Document:

Exhibit
10.5

AMENDED
AND RESTATED

EMPLOYMENT AGREEMENT

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

WITNESSETH:

WHEREAS, the Company has
retained the services of Executive pursuant to the terms of that certain
Employment Agreement between Company and Executive dated May 11, 2005 (the “2005
Employment Agreement”);

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

WHEREAS, following execution of
this Agreement, the 2005 Employment Agreement shall terminate and be of no
further force or effect.

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

ARTICLE
I.

EMPLOYMENT AND TERM

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

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

ARTICLE
II.

COMPENSATION

2.1           SALARY.  As compensation for his services to the
Company and as compensation for his confidentiality, non-competition and
non-solicitation agreement provided in Article 3 of this Agreement, Executive
shall receive an annual salary in the amount of One Hundred Ninety-eight
Thousand Dollars ($198,000) (the “Salary”) payable on a pro rata, bi-weekly
basis in accordance with the Company’s regular payroll processes.  The Salary shall be reviewed by the Board on
the first business day of each fiscal year occurring during the Term (the “Review
Date”), the first such review to take place on March 1, 2007 and the Board may

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(but shall not be
obligated to) increase or decrease said salary as of the Review Date by such
amount as the Board deems appropriate.

2.2           STOCK OPTIONS.  Effective upon the date of the 2005
Employment Agreement, the Board of Directors approved grants for his right and
option to purchase 20,000 shares of common stock of the Company as a senior
level executive employee.  Future grants for
his right and option to purchase additional shares of Common Stock of the
Company shall be reviewed by the Company’s Board annually in the spring
occurring during the Term (the “Review Date”), the next such review to take
place in the spring of 2007 and the Board may (but shall not be obligated to)
approve additional grants as of the Review Date by an amount as the Board deems
appropriate.  The vesting schedule and
terms of the options will be consistent with other grants and communicated at
the time of Board approval.

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

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

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

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

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

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

ARTICLE
III.

DUTIES OF EXECUTIVE

3.1           SERVICES; DUTIES.  Executive shall have the normal duties,
responsibilities and authority of Senior Vice President, Sales and Operations,
subject to the power of the President or the Board to expand or limit such
duties, responsibilities and authority. 
Executive shall devote Executive’s full time and best efforts to the
business of the Company.  Executive 

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shall perform the
duties and obligations required of Executive hereunder in a competent,
efficient and satisfactory manner at such hours and under such conditions as
the performance of such duties and obligations may require.

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

3.3           NON-COMPETITION AND
NON-SOLICITATION.

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

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

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

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

3.4           PATENT AND RELATED MATTERS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE
IV.

TERMINATION

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

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

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

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

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

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

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

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

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

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

4.2           TERMINATION BY COMPANY FOR
ANY OTHER REASON.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE
V.

SETTLEMENT BY ARBITRATION

5.1           ARBITRATION.  The Company and Executive agree that any
claim or controversy arising out of or relating to this Agreement, including
but not limited to the making of it or the alleged breach of it, and any
alleged violation of any right created by statute, shall be discussed between
the disputing parties in a good faith effort to arrive at a mutual settlement
of any such claim or controversy.  If,
notwithstanding, such claim or controversy cannot be resolved, the Company and
Executive agree that any claim or controversy will be settled by arbitration in
the City of Minneapolis, Minnesota, in accordance with the provisions of this
Agreement, and the arbitration rules of the American Arbitration Association,
unless such rules are inconsistent with the provisions of this Agreement.  Limited civil discovery shall be permitted
for the production of documents and taking of depositions.  Unresolved discovery disputes may be brought
to the attention of the arbitrator who may dispose of such dispute.  The arbitrator shall have the authority to
award any remedy or relief that a court of this state could order or grant;
provided, however, that punitive or exemplary damages shall not be
awarded.  The award rendered pursuant to
such arbitration shall be final, binding and conclusive as to the Company and
Executive, and judgment upon such award may be entered without notice and
enforced in any court having jurisdiction. 
Costs of arbitration (excluding the costs of each party’s own counsel or
advisors) shall be borne equally by the Company and Executive.  Notwithstanding the foregoing, the Company
shall have the right to submit any claim against Executive arising out of any
provision of Article III hereof to any court of competent jurisdiction in
Hennepin County, Minnesota, in lieu of seeking arbitration pursuant to this
Section.

