Document:

Exhibit 10.3
                           REGULATION S

                    SUBSCRIPTION AGREEMENT AND
               CONFIDENTIAL PURCHASER QUESTIONNAIRE

     For iMedia International, Inc. (a Delaware corporation)

I, the Subscriber, hereby offer to purchase the number of units (the "Units")
set forth in Section 8, each Unit to consist of two (2) shares of Common Stock
(the "Shares") and a three-year warrant (the "Warrant") to purchase two shares
of iMedia International, Inc., a Delaware corporation (the "Company") at $1.00
per share offered pursuant to the Confidential Offering Memorandum, dated as
of August 8, 2004 (the "Memorandum").  The Shares, the Warrant and the shares
of Common Stock issuable upon exercise of the Warrants (the "Warrant Shares")
are collectively referred to herein as "Securities".

Representations, Covenants and Warranties of the Company.

The Company hereby represents, covenants and warrants as follows:

The Company is duly incorporated, validly existing and in good standing under
the laws of the State of Delaware.

The issuance and sale of the Securities by the Company have been duly
authorized by all necessary corporate action and, upon issuance and delivery
of the Securities pursuant to the terms hereof, the Securities will be validly
issued, fully paid and non-assessable.

The execution and delivery of this Agreement have been duly authorized by the
Company and this Agreement has been duly executed and delivered by the
Company, and is the valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, subject to (i) bankruptcy,
insolvency or similar laws generally affecting the enforcement of creditors'
rights and (ii) equitable principles limiting the right to obtain specific
performance or similar equitable relief.

The Company shall comply with the registration requirements set forth on
Appendix I attached hereto.

Acceptance of Subscription.

It is understood and agreed that this Subscription is made subject to the
following terms and conditions:

The Company shall have the right to accept or reject this Subscription, in
whole or in part, for any reason, including without limitation the inability
of Subscriber to meet any standards and criteria imposed by or set forth in
Regulation S promulgated under the Securities Act of 1933, as amended (the
"Securities Act"), or for no reason.  If this Subscription is rejected, the
funds will be returned to Subscriber.  The Subscriber will not receive
interest for the time the funds are held by the Company. If the Subscription
is accepted, the Company will keep this Agreement and shall deliver to
Subscriber (i) one copy of this Agreement, executed by the Company, (ii) a
stock certificate representing the number of Shares purchased by Subscriber
and (iii) a Warrant reflecting the number of Warrant Shares.

If this Subscription is accepted in part and rejected in part, the Company
will so notify Subscriber and Subscriber agrees to deliver promptly to the
Company a new Subscription for the appropriate number of Units, at which time
the excess funds previously tendered to the Company will be returned to
Subscriber.

Representations, Covenants and Warranties of the Subscriber.

I represent, covenant and warrant as follows:

I understand that the Securities have not been registered under the Securities
Act, in reliance on the private offering exemption provided by Rule 902 of
Regulation S, or qualified with any other state, federal or foreign securities
commission or other regulatory authority.

I am willing and able to bear the economic risk of an investment in the
Securities in an amount equal to the amount I have subscribed to purchase,
have adequate means of providing for current needs and personal contingencies,
have no need for liquidity in the investment, and am able to bear the economic
risk of an investment in the Company of the size contemplated.  In making this
statement, I have considered whether I could afford to hold the Securities for
an indefinite period and whether, at this time, I could afford a complete loss
of my investment in the Securities.

Any purchase of the Securities will be solely for my own account and not for
the account of any other person, and not with a view to distribution or resale
unless the Securities are registered therefore under applicable law, or an
exemption from such registration requirements is available.

I represent to the Company that I have been afforded the opportunity to ask
questions of, and receive answers from management about the business and
affairs of the Company and concerning the terms and conditions of the offering
of the Securities, and to obtain any additional information, to the extent
that the Company possessed such information or could acquire it without
unreasonable effort or expense, necessary to verify the accuracy of the
information otherwise obtained by or furnished to me in connection with the
offering of the Securities.  I acknowledge that the Company has furnished to
me all information that I considered necessary to form a decision concerning
the purchase of the Securities and no valid request to the Company by me for
information of any kind about the Company has been refused or denied by the
Company or remains unfulfilled as of the date hereof.  I have read and
understand the Company's Memorandum.  THE UNDERSIGNED REPRESENTS THAT THE
UNDERSIGNED IS A SOPHISTICATED INVESTOR WHO, ACTING ALONE OR WITH A
PROFESSIONAL ADVISOR WHO IS UNAFFILIATED WITH AND WHO IS NOT COMPENSATED BY
THE COMPANY, DIRECTLY OR INDIRECTLY, IS FAMILIAR WITH THE RISKS INHERENT IN
SPECULATIVE INVESTMENTS SUCH AS THE ONE UNDERTAKEN HEREBY, AND HAS SUCH
KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS, THAT THE
UNDERSIGNED IS CAPABLE OF EVALUATING THE MERITS AND RISKS OF THE INVESTMENT IN
THE SHARES.

I represent to you that (i) the information contained herein is complete and
accurate and may be relied upon by you and (ii) I will notify you immediately
of any material change in any of such information occurring prior to the
closing date, if any, with respect to the purchase of the Securities by me.  I
further understand that the Company may request additional information as it
deems necessary, in its sole discretion, to determine my suitability.

The execution and delivery of this Agreement have been duly authorized by me
and this Agreement has been duly executed and delivered by me, and is the
valid and binding agreement of me, enforceable against me in accordance with
its terms, subject to (A) bankruptcy, insolvency or similar laws generally
affecting the enforcement of creditors' rights and (B) equitable principles
limiting the right to obtain specific performance or similar equitable relief.

I hereby confirm that I have been informed that the Securities may not be
resold or transferred unless the Securities are first registered under the
federal securities laws or unless an exemption from such registration is
available.  Accordingly, I hereby acknowledge that I am prepared to hold the
Securities for an indefinite period.

I hereby confirm that I am not a U.S. Person, as such term is defined under
Regulation S and have completed the Certificate of Non-U.S. Person attached
hereto a Appendix A.  The Certificate of Non-U.S. Person is incorporated
herein by reference in its entirety and made a part of this Agreement as if
fully set forth herein. I acknowledge and understand that, in addition to all
other representations set forth in herein, the Company's reliance on the
exemptions described in this Section 4 of this Agreement is predicated on the
representations, warranties and certification set forth in the Certificate of
Non-U.S. Person.

I further certify that:

Securities purchased under this Agreement are being offered and sold outside
the United States to an entity or person located outside the United States,
which is not a U.S. Person and which is not purchasing for the benefit or the
account of a U.S. Person.  Whenever used in this Agreement, the terms "United
States" and "U.S. Person" shall have the meanings given to them under Rule
902(k) and Rule 902(l) of Regulation S under the Securities Act, a recitation
of which is set forth in the Certificate of Non-U.S. Person attached hereto.

Neither any offer nor the sale of the Securities to the undersigned under this
Agreement was accomplished by means of advertising in any publication or by
means of "directed selling efforts" in the United States, as such term is
defined under Rule 902(c) of Regulation S under the Securities Act. A
recitation of Rule 902(c) is set forth in the Certificate of Non-U.S. Person.

Neither the offer nor the sale of the Securities was consummated in the United
States.

With respect to the offer and sale of the Securities under this Agreement and
at all times contemplated herein, the undersigned was and continues to remain
located outside the United States.

Except as permitted under Regulation S, none of the Securities nor any portion
or component thereof (and none of the shares of common stock issued upon
exercise of the warrants included in the Securities) may be sold, transferred
or assigned, or offered for sale, transfer or assignment to a U.S. Person or
for the account or benefit of a U.S. Person.

Except as permitted under Regulation S, none of the Securities nor any portion
or component thereof (and none of the shares of common stock issued upon
exercise of the warrants included in the Securities) may be sold, transferred
or assigned, or offered for sale, transfer or assignment, in the United States
or in any transaction consummated in the United States (in whole or in part).

