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EXHIBIT 4(d)

DELPHI CORPORATION LONG-TERM INCENTIVE PLAN

1. PURPOSE OF THE PLAN

     The purposes of the Delphi Long-Term Incentive Award Plan (the “Plan”) are
to allow Delphi to provide incentive award programs that attract and retain
exceptional employees, to reward and motivate the key employees that are
critical for the growth and success of Delphi, and to best align employee
interests with those of Delphi stockholders. These purposes are accomplished
through the granting of stock-based awards that provide incentives for the
creation of stock value (including stock options, restricted stock, restricted
stock units, and stock appreciation rights (“SARs”)) with respect to the common
stock of Delphi Corporation (“Delphi” or “Corporation”) and cash-based awards
that provide rewards for the accomplishment of key long-term strategic
objectives which enhance shareholder value.

2. EFFECTIVE DATE AND DURATION OF PLAN

     This Plan becomes effective on the earlier of the first business day
immediately following receipt of shareholder approval and June 1, 2004. Awards
may be made under this Plan until May 31, 2009.

3. PLAN ADMINISTRATION AND ELIGIBILITY

     (a) The Compensation and Executive Development Committee of the Delphi
Corporation Board of Directors (the “Committee”), as from time to time
constituted pursuant to the By-Laws of Delphi Corporation (“Delphi,” or the
“Corporation”), may, prior to June 1, 2009, authorize award grants to
employees. The Committee, in its sole discretion, determines any related
performance levels at which different percentages of such awards will be
earned, the collective amount for all awards to be granted at any one time, and
the individual annual grants with respect to all employees who are members of
the Delphi Strategy Board (the “Strategy Board”) and any officer of the
Corporation who is not on the Strategy Board but is subject to the requirements
of Section 16 of the Securities Exchange Act of 1934, as amended (a “Section 16
Officer”). The Committee may delegate to the Strategy Board responsibility for
determining, within the limits established by the Committee, individual award
grants for employees who are not Strategy Board members and not Section 16
Officers.

     (b) Full power and authority to construe and interpret the Plan are vested
in the Committee. The Committee determines the selection of employees for
participation in the plan and also decides any questions and settles any
disputes or controversies that may arise. Any person who accepts any award
hereunder agrees to accept as final, conclusive, and binding all determinations
of the Committee and the Strategy Board. The Committee has the right, in the
case of participants not employed in the United States, to vary from the
provisions of the Plan in order to preserve its incentive features.

     (c) Only persons who are employees of the Corporation are eligible to
receive an award under the Plan. Subject to such additional limitations or
restrictions as may be provided below, the term “employees” means persons (i)
who are employed by the Corporation or any “subsidiary” (as such term is
defined below), including employees who are also directors of the Corporation
or any such subsidiary, or (ii) who accept (or previously have accepted)
employment, at the request of the Corporation, with any entity that is not a
subsidiary but in which the Corporation has, directly or indirectly, a
substantial ownership interest. For purposes of this Plan, the term
“subsidiary” means (i) a corporation of which capital stock having ordinary
voting power to elect a majority of the board of directors of such corporation
is owned, directly or indirectly, by the Corporation or (ii) any unincorporated
entity in respect of which the Corporation can exercise, directly or
indirectly, comparable control. The rights reserved herein will, among other
things, permit the Committee to determine when, and to what extent, individuals
otherwise eligible for consideration become employees and when any individual
will be deemed to have terminated employment for purposes of this Plan. To the
extent determined by the Committee, the term employees will include former
employees and any executor(s), administrator(s), or other legal representatives
of an employee’s estate.

4. AWARD TYPES

     (a) Definition of Awards. Stock options, restricted stock, restricted
stock units, SARs and cash performance awards are all referred to as “Awards” under the Plan.

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     (b) Incentive Stock Options. An incentive stock option is intended to
comply with the provisions of Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”), or any successor provision, and any regulations
promulgated thereunder (including the requirement that the purchase price of
the shares of stock under each incentive stock option may be not less than 100%
of the fair market value of such stock at the time the option is granted). In
accordance with the rules and procedures of the Committee, the aggregate fair
market value (determined as of the date of grant) of the stock with respect to
which incentive stock options that are granted and held by an employee first
become exercisable by such employee during any calendar year under this Plan
and all other plans of the Corporation (and any subsidiary or any parent
corporation within the meaning of Section 424 of the Code, or any successor
provision), may not exceed $100,000 (except that such amount may be adjusted by
the Committee as appropriate to reflect any amendment of Section 422 of the
Code).

     (c) Nonqualified Stock Options. Except as provided in paragraph 15 (b),
the purchase price of the shares of stock under each option may be not less
than 100% of the fair market value of such stock at the time the option is
granted. Notwithstanding any thing to the contrary contained herein, in no
event may the purchase price of the shares of stock under each option be less
than the par value of such stock. Fair market value of Delphi common stock will
be determined based on the mean of the highest and lowest sales prices as
reported for Delphi common stock in The Wall Street Journal, or other similar
reference, for the date of grant. A nonqualified stock option is governed by
Section 83 of the Code.

     (d) SARs. A SAR is an Award in the form of a right to receive, upon
surrender of that right, an amount based on the appreciation in the value of
the stock over a base price established in the Award payable in cash or stock
or in a combination of cash and stock as determined by the Committee. The base
price of the SAR must be equal to or greater than the fair market value of the
Delphi common stock on the date of grant (as determined in accordance with
paragraph 4 (c) hereof).

     (e) Restricted Stock or Restricted Stock Units. Restricted stock awards
are an Award of the shares of the stock of the Corporation that are issued, but
subject to restrictions on transfer and/or such other restrictions on the
incidence of ownership as the Committee may establish. Restricted stock units
are Awards that entitle the recipient to receive shares of Delphi common stock
upon satisfaction of certain vesting criteria established by the Committee at
the time of grant.

     (f) Cash Performance Awards. Cash performance awards are Awards that
provide a cash payment based on the level of performance of the Corporation or
any subsidiary (as defined in paragraph 3) relative to one or more performance
goals established by the Committee for a performance period of not less than
two nor more than five years.

5. DELPHI COMMON STOCK SUBJECT TO THE PLAN

     (a) Overall limits on Stock Grants. Subject to paragraph 15 (c) hereof,
the maximum number of shares of Delphi common stock available for issuance
under the Plan is 36,500,000. Subject to paragraph 15 (c) hereof, the maximum
number of shares of Delphi common stock which may be issued pursuant to grants
of restricted stock or restricted stock units is 15,500,000. Any Award granted
under this Plan that is forfeited, cancelled, or expired in whole or in part
will cause the corresponding number of un-purchased or undelivered shares of
stock covered by such Award to be deemed not to be delivered for purposes of
determining the maximum number of shares available under this Plan and such
shares of common stock will again become available for grant under the Plan. In
the event that any option granted under the Plan is exercised through the
surrender of shares of Delphi common stock, or in the event that withholding
tax liabilities arising from any Award are satisfied by the withholding of
shares of Delphi common stock by the Corporation, the number of shares of
Delphi common stock available for awards under the Plan will be increased by
the number of shares so surrendered or withheld.

     (b) Per Employee Limits on Stock-Based Awards. No employee may be granted
options or SARs in any calendar year covering more than 1,000,000 shares of
Delphi common stock; and no employee may be granted restricted stock or
restricted stock units in any calendar year covering more than 500,000 shares
of Delphi common stock for each respective type of Award. These per-employee
limitations on Award grants are not affected by the forfeiture, cancellation or expiration of an Award.

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     (c) Committee Discretion to Grant Incentive Stock Options or Place
Restrictions on Awards. Determinations as to whether the options granted will
be incentive stock options, within the meaning of Section 422, or any successor
provision, of the Code, or non-qualified options, and as to any restrictions
which may be placed on any Awards under the Plan, will be made by the Committee
under such procedures as it may from time to time determine.

6. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

     Options and SARs granted under this Plan are subject to the following
provisions:

     (a) Vesting and Exercise. Subject to the satisfaction of the conditions
precedent set forth under paragraph 10 (b), no option or SAR vests or becomes
exercisable prior to the first anniversary of the grant date (or such later
date as may be established by the Committee) and after such date will be
exercisable only in accordance with the terms and conditions established at the
time of grant. As a condition to the exercise of any option or SAR, an employee
may, among other things, be required to enter into such agreements as are
considered by the Committee to be appropriate and in the best interests of the
Corporation, in addition to the employee’s agreement to remain in the
continuous employment of the Corporation for a six-month period after exercise
of the SAR or option as required by paragraph 11 hereof.

     (b) Option or SAR Term. The expiration date of the option or SAR will be
determined at the time of grant, provided that each such option will expire not
more than ten years and two days after the date the option was granted or, in
the case of an incentive stock option, ten years after the date such option was
granted.

     (c) Payment of Exercise Price, Withholding Taxes. All shares purchased
upon exercise of any option will be paid for in full at the time of purchase.
Such payment will be made in cash, through delivery of Delphi common stock, or
a combination of cash and stock. Any shares so delivered will be valued at
their fair market value based on the mean of the highest and lowest sales
prices as reported in The Wall Street Journal, or other similar reference, for
the date of exercise of the option, and, unless the Committee determines
otherwise, shall have been held by the Participant for at least six months
prior to the date of exercise. If payment of federal, state, and/or local
withholding taxes is required in connection with the exercise of an option, the
optionee will, at the time of exercise, pay such taxes in cash or stock
(including shares obtained from the exercise and delivery of option shares);
provided that, to the extent such payment is made through share withholding,
such shares shall only be used to the extent necessary to satisfy minimum
withholding tax liabilities. To the extent authorized by the Committee, any
exercise of an option granted under this Plan alternatively may be made in
accordance with any cashless exercise program approved by the Committee.

     (d) Dividends. No holder of any option has any rights to dividends or
other rights of a stockholder with respect to shares subject to the option
prior to purchase of such shares upon exercise of the option.

7. RESTRICTED STOCK OR RESTRICTED STOCK UNITS

     Restricted stock or restricted stock units granted under this Plan will be
subject to the following provisions:

     (a) Link to Delphi Common Stock. Subject to adjustments contemplated under
paragraph 15 (c) of this Plan, (i) restricted stock granted hereunder will
relate to one share of Delphi common stock (a “Corresponding Share”), and (ii)
the value of a restricted stock unit at any time will be the fair market value
of the Corresponding Share, determined in accordance with procedures
established by the Committee.

     (b) Vesting. Subject to the satisfaction of the conditions precedent set
forth under paragraph 10 (b) below and such additional conditions as may be
imposed by the Committee, each grant will vest at the time or times determined
by the Committee, provided that the Committee, in making such determination,
will establish the vesting increments (including their number, amounts, and
timing) so as to carry out the purposes of this Plan; and further, provided
that no award will vest prior to the first anniversary of the grant date.
Within the limitations specified in the preceding sentence, the Committee may,
in its sole discretion, modify vesting provisions with respect to the unvested
portion of any grant if, in the judgment of the Committee, circumstances
outside the control of the Corporation have so changed as to make such modifications necessary

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or
advisable in order to preserve the reward and incentive purposes of this Plan.
As a condition to the vesting of all or any portion of a grant, the Committee
may require an employee to enter into such agreements as the Committee
considers appropriate and in the best interests of the Corporation, in addition
to the employee’s agreement to remain in the continuous employment of the
Corporation for a six month period after the vesting of any restricted stock
unit and issuance of Delphi Common Stock pursuant thereto, or the lapse of
restrictions applicable to any shares of restricted stock, as the case may be,
as required by paragraph 11 hereof.

     (c) Dividends. With respect to any dividend or other distribution on any
Corresponding Shares, the Committee may, in its discretion, authorize current
or deferred payments (payable in cash or stock or a combination thereof, as
determined by the Committee) or appropriate adjustments to outstanding grants
to reflect such dividend or distribution.

     (d) Payment at Vesting, Withholding Taxes. (i) Upon vesting of all or any
portion of a grant, the percentage of the grant then vesting will be applied to
the total number of restricted stock or restricted stock units then covered by
such grant, and the proportionate number of Corresponding Shares so computed,
disregarding fractional units, will be paid to such Participant in the form of
shares of Delphi stock, or in cash based on the fair market value of the
Corresponding Shares on the vesting date, or partly in cash and partly in
shares of Delphi common stock as the Committee in its sole discretion will
determine. The stock and/or related cash payment, will be delivered, in
accordance with procedures to be established by the Committee, and upon
satisfaction of the applicable withholding requirements, as soon as practicable
after such vesting date. (ii) In the discretion of, and in accordance with
procedures to be established by the Committee, Corresponding Shares, or cash of
equivalent value, may be designated for, and delivered to, the Corporation in
satisfaction of any federal, state and/or local withholding taxes applicable;
provided that if shares are withheld to satisfy tax withholding obligations,
they shall only be withheld to the extent necessary to satisfy minimum tax
withholding.

     (e) Stockholders’ Rights. Unless otherwise determined by the Committee, no
holder of a restricted stock unit will have any rights to dividends (other than
as provided in paragraph 7(c) above) or other rights of a stockholder with
respect to units and Corresponding Shares relating to such grant prior to the
delivery of such Corresponding Shares pursuant to the vesting of such grant.

8. CASH AWARDS

     Cash Awards under the Plan are subject to the following conditions:

     (a) Prior to the grant of any target award, the Committee will establish
for each such award (i) performance levels related to the enterprise (as
defined in paragraph 9 (b)) at which 100% of the award will be earned and a
range (which need not be the same for all awards) within which greater and
lesser percentages will be earned and (ii) a performance period which will not
be less than two nor more than five years. In creating these performance levels
and awards payment formulas, the Committee may establish the specific goals
based upon or relating to one or more of the business criteria as set forth in
paragraph 9 (b).

     (b) The amount related to any final award for each performance period
grant paid to any employee will not exceed $7.5 million.

9. ESTABLISHMENT OF PERFORMANCE VESTING CRITERIA

     (a) The Committee may establish performance vesting criteria with respect
to all or any portion of a grant of stock options, restricted stock, restricted
stock units, and SARs which relate to and are contingent upon the satisfaction
of specific goals established by the Committee. The Committee will establish
such performance vesting criteria with respect to all cash awards. Such goals
may be based upon or relate to one or more of the following business criteria:
return on assets, return on net assets, asset turnover, return on equity,
return on capital, market price appreciation of Delphi common stock, economic
value added, total stockholder return, net income, pre-tax income, earnings per
share, operating profit margin, net income margin, sales margin, cash flow,
market share, inventory turnover, sales growth, capacity utilization, increase
in customer base, environmental health and safety, diversity, and/or quality.
The business criteria may be expressed in absolute terms or relative to the
performance of other companies or to an index.

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     (b) With respect to any Award which is subject to performance vesting, the
Committee will establish performance levels for each such award related to the
enterprise (as defined below) at which 100% of the award will be earned and a
range (which need not be the same for all awards) within which greater and
lesser percentages will be earned. The term “enterprise” will mean the
Corporation and/or any unit or portion thereof, and any entities in which the
Corporation has, directly or indirectly, a substantial ownership interest. The
establishment of performance levels by the Committee will occur prior to the
lapsing of 25% of the performance period. When establishing performance goals
for a performance period, the Committee may exclude any or all “extraordinary
items” as determined under U.S. generally accepted accounting principles
including, without limitation, the charges or costs associated with
restructurings of the Corporation, discontinued operations, other unusual or
non-recurring items, and the cumulative effects of accounting changes.

10. DETERMINATION AND PAYMENT OF FINAL AWARDS

     (a) Final Awards. The (i) percentage of the final target award for cash
performance awards to be distributed to an employee or (ii) the vesting of all
or a portion of restricted stock grant or restricted stock unit, or any other
Award whose vesting is based on performance criteria will be determined by the
Committee on the basis of the performance levels established for such Award and
the performance of the applicable enterprise during the performance period.
Following determination of the final payout percentage, the Committee may, upon
the recommendation of the Chief Executive Officer, make adjustments to awards
granted to Strategy Board members or Section 16 Officers of the Corporation, to
reflect individual performance during such period, which for covered officers
can only reduce the amount of any potential award. A “covered officer” is any
individual whose compensation in the year of the expected payment of an award
will be subject to the provision of Section 162(m) of the Code. Adjustments to
reflect individual performance to awards granted to employees who are not
Strategy Board members and who are not Section 16 Officers may be made by the
Strategy Board. No award will be paid to a “covered officer” unless the
Committee certifies the performance in writing. Any target award, as determined
and adjusted pursuant to this paragraph is herein referred to as a “final
award.”