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ARTICLE
VI.

GENERAL PROVISIONS

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

	
   

  	
  (a)

  	
  If to the Company, to:

  	
   

  	
  Golf Galaxy, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  7275 Flying
  Cloud Drive

  
	
   

  	
   

  	
   

  	
   

  	
  Eden Prairie, MN
  55344

  
	
   

  	
   

  	
   

  	
   

  	
  ATTN: President]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  If to Executive, to:

  	
   

  	
  Ronald G. Hornbaker

  
	
   

  	
   

  	
   

  	
   

  	
  2994 Aldine
  Street

  
	
   

  	
   

  	
   

  	
   

  	
  Roseville, MN
  55113

  

 

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

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

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

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

 11
 

 

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

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

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

6.9           TERMINATION OF 2005
EMPLOYMENT AGREEMENT. Effective the date of this Agreement, the
2005 Employment Agreement shall terminate and be of no further force and
effect, and shall be superseded and replaced in its entirety by this Agreement.

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

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  GOLF GALAXY,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RANDALL K.
  ZANATTA

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
  President and
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ RONALD G. HORNBAKER

  	
   

  
	
   

  	
    Ronald
  G. Hornbaker

  
							

 

 12Exhibit
10.6

AMENDED
AND RESTATED

RETENTION AGREEMENT

	
  DATE:

  	
   

  	
  October 9, 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PARTIES:

  	
   

  	
  Golf Galaxy, Inc.

  	
   

  	
  (“Company”)

  
	
   

  	
   

  	
  7275 Flying Cloud Drive

  	
   

  	
   

  
	
   

  	
   

  	
  Eden Prairie, MN 55344

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Randall K. Zanatta

  	
   

  	
  (“Employee”)

  
	
   

  	
   

  	
  4721 White Oak Court

  	
   

  	
   

  
	
   

  	
   

  	
  Eagan, Minnesota 55122

  	
   

  	
   

  
							

 

RECITALS

A.           Employee
is employed by the Company;

B.             The
Board of Directors wishes to plan for the possibility of a change in control
and to ensure Employee’s continued dedication and efforts in such event without
undue concern for personal financial and employment security;

C.             The
Company wishes to provide Employee with an eighteen (18) - month severance
period rather than the six (6) month severance period provided in that certain
Retention Agreement between Company and Employee dated December 31, 1997 (the “1997
Retention Agreement”);

D.            The
parties hereto desire to fulfill the above purpose according to the terms set
forth in this Agreement; and

E.              Following
execution of this Agreement, the 1997 Retention Agreement shall terminate and
be of no further force or effect.

AGREEMENT

In consideration for the
mutual covenants set forth in this Agreement and other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties to
this Agreement agree as follows:

1.                                       Definitions.
The following words and phrases as used in this Agreement shall have the
following respective meanings.

a)                                      a
termination of employment for Cause is a
termination precipitated by Employee’s:

 1
 

 

i)                                         The
Employee shall commit any breach or violation of any of the Employee’s
representations or covenants under this Agreement or under any employment
agreement with the Company, which breach continues for a period of ten (10)
days following notice thereof from the Company (except in the event of a breach
of any provisions of this Agreement or of any employment agreement or other
agreement relating to confidentiality, loyalty, noncompetition or
noninducement, which shall require no notice to Employee prior to termination;