Transfer of the Securities.  I hereby agree that I shall make no transfer of
the Securities unless and until:
I shall have notified the Company of the proposed transfer and provided a
written summary of the terms and conditions of the proposed transfer;

I shall have complied with all requirements of this Agreement, and any other
agreement between myself and the Company applicable to the transfer of the
Securities;

I shall have provided the Company with written assurances, in form and
substance satisfactory to the legal counsel of the Company, that (i) the
proposed transfer does not require registration of the Securities under the
Securities Act and any applicable state laws and (ii) all appropriate action
necessary for compliance with the registration requirements of the Securities
Act and any applicable state laws or of any exemption from registration
available under the Securities Act and any applicable state laws has been
taken.

Further, without limiting the acknowledgments set above, I certify that none
of the Securities nor any portion or component thereof (and none of the shares
of common stock issued upon exercise of the warrants included in the
Securities) have been sold, transferred or assigned, or offered for sale,
transfer or assignment, before the expiration of the one year restricted
period unless each of the following conditions has been satisfied: (1) each
prospective subsequent purchaser thereof certifies that such purchaser is not
a U.S. Person and is not acquiring such securities for the account or benefit
of any U.S. Person; (2) each such prospective subsequent purchaser agrees to
resell such securities in accordance with Regulation S, pursuant to a
registration under the Securities Act or pursuant to an available exemption
from registration (other than Regulation S); and (3) each certificate
evidencing such securities to be transferred contains a legend to the effect
that transfer of such securities is prohibited except in accordance with
Regulation S.

The Company shall not be required (i) to transfer on its books any Securities
that have been sold or transferred in violation of the provisions of this
Agreement or (ii) to treat as the owner of the Securities, or otherwise to
accord voting or dividend rights to, any transferee to whom the Securities
have been transferred in contravention of this Agreement.

In order to reflect the restrictions on transfer of the Securities, the stock
certificates for the Shares and the Warrant Shares will be endorsed with the
following legend:

    "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
    AS AMENDED (THE "SECURITIES ACT").  THE HOLDER HEREOF, BY PURCHASING THIS
    SECURITY, AGREES FOR THE BENEFIT OF NEW DRAGON ASIA (THE "COMPANY") THAT
    THIS SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO
    THE COMPANY (UPON CONVERSION, EXCHANGE OR REDEMPTION THEREOF OR
    OTHERWISE), (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION IN ACCORDANCE
    WITH RULE 144 (IF AVAILABLE) UNDER THE SECURITIES ACT, (3) PURSUANT TO
    OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES
    WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT IN A
    TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT,
    OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
    SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
    LAWS OF ANY STATE OF THE UNITED STATES."

I agree to be bound by the provisions of Appendix I as they pertain to me as
an "Investor."

Withdrawal of Offering.

The Company reserves the right to withdraw this offering for any reason, or
for no reason.  Once a Subscription has been made, it may not be revoked by
Subscriber.  If the offering is withdrawn, Subscriber will receive a check in
the amount of the consideration previously tendered by Subscriber to the
Company and will have no further liability to the Company other than to return
to the Company any documents furnished to Subscriber by or on behalf of the
Company in connection with the offering, and the Company will not have any
further liability to Subscriber.

Miscellaneous.

Indemnification.

     The Subscriber agrees to indemnify and hold harmless the Company and each
person, if any, who controls or is controlled by the Company, within the
meaning of Section 15 of the Securities Act, against any and all loss,
liability, claim, damage and expense whatsoever (including, but not limited
to, any and all expenses whatsoever reasonably incurred in investigating,
preparing or defending against any litigation commenced or threatened or any
claim whatsoever) arising out of or based upon (a) any false representation or
warranty or breach or failure by the Subscriber to comply with any covenant or
agreement made by the Subscriber, in this Subscription Agreement or in any
other document furnished by the Subscriber to any of the foregoing in
connection with this transaction or (b) any action for securities law
violations instituted by the Subscriber which is finally resolved by judgment
against the Subscriber.

Arbitration.
    (i) Except as provided in subsection (ii) below, in the event of any
dispute, claim or controversy among the parties arising out of or in any way
relating to this Subscription Agreement, whether in contract, tort, equity or
otherwise, and whether relating to the meaning, interpretation, effect,
validity, performance or enforcement thereof, including any controversy as to
the arbitrability thereof, such dispute, claim or controversy shall be
resolved by and through a mandatory, final and binding arbitration proceeding
to be conducted before three (3) arbitrators in Los Angeles, California, under
the auspices and pursuant to the commercial arbitration rules then in effect
of the American Arbitration Association.  Such arbitrators shall be selected
from a panel of not less than ten (10) arbitrators chosen by all parties, each
of whom shall be a retired judge or attorney specializing in corporate law who
is independent of any party to such proceeding.  Both the foregoing agreement
of the parties to arbitrate and all such claims, and the results,
determination, finding, judgment and/or award rendered through such
arbitration, shall be final and binding on the parties hereto and may be
specifically enforced by legal proceedings.  Any party may initiate the
arbitration of any dispute, claim or controversy by delivering written notice
to the other parties demanding binding arbitration.

     (ii) The parties hereto agree that any action to compel arbitration
pursuant to this Agreement shall be brought exclusively in any appropriate
court in the County of Los Angeles, California and in connection with such
action to compel, the laws of the State of California shall control.
Application may also be made to such court for confirmation of any decision or
award of the arbitrators, for an order of the enforcement and for any other
remedies which may be necessary to effectuate such decision or award.  The
parties hereto consent to the jurisdiction of the arbitrators and of such
court and waive any objection to the jurisdiction of such arbitrators and
court.

Entire Agreement.

     This Subscription Agreement and the documents referred to herein or
executed contemporaneously herewith constitute the parties' entire agreement
with respect to the subject matter hereof and supersede all agreements,
representations, warranties, statements, promises and understandings, whether
oral or written, with respect to the subject matter hereof.

Binding Obligation.

     This Subscription Agreement shall bind and inure to the benefit of each
of the parties hereto and their respective successors and assigns.

Counterparts.

     This Subscription Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

Governing Law.

     This Subscription Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without regard to principles
of conflicts of law.

Severability.

     In case any provision of this Subscription Agreement shall be held
invalid, illegal or unenforceable, the legality, validity and enforceability
of any such provisions in every other respect and the remaining provisions
hereof shall not in any way be affected or impaired thereby.

Further Assurances.

     Each party hereto hereby covenants and agrees to execute such further
documents or instruments and to take such further actions as may be necessary
or expedient in connection with the consummation of the matters contemplated
by this Subscription Agreement.