     (b) Conditions Precedent. Except for grants that vest pursuant to
paragraph 17, the vesting of each Award grant and/or the payment of final cash
performance award (or portion thereof) to an individual employee will be
subject to the satisfaction of the following conditions precedent: (i) the
employee continue to render services as an employee (unless this condition is
waived by the Committee), (ii) the employee refrain from engaging in any
activity which, in the opinion of the Committee, is competitive with any
activity of the Corporation or any subsidiary (except that employment at the
request of the Corporation with an entity in which the Corporation has,
directly or indirectly, a substantial ownership interest, or other employment
specifically approved by the Committee, will not be considered to be an
activity which is competitive with any activity of the Corporation or any
subsidiary) and from otherwise acting, either prior to or after termination of
employment, in any manner inimical or in any way contrary to the best interests
of the Corporation, and (iii) the employee furnish to the Corporation such
information with respect to the satisfaction of the foregoing conditions
precedent as the Committee will reasonably request. The failure by any employee
to satisfy such conditions precedent will result in the immediate cancellation
of (i) the unvested portion of any stock option grant, SAR grant, and
restricted stock grant previously made to such employee and all restricted
stock units still covered by such grant, and/or (ii) cash performance target
awards granted to such employee that have not become final awards. Such
employee will not be entitled to receive any consideration in respect of such
cancellation.

11. REQUIREMENT OF CONTINUED EMPLOYMENT

     In consideration for any option, SAR, restricted stock or restricted stock
units, and as a condition to the exercise of the SAR or option, the vesting of
any restricted stock unit or the lapse of restrictions applicable to any shares
of restricted stock, the employee who receives and accepts the award agrees to
remain in the employment of the Corporation for a period of six months after
(i) the exercise of the SAR or option or (ii) the vesting of any restricted
stock unit and issuance of Delphi common stock pursuant thereto, or the lapse
of restrictions applicable to any shares of restricted stock. If, contrary to
any such agreement, the employee terminates employment for any reason (unless
the employee retires with the prior consent of the Corporation, dies, or
terminates after a Change in Control), the employee will pay to the Corporation
an amount equal to any gain received as a result of the exercise or vesting.

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     The option or SAR exercise gain will be determined by multiplying the
difference between the mean of the highest and lowest market price as reported
in The Wall Street Journal, or other similar reference, and the exercise price
of the option or SAR (without regard to any subsequent market price decrease or
increase) by the number of option shares or SARs exercised. The gain of the
restricted stock or restricted stock unit will be the cost basis of the award
received on the vesting date.

     The gain must be paid by the employee to the Corporation within thirty
days of the date of termination. If the gain is not repaid as required, the
employee, by accepting the award, consents to a deduction of an amount equal to
such gain from any amounts the Corporation owes the employee, including, but
not limited to, amounts owed as wages or other compensation, fringe benefits,
or vacation pay.

12. TERMINATIONS

     (a) If an employee is dismissed for cause or quits employment at any time,
without the prior written consent of the Corporation, except as otherwise
determined by the Committee, any Award will terminate on the date of
termination of employment.

     (b) Options and SARs. (i) If an employee terminates prior to the first
anniversary of the grant date of an option, such option or SAR will terminate
on the date of termination of employment. (ii) If an employee retires, and the
retirement date is beyond the one-year anniversary of the grant date of the
option or SAR, except as otherwise determined by the Committee, such Award will
terminate not later than the fifth anniversary of the date of termination of
employment or, if earlier, the expiration date of the Award. (iii) If (A) an
employee terminates for any other reason other than as set forth in paragraph
12 (a) or the preceding clauses of this paragraph 12 (b), including a
termination as a result of death or permanent disability; and (B) the
termination date is beyond the one-year anniversary of the date of grant of the
option or SAR, such Award will, except as otherwise determined by the
Committee, terminate not later than the third anniversary of the date of
termination of employment or, if earlier, the expiration date of the Award.
(iv) A qualifying leave of absence, determined in accordance with procedures
established by the Committee, will not be deemed to be a termination of
employment. (v) With respect to any option or SAR which remains outstanding
after termination of employment by reason of clause (ii) or (iii) of this
paragraph 12 (b), such award will continue to vest in accordance with the terms
established at the date of grant.

     (c) Restricted Stock and Restricted Stock Unit Awards. (i) If an employee
terminates prior to the first anniversary of the grant date of a restricted
stock or restricted stock unit award, such Award will terminate on the date of
termination of employment. (ii) If a “qualified termination” of an employee
occurs beyond the one-year anniversary of the grant date of the restricted
stock or restricted stock unit award, such Award will vest immediately upon the
date of termination of employment. With respect to the vesting of any
restricted stock units pursuant to this paragraph 12 (c), the Corresponding
Shares, will be issued as soon as practicable after vesting.

     (d) Cash Awards. If a “qualified termination” of an employee occurs prior
to the end of any cash performance award period, the Committee will determine
whether to waive the condition precedent as provided in paragraph 10 (b) and
the target award granted to such employee with respect to such performance
period will be reduced pro rata based on the number of months remaining in the
performance period after the month of such termination, provided the specified
performance award has been outstanding for 12 months. The final award for such
employee will be determined by the Committee (i) on the basis of the
performance levels established for such award and the performance level
achieved through the end of the performance period and (ii) in the discretion
of the Committee, on the basis of individual performance during the period
prior to such termination. A qualifying leave of absence, determined in
accordance with procedures established by the Committee, will not be deemed to
be a termination of employment but, except as otherwise determined by the
Committee, the employee’s target award will be reduced pro rata based on the
number of months during which such person was on such leave of absence during
the performance period. A target award will not vest during a leave of absence
granted to an employee for government service.

     (e) A “qualified termination” for purposes of this paragraph 12 is death,
retirement, permanent medical disability or any other termination, as approved
by the Committee, albeit not described herein.

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13. TRANSFERABILITY

     (a) Except as otherwise determined by the Committee, with the exception of
transfer by will or the laws of descent and distribution, no Award will be
assignable or transferable and, during the lifetime of the employee, any
payment in respect of any Award will be made only to the employee and only an
employee may exercise options or SARs, or receive shares of Delphi common stock
upon vesting of a restricted stock unit award.

     (b) In the event of death, the executor(s) or administrator(s) of the
employee’s estate, or such other person(s) as determined by a court of
competent jurisdiction, may receive payment, in accordance with and subject to
the provisions of this Plan, provided the executor(s), administrator(s), or
other person supplies documentation satisfactory to the Corporation to so act.
Upon making such determination, the Corporation is relieved of any further
liability regarding any Awards granted to the deceased employee.

14. SOURCE OF STOCK SUBJECT TO AWARDS

     The shares to be delivered upon exercise of an option or SAR or vesting of
an award or restricted stock units will be made available, at the discretion of
the Board of Directors or a Committee of the Board of Directors as designated
by the Board, either from authorized but previously unissued shares or from
shares reacquired by the Corporation, including shares purchased in the open
market. If shares are purchased in the open market for delivery upon the
exercise of an option or SAR or vesting of an award of restricted stock units,
they will be held in a treasury account specifically designated for such
awards.

15. ADJUSTMENTS FOR EMPLOYEE CHANGE IN STATUS OR CORPORATE TRANSACTIONS

     (a) Promotions. If an employee is promoted during the cash performance
award period with respect to any target award, such target award may be
increased to reflect such employee’s new responsibilities.

     (b) Corporate Acquisitions. If the Corporation acquires an entity which
has issued and outstanding:

	(i)	 	Stock options, restricted stock, restricted stock units, SARs
or other rights, the Corporation may substitute an appropriate number
of similar Awards under this Plan for options or rights of such
entity, including options to acquire shares of Delphi common stock at
less than 100% of the fair market price of such stock at the time of
grant, as determined by the Committee in its sole discretion; or
	 
	(ii)	 	Long-term cash performance awards, the Corporation may
substitute cash performance awards under this Plan in place of such
awards, under such provisions consistent with the terms of this Plan,
as determined by the Committee, in its sole discretion.

