Document:

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                         VERTICAL HEALTH SOLUTIONS, INC.

                     KASHNER DAVIDSON SECURITIES CORPORATION

                                  UNDERWRITER'S

                                WARRANT AGREEMENT

                UNDERWRITER'S WARRANT AGREEMENT dated as of _________, 2002 by
and between VERTICAL HEALTH SOLUTIONS, INC. (the "Company") and KASHNER DAVIDSON
SECURITIES CORPORATION ("Underwriter" or "Kashner")

                              W I T N E S S E T H:
                              -------------------

         WHEREAS, the Company proposes to issue to the Underwriter 135,000
warrants (each an "Underwriter's Warrant") each to purchase a share of the
Company's common stock, par value $.001 per share (the "Common Stock").

         WHEREAS, the Underwriter has agreed, pursuant to the underwriting
agreement (the "Underwriting Agreement") dated ______, 2002, by and between the
Underwriter and the Company, to act as the Underwriter in connection with the
Company's proposed public offering (the "Public Offering") of 1,350,000 shares
of Common Stock (the "Offering Securities"); and

         WHEREAS, the Underwriter's Warrants to be issued pursuant to this
Agreement will be issued on the Closing Date (as such term is defined in the
Underwriting Agreement) by the Company to the Underwriter in consideration for,
and as part of, the Underwriter's compensation in connection with the
Underwriter acting as the Underwriter pursuant to the Underwriting Agreement;

         NOW, THEREFORE, in consideration of the premises, the payment by the
Underwriter to the Company of Ten Dollars ($10.00), the agreements herein set
forth and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         1. Grant. The Holder (as defined in Section 3 below) is hereby granted
            -----
the right to purchase, at any time from _________, 2003 until 5:00 p.m., New
York time, _______, 2007, up to 135,000 shares of Common Stock, at an initial
purchase price (subject to adjustment as provided in Section 8 hereof) of $9.90
per share of Common Stock (165% of the per share public offering price), subject
to the terms and conditions of this Agreement. The securities issuable, upon
exercise of the Underwriter's Warrant are sometimes referred to herein as the
"Underwriter's Securities."

         2. Warrant Certificates. The warrant certificate (the "Underwriter's
            --------------------
Warrant Certificate") to be delivered pursuant to this Agreement shall be in the
form set forth in Exhibit A attached hereto and made a part hereof, with such
appropriate insertions, omissions, substitutions, and other variations as
required or permitted by this Agreement.

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         3. Exercise of Underwriter's Warrant.
            ---------------------------------

            (a) The Underwriter's Warrant is exercisable during the term set
forth in Section 1 hereof payable by certified or cashier's check or money order
in lawful money of the United States. Upon surrender of Underwriters' Warrant
Certificate with the annexed Form of Election to Purchase duly executed,
together with payment of the Purchase Price (as hereinafter defined) for the
Underwriter's Securities (and such other amounts, if any, arising pursuant to
Section 4 hereof) at the Company's principal office currently located at 6925
112/th/ Circle North Suite 102, Largo, Florida 33773 the registered holder of a
Underwriter's Warrant Certificate ("Holder" or "Holders") shall be entitled to
receive a certificate or certificates for the Underwriter's Securities so
purchased. The purchase rights represented by each Underwriter's Warrant
Certificate are exercisable at the option of the Holder or Holders thereof, in
whole or in part as to Underwriter's Securities. The Underwriter's Warrant may
be exercised to purchase all or any part of the Underwriter's Securities
represented thereby. In the case of the purchase of less than all the
Underwriters' Securities purchasable on the exercise of the Underwriters'
Warrant represented by a Underwriters' Warrant Certificate, the Company shall
cancel the Underwriters' Warrant Certificate represented thereby upon the
surrender thereof and shall execute and deliver a new Underwriters' Warrant
Certificate of like tenor for the balance of the Underwriters' Securities
purchasable thereunder.

            (b) In lieu of the payment of cash upon exercise of the
Underwriters' Warrant as provided in Section 3(a), the Holder may exercise the
Underwriters' Warrant by surrendering the Underwriters' Warrant Certificate at
the principal office of the Company, accompanied by a notice stating (i) the
Holder's intent to effect such exercise by an exchange, (ii) Common Stock to be
issued upon the exchange, (iii) whether Underwriters' Warrants are to be
surrendered in connection with the exchange, and (iv) the date on which the
Holder requests that such exchange is to occur. The Purchase Price for the
Underwriters' Securities to be acquired in the exchange shall be paid by the
surrender as indicated in the notice, of Underwriters' Warrants, having a
"Value", as defined below, equal to the Purchase Price. "Value" as to each
Underwriters' Warrant shall mean the difference between the "Market Price", as
hereinafter defined, of a share of Common Stock and the then Purchase Price for
a share of Common Stock.

            By way of example of the application of the formula, assume that the
Market Price of the Common Stock is $8.00, the Purchase Price of the
Underwriters' Warrant is $6.00. On such assumptions, the Value of a
Underwriters' Warrant is $2.00 ($8.00-$6.00) and therefore for each three
Underwriters' Warrants surrendered, the Holder could acquire one share of Common
Stock in the exchange. Notwithstanding the example, the Holder shall not be
limited to exchanging Underwriters' Warrants for Common Stock.

         The Warrant Exchange shall take place on the date specified in the
notice or if the date the notice is received by the Company is later than the
date specified in the notice, on the date the notice is received by the Company.

         4. Issuance of Certificates. Upon the exercise of the Underwriters'
            ------------------------
Warrant and payment of the Purchase Price therefor, the issuance of certificates
representing the Underwriters'

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Securities or other securities, properties or rights underlying such
Underwriters' Warrant, shall be made forthwith (and in any event within five (5)
business days thereafter) without further charge to the Holder thereof, and such
certificates shall (subject to the provisions of Sections 5 and 7 hereof) be
issued in the name of, or in such names as may be directed by, the Holder
thereof; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the issuance and
delivery of any such certificates in a name other than that of the Holder, and
the Company shall not be required to issue or deliver such certificates unless
or until the person or persons requesting the issuance thereof shall have paid
to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid. The Underwriters'
Warrant Certificates and the certificates representing the Underwriters'
Securities or other securities, property or rights (if such property or rights
are represented by certificates) shall be executed on behalf of the Company by
the manual or facsimile signature of the then present Chairman or Vice Chairman
of the Board of Directors or President or Vice President of the Company,
attested to by the manual or facsimile signature of the then present Secretary
or Assistant Secretary or Treasurer or Assistant Treasurer of the Company. The
Underwriters' Warrant Certificates shall be dated the date of issuance thereof
by the Company upon initial issuance, transfer or exchange.

         5. Restriction On Transfer of Underwriters' Warrant. The Holder of
            ------------------------------------------------
an Underwriters' Warrant Certificate (and its Permitted Transferee, as defined
below), by its acceptance thereof, covenants and agrees that the Underwriters'
Warrant may be sold, transferred, assigned, hypothecated or otherwise disposed
of, in whole or in part, until _______, 2003 (one year following the effective
date of the Public Offering), only to officers and partners of the Underwriters,
or any Public Offering selling group member and their respective officers and
partners, ("Permitted Transferees"). Thereafter the Underwriters' Warrant may be
transferred, assigned, hypothecated or otherwise disposed of in compliance with
applicable law.

         6. Purchase Price.
            --------------

            (a) Initial and Adjusted Purchase Price. Except as otherwise
                -----------------------------------
provided in Section 8 hereof, the initial purchase price of the Underwriters'
Securities shall be $9.90 per share of Common Stock (165% of the per share
public offering price). The adjusted purchase price shall be the price which
shall result from time to time from any and all adjustments of the initial
purchase price in accordance with the provisions of Section 8 hereof.

                (b) Purchase Price. The term "Purchase Price" herein shall mean
                    --------------
the initial purchase price or the adjusted purchase price, depending upon the
context.