<TABLE>
<CAPTION>

                            Subscriber Registration
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 7.1                                                                           Purchaser's Information
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                                             <c>                        <c>
 Purchaser's First Name,  M.I., Last Name     | Social Security Number   | Date of Birth  (mm/dd/yy)
                                              |                          |
                                              |                          |
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 Mailing Address (If PO Box, please indicate  |                          |               |
 home address below)                          | City                     | State         | Postal Code
                                              |                          |               |
                                              |                          |               |
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 Residence Address                            | City                     | State         | Postal Code
                                              |                          |               |
                                              |                          |               |
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 E-mail Address   | Home Phone                | Business Phone           | Country of Residence
                  |                           |                          |
                  |                           |                          |
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 Marital Status:  |                     |                    |                     |
 (check one)      |  [ ] Single         |  [ ] Married       |  [ ]  Separated     |  [ ] Divorced
                  |                     |                    |                     |
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 Citizenship:  (state country)                |  Exact Name Shares to be registered as:
                                              |
                                              |
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 7.2   Financial Information and Investor Status - please check all of the appropriate boxes
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                 |  Accredited  Status
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  A.             |  I certify that I am an "accredited investor" because: I had an individual income
                 |  of more than US$200,000 in each of the two most recent calendar years, and I
                 |  reasonably expect to have an individual income in excess of US$200,000 in the
                 |  current calendar year; or my spouse and I had joint income in excess of US$300,000
                 |  in each of the two most recent calendar years, and we reasonably expect to have a
                 |  joint income in excess of US$300,000 in the current calendar year. or
-------------------------------------------------------------------------------------------------------
  B.             |  I have an individual net worth, or my spouse and I have a joint net worth, in
                 |  excess of US$1,000,000 (including home and personal property).
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 7.3  IRA's, Trusts, Corporations, Partnerships or Employee Benefit Plan's  -
      please check the appropriate boxes
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Has the subscribing entity been formed for the specific purpose of investing in the     |       |
Stock? If your answer to question A is "No" CHECK whichever of the following statements | YES   | NO
(1-5) is applicable to the subscribing entity                                           |       |
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 1.              |  An employee benefit plan within the meaning of Title I of the Employee Retirement
                 |  Income Security Act of 1974, provided that the investment decision is made by a
                 |  plan fiduciary, as defined in section 3(21) of such Act, and the plan fiduciary is
                 |  a bank, savings and loan association, insurance company or registered investment
                 |  adviser; or
-------------------------------------------------------------------------------------------------------
 2.              |  An employee benefit plan within the meaning of Title I of the Employee Retirement
                 |  Income Security Act of 1974 that has total assets in excess of US$5,000,000; or
-------------------------------------------------------------------------------------------------------
 3.              |  Each of its shareholders, partners, or beneficiaries meets at least one of the
                 |  following conditions described above under INVESTOR STATUS.  Please also CHECK the
                 |  appropriate space in that section; or  (Note:  Income Statement must be completed
                 |  for each shareholder, partner or beneficiary)
-------------------------------------------------------------------------------------------------------
 4.              |  The plan is a self directed employee benefit plan and the investment decision is
                 |  made solely by a person that meets at least one of the conditions described above
                 |  under INVESTOR STATUS; or (Note: Income Statement must be completed for each
                 |  shareholder, partner or beneficiary)
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 5.              |  A corporation, a partnership or similar business trust with total assets in excess
                 |  of US$5,000,000.
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  7.4                                   Signatures
-------------------------------------------------------------------------------------------------------
The Subscription Document contains various statements and representations by subscribers and should be
carefully reviewed in its entirety with qualified legal counsel before executing this signature page.
I hereby certify that I have read, reviewed and am familiar with the terms of the Private Offering
Memorandum (PPM) dated August 8, 2004.  I agree to be bound by all of the terms and conditions of this
Subscription Document.
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    Complete for an Individual Purchaser         |Complete for a Trust, IRA, Corporation or Partnership
-------------------------------------------------------------------------------------------------------
  Signature of individual Purchaser, trustee,    | Investment Authorization.  The undersigned
  custodian or authorized person                 | corporation, partnership, benefit plan or IRA has
                                                 | all requisite authority to acquire the Stock hereby
                                                 | subscribed for and to enter into the Subscription
                                                 | Document, and further, the undersigned officer,
                                                 | partner or fiduciary of the subscribing entity has
                                                 | been duly authorized by all requisite action on the
                                                 | part of such entity to execute these documents on
                                                 | its behalf.  Such authorization has not been revoked
                                                 | and is still in full force and effect.
-------------------------------------------------------------------------------------------------------
Print Name of Purchaser, trustee,                | Signature and title of Purchaser, trustee,
custodian or authorized person                   | custodian or authorized person
                                                 |
                                                 |
                                                 |
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Date of Execution                                | City, State or Country
                                                 |
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       SECTION 8.  ACCEPTANCE
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 8.1    Acceptance
-------------------------------------------------------------------------------------------------------
 Notice of Acceptance:  Your Subscription Agreement has been accepted
-------------------------------------------------------------------------------------------------------
 By:                                   | Its:                               | Date:
                                       |                                    |
                                       |                                    |
    For: iMedia International, Inc.    |                                    |
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</TABLE>

                  CERTIFICATE OF NON-U.S. PERSON

     The undersigned, in connection with the possible offer and sale to the
undersigned of Units of iMedia International, Inc., a Delaware corporation
(the "Company"), hereby certifies to the Company and to the Company's legal
counsel as follows:

1. The undersigned's principal business address is__________________________.

2. The undersigned is NOT a "U.S. Person" as defined in Rule 902(k) of
Regulation S ("Regulation S") promulgated by the United States Securities and
Exchange Commission under the United States Securities Act of 1933, as amended
(the "Securities Act"). (Note: A copy of Rule 902(k) and rule 902(l) of
Regulation S is attached hereto as Annex I.)

3. If the undersigned acquires securities of the Company, the undersigned is
not and will not be acquiring those securities of the Company for the account
or benefit of any U.S. Person as defined in Rule 902(k) of Regulation S.

4. The undersigned understands that the Company and the Company's legal
counsel are relying on all information contained in this Certificate of
Non-U.S. Person in determining to offer and sell securities of the Company to
the undersigned in a manner exempt from the registration requirements of the
Securities Act.

5. The Company hereby advises the undersigned (a) that securities of the
Company that may be acquired by the undersigned will be issued by the Company
without registration under the Securities Act and applicable state securities
laws in reliance on one or more exemptions from the registration requirements
of the Securities Act and applicable state securities laws and (b) that those
securities of the Company therefore cannot be resold unless they are
registered under the Securities Act and applicable state securities laws or
unless an exemption from the registration requirements of the Securities Act
and applicable state securities laws is available to be relied on with respect
to any contemplated resale. The undersigned understands and the undersigned
hereby acknowledges to have been advised by the Company of all of the
foregoing information set forth in this paragraph.

IN WITNESS WHEREOF, this Certificate of Non-U.S. Person is effective as of
_____________, 2004.

_____________________________
Signature

            ANNEX I TO CERTIFICATE OF NON-U.S. PERSON
             Rule 902(c):  Directed Selling Efforts.

(1)   "Directed selling efforts" means any activity undertaken for the purpose
of, or that could reasonably be expected to have the effect of, conditions the
market in the United States for any of the securities being offered in
reliance on this Regulation S (Rule 901 through Rule 905, and Preliminary
Notes). Such activity includes placing an advertisement in a publication "with
a general circulation in the United States" that refers to the offering of
securities being made in reliance upon this Regulation S.

(2)    Publication "with a general circulation in the United States":

       (i) is defined as any publication that is printed primarily for
distribution in the United States, or has had, during the preceding twelve
months, an average circulation in the United States of 15,000 or more copies
per issue; and

       (ii) will encompass on the U.S. edition of any publication printing a
separate U.S. edition if the publication, without considering its U.S.
edition, would not constitute a publication with a general circulation in the
United States.

