Document:

EXHIBIT 10.2  

RETENTION AGREEMENT  

	DATE:	 	December 31, 1997	 	 
	
PARTIES:	
 	

Golf Galaxy, Inc.

7850 Dupont Avenue South

Bloomington, MN 55420	
 	

("Company")
	

 	
 	

Greg Maanum

8040 Acorn Lane

Chanhassen, Minnesota 55317	
 	

("Employee")

RECITALS:  

	A.
	Employee
is employed by the Company.

	B.
	Although
the Company presently anticipates no change in control, the Board of Directors wishes to plan for such a possibility and to ensure Employee's continued dedication and efforts
in such event without undue concern for personal financial and employment security.

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

AGREEMENTS:  

        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:

	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; 

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	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 currently owning more than five percent of the Company's securities 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 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. 

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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)
	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.

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

	e)
	The  Severance Period is the six-month period beginning on the date of termination of Employee's employment.

	f)
	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. 

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	2.
	Severance.

	a)
	Employee
shall be entitled to receive from the Company severance benefits in the amount provided in subsection b. below, if in connection with a Change in Control or 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 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 

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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)
	On
the date of termination of employment, the Company shall pay Employee an amount equal to the bonus(es), if any, Employee would have received had Employee remained in
the Company's employment during the Severance Period, calculated using the targeted bonus rate established by the Company under any applicable employment agreement or in its bonus plan then in effect
(or, if no rate was established for the period in question, the targeted bonus rate established for the prior period) and assuming that all performance criteria would have been met, provided, however,
that if the targeted bonus rate is based on performance over a period of time which ends after the Severance Period, then the amount paid to Employee under this subsection (iii) shall be
prorated based on the number of days Employee was employed by the Company during the applicable bonus period plus the number of days in the Severance Period.

	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.

	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 months, after which time the option(s) shall expire.

	4.
	Term of Agreement.    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
August 31st of a year after 1998, if the Board by the affirmative vote of a majority of its members prior to June 1 of such year and prior to the occurrence or 

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active
consideration of a specific Change in Control has voted to terminate this Agreement; or 

	b)
	if
Employee's services are terminated 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

	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.    In consideration of the severance and other benefits granted to Employee hereunder, Employee
agrees that during the period of Employee's employment with the Company and for the six-month period immediately following termination of the Employee's employment with the Company for any
reason, Employee shall not, directly or indirectly, on his own account or in the service of any other person, firm, corporation or other entity, become involved as an employee, partner, director,
officer, principal, agent, consultant or in any other relationship or capacity with any person, firm, corporation or other entity engaged in any business of the type being conducted or rendered by the
Company on the date of the termination of Employee's employment. Employee further agrees that during the period of his employment with the Company and for the six-month period immediately
following termination of such employment for any reason, Employee shall not, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity aid or endeavor to
solicit or induce any of the employees of the Company or its affiliates to leave their employment in order to accept employment elsewhere.

	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 

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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 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. 

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	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.

	15.
	Arbitration.    The Company and Executive 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 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 Section 5 and 6 hereof to any court of competent jurisdiction in Hennepin
County, Minnesota, in lieu of seeking arbitration pursuant to this Section. 

        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/ RANDY ZANATTA
	
 	

/s/ GREG MAANUM

	Its:	 	President
	 	Greg Maanum

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EXHIBIT 10.3  

 
 

EMPLOYMENT AGREEMENT    
    

        THIS AGREEMENT, made and entered into as of this 31st day of December, 1997, by and between Golf
Galaxy, Inc. (the "Company") and Randy Zanatta (the "Executive"). 

 
 

W I T N E S S E T H :    

        WHEREAS, the Company desires to retain the services of the Executive in the capacity of President and Chief Executive Officer and the
Executive hereby accepts and agrees to such employment, subject to the supervision of the Board of Directors of the Company (the "Board") and the further terms and conditions set forth herein. 

        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 the
Executive as President and Chief Executive Officer or in such other capacity as
may be determined from time to time by the Board, and the 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.    In exchange for the provision of services, the Executive shall receive an annual salary in the
amount of One Hundred Forty Thousand Dollars ($140,000) (the "Salary") payable on a pro rata, bi-weekly basis, The Salary shall be reviewed by the Board on the first business day of each
fiscal year occurring during the Term (the "Review Date"), the first such review to take place on March 1, 1999 and the Board may (but shall not be obligated to) increase or decrease said
salary as of the Review Date by such amount as the Board deems appropriate. 

        2.2    BENEFITS.    Except as the Board may otherwise provide, Executive shall be entitled to participate in any
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. 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. 

1

 

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

        2.4    VACATION.    Executive shall be entitled to fifteen (15) days paid vacation per year, which shall be
prorated during any partial year during the Term. 

