Document:

Unassociated Document

    LOAN
      AGREEMENT

     

    This
      LOAN
      AGREEMENT
      (this
“Agreement”)
      is
      entered into and
      made
      effective this 11h
      day of
      September 2006, by and between GWIN, Inc., a Delaware corporation (the
“Company”)
      and
      CSI Business Finance, Inc., a Florida corporation (“Lender”).

     

    RECITALS:

     

    WHEREAS,
      Lender
      has agreed the lend to the Company, and the Company has agreed to borrow from
      Lender (the “Loan”)
      the
      sum of Six Hundred Fifty-Five Thousand Dollars ($655,000) (the “Loan
      Amount”)
      subject to the terms and conditions set forth herein below;

     

    WHEREAS,
      as a
      material inducement for Lender to enter into this Agreement and to fund the
      Loan
      Amount, the Company has agreed to issue to Lender two (2) promissory notes
      on
      the terms and subject to the conditions set forth herein (together, the
“Notes”
and
      each, a “Note”),
      in
      the form attached hereto as Exhibit
      A
      and
      evidencing the terms and conditions of each Note;

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the Company
      and Lender are executing and delivering a Security Agreement (the “Security
      Agreement”)
      pursuant to which the Company is agreeing to provide to Lender a security
      interest in the Pledged Collateral (as this term is defined in the Security
      Agreement) to secure the Company’s obligations under this Agreement, the other
      Transaction Documents (as defined herein below) or any other obligations of
      the
      Company to Lender;

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, Global
      SportsEDGE, Inc., a wholly-owned subsidiary of the Company (“GSE”)
      and
      Lender are executing and delivering a Security Agreement (the “Subsidiary
      Security Agreement”)
      pursuant to which GSE is agreeing to provide to Lender a security interest
      in
      Pledged Collateral (as this term is defined in the Security Agreement) to secure
      the Company’s obligations under this Agreement, the other Transaction Documents,
      or any other obligations of the Company to Lender;

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering a Pledge and Escrow Agreement (the
“Pledge
      and Escrow Agreement”)
      pursuant to which the Company has agreed to provide to Lender a security
      interest in the Pledged Shares (as this term is defined in the Pledge and Escrow
      Agreement) to secure the Company’s obligations under this Agreement, the other
      Transaction Documents or any other obligations of the Company to Lender;

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, Wayne
      Allyn
      Root and the parties hereto are executing and delivering an Insider Pledge
      and
      Escrow Agreement (the “Insider
      Pledge Agreement”)
      pursuant to which Mr. Root has agreed to provide to
      Lender
a
      security interest in the Pledged Shares (as this term is defined in the Insider
      Pledge Agreement) to secure the Company’s obligations under this Agreement, the
      other Transaction Documents or any other obligations of the Company to
Lender;
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOW
      THEREFORE,
      and in
      consideration of the foregoing, the mutual covenants, promises and agreements
      contained herein, and other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the
      Company and
      Lender
      agree as follows:

     

    SECTION
      1. THE
      LOAN

     

    1.1.  Acknowledgment.
      The
      Company acknowledges that each and every term and condition of this Agreement,
      the Notes, the Security Agreement, the Subsidiary Security Agreement, the Pledge
      and Escrow Agreement and the Insider Pledge Agreement (collectively, the
“Transaction
      Documents”)
      are
      incorporated herein by reference and shall continue in full force and effect,
      enforceable in accordance with their terms, except to the extent modified,
      changed or amended by the terms of this Agreement.

     

    1.2.  The
      Loan.
      Pursuant to the terms and subject to the conditions set forth in this Agreement,
      Lender hereby agrees to issue to the Company the Loan in the Loan Amount of
      Six
      Hundred Fifty-Five Thousand Dollars ($655,000), of which (a) Three Hundred
      Fifty-Five Thousand Dollars ($355,000) shall be funded to the Company on the
      date hereof (the “First
      Closing”)
      and
      Three Hundred Thousand Dollars ($300,000) shall be funded to the Company upon
      the Company effectuating the Share Increase in accordance with Section 5.8
      herein (the “Second
      Closing”
and
      together with the First Closing, the “Closings”
and
      each, a “Closing”).
      

     

    1.3.  The
      Closings.
      Each
      Closing shall take place at 12:00 a.m. Eastern Standard Time at the offices
      of
      the Company, 5052 South Jones Boulevard, Suite 100, Las Vegas, Nevada 89118,
      subject to notification of satisfaction of the conditions to each Closing set
      forth in Section 4 herein (or such later dates as is mutually agreed to by
      the
      Company and Lender). The date of the First Closing shall hereinafter be referred
      to as the “First
      Closing Date”
and
      the
      date of the Second Closing shall hereinafter be referred to as the “Second
      Closing Date”.
      

     

    1.4.  The
      Notes.
      The
      total
      indebtedness due to Lender shall be Six Hundred Fifty-Five Thousand Dollars
      ($655,000), which such amount shall be evidenced by
      (a) a
      Note, dated the date hereof, issued to Lender by the Company in the principal
      amount of Three Hundred Fifty-Five Thousand Dollars ($355,000) and (b) a Note,
      dated as of the Second Closing Date, in the principal amount of Three Hundred
      Thousand Dollars ($300,000). The entire principal balance of the Loan together
      with any accrued but unpaid interest and such other amounts payable by the
      Company to Lender under the Notes shall be due and payable on or before June
      30,
      2007 and shall otherwise be payable in accordance with the terms and subject
      to
      the conditions set forth in the Notes. 

     

    1.5.  Forms
      of Payment.
      Subject
      to the satisfaction of the terms and conditions of this Agreement, at each
      Closing: (a) Lender shall deliver to the Company such amounts evidenced in
      the
      Note to be delivered at such Closing in accordance with the terms and subject
      to
      the conditions set forth herein and in such Note, minus those fees to be paid
      directly from the proceeds of each Closing as set forth in this Agreement and
      those certain Disbursement Instructions attached hereto as Exhibit
      B
      and (b)
      the Company shall deliver to Lender the Note to be delivered in accordance
      with
      Section 1.4 herein, duly executed by the Company.

     

    
      
        
        

      

      
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    SECTION
      2. LENDER’S
      REPRESENTATIONS AND WARRANTIES

     

    Lender
      represents and warrants to the Company as of the date hereof that:

     

    2.1.  Information.
      Lender
      and its advisors (and its counsel) have been furnished with all materials
      relating to the business, finances and operations of the Company and information
      it deemed material to making an informed decision regarding its issuance of
      the
      Loan to the Company, which have been requested by Lender. Lender and its
      advisors have been afforded the opportunity to ask questions of the Company
      and
      its management. Neither such inquiries nor any other due diligence
      investigations conducted by Lender, or its advisors, or its representatives
      shall modify, amend or affect Lender’s right to rely on the Company’s
      representations and warranties contained in Section 3 below. Lender understands
      that the Loan involves a high degree of risk. Lender is in a position regarding
      the Company, which, based upon employment, family relationship or economic
      bargaining power, enabled and Lender to obtain information from the Company
      in
      order to evaluate the merits and risks of this transaction. Lender has sought
      such accounting, legal and tax advice, as it has considered necessary to make
      an
      informed decision with respect to the Loan.

     

    2.2.  Authorization,
      Enforcement.
      This
      Agreement has been duly and validly authorized, executed and delivered on behalf
      of Lender and is a valid and binding agreement of Lender enforceable in
      accordance with its terms, except as such enforceability may be limited by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation and other similar laws relating to,
      or
      affecting generally, the enforcement of applicable creditors’ rights and
      remedies.

     

    2.3.  Receipt
      of Documents.
      Lender
      and its counsel have received and read in their entirety: (a) this Agreement
      and
      each representation, warranty and covenant set forth herein and the other
      Transaction Documents; (b) all due diligence and other information necessary
      to
      verify the accuracy and completeness of such representations, warranties and
      covenants; (c) the Company’s Annual Report on Form 10-KSB for the fiscal year
      ended July 31, 2005; (d) the Company’s Quarterly Report on Form 10-QSB for the
      fiscal quarter ended April 30, 2006 and (e) answers to all questions Lender
      submitted to the Company regarding the Loan to the Company; and Lender has
      relied on the information contained therein and has not been furnished any
      other
      documents, literature, memorandum or prospectus.

     

    2.4.  Organization
      and Qualification.
      Lender
      is a corporation duly organized and validly existing in good standing under
      the
      laws of the jurisdiction in which they are incorporated, and have the requisite
      corporate power to own their properties and to carry on their business as now
      being conducted. Lender is duly qualified as a foreign corporation to do
      business and is in good standing in every jurisdiction in which the nature
      of
      the business conducted by it makes such qualification necessary, except to
      the
      extent that the failure to be so qualified or be in good standing would not
      have
      a material adverse effect on the Company and its subsidiaries taken as a
      whole.