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

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

iv)                                  The
Employee shall, in the performance of the Employee’s duties under any
employment agreement, engage in any act of misconduct, including misconduct
involving moral turpitude, which is injurious to the Company;

v)                                     The
Employee shall violate or willfully refuse to obey the lawful and reasonable
instructions of the Board of the Company, provided that such
instructions are not in violation of this Agreement or any employment agreement
between the Employee and the Company.

vi)                                  The
Employee shall become disabled during the Term (the Employee shall be deemed to
be disabled if the Employee is unable to perform the material functions of
Employee’s position with the Company, with or without reasonable accommodation,
by reason of a physical or mental infirmity, for a period of ninety (90)
consecutive days within any 180-day period).

vii)                               The
Employee shall die during the Term of this Agreement.

b)            A Change
in Control shall be deemed to occur:

i)                                         if
any person other than persons owning more than five percent of the Company’s
securities on July 28, 2005 is or becomes the “beneficial owner” (as defined in
Rule 13d-3 of the Securities Exchange Act of 1934), directly or indirectly, of
securities of the Company representing 50% or

 2
 

 

more of the combined voting power of the Company’s
then outstanding securities;

ii)                                      upon
the approval by the Company’s stockholders and the consummation of a
Transaction; or

iii)                                   if,
during any period, members of the Incumbent Board cease for any reason to
constitute at least a majority of the Board.

Notwithstanding the foregoing, a Change in Control
pursuant to subparagraphs (ii) and (iii) above shall not be deemed to occur if
immediately following the consummation of a Transaction or other event approved
by the Incumbent Board, holders of the Company’s voting securities immediately
prior to a Transaction either continue to own at least 50% of the combined
voting power of the Company’s then outstanding voting securities representing
at least 50% of the combined voting power of each surviving entity after a
Transaction.

c)                                      Code means the Internal Revenue Code
of 1986, as amended.

d)                                     Termination
of employment by Employee for Good Reason is
a termination of employment due to the occurrence of any one of the following
events or conditions:

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

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

e)                                      The
Incumbent Board consists of the
members of the Board of Directors of the Company as of the date of this
Agreement, to the extent they continue to serve as Board members and any
individual who becomes a Board member after the date of this Agreement if (i)
his or her election or nomination as a director was approved by a vote of at least
two thirds of the then incumbent Board and such person does not own more than
20% of the Company’s securities, or (ii) such

 3
 

 

individual is a representative of an institutional investor that either
owns less than 20% of the Company’s securities or was represented on the Board
as of the date of this Agreement.

f)                                        The
Severance Period is the eighteen
(18) - month period beginning on the date of termination of Employee’s
employment.

g)                                     A
Transaction means a merger or
consolidation, reorganization, distribution of assets to stockholders by
spin-off, split-up or otherwise, a sale or disposition of all or substantially
all of the Company’s assets or a liquidation or dissolution of the Company.

2.                                       Severance.

a)                                      Employee
shall be entitled to receive from the Company severance benefits in the amount
provided in subsection (b) below, if (x) in connection with a Change in
Control, (y) within 90 days prior to a Change in Control, or (z) within one
year after a Change in Control, Employee’s employment with the Company is
terminated; provided, however, that Employee will not be entitled to any
severance benefit if Employee’s termination of employment is (i) for Cause, or
(ii) initiated by Employee for other than Good Reason. Notwithstanding any
other provision of this Agreement, the consummation of a Transaction in itself
shall not be deemed a termination of employment entitling Employee to severance
benefits hereunder even if such event results in Employee being employed by a
different entity which assumes the Company’s obligations under this Agreement.

b)                                     If
Employee’s services are terminated, entitling Employee to severance benefits
pursuant to subsection a. above, Employee shall be entitled to the following
benefits:

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

ii)                                      During
the Severance Period, the Company shall continue on behalf of Employee (and
Employee’s dependents and beneficiaries), life insurance, disability insurance,
medical and dental benefits and any/all other benefits which were being
provided to Employee at the time of termination of employment and the expense
shall be allocated between the Company and Employee on the same basis as prior
to the date of termination of employment. The benefits provided pursuant to
this subsection (ii) shall be no less favorable to Employee than the coverage
provided to Employee under the plans providing such benefits at the time notice
of termination was given to Employee. The obligation of the Company under this

 4
 

 

subsection (ii) shall be limited to the extent that
Employee obtains any such benefits pursuant to a subsequent employee’s benefit
plans, in which case the Company may reduce the coverage of any benefit it is
required to provide Employee under this subsection (ii) as long as the
aggregate coverage of the combined benefit plans is no less favorable to
Employee, in terms of amounts and deductibles and costs to Employee, than the
coverage required to be provided under this subsection (ii) as long as the
aggregate coverage of the combined benefit plans is no less favorable to
Employee, in terms of amounts and deductibles and costs to Employee, than the
coverage required to be provided under this subsection (ii). This subsection
(ii) shall not be interpreted so as to limit any benefits to which Employee (or
Employee’s dependents or beneficiaries) are entitled under any of the Company’s
employee benefit plans, programs or practices following Employee’s date of
termination of employment. The provision of continued benefits to Employee
under this subsection (ii) shall not deprive Employee of any independent
statutory right to continue benefits coverage pursuant to Sections 601 through
606 of the Employee Retirement Income Security Act of 1974, as amended; and

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

iv)                                  In
the event the Employee is employed under any employment agreement with the
Company which also provides for severance payments upon termination of Employee’s
employment under certain circumstances, and if Employee is entitled to receive
severance payments and/or benefits thereunder, then the severance payments
and/or benefits provided hereunder shall be reduced on a dollar-for-dollar
basis by the severance payments and/or benefits provided under the employment
agreement; it being the intention of the parties hereto that the Employee shall
only be entitled to receive “one” set of severance payments and benefits under
any circumstances.

(c)                                  Notwithstanding
anything in this Agreement or elsewhere to the contrary:

 5
 

 

(a)           If
payment or provision of any amount or other benefit that is “deferred
compensation” subject to Section 409A of the Code at the time otherwise
specified in this Agreement or elsewhere would subject such amount or benefit
to additional tax pursuant to Section 409A(a)(1)(B) of the Code, and if payment
or provision thereof at a later date would avoid any such additional tax, then
the payment or provision thereof shall be postponed to the earliest date on
which such amount or benefit can be paid or provided without incurring any such
additional tax.  In the event this
Section 2 requires a deferral of any payment, such payment shall be accumulated
and paid in a single lump sum on such earliest date together with interest for
the period of delay, compounded annually, equal to the prime rate (as published
in The Wall Street Journal), and in effect as of the date the payment should
otherwise have been provided.

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

3.                                       Acceleration
of Options. In the event the Employee is entitled to severance benefits
following the occurrence of a Change in Control, all of Employee’s rights to
exercise option(s) granted under Company’s stock option plan and held by
Employee at the time of the Change in Control shall immediately vest resulting
in these option(s) becoming immediately exerciseable for the period specified
in the section of the respective option(s) relating to vesting of options in
the event of termination of employment, or, if no period is so specified, then
for six (6) months, after which time the option(s) shall expire.

4.                                       Term
of Agreement (the “Term”). This Agreement shall continue in full force and
effect until terminated as provided in this section. This Agreement shall
terminate on the earlier of:

a)                                      the
April 1st of any year after 2007, if the Board by the affirmative vote of a majority
of its members prior to January 1 of such year and prior to the occurrence or
active consideration of a specific Change in Control has voted to terminate
this Agreement; or

b)                                     if
Employee’s services are terminated more than 90 days prior to the occurrence of
a Change in Control or after the first anniversary of a Change in Control, the
date of such termination of services; or

c)                                      if
Employee’s services are terminated upon or within the first year following a
Change in Control under circumstances where Employee would not be entitled to
severance benefits pursuant to this Agreement, the date of such termination of
services; or

 6
 

 

d)                                     after
a Change in Control, the date on which any successor to the Company has
performed all of its obligations under Section 2 of this Agreement and Employee
has performed all of Employee’s obligations under Section 5 of this Agreement.