(3)    The following are not "directed selling efforts":

       (i)  placing an advertisement required to be published under U.S. or
foreign law, or under rules or regulations of U.S. or foreign regulatory or
self-regulatory authority, provided the advertisement contains no more
information than legally required and includes a statement to the effect that
the securities have not been registered under the Act and may not be offered
or sold in the United States (or to a U.S. person, if the advertisement
relates to an offering under Category 2 or 3 (paragraph (b)(2) or (b)(3)) in
Rule 903) absent registration or an applicable exemption from the registration
requirements;

       (ii)  contact with persons excluded from the definition of "U.S.
person" pursuant to paragraph (k)(2)(vi) of this Rule 902 or persons holding
accounts excluded from the definition of "U.S. person" pursuant to paragraph
(k)(2)(i) of this Rule 902, solely in their capacities as holders of such
accounts;

       (iii) a tombstone advertisement in any publication with a general
circulation in the United States, provided:

             (A) The publication has less than 20% of its circulation,
calculated by aggregating the circulation of its U.S. and comparable non-U.S.
editions, in the United States;

             (B) Such advertisement contains a legend to the effect that the
securities have not been registered under the Act and may not be offered or
sold in the United States (or to a U.S. person, if the advertisement relates
to an offering under Category 2 or 3 (paragraph (b)(2) or (b)(3)) in Rule 903)
absent registration or an applicable exemption from the registration
requirements; and

             (C) Such advertisement contains no more information than:

                 (1)    The issuer's name;

                 (2)    The amount and title of the securities being sold;

                 (3)    A brief indication of the issuer's general type of
                        business;

                 (4)    The price of the securities;

                 (5)    The yield of the securities, if debt securities with
                        fixed (non- contingent) interest provision;

                 (6)    The name and address of the person placing the
                        advertisement, and whether such person is
                        participating in the distribution;

                 (7)    The names of the managing underwriters;

                 (8)    The dates, if any, upon which the sales commenced and
                        concluded;

                 (9)    Whether the securities are offered or were offered by
                        rights issued to security holders and, if so, the
                        class of securities that are entitled or  were
                        entitled to subscribe, the subscription ratio, the
                        record date, the dates (if any) upon which the rights
                        were issued and expired, and the subscription price;
                        and

                 (10)   Any legend required by law or any foreign or U.S.
                        regulatory or self-regulatory authority;

       (iv) BONA FIDE visits to real estate, plants or other facilities
located in the United States and tours thereof conducted for a prospective
investor by an issuer, a distributor, any of their respective affiliates or a
person acting on behalf of any of the foregoing;

       (v) Distribution in the United States of a foreign broker-dealer's
quotations by a third-party system that distributes such quotations primarily
in foreign countries if:

           (A) Securities transactions cannot be executed between foreign
broker-dealers and persons in the United States through the system; and

           (B) The issuer, distributors, their respective affiliates, persons
acting on behalf of any of the foregoing, foreign broker-dealers and other
participants in the system do not initiate contacts with U.S. persons or
persons within the United States, beyond those contacts exempted under
Exchange Act Rule 15a-6; and

       (vi) Publication by an issuer of  a notice in accordance with Rule 135
or Rule 135c.

       (vii) Providing any journalist with access to press conferences held
outside of the United States, to meetings with the issuer or selling security
holder representatives conducted outside the United States, or to written
press-related materials released outside the United States, at or in which a
present or proposed offering of securities is discussed, if the requirements
of Rule 135e are satisfied.

Rule 902(k):  U.S. Person.

(1)    "U.S. PERSON" MEANS:

       (i)  any natural person resident in the United States;

       (ii) any partnership or corporation organized or incorporated under the
laws of the United States;

       (iii) any estate of which any executor or administrator is a U.S.
person;

       (iv) any trust of which any trustee is a U.S. person;

       (v)  any agency or branch of a foreign entity located in the United
States;

       (vi) any non-discretionary account or similar account (other than an
estate or trust) held by a dealer or other fiduciary for the benefit account
of a U.S. person;

       (vii) any discretionary account or similar account (other than an
estate or trust) held by a dealer or other fiduciary organized, incorporated,
or (if an individual) resident in the United States; and

       (viii)any partnership or corporation if:

             (A)    organized or incorporated under the laws of any foreign
jurisdiction; and

             (B)    formed by a U.S. person principally for the purpose of
investing in securities not registered under the [Securities] Act, unless it
is organized or incorporated, and owned, by accredited investors (as defined
in Rule 501 (a) under the [Securities] Act) who are not natural persons,
estates or trusts.

(2)   Notwithstanding paragraph (o)(1) of this section, any discretionary
account or similar account (other than an estate or trust) held for the
benefit or account of a non-U.S. person by a dealer or other professional
fiduciary organized, incorporated, or (if an individual) resident in the
United States shall not be deemed a "U.S. person."

(3)   Notwithstanding paragraph (o)(1) of this section, any estate of which
any professional fiduciary acting as executor or administrator is a U.S.
person shall not be deemed a U.S. person if:

       (i)  an executor or administrator of the estate who is not a U.S.
person has sole or shared investment discretion with respect to the assets of
the estate; and

       (ii) the estate is governed by foreign law.

(4)    Notwithstanding paragraph (o)(1) of this section, any trust of which
any professional fiduciary acting as trustee is a U.S. person shall not be
deemed a U.S. person if a trustee who is not a U.S. person has sole or shared
investment discretion with respect to the trust assets, and no beneficiary of
the trust (and no settlor if the trust is revocable) is a U.S. person.

(5)    Notwithstanding paragraph (o)(1) of this section, an employee benefit
plan established and administered in accordance with the law of a country
other than the United States and customary practices and documentation of such
country shall not be deemed a U.S. person.

(6)    Notwithstanding paragraph (o)(1) of this section, any agency or branch
of a U.S. person located outside the United States shall not be deemed a "U.S.
person" if:

       (i) the agency or branch operates for valid business reasons; and

       (ii)the agency or branch is engaged in the business of insurance or
banking and is subject to substantive insurance or banking regulation,
respectively, in the jurisdiction where located.

(7)    The International Monetary Fund, the International Bank for
Reconstruction and Development, the Inter-American Development Bank, the Asian
Development Bank, the African Development Bank, the United Nations, and their
agencies, affiliates and pension plans, and any other similar international
organizations, their agencies, affiliates and pension plans shall not be
deemed "U.S. persons."

Rule 902(p): United States.

"United States" means the United States of America, its territories and
possessions, any State of the United States, and the District of Columbia.Exhibit 10.4

                       TERM LOAN AGREEMENT

                    Dated as of April 22, 2004

    This TERM LOAN AGREEMENT (this "Agreement") is entered into between IMEDIA
INTERNATIONAL, INC., a corporation organized under the laws of the State of
Delaware (the "Borrower"), and AUGUSTINE FUND L.P., a limited partnership
formed under the laws of the State of  Delaware (the "Lender").  Capitalized
terms used herein shall have the meanings ascribed to such terms in Section 10
of this Agreement.

    In consideration of the mutual covenants and undertakings contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Borrower and the Lender
hereby agree as follows:

                         SECTION 1. LOAN

      SECTION  1.1. TERM LOAN.  Subject to the terms and conditions of this
Agreement, the Lender agrees to loan to the Borrower, and the Borrower agrees
to borrow from the Lender, the principal amount of Two Hundred Fifty Thousand
Dollars ($250,000) (such amount, the "Term Loan", and together with interest
that may hereafter accrue and any amounts which may hereafter become owing to
the Lender under Section 11.9, the "Obligations").

     SECTION 1.2. CONVERTIBLE NOTE.  The Term Loan shall be evidenced by a
convertible promissory note (the "Convertible Note"), substantially in the
form of Exhibit A, with appropriate insertions, dated the date hereof, payable
to the order of the Lender.

     SECTION 1.3. MATURITY DATE.  The Term Loan shall be due and payable on
the "Maturity Date" determined in accordance with the following:

     (a) The initial Maturity Date shall be July 21, 2004.

     (b) The Borrower may elect to extend the Maturity Date to October 19,
2004 at any time on written notice to Lender delivered prior to the date set
forth in Section 1.3(a).

     (c) If the Obligations shall have not been repaid in full prior to the
date set forth in Section 1.3(b), the Maturity Date shall be automatically
extended to January 17, 2005.

                   SECTION 2. INTEREST AND FEES

      SECTION 2.1. INTEREST.  The Borrower agrees to pay interest on the
unpaid principal amount of the Term Loan from time to time outstanding
hereunder at the following rates per year, compounded monthly (with the result
that the interest accrued during each month is added to the principal amount
of the Term Loan and subsequent interest shall be calculated in the same
manner on the increased principal amount of the Term Loan):

      (a) before maturity of the Term Loan, whether by acceleration or
otherwise, at the rate per annum equal to ten percent (8%); and

      (b) after the maturity of the Term Loan, whether by acceleration or
otherwise, until paid, at a rate per annum equal to twelve percent (12%) (the
"Default Rate").