     

    2.5.  No
      Legal Advice From the Company.
      Lender
      acknowledges that it had the opportunity to review this Agreement and the
      transactions contemplated by this Agreement with its own legal counsel and
      investment and tax advisors. Lender is relying solely on such counsel and
      advisors and not on any statements or representations of the Company or any
      of
      its representatives or agents for legal, tax or investment advice with respect
      to the Loan, the transactions contemplated by this Agreement or the laws of
      any
      jurisdiction. 

     

    
      
        
        

      

      
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    SECTION
      3. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

    The
      Company represents and warrants as of the date hereof to Lender that, except
      as
      set forth in the SEC Documents (as defined herein) or in the Disclosure Schedule
      attached hereto (the “Disclosure
      Schedule”):

     

    3.1.  Organization
      and Qualification.
      The
      Company and its subsidiaries are corporations duly organized and validly
      existing in good standing under the laws of the jurisdiction in which they
      are
      incorporated, and have the requisite corporate power to own their properties
      and
      to carry on their business as now being conducted. Each of the Company and
      its
      subsidiaries is duly qualified as a foreign corporation to do business and
      is in
      good standing in every jurisdiction in which the nature of the business
      conducted by it makes such qualification necessary, except to the extent that
      the failure to be so qualified or be in good standing would not have a material
      adverse effect on the Company and its subsidiaries taken as a
      whole.

     

    3.2.  Authorization,
      Enforcement, Compliance with Other Instruments.
      The
      Company has the requisite corporate power and authority to enter into and
      perform this Agreement and the other Transaction Documents and to issue the
      Notes in accordance with the terms hereof and thereof, (ii) the execution and
      delivery of the Transaction Documents by the Company and the consummation by
      it
      of the transactions contemplated hereby and thereby, including, without
      limitation, the issuance of the Notes have been duly authorized by the Company’s
      Board of Directors (the “Board”)
      and no
      further consent or authorization is required by the Company, the Board or the
      Company’s stockholders, (iii) the Transaction Documents have been duly executed
      and delivered by the Company, (iv) the Transaction Documents constitute the
      valid and binding obligations of the Company enforceable against the Company
      in
      accordance with their terms, except as such enforceability may be limited by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally, the enforcement of creditors’ rights and remedies. The
      authorized officer of the Company executing the Transaction Documents knows
      of
      no reason why the Company cannot perform any of the Company’s other obligations
      under such documents. 

     

    3.3.  Capitalization.
      The
      authorized capital stock of the Company consists of One Hundred Fifty Million
      (150,000,000) shares of common stock, par value $0.0001 per share (“Common
      Stock”),
      of
      which 108,383,180 shares are issued and outstanding and 5,000,000 shares of
      preferred stock, par value $0.0001 (“Preferred
      Stock”),
      of
      which 462,222 shares of convertible Series A Preferred are issued and
      outstanding. The Company will have Seven Hundred Fifty Millon (750,000,000)
      authorized shares of Common Stock after it effectuates the Share Increase as
      required by Section 5.8 herein. All of such outstanding shares have been validly
      issued and are fully paid and nonassessable. Except those shares pledged by
      the
      Company pursuant to the Transaction Documents, no shares of Common Stock are
      subject to preemptive rights or any other similar rights or any liens or
      encumbrances suffered or permitted by the Company. Except as disclosed in Item
      3.3 of the Disclosure Schedule, (i) there are no outstanding options, warrants,
      scrip, rights to subscribe to, calls or commitments of any character whatsoever
      relating to, or securities or rights convertible into, any shares of capital
      stock of the Company or any of its subsidiaries, or contracts, commitments,
      understandings or arrangements by which the Company or any of its subsidiaries
      is or may become bound to issue additional shares of capital stock of the
      Company or any of its subsidiaries or options, warrants, scrip, rights to
      subscribe to, calls or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, any shares of capital stock of the
      Company or any of its subsidiaries, (ii) there are no outstanding debt
      securities and (iii) there are no agreements or arrangements under which the
      Company or any of its subsidiaries is obligated to register the sale of any
      of
      their securities under the Securities Act of 1933, as amended and (iv) there
      are
      no outstanding registration statements and there are no outstanding comment
      letters from the U.S. Securities and Exchange Commission (the “SEC”)
      or any
      other regulatory agency. The Company has furnished to Lender true and correct
      copies of the Company’s Certificate of Incorporation (as amended) and as in
      effect on the date hereof (the “Certificate
      of Incorporation”),
      and
      the Company’s By-laws, as in effect on the date hereof (the “By-laws”),
      and
      the terms of all securities convertible into or exercisable for Common Stock
      and
      the material rights of the holders thereof in respect thereto other than stock
      options issued to employees and consultants. 

     

    
      
        
        

      

      
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    3.4.  No
      Conflicts.
      Except
      as disclosed in Item 3.4 of the Disclosure Schedule, the execution, delivery
      and
      performance of the Transaction Documents by the Company and the consummation
      by
      the Company of the transactions contemplated hereby will not (i) result in
      a
      violation of the Certificate of Incorporation, any certificate of designations
      of any outstanding series of preferred stock of the Company or the By-laws
      or
      (ii) conflict with or constitute a default (or an event which with notice or
      lapse of time or both would become a default) under, or give to others any
      rights of termination, amendment, acceleration or cancellation of, any
      agreement, indenture or instrument to which the Company or any of its
      subsidiaries is a party, or result in a violation of any law, rule, regulation,
      order, judgment or decree applicable to the Company or any of its subsidiaries
      or by which any property or asset of the Company or any of its subsidiaries
      is
      bound or affected. Except as disclosed in Item 3.4 of the Disclosure Schedule,
      neither the Company nor its subsidiaries is in violation of any term of or
      in
      default under its Certificate of Incorporation or By-laws or their
      organizational charter or by-laws, respectively, or any material contract,
      agreement, mortgage, indebtedness, indenture, instrument, judgment, decree
      or
      order or any statute, rule or regulation applicable to the Company or its
      subsidiaries. The business of the Company and its subsidiaries is not being
      conducted, and shall not be conducted in violation of any material law,
      ordinance, or regulation of any governmental entity. Except as specifically
      contemplated by this Agreement and as required under the Securities Act and
      any
      applicable state securities laws, the Company is not required to obtain any
      consent, authorization or order of, or make any filing or registration with,
      any
      court or governmental agency in order for it to execute, deliver or perform
      any
      of its obligations under or contemplated by this Agreement in accordance with
      the terms hereof or thereof. All consents, authorizations, orders, filings
      and
      registrations which the Company is required to obtain pursuant to the preceding
      sentence have been obtained or effected on or prior to the date hereof. The
      Company and its subsidiaries are unaware of any facts or circumstance, which
      might give rise to any of the foregoing.

     

    
      
        
        

      

      
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    3.5.  SEC
      Documents: Financial Statements.
      Since
      January 1, 2003, the Company has filed, and will timely file and maintain all
      Nasdaq OTC Bulletin Board listing requirements and all reports, schedules,
      forms, statements and other documents required to be filed by it with the SEC
      under the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”)
      (all
      of the foregoing filed prior to the date hereof or amended after the date hereof
      and all exhibits included therein and financial statements and schedules thereto
      and documents incorporated by reference therein, being hereinafter referred
      to
      as the “SEC
      Documents”).
      The
      Company has delivered to Lender or its representatives, or made available
      through the SEC’s website at http://www.sec.gov., true and complete copies of
      the SEC Documents. As of their respective dates, the financial statements of
      the
      Company disclosed in the SEC Documents (the “Financial
      Statements”)
      complied as to form in all material respects with applicable accounting
      requirements and the published rules and regulations of the SEC with respect
      thereto. Such financial statements have been prepared in accordance with
      generally accepted accounting principles, consistently applied, during the
      periods involved (except (i) as may be otherwise indicated in such Financial
      Statements or the notes thereto, or (ii) in the case of unaudited interim
      statements, to the extent they may exclude footnotes or may be condensed or
      summary statements) and, fairly present in all material respects the financial
      position of the Company as of the dates thereof and the results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments). No other
      information provided by or on behalf of the Company to Lender which is not
      included in the SEC Documents, including, without limitation, information
      referred to in this Agreement, contains any untrue statement of a material
      fact
      or omits to state any material fact necessary in order to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading.

