Document:

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Exhibit 10.4 -- Agreements with Lloyds regarding Financing

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                                FUNDING AGREEMENT

         This Agreement is entered into this 22th day of October, 1999 by and
between LLOYDS BAHAMAS SECURITIES, LTD. ("Lloyds") and SELECT MEDIA
COMMUNICATIONS, INC., a New York corporation (the "Company"). The term the
"Company" also includes any entity into which the Company is merged, which
acquires or is acquired by the Company.

                                    RECITALS

         WHEREAS, the Company is seeking funding of $1,000,000 through sale of
shares of common stock (the "Shares" of "Common Stock") for cash flow and
operations purposes; and

         WHEREAS, the Company will undertake a 1 for 200 reverse stock split as
a condition of this Agreement; and

         WHEREAS, Lloyds is willing to act as agent to procure such funds from
its clients under the terms set forth below; and

         WHEREAS, Lloyds may also make arrangements with the Company's creditors
and shareholders to attempt to settle any disputes between each shareholder and
the Company,

         NOW, THEREFORE, in consideration of the mutual terms and conditions;
set forth below, and intending to be legally bound, the parties hereto agree as
follows:

Section 1         SALE OF SHARES; ISSUANCE OF SHARES

1.1.     Subject to the terms of this Agreement, Lloyds, as agent, shall
         purchase 4,000,000 Shares from the Company on a post-split basis (the
         "Post-Split Shares") for the aggregate price of $1,000,000 (the
         "Purchase Price") in an offering exempt under Rule 504 of Regulation
         D, which the Company will use for operating capital and expenses.

1.2.     Disbursal of Funds. Lloyds, as agent, will provide the Purchase Price
         to the Company as soon as the proper offering documents are available,
         with the first tranche of $200,000 to be disbursed as a note
         convertible into Post-Split Shares issued pursuant to the Rule 504
         Offering upon the signing of this Agreement. All funding under this
         Agreement will be provided within 45 days of the signing of this
         Agreement.

1.3.     Issuance of Shares. In consideration for Lloyds, as agent, entering
         into this Agreement, arranging for the funding and settling claims
         with creditors and shareholders, the Company will issue to Lloyds, or
         to its order, a total of 1,000,000 Post-Split Shares of Common Stock
         subject to restrictions under Rule 144 and as otherwise agreed between
         Lloyds and such persons.

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SECTION 2         CONDITIONS TO BE MET

2.1.     Before Lloyds is obligated to provide any funding under this Agreement,
         the Company must take the following actions by Board of Directors
         ("Board") approval:

         2.1.1.   Approve this Agreement and all of its terms;
         2.1.2.   A 1 for 200 reverse stock split effective as soon as
                  practicable;
         2.1.3.   Elect a sufficient number of new members of the Company's
                  Board to give such new directors a majority of seats on the
                  Board, with such new members to be named by Lloyds;
         2.1.4.   Approve new agreements with the Company's key employees, as
                  described on Exhibits A, B, C and D.

2.2.     The Company's choice of legal counsel and independent accountant must
         be acceptable to Lloyds.

2.3.     The Company may not issue additional Shares of Common Stock (except as
         provided in this Agreement) without the approval of the Board
         (including the Lloyds designees).

2.4.     All management salaries must be capped at $200,000.

2.5.     The Board must approve all new hires with salaries of over $50,000 per
         year, and the hiring of any family members of current management.

2.6.     All employees, officers, directors and affiliates must forgive in
         writing the repayment of any monies owed by the Company to them.

2.7.     The Board will name Joseph Tarsia as Co-Chairman.

2.8.     The Company will enter into the agreement with Nationsmusic.com, Inc.
         ("Nationsmusic") whereby Nationsmusiic will be merged into the Company
         in exchange for 3,000,000 Post-Split Shares and John P. Serubo will be
         hired as executive producer of all Nationsmusic projects at a salary to
         be determined by the Company's Board of Directors.

2.9.     The Board must approve any expenditure over $15,000.

2.10.    The Company may not seek other financing of any kind, or discuss the
         Company's financing or capitalization with any party, including, but
         not limited to, investment bankers, fundraisers, bankers or others,
         without the express written consent of Lloyds and Bryn Mawr Investment
         Group, Inc.

SECTION 3         USE OF PROCEEDS

3.1.     The Company will use the proceeds of the funding for the Company's
         reasonable and ordinary

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         day-to-day expenses and to resolve the Company's outstanding
         liabilities.

3.2.     Within ten days of signing, the Company will give Lloyds a detailed use
         of proceeds for the $1,000,000 funding. Within thirty (30) business
         days of the signing of this Agreement, the Company will provide Lloyds
         with a detailed budget approved by the Company's Board for the next
         twelve (12) months ("Budget"). The Budget will detail the uses of funds
         for operations.