     SECTION 2.2. INTEREST PAYMENT DATE.  Accrued interest shall be paid in
full on the Maturity Date.

     SECTION 2.3. BASIS OF COMPUTATION.  Interest shall be computed for the
actual number of days elapsed on the basis of a year consisting of 360 days,
including the date the Term Loan is made and excluding the date the Term Loan
or any portion thereof is paid or prepaid.

               SECTION 3. PAYMENTS AND PREPAYMENTS

     SECTION 3.1. PAYMENTS.

     (a) Place of Payment.  All payments of principal, interest, fees and
other amounts payable hereunder, shall be made to the Lender at its office at
141 West Jackson Boulevard, Suite 2182, Chicago, Illinois  60604.

     (b) Form of Payment.  All payments of principal and interest shall be
made by wire transfer to the Lender.

     SECTION 3.2. PREPAYMENT.  The Borrower may from time to time prepay the
Term Loan or any portion thereof without premium or penalty upon ten (10)
days' prior written notice to Lender.  Such prepayment shall be subject to
Lender's exercise of its conversion rights as specified in Section 4 during
such ten (10) day notice period.

                   SECTION 4. CONVERSION RIGHTS

     SECTION 4.1. LENDER'S CONVERSION RIGHTS.  The Lender may, at any time
while the Convertible Note is outstanding prior to or on the Maturity Date,
convert some or all of the outstanding Obligations into a number of shares of
the Borrower's common stock, $0.001 par value ("Common Stock") equal to the
Conversion Shares.

     SECTION 4.2. CONVERSION EVENT.  To effect a conversion (a "Conversion
Event") the Lender shall execute and deliver to the Borrower a Conversion
Notice (in the form attached to the Convertible Note), and, in the event that
the entire amount outstanding under the Convertible Note is converted, Lender
shall also surrender the Convertible Note to the Company for cancellation.
Upon partial conversion of the Convertible Note, Borrower shall at the request
of the Lender and contemporaneously with delivery of the Conversion Shares,
issue a new note in the form of Exhibit A to Lender for the principal balance
of the Term Loan which shall not have been converted or paid.

     SECTION 4.3. REMAINING OBLIGATIONS.  Any remaining Obligations that have
not been converted shall be paid in cash by the Company upon the Maturity
Date.  Interest on the Term Loan shall cease to accrue with respect to all
principal then being converted to equity in connection with a Conversion Event
(and with respect to all accrued interest thereon) upon the Company's receipt
of a Conversion Notice.

     SECTION 4.4. CALCULATION OF CONVERSION SHARES.  The number of "Conversion
Shares" shall be calculated as follows

     (a) If the Conversion Notice is delivered prior to the date set forth in
Section 1.3(a), the number of Conversion Shares shall be equal to total sum of
Obligations specified in the Conversion Notice as being subject to conversion,
such that each $1.00 of Obligations so converted will result in one (1)
Conversion Share.

    (b) If the Conversion Notice is delivered prior to the date set forth in
Section 1.3(b), the number of Conversion Shares shall be equal to total sum of
Obligations specified in the Conversion Notice as being subject to conversion,
multiplied by two (2), such that each $1.00 of Obligations so converted will
result in two (2) Conversion Shares.

    (c) If the Conversion Notice is delivered prior to the date set forth in
Section 1.3(c), the number of Conversion Shares shall be equal to total sum of
Obligations specified in the Conversion Notice as being subject to conversion,
multiplied by four (4), such that each $1.00 of Obligations so converted will
result in four (4) Conversion Shares.

No fractional shares of Common Stock will be issued on conversion of any
Obligations.  If any conversion results in an obligation to issue a fraction
of a share of Common Stock, the Company will pay the value of that fractional
share in cash.

     SECTION 4.5. DELIVERY OF CONVERSION SHARES.  All Conversion Shares shall
be duly authorized, validly issued, non-assessable and free and clear of all
claims, liens or encumbrances.  If the Conversion Shares are certificated,
certificates representing the shares of Common Stock issued upon conversion
hereof shall be delivered to Lender.  Borrower shall deliver such certificates
or make appropriate notations to show Lender as the record and beneficial
owner of the Conversion Shares within two (2) Trading Days of (i) the date
specified in the Conversion Notice or (ii) the date Borrower actually receives
the Conversion Notice from Lender, whichever is later.  Borrower agrees that
its issuance of the Convertible Note constitutes full authority to its
officers, agents, and transfer agents who are charged with the duty of
executing and issuing stock certificates to execute and issue the necessary
certificates for the Conversion Shares.

     SECTION 4.6. ADJUSTMENTS TO CONVERSION.  The number of Conversion Shares
and the kind of shares or other securities to be issued upon a Conversion
Event shall be subject to adjustment from time to time upon the happening of
certain events while this conversion right remains outstanding, as follows:

     (a) Merger, Sale of Assets, etc.  If Borrower at any time shall
consolidate with or merge into or sell or convey all or substantially all its
assets to any other corporation, the Convertible Note, as to the unpaid
principal portion thereof, shall thereafter be deemed to evidence the right to
purchase such number and kind of shares or other securities and property as
would have been issuable or distributable on account of such consolidation,
merger, sale or conveyance, upon or with respect to the securities subject to
the conversion or purchase right immediately prior to such consolidation,
merger, sale or conveyance.  The foregoing provision shall similarly apply to
successive transactions of a similar nature by any such successor or
purchaser.  Without limiting the generality of the foregoing, the
anti-dilution provisions of this Section shall apply to such securities of
such successor or purchaser after any such consolidation, merger, sale or
conveyance.

     (b) Reclassification, etc.  If Borrower at any time shall, by
reclassification or otherwise, change the Common Stock into the same or a
different number of securities of any class or classes, the Obligations, as to
the unpaid portion thereof, shall thereafter be deemed to evidence the right
to purchase an adjusted number of such securities and kind of securities as
would have been issuable as the result of such change with respect to the
Common Stock immediately prior to such reclassification or other change.

     (c) Stock Splits, Combinations and Dividends.  If the shares of Common
Stock are subdivided or combined into a greater or smaller number of shares of
Common Stock, or if a dividend is paid on the Common Stock in shares of Common
Stock, the number of Conversion Shares shall be proportionately increased in
case of subdivision of shares or stock dividend or proportionately decreased
in the case of combination of shares, in each such case by the ratio which the
total number of shares of Common Stock outstanding immediately after such
event bears to the total number of shares of Common Stock outstanding
immediately prior to such event.

     SECTION 4.7. RESERVATION OF SHARES.  Borrower shall reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of Common Stock upon the full conversion of the Convertible
Note.

     SECTION 4.8. CONVERSION LIMITATIONS.  Notwithstanding anything to the
contrary herein, Lender may not exercise its rights under this Section 4 if
such conversion would result in the total number of shares of Common Stock
deemed beneficially owned by Lender (together with all shares of Common Stock
deemed beneficially owned by any of Lender's Affiliates that would be
aggregated for purposes of determining a group under Section 13(d) of the
Exchange Act) exceeding, when issued, 4.9% of the total issued and outstanding
shares of the Company's Common Stock (the "Restricted Ownership Percentage");
provided, however, that (i) Lender shall have the right at any time and from
time to time to increase or decrease its Restricted Ownership Percentage and
otherwise waive in whole or in part the restrictions of this subparagraph (h)
immediately upon written notice to the Company, and (ii) Lender can make
subsequent adjustments pursuant to the preceding clause (i) any number of
times; and provided further that nothing in the foregoing shall prevent the
partial conversion of the Obligations for such number of shares of Common
Stock as do not exceed the Restricted Ownership Percentage.

