Document:

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                                   EXHIBIT "A"

                                                                    EXHIBIT 10.2

Confidential Treatment has been requested with respect to portions of the
agreement indicated with an asterisk [*]. A complete copy of this agreement,
including the redacted terms, has been separately filed with the Securities and
Exchange Commission.

                                                                  EXECUTION COPY

                        License and E-Commerce Agreement

     This License and E-Commerce Agreement (the "Agreement"), is entered into as
of July 6, 2001 (the "Effective Date"), by and between The Sports Authority,
Inc., a Delaware corporation ("TSA"), The Sports Authority Michigan, Inc., a
Michigan corporation ("TSAMI"), and Global Sports Interactive, Inc., a
Pennsylvania corporation ("GSI" or "Licensee"), and solely for purposes of
Section 2.6 [*], Global Sports, Inc. ("Global Sports"). TSA and TSAMI are
sometimes collectively referred to as the "Licensor".

                                    Recitals

     WHEREAS, Licensee is in the business of developing and operating e-commerce
sporting goods businesses for specialty retailers, general merchandisers,
Internet companies and media companies and providing for those companies
Licensee's proprietary technology and product database, Web site design and
development capabilities, order processing capabilities, customer service
capabilities, fulfillment capabilities, centralized inventory management, and
on-line marketing to enable those companies to offer e-commerce to their
customers;

     WHEREAS, Licensor and its retailing subsidiaries are in the business of
selling Sporting Goods (as hereinafter defined) and other related goods and
services through the TSA Stores (as hereinafter defined);

     WHEREAS, through TheSportsAuthority.com, Inc., a subsidiary of Licensee
owned in part by TSA (the "Joint Venture"), Licensee operated the TSA.com Site
(as defined below) on behalf of Licensor, including offering and selling
Sporting Goods, and providing inventory management, Web Site design and
development services, hosting, maintenance and operations services and support,
order processing, fulfillment and returns services and support, customer
service, on-line marketing and other related services and support;

     WHEREAS, Licensor and Licensee recently restructured their relationship to
terminate the Joint Venture. Licensee shall continue to provide the services and
support necessary to operate the TSA.com Site but shall provide such services
and support directly on behalf of Licensor rather than through the Joint
Venture;

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     WHEREAS, Licensor desires to continue to extend certain of its lines of
retail distribution through the TSA.com Site;

     WHEREAS, Licensor has made a substantial investment to establish its trade
name, trademarks, service marks, trade dress and goodwill among consumers and
suppliers so as to create a retail identity connoting a specific manner in which
merchandise is presented and sold through the TSA Stores;

     WHEREAS, both Licensor and Licensee recognize that the protection of
Licensor's trade name, trademarks, service marks, trade dress and goodwill, as
well as the overall success of the TSA.com Site, depends in part upon consumers
perceiving the TSA.com Site to continue to be an extension of the TSA Stores
that is as consistent as possible with those stores with respect to merchandise
quality, availability, pricing, terms of sale and other aspects of the retail
purchasing experience;

     WHEREAS, Licensor and Licensee expect that the TSA.com Site will continue
to complement the TSA Stores, enhancing Licensor's competitive position relative
to other sellers of the same or similar merchandise by offering to Licensor's
customers an on-line shopping experience in addition to Licensor's in-store
shopping experience; and

     WHEREAS, Licensor and Licensee desire to have Licensee continue to
provide to Licensor a full e-commerce solution that will be, except as otherwise
provided herein, the exclusive means by which Licensor will sell Sporting Goods
through the Internet (as defined below) during the Term (as defined below) of
this Agreement.

     NOW, THEREFORE, in consideration of the promises contained herein, TSA,
TSAMI and GSI, intending to be legally bound, agree as follows:

Section 1.  Definitions

Whenever used in this Agreement, the following capitalized terms shall have the
following specified meanings:

1.1  "Advertising and Marketing Partner(s) of Licensee" means members of
Licensee's affiliate programs, search engines, portals, community sites, content
sites, on-line retailers, shopping, regional and industry directories, push
sites, and any other Internet sites engaged by Licensee to attract Customers to
the TSA.com Site, with whom Licensee contracts for exchanges of advertising and
promotional services and/or any form of compensation.

1.2  "Affiliate(s)" means, as to any Person, any other Person that directly or
indirectly controls (through one or more intermediaries), is controlled by or is
under common control with such Person, but only as long as such control exists.
For purposes of this Section "control" means the ownership or control of fifty
percent (50%) or more of all of the voting power of the shares (or other
securities or rights) in question or the power to direct or cause the direction
of

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management or policies of such Person, whether through voting securities, by
contract or otherwise.

1.3  "Business Day" means any day which is not a Saturday, Sunday or official
federal holiday in the United States.

1.4  "Confidential Information" means all nonpublic information relating to a
Party or its Affiliates that is designated as confidential or that, given the
nature of the information or the circumstances surrounding its disclosure,
reasonably should be considered as confidential. Confidential Information
includes (a) all nonpublic information relating to a Party's or its Affiliates'
product plans, designs, product costs, product prices, other costs, allowances,
rebates, assortment plans, advertising plans, strategies or buys, marketing
plans or strategies, technology, business plans, promotional and marketing
activities, finances, strategic business opportunities, personnel, research,
development, know-how and other business and financial affairs, (b) all third
party information that a Party or its Affiliates is obligated to keep
confidential, (c) all information obtained by a Party in connection with any
audit conducted hereunder, and (d) all information of the type specifically
designated as such in this Agreement. Confidential Information may be contained
in tangible materials, such as drawings, data, specifications, reports and
computer programs, or may be in the nature of unwritten knowledge. Confidential
Information does not include any information that (i) has become publicly
available without breach of this Agreement, (ii) can be shown by documentation
to have been known to the receiving Party at the time of its receipt from the
disclosing Party or its Affiliates, (iii) is received from a third party who did
not acquire or disclose such information by a wrongful or tortious act, or (iv)
can be shown by documentation to have been independently developed by the
receiving Party without reference to any Confidential Information.

1.5  "Customer" means a Person who accesses the TSA.com Site in any manner,
whether or not a purchase is made or other Services or Sporting Goods are
received from, by or through the TSA.com Site.

1.6  "Customer Information" means any and all identifying information collected
or possessed by Licensee and relating to Customers of the TSA.com Site ,
including information relating to Customers referred by or through the
Advertising and Marketing Partners of Licensee to the TSA.com Site. Such data
may include names and other identifying information such as addresses, phone
numbers and e-mail addresses, credit card numbers and related data, preferences,
gift and shipping information, purchase, payment and connection histories,
correspondence, inquiries, and the skus and quantities of items purchased by any
such persons. "Customer Information" shall not include (i) Financial
Information, or (ii) any information obtained by Licensee from Customers
independent of the transactions contemplated pursuant to this Agreement or the
prior agreements referenced Section 19.12.

1.7  "Databases" means all data structures, data schema, database dictionaries,
attributes, validation tests for each element, table sizes and formats, access
requirements, data dependencies and other elements involving the management or
storage of data on or for the TSA.com Site, and all refinements, updates,
releases, improvements and enhancements thereto, all Intellectual

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Property Rights embedded therein (except those owned by Licensor) and all
software applications created specifically for management and use of the GSI
Furnished Materials, Customer Information, Financial Information and Licensed
Property, but excluding the Customer Information, Financial Information and
Licensed Property per se.

1.8   "Designated URL" means the URL http://www.thesportsauthority.com, or any
successor or replacement URL, as mutually designated by the Parties.

1.9   "Financial Information" means all information relating to the financial
performance and/or operations of the TSA.com Site which is not specific to a
Customer, does not refer to or identify any specific Customer, and cannot be
used, alone or in conjunction with other information, to identify any specific
Customer.

1.10  "Fiscal Year" means Licensee's fiscal year. Licensee shall give at least
ninety (90) days prior notice to Licensor of any change in designation of
Licensee's Fiscal Year.

1.11  "GSI Content" means any and all content or information owned or controlled
(e.g., by license other than this Agreement, or otherwise) by Licensee or any of
its Affiliates, including, text, graphics, photographs, video and audio,
together with all Intellectual Property Rights associated therewith, and
furnished by Licensee or any of its Affiliates in connection with the TSA.com
Site or otherwise in connection with the performance of its obligations under
this Agreement. "GSI Content" includes any adaptation, modification, improvement
and/or derivative work of any GSI Content that is developed by any Party or
jointly by the Parties. "GSI Content" shall not include any Licensed Property or
any derivative work of any Licensed Property whether developed by any Party or
jointly by the Parties.

1.12  "GSI Furnished Materials" means any and all GSI Content, Databases of GSI
and GSI Technology, together with all Intellectual Property Rights associated
therewith, that (a) is owned or controlled (e.g. by license other than this
Agreement, or otherwise) by Licensee or any of its Affiliates, and (b) is made
available by Licensee of any of its Affiliates in connection with the
transactions contemplated hereunder. "GSI Furnished Materials" includes any
adaptation, modification, improvement and/or derivative work of any GSI
Furnished Materials that is developed by any Party or jointly by the Parties.
"GSI Furnished Materials" shall not include any Licensed Property or any
derivative work of any Licensed Property whether developed by any Party or
jointly by the Parties.

1.13  "GSI Partners" means any third party, including any TSA Competitor, with
which Licensee or any its Affiliates contracts to develop and operate all or a
substantial portion of such third party's Web Site for e-commerce businesses in
the field of Sporting Goods. By way of example, as of the Effective Date, such
GSI Partners include [*] The specific GSI Partners shall be subject to change
from time to time throughout the Term.

1.14  "GSI Technology" means all HTML, Java and other language files (and/or all
derivatives thereof), graphics files, animation files, data files, Databases,
technology, method, user interface, process, software, functionality, features,
scripts and programs, both in object and source code

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form, and all documentation and all other information and materials relating
thereto, together with all Intellectual Property Rights associated therewith,
used by or on behalf of Licensee in the design, development, hosting,
maintenance and operation of the TSA.com Site or otherwise made available to
Licensor hereunder. "GSI Technology" includes any adaptation, modification,
improvement and/or derivative work of any GSI Technology that is developed by
any Party or jointly by the Parties. "GSI Technology" shall not include any
Licensed Property or any derivative work of any Licensed Property, whether
developed by any Party or jointly by the Parties.

1.15  "GSI Venture" or "GSI Ventures" means any Person engaged in the sale of
goods over the Internet, including (i) Licensee or any of its Affiliates, or
(ii) any Person in which Licensee or any of its Affiliates owns or controls
fifty percent (50%) or more of the voting power of the capital stock (or other
securities or rights) or the power to direct or cause the direction of
management or policies of such Person, whether through voting securities, by
contract or otherwise; provided such Person directly or indirectly generates in
excess of twenty (20%) percent of its revenues from the sale of Sporting Goods.

1.16  "Intellectual Property Rights" means any and all now or hereafter known
tangible and intangible (a) rights associated with works of authorship
throughout the universe, including copyrights or works of copyright, moral
rights, and mask-works, (b) trademark, trade dress, service mark and trade name
rights and similar rights, (c) trade secret rights, (d) patents, designs,
algorithms and other industrial property rights, (e) all other intellectual and
industrial property rights of every kind and nature throughout the universe and
however designated (including domain names, logos, "rental" rights and rights to
remuneration), whether arising by operation of law, contract, license, or
otherwise, and (f) all registrations, initial applications, renewals,
extensions, continuations, divisions or reissues thereof now or hereafter in
force (including any derivative rights in any of the foregoing).

1.17  "Internet" means the global network of interconnected computer networks,
each using the Transmission Control Protocol/Internet Protocol and/or such other
standard network interconnection protocols as may be adopted from time to time,
which is used to transmit content that is directly or indirectly delivered to a
computer or other digital electronic device for display to an end-user accessing
a URL, whether such content is delivered through on-line browsers, off-line
browsers, or through "push" technology, electronic mail, broadband distribution,
satellite, wireless or other successor technologies.

1.18  "Land Based Stores Gift Certificates" means gift certificates,
pre-programmed gift cards, and other successor forms of gift certificates or
cards, bearing the marks THE SPORTS AUTHORITY and/or THE SPORTS AUTHORITY &
Design, in fixed denominations, printed and distributed by Licensor and which
are redeemable only in the TSA Stores and not through the TSA.com Site.

1.19  "Licensed Property" means the Marks, Names, TSA Content and the Look and
Feel, together will all Intellectual Property Rights associated therewith, which
Licensor has licensed to Licensee hereunder. "Licensed Property" includes any
adaptation, modification, improvement

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and/or derivative work of any Licensed Property that is developed by any Party
or jointly by the Parties. "Licensed Property" does not include any GSI
Furnished Materials or any derivative work of any GSI Furnished Materials,
whether developed by any Party or jointly by the Parties.

1.20  "License Guidelines" means the clearance, form, format and use
restrictions and instructions set forth in Exhibit A attached hereto.
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1.21  "Look and Feel" means, either with respect to the TSA.com Site or the TSA
Stores, as the case may be, the appearance, coloring, graphics, fonts, and other
look and feel characteristics of the TSA.com Site or TSA Stores, as the case may
be, which are unique to the TSA.com Site or TSA Stores, as the case may be, and
are generally consistent across all media and applications, and which suggest a
common identity for the TSA.com Site or the TSA Stores, as the case may be.

1.22  "Marks" shall mean the mark THE SPORTS AUTHORITY in English in block
letters and any equivalent in foreign language characters, certain THE SPORTS
AUTHORITY logotypes, and such other trademarks and service marks of Licensor,
which are proprietary to Licensor, all as more specifically described in Exhibit
                                                                         -------
B attached hereto and incorporated herein, as Exhibit B may be modified from
-                                             ---------
time to time in writing by Licensor as set forth in Section 2.1(b), together
with all associated Intellectual Property Rights, including trademark and
service mark applications and registrations therefor.

1.23  "Materials" shall mean exterior and interior signs, billboards, flags,
banners, buttons, Web pages or portions of Web pages, frames, links, icons,
packaging, labels, print, electronic and broadcast advertising and promotional
media, indexes and pages on Websites (whether visible or not to the general
public), meta-tags, manuals, brochures, flyers, posters, sales literature,
business forms, gift certificates, credit cards, debit cards, membership or
consumer loyalty or gift program cards and related materials, stationery,
employee uniforms, badges, merchandise bags and boxes, baskets, trolleys and
carts, sales receipts and charge slips, tickets and tags, business forms and
stationery, and the like, to the extent that such materials bear any of the
Marks and to the extent such materials are developed, controlled or authorized
by Licensee (or with respect to the Core Marks, by the Advertising and Marketing
Partners of Licensee) for use on or in connection with furnishing the Services,
Sporting Goods, advertising or promoting the TSA.com Site, or otherwise in the
operation of the TSA.com Site.

1.24  "Names" means those Internet domain names registered in the name of either
TSAMI or TSA, or both, together with any additions as may be provided to
Licensee from time to time in writing by Licensor, or any deletions as mutually
agreed upon by the Parties, all as set forth in Exhibit C, attached hereto.
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1.25  "Net Revenue(s)" means the total sales revenues received for Sporting
Goods and Services sold or furnished by or through the TSA.com Site (including
Orders placed through the customer service telephone number applicable to the
TSA.com Site), and any proxy sites or sublicensed sites of the TSA.com Site
operated by any Advertising and Marketing Partners of Licensee, whether for cash
or credit, except that the following shall be excluded in calculating

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Net Revenues: (i) sales of Sporting Goods or Services subsequently returned for
refund or credit; (ii) sales tax, value added tax, goods and services tax,
consumption tax and any other applicable taxes imposed by governments, excluding
any withholding taxes, which are required to be paid by Licensor with respect to
the Royalties, if any; (iii) sales of Land Based Stores Gift Certificates; (iv)
charges for any fulfillment-related services such as shipping, handling, gift
wrapping, delivery and assembly; (v) credit card chargebacks; (vi) credits for
coupons, discount codes or similar non-cash discounts; (vii) amounts received
from Advertising and Marketing Partners for Services pursuant to Section 1.33(b)
or otherwise; and (viii) any amounts received from any Person for the purpose of
advertising or marketing such Person or such Person's products. For the purposes
of calculating Net Revenue with respect to On-Line Gift Certificates, the
applicable royalty shall be payable upon the redemption of On-Line Gift
Certificates rather than upon the initial sale of such On-Line Gift Certificate.

1.26  "Non-Shopping Features" means such content and information on the TSA.com
Site, provided by or through Licensor, that contain or make accessible as part
of the TSA.com Site such information as the following: TSA corporate information
(e.g., historic background, mission statement, names of officers and directors),
store locator, TSA public financial information (e.g., SEC filings, annual
reports, etc.), TSA's press releases (but not Licensee's press releases, unless
Licensor has reviewed and approved the same), community programs, employment
opportunities in TSA Stores or corporate positions, frequently asked questions
(concerning the TSA Stores and not the TSA.com Site), a "contact us" section
relating to the TSA Stores, and any other information which serves to inform
Customers about the TSA Stores, all as set forth in greater detail in Exhibit D
                                                                      ---------
attached hereto.

1.27  "On-Line Gift Certificates" means gift certificates, pre-programmed cards,
and other successor forms of gift certificates or gift cards, bearing the marks
THE SPORTS AUTHORITY, THE SPORTS AUTHORITY & Design, THESPORTSAUTHORITY.COM,
and/or THESPORTSAUTHORITY.COM & Design, in fixed denominations, printed and
distributed by Licensee and which are redeemable only through the TSA.com Site
and not through the TSA Stores.

1.28  "Order" means an order to purchase Sporting Goods or Services.

1.29  "Party" means Licensor or Licensee; "Parties" shall mean both of them.

1.30  "Person" means, whether or not capitalized, any individual, corporation
(including any non-profit corporation), general or limited partnership, limited
liability company, joint venture, estate, trust, association, organization,
labor union, or other entity or governmental body.

1.31  "Private Label Merchandise" means any Sporting Goods offered and sold
under any trademarks owned by Licensor, whether or not such trademarks have been
registered in Licensor's name.

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1.32  "Royalties" means the compensation for use of the Licensed Property due
and payable from Licensee to Licensor hereunder, as set forth in greater detail
in Exhibit E and pursuant to Section 11.2. Royalties shall accrue at the time
   ---------
when any Order is shipped to a Customer.

1.33  "Services" means those services: (a) offered by Licensee to Customers at
or through the TSA.com Site, including, without limitation, retail store
services in the field of Sporting Goods, as well as, to the extent Licensee
chooses to offer in its sole discretion, Sporting Goods assembly, warranty
programs, repair and maintenance, racquet stringing, layaway, customer loyalty
and gift card programs, and like services; and (b) those advertising and
promotional services furnished by Licensee directly or by or through Advertising
and Marketing Partners of Licensee, including, without limitation, services
intended to increase Customer traffic and purchases at the TSA.com Site, and
services intended to attract Customers to the TSA.com Site from the Advertising
and Marketing Partners of Licensee.

1.34  "Sporting Goods" means sports, recreational, athletic and/or
fitness-related (i) equipment (e.g., bats, balls, gloves, racquets, clubs,
helmets, skis, fishing equipment, exercise equipment, table games, memorabilia
and licensed products), (ii) apparel (e.g., jerseys and exercise clothing) and
(iii) footwear. "Sporting Goods" shall also include any other specific products
that are sold from time to time by Licensor in the TSA Stores.

1.35  "Term" means the period set forth in Section 17.1 of this Agreement.

1.36  "Territory" means throughout the world, excluding Japan and excluding
other countries from time to time pursuant to Sections 16.4, if any.

1.37  "TSA Competitor" means any Person (other than Licensor and each of its
Affiliates) which directly or indirectly derives [*] or more of its revenues
from the retail or wholesale sale or distribution of Sporting Goods, whether by
mail order, home shopping through audio or video programming, over the Internet,
or from land-based stores located in the Territory. However, a Sporting Goods
manufacturer or distributor that supplies Licensee on a wholesale basis that
also happens to operate Sporting Goods retail stores or a business-to-consumer
e-commerce Web Site of its own, shall not be considered a TSA Competitor for
purposes of this Agreement if the subject manufacturer or distributor derives
less than [*] of its revenues from such Sporting Goods retail stores and/or Web
Sites.

1.38  "TSA Content" means: (a) all Non-Shopping Features, text, graphics,
photographs, video, audio and/or other data or information (excluding Customer
Information) owned or controlled by Licensor and furnished by Licensor to
Licensee and intended solely for use in connection with the TSA.com Site; (b)
Licensor selected print advertisements for the TSA Stores or the goods and
services offered by Licensor in the TSA Stores, including run of press and
insert advertisements which appear in newspapers and magazines, as well as
printed in store signage, point of sale and display signage and information
promoting events and the goods and services offered in the TSA Stores; and (c)
such information concerning the goods and services offered by Licensor in the
TSA Stores in the U.S. as Licensor owns or controls, and which Licensor
furnishes to Licensee for use in connection with the TSA.com Site, including
information which

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is related to the sourcing, manufacturing, development, design, fabrication,
construction, test procedures, performance features, quality control standards,
merchandise specifications, reliability standards, distribution, costs,
allowances, pricing, rebates, sizes, colors, decoration, display, margins,
vendor economic information, and similar information and know-how necessary to
the procurement, merchandising, inventory management and sales of such goods and
services in the TSA Stores.

1.39  "TSA Stores" means any land-based retail store operated by TSA or any its
Affiliates under the principal name and mark THE SPORTS AUTHORITY and related
AUTHORITY marks, and devoted to the sale of Sporting Goods.

1.40  "TSA.com Site" means that Web Site, the primary Home Page for which is
identified by the Designated URL (and any successor or replacement Web Site),
and any backup or mirror Internet Web site operated by Licensee.

1.41  "URL" means the uniform resource locator of a Web Site.

1.42  "Web" means the Internet client-server hypertext distributed information
retrieval system known as the World Wide Web.

1.43  "Web Site" means any point of presence maintained on the Internet. With
respect to any Web Site maintained on the World Wide Web, such Web Site includes
all HTML pages (or similar unit of information presented in any relevant data
protocol) that either (a) are identified by the same second-level domain (such
as http://www.thesportsauthority.com) or by the same equivalent level identifier
in any relevant address scheme, or (b) contain branding, graphics, navigation or
other characteristics such that a user reasonably would conclude that the pages
are part of an integrated information or service offering.

Section 2. Licenses.

2.1   Grant of License by Licensor.

      (a)  Grant. Subject to the terms and conditions set forth in this
Agreement, Licensor hereby grants to Licensee, for the Term and within the
Territory only, a non-transferable, exclusive (as to third parties but not as to
Licensor and its Affiliates other than as provided herein) right and license to
use the Licensed Property on and in connection with the Services and Materials
furnished at or in connection with the TSA.com Site if, and only if, such
Services and Materials comply with the quality standards set forth herein, and
such other mutually agreed upon standards. Licensor may monitor and control, in
accordance with the terms of this Agreement, the nature and quality of the
Services and Materials as set forth herein to determine whether such Services
and Materials are in compliance with such quality standards, and Licensor may
appoint one or more representatives to so monitor and to exercise such control
on Licensor's behalf. Such monitoring shall in no way lessen or limit Licensee's
obligation to use the Marks, Names and TSA Content only as set forth herein. No
other, further or different license is granted or implied and no assignment of
any right or interest is made or intended herein. In particular,

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except as set forth in Section 2.3, no license is granted to sublicense or
otherwise permit any third party to use the Licensed Property. Licensee is
prohibited from using the Marks, or any name or mark incorporating the word
AUTHORITY or otherwise confusingly similar to the Marks, including any
abbreviations of the Marks, as part of Licensee's registered corporate or
business name in any jurisdiction in the world, or as part of any Internet
domain name or subdomain name not otherwise registered in Licensor's name.
Except as licensed hereunder, Licensee shall not use or apply to register the
Licensed Property or any identical or deceptively or confusingly similar
trademarks, service marks, corporate names, domain names, trade names, trade
dress, copyrights, industrial models or designs, or any derivations thereof,
during the Term and thereafter.

     (b)  Changes to Exhibit B. Licensor and Licensee acknowledge that the "Core
Marks" as set forth in Exhibit B are: THE SPORTS AUTHORITY,
                       ---------
THESPORTSAUTHORITY.COM, THESPORTSAUTHORITY.COM & Design and THE SPORTS AUTHORITY
& Design. Licensor may make changes to Exhibit B from time to time as it sees
                                       ---------
fit to add Marks and to update information in records for existing Marks by
delivering an updated version of Exhibit B to Licensee. Licensor may only change
                                 ---------
Exhibit B to delete non-Core Marks (or records for non-Core Marks) by giving 30
---------
days prior written notice to Licensee (stating Licensor's reasons for the
proposed deletion(s) in reasonable detail). During such 30-day period, Licensee
may object in writing to any proposed deletion of non-Core Marks by Licensor.
If, prior to the end of such 30-day period, Licensee does not object in writing
to any proposed deletion of Non-Core Marks by Licensor, the proposed deletion
may be made and Licensor shall deliver an updated Exhibit B to Licensee. If
                                                  ---------
Licensee objects in writing within such 30-day period, Licensee will furnish in
reasonable detail the basis for its objection. Licensor may accept the objection
and forego the deletion(s), but if not, Licensor and Licensee will negotiate in
good faith and use commercially reasonable efforts to achieve a mutually
acceptable resolution. Notwithstanding the foregoing, if, with Licensor's prior
knowledge, Licensee has made a substantial and material investment in a non-Core
Mark which Licensor proposes to delete, and the reason for the proposed deletion
is not a binding court order, judgment or other injunction prohibiting
Licensor's or Licensee's continued use of the subject Mark, the Parties shall
strive to preserve Licensee's continued right to use the non-Core Mark and to
retain the non-Core Mark as part of Exhibit B.
                                    ---------

     (c)  Duty to Exploit License. Licensee shall use commercially reasonable
efforts appropriate to an experienced e-commerce retailer, during the Term: (i)
to furnish the TSA.com site throughout the Territory, and (ii) in the United
States, Canada and such other countries within the Territory which Licensor,
directly or indirectly through a third party, maintains TSA Stores (A) to
advertise, promote, sell and furnish the TSA.com Site and the Services and
Sporting Goods offered and sold through the TSA.com Site, and (B) to exploit the
rights granted herein in connection with the TSA.com Site, generally consistent
with the exploitation by Licensor in connection with the TSA Stores.

2.2  Marking, Samples, Inspection, Quality Control

     (a)  Marking Materials; Ownership. Licensee shall comply with the License
Guidelines set forth in Exhibit A. Licensor reserves the right to change the
                        ---------
provisions of Exhibit
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A in order to protect and enhance the Licensed Property, or Licensor's interests
-
in the Licensed Property, provided that such changes: (a) may be imposed without
Licensee's consent if such changes are necessary to preserve consistency with
Licensor's own use of the Licensed Property; or (b) subject to the consent of
Licensee, which shall not be unreasonably withheld, in any other case. Licensee
shall have a reasonable period, but no more than ninety (90) days, to fully
implement such changes.

     (b)  Submission of Samples of Materials; Approval Process. Upon the
reasonable request of Licensor, and prior to producing, publishing or
distributing any proposed Materials for the first time which bear any Mark which
has been altered by Licensee from the original form of such Mark as supplied by
Licensor, Licensee shall furnish at Licensee's expense samples of such
Materials, including the trademark, copyright and disclaimer notices thereon and
any other labels, tags or markings. Further, Licensor shall have the right to
reasonably inspect the TSA.com Site, including all underlying code and data
structures (solely for purposes of protecting its interests in the Licensed
Property and to ensure Licensee's compliance with the terms hereof), to review
upon request all Materials being furnished by Licensee to any of its Advertising
and Marketing Partners, and to know the identity and applicable URLs of such
Advertising and Marketing Partners of Licensee. Licensor shall review in a
timely manner all such samples, requests and uses which contain any altered Mark
and use commercially reasonable efforts to communicate in writing its approval
or disapproval as soon as practicable after receiving any request for the same
from Licensee or after reviewing such samples or uses. Failure to communicate
approval within five (5) Business Days of receipt of such a specific request
from Licensee shall be deemed disapproval. Licensee shall amend to the
satisfaction of Licensor any sample of Materials containing any proposed
alterations of the Marks as may be directed by Licensor. A further sample shall
be provided to Licensor for its prior review and written approval if any
subsequent changes are made in approved Materials or in the Marks.