     

    3.6.  Off
      Balance Sheet Arrangements.
      There
      is no transaction, arrangement, or other relationship between the Company and
      an
      unconsolidated or other off balance sheet entity that is required to be
      disclosed by the Company in its Exchange Act filings and is not so disclosed
      or
      that otherwise would be reasonably likely to have a material adverse effect
      on
      the business, properties, assets, operations, results of operations, condition
      (financial or otherwise) or prospects of the Company and its subsidiaries,
      taken
      as a whole, or on the transactions contemplated hereby and by the other
      Transaction Documents or by the agreements and instruments to be entered into
      in
      connection herewith or therewith, or on the authority or ability of the Company
      to perform its obligations under the Transaction Documents.

     

    3.7.  10(b)-5.
      Neither
      the Transaction Documents nor the SEC Documents include any untrue statements
      of
      material fact, nor do they omit to state any material fact required to be stated
      therein necessary to make the statements made, in light of the circumstances
      under which they were made, not misleading.

     

    3.8.  Absence
      of Litigation.
      There
      is no action, suit, proceeding, inquiry or investigation before or by any court,
      public board, government agency, self-regulatory organization or body pending
      against or affecting the Company, the Common Stock or any of the Company’s
      subsidiaries, wherein an unfavorable decision, ruling or finding would (i)
      have
      a material adverse effect on the transactions contemplated hereby (ii) adversely
      affect the validity or enforceability of, or the authority or ability of the
      Company to perform its obligations under, this Agreement or any of the documents
      contemplated herein, or (iii) have a material adverse effect on the business,
      operations, properties, financial condition or results of operations of the
      Company and its subsidiaries taken as a whole.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.9.  Employee
      Relations.
      Neither
      the Company nor any of its subsidiaries is involved in any labor dispute nor,
      to
      the knowledge of the Company or any of its subsidiaries, is any such dispute
      threatened. None of the Company’s or its subsidiaries’ employees is a member of
      a union and the Company and its subsidiaries believe that their relations with
      their employees are good.

     

    3.10.  Intellectual
      Property Rights.
      The
      Company and its subsidiaries own or possess adequate rights or licenses to
      use
      all trademarks, trade names, service marks, service mark registrations, service
      names, patents, patent rights, copyrights, inventions, licenses, approvals,
      governmental authorizations, trade secrets and rights necessary to conduct
      their
      respective businesses as now conducted. The Company and its subsidiaries do
      not
      have any knowledge of any infringement by the Company or its subsidiaries of
      trademark, trade name rights, patents, patent rights, copyrights, inventions,
      licenses, service names, service marks, service mark registrations, trade secret
      or other similar rights of others, and, to the knowledge of the Company there
      is
      no claim, action or proceeding being made or brought against, or to the
      Company’s knowledge, being threatened against, the Company or its subsidiaries
      regarding trademark, trade name, patents, patent rights, invention, copyright,
      license, service names, service marks, service mark registrations, trade secret
      or other infringement; and the Company and its subsidiaries are unaware of
      any
      facts or circumstances which might give rise to any of the foregoing.

     

    3.11.  Environmental
      Laws.
      The
      Company and its subsidiaries are (i) in compliance with any and all applicable
      foreign, federal, state and local laws and regulations relating to the
      protection of human health and safety, the environment or hazardous or toxic
      substances or wastes, pollutants or contaminants (“Environmental
      Laws”),
      (ii)
      have received all permits, licenses or other approvals required of them under
      applicable Environmental Laws to conduct their respective businesses and (iii)
      are in compliance with all terms and conditions of any such permit, license
      or
      approval.

     

    3.12.  Title.
      Any
      real property and facilities held under lease by the Company and its
      subsidiaries are held by them under valid, subsisting and enforceable leases
      with such exceptions as are not material and do not interfere with the use
      made
      and proposed to be made of such property and buildings by the Company and its
      subsidiaries.

     

    3.13.  Insurance.
      The
      Company and each of its subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      as
      management of the Company believes to be prudent and customary in the businesses
      in which the Company and its subsidiaries are engaged. Neither the Company
      nor
      any such subsidiary has been refused any insurance coverage sought or applied
      for and neither the Company nor any such subsidiary has any reason to believe
      that it will not be able to renew its existing insurance coverage as and when
      such coverage expires or to obtain similar coverage from similar insurers as
      may
      be necessary to continue its business at a cost that would not materially and
      adversely affect the condition, financial or otherwise, or the earnings,
      business or operations of the Company and its subsidiaries, taken as a
      whole.

     

    3.14.  Regulatory
      Permits.
      The
      Company and its subsidiaries possess all material certificates, authorizations
      and permits issued by the appropriate federal, state or foreign regulatory
      authorities necessary to conduct their respective businesses, and neither the
      Company nor any such subsidiary has received any notice of proceedings relating
      to the revocation or modification of any such certificate, authorization or
      permit.

     

    
      
        
        

      

      
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    3.15.  Internal
      Accounting Controls.
      The
      Company and each of its subsidiaries maintain a system of internal accounting
      controls sufficient to provide reasonable assurance that (i) transactions are
      executed in accordance with management’s general or specific authorizations,
      (ii) transactions are recorded as necessary to permit preparation of financial
      statements in conformity with generally accepted accounting principles and
      to
      maintain asset accountability, and (iii) the recorded amounts for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences.

     

    3.16.  No
      Material Adverse Breaches, etc.
      Neither
      the Company nor any of its subsidiaries is subject to any charter, corporate
      or
      other legal restriction, or any judgment, decree, order, rule or regulation
      which in the judgment of the Company’s officers has or is expected in the future
      to have a material adverse effect on the business, properties, operations,
      financial condition, results of operations or prospects of the Company or its
      subsidiaries. Neither the Company nor any of its subsidiaries is in breach of
      any contract or agreement which breach, in the judgment of the Company’s
      officers, has or is expected to have a material adverse effect on the business,
      properties, operations, financial condition, results of operations or prospects
      of the Company or its subsidiaries.

     

    3.17.  Tax
      Status.
      The
      Company and each of its subsidiaries has made and filed all federal and state
      income and all other tax returns, reports and declarations required by any
      jurisdiction to which it is subject and (unless and only to the extent that
      the
      Company and each of its subsidiaries has set aside on its books provisions
      reasonably adequate for the payment of all unpaid and unreported taxes) has
      paid
      all taxes and other governmental assessments and charges that are material
      in
      amount, shown or determined to be due on such returns, reports and declarations,
      except those being contested in good faith and has set aside on its books
      provision reasonably adequate for the payment of all taxes for periods
      subsequent to the periods to which such returns, reports or declarations apply.
      There are no unpaid taxes in any material amount claimed to be due by the taxing
      authority of any jurisdiction, and the officers of the Company know of no basis
      for any such claim.

     

    3.18.  Certain
      Transactions.
      Except
      for arm’s length transactions pursuant to which the Company makes payments in
      the ordinary course of business upon terms no less favorable than the Company
      could obtain from third parties and other than the grant of stock options
      disclosed in the SEC Documents, none of the officers, directors, or employees
      of
      the Company is presently a party to any transaction with the Company (other
      than
      for services as employees, officers and directors), including any contract,
      agreement or other arrangement providing for the furnishing of services to
      or
      by, providing for rental of real or personal property to or from, or otherwise
      requiring payments to or from any officer, director or such employee or, to
      the
      knowledge of the Company, any corporation, partnership, trust or other entity
      in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner.

     

    3.19.  Reliance.
      The
      Company acknowledges that Lender is relying on the representations and
      warranties made by the Company hereunder and that such representations and
      warranties are a material inducement for Lender to fund the Loan Amount and
      to
      enter into the transactions contemplated by the Transaction Documents. The
      Company further acknowledges that without such representations and warranties
      of
      the Company made hereunder, Lender would not enter into this
      Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    3.20.  Non-Public
      Information.
      The
      Company confirms that neither it nor any person acting on its behalf has
      provided Lender with any information that the Company believes constitutes
      material, non-public information. 

     

    3.21.  Sarbanes-Oxley.
      The
      Company is in compliance with the applicable requirements of the Sarbanes-Oxley
      Act of 2002, as amended, and the rules and regulations thereunder, and is
      actively taking steps to ensure that it will be in compliance with other
      applicable provisions of such Act not currently in effect at all times after
      the
      effectiveness of such provisions except where such noncompliance would not
      have
      or reasonably be expected to have a material adverse effect on the business,
      properties, operations, financial condition, results of operations or prospects
      of the Company or its subsidiaries. 