                 SECTION 5. COMMON STOCK WARRANTS

     SECTION 5.1. ISSUANCE OF TERM LOAN WARRANTS.  In consideration of the
Lender's willingness to make the Term Loan, Borrower will execute and deliver
to the Lender a warrant to purchase 50,000 shares of Common Stock, in the form
attached hereto as Exhibit B, and a warrant to purchase 250,000 shares of
Common Stock, in the form attached hereto as Exhibit C (both such warrants
collectively, the "Term Loan Warrants").

     SECTION 5.2. ISSUANCE OF CONVERSION WARRANTS.  Upon conversion of the
Convertible Note in full (or upon conversion of all amounts remaining under
the Convertible Note, if prior conversions were made in part), Borrower will
execute and deliver to the Lender a warrant to purchase 325,000 shares of
Common Stock, in the form attached hereto as Exhibit D (the "Conversion
Warrant" and together with the Term Loan Warrants, the "Warrants").

     SECTION 5.3. RESERVATION OF SHARES.  Borrower shall reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of Common Stock upon exercise of the Warrants.

            SECTION 6. REPRESENTATIONS AND WARRANTIES

    To induce the Lender to make the Term Loan, the Borrower represents and
warrants to the Lender that (except in each case as otherwise disclosed in the
Borrower's filings with the SEC):

     SECTION 6.1. ORGANIZATION.  The Borrower is a corporation existing and in
good standing under the laws of the State of Delaware; each of its
subsidiaries is a corporation, limited liability company or partnership duly
existing and in good standing under the laws of the state of its formation;
the Borrower and each of its subsidiaries are duly qualified, in good standing
and authorized to do business in each jurisdiction where, because of the
nature of their activities or properties, such qualification is required,
except where the failure to be so qualified would not have a material adverse
effect on the Borrower's business, financial condition or results of
operations (a "Material Adverse Effect"); and the Borrower and each of its
subsidiaries have the power and authority to own their properties and to carry
on their businesses as now being conducted.

     SECTION 6.2. AUTHORIZATION; NO CONFLICT.  The borrowings hereunder, the
execution and delivery of this Agreement and the other Transaction Documents,
and the performance by the Borrower of its obligations under this Agreement
and the other Transaction Documents are within the Borrower's corporate
powers, have been authorized by all necessary corporate action, have received
all necessary governmental approval (if any shall be required) and do not and
will not contravene or conflict with any provision of law or of the charter or
by-laws of the Borrower or any subsidiary or of any agreement binding upon the
Borrower or any subsidiary.

     SECTION 6.3. FINANCIAL STATEMENTS.  The Borrower's audited consolidating
and consolidated financial statements have been prepared in conformity with
GAAP applied on a basis consistent with that of the preceding fiscal year, and
accurately present the financial condition of the Borrower and its
subsidiaries as at such dates and the results of their operations for the
respective periods then ended.  Since the date of those financial statements,
no material, adverse change in the business, properties, assets, operations,
conditions or prospects of the Borrower or any subsidiary has occurred.  There
is no known contingent liability of the Borrower or any subsidiary which is
not reflected in such financial statements.

     SECTION 6.4. TAXES.  The Borrower and its subsidiaries have filed or
caused to be filed all federal, state and local tax returns which are required
to be filed, and have paid or have caused to be paid all taxes as shown on
such returns or on any assessment received by them, to the extent that such
taxes have become due.

     SECTION 6.5. LIENS.  None of the assets of the Borrower or any subsidiary
thereof are subject to any mortgage, pledge, title retention lien, or other
lien, encumbrance or security interest.

     SECTION 6.6. ADVERSE CONTRACTS.  Neither the Borrower nor any of its
subsidiaries is a party to any agreement or instrument or subject to any
charter or other corporate restriction, nor is it subject to any judgment,
decree or order of any court or governmental body, which may have a material
and adverse effect on the business, property, assets, operations, conditions
or prospects of the Borrower and its subsidiaries taken as a whole or on the
ability of the Borrower to perform its obligations under this Agreement and
the other Transaction Documents.  Neither the Borrower nor any of its
subsidiaries has, nor with reasonable diligence should have had, knowledge of
or notice that it is in default in the performance, observance or fulfillment
of any of the obligations, covenants or conditions contained in any such
agreement, instrument, restriction, judgment, decree or order.

     SECTION 6.7. REGULATION U.  The Borrower is not engaged principally in,
nor is one of the Borrower's important activities, the business of extending
credit for the purpose of purchasing or carrying "margin stock" within the
meaning of Regulation U of the Board of Governors of the Federal Reserve
System as now and from time to time hereinafter in effect.

     SECTION 6.8. LITIGATION AND CONTINGENT LIABILITIES.  No litigation
(including derivative actions), arbitration proceedings or governmental
proceedings are pending or threatened against the Borrower or any of its
subsidiaries which would (singly or in the aggregate), if adversely
determined, have a Material Adverse Effect.

                       SECTION 7. COVENANTS

     Until all obligations of the Borrower hereunder and under the Convertible
Note are paid and/or fulfilled in full, the Borrower agrees that it shall, and
shall cause each of its subsidiaries to, comply with the following covenants,
unless the Lender consents otherwise in writing:

     SECTION 7.1. CORPORATE EXISTENCE, MERGERS, ETC.  The Borrower and each
subsidiary shall preserve and maintain its corporate existence, rights,
franchises, licenses and privileges, and will not liquidate, dissolve, or
merge, or consolidate with or into any other corporation, or sell, lease,
transfer or otherwise dispose of all or a substantial part of its assets
(except those assets sold in the ordinary course of its business), except
that:

     (a) Any subsidiary may merge or consolidate with or into the Borrower or
any one or more wholly-owned subsidiaries; and

     (b) Any subsidiary may sell, lease, transfer or otherwise dispose of any
of its assets to the Borrower or one or more wholly-owned subsidiaries.

      SECTION 7.2. INSPECTION.  The Borrower and each subsidiary shall permit
the Lender and its agents at any time during normal business hours to inspect
their properties and to inspect and make copies of their books and records,
provided that the Lender agrees to enter into confidentiality agreements with
respect to the foregoing.

     SECTION 7.3. USE OF PROCEEDS.

     (a) Use of Proceeds.  The Borrower shall use the proceeds from the Term
Loan solely for operating costs.

     (b) Margin Regulations.  Neither the Borrower nor any subsidiary shall
use or permit any proceeds of the Term Loan to be used, either directly or
indirectly, for the purpose, whether immediate, incidental or ultimate, of
"purchasing or carrying any margin stock" within the meaning of Regulations U
or X of the Board of Governors of the Federal Reserve System, as amended from
time to time.

     (c) Tender Offers and Going Private.  Neither the Borrower nor any
subsidiary shall use (or permit to be used) any proceeds of the Term Loan to
acquire any security in any transaction which is subject to Section 13 or 14
of the Securities Exchange Act of 1934, as amended, or any regulations or
rulings thereunder.

    SECTION 7.4. COMPLIANCE WITH LAW.  The Borrower and each of its
subsidiaries shall comply in all material respects with all laws and
regulations (whether federal, state or local and whether statutory,
administrative, judicial or otherwise) and with every lawful governmental
order or similar action (whether administrative or judicial) applicable to it,
except in each case as would not have a Material Adverse Effect.
SECTION 7.5. AFFILIATE TRANSACTIONS.  Not enter into any transaction with an
Affiliate, except for transactions in the ordinary course of business pursuant
to the reasonable requirements of the Borrower's or each subsidiaries'
business and upon fair and reasonable terms no less favorable to the Borrower
or the subsidiaries than the Borrower or the subsidiaries would obtain in a
comparable arms-length transaction.

