenses incurred by Employee in connection with his relocation.
Company agrees to indemnify Employee against any incremental income tax
liability incurred as a result of the payment of his temporary living costs and
any other non-deductible relocation costs by Company (other than the $50,000
payment described in the immediately preceding sentence).

     4.   TERMINATION: Employee's employment with Company during the Term may be
          -----------
terminated by Company under the circumstances described in this Paragraph 4, and
subject to the provisions of Paragraph 5:

          (a) Cause: Company may immediately terminate Employee's employment for
Cause by giving written notice to Employee identifying in reasonable detail the
act or acts said to constitute "Cause." For purposes of this Agreement, "Cause"
shall mean that Company, acting reasonably and in good faith based upon the
information then known to Company, determines that Employee has engaged in or
committed: willful misconduct; gross negligence; theft, fraud or other illegal
conduct; any willful act that is likely to materially injure the reputation,
business or a business relationship of Company; refusal or unwillingness to
perform his duties or responsibilities under this Agreement in a satisfactory
manner or failure to comply with written policies and directives of Company, in
either case for thirty (30) days following specific written notice thereof;
Employee's death or Disability (as defined below); or material breach of any
term of this Agreement following specific notice thereof from Company. For
purposes of this Paragraph 4(a), "Disability" shall mean a physical or mental
impairment which substantially limits a major life activity of Employee and
which renders Employee unable to perform the essential functions of his
position, even with reasonable accommodation which does not impose an undue
hardship on Company. Company, acting reasonably and in good faith, shall have
the right to make the determination of disability under this Agreement.

          (b) Other than Cause:  Company may immediately terminate Employee's
employment for any reason other than Cause by giving ten (10) days written
notice to Employee.

          (c) Good Reason. Employee may terminate employment hereunder for "Good
Reason" by delivering to the Company (1) a Preliminary Notice of Good Reason (as
defined below), and (2) not earlier than thirty (30) days and not later than
three (3) months from the delivery of such Preliminary Notice of Good Reason, a
Notice of Termination. For purposes of this Agreement, "Good Reason" means, the
assignment (without the express written consent of Employee) to Employee of a
significantly lower position in the organization in terms of his responsibility,
authority and status, any significant reduction in Employee's authority or
status, or requiring Employee to perform services not commensurate with
Employee's ability,

                                      -3-
<PAGE>

experience and qualifications; requiring Employee (without his consent) to
relocate his primary work location more than 50 miles away from the current
principal office of the Company in Plainfield, Indiana, any reduction in the
Employee's base salary or bonus opportunity; or any material breach by the
Company of the terms of this Agreement; provided that "Good Reason" shall not
include (A) acts not taken in bad faith which are cured by the Company in all
respects not later than thirty (30) days from the receipt by the Company of a
written notice from the Employee identifying in reasonable detail the act or
acts constituting "Good Reason" (a "Preliminary Notice of Good Reason") or (b)
acts taken by the Company as a result of grounds for termination of employment
for Cause pursuant to Section 4(a) hereof. A Preliminary Notice of Good Reason
shall not, by itself, constitute a Notice of Termination.

     5.   OBLIGATIONS UPON TERMINATION:
          ----------------------------

          (a) Cause: If Company terminates Employee for Cause at any time during
the Term, Employee (or his estate in the event of his death) will receive his
base salary and other compensation and benefits earned under this Agreement but
not yet paid or delivered to Employee as of the date of termination, including
retirement benefits accrued through the date of such termination and payable
under the terms of such plans, but excluding (except in the case of death or
disability) any bonus. In the event of disability or death, Employee (or his
estate) shall also receive a payment (at the time Company traditionally makes
such payment) equal to a pro-rata share of the annual bonus he would have earned
(as determined in a manner consistent with Paragraph 3(c) hereof) based on
Company's actual results for the fiscal year. For purposes of the preceding
sentence, Employee's pro-rata share shall be a fraction of the number of days in
the fiscal year, the numerator of which shall be the number of days in the
fiscal year prior to Employee's death or disability and the denominator of which
shall be 365. Other than the amounts specified in this Paragraph 5(a), Employee,
as a result of a termination for Cause, will not be entitled to any severance
pay or any other compensation or benefits of any nature whatsoever, except as
may be payable under the terms of other plans or agreements in the event of
disability or death.

          (b) Other Than Cause: If Company terminates Employee for any reason
other than Cause at any time during the Term or if Employee terminates
employment for any Good Reason, Employee shall receive, subject to the
limitations set forth below, (i) his base salary and other compensation and
benefits earned under this Agreement but not yet paid or delivered to Employee
as of the date of his termination, including retirement benefits accrued through
the date of such termination and payable under the terms of such plans, (ii) the
Target Bonus, if any, for the applicable fiscal year in which the Employee is
terminated and (iii) severance pay constituting the continuation of his then-
current base salary, less standard income and payroll tax withholding and other
authorized deductions, plus continued health coverage and a payment equal to the
benefits that absent termination of employment would have accrued under the
Company's tax-qualified and non-qualified retirement plans (which benefits shall
be deemed fully vested), until the later of the date that is (x) the first
anniversary of the date of his termination and (y) the third anniversary of the
Effective Date.

          (c) Exclusive Remedy: Employee acknowledges that, other than the
payments described in this Paragraph 5, he shall have no other claims against,
and be entitled to no other

                                      -4-
<PAGE>

payments from, Company or its direct or indirect parents, subsidiaries,
affiliates or related companies upon any termination or breach by Company of
this Agreement.

