Document:

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                                                                    EXHIBIT 10.4

                          SECURITIES PURCHASE AGREEMENT

        THIS SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of July
___, 2001, by and among BLAGMAN MEDIA INTERNATIONAL INC., a Nevada corporation,
with headquarters located at 1901 Avenue of the Stars, Suite 1710, Los Angeles,
CA 90067 (the "Company"), and the Buyers listed on Schedule I attached hereto
(individually, a "Buyer" or collectively "Buyers").

                                   WITNESSETH:

        WHEREAS, the Company and the Buyer(s) are executing and delivering this
Agreement in reliance upon an exemption from securities registration pursuant to
Section 4(2) and/or Rule 506 of Regulation D ("Regulation D") as promulgated by
the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended (the "1933 Act");

        WHEREAS, the Company has authorized the following new series of its
preferred stock, no par value per share (the "Preferred Stock"): the Company's
Series B Convertible Preferred Stock, par value $0.001 per share (the "Series B
Preferred Shares"), which shall be convertible into shares of the Company's
Common Stock, par value $0.001 per share (the "Common Stock") (as converted, the
"Conversion Shares"), in accordance with the terms of the Company's Certificate
of Designations Designating the Series B Preferred Shares, substantially in the
form attached hereto as Exhibit A (the "Certificate of Designations");

        WHEREAS, the Buyers wish to purchase, upon the terms and conditions
stated in this Agreement, an aggregate of 100 Series B Preferred Shares in the
respective amounts set forth opposite each Buyer's name on Schedule I and at a
purchase price of $10,000 per Series B Preferred Share (the "Purchase Price");
and

        WHEREAS, contemporaneously with the execution and delivery of this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement substantially in the form attached hereto as Exhibit B (the "Investor
Registration Rights Agreement") pursuant to which the Company has agreed to
provide certain registration rights under the 1933 Act and the rules and
regulations promulgated thereunder, and applicable state securities laws; and

        WHEREAS, the Series B Preferred Shares are being offered through The May
Davis Group, Inc. (the "Placement Agent"), as the Company's exclusive placement
agent for the offering; and

        WHEREAS, the aggregate proceeds of the sale of the Series B Preferred
Shares contemplated hereby shall be held in escrow pursuant to the terms of an
escrow agreement substantially in the form of the Escrow Agreement attached
hereto as Exhibit C.

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        NOW, THEREFORE, in consideration of the mutual covenants and other
agreements contained in this Agreement the Company and the Buyer(s) hereby agree
as follows:

        1. PURCHASE AND SALE OF SERIES B PREFERRED SHARES.

                (a) Purchase of Series B Preferred Shares. Subject to the
        satisfaction (or waiver) of the terms and conditions of this Agreement,
        each Buyer agrees, severally and not jointly, to purchase at Closing (as
        defined herein below) and the Company agrees to sell and issue to each
        Buyer, severally and not jointly, at Closing, Series B Preferred Shares
        in amounts corresponding with the Subscription Amount set forth opposite
        each Buyer's name on Schedule I hereto. Upon execution hereof by a
        Buyer, the Buyer shall wire transfer the Subscription Amount set forth
        opposite his name on Schedule I in same-day funds or a check payable to
        "First Union National Bank, as Escrow Agent for Blagman Media
        International Inc./The May Davis Group, Inc.", which Subscription Amount
        shall be held in escrow pursuant to the terms of the Escrow Agreement
        (as hereinafter defined) and disbursed in accordance therewith.
        Notwithstanding the foregoing, a Buyer may withdraw his Subscription
        Amount and terminate this Agreement as to such Buyer at any time after
        the execution hereof and prior to Closing (as hereinafter defined).

                (b) Closing Date. The closing of the purchase and sale of the
        Series B Preferred Shares (the "Closing") shall take place at 10:00 a.m.
        Eastern Standard Time on the fifth (5th) business day ("Closing Date")
        following the date hereof, subject to notification of satisfaction (or
        waiver) of the conditions to the Closing set forth in Sections 6 and 7
        below (or such later date as is mutually agreed to by the Company and
        the Buyers). The Closing shall occur on the Closing Date at the offices
        of Butler Gonzalez, LLP, 1000 Stuyvesant Avenue, Suite 6, Union, NJ
        07083 (or such other place as is mutually agreed to by the Company and
        the Buyers).

                (c) Escrow Arrangements; Form of Payment. Upon execution hereof
        by Buyer(s) and pending Closing, the aggregate proceeds of the sale of
        the Series B Preferred Shares to Buyer(s) pursuant hereto, plus the fees
        and expenses of the Placement Agent, shall be deposited in a
        non-interest bearing escrow account with First Union National Bank, as
        escrow agent ("Escrow Agent"), pursuant to the terms of an escrow
        agreement between the Company, the Placement Agent and the Escrow Agent
        in the form attached hereto as Exhibit C (the "Escrow Agreement").
        Subject to the satisfaction of the terms and conditions of this
        Agreement, on the Closing Date, (i) the Escrow Agent shall deliver to
        the Company in accordance with the terms of the Escrow Agreement such
        aggregate gross proceeds for the Series B Preferred Shares to be issued
        and sold to such Buyer(s) at the Closing minus the fees and expenses of
        the Placement Agent, by wire transfer of immediately available funds in
        accordance with the Company's written wire instructions, and (ii) the
        Company shall deliver to each Buyer, Series B Preferred Shares which
        such Buyer(s) is purchasing in amounts indicated opposite such Buyer's
        name on Schedule I, duly executed on behalf of the Company.

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        2. BUYER'S REPRESENTATIONS AND WARRANTIES.

                Each Buyer represents and warrants, severally and not jointly,
that:

                (a) Investment Purpose. Each Buyer is acquiring the Series B
        Preferred Shares and, upon conversion of Series B Preferred Shares , the
        Buyer will acquire the Conversion Shares then issuable for its own
        account for investment only and not with a view towards, or for resale
        in connection with, the public sale or distribution thereof, except
        pursuant to sales registered or exempted under the 1933 Act; provided,
        however, that by making the representations herein, such Buyer reserves
        the right to dispose of the Conversion Shares at any time in accordance
        with or pursuant to an effective registration statement covering such
        Conversion Shares or an available exemption under the 1933 Act.

                (b) Accredited Investor Status. Each Buyer is an "Accredited
        Investor" as that term is defined in Rule 501(a)(3) of Regulation D.

                (c) Reliance on Exemptions. Each Buyer understands that the
        Series B Preferred Shares are being offered and sold to it in reliance
        on specific exemptions from the registration requirements of United
        States federal and state securities laws and that the Company is relying
        in part upon the truth and accuracy of, and such Buyer's compliance
        with, the representations, warranties, agreements, acknowledgments and
        understandings of such Buyer set forth herein in order to determine the
        availability of such exemptions and the eligibility of such Buyer to
        acquire such securities.

                (d) Information. Each Buyer and its advisors (and his or its
        counsel), if any, have been furnished with all materials relating to the
        business, finances and operations of the Company and information he
        deemed material to making an informed investment decision regarding his
        purchase of the Series B Preferred Shares and the Conversion Shares,
        which have been requested by such Buyer. Each Buyer and its advisors, if
        any, have been afforded the opportunity to ask questions of the Company
        and its management. Neither such inquiries nor any other due diligence
        investigations conducted by such Buyer or its advisors, if any, or its
        representatives shall modify, amend or affect such Buyer's right to rely
        on the Company's representations and warranties contained in Section 3
        below. Each Buyer understands that its investment in the Series B
        Preferred Shares and the Conversion Shares involves a high degree of
        risk. Each Buyer is in a position regarding the Company, which, based
        upon employment, family relationship or economic bargaining power,
        enabled and enables such Buyer to obtain information from the Company in
        order to evaluate the merits and risks of this investment. Each Buyer
        has sought such accounting, legal and tax advice, as it has considered
        necessary to make an informed investment decision with respect to its
        acquisition of the Series B Preferred Shares and the Conversion Shares.