                 SECTION 8. CONDITIONS OF LENDING

     The obligation of the Lender to make the Term Loan is subject to each of
the following conditions precedent:

     SECTION 8.1. DOCUMENTATION.  The Lender shall have received all of the
following, each duly executed and dated a date acceptable to the Lender, in
form and substance satisfactory to the Lender and its counsel, at the expense
of the Borrower, and in such number of signed counterparts as the Lender may
request (except for the Convertible Note and the Term Loan Warrants, of which
only the original shall be signed):

     (a) This Agreement;

     (b) The Convertible Note;

     (c) The Term Loan Warrants;

     (d) A Registration Rights Agreement, in the form attached hereto as
Exhibit E (the "Registration Rights Agreement");

     (e) A copy of a resolution of the Board of Directors of the Borrower
authorizing or ratifying the execution, delivery and performance,
respectively, of this Agreement and the other Transaction Documents, certified
by the secretary or assistant secretary of the Borrower; and

     (f) Such other documents and certificates as the Lender may request.

     SECTION 8.2. REPRESENTATIONS AND WARRANTIES; NO DEFAULT.

     (a) Representations and Warranties.  At the date of the Term Loan, the
Borrower's representations and warranties set forth herein shall be true and
correct in all material respects as at such date with the same effect as
though those representations and warranties had been made on and as at such
date.

     (b) No Default.  At the time of the Term Loan, and immediately after
giving effect to the Term Loan, the Borrower shall be in compliance with all
the terms and provisions set forth herein on its part to be observed or
performed, and no Event of Default or Unmatured Event of Default shall have
occurred and be continuing at the time of the Term Loan, or would result from
the making of the Term Loan or the issuance of the Term Loan Warrants.

     SECTION 8.3. NO MATERIAL ADVERSE CHANGE.  No material adverse change in,
or effect on, (a) the business, assets, properties, operations, condition or
prospects of the Borrower or any of its subsidiaries or (b) the ability of the
Borrower to perform its obligations under this Agreement and the other
Transaction Documents, in all cases whether due to a single circumstance or
event or an aggregation of circumstances or events, shall have occurred.

                        SECTION 9. DEFAULT

     SECTION 9.1. EVENTS OF DEFAULT.  Each of the following occurrences is
hereby defined as an "Event of Default":

     (a) Nonpayment.  The Borrower shall fail to make any payment of
principal, interest, or other amounts payable hereunder when and as due; or

     (b) Default under Related Documents.  Any default, event of default, or
similar event shall occur or continue under any instrument, document, note,
agreement, or guaranty delivered to the Lender in connection with the Term
Loan (including without limitation the Convertible Note, the Term Loan
Warrants and the Registration Rights Agreement), or any such instrument,
document, note, agreement, or guaranty shall not be, or shall cease to be,
enforceable in accordance with its terms; or

     (c) Cross-Default.  There shall occur any default or event of default, or
any event which might become such with notice or the passage of time or both,
or any similar event, or any event which requires the prepayment of borrowed
money or the acceleration of the maturity thereof, under the terms of any
evidence of indebtedness or other agreement issued or assumed or entered into
by the Borrower or any of its subsidiaries or under the terms of any
indenture, agreement or instrument under which any such evidence of
indebtedness or other agreement is issued, assumed, secured or guaranteed, in
each case in respect of an amount that exceeds $100,000, and such event shall
continue beyond any applicable period of grace; or

     (d) Dissolutions, etc.  The Borrower or any subsidiary shall fail to
comply with any provision concerning its existence or any prohibition against
dissolution, liquidation, merger, consolidation or sale of assets; or

     (e) Warranties.  Any representation, warranty, schedule, certificate,
financial statement, report, notice or other writing furnished by or on behalf
of the Borrower or any of its subsidiaries to the Lender is false or
misleading in any material respect on the date as of which the facts therein
set forth are stated or certified; or

     (f) ERISA.  (i) Institution of any steps by the Borrower or any
subsidiary to terminate a Plan if as a result of such termination the Borrower
or such subsidiary could be required to make a contribution to such Plan, or
could incur a liability or obligation to such Plan, in either case in excess
of $100,000; (ii) a contribution failure occurs with respect to any plan
sufficient to give rise to a lien under Section 302(f) of ERISA with respect
to any Plan; (iii) there shall occur any withdrawal or partial withdrawal from
a Multiemployer Plan and the withdrawal liability (without unaccrued interest)
to Multiemployer Plans as a result of such withdrawal (including any
outstanding withdrawal liability that the Borrower or any subsidiary and any
ERISA Affiliate have incurred on the date of such withdrawal) exceeds
$100,000; or (iv) any "reportable" event shall occur under ERISA in respect of
any employee benefit plan maintained for employees of the Borrower or any
subsidiary; or

     (g) Litigation.  Any suit, action or other proceeding (judicial or
administrative) commenced against the Borrower or any of its subsidiaries, or
with respect to any assets of the Borrower or such subsidiary, shall threaten
to have a material and adverse effect on the asset, condition (financial or
otherwise) or future operations of the Borrower or such subsidiary; or a final
judgment or settlement in excess of $100,000 in excess of insurance shall be
entered in, or agreed to in respect of, any such suit, action or proceeding;
or

     (h) Noncompliance with this Agreement.  The Borrower shall fail to comply
in any material respect with any provision hereof, which failure does not
otherwise constitute an Event of Default, and such failure shall continue for
ten (10) days after the occurrence of such failure; or

     (i) Bankruptcy.  Any bankruptcy, insolvency, reorganization, arrangement,
readjustment, liquidation, dissolution, or similar proceeding, domestic or
foreign, is instituted by or against the Borrower or any of its subsidiaries,
or any such person shall take any step toward, or to authorize, such a
proceeding; or

     (j) Insolvency.  The Borrower or any of its subsidiaries shall become
insolvent, generally shall fail or be unable to pay its debts as they mature,
shall admit in writing its inability to pay its debts as they mature, shall
make a general assignment for the benefit of its creditors, shall enter into
any composition or similar agreement, or shall suspend the transaction of all
or a substantial portion of its usual business.

     SECTION 9.2. REMEDIES.  Upon the occurrence of any Event of Default set
forth in subsections (a)-(h) of Section 9.1 and during the continuance
thereof, the Lender or any other holder of the Convertible Note may declare
the Convertible Note and any other amounts owed to the Lender to be
immediately due and payable, whereupon the Convertible Note and any other
amounts owed to the Lender shall forthwith become due and payable.  Upon the
occurrence of any Event of Default set forth in subsections (i)-(j) of Section
9.1, the Convertible Note and any other amounts owed to the Lender shall be
immediately and automatically due and payable without action of any kind on
the part of the Lender or any other holder of the Convertible Note.  The
Borrower expressly waives presentment, demand, notice or protest of any kind
in connection herewith.  The Lender shall promptly give the Borrower notice of
any such declaration, but failure to do so shall not impair the effect of such
declaration.  No delay or omission on the part of the Lender or any holder of
the Convertible Note in exercising any power or right hereunder or under the
Convertible Note shall impair such right or power or be construed to be a
waiver of any Event of Default or any acquiescence therein, nor shall any
single or partial exercise of any power or right hereunder preclude other or
further exercise thereof, or the exercise of any other power or right.

                     SECTION 10. DEFINITIONS

     SECTION 10.1. GENERAL.  As used herein:

     (a) "Affiliate" of any Person means (a) any Person that, directly or
indirectly, is in control of, is controlled by, or is under common control
with such Person, (b) any Person who is a director or officer (i) of such
Person, (ii) of any subsidiary of such Person or (iii) of any Person described
in clause (a) above or (c) in the case of a trust, its protectors or trustees,
any Person who is or has been a beneficiary thereof, or any Person who is or
has been able to appoint a beneficiary thereof.  For purposes of this
definition, control of a Person shall mean the power, direct or indirect (i)
to vote 25% or more of the securities having ordinary voting power for the
election of directors of such Person, whether by ownership of securities,
contract, proxy or otherwise, or (ii) to direct or cause the direction of the
management and policies of such Person, whether by ownership of securities,
contract, proxy or otherwise.

     (b) "Agreement" shall have the meaning set forth in the Preamble.