     6.   LOYALTY, NON-COMPETITION AND CONFIDENTIALITY:  In consideration of the
          --------------------------------------------
employment provided by Company, Employee agrees with Company as follows:

          (a) Non-Competition: Employee acknowledges that his position will give
him access to confidential and highly sensitive non-public information of
substantial importance to Company, including but not limited to financial
information, identities of distributors, contractors and vendors utilized in
Company's business, non-public forms, contracts and other documents used in
Company's business, trade secrets used, developed or acquired by Company,
information concerning the manner and details of Company's operation,
organization and management, Company's business plans and strategies, price
information, customer lists and research and development data, and that the
services he will provide to Company are unique. During the "Non-Competition
Period" as defined in Paragraph 6(f) hereof, Employee agrees that in addition to
any other limitation, he will not directly or indirectly engage in, as an
employee, consultant or otherwise, any business in the United States primarily
engaged in the retail sporting goods or retail sports apparel business, nor will
he accept employment, consult for, or participate, directly or indirectly, in
the ownership or management of any enterprise in the United States engaged in
such a business. Notwithstanding the foregoing, Employee may invest as the
holder of not more than four percent (4%) of the outstanding shares of any
corporation whose stock is listed on any national or regional securities
exchange or reported by the National Association of Securities Dealers Automated
Quotation System or any successor thereto.

          (b) Other Employees, Customers:  Employee agrees that during the Non-
Competition Period, neither he nor any entity with which he is at the time
affiliated (and which is not affiliated with Company) shall, directly or
indirectly, hire or offer to hire or entice away or in any other manner persuade
or attempt to persuade any officer, employee, agent or customer of Company or
any of its affiliates, or any person who supplies goods or services or licenses
intangible or tangible property to Company or any of its affiliates to
discontinue his, her or its relationship with such entity.

          (c) Confidentiality: Except in the normal and proper course of his
duties hereunder, Employee will not use for his own account or disclose to
anyone else, during or after the Term of this Agreement, any confidential or
proprietary information or material relating in the reasonable opinion of
Company to Company's operations or businesses, including Company's subsidiaries,
which he may obtain from Company, its subsidiaries or their officers, directors
or employees, or otherwise during or by virtue of Employee's employment by
Company. Confidential or proprietary information or material includes, without
limitation, the following types of information or material, both existing and
contemplated, regarding Company, its direct or indirect parents, subsidiaries,
affiliates or related companies: proprietary data processing systems and
software; corporate information, including contractual arrangements, plans,
strategies, tactics, policies, resolutions, patent, copyright, trademark, and
tradename applications, and any litigation or negotiations; marketing
information, including sales or product plans, strategies, methods, customers,
prospects, or market research data; financial information, including cost and
performance data, debt arrangements, equity structure, investors, and

                                      -5-
<PAGE>

holdings; operational and scientific information, including trade secrets,
technical information, and personnel information, including personnel lists,
resumes, personnel data, organizational structure, and performance evaluations;
provided, however, that confidential or proprietary information shall not
include any information that is generally available to the public without breach
of this Agreement.

          (d) Intangible Property: All right, title and interest of every kind
and nature whatsoever, whether now known or unknown, in and to any intangible
property, including all trade names, unregistered trademarks and service marks,
brand names, patents, copyrights, registered trademarks and service marks and
all trade secrets and confidential know-how (collectively, the "Intangible
Property"), invented, created, written, developed, furnished, produced or
disclosed by Employee in the course of rendering his services to Company
hereunder shall, as between the parties hereto, be and remain the sole and
exclusive property of Company for any and all purposes and uses whatsoever, and
Employee shall have no right, title or interest of any kind or nature in such
Intangible Property, or in or to any results or proceeds therefrom. Employee
will, at the request of Company, execute such assignments, certificates and
other instruments as Company may from time to time deem necessary or desirable
to evidence, establish, maintain, perfect, protect, enforce or defend its right,
title and interest in and to, any of the foregoing.

          (e) Return of Documents: Employee agrees that all documents of any
nature pertaining to activities of Company, its direct or indirect parents,
subsidiaries, affiliates and related companies, used, prepared, or made
available to Employee in the course of rendering his services to Company
hereunder, including the information or materials covered by Paragraphs 6(c) and
6(d) hereof, are and shall be the property of Company or, as the case may be,
its direct or indirect parents, subsidiaries, affiliates or related companies,
and that all copies of such documents shall be surrendered to Company whenever
requested by the Company.

          (f) Non-Competition Period:  "Non-Competition Period" means the period
beginning on the Effective Date and ending on the date that is the later of (i)
the second anniversary of the date of termination of Employee's employment with
Company and (ii) three years from the Effective Date.

          (g) Enforcement:  Employee acknowledges that irreparable damage would
result to Company or its direct or indirect parents, subsidiaries, affiliates or
related companies if the provisions of this Paragraph 6 are not specifically
enforced, and agrees that Company shall be entitled to any appropriate legal,
equitable, or other remedy, including injunctive relief, in respect of any
failure to comply with the provisions of this Paragraph 6.

     7.   ENTIRE AGREEMENT:  This Agreement contains the entire understanding
          ----------------
between Company and Employee concerning Employee's employment with Company, and
supersedes all prior negotiations, term sheets, and agreements between them.

     8.   MODIFICATION: No provision of this Agreement may be amended, modified,
          ------------
or waived except by written agreement signed by both Company and Employee.

