Document:

EXHIBIT 10.5
                                                                    ------------

GWIN,  Inc.
Financing  Term  Sheet
Presented  by  BBA  on  August  20,  2002

Terms:

Proposed  Financing  Amount:
$700,000  Convertible  Debenture
$250,000  Standby  loan  facility

Convertible  Debenture:

-     The  original BBA convertible debenture will be extended to $1,200,000 (an
additional  advance  of  $700,000  to  GWIN).  The  maturity will not be altered
(August  31,  2004).  Interest will run from the date of advance at the original
rate  of  5%.  The conversion terms will be altered to $0.35 - 35 cents i.e. The
debenture  will  convert  into  3,428,571  shares.  (Subject  to  the  following
potential  adjustments.)

A.  Ratchet  protection  -  Any financing or consulting agreement below 35 cents
will  trigger  a  ratchet  down  in  both  warrants  and  debenture.

B.  A  Laurus  protection  clause  -  should  Laurus  be  able  to ratchet their
investment  from  80  cents to the level of the BBA's investment, then the terms
will  adjust  by  2  cents  -  i.e.  Warrants and debenture will be at 33 cents.

C.  A  net sales or income protection clause. The price of the debenture will be
adjusted  in  the event that net revenue (i.e. after chargebacks and credits but
before  handicapping  and  sales fees) falls below $9,000,000 for the period 1st
August,  2002 until 31st July, 2003 and operating income falls below $1,000,000.
The  calculation of this adjustment is as follows.  In the event that net income
falls  to  $7,000,000  or  less,  and operating income falls to $0 or below, the
debenture price will be $.175 - seventeen and one-half cents.  In the event that
net sales and operating income fall between the high and the low, the adjustment
will  be  calculated  prorata, based upon the higher of net revenue or operating
profit.  i.e.  If  net revenues are $7,000,000 and operating income is $500,000,
then  the  debenture  price  will  be  $.2625 (twenty-six and one fourth cents).

-     The  BBA  will give up its original 1,000,000 warrants and GWIN will issue
3,000,000,  3  year,  35  cent  strike  warrants  to  the  BBA.

Standby  Loan  Facility

-     The  BBA  will  make  available an extra $250,000 standby loan facility to
GWIN at an interest rate of 16% (the effective interest rate for the Laurus loan
i.e.  13% X 750/609). Any loan drawn down will be repayable by 31st March, 2003.

Other  Terms

-     Holders  of at least 1,120,000 of Series C Preferred ($540,000 originally)
agree  to  forgo  their  anti  dilution  protection.

-     An  option  pool  of  3,000,000  shares  at  50  cent strike is to be made
available  by  the Board to the future management of the company. The allocation
of  this  pool is to be 1,500,000 management at Wayne's discretion and 1,500,000
to  Simon  Hayes/Ross  Reason  at  their  discretion.

-     The Board of GWIN must approve in principle the appointment of Simon Hayes
to  the  Board  and as a senior executive officer of the company (position to be
determined  at  a later date, but no later than 90 days from the first draw down
of  the  new  tranche of the convertible debenture). Until Simon is appointed to
the Board or assumes a full time position, the BBA will be entitled to $15,000 a
month  for  the  services  of  their  executive  directors.

-     The  proposal  is  also  subject  to  the  following terms and conditions:

1.  Wayne  having  signed  and  agreed  his  new  contract.

2.     fee  of  $100,000  will  be payable on 31st March, 2003. This is to cover
BBA's  travel,  administrative  and  legal  expenses.EXHIBIT 10.22
                                                                   -------------

                       GLOBAL SPORTS & ENTERTAINMENT, INC.

                          SECURITIES PURCHASE AGREEMENT

                                  JUNE 29, 2002

<PAGE>
                                TABLE OF CONTENTS
                                                                     Page
                                                                     ----

1.     AGREEMENT  TO  SELL  AND  PURCHASE                              1
2.     FEES  AND  WARRANT                                              1
3.     CLOSING,  DELIVERY  AND  PAYMENT                                2
3.1     Closing                                                        2
3.2     Delivery                                                       2
4.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY              2
4.1     Organization,  Good  Standing  and  Qualification              3
4.2     Subsidiaries                                                   3
4.3     Capitalization;  Voting  Rights                                3
4.4     Authorization;  Binding  Obligations                           4
4.5     Liabilities                                                    4
4.6     Agreements;  Action                                            4
4.7     Obligations  to  Related  Parties                              5
4.8     Changes                                                        5
4.9     Title  to  Properties  and  Assets;  Liens,  Etc.              7
4.10     Intellectual  Property                                        7
4.11     Compliance  with  Other  Instruments                          7
4.12     Litigation                                                    8
4.13     Tax  Returns  and  Payments                                   8
4.14     Employees                                                     8
4.15     Registration  Rights  and  Voting  Rights                     9
4.16     Compliance  with  Laws;  Permits                              9
4.17     Valid  Offering                                               9
4.18     Insurance                                                     9
4.19     SEC  Reports                                                  9
4.20     Listing                                                      10
4.21     No  Integrated  Offering                                     10
4.22     Stop  Transfer                                               10
5.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  PURCHASERS          10
5.1     Requisite  Power  and  Authority                              10
5.2     Investment  Representations                                   11
5.3     Purchaser  Bears  Economic  Risk                              11
5.4     Acquisition  for  Own  Account                                11
5.5     Purchaser  Can  Protect  Its  Interest                        11
5.6     Accredited  Investor                                          11
5.7     Legends                                                       11
5.8     No  Shorting                                                  11
6.     COVENANTS  OF  THE  COMPANY                                    13
6.1     Stop-Orders                                                   13
6.2     Listing                                                       13
6.3     Market  Regulations                                           13
6.4      Reporting  Requirements                                      13
6.5     Use  of  Funds                                                13
6.6     Access  to  Facilities                                        14
6.7     Taxes                                                         14
6.8     Insurance                                                     14
6.9     Intellectual  Property                                        14
6.10     Properties                                                   14
6.11     Confidentiality                                              14
6.12     Reissuance  of  Securities.                                  15
6.13     Opinion                                                      15
7.     COVENANTS OF THE COMPANY AND PURCHASERS REGARDING
        INDEMNIFICATION                                               15
7.1     Company  Indemnification                                      15
7.2     Purchaser's  Indemnification                                  15
7.2     Procedures                                                    15
8.     CONVERSION  OF  CONVERTIBLE  NOTE                              16
8.1     Mechanics  of  Conversion                                     16
8.3     Maximum  Conversion                                           17
8.4     Injunction  -  Posting  of  Bond
8.5     Optional  Redemption
9.     REGISTRATION  RIGHTS                                          18
9.1     Registration  Rights  Granted                                18
9.2     Registration  Procedures                                     18
9.3     Provision  of  Documents                                     19
9.4     Non-Registration  Events                                     19
9.5     Expenses                                                     20
9.6     Indemnification  and  Contribution                           20
10.     SECURITY  INTEREST
11.     MISCELLANEOUS                                                22
12.1     Governing  Law                                              22
12.2     Survival                                                    23
12.3     Successors  and  Assigns                                    23
12.4     Entire  Agreement                                           23
12.5     Severability                                                23
12.6     Amendment  and  Waiver                                      23
12.7     Delays  or  Omissions                                       23
12.8     Notices                                                     24
12.9     Attorneys'  Fees                                            24
12.10     Titles  and  Subtitles                                     24
12.11     Counterparts                                               24
12.12     Broker's  Fees                                             24
12.13     Construction                                               24

<PAGE>
                       GLOBAL SPORTS & ENTERTAINMENT, INC.
                          SECURITIES PURCHASE AGREEMENT

     THISnnydopro5Straight  quotes  rather than smart quotes are used throughout
the  document. --mfg SECURITIES PURCHASE AGREEMENT (the "AGREEMENT") is made and
entered  into  as of June ___, 2002, by and among Global Sports & Entertainment,
Inc.,  a  Delaware  corporation (the "COMPANY"), and Laurus Master Fund, Ltd., a
Cayman  Islands  company  (the  "PURCHASER").

                                    RECITALS

     WHEREAS,  the  Company has authorized the sale of a 13% Convertible Note in
an  aggregate principal amount of $750,000 (the "NOTE"), convertible into shares
of  the Company's common stock, $0.0001 par value per share (the "COMMON STOCK")
at a fixed conversion rate of $.80 per share of Common Stock  ("FIXED CONVERSION
RATE");

WHEREAS,  the  Company  wishes  to  issue  a warrant (the "WARRANT") to the
Purchaser  to  purchase  shares of the Company's Common Stock in connection with
Purchaser's  purchase  of  the  Note;

WHEREAS,  Purchaser  desires  to  purchase the Note and Warrant on the terms and
conditions  set  forth  herein;  and

WHEREAS, the Company desires to issue and sell the Note and Warrant to Purchaser
on  the  terms  and  conditions  set  forth  herein.
                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the foregoing recitals and the mutual
promises,  representations,  warranties  and covenants hereinafter set forth and
for  other good and valuable consideration, the receipt and sufficiency of which
are  hereby  acknowledged,  the  parties  hereto  agree  as  follows:

1.     AGREEMENT  TO  SELL  AND  PURCHASE.

1.     AGREEMENT  TO  SELL  AND

PURCHASE
Pursuant to the terms and conditions set forth in this Agreement, on the
     Closing  Date  (as defined in Section 3), the Company agrees to sell to the
Purchaser,  and  the Purchaser hereby agrees to purchase from the Company a Note
in  the amount of $750,000 convertible in accordance with the terms thereof into
shares  of  the  Company's Common Stock in accordance with the terms of the Note
and  this  Agreement.  The  Note purchased on the Closing Date shall be known as
the  "OFFERING."  A  form  of the Note is annexed hereto as Exhibit A.  The Note
will have a Maturity Date (as defined in the Note) eighteen months from the date
of  issuance.  Collectively,  the Note and Warrant (as defined in Section 2) and
Common  Stock  issuable  in payment of the Note, upon conversion of the Note and
upon  exercise  of  the  Warrant  are  referred  to  as  the  "SECURITIES."

2.     FEES  AND  WARRANT.   On  the  Closing  Date:2.     FEES  AND  WARRANTS

(a)     The  Company  will  issue  and  deliver  to  the  Purchaser a Warrant to
purchase  250,000  shares  of  Common Stock in connection with the Offering (the
"WARRANT")  pursuant  to Section 1 hereof.  The Warrant must be delivered on the
Closing  Date.  A  form  of  Warrant  is  annexed  hereto as Exhibit B.  All the
representations,  covenants,  warranties, undertakings, and indemnification, and
other  rights  made  or  granted  to  or for the benefit of the Purchaser by the
Company are hereby also made and granted in respect of the Warrant and shares of
     the  Company's  Common  Stock  issuable  upon  exercise of the Warrant (the
"WARRANT  SHARES").
(b)     The  Company shall reimburse the Purchaser for its reasonable legal fees
for  services rendered to the Purchaser in preparation of this Agreement and the
Related  Agreements,  and  expenses  in  connection  with  the  Purchaser's  due
diligence  review  of  the Company and relevant matters.  Amounts required to be
paid  hereunder  will  be  paid  at  the  Closing  and shall not exceed $20,000.
(c)     The  Company  will  pay  a  cash fee in the amount of eight and one half
percent  (8.5%)  of the aggregate gross purchase price to be paid to the Company
from  the  sale  of  Note  in the Offering (the "FUND MANAGEMENT FEE") to Laurus
Capital  Management,  L.L.C.,  a  Delaware  limited liability company.  The Fund
Management  Fee  must  be  paid  on  the  Closing Date.  The aforementioned Fund
Management  Fee  and legal fees will be payable at the Closing out of funds held
pursuant  to  a  Funds  Escrow  Agreement  to  be  entered  into by the Company,
Purchaser  and  an  Escrow  Agent  (the  "FUNDS  ESCROW  AGREEMENT").