         7. Registration Rights.
            -------------------

            (a) Registration Under the Securities Act of 1933 as amended
                --------------------------------------------------------
("Act"). The Underwriters' Warrant may have not been registered under the Act.
-------
The Underwriters' Warrant Certificates may bear the following legend:

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             "The securities represented by this certificate have not been
registered under the Securities Act of 1933 (the "Act"), and may not be offered
for sale or sold except pursuant to (i) an effective registration statement
under the Act, or (ii) an opinion of counsel, if such opinion and counsel shall
be reasonably satisfactory to counsel to the issuer, that an exemption from
registration under the Act is available".

                 (b) Demand Registration. (1) At any time commencing on the
                     -------------------
first anniversary of and expiring on the fifth anniversary of the effective date
of the Company's Registration Statement relating to the Public Offering (the
"Effective Date"), the Holders of a Majority (as hereinafter defined) in
interest of the Underwriters' Warrant, or the Majority in interest of the
Underwriters' Securities (assuming the exercise of all of the Underwriters'
Warrant) shall have the right, exercisable by written notice to the Company, to
have the Company prepare and file with the U.S. Securities and Exchange
Commission (the "Commission"), on one (1) occasion, a registration statement on
Form SB-2, S-1 or other appropriate form, and such other documents, including a
prospectus, as may be necessary in the opinion of both counsel for the Company
and counsel for the Holders, in order to comply with the provisions of the Act,
so as to permit a public offering and sale, of the Underwriters' Securities by
such Holders and any other Holders of the Underwriters' Warrant and/or the
Underwriters' Securities who notify the Company within fifteen (15) business
days after receipt of the notice described in Section 7(b)(2). The Holders of
the Underwriters' Warrant may demand registration prior to exercising the
Underwriters' Warrant, and may pay such exercise price from the proceeds of such
public offering.

         (2) The Company covenants and agrees to give written notice of any
registration request under this Section 7(b) by any Holders to all other
registered Holders of the Underwriters' Warrant and the Underwriters' Securities
within ten (10) calendar days from the date of the receipt of any such
registration request.

         (3) For purposes of this Agreement, the term "Majority" in reference to
the Holders of the Underwriters' Warrant or Underwriters' Securities, shall mean
in excess of fifty percent (50%) of the then outstanding Underwriters' Warrant
or Underwriters' Securities that (i) are not held by the Company, an affiliate,
officer, creditor, employee or agent thereof or any of their respective
affiliates, members of their family, persons acting as nominees or in
conjunction therewith, or (ii) have not been resold to the public pursuant to a
registration statement filed with the Commission under the Act.

             (c) Piggyback Registration. (1) If, at any time within the period
                 ----------------------
commencing on the first anniversary and expiring on the sixth anniversary of the
Effective Date, the Company should file a registration statement with the
Commission under the Act (other than in connection with a merger or other
business combination transaction or pursuant to Form S-8), it will give written
notice at least twenty (20) calendar days prior to the filing of each such
registration statement to the Underwriter and to all other Holders of the
Underwriters' Warrant and/or the Underwriters' Securities of its intention to do
so. If an Underwriter or other Holders of the Underwriters' Warrant and/or the
Underwriters' Securities notify the Company within fifteen (15) calendar days
after receipt of any such notice of its or their desire to include any
Underwriters' Securities in such proposed

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registration statement, the Company shall afford the Underwriter and such
Holders of the Underwriters' Warrant and/or Underwriters' Securities the
opportunity to have any such Underwriters' Securities registered under such
registration statement. Notwithstanding the provisions of this Section 7(c)(1)
and the provisions of Section 7(d), the Company shall have the right at any time
after it shall have given written notice pursuant to this Section 7(c)(1)
(irrespective of whether a written request for inclusion of any such securities
shall have been made) to elect not to file any such proposed registration
statement, or to withdraw the same after the filing but prior to the effective
date thereof.

            (2) If the managing underwriter of an offering to which the above
piggyback rights apply, in good faith and for valid business reasons, objects to
such rights, such objection shall preclude such inclusion.

            (d) Covenants of the Company With Respect to Registration. In
                -----------------------------------------------------
connection with any registrations under Sections 7(b) and 7(c) hereof, the
Company covenants and agrees as follows:

                (1) The Company shall use its best efforts to file a
registration statement within thirty (30) calendar days of receipt of any demand
therefor pursuant to Section 7(b); provided, however, that the Company shall not
be required to produce audited or unaudited financial statements for any period
prior to the date such financial statements are required to be filed in a report
on Form 10-KSB or Form 10-QSB, as the case may be. The Company shall use its
best efforts to have any registration statement declared effective at the
earliest possible time, and shall furnish each Holder desiring to sell
Underwriters' Securities such number of prospectuses as shall reasonably be
requested.

                (2) The Company shall pay all costs (excluding fees and expenses
of Holders' counsel and any underwriting discounts or selling fees, expenses or
commissions), fees and expenses in connection with any registration statement
filed pursuant to Sections 7(b) and 7(c) hereof including, without limitation,
the Company's legal and accounting fees, printing expenses, blue sky fees and
expenses.

                (3) The Company will use its best efforts to qualify or register
the Underwriters' Securities included in a registration statement for offering
and sale under the securities or blue sky laws of such states as reasonably are
requested by the Holders, provided that the Company shall not be obligated to
execute or file any general consent to service of process or to qualify as a
foreign corporation to do business under the laws of any such jurisdiction.

                (4) The Company shall indemnify the Holders of the Underwriters'
Securities to be sold pursuant to any registration statement and each person, if
any, who controls such Holders within the meaning of Section 15 of the Act or
Section 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"),
against all loss, claim, damage, expense or liability (including all expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which any of them may become subject under the Act, the Exchange
Act or

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otherwise, arising from such registration statement, but only to the same extent
and with the same effect as the provisions pursuant to which the Company has
agreed to indemnify the Underwriter contained in Section 8 of the Underwriting
Agreement.

            (5)  The Holders of the Underwriters' Securities to be sold pursuant
to a registration statement, and their successors and assigns, shall indemnify
the Company, its officers and directors and each person, if any, who controls
the Company within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act, against all loss, claim, damage or expense or liability to which
they may become subject under the Act, the Exchange Act or otherwise, arising
from information furnished by or on behalf of such Holders, or their successors
or assigns, for specific inclusion in such registration statement to the same
extent and with the same effect as the provisions contained in Section 8 of the
Underwriting Agreement pursuant to which the Underwriter has agreed to indemnify
the Company.

            (6)  Nothing contained in this Agreement shall be construed as
requiring the Holders to exercise their Underwriters' Warrant prior to the
initial filing of any registration statement or the effectiveness thereof,
provided that such Holders have made arrangements reasonably satisfactory to the
Company to pay the exercise price from the proceeds of such offering.

            (7)  The Company shall furnish to each Underwriter for the offering,
if any, such documents as such Underwriter may reasonably require.

            (8)  The Company shall as soon as practicable after the effective
date of the registration statement, and in any event within 15 months
thereafter, make "generally available to its security holders" (within the
meaning of Rule 158 under the Act) an earnings statement (which need not be
audited) complying with Section 11(a) of the Act and covering a period of at
least 12 consecutive months beginning after the effective date of the
registration statement.

            (9)  The Company shall deliver promptly to each Holder participating
in the offering requesting the correspondence described below and any managing
Underwriter copies of all correspondence between the Commission and the Company,
its counsel or auditors with respect to the registration statement and permit
each Holder and Underwriter to do such investigation, upon reasonable advance
notice, with respect to information contained in or omitted from the
registration statement as it deems reasonably necessary to comply with
applicable securities laws or rules of the National Association of Securities
Dealers, Inc. ("NASD"). Such investigation shall include access to books,
records and properties and opportunities to discuss the business of the Company
with its officers and independent auditors, all to such reasonable extent and at
such reasonable times and as often as any such Holder shall reasonably request.