                (e) No Governmental Review. Each Buyer understands that no
        United States federal or state agency or any other government or
        governmental agency has passed on or

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        made any recommendation or endorsement of the Series B Preferred Shares
        or the Conversion Shares, or the fairness or suitability of the
        investment in the Series B Preferred Shares or the Conversion Shares,
        nor have such authorities passed upon or endorsed the merits of the
        offering of the Series B Preferred Shares or the Conversion Shares.

                (f) Transfer or Resale. Each Buyer understands that except as
        provided in the Registration Rights Agreement: (i) the Series B
        Preferred Shares have not been and are not being registered under the
        1933 Act or any state securities laws, and may not be offered for sale,
        sold, assigned or transferred unless (A) subsequently registered
        thereunder, or (B) such Buyer shall have delivered to the Company an
        opinion of counsel, in a generally acceptable form, to the effect that
        such securities to be sold, assigned or transferred may be sold,
        assigned or transferred pursuant to an exemption from such registration
        requirements; (ii) any sale of such securities made in reliance on Rule
        144 under the 1933 Act (or a successor rule thereto) ("Rule 144") may be
        made only in accordance with the terms of Rule 144 and further, if Rule
        144 is not applicable, any resale of such securities under circumstances
        in which the seller (or the person through whom the sale is made) may be
        deemed to be an underwriter (as that term is defined in the 1933 Act)
        may require compliance with some other exemption under the 1933 Act or
        the rules and regulations of the SEC thereunder; and (iii) neither the
        Company nor any other person is under any obligation to register such
        securities under the 1933 Act or any state securities laws or to comply
        with the terms and conditions of any exemption thereunder. The Company
        reserves the right to place stop transfer instructions against the
        shares and certificates for the Conversion Shares.

                (g) Legends. Each Buyer understands that the certificates or
        other instruments representing the Series B Preferred Shares and or the
        Conversion Shares shall bear a restrictive legend in substantially the
        following form (and a stop transfer order may be placed against transfer
        of such stock certificates):

                THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
                APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN
                ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
                TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
                OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
                STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933,
                AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
                OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS
                NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

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        The legend set forth above shall be removed and the Company shall issue
        a certificate without such legend to the holder of the Conversion Shares
        upon which it is stamped, if, unless otherwise required by state
        securities laws, (i) in connection with a sale transaction, provided the
        Conversion Shares are registered under the 1933 Act or (ii) in
        connection with a sale transaction, such holder provides the Company
        with an opinion of counsel, in form acceptable to the Company and its
        counsel, to the effect that a public sale, assignment or transfer of the
        Conversion Shares may be made without registration under the 1933 Act.

                (h) Authorization, Enforcement. This Agreement has been duly and
        validly authorized, executed and delivered on behalf of such Buyer and
        is a valid and binding agreement of such Buyer enforceable in accordance
        with its terms, except as such enforceability may be limited by general
        principles of equity or applicable bankruptcy, insolvency,
        reorganization, moratorium, liquidation and other similar laws relating
        to, or affecting generally, the enforcement of applicable creditors'
        rights and remedies.

                (i) Receipt of Documents. Each Buyer and his or its counsel has
        received and read in their entirety: (i) this Agreement and each
        representation, warranty and covenant set forth herein, the Investor
        Registration Rights Agreement, and the Escrow Agreement; (ii) all due
        diligence and other information necessary to verify the accuracy and
        completeness of such representations, warranties and covenants; (iii)
        the Company's Form 10-KSB, as amended,for the fiscal year ended
        September 30, 2000; (iv) the Company's Form 10-QSB for the fiscal
        quarter ended December 31, 2000 and March 2001; and (v) answers to all
        questions the Buyer submitted to the Company regarding an investment in
        the Company; and the Buyer has relied on the information contained
        therein and has not been furnished any other documents, literature,
        memorandum or prospectus.

                (j) Due Formation of Corporate and Other Buyers. If the Buyer(s)
        is a corporation, trust, partnership or other entity that is not an
        individual person, it has been formed and validly exists and has not
        been organized for the specific purpose of purchasing the Series B
        Preferred Shares and is not prohibited from doing so.

                (k) Due Authorization of Fiduciary Buyers. If the Buyer(s) is
        purchasing the Series B Preferred Shares in a fiduciary capacity for
        another person or entity, including, without limitation, a corporation,
        partnership, trust or any other entity, the Buyer(s) has been duly
        authorized and empowered to execute this Agreement and such other person
        fulfills all the requirements for purchase of the Series B Preferred
        Shares and agrees to be bound by the obligations, representations,
        warranties, and covenants contained herein. Upon request of the Company,
        the Buyer(s) will provide true, complete and current copies of all
        relevant documents creating the Buyers, authorizing its investment in
        the Company and/or evidencing the satisfaction of the foregoing.

                (l) Further Representations by Foreign Buyers. If the Buyer(s)
        is not a U.S. Person (as defined below), such Buyer hereby represents
        that such Buyer(s) is satisfied as to full observance of the laws of
        such Buyer's jurisdiction in connection with any

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        invitation to subscribe for the securities or any use of this Agreement,
        including: (i) the legal requirements of such Buyer's jurisdiction for
        the purchase of the securities, (ii) any foreign exchange restrictions
        applicable to such purchase, (iii) any governmental or other consents
        that may need to be obtained, and (iv) the income tax and other tax
        consequences, if any, which may be relevant to the purchase, holding,
        redemption, sale, or transfer of the securities. Such Buyer's
        subscription and payment for, and such Buyer's continued beneficial
        ownership of, the securities will not violate any applicable securities
        or other laws of such Buyer's jurisdiction. The term "U.S. Person" as
        used herein shall mean any person who is a citizen or resident of the
        United States or Canada, or any state, territory or possession thereof,
        including, but not limited to, any estate of any such person, or any
        corporation, partnership, trust or other entity created or existing
        under the laws thereof, or any entity controlled or owned by any of the
        foregoing.

                (m) No Legal Advice From the Company. Each Buyer acknowledges,
        that it had the opportunity to review this Agreement and the
        transactions contemplated by this Agreement with his or its own legal
        counsel and investment and tax advisors. Each Buyer is relying solely on
        such counsel and advisors and not on any statements or representations
        of the Company or any of its representatives or agents for legal, tax or
        investment advice with respect to this investment, the transactions
        contemplated by this Agreement or the securities laws of any
        jurisdiction.

                (n) No General Solicitation. Neither the Buyers, nor any of its
        affiliates, nor any person acting on its or their behalf, has engaged in
        any form of general solicitation or general advertising (within the
        meaning of Regulation D under the 1933 Act) in connection with the offer
        or sale of the Series B Preferred Shares or the Conversion Shares.

        3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

        The Company represents and warrants to each of the Buyers that:

                (a) Organization and Qualification. The Company and its
        subsidiaries are corporations duly organized and validly existing in
        good standing under the laws of the jurisdiction in which they are
        incorporated, and have the requisite corporate power to own their
        properties and to carry on their business as now being conducted. The
        Company is not qualified as a foreign corporation in California due to
        name restrictions, however, it's subsidiary is duly qualified as a
        foreign corporation to do business and is in good standing in every
        jurisdiction in which the nature of the business conducted by it makes
        such qualification necessary, except to the extent that the failure to
        be so qualified or be in good standing would not have a material adverse
        effect on the Company and its subsidiaries taken as a whole. The Company
        has provided to the Buyers copies of all material documents related to
        the transactions with Unisat Inc., and MNS Eagle Equity Group I Inc.
        (the "Reorganization")

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                (b) Authorization, Enforcement, Compliance with Other
        Instruments. (i) The Company has the requisite corporate power and
        authority to enter into and perform this Agreement, the Investor
        Registration Rights Agreement and any related agreements, and to issue
        the Series B Preferred Shares and the Conversion Shares in accordance
        with the terms hereof and thereof, (ii) the execution and delivery of
        this Agreement, the Registration Rights Agreement and any related
        agreements by the Company and the consummation by it of the transactions
        contemplated hereby and thereby, including, without limitation, the
        issuance of the Series B Preferred Shares the Conversion Shares and the
        reservation for issuance and the issuance of the Conversion Shares
        issuable upon conversion or exercise thereof, have been duly authorized
        by the Company's Board of Directors and no further consent or
        authorization is required by the Company, its Board of Directors or its
        stockholders, (iii) this Agreement and the Investor Registration Rights
        Agreement and any related agreements have been duly executed and
        delivered by the Company, (iv) this Agreement, the Investor Registration
        Rights Agreement and any related agreements constitute the valid and
        binding obligations of the Company enforceable against the Company in
        accordance with their terms, except as such enforceability may be
        limited by general principles of equity or applicable bankruptcy,
        insolvency, reorganization, moratorium, liquidation or similar laws
        relating to, or affecting generally, the enforcement of creditors'
        rights and remedies and (v) prior to the Closing Date, the Certificate
        of Designations substantially in the form attached hereto as Exhibit A
        has been filed with the Secretary of State of the State of Nevada and
        will be in full force and effect, enforceable against the Company in
        accordance with its terms.