3.     CLOSING,  DELIVERY  AND  PAYMENT3.     CLOSING,  DELIVERY  AND  PAYMENT.

3.1     CLOSING3.1     Closing.  Subject to the terms and conditions herein, the
     closing of the transactions contemplated hereby (the "CLOSING"), shall take
place on the date hereof, at such time or place as the Company and Purchaser may
mutually  agree  (such  date  is hereinafter referred to as the "CLOSING DATE").

3.2     DELIVERY3.2     Delivery.  Pursuant  to  the  Funds Escrow Agreement, at
the  Closing,  subject  to  the  terms  and  conditions hereof, the Company will
deliver  to the Escrow Agent, among other things, a Note in the form attached as
Exhibit  A  representing  the  principal  amount  of $750,000 and a Common Stock
Purchase  Warrant  in  the  form  attached  as Exhibit B in the Purchaser's name
representing 250,000 Warrant Shares and the Purchaser will deliver to the Escrow
     Agent,  among  other  things, $750,000, by certified funds or wire transfer
made  payable  to  the  order  of  the  Escrow  Agent.

4.     REPRESENTATIONS  AND  WARRANTIES OF THE COMPANY4.     REPRESENTATIONS AND
WARRANTIES  OF  THE  COMPANY.
     The  Company hereby represents and warrants to the Purchaser as of the date
of  this  Agreement  as  set  forth  below  except as disclosed in the Company's
filings  under  the Securities Exchange Act of 1934 (collectively, the "EXCHANGE
ACT  FILINGS"),  copies  of  which  have  been provided to the Purchaser, or the
Schedules  hereto.

4.1     ORGANIZATION,  GOOD STANDING AND QUALIFICATION4.1     Organization, Good
Standing  and  Qualification.  The  Company  is  a  corporation  duly organized,
validly  existing  and in good standing under the laws of the State of Delaware.
The  Company  has  the  corporate  power  and  authority  to own and operate its
properties  and assets, to execute and deliver this Agreement, the Warrant to be
issued  in  connection  with  this  Agreement,  the  Funds Escrow Agreement, the
Security  Agreement  and  all other agreements referred to herein (collectively,
the  "RELATED  AGREEMENTS"), to issue and sell the Note and the shares of Common
Stock  issuable  upon  conversion of the Note (the "NOTE SHARES") , to issue and
sell  the  Warrant  and  the Warrant Shares , and to carry out the provisions of
this  Agreement  and  the  Related  Agreements  and  to carry on its business as
presently  conducted.  The  Company  is  duly  qualified and is authorized to do
business  and  is in good standing as a foreign corporation in all jurisdictions
in  which  the  nature  of  its activities and of its properties (both owned and
leased)  makes  such  qualification necessary, except for those jurisdictions in
which  failure  to do so would not have a material adverse effect on the Company
or  its  business.

4.2     SUBSIDIARIES4.2     Subsidiaries.  Except  as disclosed on Schedule 4.2,
the Company does not own or control any equity security or other interest of any
     other  corporation,  limited  partnership  or  other  business  entity.

4.3     CAPITALIZATION;  VOTING  RIGHTS4.3     Capitalization;  Voting  Rights2.
(a)     The  authorized  capital  stock  of  the  Company,  as  of May 12, 2002,
consists  of (i) 50,000,000 shares of Common Stock, par value $0.0001 per share,
19,579,728  shares of which are issued and outstanding and (ii) 5,000,000 shares
of Preferred Stock, par value $.0001 per share, 64,000 shares of which have been
     designated  Series  C  Preferred  Stock,  all  of  which  are  issued  and
outstanding.
(b)     Except  as disclosed on Schedule 4.3, other than (i) the shares reserved
for  issuance  under the Company's stock option plans; and (ii) shares which may
be  granted  pursuant to this Agreement and the Related Agreements, there are no
outstanding options, warrants, rights (including conversion or preemptive rights
     and  rights  of  first  refusal),  proxy  or  stockholder  agreements,  or
arrangements  or agreements of any kind for the purchase or acquisition from the
Company of any of its securities.  Neither the offer, issuance or sale of any of
the  Note  or  Warrant,  or  the  issuance  of any of the Note Shares or Warrant
Shares,  nor the consummation of any transaction contemplated hereby will result
in a change in the price or number of any securities of the Company outstanding,
under  anti-dilution  or  other similar provisions contained in or affecting any
such  securities.
(c)     All issued and outstanding shares of the Company's Common Stock (i) have
been duly authorized and validly issued and are fully paid and nonassessable and
(ii)  were  issued  in  compliance  with  all  applicable state and federal laws
concerning  the  issuance  of  securities.
(d)     The  rights,  preferences,  privileges and restrictions of the shares of
the  Common  Stock are as stated in the Certificate of Incorporation, as amended
(the  "CHARTER").  The Note Shares and Warrant Shares have been duly and validly
reserved  for  issuance.  When  issued in compliance with the provisions of this
Agreement  and  the  Company's  Charter,  the Securities will be validly issued,
fully  paid  and  nonassessable,  and will be free of any liens or encumbrances;
provided,  however,  that  the  Securities  may  be  subject  to restrictions on
transfer  under  state  and/or federal securities laws as set forth herein or as
otherwise  required  by  such  laws  at  the  time  a  transfer  is  proposed.
(e)     No  stock  plan,  stock  purchase,  stock  option  or other agreement or
understanding between the Company and any holder of any equity securities of the
Company  or  rights  to  purchase  equity securities of the Company provides for
acceleration  or  other changes in the vesting provisions or other terms of such
agreement  or  understanding  as  the result of any merger, consolidated sale of
stock  or  assets, change in control or any other transaction(s) by the Company,
including  the  transactions  contemplated  hereunder.

4.4     AUTHORIZATION;  BINDING  OBLIGATIONS4.4     Authorization;  Binding
Obligations.  All  corporate action on the part of the Company, its officers and
directors  necessary  for  the  authorization  of this Agreement and the Related
Agreements  to  which  the  Company,  the  performance of all obligations of the
Company  hereunder  at  the  Closing  and, the authorization, sale, issuance and
delivery  of  the  Note and Warrant has been taken or will be taken prior to the
Closing.  The  Agreement and the Related Agreements, when executed and delivered
and  to  the extent it is a party thereto, will be valid and binding obligations
of the Company enforceable in accordance with their terms, except (a) as limited
     by  applicable  bankruptcy, insolvency, reorganization, moratorium or other
laws  of general application affecting enforcement of creditors' rights, and (b)
general  principles  of  equity  that  restrict the availability of equitable or
legal  remedies.  The sale of the Note and the subsequent conversion of the Note
into  Note  Shares  are  not and will not be subject to any preemptive rights or
rights of first refusal that have not been properly waived or complied with. The
issuance  of  the Warrant and the subsequent exercise of the Warrant for Warrant
Shares  are  not  and  will not be subject to any preemptive rights or rights of
first refusal that have not been properly waived or complied with.  The Note and
the  Warrant,  when  executed and delivered in accordance with the terms of this
Agreement,  will be valid and binding obligations of the Company, enforceable in
accordance  with  their  respective  terms.

4.5     LIABILITIES4.5     Liabilities.  The Company has no material liabilities
     and,  to  the  best  of  its  knowledge,  knows  of  no material contingent
liabilities,  except  current  liabilities  incurred  in  the ordinary course of
business  and  liabilities  disclosed  in  any  Exchange  Act  Filings.

4.6     AGREEMENTS;  ACTION4.6     Agreements;  Action.  Except  as set forth on
Schedule  4.6:
(a)     There  are  no  agreements,  understandings,  instruments,  contracts,
proposed  transactions, judgments, orders, writs or decrees to which the Company
is  a  party  or  to  its  knowledge  by which it is bound which may involve (i)
obligations  (contingent or otherwise) of, or payments to, the Company in excess
of  $50,000 (other than obligations of, or payments to, the Company arising from
purchase or sale agreements entered into in the ordinary course of business), or
     (ii)  the  transfer  or  license  of any patent, copyright, trade secret or
other proprietary right to or from the Company (other than licenses arising from
the purchase of "off the shelf" or other standard products), or (iii) provisions
restricting  the  development,  manufacture  or  distribution  of  the Company's
products  or  services,  or  (iv) indemnification by the Company with respect to
infringements  of  proprietary  rights.
(b)     The Company has not (i) declared or paid any dividends, or authorized or
     made  any  distribution  upon or with respect to any class or series of its
capital  stock,  (ii)  incurred any indebtedness for money borrowed or any other
liabilities  individually  in  excess of $50,000 or, in the case of indebtedness
and/or  liabilities individually less than $50,000, in excess of $100,000 in the
aggregate,  (iii)  made  any  loans  or  advances  to  any person not in excess,
individually  or in the aggregate, of $100,000, other than ordinary advances for
travel  expenses,  or  (iv)  sold, exchanged or otherwise disposed of any of its
assets or rights, other than the sale of its inventory in the ordinary course of
business.
(c)     For  the  purposes  of  subsections (a) and (b) above, all indebtedness,
liabilities,  agreements,  understandings,  instruments,  contracts and proposed
transactions  involving the same person or entity (including persons or entities
the  Company has reason to believe are affiliated therewith) shall be aggregated
for  the  purpose  of  meeting  the  individual  minimum  dollar amounts of such
subsections.

4.7     OBLIGATIONS  TO  RELATED  PARTIES4.7     Obligations to Related Parties.
There  are no obligations of the Company to officers, directors, stockholders or
employees  of  the  Company  other  than  (a) for payment of salary for services
rendered,  (b)  reimbursement  for reasonable expenses incurred on behalf of the
Company,  (c)  for  other standard employee benefits made generally available to
all  employees  (including  stock  option agreements outstanding under any stock
option  plan  approved  by  the  Board  of  Directors  of  the  Company) and (d)
obligations  listed in the Company's financial statements or disclosed in any of
its  Exchange  Act  Filings.  Except as described above or set forth on Schedule
4.7, none of the officers, directors or, to the best of the Company's knowledge,
     key  employees  or  stockholders  of  the  Company  or any members of their
immediate  families,  are  indebted  to  the  Company,  individually  or  in the
aggregate,  in  excess  of  $50,000  or  have  any  direct or indirect ownership
interest in any firm or corporation with which the Company is affiliated or with
which  the Company has a business relationship, or any firm or corporation which
competes  with  the  Company,  other than passive investments in publicly traded
companies (representing less than 1% of such company) which may compete with the
Company.  Except as described above, no officer, director or stockholder, or any
member  of  their  immediate families, is, directly or indirectly, interested in
any  material  contract  with  the  Company and no agreements, understandings or
proposed  transactions are contemplated between the Company and any such person.
Except  as  set  forth  on  Schedule  4.7,  the  Company  is  not a guarantor or
indemnitor  of  any  indebtedness  of  any  other  person,  firm or corporation.

