Document:

Exhibit 10.4

                              EMPLOYMENT AGREEMENT

      THIS AGREEMENT,  dated as of April 1, 2004, is between AGU  Entertainment
Corp., a Colorado  corporation,  its parent,  subsidiaries  and sister companies
(the "Company"), and Allen Jacobi (the "Employee").

                                    RECITALS

      A. The Company believes the Employee can make a unique contribution to the
business of the Company.

      B. The Board of  Directors  of the Company  believes  that the services of
Employee  would be of great  value to the  Company  and  desires  retaining  his
services for a period of time.

      C. Employee is willing to accept  employment by the Company upon the terms
and conditions hereinafter set forth.

      NOW, THEREFORE,  in consideration of the premises and the mutual covenants
herein  contained and of the mutual  benefits herein  provided,  the receipt and
sufficiency of which are hereby  acknowledged,  the Company and Employee  hereby
agree as follows:

1. TERM OF EMPLOYMENT.

      The Company shall employ Employee and Employee  hereby accepts  employment
by the Company,  on the terms and conditions herein  contained,  for a period of
five (5) years  commencing  as of the date  hereof and ending on the fifth (5th)
anniversary of the date hereof,  subject to termination as hereinafter  provided
(the period from the date hereof through the fifth (5th) anniversary of the date
hereof  or the  date  of  such  termination,  as the  case  may  be,  being  the
"Employment Period").  This Agreement may be extended for one or more subsequent
one year periods by both parties signing an extension  agreement  within 30 days
prior to the expiration of this Employment Period.

2. DUTIES.

      (a) GENERAL DUTIES.  During the Employment  Period, and subject to removal
by the Board of  Directors  of the Company in  accordance  with the  termination
provisions  hereof  Employee  shall  serve  the  Company  in a senior  executive
position  as the  President  of  Pyramid  Records  International,  Inc.  for the
duration of the Employment Agreement, with such duties consistent therewith, and
shall perform such other services for the Company as may be reasonably  assigned
to him from time to time by the Board of Directors of the Company.

      (b)  PRIMARY  ACTIVITY.  During the  Employment  Period and subject to the
Company's  acknowledgement  regarding the  Employee's  law practice as indicated
below,  Employee shall devote his full business efforts,  time and energy to the
interests and business of the Company;  however,  Employee shall be excused from
performing  any services for the Company  hereunder  during periods of temporary
illness or incapacity and during reasonable vacations, and Employee may devote a
reasonable  amount of time to the  handling  of his  personal  affairs,  without
thereby in any way affecting the compensation to which he is entitled hereunder.
It is  acknowledged  that the duties of President may often require from time to
time  attention  to  business  at  times  other  than  normal   business  hours.
Notwithstanding  anything to the contrary herein,  the parties  acknowledge that

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Employee  may spend up to 20% of his  business  time,  during  regular  business
hours,  devoted to his private law practice so long as such  activities,  in the
reasonable opinion of the Company,  do not interfere or conflict with Employee's
ability to perform  the  services  required  hereunder  or  otherwise  injure or
potentially  injure the Company in any way. If Company believes such services do
interfere or conflict with the Company,  then Company shall provide the Employee
with specific  notice of same, in  reasonable  detail,  and grant the Employee a
reasonable  opportunity  to correct  any such  conflict.  During the  Employment
Period,  Employee  shall,  to the best of his  skill and  ability,  use his best
efforts and  endeavors  to the  extension  and  promotion of the business of the
Company,  to the proper  servicing of such business and to the protection of the
good will of such business, both as now enjoyed and hereafter acquired.

      (c) TRAVEL.  The Employee agrees to travel, at the expense of the Company,
for business  purposes in a reasonable  amount for  reasonable  lengths of time,
commensurate with Employee's position.

3. COMPENSATION.

      As  full   compensation  to  Employee  for  performance  of  his  services
hereunder,  the Company agrees to pay Employee and Employee agrees to accept the
following salary and other benefits during the Employment Period:

      (a) SALARY.  The Company shall pay Employee a salary at the annual rate of
$200,000 per year or such greater  annual rate of  compensation  as the Board of
Directors of the Company may from time to time determine  ("Base  Salary").  The
Base  Salary  due  Employee  hereunder  shall  be  payable  in  equal  bi-weekly
installments,  less any amounts required to be withheld by the Company from time
to time from such salary under any applicable federal, state or local income tax
laws or similar  laws then in effect.  The  parties  agree that the Base  Salary
shall increase 5% at the  commencement  of the second year of this Agreement and
that  subsequently  the Base  Salary  will be  reviewed  annually,  for  further
increases.

      (b)  REIMBURSEMENT OF EXPENSES.  The Company shall reimburse  Employee for
all expenses properly incurred by him in the performance of his duties hereunder
in  accordance  with  policies  established  from  time to time by the  Board of
Directors of the Company.