                                      -6-
<PAGE>

     9.   GOVERNING LAW:  The provisions of this Agreement shall be construed in
          -------------
accordance with, and governed by, the laws of the State of Indiana without
regard to principles of conflict of laws.

     10.  SAVINGS CLAUSE:  If any provision of this Agreement or the application
          --------------
thereof is held invalid, the invalidity shall not affect other provisions or
applications of the Agreement which can be given effect without the invalid
provisions or applications and to this end the provisions of this Agreement are
declared to be severable.

     11.  SUCCESSORS; NO ASSIGNMENT OF AGREEMENT:  Except as otherwise provided
          --------------------------------------
herein, this Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective legal representatives, heirs, successors
and assigns.  Employee acknowledges that his services are unique and personal.
Accordingly, Employee may not assign his rights or delegate his duties or
obligations under this Agreement to any person or entity.

     12.  ADDITIONAL REPRESENTATIONS:  Employee represents and warrants to
          --------------------------
Company that he is knowledgeable and sophisticated as to business matters,
including the subject matter of this Agreement, that he has read this Agreement
and that he understands its terms.  Employee acknowledges that, prior to
assenting to the terms of this Agreement, he had been given a reasonable time to
review it, to consult with counsel of his choice, and to negotiate at arm's-
length with Company as to its contents.  Company and Employee agree that the
language used in this Agreement is the language chosen by the parties to express
their mutual intent, and that Employee has entered into this Agreement freely
and voluntarily and without pressure or coercion from anyone.  Employee
represents and warrants to Company that he is not bound by any agreement or
subject to any restriction which would interfere with or prevent his entering
into or carrying out this Agreement.

     13.  RIGHTS AND WAIVERS:  All rights and remedies of the parties hereto are
          ------------------
separate and cumulative, and no one of them, whether exercised or not, shall be
deemed to be to the exclusion of any other rights or remedies or shall be deemed
to limit or prejudice any other legal or equitable rights or remedies which
either of the parties hereto may have.  No party to this Agreement shall be
deemed to waive any rights or remedies under this Agreement unless such waiver
is in writing and signed by such party.  No delay or omission on the part of
either party in exercising any right or remedy shall operate as a waiver of such
right or remedy or any other rights or remedies.  A waiver on any one occasion
shall not be construed as a bar to or a waiver of any right or remedy on any
future occasion.

     14.  SURVIVABILITY:  The expiration or termination of this Agreement shall
          -------------
not operate to affect such of the provisions hereof as are expressed to remain
in full force and effect notwithstanding such termination.

     15.  CAPTIONS:  The captions of this Agreement are for descriptive purposes
          --------
only and are not part of the provisions hereof and shall have no force or
effect.

     16.  NOTICES:  All notices and other communications hereunder shall be in
          -------
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows (or to such other party or address as

                                      -7-
<PAGE>

Company or Employee may designate in notice duly delivered to the other pursuant
to this paragraph):

          If to Employee, to him at his address set forth in the preamble
hereto, except that after August 15, 2001, notices to Employee shall be sent to:

          6045 Sunset Lane
          Indianapolis, IN 46778.

          If to Company, to it at:

          Galyan's Trading Company, Inc.
          2437 E. Main Street
          Plainfield, Indiana  46168
          Attn: Chuck Nelson

          With copies to:

          O'Melveny & Myers LLP
          153 East 53rd Street
          New York, New York  10022
          Attn:  Jeffrey J. Rosen

               and

          Freeman Spogli & Co.
          599 Lexington Avenue
          18th Floor
          New York, New York 10022
          Attn: John M. Roth

                 (Remainder of Page Intentionally Left Blank)

                                      -8-
<PAGE>

          IN WITNESS WHEREOF, Company and Employee, intending to be legally
bound, have executed this Agreement on the day and year first above written.

EMPLOYEE:                                     COMPANY:
                                              GALYAN'S TRADING COMPANY, INC.

/s/ C. David Zoba                                /s/ Robert Mang
________________________________              By:____________________________
C. David Zoba                                    Robert Mang
                                                 Chief Executive Officer

                                      S-1
<PAGE>

                       EXHIBIT A TO EMPLOYMENT AGREEMENT
                       ---------------------------------

                         GALYAN'S TRADING COMPANY, INC.

                        1999 STOCK SUBSCRIPTION AGREEMENT

          THIS STOCK SUBSCRIPTION AGREEMENT (this "Agreement") is made and
                                                   ---------
entered into as of May 29, 2001, by and between Galyan's Trading Company, Inc.,
an Indiana corporation (the "Company"), and C. David Zoba ("Purchaser").
                             -------                        ---------

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

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

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

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

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

          1. Sale and Purchase of Shares. The Company hereby agrees to sell to
             ---------------------------
Purchaser, subject to the conditions and restrictions contained in this
Agreement, and Purchaser hereby agrees to purchase from the Company,
30,000 shares of Class A Common Stock without par value of the Company
(individually, a "Share," and collectively, the "Shares" or the "Common Stock"),
                  -----                          ------          ------------
at a price of $19 per Share, for an aggregate purchase price of
$570,000 (the "Purchase Price"). The Purchase Price shall be payable by
               --------------
delivery of (a) cash or Purchaser's check in the amount of $285,000, and (b) a
secured promissory note of Purchaser issued to the Company for $285,000 due
five years from the effective date hereof (the "Note"). Payment of all amounts
                                                ----
owed under the Note and compliance by Purchaser with the terms and conditions of
this Agreement and the Pledge Agreement (as hereinafter defined) shall be
secured by a pledge of the Shares, in conjunction with which Purchaser shall
execute a Stock Pledge Agreement dated as of the date hereof (the "Pledge
                                                                   ------
Agreement"). Purchaser shall deliver the cash or check, the Note, and the Pledge
---------
Agreement to the Company prior to the Closing Date, each dated as of the Closing
Date. In connection with the purchase of Shares hereunder, Purchaser
acknowledges that he or she has reviewed the Disclosure Statement regarding
Section 83(b) of the Internal Revenue Code of 1986, as amended.