                (c) Capitalization. The authorized capital stock of the Company
        consists of 100,000,000 shares of Common Stock $0.001 par value, and
        100,000,000 shares of Preferred Stock, $0.0011 par value. As of July
        23, 2001, the Company had 62,167,450 shares of Common Stock outstanding
        excluding 60,000 shares of Common Stock in its treasury which are being
        cancelled, the Company filed a Certificate of Designations authorizing
        600,000 shares of Series B Convertible Redeemable Preferred Stock par
        value $0.001 per share (the "Series B Stock") in connection with a
        proposed transaction with Mulligan Media and Communications Ltd. Such
        transaction was not consummated and no shares of the Series A Stock were
        issued in connection therewith. There are no shares of Preferred Stock
        issued and outstanding except for the transactions of the reorganized
        entities preceding the Reorganizations, for which the Company has relied
        on third party representations, all of such outstanding shares have been
        validly issued and are fully paid and nonassessable. Except as disclosed
        in the SEC Documents (as defined in Section 3(f)) as amended, no shares
        of Common Stock are subject to preemptive rights or any other similar
        rights or any liens or encumbrances suffered or permitted by the
        Company. Except as disclosed in the SEC Document, as of the date of
        this Agreement, (i) there are no outstanding options, warrants, rights
        to subscribe to, calls or commitments of any character whatsoever
        relating to, or securities or rights convertible into, any shares of
        capital stock of the Company or any of its subsidiaries, or contracts,
        commitments, understandings or arrangements by which the Company or any
        of its subsidiaries is or may become bound to issue additional shares of
        capital stock of the Company or any of its subsidiaries or options,
        warrants, scrip, rights to subscribe to, calls or commitments of

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        any character whatsoever relating to, or securities or rights
        convertible into, any shares of capital stock of the Company or any of
        its subsidiaries, (ii) there are no outstanding debt securities and
        (iii) there are no agreements or arrangements under which the Company or
        any of its subsidiaries is obligated to register the sale of any of
        their securities under the 1933 Act (except pursuant to the Registration
        Rights Agreement). There are no securities or instruments containing
        anti-dilution or similar provisions that will be triggered by the
        issuance of the Series B Preferred Shares as described in this
        Agreement. The Company has furnished to the Buyer true and correct
        copies of the Company's Certificate of Incorporation, as amended and as
        in effect on the date hereof (the "Certificate of Incorporation"), the
        Company's By-laws, as in effect on the date hereof (the "By-laws"), and
        the terms of all securities convertible into or exercisable for Common
        Stock and the material rights of the holders thereof in respect thereto
        other than stock options issued to employees and consultants.

                (d) Issuance of Securities. The Series B Preferred Shares are
        duly authorized and, upon issuance in accordance with the terms hereof,
        shall be duly issued, fully paid and nonassessable, are free from all
        taxes, liens and charges with respect to the issue thereof and are
        entitled to the rights and preferences set forth in the Certificate of
        Designations for the Series B Preferred Shares. The Conversion Shares
        issuable upon conversion of the Series B Preferred Shares will be duly
        authorized and reserved for issuance. Upon conversion or exercise in
        accordance with the Certificate of Designations the Conversion Shares
        will be duly issued, fully paid and nonassessable.

                (e) No Conflicts. Except as disclosed in SEC Documents, and
        assuming shareholder approval for an increase of the Company's Common
        Stock the execution, delivery and performance of this Agreement by the
        Company and the consummation by the Company of the transactions
        contemplated hereby will not (i) result in a violation of the
        Certificate of Incorporation, any certificate of designations of any
        outstanding series of preferred stock of the Company or the By-laws or
        (ii) conflict with or constitute a default (or an event which with
        notice or lapse of time or both would become a default) under, or give
        to others any rights of termination, amendment, acceleration or
        cancellation of, any agreement, indenture or instrument to which the
        Company or any of its subsidiaries is a party, or result in a violation
        of any law, rule, regulation, order, judgment or decree (including
        federal and state securities laws and regulations and the rules and
        regulations of the Nasdaq Stock Market Inc.'s OTC Bulletin Board on
        which the Common Stock is quoted) applicable to the Company or any of
        its subsidiaries or by which any property or asset of the Company or any
        of its subsidiaries is bound or affected. Except as disclosed in the SEC
        Documents, neither the Company nor its subsidiaries is in violation of
        any term of or in default under its Certificate of Incorporation or
        By-laws or their organizational charter or by-laws, respectively, or any
        material contract, agreement, mortgage, indebtedness, indenture,
        instrument, judgment, decree or order or any statute, rule or regulation
        applicable to the Company or its subsidiaries. The business of the
        Company and its subsidiaries is not being conducted, and shall not be
        conducted in violation of any material law, ordinance, or regulation of

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        any governmental entity. Except as specifically contemplated by this
        Agreement and as required under the 1933 Act and any applicable state
        securities laws, the Company is not required to obtain any consent,
        authorization or order of, or make any filing or registration with, any
        court or governmental agency in order for it to execute, deliver or
        perform any of its obligations under or contemplated by this Agreement
        or the Registration Rights Agreement in accordance with the terms hereof
        or thereof. Except as disclosed in the SEC Documents, all consents,
        authorizations, orders, filings and registrations which the Company is
        required to obtain pursuant to the preceding sentence have been obtained
        or effected on or prior to the date hereof. The Company and its
        subsidiaries are unaware of any facts or circumstance, which might give
        rise to any of the foregoing.

                (f) SEC Documents: Financial Statements. Except as set forth on
        Schedule 3(f) attached hereto, since April 2000 the Company has filed
        all reports, schedules, forms, statements and other documents required
        to be filed by it with the SEC under of the Securities Exchange Act of
        1934, as amended (the "1934 Act") (all of the foregoing filed prior to
        the date hereof or amended after the date hereof and all exhibits
        included therein and financial statements and schedules thereto and
        documents incorporated by reference therein, being hereinafter referred
        to as the "SEC Documents"). The Company has delivered to the Buyers or
        their representatives, or made available through the SEC's website at
        http://www.sec.gov., true and complete copies of the SEC Documents. As
        of their respective dates, the financial statements of the Company
        disclosed in the SEC Documents (the "Financial Statements") complied as
        to form in all material respects with applicable accounting requirements
        and the published rules and regulations of the SEC with respect thereto.
        Such financial statements have been prepared in accordance with
        generally accepted accounting principles, consistently applied, during
        the periods involved (except (i) as may be otherwise indicated in such
        Financial Statements or the notes thereto, or (ii) in the case of
        unaudited interim statements, to the extent they may exclude footnotes
        or may be condensed or summary statements) and fairly present in all
        material respects the financial position of the Company as of the dates
        thereof and the results of its operations and cash flows for the periods
        then ended (subject, in the case of unaudited statements, to normal
        year-end audit adjustments). No other information provided by or on
        behalf of the Company to the Buyer which is not included in the SEC
        Documents, including, without limitation, information referred to in
        Section 2(d) and (i) of this Agreement, contains any untrue statement of
        a material fact or omits to state any material fact necessary in order
        to make the statements therein, in the light of the circumstances under
        which they were made, not misleading.