4.8     CHANGES4.8     Changes.  To  the  best of the Company's knowledge, since
March  31, 2002, except as disclosed in any Schedule to this Agreement or to any
of  the  Related  Agreements,  there  has  not  been:
(a)     Any  change  in  the  assets,  liabilities,  financial  condition,  or
operations  of  the  Company,  other  than  changes  in  the  ordinary course of
business,  none  of  which  individually  or  in  the  aggregate  has  had or is
reasonably  expected  to  have  a  material  adverse  effect  on  such  assets,
liabilities,  financial  condition,  or  operations  of  the  Company;
(b)     Any  resignation or termination of any officer, key employee or group of
employees  of  the  Company;
(c)     Any  material  change, except in the ordinary course of business, in the
contingent  obligations  of  the  Company  by  way  of  guaranty,  endorsement,
indemnity,  warranty  or  otherwise;
(d)     Any  damage,  destruction  or loss, whether or not covered by insurance,
materially  and  adversely  affecting  the  properties,  business  or  financial
condition  of  the  Company;
(e)     Any waiver by the Company of a valuable right or of a material debt owed
to  it;
(f)     Any  direct  or  indirect  material  loans  made  by  the Company to any
stockholder,  employee,  officer or director of the Company, other than advances
made  in  the  ordinary  course  of  business;
(g)     Any  material  change  in any compensation arrangement or agreement with
any  employee,  officer,  director  or  stockholder;
(h)     Any  declaration or payment of any dividend or other distribution of the
assets  of  the  Company;
(i)     Any  labor  organization  activity  related  to  the  Company;
(j)     Any debt, obligation or liability incurred, assumed or guaranteed by the
     Company,  except  those  for immaterial amounts and for current liabilities
incurred  in  the  ordinary  course  of  business;
(k)     Any sale, assignment or transfer of any patents, trademarks, copyrights,
trade  secrets  or  other  intangible  assets;
(l)     Any  change in any material agreement to which the Company is a party or
by  which  it  is  bound which may materially and adversely affect the business,
assets,  liabilities,  financial  condition  or  operations  of  the  Company;
(m)     Any  other event or condition of any character that, either individually
or  cumulatively,  has  or  may  materially  and  adversely affect the business,
assets,  liabilities,  financial  condition,  or  operations  of the Company; or
(n)     Any  arrangement  or  commitment  by  the  Company to do any of the acts
described  in  subsection  (a)  through  (m)  above.

4.9     TITLE  TO  PROPERTIES AND ASSETS; LIENS, ETC.4.9     Title to Properties
and  Assets;  Liens,  Etc.  The  Company  has  good  and marketable title to its
properties  and  assets,  and  good title to its leasehold estates, in each case
subject  to  no mortgage, pledge, lien, lease, encumbrance or charge, other than
(a)  those  resulting from taxes which have not yet become delinquent, (b) minor
liens  and  encumbrances  which  do not materially detract from the value of the
property subject thereto or materially impair the operations of the Company, and
     (c)  those  that  have otherwise arisen in the ordinary course of business.
All  facilities,  machinery,  equipment, fixtures, vehicles and other properties
owned,  leased or used by the Company are in good operating condition and repair
and  are  reasonably  fit  and  usable for the purposes for which they are being
used.  To the best of the Company's knowledge, the Company is in compliance with
all  material  terms of each lease to which it is a party or is otherwise bound.

4.10     INTELLECTUAL  PROPERTY4.10     Intellectual  Property.
(a)     The  Company  owns  or possesses sufficient legal rights to all patents,
trademarks,  service  marks,  trade  names, copyrights, trade secrets, licenses,
information  and  other  proprietary  rights  and  processes  necessary  for its
business  as  now  conducted  (the  "INTELLECTUAL  PROPERTY"), without any known
infringement  of  the  rights  of  others.  There  are  no  outstanding options,
licenses or agreements of any kind relating to the foregoing proprietary rights,
     nor  is  the  Company  bound  by  or  a  party  to any options, licenses or
agreements  of  any kind with respect to the patents, trademarks, service marks,
trade  names,  copyrights,  trade  secrets,  licenses,  information  and  other
proprietary  rights  and processes of any other person or entity other than such
licenses  or agreements arising from the purchase of "off the shelf" or standard
products.
(b)     Except  as  set  forth on Schedule 4.10(b), the Company has not received
any  communications  alleging  that the Company has violated any of the patents,
trademarks,  service  marks,  trade  names, copyrights or trade secrets or other
proprietary  rights  of  any other person or entity, nor is the Company aware of
any  basis  therefor.
(c)     The  Company  does not believe it is or will be necessary to utilize any
inventions,  trade  secrets  or  proprietary information of any of its employees
made  prior  to  their  employment  by the Company, except for inventions, trade
secrets  or  proprietary  information  that have been rightfully assigned to the
Company.

4.11     COMPLIANCE  WITH  OTHER  INSTRUMENTS4.11     Compliance  with  Other
Instruments.  To  the  Company's  knowledge,  the Company is not in violation or
default  of  any  term of its Charter or Bylaws, or of any material provision of
any mortgage, indenture, contract, agreement, instrument or contract to which it
     is party or by which it is bound or of any judgment, decree, order or writ.
To  the  Company's  knowledge,  the  execution,  delivery and performance of and
compliance  with  this  Agreement  and  the  Related Agreements to which it is a
party,  and  the  issuance  and  sale  of  the Note by the Company and the other
Securities  by  the  Company each pursuant hereto, will not, with or without the
passage  of  time or giving of notice, result in any such material violation, or
be in conflict with or constitute a default under any such term or provision, or
result in the creation of any mortgage, pledge, lien, encumbrance or charge upon
any  of  the  properties or assets of the Company or the suspension, revocation,
impairment,  forfeiture  or  nonrenewal of any permit, license, authorization or
approval  applicable  to  the  Company, its business or operations or any of its
assets  or  properties.

4.12     LITIGATION4.12     Litigation.  Except  as  set forth on Schedule 4.12,
there  is  no  action,  suit,  proceeding  or  investigation  pending or, to the
Company's  knowledge, currently threatened against the Company that prevents the
Company to enter into this Agreement or the Related Agreements, or to consummate
     the  transactions  contemplated  hereby  or thereby, or which might result,
either  individually  or in the aggregate, in any material adverse change in the
assets,  condition,  affairs  or  prospects  of  the  Company,  financially  or
otherwise,  or any change in the current equity ownership of the Company, nor is
the  Company aware that there is any basis for any of the foregoing. The Company
is  not  a  party  or  subject to the provisions of any order, writ, injunction,
judgment  or decree of any court or government agency or instrumentality.  There
is no action, suit, proceeding or investigation by the Company currently pending
or  which  the  Company  intends  to  initiate.

4.13     TAX RETURNS AND PAYMENTS4.13     Tax Returns and Payments.  The Company
     has  timely filed all tax returns (federal, state and local) required to be
filed  by  it of which the failure to file would have a material adverse effect.
All  taxes shown to be due and payable on such returns, any assessments imposed,
and to the Company's knowledge all other taxes due and payable by the Company on
or  before  the  Closing,  have been paid or will be paid prior to the time they
become  delinquent.  The  Company  has  not  been  advised  (a)  that any of its
returns,  federal, state or other, have been or are being audited as of the date
hereof,  or  (b)  of  any  deficiency  in assessment or proposed judgment to its
federal, state or other taxes.  The Company has no knowledge of any liability of
any  tax  to  be  imposed  upon  its properties or assets as of the date of this
Agreement  that  is  not  adequately  provided  for.

4.14     EMPLOYEES4.14     Employees.  The  Company has no collective bargaining
agreements  with  any  of  its  employees.  There  is  no labor union organizing
activity  pending or, to the Company's knowledge, threatened with respect to the
Company.  The  Company  is  not  a  party to or bound by any currently effective
employment  contract,  deferred  compensation arrangement, bonus plan, incentive
plan,  profit  sharing plan, retirement agreement or other employee compensation
plan  or agreement.  To the Company's knowledge, no employee of the Company, nor
any consultant with whom the Company has contracted, is in violation of any term
     of  any employment contract, proprietary information agreement or any other
agreement  relating to the right of any such individual to be employed by, or to
contract with, the Company because of the nature of the business to be conducted
by  the  Company; and to the Company's knowledge the continued employment by the
Company of its present employees, and the performance of the Company's contracts
with  its  independent  contractors, will not result in any such violation.  The
Company  is  not aware that any of its employees is obligated under any contract
(including licenses, covenants or commitments of any nature) or other agreement,
or  subject  to  any  judgment,  decree  or order of any court or administrative
agency,  that would interfere with their duties to the Company.  The Company has
not  received  any notice alleging that any such violation has occurred.  Except
for  employees  who  have  a  current  effective  employment  agreement with the
Company,  no  employee  of  the  Company has been granted the right to continued
employment  by the Company or to any material compensation following termination
of  employment with the Company.  The Company is not aware that any officer, key
employee or group of employees intends to terminate his, her or their employment
with the Company, nor does the Company have a present intention to terminate the
employment  of  any  officer,  key  employee  or  group  of  employees.

4.15     REGISTRATION  RIGHTS  AND VOTING RIGHTS4.15     Registration Rights and
Voting  Rights.  Except  as set forth on Schedule 4.15, the Company is presently
not under any obligation, and has not granted any rights, to register any of the
     Company's  presently  outstanding  securities or any of its securities that
may  hereafter  be  issued.  To  the  Company's knowledge, no stockholder of the
Company  has  entered  into  any  agreement with respect to the voting of equity
securities  of  the  Company.

4.16     COMPLIANCE  WITH  LAWS;  PERMITS4.16     Compliance with Laws; Permits.
To its knowledge, the Company is not in violation in any material respect of any
     applicable  statute, rule, regulation, order or restriction of any domestic
or foreign government or any instrumentality or agency thereof in respect of the
conduct of its business or the ownership of its properties which violation would
materially  and  adversely  affect  the business, assets, liabilities, financial
condition,  operations  or  prospects  of  the Company.  No governmental orders,
permissions,  consents,  approvals or authorizations are required to be obtained
and no registrations or declarations are required to be filed in connection with
the  execution  and  delivery  of  this Agreement and the issuance of any of the
Securities,  except such as has been duly and validly obtained or filed, or with
respect  to any filings that must be made after the Closing, as will be filed in
a timely manner.  The Company has all material franchises, permits, licenses and
any  similar  authority  necessary  for the conduct of its business as now being
conducted  by  it,  the  lack of which would materially and adversely affect the
business,  properties,  prospects  or  financial  condition  of  the  Company.