     

    SECTION
      4. CONDITIONS
      TO
      LENDER’S OBLIGATIONS

     

    4.1.  First
      Closing Conditions.
      The
      obligation of Lender to issue to the Company the Note at the First Closing
      is
      subject to the satisfaction, at or before the First Closing Date, of each of
      the
      following conditions:

     

    (a)  The
      Company shall have executed the Transaction Documents and delivered the same
      to
      Lender.

     

    (b)  The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the First Closing
      Date
      as though made at that time (except for representations and warranties that
      speak as of a specific date) and the Company shall have performed, satisfied
      and
      complied in all material respects with the covenants, agreements and conditions
      required by this Agreement to be performed, satisfied or complied with by the
      Company at or prior to the First Closing Date.

     

    (c)  The
      Company shall have executed and delivered to Lender the Note, dated as of the
      date hereof, in the principal amount of Three Hundred Fifty-Five Thousand
      Dollars ($355,000);

     

    (d)  The
      Company shall have provided to Lender a certificate of good standing from the
      secretary of state from the state in which the Company
      is
      incorporated.

     

    (e)  The
      Company shall have satisfied all obligations with respect to obtaining a waiver
      of any and all rights of first refusal as to, and any other rights of
      participation in, the transactions contemplated by the Transaction
      Documents.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (f) Lender
      shall have received an opinion of counsel from Kirkpatrick & Lockhart
      Nicholson Graham, LLP in a form satisfactory to Lender.

     

    4.2.  Second
      Closing Conditions.
      The
      obligation of Lender to issue to the Company the Note at the Second Closing
      is
      subject to the satisfaction, at or before the Second Closing Date, of each
      of
      the following conditions:

     

    (a)  The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the Second Closing
      Date as though made at that time (except for representations and warranties
      that
      speak as of a specific date) and the Company shall have performed, satisfied
      and
      complied in all material respects with the covenants, agreements and conditions
      required by this Agreement to be performed, satisfied or complied with by the
      Company at or prior to the Second Closing Date.

     

    (b)  The
      Company shall have executed and delivered to Lender the Note, dated as of the
      Second Closing Date, in the principal amount of Three Hundred Thousand Dollars
      ($300,000);

     

    (c)  The
      Company shall have delivered to the Escrow Agent the Pledged Shares and the
      Transfer Documents (as such terms are defined in the Insider Pledge and Escrow
      Agreement), including, without limitation, executed medallion guaranteed stock
      powers as required pursuant to the Insider Pledge Agreement.

     

    (d)  The
      Company shall have certified, in a certificate executed by two
      (2)
officers
      of the Company and dated as of the Second Closing Date, that all conditions
      to
      the Second Closing have been satisfied.

     

    SECTION
      5. AFFIRMATIVE
      COVENANTS

     

    As
      long
      as there remains any amount outstanding under the Notes, the
      Company
      shall, unless waived in writing by
      Lender,
      comply with the Affirmative Covenants set forth herein:

     

    5.1.  Best
      Efforts.
      The
      Company shall use its best efforts to timely satisfy each of the conditions
      to
      be satisfied by it as provided in Section 4 of this Agreement.

     

    5.2.  Use
      of Proceeds.
      The
      Company will use the proceeds from the Loan for general corporate and working
      capital purposes.

     

    5.3.  Placement
      Fee.
      At the
      First Closing, the Company shall pay to Corporate Strategies, Inc.
      (“CSI”)
      a
      placement fee equal to ten percent (10%) of the gross funding amount ($65,500),
      which such gross funding amount shall be equal to the aggregate principal amount
      of the Notes to be delivered at the Closings, directly from the proceeds of
      the
      First Closing. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    5.4.  Documentation
      Fee.
      The
      Company shall pay to Lender, and Lender shall retain from the proceeds of the
      First Closing, a non-refundable documentation fee equal to Five Thousand Dollars
      ($5,000) on the First Closing Date.

     

    5.5.  Legal
      Fees.
      The
      Company shall pay to Kirkpatrick & Lockhart Nicholson Graham LLP Sixteen
      Thousand Eight Hundred Dollars ($16,500) directly from the proceeds of the
      First
      Closing on the First Closing Date for legal services rendered to the
      Company.

     

    5.6.  Reimbursement
      Fee.
      At the
      First Closing, the Company shall pay to CSI an amount equal to Twenty-Five
      Thousand Dollars ($25,000) payable as a reimbursement fee to Mike King and
      Princeton Research directly from the proceeds of the First Closing.

     

    5.7.  Investor
      Relations Fee.
      The
      Company shall pay to Clearvision International, Inc. and amount equal to One
      Hundred Ten Thousand Dollars ($110,000) for investor relations services rendered
      to the Company, of which (a) Fifty Thousand Dollars ($50,000) shall be paid
      directly from the proceeds of the First Closing and (b) Sixty Thousand Dollars
      ($60,000) shall be paid directly from the proceeds of the Second Closing.

     

    5.8.  Amendment
      to Certificate of Incorporation.
      The
      Company shall file an amendment to its Certificate of Incorporation to increase
      the number of authorized shares of Common Stock to at least Seven Hundred Fifty
      Million (750,000,000) shares (the “Share
      Increase”).
      The
      failure of the Company to effect the Share Increase before September 20,
      2006 shall be deemed an immediate Event of Default without regard to any cure
      periods thereunder.

     

    5.9.  Financial
      Statements and Reports.
      Furnish
      to
      Lender,
      at the times set forth below, the following financial statements and
      reports:

     

    (a)  As
      soon
      as available, but in any event within ninety (90) days after its fiscal year
      end, an audited financial statement of
      the
      Company consisting of a balance sheet, profit and loss statement certified
      by
      Company’s independent certified public accountant and reasonably satisfactory
      to
      Lender
      to have been prepared in accordance with GAAP, consistently
      applied.

     

    (b)  As
      soon
      as available, but in any event within twenty (20) days after the last day of
      each quarter, a balance sheet and profit and loss statement dated as of the
      last
      business day of such month in form and detail as reasonably required
      by
      Lender
      certified by the chief financial officer of the
      Company to have been prepared from the records of the
      Company
      on the basis of accounting principles consistently applied by the
      Company.

     

    (c)  Such
      other information concerning the business, operations and condition (financial
      or otherwise) of the
      Company
      as
      Lender
      may reasonably request.

     

    (d)  As
      soon
      as available, but no later than fifteen (15) days after filing, a complete
      copy
      of the
      Company’s tax return filed with the Internal Revenue Service (the “IRS”)
      and
      copies of any and all extension requests of the
      Company filed with the IRS within seven (7) days of filing same.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    5.10.  Maintenance
      of Corporate Existence.
      Maintain
      and preserve its corporate existence.

     

    5.11.  Taxes,
      Assessments and Liens.
      The
      Company will pay or cause to be paid when due all taxes, assessments and liens
      upon any and all collateral pledged in the Transaction Documents (collectively,
      the “Collateral”)
      or its
      use or operation, upon this Agreement evidencing the Loan Amount, or upon any
      of
      the other Transaction Documents. The Company may withhold any such payment
      or
      may elect to contest any lien if the Company is
      in
      good faith conducting an appropriate proceeding to contest the obligation to
      pay
      and so long as Lender’s interest in the Collateral is not
      jeopardized,
      in
      Lender’s sole opinion. If the Collateral is subjected to a lien which is not
      discharged within fifteen (15) days, the Company shall deposit with Lender
      cash,
      a sufficient corporate surety bond or other security satisfactory to Lender
      in
      an amount adequate to provide for the discharge of the lien plus any interest,
      costs, attorneys’ fees or other charges that could accrue as a result of
      foreclosure or sale of the Collateral. In any contest the Company shall defend
      themselves and Lender and shall satisfy any final adverse judgment before
      enforcement against the Collateral. The Company shall name Lender as an
      additional obligee under any surety bond furnished in the contest
      proceedings.

     

    5.12.  Notices.
      Immediately give notice to
      Lender
      of:

     

    (a)  The
      commencement of any litigation relating to the
      Company involving claimed damages in excess of Ten Thousand Dollars ($10,000)
      or
      relating to the transactions contemplated by this Agreement;

     

    (b)  The
      commencement of any material arbitration or governmental proceeding or
      investigation not previously disclosed to Lender
      which has been instituted or, to the knowledge of the
      Company, is threatened against the
      Company or its property which, if determined adversely to the
      Company, would have a material adverse effect on the business, operations or
      condition (financial or otherwise) of the Company;
      and

     

    (c)  Any
      Event
      of Default under this Agreement or the Transaction Documents.