                (g) 10(b)-5. The SEC Documents do not include any untrue
        statements of material fact, nor do they omit to state any material fact
        required to be stated therein necessary to make the statements made, in
        light of the circumstances under which they were made, not misleading.

                (h) Absence of Litigation. Except as disclosed in the SEC
        Documents, there is no action, suit, proceeding, inquiry or
        investigation before or by any court, public board, government agency,
        self-regulatory organization or body pending against or

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        affecting the Company, the Common Stock or any of the Company's
        subsidiaries, wherein an unfavorable decision, ruling or finding would
        (i) have a material adverse effect on the transactions contemplated
        hereby (ii) adversely affect the validity or enforceability of, or the
        authority or ability of the Company to perform its obligations under,
        this Agreement or any of the documents contemplated herein, or (iii)
        except as expressly disclosed in the SEC Documents, have a material
        adverse effect on the business, operations, properties, financial
        condition or results of operation of the Company and its subsidiaries
        taken as a whole.

                (i) Acknowledgment Regarding Buyer's Purchase of the Series B
        Preferred Shares. The Company acknowledges and agrees that the Buyer(s)
        is acting solely in the capacity of an arm's length purchaser with
        respect to this Agreement and the transactions contemplated hereby. The
        Company further acknowledges that the Buyer(s) is not acting as a
        financial advisor or fiduciary of the Company (or in any similar
        capacity) with respect to this Agreement and the transactions
        contemplated hereby and any advice given by the Buyer(s) or any of their
        respective representatives or agents in connection with this Agreement
        and the transactions contemplated hereby is merely incidental to such
        Buyer's purchase of the Series B Preferred Shares or the Conversion
        Shares. The Company further represents to the Buyer that the Company's
        decision to enter into this Agreement has been based solely on the
        independent evaluation by the Company and its representatives.

                (j) No General Solicitation. Neither the Company, nor any of its
        affiliates, nor any person acting on its or their behalf, has engaged in
        any form of general solicitation or general advertising (within the
        meaning of Regulation D under the 1933 Act) in connection with the offer
        or sale of the Series B Preferred Shares or the Conversion Shares.

                (k) No Integrated Offering. Neither the Company, nor any of its
        affiliates, nor any person acting on its or their behalf has, directly
        or indirectly, made any offers or sales of any security or solicited any
        offers to buy any security, under circumstances that would require
        registration of the Series B Preferred Shares or the Conversion Shares
        under the 1933 Act or cause this offering of the Series B Preferred
        Shares or the Conversion Shares to be integrated with prior offerings by
        the Company for purposes of the 1933 Act.

                (l) Employee Relations. Neither the Company nor any of its
        subsidiaries is involved in any labor dispute nor, to the knowledge of
        the Company or any of its subsidiaries, is any such dispute threatened.
        None of the Company's or its subsidiaries' employees is a member of a
        union and the Company and its subsidiaries believe that their relations
        with their employees are good.

                (m) Intellectual Property Rights. The Company and its
        subsidiaries have made no filings what so ever with respect to any
        trademarks, trade names, service marks, service mark registrations,
        service names, patents, patent rights, copyrights, inventions, trade
        secrets, know-how, designs, proprietary rights, processes, works of
        authorship or

                                       10
<PAGE>

        other intellectual property rights (collectively referred to as
        "Intellectual Property"). The Company has all rights necessary to use
        the Intellectual Property it currently uses. The Company and its
        subsidiaries do not have any knowledge of any infringement by the
        Company or its subsidiaries with respect to Intellectual Property , and,
        to the knowledge of the Company there is no claim, action or proceeding
        being made or brought against, or to the Company's knowledge, being
        threatened against, the Company or its subsidiaries regarding
        Intellectual Property and the Company and its subsidiaries are unaware
        of any facts or circumstances which might give rise to any of the
        foregoing.

                (n) Environmental Laws. The Company and its subsidiaries are (i)
        in compliance with any and all applicable foreign, federal, state and
        local laws and regulations relating to the protection of human health
        and safety, the environment or hazardous or toxic substances or wastes,
        pollutants or contaminants ("Environmental Laws"), (ii) have received
        all permits, licenses or other approvals required of them under
        applicable Environmental Laws to conduct their respective businesses and
        (iii) are in compliance with all terms and conditions of any such
        permit, license or approval.

                (o) Title. Any real property and facilities held under lease by
        the Company and its subsidiaries are held by them under valid,
        subsisting and enforceable leases with such exceptions as are not
        material and do not interfere with the use made and proposed to be made
        of such property and buildings by the Company and its subsidiaries.

                (p) Insurance. The Company and each of its subsidiaries are
        insured by insurers of recognized financial responsibility against such
        losses and risks and in such amounts as management of the Company
        believes to be prudent and customary in the businesses in which the
        Company and its subsidiaries are engaged. Neither the Company nor any
        such subsidiary has been refused any insurance coverage sought or
        applied for and neither the Company nor any such subsidiary has any
        reason to believe that it will not be able to renew its existing
        insurance coverage as and when such coverage expires or to obtain
        similar coverage from similar insurers as may be necessary to continue
        its business at a cost that would not materially and adversely affect
        the condition, financial or otherwise, or the earnings, business or
        operations of the Company and its subsidiaries, taken as a whole.

                (q) Regulatory Permits. The Company and its subsidiaries possess
        all material certificates, authorizations and permits issued by the
        appropriate federal, state or foreign regulatory authorities necessary
        to conduct their respective businesses, and neither the Company nor any
        such subsidiary has received any notice of proceedings relating to the
        revocation or modification of any such certificate, authorization or
        permit.

                (r) Internal Accounting Controls. The Company and each of its
        subsidiaries maintain a system of internal accounting controls
        sufficient to provide reasonable assurance that (i) transactions are
        executed in accordance with management's general or specific
        authorizations, (ii) transactions are recorded as necessary to permit
        preparation of financial statements in conformity with generally
        accepted accounting principles and to maintain asset accountability, and
        (iii) the recorded amounts for assets is compared

                                       11
<PAGE>

        with the existing assets at reasonable intervals and appropriate action
        is taken with respect to any differences.

                (r) No Material Adverse Breaches, etc. Except as set forth in
        the SEC Documents, neither the Company nor any of its subsidiaries is
        subject to any charter, corporate or other legal restriction, or any
        judgment, decree, order, rule or regulation which in the judgment of the
        Company's officers has or is expected in the future to have a material
        adverse effect on the business, properties, operations, financial
        condition, results of operations or prospects of the Company or its
        subsidiaries. Neither the Company nor any of its subsidiaries is in
        breach of any contract or agreement which breach, in the judgment of the
        Company's officers, has or is expected to have a material adverse effect
        on the business, properties, operations, financial condition, results of
        operations or prospects of the Company or its subsidiaries.

                (s) Tax Status. The Company and each of its subsidiaries has
        made, filed, or has current extensions for all federal and state income
        and all other tax returns, reports and declarations required by any
        jurisdiction to which it is subject and (unless and only to the extent
        that the Company and each of its subsidiaries has set aside on its books
        provisions reasonably adequate for the payment of all unpaid and
        unreported taxes) has paid all taxes and other governmental assessments
        and charges that are material in amount, shown or determined to be due
        on such returns, reports and declarations, except those being contested
        in good faith and has set aside on its books provision reasonably
        adequate for the payment of all taxes for periods subsequent to the
        periods to which such returns, reports or declarations apply. There are
        no unpaid taxes in any material amount claimed to be due by the taxing
        authority of any jurisdiction, and the officers of the Company know of
        no basis for any such claim.