4.17     VALID  OFFERING4.17     Valid  Offering.  Assuming  the accuracy of the
representations and warranties of the Purchaser contained in this Agreement, the
     offer,  sale  and  issuance  of  the  Securities  will  be  exempt from the
registration  requirements  of  the  Securities  Act  of  1933,  as amended (the
"SECURITIES  ACT"),  and  will  have been registered or qualified (or are exempt
from  registration  and  qualification)  under  the  registration,  permit  or
qualification  requirements  of  all  applicable  state  securities  laws.

4.18     INSURANCE4.18     Insurance.  The  Company  has  general  commercial,
product  liability, fire and casualty insurance policies with coverage customary
for companies similarly situated to the Company in the same or similar business.

4.19     SEC  REPORTS4.19     SEC  Reports.  The  Company  has  filed  all proxy
statements,  reports  and  other  documents required to be filed by it under the
Exchange  Act.  The  Company  has furnished the Purchaser with copies of (i) its
Annual  Report  on  Form  10-K  for  the  fiscal year ended December 31, 2001 as
amended,  (ii)  its  Quarterly  Report on Form 10-Q for the fiscal quarter ended
March 31, 2002 and (iii) its Proxy Statement dated August 6, 2001 (collectively,
     the  "SEC  REPORTS").  Each  SEC  Report was, at the time of its filing, in
substantial  compliance with the requirements of its respective form and none of
the  SEC  Reports, nor the financial statements (and the notes thereto) included
in  the  SEC  Reports, as of their respective filing dates, contained any untrue
statement  of a material fact or omitted to state a material fact required to be
stated  therein  or  necessary  to  make the statements therein, in light of the
circumstances  under  which  they  were  made,  not  misleading.

4.20     LISTING4.20     Listing.  The  Company's  Common  Stock  is  listed for
trading  on  the  OTC  Bulletin  Board  and  satisfies  all requirements for the
continuation  of such listing.  The Company has not received any notice that its
Common  Stock  will  be  delisted from the OTC Bulletin Board or that the Common
Stock  does  not  meet  all  requirements  for the continuation of such listing.

4.21     NO  INTEGRATED  OFFERING4.21     No  Integrated  Offering.  To  the
Company's  knowledge,  neither  the  Company, nor any of its affiliates, nor any
person acting on its or their behalf, has directly or indirectly made any offers
     or  sales of any security or solicited any offers to buy any security under
circumstances  that  would cause the offering of the Securities pursuant to this
Agreement  to  be integrated with prior offerings by the Company for purposes of
the  Securities  Act which would prevent the Company from selling the Securities
pursuant  to  Rule  506  under  the  Securities  Act,  or  any  applicable
exchange-related  stockholder  approval provisions.  Nor will the Company or any
of  its affiliates or subsidiaries take any action or steps that would cause the
offering  of  the  Securities  to  be  integrated  with  other  offerings.

4.22     STOP  TRANSFER4.22     Stop  Transfer.  The  Securities  are restricted
securities  as  of  the  date of this Agreement.  The Company will not issue any
stop  transfer order or other order impeding the sale and delivery of any of the
Securities  at  such time as the Securities are registered for public sale or an
exemption  from  registration  is  available,  except  as  required  by  federal
securities  laws.

4.23     DILUTION4.23     Dilution.  The  Company  understands the nature of the
Securities  being  sold  hereby  and  recognizes  that they may have a potential
dilutive  effect.  The  Company specifically acknowledges that its obligation to
issue the shares of Common Stock upon conversion of the Note and exercise of the
     Warrant  is  binding  upon  the  Company  and enforceable regardless of the
dilution such issuance may have on the ownership interests of other shareholders
of  the  Company.

5.     REPRESENTATIONS AND WARRANTIES OF THE PURCHASER5.     REPRESENTATIONS AND
WARRANTIES  OF  THE  PURCHASERS.
     The  Purchaser  hereby  represents  and warrants to the Company as follows:

5.1     REQUISITE  POWER  AND  AUTHORITY5.1     Requisite  Power  and Authority.
Purchaser  has all necessary power and authority under all applicable provisions
of  law  to execute and deliver this Agreement and the Related Agreements and to
carry  out  their provisions.  All corporate action on Purchaser's part required
for  the  lawful  execution  and  delivery  of  this  Agreement  and the Related
Agreements  have  been  or will be effectively taken prior to the Closing.  Upon
their  execution and delivery, this Agreement and the Related Agreements will be
valid and binding obligations of Purchaser, enforceable in accordance with their
     terms,  except  (a)  as  limited  by  applicable  bankruptcy,  insolvency,
reorganization,  moratorium  or  other  laws  of  general  application affecting
enforcement  of  creditors'  rights, and (b) as limited by general principles of
equity  that  restrict  the  availability  of  equitable  and  legal  remedies.

5.2     INVESTMENT  REPRESENTATIONS5.2     Investment Representations. Purchaser
understands  that  the  Securities  are  being  offered  and sold pursuant to an
exemption  from  registration contained in the Securities Act based in part upon
Purchaser's  representations  contained  in  the  Agreement,  including, without
limitation, that the Purchaser is an "accredited investor" within the meaning of
     Regulation  D  under the Securities Act.  The Purchaser has received or has
had  full access to all the information it considers necessary or appropriate to
make an informed investment decision with respect to the Note and the Warrant to
be  purchased  by  it  under  this Agreement and the Note Shares and the Warrant
Shares  acquired  by  it upon the conversion of the Note and the exercise of the
Warrant,  respectively.  The  Purchaser  further  has  had an opportunity to ask
questions and receive answers from the Company regarding the Company's business,
management  and  financial affairs and the terms and conditions of the Offering,
the  Note,  the  Warrant and the Securities and to obtain additional information
(to  the  extent  the  Company  possessed  such  information or could acquire it
without  unreasonable  effort  or  expense)  necessary to verify any information
furnished  to  the  Purchaser  or  to  which  the  Purchaser  had  access.

5.3     PURCHASER  BEARS  ECONOMIC  RISK.  5.3     Purchaser Bears Economic Risk
Purchaser  has  substantial  experience  in  evaluating and investing in private
placement transactions of securities in companies similar to the Company so that
     it  is  capable of evaluating the merits and risks of its investment in the
Company  and has the capacity to protect its own interests.  Purchaser must bear
the  economic  risk of this investment until the Securities are sold pursuant to
(i)  an  effective  registration  statement under the Securities Act, or (ii) an
exemption  from  registration  is  available.

5.4     ACQUISITION  FOR  OWN  ACCOUNT.  5.4     Acquisition  for  Own  Account
Purchaser  is acquiring the Note and Warrant and the Note Shares and the Warrant
Shares  for Purchaser's own account for investment only, and not as a nominee or
agent  and  not  with  a  view  towards  or  for resale in connection with their
distribution.

5.5     PURCHASER  CAN  PROTECT  ITS INTEREST. 5.5     Purchaser Can Protect Its
Interest  Purchaser  represents  that  by reason of its, or of its management's,
business  and  financial  experience, Purchaser has the capacity to evaluate the
merits  and  risks of its investment in the Note, the Warrant and the Securities
and  to  protect  its  own  interests  in  connection  with  the  transactions
contemplated  in this Agreement, and the Related Agreements.  Further, Purchaser
is  aware  of  no  publication  of  any  advertisement  in  connection  with the
transactions  contemplated  in  the  Agreement  or  the  Related  Agreements.

5.6     ACCREDITED  INVESTOR.  5.6     Accredited Investor  Purchaser represents
that  it  is an accredited investor within the meaning of Regulation D under the
Securities  Act.

5.7     LEGENDS5.7     Legends.
(a)     The  Note  shall  bear  substantially  the  following  legend:
"THIS  NOTE  AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR, IF APPLICABLE,
STATE  SECURITIES LAWS.  THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION
OF  THIS  NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE  OF  AN  EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH SHARES
UNDER  SAID  ACT  AND  APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
REASONABLY  SATISFACTORY  TO  GLOBAL  SPORTS  &  ENTERTAINMENT,  INC.  THAT SUCH
REGISTRATION  IS  NOT  REQUIRED."

(b)     The Note Shares and the Warrant Shares, if not issued by DWAC system (as
     hereinafter  defined),  shall bear a legend which shall be in substantially
the  following  form  until such shares are covered by an effective registration
statement  filed  with  the  SEC:
"THE  SHARES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES  ACT  OF  1933,  AS AMENDED, OR IF APPLICABLE, STATE SECURITIES LAWS.
THESE  SHARES  MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE  OF  AN  EFFECTIVE  REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND
APPLICABLE STATE LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO GLOBAL
SPORTS  &  ENTERTAINMENT,  INC.  THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED."

(c)     The  Warrant  shall  bear  substantially  the  following  legend:
"THIS  WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
OF  THIS  WARRANT  MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE  ABSENCE  OF  AN  EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR THE
UNDERLYING SHARES OF COMMON STOCK UNDER SAID ACT AND APPLICABLE STATE SECURITIES
LAWS  OR  AN  OPINION  OF  COUNSEL  REASONABLY  SATISFACTORY  TO GLOBAL SPORTS &
ENTERTAINMENT,  INC.  THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED."

5.8     NO  SHORTING.  The  Purchaser  will not and will not cause any person or
entity,  directly  or  indirectly,  to  engage in "short sales" of the Company's
Common  Stock.

6.     COVENANTS  OF  THE  COMPANY. 6.     COVENANTS OF THE COMPANY  The Company
covenants  and  agrees  with  the  Purchaser  as  follows:

6.1     STOP-ORDERS6.1     Stop-Orders.  The  Company will advise the Purchaser,
promptly  after  it  receives  notice of issuance by the Securities and Exchange
Commission  (the "SEC"), any state securities commission or any other regulatory
authority  of  any  stop  order  or  of  any  order preventing or suspending any
offering  of  any  securities  of  the  Company,  or  of  the  suspension of the
qualification  of  the  Common  Stock of the Company for offering or sale in any
jurisdiction,  or  the  initiation  of  any  proceeding  for  any  such purpose.

6.2     LISTING.  6.2     Listing  The Company shall promptly secure the listing
of  the shares of Common Stock issuable upon conversion of the Note and upon the
exercise  of the Warrant on the Pink Sheets, the NASD OTC Bulletin Board, NASDAQ
SmallCap  Market,  NASDAQ  National  Market, American Stock Exchange or New York
Stock  Exchange  (the  "PRINCIPAL MARKET") upon which shares of Common Stock are
then  listed  (subject  to  official notice of issuance) and shall maintain such
listing  so  long  as  any other shares of Common Stock shall be so listed.  The
Company will maintain the listing of its Common Stock on a Principal Market, and
     will  comply  in all material respects with the Company's reporting, filing
and  other  obligations under the bylaws or rules of the National Association of
Securities Dealers ("NASD") and such exchanges, as applicable.  The Company will
provide the Purchaser copies of all notices it receives notifying the Company of
the  threatened  and  actual  delisting  of  the Common Stock from any Principal
Market.