            (10) The Company shall enter into an underwriting agreement with the
managing underwriter selected for such underwriting by Holders holding a
Majority of the Underwriters' Securities requested to be included in such
underwriting, provided, however that such managing underwriter shall be
reasonably acceptable to the Company, except that in connection with

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an offering for which the Holders have piggyback rights, the Company shall have
the sole right to select the managing underwriter or underwriters. Such
underwriting agreement shall be satisfactory in form and substance to the
Company, a Majority of such Holders (in respect of a registration under Section
7(b) only) and such managing underwriter, and shall contain such
representations, warranties and covenants by the Company and such other terms as
are customarily contained in agreements of that type. The Holders shall be
parties to any underwriting agreement relating to an underwritten sale of their
Underwriters' Securities. Such Holders shall not be required to make any
representations or warranties to or agreements with the Company or the
underwriters except as they may relate to such Holders and their intended
methods of distribution.

         8. Adjustments to Purchase Price and Number of Securities.
            ------------------------------------------------------

            (a) Computation of Adjusted Purchase Price. Except as hereinafter
                --------------------------------------
provided, in case the Company shall at any time after the date hereof issue or
sell any shares of Common Stock (other than the issuances referred to in Section
8(g) hereof), including shares held in the Company's treasury, for a
consideration per share less than the "Market Price" (as defined in Section
8(a)(6) hereof) per share of Common Stock on the date immediately prior to the
issuance or sale of such shares, or without consideration, then forthwith upon
any such issuance or sale, the Purchase Price of the Common Stock shall (until
another such issuance or sale) be reduced to the price (calculated to the
nearest full cent) determined by dividing (1) the product of (a) the Purchase
Price in effect immediately before such issuance or sale and (b) the sum of (i)
the total number of shares of Common Stock outstanding immediately prior to such
issuance or sale, and (ii) the number of shares determined by dividing (A) the
aggregate consideration, if any, received by the Company upon such sale or
issuance, by (B) the Market Price, and by (2) the total number of shares of
Common Stock outstanding immediately after such issuance or sale provided,
however, that in no event shall the Purchase Price be adjusted pursuant to this
computation to an amount in excess of the Purchase Price in effect immediately
prior to such computation, except in the case of a combination of outstanding
shares of Common Stock, as provided by Section 8(c) hereof.

         For the purposes of this Section 8, the term "Purchase Price" shall
mean the Purchase Price of the Common Stock forming a part of the Underwriters'
Securities set forth in Section 6 hereof, as adjusted from time to time pursuant
to the provisions of this Section 8.

         For the purposes of any computation to be made in accordance with this
Section 8(a), the following provisions shall be applicable:

    (1)  In case of the issuance or sale of shares of Common Stock (or of
other securities deemed hereunder to involve the issuance or sale of shares of
Common Stock) for a consideration part or all of which shall be cash, the amount
of the cash consideration therefor shall be deemed to be the amount of cash
received by the Company for such shares (or, if shares of Common Stock are
offered by the Company for subscription, the subscription price, or, if such
securities shall be sold to Underwriters or dealers for public offering without
a subscription offering, the initial public offering price) before deducting
therefrom any compensation paid or discount allowed in the sale,

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underwriting or purchase thereof by Underwriters or dealers or others performing
similar services, or any expenses incurred in connection therewith.

         (2) In case of the issuance or sale (otherwise than as a dividend or
other distribution on any stock of the Company, and otherwise than on the
exercise of options, rights or warrants or the conversion or exchange of
convertible or exchangeable securities) of shares of Common Stock (or of other
securities deemed hereunder to involve the issuance or sale of shares of Common
Stock) for a consideration part or all of which shall be other than cash, the
amount of the consideration therefor other than cash shall be deemed to be the
value of such consideration as determined in good faith by the Board of
Directors of the Company.

         (3) Shares of Common Stock issuable by way of dividend or other
distribution on any stock of the Company shall be deemed to have been issued
immediately after the opening of business on the day following the record date
for the determination of stockholders entitled to receive such dividend or other
distribution and shall be deemed to have been issued without consideration.

         (4) The reclassification of securities of the Company other than shares
of Common Stock into securities including shares of Common Stock shall be deemed
to involve the issuance of such shares of Common Stock for a consideration other
than cash immediately prior to the close of business on the date fixed for the
determination of security holders entitled to receive such shares, and the value
of the consideration allocable to such shares of Common Stock shall be
determined as provided in Section 8(a)(2).

         (5) The number of shares of Common Stock at any one time outstanding
shall include the aggregate number of shares of Common Stock issued or issuable
(subject to readjustment upon the actual issuance thereof) upon the exercise of
options, rights or warrants and upon the conversion or exchange of convertible
or exchangeable securities.

         (6) As used herein in the phrase "Market Price" at any date shall be
deemed to be the last reported sale price, or, in the case no such reported sale
takes place on such day, the average of the last reported sales prices for the
last three (3) trading days, in either case as officially reported by the
principal securities exchange on which the Common Stock is listed or admitted to
trading, or, if the Common Stock is not listed or admitted to trading on any
national securities exchange, the average closing bid price as furnished by the
NASD through the NASD Automated Quotation System ("NASDAQ") or similar
organization if NASDAQ is no longer reporting such information, or if the Common
Stock is not quoted on NASDAQ, as determined in good faith by resolution of the
Board of Directors of the Company, based on the best information available to
it.

                (b) Options, Rights, Warrant and Convertible and Exchangeable
                    ---------------------------------------------------------
Securities. Except in the case of the Company issuing rights to subscribe for
----------
shares of Common Stock distributed to all the stockholders of the Company and
Holders of Underwriters' Warrant pursuant to Section 8(i) hereof, if the Company
shall at any time after the date hereof issue options, rights or warrants to
purchase shares of Common Stock, or issue any securities convertible into or
exchangeable for shares of Common Stock (other than the issuances referred to in
Section 8(g) hereof), (i) for a consideration per share less than the Market
Price (including the issuance thereof

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without consideration such as by way of dividend or other distribution), or (ii)
without consideration, the Purchase Price in effect immediately prior to the
issuance of such options, rights or warrants, or such convertible or
exchangeable securities, as the case may be, shall be reduced to a price
determined by making a computation in accordance with the provisions of Section
8(a) hereof, provided that:

                        (1) The aggregate maximum number of shares of Common
Stock issuable or that may become issuable under such options, rights or
warrants (assuming exercise in full even if not then currently exercisable or
currently exercisable in full) shall be deemed to be issued and outstanding at
the time such options, rights or warrants were issued, and for a consideration
equal to the minimum purchase price per share provided for in such options,
rights or warrants at the time of issuance, plus the consideration (determined
in the same manner as consideration received on the issue or sale of shares in
accordance with the terms of the Underwriters' Warrant), if any, received by the
Company for such options, rights or warrants; provided, however, that upon the
expiration or other termination of such options, rights or warrants, if any
thereof shall not have been exercised, the number of shares of Common Stock
deemed to be issued and outstanding pursuant to this Section 8(b)(1) (and for
the purposes of Section 8(a)(5) hereof) shall be reduced by such number of
shares as to which options, warrants and/or rights shall have expired or
terminated unexercised, and such number of shares shall no longer be deemed to
be issued and outstanding, and the Purchase Price then in effect shall forthwith
be readjusted and thereafter be the price which it would have been had
adjustment been made on the basis of the issuance only of shares actually issued
or issuable upon the exercise of those options, rights or warrants as to which
the exercise rights shall not be expired or terminated unexercised.

                        (2) The aggregate maximum number of shares of Common
Stock issuable upon conversion or exchange of any convertible or exchangeable
securities (assuming conversion or exchange in full even if not then currently
convertible or exchangeable in full) shall be deemed to be issued and
outstanding at the time of issuance of such securities, and for a consideration
equal to the consideration (determined in the same manner as consideration
received on the issue or sale of shares of Common Stock in accordance with the
terms of the Underwriters' Warrant) received by the Company for such securities,
plus the minimum consideration, if any, receivable by the Company upon the
conversion or exchange thereof; provided, however, that upon the expiration or
other termination of the right to convert or exchange such convertible or
exchangeable securities (whether by reason or redemption or otherwise), the
number of shares deemed to be issued and outstanding pursuant to this Section
8(b)(2) (and for the purpose of Section 8(a)(5) hereof) shall be reduced by such
number of shares as to which the conversion or exchange rights shall have
expired or terminated unexercised, and such number of shares shall no longer be
deemed to be issued and outstanding and the Purchase Price then in effect shall
forthwith be readjusted and thereafter be the price which it would have been had
adjustment been made on the basis of the issuance only of the shares actually
issued or issuable upon the conversion or exchange of those convertible or
exchangeable securities as to which the conversion or exchange rights shall not
have expired or terminated unexercised.