3.3.     The Company is a non-reporting company. Select Media will file the
         necessary documents and take all other steps necessary to become a
         reporting company under the Securities Exchange Act of 1934 at the
         request of Lloyds.

SECTION 4         REPRESENTATIONS AND WARRANTIES

4.1.     The Company represents and warrants to Lloyds and its clients as
         follows:

         4.1.1    The Company has all necessary power to carry on its present
                  business and has full right, power and authority to enter
                  into this Agreement, make the agreements and representations
                  herein, issue the Shares and otherwise perform and consummate
                  the transactions contemplated by this Agreement. This
                  Agreement does not, and the performance or observance by the
                  Company of any of the matters and things herein provided will
                  not constitute an event of default or event which with the
                  lapse of time, the giving of notice or both would constitute
                  an event of default under any other agreement to which the
                  Company is a party or by which it is bound.
         4.1.2    None of the information or representations provided by the
                  Company to Lloyds, whether in written, oral or electronic
                  form, including the information provided in this Agreement,
                  contained any misrepresentations of any material facts or
                  omitted any material facts necessary to keep the information
                  not misleading. None of the information the Company will
                  provide in the future to Lloyds, whether in written, oral or
                  electronic form, will contain any misrepresentations of any
                  material facts or omit any material facts necessary to keep
                  the information not misleading.
         4.1.3    The Company is a duly organized and validly existing
                  corporation under the laws of the State of New York. The
                  Company is duly qualified and in good standing in every
                  jurisdiction in which any property owned, leased or operated
                  by it or the nature of the business conducted by it, if any,
                  makes such qualification necessary to avoid material
                  liability or material interference in its business
                  operations, and is not subject to any agreement, commitment
                  or understanding which restricts or may restrict the conduct
                  of its business in any jurisdiction or location. All of the
                  Company's outstanding debt or equity securities were issued
                  in full compliance with all applicable federal and state
                  securities laws.
         4.1.4    Except as disclosed to Lloyds in writing on Schedule 4.1(d),
                  the Company has duly reported, fully paid and discharged all
                  federal, state, foreign, county and local income, profits,
                  franchise, occupation, property, sales, use, gross receipts
                  and other taxes (including any interest or penalties relating
                  thereto) and assessments which are due and

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                  payable by the Company, and there are no unpaid taxes which
                  are, or could become a lien on the properties and assets of
                  the Company, except as have been incurred in the normal
                  course of business of the Company. The Company has filed all
                  tax returns of any kind required to be filed and has paid or
                  accrued any taxes due. If such taxes have been accrued, the
                  Company has sufficient funds segregated to pay such taxes.
         4.1.5    The Board has authorized the execution and performance of this
                  Agreement and the issuance of the Shares. In addition, the
                  Board has authorized the additional Board seats, with the new
                  directors to be nominated by Lloyds, subject to the formal
                  approval of the existing Board members, which approval shall
                  not be unreasonably withheld.

SECTION 5         COVENANTS

5.1.     From the date hereof and so long as any payment to Lloyds or its
         clients remains due or Lloyds or its clients own any equity securities
         of the Company, the Company covenants and agrees that:
         5.1.1.   Preservation of Existence. The Company will preserve and keep
                  in full force and effect its existence as a corporation under
                  the laws of the State of New York and its qualification to do
                  business in good standing in New York and will not amend or
                  modify or permit the amendment or modification of its
                  certificate of incorporation under which it is formed in any
                  manner without the express written consent of Lloyds.
         5.1.2.   Inspection of Records. The Company will permit Lloyds or its
                  representatives at all reasonable times, and as often as
                  Lloyds may reasonably request, to examine and copy all books
                  and records and other papers relating to the organization or
                  business of the Company.

Section 6         EVENTS OF DEFAULT

6.1.     The following Events of Default will trigger immediate return of the
         amounts advanced to the Company up to the date of the Default and will
         cease any further obligations to make advances under this Agreement:
         6.1.1.   Any material misrepresentation by the Company, its officers,
                  directors, employees, consultants or affiliates to Lloyds.
         6.1.2.   The final determination of any legal action against the
                  Company or its management by any shareholder or creditor, or
                  by any other party arising from any fraud or misrepresentation
                  by the Company or its officers or directors.

SECTION 7         MISCELLANEOUS PROVISIONS

7.1.     Notices. All communication regarding this Agreement shall be in writing
         and shall be deemed to be given or made when served personally or when
         deposited in the United States mail addressed, if to the Company at 666
         Third Avenue, NY, NY 10017, Attention: Chief Executive Officer, or if
         to the Lloyds, at Saffrey Square, Suite 106, P.O. Box N-7474, Nassau,
         N.P., the Bahamas, Attention T. K. Kessler, Managing Director, or at
         such other address as shall be designated by any party hereto in
         writing to the other party delivered pursuant to this paragraph.