6.3     MARKET REGULATIONS. 6.3     Market Regulations  The Company shall notify
     the  SEC,  NASD  and applicable state authorities, in accordance with their
requirements, of the transactions contemplated by this Agreement, and shall take
all  other  necessary action and proceedings as may be required and permitted by
applicable  law,  rule  and  regulation, for the legal and valid issuance of the
Securities  to  Purchaser  and  promptly  provide  copies  thereof to Purchaser.

6.4     REPORTING REQUIREMENTS. 6.4          Reporting Requirements  The Company
     will  timely file with the SEC all reports required to be filed pursuant to
the  Exchange  Act and refrain from terminating its status as an issuer required
by  the  Exchange Act to file reports thereunder even if the Exchange Act or the
rules  or  regulations  thereunder  would  permit  such  termination.

6.5     USE  OF FUNDS. 6.5     Use of Funds  The Company agrees that it will use
the  proceeds of the sale of the Note and Warrant for general corporate purposes
only.

6.6     ACCESS  TO  FACILITIES.  6.6     Access  to Facilities  The Company will
permit any representatives designated by the Purchaser (or any transferee of the
     Purchaser),  upon  reasonable  notice  and during normal business hours, at
such person's expense and accompanied by a representative of the Company, to (a)
visit  and  inspect  any  of  the  properties  of  the  Company, (b) examine the
corporate  and  financial records of the Company (unless such examination is not
permitted by federal, state or local law or by contract) and make copies thereof
or  extracts therefrom and (c) discuss the affairs, finances and accounts of any
such  corporations  with  the directors, officers and independent accountants of
the  Company.

6.7     TAXES.  6.7     Taxes  The  Company  will promptly pay and discharge, or
cause  to  be  paid  and  discharged,  when  due  and payable, all lawful taxes,
assessments and governmental charges or levies imposed upon the income, profits,
     property  or business of the Company; provided, however, that any such tax,
assessment,  charge  or  levy  need  not  be  paid if the validity thereof shall
currently  be  contested  in  good  faith  by appropriate proceedings and if the
Company  shall  have  set  aside  on  its  books  adequate reserves with respect
thereto,  and  provided,  further,  that  the  Company  will pay all such taxes,
assessments, charges or levies forthwith upon the commencement of proceedings to
foreclose  any  lien  which  may  have  attached  as  security  therefor.

6.8     INSURANCE. 6.8     Insurance  The Company will keep its assets which are
     of  an  insurable  character  insured  by  financially  sound and reputable
insurers  against  loss or damage by fire, explosion and other risks customarily
insured  against  by  companies  in  similar  business similarly situated as the
Company;  and  the  Company  will maintain, with financially sound and reputable
insurers, insurance against other hazards and risks and liability to persons and
property  to  the  extent  and  in the manner customary for companies in similar
business  similarly  situated  as  the  Company  and  to the extent available on
commercially  reasonable  terms.

6.9     INTELLECTUAL  PROPERTY. 6.9     Intellectual Property  The Company shall
maintain in full force and effect its corporate existence, rights and franchises
     and  all  licenses  and  other rights to use Intellectual Property owned or
possessed  by  it  and  reasonably  deemed to be necessary to the conduct of its
business.

6.10     PROPERTIES.  6.10     Properties  The  Company will keep its properties
in  good repair, working order and condition, reasonable wear and tear excepted,
and  from  time  to  time  make  all  needful  and  proper  repairs,  renewals,
replacements,  additions  and  improvements thereto; and the Company will at all
times  comply  with each provision of all leases to which it is a party or under
which  it  occupies property if the breach of such provision could reasonably be
expected  to  have  a  material  adverse  effect.

6.11     CONFIDENTIALITY6.11     Confidentiality.  The  Company  agrees  that it
will  not disclose, and will not include in any public announcement, the name of
the  Purchaser,  unless expressly agreed to by the Purchaser or unless and until
such  disclosure  is  required by law or applicable regulation, and then only to
the  extent  of  such  requirement.

6.12     REQUIRED APPROVALS6.12     Required Approvals.  For so long as at least
     50%  of  the  principal  amount  of  the  Note is outstanding, the Company,
without  the  prior  written  consent  of  the  Purchaser,  which  shall  not be
unreasonably  withheld,  shall  not:
(a)     directly  or  indirectly  declare  or  pay  any  dividends  or  make any
distributions  upon  any of its capital stock or other equity securities (or any
securities  directly  or  indirectly  convertible  into  or  exercisable  or
exchangeable  for  equity  securities);
(b)     consent  to  or  implement  any  termination,  amendment,  modification,
supplement  or  waiver  of  (a)  the  certificate  or articles of incorporation,
bylaws,  regulations  or  other  constitutional  documents of the Company or any
subsidiary  or  (b)  any  material  contract  to  which it is a party not in the
ordinary  course  of business with Company obligations in excess of $250,000 per
year;  provided,  however,  that any such document may be amended or modified if
       --------   -------
and  to  the  extent  that  such amendment or modification is not adverse to the
Purchaser  and  further,  except  as  set  forth  in Section 10 hereof, that the
Purchaser's  consent  shall not be required with respect to any future equity or
debt  financing  of  the  Company;  or
     (c)     materially  alter  or  change  the  scope  of  the  business of the
Company.

6.13     REISSUANCE  OF  SECURITIES.6.13     Reissuance  of  Securities.  The
Company  agrees  to reissue certificates representing the Securities without the
legends set forth in Section 5.7 above at such time as (a) the holder thereof is
     permitted  to  dispose of such Securities pursuant to Rule 144(k) under the
Securities  Act,  or  (b)  upon  resale  subject  to  an  effective registration
statement  after  such  Securities are registered under the Securities Act.  The
Company  agrees  to  cooperate with the Purchaser in connection with all resales
pursuant  to Rule 144(d) and Rule 144(k) and provide legal opinions necessary to
allow  such  resales  provided  the  Company  and its counsel receive reasonably
requested  representations  from  the  selling  Purchaser  and  broker,  if any.
6.14     OPINION6.14     Opinion.  On the Closing Date, the Company will deliver
to the Purchaser an opinion acceptable to the Purchaser from the Company's legal
     counsel in the form annexed hereto as Exhibit C.  The Company will provide,
at  the  Company's  expense,  such  other  legal  opinions  in the future as are
reasonably necessary for the conversion of the Note and exercise of the Warrant.

7.     COVENANTS  OF THE COMPANY AND PURCHASER REGARDING     INDEMNIFICATION. 7.
     COVENANTS  OF  THE  COMPANY  AND  PURCHASERS  REGARDING  INDEMNIFICATION

7.1     COMPANY  INDEMNIFICATION.  7.1     Company  Indemnification  The Company
agrees  to  indemnify,  hold  harmless,  reimburse and defend Purchaser, each of
Purchaser's  officers,  directors,  agents,  affiliates,  control  persons,  and
principal shareholders, against any claim, cost, expense, liability, obligation,
     loss or damage (including reasonable legal fees) of any nature, incurred by
or  imposed upon the Purchaser which results, arises out of or is based upon (i)
any  misrepresentation  by  Company or breach of any warranty by Company in this
Agreement  or  in  any  exhibits  or  schedules  attached  hereto or any Related
Agreement,  or  (ii)  any  breach  or  default  in performance by Company of any
covenant  or  undertaking  to  be  performed  by Company hereunder, or any other
agreement  entered  into  by  the  Company  and  Purchaser  relating  hereto.
7.2     PURCHASER'S  INDEMNIFICATION.  7.2     Purchaser's  Indemnification
Purchaser  agrees  to indemnify, hold harmless, reimburse and defend the Company
and  each  of  the  Company's  officers,  directors, agents, affiliates, control
persons  and  principal  shareholders,  at  all  times  against any claim, cost,
expense, liability, obligation, loss or damage (including reasonable legal fees)
     of  any  nature,  incurred  by  or  imposed upon the Company which results,
arises  out of or is based upon (i) any misrepresentation by Purchaser or breach
of  any  warranty by Purchaser in this Agreement or in any exhibits or schedules
attached  hereto  or  any  Related  Agreement;  or (ii) any breach or default in
performance  by  Purchaser  of  any  covenant  or undertaking to be performed by
Purchaser  hereunder,  or  any  other  agreement entered into by the Company and
Purchaser  relating  hereto.

7.3     PROCEDURES7.3     Procedures.  The  procedures and limitations set forth
in Section 9.6 shall apply to the indemnifications set forth in Sections 7.1 and
     7.2  above.

8.     CONVERSION  OF  CONVERTIBLE  NOTE8.     CONVERSION  OF CONVERTIBLE NOTES.
8.1     MECHANICS  OF  CONVERSION8.1     Mechanics  of  Conversion.
(a)     Provided  the  Purchaser  has  notified  the  Company of the Purchaser's
intention  to  sell  the  Note  Shares  and  the  Note Shares are included in an
effective  registration statement or are otherwise exempt from registration when
sold:  (i)  Upon  the conversion of the Note or part thereof, the Company shall,
at  its  own cost and expense, take all necessary action (including the issuance
of  an  opinion  of  counsel)  to assure that the Company's transfer agent shall
issue  shares of the Company's Common Stock in the name of the Purchaser (or its
nominee) or such other persons as designated by the Purchaser in accordance with
     Section  8.1(b)  hereof  and  in  such  denominations  to  be  specified
representing  the  number of Note Shares issuable upon such conversion; and (ii)
The  Company  warrants  that  no instructions other than these instructions have
been  or  will  be given to the transfer agent of the Company's Common Stock and
that  after  the  Effective Date (as hereinafter defined) the Note Shares issued
will  be  freely transferable subject to the prospectus delivery requirements of
the  Securities Act and the provisions of this Agreement, and will not contain a
legend  restricting  the  resale  or  transferability  of  the  Note  Shares.
(b)     Purchaser  will  give  notice  of  its decision to exercise its right to
convert  the  Note  or  part  thereof  by telecopying or otherwise delivering an
executed  and  completed  notice  of the number of shares to be converted to the
Company  (the  "NOTICE  OF  CONVERSION").  The Purchaser will not be required to
surrender  the  Note until the Purchaser receives a credit to the account of the
Purchaser's  prime  broker  through  the  DWAC  system  (as  defined  below),
representing  the  Note Shares or until the Note has been fully satisfied.  Each
date  on  which a Notice of Conversion is telecopied or delivered to the Company
in  accordance  with  the provisions hereof shall be deemed a "CONVERSION DATE."
The  Company  will  cause  the  transfer  agent  to  transmit  the shares of the
Company's  Common  Stock issuable upon conversion of the Note (and a certificate
representing  the  balance  of  the  Note  not  so  converted,  if  requested by
Purchaser)  to  the  Purchaser by crediting the account of the Purchaser's prime
broker  with the Depository Trust Company ("DTC") through its Deposit Withdrawal
Agent Commission ("DWAC") system within three business days after receipt by the
     Company  of  the  Notice  of  Conversion  (the  "DELIVERY  DATE").
     (c)     The  Company  understands  that a delay in the delivery of the Note
Shares  in  the  form  required pursuant to Section 8 hereof beyond the Delivery
Date  could  result  in  economic  loss to the Purchaser.  In the event that the
Company  fails  to  direct  its transfer agent to deliver the Note Shares to the
Purchaser  via the DWAC system within the time frame set forth in Section 8.1(b)
above  and  the  Note  Shares are not delivered to the Purchaser by the Delivery
Date,  as compensation to the Purchaser for such loss, the Company agrees to pay
late  payments to the Purchaser for late issuance of the Note Shares in the form
required  pursuant to Section 8 hereof upon conversion of the Note in the amount
equal  to the Purchaser's actual damages from such delayed delivery. The Company
shall  pay  any  payments  incurred  under this Section in immediately available
funds  upon  demand and accompanied by reasonable documentation of the amount of
such  damages.