                        (3) If any change shall occur in the price per share
provided for in

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any of the options, rights or warrants referred to in Section 8(b)(1), or in the
price per share at which the securities referred to in Section 8(b)(2) are
convertible or exchangeable, and if a change in the Purchase Price has not
occurred by reason of the event giving rise to the change in the price per share
of such other options, rights, warrants, or convertible or exchangeable
securities, such options, rights or warrants or conversion or exchange rights,
as the case may be, to the extent not theretofore exercised, the shall be deemed
to have expired or terminated on the date when such price change became
effective in respect of shares not theretofore issued pursuant to the exercise
or conversion or exchange thereof, and the Company shall be deemed to have
issued upon such date new options, rights or warrants or convertible or
exchangeable securities at the new price in respect of the number of shares
issuable upon the exercise of such options, rights or warrants or the conversion
or exchange of such convertible or exchangeable securities.

            (c) Subdivision and Combination. In case the Company shall at any
                ---------------------------
time issue any shares of Common Stock in connection with a stock dividend in
shares of Common Stock or subdivide or combine the outstanding shares of Common
Stock, the Purchase Price shall forthwith be proportionately decreased in the
case of a stock dividend or a subdivision or increased in the case of
combination.

            (d) Adjustment in Number of Securities. Upon each adjustment of the
                ----------------------------------
Purchase Price pursuant to the provisions of this Section 8, the number of
Underwriters' Securities issuable upon the exercise of the Underwriters' Warrant
shall be adjusted to the nearest whole share by multiplying a number equal to
the Purchase Price in effect immediately prior to such adjustment by the number
of Underwriters' Securities issuable upon exercise of the Underwriters' Warrant
immediately prior to such adjustment and dividing the product so obtained by the
adjusted Purchase Price.

            (e) Definition of Common Stock. For the purpose of this Agreement,
                --------------------------
the term "Common Stock" shall mean the class of stock designated as Common Stock
in the Certificate of Incorporation, of the Company as it may be amended as of
the date hereof.

            (f) Reclassification, Merger or Consolidation. The Company will not
                -----------------------------------------
merge, reorganize or take any other action which would terminate the
Underwriters' Warrant without first making adequate provision for the
Underwriters' Warrant. In case of any reclassification or change of the
outstanding shares of Common Stock issuable upon exercise of the outstanding
warrants (other than a change in par value to no par value, or from nor par
value to par value, or as a result of a subdivision or combination), or in case
of any consolidation of the Company with, or merger of the Company with, or
merger of the Company into, another corporation (other than a consolidation or
merger in which the Company is the continuing corporation and which does not
result in any reclassification or change of the outstanding Common Stock except
a change as a result of a subdivision or combination of such shares or a change
in par value, as aforesaid), or in the case of a sale or conveyance to another
corporation or other entity of the property of the Company as an entirety or
substantially as an entirety, the Holders of each Underwriters' Warrant then
outstanding or to be outstanding shall have the right thereafter (until the
expiration of such Underwriters' Warrant) to purchase, upon exercise of such
Underwriters' Warrant, the kind and number of shares of stock

                                       10

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and other securities and property receivable upon such reclassification, change,
consolidation, merger, sale or conveyance as if the Holders were the owner of
the shares of Common Stock underlying the Underwriters' Warrant immediately
prior to any such events at a price equal to the product of (x) the number of
shares issuable upon exercise of the Underwriters' Warrant and (y) the Purchase
Price in effect immediately prior to the record date for such reclassification,
change, consolidation, merger, sale or conveyance, as if such Holders had
exercised the Underwriters' Warrant. In the event of a consolidation, merger,
sale or conveyance of property, the corporation formed by such consolidation or
merger, or acquiring such property, shall execute and deliver to the Holders a
supplemental Underwriters' warrant agreement to such effect. Such supplemental
Underwriters' warrant agreement shall provide for adjustments which shall be
identical to the adjustment provided for in this Section 8. The provisions of
this Section 8(f) shall similarly apply to successive consolidations or mergers.

            (g) No Adjustment of Purchase Price in Certain Cases. No adjustment
                ------------------------------------------------
of the Purchase Price shall be made:

                (1)  Upon the issuance or sale of (i) the Underwriters'
Warrant or the securities underlying the Underwriters' Warrant, (ii) the
securities sold pursuant to the Public Offering (including those sold upon
exercise of the Underwriters' over-allotment option), or (iii) the shares
issuable pursuant to the options, warrants, rights, stock purchase agreements or
convertible or exchangeable securities outstanding or in effect on the date
hereof as described in the prospectus relating to the Public Offering.

                (2)  If the amount of said adjustments shall aggregate
less than two ($.02) cents for one (1) share of Common Stock; provided, however,
that in such case any adjustment that would otherwise be required then to be
made shall be carried forward and shall be made at the time of and together with
the next subsequent adjustment which, together with any adjustment so carried
forward, shall aggregate at least two ($.02) cents for one (1) share of Common
Stock. In addition, Registered Holders shall not be entitled to cash dividends
paid by the Company prior to the exercise of any warrant or warrants held by
them.

            9.  Exchange and Replacement of Warrant Certificates. Each
Underwriters' Warrant Certificate is exchangeable without expense, upon the
surrender thereof by the registered Holders at the principal executive office of
the Company, for a new Underwriters' Warrant Certificate of like tenor and date
representing in the aggregate the right to purchase the same number of
Underwriters' Securities in such denominations as shall be designated by the
Holders thereof at the time of such surrender.

            10. Loss, Theft etc. of Certificates Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of any Underwriters' Warrant Certificate, and, in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to it, and
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of the Underwriters' Warrant Certificates, if
mutilated, the Company will make and deliver a new Underwriters' Warrant
Certificate of like tenor, in lieu thereof.

                                       11

<PAGE>

            11. Elimination of Fractional Interests. The Company shall not be
                -----------------------------------
required to issue certificates representing fractions of shares of Common Stock
upon the exercise of the Underwriters' Warrant, nor shall it be required to
issue scrip or pay cash in lieu of fractional interests; provided, however, that
if a Holder exercises all Underwriters' Warrant held of record by such Holder
the fractional interests shall be eliminated by rounding any fraction to the
nearest whole number of shares of Common Stock or other securities, properties
or rights.

            12. Reservation and Listing of Securities. The Company shall at all
                -------------------------------------
times reserve and keep available out of its authorized shares of Common Stock,
solely for the purpose of issuance upon the exercise of the Underwriters'
Warrant, such number of shares of Common Stock or other securities and
properties or rights as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of Underwriters' Warrant and payment of
the Purchase Price therefor, all the shares of Common Stock issuable upon such
exercise shall be duly and validly issued, fully paid, non-assessable and not
subject to the preemptive rights of any stockholder. As long as the
Underwriters' Warrant shall be outstanding, the Company shall use its best
efforts to cause the Common Stock to be listed (subject to official notice of
issuance) on all securities exchanges on which the Common Stock issued to the
public in connection herewith may then be listed or quoted.