     

    5.13.  Compliance
      with Laws.
      Carry on
their
      business
      activities in substantial compliance with all applicable federal or state laws
      and all applicable rules, regulations and orders of all governmental bodies
      and
      offices having power to regulate or supervise
      their
      business
      activities. The
      Company
      shall maintain all material rights, liens, franchises, permits, certificates
      of
      compliance or grants of authority required in the conduct their
      businesses. 

     

    5.14.  Books
      and Records.
      Keep
      books and records reflecting all of their
      business
      affairs and transactions in accordance with generally accepted accounting
      principles consistently applied and permit Lender,
      and its representatives, at reasonable times and intervals, to visit all of
      their
      offices,
      discuss their
      financial matters with officers of the
      Company and its
      independent public accountants (and by this provision the
      Company
      authorizes
      its
      independent public accountants to participate in such discussions) and examine
      any of their
      books
      and other corporate records.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    5.15.  Maintain
      Property.
      Maintain
      and keep their
      assets,
      property and equipment in good repair, working order and condition, reasonable
      wear and tear excepted, other than with respect to assets disposed of in the
      ordinary course of business and from time to time make or cause to be made
      all
      needed renewals, replacements and repairs, including but not limited to,
renewals,
      registrations of all licenses, trademarks and patents and other intangible
      rights.

     

    5.16.  Conduct
      of Business.
      Continue
      to engage primarily in the business being conducted as of the effective date
      of
      this Agreement.

     

    5.17.  Maintenance
      of Insurance.
      During
      the term of this Agreement, the Company shall keep and maintain such insurance
      coverage with financially reputable insurers providing for such coverage not
      less, and deductibles not greater, than currently maintained by the Company,
      other than
      medical
      malpractice insurance which may be obtained or not obtained by the Company,
      as
      they determine,
      in their sole discretion.
      Such
      insurance policies
      shall
      contain a clause requiring the insurer to give Lender
      thirty (30) days’ prior written notice in the event of any anticipated
      cancellation of the policy for any reason. Cancellation without replacement
      shall be a default under this Agreement. The Company will deliver evidence
      of
      such paid up insurance and the policies of insurance or copies thereof
      to
      Lender
      upon request.

     

    5.18.  Segregation
      of Accounts.
      The
      Company shall, at all times during the term of this Agreement and while any
      indebtedness remains outstanding to Lender, maintain the accounts pledged to
      Lender,
      segregated on their
      books,
      and the
      proceeds thereof received by the Company shall be promptly
      deposited
      and
      maintained by Company at all such
      times
      thereafter
      in
      segregated accounts
      so as to
      allow such proceeds to be readily identifiable
      and
such
      proceeds
      shall
      not be maintained
      in or deposited into accounts where they are commingled
      with other proceeds of the
      Company,
      upon
      which Lender has not been granted a security interest pursuant to the terms
      of
      the Transaction Documents.

     

    SECTION
      6. NEGATIVE
      COVENANTS

     

    As
      long
      as there remains any amount outstanding under the Notes, the
      Company
      shall not, unless waived in writing by
      Lender:

     

    6.1.  Consolidation;
      Merger; Sale of Assets; Acquisitions.
      Consolidate with or merge into or with any other entity; or sell (other than
      sales of inventory in the ordinary course of business), transfer, lease or
      otherwise dispose of all or a substantial part of their
      assets;
      or acquire a substantial interest in another entity either through the purchase
      of all or substantially all of the assets of that person or the purchase of
      a
      controlling equity interest in that person.

     

    6.2.  Liens.
      Create,
      incur, assume or suffer to exist any lien on any of their
      property, real or personal, except (a) liens in favor of
      Lender;
      (b) liens for current taxes and assessments which are not yet due and payable;
      and (c) liens relating to purchase money security interests and equipment
      leases.

     

    6.3.  Additional
      Indebtedness.
      Create,
      incur, assume or suffer to exist any indebtedness except: (a) indebtedness
      in
      favor of Lender
      and (b) current liabilities incurred in the ordinary course of business
      including purchase money obligations and leases.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    6.4.  Guaranties.
      Assume,
      guarantee, endorse or otherwise become liable in connection with the
      indebtedness of any other person or entity except endorsements of negotiable
      instruments for deposit or collection in the ordinary course of
      business.

     

    6.5.  Dividends.
      Declare
      or pay any dividends, purchase, redeem, retire or otherwise acquire for value
      any of their
      capital
      stock or
      membership interests, as applicable,
      now
      or
      hereafter outstanding, return any capital to their
      stockholders or
      members, as
      applicable,
      or make
      any distribution of assets to their
      stockholders
      or
      members.

     

    6.6.  Change
      in Ownership.
      Permit a
      material change in the ownership of the
      Company as in effect on the date of this Agreement.

     

    6.7.  Change
      in Company.
      Permit,
      cause or allow a change in the management of Company
      without
      the
      written
      consent of Lender.

     

    6.8.  Transfers.
      The
      Company shall not sell or transfer all or a portion of the Collateral without
      the prior written consent of Lender
      except transfers in the ordinary course of business.

     

    SECTION
      7.  EVENTS
      OF DEFAULT AND REMEDIES

     

    7.1.  Events
      of Default.
      The term
“Event of Default” shall mean any of the following events:

     

    (a)  The
      Company
      shall
      fail to make any
      payment to
      Lender
when
      due;
      The
      Company shall
      have a fifteen (15) day grace period for payment of monthly installments of
      interest under this paragraph; or

     

    (b)  The
      Company shall fail to effect the Share Increase in accordance with Section
      5.8
      herein.

     

    (c)  The
      Company
      shall default (other than a default in payment under subsection (a) or (b)
      above) in the due performance and observance of any of the covenants contained
      in this Agreement or any of the Transaction Documents and such default shall
      continue unremedied for a period of thirty (30) days after notice and
      opportunity to cure from Lender
      to
the
      Company thereof; or

     

    (d)  The
      Company
      shall become insolvent or generally fail to pay or admit in writing its
      inability to pay its debts as they become due; or the
      Company
      shall
      apply for, consent to, or acquiesce in the appointment of a trustee, receiver
      or
      other custodian for itself or any of its property, or make a general assignment
      for the benefit of its creditors; or trustee, receiver or other custodian shall
      otherwise be appointed for the
      Company or any of its assets and not be discharged within thirty (30) days;
      or
      any bankruptcy, reorganization, debt arrangement, or other case or proceeding
      under any bankruptcy or insolvency law, or any dissolution or liquidation
      proceeding shall be commenced by or against the
      Company
      and be
      consented to or acquiesced in by the
      Company,
      or
      remain undismissed for thirty (30) days; or the
      Company shall take any corporate action to authorize, or in furtherance of,
      any
      of the foregoing; or

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (e)  The
      Company
      fails to comply with any obligation, covenant or agreement contained in any
      of
      the Transaction Documents; or

     

    (f)  Any
      representation or warranty set forth in this Agreement or any of the Transaction
      Documents shall be untrue in any material respect on the date as of which the
      facts set forth are stated or certified or become untrue in any material respect
      anytime thereafter,
      provided that the Company shall be given an opportunity to cure such default
      for
      a period of thirty (30) days after its occurrence;
      or

     

    (g)  Any
      judgments, writs, warrants of attachment, executions or similar process (not
      undisputedly covered by insurance) in an aggregate amount in excess of One
      Hundred Thousand Dollars ($100,000) shall be issued or levied against the
      Company or any of its assets and shall not be released, vacated or fully bonded
      prior to any sale and in any event within thirty (30) days after its issue
      or
      levy.

     

    7.2.  Remedies.
      If an
      Event of Default described in Sections 7.1(a) or (b) shall occur, the full
      unpaid balance of the Notes (outstanding balance plus accrued interest) and
      all
      other obligations owed to Lender by the
      Company,
      whether
      hereunder or pursuant to any other Agreement or instrument, shall automatically
      be due and payable without declaration, notice, presentment, protest or demand
      of any kind (all of which are hereby expressly waived). If any other Event
      of
      Default shall occur and be continuing, Lender
      may declare the outstanding balance of the Notes and all other obligations
      owed
      to Lender by the
      Company
      pursuant to any other Agreement or instrument, to be due and payable without
      further notice, presentment, protest or demand of any kind (all of which are
      hereby expressly waived), whereupon the full unpaid amount of the Notes
      and
      all other obligations of the
      Company to
      Lender
      shall become immediately due and payable. Upon any Event of Default hereunder,
      Lender
      shall be entitled to exercise any and all rights and remedies available at
      law
      or in equity for the collection of the amounts owed under the Notes and all
      other obligations of the
      Company
      to
      Lender.