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7.2.     Default. Should either party hereto default in any of the covenants,
         conditions, or promises contained herein, the defaulting party shall
         pay all costs and expenses, including a reasonable attorney's fee,
         which may arise or accrue therefrom, or in pursuing any remedy provided
         hereunder or by the statutes of any state.

7.3.     Successors and Assigns.  This Agreement shall be binding upon and inure
         to the benefit of the parties hereto, their successors and assigns.

7.4.     Holidays. If any obligation or act required to be performed hereunder
         shall fall due on a Saturday, Sunday or other day which is a legal
         holiday established by the State of New York, such obligation or act
         may be performed on the next succeeding business day with the same
         effect as if it had been performed upon the day appointed.

7.5.     Computation of Time.  The time in which any obligation or act provided
         by this Agreement is to be performed is computed by excluding the first
         day and including the last, unless the last day is a holiday, in which
         event such day shall also be excluded.

7.6.     Partial Invalidity. If any term, covenant, condition or provision of
         this Agreement or the application thereof to any person or circumstance
         shall to any extent be invalid or unenforceable, the remainder of this
         Agreement or application of such term or provision to persons or
         circumstances other than those as to which it is held to be invalid or
         unenforceable shall not be affected thereby and each term, covenant,
         condition or provision of this Agreement shall be valid and shall be
         enforceable to the fullest extent permitted by law.

7.7.     No Other Agreements.  This Agreement constitutes the entire Agreement
         between the parties and there is and will be no oral representations
         that will be binding upon any of the parties hereto.

7.8.     Rights are Cumulative. The rights and remedies granted to the parties
         hereunder shall be in addition to and cumulative of any other rights or
         remedies either may have under any document or documents executed in
         connection herewith or available under applicable law. No delay or
         failure on the part of a party in the exercise of any power or right
         shall operate as a waiver thereof nor as an acquiescence in any default
         nor shall any single or partial exercise of any power or right preclude
         any other or further exercise thereof or the exercise of any other
         power or right.

7.9.     Waiver.  None of the provisions hereof may be changed, waived,
         terminated or discharged orally, but only by an instrument in writing
         signed by the party against whom enforcement of the change, waiver,
         termination or discharge is sought.

7.10.    Survival of Covenants, Etc. All covenants, representations, and
         warranties made herein to any parties or in any statement or document
         delivered to any party hereto, shall survive the making of this
         Agreement and shall remain in full force and effect until the
         obligations of such party hereunder have been fully satisfied.

7.11.    Further Action.  The parties hereto agree to execute and deliver such
         additional documents and

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         to take such other and further action as may be required to carry out
         fully the transaction(s) contemplated herein.

7.12.    Headings.  The descriptive headings of the various Sections or parts of
         this Agreement are for convenience only and shall not affect the
         meaning or construction of any of the provisions hereof.

7.13.    Counterparts. This Agreement may be executed in two or more partially
         or fully executed counterparts, each of which shall be deemed an
         original and shall bind the signatory, but all of which together shall
         constitute but one and the same instrument, provided that Purchaser
         shall have no obligations hereunder until all Shareholders have become
         signatories hereto.

7.14.    For this Agreement to be effective, the Company must sign and return a
         signed copy by mail, courier or facsimile (215-790-0509) to Lloyds'
         attorney, Christopher P. Flannery, Esq., 200 South Broad Street, Sixth
         Floor, Philadelphia, 19102.

         IN WITNESS WHEREOF, the parties hereto executed the foregoing Funding
Agreement as of the day and year first above written.

                                         LLOYDS BAHAMAS SECURITIES, LTD.

                                         By: /s/ T.K. KESSLER
                                             -----------------------------------
                                                T. K. Kessler, Managing Director

                                         SELECT MEDIA COMMUNICATIONS, INC.

                                         By: /s/ MITCH GUTKOWSKI
                                             -----------------------------------

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                          ADDENDUM TO FUNDING AGREEMENT

         This Addendum to the Funding Agreement between Select Media and Lloyds
is made this 1st day of November, 1999. Unless otherwise noted, all terms
capitalized in this Addendum have the same meaning as in the Funding Agreement.