            13. Notices to Underwriters' Warrant Holders. Nothing contained in
                ----------------------------------------
this Agreement shall be construed as conferring upon the Holders the right to
vote or to consent or to receive notice as a stockholder in respect of any
meetings of stockholders for the election of directors or any other matter, or
as having any rights whatsoever as a stockholder of the Company. If, however, at
any time prior to the expiration of the Underwriters' Warrant and their
exercise, any of the following events shall occur:

                (a) the Company shall take a record of the holders of its shares
of Common Stock for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of current or retained earnings, as indicated by the
accounting treatment of such dividend or distribution on the books of the
Company; or

                (b) the Company shall offer to all the holders of its Common
Stock any additional shares of capital stock of the Company or securities
convertible into or exchangeable for shares of capital stock of the Company, or
any option, right or warrant to subscribe therefor; or

                (c) a dissolution, liquidation or winding up of the Company
(other than in connection with a consolidation or merger) or a sale of all or
substantially all of its property, assets and business as an entirety shall be
proposed; then, in any one or more of said events, the Company shall give
written notice of such event at least fifteen (15) calendar days prior to the
date fixed as a record date or the date of closing the transfer books for the
determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to
vote on such proposed dissolution, liquidation, winding up or sale. Such notice
shall

                                       12

<PAGE>

specify such record date or the date of closing the transfer books, as the case
may be. Failure to give such notice or any defect therein shall not affect the
validity of any action taken in connection with the declaration or payment of
any such dividend, or the issuance of any convertible or exchangeable
securities, or subscription rights, options or warrants, or any proposed
dissolution, liquidation, winding up or sale.

            14. Notices. All notices, requests, consents and other
                -------
communications hereunder shall be in writing and shall be deemed to have been
duly made when delivered, or five days after being mailed by registered or
certified mail, return receipt requested:

If to the registered Holders of the Underwriters' Warrant, to the address of
such Holders as shown on the books of the Company; or

                (a) If to the Company to 6925 112/th/ Circle North Suite 102,
Largo, Florida 33773 or to such other address as the Company may designate by
notice to the Holders.

            15. Supplements and Amendments. The Company and the Underwriter may
                --------------------------
from time to time supplement or amend this Agreement without the approval of any
Holders of Underwriters' Warrant Certificates (other than the Underwriters) in
order to cure any ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any provisions herein, or to
make any other provision in regard to matters or questions arising hereunder
which the Company and the Underwriters may deem necessary or desirable and which
the Company and the Underwriters deem shall not adversely affect the interests
of the Holders of Underwriters' Warrant Certificates.

            16. Successors. All the covenants and provisions of this Agreement
                ----------
shall be binding upon and inure to the benefit of the Company, the Underwriter,
the Holders and their respective successors and assigns hereunder.

            17. Termination. This Agreement shall terminate at the close of
                -----------
business on _______, 2007. Notwithstanding the foregoing, the indemnification
provisions of Section 7 shall survive such termination until the close of
business on the expiration of any applicable statue of limitations.

            18. Governing Law; Submission to Jurisdiction. This Agreement and
                -----------------------------------------
each Underwriters' Warrant Certificate issued hereunder shall be deemed to be a
contract made under the laws of the State of New York and for all purposes shall
be construed in accordance with the laws of said state without giving effect to
the rules of said state governing the conflicts of laws.

            19. Entire Agreement; Modification. This Agreement (including the
                -------------------------------
Underwriting Agreement, to the extent portions thereof are referred to herein)
contains the entire understanding between the parties hereto with respect to the
subject matter hereof and thereof. This Agreement may not be modified or amended
except by a writing duly signed by the Company and the Holders of a Majority in
Interest of the Underwriters' Securities (for this purpose, treating all then
outstanding Underwriters' Warrants as if they had been exercised).

                                       13

<PAGE>
            20. Severability. If any provision of this Agreement shall be held
                ------------
to be invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision of this Agreement.

            21. Captions. The caption headings of the Sections of this Agreement
                --------
are for convenience of reference only and are not intended, nor should they be
construed as, a part of this Agreement and shall be given no substantive effect.

            22. Benefits of this Agreement. Nothing in this Agreement shall be
                --------------------------
construed to give to any person or corporation other than the Company and the
Underwriter and any other registered Holders of the Underwriters' Warrant
Certificates or Underwriters' Securities any legal or equitable right, remedy or
claim under this Agreement; and this Agreement shall be for the sole and
exclusive benefit of the Company and the Underwriter and any other Holders of
the Underwriters' Warrant Certificates or Underwriters' Securities.

            23. Counterparts. This Agreement may be executed in any number of
                ------------
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and such counterparts shall together constitute but one and the
same instrument.

            24. Binding Effect. This Agreement shall be binding upon and inure
                --------------
to the benefit of the Company, the Underwriters and their respective successors
and assigns and the Holders from time to time of the Underwriters' Warrant
Certificates or any of them.

                          [Signature on following page]

                                       14

<PAGE>

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

                                          VERTICAL HEALTH SOLUTIONS, INC.

                                          By:________________________________
                                          Name: Stephen Watters

                                          KASHNER DAVIDSON SECURITIES CORP.,

                                          By:________________________________
                                          Name: Matthew Miester
                                          Title: CEO

                                       15

<PAGE>

                                   Schedule A

                                       to

                         Underwriters' Warrant Agreement

                                     Between

                         VERTICAL HEALTH SOLUTIONS, INC.

                     KASHNER DAVIDSON SECURITIES CORPORATION

Underwriter

Kashner Davidson Securities Corp.

                                       16

<PAGE>

                         VERTICAL HEALTH SOLUTIONS, INC.
                         -------------------------------

                               WARRANT CERTIFICATE

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE "ACT"), AND MAY NOT BE OFFERED FOR SALE OR SOLD
EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR
(ii) AN OPINION OF COUNSEL, IF SUCH OPINION AND COUNSEL SHALL BE REASONABLY
SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER
THE ACT IS AVAILABLE.

THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS
RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

                EXERCISABLE COMMENCING ___________, 2003 THROUGH
                  5:00 P.M., NEW YORK TIME ON __________, 2007

                                             Warrant covering 135,000 shares of
                                             Common Stock

No. UW-1

         This Warrant Certificate certifies that Kashner Davidson Securities
Corp. or registered assigns, is the registered holder of this Warrant to
purchase initially, at any time from _________, 2003, until 5:00 p.m., New York
time on ________, 2007 (the "Expiration Date"), up to 135,000 shares of Common
Stock, $.001 par value (the "Common Stock") of Vertical Health Solutions, Inc.
("Company") exercisable to purchase one share of Common Stock at a purchase
price of $9.90 per share (165% of the per share public offering price) (the
"Purchase Price"), upon the surrender of this Warrant Certificate and payment of
the applicable Purchase Price at an office or agency of the Company, but subject
to the conditions set forth herein and in the Underwriters' Warrant Agreement,
dated as of ________, 2002, by and between the Company and Kashner Davidson
Securities Corp. (the "Warrant Agreement"). Payment of the Purchase Price shall
be made by certified or cashier's check or money order payable to the order of
the Company or through a cashless exercise by surrending the Warrant Certificate
pursuant to the Underwriter Agreement.

         No Warrant may be exercised after 5:00 p.m., New York time, on the
Expiration Date, at which time all Warrant evidenced hereby, unless exercised
prior thereto, shall thereafter be void.

         The Warrant evidenced by this Warrant Certificate is part of a duly
authorized issue of Warrants issued pursuant to the Warrant Agreement between
the Company and the Underwriter, which Warrant Agreement is hereby incorporated
by reference in and made a part of this instrument

                                       17

<PAGE>

and is hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Company and the holders
(the words "holders" or "holder" meaning the registered holders or registered
holder) of the Warrant.

         The Warrant Agreement provides that upon the occurrence of certain
events the Purchase Price and the type and/or number of the Company's securities
issuable upon the exercise of this Warrant, may, subject to certain conditions,
be adjusted. In such event, the Company will, at the request of the holder,
issue a new Warrant Certificate evidencing the adjustment in the Purchase Price
and the number and/or type of securities issuable upon the exercise of the
Warrant; provided, however, that the failure of the Company to issue such new
Warrant Certificates shall not in any way change, alter, or otherwise impair,
the rights of the holder as set forth in the Warrant Agreement.

         Upon due presentment for registration of transfer of this Warrant
Certificate at an office or agency of the Company, a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrant shall be issued to the transferee(s) in exchange as provided herein,
without any charge except for any tax or other governmental charge imposed in
connection with such transfer.