     

    SECTION
      8. MISCELLANEOUS

     

    8.1.  Waivers,
      Amendments.
      The
      provisions of the Transaction Documents may from time to time be amended,
      modified, or waived, if such amendment, modification or waiver is in writing
      and
      signed by the parties hereto. No failure or delay on the part of Lender
      or
      the holder of the Notes in exercising any power or right under any Transaction
      Document shall operate as a waiver thereof, nor shall any single or partial
      exercise of any such power or right preclude any other or further exercise
      thereof or the exercise of any other power or right. No notice to or demand
      on
the
      Company
      in any case shall entitle it to any notice or demand in similar or other
      circumstances.

     

    8.2.  Termination.
      In the
      event that the Company fails to satisfy the conditions set forth in Section
      4
      herein (and the non-breaching party’s failure to waive such unsatisfied
      condition(s)), the non-breaching party shall have the option to terminate this
      Agreement with respect to such breaching party at the close of business on
      such
      date; provided, however, that if this Agreement is terminated by Lender pursuant
      to this Section 8.2, the Company shall remain obligated to pay any and all
      amounts due under the Notes as of such date. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    8.3.  Brokerage.
      The
      Company represents that no broker, agent, finder or other party has been
      retained by it in connection with the transactions contemplated hereby and
      that
      no other fee or commission has been agreed by the Company to be paid for or
      on
      account of the transactions contemplated hereby.

     

    8.4.  Notices.
      Any
      notices, consents, waivers, or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered (a) upon receipt, when delivered personally; (b) upon
      confirmation of receipt, when sent by facsimile; (c) three (3) days after being
      sent by U.S. certified mail, return receipt requested, or (d) one (1) day after
      deposit with a nationally recognized overnight delivery service, in each case
      properly addressed to the party to receive the same. The addresses and facsimile
      numbers for such communications shall be:

     

    
      	
              If
                to the Company, to:

            	
              GWIN,
                Inc.

            
	 	
              5052
                South Jones Boulevard

            
	 	
              Suite
                100

            
	 	
              Las
                Vegas, Nevada 89118

            
	 	
              Attention:
                 Douglas
                R. Miller

            
	 	
              Telephone: (702)
                967-6000

            
	 	
              Facsimile: (702)
                967-6002

            
	 	 
	
              With
                a copy to:

            	
              Kirkpatrick
                & Lockhart Nicholson Graham LLP

            
	 	
              201
                South Biscayne Boulevard - Suite 2000

            
	 	
              Miami,
                Florida
                33131-2399

            
	 	
              Attention: Clayton
                E. Parker, Esq.

            
	 	
              Telephone: (305)
                539-3300

            
	 	
              Facsimile: (305)
                358-7095

            
	 	 
	
              If
                to Lender, to:

            	
              CSI
                Business Finance, Inc.

            
	 	
              109
                North Post Oak Lane, Suite 422

            
	 	
              Houston,
                Texas 77024

            
	 	
              Attention: Timothy
                J. Connolly

            
	 	
              Telephone: (713)
                621-2737

            
	 	
              Facsimile: (713)
                586-6678

            
	 	 

    

    Each
      party shall provide five (5) days’ prior written notice to the other party of
      any change in address or facsimile number.

     

    8.5.  Costs
      and Expenses. The
      Company
      agrees to pay all expenses for the preparation of this Agreement, including
      exhibits, and any amendments to this Agreement as may from time to time
      hereafter be required, and the reasonable attorneys’
      fees and
      legal expenses of counsel for Lender,
      from time to time incurred in connection therewith and the
      related Transaction Documents. The
      Company agrees to reimburse Lender upon demand
      for,
      all
      reasonable out-of-pocket expenses (including attorney’
      fees and
      legal expenses) in connection with Lender’s
      enforcement of the obligations of the
      Company hereunder or any other Transaction Documents, whether or not suit is
      commenced
      including, without limitation, attorneys’
      fees
      and
      legal expenses in connection with any appeal of a lower court’s order or
      judgment. The obligations of
      the
      Company under this Section 8.5 shall survive any termination of this
      Agreement.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    8.6.  Severability.
      Any
      provision of this Agreement or any Transaction Document executed pursuant hereto
      which is prohibited or unenforceable in any jurisdiction shall, as to such
      jurisdiction, be ineffective to the extent of such portion or unenforceability
      without invalidating the remaining provisions of this Agreement or such
      Transaction Document or affecting the validity or enforceability of such
      provisions in any other jurisdiction.

     

    8.7.  Cross-References.
      References in this Agreement or in any other Transaction Document executed
      pursuant hereto to any Section are, unless otherwise specified, to such Section
      of this Agreement or such Transaction Document, as the case may be.

     

    8.8.  Headings.
      The
      various headings of this Agreement and
      of
      any
      other Transaction Document executed pursuant hereto are inserted for convenience
      only and shall not affect the meaning or interpretation of this Agreement or
      such Transaction Document or any provisions hereof or thereof.

     

    8.9.  Governing
      Law; Venue.
      The
      interpretation and construction of this Agreement, and all matters relating
      hereto, shall be governed by the laws of the State of Delaware without giving
      effect to the principles of conflicts of laws thereof. Each of the parties
      hereto consents to the jurisdiction of the federal and state courts of the
      State
      of Texas in any such action or proceeding and waives any objection to venue
      laid
      therein. 

     

    8.10.  Successors
      and Assigns.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective successors and assigns, except that the
      Company
      may
      not
      assign
      or transfer its rights hereunder without the prior written consent of
Lender.

     

    8.11.  Recitals.
      The
      recitals to this Agreement are incorporated into and constitute an integral
      part
      of this Agreement.

     

    8.12.  Multiple
      Counterparts.
      This
      Agreement may be executed in one (1) or more counterparts, each of which shall
      be deemed to be an original and all of which shall constitute one and the same
      instrument.

     

    8.13.  Prior
      Agreement Superceded.
      This
      Agreement supercedes in its entirety any prior oral agreements
      by and
between
      the
      Company and
      Lender,
      with
      respect to the Loan and related Transaction Documents.

     

    8.14.  Inspection
      of Collateral and Records.
      Lender
      may at its option upon reasonable notice inspect the
      collateral
      and
      records of the
      Company,
      at its premises.

     

    8.15.  Waiver
      of Jury Trial.
      THE
      COMPANY AND
      LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY
      MAY
      HAVE TO TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED HEREON, OR ARISING
      OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT, AND ANY AGREEMENT EXECUTED
      IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
      (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF ANY PARTY. THIS PROVISION IS A
      MATERIAL INDUCEMENT FOR LENDER
      AGREEING TO THE TERMS OF THIS AGREEMENT.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    8.16.  Time
      of the Essence.
      Time is
      of the essence as to each requirement under the Agreement.

     

    8.17.  Opportunity
      to Hire Counsel; Role of Kirkpatrick & Lockhart Nicholson Graham
      LLP.
      Lender
      acknowledges that they have been advised and have been given an opportunity
      to
      hire counsel with respect to this Agreement and the transactions contemplated
      hereby. Lender further acknowledges that the law firm of Kirkpatrick &
Lockhart Nicholson Graham LLP has solely represented the Company in connection
      with this Agreement and the transactions contemplated hereby and no other
      person.

     

    

     

    

     

    [SIGNATURE
      PAGE TO FOLLOW] 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

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

     

     

    
      	 	 	THE
              COMPANY: 
	 	 	 
	 	 	GWIN,
              INC. 
	 	 	 
	 	 	By: /s/ Wayne Allyn
              Root           
              
	 	 	Name: Wayne Allyn Root
	 	 	Title: Chief Executive Officer
	 	 	 
	 	 	LENDER: 
	 	 	 
	 	 	CSI BUSINESS FINANCE,
              INC. 
	 	 	 
	 	 	By: /s/ Timothy J.
              Connolly         
	 	 	Name: Timothy J. Connolly
	 	 	Title: Chief Executive
              Officer

    

     

     

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

      

    EXHIBIT
      A

    

    [FORM
      OF NOTE]

     

     

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

    

    [DISBURSEMENT
      INSTRUCTIONS]

    

    

     

     

     

    
 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    DISCLOSURE
      SCHEDULE

     

    

    Item
      3.3:

     

    On
      December 1, 2004, the Company closed on a transaction with Laurus Master Fund
      Ltd. (“Laurus”)
      in
      which the Company borrowed $600,000 from Laurus pursuant to a Convertible Term
      Note (“Term
      Note”)
      for
      $600,000 and the Company issued a seven (7) year warrant to purchase 2,666,667
      shares of Common Stock at an exercise price of $0.09 per share. The Term Note
      is
      due in three (3) years, bears interest at thirteen percent (13%), with the
      interest being payable monthly; and principal payments are amortized over the
      term of the loan with the first payment due February 1, 2005; and the payments
      of principal and interest may be paid using shares of Common Stock at a price
      of
      $0.073, subject to adjustment, if certain conditions are met.