                                       1
<PAGE>

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

          (a) Compliance with Securities Laws. Notwithstanding anything
              -------------------------------
contained in this Agreement, Purchaser may not sell, transfer, assign, pledge,
hypothecate or otherwise dispose of (collectively, "Transfer"), or enter into
                                                    --------
any swap, participation or other arrangement that transfers to another person,
in whole or in part, any of the economic consequences of ownership with respect
to (a "Swap Transaction"), any of the Shares, or any right, title or interest
       ----------------
therein, except in compliance with the Securities Act of 1933, as amended (the
"Securities Act"), applicable state securities laws and this Agreement. Any
 --------------
purported Transfer or Transfers (including involuntary Transfers initiated by
operation of legal process) or Swap Transactions with respect to any of the
Shares or any right, title or interest therein, except in strict compliance with
the terms and conditions of this Agreement, shall be null and void.

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

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

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

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

                                       2
<PAGE>

          statement filed with, and declared effective by, the Securities and
          Exchange Commission.

                    (iii) From and after the Permitted Transfer Date, Purchaser
          may Transfer all or any portion of his Shares, provided that (x) the
          transferee executes a valid undertaking, in form and substance
          reasonably satisfactory to the Company, to the effect that such
          transferee and the Shares so Transferred shall thereafter remain
          subject to the provisions of Section 3, 4 and 5 of this Agreement and
          (y) such Transfer is subject to compliance with Section 3 hereof.

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

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

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

                                       3
<PAGE>

after such ninety (90) day period may be made only by again complying with the
procedures set forth in this Section 3.

                    (c) Termination on Initial Public Offering. This right of
                        --------------------------------------
first refusal shall terminate upon an underwritten public offering of Common
Stock by the Company registered under the Securities Act resulting in gross
proceeds to the Company and selling shareholders, if applicable, in excess of
$50 million and the sale of newly issued Common Stock representing at least
fifteen percent (15%) of the outstanding Common Stock of the Company (an
"Initial Public Offering").
------------------------

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

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

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

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

                    (d) Repurchase Notice. The Repurchase Option shall be
                        -----------------
exercised by the Company by delivery to Purchaser of a written notice (the
"Repurchase Notice") (a) setting forth the Company's intent to exercise the
 -----------------
Repurchase Option and containing the total number of Shares to be sold to the
Company pursuant to the Repurchase Option, (b) mailed, via postage pre-paid
registered or certified United States mail, to the attention of or otherwise
actually delivered to the Purchaser at the Purchaser's most recent address
reflected in the Company's

                                       4
<PAGE>

payroll records (or to such other representative of the Purchaser or such other
address as the Purchaser may duly notice in writing to the Company) and (c)
delivered to the Purchaser no later than the last day of the Repurchase Period.

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

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

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

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

                    (b) Closing of Sale. Purchaser agrees to timely take such
                        ---------------
actions as FS Equity may reasonably request in connection with the approval of
the consummation of such sale, transfer, reorganization, exchange, merger,
combination or other form of transaction, including voting as a stockholder to
approve any such sale, transfer, reorganization, exchange, merger, combination
or other form of transaction and waiving any appraisal rights that Purchaser may
have in connection therewith. Without limiting the generality of the foregoing,
within 30 days of Purchaser's receipt of the Sale Notice, Purchaser shall
deliver to FS Equity, certificates representing Purchaser's Shares to be sold
pursuant to this Section 5 together with stock powers duly endorsed in blank. In
the event that Purchaser fails to deliver such certificates, Company shall cause
the books and records of Company to show that Purchaser's Shares are bound by
the

                                       5
<PAGE>

provisions of this Section 5 and that such Shares shall be transferred only
to the Third Party Buyer upon surrender for transfer by Purchaser. Purchaser
hereby grants to FS Equity an irrevocable proxy to vote Purchaser's Shares and
to exercise all the rights, powers, privileges and remedies to which a holder of
such Shares would be entitled, which proxy shall be effective, automatically and
without the necessity of any action (including any transfer of any such Shares
on the records books of the Company) by any other person, upon the failure of
Purchaser to deliver any of his Shares pursuant to this Section 5 and which
proxy shall terminate only upon consummation of the sale of such Shares or 120
days after the Sale Notice is given (or such longer period as may be necessary
to complete any applicable regulatory approval process in connection with such
sale) if FS Equity has not completed the sale of such Shares in accordance
herewith.

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

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

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

                                       6
<PAGE>

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

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

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

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

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

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

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

                                       7

<PAGE>

such time as The Limited or FS Equity shall own less than 5% of the Shares, such
stockholder's right to designate members of the Board shall terminate.

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

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

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

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

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

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

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

                                       8
<PAGE>

                        (v) The Purchaser has been informed that the offer of
the Shares is being made pursuant to an exemption from the registration
requirements of the Securities Act, relating to transactions by an issuer not
involving a public offering, and that, consequently, the materials relating to
the offer have not been subject to review and comment by the staff of the
Securities and Exchange Commission or any other governmental authority.