         The parties hereby amend the Funding Agreement as follows:

                  1.       In exchange for its initial $1,000,000 in funding,
Lloyds or its designee will receive 4,500,000 New Shares.

                  2.       Select will authorize a 1 for 300 reverse stock split
for its Common Stock, effective as soon as practicable.

                  3.       Select will arrange to renew its listing with
Standard & Poors as soon as possible, at Select's sole expense.

                  4.       Select will arrange to file a Form 10-SB Registration
Statement, including audited financial statements as soon as possible, but
Select will not file any documents without the consent of Lloyds.

         Except as specifically amended above, all other terms, conditions,
representations and warranties found in the Funding Agreement remain in full
force and effect.

         Executed this 1st day of November, 1999.

Select Media Communications, Inc.

By:  /S/ MITCH GUTKOWSKI
     -------------------------------

Lloyds Bahamas Securities, LTD

By:  /S/ T. K. KESSLER
     -------------------------------

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                                FUNDING AGREEMENT

         This Agreement, entered into this 15th day of January, 2000 by and
between Lloyds Bahamas Securities, Ltd. (hereinafter "Lloyds") and Select Media
Communications, Inc., a New York corporation (hereinafter the "Company").

                                    RECITALS

         WHEREAS, Company is seeking funding through sale shares of its Common
Stock to investors for use in the business of Company; and

         WHEREAS, Lloyds has identified such investors (the "Investors") who are
willing to invest sums in the Company under the terms set forth below;

         NOW, THEREFORE, in consideration of the mutual terms and conditions;
set forth below, and intending to be legally bound, the parties hereto agree as
follows:

SECTION 1         INVESTMENT

1.01              Amount. Subject to the terms stated herein, the Investors
                  shall purchase up to 4,000,000 shares of Common Stock of the
                  Company ("Shares") for a price of $0.50 per Share (up to
                  $2,000,000 in the aggregate) (the "Investment"). The Investors
                  will fund the Company on an as-needed basis from the date
                  hereof until June 30, 2000. Lloyds, as agent of the Investors,
                  will advance funds to the Company as needed for cash flow
                  purposes or expenses, which will be credited to the
                  Investment. At any time the Company needs funds, Lloyds, as
                  agent of the Investors has the option of providing or not
                  providing funding on the terms of this Agreement.

1.02              Disbursal of Funds.  Disbursal of the Investment shall occur
                  as needed by the Company.

SECTION 2         USE OF PROCEEDS

                  The Company will use the proceeds of this Investment for
working capital and general business expenses. At each requested funding, the
Company will disclose the particular uses and Lloyds has the option of providing
the funding in its discretion.

SECTION 3         REPRESENTATIONS AND WARRANTIES

                  The Company represents and warrants to Lloyds that all the
                  representations and warranties heretofore made to Lloyds or
                  any Investors are still in full force and effect.

SECTION 4         MISCELLANEOUS PROVISIONS

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4.01              Notices. All communication provided for herein shall be in
                  writing and shall be deemed to be given or made when served
                  personally or when deposited in the United States mail
                  addressed to the addresses appearing on the signature page of
                  this Agreement, or at such other addresses as shall be
                  designated by any party hereto in written notice to the other
                  party hereto delivered pursuant to this paragraph.

4.02              Default.  Should either party hereto default in any of the
                  covenants, conditions, or promises contained herein, the
                  defaulting party shall pay all costs and expenses, including a
                  reasonable attorney's fee, which may arise or accrue
                  therefrom, or in pursuing any remedy provided hereunder or by
                  the statutes of any state.

4.03              Assignment.  The Company may not assign this Agreement or any
                  related documents in whole or in part without the prior
                  written consent of Lloyds.

4.04              Successors and Assigns.  This Agreement shall be binding upon
                  and inure to the benefit of the parties hereto, their
                  successors and assigns.

4.05              Holidays. If any obligation or act required to be performed
                  hereunder shall fall due on a Saturday, Sunday or other day
                  which is a legal holiday established by the State of Florida,
                  such obligation or act may be performed on the next succeeding
                  business day with the same effect as if it had been performed
                  upon the day appointed.

4.06              Computation of Time.  The time in which any obligation or act
                  provided by this Agreement is to be performed is computed by
                  excluding the first day and including the last, unless the
                  last day is a holiday, in which event such day shall also be
                  excluded.

4.07              Partial Invalidity. If any term, covenant, condition or
                  provision of this Agreement or the application thereof to any
                  person or circumstance shall to any extent be invalid or
                  unenforceable, the remainder of this Agreement or application
                  of such term or provision to persons or circumstances other
                  than those as to which it is held to be invalid or
                  unenforceable shall not be affected thereby and each term,
                  covenant, condition or provision of this Agreement shall be
                  valid and shall be enforceable to the fullest extent permitted
                  by law.

4.08              No Other Agreements.  This Agreement constitutes the entire
                  Agreement between the parties and there are and will be no
                  oral representations which will be binding upon any of the
                  parties hereto.