     

    The
      Term
      Note is secured by (a) a personal guaranty of Wayne Allyn Root; (b) a pledge
      by
      Mr. Root of all of his shares of the Company; (c) an assignment of all of the
      funds which are released from certain credit card security accounts; and (d)
      a
      master security agreement covering all of the assets of the
      Company.

     

    The
      loan
      and sale of the warrant were made pursuant to a Securities Purchase Agreement
      with Laurus. Laurus has no relationship with the Company or any of its
      affiliates other than the fact that Laurus entered into a somewhat similar
      transaction with the Company in 2002, and the Company still owed to Laurus
      approximately $119,000 as of November 30, 2004 on the original loan transaction.
      The Company paid to Laurus Capital Management, LLC, the manager of Laurus,
      a fee
      of $21,000 plus $10,000 for its expenses. The funds from this loan are being
      used for general working capital purposes.

     

    The
      Securities Purchase Agreement required that the Company file a registration
      statement with the SEC registering the shares to be issued as payments on the
      Term Note and the shares issuable upon exercise of the warrant (collectively,
      the “Securities”).
      As of
      March 25, 2005, the Company has an effective Registration Statement on Form
      SB-2
      which covers the Securities.

     

    The
      Company filed a Current Report on Form 8-K with the U.S. Securities and Exchange
      Commission on December 2, 2004 disclosing this transaction and copies of the
      Securities Purchase Agreement and the Term Note are attached as Exhibits 10.27
      and 10.28 thereto.

     

    Item
      3.4:

     

    In
      September 2002 the Company entered into an unsecured short term facility (the
      “New
      Market Note”)
      with
      Newmarket plc (“Newmarket”),
      a
      company organized under the laws of the United Kingdom. Pursuant to the New
      Market Note, Newmarket loaned to the Company $250,000. The Company has paid
      to
      Newmarket approximately $100,000 leaving a balance equal to $150,000 plus
      approximately $18,000 in accrued interest as of the date of this Agreement.
      The
      New Market Note has matured. The Company never received any demand or notice
      of
      default from Newmarket, and the Company has, since the date of maturity on
      the
      New Market Note, made several attempts to contact Newmarket to resolve the
      debt
      to no avail. The Company has no evidence of the New Market Note other than
      email
      confirmations, which such confirmations are over two (2) years old. Furthermore,
      the principals of Newmarket were, at the time of the New Market Note, Board
      members of the Company and thus the New Market Note has been shown as a related
      party debt.

     

    
      
        
        

      

      
        22Unassociated Document

    PROMISSORY
      NOTE

    

    
      	$355,000  
              	
               September
                11,
                2006

            

    

     

    FOR
      VALUE RECEIVED,
      the
      undersigned, GWIN,
      Inc.,
      a
      Delaware corporation (the “Company”),
      promises to pay to CSI
      Business Finance, Inc.,
      a
      Florida corporation (“Lender”
and
      together with the Company, the “Parties”
and
      each a “Party”),
      the
      principal sum of Three
      Hundred Fifty-Five Thousand Dollars ($355,000)
      plus
      interest pursuant to the following terms: 

     

    1.  Maturity.
      The face
      amount of this Promissory Note (this “Note”)
      plus
      any and all interest accrued hereon shall become payable and due on June 30,
      2007 (the “Maturity
      Date”)
      .

     

    2.  Interest.
      Interest shall accrue on the outstanding principal balance hereof at a rate
      equal
      to one
      and one half percent (1.5%) per month. Interest shall be (a) calculated on
      the
      basis of a 365-day year and the actual number of days elapsed, to the extent
      permitted by applicable law and (b) paid monthly in cash, commencing on October
      1, 2006 on the first business day of each consecutive calendar month thereafter
      until the Maturity Date (and on the Maturity Date) to Lender at 109 North Post
      Oak Lane, Suite 422, Houston, Texas 77024 or at another address as Lender shall
      specify in writing.

     

    3.  Security
      Agreements.
      This
      Note is secured by a Pledge and Escrow Agreement (the “Pledge
      Agreement”),
      of
      even date herewith, by and among the Company, Lender and the Escrow Agent;
      an
      Insider Pledge and Escrow Agreement (“Insider
      Pledge Agreement”),
      of
      even date herewith, by and among the Company, Lender, Wayne Allyn Root and
      the
      Escrow Agent; a Security Agreement (the “Security
      Agreement”),
      of
      even date herewith, by and between the Company and Lender; and a Subsidiary
      Security Agreement (the “Subsidiary
      Security Agreement”)
      by and
      between Lender and Global SportsEDGE, Inc., a wholly-owned subsidiary of the
      Company.

     

    4.  Methods
      of Payment.
      This
      Note
      may be voluntarily prepaid, without penalty or premium, in whole or in part,
      at
      any time and from time to time. Any prepayment must include all accrued interest
      on the principal being paid through the date of prepayment.

     

    5.  Waiver
      and Consent.
      To the
      fullest extent permitted by law and except as otherwise provided herein, the
      Company waives demand, presentment, protest, notice of dishonor, suit against
      or
      joinder of any other person, and all other requirements necessary to charge
      or
      hold the Company liable with respect to this Note.

     

    6.  Costs,
      Indemnities and Expenses.
      In the
      event of default as described herein, the Company agrees to pay all reasonable
      fees and costs incurred by Lender in collecting or securing or attempting to
      collect or secure this Note, including reasonable attorneys’ fees and expenses,
      whether or not involving litigation, collecting upon any judgments and/or
      appellate or bankruptcy proceedings. The Company agrees to pay any documentary
      stamp taxes, intangible taxes or other taxes which may now or hereafter apply
      to
      this Note or any payment made in respect of this Note, and the Company agrees
      to
      indemnify and hold Lender harmless from and against any liability, costs,
      attorneys’ fees, penalties, interest or expenses relating to any such taxes, as
      and when the same may be incurred.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.  Events
      of Default.
      Upon an
      Event of Default (as defined below), the entire principal balance and accrued
      interest outstanding under this Note, and all other obligations of the Company
      under this Note, shall be immediately due and payable without any action on
      the
      part of Lender, and Lender shall be entitled to seek and institute any and
      all
      remedies available to it. No remedy conferred under this Note upon Lender is
      intended to be exclusive of any other remedy available to Lender, pursuant
      to
      the terms of this Note or otherwise. No single or partial exercise by Lender
      of
      any right, power or remedy hereunder shall preclude any other or further
      exercise thereof. The failure of Lender to exercise any right or remedy under
      this Note or otherwise, or delay in exercising such right or remedy, shall
      not
      operate as a waiver thereof. An “Event
      of Default”
shall
      be deemed to have occurred upon the occurrence of any of the following: (i)
      the
      Company should fail for any reason or for no reason to make payment of the
      outstanding principal balance plus accrued interest pursuant to this Note within
      the time prescribed herein; or (ii) the Company fails to satisfy any other
      obligation or requirement of the Company under this Note (except as may be
      covered by Section 7(i) herein) or other Transaction Document (as such term
      is
      defined in the Loan Agreement), or otherwise commit any breach or default of
      any
      provision of this Note or other Transaction Document which is not cured within
      the time prescribed; or (iii) any proceedings under any bankruptcy laws of
      the
      United States of America or under any insolvency, not disclosed to Lender,
      reorganization, receivership, readjustment of debt, dissolution, liquidation
      or
      any similar law or statute of any jurisdiction now or hereinafter in effect
      (whether in law or at equity) is filed by or against the Company or for all
      or
      any part of its property; or (iv) the Company’s common stock shall cease to be
      quoted for trading or listing on either the Nasdaq OTC Bulletin Board or if
      then
      listed on Nasdaq Capital Market, New York Stock Exchange, American Stock
      Exchange or the Nasdaq National Market (each, a “Subsequent
      Market”)
      shall
      cease to be quoted for trading or listing on such Subsequent Market and shall
      not again be quoted or listed for trading thereon within five (5) trading days
      of such delisting; or (v) except as disclosed in Item 3.4 of the Disclosure
      Schedule to the Loan Agreement, the Company or any subsidiary of the Company
      shall default in any of its obligations under any other note, debenture, or
      any
      mortgage, credit agreement or other facility indenture agreement, factoring
      agreement or other instrument under which there may be issued, or by which
      there
      may be secured or evidenced any indebtedness for borrowed money or money due
      under any long term leasing or factoring agreement of the Company or any
      subsidiary of the Company in an amount exceeding One Hundred Thousand Dollars
      ($100,000), whether such indebtedness now exists or shall hereafter be created
      and such default shall result in such indebtedness becoming or being declared
      due and payable prior to the date on which it would otherwise become due and
      payable; or (vi) the Company shall fail for any reason to effect the Share
      Increase in accordance with Section 5.8 of the Loan Agreement.