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

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

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

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

          "THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO
          RESTRICTIONS UPON TRANSFER AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
          PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT IN ACCORDANCE
          WITH THE TERMS AND CONDITIONS OF THAT CERTAIN STOCK SUBSCRIPTION
          AGREEMENT DATED AS OF MAY 29, 2001, BY AND BETWEEN GALYAN'S TRADING
          COMPANY, INC., AN INDIANA CORPORATION, AND THE ORIGINAL PURCHASER
          HEREOF, COPIES OF WHICH AGREEMENT ARE ON FILE AT THE PRINCIPAL
          EXECUTIVE OFFICES OF GALYAN'S TRADING COMPANY, INC."

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

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

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

                                       9
<PAGE>

          If to the Company:

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

          If to Purchaser:

          2626 Haverford Road
          Columbus, OH 43220

          Except that after August 15, 2001, notices to Purchaser shall be
          sent to:

          6045 Sunset Lane
          Indianapolis, IN 46778

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

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

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

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

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

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

                                       10
<PAGE>

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

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

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

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

                  [Remainder of page intentionally left blank]

                                       11
<PAGE>

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

                                    THE COMPANY:

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

                                    By: /s/ Robert B. Mang
                                       ------------------------------

                                    PURCHASER:

                                     /s/ C. David Zoba
                                    _________________________________
                                    C. David Zoba

                                       12
<PAGE>

                       EXHIBIT B TO EMPLOYMENT AGREEMENT
                       ---------------------------------

                        GALYAN'S TRADING COMPANY, INC.

                             STOCK PLEDGE AGREEMENT

     THIS STOCK PLEDGE AGREEMENT (this "Pledge Agreement") is made as of May 29,
                                        ----------------
2001, between C. David Zoba as pledgor ("Pledgor"), and Galyan's Trading
                                         -------
Company, Inc., an Indiana corporation, as pledgee ("Pledgee").
                                                    -------

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

     A.  Pursuant to that certain Stock Subscription Agreement of even date
herewith (the "Purchase Agreement") by and between Pledgee and Pledgor, Pledgor
               ------------------
was issued 30,000 shares of Class A Common Stock, without par value of Pledgee
in exchange for an aggregate purchase price of $570,000.

     B.  Pursuant to this Pledge Agreement, Pledgor has agreed to pledge the
30,000 shares (the "Shares") of Class A Common Stock, without par value, to
Pledgee in accordance with the terms hereof.

     C.  Pursuant to the terms of the Purchase Agreement and that certain
Secured Promissory Note in the amount of $285,000 of even date herewith
delivered by Pledgor to Pledgee (the "Note"), Pledgor has agreed to make
                                      ----
payments of principal and interest to Pledgee as provided in the Note.

     D.  Pursuant to the terms of the Purchase Agreement and the Note, Pledgor
is required to execute this Pledge Agreement to secure payment in full of all
obligations under the Note, whether for principal, interest, fees, expenses or
otherwise and to ensure compliance with the terms and conditions of the Purchase
Agreement and this Pledge Agreement.

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

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

     1.      Grant of Security Interest in the Shares. Pledgor hereby grants to
             ----------------------------------------
Pledgee a security interest in the Shares, pledges and hypothecates the Shares
to Pledgee, and deposits the certificates evidencing the Shares (the
"Certificates") with Pledgee as collateral security for the payment by Pledgor
-------------
of all obligations existing under the Note, whether for principal, interest,
fees, expenses or otherwise, and the satisfaction of all obligations of Pledgor
under the Purchase Agreement and this Pledge Agreement. The Certificates,
together with one or more stock assignments duly executed in blank with
signatures appropriately guaranteed or witnessed, are being delivered herewith
to Pledgee, to be retained by Pledgee as the pledgeholder for the Shares.

                                       1
<PAGE>

     2.       Representation and Warranty of Pledgor. Pledgor represents and
              --------------------------------------
warrants to Pledgee that the Shares are free and clear of all claims, mortgages,
pledges, liens and other encumbrances of any nature whatsoever, except (a) the
liens and restrictions set forth herein and in the Note and (b) any restrictions
upon sale and distribution imposed by the Securities Act of 1933, as amended
(the "Act"), applicable state securities laws, and the Purchase Agreement.
      ---

     3.      Voting of Shares. So long as there shall exist no Event of Default
             ----------------
(as hereinafter defined), Pledgor shall be entitled to exercise, as Pledgor
deems proper but in a manner not inconsistent with the terms hereof, Pledgor's
rights to voting power with respect to the Shares. Pledgee, and not Pledgor,
shall be entitled to vote the Shares at any time that there exists an Event of
Default.

     4.      Dividends. So long as there shall exist no Event of Default,
             ---------
Pledgor shall be entitled to receive any dividend (ordinary or extraordinary,
whether paid in cash, stock or property) or other distribution with respect to
the Shares. If there exists an Event of Default, such dividend or other
distribution shall be delivered to Pledgee to be held as additional collateral
security under this Pledge Agreement.  Any dividends which are received by
Pledgor contrary to the provisions of the immediately preceding sentence shall
be received in trust for the benefit of Pledgee, shall be segregated from other
funds of Pledgor and shall forthwith be paid over to Pledgee.