     (c)  Quality Control. As of the Effective Date, Licensor is familiar and
satisfied with the current standards of quality of the Services, Materials and
Sporting Goods of Licensee, of the uses of the Licensed Property by Licensee and
the Advertising or Marketing Partner of Licensee, and by Licensee's efforts to
maintain such standards and control such uses. Licensee agrees that the
Services, Materials and Sporting Goods shall meet or exceed such current
standards. Licensee shall not offer or furnish any Services, Materials or
Sporting Goods, or, subject to Section 2.3, knowingly permit any uses of the
Licensed Property by any Advertising or Marketing Partner of Licensee, if
Licensor reasonably deems that any such Services, Materials or Sporting Goods,
or any uses of the Licensed Property by any Advertising or Marketing Partner of
Licensee, are not of a nature or quality that complies with the quality
standards and License Guidelines in accordance with this Agreement.

     (d)  Inspections, Testing. To ensure compliance with the quality standards
set forth in this Agreement relating to the Licensed Property, Licensor, at its
expense, directly or through representatives reasonably acceptable to Licensee,
may inspect and test Sporting Goods (that is, those Sporting Goods not otherwise
sold by Licensor in the TSA Stores) and Materials from time to time. Licensee
shall reasonably cooperate and aid Licensor in making such inspections and
tests.

                                       11

<PAGE>

     (e)  Delegation. Without limiting or waiving Licensor's rights in any
manner, Licensor delegates in part to Licensee the continuing duty to exercise
quality control regarding the nature and quality of the Services, Materials and
Sporting Goods and the nature and quality of Licensee's (and the Advertising and
Marketing Partners of Licensee's) uses of the Licensed Property. Licensee shall
use commercially reasonable efforts to fulfill such delegated duties. Licensor
may recommend and Licensee shall use commercially reasonable efforts to adopt
and comply with any reasonable procedures, tests, surveys or the like to fulfill
this delegation. Licensor may reasonably request reports, documentation,
evidence or other proof of Licensee's performance under this provision and
Licensee shall promptly furnish the same to Licensor.

2.3  Sublicense Template. Subject to the terms of this Agreement and Sections
(a) through (g) below, and provided that Licensee strictly complies with the
requirements set forth in this Section 2.3, Licensee may grant temporary,
non-exclusive, non-transferable sublicenses to use the Core Marks to those
Advertising and Marketing Partners of Licensee approved by Licensor to the
extent required under Exhibit F attached hereto:
                      ---------

     (a)  All agreements containing sublicenses must be dated, in writing and
executed by Licensee and the subject Advertising and Marketing Partner of
Licensee;

     (b)  The rights granted within any such agreements must be restricted to
use of the Core Marks solely to advertise and promote the TSA.com Site, on a
temporary, non-exclusive, non-transferable basis, during the Term and within the
Territory only (provided that the fact that a Web Site of an Advertising and
Marketing Partner of Licensee may be accessible by users in countries outside
the Territory does not, in itself, preclude such sublicense or violate this
Agreement subject to the prohibitions herein concerning shipment or delivery of
Sporting Goods to Customers in such countries);

     (c)  All sublicense provisions or agreements must expressly identify
Licensor as the owner of the Core Marks, and provide that all goodwill
associated with use of the Core Marks shall inure to Licensor;

     (d)  All sublicensees must agree to use the Core Marks only as instructed
by Licensee and only in the formats provided by Licensee (without alteration);

     (e)  All sublicenses must provide that if any sublicensee is misusing the
Core Marks, or if such sublicensee is using the Core Marks in violation of the
usage guidelines in this Agreement, upon notice from Licensee, the subject
sublicensee shall either immediately correct such misuse or defect, or
immediately cease using the Core Marks;

     (f)  The Parties shall work together in good faith to develop efficient
methods of tracking, reporting, documenting and auditing all such sublicenses
and sublicensees. Upon the reasonable request of Licensor, Licensee shall
furnish full and accurate copies of all agreements containing sublicenses to the
extent such agreements concern the TSA.com Site and/or Licensor, and furnish
samples of any uses of the Core Marks by any Advertising and Marketing Partner
of

                                       12

<PAGE>

Licensee. Licensee's duty to furnish such agreements shall be subject to any
confidentiality provisions contained therein, provided that Licensee shall use
commercially reasonable efforts to (i) avoid such provisions as they relate to
Licensor when negotiating any such agreements, and, (ii) after the fact, to
secure a suitable waiver if necessary from any such sublicensee to disclose all
or as much of the subject agreement to Licensor as required hereunder; and

     (g)  If Licensee becomes aware of, or is notified in writing by Licensor,
that a given sublicensee has breached the above provisions, other provisions of
this Agreement, or the provisions of any sublicense, the subject sublicensee's
breach shall not be deemed a breach of this Agreement by Licensee until (i)
Licensee has been afforded a reasonable amount of time, not to exceed thirty
(30) days from receipt of such notice, to remedy the sublicensee's breach, and
(ii) Licensee fails to remedy such sublicensee's breach or fails to terminate
such sublicensee's use giving rise to such breach within such time.

2.4  Coining New Trademarks or Service Marks. Licensee acknowledges that
Licensor's retail identity focuses in principal part upon use of a family of
marks incorporating and featuring the word "Authority," many of which are listed
in Exhibit B, attached. However, Licensor also owns and uses other marks outside
   ---------
of its family of Authority marks, as detailed in part in Exhibit B. Licensee
                                                         ---------
shall not coin, adopt, use or attempt to register on or in connection with the
TSA.com Site any new trademark or service mark featuring the word Authority, or
otherwise similar to any of Licensor's Marks as detailed in Exhibit B, without
                                                            ---------
the prior review, clearance and approval of Licensor, which may be withheld by
Licensor as it sees fit. Once a given new mark has been approved by Licensor,
Licensee shall furnish all reasonably necessary assistance to Licensor to
register and maintain such mark in Licensor's name, at Licensor's expense.
Licensor shall update Exhibit B from time to time to reflect such newly coined
                      ---------
and adopted marks.

2.5  License Exclusions. Licensee agrees and acknowledges that:

     (a)  Reservation of Rights. Notwithstanding Section 2.1, but subject to the
other provisions of this Agreement (including Sections 9, 10 and 16), Licensor
reserves to itself, its Affiliates, and their respective agents, distributors,
representatives licensees, franchisees, customers, successors and assigns (now
or hereafter existing), all rights to use (and the right to license or otherwise
authorize others to use) the Licensed Property for any and all purposes
including the right to use and exploit the Licensed Property throughout the
world, including in the Territory (i) to manufacture, source, market, sell,
furnish, advertise and promote and deliver goods and services offered at or
through the TSA Stores; (ii) to print, source, market, sell, furnish, advertise
and promote TSA Land Based Stores Gift Certificates, directly or indirectly
through any third party, whether from TSA Stores, by mail order, over the
Internet, an intranet or extranet (except from an Internet site owned or
operated by Licensor directed at consumers, as opposed to Licensor's employees
or other businesses), or otherwise; (iii) to create, develop, operate or
maintain any Web Site exclusively devoted to the provision of information or to
employee training and the sale of Sporting Goods and Services to employees of
Licensor, but which shall not, in either case, offer for sale any Sporting Goods
or services (other than for purchases by employees at a discount for their own
benefit) or link to any Web Site selling

                                       13

<PAGE>

Sporting Goods or services other than the TSA.com Site and (iv) to manufacture,
source, market, sell, furnish, advertise and promote goods and services offered
by means of home shopping audio or video programs or successor technologies (not
on the Internet).

     (b)  Private Label Merchandise. Nothing contained herein will prevent or
restrict Licensor or any of its Affiliates, or any third parties licensed by
Licensor, from sourcing, manufacturing, marketing, advertising or selling
Private Label Merchandise other than, directly or indirectly, through the
Internet. Conversely, Licensee shall not source or manufacture Private Label
Merchandise, and may only offer, advertise and sell Private Label Merchandise on
the TSA.com Site that has been purchased from Licensor, as if Licensor were
Licensee's vendor. Licensee may only purchase Private Label Merchandise directly
from a vendor other than Licensor with Licensor's prior written approval.

     (c)  Prohibited Use of TSA Content. Nothing contained herein shall permit
Licensee (or any of its Affiliates) to use or authorize others to use the TSA
Content in any manner on or in connection with any site of any TSA Competitor.
Licensee will segregate and take all necessary measures to prevent the TSA
Content, which is in the possession and control of Licensee, from being
commingled with the content of any TSA Competitor. The foregoing limitation
shall not be deemed to restrict Licensee from using content of any merchandise
vendor on the TSA.Com Site in connection with the sale of such vendor's products
through the TSA.Com Site. Such TSA Content as would be deemed "Confidential
Information" as defined herein shall be governed by Section 19.3.

     (d)  No Use of HEAD and Other Licensed Marks. Nothing contained herein
shall authorize or permit Licensee (or any of its Affiliates) to source or
manufacture goods bearing the trademark HEAD or other marks like the HEAD marks
that are licensed by a third party to Licensor for use solely in connection with
the TSA Stores.

     (e)  Licensor's Other Authorized Users. Licensor has entered into, and may
renew or continue to enter into, certain license agreements, sponsorship
agreements, settlement agreements and other agreements regarding use of the
Marks by others that do not, and will not, abridge Licensee's rights hereunder
or otherwise conflict with this Agreement.

     (f)  No Embarrassment. Neither Licensee nor any of its Affiliates, and
subject to Section 2.3(g), none of the Advertising and Marketing Partners of
Licensee will: (i) offer or sell Sporting Goods or render Services, or otherwise
advertise or promote the TSA.com Site, in any way associated with, or reasonably
determined by Licensor, to be associated with any illegal, vulgar, obscene, or
offensive activities, nor cause material embarrassment to be suffered by
Licensor by reason of acts or omissions which are illegal, vulgar, obscene, or
offensive; (ii) disparage Licensor or any of its Affiliates, or their products
or services; (iii) portray Licensor or any of its Affiliates, or their products
or services, in a false, competitively adverse or poor light; or (iv) knowingly
take any action that materially and adversely diminishes the value of the
Licensed Property. Additionally, Licensee will require each of the Advertising
and Marketing Partners of Licensee to agree to restrictions with respect to the
TSA.com Site substantially similar to the restrictions set forth in this
subsection (f).

                                       14

<PAGE>

     (g)  No Other Uses. Licensee shall not use the Licensed Property for any
purpose other than the creation, development, operation, maintenance,
advertising and promotion of the TSA.com Site as specifically provided for
herein.

     (h)  No Exports to Outside the Territory. While the TSA.com Site may be
accessible by Persons outside the Territory (and such accessibility will not, by
itself, be considered a breach of this Agreement), Licensee will not ship to
addresses outside the Territory and will not knowingly sell Sporting Goods to
any Person which it knows or has reason to believe intends to export such
Sporting Goods to countries outside the Territory.

     (i)  No Co-Branding. Licensee shall not "co-brand" the TSA.com Site, or use
the Marks adjacent to other trademarks or service marks on the TSA.com Site or
on the site of any Advertising and Promotion Partner of Licensee in a manner
which, in comparison to any nearby marks of others, places less emphasis or
imposes smaller dimensions upon the Marks. Notwithstanding the foregoing,
Licensor acknowledges and agrees that as part of certain advertising and
marketing arrangements entered into with Advertising and Marketing Partners of
Licensee hereunder, (a) the TSA.com Site may be "framed" by certain of the
Advertising and Marketing Partners of Licensee which frame will include
trademarks or service marks of such Advertising and Marketing Partners of
Licensee, and (b) certain Web Sites of the Advertising and Marketing Partners of
Licensee may include logos, marks, trade names, trade marks, offers, and related
material of third parties, in either case which are larger than the Marks or
place more emphasis on such other logos, marks, trade names, trade marks,
offers, and related material over the Marks.

     (j)  Prohibition Of Gambling Activities. At no time shall Licensee: (i)
publicize, advertise, promote or otherwise make available on the TSA.com Site
any information about touting, gambling or lotteries (other than legal
sweepstakes sponsored by or in conjunction with the TSA.com Site); or (ii)
authorize or provide any links from the TSA.com Site to any third party site
that contiguously publicizes, advertises, promotes or provides any information
about touting, gambling or lotteries (other than scores and game lines for
sporting events or legal sweepstakes).

2.6  Protection of Licensed Property.

     (a)  Licensee shall use commercially reasonable efforts to inform Licensor
promptly of any possible infringement, or of any passing off or unfair
competition affecting any of the Licensed Property that comes to the attention
of Licensee's management. Further, Licensee agrees to fully cooperate and assist
Licensor as is reasonably necessary and at Licensor's expense, in the protection
and defense of any of Licensor's rights in the Licensed Property, in the filing
and prosecution of any trademark, trade dress, service mark, trade name,
copyright, domain name, industrial model or design application, registration,
renewal and the like, in the recording of this Agreement or any other relevant
agreements, including registered user agreements, and in the doing of any other
act with respect to the Licensed Property, including the prevention of the use
thereof by any unauthorized person.

                                       15

<PAGE>

     (b)  Licensor deems the Licensed Property to be extremely valuable.
Licensor shall have the sole right to determine whether or not any action shall
be taken on account of any infringement, passing off or unfair competition
activities or other enforcement of Licensor's rights in the Licensed Property.
If Licensor so desires it may prosecute any actions, claims, lawsuits or
proceedings in its own name or join Licensee as a party thereto, all at
Licensor's expense. Licensor shall be entitled to recover any and all sums of
money awarded and materials delivered up as a result of such actions, claims,
lawsuits or proceedings.

     (c)  Licensee shall not, and shall not be required, to institute any
lawsuit or take any action against any third party on account of any actual or
alleged infringement, passing off or unfair competition relating to the Licensed
Property, and Licensee shall not have any right or claim against Licensor for
Licensor's failure to enforce its rights in the Licensed Property or failure to
prosecute any actual or alleged infringement, passing off or unfair competition
by others in relation to the Licensed Property. Notwithstanding the foregoing,
if, after Licensor is advised and has a reasonable opportunity to investigate
and attempt to resolve an instance of actual or alleged infringement, passing
off or unfair competition, yet Licensor determines not to institute any lawsuit
or take any further action or because, in Licensor's reasonable opinion, the
same are unwarranted or of no avail, Licensee may institute a lawsuit or take
any action, solely in its own name, to remedy the actual or alleged
infringement, passing off or unfair competition. As a prerequisite to
instituting such a lawsuit and taking any such actions, Licensee shall deliver
to Licensor a duly executed guarantee from Global Sports providing that Global
Sports agrees to and shall pay any and all costs, expenses and damages,
including attorneys' fees, expert fees and all court costs incurred by Licensee
and by Licensor (including Licensor's internal costs) in the matter. Licensee
agrees to keep Licensor fully informed regarding all such lawsuits and actions,
and to obtain Licensor's prior written approval of any proposed settlement that
affects the Licensed Property or Licensor's interest in the Licensed Property.
Licensee shall apply any costs, fees, damages or other sums recovered in any
such action or lawsuit to reimburse the amounts Licensee or Global has expended
in the action or lawsuit. Once Licensee or Global has been fully reimbursed, the
balance shall be delivered as determined by the court.

Section 3. Creation and Operation of the TSA.com Site

3.1  Design and Development. Licensee, at its own expense, will continue to
design and develop the TSA.com Site in accordance with this Agreement. Except
for the Licensed Property, Non-Shopping Features and TSA Content to be provided
by Licensor hereunder, Licensee shall provide all content, creative, design,
programming and related services necessary to the design, development, operation
and updating of the TSA.com Site, including incorporating the functionality and
features provided for herein. Licensee shall update the content, offers,
promotions and Look and Feel characteristics of the TSA.com Site as is
reasonably necessary for the Site to compare favorably with then current
industry standards for leading e-commerce businesses[*] The TSA.com Site will
continue to contain at a minimum the functionality and features currently
existing on the TSA.com Site and as set forth on Exhibit G attached hereto and
                                                 ---------
such other functionality and features as may be agreed upon by the Parties. The
TSA.com Site will be comprised of a series of templates developed by Licensee
that will define the format and

                                       16

<PAGE>

layout of a page on the TSA.com Site and establish the placement and size of
content type blocks (e.g. text, graphics, promotions, advertising, navigation
bar and images). Such templates shall be developed to correspond closely with
the merchandise category and department structure in the TSA Stores. The Look
and Feel characteristics of the TSA.com Site will continue to be consistent with
the TSA Stores and the Marks, or as otherwise mutually upon by the Parties.
Licensor will provide Licensee with the Non-Shopping Features information, TSA
Content and Licensed Property necessary for the operation of the TSA.com Site
and provision of the Services in connection therewith. Licensor will provide
such Non-Shopping Features information, TSA Content and Licensed Property in
such format as may be agreed upon by the Parties. In the event of a change in
the Marks of Licensor, Licensee agrees that it shall update the TSA.com Site in
a timely manner after Licensor provides Licensee with such updated Marks.
Notwithstanding anything herein to the contrary, it shall be Licensee's sole
responsibility to produce and maintain all camera-ready product information and
images for use on the TSA.com Site. For purposes of this Agreement, such product
information and images shall be deemed GSI Content. Notwithstanding the
foregoing, Licensee shall, after giving reasonable advance notice, be permitted
to reasonably use merchandise in the TSA Stores to prepare product images, so
long as such use (i) is during normal business hours or other mutually agreed
upon times, (ii) does not disrupt customers' ability to purchase merchandise in
such TSA Stores, and (iii) does not damage such merchandise.

3.2  Web Site Enhancements and Updates.

     (a)  Subject to the terms and conditions of this Section 3.2, in the event
that [*] provided, however, that Licensee shall not have the obligation to [*]

     (b)  Subject to the terms and conditions of this Section 3.2, in the event
that [*] provided, however, that Licensee shall not have the obligation to [*]

     (c)  Notwithstanding Section 3.2(a) and Section 3.2(b), Licensee shall not
be obligated to [*] provided, however, if [*] The Parties will cooperate in good
faith with each other and will use commercially reasonable efforts to [*]

     (d)  Licensee's obligations under this Section 3.2 shall terminate [*]

3.3  Hosting, Maintenance and Operations of TSA.com Site. Licensee, at its own
expense, will host, maintain and operate the TSA.com Site in accordance with
this Agreement. Licensee will furnish a data center and all other "back-end"
operations in order to fulfill its obligations hereunder. Licensee will be
responsible for hosting, or arranging for the hosting by a reputable third-party
hosting company, the TSA.com Site. Licensee agrees that, during the Term, it
will comply with [*] The data center, equipment and software used by Licensee to
host and operate the TSA.com Site, and the security and monitoring provided by
Licensee with respect to the TSA.com Site and the data center, equipment and
software used by Licensee to host and operate the TSA.com Site, will be equal or
better in quality to that currently used or provided for the TSA.com Site;
provided, however, that the communications link to the public Internet for the

                                       17

<PAGE>

TSA.com Site shall compare favorably to the communications link of the Web Sites
of other leading e-commerce businesses having a similar amount of usage and
which sell comparable products and services, [*] The TSA.com Site will be
operated at the Designated URL. At all times during the Term, Licensor will
cause the Names to be registered with Network Solutions Inc. (or other reputable
registrars) in such a way that the Names point to the domain name servers
designated by Licensee. Licensor will provide the information set forth on
Exhibit "K" attached hereto with respect to security for and registration of the
URLs for the TSA.com Site.

3.4  Non-Shopping Features.

     (a)  Licensee will program, upload, display and maintain the Non-Shopping
Features at its own expense, and shall promptly update all related aspects of
the TSA.com Site, as requested from time to time by Licensor. Notwithstanding
the foregoing, if and when Licensee provides access or technology to Licensor
that enables Licensor to control and update any Non-Shopping Features directly,
the updating burden as to the subject Non-Shopping Features shall shift to
Licensor.

     (b)  Upon request from Licensor, Licensee shall place a notice of copyright
ownership on each page of the TSA.com Site that displays Non-Shopping Features
in accordance with the License Guidelines. Further, Licensee shall cooperate
fully with Licensor at Licensor's expense in connection with Licensor's
obtaining appropriate copyright protection in the name of Licensor for any page
containing Non-Shopping Features.

Section 4.  Merchandising the TSA.com Site.

4.1  General. Subject to the terms of this Agreement, (i) Licensee may continue
to offer for sale on the TSA.com Site any and all types of Sporting Goods and
Services offered in the TSA Stores, and (ii) to the extent reasonably
practicable, Licensee will continue to offer for sale on the TSA.com Site as
broad of a selection of Sporting Goods and Services as Licensor offers in the
TSA Stores; provided, however, that (A) Licensee will not be required to offer
for sale on the TSA.com Site any Sporting Goods or Services that Licensee is
prohibited from offering for sale on the TSA.com Site by the manufacturer,
licensor or licensee of such products, and (B) Licensee may continue to offer
for sale on the TSA.com Site Sporting Goods and Services not offered for sale in
the TSA Stores. Licensee shall merchandise the TSA.com Site so that (a) it
appears to Customers that Sporting Goods and Services available on the TSA.com
Site (i) are organized into categories and departments closely corresponding to
the categories and departments found in Licensor's TSA Stores, and (ii) the
assortment and selection of such Sporting Goods and Services is similar to that
found in the TSA Stores and is no less broad in scope in comparison to that
found on the Web Sites of the GSI Ventures or GSI Partners; and (b) for those
Sporting Goods or Services offered by Licensee by or through the TSA.com Site
and by Licensor in the TSA Stores, [*] In contrast to the foregoing, Licensee
shall have no [*] The Parties will cooperate in good faith with each other and
will use commercially reasonable efforts to obtain all consents required to
permit the offer and sale of prohibited Sporting Goods or Services through the
TSA.com Site.

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<PAGE>

4.2  Cooperation. Although Licensee shall be primarily responsible for
selecting, ordering and displaying Sporting Goods and Services for the TSA.com
Site, the Parties will continue to coordinate the merchandising of the TSA.com
Site. Each Party will, if the other Party so requests, use commercially
reasonable efforts to assist the other Party in obtaining the best prices from
vendors for Sporting Goods or Services desired to be acquired by such other
Party and/or overcoming any vendor's or other applicable third party's
reluctance to sell to the other Party.

4.3  Merchandising Plans. Licensor shall share its merchandise assortment plans,
pricing and advertising plans with Licensee in a timely manner, in advance, as
is reasonably necessary for Licensee to merchandise the TSA.com Site as
described herein. Such merchandise assortment plans, pricing and advertising
plans are and shall be treated as Confidential Information of Licensor. Upon
request, Licensor shall use commercially reasonable efforts to work with
Licensee and/or vendors so that Licensee is able to purchase and maintain
adequate inventories of Sporting Goods featured in Licensor's advertising
inserts in order to support the demand for such Sporting Goods through the
TSA.com Site.

4.4  Sales or Transfers of Sporting Goods from Licensor to Licensee. Upon
request from Licensee, or as offered from time to time by Licensor, Licensee may
agree to buy and Licensor may agree to sell, certain name brand and Private
Label Merchandise owned by Licensor (including merchandise ordered but not yet
received by Licensor). Licensee shall pay all of Licensor's invoices for any
shipments of Sporting Goods or Private Label Merchandise (including freight)
within 30 days of receipt of such invoices. Licensee agrees that any Private
Label Merchandise purchased by Licensee shall be offered and sold only on the
TSA.com Site, except as provided in Section 17.7(e). All other terms of such
purchases shall be as mutually agreed upon by the Parties.

4.5  Restrictions and Exceptions. Notwithstanding anything contained herein to
the contrary, Licensee will not offer, sell, advertise or promote on the TSA.com
Site, or display any links to any Web page that offers, sells, advertises or
promotes, either directly or indirectly, any of the following: (i) any firearm,
ammunition, explosive, explosive material, or weapon or any related items,
equipment and accessories which are subject to licensing, permitting and or
other governmental restrictions on sales, distribution and/or exports of the
same; (ii) any Sporting Goods which Licensee knows or is informed by Licensor is
counterfeit, or the offer or sale of which Licensee knows or is informed by
Licensor infringes the valid Intellectual Property Rights of third parties;
(iii) any Sporting Goods or Service that the sellers of which are charged with
in-person verification of identity or age or other qualification to own or
purchase such merchandise; (iv) any Sporting Goods that is subject to any export
prohibition from the U.S., or which are barred or otherwise prohibited from use
in any export destination country outside the U.S, unless such merchandise is
only sold and delivered to a customer within the United States; (v) subject to
the last sentence of this Section 4.5, any Sporting Goods or Service that is
illegal, vulgar, obscene, or offense; (vi) any Sporting Goods or Service that
Licensee knows or is informed by Licensor would, which if offered or sold on the
TSA.com Site, violate a prohibition against the same imposed by the subject
vendor upon Licensor, including, without limitation, any provision restricting
distribution to the territories served by Licensor's TSA Stores; and (vii)
subject to the last sentence of this Section 4.5, any Sporting Goods which
Licensor requests in writing be

                                       19

<PAGE>

removed from the TSA.com Site for legitimate business purposes set forth in
Licensor's notice to Licensee, which if not removed, would have a materially
adverse impact on Licensor. Such notice shall specify in reasonable detail the
Sporting Goods item or items that Licensor desires Licensee to remove from the
TSA.com Site and the reasons for its objection to the sale of the same. The
Parties will in good faith attempt to resolve any disagreement they may have
concerning the removal of such products from the TSA.com Site pursuant to (v)
and (vii) above; provided, however, if, notwithstanding the use of good faith,
the Parties are unable to agree as to whether a particular product can be
offered on the TSA.com Site, the following resolution shall govern: (i) if the
disputed product is a type of product then offered for sale in the TSA Stores,
then Licensee may continue to offer such product on the TSA.com Site, and (ii)
if the disputed product is not a type of product then offered for sale in the
TSA Stores, then Licensee shall remove such product from the TSA.com Site.

4.6  No Diversion. Licensee shall not knowingly divert or permit diversion of
any Order made by, for, through or in the name of the TSA.com Site so that it
results instead in a sale on the Web Site or other outlet of any GSI Partner,
GSI Venture or any third party.

4.7  Land Based Stores Gift Certificates. In the event that Licensor is willing
to provide Land Based Stores Gift Certificates to Licensee on a consignment
basis, then Licensee shall sell Land Based Stores Gift Certificates through the
TSA.com Site in accordance with this Section 4.8, provided that such sales by
Licensee do not subject it to nexus with any state for sales tax purposes.
Subject to the foregoing, Licensor will furnish Land Based Stores Gift
Certificates to Licensee on consignment in quantities and denominations as
reasonably requested by Licensee. Licensee will remit to Licensor [*] of all
proceeds received from the sale of Land Based Stores Gift Certificates, the
balance being retained by Licensee as its fee and to cover all costs, including
credit card fees. By the [*] day of each [*], Licensee shall report and make
full payments to Licensor for all sales of Land Based Stores Gift Certificates
made during the previous month, and provide all reasonable cooperation to
Licensor to permit the latter to fulfill its escheat duties.

4.8  On-Line Gift Certificates. Unless otherwise agreed to in writing by
Licensor, in no event shall Licensee authorize, create, offer, advertise, market
or sell any form of gift certificate, gift card, rebate, voucher or the like
(other than Land Based Stores Gift Certificates as set forth above) that is
intended to be redeemed at the TSA Stores. However, subject to the License
Guidelines, Licensee may develop, publish and offer for sale On-Line Gift
Certificates on the TSA.com Site. Licensee shall clearly and conspicuously state
in connection with any offer to sell such On-Line Gift Certificates, and state
on the On-Line Gift Certificates themselves, that On-Line Gift Certificates are
redeemable only on the TSA.com Site and not at TSA Stores, unless otherwise
agreed to in writing by Licensor. Licensee shall bear all escheat duties with
respect to On-Line Gift Certificates.

4.9  Tax Obligations. For all Sporting Goods and Services sold by or through the
TSA.com Site, as between Licensor and Licensee, Licensee shall be responsible
for the computation, notification, withholding, payment, and reporting of all
applicable taxes of any kind that may be imposed on Licensee in connection with
Licensee's activities, assets or operations as permitted

                                       20

<PAGE>

hereunder, including, without limitation, all sales and use taxes and all value
added taxes. As between the Parties, Licensor shall be responsible for any taxes
imposed by law on Licensor, including sales and use taxes as provided pursuant
to Section 10.14. Licensee shall be responsible for the timely notification,
withholding, remittance, filing and reporting of all applicable withholding
taxes with respect to the Royalties payable to Licensor hereunder to the proper
tax authority at the rate required by statute (but reduced to the fullest extent
permitted by any tax treaty), and Licensee shall provide Licensor with reports
and official receipts of all such withholding remittances sufficient to enable
Licensor to claim appropriate federal income tax credits, if any.

Section 5.   Order Processing; Fulfillment and Customer Service.