4.09              Rights are Cumulative. The rights and remedies granted to the
                  parties hereunder shall be in addition to and cumulative of
                  any other rights or remedies either may have under any
                  document or documents executed in connection herewith or
                  available under applicable law. No delay or failure on the
                  part of a party in the exercise of any power or right shall
                  operate as a waiver thereof nor as an acquiescence in any
                  default nor shall any single or partial exercise of any power
                  or right preclude any other or further exercise thereof or the

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                  exercise of any other power or right.

4.10              Waiver. None of the provisions hereof may be changed, waived,
                  terminated or discharged orally, but only by an instrument in
                  writing signed by the party against whom enforcement of the
                  change, waiver, termination or discharge is sought.

4.11              Survival of Covenants, Etc. All covenants, representations,
                  and warranties made herein to any parties or in any statement
                  or document delivered to any party hereto, shall survive the
                  making of this Agreement and shall remain in full force and
                  effect until the obligations of such party hereunder have been
                  fully satisfied.

4.12              Further Action.  The parties hereto agree to execute and
                  deliver such additional documents and to take such other and
                  further action as may be required to carry out fully the
                  transaction(s) contemplated herein.

4.13              Headings.  The descriptive headings of the various Sections or
                  parts of this Agreement are for convenience only and shall not
                  affect the meaning or construction of any of the provisions
                  hereof.

4.14              Counterparts. This Agreement may be executed in two or more
                  partially or fully executed counterparts, each of which shall
                  be deemed an original and shall bind the signatory, but all of
                  which together shall constitute but one and the same
                  instrument, provided that Purchaser shall have no obligations
                  hereunder until all Shareholders have become signatories
                  hereto.

         IN WITNESS WHEREOF, the parties hereto executed the foregoing Agreement
as of the day and year first above written.

LLOYDS BAHAMAS SECURITIES, LTD.             SELECT MEDIA COMMUNICATIONS, INC.

By: /S/ THOMAS KESSLER                       By: /S/ MITCH GUTKOWSKI
    -------------------------------------       --------------------------------
       Thomas Kessler, Managing Director            Mitch Gutkowski, President

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Exhibit 10.5 -- Non-Binding Letter of Intent with Bryn Mawr Investment Group
                regarding Financing

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                                COMMITMENT LETTER

                                October 24, 1999

Mitch Gutkowski, Chairman
SELECT MEDIA COMMUNICATIONS, INC.
666 Third Avenue
New York, NY 10017

Dear Mr. Gutkowski:

         Reference is made to our recent discussions relating to a proposed
financing by Select Media Communications, Inc. (the "Company") through the sale
of the Company's $.001 par value common stock (the "Shares" of "Common Stock")
or securities convertible into Shares of Common Stock (the "Offering"), as
described below. The Company will raise a total of $10,000,000 through the sale
of Common Stock in several tranches. The first tranche of $1,000,000 will be
available by December 6, 1999. The second tranche of $4.5 million will be
available by the end of the first quarter of 2000, through a private placement,
with the balance raised through a private or public offering by the second
quarter of 2000. On the basis of our discussions, financial materials which you
have submitted to us and representations which you have made to us describing
the Company, its principals, the proposed business activities of the Company,
and the Company's operations and financial condition, Bryn Mawr Investment
Group, Inc. (the "Placement Agent") hereby confirms its intention to act as the
placement agent for the Offering on a best efforts basis upon the following
terms and conditions.

         1. Offering Materials. The Company will prepare private placement
memoranda (the "Offering Memoranda"), together with exhibits, conforming in all
respects to the requirements of Rules 504 or 506 of Regulation D and such state
"blue sky" laws as may apply to this Offering. The Company will prepare and file
Form Ds for the Offering with the United States Securities and Exchange
Commission (the "SEC"). The Company has selected Christopher P. Flannery,
Esquire, as counsel, who is qualified and experienced in the preparation of
filings under the Securities Act of 1933 (the "1933 Act") to prepare the
Offering Memoranda. All financial statements contained in the Offering Memoranda
will be in form and content satisfactory to the Placement Agent and to the
Placement Agent's counsel, and will have been prepared and reported on by
independent certified public accountants satisfactory to the Placement Agent.
The proposed Offering Memoranda will be submitted to the Placement Agent and to
the Placement Agent's counsel as soon as possible before the Company proposes to
file each such Offering Memorandum with any state. The proposed uses of proceeds
shall be subject to the approval of the Placement Agent. The content of any oral
comments and copies of all comment letters from any state securities authority
shall immediately be supplied to the Placement Agent and its counsel.