     (c) Other Adjustments for Corporate Transactions. In the event of any
merger, reorganization, consolidation, recapitalization, stock dividend,
extraordinary cash dividend or other similar transaction or other change in
corporate structure affecting Delphi common stock, the Committee may, but will
not be required to, make such adjustments in the aggregate number of shares
which may be delivered under this Plan and the individual annual limits, the
number and option price of shares of Delphi common stock subject to outstanding
options and the number of shares of Delphi common stock subject to restricted
stock units granted under this Plan (provided the number of such shares subject
to any Award will always be a whole number), as may be determined to be
appropriate by the Committee.

     If the performance levels established for any cash performance award are
based on the performance of a specified portion of the enterprise and that
portion is sold or otherwise disposed of or reorganized or the employee is
transferred to another portion of the enterprise prior to the end of the
performance period, the target award granted to such employee with respect to
such performance period will be reduced pro rata based on the number of months
remaining in the performance period after the month of such event. The final
award for such employee will be determined by the Committee (i) on the basis of
the performance levels established for such award and the performance level
achieved, in the case of a sale, disposition or reorganization of the
applicable portion of the enterprise, through the end of the fiscal year during
which such event occurs and, in the case of a transfer of the employee, through
the end of the performance period and (ii) in the discretion of the Committee,
on the basis of individual performance during the applicable period. In
addition, in any such case, the Committee may, in its discretion, further adjust such award upward as it may deem appropriate
and reasonable.

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     (d) The Committee may adjust the performance levels and goals for any
performance period as it deems equitable in recognition of unusual or
non-recurring events affecting the Corporation, changes in applicable tax laws
or accounting principles, or such other factors as the Committee may determine
to preserve the incentive features of the this Plan (including, without
limitation, any adjustments that would result in the Company paying
non-deductible compensation to a Participant).

16. SEPARATE PLANS

     Nothing in the Plan shall be construed to limit the right of the
Corporation to establish other plans if and to the extent permitted by
applicable law. In addition, to the extent determined by the Committee, any
subsidiary may, without regard to the limitations under this Plan, have a
separate incentive plan or program. The Committee will have exclusive
jurisdiction and sole discretion to approve or disapprove any such plan or
program and, from time to time, to amend, modify, or suspend any such plan or
program. Individuals eligible for grants under any such plan or program will
not be considered employees eligible for grants under this Plan, unless
otherwise determined by the Committee. No provision of any such plan or program
will be included in or considered a part of this Plan, and any awards made
under any such plan or program will not be charged against the aggregate number
of shares of stock available for grant under this Plan, unless otherwise
determined by the Committee.

17. AWARDS VESTING ON A CHANGE IN CONTROL

     Upon the effective date of any Change in Control of the Corporation as
defined in this paragraph all outstanding unvested Awards granted under this
Plan will vest and, if cash performance awards, will be paid on a pro-rata
basis based on the greater of target award or actual performance. A “Change in
Control” will mean the occurrence of one or more of the following events unless
a majority of the “Continuing Directors” has specifically approved such event
in advance of its occurrence: (a) any “person” or “group” as those terms are
used in the Securities Exchange Act of 1934, as amended, other than any
employee benefit plan of the Corporation or Delphi or a trustee or other
administrator or fiduciary holding securities under an employee benefit plan of
the Corporation, is or becomes the current beneficial owner of Delphi voting
securities representing 20% or more of the combined voting power of Delphi’s
then outstanding securities; (b) during any two-year period, individuals who at
the beginning of such period constitute the Board and any new directors whose
election to the Board or nomination for election by the Corporation’s
stockholders was approved by at least two-thirds of the directors still in
office who either were directors at the beginning of the period or whose
election was previously so approved (the “Continuing Directors”), cease for any
reason to constitute a majority thereof; (c) Delphi merges or consolidates with
any other corporation or other entity, other than a merger or consolidation (i)
that would result in all or a portion of the voting securities of Delphi
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting securities of Delphi and
such surviving entity outstanding immediately after such merger or
consolidation or (ii) by which the corporate existence of Delphi is not
affected and following which Delphi’s chief executive officer would retain his
or her position with Delphi and the Delphi directors would remain on the Board
of the Corporation and constitute a majority thereof; (d) Delphi sells or
otherwise disposes of all or substantially all of its assets; or (e) the
stockholders of the Corporation approve a plan of complete liquidation of
Delphi.

18. MISCELLANEOUS

     (a) Unsecured Creditor Status. To the extent that any employee, former
employee, or any other person acquires a right to receive future payments or
distributions under this Plan, such right will be no greater than the right of
a general unsecured creditor of the Corporation. All payments and distributions
of Awards to be made hereunder will be paid from the general assets of the
Corporation. Nothing contained in this Plan, and no action taken pursuant to
its provisions, will create or be construed to create a trust of any kind, or a
fiduciary relationship between the Corporation and any employee, former
employee, or any other person.

     (b) Plan Expenses. The expenses of administering this Plan will be borne
by the Corporation.

II-15

 

     (c) Plan Amendment, Modification, Suspension or Termination. The
Committee, in its sole discretion, may, at any time, amend, modify, suspend, or
terminate this Plan, provided that no such action without the approval of the
stockholders will:

	(i)	 	Increase the maximum number of shares or the individual limits,
for which, or with respect to which, options, restricted stock or
restricted stock units may be granted to employees under this Plan
(except as permitted by paragraph 15 (c);
	 
	(ii)	 	Permit the granting of options or SARs under this Plan with an
option price of less than 100% of the fair market value of Delphi
common stock at the time the options are granted (except as permitted
in paragraphs 15 (b) and (c) of this Plan);
	 
	(iii)	 	Permit exercise of the options unless full payment is made at
the time of exercise;
	 
	(iv)	 	Extend the period during which an option or SAR may be
exercised beyond the termination date established at the date of
grant;
	 
	(v)	 	Render any member of the Committee or the Audit Committee of
the Delphi Corporation Board of Directors, or any director who is not
an employee, eligible to be granted an Award;
	 
	(vi)	 	Reprice any outstanding option or SAR (or cancel and regrant a
new option or SAR with a lower exercise price);
	 
	(vii)	 	Adversely affect the rights of an employee with respect to an
outstanding Award (except as otherwise permitted by this Plan), and
this Plan, as constituted prior to such action, will continue to
apply with respect to Awards then outstanding;
	 
	(viii)	 	Increase the limit on the maximum amount of final cash performance
awards provided in paragraph 8 (c); or
	 
	(ix)	 	Grant any Award under this Plan after May 31, 2009.

     In addition, shareholder approval shall be obtained for any amendment that
would require stockholder approval as a matter of law or under any listing
standards or other regulations then applicable to the Delphi common stock.

     (d) Statutes of Limitation and Conflict of Laws. Every right of action by,
or on behalf of, the Corporation or by any stockholder against any past,
present, or future member of the Board of Directors, officer, or employee of
the Corporation or its subsidiaries arising out of or in connection with this
Plan will, irrespective of the place where action may be brought and
irrespective of the place of residence of any such director, officer, or
employee, cease and be barred by the expiration of three years from the date of
the act or omission in respect of which such right of action arises. Any and
all right of action by any employee (past, present, or future) against the
Corporation arising out of or in connection with this Plan will, irrespective
of the place where an action may be brought, cease and be barred by the
expiration of three years from the date of the act or omission in respect of
which such right of action arises. This Plan and all determinations made and
actions taken pursuant hereto will be governed by the laws of the State of
Delaware, without giving effect to principles of conflict of laws, and
construed accordingly.

     (e) Deferral of Awards. The Committee may, in the Award agreement or
otherwise, permit a Participant to elect, upon such terms and conditions as the
Committee may establish, to defer receipt of shares of Delphi common stock that
would otherwise be issued in connection with an Award.