5.1 Order Processing and Fulfillment. Licensee will continue to be responsible
for all aspects of order processing, fulfillment and returns for the TSA.com
Site, including those functions set forth on Exhibit I attached to this
                                             ---------
Agreement. The order processing and fulfillment services provided by Licensee
with respect to the TSA.com Site will comply with [*] Without limiting the
generality of the foregoing, Licensee will: (i) enter into merchant agreements
in its own name and on its own account with [*]; (ii) provide secure systems for
submitting and processing such credit cards; (iii) provide timely order and
shipping confirmations to Customers; (iv) promptly process all Orders received
from Customers of the TSA.com Site, (v) process all transactions through the
TSA.com Site under the name of "TheSportsAuthority.com", and (vi) make
appropriate arrangements for the delivery of Sporting Goods and Services
purchased through the TSA.com Site.

5.2 Returns. The returns policy for the TSA.com Site will continue to be as
consistent as practicable with the returns policy of the TSA Stores; provided
that GSI will accept returns of Sporting Goods or Services made through the
TSA.com Site, so long as such returned Sporting Goods or Services are (a)
defective or damaged during shipment, or (b) returned to Licensee, within a
mutually agreed upon time, unused and in a condition suitable for resale as new
goods. Licensor will not be required to accept in the TSA Stores any returns of
Sporting Goods or Services purchased through the TSA.com Site, and if Licensor
determines to accept any such returns, Licensor will not return any such
Sporting Goods or Services to Licensee, and Licensee will not have any
obligation to accept such returns from Licensor. Licensee will from time to time
at Licensee's expense provide Licensor with sufficient quantities of return
labels to enable Licensor to provide such labels to customers seeking to return
to Licensor Sporting Goods and Services purchased through the TSA.com Site. The
Parties agree that they will review the returns policy for the TSA.com Site
annually upon request of either Party, and work in good faith to develop
mutually agreeable procedures and policies regarding returns. The Parties
acknowledge that Licensee has paid Licensor in full and complete satisfaction of
any and all liabilities Licensee may have to Licensor relating to returns made
prior to the Effective Date and accepted in the TSA Stores for products sold
through the TSA.com Site.

5.3 Customer Service. Licensee will continue to be responsible for providing
customer service to Customers of the TSA.com Site, including on-line and
toll-free telephone support 24 hours per day, seven days per week. The customer
service provided to Customers of the

                                       21

<PAGE>

TSA.com Site will be provided in the name of the TSA.com Site. Throughout the
Term, Licensee will comply with [*] Without limiting the generality of the
foregoing, Licensee will (i) provide customer service in a courteous and
professional manner, (ii) provide for Customer feedback through appropriate
features (e.g. "contact us" and "how are we doing?" sections of the TSA.com
Site), and (iii) provide a toll-free telephone number for customer service which
shall be available 24 hours a day / 7 days a week (other than Christmas Day) to
receive and process inquiries, requests and complaints from Customers. In the
event that Licensee receives inquiries or complaints from customers relating to
the TSA Stores (e.g., customers attempting to contact Licensor), Licensee shall
promptly refer all such customers to the email reply service and/or toll-free
telephone number for customer service furnished to Licensee by Licensor.
Conversely, in the event that Licensor receives inquiries or complaints from
Customers relating to the TSA.com Site, Licensor shall promptly refer all such
Customers to the email reply service and/or toll-free telephone number of
Licensee posted on the TSA.com Site.

5.4  Customer Loyalty Programs. Licensee shall use commercially reasonable
efforts to adopt customer loyalty programs integrated with Licensor's customer
loyalty programs for the TSA Stores. Licensee may also establish customer
loyalty programs, provided that: (a) any such program shall be used only to
attract Customers to and generate Orders through the TSA.com Site or the TSA
Stores, and not other Web Sites operated in connection with any of the GSI
Partners or GSI Ventures; and (b) Licensee must obtain Licensor's review and
approval prior to extending any Customer loyalty program to Licensor's TSA
Stores.

5.5  Parts and Service. If and to the extent that, during the Term, Licensee
offers after sales service and spare parts to Customers on the TSA.com Site,
which shall be at Licensee's sole discretion, Licensee shall, for [*] following
expiration or termination of this Agreement, provide comparable after sales
service and spare parts to Customers as provided by Licensee immediately prior
to such expiration or termination. In no event shall Licensor be responsible for
providing after sales service or spare parts to Customers of the TSA.com Site.

Section 6.  Promotion and Advertising

6.1  Licensor's Activities and Obligations

     (a) Commencing no later than the Effective Date and on a rolling basis as
it orders or prepares new printed materials or advertisements or other
communications materials, and continuing throughout the Term, Licensor shall
promote and advertise the TSA.com Site in compliance with Exhibit J, attached.
                                                          ---------
Licensor may use the following disclaimer (or similar message) if appropriate
and necessary: "On-line merchandise offerings may vary from products offered in
The Sports Authority stores."

     (b) Licensor shall provide to Licensee the e-mail addresses which it
collects from customers in the TSA Stores as required pursuant to Exhibit J,
                                                                  ---------
attached. Licensee agrees that such email addresses shall be used solely for the
purpose of sending emails to such customers to promote the TSA.com Site, and
that such information shall be Confidential Information of

                                       22

<PAGE>

Licensor. Except with respect to Licensor's obligation to coordinate emails with
Licensee pursuant to Section 12, nothing in this Agreement shall prohibit
Licensor from sending emails to its customers.

6.2  Promotional and Advertising Agreements. During the Term and throughout that
portion of the Territory in which Licensee is so required by Section 2.1(c),
Licensee will use commercially reasonable efforts to enter into promotional and
advertising agreements and arrangements for the TSA.com Site. However, Licensee
shall not contract with any TSA Competitor in connection with the marketing or
promotion of the TSA.com Site, and for purposes of this Agreement, TSA
Competitors shall not qualify as and shall be excluded from the definition of
Advertising and Marketing Partners of Licensee. The review and approval
processes applicable to such promotional and advertising agreements and
arrangements are set forth on Exhibit F attached hereto. Notwithstanding the
                              ---------
preceding sentence, the review and approval process set forth on Exhibit F shall
                                                                 ---------
not apply to any promotional or advertising agreement or arrangement which (i)
grants a sublicense to a third party other than in accordance with Section 2.3
hereof, (ii) relates to a newly coined trademark or service mark which is
subject to Licensor's approval pursuant to Section 2.4, or (iii) proposes to
alter the Marks which shall be subject to Section 2.3.

6.4  Advertising and Marketing.

     (a) Commencing January 1, 2002, [*] (i) the [*] provided, that [*] which
are provided pursuant to an agreement with [*] if (A) [*] (B) [*] and (C) the
terms and conditions of the agreement [*] and (ii) subject to Section 6.4(c)
below, [*] so long as [*]

     (b) If [*] Licensee shall not be deemed to have breached this Agreement [*]

     (c) If [*] then Licensee shall so inform Licensor, provide Licensor with
all information it reasonably requests [*] and give Licensor [*] If Licensor [*]
then Licensee shall [*]

     (d) Notwithstanding the foregoing, this Section 6.4 shall no longer be
effective [*]

6.5  Maximization. Without negating the specific rights and obligations of each
Party under this Agreement, each Party agrees to operate in a manner that has
the intended effect of maximizing the customers and revenues from or through the
TSA.com Site.

7.   Ownership.

7.1  Licensor. As between the Parties, Licensor owns and reserves all right,
title and interest in and to the Licensed Property, along with all Intellectual
Property Rights associated therewith, and no right, title or interest to or in
any of the foregoing is transferred or, except as expressly set forth in Section
2, licensed to Licensee or any other Person. Licensee hereby assigns to Licensor
all right, title and interest that it may have or acquire in and to such items
and all associated Intellectual Property Rights, and Licensee will take, at
Licensor's expense, any actions (including

                                       23

<PAGE>

execution and delivery of affidavits and other documents) reasonably requested
by Licensor to effect, perfect or confirm Licensor's or its designee's right,
title and interest therein. Further, Licensee agrees and acknowledges that all
goodwill associated with or created by use of the Licensed Property by Licensee
shall inure to the benefit of Licensor. Upon termination of this Agreement all
rights in and to the Licensed Property, including all right to the use thereof,
and all goodwill associated with use of the Licensed Property, shall
automatically revert back to Licensor. At the termination of the Agreement,
Licensee will return all Licensed Property to Licensor, and Licensee shall have
no further rights thereto. If, by operation of law or otherwise, any goodwill
associated with Licensee's use of the Licensed Property shall be deemed to
accrue or have accrued to Licensee, Licensee agrees to assign such goodwill to
Licensor. Licensor shall not be required to compensate Licensee for any
reversion or assignment of such goodwill. Licensee shall not contest Licensor's
rights in the Licensed Property, or any of Licensor's applications or
registrations therefor, nor assist anyone else in doing so.

7.2  Licensee. As between the Parties, Licensee owns and reserves all right,
title and interest in and to the GSI Furnished Materials and the TSA.com Site
(other than the Licensed Property and all Intellectual Property Rights
associated therewith), along with all Intellectual Property Rights associated
therewith, and no right, title, interest to or ownership of any of the foregoing
is transferred or licensed to Licensor or any other Person. Licensor hereby
assigns to Licensee all right, title and interest that it may have or acquire in
and to such items and all associated Intellectual Property Rights, and Licensor
will take, at Licensee's expense, any actions (including execution and delivery
of affidavits and other documents) reasonably requested by Licensee to effect,
perfect or confirm Licensee's or its designee's right, title and interest
therein. Further, Licensor agrees and acknowledges that all goodwill associated
with or created by use of the GSI Furnished Materials or TSA.com Site (other
than the Licensed Property) shall inure to the benefit of Licensee. Upon
termination of this Agreement all rights in and to the GSI Furnished Materials
and the TSA.com Site (other than the Licensed Property), including all right to
the use thereof, and all goodwill associated with use of the GSI Furnished
Materials and TSA.com Site (other than the Licensed Property), shall
automatically revert back to Licensee. At the termination of the Agreement,
Licensor will return all GSI Furnished Materials to Licensee, and Licensor shall
have no further rights thereto. If, by operation of law or otherwise, any
goodwill associated with Licensor's use of the GSI Furnished Materials or
TSA.com Site (other than the Licensed Property) shall be deemed to accrue or
have accrued to Licensor, Licensor agrees to assign such goodwill to Licensee.
Licensee shall not be required to compensate Licensor for any reversion or
assignment of such goodwill. Licensor shall not contest Licensee's rights in the
GSI Furnished Materials or the TSA.com Site (other than the Licensed Property),
or any of Licensee's applications or registrations therefor, nor assist anyone
else in doing so.

     7.3 Ownership and Use of Databases. As between the Parties, Licensee shall
own all right, title and interest in and to all Databases. During the Term,
Licensor may use the Databases as specifically provided hereunder, without
payment to Licensee, but to the extent Licensor's use requires access to a third
party's technology, Licensor shall be required to obtain and pay for such
access.

                                       24

<PAGE>

Section 8.  Account Managers

     8.1 Account Managers.

     (a) Each Party will assign one (1) dedicated account manager with the
experience and status equivalent to an on-line business manager, as well as one
(1) dedicated merchandising manager. The work time and energies of Licensor's
managers shall be devoted entirely to the TSA.com Site. All managers shall be
subject to change from time to time by the assigning Party upon written notice
to the other Party. Such managers shall oversee the performance of the Party's
respective obligations under this Agreement. It is anticipated that the account
managers shall meet at least once every month (or with such other frequency as
may be mutually agreed upon) during the Term to review the implementation of
this Agreement and to explore methods for improving performance.

     (b) Notwithstanding subsection (a), until December 31, 2001, Licensor shall
furnish at least two (2) account managers. Licensor's obligation to provide two
(2) managers shall cease as of December 31, 2001. Licensee shall [*] Licensee
agrees to [*] In no event shall Licensee [*]

Section 9.  Kiosks. Licensor may, on its own or through a third party, elect to
install, or permit the installation of, kiosks in any or all of the TSA Stores
at any time or from time to time. All such kiosks shall be configured to enable
customers at such TSA Stores to purchase Sporting Goods and Services through
such kiosks only through the TSA.com Site. It is understood by the Parties that
Licensee has the exclusive right, in the Territory, to provide all customer
service, order processing and fulfillment services with respect to the sale of
Sporting Goods and Services through such kiosks. Sales resulting from orders
entered through kiosks on the TSA.com Site will be sales of Licensee included in
Net Revenues and, for purposes of Exhibit E, Licensor-Generated Net Revenues.
                                  ---------

Section 10. Group and Team Sales.

         During the Term and in the Territory, Licensee has the exclusive right
to make group and team sales on behalf of Licensor through the Internet. Nothing
in the preceding sentence shall limit Licensor's ability to make group and team
sales on its own behalf other than through the Internet. Licensor agrees that it
will integrate the URL and shop-on-line message for group and team sales through
the TSA.com Site into its TSA Stores group and team sales efforts, consistent
with its obligations set forth on Exhibit "J" attached hereto.

Section 11. Compensation and Expenses

11.1 General. Except as expressly provided for elsewhere in this Agreement, each
Party will be responsible for all costs and expenses incurred by such Party in
performing its obligations under this Agreement.

11.2 Royalty Payments, Reports.

                                       25

<PAGE>

     (a) Within forty-five (45) days after the end of each quarter of Licensee's
         Fiscal Year, Licensee shall:

         (i)   Deliver to Licensor a report, certified by its chief financial
         officer, giving the following particulars concerning Net Revenues and
         corresponding Royalties that accrued during the preceding quarter of
         Licensee's Fiscal Year, together with [*]

         (A)   Net Revenues derived from sale of Sporting Goods and
               Services other than for which Licensee is required to pay a
               revenue share, impressions fee, cost-per-click fee, or other
               promotional or advertising fee;

         (B)   Net Revenues derived from sale of Sporting Goods and
               Services for which Licensee is required to pay a revenue
               share, impressions fee, cost-per-click fee, or other
               promotional or advertising fee;

         (C)   Net Revenues derived from the sale of Sporting Goods and
               Services to Customers who access the TSA.com Site from
               kiosks in TSA Stores, and the Operating Profit from such
               Kiosk sales;

         (D)   Net Revenues of the TSA Site derived from all other sources;

         (E)   Amount of Royalties due to Licensor with respect to the TSA
               Site itemized with respect to items (A) through (D) above;
               and

         (F)   Amount of tax of any kind properly withheld and/or paid to
               tax authorities by Licensee.

         (ii)  Pay: (A) the Royalties to TSAMI; and (B) all other payments due
         hereunder to TSA. Payments made in respect of the fourth quarter of
         each of Licensee's Fiscal Years shall be subject to subsequent
         adjustment, as necessary, to reflect the results of the independent
         auditor's report required by subsection (c) below. Subject to the
         limitations set forth in Section 11.3(b), receipt or acceptance of any
         report or payment shall not preclude Licensor from questioning the
         correctness thereof at any time. In the event that any inconsistency or
         mistake is discovered by either Licensor or Licensee in such reports,
         it shall be promptly rectified and, within fifteen (15) Business Days,
         the appropriate report shall be delivered by the Party with the duty to
         report.

     (b) Disputes. Time is of the essence with respect to Licensee's duty to
pay all Royalties which are not subject to a good faith dispute when due and
such payments are not subject to set-off. If either Party shall dispute the
correctness of any payment due hereunder, it shall give written notice of the
dispute and claimed amount to the other Party. The Party receiving such notice
shall have ten (10) Business Days to investigate and respond (the "Payment
Notice Period"). At the end of the Payment Notice Period, if no dispute remains,
or if part of the

                                       26

<PAGE>

claimed amount is no longer in dispute, all, or that part that is undisputed,
shall be promptly paid. However, if all or part of the claimed amount remains in
dispute at the end of the Payment Notice Period the Parties shall confer and
attempt in good faith to resolve the dispute. When the disputed amount is
ultimately paid, the Party which owes the claimed amount shall promptly pay all
or that part of the claimed amount which remains unpaid and is due to the
complaining Party, together with interest at the annual rate of prime plus two
percent (2%), and computed from the date when the underlying payment was first
due.

     (c) Within ninety (90) days after the end of each Fiscal Year of Licensee,
Licensee shall furnish to Licensor a report certified by its chief financial
officer as to the accuracy of Licensee's Royalty payments and reports for each
such Fiscal Year.

11.3 Records and Audit.

     (a) During the Term of this Agreement, and for a period of three (3) years
thereafter, each party will keep true, complete and accurate books and records
(and in the case of Licensee, Databases, subject to Section 7.3) sufficient to
verify Licensee's compliance or non-compliance with the provisions of this
Agreement. All financial records shall be maintained in conformance with
generally accepted accounting principles in effect in the United States.
Licensee's books and records shall be sufficient to accurately reflect the
business of the TSA.com Site, the Net Revenues as provided for hereunder and the
transactions contemplated hereunder. The books and records required to be
maintained hereunder shall be kept at the applicable Party's principal place of
business and shall be available for inspection by the other Party, upon
reasonable prior notice and during normal business hours.

     (b) Upon reasonable notice to Licensee, during the Term and for a period of
three (3) years after expiration or termination of this Agreement, Licensor,
and/or its independent certified public accountants, may audit all books,
records and Databases (subject to Section 7.3) related to the TSA.com Site
provided for in this Agreement to verify Licensee's compliance or non-compliance
with the provisions of this Agreement. Any such audit: (a) shall be conducted
during normal business hours and in a manner designed to not unreasonably
interfere with Licensee's ordinary business operations; and (b) may not occur
more frequently than once every twelve (12) months, unless an audit shows a
material discrepancy, then no more frequently than once every six (6) months
until such time as the results of an audit no longer show a material discrepancy
and (c) may only cover the period commencing after the period covered by the
last audit conducted pursuant to this Section 11.3; provided, however, such
limitation shall not prevent the review of information related to a prior audit
to the extent such information is necessary to conduct a subsequent period audit
hereunder. Licensee will cooperate with Licensor in the conduct of such audit.
Any error(s) discovered in an audit shall be corrected by Licensee within
fifteen (15) Business Days after having been notified of any such error by such
auditor. If an audit of Licensee's books and records reveals that Licensee has
failed properly to account for and pay any monies owing to Licensor and the
amount of any monies which Licensee has failed properly to account for and pay
for any quarter exceeds, by [*] percent [*] or more, the monies actually
accounted for and paid to Licensor for such period, Licensee shall, in addition
to paying Licensor such past due monies (which shall be payable by Licensee
without reference to the [*]

                                       27

<PAGE>

threshold), reimburse Licensor for its reasonable out-of-pocket expenses
incurred in conducting such audit, together with interest on the overdue monies
owed as computed under Section 11.2(b) (and subject to the dispute resolution
process set forth in the same section).

Section 12.  Customer Information and Privacy Policy

12.1 Customer Information. Licensor and Licensee shall each have an equal and
undivided ownership interest in and to all Customer Information. Licensor may
use, subject to Section 12.2 and Section 16.1, the Customer Information to
advertise, promote and operate the TSA Stores and for any other lawful purpose.
Licensor will provide Licensee with information reasonably requested by Licensee
relating to customers of the TSA Stores so that Licensee may provide marketing
and promotions to such customers with respect to the TSA.com Site. Each party
will coordinate with the other party all email and other electronic
communications to Licensor's customers. Subject to Section 17.9(b), Licensee may
use such Customer Information only to design, develop, operate, maintain, and
promote the TSA.com Site and as may be necessary to perform its obligations
under this Agreement. Subject to Section 17.9(b), each Party will treat such
Customer Information as Confidential Information of Licensor. Subject to Section
17.9(b), Licensee shall not furnish, rent, sell or otherwise disclose Customer
Information to any Person whatsoever without the prior written consent of
Licensor, which Licensor may withhold as it sees fit, except that Licensee may
temporarily furnish, subject to the Privacy Policy for the TSA.com Site, such
Customer Information as is necessary for Licensee or any Person with which
Licensee contracts to perform fulfillment, credit card or check transactions,
email broadcasts and similar Customer activities required of Licensee hereunder.
For those Customers directed to the TSA.com Site by or through the Advertising
and Marketing Partners of Licensee, the Parties' ownership of the resulting
Customer Information as provided for hereunder shall apply to all Customer
Information collected from Customers of the TSA.com Site, but shall not preclude
the Advertising and Marketing Partners of Licensee from owning the same
information to the extent it is generated independently of the TSA.com Site.

12.2 Privacy Policy. With respect to Customer Information collected in
connection with the TSA.com Site, each Party will abide by the privacy policy
currently posted on the TSA.com Site, as it may be amended from time to time.
Except as provided pursuant to Section 17.9(b), any amendments to such privacy
policy must be agreed upon by the Parties; provided, however, that if any
amendment to the privacy policy is required by applicable law, the privacy
policy will be amended to comply with such requirements. Unless the Parties
otherwise agree, the privacy policy shall provide that neither party may
furnish, rent, sell or otherwise disclose Customer Information to any third
party other than those permitted pursuant to such privacy policy, provided that
such privacy policy shall also provide that Licensor may use such Customer
Information to advertise and promote the TSA Stores, Licensor's goods and
services, and the direct sales or mail order catalog, team/group sales and kiosk
businesses of Licensor. With respect to any customer information collected by
Licensor in the TSA Stores and furnished to Licensee, Licensee agrees to abide
by the terms of Licensor's privacy policy for the TSA Stores; provided that such
privacy policy for the TSA Stores shall permit Licensee to use such data to send
e-mail promotions to such customers for the exclusive benefit of the TSA.com
Site.

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<PAGE>

12.3 Financial Information. Each Party will have an equal and undivided
ownership interest in Financial Information except that all use of the Financial
Information by any of them shall always be subject to the restrictions set forth
herein. Each Party will treat such Financial Information as Confidential
Information of the other Party hereunder, except that each Party may incorporate
such Financial Information as is reasonably necessary to prepare and report
aggregate financial results or to comply with any applicable reporting
requirement imposed by governmental agencies.

12.4 Delivery of Customer Information and Financial Information to Licensor.
From time to time, upon Licensor's reasonable request, Licensee shall provide to
Licensor any or all of the Customer Information or the Financial Information, as
Licensor shall specify, including the following information:

     (a) Customers' names;
     (b) Customers' addresses;
     (c) Customers' phone numbers;
     (d) Customers' e-mail addresses;
     [*]
Licensee shall use commercially reasonable efforts to make the information in
items [*] Licensee shall furnish the information described in items [*] Licensee
shall provide the Customer Information and/or Financial Information to Licensor
in a commercially standard format, either via diskette, CD-ROM, electronically,
or via another mutually agreeable method. Licensee shall use commercially
reasonable efforts so that the Customer Information and Financial Information
provided to Licensor accurately and completely reflects the Customer Information
and Financial Information from the TSA.com Site (except that Licensee shall not
be responsible for the truth or accuracy of any data supplied directly by any
Customers).

Section 13.  Representations and Indemnification

13.1 Representations. Each Party represents and warrants to the other that: (a)
it is a corporation, validly existing and in good standing under the laws of the
jurisdiction of its incorporation; (b) it has the full corporate right, power
and authority (pursuant to its Articles of Incorporation, Bylaws and applicable
laws) to enter into this Agreement and perform its obligations hereunder; (c)
its execution, delivery and performance of this Agreement, and the other Party's
exercise of such other party's rights under this Agreement, will not conflict
with or result in a breach or violation of any of the terms or provisions or
constitute a default under any material agreement by which it is bound; and (d)
when executed and delivered, this Agreement will constitute its legal, valid and
binding obligation enforceable against it in accordance with its terms.

13.2 Indemnity.

     (a) Licensee will defend, indemnify and hold harmless Licensor and its
Affiliates (and their respective employees, officers, directors and
representatives) from and against any and all claims, costs, losses, damages,
judgments and expenses (including reasonable attorneys' fees)

                                       29

<PAGE>

arising out of any action, claim, proceeding or lawsuit (a "Claim" or "Claims")
asserted by any Person other than Licensor or an Affiliate of Licensor to the
extent that it is based upon: (i) any actual or alleged breach of
representations, warranties or obligations of Licensee set forth in this
Agreement; (ii) any actual or alleged infringement or misappropriation of
Intellectual Property Rights of any Person other than Licensor, including,
without limitation, Claims of misrepresentation, false advertising or unfair
competition or violation of rights of privacy; (iii) subject to the last
sentence of this Section 13.2(a), any Claims of product liability, property
damage, personal injury or death relating to any Sporting Goods or Services sold
by Licensee hereunder, except with respect to products manufactured by or on
behalf of Licensor; (iv) Claims of violation of any applicable law, treaty, rule
or regulation relating to the Sporting Goods or Services offered by Licensee,
the TSA.com site, or the Web Sites of any Advertising and Marketing Partner of
Licensee, including, without limitation, any failure to file, report or pay any
applicable tax; and (v) Claims based upon the offer, advertising, marketing,
distribution or sale of Sporting Goods or Services by Licensee or any
Advertising or Marketing Partner of Licensee, except for product liability
Claims. Notwithstanding the foregoing, aside from negligent implementation of
its own related activities, Licensee shall not bear any indemnification duty
hereunder with respect to (i) any advertising or promotional program or project
initiated by Licensor and directed at the TSA Stores, or (ii) TSA Content
provided by Licensor. Subject to Section 13.3, Licensee will pay any award
against Licensor and its Affiliates (and their respective employees, officers,
directors or representatives) and any costs and attorneys' fees reasonably
incurred by them resulting from any such Claim. Notwithstanding the foregoing,
to the extent Licensee defends, indemnifies and holds harmless Licensor with
respect to product liability Claims as provided herein, Licensor hereby
transfers and assigns to Licensee all claims and rights Licensor may have
against any Person related to any such product liability Claims.

     (b) Licensor will defend, indemnify and hold harmless Licensee and its
Affiliates (and their respective employees, officers, directors and
representatives) from and against any and all Claims asserted by any Person
other than Licensee or an Affiliate of Licensee to the extent that it is based
upon: (i) any actual or alleged breach of representations, warranties or
obligations of Licensor set forth in this Agreement; (ii) any actual or alleged
infringement or misappropriation concerning the Licensed Property in the United
States, Japan or Canada and other countries within the Territory in which (a)
the Licensee has a duty pursuant to Section 2.1(c)(ii) of this Agreement, or (b)
the Licensor has requested Licensee to provide services and in which Licensee
has agreed to do so, provided, however, that Licensor shall not bear any duty,
obligation or liability pursuant to this Section 13.2(b) to the extent that
Licensee uses the Licensed Property beyond the scope of any rights granted to
Licensee under this Agreement or otherwise agreed to by Licensor, and such
extended use is the primary cause of such actual or alleged infringement or
misappropriation; (iii) Claims based upon Licensor's advertising and promotional
activities as performed hereunder or otherwise in connection with the TSA
Stores, and (iv) Claims of violation of any applicable law, treaty, rule or
regulation relating to the TSA Stores or the products and services offered by
Licensor,. Notwithstanding the foregoing, Licensor shall not bear any
indemnification duty with respect to Licensee's negligent implementation of its
activities hereunder. Subject to Section 13.3, Licensor will pay any award
against Licensee and its Affiliates (and their respective employees, officers,
directors or

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<PAGE>

representatives) and any costs and attorneys' fees reasonably incurred by them
resulting from any such Claims.

13.3 Procedure. In case any Claim is at any time brought against a Party or its
Affiliates (or any of their respective employees, officers, directors or
representatives) (an "Indemnified Party") and such Indemnified Party is entitled
to indemnification pursuant to Section 13.2, the party obligated to provide such
indemnification (the "Indemnifying Party") will defend such Claim, at the sole
expense of the Indemnifying Party, using counsel selected by the Indemnifying
Party but subject to the Indemnified Party's reasonable approval. If the
Indemnifying Party fails to take timely action to defend such a Claim after
having received written notice from the Indemnified Party of such failure, the
Indemnified Party may defend such a Claim at the Indemnifying Party's expense.
The Indemnifying Party will keep the Indemnified Party fully advised with
respect to such Claims and the progress of any suits, and the Indemnified Party
shall have the right to participate, at the Indemnified Party's expense, in any
suit instituted against it and to select attorneys to defend it, which attorneys
will be independent of any attorneys chosen by the Indemnifying Party relating
to such Claim or related claim. The Indemnifying Party will not settle,
compromise or otherwise enter into any agreement regarding the disposition of
any Claim against the Indemnified Party without the prior written consent and
approval of the Indemnified Party. The obligations of the Indemnifying Party
pursuant to this Section 13 shall survive expiration or earlier termination of
this Agreement.