     5.      Pledgee's Duties. So long as Pledgee exercises reasonable care with
             ----------------
respect to the Shares in its possession, Pledgee shall have no liability for any
loss or damage to such Shares, and in no event shall Pledgee have liability for
any diminution in value of the Shares occasioned by economic or market
conditions or events. Pledgee shall be deemed to have exercised reasonable care
within the meaning of the preceding sentence if the Shares in its possession are
accorded treatment substantially equal to that which Pledgee accords its own
property, it being understood that Pledgee shall not have any responsibility
under this Pledge Agreement for (a) ascertaining or taking action with respect
to calls, conversions, exchanges, maturities, tenders or other matters relating
to the Shares, whether or not Pledgee has or is deemed to have knowledge of such
matters, or (b) taking any necessary steps to preserve rights against any person
or entity with respect to the Shares.

     6.      Release from Pledge; Transfers to Permitted Transferees. In the
             -------------------------------------------------------
event of a purchase by Pledgee of any or all of the Shares pursuant to Section
2(b) or Section 3 of the Purchase Agreement, such Shares shall be released from
this Pledge Agreement.  Pledgor hereby authorizes and directs Pledgee, upon
receipt by Pledgor of payment pursuant to Section 2(b) or Section 3 of the
Purchase Agreement, to complete and execute the stock assignment or stock
assignments delivered herewith to effectuate such Transfer.

     No Shares may be Transferred (as defined in the Purchase Agreement) (except
as set forth in the next sentence) and no Swap Transaction (as defined in the
Purchase Agreement) may be entered into with respect to any of the Shares,
unless Pledgor has made payment to Pledgee of all unpaid obligations existing
under the Note (whether or not then due and payable), whether for principal,
interest, fees, expenses or otherwise and all unsatisfied obligations of Pledgor
under the Purchase Agreement and this Pledge Agreement. In the event of a
Transfer to

                                       2
<PAGE>

a Permitted Transferee (as defined in the Stockholders Agreement of even date
herewith), the Pledgor authorizes the pledgee to cause the certificate or
certificates evidencing the Shares to be reissued in the name of the Permitted
Transferee or Transferees; provided, however, that (a) the Shares shall continue
to be subject to this Pledge Agreement and the Permitted Transferees shall
execute an undertaking agreeing to be bound by this Pledge Agreement, (b) the
reissued certificate or certificates shall continue to be held by the Pledgee
pursuant hereto, and (c) the Permitted Transferee or Transferees shall execute
and deliver to the Pledgee stock powers duly endorsed in blank with respect to
the Shares. Upon receipt by Pledgee of the payment as required by this
paragraph, the Shares shall be released from this Pledge Agreement.

     7.      Sale of Collateral. Upon the occurrence of any Event of Default,
             ------------------
Pledgee shall have, in addition to all other rights and remedies provided for
herein or other available to it, all the rights and remedies of a secured party
under the Uniform Commercial Code as in effect in the relevant jurisdiction and
may also in its sole discretion, without notice except as specified in Section 8
below, sell all or any part of the Shares at public or private sale for cash,
note or other property or upon credit or for future delivery, at such time or
times and at such price or prices and upon such other terms as Pledgee may deem
commercially reasonable. Upon such sale, Pledgee, unless prohibited by a
provision of any applicable statute, may purchase all or any part of the Shares
being sold, free from and discharged of all trusts, claims, rights of redemption
and equities of Pledgor. If the proceeds of any sale of the Shares shall be
insufficient to pay all amounts due under the Notes and satisfy the obligations
of Pledgor under the Purchase Agreement and this Pledge Agreement, including
collection costs and expenses of such sale, Pledgor shall remain obligated and
liable for any deficiency with respect thereto. If, at any time when Pledgee
shall determine to exercise its rights to sell all or any part of the Shares
pursuant to this Section 7, such Shares, or the part thereof to be sold, shall
not be effectively registered under the Act as then in effect or any similar
statute then in force, subject to the provisions of Section 9 hereof, Pledgee,
                                                    ---------
in its sole and absolute discretion, is hereby expressly authorized to sell such
Shares, or any part thereof, by private sale in such manner and under such
circumstances as Pledgee may deem necessary or advisable in order that such sale
may be effectuated legally without such registration. Without limiting the
generality of the foregoing, Pledgee, in its sole and absolute discretion, may
approach and negotiate with a restricted number of potential purchasers to
effectuate such sale or restrict such sale to a purchaser or purchasers who
shall represent and agree that such purchaser or purchasers are purchasing for
its or their own account, for investment only, and not with a view to the
distribution or sale of such Shares or any part thereof. Any sale conducted in
the manner described in the foregoing sentence shall be deemed to be a sale
conducted in a commercially reasonable manner within the meaning of the
applicable Uniform Commercial Code, and Pledgor hereby consents and agrees that
Pledgee shall incur no responsibility or liability for selling all or any part
of the Shares at a price which is not unreasonably low, notwithstanding the
possibility that a substantially higher price might be realized if the sale were
public.  Pledgee shall not be obligated to make any sale of the Shares
regardless of notice of sale having been given. Pledgee may adjourn any public
or private sale from time to time by announcement at the time and place fixed
therefor, and any such sale may, without further notice, be made at the time and
place to which it was so adjourned.

     8.      Redemption of Collateral. Notwithstanding any other provision of
             ------------------------
this Pledge Agreement, upon the occurrence of an Event of Default, Pledgee shall
give Pledgor written notice of the time and place of any public sale or of the
time on or after which any private

                                       3
<PAGE>

sale or other Transfer is to be made at least five (5) days before the date
fixed for any public sale or before the day on or after which any private sale
or other Transfer is to be made. Pledgor agrees that, to the extent notice of
sale shall be required by law, such five (5) days' notice shall constitute
reasonable notification. This notice shall also specify the aggregate
outstanding monetary obligations of the Pledgor to Pledgee at the date of such
notice (the "Total Obligation"). At any time during such five-day period,
             ----------------
Pledgor shall have the right to redeem the Shares by the payment by certified or
bank cashier's check of an amount equal to the Total Obligation.