                (t) Certain Transactions. Except as set forth in the SEC
        Documents and except for arm's length transactions pursuant to which the
        Company makes payments in the ordinary course of business upon terms no
        less favorable than the Company could obtain from third parties and
        other than the grant of stock options disclosed in the SEC Documents,
        none of the officers, directors, or employees of the Company is
        presently a party to any transaction with the Company (other than for
        services as employees, officers and directors), including any contract,
        agreement or other arrangement providing for the furnishing of services
        to or by, providing for rental of real or personal property to or from,
        or otherwise requiring payments to or from any officer, director or such
        employee or, to the knowledge of the Company, any corporation,
        partnership, trust or other entity in which any officer, director, or
        any such employee has a substantial interest or is an officer, director,
        trustee or partner.

                (u) Fees and Rights of First Refusal. The Company is not
        obligated to offer the securities offered hereunder on a right of first
        refusal basis or otherwise to any third parties including, but not
        limited to, current or former shareholders of the Company, underwriters,
        brokers, agents or other third parties.

                                       12
<PAGE>

                (v) Dilutive Effect. The Company understands and acknowledges
        that the number of Conversion Shares issuable upon conversion of the
        Series B Preferred Shares will increase in certain circumstances. The
        Company further acknowledges that its obligation to issue Conversion
        Shares upon conversion of the Series B Preferred Shares in accordance
        with this Agreement and the Certificate of Designations and the Series B
        Preferred Shares is absolute and unconditional regardless of the
        dilutive effect that such issuance may have on the ownership interests
        of other stockholders of the Company.

        4. COVENANTS.

                (a) Best Efforts. Each party shall use its best efforts timely
        to satisfy each of the conditions to be satisfied by it as provided in
        Sections 6 and 7 of this Agreement.

                (b) Form D. The Company agrees to file a Form D with respect to
        the Conversion Shares as required under Regulation D and to provide a
        copy thereof to each Buyer promptly after such filing. The Company
        shall, on or before the Closing Date, take such action as the Company
        shall reasonably determine is necessary to qualify the Conversion
        Shares, or obtain an exemption for the Conversion Shares for sale to the
        Buyers at the Closing pursuant to this Agreement under applicable
        securities or "Blue Sky" laws of the states of the United States, and
        shall provide evidence of any such action so taken to the Buyers on or
        prior to the Closing Date.

                (c) Reporting Status. Until the earlier of (i) the date as of
        which the Investor(s) (as that term is defined in the Registration
        Rights Agreement) may sell all of the Conversion Shares without
        restriction pursuant to Rule 144(k) promulgated under the 1933 Act (or
        successor thereto), or (ii) the date on which (A) the Buyer(s) shall
        have sold all the Conversion Shares and (B) none of the Series B
        Preferred Shares are outstanding (the "Registration Period"), the
        Company shall use its commercially reasonable efforts to file in a
        timely manner all reports required to be filed with the SEC pursuant to
        the 1934 Act and the regulations of the SEC there under, and the Company
        shall not terminate its status as an issuer required to file reports
        under the 1934 Act even if the 1934 Act or the rules and regulations
        there under would otherwise permit such termination.

                (d) Use of Proceeds. The Company will use the proceeds from the
        sale of the Series B Preferred Shares for general corporate purposes.

                (e) Reservation of Shares. The Company shall take all action
        reasonably necessary to at all times have authorized, and reserved for
        the purpose of issuance, such number of shares of Common Stock as shall
        be necessary to effect the issuance of the Conversion Shares. If at any
        time the Company does not have available such shares of Common Stock as
        shall from time to time be sufficient to effect the conversion of all of
        the Conversion Shares of the Company shall call and hold a special
        meeting of the shareholders within sixty (60) days of such occurrence,
        for the sole purpose of increasing the number of shares authorized. The
        Company's management shall recommend to the shareholders to vote in
        favor of increasing the number of shares of

                                       13
<PAGE>

        Common Stock authorized. Management shall also vote all of its shares in
        favor of increasing the number of authorized shares of Common Stock .

                (f) Listings or Quotation. The Company shall promptly secure the
        listing or quotation of the Conversion Shares upon each national
        securities exchange, automated quotation system or Over-The-Counter
        Bulletin Board or other market, if any, upon which shares of Common
        Stock are then listed or quoted (subject to official notice of issuance)
        and shall use its best efforts to maintain, so long as any other shares
        of Common Stock shall be so listed, such listing of all Conversion
        Shares from time to time issuable under the terms of this Agreement. The
        Company shall maintain the Common Stock's authorization for quotation in
        the over-the counter market

                (g) Expenses. Each of the Company and the Buyer(s) shall pay all
        costs and expenses incurred by such party in connection with the
        negotiation, investigation, preparation, execution and delivery of this
        Agreement and the Registration Rights Agreement. The costs and expenses
        of the Placement Agent and its counsel, shall be paid for by the Company
        at Closing in accordance with the terms of the Placement Agent Agreement
        between the Company and the Placement Agent, dated July ___, 2001.

                (h) Corporate Existence. So long as any of the Series B
        Preferred Shares remain outstanding, the Company shall not directly or
        indirectly consummate any merger, reorganization, restructuring,
        consolidation, sale of all or substantially all of the Company's assets
        or any similar transaction or related transactions (each such
        transaction, a "Sale of the Company") unless, prior to the consummation
        of a Sale of the Company, the Company makes appropriate provision to
        insure that, upon the consummation of such Sale of the Company, each of
        the holders of the Series B Preferred Shares will thereafter have the
        right to acquire and receive such shares of stock, securities or assets
        as may be issued or payable with respect to or in exchange for the
        number of shares of Common Stock immediately theretofore acquirable and
        receivable upon the conversion of such holder's Series B Preferred
        Shares had such Sale of the Company not taken place. In any such case,
        the Company will make appropriate provision with respect to such
        holders' rights and interests to insure that the provisions of this
        Section 4(h) will thereafter be applicable to the Series B Preferred
        Shares.

                (i) Transactions With Affiliates. So long as any Series B
        Preferred Shares are outstanding, the Company shall not, and shall cause
        each of its subsidiaries not to, enter into, amend, modify or
        supplement, or permit any subsidiary to enter into, amend, modify or
        supplement any agreement, transaction, commitment, or arrangement with
        any of its or any subsidiary's officers, directors, persons who were
        officers or directors at any time during the previous two (2) years,
        stockholders who beneficially own five percent (5%) or more of the
        Common Stock, or Affiliates (as defined below) or with any individual
        related by blood, marriage, or adoption to any such individual or with
        any entity in which any such entity or individual owns a five percent
        (5%) or more beneficial interest (each a "Related Party"), except for
        (a) customary employment arrangements and benefit programs on reasonable
        terms, (b) any investment in an Affiliate of the Company, (c) any
        agreement, transaction, commitment, or arrangement on an arms-length
        basis on

                                       14
<PAGE>

        terms no less favorable than terms which would have been obtainable from
        a person other than such Related Party, (d) any agreement transaction,
        commitment, or arrangement which is approved by a majority of the
        disinterested directors of the Company, for purposes hereof, any
        director who is also an officer of the Company or any subsidiary of the
        Company shall not be a disinterested director with respect to any such
        agreement, transaction, commitment, or arrangement. "Affiliate" for
        purposes hereof means, with respect to any person or entity, another
        person or entity that, directly or indirectly, (i) has a ten percent
        (10%) or more equity interest in that person or entity, (ii) has ten
        percent (10%) or more common ownership with that person or entity, (iii)
        controls that person or entity, or (iv) shares common control with that
        person or entity. "Control" or "controls" for purposes hereof means that
        a person or entity has the power, whether direct or indirect, to conduct
        or govern the policies of another person or entity.

                (j) Transfer Agent. The Company covenants and agrees that, in
        the event that the Company's agency relationship with the transfer agent
        should be terminated for any reason prior to a date which is two (2)
        years after the Closing Date, the Company shall immediately appoint a
        new transfer agent and shall require that the transfer agent execute and
        agree to be bound by the terms of the Irrevocable Transfer Agent
        Instructions (as defined below) to Transfer Agent.