         Upon the exercise of less than all of the Warrants evidenced by this
Certificate, the Company shall forthwith issue to the holder hereof a new
Warrant Certificate representing such number of unexercised Warrants.

         The Company may deem and treat the registered holder(s) hereof as the
absolute owner(s) of this Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, and of any distribution to the holder(s) hereof, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.

         All terms used in this Warrant Certificate which are defined in the
Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.

         IN WITNESS WHEREOF, the undersigned has executed this certificate this
___ day of _____, 2002.

                                        Vertical Health Solutions, Inc.

                                        By:_____________________________________
                                             Stephen Watters
                                             CEO

ATTEST:

By:______________________________

                                       18

<PAGE>

                               FORM OF ASSIGNMENT

            (To be executed by the registered holder if such holder
                 desires to transfer the Warrant Certificate.)

         FOR VALUE RECEIVED___________________________ hereby sells, assigns and
transfers unto _____________________

                  (Please print name and address of transferee)

this Warrant Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint _____________________
Attorney, to transfer the within Warrant Certificate on the books of Vertical
Health Solutions, Inc. with full power of substitution.

Dated:

                                     Signature_____________________

                                     (Signature must conform in all respects to
the name of holder as specified on the face of the Warrant Certificate.)

[Signature guarantee]                    __________________________________
                                           (Insert Social Security or Other
                                             Identifying Number of Holders)

                                       19

<PAGE>

                          FORM OF ELECTION TO PURCHASE

The undersigned hereby irrevocably elects to exercise the right, represented by
this Warrant Certificate, to purchase ______ shares of Common Stock and herewith
tenders in payment for such securities a certified or cashier's check or money
order payable to the order of Vertical Health Solutions, Inc. in the amount of
$______, all in accordance with the terms hereof. The undersigned requests that
certificates for such securities be registered in the name of
___________________________ whose address is _____________________ and that such
certificates be delivered to _____________________________________ whose address
is __________________________________________________________.

Dated:

Signature_______________________

(Signature must conform in all respects to the name of holder as specified on
the face of the Warrant Certificate.)

(Insert Social Security or Other
Identifying Number of Holders)

[Signature guarantee]

                                       20<PAGE>

                                                                    EXHIBIT 10.1

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

                                                                  EXECUTION COPY

                       License and E-Commerce Agreement

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

                                   Recitals

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

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

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

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

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

                                       1
<PAGE>

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

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

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

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

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

Section 1.  Definitions

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

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

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

                                       2
<PAGE>

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

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

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

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

1.7  "Databases" means all data structures, data schema, database dictionaries,
attributes, validation tests for each element, table sizes and formats, access
requirements, data dependencies and other elements involving the management or
storage of data on or for the TSA.com Site, and all refinements, updates,
releases, improvements and enhancements thereto, all Intellectual Property
Rights embedded therein (except those owned by Licensor) and all software
applications created specifically for management and use of the GSI Furnished
Materials,

                                       3
<PAGE>

Customer Information, Financial Information and Licensed Property, but excluding
the Customer Information, Financial Information and Licensed Property per se.

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

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

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

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

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

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

1.14 "GSI Technology" means all HTML, Java and other language files (and/or all
derivatives thereof), graphics files, animation files, data files, Databases,
technology, method, user interface, process, software, functionality, features,
scripts and programs, both in object and source code form, and all documentation
and all other information and materials relating thereto, together with all
Intellectual Property Rights associated therewith, used by or on behalf of
Licensee in the

                                       4
<PAGE>

design, development, hosting, maintenance and operation of the TSA.com Site or
otherwise made available to Licensor hereunder. "GSI Technology" includes any
adaptation, modification, improvement and/or derivative work of any GSI
Technology that is developed by any Party or jointly by the Parties. "GSI
Technology" shall not include any Licensed Property or any derivative work of
any Licensed Property, whether developed by any Party or jointly by the Parties.

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

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

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

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

1.19  "Licensed Property" means the Marks, Names, TSA Content and the Look and
Feel, together will all Intellectual Property Rights associated therewith, which
Licensor has licensed to Licensee hereunder. "Licensed Property" includes any
adaptation, modification, improvement and/or derivative work of any Licensed
Property that is developed by any Party or jointly by the

                                       5
<PAGE>

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

1.20  "License Guidelines" means the clearance, form, format and use
restrictions and instructions set forth in Exhibit A attached hereto.
                                           ---------

1.21  "Look and Feel" means, either with respect to the TSA.com Site or the TSA
Stores, as the case may be, the appearance, coloring, graphics, fonts, and other
look and feel characteristics of the TSA.com Site or TSA Stores, as the case may
be, which are unique to the TSA.com Site or TSA Stores, as the case may be, and
are generally consistent across all media and applications, and which suggest a
common identity for the TSA.com Site or the TSA Stores, as the case may be.

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

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

1.24  "Names" means those Internet domain names registered in the name of either
TSAMI or TSA, or both, together with any additions as may be provided to
Licensee from time to time in writing by Licensor, or any deletions as mutually
agreed upon by the Parties, all as set forth in Exhibit C, attached hereto.
                                                ---------

1.25  "Net Revenue(s)" means the total sales revenues received for Sporting
Goods and Services sold or furnished by or through the TSA.com Site (including
Orders placed through the customer service telephone number applicable to the
TSA.com Site), and any proxy sites or sublicensed sites of the TSA.com Site
operated by any Advertising and Marketing Partners of Licensee, whether for cash
or credit, except that the following shall be excluded in calculating Net
Revenues: (i) sales of Sporting Goods or Services subsequently returned for
refund or credit;

                                       6
<PAGE>

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

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

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

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

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

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

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

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

                                       7
<PAGE>

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

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

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

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

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

1.38  "TSA Content" means: (a)  all Non-Shopping Features, text, graphics,
photographs, video, audio and/or other data or information (excluding Customer
Information) owned or controlled by Licensor and furnished by Licensor to
Licensee and intended solely for use in connection with the TSA.com Site; (b)
Licensor selected print advertisements for the TSA Stores or the goods and
services offered by Licensor in the TSA Stores, including run of press and
insert advertisements which appear in newspapers and magazines, as well as
printed in store signage, point of sale and display signage and information
promoting events and the goods and services offered in the TSA Stores; and (c)
such information concerning the goods and services offered by Licensor in the
TSA Stores in the U.S. as Licensor  owns or controls, and which Licensor
furnishes to Licensee for use in connection with the TSA.com Site, including
information which is related to the sourcing, manufacturing, development,
design, fabrication, construction, test procedures, performance features,
quality control standards, merchandise specifications, reliability standards,
distribution, costs, allowances, pricing, rebates, sizes, colors, decoration,

                                       8
<PAGE>

display, margins, vendor economic information, and similar information and know-
how necessary to the procurement, merchandising, inventory management and sales
of such goods and services in the TSA Stores.

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

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

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

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

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

Section 2.  Licenses.

2.1   Grant of License by Licensor.

      (a)  Grant. Subject to the terms and conditions set forth in this
Agreement, Licensor hereby grants to Licensee, for the Term and within the
Territory only, a non-transferable, exclusive (as to third parties but not as to
Licensor and its Affiliates other than as provided herein) right and license to
use the Licensed Property on and in connection with the Services and Materials
furnished at or in connection with the TSA.com Site if, and only if, such
Services and Materials comply with the quality standards set forth herein, and
such other mutually agreed upon standards. Licensor may monitor and control, in
accordance with the terms of this Agreement, the nature and quality of the
Services and Materials as set forth herein to determine whether such Services
and Materials are in compliance with such quality standards, and Licensor may
appoint one or more representatives to so monitor and to exercise such control
on Licensor's behalf. Such monitoring shall in no way lessen or limit Licensee's
obligation to use the Marks, Names and TSA Content only as set forth herein. No
other, further or different license is granted or implied and no assignment of
any right or interest is made or intended herein. In particular, except as set
forth in Section 2.3, no license is granted to sublicense or otherwise permit
any third party to use the Licensed Property. Licensee is prohibited from using
the Marks, or any name or mark incorporating the word AUTHORITY or otherwise
confusingly similar to the Marks,

                                       9
<PAGE>

including any abbreviations of the Marks, as part of Licensee's registered
corporate or business name in any jurisdiction in the world, or as part of any
Internet domain name or subdomain name not otherwise registered in Licensor's
name. Except as licensed hereunder, Licensee shall not use or apply to register
the Licensed Property or any identical or deceptively or confusingly similar
trademarks, service marks, corporate names, domain names, trade names, trade
dress, copyrights, industrial models or designs, or any derivations thereof,
during the Term and thereafter.