II-16EX-10.1

 

EXHIBIT 10.1

SHAREHOLDER TENDER AGREEMENT

     This SHAREHOLDER TENDER AGREEMENT (this “Agreement”), dated as of June 21,
2004, is entered into by and among Dick’s Sporting Goods, Inc., a Delaware
corporation (the “Parent”), Diamondbacks Acquisition Inc., an Indiana
corporation and a direct wholly-owned subsidiary of Parent (the “Purchaser”),
and certain shareholders of Galyan’s Trading Company, Inc., an Indiana
corporation (the “Company”), each of which is identified on Schedule A attached
hereto (each a “Shareholder” and collectively, the “Shareholders”).

     WHEREAS, simultaneously with the execution of this Agreement, Parent,
Purchaser and the Company are entering into an Agreement and Plan of Merger,
dated as of the date hereof (as the same may be amended or supplemented, the
“Merger Agreement”), which provides, among other things, for the acquisition of
the Company by Parent by means of a cash tender offer (the “Offer”) by
Purchaser for all outstanding shares of common stock, no par value per share,
of the Company (the “Company Common Stock”) and for the subsequent merger of
Purchaser with and into the Company with the Company continuing as the
surviving entity (the “Merger”);

     WHEREAS, as of the date hereof, each Shareholder is the Beneficial Owner
(as defined below) of the outstanding shares of Company Common Stock set forth
opposite such Shareholder’s name in Schedule A (such Shareholder’s “Owned
Shares”); and

     WHEREAS, as an inducement and a condition to its entering into the Merger
Agreement and incurring the obligations set forth therein, Parent has required
that each Shareholder enter into this Agreement;

     NOW, THEREFORE, in consideration of the foregoing and the mutual premises,
representations, warranties, covenants and agreements contained herein and in
the Merger Agreement, the parties hereto, intending to be legally bound hereby,
agree as follows:

     1. Certain Definitions. (a) Capitalized terms used but not
defined in this Agreement shall have the meanings ascribed to such terms in the
Merger Agreement. In addition, for purposes of this Agreement:

     “Affiliate” means, with respect to any specified Person, any Person that
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, the Person specified. For
purposes of this Agreement, with respect to any Shareholder, “Affiliate” shall
not include the Company or the Persons that directly, or indirectly through one
or more intermediaries, are controlled by the Company.

     “Beneficially Owned” or “Beneficial Ownership” with respect to any
securities means having both voting power and investment power (as determined
pursuant to Rule 13d-3(a) under the Exchange Act) over such securities,
including pursuant to any agreement, arrangement or understanding, whether or
not in writing. Without duplicative counting of the same securities by the same
holder, securities Beneficially Owned by a Person shall include securities
Beneficially Owned by all Affiliates of such Person and all other Persons with
whom such Person would

1

 

constitute a “Group” within the meaning of Section 13(d) of the Exchange
Act and the rules promulgated thereunder; provided that, FS Equity Partners IV,
L.P. shall not be deemed to have Beneficial Ownership over any shares held of
record by Limited Brands, Inc. or G Trademark, Inc., and G Trademark, Inc. and
Limited Brands, Inc. shall not be deemed to have Beneficial Ownership over any
shares held of record by FS Equity Partners IV, L.P., in either case as a
result of the circumstances described in that certain Schedule 13D filed by FS
Equity Partners IV, L.P., Limited Brands, Inc. and G Trademark, Inc., as most
recently amended on August 18, 2003.

     “Beneficial Owner” with respect to any securities means a Person who has
Beneficial Ownership of such securities.

     “Company Group” means the Company and its subsidiaries Galyan’s Nevada,
Inc., a Nevada corporation, and Galyan’s of Virginia, Inc., a Virginia
corporation.

     “Offer Completion Date” means the date of purchase of shares of Company
Common Stock by the Purchaser in the Offer.

     “Person” means an individual, corporation, partnership, limited liability
company, association, trust or other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

     “Proposed Business Combination” means the Offer, the Merger and the
related transactions contemplated by the Merger Agreement.

     “Transfer” means, with respect to a security, the sale, transfer, pledge,
hypothecation, encumbrance, assignment or disposition of such security or the
Beneficial Ownership thereof (other than by operation of law), the offer to
make such a sale, transfer or other disposition, and each option, agreement,
arrangement or understanding, whether or not in writing, to effect any of the
foregoing. As a verb, “Transfer” shall have a correlative meaning.

     2. Tender of Shares; Agreement to Sell.

     (a) In order to induce Parent and the Purchaser to enter into the
Merger Agreement, each Shareholder hereby agrees to validly tender (or
cause the record owner of such shares to validly tender), pursuant to and
in accordance with the terms of the Offer, not later than the 20th business
day after commencement of the Offer, such Shareholder’s Owned Shares. If a
Shareholder acquires Beneficial Ownership of additional shares of Company
Common Stock after the date hereof and prior to termination of this
Agreement, such Shareholder shall tender such additional shares of Company
Common Stock on such 20th business day or, if later, on the second business
day after such acquisition. A Shareholder shall not withdraw any shares
tendered pursuant this Section 2(a) unless this Agreement is terminated or
the Offer is terminated or has expired without Purchaser purchasing all
shares validly tendered in the Offer and not withdrawn. Notwithstanding
anything herein to the contrary, Limited Brands, Inc. shall not be
obligated to tender its warrant for 1,350,000 shares of Company Common
Stock, with an exercise price in excess of $44.82 per share

2

 

(the “Warrant”), or any shares of Company Common Stock issuable upon
exercise of the Warrant (unless Limited Brands, Inc. elects to exercise
such Warrant).

     (b) Without the written consent of each Shareholder, Purchaser shall
not (i) decrease the Offer Price, (ii) decrease the aggregate number of
shares of Company Common Stock sought or (iii) change the form of
consideration to be paid pursuant to the Offer.

     3. No Disposition or Solicitation.

     (a) Each Shareholder agrees that from and after the date hereof,
except as contemplated by this Agreement, such Shareholder will not (as a
Shareholder, trustee or custodian) Transfer or agree to Transfer any of
such Shareholder’s Owned Shares or any options or warrants or other rights
held or owned by such Shareholder to acquire Company Common Stock (other
than any transfer of an option or warrant to the Company in connection with
the exercise of such option or warrant by such Shareholder) without
Parent’s prior written consent (which consent shall not be unreasonably
withheld or delayed in the context of a Transfer to any member of the
immediate family of such Shareholder or to any trust the Beneficial
Ownership of which is held by such Shareholder, provided in each case that
such transferee agrees, in a form satisfactory to Parent, to be bound by
the terms of this Agreement), or grant any proxy or power-of-attorney with
respect to any such Company Common Stock other than pursuant to this
Agreement.

     (b) Shareholder will not, in its capacity as a shareholder of the
Company, and will use its reasonable best efforts to ensure that its
investment bankers, attorneys, accountants, agents or other advisors or
representatives (the “Shareholder Representatives”), directly or
indirectly, will not take any action with respect to any Takeover Proposal
that the Company is prohibited from taking under clause (i) or (ii) of
Section 5.1.3 of the Merger Agreement; provided that, in the event the
Company takes action under Section 5.1.3 of the Merger Agreement, each
Shareholder will be entitled to participate in all actions that the Company
is or would be entitled to take under Section 5.1.3 of the Merger Agreement
so long as such actions are taken in compliance with such Section 5.1.3.
Notwithstanding the foregoing, it is agreed and understood by the parties
that the term “Shareholder Representatives” shall not include the Company
or any subsidiary of the Company or any of their respective investment
bankers, attorneys, accountants, agents or other advisors or
representatives.

     (c) Shareholder will cease and cause to be terminated all existing
discussions or negotiations conducted by it or its behest with respect to
any Takeover Proposal (other than with Parent and Purchaser).

     4. Option.

     (a) On the terms and subject to the conditions set forth herein,
each Shareholder hereby grants to each of Parent and Purchaser an
irrevocable option (the “Option”) to purchase all of the right, title and
interest of such Shareholder in and to such Shareholder’s Owned Shares at a
price per share equal to the Offer Price but not less than $16.75 per
share. The Parent or Purchaser, as the case may be, may exercise an Option
in whole, but

3

 

not in part, if, but only if, (i) Purchaser has acquired all shares of
Company Common Stock validly tendered pursuant to the Offer and (ii) such
Shareholder shall have failed to tender into the Offer any Owned Shares or
shall have withdrawn the tender of any Owned Shares into the Offer.