        5. TRANSFER AGENT INSTRUCTIONS.

                The Company shall issue irrevocable instructions in the form
        attached hereto as Exhibit D to its transfer agent to issue
        certificates, registered in the name of the Buyer(s) or its respective
        nominee(s), for the Conversion Shares representing such amounts of
        Series B Preferred Shares as specified from time to time by the Buyer(s)
        to the Company upon conversion of the Series B Preferred Shares (the
        "Irrevocable Transfer Agent Instructions"). Prior to registration of the
        Conversion Shares under the 1933 Act, all such certificates shall bear
        the restrictive legend specified in Section 2(g) of this Agreement. The
        Company warrants that no instruction other than the Irrevocable Transfer
        Agent Instructions referred to in this Section 5, and stop transfer
        instructions to give effect to Section 2(f) hereof (in the case of the
        Conversion Shares prior to registration of such shares under the 1933
        Act) will be given by the Company to its transfer agent and that the
        Conversion Shares shall otherwise be freely transferable on the books
        and records of the Company as and to the extent provided in this
        Agreement and the Registration Rights Agreement. Nothing in this Section
        5 shall affect in any way the Buyer's obligations and agreement to
        comply with all applicable securities laws upon resale of Conversion
        Shares. If the Buyer(s) provides the Company with an opinion of counsel,
        reasonably satisfactory in form and substance to the Company, that
        registration of a resale by the Buyer(s) of any of the Conversion Shares
        is not required under the 1933 Act, the Company shall permit the
        transfer and promptly instruct its transfer agent to issue one or more
        certificates in such name and in such denominations as specified by the
        Buyer. The Company acknowledges that a breach by it of its obligations
        hereunder will cause irreparable harm to the Buyer by vitiating the
        intent and purpose of the transaction contemplated hereby. Accordingly,
        the Company acknowledges that the remedy at law

                                       15
<PAGE>

        for a breach of its obligations under this Section 5 will be inadequate
        and agrees, in the event of a breach or threatened breach by the Company
        of the provisions of this Section 5, that the Buyer(s) shall be
        entitled, in addition to all other available remedies, to an injunction
        restraining any breach and requiring immediate issuance and transfer,
        without the necessity of showing economic loss and without any bond or
        other security being required.

        6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

                The obligation of the Company hereunder to issue and sell the
        Series B Preferred Shares to the Buyer(s) at the Closing is subject to
        the satisfaction, at or before the Closing Date, of each of the
        following conditions, provided that these conditions are for the
        Company's sole benefit and may be waived by the Company at any time in
        its sole discretion:

                (a) Each Buyer shall have executed this Agreement and the
        Registration Rights Agreement and delivered the same to the Company.

                (b) The Certificate of Designations shall have been filed with
        the Secretary of State of the State of Nevada and the Company shall have
        provided the Buyers a Certificate of Good Standing from the Nevada
        Secretary of State.

                (c) The Buyer(s) shall have delivered to the Escrow Agent the
        Purchase Price for Series B Preferred Shares in respective amounts as
        set forth next to each Buyer as outlined on Schedule I attached hereto
        and the Escrow Agent shall have delivered such funds to the Company by
        wire transfer of immediately available U.S. funds pursuant to the wire
        instructions provided by the Company.

                (d) The representations and warranties of the Buyer(s) shall be
        true and correct in all material respects as of the date when made and
        as of the Closing Date as though made at that time (except for
        representations and warranties that speak as of a specific date), and
        the Buyer(s) shall have performed, satisfied and complied in all
        material respects with the covenants, agreements and conditions required
        by this Agreement to be performed, satisfied or complied with by the
        Buyer(s) at or prior to the Closing Date.

        7. CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.

                The obligation of the Buyer(s) hereunder to purchase the Series
        B Preferred Shares at the Closing is subject to the satisfaction, at or
        before the Closing Date, of each of the following conditions, provided
        that these conditions are for the Buyer's sole benefit and may be waived
        by the Buyer(s) at any time in its sole discretion:

                (a) The Company shall have executed this Agreement and the
        Registration Rights Agreement, and delivered the same to the Buyer(s).

                                       16
<PAGE>

                (b) The Common Stock shall be authorized for quotation on The
        National Association of Securities Dealers, Inc. OTC Bulletin Board,
        trading in the Common Stock shall not have been suspended for any reason
        and all of the Conversion Shares issuable upon conversion of the Series
        B Preferred Shares shall be approved for listing or quotation on The
        National Association of Securities Dealers, Inc. OTC Bulletin Board.

                (c) The representations and warranties of the Company shall be
        true and correct in all material respects (except to the extent that any
        of such representations and warranties is already qualified as to
        materiality in Section 3 above, in which case, such representations and
        warranties shall be true and correct without further qualification) as
        of the date when made and as of the Closing Date as though made at that
        time (except for representations and warranties that speak as of a
        specific date) and the Company shall have performed, satisfied and
        complied in all material respects with the covenants, agreements and
        conditions required by this Agreement to be performed, satisfied or
        complied with by the Company at or prior to the Closing Date. The Buyer
        shall have received a certificate, executed by the President of the
        Company, dated as of the Closing Date, to the foregoing effect and as to
        such other matters as may be reasonably requested by the Buyer
        including, without limitation an update as of the Closing Date regarding
        the representation contained in Section 3(c) above.

                (d) The Company shall have executed and delivered to the
        Buyer(s) the Series B Preferred Shares in the respective amounts set
        forth opposite each Buyer(s) name on Schedule I attached hereto.

                (g) The Irrevocable Transfer Agent Instructions, in form and
        substance satisfactory to the Buyer, shall have been delivered to and
        acknowledged in writing by the Company's transfer agent.

        8. INDEMNIFICATION.

                (a) In consideration of the Buyer's execution and delivery of
        this Agreement and acquiring the Series B Preferred Shares and the
        Conversion Shares hereunder, and in addition to all of the Company's
        other obligations under this Agreement, the Company shall defend,
        protect, indemnify and hold harmless the Buyer(s) and each other holder
        of the Series B Preferred Shares and the Conversion Shares, and all of
        their officers, directors, employees and agents (including, without
        limitation, those retained in connection with the transactions
        contemplated by this Agreement) (collectively, the "Buyer Indemnitees")
        from and against any and all actions, causes of action, suits, claims,
        losses, costs, penalties, fees, liabilities and damages, and expenses in
        connection therewith (irrespective of whether any such Buyer Indemnitee
        is a party to the action for which indemnification hereunder is sought),
        and including reasonable attorneys' fees and disbursements (the
        "Indemnified Liabilities"), incurred by the Buyer Indemnitees or any of
        them as a result of, or arising out of, or relating to (i) any
        misrepresentation or breach of any representation or warranty made by
        the Company in this Agreement, the Series B

                                       17
<PAGE>

        Preferred Shares or the Registration Rights Agreement or any other
        certificate, instrument or document contemplated hereby or thereby, (ii)
        any breach of any covenant, agreement or obligation of the Company
        contained in this Agreement, or the Registration Rights Agreement nor
        any other certificate, instrument or document contemplated hereby or
        thereby, or (iii) any cause of action, suit or claim brought or made
        against such Indemnitee and arising out of or resulting from the
        execution, delivery, performance or enforcement of this Agreement or any
        other instrument, document or agreement executed pursuant hereto by any
        of the Indemnities, any transaction financed or to be financed in whole
        or in part, directly or indirectly, with the proceeds of the issuance of
        the Series B Preferred Shares nor the status of the Buyer or holder of
        the Series B Preferred Shares the Conversion Shares, as a Buyer of
        Series B Preferred Shares in the Company. To the extent that the
        foregoing undertaking by the Company may be unenforceable for any
        reason, the Company shall make the maximum contribution to the payment
        and satisfaction of each of the Indemnified Liabilities, which is
        permissible under applicable law.