     

    8.  Maximum
      Interest Rate.
      In no
      event shall any agreed to or actual interest charged, reserved or taken by
      Lender as consideration for this Note exceed the limits imposed by the laws
      of
      the State of Delaware. In the event that the interest provisions of this Note
      shall result at any time or for any reason in an effective rate of interest
      that
      exceeds the maximum interest rate permitted by applicable law, then without
      further agreement or notice the obligation to be fulfilled shall be
      automatically reduced to such limit and all sums received by Lender in excess
      of
      those lawfully collectible as interest shall be applied against the principal
      of
      this Note immediately upon Lender’s receipt thereof, with the same force and
      effect as though the Company had specifically designated such extra sums to
      be
      so applied to principal and Lender had agreed to accept such extra payment(s)
      as
      a premium-free prepayment or prepayments.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    9.  Cancellation
      of Note.
      Upon the
      repayment by the Company of all of its obligations hereunder to Lender,
      including, without limitation, the face amount of this Note, plus accrued but
      unpaid interest, the indebtedness evidenced hereby shall be deemed canceled
      and
      paid in full. Except as otherwise required by law or by the provisions of this
      Note, payments received by Lender hereunder shall be applied first against
      expenses and indemnities, next against interest accrued on this Note, and next
      in reduction of the outstanding principal balance of this Note.

     

    10.  Severability.
      If any
      provision of this Note is, for any reason, invalid or unenforceable, the
      remaining provisions of this Note will nevertheless be valid and enforceable
      and
      will remain in full force and effect. Any provision of this Note that is held
      invalid or unenforceable by a court of competent jurisdiction will be deemed
      modified to the extent necessary to make it valid and enforceable and as so
      modified will remain in full force and effect.

     

    11.  Amendment
      and Waiver.
      This
      Note may be amended, or any provision of this Note may be waived, provided
      that
      any such amendment or waiver will be binding on a party hereto only if such
      amendment or waiver is set forth in a writing executed by the parties hereto.
      The waiver by any such party hereto of a breach of any provision of this Note
      shall not operate or be construed as a waiver of any other breach.

     

    12.  Successors.
      Except
      as otherwise provided herein, this Note shall bind and inure to the benefit
      of
      and be enforceable by the parties hereto and their permitted successors and
      assigns.

     

    13.  Assignment.
      This
      Note shall not be directly or indirectly assignable or delegable by the Company.
      Lender may assign this Note as long as such assignment complies with the
      Securities Act of 1933, as amended.

     

    14.  No
      Strict Construction.
      The
      language used in this Note will be deemed to be the language chosen by the
      parties hereto to express their mutual intent, and no rule of strict
      construction will be applied against any party.

     

    15.  Further
      Assurances.
      Each
      party hereto will execute all documents and take such other actions as the
      other
      party may reasonably request in order to consummate the transactions provided
      for herein and to accomplish the purposes of this Note.

     

    16.  Notices,
      Consents, etc.  Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms hereof must be in writing and will be deemed to have
      been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile (provided confirmation of transmission is mechanically or
      electronically generated and kept on file by the sending party); or (iii) one
      (1) business day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              If
                to the Company:

            	
              GWIN,
                Inc.

            
	 	
              5052
                South Jones Boulevard 

            
	 	
              Suite
                100

            
	 	
              Las
                Vegas, Nevada 89118

            
	 	
              Attention:
                 Douglas
                R. Miller

            
	 	
              Telephone: (702)
                967-6000

            
	 	
              Facsimile: (702)
                967-6002

            
	 	 
	
              With
                a copy to:

            	
              Kirkpatrick
                & Lockhart Nicholson Graham LLP

            
	 	
              201
                South Biscayne Blvd. - Suite 2000

            
	 	
              Miami,
                FL 33131-2399

            
	 	
              Attention: Clayton
                E. Parker, Esq.

            
	 	
              Telephone: (305)
                539-3300

            
	 	
              Facsimile: (305)
                358-7095

            
	 	 
	
              If
                to Lender:

            	
              CSI
                Business Finance, Inc.

            
	 	
              109
                North Post Oak Lane 

            
	 	
              Suite
                422

            
	 	
              Houston,
                TX 77024

            
	 	
              Attention:
                 Timothy
                J. Connolly

            
	 	
              Telephone: (713)
                621-2737

            
	 	
              Facsimile: (713)
                586-6678

            
	 	 

    

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party five (5) business days prior to the effectiveness of such
      change. Written confirmation of receipt (a) given by the recipient of such
      notice, consent, waiver or other communication, (b) mechanically or
      electronically generated by the sender's facsimile machine containing the time,
      date, recipient facsimile number and an image of the first page of such
      transmission or (c) provided by a nationally recognized overnight delivery
      service, shall be rebuttable evidence of personal service, receipt by facsimile
      or receipt from a nationally recognized overnight delivery service in accordance
      with clause (a), (b) or (c) above, respectively.

     

    17.  Remedies,
      Other Obligations, Breaches and Injunctive Relief.
      Lender’s
      remedies provided in this Note shall be cumulative and in addition to all other
      remedies available to Lender under this Note, at law or in equity (including
      a
      decree of specific performance and/or other injunctive relief), no remedy of
      Lender contained herein shall be deemed a waiver of compliance with the
      provisions giving rise to such remedy and nothing herein shall limit Lender’s
      right to pursue actual damages for any failure by the Company to comply with
      the
      terms of this Note. Every
      right and remedy of Lender under any document executed in connection with this
      transaction may be exercised from time to time and as often as may be deemed
      expedient by Lender.
      The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to Lender and that the remedy at law for any such breach may
      be
      inadequate. The Company therefore agrees that, in the event of any such breach
      or threatened breach, Lender shall be entitled, in addition to all other
      available remedies, to an injunction restraining any breach, and specific
      performance without the necessity of showing economic loss and without any
      bond
      or other security being required.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    18.  Governing
      Law; Jurisdiction.
      The
      interpretation and construction of this Agreement, and all matters relating
      hereto, shall be governed by the laws of the State of Delaware without giving
      effect to the principles of conflicts of laws thereof. Each of the parties
      hereto consents to the jurisdiction of the federal and state courts of the
      State
      of Texas in any such action or proceeding and waives any objection to venue
      laid
      therein. 

     

    19.  No
      Inconsistent Agreements.
      Neither
      of the parties hereto will hereafter enter into any agreement which is
      inconsistent with the rights granted to the parties in this Note.

     

    20.  Third
      Parties.
      Nothing
      herein expressed or implied is intended or shall be construed to confer upon
      or
      give to any person or entity, other than the parties to this Note and their
      respective permitted successor and assigns, any rights or remedies under or
      by
      reason of this Note.

     

    21.  Waiver
      of Jury Trial.
      AS A MATERIAL INDUCEMENT FOR LENDER TO LOAN TO THE COMPANY THE MONIES HEREUNDER,
      THE COMPANY HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS NOTE AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION.

     

    22.  Entire
      Agreement.
      This
      Note (including the recitals hereto) sets forth the entire understanding of
      the
      parties with respect to the subject matter hereof, and shall not be modified
      or
      affected by any offer, proposal, statement or representation, oral or written,
      made by or for any party in connection with the negotiation of the terms hereof,
      and may be modified only by instruments signed by all of the parties
      hereto.

     

    23.  Opportunity
      to Hire Counsel; Role of Kirkpatrick & Lockhart Nicholson Graham
      LLP.
      Lender
      acknowledges that they have been advised and have been given an opportunity
      to
      hire counsel with respect to this Agreement and the transactions contemplated
      hereby. Lender further acknowledges that the law firm of Kirkpatrick &
Lockhart Nicholson Graham LLP has solely represented the Company in connection
      with this Agreement and the transactions contemplated hereby and no other
      person.

     

    

     

    [Signature
      Page To Follow]

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      this
      Note is executed by the undersigned as of the date hereof.

     

    
      	 	
              GWIN,
                INC.

            
	 	 
	 	
              By:
                /s/ Wayne Allyn Root     

            
	 	
              Name: Wayne
                Allyn Root

            
	 	
              Title:
                Chief Executive Officer

            

    

    

    

    

    
      
         

      

      
        6

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