     (d)     Nothing  contained  herein or in any document referred to herein or
delivered  in  connection  herewith  shall be deemed to establish or require the
payment  of  a  rate  of  interest  or  other  charges  in excess of the maximum
permitted  by  applicable  law.  In  the  event  that  the  rate  of interest or
dividends  required  to  be  paid  or other charges hereunder exceed the maximum
amount  permitted  by  such law, any payments in excess of such maximum shall be
credited against amounts owed by the Company to a Purchaser and thus refunded to
the  Company.

8.2     MANDATORY  REDEMPTION8.2     Mandatory Redemption.  If after receiving a
valid  Notice  of  Conversion, the Company is unable to issue Note Shares within
five  (5)  business  days  of  a  Delivery  Date,  for  any  reason, then at the
Purchaser's  election, the Company must pay to the Purchaser ten (10) days after
receipt  of  written  request  by  the  Purchaser ("MANDATORY REDEMPTION PAYMENT
DATE")  a  sum  of  money  determined  by  multiplying the principal of the Note
required to be converted and not so converted by 130%, together with accrued but
     unpaid  interest thereon ("MANDATORY REDEMPTION PAYMENT").  Upon receipt of
the  Mandatory Redemption Payment, the corresponding Note principal and interest
will  be  deemed  paid  and  no  longer outstanding.  The event giving rise to a
Mandatory  Redemption  Payment  under  this  Section 8.2 shall not constitute an
Event  of  Default  (as  that  term  is  defined  in  Section  4  of  the Note.)

8.3     MAXIMUM  CONVERSION8.3     Maximum  Conversion.  The Purchaser shall not
be  entitled to convert on a Conversion Date that amount of a Note in connection
with  that  number of shares of Common Stock which would be in excess of the sum
of  (i) the number of shares of Common Stock beneficially owned by the Purchaser
on  a  Conversion  Date,  and (ii) the number of shares of Common Stock issuable
upon  the conversion of the Note with respect to which the determination of this
proviso  is  being  made  on a Conversion Date, which would result in beneficial
ownership by the Purchaser of more than 4.9% of the outstanding shares of Common
     Stock  of  the  Company  on  such Conversion Date.  For the purposes of the
immediately  preceding  sentence,  beneficial  ownership  shall be determined in
accordance  with  Section  13(d)  of  the  Exchange  Act  and  Regulation  13d-3
thereunder.  Subject  to  the  foregoing,  a  Purchaser  shall not be limited to
aggregate  conversions of only 4.9%.    Upon an Event of Default under the Note,
the  conversion  limitation  in this Section 8.2 shall automatically become null
and  void.  In  the  event  of  an Optional Redemption or a Mandatory Redemption
Payment,  the  Purchaser  will be permitted to raise the limit set forth in this
Section  8.2.
8.4     INJUNCTION  -  POSTING  OF BOND8.4     Injunction - Posting of Bond.  In
the event a Purchaser shall elect to convert a Note or part thereof, the Company
     may  not  refuse  conversion  for  any  reason, unless an injunction from a
court, on notice, restraining and or enjoining conversion of all or part of said
Note shall have been sought and obtained and the Company posts a surety bond for
the  benefit  of  the Purchaser in the amount of 130% of the amount of the Note,
which  is subject to the injunction, which bond shall remain in effect until the
completion  of  arbitration/litigation  of the dispute and the proceeds of which
shall  be  payable  to  such  Purchaser  to  the  extent  it  obtains  judgment.
8.5     OPTIONAL  REDEMPTION.  The Company will have the option of redeeming any
outstanding  principal  of  the  Note  ("OPTIONAL  REDEMPTION") by paying to the
Purchaser  a  sum  of money equal to the greater of (i) the Mandatory Redemption
Payment  or  (ii)  a  fraction, of which the numerator is the amount of the Note
being  redeemed  and  of  which  the denominator is the Conversion Price, as set
forth  in  Section 3.1(b) of the Note, together with accrued but unpaid interest
thereon  and  any  and  all  other sums due, accrued or payable to the Purchaser
arising  under  this  Agreement,  Note  or any other document delivered herewith
("REDEMPTION  AMOUNT")  outstanding  on the day notice of redemption ("NOTICE OF
REDEMPTION)  is  delivered  to  a  Purchaser  ("REDEMPTION  DATE").  A Notice of
Redemption  may  not be given in connection with any portion of Note for which a
Notice  of Conversion has been given by the Purchaser at any time before receipt
of a Notice of Redemption or given pursuant to the following sentence.  A Notice
of Redemption must be accompanied by a certificate signed by the chief executive
officer  or  chief financial officer of the Company stating that the Company has
on  deposit  and  segregated  ready  funds  equal to the Redemption Amount.  The
Redemption  Amount must be paid in good funds to the Purchaser no later than the
seventh  (7th)  business  day  after  the  Redemption Date ("OPTIONAL REDEMPTION
PAYMENT  DATE").  In the event the Company fails to pay the Redemption Amount by
the  Optional  Redemption  Payment Date, then the Redemption Notice will be null
and  void.  A  Notice of Redemption may be given by the Company, provided (i) no
Event  of Default as described in the Note shall have occurred or be continuing;
and  (ii)  the Note Shares issuable upon conversion of the full outstanding Note
principal  are  included  for  unrestricted  resale  in a registration statement
effective  as  of the Redemption Date or are otherwise exempt from registration.
9.     REGISTRATION  RIGHTS.  9.     REGISTRATION  RIGHTS
9.1     REGISTRATION  RIGHTS  GRANTED.  9.1     Registration  Rights Granted The
Company  hereby  grants  the  following  registration  rights  to the Purchaser.
     (a)     The  Company  shall use its reasonable commercial efforts to file a
Form SB-2 registration statement (or such other form that it is eligible to use)
in  order to register the Registrable Securities (as that term is defined below)
for resale and distribution under the Securities Act with the SEC within 60 days
of  the  Closing  Date  (the  "FILING  DATE"), and use its reasonable commercial
efforts to cause such registration statement to be declared effective within 105
days  of  the Filing Date (the "EFFECTIVE DATE").  The Company will register not
less  than a number of shares of Common Stock in the aforedescribed registration
statement  that is equal to the Warrant Shares and 200% (or such lower amount as
permitted  or required by the SEC) of the Note Shares issuable at the Conversion
and  Purchase Prices set forth in the Note and Warrant, respectively, that would
be  in  effect  on  the  Closing Date or the date of filing of such registration
statement  (employing  the  price  which  would  result in the greater number of
Shares),  assuming  the  conversion  of 100% of the principal amount of the Note
which  is  then  outstanding,  and  at  least one share of Common Stock for each
common  share  issuable upon exercise of the Warrant ("REGISTRABLE SECURITIES").
Such  registration statement will be promptly amended or additional registration
statements  will  be  promptly  filed  by  the  Company as necessary to register
additional  Company  Shares  to  allow  the  public  resale  of all Common Stock
included  in  and  issuable  by  virtue  of  the  Registrable  Securities.
9.2     REGISTRATION  PROCEDURES.  9.2          Registration  ProceduresIf  and
whenever  the  Company  is  required  by  the  provisions  hereof  to effect the
registration  of  the Registrable Securities under the Act, the Company will, as
expeditiously  as  possible:
(a)     prepare  and  file with the SEC a registration statement with respect to
such securities and use its best efforts to cause such registration statement to
     become and remain effective for the period of the distribution contemplated
thereby  (determined  as herein provided), and promptly provide to the Purchaser
copies  of  all  filings  and  SEC  letters  of  comment;
(b)     prepare  and  file  with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be
     necessary  to  keep such registration statement effective until the earlier
of:  (i)  six  months after the latest exercise period of the Warrant; (ii) four
years  after  the  Closing  Date,  or  (iii) the date on which the Purchaser has
disposed  of  all  of  the  Registrable  Securities covered by such registration
statement  in accordance with the Purchaser's intended method of disposition set
forth  in  such  registration  statement  for  such  period;
(c)     furnish  to  the  Purchaser  such  number  of copies of the registration
statement  and  the  prospectus  included  therein  (including  each preliminary
prospectus)  as  the  Purchaser  reasonably may request to facilitate the public
sale  or  disposition  of the securities covered by such registration statement;
(d)     use  its  commercially  reasonable  efforts  to  register or qualify the
Purchaser's  Registrable Securities covered by such registration statement under
the  securities  or "blue sky" laws of such jurisdictions as the Purchaser shall
be  issued  Registrable Securities in, provided, however, that the Company shall
not  for  any such purpose be required to qualify generally to transact business
as  a foreign corporation in any jurisdiction where it is not so qualified or to
consent  to  general  service  of  process  in  any  such  jurisdiction;
(e)     list  the  Registrable Securities covered by such registration statement
with  any  securities  exchange on which the Common Stock of the Company is then
listed;
(f)     immediately  notify the Purchaser at any time when a prospectus relating
thereto  is  required to be delivered under the Securities Act, of the happening
of  any  event  of  which  the  Company  has  knowledge as a result of which the
prospectus contained in such registration statement, as then in effect, includes
an  untrue  statement  of  a  material  fact  or  omits to state a material fact
required  to  be  stated therein or necessary to make the statements therein not
misleading  in  light  of  the  circumstances  then  existing;  and
(g)     make  available  for  inspection  by  the  Purchaser  and  any attorney,
accountant  or  other  agent  retained by the Purchaser, all publicly available,
non-confidential  financial and other records, pertinent corporate documents and
properties  of  the  Company,  and  cause  the Company's officers, directors and
employees  to  supply  all  publicly  available,  non-confidential  information
reasonably  requested  by  the  attorney,  accountant or agent of the Purchaser.
9.3     PROVISION  OF  DOCUMENTS.  9.3          Provision  of  Documents
(a)     In  connection  with  each  registration  hereunder,  the Purchaser will
furnish  to  the  Company in writing such information and representation letters
with  respect  to itself and the proposed distribution by it as reasonably shall
be  necessary  in  order  to assure compliance with federal and applicable state
securities  laws.