Section 14.  Reporting

14.1 Reports Concerning Royalties and Financial Performance. In addition to the
reports required by Section 11.2, Licensee shall provide to Licensor [*]
business review reports ("Business Review Reports") which shall include with
respect to the TSA.com Site: [*]

14.2 Reports Concerning [*] of Licensee. The Parties will work in good faith to
develop methods for Licensee to track, [*] Notwithstanding the foregoing,
Licensee shall, to the extent in Licensee's reasonable control, provide Licensor
with [*]

14.3 Reports Concerning the TSA.com Site [*]. As part of the Business Review
Reports required pursuant to Section 14.1, Licensee shall [*] Upon the request
of Licensor, Licensee shall provide Licensor with [*]

14.4 Additional Reports. From time to time during the Term, Licensee shall
provide to Licensor such additional reports as may be reasonably requested by
Licensee, bearing in mind the information which is readily available to
Licensee, the reports which Licensee may have formatted already, the frequency
of such requests, and the burden that designing and furnishing new reports would
place upon Licensee.

Section 15.  Disclaimers and Limitations

15.1 DISCLAIMER OF WARRANTIES. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT,
NEITHER PARTY MAKES, AND EACH PARTY HEREBY WAIVES

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AND DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES REGARDING THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OR IMPLIED
WARRANTIES ARISING OUT OF COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF
TRADE.

     15.2 LIMITATION OF DAMAGES. EXCEPT TO THE EXTENT AWARDED TO A THIRD PARTY
IN A JUDGMENT AGAINST WHICH A PARTY IS ENTITLED TO INDEMNIFICATION PURSUANT TO
SECTION 13 OR TO THE EXTENT ARISING OUT OF AN INTENTIONAL MATERIAL BREACH OF
THIS AGREEMENT, NEITHER PARTY WILL BE LIABLE (WHETHER IN CONTRACT, WARRANTY,
TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHER THEORY), TO THE OTHER
PARTY OR ANY OTHER PERSON OR ENTITY FOR COST OF COVER OR FOR ANY INDIRECT,
INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES (INCLUDING DAMAGES FOR
LOSS OF PROFIT, BUSINESS OR DATA) ARISING OUT OF THIS AGREEMENT. IN NO EVENT
SHALL ANY PARTY BE LIABLE TO THE OTHER FOR ANY PUNITIVE DAMAGES, EVEN IN CASES
OF INTENTIONAL MATERIAL BREACH, EXCEPT TO THE EXTENT AWARDED TO A THIRD PARTY.

Section 16.   Exclusivity.

16.1 Licensor. Subject to Sections 2.5(a)(ii) and 16.4, during the Term and
throughout the Territory, Licensee will be the exclusive provider of all
services necessary to create and operate the Sporting Goods Internet businesses
of Licensor and/or its Affiliates and neither Licensor nor its Affiliates shall,
directly or indirectly through one or more third parties, offer, market or sell
Sporting Goods and/or related services on or through the Internet and neither
Licensor nor its Affiliates shall assist any third party in the offering,
marketing and/or selling of Sporting Goods and/or related services on or through
the Internet (the "Restricted Business"). If Licensor or any of its Affiliates
desires to engage in any Restricted Business during the term of this Agreement,
it shall only do so through Licensee and such business shall be conducted by
Licensee on the terms and conditions set forth in this Agreement.
Notwithstanding the foregoing, [*] Nothing in this provision shall prevent
Licensor, or any entity that acquires all or substantially all of the
outstanding stock or assets of Licensor, from engaging in any activities other
than the Restricted Business.

16.2 Licensee. Licensee agrees that the TSA.com Site shall not be used directly
or indirectly by Licensee to advertise or promote any TSA Competitor, GSI
Partner or GSI Venture, or to click-through to the Web Site of any TSA
Competitor, GSI Partner or GSI Venture. The foregoing limitation shall not be
deemed to restrict Licensee from advertising or promoting any merchandise vendor
on the TSA.Com Site in connection with the sale of such vendor's products
through the TSA.Com Site.

16.3 Hiring. During the Term, neither Party will, directly or indirectly,
solicit or hire or attempt to solicit or hire: (i) any existing employees, or
(ii) former employees who have worked for the other Party at any time during the
preceding 12 months, without the prior written approval

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<PAGE>

of such other Party. Nothing herein shall prevent a Party from hiring an
employee or former employee of the other Party who responds to a public
advertisement for employment.

16.4 Territory Regarding Internet.

     (a) Orders from the TSA.com Site may be delivered to Customers only within
the Territory.

     (b) If, at any time after the Effective Date, Licensor decides to establish
TSA Stores in a country within the Territory other than the United States,
Canada or a country in which Licensee is "then operating an e-commerce Sporting
Goods business on behalf of Licensor" (as defined below) (a "New Country"),
either on its own or through a third party, then the following procedures will
apply. Licensor shall notify Licensee of its intention within a reasonable time
after its decision, but in no event less than 180 days before the date Licensor
plans to open TSA Stores for business in such country, and shall provide
Licensee with all information on its business plans (including the projected
date for opening the first TSA Store in the New Country and projected product
assortments) relating thereto, both initially and on an updated basis until 30
days before the deadline for Licensee's notice to Licensor provided for in the
next sentence, and Licensor shall deliver to Licensee a written term sheet (the
"Term Sheet") setting forth the terms and conditions on which Licensor proposes
that Licensee operate the e-commerce Sporting Goods business on behalf of
Licensor in such New Country. Licensee shall have the right (the "New Country
Right"), exercisable by written notice to Licensor within 90 days ("Licensee's
Notice Period") after such notice from Licensor, to operate the e-commerce
Sporting Goods business on behalf of Licensor in such New Country in accordance
with this following.

     (c) If, prior to the end of Licensee' Notice Period, Licensee does not
exercise its New Country Right or Licensee and Licensor cannot agree upon the
terms and conditions on which Licensee will operate the e-commerce Sporting
Goods business on behalf of Licensor in such New Country, then Licensor shall
have the right to offer to a third party the opportunity to operate the
e-commerce Sporting Goods business on behalf of Licensor in such New Country;
provided that the terms and conditions that Licensor offers to such third party
shall not be materially more favorable to such third party than the terms and
conditions offered by Licensor to Licensee in the latest Term Sheet delivered by
Licensor to Licensee; and provided further that if (i) within 180 days after the
end of Licensee's Notice Period, Licensor is unable to enter into a legally
binding agreement with a third party in accordance with such terms and
conditions, (ii) within 360 days after the end of Licensee's Notice Period, such
third party is not "then operating an e-commerce Sporting Goods business on
behalf of Licensor" in such New Country or Licensor has not opened for business
in such New Country a TSA Store, or (iii) Licensor and such third party
subsequently modify the terms and conditions of their agreement to make them
materially more favorable to such third party than the terms and conditions
offered by Licensor to Licensee in the latest Term Sheet or after "then
operating an e-commerce Sporting Goods business on behalf of Licensor" in such
New Country, such third party ceases to do so for a period exceeding 30 days,
then in the case of any of (i), (ii) or (iii), Licensor shall not establish an
e-commerce Sporting Goods business in such New Country without again complying
with the procedures set forth in this Section 16.4. If Licensee does not
exercise its New Country Right in

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<PAGE>

accordance with this Section 16.4, then the Territory of this Agreement will be
deemed to exclude the New Country commencing with the first day that the third
party is "then operating an e-commerce Sporting Goods business on behalf of
Licensee" in such New Country and continuing for so long as Licensor is not
required to again comply with the procedures set forth in this Section 16.4.

     (d) If, prior to the end of Licensee's Notice Period, Licensee notifies
Licensor that it is exercising its New Country Right, then (i) within 180 days
after the end of Licensee's Notice Period, Licensee will establish a Web Site in
the principal language and currency of such New Country that is accessible to
customers in such New Country and the capability to ship Sporting Goods to
customers in such New Country with competitive fulfillment charges to the
customers, and (ii) within 360 days after the end of Licensee's Notice Period,
Licensee will offer on such Web Site an assortment and selection of Sporting
Goods similar to that found in the TSA Stores in such New Country or, if no TSA
Stores are open for business in such New Country, similar to that offered on the
TSA.com Site; provided, however, that Licensee will not be required to offer on
such Web Site any Sporting Goods that Licensee is prohibited from offering by
the manufacturer, licensor or licensee of such products.

     (e) If Licensor decides to establish TSA Stores in a country in the
Territory in which Licensee is "then operating an e-commerce Sporting Goods
business on behalf of Licensor", then the Territory of this Agreement will
continue to include such country; provided that within 360 days after the first
TSA Store opens for business in such country, Licensee shall offer on the Web
Site for such country an assortment and selection of Sporting Goods similar to
that found in the TSA Stores in such country; provided, however, that Licensee
will not be required to offer on such Web Site any Sporting Goods that Licensee
is prohibited from offering by the manufacturer, licensor or licensee of such
products. If Licensee, within thirty (30) days after written notice from
Licensor, does not offer the assortment and selection of Sporting Goods as
required in the preceding sentence, then the Territory of this Agreement will be
deemed to exclude such country.

     (f) For the purposes of this Section 16.4, a Person will be considered to
be "then operating an e-commerce Sporting Goods business on behalf of Licensor"
in a country if such Person (i) has established a Web Site in the principal
language and currency of such country that is accessible to customers in such
country and that uses Licensor's or its Affiliate's trademarks or trade names,
(ii) offers on such Web Site an assortment and selection of Sporting Goods
similar to that found in the TSA Stores in such country or, if there are no TSA
Stores in such country, the TSA Stores in the United States, and (iii) has
shipped more than a de minimis amount of Sporting Goods to customers in such
country.

Section 17.  Term and Termination

17.1 Term. The Term of this Agreement will commence on the Effective Date and,
unless earlier terminated as provided herein, will automatically terminate on
November 8, 2019.

17.2 Licensor Termination. Subject to Section 17.4, Licensor shall be entitled
to terminate this Agreement immediately upon written notice to Licensee: (a) if
Licensee or Global Sports

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<PAGE>

becomes insolvent, admits in writing its inability to pay debts as they mature,
institutes or has instituted against it any bankruptcy, reorganization, debt
arrangement, assignment for the benefit of creditors, or other proceeding under
any bankruptcy or insolvency law or dissolution, receivership, or liquidation
proceeding (and, if such proceeding is instituted against it, such proceeding is
not dismissed within sixty (60) days); (b) if Licensee shall fail to make any
payments, which are not subject to a good faith dispute, promptly when due or to
deliver any reports as required hereunder; (c) if Licensee otherwise breaches in
any manner the terms of this Agreement; or (d) if Global Sports breaches its
obligations under Section 2.6 [*] of this Agreement.

17.3 Licensee Termination. Subject to Section 17.4, Licensee shall be entitled
to terminate this Agreement immediately upon written notice to Licensor: (a) if
Licensor becomes insolvent, admits in writing its inability to pay debts as they
mature, institutes or has instituted against it any bankruptcy, reorganization,
debt arrangement, assignment for the benefit of creditors, or other proceeding
under any bankruptcy or insolvency law or dissolution, receivership, or
liquidation proceeding (and, if such proceeding is instituted against it, such
proceeding is not dismissed within sixty (60) days); or (b) if Licensor
otherwise breaches in any manner the terms of this Agreement.

17.4 Notice, Cure. Except as provided below, in the event of breach by Licensee
or Global Sports (as applicable) of any provision of this Agreement as provided
in 17.2(b), (c) or (d), or by Licensor of any provision of this Agreement as
provided in 17.3(b), the non-breaching Party shall give the breaching Party
notice in writing to cure the breach within sixty (60) days (the "Notice
Period"), and if the breach is not cured within such period, the non-breaching
Party shall be entitled to exercise any remedies it may have hereunder, in law
or equity, including, without limitation, its right to terminate this Agreement
effective upon expiration of the Notice Period, provided however, that if such
breach is capable of being cured but incapable, by reason of its nature, of
being cured within the Notice Period, the non-breaching Party may not terminate
this Agreement so long as the breaching Party continues diligently to attempt to
cure such breach and such breach is cured within an additional sixty (60) day
period. Notwithstanding the foregoing, Licensor shall be deemed to have cured a
breach premised upon failure to comply with any of its obligations set forth in
Exhibit J in an applicable measurement period by fully complying with such
---------
obligation in the first full measurement period after notice of default is
received, and Licensee shall be deemed to have cured a breach premised upon
failure to achieve any standard set forth in [*]in an applicable measurement
period by achieving the standard in the first full measurement period after
notice of default is received.

17.5 Termination by Mutual Agreement. This Agreement may be terminated at any
time by mutual written agreement of the Parties.

17.6 Survival of Obligations. Expiration or termination of this Agreement for
any reason shall not affect obligations which (i) have accrued as of the date of
expiration or termination, (ii) arise out of occurrences prior to the
termination date, (iii) become effective upon termination or (iv) by their terms
continue after termination.

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<PAGE>

17.7 Post-Termination Process. Upon termination of this Agreement, the Parties
shall mutually cooperate to effect an orderly termination of their relationship
as Licensor and Licensee, and Licensee shall within thirty (30) days:

     (a) Return to Licensor (or destroy) all TSA Content and Materials, to the
extent that such Materials contain Licensed Property, in its possession and
control, cease using and cause all Advertising and Marketing Partners of
Licensee to cease using the Licensed Property in any manner and for any purpose,
and take all steps necessary to delete any and all references to any Licensed
Property from its business licenses, permits, business forms, packaging, labels,
advertisements, promotions and other Materials;

     (b) Upon reasonable request of Licensor, furnish sworn affidavits attesting
to compliance with subsection (a);

     (c) Cease holding itself out as a licensee of Licensor or as an entity
otherwise authorized or permitted to use (or to sublicense others to use) the
Licensed Property; and

     (d) Cooperate with Licensor at Licensor's expense in obtaining the
cancellation of any registration of this Agreement and amendment or cancellation
of any registered user agreements and corporate, domain name, business name or
like registrations relating to the Licensed Property. Licensee, upon Licensor's
written request and at Licensor's expense, shall execute all such documents as
may be necessary to fulfill this provision. If Licensee shall fail to execute
any such documents within thirty (30) days after Licensor's request, Licensee
hereby confirms that Licensor shall automatically be considered Licensee's
attorney-in-fact solely for the purpose of executing such documents pursuant to
this Section 17.7(d).

     (e) Notwithstanding the foregoing, upon termination or expiration of this
Agreement for any reason, Licensee shall have, for a period of 180 days
thereafter, the right to sell off, on a nonexclusive basis, all of the unsold
Private Label Merchandise in Licensee's inventory that was on hand prior to such
termination or expiration.

17.8 Injunctive Relief. Subject to section 17.7(e) above, should Licensee fail
to cease using any Licensed Property upon termination of this Agreement,
Licensor may obtain, and Licensee hereby consents to a decree of any court of
competent jurisdiction ordering Licensee to immediately cease the use of the
Licensed Property and to otherwise comply with Section 17.7 above, to amend or
cancel any registration of this Agreement and any registered user agreements and
to amend or cancel any corporate or business name registrations and to change
its business name accordingly. Licensee's consent to this remedy is based upon
express recognition by Licensee that Licensor would otherwise suffer irreparable
harm and that monetary damages would therefore be an inadequate remedy for
Licensor.

17.9 Effect of Bankruptcy or Failure to Perform.

     (a) Within forty-five (45) days from the Effective Date and throughout the
remaining Term of this Agreement, [*]

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<PAGE>

     [*]

Section 18. [*]

Section 19. Miscellaneous

19.1 Press Releases. All voluntary public announcements concerning the
transactions contemplated by this Agreement will be mutually acceptable to both
Licensor and Licensee. Unless required by law, neither Party will make any
public announcement or issue any press release concerning the transactions
contemplated by this Agreement without the prior consent of the other Party.
With respect to any announcement that any of the Parties is required by law to
issue, such Party shall, to the extent possible under the circumstances, review
the necessity for and the contents of the announcement with the other Party
before issuing the announcement; provided, however, if either Party cannot
obtain the consent of the other Party in a timely manner after submission of a
request for consent, the Party required to comply with law may issue the press
release or public announcement without obtaining the consent of the other Party.
Notwithstanding the preceding sentences in this Section 19.1, after the initial
public announcement of a particular matter or transaction contemplated by this
Agreement has been approved by the Parties, either Party's subsequent reference
to that particular matter or transaction will not require another approval from
the other Party.

19.2 No Partnership, Joint Venture or Agency. The Parties are entering this
Agreement as independent contractors, and this Agreement will not be construed
to create a partnership, joint venture, agency or employment relationship
between them. Neither Party will represent itself to be an employee or agent of
the other or enter into any agreement or legally binding commitment or statement
on the other's behalf of or in the other's name. Further, each Party shall be
completely responsible for the payment of all sums of money which may be due at
any time to its own employees, contractors, vendors, agents and representatives,
and for all other claims made by such Persons against another Party. No Party
shall for any reason be liable under this Agreement in any way for another
Party's termination of employment or other relationships with such Persons.

19.3 Confidentiality. (a) Each Party will protect the Confidential Information
of the other Party from misappropriation and unauthorized use or disclosure, and
at a minimum, will take precautions at least as great as those taken to protect
its own Confidential Information of a similar nature. Without limiting the
foregoing, the receiving Party will (i) use such Confidential Information solely
for the purposes for which it has been disclosed; and (ii) disclose such
Confidential Information only to those of its employees, agents, attorneys,
auditors, consultants, and others who have a need to know the same for the
purpose of performing this Agreement and who are informed of and agree to a duty
of nondisclosure (it being understood that each Party will remain liable with
respect to disclosure by its employees, agents, attorneys, auditors,
consultants, and others who have been provided by Confidential Information by
such Party). Further, the receiving Party will use, and cause its employees,
agents, attorneys, auditors, consultants, and others who have a need to know the
same for the purpose of performing this

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<PAGE>

Agreement to use such Confidential Information solely for the purposes for which
it has been disclosed. Further, the receiving Party may also disclose
Confidential Information of the disclosing Party to the extent necessary to
comply with applicable law or legal process, provided that the receiving Party
uses reasonable efforts to give the disclosing Party prompt advance notice
thereof. Upon request of the other Party, or in any event upon any termination
or expiration of the Term, each Party will return to the other all materials, in
any medium, which contain, embody, reflect or reference all or any part of any
Confidential Information of the other Party.

     (b) Neither Party will disclose this Agreement or the transactions
contemplated herein, or make any filing of this Agreement or other agreements
relating to the transactions contemplated herein, without the consent of the
other. If either Party reasonably determines that such disclosure is required by
applicable law, such Party shall be entitled to make such disclosure but will
first use all reasonable efforts to coordinate the disclosure with the other
Party, including the submission to the Securities and Commission (and any other
applicable regulatory or judicial authority) of an application for confidential
treatment of certain terms (which terms will be agreed upon by the Parties) of
this Agreement. Each Party will provide to the other for review a copy of any
proposed disclosure of this Agreement or its terms and any application for
confidential treatment prior to the time any such disclosure or application is
made, and the parties shall work together to mutually approve such disclosure or
application.

     (c) If either Party is required to disclose Confidential Information
hereunder, but such disclosure is prohibited by confidentiality and
non-disclosure provisions contained in any agreement between a Party and any
third party such Party shall not be obligated to disclose such Confidential
Information; provided, however, that Party shall use commercially reasonable
efforts to secure a waiver from such third party and to make the disclosure
required hereunder.

19.4 Force Majeure. If either Party is unable to perform any of its obligations
under this Agreement due to an event wholly beyond the control of that Party,
including natural disaster, acts of God, actions or decrees of governmental
bodies, act of war, failure or discontinuance of the Internet or failure of
third party communications lines or networks, that Party will give written
notice to the other Party and will use commercially reasonable efforts to resume
performance of its obligations but will have no liability to the other Party for
failure to perform its obligations under this Agreement for so long as it is
unable to do so as a result of such event.

19.5 Compliance with Laws. In its performance of this Agreement, each Party will
comply in all material respects with all applicable laws, rules, regulations,
orders and other requirements, now or hereafter in effect, of governmental
authorities having jurisdiction over this Agreement, the TSA.com Site, or the
transactions contemplated herein, including compliance with export and import
control laws, applicable consumer protection, content labeling, country of
origin, health and safety laws, and privacy laws, and obtaining, at the
applicable Party's own expense, any and all approvals, licenses, business
registrations and/or permits required under the laws or regulations of such
governmental authority.

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<PAGE>

19.6  Insurance. Each Party will at its own expense obtain and maintain such
policy or policies of insurance as are required by law or as are commercially
reasonable for the transactions and business contemplated by this Agreement. In
addition, Licensee will obtain and maintain, with an insurer in good standing
and authorized to do business under the laws of the states where performance
shall occur, a comprehensive general liability policy, naming Licensor as an
additional insured, including contractual liability and products liability, with
broad form property damage and bodily injury (including personal injury)
coverage. The minimum limits for each shall be [*] per occurrence and [*] annual
aggregate. Such limits shall be adjusted by mutual agreement of the Parties from
time to time to reflect inflation and loss experience. Upon request from
Licensor, Licensee will furnish a certificate of insurance and such other
documentation relating to such policy as reasonably requested. Such certificate
of insurance shall provide that no change that would adversely affect Licensor
or cancellation of insurance shall be made without thirty (30) days prior notice
to Licensor.

19.7  Notices. Unless otherwise provided, all notices, consents or other
communications required or permitted to be given under this Agreement must be in
writing and shall be deemed to have been duly given (a) when delivered
personally, (b) three business days after being mailed by first class mail,
postage prepaid, or (c) one business day after being sent by a reputable
overnight delivery service, postage or delivery charges prepaid, to the Parties
at their respective addresses stated on the signature page of this Agreement.
Notices may also be given by electronic mail or facsimile and shall be effective
on the date transmitted if confirmed within 24 hours thereafter by a signed
original sent in the manner provided in the preceding sentence. Notices to
Licensee shall be sent to its address stated on the signature page of this
Agreement to the attention of the General Counsel, with a copy sent
simultaneously to the same address to the attention of its Chief Financial
Officer. Notices to TSA shall be sent to its address stated on the signature
page of this Agreement to the attention of the Chief Executive Officer, with a
copy sent simultaneously to the General Counsel. Notices to TSAMI shall be sent
to its address stated on the signature page of this Agreement to the attention
of the General Counsel. All notices to Licensor hereunder shall be sent to both
TSA and TSAMI. Any party may change its address for notice and the address to
which copies must be sent by giving notice of the new addresses to the other
parties in accordance with this Section 19.7, except that any such change of
address notice shall not be effective unless and until received.

19.8  Prohibition on Assignment. Neither party may assign any of its rights or
obligations under this Agreement without the prior written consent of the other
party, which consent may be withheld if, in the judgment of the other party,
such assignment would have an adverse effect on it. The licenses granted herein
may not be mortgaged or pledged by the applicable licensee without the prior
written consent of the applicable licensor.

19.9  Amendment. Except as otherwise provided herein, this Agreement may only be
amended, modified or supplemented by the Parties in writing and signed by
authorized officers of the Parties.

19.10 Waiver. Silence, acquiescence or inaction shall not be deemed a waiver of
any right. No waiver by a Party with respect to this Agreement will be effective
or enforceable against the other

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<PAGE>

Party unless in writing and signed by the other Party. Except as otherwise
expressly provided herein, no failure to exercise, delay in exercising, or
single or partial exercise of any right, power or remedy by a Party, and no
course of dealing between or among any of the Parties, will constitute a waiver
of, or shall preclude any other or further exercise of the same or any other
right, power or remedy.

19.11 Counterparts and Transmitted Copies. This Agreement may be executed in any
number of counterparts, each of which when executed and delivered will be deemed
an original, but all of which taken together will constitute but one and the
same instrument, and it will not be necessary in making proof of this Agreement
to produce or account for more than one original counterpart hereof. The Parties
acknowledge that Transmitted Copies of this Agreement will be equivalent to
original documents until such time (if any) as original documents are completely
executed and delivered. "Transmitted Copies" means copies that are reproduced or
transmitted via facsimile, or another process of complete and accurate
reproduction and transmission.

19.12 Entire Agreement. This Agreement, together with the Exhibits to this
Agreement, represents the entire understanding between the Parties with respect
to the subject matter hereof and supersedes all previous oral or written
communications or agreements, and all contemporaneous oral communications and
agreements, between the Parties and their respective Affiliates regarding such
subject matter, including the following agreements which are hereby terminated:
(a) E-Commerce Venture Agreement, dated May 7, 1999, by and between GSI and TSA,
(b) Amendment No. 1 to the E-Commerce Venture Agreement, dated May 14, 1999, by
and between GSI and TSA, (c) License Agreement, dated May 14, 1999, by and among
TSA, TSAMI and TSA.com, (d) E-Commerce Services Agreement, dated May 14, 1999,
by and between GSI and TSA.com, (e) E-Commerce Agreement, dated May 14, 1999, by
and between TSA and TSA.com, and (f) Agreement, dated May 14, 1999, by and
between TSA and GSI. Notwithstanding the foregoing, the indemnification rights
and obligations of the Parties pursuant to the foregoing agreements with respect
to events occurring on or before the Effective Date shall survive the execution
and delivery of this Agreement.

19.13 Severability. In the event that any part or portion of this Agreement
shall be deemed to be invalid or illegal, then such invalid or illegal portion
shall, so far as possible, not affect the validity or legality of the remainder
of this Agreement. Further, the Parties agree that they shall attempt to arrive
at a modification of any illegal or invalid part so as to render the same legal
and valid and within the keeping of the original tenor and spirit of the
Agreement.

19.14 CHOICE OF LAW. THIS AGREEMENT WILL BE INTERPRETED, CONSTRUED AND ENFORCED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CHOICE OF LAW RULES.

19.15 Headings. The headings of sections and subsections of this Agreement are
for convenience of reference only and are not intended to restrict, affect or
otherwise influence the interpretation or construction of any provision of this
Agreement.

                                       40

<PAGE>

19.16  References.  All words used in this Agreement shall be construed to be of
such number and gender as the context requires or permits. Unless a particular
context clearly provides otherwise (i) the words "hereof" and "hereunder" and
similar references refer to this Agreement in its entirety and not to any
specific section or subsection hereof, and (ii) the word "including" shall mean
including but not limited to.

19.17  Construction.  The Parties agree that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not
be applied in the construction or interpretation of this Agreement or any other
agreements or documents delivered in connection with the transactions
contemplated by this Agreement.

19.18  Waiver of Jury Trial.  Each Party hereby knowingly, voluntarily,
intentionally and irrevocably waives such right as any Party may have to a jury
trial in every jurisdiction in any action, proceeding or counterclaim brought by
either of the Parties hereto and/or their respective Affiliates in respect of
any matter arising out of or in connection with this Agreement (including any
action to cancel or rescind this Agreement, and any claims or defenses asserting
that this Agreement was fraudulently induced or otherwise void or voidable).

19.19  Further Documents.  Each Party shall, upon request, make, execute and
deliver such documents as shall be reasonably necessary to take such action as
may be reasonably requested to fully implement and carry out the purposes of
this Agreement.

19.20  Binding Effect.  Subject to Section 19.8, this Agreement, including all
covenants, agreements, representations, warranties and indemnifications set
forth herein, will be binding on and enforceable by the Parties and their
respective Affiliates and permitted assigns, including any trustee appointed
pursuant to Chapters 7 or 11 of the Bankruptcy Code.

19.21  Taxes on Agreement.  Each Party shall pay any stamp duty or other tax or
duty applicable to such Party which is imposed on such Party in connection with
this Agreement.

19.22  Evolution.  The Parties acknowledge that e-commerce, the Internet and
associated technologies and ways of doing business are evolving rapidly, and as
a result, that the form and content of this Agreement as of the Effective Date,
may not be optimally suited to either the relationship of the Parties or
prevailing conditions throughout the entire Term of the Agreement. Accordingly,
the Parties agree to confer and discuss in good faith either Party's reasonably
perceived need to modify this Agreement in order: (a) to adjust to prevailing or
anticipated conditions, (b) to provide a more positive customer experience on
the TSA.com Site; (c) to maximize customers and revenues from or through the
TSA.com Site; or (d) to maximize return on investment to all Parties.
Notwithstanding the foregoing, no modification to this Agreement shall be
effective except pursuant to Section 19.9 hereof.

                                (***************)
                        SIGNATURES APPEAR FOLLOWING PAGE

                                       41

<PAGE>

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
by their duly authorized representatives as of the Effective Date.

Global Sports Interactive, Inc.     The Sports Authority, Inc.

By:    /s/  Michael G. Rubin        By:    /s/ Martin Hanaka
       ---------------------           ----------------------------
Name:  Michael G. Rubin             Name:
Title: President                    Title:

Address: 1075 First Avenue               Address: 3383 North State Road 7
King of Prussia, PA 19406                Fort Lauderdale, FL 33319
Telephone: (610) 265-3229                Telephone: (954) 735-1701
Facsimile: (610) 265-2866                Facsimile: (954) 730-4288

The Sports Authority Michigan, Inc.

By:  /s/ Martin Hanaka
     --------------------------
Name:
Title:

Address: 3383 North State Road 7
Fort Lauderdale, FL 33319
Telephone: (954) 735-1701
Facsimile: (954) 730-4288

Acknowledged and Agreed to With
Respect to Sections 2.6 [*]:

Global Sports, Inc.