      (c) FURTHER  BENEFITS.  Employee  shall be entitled to  participate in any
health,  accident,  retirement or similar employee benefit plans provided by the
Company  generally  to  its  employees  to  the  extent  commensurate  with  the
participation therein of Employees of the Company. Employee shall be entitled to
participate  in any present or future  bonus,  insurance,  pension,  retirement,
profit sharing or other  compensation or incentive plans adopted by the Company,
for the general and overall benefit of Employees of the Company,  the extent and
manner  of  participation  to be  determined  by the Board of  Directors  of the
Company.  The benefits  provided in this  subsection (c) shall be in addition to
the compensation and benefits  provided in the other subsections of this Section
3. Notwithstanding the foregoing,  the parties do agree that at all times during
the Employment Period,  subject to a reasonable timeframe after the execution of
this Agreement for the Company to implement a health insurance plan, the Company
shall  maintain  a health  insurance  plan in which the  Employee  can choose to
participate on the same basis as all employees generally.  Employee acknowledges
that the Company does not currently  have a health  insurance  plan but that the
Company will utilize its best  efforts to implement a health  insurance  plan as
soon as practical after the execution of this Agreement.

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      (d) OFFICES. Employee agrees to serve without additional compensation,  if
elected or appointed thereto,  in one or more offices or as a director of any of
the Company's  parent,  affiliates,  subsidiaries or sister companies so long as
such services do not materially change Employee's overall obligations.

      (e) VACATION.  The Employee  shall be entitled to three (3) weeks vacation
per year for years one and two of the  Employment  Period.  Commencing  with the
third year of the Employment  Period,  and each subsequent year thereafter,  the
Employee shall be entitled to four (4) weeks vacation per year.

      (f) STOCK OPTION AWARD.  Employee is hereby  granted an option to purchase
800,000  common shares of the Company upon the following  terms and  conditions:
(a) the term of the option shall be for five years;  (b) the  exercise  price of
the option  shall be $.10 per share;  (c) the option shall vest 40% at the first
anniversary date and 30% on each of the succeeding year's  anniversary date; (d)
the option  will not be  effective  until such time as the  shareholders  of the
Company  approve an equity  incentive plan and stock option  agreement;  (f) the
terms of the option shall be identical to the form of the stock option agreement
approved by the  shareholders;  and (g) in the event the Company merges into any
entity for the purpose of becoming a public  company the number of option shares
granted to Employee hereunder (800,000) shall remain unchanged regardless of the
capital  structure of the surviving  entity.  Both parties  acknowledge that the
exercise  price  set  forth  hereunder  constitutes  fair  market  value  of the
underlying  common stock as of the date of this grant.  In the event the Company
does not adopt a stock  option  plan or the  shareholders  of the Company do not
approve the same, then the Company shall provide  Employee with equivalent value
in some other form as the parties can then mutually agree upon.

4.   RESTRICTIONS AGAINST COMPETITION, SOLICITATION, SERVICING,
     AND DIVULGING CORPORATE CONFIDENTIAL DATA

      (a)  COVENANT  NOT TO  COMPETE.  As a  material  inducement  to sign  this
Agreement and providing for the Series A Preferred  Stock,  the Employee  agrees
that as long as he is an employee of the  Company,  he will not Compete with the
Company and,  further,  that he will not Compete with the Company during the two
(2) year period  beginning on the date of termination of this Agreement.  During
the Employment  period and the two year period  subsequent to  termination,  the
Employee shall not within the United States  directly or indirectly,  either for
Employee's  own  account,  or as a  partner,  shareholder  ( other  than  shares
regularly traded in a recognized market),  officer,  director,  employee, agent,
consultant or otherwise,  be employed by connected with, participate in, consult
or otherwise  associate with any other  business,  enterprise or venture that is
competitive  with the Company.  During  employment and for a period of two years
thereafter,  the  Employee  shall  not,  directly  or  indirectly,  solicit  for
employment  or employ any employee of the Company.  Notwithstanding  anything to
the contrary in this  subparagraph  (a),  nothing herein shall be interpreted to
prohibit  Employee from the practice of law as an entertainment  attorney within
the music  industry;  provided,  however,  that such  practice  of law shall not
permit  Employee to Compete  against the Company in violation of the restrictive
covenants  herein  or  otherwise  permit  Employee  to  interfere,  directly  or
indirectly, with the business of the Company in the reasonable discretion of the
Company.

      (b) COVENANT  NOT TO SOLICIT OR SERVICE.  The  Employee  acknowledges  and
agrees that the Company parent has spent  significant  amounts of time and money
in the development of a list of its customers,  distributors, and vendors, which
lists  are  not  available  to the  general  public  or the  Company's  ordinary
employees,  and that  these  lists  may  contain  other  information  about  the
customers,  distributors,  and vendors not  available to the general  public and
that  the  Employee  will be  privileged  to  these  lists.  The  Employee  also

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acknowledges  and agrees that the Company's  business would be  irreparably  and
greatly  damaged  by the use of this  information  other  than for its  benefit.
Therefore,  as a material inducement to the Company to enter into this Agreement
and the granting of the Preferred Stock upon execution hereof, the Employee will
not, except as it relates to Employee's  practice of law, solicit or do business
with, or attempt to solicit or do business  with,  directly or indirectly any of
the Company's customers, distributors or vendors, except on the Company's behalf
and will not  solicit or do  business  with or attempt to solicit or do business
with, directly or indirectly, any of the Company's customers,  distributors, and
vendors  during the two (2) year period  beginning  on the  termination  of this
Agreement.