         2. Placement Agent's Counsel. The Placement Agency Agreement, the
Consulting

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Agreement, Selected Dealers Agreement and other placement documents
("Underwriting Documents") shall be prepared by counsel for the Placement Agent.
All corporate proceedings undertaken by the Company and other legal matters
which relate to the Offerings and other related transactions shall be
satisfactory in all material respects to counsel for the Placement Agent.

         3. Offerings. The Company proposes to offer through the Placement Agent
and/or selected dealers selected by the Placement Agent ("Selected Dealers"), up
to an aggregate of $10,000.00. The Placement Agent contemplates, subject to
paragraph 22 hereof, to place this Offering on a "best efforts, minimum or none"
basis. Pending completion of the financing contemplated herein, the Company
agrees that it will not negotiate with any other placement agent, underwriter or
person relating to a possible public or private offering or placement of its
securities. The Offerings may be done in stages.

         4. Price and Compensation Adjustments. The Offering Price of the Shares
will be subject to change by the Placement Agent prior to the effective date of
the Offering Memoranda. The Placement Agent shall also have the right to adjust
any item of the Placement Agent's compensation in order to comply with NASD
guidelines.

         5. Closings. Delivery of the certificates for the Shares purchased
through the Placement Agent and payments therefor shall be made at the principal
offices of the Placement Agent (the "Closing") on the third (3rd) full business
day following the Date on which subscriptions for at least the Minimum Offering
have been deposited into escrow and become available funds (the "Initial
Closing"), subject to the right of the Placement Agent to postpone the Initial
Closing until all conditions to Closing have been satisfied. After an Initial
Closing has been held, the Company and the Placement Agent may hold subsequent
Closings at their mutual convenience.

         6. Future Sales. It is understood that during the period of the
proposed Offering and for one (1) year from the date of the Final Closing, the
Company will not issue, sell or otherwise dispose of any of its equity or
long-term debt securities without the Placement Agent's prior written consent.
Prior to the Initial Closing, the Company will cause each of its officers,
directors and 5% or greater stockholders who own any of the Company's
outstanding Shares or any warrants or options to purchase Common Stock, to enter
into an undertaking to the Placement Agent pursuant to the terms of which such
stockholder will agree not sell to the public any Shares owned directly or
indirectly by him, for a period of one (1) year from the Initial Closing of the
Offering without the Placement Agent's prior written consent.

         7. Indemnification. It is understood that the proposed Placement Agent
Agreement will provide for certain indemnification between the Company and the
Placement Agent as to certain liabilities, including liabilities under the 1933
Act, as amended. The Company agrees to indemnify and hold the Placement Agent
harmless from any and all claims, costs, expenses or damages (including
attorney's fees) arising out of this Letter of Intent and the Offering.

         8. Due Diligence. In order to assist the Placement Agent with its due
diligence

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investigation, the Company shall make all documents and other information
relating to the Company's affairs available upon request to the Placement Agent
and its attorneys at the Placement Agent office and to furnish copies of any
such documents upon request of the Placement Agent. Documents which must be made
available to Placement Agent's counsel as soon as possible, include, but are not
limited to, the Company's Articles of Incorporation and all amendments thereto,
By-Laws, Minutes of all of the Company's Directors and Stockholders Meetings,
all financial statements and complete copies of any material contracts, leases
and agreements, to which the Company is a party. The Company agrees to
facilitate visits by the Placement Agent with the Company's management personnel
and to permit due diligence on-site inspections by the Placement Agent and its
counsel of the Company's offices, facilities and plants. The Company will
furnish the Placement Agent at the earliest practicable date with a business
plan showing projected cash flow (or deficiencies) covering a three-year period
and reconciled to the proposed Use of Proceeds sections of the Offering
Memoranda. The Company also agrees, prior to the Initial Closing, to make a
member of its senior management available to appear at the Placement Agent's
offices for purposes of making a due diligence presentation. All costs and
expenses associated with such appearance shall be borne solely by the Company.

         9. Capital Structure, Dilution, Employee Benefit Plans. The capital
structure of the Company immediately preceding the Offering, the contemplated
dilution to the investors, and the Company's business plan shall be acceptable
to the Placement Agent. No other classes or series of capital stock shall exist.
From the date hereof until completion of the Offering, the Company shall not
issue any Common Stock, options, Warrants or other rights to purchase securities
of the Company without the Placement Agent's prior written consent. As of June
30, 1999, the Company has 9,403,753 Shares of Common Stock issued and
outstanding.