     9.      Events of Default. At the option of Pledgee, the principal balance
             -----------------
of the Note and all accrued and unpaid interest thereon, and all other
obligations of Pledgor to Pledgee thereunder, hereunder, and under the Purchase
Agreement, shall become and be immediately due and payable, without notice of
default, presentment or demand for payment, protest or notice of nonpayment or
dishonor, or other notices or demands of any kind (all of which are hereby
expressly waived by Pledgor), upon the occurrence of any of the events set forth
below (individually, an "Event of Default"):

             (a) Pledgor shall cease to be an employee of the Company or its
       subsidiaries;

             (b) Pledgor shall fail to make complete payment of any installment
       of accrued interest under the Note on the date such installment of
       accrued interest is due, after being given notice and an opportunity of
       at least five (5) days to cure such nonpayment;

             (c) Pledgor shall fail to make complete payment of principal when
       due under the Note;

             (d) Pledgor shall fail to make the prepayment of principal and
       accrued interest on the Note as required by the fourth paragraph of the
       Note; or

             (e) Pledgor shall commit a breach of or default under the Purchase
       Agreement or this Pledge Agreement.

     10.     Termination. This Pledge Agreement shall terminate only upon
             -----------
payment to Pledgee of all unpaid obligations existing under the Note, whether
for principal, interest, fees, expenses or otherwise and all unsatisfied
obligations of Pledgor under the Purchase Agreement and this Pledge Agreement.
Upon termination of this Pledge Agreement, Pledgor shall be entitled to the
return of the Certificates then held by Pledgee and any other collateral
security then held by Pledgee pursuant to Section 4 of this Pledge Agreement.

     11.     Cumulation of Remedies; Waiver of Rights. The remedies provided
             ----------------------------------------
herein in favor of Pledgee shall not be deemed exclusive but shall be cumulative
and shall be in addition to all of the remedies in favor of Pledgee existing at
law or in equity. Nothing in this Pledge Agreement shall require Pledgee to
proceed against or exhaust its remedies against the Shares before proceeding
against Pledgor or executing against any other security or collateral securing
performance of Pledgor's obligations to Pledgee under the Note, the Purchase
Agreement or this Pledge Agreement. No delay on the part of Pledgee in
exercising any of its

                                       4
<PAGE>

options, powers or rights, or the partial or single exercise thereof, shall
constitute a waiver thereof.

     12.      Execution of Endorsements, Assignments, Etc. Upon the occurrence
              --------------------------------------------
of an Event of Default, Pledgee shall have the right for and in the name, place
and stead of Pledgor to execute endorsements, assignments or other instruments
of conveyance or transfer with respect to all or any of the Shares and any other
shares of the capital stock of Pledgee or other property which is held by
Pledgee as collateral security pursuant to this Pledge Agreement.

     13.      Miscellaneous.
              -------------

              (a) Further Assurances; Changes in Capitalization. Each party
                  ---------------------------------------------
hereto agrees to perform any further acts and execute and deliver any documents
which may be reasonably necessary to carry out the intent of this Pledge
Agreement. The provisions of this Pledge Agreement shall apply to any and all
stock or other securities of the Pledgee or any successor or assign of the
Pledgee, which may be issued in respect of, in exchange for or in substitution
of, the Shares by reason of any split, reverse split, recapitalization,
reclassification, combination, merger, consolidation or otherwise, and such
Shares or other securities shall be encompassed within the term "Shares" for
purposes of this Pledge Agreement and the Pledgee shall have a security interest
in all such securities on the same terms set forth in this Pledge Agreement.

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

               If to Pledgee:

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

               If to Pledgor:

               2626 Haverford Road
               Columbus, OH 43220

               Except that after August 15, 2001, notices to Pledgor shall be
               sent to:

               6045 Sunset Lane
               Indianapolis, IN 46778

                                       5
<PAGE>

              (c) Amendments. This Pledge Agreement may be amended only by a
                  ----------
written agreement executed by the parties hereto.

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

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

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

              (g) Successors and Assigns. Pledgee shall have the right to assign
                  ----------------------
with absolute discretion any or all of its rights and/or obligations and/or
delegate any or all of its duties under this Pledge Agreement to any of its
affiliates, successors and/or assigns, including, without limitation (i) to any
of its banks or lending institutions as collateral security, or (ii) to any
entity succeeding the Pledgee by merger, consolidation or acquisition of all or
substantially all of the Pledgee's assets, and this Pledge Agreement shall inure
to the benefit of, and be binding upon, such respective affiliates, successors
and/or assigns of Pledgee in the same manner and to the same extent as if such
affiliates, successors and/or assigns were original parties hereto. Unless
specifically provided herein to the contrary, Pledgor may not assign any or all
of its rights and/or obligations and/or delegate any or all of its duties under
this Pledge Agreement without the prior written consent of Pledgee. Upon an
assignment of any or all of Pledgor's rights and/or obligations and/or a
delegation of any or all of its duties under this Pledge Agreement in accordance
with the terms of this Pledge Agreement, this Pledge Agreement shall inure to
the benefit of, and be binding upon, Pledgor's respective affiliates, successors
and/or assigns in the same manner and to the same extent as if such affiliates,
successors and/or assigns were original parties hereto.