     (c) "Borrower" shall have the meaning set forth in the Preamble.

     (d) "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

     (e) "Conversion Warrant" shall have the meaning set forth in Section 5.2.

     (f) "Convertible Note" shall have the meaning set forth in Section 1.2.

     (g) "Default Rate" shall have the meaning set forth in Section 2.1(b).

     (h) "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

     (i) "ERISA Affiliate" means any corporation or trade or business which is
a member of the same controlled group of corporations (within the meaning of
Section 414(b) of the Code) as such Borrower or is under common control
(within the meaning of Section 414(c) of the Code) with the Borrower.

     (j) "GAAP" shall mean generally accepted accounting principles in the
United States of America as in effect on the date of this Agreement,
consistently applied.

     (k) "Lender" shall have the meaning set forth in the Preamble.

     (l) "Material Adverse Effect" shall have the meaning set forth in Section
6.1.

     (m) "Maturity Date" shall have the meaning set forth in Section 1.3.

     (n) "Multiemployer Plan" means a multiemployer plan defined as such in
Section 3(37) of ERISA to which contributions have been made by the Borrower
or any ERISA Affiliate as a "contributing sponsor" (within the meaning of
Section 4001(a)(13) of ERISA).

     (o) "PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

     (p) "Person" shall mean any individual, sole proprietorship, partnership,
joint venture, trust, unincorporated organization, association, corporation,
limited liability company, institution, public benefit corporation, other
entity or government (whether federal, state, county, city, municipal, local,
foreign, or otherwise, including any instrumentality, division, agency, body
or department thereof).

     (q) "Plan" means any plan, program or arrangement which constitutes an
"employee benefit plan" within the meaning of Section 3(3) of ERISA and which
is maintained or contributed to by the Borrower or its ERISA Affiliates for
the benefit of their employees, including former employees.

     (r) "subsidiary" means any corporation, partnership, joint venture,
trust, or other legal entity of which the Borrower owns directly or indirectly
50% or more of the outstanding voting stock or interest, or of which the
Borrower has effective control, by contract or otherwise.

     (s) "Registration Rights Agreement" shall have the meaning set forth in
Section 8.1(d).

     (t) "Term Loan" shall have the meaning set forth in Section 1.1.

     (u) "Term Loan Warrants" shall have the meaning set forth in Section 5.1.

     (v) "Trading Day" shall mean a day on which the principal market for the
Common Stock is open for business.  In the event of any disagreement between
the parties as to the principal market for the Common Stock, the market where
the three (3) most recent trades of Common Stock were made shall be considered
the principal market.

     (w) "Transaction Documents" shall mean, collectively, this Agreement, the
Convertible Note, the Warrants and the Registration Rights Agreement.

     (x) "Unmatured Event of Default" means an event or condition which would
become an Event of Default with notice or the passage of time or both.

     (y) "Warrants" shall have the meaning set forth in Section 5.2.
Except as and unless otherwise specifically provided herein, all accounting
terms in this Agreement shall have the meanings given to them by GAAP and
shall be applied and all reports required by this Agreement shall be prepared,
in a manner consistent with the Company's audited financial statements.

     SECTION 10.2. APPLICABILITY OF SUBSIDIARY AND AFFILIATE REFERENCES.
Provisions of this Agreement pertaining to any subsidiary or affiliate shall
apply only during such times as the Borrower has any subsidiary or affiliate.

                    SECTION 11. MISCELLANEOUS

     SECTION 11.1. WAIVER OF DEFAULT.  The Lender may, by written notice to
the Borrower, at any time and from time to time, waive any Event of Default or
Unmatured Event of Default, which shall be for such period and subject to such
conditions as shall be specified in any such notice.  In the case of any such
waiver, the Lender and the Borrower shall be restored to their former position
and rights hereunder and under the Convertible Note, respectively, and any
Event of Default or Unmatured Event of Default so waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to or impair any
right consequent thereon or to any subsequent or other Event of Default or
Unmatured Event of Default.

     SECTION 11.2. NOTICES.  All notices, requests and demands to or upon the
respective parties hereto shall be deemed to have been given or made when
deposited in the mail, postage prepaid, addressed:

     (a) if to the Lender to 141 West Jackson Boulevard, Suite 2182, Chicago,
Illinois  60604, Attention:  John T. Porter, telecopy no. (312) 427-5396,

     (b) if to the Borrower to 1721 21st Street, Santa Monica, California
90404, Attention:  Kelly Konzelman, telecopy no. (310) 453-6120,
or to such other address as may be hereafter designated in writing by the
respective parties hereto.

     SECTION 11.3. NONWAIVER; CUMULATIVE REMEDIES.  No failure to exercise,
and no delay in exercising, on the part of the Lender of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege.  The rights and remedies
of the Lender herein provided are cumulative and not exclusive of any rights
or remedies provided by law.

     SECTION 11.4. SURVIVAL OF AGREEMENTS.  All agreements, representations
and warranties made herein shall survive the delivery of the Convertible Note
and the making of the Term Loan.

     SECTION 11.5. SUCCESSORS.  This Agreement shall, upon execution and
delivery by the Borrower and acceptance by the Lender, become effective and
shall be binding upon and inure to the benefit of the Borrower, the Lender and
their respective successors and assigns, except that the Borrower may not
transfer or assign any of its rights or interest hereunder without the prior
written consent of the Lender.

     SECTION 11.6. CAPTIONS.  Captions in this Agreement are for convenience
of reference only and shall not define or limit any of the terms or provisions
hereof.  References herein to Sections or provisions without reference to the
document in which they are contained are references to this Agreement.

     SECTION 11.7. SINGULAR AND PLURAL.  Unless the context requires
otherwise, wherever used herein the singular shall include the plural and vice
versa, and the use of one gender shall also denote the others where
appropriate.

     SECTION 11.8. COUNTERPARTS.  This Agreement may be executed by the
parties on any number of separate counterparts, and by each party on separate
counterparts; each counterpart shall be deemed an original instrument; and all
of the counterparts taken together shall be deemed to constitute one and the
same instrument.

     SECTION 11.9. FEES.  The Borrower agrees to pay or reimburse the Lender
for all costs and expenses of enforcing this Agreement and the other
Transaction Documents, or preserving its rights hereunder or under any
document or instrument executed in connection herewith (including legal fees
and reasonable time charges of attorneys who may be employees of the Lender,
whether in or out of court, in original or appellate proceedings or in
bankruptcy).

     SECTION 11.10. CONSTRUCTION.  This Agreement and the other Transaction
Documents, and any other document or instrument executed in connection
herewith shall be governed by, and construed and interpreted in accordance
with, the internal laws of the State of Illinois and shall be deemed to have
been executed in the State of Illinois.

     SECTION 11.11. SUBMISSION TO JURISDICTION; VENUE.  To induce the Lender
to make the Term Loan, as evidenced by the Convertible Note and this
Agreement, the Borrower irrevocably agrees that, subject to the Lender's sole
and absolute election, all suits, actions or other proceedings in any way,
manner or respect, arising out of or from or related to this Agreement and the
other Transaction Documents or any document executed in connection herewith,
shall be subject to litigation in courts having sites within Illinois.  The
Borrower hereby consents and submits to the jurisdiction of any local, state
or federal court located within said city and state.  The Borrower hereby
waives any right it may have to trial by jury, to transfer or change the venue
of any suit, action or other proceeding brought against the Borrower by the
Lender in accordance with this Section, or to claim that any such proceeding
has been brought in an inconvenient forum.

                     [Signature Page Follows]

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

                             IMEDIA INTERNATIONAL, INC.

                             By:_______________________________________

                             Its:______________________________________

                             AUGUSTINE FUND L.P.

                             By:    AUGUSTINE CAPITAL MANAGEMENT,
                                    L.L.C., its general partner

                             By: ______________________________________

                             Its:______________________________________

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