     (b) In the event that Parent or Purchaser is entitled to and wishes
to exercise an Option, Parent or Purchaser shall send a written notice to
the relevant Shareholder or parties prior to the termination of this
Agreement specifying the place and the date for the closing of such
purchase, which date shall be not less than three business days and not
more than five business days after the date of such notice; provided that
in the event that prior notification to, or approval of, any Governmental
Entity is required in connection with the exercise of an Option or there
shall be in effect any preliminary or final injunction or other order
issued by any Governmental Entity prohibiting the exercise of an Option,
the period of time during which the date of the closing may be fixed shall
be extended until the tenth day following the last date on which all
required approvals shall have been obtained, all required waiting periods
shall have expired or been terminated and any such prohibition shall have
been vacated, terminated or waived.

     (c) At the closing of the purchase of a Shareholder’s Owned Shares
pursuant to exercise of an Option, simultaneously with the payment by
Parent or Purchaser of the purchase price for a Shareholder’s Owned Shares,
such Shareholder shall deliver, or cause to be delivered, to Parent or
Purchaser certificates representing such Owned Shares duly endorsed to
Parent or Purchaser or accompanied by stock powers duly executed by the
Company in blank, together with any necessary stock transfer stamps
properly affixed, free and clear of all Liens.

     5. Agreement to Vote. Each Shareholder agrees that (a) at such time
as the Company conducts a meeting (including any adjournment thereof) of or
otherwise seeks a vote or consent of its shareholders for the purpose of
approving the Merger Agreement and the transactions contemplated by the Merger
Agreement, including the Merger, such Shareholder will vote, or provide a
consent with respect to, all Company Common Stock (including the Owned Shares)
which, as of the relevant record date, such Shareholder has the power to vote,
in favor of approving the Merger Agreement and the transactions contemplated by
such Agreement, including the Merger, and (b) such Shareholder will (at any
meeting of shareholders or in connection with any consent solicitation) vote
all shares of Company Common Stock (including the Owned Shares) which, as of
the relevant record date, such Shareholder has the power to vote, against, and
will not consent to, any Takeover Proposal with a Person other than Parent and
Purchaser or any action that would or is designed to delay, prevent or
frustrate the Proposed Business Combination. Without limiting the foregoing, it
is understood that the obligations under clause (a) in this Section 5 shall
remain applicable in respect of each meeting of shareholders of the Company
duly called for the purpose of approving the Merger Agreement and the
transactions contemplated thereby, including the Merger, regardless of the
position of the Company’s board of directors as to the Proposed Business
Combination at the time of such meeting.

4

 

     6. Information. Each Shareholder will provide any information
requested by the Company or Parent for any regulatory application or filing
made or approval sought for such transactions (including filings with the SEC).

     7. Additional Stock. Each Shareholder agrees that any additional
shares of Company Common Stock or securities convertible into Company Common
Stock acquired by such Shareholder or over which it acquires Beneficial
Ownership or voting power or dispositive power, whether pursuant to existing
stock option agreements, warrants or otherwise, shall be subject to the
provisions of this Agreement.

     8. Irrevocable Proxy.

     (a) In furtherance of the agreements contained in this Agreement,
each Shareholder hereby irrevocably grants to, and appoints, Edward W.
Stack, Chairman and Chief Executive Officer of Parent, William J. Colombo,
President of Parent, Michael F. Hines, Chief Financial Officer of Parent,
and William R. Newlin, Chief Administrative Officer of Parent, in their
respective capacities as officers of Parent, and any individual who shall
hereafter succeed to any such office of Parent, and each of them
individually, such Shareholder’s proxy and attorney-in-fact (with full
power of substitution), for and in the name, place and stead of such
Shareholder, to vote all shares of such Shareholder’s Owned Shares or
Company Common Stock over which such Shareholder has voting power, or grant
a consent or approval in respect of such shares, or execute and deliver a
proxy to vote such shares, (i) in favor of adopting the Merger Agreement
and approving the transactions contemplated thereby, including the Merger,
and (ii) against any Takeover Proposal with a Person other than Parent and
Purchaser or any other matter referred to in clause (b) of Section 5
hereof. For the avoidance of doubt, the proxy granted by each Shareholder
pursuant to this Section 8(a) is not granted with respect to any matter
other than those matters set forth in items (i) and (ii) of this Section
8(a).

     (b) Each Shareholder represents and warrants to Parent and
Purchaser that any proxies heretofore given by it in respect of shares of
Company Common Stock are not irrevocable, and that any such proxies are
hereby revoked, and agrees to communicate in writing notice of revocation
of such proxies to the relevant proxy holders.

     (c) Each Shareholder hereby affirms that the irrevocable proxy set
forth in Section 8(a) is given in connection with, and in consideration of,
the execution of the Merger Agreement by Parent and Purchaser, and that
such irrevocable proxy is given to secure the performance of the duties of
such Shareholder under this Agreement. Each Shareholder hereby further
affirms that the irrevocable proxy is coupled with an interest and may
under no circumstances be revoked. Such Shareholder hereby ratifies and
confirms all that such irrevocable proxy may lawfully do or cause to be
done by virtue hereof. Such irrevocable proxy is executed and intended to
be irrevocable in accordance with the provisions of Section 3 of Chapter 30
of the Indiana Business Corporation Law.

     (d) Nothing contained in this Agreement shall give Parent or Purchaser
the right to control or direct the Company or the Company’s operations.

5

 

     9. Representations, Warranties and Covenants of the Shareholders.
Each Shareholder hereby individually (and not jointly or severally) represents
and warrants to, and agrees with, Parent and Purchaser as follows:

     (a) Such Shareholder has all necessary power and authority and
legal capacity to execute and deliver this Agreement and perform its
obligations hereunder. In the case of each Shareholder who is not a natural
person, no other proceedings or actions on the part of such Shareholder are
necessary to authorize the execution, delivery or performance of this
Agreement or the consummation of the transactions contemplated hereby.

     (b) This Agreement has been duly and validly executed and delivered
by such Shareholder and constitutes a valid, legal and binding agreement of
such Shareholder, enforceable against such Shareholder in accordance with
its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and
similar laws of general applicability relating to or affecting creditors’
rights or by general equity principles.

     (c) Each Shareholder is the sole Beneficial Owner of such
Shareholder’s Owned Shares, other than those Owned Shares Beneficially
Owned by a family trust or child of such Shareholder. Each Shareholder has
the sole right to vote, or cause to be voted, and to dispose, or cause the
disposition, of such Shareholder’s Owned Shares and there exist no
limitations on its ability to exercise such right. Each Shareholder has
good and marketable title (which may include holding in nominee or “street”
name) to all of such Shareholder’s Owned Shares (other than those Owned
Shares Beneficially Owned by a family trust or child of such Shareholder),
free and clear of all Liens (other than as created by this Agreement and
the restrictions on Transfer under applicable securities laws). The Owned
Shares constitute all of the capital stock of the Company Beneficially
Owned by such Shareholder.

     (d) Subject to requisite shareholder approval and except for the
consents referred to in Section 4.1.8 of the Merger Agreement, neither the
execution nor delivery of this Agreement by such Shareholder nor the
Shareholder’s consummation of the transactions contemplated hereby will
conflict with, result in any violation of, or constitute a default under,
(i) any material mortgage, bond, indenture, agreement, instrument or
obligation to which such Shareholder is a party or by which such
Shareholder or any of the Owned Shares is bound (or, in the case of each
Shareholder that is not a natural person, such Shareholder’s constituent
documents), or (ii) any judgment, decree, order or material law or
regulation of any governmental agency or authority in the United States by
which such Shareholder or any of its subsidiaries is bound, except, with
respect to clauses (i) and (ii) above, where the conflict or default,
individually or in the aggregate, will not have a material adverse effect
on such Shareholder.

     (e) Each Shareholder understands and acknowledges that each of
Parent and Purchaser is entering into the Merger Agreement in reliance upon
such Shareholder’s execution, delivery and performance of this Agreement.