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

 
 

ARTICLE III.
  DUTIES OF EXECUTIVE    
    

        3.1    SERVICES; DUTIES.    Executive shall have the normal duties, responsibilities and authority of a President and
Chief Executive Officer, subject to the power of the Board to expand or limit such duties, responsibilities and authority. The Executive shall devote Executive's full time and effort to the business
of the Company. The Executive shall perform the duties and obligations required of the 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 materials, records, data and information not generally available to the public regarding the Company, its customers and affiliates (collectively "Confidential
Information"). Accordingly, during and subsequent to the termination of this Agreement, Executive shall hold in confidence and not directly or indirectly disclose, use, copy or make lists of any
Confidential Information, except to the extent authorized in writing by the Company, or as required by law or any competent administrative agency or as otherwise is reasonably necessary or appropriate
in connection with the performance by Executive of his duties pursuant to this Agreement. Upon termination of Executive's employment under this Agreement, Executive shall promptly deliver to the
Company (i) all records, manuals, books, documents, client lists, letters, reports, data, tables, calculations and all copies of any of the foregoing which are the property of the Company or
which relate in any way to the business or practices of the Company, and (ii) all other property of the Company and Confidential Information which in any of these cases are in his possession or
under his control. 

        3.3    NON-COMPETITION AND NON-INDUCEMENT.    In consideration of the compensation payable to
Executive hereunder, Executive agrees that during the period of Executive's employment with the Company and for the six-month period immediately following termination of Executive's
employment with the Company for any reason, Executive shall not, directly or indirectly, on his own account or in the service of any other person, firm, corporation or other entity, become involved as
an employee, partner, director, officer, principal, agent, consultant or in any other relationship or capacity with any person, firm, corporation or other entity engaged in any business of the type
being conducted or rendered by the Company on the date of the termination of Executive's employment. Executive further agrees that during the 

2

 

period
of his employment with the Company and for the six-month period immediately following termination of such employment for any reason, Executive shall not, directly or indirectly,
individually or on behalf of any other person, firm, corporation or other entity aid or endeavor to solicit or induce any of the employees of the Company or its affiliates to leave their employment in
order to accept employment elsewhere. 

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

        3.5    SURVIVAL.    The obligations of this Article III shall survive the expiration or termination of this
Agreement. 

 
 

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 the Executive upon the occurrence of any of the following events (which events shall constitute "Cause" for termination): 

        (a)   The
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)   The
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)   The
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. 

3

 

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

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

        (f)    The
Executive shall become disabled during the Term (the Executive shall be deemed to be disabled if the Executive is eligible to receive disability benefits under any
long-term disability plan the Company may then have in effect, or, if no such plan is then in effect, the 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)   The
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 the Executive is terminated pursuant to this Section 4.1, such termination shall be effective upon the delivery of notice thereof to the
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", the 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 the 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), the 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, the Employee 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 

4

 

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

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

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

        4.4    TERMINATION BY EXECUTIVE.    The Executive shall have the right to terminate his employment under this
Agreement for any reason. In the event of termination by the Executive for any reason not constituting a termination for "Good Reason" (as defined above), the 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 the Executive terminates the 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-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 subsection (ii) 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 subsection (ii) shall be united
to the extent that Executive obtains any such benefits pursuant to a subsequent Executive's benefit plans, 

5

 

in
which case the Company may reduce the coverage of any benefit it is required to provide Executive under this subsection (ii) 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 subsection (ii) 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 subsection
(ii). This subsection (ii) 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 subsection (ii) shall not deprive Executive of any independent statutory right to continue benefits coverage pursuant to Sections 601 through 606 of the Executive
Retirement Income Security Act of 1974, as amended; and 

        (c)   On
the date of termination of employment, the Company shall pay Executive an amount equal to the bonus(es), if any, Executive would have received had Executive remained
in the Company's employment during the Severance Period, calculated using the targeted bonus rate established by the Company under any applicable employment agreement or in its bonus plan then in
effect (or, of no rate was established for the period in question, the targeted bonus rate established for the prior period) and assuming that all performance criteria would have been met, provided,
however, that if the targeted bonus rate is based on performance over a period' of time which ends after the Severance Period, then the amount paid to Executive under this subsection
(iii) shall be prorated based on the number of days Executive was employed by the Company during the applicable bonus period plus the number of days in the Severance Period. 

        (d)   In
the event the 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
the Executive upon termination of employment 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 months, after which time the option(s) shall expire. 

        4.6    SURVIVING RIGHTS.    Notwithstanding the termination of the 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 that arises out of or relates to
this Agreement, or the breach of it by either party, will 

6

 

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

 
 

ARTICLE VI.
  GENERAL PROVISIONS    
    

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

	

(a)	
 	

If to the Company, to:	
 	

Golf Galaxy, Inc.

7850 Dupont Avenue South

Bloomington, MN 55420

ATTN: Executive Vice President
	

(b)	
 	

If to the Executive, to:	
 	

Randy Zanatta

4721 White Oak Court

Eagan, Minnesota 55122

        6.2    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. 

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

7

 

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

        6.5    GOVERNING LAW.    This Agreement shall be construed and enforced in accordance with the laws of the State of
Minnesota. 

        6.6    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. 

        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/ GREG MAANUM

	

 	
 	

Its:	
 	

Executive V.P.

	

 	
 	

EXECUTIVE:
	

 	
 	

/s/ RANDY ZANATTA
 Randy Zanatta

8

QuickLinks

EMPLOYMENT AGREEMENT

W I T N E S S E T H

ARTICLE I. EMPLOYMENT AND TERM

ARTICLE II. COMPENSATION

ARTICLE III. DUTIES OF EXECUTIVE

ARTICLE IV. TERMINATION

ARTICLE V. SETTLEMENT BY ARBITRATION

ARTICLE VI. GENERAL PROVISIONS

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