      (c) COVENANT NOT TO VIOLATE CORPORATE CONFIDENCES.  The Employee will have
access to and will become aware of  confidential  information  and trade secrets
including Customer data, files,  business secrets,  and business  techniques not
generally  available to the public,  and this confidential  information has been
compiled by the Company,  and its parent,  its subsidiaries  and affiliates,  at
great expense and over a great amount of time. The parties acknowledge that this
confidential  information  gives the Company a competitive  advantage over other
businesses  in its field of endeavor  and that the  Company's  business  will be
greatly  and  irreparably  damaged by the  release  or use of this  confidential
information outside of its own business.  Therefore, as a material inducement to
signing this  Agreement,  the Employee will not,  while he is a  Stockholder  of
Pyramid  Music Corp.  or an employee of the Company,  or during the two (2) year
period  beginning  on the  termination  of this  Agreement,  either  disclose or
divulge  this  confidential  information  to  anyone  or use  this  confidential
information in any manner to Compete with the Company.

      (d) ENFORCEMENT. The Company may enforce the provisions of this section by
suit for damages, injunction, or both.

         (i) The  Company  would be  irreparably  injured  by the  breach of any
      provision  of this  Section  , and  money  damages  alone  would not be an
      appropriate  measure  of the  harm to the  Company  from  such  continuing
      breach.  Therefore,  equitable relief,  including specific  performance of
      these  provisions by injunction,  would be an  appropriate  remedy for the
      breach of these provisions.

         (ii) Money damages will be appropriate  with respect to any past breach
      of any provision of this Section. Therefore, in case of any breach of this
      Section,  the breaching party shall render a full and complete  accounting
      of the gross receipts,  expenses,  and net profits that have resulted from
      such  breach and shall be liable for money  damages  equal to  twenty-five
      percent (25%) of the gross amount derived by such breaching party from all
      transactions  in breach of this  Section,  such  amount  representing  the
      amount of profit the Company  could have derived from its own  transaction
      of such business.

         (iii) Should a court of competent jurisdiction determine that equitable
      relief is not available to remedy the  continuous  breach of any or all of
      the  provision of this Section,  an amount of liquidated  damages shall be
      paid to the Company by the breaching  party equal to  twenty-five  percent
      (25%)  of the  gross  amount  derived  by such  breaching  party  from all
      transactions  in breach of this  Section,  such  amount  representing  the
      amount of profit the Company  could have derived from its own  transaction
      of such business.

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         (iv) If this  Agreement is terminated  for any reason  whatsoever,  not
      renewed or extended,  the provisions of this  Agreement  shall survive and
      shall be in full force and effect for the period  commencing from the date
      of actual termination of employment of the Employee.

         (a)  Definitions.  For the purposes of this  Agreement,  the  following
      definitions are applicable:

              (1) "Compete." "To Compete" and "to Compete with the Company" both
         mean to engage in any business that is competitive  with the Company in
         any manner  whatsoever as of the date of termination of this Agreement,
         including competing as a proprietor,  partner,  investor,  stockholder,
         director,  officer,  employee,  consultant,  independent contractor, or
         otherwise, within the United States.

              (2) "Customer." A "Customer" of the Company is any person for whom
         it has performed or attempted to perform  services or sold or attempted
         to sell any product or service,  whether or not for  compensation,  and
         regardless of the date of such rendition,  sale, or attempted rendition
         or sale.

5. TERMINATION OF AGREEMENT.

      (a) EVENTS OF TERMINATION. The Employment Period shall cease and terminate
upon the earliest to occur of the events specified below:

         (i) The close of  business  on the fifth  (5th)anniversary  of the date
      hereof;

         (ii) the death of Employee;

         (iii)  termination of Employee's  employment for Cause. For the purpose
      of this Agreement,  the Company shall have "Cause" to terminate Employee's
      employment  hereunder  upon (A) the failure by  Employee to  substantially
      perform his material duties hereunder in the reasonable  discretion of the
      Company,  other than any such failure  resulting  from  incapacity  due to
      physical  or  mental  illness,  (B) the  engaging  by  Employee  in  gross
      negligence or willful misconduct injurious or potentially injurious to the
      Company in the  Company's  reasonable  discretion,  (C) the  violation  by
      Employee  of  the  provisions  of  Section  4  hereof  in  the  reasonable
      discretion of the Company, or (D) the conviction of Employee of any crime,
      other  than  a  misdemeanor.  As a  condition  precedent  to  the  Company
      terminating  the  Employee  for Cause  pursuant  to  Section  5(a)(iii)(A)
      hereof,  and in the event the reason for Cause  termination  is  something
      that is curable by the Employee in the  Company's  reasonable  discretion,
      then in such event only,  the Company agrees to provide notice to Employee
      of the Cause for  termination  and a 30 day period to cure.  If within the
      reasonable  discretion of the Company, the Employee has failed to cure the
      reason for the Cause  termination  within  said 30 day cure  period,  then
      Company may immediately terminate the Employee without further notice.