By:    /s/  Michael G. Rubin
       ---------------------
Name:  Michael G. Rubin
Title: President and Chief Executive Officer

Address: 1075 First Avenue
King of Prussia, PA 19406
Telephone: (610) 265-3229
Facsimile: (610) 265-2866

                                       42

<PAGE>

                                                                           FINAL

                                    EXHIBIT A
                       LICENSE GUIDELINES AND RESTRICTIONS
                       -----------------------------------

A.   General
     -------

Unless a Vice President of Licensor agrees in advance, the following guidelines
and restrictions apply to Licensee and each company or other entity that may be
authorized under the License and E-Commerce Agreement dated July 6, 2001 (the
"LECA") to use certain of the "Marks" and "Names" as described in the LECA.

A consistent corporate image or identity is one of Licensor's strongest assets.
It provides immediate recognition and creates goodwill for Licensor, the "TSA
Stores" (as defined in the LECA) and Licensor's goods and services. The purpose
of this guide is to ensure a clear and consistent presentation of the Marks and
Names to Licensor's and Licensee's customers.

Licensee shall not alter the Marks from the form or formats used by Licensor or
received from Licensor, unless such alterations are approved in advance by
Licensor as set forth in Article 2.2(b) of the LECA. For example, the addition
of hyphens or spaces to a word Mark, creation of unauthorized acronyms, or
alteration of any design Marks or logos could weaken public recognition of the
Marks and damage their strength as a brand designation.

B.   The Design mark THE SPORTS AUTHORITY & Design
     ---------------------------------------------

[Insert examples, with width to height ratios, labels for PMS colors, etc.]

C.   The Design mark THE SPORTS AUTHORITY.COM & Design
     -------------------------------------------------

[Insert examples, with width to height ratios, labels for PMS colors, etc.]

D.   Use.
     ---

     1)   Unacceptable Uses of the Marks.
          ------------------------------

          Do not extend the top, bottom or center bars of the THE SPORTS
          AUTHORITY & Design mark to extend beyond the ratios set forth above.
          Do not substitute designs or objects for letters in any Mark.
          Do not use old design versions of the Marks.
          Do not combine any Mark with any other mark or element.
          Do not use any other mark confusingly similar to the Marks.
          Do not rotate or tilt any Mark at an angle.
          Do not pluralize any Mark. Do not use any design Mark in a sentence.
          Do not add graphic elements to any design Mark.
          Do not create repeating patterns of the Marks.
          Do not place the Marks in a containing shape.
          Do not change the horizontal or vertical scale of any design Mark.
          Do not use any Mark in the possessive.
          Do not print the design Marks or logos in any color other than as
          specified by Licensor.
          Do not reverse the design Marks or logos out of a background with
          insufficient contrast.
          Do not reverse the design Marks or logos out of a photograph.
          Do not reverse the design Marks or logos out of patterned backgrounds.

                                        1

<PAGE>

     2)   Clear Space.  A minimum clear space on all sides of any Mark shall be
          -----------
          kept free of other visual elements. The minimum clear space shall be
          appropriate under the circumstances under which such Mark is being
          used.

     3)   Staging. Staging involves proper placement, scale, and proportion of
          -------
          any Mark and how it aligns with typography and other elements.
          Licensee shall always surround the subject Mark by the minimum
          preferred clear space as provided in Section 2 above. Licensee shall
          avoid staging any Mark at the edge of a page. Licensee shall not place
          any Mark so that it "bleeds" off the edge of materials.

     4)   Presentation with Third-Party Trademarks. When presented with any
          ----------------------------------------
          third party trademark, the Marks must be of at least equal size in
          comparison to such third party trademark. Licensee shall not print any
          Mark in black if the third party trademark appears in color.
          Notwithstanding the foregoing, Licensor acknowledges and agrees that
          certain advertising and marketing arrangements entered into with
          Advertising and Marketing Partners of Licensee hereunder, (a) the
          TSA.com Site may be "framed" by certain of the Advertising and
          Marketing Partners of Licensee which frame will include trademarks or
          service marks of such Advertising and Marketing Partners of Licensee,
          and (b) certain Web Sites of the Advertising and Marketing Partners of
          Licensee may include logos, marks, trade names, trade marks, offers,
          and related material of third parties, in either case which are larger
          than the Marks or place more emphasis on such other logos, marks,
          trade names, trade marks, offers, and related material over the Marks.

     5)   Design Marks or Logos.  Except as provided in Article 2.2(b) of the
          ---------------------
          LECA, Licensee shall always reproduce each logo or design exactly as
          specified by Licensor using approved original reproduction art or
          digital files available from Licensor's Advertising and Marketing
          Department.

The above usage rules are "best practices." When circumstances beyond Licensee's
control prevent full compliance with any given rule, Licensee shall submit the
proposed deviation to Licensor for prior review and approval as set forth in
Section 2.2(b).

E.   Corporate Names versus Marks.  Licensor's proper corporate names are:
     ----------------------------

                           The Sports Authority, Inc.,
                                       and
                       The Sports Authority Michigan, Inc.

When referring to either company in any format be sure to use the full corporate
name, without dropping the article "The" or the comma (and be sure to place the
comma in the proper place). Both names are proper nouns, like "Smith" or
"Lincoln." In contrast, the Marks are adjectives and should not be used as
nouns. For example, one would refer to THE SPORTS AUTHORITY brand athletic bags.
The Mark should be used as an adjective and not as a noun, and it should appear
in all capital letters to set it off from other printed matter. Finally,
although either corporate name can be used in the possessive form (e.g., "The
Sports Authority, Inc.'s"), the Marks should not be used in the possessive form.

F.   Marks - Notices
     ---------------

As soon as a given Mark is registered with respect to certain goods or certain
services in the U.S., Canada and/or other key markets as determined by Licensor,
Licensor may inform Licensee and Licensee shall commence marking all "Materials"
(as defined in the LECA) subject to such registration(s) with one or more of the
following phrases, as determined by the application and available space, taking
care to use the second phrase whenever possible:

                                        2

<PAGE>

                             "Registered Trademark"
         [In English or such other languages as instructed by Licensor]

                                       or

    "(R) Registered Trademark of The Sports Authority, Inc. and/or The Sports
                 Authority Michigan, Inc., used under license."
         [In English or such other languages as instructed by Licensor]

                                       or

                    "(R) The Sports Authority Michigan, Inc."

                                       or

                                      "(R)"

The registration notices should be placed immediately adjacent to any Mark,
logo, slogan or other Materials incorporating registered trademarks or service
marks wherever possible. Such notices advise third parties of the existence of
the subject registration(s), and warn them to refrain from adopting or using an
identical or confusingly similar mark.

G.   Content of TSA.com Site
     -----------------------

     1.   Each party shall notify the other of all errors, omissions, and/or
          inaccuracies in the TSA Content, as developed, used or authorized by
          Licensee, within forty-eight (48) hours after it becomes aware
          thereof.

     2.   If Licensee provides such notice, it shall specify to Licensor what
          action, if any, it has taken to correct the error, omission and/or
          inaccuracy.

     3.   If Licensor provides such a notice, or receives such notice, it may
          specify reasonable actions to be taken by Licensee to correct the
          error, omission and/or inaccuracy or resubmit such content.

H.   Copyright Notices
     -----------------

     1.   Upon request from Licensor, Licensee shall place an appropriate
          copyright notice to be furnished by Licensor on all pages containing
          Non-Shopping Content.

     2.   Licensee and Licensor shall mutually develop the procedures for
          placing any third party copyright notice on any page containing
          Non-Shopping Content.

                                        3

<PAGE>

                              Exhibit B - The Marks
<TABLE>
<CAPTION>
MARK                       GOODS/SERVICES                                         CL      SER. NO.        REG. NO.
<S>                        <C>                                                    <C>    <C>              <C>
AUTHORITY                  retail store services in the field of sporting         42     74-695,504       2,074,354
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

AUTHORITY                  apparel, namely, rainwear, jackets, coats,             25        366,111       1,245,417
                           suits, slacks and vests

AUTOGRAPH AUTHORITY        computerized on-line retail store services             35     75-711,996       2,335,979
                           featuring collectibles, trading cards and              42
                           autographed memorabilia (35); computer services,
                           namely providing information on collectibles,
                           trading cards and autographed memorabilia, by
                           means of a global computer information network
                           (42).

BASKETBALL AUTHORITY       retail store services in the field of sporting         42     74-695,510       2,074,358
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

EXERCISE AUTHORITY         retail store services in the field of sporting         42     74-695,506       2,082,095
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

FISHING AUTHORITY          retail store services in the field of sporting         42     74-695,507       2,074,356
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

FITNESS AUTHORITY          retail store services in the field of sporting         42     74-695-513       2,079,864
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

FOOTWEAR AUTHORITY         retail store services in the field of sporting         42     74-695,653       2,082,096
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

GET OUT AND PLAY           retail outlets featuring clothing, footwear,           35     76-124,181
                           outerwear and headgear; advertising for others;
                           sales promotion for others

GOLF AUTHORITY             retail store services in the field of sporting         42     74-695,512       2,074,359
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

HOCKEY AUTHORITY           retail store services in the field of sporting         42     74-695,651       2,079,866
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

HOT NEW NOW                retail store services featuring apparel,               35     76-010,291
                           footwear, headgear, sporting goods and
                           equipment, gifts and related goods and services;
                           computerized retail store services featuring
                           apparel, footwear, headgear, sporting goods and
                           equipment, gifts and related goods and services;
                           cooperative advertising services

HUNTING AUTHORITY          retail store services in the field of sporting         42     74-695,508       2,074,357
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

IN-LINE SKATE AUTHORITY    retail store services in the field of sporting         42     74-695,502       2,074,353
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services
</TABLE>

                                        1

<PAGE>

                              Exhibit B - The Marks
<TABLE>
<CAPTION>
MARK                       GOODS/SERVICES                                          CL     SER. NO.        REG. NO.
<S>                        <C>                                                     <C>   <C>              <C>
MAIL AUTHORITY             telephone answering, photocopying and business          35    75-167,549       2,284,347
                           management services (35); postal services,              42
                           namely rental of mail boxes, mail forwarding,
                           packaging articles for transportation, and
                           receipt and delivery of mail and parcels for
                           others (42)

MARINE AUTHORITY           retail store services in the field of sporting          42    74-695,655       2,079,867
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

MUSCLE AUTHORITY           magazines and newsletters pertaining to exercise        16    75-618,602       2,335,185
                           and fitness

OUTDOOR  AUTHORITY         retail store services in the field of sporting          35    74-695,514
                           goods and equipment, apparel, footwear, headgear
                           and related goods

OUTERWEAR AUTHORITY        retail store services in the field of sporting          42    74-695,509       2,076,213
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

PANTS AUTHORITY            retail outlets featuring clothing, footwear,            35    75-509,313
                           outerwear and headgear

PARTS AUTHORITY            retail outlets featuring sporting goods and             42    75-076,697
                           equipment and parts, components and materials
                           for use with the same; rental of sporting
                           goods and protective clothing and equipment

PREPARE YOURSELF           retail store services in the fields of fitness,         35    75-277,570       2,176,490
                           sporting goods and equipment, apparel, footwear,        42
                           headgear and related goods and services;
                           cooperative advertising (35); computer services,
                           namely providing information on fitness,
                           sporting goods and equipment, apparel, footwear,
                           headgear and related goods and services by means
                           of a global computer information network in
                           class 42

RUNNING AUTHORITY          retail store services in the field of sporting          42    74-695,654       2,082,097
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

SHOE & APPAREL AUTHORITY   retail store services in the field of sporting          42    74-695,501       2,074,352
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

SPORTS AUTHORITY FOOD,     restaurant services                                     42    74-256,187       2,074,782
SPIRITS AND SPORTS and
Design
</TABLE>

                                        2

<PAGE>

                              Exhibit B - The Marks
<TABLE>
<CAPTION>
MARK                       GOODS/SERVICES                                         CL      SER. NO.         REG. NO.
<S>                        <C>                                                    <C>     <C>              <C>
SPORTSAUTHORITY.COM        computerized on-line retail store services             35      75-636,136
                           featuring clothing, footwear, outerwear and            42
                           headgear; retail outlets featuring clothing,
                           footwear, outerwear and headgear; dissemination
                           of advertising for others via an on-line
                           electronic communication network; promoting the
                           goods and services of others by preparing and
                           placing advertisements on a web site accessed
                           through a global computer network; promoting
                           sports teams, competitions and events for others
                           (35); computer services, namely providing
                           information on  clothing, footwear, outerwear
                           and headgear by means of a global computer
                           information network (42)

TEAM SPORTS AUTHORITY      retail store services in the field of sporting         42      74-695,505       2,074,355
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services in Class 42

TENNIS AUTHORITY           retail store services in the field of sporting         42      74-695,511       2,076,214
                           goods and equipment, apparel, footwear, headgear
                           and related goods and services

THE SPORTS AUTHORITY       retail store services featuring sporting               42      73-736,556       1,527,526
                           equipment and clothing

THE AFFILIATE AUTHORITY    promoting the goods and services of others             35      76-176,168
                           through partnership marketing programs,
                           providing access to a partnership marketing
                           network of merchants and other businesses; and
                           computerized on line retail store services
                           featuring clothing, footwear, outerwear and
                           headgear.

THE AUTHORITY ON           rental of sporting goods, including protective         41      75-136,153       2,101,178
SPORTING GOODS             clothing and equipment; retail store services in       42
                           the fields of fitness, sporting goods and equipment,
                           apparel, footwear, headgear and related goods.

THE BICYCLE AUTHORITY      repairs and maintenance of bicycles in                 37      74-471,949       2,003,381
                           International Class 37; retail store services in       42
                           the field of bicycles and related accessories in
                           International Class 42

THE CLUB AUTHORITY         management of recreation and fitness clubs of          35      74-708,805       1,999,520
                           others; and business consulting services
                           relating to health, recreation and fitness clubs

THE KNIFE AUTHORITY        retail store services featuring sale of sporting       42      74-596,250       1,963,911
                           goods and equipment, footwear and clothing

THE LEAGUE AUTHORITY       retail outlets featuring clothing, footwear,           35      76-054,340
                           outerwear and headgear; advertising for others;
                           sales promotion for others.

THE LOW PRICE AUTHORITY    retail store services comprising sale of               42      74-595,324       1,937,000
                           sporting goods and equipment, footwear and
                           clothing

THE OUTLET AUTHORITY       retail outlets featuring clothing, footwear,           35      76-176,169
                           outerwear and headgear; advertising for others;
                           sales promotion for others.

THE SHOE AUTHORITY         retail store services in the field of  sporting        42      74-622,104
                           goods and equipment, apparel, footwear and
                           related products and accessories
</TABLE>

                                        3

<PAGE>

                              Exhibit B - The Marks
<TABLE>
<CAPTION>
MARK                           GOODS/SERVICES                                      CL      SER. NO.         REG. NO.
<S>                            <C>                                                 <C>     <C>              <C>
THE SKI AUTHORITY              retail store services featuring ski equipment       42      74-116,271       1,688,221
                               and clothing

THE SPORTS AUTHORITY           ladies apparel, namely shirts, and mens apparel,    25      74-362,909       1,821,430
                               namely hats, visors, pants, shirts, shorts and
                               swim trunks

THE SPORTS AUTHORITY           athletic tape and pre-wrap; balls, bats and         28      75-076,695
                               gloves for games; body-building machines;
                               fishing hooks and tackle; hand, knee and elbow
                               guards for sports use; nets for sports;
                               protective paddings for sports; racket strings
                               for tennis, badminton, squash and racquetball;
                               toy figures, inflatable ride-on toys, plush
                               toys, and water-squirting toys; wax for skis.

THE SPORTS AUTHORITY           for computer services, namely interactive           42      75-076,694       2,102,208
                               on-line publications in the fields of sporting
                               goods and equipment, apparel, footwear,
                               headgear and related goods and services

THE SPORTS AUTHORITY           16: scorebooks, instruction guides and books in     16      75-076,675       2,071,449
                               the fields of sports, exercise, fitness and         18
                               recreation; clip boards; printed forms; printed     24
                               matter, namely art pictures, art prints, bags       25
                               for merchandise packaging, calendars, gift          26
                               certificates, illustrations, price tags, and        35
                               magazines in the fields of sports, exercise,        36
                               fitness and recreation; score cards; stationery.
                               18: bags for travel and sports. 24: towels. 25:
                               clothing, namely shirts, tops, pants and shorts;
                               head wear; hosiery; sweat bands. 26: shoe laces.
                               35: advertising for others; import-export
                               agency; marketing research; purchasing agents;
                               sales promotion for others; promoting sports
                               teams, competitions and events for others; 36:
                               sponsoring sports teams, competitions and events
                               for others

THE SPORTS AUTHORITY           stringing and re-gripping racquetball, squash       37      75-501,083       2,274,172
                               and tennis racquets, sizing and drilling bowling    39
                               balls, line winding for fishing reels,              40
                               customizing arrows for archery, sighting of
                               firearms (37); parcel delivery; delivery of
                               goods by truck and van (39); and assembly of
                               goods for others (40).

THE SPORTS AUTHORITY           telephone calling card services                     36      75-521,226       2,249,780

THE SPORTS AUTHORITY           credit card services                                36      75-539,949       2,333,857

THE SPORTS AUTHORITY &         retail store services featuring sporting            42      73-736,555       1,529,035
Design                         equipment and clothing

THE SPORTS AUTHORITY DIRECT    electronic retailing services via a global          35      76-133,396
                               computer network, direct mail advertising and
                               mail order services, all in the fields of
                               sporting goods and equipment, apparel, footwear,
                               headgear and related goods and services
</TABLE>

                                        4

<PAGE>

                              Exhibit B - The Marks
<TABLE>
<CAPTION>
MARK                       GOODS/SERVICES                                       CL       SER. NO.         REG. NO.
<S>                        <C>                                                  <C>    <C>                <C>
THE SPORTS AUTHORITY       electronic retailing services via a global           35     76-133,997
DIRECT YOUR 24/7 SPORTS    computer network, direct mail advertising and
STORE                      mail order services, all in the fields of
                           sporting goods and equipment, apparel, footwear,
                           headgear and related goods and services

THESPORTSAUTHORITY.COM     computerized on-line retail store services           35     75-636,870
                           featuring clothing, footwear, outerwear and          42
                           headgear; retail outlets featuring clothing,
                           footwear, outerwear and headgear; dissemination
                           of advertising for others via an on-line
                           electronic communication network; promoting the
                           goods and services of others by preparing and
                           placing advertisements on a web site accessed
                           through a global computer network; promoting
                           sports teams, competitions and events for others
                           (35); computer services, namely providing
                           information on  clothing, footwear, outerwear
                           and headgear by means of a global computer
                           information network (42)

TSA.COM                    mens and ladies apparel, namely shorts, pants,       25     75-925,065
                           shirts, hats, caps, visors, hosiery and              28
                           outerwear (25); balls, bats and gloves for           35
                           games, protective guards and paddings for            42
                           sports, toy figures, inflatable ride on toys,
                           plush toys, and water-squirting toys (28);
                           retail store services featuring apparel,
                           footwear, headgear, sporting goods and
                           equipment, collectibles, gifts and related goods
                           and services, computerized on-line retail store
                           services featuring apparel, footwear, headgear,
                           sporting goods and equipment, collectibles,
                           gifts and related goods and services,
                           cooperative advertising  (35); rental of
                           sporting goods, bicycles and protective clothing
                           and equipment (41); computer services, namely
                           providing information on apparel, footwear,
                           headgear, sporting goods and equipment,
                           collectibles, gifts and related goods and
                           services by means of a global computer
                           information network (42).

YOUR ONLINE AUTHORITY      retail store services featuring apparel,             35     76-083,584
                           footwear, headgear, sporting goods and
                           equipment, collectibles, gifts and related goods
                           and services, computerized on-line retail store
                           services featuring apparel, footwear, headgear,
                           sporting goods and equipment, collectibles,
                           gifts and related goods and services,
                           cooperative advertising

YOUR SUMMER AUTHORITY      retail store services featuring apparel,             35     76-083,583
                           footwear, headgear, sporting goods and
                           equipment, collectibles, gifts and related goods
                           and services, computerized on-line retail store
                           services featuring apparel, footwear, headgear,
                           sporting goods and equipment, collectibles,
                           gifts and related goods and services,
                           cooperative advertising
</TABLE>

                                       5

<PAGE>

                              Exhibit C - The Names

Domain Name                          Reg. Date    Registrar           Pointed At

BUY-SPORTSAUTHORITY.COM               11/1/99     Network Solutions
HOME-SPORTSAUTHORITY.COM              11/1/99     Network Solutions
SEARCH-SPORTSAUTHORITY.COM            11/1/99     Network Solutions
SKIAUTHORITY.COM                      8/17/98     Network Solutions
SKIAUTHORITY.NET                      12/4/98     Network Solutions
SKIAUTHORITY.ORG                      12/4/98     Network Solutions
SPORTSAUTHORITY.COM                   7/27/95     Network Solutions
SPORTS-AUTHORITY.COM                  5/15/00     Network Solutions
SPORTSAUTHORITY.NET                   12/4/98     Network Solutions
SPORTS-AUTHORITY.NET                  12/4/98     Network Solutions
SPORTSAUTHORITY.ORG                   12/4/98     Network Solutions
SPORTS-AUTHORITY.ORG                  12/4/98     Network Solutions
THESKIAUTHORITY.COM                   8/17/98     Network Solutions
THESKIAUTHORITY.NET                   12/4/98     Network Solutions
THESKIAUTHORITY.ORG                   12/4/98     Network Solutions
THESPORTSAUTHORITY.COM                9/29/97     Network Solutions
THESPORTSAUTHORITY.NET                12/4/98     Network Solutions
THESPORTSAUTHORITY.ORG                9/29/97     Network Solutions
THEOUTLETAUTHORITY.COM                            Network Solutions
AUCTIONAUTHORITY.COM                              Network Solutions
CLEARANCEAUTHORITY.COM                            Network Solutions

<PAGE>

                                    EXHIBIT D
                                    ---------

                              Non-Shopping Features

(a)  Employment Opportunities - At the TSA Stores or at Licensor's offices.
     Licensee shall furnish technology to allow Licensor to update as frequently
     as Licensor desires.

(b)  Public Financial Information SEC Filings and Annual Reports - SEC filings
          shall be provided by a link so long as the government (or Licensor)
          makes such filings available at no cost. Both SEC filings and annual
          reports shall be provided only if available in portable document
          format; in the alternative, Licensee shall provide such information to
          Customers as received from Licensor's investor relations or legal
          departments, in a form and format in as agreed upon by the Parties.

(c)  TSA Store Locator - to be updated as such information changes and is
     received from Licensor.

(d)  Licensor's Corporate Information - to be updated as such information
     changes and is received from Licensor.

(e)  Licensor's Community Programs - to be updated as such information changes
     and is received from Licensor.

(f)  Press Releases - Licensee shall furnish technology to allow Licensor to
     update and post Licensor's Press Releases on the TSA.com Site directly.
     Licensor shall be able to post its press releases on the TSA.com Site as it
     desires. Unless the Parties otherwise agree to the contrary, this feature
     and such press releases shall deal with Licensor and the TSA Stores, and
     not with Licensee or the TSA.com Site.

(g)  "Contact Us" Section for TSA Stores (rather than TSA.com Site) to be
     updated as such information changes and is received from Licensor.

<PAGE>

                                    EXHIBIT E

                                    Royalties

1.   Definitions.
     ------------

     A.  "Net Revenues" means Net Revenues, as defined in the License and
E-Commerce Agreement (the "LECA").

     B.  "Licensee-Generated Net Revenues" means Net Revenues described in
Section 11.2(a)(i)(B) of the LECA.

     C.  "Licensor-Generated Net Revenues" means all Net Revenues other than
Licensee-Generated Net Revenues.

     D.  "Deemed Licensee-Generated Net Revenues" means [*]

     E.  "Deemed Licensor-Generated Net Revenues" means Net Revenues, less
Deemed Licensee-Generated Net Revenues.

     [*]

     G.  "Year" means calendar year unless otherwise indicated.

2.   Royalty on Deemed Licensee-Generated Net Revenues.  The royalty on  Deemed
     -------------------------------------------------
Licensee-Generated Net Revenues shall be [*] for each year during the term of
the LECA.

3.   Royalty Rates for 2001 and 2002.
     -------------------------------

     A.  Royalty for 2001. The royalty on Deemed Licensor-Generated Net Revenues
         ----------------
shall be at the rate of [*] thereof for 2001 [*] provided that if [*] the
royalty on Deemed Licensor-Generated Net Revenues for 2001 [*] shall be at the
rate of [*] unless [*] in which case such royalty shall be adjusted to the
fractional percentage between [*]

     B.  Royalty for 2002. The royalty on Deemed Licensor-Generated Net Revenues
         ----------------
shall be at the rate of [*] thereof for 2002.

4.   Minimum and Maximum Royalties on Deemed Licensor-Generated Net Revenues for
     ---------------------------------------------------------------------------
years after 2002. The royalty on Deemed Licensor-Generated Net Revenues for each
----------------
year shall never be lower than the minimum royalty set forth below and shall
never be higher than the maximum royalty set forth below.

     A.  Minimum Royalty. The minimum royalty on Deemed Licensor-Generated Net
         ---------------
Revenues shall be at the rate of [*] thereof for 2003 and each year thereafter
during the Term of the LECA.

     B.  Maximum Royalty. The maximum royalty on Deemed Licensor-Generated Net
         ---------------
Revenues shall be at the rate of [*] thereof for each year during the Term of
the LECA.

5.   Calculation of Royalties on Deemed Licensor-Generated Net Revenues for
     ----------------------------------------------------------------------
years after 2002.
----------------

                                       1

<PAGE>

     A.    Calculation of Royalty on Deemed Licensor Generated Net Revenue for
           -------------------------------------------------------------------
2003. Subject to the minimum royalties and maximum royalties set forth in
----
Section 4 of this Exhibit E, the royalty on Deemed Licensor-Generated Net
Revenues for 2003 shall be equal the lesser of (i) the amount obtained by
multiplying (a) [*] times (b) the percentage obtained by multiplying (1) [*]
times (2) a fraction, the numerator of which is [*] and the denominator of which
is [*] and (ii) the amount obtained by adding (a) the amount obtained by
multiplying (1) [*] times (2) [*] plus (b) [*]

     B.    Calculation of Royalty on Deemed Licensor-Generated Net Revenue for
           -------------------------------------------------------------------
years after 2003. Subject to the minimum royalties and maximum royalties set
----------------
forth in Section 4 of this Exhibit E, the royalty on Deemed Licensor-Generated
Net Revenues for each year beginning with 2004 shall be at the rate equal to [*]
multiplied by a fraction, the numerator of which is [*] and the denominator of
which is [*] provided, that if the [*]

6.   Additional Royalties on Kiosk Sales. For each period, with respect to that
     -----------------------------------
portion of Net Revenues which result from orders placed from kiosks in TSA
Stores ("Kiosk Net Revenues"), in lieu of the royalties provided for above,
Licensee shall pay a royalty as calculated below. The royalty attributed to the
Kiosk Net Revenues shall be [*]

7.   Interim Royalty Payments; Year-End Adjustments. Royalty payments made in
     ----------------------------------------------
respect of each of the first three quarters during each year shall be at the
higher of the royalty rate paid for the prior year or the minimum rate in effect
for the year for which they are being paid. Royalty payments made in respect of
the fourth quarter of each year shall be adjusted as necessary (including a
payment from Licensor to Licensee, if necessary) such that the total royalty
paid for the year equals the amount as calculated above.

8.   Fractional Years.  The royalty rate for the partial year at the end of the
     ----------------
term of the LECA will be based on a proration of all dollar amounts.

                                       2

<PAGE>

                                    Exhibit F
                   Three Tier Approval Process for Advertising
                   -------------------------------------------
                         and Promoting the TSA.com Site
                         ------------------------------

Except with respect to any proposed sublicense, newly coined trademark or
service mark, or proposed alterations of the Marks, all of which shall be
governed first by Article 2 of the License and E-Commerce Agreement, there shall
be three tiers of online and/or offline promotional or advertising agreements or
arrangements that Licensee may enter into with Advertising and Marketing
Partners of Licensee for the TSA.com Site, and corresponding three tier approval
process.