6

 

     10. Representations and Warranties of Parent. Parent represents and
warrants to each Shareholder as follows:

     (a) Organization, Good Standing, Capitalization. Parent is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware with all requisite corporate power and
authority to own, operate and lease its properties, to carry on its
business as now being conducted, and to enter into this Agreement and
perform its obligations hereunder.

     (b) Purchaser. Parent owns all of the issued and outstanding shares
of Purchaser. Purchaser is a corporation duly organized, validly existing
and in good standing under the laws of the State of Indiana with all
requisite corporate power to enter into this Agreement and perform its
obligations hereunder. All of the issued and outstanding shares of
Purchaser have been validly issued and are fully paid and non-assessable
with no personal liability attaching to the ownership thereof. There are
no outstanding rights, options, warrants, conversion rights or agreements
for the purchase or acquisition from, or the sale or issuance by, Purchaser
of any shares of its capital stock, other than this Agreement. Since its
organization, Purchaser has conducted no business activities, except such
as are related to this Agreement and the performance of its obligations
hereunder.

     (c) Authority Relative to this Agreement, etc. Each of Parent and
Purchaser has taken all necessary corporate action to approve this
Agreement and the performance of its obligations hereunder. This Agreement
has been duly and validly executed and delivered by each of Parent and
Purchaser and constitutes a valid, legal and binding agreement of each of
Parent and Purchaser, respectively, enforceable against each of Parent and
Purchaser in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer and similar laws of general applicability relating to
or affecting creditors’ rights or by general equity principles.

     (d) Compliance with other Instruments, etc. Subject to the consents
referred to in Section 4.2.5 of the Merger Agreement, neither the execution
nor delivery of this Agreement by Parent or Purchaser nor Parent’s or
Purchaser’s consummation of the transactions contemplated hereby will
conflict with, result in any violation of, or constitute a default under,
the Articles or Certificate of Incorporation or Bylaws of Parent or
Purchaser or any agreement, mortgage, indenture, license, permit, lease or
other instrument material to Parent and its subsidiaries taken as a whole
or any judgment, decree, order, or any material law or regulation of any
governmental agency or authority in the United States by which Parent or
any of its subsidiaries is bound.

     (e) Governmental and other Consents, etc. Subject to any required
filing with the U.S. Department of Justice or the Federal Trade Commission,
no material consent, approval or authorization of or designation,
declaration or filing with any Governmental Entity on the part of Parent or
Purchaser is required in connection with the execution or delivery by
Parent and Purchaser of this Agreement or the consummation of the
transactions by Parent

7

 

and Purchaser contemplated hereby other than filings with the SEC and
any applicable national securities exchange or quotation system.

     (f) No Broker. No broker, finder or investment banker is entitled to
any brokerage, finder’s or other fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by
or on behalf of Parent or Purchaser other than Peter J. Solomon Company,
L.P.

     (g) Litigation. There is not now pending, and to the knowledge of
Parent and Purchaser there is not threatened, any litigation, action, suit
or proceeding to which Parent or Purchaser or any of their respective
subsidiaries is or will be a party in or before or by any Governmental
Entity, except for any litigation, action, suit or proceeding (whether
instituted, pending or threatened) involving claims which, individually or
in the aggregate, will not have a Material Adverse Effect on Parent and
Purchaser or the Merger. In addition, there is no judgment, decree,
injunction, rule or order of any Governmental Entity or arbitrator
outstanding against Parent or Purchaser or any of their respective
subsidiaries having or which, individually or in the aggregate, will not
have a Material Adverse Effect on Parent and Purchaser or the Merger.

     (h) Offer Documents; Proxy Statement.

          (1) None of the Offer Documents will, at the times such documents are
filed with the SEC and are mailed to the shareholders of the Company,
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the
statements made therein, in light of the circumstances under which they are
made, not misleading, except that no representation is made by Parent or
Purchaser with respect to information supplied in writing by the Company or
an affiliate of the Company expressly for inclusion therein. The Offer
Documents will comply as to form in all material respects with the
provisions of the Exchange Act and the rules and regulations of the SEC
thereunder.

          (2) None of the information supplied by Parent, Purchaser or any
affiliate of Parent or Purchaser for inclusion in the Proxy Statement or
the Schedule 14D-9 will, at the date of filing with the SEC, and, in the
case of the Proxy Statement, at the time the Proxy Statement is mailed and
at the time of the Special Shareholders Meeting, contain any untrue
statement of a material fact or omit to state any material fact required to
be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.

     11. Termination. This Agreement, and all rights and obligations of the
parties hereunder (other than those set forth in Section 12(a)), shall
terminate upon the earlier of: (i) the Effective Time of the Merger, (ii) the
acceptance for payment of the Owned Shares by Parent or Purchaser in the Offer,
(iii) the failure of Purchaser timely to commence the Offer, (iv) the failure
of Purchaser timely to purchase all Owned Shares of the Shareholders in the
Offer or (v) the date upon which the Merger Agreement is terminated pursuant to
Section 7 thereof without the Merger having been consummated.

8

 

12. Miscellaneous.

     (a) Costs and Expenses. Except as otherwise provided in this
Agreement, all costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the
party incurring such expenses.

     (b) Execution in Counterparts. For the convenience of the
parties, this Agreement and any amendments, supplements, waivers and
modifications may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one
and the same document.

     (c) Assignment. This Agreement and all of the provisions hereof
shall be binding upon and inure to the benefit of the parties and their
respective successors, personal or legal representatives, executors,
administrators, heirs, distributees, devisees, legatees and permitted
assigns, but neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any party (whether by operation
of law or otherwise), in whole or in part, without the prior written
consent of the other parties; provided, that Parent or Purchaser may assign
any or all rights under this Agreement to any subsidiary of Parent, and
Purchaser may assign any or all rights under this Agreement to Parent.

     (d) Amendments and Waivers. This Agreement may not be amended,
changed, supplemented, or otherwise modified or terminated, except upon the
execution and delivery of a written agreement executed by the parties
hereto; provided, that each of Parent and Purchaser may waive compliance by
any other party with any representation, agreement or condition otherwise
required to be complied with by any other party under this Agreement or
release any other party from its obligations under this Agreement, but any
such waiver or release shall be effective only if in a writing executed by
Parent and Purchaser.

     (e) Notices. All notices and other communications hereunder shall
be in writing and shall be deemed given (i) upon transmitter’s confirmation
of a receipt of a facsimile transmission, (ii) confirmed delivery by a
nationally reputable standard overnight carrier or (iii) when delivered by
hand, addressed at the address for such party set forth below.

	 	 	 
	

	 	If to a Shareholder, to such Shareholder at the address set forth
beside its name on Schedule A hereto with a copy to:
	 
	 	 
	

	 	Galyan’s Trading Company, Inc.
	

	 	One Galyans Parkway
	

	 	Plainfield, Indiana 46168
	

	 	Fax: (317) 532-0269
	

	 	Attention: C. David Zoba, Executive Vice President, General
	

	 	Counsel and Secretary

9

 

	 	 	 
	

	 	and to:
	 
	 	 
	

	 	Drake S. Tempest, Esq.
	

	 	O’Melveny & Myers LLP
	

	 	Times Square Tower
	

	 	7 Times Square
	

	 	New York, NY 10036
	

	 	Fax: (212) 326-2061
	 
	 	 
	

	 	If to Parent or Purchaser, to:
	 
	 	 
	

	 	Dick’s Sporting Goods, Inc.
	

	 	200 Industry Drive
	

	 	RIDC Park West
	

	 	Pittsburg, Pennsylvania 15275
	

	 	Fax: (412) 490-1394
	

	 	Attention: William R. Newlin, Executive Vice President and Chief
	

	 	Administrative Officer
	 
	 	 
	

	 	With a copy to:
	 
	 	 
	

	 	Lewis U. Davis, Jr., Esq.
	

	 	Jeremiah G. Garvey, Esq.
	

	 	Buchanan Ingersoll PC
	

	 	One Oxford Centre
	

	 	300 Grant Street, 20th Floor
	

	 	Pittsburgh, PA 15219
	

	 	Fax: (412) 562-1041

or to such other address or facsimile number as the Person to whom notice
is given shall have previously furnished to the others in writing in the
manner set forth above.