         (iv) the election by Employee to  terminate  his  employment  hereunder
      upon 120 days prior written notice;

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         (v) the  election by the  Company to  terminate  Employee's  employment
      hereunder without cause; or

         (vi) the  permanent  disability  of  Employee.  For the purpose of this
      Agreement,  the "permanent  disability" of Employee shall mean  Employee's
      inability,  because of his injury,  illness, or other incapacity (physical
      or mental), to perform the services to the Company contemplated hereby for
      a continuous period of 180 days. Such permanent disability shall be deemed
      to have occurred on the he 180th day.

      (b) COMPENSATION  UPON  TERMINATION.  If the Employment Period shall cease
and terminate hereunder

      (i) for any  reason,  with the  exception  of  (a)(v) of this  Section  5,
      Company  shall pay to  Employee  (or his estate in the case of  subsection
      (a)(ii))  his  Base  Salary  pursuant  to  Section  3(a)  hereof  and  the
      reimbursable  expenses incurred under Section 3(b) hereof through the date
      of termination.  The Company shall have no additional or further liability
      to Employee hereunder, or

      (ii)  pursuant to  subsection  (a)(v) of this Section 5, the Company shall
      (A) pay to Employee  his Base Salary  pursuant to Section  3(a) hereof and
      the reimbursable  expenses  incurred under Section 3(b) hereof through the
      date of termination,  (B) pay to Employee an amount equal to the lesser of
      (x) his then current Base Salary for the number of months remaining in the
      term of this  Agreement,  or (y) his  then  current  monthly  Base  Salary
      multiplied  by  18,  such  amount  to  be  payable  in  18  equal  monthly
      installments,  in either event less any amounts required to be withheld by
      the Company under any applicable  federal,  State or local income tax laws
      or similar laws then in effect, and (C) continue for a period of 18 months
      from the date of  termination  (but only if  permitted  by the  applicable
      plan) all fringe  benefits to which Employee is then entitled  pursuant to
      Section 3(c) hereof (including  payment for any benefits to which Employee
      would be  entitled  to  receive  under  the  Consolidated  Omnibus  Budget
      Reconciliation Act of 1985, the benefit period with respect to which shall
      commence  on  the  date  of  termination);  provided,  however,  that  the
      Employment  Period  shall  be  deemed  to  have  expired  on the  date  of
      termination for the purposes of any vesting period,  and provided further,
      that in no event shall Employee be entitled to receive  pursuant to clause
      (b) above an amount in excess of that to which  Employee  would  have been
      entitled had this Agreement not been so terminated.

      (c)  EFFECT  OF  TERMINATION.  This  Agreement  and  all  liabilities  and
obligations of the parties hereto hereunder shall cease and terminate  effective
upon any  termination  of the  Employment  Period  permitted by this  Agreement;
provided,  however,  that  Employee's  obligations  under Section 4 hereof shall
survive any such termination.

      (d) REMEDIES.  Nothing herein  contained shall be construed as prohibiting
any party hereto from pursuing any other remedies available to it for any breach
of any provision hereof.

6. ASSIGNMENT.

      This Agreement  shall not be assigned by either party hereto,  except that
the Company shall have the right to assign its rights hereunder to any direct or
indirect  subsidiary of the Company or its parent,  any successor in interest of
the Company or its parent whether by merger,  consolidation,  purchase of assets
or otherwise,  and any person  controlling  or which controls or is under common

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control  with  the  Company  or its  parent,  any  such  subsidiary  or any such
successor;  provided,  however,  that any such assignment  shall not relieve the
Company of any of its obligations hereunder.

7. NOTICES.

      All notices requests,  demands and other communications  hereunder must be
in writing and shall be deemed to have been given if delivered by hand or mailed
by first class, registered mail, return receipt requested,  postage and registry
fees prepaid and addressed as follows:

      (a)   If to the Company:
                  AGU Entertainment Corp.
                  Attn: David Levy, CEO
                  11077 Biscayne Blvd.
                  Suite 100
                  Boca Raton, FL 33431

            With a copy to:
                  Blank Rome, LLP
                  Bruce C. Rosetto, Esq.
                  1200 Federal Highway
                  Suite 417
                  Boca Raton, FL 33432

      (b)   If to Employee, addressed to:
                  Allen Jacobi 11077 Biscayne
                  Blvd.
                  Suite 200
                  Miami, FL 33161

Addresses may be changed by notice in writing signed by the addressee.