A)       Tier 1. Licensee may enter into these types of agreements or
         ------
arrangements without the prior review and approval of Licensor, provided that,
[*] This tier applies primarily to [*] Tier 1 agreements or arrangements:

(1)      [*]

(2)      [*]

(3)      [*]; and

(4)      [*]

B)       Tier 2. Licensee may enter into these types of agreements or
         ------
arrangements only with the prior review and approval of Licensor's [*] or other
authorized officer of Licensor. Tier 2 agreements or arrangements:

(1)      [*]

(2)      [*]

(3)      [*]and

(4)      [*]

C.       Tier 3. Licensee may enter into these types of agreements or
         ------
arrangements only with the prior review and approval of [*] Tier 3 agreements or
arrangements:

(1)      [*]

(2)      [*] or

(3)      [*]

[*]

                                        1

<PAGE>

                                    Exhibit G
                           Functionality and Features
                           --------------------------

Shop by Brand
Search by Keyword or Online Item Number
Browse Category/Family/Item
The Outlet Authority
Gift Shop
Professional and Collegiate Licensed Goods Shops
Group Sales
Product Presentation
Related Products
"Info Zone" Tips & Guides
Product Comparison
Shopping Cart
Online Checkout with Secure Ordering
Email Notification of Orders
Order Tracking
User Login/Registration
User Profile Management Reporting Tools for Site Performance, Sales and Traffic
24 /7 Real Time Customer Service Via Toll-Free Telephone
Affiliate Program
Gift Giving Functionality (including Gift Certificates)
Order Processing (including tax and shipping costs configurators)
Discount entry
Shipping Information
Non-shopping Content (as described in Exhibit D)
"About Us"
Privacy Policy

                                       1

<PAGE>

                                    EXHIBIT H
                                       [*]

[*]

                                        1

<PAGE>

                                    EXHIBIT I

                        Order Processing and Fulfillment
                        --------------------------------

 .    Order Receipt, Confirmation and Processing
 .    Establishment of Terms and Conditions of Sale of Merchandise
 .    Credit Card Authorization and Processing
 .    Inventory, Receipt, Control and Management
 .    Pick, Pack and Ship Orders
 .    Shipping Management and Tracking
 .    Returns Processing

                                       1

<PAGE>

                                    Exhibit J

        Web Site Integration and Promotional and Advertising Requirements
        -----------------------------------------------------------------

Licensor shall comply with the following requirements at a rate of no less than
[*] The foregoing compliance shall be measured quarterly during the Term.
Notwithstanding the foregoing compliance requirements, no quantitative
requirements shall apply to (i) individual store-specific promotional events and
advertising, such as grand openings, promotional appearances and exhibitions,
(ii) Licensor's collection of customer e-mail addresses, (iii) Licensor's
efforts to stuff shopping bag inserts, (iv) directional billboards, and (v)
vendor advertisements.

I.   Print and Email Integration
     ---------------------------

1.   The 800 number of the TSA.com Site shall be promoted in all Licensor
     circulars in conjunction with the URL integration, unless Licensee requests
     otherwise. The Parties agree that the 800 number of direct mail catalogs
     distributed by or on behalf of Licensor (each a "Catalog") may be promoted
     in all Licensor circulars in addition to the 800 number for the TSA.com
     Site; so long as (i) the promotion of the Catalog 800# would not cause
     confusion for a reasonable customer viewing such circular, and (ii) the
     promotion of the Catalog 800# is not done in conjunction with the URL
     integration required hereunder.

2.   Subject to acceptance of the TSA credit card by Licensee at the TSA.com
     Site: (a) at Licensee's expense and at Licensee's option, Licensor shall
     provide exclusive (except as to Licensor) credit card inserts promoting the
     TSA.com Site no less than one time each calendar quarter; and (b) each TSA
     credit card invoice and any other inserts where the subject merchandise or
     service is available at the TSA.com Site shall prominently include the shop
     online message. Nothing herein shall require Licensor to make the TSA
     credit card available for purchases on the TSA.com Site.

3.   In all circulars containing products available both on the TSA.com Site and
     in TSA Stores, Licensor shall place an "Online Item" icon and product
     identification number adjacent to each applicable product, which shall be
     no less proportionate in size to the applicable products as compared to the
     size of the icons and product numbers relative to the products as depicted
     in Example J1, attached.
        ----------

4.   With the exception of clearance ads, and single market run of press ("ROP")
     ads that Licensor runs in non-major (as Licensor reasonably determines)
     markets, all circulars and ROP ads shall

                                        2

<PAGE>

     include the shop online message. The shop online message in circulars shall
     appear: (a) in a 1-inch high band that runs across the entire length of the
     front cover of the circular; (b) a 1/2-inch band that runs across the
     entire length of the back cover of the circular, unless such circular
     provides additional placements for the promotion of the TSA.com Site; and
     (c) a 1/2-inch high band in certain footers within the circular. See
     Example J2. Blank figures are specified on Exhibit J1, attached. Clearance
     ----------                                 ----------
     ads shall include the shop online message to the extent that Licensee is
     able to, and does, (i) accommodate general department discounts that vary
     by department, (ii) show high-low pricing with the proper sale terminology,
     (iii) react with a turnaround time quick enough that it does not delay
     Licensor's schedule, and (iv) handle "buy this, get that" situations.
     Single-market ROP ads shall include the shop online message at Licensee's
     option, upon notification to Licensor within 24 hours of Licensor's notice
     of such ad to Licensee. See Example J3.
                                 ----------

5.   The shop online message in ROP ads shall be proportionate in size to the
     shop online message in the circulars and, unless Licensee elects otherwise,
     shall include the 800 number for the TSA.com Site, as depicted in Example
                                                                       -------
     J3.
     --

6.   All circulars shall include, in addition to the shop online message and
     "Online Item" icons, at least one 2x7-inch inside editorial placement (or
     equivalent, based upon page size and layout, location to be determined by
     Licensor) for the promotion of the TSA.com Site. Subject to Licensor's
     approval under Exhibit F, this placement may promote Advertising and
                    ---------
     Marketing Partners of Licensee who are contemporaneously promoting the
     TSA.com Site. If the placement occurs on the back cover then the 1/2-inch
     band discussed above shall not be included on the back cover. See Example
                                                                       -------
     J1.
     --

7.   Subject to the "Note" which follows and Exhibit J1, each direct mail post
                                             ----------
     card or booklet distributed by Licensor shall include: (a) a 3/4-inch high
     shop online message band that runs across the entire length of the front
     page; (b) a 1x 3-inch space on the back page of a booklet which includes a
     corresponding coupon/promotion; (c)1/4-inch inside footers as specified in
     Exhibit J1; and (d) "Online Item" icons in the same manner as the
     ----------
     circulars. In the event the size of Licensor's direct mail post cards or
     booklets change from that depicted in the attached examples, Licensor shall
     promote the TSA.com Site in a proportionate manner as provided for herein.
     Note: Licensee's advertising herein may be omitted if Licensee is not
     participating in the subject direct

                                        3

<PAGE>

     mail campaign, post card or booklet, provided Licensee receives prior
     notice and agrees to the exclusion.

8.   Licensor's interactive online and email advertisements shall each provide
     for direct links to the applicable portion(s) of the TSA.com Site. For
     example, Licensor's logo or name shall provide a hot link directly to the
     TSA.com Site homepage, product images shall provide a hot link directly to
     corresponding products on the TSA.com Site, and product category titles
     shall provide a hot link directly to the corresponding product category on
     the TSA.com Site. Such interactive advertising shall not include a link to
     any other web site that is an e-commerce business selling Sporting Goods,
     but with notice to Licensee, may include links to any web site that is not
     an e-commerce business selling Sporting Goods.

9.   No more than once each quarter, upon Licensee's request and at its expense,
     Licensor shall use commercially reasonable efforts for a period of at least
     four weeks to collect and deliver to Licensee email addresses from
     customers of the TSA Stores. Licensor shall standardize the quarterly email
     collection requirement within the TSA Stores and provide incentives to
     Licensor's employees for acquiring email addresses (incentives at
     Licensee's expense and subject to Licensee's prior written approval).

II.  Integration Within TSA Stores
     -----------------------------

1.   Specific signs shall be located within each TSA Store for the promotion of
     the TSA.com Site, and/or for the approved promotion of the Advertising and
     Marketing Partners of Licensee, including no less than: (a) a single
     4x20-foot permanent banner in each TSA Store (at Licensee's expense); (b)
     two event signs (per Licensor's campaigns) in each TSA Store (at Licensor's
     expense); (c) four 22x28-inch signs positioned throughout each TSA Store
     (at Licensor's expense); and (d) two window decals as depicted in Example
                                                                       -------
     J4 (at Licensor's expense). Licensee shall develop the creative content of
     --
     item (a). Licensor shall develop the creative content of items (b), (c) and
     (d). All creative content shall be subject to the mutual approval of the
     Parties.

2.   Employee uniforms in the TSA Stores shall include the URL (at Licensor's
     expense).

3.   Shopping bags in the TSA Stores shall include the URL (at Licensor's
     expense). The size of the URL on such shopping bags shall be no less
     proportionate in size relative to the size of the TSA logo as is currently
     provided in Example J4 item 8. The URL for the shopping bags may include
     either, at Licensee's option (i) "shop on-

                                        4

<PAGE>

     line at www.thesportsauthority.com" or (ii) "www.thesportsauthority.com".

4.   At Licensee's request and expense, with creative content developed by
     Licensee but subject to Licensor's approval, Licensor shall use
     commercially reasonable efforts to stuff shopping bag inserts at checkouts
     in the TSA Stores.

5.   When Licensor's in-store audio broadcast message system is in use within a
     given TSA Store, Licensor, shall, at its expense, prepare and insert two 15
     second messages promoting the TSA.com Site per program rotation (creative
     messages shall be subject to mutual approval).

III. Radio, Television, Billboards, Sponsorships
     -------------------------------------------

1.   Licensor's billboards and sports sponsorship signs shall integrate the URL
     and/or the shop online message, unless inappropriate under the
     circumstances. Directional billboards may exclude the online reference, at
     Licensor's option.

2.   Each of Licensor's out of store 60 second radio advertisements shall
     include a five (5) second tag at the end containing the shop online
     message, except that Licensor may exclude store-specific promotion events,
     such as grand opening and promotional appearances.

3.   Each of Licensor's out of store 30 second television advertisements shall
     include a three (3) second (or a five (5) second message within each 60
     second ad) visual message at the end containing the shop online message.

IV.  Vendors
     -------

1.   In any vendor print advertisement that "tags" Licensor or directs customers
     to the TSA Stores, and provided that the applicable brands and products are
     available through the TSA.com Site, Licensor shall use commercially
     reasonable efforts to persuade vendors to include the shop online message.

V.   Group and Team Sales

1.   Licensor shall integrate the URL and shop on-line message with respect to
     its group and team sales efforts generally consistent with its obligations
     under this Exhibit J.

VI.  Licensee
     --------

                                        5

<PAGE>

1.   Upon request, Licensee shall include Licensor's mail order catalogs and/or
     direct mail booklets (prepared and delivered to Licensee by Licensor at
     Licensor's expense) within each package delivered to a Customer of the
     TSA.com Site, unless a given package is not of sufficient size to
     accommodate such catalogs or booklets or the inclusion of such catalog or
     booklets increases Licensee's postage costs for such package (unless
     Licensor reimburses Licensee for such additional postage costs). Licensee's
     obligation under this Section V shall not apply to packages delivered to a
     Customer of the TSA.com Site directly through a manufacturer, distributor
     or vendor.

VII. Phase-In, Future Enhancements, Developments
     -------------------------------------------

1.   The Parties acknowledge that as of the Effective Date, (i) Licensor has an
     existing inventory of signs, shopping bags, employee uniforms and the like
     which Licensor may use up in the ordinary course of business, and that
     Licensor's integration duties hereunder may be phased in as Licensor
     replenishes or replaces its supply of such materials, and (ii) Licensor's
     name is shown on billboards and sports sponsorship signs, and that
     Licensor's integration duties hereunder may be phased in as such billboards
     and signs are replaced or otherwise updated.

2.   As new signs, banners, posters and advertising formats are developed by
     Licensor to replace or supplement the corresponding items reflected herein,
     it is the intent of the Parties that the URL and the shop online message
     shall be integrated in such items in a manner that is equal to or greater
     than that which has been established through Exhibits J, and J1, and the
     attached examples.

                                        6

<PAGE>

Exhibit J1

Circulars: Integration Space Requirements

<TABLE>
<CAPTION>
     Circular      1 inch                2 inches x 7 inches   1/2 inch              1/4 inch
     Page Count    Front Cover Footer    Inside Editorial      Back Cover Footer     Inside Footers
     <S>           <C>                   <C>                   <C>                   <C>
     4             YES                   NO                    YES                   1

     8             YES                   YES                   YES                   2

     12            YES                   YES                   YES                   4

     16            YES                   YES                   YES                   6

     24            YES                   YES                   YES                   10
</TABLE>

Direct Mail Post Cards & Booklets -- Integration Space Requirements*

            Size                 3/4 inch Front    Coupon Back    1/4 inch
                                 Cover Footer      Cover Offer    Inside Footers

            Postcard             NO                YES *          NO

            12 Page Booklet      YES               YES            3

            24 Page Booklet      YES               YES            5

       * If Licensee is participating

<PAGE>

                                   EXAMPLE J1
                                   ----------

[Sample Sports Authority advertising circular containing product images,
descriptions and pricing information]

<PAGE>

                                   EXAMPLE J2
                                   ----------

[Sample Sports Authority advertising circular containing product images,
descriptions and pricing information]

<PAGE>

                                   EXAMPLE J3
                                   ----------

[Sample Sports Authority advertising circular containing product images,
descriptions and pricing information]

<PAGE>

                                   Example J4
                                   ----------

              TSA.com integration into The Sports Authority Stores
              ----------------------------------------------------

Below are the components, which will be used to integrate the web address
in-store:

1. Window Decals

[Sample Sports Authority window decal here]

2. Online Window Banners (Shop on line anytime tagline)

[Sample Sports Authority Window banner here]

3. Store Hours Signs (Shop online anytime tagline)

[Sample Sports Authority store hour sign here]

4. Interior Banner (4 feet x 20 feet)

[Sample Sports Authority interior banner here]

<PAGE>

5. Aisle Directories (web address on the bottom of The Sports Authority logo
slat)

[sample Sports Authority store Aisle directory here]

6. Theme/Seasonal Toppers, Shelf Talkers and Banners
Topper (#4, #5)

[3 samples of Sports Authority store banners here]

Shelf Talker

[sample of Sports Authority shelf talker here]

In-Store Banner with tagline

[sample of Sports Authority store banners here]

7. 4 - 22 inches x 28 inches locations In-Store

8. Shopping Bags - All sizes (TSA.com logo is placed below the TSA logo)

[SPORTS AUTHORITY LOGO HERE]

<PAGE>

                                   EXHIBIT "K"

                       Site Security and URL Registration

 . SSL Certificates. These certificates are used for secure e-commerce
  ----------------
transactions. The certificates certify that the customer is giving their
personal information to a site which indeed is an authorized representative of
the store where they are shopping. Verisign is the certification body and will
need to contact an officer within the company regarding our request for these
SSL certificates as a third party.

                    Main store url (domain):      www.thesportsauthority.com

Internic registrant company name for this domain: The Sports Authority, Inc.
                            Company address:      3383 North State Road 7
                                                  Ft. Lauderdale, FL  33319

(Corporate contact must be an officer in the company named above who has
sufficient authority to approve the validity of GSI's request to represent the
said company in e-commerce transactions)

                          Corporate contact:      Janis Altshuler
                                        Title:    Vice President of E-Commerce
                                        Phone:    (954) 677-6314
                                        Fax:      (954) 677-6243

Dun and Bradstreet number for above company:      17-539-1242

 . DNS. DNS is the Internet address system which allows a customer to reach the
  ---
new store via the desired URL such as www.store.com. This needs to be changed at
                                      -------------
least one week prior to the expected store launch so that the changes have been
propagated to all DNS servers on the Internet. Our policy is to support your
existing store ip address on our servers, so that even after the DNS has been
updated to point to our servers, your existing site will still be reachable
until we have launched the new store.

DNS Technical contact for main URL listed above:  Engineer on duty
                              Contact phone:      (877) 239-4014
                      Contact email address:      engineeringsa@globalsports.com
                                                  ------------------------------

<PAGE>

 . Email aliases. These are the email aliases which customers will use associated
  -------------
with the e-commerce store such as customersupport@domain.com. If your company
                                  --------------------------
uses this domain for mail, you need to add forwarding for the listed email
aliases below that will point to the corresponding mailbox on our servers.

Email aliases which need to be created on your mail server:

Your mail server  points to            our mail server

contactus@store.com             storecustomersupport@globalsportsinc.com
                                ----------------------------------------
webmaster@store.com             storewebmaster@globalsportsinc.com
                                ----------------------------------
info@store.com                  storecustomersupport@globalsportsinc.om
                                ---------------------------------------
customersupport@store.com       storecustomersupport@globalsportsinc.com
                                ----------------------------------------
specialoffers@store.com         storespecialoffers@globalsportsinc.com
                                --------------------------------------
grandopening@store.com          storegrandopening@globalsportsinc.com
                                -------------------------------------
newsletter@store.com            storenewsletter@globalsportsinc.com
                                -----------------------------------
jobs@store.com                  corporate email address for jobs at your company
auctionauthority@store.com      auctionauthority@globalsportsinc.com
--------------------------      ------------------------------------
bugs@store.com                  bugs@globalsportsinc.com
                                ------------------------
my2cents@store.com              my2cents@globalsportsinc.com

For example, if the main domain is thesportsauthority.com, then the first email
alias mapping would be:

contactus@thesportsauthority.com forwards to
--------------------------------
thesportsauthoritycustomersupport@globalsportsinc.com

Who to contact for updating company email server with new aliases: Engineer on
duty
                              Phone: (877) 239-4014
                              Email:

engineeringsa@globalsports.com
------------------------------<PAGE>

                                   EXHIBIT "B"

                                                                    EXHIBIT 10.3

Confidential Treatment has been requested with respect to portions of the
agreement indicated with an asterisk [*]. A complete copy of this agreement,
including the redacted terms, has been separately filed with the Securities and
Exchange Commission.

                                                                  EXECUTION COPY

                         Global Sports Interactive, Inc.

                             -----------------------

                              E-Commerce Agreement

                                     between

                         Global Sports Interactive, Inc.

                                       and

                               Bluelight.com, LLC

<PAGE>

                              E-Commerce Agreement

     This E-Commerce Agreement, dated as of August 10, 2001 (the "Effective
Date"), is made and entered into by and between Global Sports Interactive, Inc.,
a Pennsylvania corporation ("GSI"), Bluelight.com, LLC, a Delaware limited
liability company (the "Company") and Kmart Corporation, a Michigan corporation
(together with its subsidiaries and Affiliates, "Kmart").

                                    Recitals

     WHEREAS, GSI is in the business of developing and operating e-commerce
businesses for specialty retailers, distributors, general merchandisers,
Internet companies and media companies and providing for those companies GSI's
proprietary technology, Web Site design and development capabilities, order
processing capabilities, customer service capabilities, fulfillment
capabilities, centralized inventory management and on-line marketing to enable
those companies to offer e-commerce to their customers;

     WHEREAS, Kmart is in the business of selling a broad assortment of goods
and services to consumers through the Stores (as defined below);

     WHEREAS, the Company is in the business of selling goods and services
through the Internet (as defined below) using certain Kmart Trademarks; and

     WHEREAS, the Company desires to transfer the operation of the Company Site
(as defined below) to GSI to continue to offer for sale Merchandise (as defined
below) through the Internet and to permit the Company and Kmart to engage in
certain Internet marketing and promotions to promote the Stores in accordance
with the terms of this Agreement.

     NOW, THEREFORE, in reliance upon the above recitals (which are made a part
of the Agreement below) and in consideration of the agreements herein, the
Company and GSI (each a "Party" and collectively, the "Parties"), intending to
be legally bound, agree as follows:

Section 1.  Definitions.

Whenever used in this Agreement, the following capitalized terms shall have the
following specified meanings:

     1.1 "Adjusted Operating Profit" means, with respect to a given period, the
Gross Profit for that period less the sum of (i) [*] for that period, as
determined in accordance with GAAP; (ii) the amount obtained by multiplying (A)
the applicable [*] for that period, times (B) the aggregate of all [*] for that
period, as determined in accordance with GAAP; and (iii) any applicable [*] for
that period.

     1.2 "Affiliate" means, as to any Person, any other Person that, directly or
indirectly, is controlled by, is under common control with or controls such
Person, but only as long as such control exists. For this purpose, control means
ownership or voting rights over at least 50% of

                                        1

<PAGE>

the outstanding voting or equity securities of the Person in question or the
power to direct or cause the direction of management or policies of such Person,
whether through voting securities, by contract or otherwise. For purpose of this
Agreement, Kmart will be deemed an Affiliate of the Company.

     1.3  "Aggregate Information" means (i) any information or data derived from
Customer Information, and (ii) all information relating to the financial
performance and/or operations of the Company Site, which in each case is not
specific to a person, does not in either case refer to or identify any specific
Person, and cannot be used, alone or in conjunction with other information, to
identify any specific Person.

     1.4  "Allocated Overhead Rate" means, with respect to a given period, the
percentage obtained by dividing (i) the [*] for that period, by (ii) the sum of
(A) [*] for that period, and (B) [*] (determined in a manner consistent with [*]
for that period.

     1.5  "Business Day" means any day which is not a Saturday, Sunday or
official federal holiday in the United States.

     1.6  "Company Content" means the following content or information owned or
controlled (e.g., by license or otherwise) by the Company or its Affiliates and
furnished by the Company or its Affiliates to GSI in accordance with the terms
of this Agreement: (a) text, graphics, photographs, video, audio and/or other
data or information, and e-mail addresses furnished by the Company or its
Affiliates, solely for use in connection with the Company Site or the promotion
of the Stores, and (b) Kmart's selected print advertisements for the Stores or
the goods and services offered by Kmart in the Stores, including run of press
and insert advertisements which appear in newspapers and magazines, as well as
printed in-store signage, point of sale and display signage and information
promoting events and the goods and services offered by Kmart.

     1.7  "Company Provided Merchandise" means Merchandise which is owned or
controlled by the Company, Kmart or any of their Affiliates and provided to GSI
for the purpose of fulfilling Orders hereunder. "Company Provided Merchandise"
shall not include samples of Merchandise provided by the Company, Kmart or any
of their Affiliates pursuant to Section 3.2.

     1.8  "Company Site" means the Web Site as operated by GSI pursuant to this
Agreement, the primary Home Page for which is identified by the Designated URL
(and any successor or replacement Web Site).

     1.9  "Company Site Functionality" means, collectively: (a) functionality
and features available on the Company Site that GSI may or is required to make
available from time to time, and (b) any future equivalents, improvements and
enhancements of any of the foregoing.

     1.10 "Stores" means any land-based retail store established and/or operated
by Kmart and devoted to the retail sale of a broad assortment of merchandise and
to the provision of related services.

                                        2

<PAGE>

     1.11 "Confidential Information" means all nonpublic information relating to
a Party or its Affiliates that is designated as confidential or that, given the
nature of the information or the circumstances surrounding its disclosure,
reasonably should be considered as confidential. Confidential Information
includes, without limitation, (a) all nonpublic information relating to a
Party's or its Affiliates' technology, customers, business plans, agreements,
promotional and marketing activities, finances and other business affairs, and
(b) all third party information that a Party or its Affiliates is obligated to
keep confidential. Confidential Information may be contained in tangible
materials, such as drawings, data, specifications, reports and computer
programs, or may be in the nature of unwritten knowledge. Confidential
Information does not include any information that (i) has become publicly
available without breach of this Agreement, (ii) can be shown by documentation
to have been known to the receiving Party at the time of its receipt from the
disclosing Party or its Affiliates, (iii) is received from a third party who did
not acquire or disclose such information by a wrongful or tortious act, or (iv)
can be shown by documentation to have been independently developed by the
receiving Party without reference to any Confidential Information.

     1.12 "Customer" means a Person who accesses the Company Site in any manner,
whether or not a purchase is made.

     1.13 "Customer Information" means the name, mailing address, telephone
number, e-mail address, Order and Order processing information (including Order
history) and any other identifying information provided by or obtained from
Customers through the Company Site and/or provided by or obtained from customers
of the Stores; provided, however, Customer Information does not include (i) any
information that either GSI or the Company owns or to which GSI or the Company
has the rights and which is obtained from Customers other than through
transactions contemplated under this Agreement, or (ii) any Aggregate
Information.

     1.14 "Designated URL" means www.bluelight.com and/or www.kmart.com or any
successor or replacement URLs as designated by the Company or Kmart.

     1.15 "Fiscal Year" means GSI's fiscal year, which currently ends on the
Saturday closest to December 31 of a given year.

     1.16 "GAAP" means generally accepted accounting principles, consistently
applied.

     1.17 "Gross Profit" means, with respect to a given period, the aggregate
Net Merchandise Revenue for that period less the actual aggregate cost of goods
sold [*] related to the Net Merchandise Revenue for that period.

     1.18 "GSI Content" means any and all content or information owned or
controlled (e.g., by license or otherwise) by GSI or its Affiliates, including
text, graphics, photographs, video and audio, and furnished by GSI or Affiliates
in connection with the Company Site or otherwise in connection with the
performance of its obligations under this Agreement.

     1.19 "Home Page" means, with respect to a Web Site, the Web page designated
by the operator of the Web Site as the initial and primary end user interface
for the Web Site.

                                        3

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     1.20 "Intellectual Property Rights" means any and all now known or
hereafter known tangible and intangible (a) rights associated with works of
authorship throughout the universe, including but not limited to copyrights,
moral rights, and mask-works, (b) trademark, trade dress and trade name rights
and similar rights, (c) trade secret rights, (d) patents, designs, algorithms
and other industrial property rights, (e) all other intellectual and industrial
property rights of every kind and nature throughout the universe and however
designated (including domain names, logos, "rental" rights and rights to
remuneration), whether arising by operation of law, contract, license, or
otherwise, and (f) all registrations, initial applications, renewals,
extensions, continuations, divisions or reissues hereof now or hereafter in
force (including any rights in any of the foregoing).

     1.21 "Internet" means the system of computer networks interconnected with
routers, worldwide in scope, that facilitates data communication services such
as remote login, file transfer, electronic mail, and the Web, and any successor
to such system.

     1.22 "Inventory Turnover Rate" means, with respect to any given [*] period,
the rate determined by dividing (i) the product obtained by multiplying (A) the
aggregate cost of goods sold for the product in question during the applicable
measurement period, times (B) [*] by (ii) the average inventory (at cost) of the
product in question during the applicable measurement period.

     1.23 "Joint Developments" means any Technology that is jointly developed
through the significant efforts of each Party during the Term; provided,
however, that Joint Developments does not include any GSI Furnished Item or any
Company Furnished Item, as the case may be, or any adaptation, modification,
improvement or derivative work of any GSI Furnished Item or any Company
Furnished Item, as the case may be.

     1.24 "Launch Date" means the date on which the Company Site, as operated by
GSI hereunder, is first made available to the public on the Web.

     1.25 "Look and Feel" means the appearance, coloring, graphics, fonts, logos
and other look and feel characteristics of a Web Site which are unique to the
Web Site and are consistent from page to page and which indicate a common
identity of the various pages and identify such pages as forming a part of a
single Web Site.

     1.26 "Merchandise" means the products and related services offered for sale
by the Company through the Company Site.

     1.27 "Net Merchandise Revenue" means all cash consideration received from
Customers for Orders of Merchandise less all applicable shipping and handling
charges, taxes, returns for which GSI issues a credit, and charges for valued
added services such as gift wrapping.

                                        4

<PAGE>

     1.28 "Non-Company Provided Merchandise" means Merchandise which is not
Company Provided Merchandise. Non-Company Merchandise includes Sporting Goods
Merchandise provided by or through GSI.

     1.29 "Non-Shopping Features" means such content and information on the
Company Site, provided by or through the Company, Kmart or their Affiliates that
may contain or make accessible as part of the Company Site or through links from
the Company Site such information as the following: Company and Kmart corporate
information (e.g. historical background, mission statement, officers and
directors), Store locations, community programs, a link to a Web Site (operated
by the Company or a third party) that provides information about and the ability
to apply to participate in the Company's Internet service provider program,
promotions, Company and Kmart employment opportunities, Company and Kmart
contact information and other information which serves to inform Customers about
the Company, Kmart and the Stores.

     1.30 "Order" means an order for Merchandise made by a Customer.

     1.31 "Person" means, whether or not capitalized, any individual,
corporation (including any non-profit corporation), general or limited
partnership, limited liability company, joint venture, estate, trust,
association, organization, labor union, or other entity or governmental body.

     1.32 "Secondary URLs" means uniform resource locators that (i) are
derivatives of Designated URL, and (ii) such other uniform resource locators
designated by the Company.