                (b) In consideration of the Company's execution and delivery of
        this Agreement, and in addition to all of the Buyer's other obligations
        under this Agreement, the Buyer shall defend, protect, indemnify and
        hold harmless the Company and all of it's officers, directors, employees
        and agents (including, without limitation, those retained in connection
        with the transactions contemplated by this Agreement) (collectively, the
        "Company Indemnitees") from and against any and all Indemnified
        Liabilities incurred by the Indemnitees or any of them as a result of,
        or arising out of, or relating to (i) any misrepresentation or breach of
        any representation or warranty made by the Buyer(s) in this Agreement,
        instrument or document contemplated hereby or thereby executed by the
        Buyer, (ii) any breach of any covenant, agreement or obligation of the
        Buyer(s) contained in this Agreement, the Investor Registration Rights
        Agreement or any other certificate, instrument or document contemplated
        hereby or thereby executed by the Buyer, or (iii) any cause of action,
        suit or claim brought or made against such Company Indemnitee based on
        material misrepresentations or due to a material breach and arising out
        of or resulting from the execution, delivery, performance or enforcement
        of this Agreement, the Investor Registration Rights Agreement or any
        other instrument, document or agreement executed pursuant hereto by any
        of the Company Indemnitees. To the extent that the foregoing undertaking
        by each Buyer may be unenforceable for any reason, each Buyer shall make
        the maximum contribution to the payment and satisfaction of each of the
        Indemnified Liabilities, which is permissible under applicable law.

        9. GOVERNING LAW: MISCELLANEOUS.

                (a) Governing Law. This Agreement shall be governed by and
        interpreted in accordance with the laws of the State of New York without
        regard to the principles of conflict of laws. The parties further agree
        that any action between them shall be heard in New York City, New York,
        and expressly consent to the jurisdiction and venue of the Supreme Court
        of New York and the United States District Court for the Southern

                                       18
<PAGE>

        District of New York for the adjudication of any civil action asserted
        pursuant to this Paragraph.

                (b) Counterparts. This Agreement may be executed in two or more
        identical counterparts, all of which shall be considered one and the
        same agreement and shall become effective when counterparts have been
        signed by each party and delivered to the other party. In the event any
        signature page is delivered by facsimile transmission, the party using
        such means of delivery shall cause four (4) additional original executed
        signature pages to be physically delivered to the other party within
        five (5) days of the execution and delivery hereof.

                (c) Headings. The headings of this Agreement are for convenience
        of reference and shall not form part of, or affect the interpretation
        of, this Agreement.

                (d) Severability. If any provision of this Agreement shall be
        invalid or unenforceable in any jurisdiction, such invalidity or
        unenforceability shall not affect the validity or enforceability of the
        remainder of this Agreement in that jurisdiction or the validity or
        enforceability of any provision of this Agreement in any other
        jurisdiction.

                (e) Entire Agreement, Amendments. This Agreement supersedes all
        other prior oral or written agreements between the Buyer(s), the
        Company, their affiliates and persons acting on their behalf with
        respect to the matters discussed herein, and this Agreement and the
        instruments referenced herein contain the entire understanding of the
        parties with respect to the matters covered herein and therein and,
        except as specifically set forth herein or therein, neither the Company
        nor any Buyer makes any representation, warranty, covenant or
        undertaking with respect to such matters. No provision of this Agreement
        may be waived or amended other than by an instrument in writing signed
        by the party to be charged with enforcement.

                (f) Notices. Any notices, consents, waivers, or other
        communications required or permitted to be given under the terms of this
        Agreement must be in writing and will be deemed to have been delivered
        (i) upon receipt, when delivered personally; (ii) upon confirmation of
        receipt, when sent by facsimile; (iii) three (3) days after being sent
        by U.S. certified mail, return receipt requested, or (iv) one (1) day
        after deposit with a nationally recognized overnight delivery service,
        in each case properly addressed to the party to receive the same. The
        addresses and facsimile numbers for such communications shall be:

                                       19
<PAGE>

<TABLE>
                <S>                             <C>
                If to the Company, to:          Blagman Media International Inc.
                                                1901 Avenue of the Stars
                                                Suite 1710
                                                Los Angeles, CA 90067
                                                Attention:        Robert Blagman
                                                Chairman and Chief Executive Officer
                                                Telephone: (310) 788-5444
                                                Facsimile: (310) 788-5440

                With a copy to:                 Edward T. Swanson, Esq.

                                                1135 17th Street
                                                Santa Monica, CA 9043
                                                Attention: Edward T. Swanson, Esq.
                                                Telephone: (310) 283-1035
                                                Facsimile: (310) 828-6138

                If to the Transfer Agent, to:

                If to the Investor:             At the address listed on Schedule A.
</TABLE>

                If to the Buyer(s), to its address and facsimile number on
        Schedule I, with copies to the Buyer's counsel as set forth on Schedule
        I. Each party shall provide five (5) days' prior written notice to the
        other party of any change in address or facsimile number.

                (g) Successors and Assigns. This Agreement shall be binding upon
        and inure to the benefit of the parties and their respective successors
        and assigns. Neither the Company nor any Buyer shall assign this
        Agreement or any rights or obligations hereunder without the prior
        written consent of the other party hereto.

                (h) No Third Party Beneficiaries. This Agreement is intended for
        the benefit of the parties hereto and their respective permitted
        successors and assigns, and is not for the benefit of, nor may any
        provision hereof be enforced by, any other person.

                (i) Survival. Unless this Agreement is terminated under Section
        9(l) hereof, the representations and warranties of the Company and the
        Buyers contained in Sections 2 and 3, the agreements and covenants set
        forth in Sections 4, 5 and 9, and the indemnification provisions set
        forth in Section 8, shall survive the Closing for a period of one (1)
        year following the date on which the Series B Preferred Shares are
        converted in

                                       20
<PAGE>

        full. The Buyer(s) shall be responsible only for its own
        representations, warranties, agreements and covenants hereunder.

                (j) Publicity. The Company and the Buyer(s) shall have the right
        to approve, before issuance, any press release or any other public
        statement with respect to the transactions contemplated hereby made by
        any party; provided, however, that the Company shall be entitled,
        without the prior approval of the Buyer(s), to issue any press release
        or other public disclosure with respect to such transactions required
        under applicable securities or other laws or regulations (the Company
        shall use its best efforts to consult the Buyer(s) in connection with
        any such press release or other public disclosure prior to its release
        and Buyer(s) shall be provided with a copy thereof upon release
        thereof).

                (k) Further Assurances. Each party shall do and perform, or
        cause to be done and performed, all such further acts and things, and
        shall execute and deliver all such other agreements, certificates,
        instruments and documents, as the other party may reasonably request in
        order to carry out the intent and accomplish the purposes of this
        Agreement and the consummation of the transactions contemplated hereby.

                (1) Termination. In the event that the Closing shall not have
        occurred with respect to the Buyers on or before five (5) business days
        from the date hereof due to the Company's or the Buyer's failure to
        satisfy the conditions set forth in Sections 6 and 7 above (and the
        non-breaching party's failure to waive such unsatisfied condition(s)),
        the non-breaching party shall have the option to terminate this
        Agreement with respect to such breaching party at the close of business
        on such date without liability of any party to any other party;
        provided, however, that if this Agreement is terminated pursuant to this
        Section 9(l), the Company shall remain obligated to reimburse the
        Buyer(s) for the expenses described in Section 4(g) above.

                (m) Finder. The Company acknowledges that it has engaged The May
        Davis Group, Inc., as the placement agent in connection with the sale of
        the Series B Preferred Shares. The Company shall be responsible for the
        payment of any placement agent fees (which includes cash) relating to or
        arising out of the transactions contemplated hereby and from the
        proceeds thereof.

                (n) No Strict Construction. The language used in this Agreement
        will be deemed to be the language chosen by the parties to express their
        mutual intent, and no rules of strict construction will be applied
        against any party.

                    [REMAINDER PAGE INTENTIONALLY LEFT BLANK]

                                       21
<PAGE>

IN WITNESS WHEREOF, the Buyers and the Company have caused this Securities
Purchase Agreement to be duly executed as of the date first written above.

                                    COMPANY:
                                    BLAGMAN MEDIA INTERNATIONAL INC.