8.  INVENTIONS.

      Employee shall disclose  promptly to Company any and all  conceptions  and
ideas for inventions, improvements, and valuable discoveries, whether patentable
or not,  which are conceived or made by Employee  solely or jointly with another
during the period of  employment  or within  one year  thereafter  and which are
related to the business or activities of the Company.  Employee  hereby  assigns
and  agrees to assign  all his  interest  therein  to  Company  or its  nominee.
Whenever  requested  by  the  Company,   Employee  shall  execute  any  and  all
applications,  assigns or other instruments that Company shall deem necessary to
apply for and obtain  Letters of  Patents  of the United  States or any  foreign
country or to otherwise  protect Company's  interest therein.  These obligations
shall  continue  beyond  termination  of employment  with respect to inventions,
improvements and valuable  discoveries,  whether  patentable or not,  conceived,
made or acquired by Employee  during the period of employment or within one year
thereafter,  and shall be binding upon  Employee's  heirs,  assigns,  executors,
administrators and other legal representatives.

9.  RETURN OF PROPERTY.

      All correspondence,  reports, charts, products, records, designs, patents,
plans, manuals, sales and marketing material, memorandum, advertising materials,
customer lists, distributor lists, vendor lists, telephones,  beepers,  portable

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computers,  and any other such data,  information  or property  collected  by or
delivered  to Employee by or on behalf of the  Company,  their  representatives,
customers,  suppliers  or others and all other  materials  compiled  by Employee
which  pertain to the  business  of the  Company  shall be and shall  remain the
property of the Company and shall be delivered to the Company  promptly upon its
request at any time and without respect upon completion or other  termination of
Employee's employment hereunder for any reason.

10.  REPRESENTATIONS OF EMPLOYEE.

Employee  represents  and  warrants to the Company that he is not subject to any
restriction  or  non-competition  covenant in favor of a former  employer or any
other person or entity, and that the execution of this Agreement by Employee and
his provision of services to the company and the  performance of his obligations
hereunder  will  not  violate  or be a  breach  of any  agreement  with a former
employer or any other person or entity.  Further,  Employee  agrees to indemnify
Company for any claim, including but not limited to attorneys' fees and expenses
of investigation,  by any such third party that such third party may now have or
may hereafter have against the Company based upon any noncompetition  agreement,
invention or secrecy agreement between Employee and such third party.

Employee  further  represents  and warrants that it will transfer or cause to be
transferred  to the Company all title and  interest to any domain names or other
intellectual property associated with the Company and all of its subsidiaries.

11.  MISCELLANEOUS.

      This  Agreement  embodies  the entire  understanding  between  the parties
hereto  respecting  the  subject  matter  hereof  and no change,  alteration  or
modification hereof may be made except in writing signed by both parties hereto.
Any prior  agreement  between  the  Company and  Employee,  of whatever  kind or
nature, shall be deemed to be superseded for all purposes by this Agreement and,
upon the execution  and delivery of this  Agreement by Employee and the Company,
any such prior  employment  agreement  shall be deemed to be canceled  and of no
further force or effect. The Employee hereby releases and forever discharges the
Company,  and its  subsidiaries,  from any all agreements  that may have existed
between the Employee and the Company,  and its  subsidiaries,  prior to the date
hereof.

The headings in this  Agreement are for  convenience of reference only and shall
not be considered as part of this Agreement or to limit or otherwise  effect the
meaning  hereof.  If any  provisions  of this  Agreement  shall be held invalid,
illegal  or  unenforceable  in whole or in part,  neither  the  validity  of the
remaining part of such  provisions  nor the validity of any other  provisions of
this Agreement shall in any way be affected thereby. This agreement shall in all
respects be governed by and construed in  accordance  with the laws of the State
of Florida.

12.  ADVICE OF COUNSEL

      Employee  recognizes  that the Company is represented  by counsel,  namely
Blank Rome,  LLP.,  and that such counsel does not  represent  the  interests of
Employee.  The Company strongly recommends and suggests that Employee obtain its
own counsel to review this Agreement  prior to execution of the  Agreement.  The
Company agrees to provide Employee with a reasonable period of time to have this
Agreement reviewed by its own counsel or any other  professional  adviser deemed

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appropriate by the Employee.  Should  Employee not choose to have this Agreement
reviewed by its own counsel,  then Employee  assumes the risk of such  decision,
and Employee hereby acknowledges that Company has not unduly influenced Employee
in any way and that Company desires that Employee retain its own counsel.

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

Witnesses:                                "COMPANY"

                                    By:
--------------------------------       ---------------------------------------
                                    David Levy

                                                     "EMPLOYEE"

--------------------------------    ------------------------------------------
                                    Allen Jacobi

                                       9Exhibit 10.5

                                   ASSIGNMENT AND ASSUMPTION  AGREEMENT dated as
                                   of March 3, 2004,  among Pyramid Media Group,
                                   Inc., a Florida  corporation  ("PMG"),  Allen
                                   Jacobi,  a resident  of the State of Florida;
                                   and Pyramid  Records  International,  Inc., a
                                   Florida corporation (the "Company").