     1.33 "Sporting Goods Merchandise" means sports, recreational, athletic
and/or fitness related (i) equipment (e.g. bats, balls, gloves, racquets, clubs,
helmets, skis, fishing and hunting equipment, table games and exercise
equipment), (ii) apparel (e.g. licensed products, hats, jerseys and exercise
clothing), (iii) footwear, and (iv) memorabilia. Sporting Goods Merchandise
shall not include private label sporting goods merchandise and sporting goods
merchandise made exclusively for the Company or Kmart or their Affiliates.

     1.34 "Technology" means any design, specification, content (which includes
product files, catalogs, images and editorial content), data, database,
software, code, template, user interface, technique, algorithm, method, process,
device, procedure, functionality or other technology.

     1.35 "Term" is defined in Section 13.1 of this Agreement.

     1.36 "Trademark" means any trademark, service mark, trade name, URL, domain
name, trade dress, proprietary logo or insignia or other source or business
identifier.

     1.37 "URL" means the uniform resource locator of a Web Site.

     1.38 "Web" means the Internet client-server hypertext distributed
information retrieval system known as the World Wide Web.

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<PAGE>

     1.39 "Web Site" means any point of presence maintained on the Internet or
on any other public data network. With respect to any Web Site maintained on the
World Wide Web or any successor public data network, such Web Site includes all
HTML pages (or similar unit of information presented in any relevant data
protocol) that either (a) are identified by the same second-level domain (such
as http://www.kmart.com) or by the same equivalent level identifier in any
relevant address scheme, or (b) contain branding, graphics, navigation or other
characteristics such that a user reasonably would conclude that the pages are
part of an integrated information or service offering.

Section 2.  Creation and Operation of the Company Site.

     2.1  Design and Development. GSI will design and develop the Company Site
in accordance with this Agreement. The Company Site will contain at a minimum
the functionality and features set forth on Exhibit "A" attached to this
                                            ----------
Agreement and such other functionality and features as may be agreed upon from
time to time by the Parties. Except for the Company Content and Non-Shopping
Features to be provided by the Company hereunder, GSI will provide all content,
creative, design, programming and related services necessary to the design,
development, operation and updating of the Company Site, including incorporating
the features and functionality provided for herein. Subject to Section 2.2, the
Company Site will be comprised of a series of templates developed by GSI that
will define the format and layout of a page on the Company Site and establish
the placement and size of content type blocks (e.g. text, graphics, promotions,
advertising, navigation bar and images). Throughout the Term, GSI will use
commercially reasonable efforts to (i) develop such value added content and
services for the Company Site as may be mutually agreed upon by the Parties, and
(ii) integrate into the operation of the Company Site the contracts set forth on
Exhibit "G" to which the Company or any of its Affiliates are a party (which
----------
Exhibit "G" must be mutually agreed upon by the Parties prior to the Launch
----------
Date) [*] GSI will make available to the Company [*] The Look and Feel
characteristics of the Company Site will be consistent with the Look and Feel of
the Company's current e-commerce Web Site. The Company will provide, and will
cause Kmart and their Affiliates to provide, GSI with the Company Content
necessary for the operation of the Company Site in such format as may be agreed
upon by the Parties. Unless and until GSI provides the Company with the
technology to update the Non-Shopping Features directly, GSI will program,
upload, display and maintain the Non-Shopping Features and will promptly update
the Non-Shopping Features as may be reasonably requested by the Company from
time to time. Upon providing the Company with such technology, the Company will
be responsible for updating the Non-Shopping Features content and GSI will
provide initial training and/or instructions on the use of the technology and
will thereafter provide such assistance that may be reasonably requested by the
Company with respect to the use of such technology.

     2.2  Launch and Modifications. The Parties will work together in good faith
and use commercially reasonable efforts to cause the Launch Date to be on or
before September 17, 2001 or as soon as practicable thereafter. The Company will
have the right to approve the overall design templates and the Look and Feel
characteristics of the Company Site prior to the Launch Date, with such consent
not to be unreasonably withheld or delayed. After the Launch Date, no material
changes to the templates or Look and Feel of the Company Site will be made
without the approval of the Parties. [*]

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<PAGE>

     2.3 Hosting, Maintenance and Operation of the Company Site. GSI will host,
maintain and operate the Company Site in accordance with this Agreement. GSI
will be responsible for hosting, or arranging for the hosting by a reputable
third-party hosting company, the Company Site. The equipment and software used
by GSI to host and operate the Company Site and the security provided by GSI
with respect to the Company data and Company Site will be at least generally
comparable to then current industry standards for the Web Sites of other leading
general merchandisers. GSI agrees that during the Term it will [*]. The Company
Site will be operated at the Designated URL and at such other URL as may be
agreed upon by the Parties. The Company will ensure that, during the Term, the
Designated URL and all Secondary URLs are registered with Network Solutions Inc.
(or another reputable registrar) in such a way that the Designated URL and all
Secondary URLs point to the domain name servers designated by GSI for the
Company Site. The Company will comply with the requirements of and, prior to the
Launch Date, provide the information set forth on, Exhibit "B" attached to this
                                                   ----------
Agreement with respect to security for and registration of all URLs for the
Company Site.

     2.4 Order Processing, Fulfillment and Returns. GSI will be responsible for
all aspects of Order receipt, processing and fulfillment for the Company Site,
including those functions set forth on Exhibit "C" attached hereto. The Order
                                       ----------
receipt, processing and fulfillment services provided by GSI with respect to the
Company Site will [*]. GSI has the right only to accept Orders for shipments to
addresses in the United States and APO/FPO addresses and such other countries or
territories to which GSI then generally accepts Orders for shipment. The returns
policy for the Company Site will provide that all returns of Merchandise will be
returned to the Stores or Company's designated returns processing facility. For
returns to the Stores, [*] For returns to the Company's returns processing
facility, [*]

     2.5 Customer Service. GSI will be responsible for providing customer
service to users of the Company Site, including on-line and through toll-free
telephone support. Initially the telephone support shall be provided by GSI,
and, at the Company's option, through a toll-free telephone number established
by the Company that will provide a link to GSI's customer service for the
Company Site. The customer service provided to users of the Company Site will be
provided in the name of the Company Site (unless otherwise required by law or
privacy policy or not to be misleading) and will [*]. GSI will provide customer
service in a courteous and professional manner and provide for Customer feedback
through appropriate features on the Company Site and through the toll-free
number for the Company Site. In the event that GSI receives inquiries or
complaints from customers relating to the Stores, GSI will promptly refer all
such customers to a the email reply service and/or toll-free telephone number
for customer service furnished to GSI by the Company. In the event that the
Company receives inquiries or complaints from customers relating to the Company
Site, the Company will promptly refer all such customers to the email reply
service and/or toll-free telephone number for GSI's customer service for the
Company Site. If, in any quarter during the Term, GSI's customer service for the
Company Site receives telephone inquires concerning matters for which GSI does
not have responsibility hereunder in a number greater than [*], then the Company
shall pay to GSI [*].

     2.6 ISP Maintenance and Support. The Company acknowledges and agrees that
GSI does not, and will not, have any obligations (other as provided in Section
2.5) with respect

                                        7

<PAGE>

to the maintenance, support or any other aspects of the Company's current or any
future Internet service provider programs.

     2.7 Web Site Transition Plan. As soon as practicable after the Effective
Date, the Parties will mutually agree upon a transition plan to address (i) the
transfer of account information from users of the current Company e-commerce Web
Site to GSI for use in connection with the Company Site, (ii) the redemption of
on-line gift cards, gift certificates, coupon and discount codes issued prior to
the Launch Date, (iii) customer service requests received after the Launch Date
which relate to events occurring prior to the Launch Date, and (iv) such other
transition matters as may be necessary to transition the operation of the
Company's current e-commerce Web Site to GSI as contemplated hereunder.

     2.8 Seamless Operations. The Parties agree that it is important for
Customers to perceive the Company Site as an extension of the Stores and as part
of Kmart's multi-channel distribution plans. Accordingly, the Parties agree to
work in good faith and use commercially reasonable efforts to perform their
respective obligations hereunder as seamlessly as practicable under the
Company's and/or Kmart's brand. As a result of the need for Customers to
perceive the Company Site as an extension of the Company and Kmart, the Company
agrees to, and will cause Kmart to, provide GSI with prior notice of any
intended actions if they believe such actions will have a material impact on the
Company Site, the ability of GSI to perform its obligations hereunder, and/or
the volume of Customers or callers accessing the Company Site or customer
service telephone support for the Company Site. The failure of the Company to
provide any such notice will not be deemed a breach of this Agreement, and GSI
will not be responsible for any failure to perform resulting from such failure
to notify.

     2.9 E-commerce Transactions prior to the Launch Date. The Company
acknowledges and agrees that GSI does not, and will not, have any obligations
(other than as agreed to pursuant to Section 2.7) with respect to the design,
development, operation, or maintenance of the Company's or its Affiliate's
(other than Kmart) e-commerce businesses or Web Sites that existed prior to the
Launch Date.

Section 3.  Merchandising; Inventory Maintenance.

     3.1 Merchandising; Assortment Plans. In order to facilitate appropriate and
comprehensive inventory planning (including capacity, staffing, economic and
other related factors) and to maximize merchandise revenues and profit from the
Company Site, the Parties will work together in good faith to prepare mutually
agreed upon merchandising assortment plans (each a "Merchandise Assortment
Plan") for the Company Site at least [*] prior to the beginning of each [*]
(other than the first Merchandise Assortment Plan which will be prepared as soon
as practicable prior to the Launch Date). Each Merchandise Assortment Plan will
include the following, in reasonable detail, with respect to all Merchandise:
[*] With respect to Company Provided Merchandise, the Merchandise Assortment
Plan will also include: [*]. The Parties will work together to update the
Merchandise Assortment Plans as may be reasonably necessary or desirable to
maximize merchandise revenues and profit from the Company Site. The Company will
make the final determination on the actual Merchandise to be offered for sale

                                        8

<PAGE>

through the Company Site; provided, however GSI will not, at its option, be
obligated to offer for sale through the Company Site [*]

     3.2 Product Images and Descriptions; Samples. Subject to the Company
providing GSI with all reasonably requested information for the Merchandise to
be included on the Company Site, GSI will be responsible for the creation and
maintenance of the digital images and product descriptions related to such
Merchandise. The Company agrees to use commercially reasonable efforts to obtain
and/or to assist GSI in obtaining product images and descriptions directly from
vendors, manufacturers and other third parties. All such product images and
descriptions created by GSI (other than product images and descriptions relating
to Merchandise that is exclusive to the Company or its Affiliates, which will be
deemed Company Content) will be deemed GSI Content for purposes of this
Agreement; [*]. The Company agrees to provide GSI with such samples of
Merchandise reasonably requested by GSI for Merchandise to be included on the
Company Site. The Company will retain ownership to all such samples.

     3.3 Company Provided Merchandise Shipments. The Company will use
commercially reasonable efforts to deliver, or cause Kmart or its Affiliates to
deliver, to GSI the Company Provided Merchandise in such quantities and at such
times as may be required to [*]. The Company will, and will cause Kmart and its
Affiliates to, use commercially reasonable efforts to require merchandise
suppliers to package products in a manner to minimize GSI's receiving costs
based upon specifications provided by GSI. If the amount or type of Merchandise
actually received by GSI differs from the amount and type of Merchandise
reported by the Company as shipped, GSI will notify the Company of such
discrepancy within [*] days after receipt of such Merchandise, and the Parties
will adjust their records to reflect such verifiable differences. Additionally,
GSI will notify the Company of any obviously damaged or defective Merchandise
within an average of [*] Business Days of receipt and will notify the Company of
any non-obviously damaged or defective Merchandise promptly after discovering
such damage or defect. GSI agrees to provide the Company with all reasonably
requested information related to such damaged or defective Merchandise to permit
the Company to file claims for such Merchandise. The Company may inspect such
delivered Merchandise to verify any discrepancy in quantity and/or damage or
defect. GSI will provide the Company with [*]. GSI will provide the Company with
receiving documents for Company Provided Merchandise on a timely basis through a
mutually agreed upon process.

     3.4 Physical Inventory[*]. The Company may, at its expense, upon at least
sixty (60) days prior written notice (but in no event between October 1 and
December 31 of any year), conduct a physical inventory of the Company Provided
Merchandise located at GSI owned or controlled facilities; provided that (i) any
such physical inventory is conducted in a manner designed not to unreasonably
interfere with GSI's ordinary business operations; and (ii) such physical
inventory may not occur more frequently then one time every twelve (12) months.
GSI will reasonably cooperate with the Company in the performance of such
physical inventories. If any [*] Additionally, GSI will be [*] The Company will
have the right to file UCC-1 statements, which shall be subject to GSI's
reasonable approval, to identify the Company Provided Merchandise in the
possession of GSI. GSI agrees to take, at the Company's expense, such other
actions as may be reasonably requested by the Company to protect Company's
ownership in the

                                        9

<PAGE>

Company Provided Merchandise; provided, however, in no event will GSI be
obligated to segregate the Company Provided Merchandise from other merchandise.

     3.5 Drop Ship Arrangements. From time to time during the Term, the Company
may enter into appropriate arrangements with drop ship vendors which are
selected by the Company to provide Merchandise to be offered for sale through
the Company Site. The Company agrees that such drop ship vendors will be
required to agree to comply with the applicable GSI service level standards
relating to drop ship vendors as provided to the Company by GSI.

     3.6 Sporting Goods Merchandise. Notwithstanding any provision herein to the
contrary, GSI will be the exclusive source of Sporting Goods Merchandise for
sale through the Company Site to the extent GSI chooses to provide such Sporting
Goods Merchandise and shall provide such Merchandise in accordance with the
purchase order terms and conditions set forth on Exhibit "H", which will be
                                                 ----------
agreed upon by the Parties prior to the Launch Date. GSI may provide such
Sporting Goods Merchandise directly or through drop ship vendors chosen by GSI.
The Company will pay GSI for each unit of Sporting Goods Merchandise sold
through the Company Site an amount equal to [*].

     3.7 Return of Unsold Merchandise. Notwithstanding any provision herein to
the contrary, in the event that GSI retains any Company Provided Merchandise for
more than [*] and for which [*] then GSI will have the right to return such
excess Merchandise to the Company. GSI will deliver such excess inventory to the
Company, "freight collect," to a single destination as specified by the Company.
Additionally, upon the expiration or termination of this Agreement, GSI will
promptly return to the Company all Company Provided Merchandise then in GSI's
possession and control, pursuant to the same procedures as apply to the return
of excess inventory in this Section 3.7.

     3.8 Product Recalls. The Parties agree that in the event that GSI is
obligated to process any product recalls, or in the event that the Company
requests that GSI process any product recalls, for Merchandise sold through the
Company Site, then the Parties will mutually agree upon the procedures to
effectuate such recall and the Company will reimburse GSI for its reasonable
costs associated with such recall, other than costs associated with recalls of
Sporting Goods Merchandise, which, as between the Parties, will be the
responsibility of GSI.

Section 4. Treatment of Sales; Pricing; Sales and Use Taxes.

     4.1 Treatment of Sales. The Company will be the seller of all Merchandise
and related fulfillment services (i.e. shipping, gift wrapping and other value
added services) sold or furnished through the Company Site, and all revenues
from the sale of such Merchandise and such services will be Company revenues.
The Parties agree to execute additional mutually agreed upon documentation
necessary or desirable to reflect such treatment of sales. GSI agree to use
commercially reasonable efforts to resolve and minimize chargebacks relating to
the Company Site.

     4.2 Pricing of Merchandise and Services. The Company will be responsible
for

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<PAGE>

establishing the selling price for the Merchandise and related Customer
fulfillment services (i.e. shipping, gift wrapping and other value added
services) which will be charged to the Customer with respect to Orders through
the Company Site; provided, however, the Company agrees that until the first
anniversary of the Effective Date, the shipping charges with respect to Orders
for Merchandise will be [*] Notwithstanding the preceding sentence [*] After the
first anniversary of the Effective Date, the Company will have the right to,
subject to reasonable technological constraints, establish revised shipping
charges for Orders of Merchandise through the Company Site.

     4.3 Sales and Use Taxes. As between the Parties, the Company will be
responsible for all sales and use taxes imposed on sales pursuant to Orders
through the Company Site and the Company will be responsible for the timely
notification, remittance, filing and reporting of all such taxes to the proper
tax authorities at the rates required by law. GSI will provide to the Company or
its Affiliates information necessary for the Company to meet its filing
requirements with respect to such sales and use taxes. With respect to Orders
though the Company Site, GSI will only be obligated to collect, on behalf of the
Company, sales and use taxes from Customers at the rates and in those
jurisdictions as specified in writing by the Company. GSI will remit all such
taxes collected by GSI to the Company as provided in Section 7.4 hereof. The
Parties further agree that all Orders to be fulfilled with Sporting Goods
Merchandise will be treated as purchases for resale by the Company to the end
users. For accounting, financial reporting, and sales and use tax purposes, the
Parties agree to treat such purchases accordingly. In connection with GSI owned
inventory, the Company will furnish to GSI resale certificates for the
Commonwealths of Pennsylvania and Kentucky and such other jurisdictions as may
be reasonably requested by GSI from time to time. Upon the reasonable request of
a Party, the other Party will provide the requesting Party with satisfactory
evidence of its compliance with the obligations in this Section 4.3.

     4.4 Kmart Gift Cards. The Parties will mutually agree upon procedures and
the accounting to permit Customers to pay for Orders through the use of Kmart
gift cards [*] Sales of the Kmart's gift cards will [*]

Section 5.  Promotion and Advertising.

     5.1 Company Activities and Obligations. Commencing no later than the Launch
Date and continuing during the Term, the Company will, and will cause Kmart to,
promote and advertise the Company Site and integrate a "shop-on-line" message
and the Designated URL and the other URLs for the Company Site, into its
promotions and advertising, including in the Stores, in accordance with Exhibit
                                                                        -------
"D" to this Agreement.
--

     5.2 GSI Activities and Obligations. GSI [*] and may use the Company's
Trademarks in connection therewith; provided however, GSI will only use such
Trademarks in conformance with the use guidelines of the Company set forth on
Exhibit "E" attached hereto. Upon the approval by the Company of an affiliate
----------
program created by GSI for the Company Site, GSI may offer through the Company
Site an affiliate program.

Section 6.  Implementation.

                                       11

<PAGE>

     6.1 Account Managers. Each Party will assign a dedicated account manager to
oversee the performance of such Party's obligations under this Agreement and to
facilitate coordination of the Parties' performance of their respective
obligations. Additionally, the Company will assign a dedicated marketing
manager, operations manager and merchandise manager (and appropriate supporting
buying staff) to oversee the applicable Company obligations under this
Agreement. Each Party's managers will be subject to change from time to time by
the assigning Party upon notice to the other Party. The account managers will
meet at least once every quarter (or with such other frequency as may be
mutually agreed upon) during the Term to review the implementation of this
Agreement and to explore methods for improving performance.

     6.2 Cooperation. During the Term, the Parties will cooperate in good faith
and use commercially reasonable efforts to (i) provide a positive customer
experience on the Company Site, (ii) maximize customers and revenues from or
through the Company Site and (iii) review opportunities for marketing the
Company Site.

Section 7.  Collection of Sales Proceeds; Compensation and Expenses.

     7.1 General. Except as expressly provided for elsewhere in this Agreement,
each Party will be responsible for all costs and expenses incurred by such Party
in performing its obligations under this Agreement.

     7.2 Collection of Sales Proceeds. All proceeds from the sale of Merchandise
and related services through the Company Site will be collected and processed by
GSI on behalf of the Company.

     7.3 Operational Fees. In addition to any other amounts due GSI hereunder,
the Company will pay to GSI, by wire transfer of immediately available funds,
the following fees for the operation of the Company Site: [*]

     7.4 Transaction Payments. Within [*] days after the end of each [*] of
GSI's Fiscal Year during the Term, GSI will remit to the Company[*] an amount
equal to the difference obtained by subtracting from the result obtained by
adding (i)(A) through (i)(D), the result obtained by adding (ii)(A) through
(ii)(G), less all amounts paid by GSI to the Company pursuant to Section 7.10
with respect to the [*] in question:

     (i) Amounts payable to the Company:
         ------------------------------

         (A)    the aggregate [*]

         (B)    the aggregate amounts [*]

         (C)    the Revenue Share, if any, payable to the Company pursuant to
Section 7.5 below for [*]

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          (D)  the Profit Share, if any, payable to the Company pursuant to
Section 7.6 below for [*]

     (ii) Amounts payable to GSI:
          ----------------------

          (A)  the aggregate [*]

          (B)  the [*] payable to GSI pursuant to Section 7.7 below [*]

          (C)  the actual aggregate [*]

          (D)  the actual aggregate[*]

          (E)  if positive, an amount, if any, equal to the product obtained by
subtracting (i) the actual aggregate [*] from (ii) the aggregate [*]

          (F)  if positive, an amount, if any, equal to the product obtained by
subtracting (i) the actual aggregate [*] from (ii) the aggregate [*]

          (G)  an amount equal to the aggregate [*] and

          (H)  an amount equal to the aggregate [*]

In the event that the difference from subtracting (ii) from (i) above is
negative, GSI will submit an invoice to the Company for such amount and the
Company will remit to GSI such payment within [*] from such invoice. Each
payment hereunder will include a report, showing in reasonable detail, the
calculation of the payments provided for therein.

     7.5  Revenue Share. Commencing with Orders received after [*] and
continuing throughout the remaining Term, GSI will pay to the Company a [*]
revenue share equal to [*] provided, however, GSI will not be required to pay
any revenue share to the Company in connection with Orders which result from a
Customer clicking through to the Company Site as a result of any online
marketing, advertising or promotional agreement or arrangement for which GSI
paid or is required to pay a revenue share, transaction fee, impression fee,
promotional or advertising fee or other fee in connection with such Order. GSI
will pay such revenue share to the Company as provided in Section 7.4 above.

     [*]

     7.6  Profit Share. Commencing with [*] and continuing throughout the
remaining Term, GSI will pay to the Company a [*] profit share in an amount
equal to the amount determined by multiplying (i) [*] times (ii) [*] GSI will
pay such profit share to the Company as provided in Section 7.4 above.

     [*]

                                       13

<PAGE>

     7.7 [*] As a service fee for the performance of its services hereunder, the
Company shall pay GSI, [*] an amount based on [*]

         (a) Commencing on [*] and continuing through [*] the Company agrees
that, with respect to any given [*] GSI will be entitled to [*] in an amount
equal to the greater of (i) [*] and (ii) [*] in an amount equal to the sum of
(A) the product obtained by multiplying (1) [*] times (2) [*] and (B) the
product obtained by multiplying (1) [*] times (2) [*]

         (b) Commencing on [*] and continuing through [*] the Company agrees
that, with respect to any given [*] GSI will be entitled to [*] in an amount
equal to the greater of (i) [*] and (ii) [*] an amount equal to the sum of (A)
the product obtained by multiplying (1) [*] times (2) [*] and (B) the product
obtained by multiplying (1) [*] times (2) [*]

         (c) The Company will pay to GSI [*] as calculated above in accordance
with Section 7.4.

     7.8 Designated Account; Interest Income. GSI will establish and maintain a
separate account(s) for the funds collected by GSI on behalf of the Company
pursuant to this Agreement. The Parties agree that GSI will retain any interest
income on any funds collected by GSI pursuant to this Agreement.

     7.9 Records and Audit Rights. During the Term of this Agreement, and for a
period of [*] after their creation, each Party will keep complete and accurate
books and records sufficient to verify compliance or non-compliance with the
provisions of this Agreement. Each Party will, upon at least thirty (30) days'
prior written request by the other Party, allow such Party, or a representative
of such Party who is reasonably acceptable to the audited Party, to audit such
books and records at the audited Party's premises to the extent necessary to
verify the performance of the other Party's obligations hereunder; provided that
(a) any such audit is conducted during normal business hours and in a manner
designed to not unreasonably interfere with the audited Party's ordinary
business operations; (b) audits may not occur more frequently than once every
twelve (12) months; and (c) each such audit may only cover periods that were not
previously audited. The audited Party will cooperate with the auditing Party and
its representatives in the conduct of such audit. If any audit reveals that the
audited Party has failed properly account for, charge and/or pay any amount
hereunder which results in an overpayment by the auditing Party or an
underpayment by the audited Party, then the audited Party will promptly pay the
auditing Party any such amount, together with interest on the monies owed at an
annual rate of two percent (2%) over the prime rate of interest reported in The
Wall Street Journal from on the date on which such overpayment was made or such
overdue amount should have been paid to the auditing Party. If any audit reveals
that the audited Party has failed properly account for, charge and/or pay any
amount hereunder which results in an overpayment by the audited Party or an
underpayment by the audited Party, by [*] or more, then in addition to paying
any such amount due, the audited Party will reimburse the other Party for its
reasonable out-of-pocket expenses incurred in conducting such audit. Each Party
agrees that any information learned by or disclosed to it or its auditor in
connection with such audit is Confidential Information of the audited Party.

                                       14

<PAGE>

     7.10 Company Provided Merchandise Cost of Sales. Within [*] after [*] GSI
will remit,[*] to the Company [*]

Section 8.  Customer Information and Privacy Policies.

     8.1  Customer Information. [*] Each Party will use the Customer Information
in compliance with the privacy policy for the Company Site and applicable law.
Each Party will treat such Customer Information as Confidential Information of
the [*]

     8.2  Privacy Policy. Within thirty (30) days after the date of this
Agreement, but in any event prior to the Launch Date, the Parties will mutually
agree upon the privacy policies for, and that will be posted on, the Company
Site. Each Party will abide by such privacy policies, as such may be amended
from time to time. Any amendments to such privacy policies must be agreed upon
by the Parties; provided, however, that if any amendment to the privacy policies
is required by applicable law, the privacy policies will be amended to comply
with such requirements.

     8.3  Aggregate Information. [*] will own the Aggregate Information;[*]
Subject to the foregoing, [*] will treat such Aggregate Information as
Confidential Information of [*] hereunder.

     8.4  E-Mail Promotions. GSI may send e-mail promotions to those Customers
who have not opted-out for the promotion of the Company Site, so long as the
form and content are approved in advance by the Company.

Section 9.  Proprietary Rights.

     9.1  Ownership.

          (a)  The Company. As between the Parties, the Company reserves all
right, title and interest in and to the "Company-Furnished Items" (as defined
below), along with all Intellectual Property Rights associated with any of the
foregoing, and no title to or ownership of any of the foregoing is transferred
or, except as expressly set forth in Section 9.2, licensed to GSI or any other
Person. GSI hereby assigns to the Company all right, title and interest that it
may have or acquire in and to such items and all associated Intellectual
Property Rights, and GSI will take, at the Company's expense, any actions
(including execution and delivery of affidavits and other documents) reasonably
requested by the Company to effect, perfect or confirm the Company's or its
designee's right, title and interest therein. As used herein, "Company-Furnished
Item" means any Company Content or any Trademark or Look and Feel of the Company
Site that (a) is owned or controlled (e.g., by license or otherwise) by the
Company or its Affiliates, as the case may be, and (b) is furnished by the
Company for use in connection with the activities contemplated by this
Agreement. As used herein, "Company-Furnished Item" will also include, without
limitation, any adaptation, modification, improvement or derivative work of any
Company-Furnished Item that is developed by either Party or jointly by the
Parties; provided, however, that the Company-Furnished Items do not include any
GSI-Furnished Item (as defined below), any Joint Developments, or any
adaptation, modification, improvement or

                                       15

<PAGE>

derivative work of the any GSI-Furnished Item or any Joint Developments. At the
termination of the Agreement, GSI will return all Company-Furnished Items to the
Company, and GSI will have no further rights thereto.

           (b) GSI. As between the Parties, GSI reserves all right, title and
interest in and to the "GSI-Furnished Items" (as defined below) and the
"GSI-Owned Developments" (as defined below), along with all Intellectual
Property Rights associated with any of the foregoing, and no title to or
ownership of any of the foregoing is transferred or licensed to the Company or
any other Person. The Company hereby assigns and agrees to assign to GSI all
right, title and interest to such items and all associated Intellectual Property
Rights, and the Company will take, at GSI's expense, any actions (including
execution and delivery of affidavits and other documents) reasonably requested
by GSI to effect, perfect or confirm GSI's or its designee's right, title and
interest therein. As used herein, "GSI-Furnished Item" means any GSI Content or
any Technology or Trademark of GSI that (a) is owned or controlled (e.g., by
license or otherwise) by GSI or its Affiliates, as the case may be, and (b) is
furnished by GSI for use in connection with the activities contemplated by this
Agreement. "GSI-Owned Development" means any Technology (including any
adaptation, modification, improvement or derivative work of any GSI-Furnished
Item) that is developed solely by GSI or jointly by the Parties for use on the
Company Site in connection with the activities contemplated by this Agreement or
that is developed by GSI for use on the Web Sites that it operates, which may
include the Company Site. Notwithstanding the foregoing, neither the
GSI-Furnished Items nor the GSI-Owned Developments will include any
Company-Furnished Item or any Joint Developments, or any adaptation,
modification, improvement or derivative work of the any GSI-Furnished Item or
any Joint Developments. The GSI-Owned Developments will, however, include all
adaptations, modifications, improvements or derivative works of the Company Site
Functionality that are developed by GSI or jointly by the Parties. At the
termination of the Agreement, the Company will return all GSI-Furnished Items to
GSI, and the Company will have no further rights thereto.