         10. Blue-Sky Laws. It is understood and agreed between the Company and
the Placement Agent that it shall be the obligation of the Company to qualify,
at its sole cost and expense, the sale of the Shares in the state listed on
Exhibit A. Copies of all applications for the exemption from registration of the
Shares as well as all related documents filed with the various state securities
agencies shall be supplied to counsel for the Placement Agent. Counsel for the
Company shall prepare and provide to the Placement Agent a signed Preliminary
Blue Sky Memorandum when the Offering Memoranda is filed and a Final Blue Sky
Memorandum concurrently with the Initial Closing, such memoranda (the "Blue Sky
Memoranda") to be updated as required. Such Blue Sky Memoranda shall specify,
among other things, all states in which the Offerings may be offered and/or
sold.

         11. Commissions. The Placement Agent will receive as compensation a
sales commission of 12% of the Offering Price of all Shares sold through the
Placement Agent and for which the Company accepts subscriptions at a Closing.

         12. Placement Agent's Expense Allowance. It is understood and agreed
that the Company shall reimburse the Placement Agent for its expenses incurred
during the Offering on a non-accountable basis, in an amount equal to two
percent (2%) of the gross proceeds derived from the Offering.

                                       50
<PAGE>   5

         13. Placement Agent's Warrants. At the Final Closing, the Company will
sell to the Placement Agent Common Stock Purchase Warrants ("Placement Agent's
Warrants"), for an aggregate purchase price of $100, entitling the Placement
Agent to purchase one Share of the Company's Common Stock for each one hundred
Shares of the Company's Common Stock which have been sold in the Offering. The
Placement Agent's Warrants shall be non-exercisable for a period of twelve (12)
months following the Initial Closing. Also, the Placement Agent's Warrants will
contain standard anti-dilution provisions acceptable to the Placement Agent. The
Placement Agent's Warrants will be exercisable for a period of four (4) years,
such period to commence twelve (12) months after the Effective Date and if the
Placement Agent's Warrants are not exercised during this term, they shall be
their terms automatically expire. The exercise price of the Placement Agent's
Warrants hall be 100% of the per share Offering Price in the Offering. The
Company will set aside and at all time shave available a sufficient number of
Shares of its Common Stock to be issued upon the exercise of the Placement
Agent's Warrants to be sold to the Placement Agent ("Warrant Stock"). The
Placement Agent's Warrants will not be transferable to anyone except to officers
of the Placement Agent, the Selected Dealers and by operation of law.

         14. Registration Rights. The Company agrees that the Shares sold in the
Offering and the Warrant Stock will carry piggy-back registration rights
exercisable at any time within the period commencing with the Final Closing of
the Offering and ending five (5) years after the Final Closing, but no more than
once, the Company will add to the Shares to be registered in a contemplated
registration statement under the 1933 Act, as amended, registering or qualifying
as the case may be, Shares and the Placement Agent's Warrant Stock; provided,
however, that the Company will not be required to add any Shares or Warrant
Stock to a registration statement on Forms S-4 or S-8, or any other
inappropriate form. The Company agrees to use its best efforts to cause the
above filing to become effective. All expenses of such registration or
qualification, including, but not limited to, legal, accounting, and printing
fees, will be borne by the Company, but the Company shall not be responsible for
the cost of any separate counsel to review the registration statement on behalf
of or to advise the selling stockholders. The registration rights of the holders
of the Shares shall not be affected in the event that registration statement
does not become effective or is withdrawn for any reason.

         15. Right of First Refusal. Subject to compliance by the Placement
Agent with the terms of the Placement Agent Agreement, the Company and the
Placement Agent understand and agree that for a period of two (2) years from the
Final Closing, the Placement Agent shall have a preferential right to purchase
of its account or to sell for the account of the Company, and equity or debt
securities with respect to which the Company may seek a public offering or
private offering for cash. Specifically excluded from the Placement Agent's
right of first refusal are private offerings of the Company's Shares in exchange
for properties, assets or stock of other individuals or corporations. The
Company will notify and consult the Placement Agent with regard to any such
covered offering for cash prior to consulting any other prospective underwriter
and will offer the Placement Agent the opportunity to purchase or sell any such
securities on terms not less favorable to the Company than it can secure
elsewhere. The Placement Agent shall

                                       51
<PAGE>   6

have thirty (30) days in which to accept such offer. However, the Company shall
not be required to consult with the Placement Agent concerning any borrowings
from banks and institutional lenders or concerning financing under any equipment
leasing or similar arrangements.