            Pyramid  Media  Group,  Inc.,  a  Florida   corporation  having  its
principal place of business at 11077 Biscayne Blvd.,  Suite 200, Miami, FL 33161
("PMG"),  executed and delivered to Ark 21 Records,  L.P., a California  Limited
Partnership,  located at 14724 Ventura Blvd.  Penthouse Suite,  Sherman Oaks, CA
91403 ("Ark") a Distribution  Agreement  dated May 1, 2003 pursuant to which the
PMG and Ark agreed to certain terms and conditions  relating to the distribution
of Records (the  "Distribution  Agreement").  Allen Jacobi is the majority owner
and controlling shareholder of PMG.

            Pursuant  to Section  14 of the  Distribution  Agreement,  it is not
assignable to a third party except under certain conditions.

            The  Company  is  desirous  of  receiving  an   assignment   of  the
Distribution  Agreement and assuming the obligations thereunder with the consent
of Ark upon the terms and conditions hereof.

            This Assignment and Assumption Agreement is intended to transfer the
all  covenants,  obligations,  rights,  title and  interest in the  distribution
Agreement from PMG into the Company.

            NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby  acknowledged by the parties hereto, the parties
hereto hereby agree as follows:

         SECTION 1. ASSIGNMENT AND ASSUMPTION.

            (a) In  consideration  of the Company's  assumption of all covenants
and obligations under the Distribution  Agreement,  PMG does hereby  distribute,
assign,  transfer and convey (the "Assignment") to the Company,  and the Company
hereby accepts from PMG, all of PMG's right, title and interest in, to and under
the Distribution Agreement.

            (b) In  consideration  of the  Assignment,  the Company  does hereby
assume and agrees to perform,  comply with and discharge all of the obligations,
duties  and   liabilities   of  PMG  under  the   Distribution   Agreement  (the
"Obligations").

<PAGE>

         SECTION 2. RIGHT OF ENDORSEMENT.

         PMG hereby  constitutes and appoints the Company and its successors and
assigns the true and lawful attorney of PMG, with full power of substitution, in
the name of the Company, or in the name of PMG, on behalf of and for the benefit
of the Company, (a) to collect all items being sold,  transferred,  conveyed and
assigned to the Company as provided herein,  (b) to endorse,  without  recourse,
checks, notes and other instruments constituting or relating to the Distribution
Agreement,  (c) to institute and prosecute all proceedings which the Company may
deem proper in order to collect,  assert or enforce any claim, right or title of
any kind in or to the Distribution  Agreement,  (d) to defend and compromise any
and all actions,  suits or proceedings in respect of the Distribution  Agreement
and (e) to do all such acts and things in  relation  thereto as the  Company may
deem advisable.  The foregoing  powers are coupled with an interest and shall be
irrevocable by PMG, directly or indirectly, in any manner or for any reason.

         SECTION 3. CONSIDERATION.

         The Company shall pay PMG the  consideration  set forth in Amendment to
this Assignment and Assumption Agreement between the Company and PMG.

         SECTION 4. FURTHER COVENANTS.

         (a)  Each of the  parties  hereto  agrees  that it  will,  at its  sole
expense,  promptly do execute,  acknowledge  and deliver,  and cause to be done,
executed,   acknowledged   and   delivered,   all  such  further  acts,   deeds,
certificates,   assignments,  transfers,  conveyances,   affidavits,  powers  of
attorney,  assurances and other documents as may be reasonably  requested by the
other party  hereto for better  assigning,  transferring,  granting,  conveying,
assuring  and  conferring  right,  title  and  interest  to the  Company  in the
Distribution Agreement.

         (b) PMG hereby  represents and warrants that the  Assignment  hereby to
the  Company  does not require  the  consent of any other  party,  and that this
Assignment will be valid and binding upon all parties hereto simultaneously with
the execution of this Agreement.

         SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE PMG.

         PMG hereby represents and warrants to the Company as follows:

                    (i) such  party has the  requisite  power and  authority  to
         execute  and  deliver  this  Agreement  and  perform  its   obligations
         thereunder;

                    (ii)  the  execution  and  delivery  by such  party  of this
         Agreement  and  the  performance  by  such  party  of  its  obligations
         hereunder have been duly authorized by all requisite action on the part
         of such party;

                    (iii) this Agreement has been duly executed and delivered by
         such party;

<PAGE>

                    (iv)  this  Agreement  is  the  legal,   valid  and  binding
         obligation of such party,  enforceable against such party in accordance
         with its terms,  except as  enforcement  may be limited by  bankruptcy,
         insolvency,  reorganization or similar laws affecting creditors' rights
         generally;

                    (v)  the  execution  and  delivery  by  such  party  of this
         Agreement  and  the  performance  by  such  party  of  its  obligations
         hereunder  do not (i)  violate  any  provision  of the  certificate  of
         incorporation,  bylaws or similar organizational  documents (if any) of
         such  party,  (ii)  violate or cause a default  under the  Distribution
         Agreement  or any  other  material  agreement  of such  party,  or (ii)
         violate any  provision  of any  federal,  state or local law,  statute,
         ordinance, rule or regulation applicable to such party or its assets;

                    (vi) there is no litigation pending or overtly threatened in
         writing  against  such  party  which  questions  the  right,  power  or
         authority of such party to enter into and deliver this Agreement and to
         perform its obligations hereunder;