     (f) Inadequate Remedy at Law; Specific Performance. Each
Shareholder acknowledges and agrees that in the event of any breach of this
Agreement, Parent would be irreparably and immediately harmed and could not
be made whole by monetary damages. It is accordingly agreed with respect to
any provision of this Agreement that (i) each Shareholder will waive, in
any action for specific performance, the defense of adequacy of a remedy at
law, and (ii) Parent shall be entitled, in addition to any other remedy to
which it may be entitled at law or in equity, to compel specific
performance of this Agreement.

     (g) Cumulative Rights, Powers and Remedies. All rights, powers and
remedies provided under this Agreement or otherwise available in respect
hereof at law or in equity shall be cumulative and not alternative, and the
exercise of any thereof by any party shall not preclude the simultaneous or
later exercise of any other such right, power or remedy by such party. The
failure of any party hereto to exercise any right, power or remedy provided

10

 

under this Agreement or otherwise available in respect hereof at law
or in equity, or to insist upon compliance by any other party hereto with
its obligations hereunder, and any custom or practice of the parties at
variance with the terms hereof, shall not constitute a waiver by such party
of its right to exercise any such or other right, power or remedy or to
demand such compliance.

     (h) Entire Agreement; No Third Party Beneficiaries. This
Agreement, along with the specific references to the Merger Agreement,
constitutes the complete, final and exclusive agreement among the parties
and supersedes any and all prior agreements and understandings, written or
oral, among the parties heretofore made with respect to the subject matter
hereof. Nothing in this Agreement, express or implied, is intended to or
shall confer upon any other Person any rights, benefits or remedies of any
nature whatsoever under or by reason of this Agreement.

     (i) Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Indiana
without regard to any principles of conflict of laws. Each of the parties
hereto consents to submit itself to the personal jurisdiction of any
federal court located in the Northern District of Indiana or any Indiana
state court located in a county within the area comprising the Federal
District Court for the Northern District of Indiana in the event any
dispute arises out of this Agreement or the transactions contemplated by
the Merger Agreement, (ii) agrees that it shall not attempt to deny or
defeat such personal jurisdiction by motion or other request for leave from
any such court and (iii) agrees that it shall not bring any action relating
to this Agreement or the transactions contemplated by the Merger Agreement
in any court other than a federal or state court sitting in the Federal
District Court for the Northern District of Indiana or a county within the
area comprising the Federal District Court for the Northern District of
Indiana.

     (j) Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT
ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH
PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 12(j).

11

 

     (k) Severability. If any term, provision, covenant or restriction
contained in this Agreement is held by a court or a federal or state
regulatory agency of competent jurisdiction to be invalid, void or
unenforceable under any rule of law in any particular respect or under any
particular circumstances, the remainder of the terms, provisions and
covenants and restrictions contained in this Agreement shall remain in full
force and effect, and shall in no way be affected, impaired or invalidated.
If any provision of this Agreement is so broad as to be unenforceable, the
provision shall be interpreted to be only so broad as is enforceable.

     (l) Interpretation. The section and paragraph captions herein are for
convenience of reference only, do not constitute part of this Agreement and
shall not be deemed to limit or otherwise affect any of the provisions
hereof. The words “include,” “includes,” and “including” shall be deemed
to be followed by “without limitation” whether or not they are in fact
followed by such words or words of like import.

     (l) Publicity. The initial press release concerning the Offer and the
Merger shall be a joint press release from the Company and Parent and,
thereafter, except as otherwise required by law or the rules of the SEC,
the NYSE or NASDAQ, for so long as this Agreement is in effect, no party
shall, or shall permit any of their respective subsidiaries to, issue or
cause the publication of any press release or other public announcement
with respect to the transactions contemplated by this Agreement without the
consent of the other parties, which consent shall not be unreasonably
withheld; provided, however, that any party hereto may file a copy of this
Agreement and the related agreements with the SEC and the Purchaser and the
Parent may summarize the terms of this Agreement in the Purchaser’s tender
offer materials and in any oral solicitations made in accordance with
Regulation 14D promulgated by the SEC and in any other filings made by
Parent with the SEC.

     13. Shareholder Capacity. No Shareholder executing this Agreement nor
any partner, member, employee or Affiliate of a Shareholder who is or becomes
during the term hereof a director or officer of the Company makes any agreement
or understanding herein in his or her capacity as such a director or officer,
and this Agreement does not bind any partner, member, employee or Affiliate of
a Shareholder in such person’s capacity as a director of officer. Each
Shareholder executing this Agreement does so solely in such Shareholder’s
capacity as the owner of record and/or Beneficial Owner of the Owned Shares or
as having the power to vote or dispose of the Owned Shares and nothing herein
(including in Section 4) shall limit or affect any actions taken or omitted to
be taken by a Shareholder, or any partner, member, employee or Affiliate of a
Shareholder, in his or her capacity as an officer or director of the Company
(including, for the avoidance of doubt, any action in the discharge of
fiduciary duties in compliance with Section 5.1.3 of the Merger Agreement);
provided, that nothing in this Section 13 shall be deemed to permit any
Shareholder to take any action on behalf of the Company that is prohibited by
the Merger Agreement.

     14. Further Assurances. From time to time, at Parent’s or Purchaser’s
request and without further consideration, each Shareholder shall execute and
deliver such additional documents and take all such further lawful action as
may be necessary or desirable to consummate and make

12

 

effective, in the most expeditious manner practicable, the transactions
contemplated by this Agreement.

[Remainder of page intentionally left blank]

13

 

[Shareholder Signature Page to Shareholder Tender Agreement]

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

	 	 	 	 	 	 	 	 	 
	 	 	FS EQUITY PARTNERS IV, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	By: FS Capital Partners LLC
	 	 	Its: General Partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	  /s/ John M. Roth
	 	 	 	 	 	 	

	

	 	 	 	 	 	Name:
	 	John M. Roth
	

	 	 	 	 	 	Title:	 	 
	

	 	 	 	 	 	 	 	

S-1

 

[Shareholder Signature Page to Shareholder Tender Agreement]

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

	 	 	 	 	 	 	 
	 	 	LIMITED BRANDS, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	  /s/ Timothy J. Faber
	 	 	 	 	

	 	 	 	 	Name: Timothy J. Faber
	 	 	 	 	Title: Vice President Treasurer
	 
	 	 	 	 	 	 
	 	 	G TRADEMARK, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	  /s/ Timothy J. Faber
	 	 	 	 	

	 	 	 	 	Name: Timothy J. Faber
	

	 	 	 	Title:	 	 
	

	 	 	 	 	 	

S-2

 

[Parent’s and Purchaser’s Signature Page to Shareholder Tender Agreement]

	 	 	 	 	 	 	 
	 	 	DICK’S SPORTING GOODS, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	  /s/ William R. Newlin
	 	 	 	 	

	

	 	 	 	Name:
	 	William R. Newlin
	

	 	 	 	Title:
	 	Executive Vice President &
	

	 	 	 	 	 	Chief Administrative Officer
	 
	 	 	 	 	 	 
	 	 	DIAMONDBACKS ACQUISITION INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	  /s/ William R. Newlin
	 	 	 	 	

	 	 	 	 	Name: William R. Newlin
	 	 	 	 	Title: President

S-3

 

SCHEDULE A

SHAREHOLDERS

	 	 	 	 	 	 	 
	 	 	 	 	NUMBER
	NAME
	 	ADDRESS
	 	OF SHARES

	FS Equity Partners IV, L.P.
	 	11100 Santa Monica Blvd	 	 	5,694,500	 
	 
	 	Suite 1900	 	 	 	 
	 
	 	Los Angeles, CA 90025	 	 	 	 
	Limited Brands, Inc.
	 	Three Limited Parkway	 	 	550,500	 
	 
	 	Columbus, OH 43230	 	 	 	 
	G Trademark, Inc.
	 	c/o Limited Brands, Inc.	 	 	3,350,000	 
	 
	 	Three Limited Parkway	 	 	 	 
	 
	 	Columbus, OH 43230	 	 	 	 

S-4

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