9.4     NON-REGISTRATION EVENTS. 9.4     Non-Registration Events (a)  If (i) the
     Registration  Statement  described  in  Section  9.1(a)  is not filed on or
before  the Filing Date or not declared effective on or before the sooner of the
Effective  Date,  or  within  five business  days of receipt by the Company of a
communication  from the SEC that the registration statement described in Section
9.1(a)  will  not  be reviewed, or (iii) any registration statement described in
Section  9.1(a) is filed and declared effective but shall thereafter cease to be
effective  (without  being  succeeded  immediately by an additional registration
statement  filed and declared effective) for a period of time which shall exceed
30 days in the aggregate per year but not more than 20 consecutive calendar days
(defined  as  a  period  of  365  days  commencing  on the date the Registration
Statement  is  declared  effective) (each such event referred to in this Section
9.4  is  referred to herein as a "NON-REGISTRATION EVENT"), then, for so long as
such  Non-Registration  Event  shall  continue, the Company shall pay in cash as
Liquidated  Damages to each holder of any Registrable Securities an amount equal
to two percent (2%) per month during the pendency of such Non-Registration Event
of  the principal of the Note issued in connection with the Offering, whether or
not  converted,  then  owned  of  record  by  such  holder  or issuable as of or
subsequent  to  the  occurrence  of such Non-Registration Event.  Payments to be
made  pursuant  to this Section shall be due and payable immediately upon demand
in immediately available funds.   It shall be deemed a Non-Registration Event to
the  extent that all the Common Stock included in the Registrable Securities and
underlying the Securities is not included in an effective registration statement
as  of  and after the Effective Date at the conversion prices in effect from and
after  the  Effective  Date.
(b)     In addition to the foregoing, if there is a Non-Registration Event, then
     the  Purchaser  shall  have the right to demand that the Company redeem the
Note  for  consideration  equal  to  the greater of (i) the Mandatory Redemption
Payment  or  (ii)  a  fraction, of which the numerator is the amount of the Note
being  redeemed  and  of  which  the denominator is the Conversion Price, as set
forth  in  Section  3.1(b)  of  the  Note.

9.5     EXPENSES.  9.5     Expenses  All  expenses  incurred  by  the Company in
complying  with  Section  9, including, without limitation, all registration and
filing  fees,  printing  expenses,  fees  and  disbursements  of  counsel  and
independent  public  accountants  for  the Company, fees and expenses (including
reasonable  counsel  fees)  incurred  in  connection  with  complying with state
securities  or  "blue  sky"  laws,  fees  of  the  NASD, transfer taxes, fees of
transfer  agents  and  registrars,  fees  of, and disbursements incurred by, one
counsel  for  the  Purchaser,  and  costs  of insurance are called "REGISTRATION
EXPENSES".  All underwriting discounts and selling commissions applicable to the
sale  of  Registrable  Securities,  including  any fees and disbursements of any
special counsel to the Purchaser beyond those included in Registration Expenses,
     are  called  "SELLING  EXPENSES."
     The  Company  will  pay all Registration Expenses.  All Selling Expenses in
connection  with  each  registration statement under Section 9 shall be borne by
the  Purchaser.
9.6     INDEMNIFICATION.  9.6     Indemnification  and  Contribution
(a)     In  the  event of a registration of any Registrable Securities under the
Securities  Act  pursuant  to  Section  9,  the  Company will indemnify and hold
harmless  the  Purchaser,  and its officers, directors and each other person, if
any,  who  controls  the  Purchaser  within  the  meaning of the Securities Act,
against  any  losses, claims, damages or liabilities, joint or several, to which
the  Purchaser,  or  such persons may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
     respect  thereof)  arise  out  of or are based upon any untrue statement or
alleged  untrue  statement  of  any  material fact contained in any registration
statement  under  which  such  Registrable  Securities were registered under the
Securities  Act  pursuant  to  Section  9,  any  preliminary prospectus or final
prospectus  contained  therein, or any amendment or supplement thereof, or arise
out  of  or  are  based upon the omission or alleged omission to state therein a
material  fact required to be stated therein or necessary to make the statements
therein  not  misleading, and will reimburse the Purchaser, and each such person
for  any  reasonable legal or other expenses incurred by them in connection with
investigating  or  defending  any such loss, claim, damage, liability or action;
provided,  however,  that the Company will not be liable in any such case if and
to the extent that any such loss, claim, damage or liability arises out of or is
based  upon  an  untrue  statement  or  alleged  untrue statement or omission or
alleged  omission  so  made  in  conformity  with  information  furnished by the
Purchaser  or  any  such  person  in  writing  specifically  for use in any such
document.
(b)     In  the  event of a registration of the Registrable Securities under the
Securities  Act  pursuant  to  Section  9, the Purchaser will indemnify and hold
harmless the Company, and its officers, directors and each other person, if any,
     who  controls the Company within the meaning of the Securities Act, against
all  losses,  claims,  damages  or  liabilities,  joint or several, to which the
Company  or  such  persons  may  become  subject  under  the  Securities  Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect  thereof) arise out of or are based upon any untrue statement or alleged
untrue  statement  of  any material fact contained in the registration statement
under which such Registrable Securities were registered under the Securities Act
pursuant  to Section 9, any preliminary prospectus or final prospectus contained
therein,  or  any  amendment or supplement thereof, or arise out of or are based
upon  the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
and  will reimburse the Company and each such person for any reasonable legal or
other  expenses  incurred  by them in connection with investigating or defending
any  such  loss, claim, damage, liability or action, provided, however, that the
Purchaser  will  be  liable  in any such case if and only to the extent that any
such  loss,  claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished in writing to the Company by the Purchaser
specifically  for  use  in  any  such  document.
(c)     Promptly  after  receipt  by an indemnified party hereunder of notice of
the  commencement  of  any  action,  such indemnified party shall, if a claim in
respect  thereof  is to be made against the indemnifying party hereunder, notify
the  indemnifying  party  in  writing thereof, but the omission so to notify the
indemnifying  party shall not relieve it from any liability which it may have to
such  indemnified  party  other  than  under  this Section 9.6(c) and shall only
relieve  it from any liability which it may have to such indemnified party under
this Section 9.6(c) if and to the extent the indemnifying party is prejudiced by
such  omission. In case any such action shall be brought against any indemnified
party  and  it  shall notify the indemnifying party of the commencement thereof,
the indemnifying party shall be entitled to participate in and, to the extent it
shall  wish,  to  assume  and  undertake  the  defense  thereof  with  counsel
satisfactory  to such indemnified party, and, after notice from the indemnifying
party  to  such indemnified party of its election so to assume and undertake the
defense  thereof, the indemnifying party shall not be liable to such indemnified
party  under this Section 9.6(c) for any legal expenses subsequently incurred by
such  indemnified  party  in  connection  with  the  defense  thereof;  if  the
indemnified  party retains its own counsel, then the indemnified party shall pay
all  fees,  costs  and expenses of such counsel, provided, however, that, if the
defendants  in  any  such  action  include  both  the  indemnified party and the
indemnifying  party  and  the  indemnified party shall have reasonably concluded
that  there  may be reasonable defenses available to it which are different from
or  additional  to those available to the indemnifying party or if the interests
of the indemnified party reasonably may be deemed to conflict with the interests
of  the  indemnifying  party,  the  indemnified  parties shall have the right to
select  one  separate counsel and to assume such legal defenses and otherwise to
participate in the defense of such action, with the reasonable expenses and fees
of  such separate counsel and other expenses related to such participation to be
reimbursed  by  the  indemnifying  party  as  incurred.
(d)     In  order to provide for just and equitable contribution in the event of
joint  liability  under  the  Securities Act in any case in which either (i) the
Purchaser,  or  any  controlling  person  of  the  Purchaser,  makes a claim for
indemnification pursuant to this Section 9.6 but it is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction and
the expiration of time to appeal or the denial of the last right of appeal) that
such  indemnification  may not be enforced in such case notwithstanding the fact
that  this  Section  9.6  provides  for  indemnification  in  such case, or (ii)
contribution  under  the  Securities  Act  may  be  required  on the part of the
Purchaser  or  controlling  person  of  the Purchaser in circumstances for which
indemnification is provided under this Section 9.6; then, and in each such case,
the  Company  and the Purchaser will contribute to the aggregate losses, claims,
damages  or  liabilities  to  which they may be subject (after contribution from
others)  in  such  proportion  so that the Purchaser is responsible only for the
portion  represented  by  the  percentage  that the public offering price of its
securities  offered  by  the registration statement bears to the public offering
price  of  all  securities  offered  by  such  registration statement, provided,
however,  that,  in  any  such  case,  (A) the Purchaser will not be required to
contribute  any  amount  in  excess  of  the  public  offering price of all such
securities  offered  by  it  pursuant to such registration statement; and (B) no
person  or  entity guilty of fraudulent misrepresentation (within the meaning of
Section  10(f)  of  the Act) will be entitled to contribution from any person or
entity  who  was  not  guilty  of  such  fraudulent  misrepresentation.
10.     OFFERING  RESTRICTIONSERROR!  REFERENCE  SOURCE NOT FOUND..     Right of
First  Refusal.  ERROR!  REFERENCE  SOURCE  NOT  FOUND.     Offering
RestrictionsExcept as previously disclosed in the SEC Reports or in the Exchange
     Act Filings, or stock or stock options granted to employees or directors of
the  Company;  or  equity  or debt issued in connection with an acquisition of a
business  or  assets  by the Company; or the issuance by the Company of stock in
connection  with  the  establishment of a joint venture partnership or licensing
arrangement  (these  exceptions  hereinafter  referred  to  as  the  "EXCEPTED
ISSUANCES"),  the Company will not issue any securities with a variable/floating
conversion  feature  which  are  or  could  be  (by  conversion or registration)
free-trading  securities (i.e. common stock subject to a registration statement)
prior  to  the full repayment or conversion of the Note; provided, however, that
nothing  in  the foregoing shall prohibit the issuance of securities exempt from
registration  and  freely  tradeable pursuant to Rule 144 of the Securities Act.
In  addition,  if  the  Company  issues any shares of Common Stock or securities
convertible into shares of Common Stock at a discount to the market price of the
Common  Stock,  or  with  a conversion price that is at a discount to the market
price,  the  Company  will  not  grant demand registration rights, and will only
grant  piggy  back  registration rights upon the issuance of the Common Stock or
upon  the conversion of such securities into shares of Common Stock, as the case
may  be.
11.     SECURITY INTEREST.  As a condition of Closing, the Company will grant to
the  Purchaser  a  security  interest  in  its  assets  pursuant  to  a Security
Agreement.  The  Company  will  also  execute  all  such  documents  reasonably
necessary  to  memorialize  and  further protect the security interest described
above.
12.     MISCELLANEOUS12.     MISCELLANEOUS.
12.1     GOVERNING  LAW12.1     Governing  Law. This Agreement shall be governed
by  and  construed in accordance with the laws of the State of New York, without
regard  to  principles of conflicts of laws.  Any action brought by either party
against  the  other  concerning  the transactions contemplated by this Agreement
shall  be  brought only in the state courts of New York or in the federal courts
located  in  the  state of New York.  Both parties and the individuals executing
this  Agreement and other agreements on behalf of the Company agree to submit to
the  jurisdiction of such courts and waive trial by jury.  In the event that any
provision  of  this  Agreement  or  any  other agreement delivered in connection
herewith  is  invalid  or  unenforceable under any applicable statute or rule of
law,  then  such provision shall be deemed inoperative to the extent that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule  of law.  Any such provision which may prove invalid or unenforceable under
any  law  shall not affect the validity or enforceability of any other provision
of  any  agreement.
12.2     SURVIVAL12.2     Survival.  The  representations, warranties, covenants
and agreements made herein shall survive any investigation made by the Purchaser
     and  the  closing  of  the  transactions  contemplated hereby to the extent
provided  therein.  All  statements  as  to  factual  matters  contained  in any
certificate  or  other  instrument  delivered  by  or  on  behalf of the Company
pursuant hereto in connection with the transactions contemplated hereby shall be
deemed  to  be representations and warranties by the Company hereunder solely as
of  the  date  of  such  certificate  or  instrument.
12.3     SUCCESSORS  AND  ASSIGNS12.3     Successors  and  Assigns.  Except  as
otherwise  expressly  provided  herein, the provisions hereof shall inure to the
benefit  of,  and be binding upon, the successors, assigns, heirs, executors and
administrators  of  the  parties hereto and shall inure to the benefit of and be
enforceable  by each person who shall be a holder of the Securities from time to
time.
12.4     ENTIRE  AGREEMENT12.4     Entire  Agreement.  This  Agreement,  the
exhibits  and  schedules  hereto, the Related Agreements and the other documents
delivered  pursuant  hereto  constitute  the  full  and entire understanding and
agreement  between  the  parties with regard to the subjects hereof and no party
shall  be  liable  or  bound  to any other in any manner by any representations,
warranties, covenants and agreements except as specifically set forth herein and
     therein.
12.5     SEVERABILITY12.5     Severability.  In  case  any  provision  of  the
Agreement shall be invalid, illegal or unenforceable, the validity, legality and
     enforceability of the remaining provisions shall not in any way be affected
or  impaired  thereby.
12.6     AMENDMENT  AND  WAIVER12.6     Amendment  and  Waiver.
(a)     This  Agreement may be amended or modified only upon the written consent
of  the  Company  and  the  Purchaser.
(b)     The  obligations  of  the  Company and the rights of the Purchaser under
this  Agreement  may  be  waived only with the written consent of the Purchaser.
12.7     DELAYS  OR OMISSIONS12.7     Delays or Omissions.  It is agreed that no
delay  or omission to exercise any right, power or remedy accruing to any party,
upon any breach, default or noncompliance  by another party under this Agreement
     or  the  Related  Agreements, shall impair any such right, power or remedy,
nor  shall  it  be  construed  to  be  a  waiver  of any such breach, default or
noncompliance,  or  any  acquiescence  therein,  or of or in any similar breach,
default  or noncompliance thereafter occurring.  All remedies, either under this
Agreement,  the  Note or the Related Agreements, by law or otherwise afforded to
any  party,  shall  be  cumulative  and  not  alternative.
12.8     NOTICES12.8     Notices.  All  notices  required or permitted hereunder
shall  be  in  writing  and shall be deemed effectively given: (a) upon personal
delivery  to  the  party to be notified, (b) when sent by confirmed facsimile if
sent  during  normal  business  hours of the recipient, if not, then on the next
business  day,  (c)  five days after having been sent by registered or certified
mail,  return  receipt  requested, postage prepaid, or (d) one day after deposit
with  a  nationally  recognized overnight courier, specifying next day delivery,
with  written  verification of receipt.  All communications shall be sent to the
Company at the address as set forth on the signature page hereof, with a copy to
     Nimish P. Patel, Esq. Pollet, Richardson & Patel, 10900 Wilshire Boulevard,
Suite  500,  Los  Angeles, CA 90024, facsimile number (310) 208-1154, and to the
Purchaser  at  the  address  set  forth  on  the  signature page hereto for such
Purchaser,  with  a copy in the case of the Purchaser to Daniel M. Laifer, Esq.,
152  West  57th  Street,  4th  Floor, New York, NY 10019, facsimile number (212)
541-4434, or at such other address as the Company or the Purchaser may designate
by  ten  days  advance  written  notice  to  the  other  parties  hereto.
12.9     ATTORNEYS' FEES12.9     Attorneys' Fees.  In the event that any suit or
     action  is  instituted  to  enforce  any  provision  in this Agreement, the
prevailing  party  in  such dispute shall be entitled to recover from the losing
party  all  fees,  costs  and expenses of enforcing any right of such prevailing
party  under  or  with respect to this Agreement, including, without limitation,
such  reasonable  fees  and  expenses  of attorneys and accountants, which shall
include,  without  limitation,  all  fees,  costs  and  expenses  of  appeals.
12.10     TITLES AND SUBTITLES12.10     Titles and Subtitles.  The titles of the
     sections  and subsections of the Agreement are for convenience of reference
only  and  are  not  to  be  considered  in  construing  this  Agreement.
12.11     FACSIMILE  SIGNATURES;  COUNTERPARTS12.11     Counterparts.  This
Agreement  may  be  executed  by  facsimile  signatures  and  in  any  number of
counterparts,  each  of  which  shall  be an original, but all of which together
shall  constitute  one  instrument.
12.12     BROKER'S  FEES12.12     Broker's  Fees.  Each  party hereto represents
and  warrants  that, except as each party may have notified the other in writing
on  or  prior to the date hereof, no agent, broker, investment banker, person or
firm  acting on behalf of or under the authority of such party hereto is or will
be  entitled to any broker's or finder's fee or any other commission directly or
indirectly  in connection with the transactions contemplated herein.  Each party
hereto  further  agrees  to indemnify each other party for any claims, losses or
expenses  incurred by such other party as a result of the representation in this
Section  11.12  being  untrue.
12.13     CONSTRUCTION12.13     Construction.  Each  party acknowledges that its
legal  counsel participated in the preparation of this Agreement and, therefore,
stipulates  that  the  rule  of construction that ambiguities are to be resolved
against  the  drafting  party shall not be applied in the interpretation of this
Agreement  to  favor  any  party  against  the  other.