                    (vii)  the  execution  and  delivery  by such  party of this
         Agreement  and  the  performance  by  such  party  of  its  obligations
         hereunder do not require the consent or approval of,  notice to, filing
         with, or other action by, any governmental  authority,  other than such
         of the  foregoing as have been made or obtained on or prior to the date
         hereof;

                    (viii)  such party has not  assigned,  pledged or  otherwise
         transferred  any of its  right,  title,  or  interest  in,  or to,  the
         Distribution Agreement to any other person or entity;

                    (ix) there are no claims,  liens or encumbrances against the
         Distribution Agreement of any kind or nature;

                    (x) the Distribution  Agreement is in full force and effect,
         legally binding and existing agreement of PMG;

                    (xi) PMG is not in breach of any term,  condition,  covenant
         or obligation of the Distribution Agreement; and

                    (xii)  PMG  owes  no sums of  money  or has any  outstanding
         obligation  as of  the  date  hereof  to  Ark  under  the  Distribution
         Agreement.

<PAGE>

         SECTION 6. INDEMNIFICATION.

                    (a) The representations and warranties of the parties hereto
         contained in this Agreement or in any writing delivered pursuant hereto
         or at the Closing shall survive the Closing and the consummation of the
         transactions  contemplated hereby (and any examination or investigation
         by or on behalf of any party hereto).

                    (b) PMG covenants  and agrees to defend,  indemnify and hold
         harmless the Company and each Person who  controls  the Company  within
         the meaning of the Securities Act from and against any claims,  losses,
         liabilities,  damages,  costs and expenses  arising out of or resulting
         from: (i) any inaccuracy in or breach of any representation or warranty
         made by PMG in this Agreement or in any writing  delivered  pursuant to
         this Agreement or at the Closing; or (ii) the failure of PMG to perform
         or observe fully any  covenant,  agreement or provision to be performed
         or observed by PMG pursuant to this  Agreement or any other  Agreements
         executed as part of this Agreement.

                    (c) The foregoing indemnification provisions are in addition
         to, and not in derogation  of, any  statutory,  equitable or common-law
         remedy  any party  may have for  breach  of  representation,  warranty,
         covenant or agreement.

                    (d)  Notwithstanding  any provision of this  Agreement or of
         any other  agreement,  instrument or undertaking,  it is understood and
         agreed that the  Company  shall have the right to set-off the amount of
         any  indemnity  hereunder  against  (i)  any  sums  of  money,  whether
         compensation or otherwise,  owed to Allen Jacobi by the Company for any
         reason and at any time or (ii) any shares owned by Allen Jacobi, or any
         successor in interest, in the Company's parent, Pyramid Music Corp., or
         any successor in interest of said parent The remedies  provided in this
         Article shall be cumulative and shall not preclude the assertion by any
         party of any other  rights or the  seeking of any other  remedies by it
         against any other party.

         SECTION 7. SUCCESSORS AND ASSIGNS.

         This  Agreement  and all of the  provisions  hereof  shall apply to, be
binding  upon,  and inure to the  benefit of and be  enforceable  by each of the
parties hereto and their respective successors and permitted assigns.

         SECTION 8. THIRD PARTY BENEFICIARIES.

         Except  as set  forth  in  the  following  sentence,  nothing  in  this
Agreement,  express or implied,  is intended to confer upon any person or entity
(other than the parties hereto and their respective  successors and assigns) any
rights or remedies of any nature whatsoever under or by reason of this Agreement
or any provision of this Agreement.

<PAGE>

         SECTION 9. NOTICES.

         Any notices,  demands,  waivers,  consents or other communications that
are given or made  hereunder  shall be in writing  and shall be given or made to
any party hereto by physical delivery,  U.S. mail (registered or certified mail,
postage  prepaid,   return  receipt   requested)  or  overnight  courier  or  by
transmission by facsimile to such party at its, his or her address (or facsimile
number) set forth in the Preamble to this  Agreement,  or such other address (or
facsimile number) as shall have been specified by like notice by such party.

Each such notice, demand, consent or other communication shall be effective upon
receipt in the case of physical delivery or overnight courier, upon confirmation
of  receipt  by or on behalf of the  addressee  in the case of  transmission  by
facsimile if received  prior to 5:00 p.m.,  Miami time,  and, if received  after
5:00 p.m.,  Miami time, on the next business day  immediately  after the date of
such receipt, and five business days after deposit in the U.S. mails in the case
of mailing.  As used herein,  the term  "business day" shall mean a calendar day
other than Saturday,  Sunday or other day on which banking  institutions  in New
York, New York are not required to be open.

         SECTION 10. ENTIRE AGREEMENT.

         This Agreement contains the entire agreement between the parties hereto
with  respect  to the  subject  matter  hereof  and  supersedes  all  prior  and
contemporaneous arrangements or understandings with respect thereto.

         SECTION 11. AMENDMENTS, MODIFICATIONS AND WAIVERS.