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

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

                                       6
<PAGE>

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

                                    PLEDGEE:

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

                                    By: /s/ Robert Mang
                                       -------------------------

                                    PLEDGOR:

                                     /s/ C. David Zoba
                                    -------------------------
                                    C. David Zoba

                                       7
<PAGE>

                        EXHIBIT C TO EMPLOYMENT AGREEMENT
                       ---------------------------------

                             SECURED PROMISSORY NOTE

$[285,000]                                                         May 29, 2001

          FOR VALUE RECEIVED, the undersigned C. David Zoba ("Borrower") hereby
                                                              --------
promises to pay to the order of Galyan's Trading Company, Inc., an Indiana
corporation ("Payee"), the principal sum of $[285,000] together with interest on
              -----
the unpaid balance of such principal amount from the date hereof at the rate of
seven and one half percent (7.50% per annum). Accrued interest to be paid on
this Promissory Note shall be payable in arrears commencing on March 31, 2002
(with respect to interest accrued through the preceding December 31) and
continuing on each succeeding March 31 thereafter with respect to interest
accrued during the previous year ending December 31 until this Note is paid in
full. The principal balance of, and all accrued and unpaid interest on, this
Promissory Note shall be payable in full by Borrower on that date which is five
(5) years from the date hereof.

          Payments of principal and interest on this Promissory Note shall be
made in legal tender of the United States of America and shall be made at such
place as Payee shall have designated to Borrower (and may be made by payroll
deduction by mutual consent of Borrower and Payee). If the date set for any
payment of principal or interest on this Promissory Note is a Saturday, Sunday
or legal holiday, then such payment shall be due on the next succeeding business
day.

          As of the date hereof, Borrower has purchased certain shares of Class
A Common Stock, without par value of the Payee (the "Shares") pursuant to the
                                                     ------
terms of that certain Stock Subscription Agreement (the "Stock Subscription
                                                         ------------------
Agreement") of even date herewith, by and between Payee and Borrower. Payment of
---------
this Promissory Note shall be secured by the Shares as provided in that certain
Stock Pledge Agreement of even date herewith by and between Payee and Borrower
(the "Pledge Agreement").
      ----------------

          The principal balance of, and accrued and unpaid interest on, this
Promissory Note may be prepaid at any time, in whole or in part, without premium
or penalty. Any such prepayment shall be first applied to the payment of any
accrued and unpaid interest and then to the unpaid balance of the principal
amount. In the event of a Transfer (as defined in the Stock Subscription
Agreement) by Borrower or a Permitted Transferee (as defined in the Stockholders
Agreement of even date herewith) of Shares to anyone other than to a Permitted
Transferee, Borrower shall pay the principal balance of, and accrued but unpaid
interest on, this Promissory Note in accordance with the provisions of Section 6
of the Pledge Agreement.
<PAGE>

          In the event Borrower shall (i) cease to be an employee of the Company
or its Subsidiaries, (ii) fail to make complete payment of any installment of
accrued interest under this Promissory Note on the date such installment of
accrued interest is due (but Payee shall give Borrower notice of nonpayment and
at least five (5) days to cure such nonpayment); (iii) fail to make complete
payment of principal when due under this Promissory Note; (iv) fail to make the
prepayment of principal and accrued interest on this Promissory Note upon a sale
of Shares as required by the fourth paragraph hereof; or (v) commit a material
breach of or default under the Stock Subscription Agreement or the Pledge
Agreement, Payee may accelerate this Promissory Note and declare the entire
unpaid principal amount of this Promissory Note and all accrued and unpaid
interest hereon to be immediately due and payable and, thereupon, the unpaid
principal amount and all such accrued and unpaid interest shall become and be
immediately due and payable, without notice of default, presentment or demand
for payment, protest or notice of nonpayment or dishonor, or other notices or
demands of any kind (all of which are hereby expressly waived by Borrower). The
failure of Payee to accelerate this Promissory Note shall not constitute a
waiver of any of Payee's rights under this Promissory Note as long as Borrower's
default under this Promissory Note or breach of or default under the Stock
Subscription Agreement or the Pledge Agreement continues.

          The provisions of this Promissory Note shall be governed by and
construed in accordance with the laws of the State of New York without regard to
the conflicts of law rules thereof. In the event that Payee is required to take
any action to collect or otherwise enforce payment of this Promissory Note,
Borrower agrees to pay such reasonable attorneys' fees, court costs and other
expenses as Payee may incur as a result thereof, whether or not suit is
commenced.

          The terms and provisions of this Note shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of the parties hereto and the successors and assigns of Payee and
any assignee or transferee of this Note. In the event of such transfer or
assignment, the rights and privileges conferred upon Payee shall automatically
extend to and be vested in such assignee or transferee, all subject to the terms
and conditions hereof. Borrower's obligations, rights or any interest hereunder
may not be delegated or assigned without the written consent of Payee.

          All notices, requests, demands or other communications under this
Promissory Note shall be delivered in accordance with the notice provisions of
the Stock Subscription Agreement to the address(es) set forth therein.

                  [Remainder of Page Intentionally Left Blank]
<PAGE>

          IN WITNESS WHEREOF, this Promissory Note has been duly executed and
delivered by Borrower on the date first above written.

                              BORROWER:

                               /s/ C. David Zoba
                              ------------------------------
                              C. David Zoba

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