<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  the SECURITIES
PURCHASE  AGREEMENT  as  of  the  date  set forth in the first paragraph hereof.

COMPANY:     PURCHASER:
GLOBAL  SPORTS  &  ENTERTAINMENT,  INC.     13.  LAURUS  MASTER  FUND,  LTD.
By:     14.
Name:     By:
Title:     15.Name:
Address:     15.1  Address:   c/o  Ironshore  Corporate  Services  Ltd.
5092  South  Jones  Blvd.     15.2  P.O.  Box 1234 G.T., Queensgate House, South
Church  Street
Las  Vegas,  Nevada  89118     Grand  Cayman,  Cayman  Islands

<PAGE>

14.
                                LIST OF EXHIBITS
Form  of  Offering  Convertible  Note     Exhibit  A
Form  of  Warrant     Exhibit  B
Form  of  Opinion     Exhibit  C

<PAGE>
19.          A-1
                                    EXHIBIT A
                            FORM OF CONVERTIBLE NOTE

<PAGE>
20.          B-1
                                    EXHIBIT B
                                 FORM OF WARRANT

<PAGE>
                                    EXHIBIT C
                                 FORM OF OPINION
          1.     The  Company  is  a  corporation  validly  existing and in good
standing under the laws of the State of Delaware and has all requisite corporate
power and authority to own, operate and lease its properties and to carry on its
business  as  it  is  now  being  conducted.

          2.     The  Company has the requisite corporate power and authority to
execute,  deliver  and  perform  its obligations under the Agreement and Related
Agreements.  All  corporate  action on the part of the Company and its officers,
directors  and stockholders necessary for (i) the authorization of the Agreement
and  Related  Agreements  to  which  each is a party, and the performance of all
obligations  of  the  Company  thereunder  at  the  Closing,  and  (ii)  the
authorization,  sale,  issuance  and  delivery of the Securities pursuant to the
Agreement  and  the  Related Agreements has been taken.  The Note Shares and the
Warrant  Shares, when issued pursuant to and in accordance with the terms of the
Agreement and upon delivery, shall be validly issued and outstanding, fully paid
and  non  assessable.

          3.     The  execution,  delivery and performance of the Agreement, the
Note  or  the  Related  Agreements  by  the  Company and the consummation of the
transactions  contemplated  by any thereof, will not, with or without the giving
of  notice  or  the  passage  of  time  or  both:

               (a)     Violate  the  provisions  of the Charter or bylaws of the
Company;  or

               (b)     To  the  best  of  such  counsel's knowledge, violate any
judgment,  decree,  order  or  award  of  any  court  binding  upon the Company.

          4.     The  Agreement and Related Agreements to which the Company is a
party  constitute and the Note and Warrant, upon their issuance will constitute,
valid  and  legally  binding  obligations  of  the  Company, and are enforceable
against  the  Company  in  accordance with their respective terms, except (a) as
limited  by  applicable  bankruptcy,  insolvency,  reorganization, moratorium or
other  laws  of  general application affecting enforcement of creditors' rights,
and (b) general principles of equity that restrict the availability of equitable
or  legal  remedies.

          5.     The  sale of the Note and the subsequent conversion of the Note
into  Note Shares are not subject to any preemptive rights or, to such counsel's
knowledge,  rights  of  first  refusal  that  have  not  been properly waived or
complied  with.  The  sale  of  the  Warrant  and the subsequent exercise of the
Warrant  for Warrant Shares are not subject to any preemptive rights or, to such
counsel's  knowledge, rights of first refusal that have not been properly waived
or  complied  with.

          6.     Assuming  the accuracy of the representations and warranties of
the  Purchaser  contained  in the Agreement, the offer, sale and issuance of the
Securities  will  be exempt from the registration requirements of the Securities
Act.  To  the  best of such counsel's knowledge, neither the Company, nor any of
its  affiliates,  nor  any person acting on its or their behalf, has directly or
indirectly  made  any offers or sales of any security or solicited any offers to
buy  any  security  under  circumstances  that  would  cause the offering of the
Securities  pursuant  to this Agreement to be integrated with prior offerings by
the  Company  for purposes of the Securities Act which would prevent the Company
from  selling  the  Securities pursuant to Rule 506 under the Securities Act, or
any  applicable  exchange-related  stockholder  approval  provisions.

          7.     Except as disclosed in the Agreement, there is no action, suit,
proceeding or investigation pending or, to the best of such counsel's knowledge,
currently  threatened against the Company that prevents the right of the Company
to  enter into this Agreement or any of the Related Agreements, or to consummate
the transactions contemplated thereby.  To the best of such counsel's knowledge,
the  Company  is  not  a  party or subject to the provisions of any order, writ,
injunction,  judgment  or  decree  of  any  court  or  government  agency  or
instrumentality;  nor  is there any action, suit, proceeding or investigation by
the  Company  currently  pending  or  which  the  Company  intends  to initiate.

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