         The terms and  provisions  of this  Agreement  may not be  modified  or
amended,  nor any of the provisions  hereof waived,  temporarily or permanently,
except pursuant to a written instrument  executed by each of the parties hereto.
No waiver by any party hereto  shall  operate or be construed as a waiver of any
subsequent breach by any other party.

         SECTION 12. SEVERABILITY.

         It is the desire and intent of the parties that the  provisions of this
Agreement be enforced to the fullest extent permissible under the law and public
policies  applied  in  each   jurisdiction  in  which   enforcement  is  sought.
Accordingly,  in the event that any provision of this Agreement would be held in
any jurisdiction to be invalid, prohibited or unenforceable for any reason, such
provision, as to such jurisdiction,  shall be ineffective,  without invalidating
the  remaining  provisions  of this  Agreement  or  affecting  the  validity  or
enforceability  of  such  provision  in any  jurisdiction.  Notwithstanding  the
foregoing,  if such provision could be more narrowly drawn so as not be invalid,
prohibited  or  unenforceable  in  such  jurisdiction,  it  shall,  as  to  such
jurisdiction,   be  so  narrowly  drawn,   without  invalidating  the  remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

<PAGE>

         SECTION 13. CUMULATIVE REMEDIES.

         Each party  hereto  shall  have and  retain  all  rights  and  remedies
existing in its favor at law or in equity,  including,  without limitation,  any
actions for specific  performance and/or injunctive or other equitable relief to
enforce or prevent any  violations  of the  provisions  of this  Agreement.  The
parties hereto agree and  acknowledge  that money damages may not be an adequate
remedy for any breach of the  provisions  of this  Agreement  and that any party
hereto  may in its sole  discretion  apply  to any  court  of law or  equity  of
competent  jurisdiction for specific  performance and/or other injunctive relief
(without  posting  any bond or  deposit)  in order to  enforce  or  prevent  any
violations of the provisions of this Agreement.

         SECTION 14. INTERPRETATION.

         The  term  "this   Agreement"  means  this  Assignment  and  Assumption
Agreement, together with all schedules and exhibits hereto (if any), as the same
may from time to time be amended, restated,  amended and restated,  supplemented
or  otherwise  modified in  accordance  with the terms  hereof.  The use in this
Agreement of the term "including"  means  "including,  without  limitation." All
references to sections and schedules mean the sections of this Agreement and the
schedules  attached to this Agreement,  except where otherwise stated. The title
of and the section  headings in this Agreement are for  convenience of reference
only and shall not  govern or affect the  interpretation  of any of the terms or
provisions  of this  Agreement.  The use herein of the  masculine,  feminine  or
neuter forms shall also denote the other forms,  as in each case the context may
require or permit. The representations,  warranties and covenants of the parties
hereto set forth  herein  shall  survive the  consummation  of the  transactions
contemplated by this Agreement.

         SECTION 15. GOVERNING LAW.

         This  Agreement  shall be governed  by and  construed  and  enforced in
accordance  with the laws of the State of Florida,  without giving effect to any
choice or conflict of law provision or rule thereof.

         SECTION 16. WAIVER OF JURY TRIAL.

         EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION,  PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT.

         SECTION 17. JURISDICTION.

         Each  of  the  parties   hereto   hereby   consents  to  the  exclusive
jurisdiction  of,  and  venue  in,  any  federal  or state  court  of  competent
jurisdiction located in Miami, Florida,  solely in respect of the interpretation
and  enforcement  of the  provisions  of this  Agreement,  and in respect of the
transactions  contemplated  herein, and hereby waives, and agrees not to assert,
as a defense in any action for the  interpretation or enforcement  hereof or any
such  document,  that it is not  subject  thereto or that such action may not be

<PAGE>

brought or is not  maintainable in said courts or that the venue thereof may not
be applicable or that this Agreement or any such document may not be enforced in
or by said courts, and the parties hereto irrevocably agree that all claims with
respect  to such  action or  proceeding  shall be heard and  determined  in said
courts. The parties hereby consent to and grant any such court jurisdiction over
the person of such parties and over the subject matter of such dispute and agree
that  mailing of process or other papers in  connection  with any such action or
proceeding in the manner provided in Section 8 or in such other manner as may be
permitted by law, shall be valid and sufficient service thereof.

         SECTION 18. COUNTERPARTS.

         This  Agreement may be executed in more than one  counterpart,  each of
which shall be deemed an original but all of which shall  constitute one and the
same  instrument as if the parties  executed one  counterpart  as of the day and
year first above written.

         IN WITNESS WHEREOF,  the parties hereto have caused this Assignment and
Assumption Agreement to be executed as of the date first above written.

                                    PYRAMID RECORDS INTERNATIONAL, INC.

                                    By:
                                        ---------------------------------------
                                        Name: David Levy
                                        Title: President

                                    PYRAMID MEDIA GROUP, INC.

                                    By:
                                        ---------------------------------------
                                        Name: Allen Jacobi
                                        Title: CEO

                                    ------------------------------------
                                    Allen Jacobi, individually

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