5.                                       Agreement
not to Compete and not to Solicit.

a)              In further
consideration of the compensation to be paid to Employee hereunder, Executive
acknowledges that during the course of his employment with the Company he has
become familiar with the Company’s trade secrets and with other Confidential
Information (as defined herein) concerning the Company and that his services
have been and shall be of special, unique and extraordinary value to the
Company, and therefore, Employee agrees that, during the period of his
employment with the Company and for a period of eighteen (18) months thereafter
(the “Noncompete Period”), he shall not, without the Company’s prior written
consent, directly or indirectly, own, manage, operate, join, control or
participate in the ownership, management, operation or control of, or be
connected as a director, officer, employee, partner, consultant or otherwise
with, any business or organization in the United States, Canada or Mexico that
sells or markets golf equipment, apparel, accessories or services directly to
consumers, whether through retail or direct marketing channels, including, but
not limited to catalogs and the internet (a “Competitive Business”); provided,
however, that nothing herein shall prohibit Employee from (i) being a passive
owner of not more than 2% of the outstanding stock of any class of a
corporation which is publicly traded, so long as Executive has no active
participation in the business of such corporation; or (ii) becoming involved
with a business or organization for which activities comprising a Competitive
Business do not represent  more than $10
million in revenues or more than 10% of such business or organization’s total
revenues. If, at the time of enforcement of this paragraph 5, a court shall
hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum
period, scope and area permitted by law. 
Employee acknowledges that the restrictions contained in this paragraph
5 are reasonable and that he has reviewed the provisions of this Agreement with
his legal counsel

b)             During the period of Employee’s employment with the Company and for a
period of two (2) years thereafter (the “Non-Solicit Period”), Employee shall
not directly or indirectly through another person or entity (i) induce or
attempt to induce any employee of the Company to leave the employ of the
Company, or in any way interfere with the relationship between the Company and
any employee thereof, (ii) hire any person who was an employee of the Company
at any time during the period of Employee’s employment with the Company or
(iii) induce or attempt to induce any customer, supplier, licensee, licensor,
franchisee or other business relation of the Company to cease doing business
with the Company, or in any way interfere with the relationship between any
such customer, supplier, licensee or business relation and

 7
 

 

the Company (including, without limitation, making
any negative or disparaging statements or communications regarding the
Company).

c)              In the event of the breach or a threatened breach by Employee of any of
the provisions of this paragraph 5, the Company would suffer irreparable harm,
and in addition and supplementary to other rights and remedies existing in its
favor, the Company shall be entitled to specific performance and/or injunctive
or other equitable relief from a court of competent jurisdiction in order to
enforce or prevent any violations of the provisions hereof (without posting a
bond or other security).  In addition, in
the event of an alleged breach or violation by Employee of this paragraph 5,
the Noncompete Period and the Non-Solicit Period shall be tolled until such
breach or violation has been duly cured.

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

7.                                       Remedies.
Employee agrees and understands that any breach of any of the covenants or
agreements set forth in Sections 5 or 6 of this Agreement will cause the
Company irreparable harm for which there is no adequate remedy at law, and,
without limiting whatever other rights and remedies the Company may have under
this Agreement, Employee consents to the issuance of an injunction in favor of
the Company enjoining the breach of any of the aforesaid covenants or
agreements by any court of competent jurisdiction. If any or all of the
aforesaid covenants or agreements are held to be unenforceable because of the
scope or duration of such covenant or agreement, the parties agree that the
court making such determination shall have the power to reduce or modify the
scope and/or duration of such covenant to the extent that allows the maximum
scope and/or duration permitted by applicable law.