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

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

2.2  Marking, Samples, Inspection, Quality Control

     (a) Marking Materials; Ownership.  Licensee shall comply with the
License Guidelines set forth in Exhibit A.  Licensor reserves the right to
                                ---------
change the provisions of Exhibit A in order to protect and enhance the Licensed
                         ---------
Property, or Licensor's interests in the Licensed Property, provided that such
changes: (a) may be imposed without Licensee's consent if such changes are
necessary to preserve consistency with Licensor's own use of the Licensed
Property;

                                       10
<PAGE>

or (b) subject to the consent of Licensee, which shall not be unreasonably
withheld, in any other case. Licensee shall have a reasonable period, but no
more than ninety (90) days, to fully implement such changes.

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

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

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

          (e) Delegation.  Without limiting or waiving Licensor's rights in any
manner, Licensor delegates in part to Licensee the continuing duty to exercise
quality control regarding

                                       11
<PAGE>

the nature and quality of the Services, Materials and Sporting Goods and the
nature and quality of Licensee's (and the Advertising and Marketing Partners of
Licensee's) uses of the Licensed Property. Licensee shall use commercially
reasonable efforts to fulfill such delegated duties. Licensor may recommend and
Licensee shall use commercially reasonable efforts to adopt and comply with any
reasonable procedures, tests, surveys or the like to fulfill this delegation.
Licensor may reasonably request reports, documentation, evidence or other proof
of Licensee's performance under this provision and Licensee shall promptly
furnish the same to Licensor.

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

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

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

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

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

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

     (f) The Parties shall work together in good faith to develop efficient
methods of tracking, reporting, documenting and auditing all such sublicenses
and sublicensees.  Upon the reasonable request of Licensor, Licensee shall
furnish full and accurate copies of all agreements containing sublicenses to the
extent such agreements concern the TSA.com Site and/or Licensor, and furnish
samples of any uses of the Core Marks by any Advertising and Marketing Partner
of Licensee.   Licensee's duty to furnish such agreements shall be subject to
any confidentiality provisions contained therein, provided that Licensee shall
use commercially reasonable efforts to (i) avoid such provisions as they relate
to Licensor when negotiating any such agreements, and,

                                       12
<PAGE>

(ii) after the fact, to secure a suitable waiver if necessary from any such
sublicensee to disclose all or as much of the subject agreement to Licensor as
required hereunder; and

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

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

2.5  License Exclusions. Licensee agrees and acknowledges that:

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

                                       13
<PAGE>

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

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

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

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

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

                                       14
<PAGE>

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

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

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

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

2.6  Protection of Licensed Property.

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

                                       15
<PAGE>

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

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

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

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

                                       16
<PAGE>

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

3.2  Web Site Enhancements and Updates.

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

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

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

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

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

                                       17
<PAGE>

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

3.4 Non-Shopping Features.

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

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

Section 4.  Merchandising the TSA.com Site.

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

                                       18
<PAGE>

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

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

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

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

                                       19
<PAGE>

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

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

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

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

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

                                       20
<PAGE>

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

Section 5. Order Processing; Fulfillment and Customer Service.

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

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

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

                                       21
<PAGE>

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

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

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

Section 6. Promotion and Advertising

6.1  Licensor's Activities and Obligations

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

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

                                       22
<PAGE>

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

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

6.4  Advertising and Marketing.

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

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

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

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

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

7.   Ownership.

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

                                       23
<PAGE>

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

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

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

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<PAGE>

Section 8.  Account Managers

     8.1 Account Managers.

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

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

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

Section 10. Group and Team Sales.

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

Section 11. Compensation and Expenses

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

11.2 Royalty Payments, Reports.

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<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       26
<PAGE>

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

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

11.3 Records and Audit.

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

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

                                       27
<PAGE>

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

Section 12.  Customer Information and Privacy Policy

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

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

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<PAGE>

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

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

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

Section 13.  Representations and Indemnification

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

13.2 Indemnity.

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

                                       29
<PAGE>

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

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

                                       30
<PAGE>

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

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

Section 14.  Reporting

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

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

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

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

Section 15.  Disclaimers and Limitations

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

                                       31
<PAGE>

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

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

Section 16.    Exclusivity.

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

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

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

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<PAGE>

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

16.4 Territory Regarding Internet.

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

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

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

                                       33
<PAGE>

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

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

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

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

Section 17.    Term and Termination

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

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

                                       34
<PAGE>

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

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

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

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

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

                                       35
<PAGE>

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

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

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

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

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

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

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

17.9 Effect of Bankruptcy or Failure to Perform.

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

                                       36
<PAGE>

     [*]

Section 18.    [*]

Section 19.    Miscellaneous

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

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

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

                                       37
<PAGE>

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

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

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

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

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

                                       38
<PAGE>

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

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

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

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

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

                                       39
<PAGE>

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

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

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

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

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

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

                                       40
<PAGE>

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

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

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

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

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

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

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

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

                                       41
<PAGE>

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

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

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

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

The Sports Authority Michigan, Inc.

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

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

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

Global Sports, Inc.

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

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

                                       42
<PAGE>

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

A.   General
     -------

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

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

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

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

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

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

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

D.   Use.
     ---

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

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

                                       1
<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

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

                                      or

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

                                      or

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

                                      or

                                     "(R)"

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

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

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

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

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

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

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

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

                                       3
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       1
<PAGE>

                             Exhibit B - The Marks

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

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

                             Exhibit B - The Marks

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       3
<PAGE>

                             Exhibit B - The Marks

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

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

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

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

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

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

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

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

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

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

                                       4
<PAGE>

                             Exhibit B - The Marks

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

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

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

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

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

                                       5
<PAGE>

                             Exhibit C - The Names

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

<PAGE>

                                   EXHIBIT D
                                   ---------

                             Non-Shopping Features

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

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

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

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

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

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

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

                                   EXHIBIT E

                                   Royalties

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

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

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

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

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

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

     [*]

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

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

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

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

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

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

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

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

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

                                       1
<PAGE>

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

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

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

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

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

                                       2
<PAGE>

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

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

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

(1)  [*]

(2)  [*]

(3)  [*]; and

(4)  [*]

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

(1)  [*]

(2)  [*]

(3)  [*] and

(4)  [*]

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

(1)  [*]

(2)  [*] or

(3)  [*]

[*]

                                       1
<PAGE>

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

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

                                       1
<PAGE>

                                   EXHIBIT H
                                      [*]
                                      ---

[*]

                                       1
<PAGE>

                                   EXHIBIT I

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

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

                                       1
<PAGE>

                                   Exhibit J

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

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

I.   Print and Email Integration

1.   The 800 number of the TSA.com Site  shall be promoted in all Licensor
     circulars in conjunction with the URL integration, unless Licensee requests
     otherwise.  The Parties agree that the 800 number of direct mail catalogs
     distributed by or on behalf of Licensor (each a "Catalog") may be promoted
     in all Licensor circulars in addition to the 800 number for the TSA.com
     Site; so long as (i) the promotion of the Catalog 800# would not cause
     confusion for a reasonable customer viewing such circular, and (ii) the
     promotion of the Catalog 800# is not done in conjunction with the URL
     integration required hereunder.
2.   Subject to acceptance of the TSA credit card by Licensee at the TSA.com
     Site: (a) at Licensee's expense and at Licensee's option, Licensor shall
     provide exclusive (except as to Licensor) credit card inserts promoting the
     TSA.com Site no less than one time each calendar quarter; and (b) each TSA
     credit card invoice and any other inserts where the subject merchandise or
     service is available at the TSA.com Site shall prominently include the shop
     online message.  Nothing herein shall require Licensor to make the TSA
     credit card available for purchases on the TSA.com Site.
3.   In all circulars containing products available both on the TSA.com Site and
     in TSA Stores, Licensor shall place an "Online Item" icon and product
     identification number adjacent to each applicable product, which shall be
     no less proportionate in size to the applicable products as compared to the
     size of the icons and product numbers relative to the products as depicted
     in Example J1, attached.
        ----------
4.   With the exception of clearance ads, and single market run of press ("ROP")
     ads that Licensor runs in non-major (as Licensor reasonably determines)
     markets, all circulars and ROP ads shall