         16. Expenses. The Company shall bear all costs and expenses incident to
the issuance, offer, sale and delivery of the securities, including, but not
limited to, all expenses and fees incident to the preparation of filing of the
Offering Memoranda, the costs and counsel fees of qualification under state
securities laws, costs for preparing and printing the Offering Memoranda and
related exhibits, and cost of printing as many copies of the Offering Memoranda
as the Placement Agent may deem necessary. The printer selected by the Company
shall be a financial printer acceptable to the Placement Agent. Except as
otherwise provided herein, the Placement Agent agrees to pay all fees and
expenses of its legal counsel, all advertising, mailing, telephone, travel,
clerical or other office costs incurred or to be incurred by the Placement Agent
or by its sales personnel in connection with the Offering. Such fees and
expenses of the Placement Agent shall be reimbursed by the Company to the extend
provided in Section 12 hereof.

         17. Representations of the Company. The Company represents to the
Placement Agent that no person has acted as a finder or investment adviser in
connection with the transactions contemplated herein and will indemnify the
Placement Agent with respect to any claim for finder's fees in connection
therewith. The Company represents and warrants that no officer, director or
stockholder of the Company is a member of the NASD, an employee of or associated
member of the NASD, except as disclosed to the Placement Agent in writing. The
Company represents and warrants that it has not promised or represented to any
person that any part of the Shares will be directed or otherwise made available
to them in connection with the Offering. The Company further represents that it
has separately disclosed to the Placement Agent all potential conflicts of
interest involving the Company's officers, directors, principal stockholders
and/or employees.

         18. 1934 Act Registration, Quarterly Reports to Shareholders, Quotation
on NASDAQ, Listing in Securities Manuals, Transfer Agent. The Company shall
prepare and file a Form 10-SB registration statement with the SEC under the
Securities Exchange Act of 1934, as amended, as soon as possible but no later
than twenty (20) business days after the signing of this Letter. The Company
agrees that for a least five (5) years after such Exchange Act registration the
Company will issue to its shareholders, within forty-five (45) days after the
end of the Company's first three fiscal quarters, quarterly reports containing
unaudited financial information. The Company shall continue to take all actions
to maintain the listing its Shares on the NASD Automatic Quotation System
("NASDAQ") Over the Counter Bulletin Board and to apply for listing on NASDAQ
Small Cap as soon as possible. Prior to the Initial Closing, the Company will
apply for listing in Standard & Poor's Corporation Records and maintain such
listing on a current basis at all times. The listing shall contain the
information necessary to qualify for transactions exemptions under the Blue Sky
Laws of a majority of states.

         19. Consulting Agreement. At or before the Closing, the Company agrees
to enter into a separate non-exclusive consulting agreement with the Placement
Agent pursuant to which the Placement Agent shall provide investment banking
advise to the Company for a twelve (12)

                                       52

<PAGE>   7

month period (the "Consulting Agreement"). The fee for such services shall be
$1,000 per month payable in advance at the Closing in one lump sum of Twelve
Thousand Dollars ($12,000.00).

                                       53

<PAGE>   8

         20. Formal Agreement Contemplated. The Placement Agent will use its
best efforts to complete the Offering. The parties contemplate the execution and
delivery of a Placement Agency Agreement in form and content satisfactory to the
Placement Agent and the Company to be entered into immediately prior to the time
of the Offering. This commitment is further subject to release of the Placement
Agent in the event of (a) war, casualty or calamity which would have a material
adverse effect or loss to the Company; (b) any material adverse change in the
business, property or financial condition of the Company; or (c) any action,
suit or proceeding at law or at equity against the Company, its officers,
directors or promoters, or by any Federal, State or other governmental equity,
commission, board or agency where any unfavorable decision could materially
adversely effect the Company. Release provisions similar to the above are to be
duly incorporated in the Placement Agency Agreement.

         21. Laws of Pennsylvania to Govern. This Letter of Intent shall be
governed and construed in accordance with the laws of the Commonwealth of
Pennsylvania and the parties agree to restrict themselves to the jurisdiction of
the courts of the Commonwealth of Pennsylvania with respect to any disputes
arising or related to this Letter of Intent.

         22. Partial invalidity. Should any provision of this Letter of Intent
be invalid for any reason, the other provisions of this Letter of Intent shall
remain in effect and not be amended thereby.

         If this letter correctly sets forth our understanding, please so
indicate by signing and returning to us the enclosed copies of this letter. Upon
receipt of the signed copies, we will return one (1) fully executed copy for
your files. This Letter of Intent shall be void at the option of the Placement
Agent unless signed and returned within thirty (30) days from the date hereof.

                                    Very truly yours,

                                    BRYN MAWR INVESTMENT GROUP, INC.

                                    By:  /S/ TONINO LABELLA
                                        ----------------------------------------

AGREED TO AND ACCEPTED THIS

24TH DAY OF OCTOBER, 1999.

SELECT MEDIA COMMUNICATIONS, INC.

BY: /S/ MITCH GUTKOWSKI
    -----------------------------
         Chairman

                                       54

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