8.                                       Successors.
This Agreement shall bind, and may be enforced by, any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company, in the same manner
and to the same extent that the Company would be obligated under or entitled to
enforce this Agreement if no

 8
 

 

succession had taken place. In the case of any Transaction in which a
successor would not by the foregoing provision or by operation of law be bound
by this Agreement, the Company shall use its best efforts to require such
successor expressly and unconditionally to assume and agree to perform the
Company’s obligations under this Agreement, in the same manner and to the same
extent that the Company would be required to perform if no such succession had
taken place unless the Company previously arranged to establish an escrow to
satisfy its obligations hereunder.

9.                                       Entire
Agreement. This Agreement contains the entire understanding of the parties
hereto in respect of the subject matter hereof and supersedes all prior
agreements and understandings between the parties with respect to such subject
matter; provided, that the parties acknowledge that they have also entered into
an employment agreement of even date herewith which also provides for severance
payments and/or benefits upon termination of Employee’s employment for certain
circumstances and that pursuant to Section 2(b)(iv) of this Agreement, the
severance payments and/or benefits provided hereunder shall be reduced on a
dollar for dollar basis by the severance payments and/or benefits provided
under such Employment Agreement, it being the intention of the parties hereto
that they Employee shall only be entitled to receive “one” set of severance
payments and benefits under any circumstances.

10.                                 Assignment.
This Agreement shall not be assignable by Employee. Any and all assignments of
this Agreement or any interest therein not made in accordance with this
paragraph shall be void.

11.                                 No
Waiver. Any waiver of any term or condition of this Agreement by either
party shall not operate as a waiver of any continued breach of such term or
condition, or any other term or condition, nor shall any failure to enforce a
provision of this Agreement operate as a waiver of such provision or of any
other provision of this Agreement.

12.                                 Captions.
The captions and headings of this Agreement are for convenience only and shall
in no way limit or otherwise effect any of the terms or provisions contained
herein.

13.                                 Severability.
Should any provision of this Agreement, or its application, to any extent by held
invalid or unenforceable, the remainder of this Agreement and its application,
excluding such invalid or unenforceable provisions shall not be affected by
such exclusion and shall continue valid and enforceable to the fullest extent
permitted by law or equity.

14.                                 Governing
Law. This Agreement shall for all purposes be governed and interpreted in
accordance with the laws of the State of Minnesota, without regard to its
principles of conflicts of laws.

15.                                 Arbitration.
The Company and Employee agree that any claim or controversy that arises out of
or relates to this Agreement, or the breach of it by either party, will be
settled by arbitration in the City of Minneapolis, Minnesota, in accordance
with the rules then obtaining of the American Arbitration Association, and the
award rendered pursuant to

 9
 

 

such arbitration shall be final, binding and conclusive as to the
Company and Employee, and judgment upon such award may be entered without
notice and enforced in any court having jurisdiction. Costs of arbitration
(excluding the costs of each party’s own counsel or advisors) shall be borne
equally by the Company and Employee. Notwithstanding the foregoing, the Company
shall have the right to submit any claim against Employee arising out of any
provision of Section 5 and 6 hereof to any court of competent jurisdiction in
Hennepin County, Minnesota, in lieu of seeking arbitration pursuant to this
Section.

16.                                 Termination
of 1997 Retention Agreement. Effective the date of this Agreement, the 1997
Retention Agreement shall terminate and be of no further force and effect, and
shall be superseded and replaced in its entirety by this Agreement.

Each of the
parties hereto have executed this Agreement in the manner appropriate to each,
all as of the date first above written.

	
  GOLF GALAXY, INC.

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ GREGORY B. MAANUM

  	
   

  	
  /s/ RANDALL K. ZANATTA

  
	
  Its:

  	
  Chief Operating Officer

  	
   

  	
  Randall K. Zanatta

  

 

 10

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