           (c) Joint Developments. GSI will own all Joint Developments;
provided, however, upon the termination or expiration of this Agreement, GSI
hereby grants to the Company a perpetual, royalty-free license to use the Joint
Developments solely to operate a Company or Kmart controlled Web Site. Joint
Developments will be deemed Confidential Information of GSI; provided, however,
[*]

      9.2  Company License. The Company, and as applicable Kmart, hereby grants
to GSI, during the Term, a worldwide, non-transferable license to use the
Company-Furnished Items supplied by the Company as may be reasonably necessary
to perform its obligations under this Agreement and to sublicense the
Company-Furnished Items supplied by the Company to third parties in connection
with advertising and promotion agreements and arrangements permitted under this
Agreement; provided, however, that GSI will not use Trademarks of the Company or
its Affiliates, including in any advertising, except in conformance with the use
guidelines of the Company set forth on Exhibit "E" attached to this Agreement
                                       ----------
[*] All goodwill arising out of any use of any of the Company's or its
Affiliate's Trademarks by, through or under GSI will inure solely to the benefit
of the Company or such Affiliate, as the case may be.

                                       16

<PAGE>

     9.3   Non-Disparagement. Neither GSI nor any of its Affiliates will use the
Trademarks of the Company or its Affiliates in a manner that disparages the
Company or its Affiliates, as the case may be, or its products or services, or
portrays the Company or its Affiliates, as the case may be or its products or
services in a false, competitively adverse or poor light. GSI and its Affiliates
will avoid knowingly taking any action that diminishes the value of such marks.

Section 10.  Representations and Indemnification.

     10.1  Representations. Each Party represents and warrants to the other
that: (a) it has the full right, power and authority to enter into this
Agreement and perform its obligations hereunder; and (b) when executed and
delivered, this Agreement will constitute its legal, valid and binding
obligation enforceable against it in accordance with its terms.

     10.2  Indemnity.

           (a) GSI will defend, indemnify and hold harmless the Company and its
Affiliates (and their respective employees, officers, directors and
representatives) from and against any and all claims, costs, losses, damages,
judgments and expenses (including reasonable attorneys' fees) arising out of any
third party claim, action, suit or proceeding (a "Claim"), to the extent it is
based on (i) the creation, operation or content of the Company Site (other than
any items or materials supplied by the Company for use on the Company Site or
otherwise pursuant to this Agreement, including the Company Content) and the
fulfillment obligations of GSI hereunder, (ii) any actual or alleged breach of
GSI's representations, warranties and/or obligations as set forth in this
Agreement, (iii) any actual or alleged infringement of any Intellectual Property
Rights by any materials provided by GSI for use on the Company Site or provided
by GSI to the Company for its use under this Agreement, (iv) any failure or
alleged failure of GSI to comply with any applicable law, rule or regulation
concerning the performance of its obligations hereunder, or (v) Claims based
upon product liability, product labelling, personal injury or death relating to
any Sporting Goods Merchandise supplied by or on behalf of GSI. Subject to
Section 10.3, GSI will pay any award against the Company and its Affiliates (and
their respective employees, officers, directors or representatives) and any
costs and attorneys' fees reasonably incurred by them resulting from any such
Claim.

           (b) The Company will defend, indemnify and hold harmless GSI and its
Affiliates (and their respective employees, officers, directors and
representatives) from and against any and all claims, costs, loses, damages,
judgments and expenses (including reasonable attorneys' fees) arising out of any
third party Claim, to the extent it is based on (i) any actual or alleged breach
of the Company's representations, warranties and/or obligations as set forth in
this Agreement, (ii) any actual or alleged infringement of any Intellectual
Property Rights by any materials provided by the Company to GSI for its use on
the Company Site or otherwise under this Agreement, including the Company
Content, (iii) the offer, marketing or sale of any products or services through
the Company Site (other than marketing provided by GSI), including Claims based
upon product liability, personal injury or death relating to any products (other
than any Sporting Goods Merchandise supplied by or on behalf of GSI) or services
(other than GSI performed services) sold by the Company hereunder, (iv) any act,
omission, event,

                                       17

<PAGE>

transaction or matter concerning or related to the operation of the Company's
business prior to the Launch Date any Web Site operated by or on behalf of the
Company other than the Company Site as operated by GSI, or the cessation of the
operation of any such Web Site, any agreement or arrangement entered into by the
Company prior to the Launch Date, or any current or future Company Internet
service provider programs, or (v) any failure or alleged failure of the Company
to comply with any applicable law, rule or regulation. Subject to Section 10.3,
the Company will pay any award against GSI and its Affiliates (and their
respective employees, officers, directors or representatives) and any costs and
attorneys' fees reasonably incurred by them resulting from any such Claim.

     10.3  Procedure. In case any claim, action, suit or proceeding is at any
time brought against a Party or its Affiliates (or any of their respective
employees, officers, directors or representatives) (an "Indemnified Party") and
such Indemnified Party is entitled to indemnification pursuant to Section 10.2,
the party obligated to provide such indemnification (the "Indemnifying Party")
will defend such claim, action, suit or proceeding, at the sole expense of the
Indemnifying Party, using counsel selected by the Indemnifying Party. The
Indemnified Party will give prompt notice of any Claim to the Indemnifying
Party. If the Indemnifying Party fails to take timely action to defend such a
Claim or proceeding after having received written notice from the Indemnified
Party of such failure, the Indemnified Party may defend such a Claim at the
Indemnifying Party's expense. The Indemnifying Party will keep the Indemnified
Party fully advised with respect to such Claims and the progress of any suits,
and the Indemnified Party will have the right to participate, at the Indemnified
Party's expense, in any suit instituted against it and to select attorneys to
defend it, which attorneys will be independent of any attorneys chosen by the
Indemnifying Party relating to such claim or related claim. The Indemnifying
Party may settle, compromise or otherwise enter into any agreement regarding the
disposition of any claim against the Indemnified Party without the prior written
consent and approval of the Indemnified Party, so long such settlement,
compromise or disposition does not adversely affect the Indemnified Party. The
obligations of the Indemnifying Party pursuant to this Section 10 will survive
expiration or earlier termination of this Agreement.

Section 11.  Disclaimers and Limitations.

     11.1  DISCLAIMER OF WARRANTIES. EXCEPT AS OTHERWISE PROVIDED IN THIS
AGREEMENT, NEITHER PARTY MAKES, AND EACH PARTY HEREBY WAIVES AND DISCLAIMS, ANY
REPRESENTATIONS OR WARRANTIES REGARDING THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OR IMPLIED WARRANTIES
ARISING OUT OF COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EACH PARTY SPECIFICALLY
DISCLAIMS ANY REPRESENTATION OR WARRANTY REGARDING (A) THE AMOUNT OF SALES
REVENUES THAT MAY OCCUR DURING THE TERM, AND (B) ANY ECONOMIC OR OTHER BENEFIT
THAT IT MIGHT OBTAIN THROUGH ITS PARTICIPATION IN THIS AGREEMENT (OTHER THAN THE
SPECIFIC SUMS TO BE PAID PURSUANT TO THIS AGREEMENT).

                                       18

<PAGE>

     11.2  LIMITATION OF DAMAGES. EXCEPT TO THE EXTENT AWARDED TO A THIRD PARTY
IN A JUDGMENT AGAINST WHICH A PARTY IS ENTITLED TO INDEMNIFICATION PURSUANT TO
SECTION 10, OR TO THE EXTENT ARISING OUT OF AN INTENTIONAL BREACH OF THIS
AGREEMENT, NEITHER PARTY WILL BE LIABLE (WHETHER IN CONTRACT, WARRANTY, TORT
(INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE), PRODUCT LIABILITY OR OTHER THEORY),
TO THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY FOR COST OF COVER OR FOR ANY
INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES
(INCLUDING DAMAGES FOR LOSS OF PROFIT, BUSINESS OR DATA) ARISING OUT OF THIS
AGREEMENT.

Section 12.  Company and its Affiliates E-Commerce Activities.

     12.1  Company Site. During the Term, GSI will [*] for the Company and its
Affiliates. [*] GSI will be entitled to provide all services necessary to create
and operate the business of the Company and its Affiliates relating to the sale
of merchandise to consumers on or through the Internet, including through the
Company Site, and (ii) neither the Company nor its Affiliates will, directly or
indirectly, sell merchandise or services to consumers on or through the Internet
or assist any third party with which the Company or any of its Affiliates has an
agreement or arrangement to, directly or indirectly, sell merchandise or
services to consumers on or through the Internet ("Third Party Providers"), [*]
The Company will keep, and will cause [*] Notwithstanding anything in this
Section 12 to the contrary, the Company and Kmart will be entitled to promote
and advertise the Stores over the Internet without limitation.

     12.2  Web-Enabled Kiosks. The Parties acknowledge that, as of the Effective
Date, [*] GSI will use commercially reasonable efforts to [*] The Parties agree
that, during the Term, all kiosks will be [*].

Section 13.  Term and Termination.

     13.1  Term. Subject to the earlier termination rights of the Parties set
forth herein, the Term of this Agreement will commence on the Effective Date
and, unless extended or earlier terminated as provided elsewhere in this
Agreement, will automatically expire on [*].

     13.2  Termination for Breach. Without limiting any other rights or remedies
(including, without limitation, any right to seek damages and other monetary
relief and the rights under Sections 13.3 and 13.4) that either Party may have
in law or otherwise, either Party may terminate this Agreement if the other
Party fails to perform any of its obligations hereunder; provided that (a) the
non-breaching Party sends written notice to the breaching Party describing in
reasonable detail the breach and stating its intention to terminate this
Agreement unless such breach is cured, and (b) the breaching Party does not cure
the breach within sixty (60) days following its receipt of such notice;
provided, however, that if the breaching party has diligently attempted to cure
the breach during such sixty (60) day period but has not cured the breach by the
end of such sixty (60) day period, the non-breaching party may not terminate
this Agreement so long as the breaching party continues to diligently attempt to
cure the breach and such breach is cured by the end of the thirty (30) day
period following such sixty (60) day period.

                                       19

<PAGE>

Notwithstanding the foregoing, GSI will be deemed to have cured a breach
premised upon failure to comply with any of its obligations set forth in [*] in
an applicable measurement period by fully complying with such obligation in the
first full measurement period after notice of default is received.

     13.3 Company Termination. The Company will be entitled to terminate this
Agreement immediately upon written notice to GSI if GSI becomes insolvent,
admits in writing its inability to pay debts as they mature, institutes or has
instituted against it any bankruptcy, reorganization, debt arrangement,
assignment for the benefit of creditors, or other proceeding under any
bankruptcy or insolvency law or dissolution, receivership, or liquidation
proceeding (and, if such proceeding is instituted against it, such proceeding is
not dismissed within sixty (60) days).

     13.4 GSI Termination. GSI will be entitled to terminate this Agreement
immediately upon written notice to the Company if the Company becomes insolvent,
admits in writing its inability to pay debts as they mature, institutes or has
instituted against it any bankruptcy, reorganization, debt arrangement,
assignment for the benefit of creditors, or other proceeding under any
bankruptcy or insolvency law or dissolution, receivership, or liquidation
proceeding (and, if such proceeding is instituted against it, such proceeding is
not dismissed within sixty (60) days).

     13.5 Effect of Termination. Upon termination of this Agreement, each Party
in receipt, possession or control of the other Party's intellectual or
proprietary property, information and materials (including any Confidential
Information) pursuant to this Agreement must return to the other Party (or at
the other Party's written request, destroy) such property, information and
materials. Sections 2.6, 2.9, 3.2 (third sentence), 4.3, 7.9, 8.1, 8.2 (second
sentence), 8.3, 9, 10, 11 and 13 (together with all other provisions that
reasonably may be interpreted as surviving termination or expiration of this
Agreement) will survive the termination or expiration of this Agreement.
Notwithstanding the foregoing, termination of this Agreement will not relieve
either Party from its obligation to pay any monies due to the other Party for
any period prior to the effective date of termination.

     13.6 Post-Termination Process. Upon expiration or termination of this
Agreement, the Parties will mutually cooperate to effect an orderly termination
of their relationship hereunder and to effectuate the transition of the Company
Site during the one-hundred eighty (180) days following such expiration or
termination. Without limiting the generality of the foregoing, at the Company's
option, GSI agrees to continue to operate the Company Site on the same terms and
conditions hereof, for up to one-hundred eighty (180) days following the date of
such expiration or termination of this Agreement.

     13.7 Continuation of Services. The Parties will work in good faith to [*].

Section 14.  Miscellaneous.

     14.1 Press Releases. All voluntary public announcements concerning the
transactions contemplated by this Agreement will be mutually acceptable to both
the Company and GSI.

                                       20

<PAGE>

Unless required by law, neither the Company nor GSI (nor any of their respective
Affiliates) will make any public announcement or issue any press release
concerning the transactions contemplated by this Agreement without the prior
consent of the other Party. Notwithstanding the preceding sentences in this
Section 14.1, (a) after the initial public announcement of a particular matter
or transaction contemplated by this Agreement has been approved by the Parties,
either Party may make subsequent reference to the other Party and describe its
relationship with the other Party so long as such reference or description is
consistent with and no broader than the initial public announcement approved by
both Parties and such subsequent reference remains factually accurate, and (b)
each Party may make any public announcement or issue any press release that it
is required by law to issue, provided such Party gives reasonable prior notice
of such announcement or press release to the other Party.

     14.2 Independent Contractors. The Parties are entering this Agreement as
independent contractors, and this Agreement will not be construed to create a
partnership, joint venture or employment relationship between them. Neither
Party will represent itself to be an employee or agent of the other or enter
into any agreement or legally binding commitment or statement on the other's
behalf of or in the other's name.

     14.3 Confidentiality.

          (a) Each Party will protect the Confidential Information of the other
Party from misappropriation and unauthorized use or disclosure, and at a
minimum, will take precautions at least as great as those taken to protect its
own confidential information of a similar nature. Without limiting the
foregoing, the receiving Party will: (i) use such Confidential Information
solely for the purposes for which it has been disclosed; and (ii) disclose such
Confidential Information only to those of its employees, agents, consultants,
and others who have a need to know the same for the purpose of performing this
Agreement and who are informed of and agree to a duty of nondisclosure. The
receiving Party may also disclose Confidential Information of the disclosing
Party to the extent necessary to comply with applicable law or legal process,
provided that the receiving Party uses reasonable efforts to give the disclosing
Party prompt advance notice thereof. Upon request of the other Party, or in any
event upon any termination or expiration of the Term, each Party will return to
the other all materials, in any medium, which contain, embody, reflect or
reference all or any part of any Confidential Information of the other Party.

          (b) Neither Party will disclose this Agreement or the transactions
contemplated herein, or make any filing of this Agreement or other agreements
relating to the transactions contemplated herein, without the consent of the
other; provided, however, that if a Party is required by applicable law to
provide public disclosure of this Agreement or the transactions contemplated
herein, such Party will use all reasonable efforts to coordinate the disclosure
with the other Party before making such disclosure, including the submission to
the Securities and Commission (and any other applicable regulatory or judicial
authority) of an application for confidential treatment of certain terms (which
terms will be agreed upon by the Parties) of this Agreement. Each Party will
provide to the other for review a copy of any proposed disclosure of this
Agreement or its terms and any application for confidential treatment

                                       21

<PAGE>

prior to the time any such disclosure or application is made and the parties
will work together to mutually approve such disclosure or application.

     14.4 Force Majeure. If either Party is unable to perform any of its
obligations under this Agreement due to an event beyond the control of that
Party, including natural disaster, acts of God, actions or decrees of
governmental bodies, act of war, failure or discontinuance of the Internet or
failure of communications lines or networks, that Party will give written notice
to the other Party and will use commercially reasonable efforts to resume
performance of its obligations and, if substitute performance is reasonably
available, the notifying Party will offer the other Party such substitute
performance, which the other Party may accept or reject in its reasonable
discretion, but the notifying Party will have no liability to the other Party
for failure to perform its obligations under this Agreement for so long as it is
unable to do so as a result of such event.

     14.5 Compliance with Laws. In its performance of this Agreement, each Party
will comply in all material respects with all applicable laws, regulations,
orders and other requirements, now or hereafter in effect, of governmental
authorities having jurisdiction.

     14.6 Insurance. Each Party will at its own expense obtain and maintain such
policy or policies of insurance as are required by law or as are commercially
reasonable for the transactions and business contemplated by this Agreement.
Upon request from a Party, the other Party will furnish a certificate of
insurance and such other documentation relating to such policies as reasonably
requested.

     14.7 Notices. Unless otherwise provided, all notices, consents or other
communications required or permitted to be given under this Agreement must be in
writing and will be deemed to have been duly given (a) when delivered
personally, (b) three business days after being mailed by first class mail,
postage prepaid, or (c) one business day after being sent by a reputable
overnight delivery service, postage or delivery charges prepaid, to the parties
at their respective addresses stated on the signature page of this Agreement.
Notices may also be given by electronic mail or facsimile and will be effective
on the date transmitted if confirmed within 24 hours thereafter by a signed
original sent in the manner provided in the preceding sentence. Notices to GSI
will be sent to its address stated on the signature page of this Agreement to
the attention of the General Counsel, with a copy sent simultaneously to the
same address to the attention of its Chief Financial Officer. Notices to the
Company and Kmart will be sent to their respective address stated on the
signature page of this Agreement to the attention of General Counsel, with a
copy sent simultaneously to the Chief Financial Officer. Any party may change
its address for notice and the address to which copies must be sent by giving
notice of the new addresses to the other parties in accordance with this Section
14.7, except that any such change of address notice will not be effective unless
and until received.

     14.8 Assignment. Neither Party may assign this Agreement or any of its
rights or obligations hereunder, whether voluntarily, involuntarily, by
operation of law or otherwise, without the other Party's prior written consent,
except to (a) a wholly-owned subsidiary of such Party, (b) any corporation or
other entity resulting from any merger, consolidation, or other reorganization
involving such Party, or (c) any Person to which such Party transfers all or

                                       22

<PAGE>

substantially all of its business or assets; provided that such Party will
require, as a condition to such assignment, any assignee or successor to all or
substantially all of its business or assets to assure and agree in writing to
perform this Agreement and to be bound by all the terms and conditions of this
Agreement in the same manner and to the same extent that such Party would be
required to perform or would be bound if no assignment or succession had taken
place. Subject to the foregoing, this Agreement will be binding on and
enforceable by the Parties and their respective successors and permitted
assigns.

     14.9  Amendment. This Agreement may be amended, modified or supplemented by
the Parties, provided that any such amendment, modification or supplement shall
be in writing and signed by the Parties.

     14.10 Waiver. No waiver by a Party with respect to this Agreement will be
effective or enforceable against a Party unless in writing and signed by that
Party. Except as otherwise expressly provided herein, no failure to exercise,
delay in exercising, or single or partial exercise of any right, power or remedy
by a Party, and no course of dealing between or among any of the Parties, will
constitute a waiver of, or will preclude any other or further exercise of the
same or any other right, power or remedy.

     14.11 Counterparts and Transmitted Copies. This Agreement may be executed
in any number of counterparts, each of which when executed and delivered will be
deemed an original, but all of which taken together will constitute but one and
the same instrument, and it will not be necessary in making proof of this
Agreement to produce or account for more than one original counterpart hereof.
The Parties acknowledge that Transmitted Copies of this Agreement will be
equivalent to original documents until such time (if any) as original documents
are completely executed and delivered. "Transmitted Copies" means copies which
are reproduced or transmitted via facsimile, or another process of complete and
accurate reproduction and transmission.

     14.12 Cost of Litigation. The prevailing Party in any legal action or
proceeding arising out of or relating to this Agreement will be entitled to an
award of its reasonable legal expenses in connection therewith.

     14.13 Entire Agreement. This Agreement, together with the Exhibits to this
Agreement, (a) represents the entire understanding between the Parties with
respect to the subject matter hereof and supersedes all previous oral or written
communications or agreements, and all contemporaneous oral communications and
agreements, between the Parties and their respective Affiliates regarding such
subject matter, including, effective upon the date that the Parties agree upon
the purchase order terms and conditions set forth on Exhibit "H", the Strategic
                                                     -----------
Alliance Agreement, dated February 28, 2000, by and between GSI and
Bluelight.com LLC, and (b) may be amended or modified only by a written
instrument signed by a duly authorized agent of each Party. No breach of this
Agreement by either Party will affect the rights or obligations of either Party
under any other agreement between the Parties.

                                       23

<PAGE>

     14.14 Severability. If any provision of this Agreement is construed to be
invalid, illegal or unenforceable, then the remaining provisions hereof will not
be affected thereby and will be enforceable without regard thereto.

     14.15 CHOICE OF LAW. THIS AGREEMENT WILL BE INTERPRETED, CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF [*], WITHOUT REFERENCE TO
ITS CHOICE OF LAW RULES. EXCEPT TO THE EXTENT THAT [*] THE PARTIES AGREE [*]

     14.16 Headings. The headings of sections and subsections of this Agreement
are for convenience of reference only and are not intended to restrict, affect
or otherwise influence the interpretation or construction of any provision of
this Agreement.

     14.17 References. All words used in this Agreement will be construed to be
of such number and gender as the context requires or permits. Unless a
particular context clearly provides otherwise (i) the words "hereof" and
"hereunder" and similar references refer to this Agreement in its entirety and
not to any specific section or subsection hereof, and (ii) the word "including"
will mean including but not limited to.

     14.18 Construction. The Parties agree that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party will not
be applied in the construction or interpretation of this Agreement or any other
agreements or documents delivered in connection with the transactions
contemplated by this Agreement.

     14.19 [*]

                             (********************)
                     SIGNATURES APPEAR ON THE FOLLOWING PAGE

                                       24

<PAGE>

     IN WITNESS WHEREOF, intending to be legally bound, the Parties hereby
execute this Agreement on the date first written above.

Global Sports Interactive, Inc.           Bluelight.com, LLC

By: /s/ Michael G. Rubin                  By: /s/ Richard Blunck
    -------------------------------           ----------------------------
    Name:  Michael G. Rubin                   Name:  Richard Blunck
    Title: President, Chairman                Title: CEO
           and Chief Executive Officer

Address:   1075 First Avenue              Address:   c/o Kmart Corporation
           King of Prussia, PA  19406                3100 West Big Beaver Road
                                                     Troy, MI 48084
Telephone: (610) 265-3229                 Telephone: (248) 463-1400
Facsimile: (610) 265-2866                 Facsimile: (248) 463-1054

Kmart Corporation

By: /s/ Randy L. Allen
    -------------------------------
    Name:  Randy L. Allen
    Title: EVP

Address:   3100 West Big Beaver Road
           Troy, MI 48084
Telephone: (248) 463-1400
Facsimile: (248) 463-1054

                                       25

<PAGE>

                                   EXHIBIT "A"

                           Functionality and Features

 .  Search and Browse
 .  Shopping Cart
 .  Online Checkout with Secure Ordering
 .  E-mail Notifications relating to Orders
 .  Order History and Tracking
 .  User Login/Registration
 .  Affiliate Program Management
 .  Company and Kmart Information and Store Locator
 .  Corporate Information
 .  Employment Opportunities and Press Releases
 .  Frequently Asked Questions
 .  "Contact Us"

<PAGE>

                                   EXHIBIT "B"

                       Site Security and URL Registration

SSL Certificates

These certificates are used for secure e-commerce transactions. The certificates
certify that the customer is giving their personal information to a site which
indeed is an authorized representative of the store where they are shopping.
Verisign is the certification body and will need to contact an officer within
the company regarding our request for these SSL certificates as a third party.

        Main store URLs (domain):            __________________________
        Internic registrant company name for
        this domain:                         __________________________
        Company address:

(Corporate contact must be an officer in the company named above who has
sufficient authority to approve the validity of GSI's request to represent the
said company in e-commerce transactions)

        Corporate contact:                   __________________________
        Title:                               __________________________
        Phone:                               __________________________
        Fax:                                 __________________________

        Dun and Bradstreet number for above
        company:                             __________________________

DNS

DNS is the Internet address system which allows a customer to reach the new
store via the desired URL such as www.store.com. This needs to be changed at
                                  -------------
least one week prior to the expected store launch so that the changes have been
propagated to all DNS servers on the Internet. Our policy is to support your
existing store ip address on our servers, so that even after the DNS has been
updated to point to our servers, your existing site will still be reachable
until we have launched the new store.

        DNS Technical contact for main
        URLs listed above:                   __________________________
        Contact phone:                       __________________________
        Contact e-mail address:              __________________________

<PAGE>

Secondary URLs which will be supported by GSI:

1.  ___________________       Technical contact:   __________________________

2.  ___________________       Technical contact:   __________________________

3.  ___________________       Technical contact:   __________________________

List any additional on back.

E-mail Aliases

These are the e-mail aliases which customers will use associated with the
e-commerce store such as customerssupport@domain.com. If your company uses this
                         ---------------------------
domain for mail, you need to add forwarding for the listed e-mail aliases below
that will point to the corresponding mailbox on our servers.

E-mail aliases which need to be created on your mail server:

Your mail server            points to  Our mail server

contactus@store.com                    storecustomersupport@globalsportsinc.com
-------------------                    ----------------------------------------
webmaster@store.com                    storewebmaster@globalsportsinc.com
-------------------                    ----------------------------------
info@store.com                         storecustomersupport@globalsportsinc.com
--------------                         ----------------------------------------
customerservice@store.com              storecustomersupport@globalsportsinc.com
                                       ----------------------------------------
help@store.com                         storecustomersupport@globalsportsinc.com
--------------                         ----------------------------------------
customersupport@store.com              storecustomersupport@globalsportsinc.com
                                       ----------------------------------------
specialoffers@store.com                storespecialoffers@store.com
-----------------------                ----------------------------
grandopening@store.com                 storegrandopening@store.com
----------------------                 ---------------------------
newsletter@store.com                   storenewsletter@store.com
--------------------                   -------------------------
jobs@store.com                         corporate e-mail address for jobs at your
--------------                         company

For example, if the main domain is kmart.com, then the first e-mail alias
mapping would be:

contactus@kmart.com forwards to kmartcustomersupport@globalsportsinc.com
--------------------

         Who to contact for updating company
         e-mail server with new aliases:         __________________________
         Phone:                                  __________________________
         E-mail:                                 __________________________

_______________________________________          __________________________
Your name                       Title            Date

<PAGE>

                                   EXHIBIT "C"

                        Order Processing and Fulfillment

 .   Order Receipt, Confirmation and Processing
 .   Credit Card Authorization and Processing
 .   Inventory, Receipt, Control and Management
 .   Pick, Pack and Ship Orders
 .   Shipping Management and Tracking

<PAGE>

                                   EXHIBIT "D"

        Web Site Integration and Promotional and Advertising Requirements

 . Kmart will include on [*] Nothing contained herein will require Kmart to
  [*] If any such advertising medium [*]

 . Within ninety (90) days after the Launch Date, [*]

 . Kmart will include the shop on-line message on Kmart's in-store signage to
  the same extent as previously displayed with respect to the Company's
  e-commerce Web Site operated prior to the Launch Date.

 . Kmart will work towards including a shop on-line message for the Company's
  Site on Store shopping bags.

 . Kmart will in review in good faith all on-line, email and other interactive
  advertising conducted by Kmart to include a direct hot link to the
  applicable portion of the Company Site, based on the message of the
  advertising being conducted.

 . To the extent Kmart controls the production and/or content message, [*]

<PAGE>

                                   EXHIBIT "E"

                        Company Trademark Use Guidelines

GSI will not, with respect to the Company Trademarks:

 .  alter the overall design, color or shape of any such Trademarks
 .  commingle or combine any such Trademarks with any other mark
 .  use any other mark that is confusingly similar to such Trademarks
 .  substitute designs or objects for letters in any Trademark
 .  use in conjunction with any illegal, immoral, obscene or pornographic
   activities

<PAGE>

                                   EXHIBIT "F"

[*]

<PAGE>

                                   EXHIBIT "G"

                               Company Agreements

<PAGE>

                                   EXHIBIT "H"

                              Purchase Order Terms

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