                                       2
<PAGE>

     include the shop online message. The shop online message in circulars shall
     appear: (a) in a 1-inch high band that runs across the entire length of the
     front cover of the circular; (b) a 1/2-inch band that runs across the
     entire length of the back cover of the circular, unless such circular
     provides additional placements for the promotion of the TSA.com Site; and
     (c) a 1/2-inch high band in certain footers within the circular. See
     Example J2. Blank figures are specified on Exhibit J1, attached. Clearance
     ----------                                 ----------
     ads shall include the shop online message to the extent that Licensee is
     able to, and does, (i) accommodate general department discounts that vary
     by department, (ii) show high-low pricing with the proper sale terminology,
     (iii) react with a turnaround time quick enough that it does not delay
     Licensor's schedule, and (iv) handle "buy this, get that" situations.
     Single-market ROP ads shall include the shop online message at Licensee's
     option, upon notification to Licensor within 24 hours of Licensor's notice
     of such ad to Licensee. See Example J3.
                                 ----------
5.   The shop online message in ROP ads shall be proportionate in size to the
     shop online message in the circulars and, unless Licensee elects otherwise,
     shall include the 800 number for the TSA.com Site, as depicted in Example
                                                                       -------
     J3.
     --
6.   All circulars shall include, in addition to the shop online message and
     "Online Item" icons, at least one 2x7-inch inside editorial placement (or
     equivalent, based upon page size and layout, location to be determined by
     Licensor) for the promotion of the TSA.com Site.   Subject to Licensor's
     approval under Exhibit F, this placement may promote Advertising and
                    ---------
     Marketing Partners of Licensee who are contemporaneously promoting the
     TSA.com Site.  If the placement occurs on the back cover then the  1/2-inch
     band discussed above shall not be included on the back cover.  See Example
                                                                        -------
     J1.
     --
7.   Subject to the "Note" which follows and Exhibit J1, each direct mail post
                                             ----------
     card or booklet distributed by Licensor shall include: (a) a  3/4-inch high
     shop online message band that runs across the entire length of the front
     page; (b) a 1x 3-inch space on the back page of a booklet which includes a
     corresponding coupon/promotion;  (c)  1/4-inch inside footers as specified
     in Exhibit J1; and (d) "Online Item" icons in the same manner as the
        ----------
     circulars.  In the event the size of Licensor's direct mail post cards or
     booklets change from that depicted in the attached examples, Licensor shall
     promote the TSA.com Site in a proportionate manner as provided for herein.
     Note:  Licensee's advertising herein may be omitted if Licensee is not
     participating in the subject direct

                                       3
<PAGE>

     mail campaign, post card or booklet, provided Licensee receives prior
     notice and agrees to the exclusion.
8.   Licensor's interactive online and email advertisements shall each provide
     for direct links to the applicable portion(s) of the TSA.com Site.  For
     example, Licensor's logo or name shall provide a hot link directly to the
     TSA.com Site homepage, product images shall provide a hot link directly to
     corresponding products on the TSA.com Site, and product category titles
     shall provide a hot link directly to the corresponding product category on
     the TSA.com Site.  Such interactive advertising shall not include a link to
     any other web site that is an e-commerce business selling Sporting Goods,
     but with notice to Licensee, may include links to any web site that is not
     an e-commerce business selling Sporting Goods.
9.   No more than once each quarter, upon Licensee's request and at its expense,
     Licensor shall use commercially reasonable efforts for a period of at least
     four weeks to collect and deliver to Licensee email addresses from
     customers of the TSA Stores.  Licensor shall standardize the quarterly
     email collection requirement within the TSA Stores and provide incentives
     to Licensor's employees for acquiring email addresses (incentives at
     Licensee's expense and subject to Licensee's prior written approval).

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

1.   Specific signs shall be located within each TSA Store for the promotion of
     the TSA.com Site, and/or for the approved promotion of the Advertising and
     Marketing Partners of Licensee, including no less than: (a) a single 4x20-
     foot permanent banner in each TSA Store (at Licensee's expense); (b) two
     event signs (per Licensor's campaigns) in each TSA Store (at Licensor's
     expense); (c) four 22x28-inch signs positioned throughout each TSA Store
     (at Licensor's expense); and (d) two window decals as depicted in Example
                                                                       -------
     J4 (at Licensor's expense).  Licensee shall develop the creative content of
     --
     item (a).  Licensor shall develop the creative content of items (b), (c)
     and (d).  All creative content shall be subject to the mutual approval of
     the Parties.
2.   Employee uniforms in the TSA Stores shall include the URL (at Licensor's
     expense).
3.   Shopping bags in the TSA Stores shall include the URL (at Licensor's
     expense).  The size of the URL on such shopping bags shall be no less
     proportionate in size relative to the size of the TSA logo as is currently
     provided in Example J4 item 8. The URL for the shopping bags may include
     either, at Licensee's option (i) "shop on-

                                       4
<PAGE>

     line at www.thesportsauthority.com" or (ii) "www.thesportsauthority.com".
4.   At Licensee's request and expense, with creative content developed by
     Licensee but subject to Licensor's approval, Licensor shall use
     commercially reasonable efforts to stuff shopping bag inserts at checkouts
     in the TSA Stores.
5.   When Licensor's in-store audio broadcast message system is in use within a
     given TSA Store, Licensor, shall, at its expense, prepare and insert two 15
     second messages promoting the TSA.com Site per program rotation (creative
     messages shall be subject to mutual approval).

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

1.   Licensor's billboards and sports sponsorship signs shall integrate the URL
     and/or the shop online message, unless inappropriate under the
     circumstances.  Directional billboards may exclude the online reference, at
     Licensor's option.
2.   Each of Licensor's out of store 60 second radio advertisements shall
     include a five (5) second tag at the end containing the shop online
     message, except that Licensor may exclude store-specific promotion events,
     such as grand opening and promotional appearances.
3.   Each of Licensor's out of store 30 second television advertisements shall
     include a three (3) second (or a five (5) second message within each 60
     second ad) visual message at the end containing the shop online message.

IV.  Vendors
     -------

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

V.   Group and Team Sales

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

VI.  Licensee
     --------

                                       5
<PAGE>

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

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

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

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

                                       6
<PAGE>

Exhibit J1

Circulars: Integration Space Requirements

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

8           YES                  YES               YES                   2

12          YES                  YES               YES                   4

16          YES                  YES               YES                   6

24          YES                  YES               YES                   10
</TABLE>

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

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

          Postcard           NO             YES *         NO

          12 Page Booklet    YES            YES           3

          24 Page Booklet    YES            YES           5

          * If Licensee is participating
<PAGE>

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

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

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

1.  Window Decals

[LOGO]

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

[LOGO]

3. Store Hours Signs (Shop online anytime tagline)

[LOGO]

4.  Interior Banner (4' x 20')

[LOGO]
<PAGE>

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

[LOGO]

6.  Theme/Seasonal Toppers, Shelf Talkers and Banners
Topper (#4, #5)          Shelf Talker            In-Store Banner with tagline

[LOGO]

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

[LOGO]

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

[LOGO]
<PAGE>

                                  EXHIBIT "K"

                      Site Security and URL Registration

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

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

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

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

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

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

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

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

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

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

Your mail server      points to              our mail server

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

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

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

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

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