                                    By:
                                       -----------------------------------------
                                    Name: Robert Blagman
                                    Title: Chairman and Chief Executive Officer

                                    INVESTOR:

                                    By:
                                       -----------------------------------------
                                    Name: Mark A. Angelo

                                       22
<PAGE>

                                                                       EXHIBIT A

                       FORM OF CERTIFICATE OF DESIGNATIONS

<PAGE>

                                                                       EXHIBIT B

                 FORM OF INVESTORS REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                                                       EXHIBIT C

                                ESCROW AGREEMENT

<PAGE>

                                                                       EXHIBIT D

                           TRANSFER AGENT INSTRUCTIONS

<PAGE>

                                                                       EXHIBIT E

                                 FORM OF WARRANT

<PAGE>

                                   SCHEDULE I
                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                                   AMOUNT OF
  NAME       ADDRESS/FACSIMILE NUMBER OF BUYER    SUBSCRIPTION
--------     ---------------------------------    ------------    --------------
<S>          <C>                                  <C>             <C>

</TABLE><PAGE>

                                                                    EXHIBIT 10.5

                         BLAGMAN MEDIA INTERNATIONAL INC
                            PLACEMENT AGENT AGREEMENT

                                                    Dated as of: July ___,  2001

May Davis Group, Inc.
One World Trade Center - Suite 8735
New York, New York, 10048

Ladies and Gentlemen:

        The undersigned, Blagman Media International Inc., (the "Company"),
hereby agrees with May Davis Group, Inc. ("May Davis") as follows:

        1. Offering. The Company hereby engages May Davis to act as its
exclusive placement agent in connection with the Securities Purchase Agreement
(as defined herein) for the issuance and sale by the Company (the "Offering") of
the Company's Series B Preferred Shares , par value $0.001 per share (the
"Series B Preferred Shares "), at a price per share equal to the Securities
Purchase Price, as that term is defined in the Securities Purchase Agreement
dated the date hereof between the Company and the Investor named therein ( the
"Securities Purchase Agreement"), for an aggregate price of One Million Dollars
($1,000,000). All capitalized terms used herein and not otherwise defined shall
have the same meaning ascribed to them as in the Securities Purchase Agreement.
The Investor will be granted certain registration rights with respect to the
Common Stock as more fully set forth in the Registration Rights Agreement
between the Company and the Investor dated the date hereof. The documents to be
executed and delivered in connection with the Offering, including, but not
limited, to this Agreement, the Securities Purchase Agreement, the Registration
Rights Agreement, the Escrow Agreement with First Union National Bank (the
"Escrow Agreement"), are referred to sometimes hereinafter collectively as the
"Offering Materials." The Company's Series B Preferred Shares and the Common
Stock issuable upon conversion thereof is sometimes referred to hereinafter as
the "Securities." May Davis shall not be obligated to sell any Securities and
this Offering by May Davis shall be solely on a "best efforts basis."

        2. Information.

                A. Upon the occurrence of each Closing, the funds received in
respect of the shares of Common Stock purchased by the Investor will be
disbursed in accordance with the terms of the Purchase Agreement, net of (i) the
commission payable to May Davis, equal to eight percent (8%) of the gross
proceeds from the sale of Common Stock, and (ii) legal fees and other expenses
related thereto due to May Davis's counsel, Butler Gonzalez LLP, an amount not
to exceed Fifteen Thousand Dollars ($15,000).

                B. In addition to the foregoing compensation the Company shall
issue to the

<PAGE>

May Davis Group, Inc., a warrant to purchase four hundred thousand (400,000)
shares of the Company's Common Stock with an exercise price of one hundred and
ten percent (110%) of the Closing Bid Price of the Company's Common Stock on the
day of Closing. Such shares of Common Stock issuable upon conversion of the
Warrant shall have "piggy-back" and demand registration rights.

        3. Representations, Warranties and Covenants of May Davis.

        A. May Davis represents, warrants and covenants as follows:

                (i) May Davis has the necessary power to enter into this
Agreement and the Escrow Agreement and to consummate the transactions
contemplated hereby and thereby.

                (ii) The execution and delivery by May Davis of this Agreement ,
the Escrow Agreement and the consummation of the transactions contemplated
herein and therein will not result in any violation of, or be in conflict with,
or constitute a default under, any agreement or instrument to which May Davis is
a party or by which May Davis or its properties are bound, or any judgment,
decree, order or, to May Davis's knowledge, any statute, rule or regulation
applicable to May Davis. This Agreement and the Escrow Agreement when executed
and delivered by May Davis, will constitute the legal, valid and binding
obligations of May Davis, enforceable in accordance with their respective terms,
except to the extent that (a) the enforceability hereof or thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, (b)
the enforceability hereof or thereof is subject to general principles of equity,
or (c) the indemnification provisions hereof or thereof may be held to be
violative of public policy.

                (iii) Upon receipt of an executed Securities Purchase Agreement,
a Registration Rights Agreement and Escrow Agreement and the documents related
thereto, May Davis will, through the Escrow Agent, promptly forward copies of
the Purchase Agreement, Registration Rights Agreement and Escrow Agreement and
the documents related thereto to the Company or its counsel.

                (iv) May Davis will not deliver any documents related to the
Offering to any person it does not reasonably believe to be an Accredited
Investor as defined in Rule 501 (a) (3) of Regulation D. May Davis will arrange
for the securities to be sold exclusively to Accredited Investors in a Private
Placement transaction exempt from the Registration requirements of the 1933 Act.

                (v) May Davis will not intentionally take any action that it
reasonably believes would cause the Offering to violate the provisions of the
1933 Act, the 1934 Act, the respective rules and regulations promulgated there
under (the "Rules and Regulations") or applicable "Blue Sky" laws of any state
or jurisdiction.

                (vi) May Davis shall use all reasonable efforts to determine (a)
whether the Investors is an Accredited Investors and (b) that any information
furnished by the Investors is true and accurate. May Davis shall have no
obligation to insure that (x) any check, note, draft or other means of payment
for the Common Stock will be honored, paid or enforceable against the Investors
in accordance with its terms, or (y) subject to the performance of May Davis's
obligations and the accuracy of May Davis's representations and warranties
hereunder, (1) the Offering is exempt from the registration requirements of the
1933 Act or any applicable state "Blue Sky" law or (2) the Investors is an
Accredited Investors .

                                       2
<PAGE>

                (vii) May Davis is a member of the National Association of
Securities Dealers, Inc., and is a broker-dealer registered as such under the
1934 Act and under the securities laws of the states in which the Securities
will be offered or sold by May Davis, unless an exemption for such state
registration is available to May Davis. May Davis is in compliance with all
material rules and regulations applicable to May Davis generally and applicable
to May Davis's participation in the Offering. The Company and May Davis
acknowledge and agree that in the event the NASD, SEC or other regulatory
authority determines that the aggregate or any portion of the compensation to be
paid to May Davis under this Agreement violates the NASD's Corporate Financing
Rules, including without limitation, Rule 2710 of the NASD, May Davis will
reduce the aggregate compensation to be paid to May Davis hereunder to be in
compliance with such Rules, and such reduced compensation shall be the
compensation to be paid by the Company to May Davis hereunder. May Davis shall
not be entitled to terminate this Agreement as a result of limitations place on
the Compensation to be paid to May Davis under the NASD's Corporate Financing
Rules.

        4. Representations and Warranties of the Company.

        A. The Company represents and warrants as follows:

        Except as stated below or on the disclosure schedules attached hereto,
the Company hereby represents and warrants to, and covenants with, the Investors
that the following are true and correct as of the date hereof.

        (i) Organization and Qualification. Each of the Company and its
subsidiaries is duly incorporated or organized and validly existing in the
jurisdiction of its incorporation or organization and has all requisite power
and authority corporate power to own their properties and to carry on their
business as now being conducted. Each of the Company and its subsidiaries is
duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which the nature of the business conducted by it makes
such qualification necessary, except to the extent that the failure to be so
qualified or be in good standing would not have a Material Adverse Effect on the
Company and its subsidiaries taken as a whole.

        (ii)  Authorization, Enforcement, Compliance with Other Instruments.
(i) The Company has the requisite corporate power and authority to enter into
and perform this Agreement, the Registration Rights Agreement and any related
agreements, in accordance with the terms hereof and thereof, (ii) the execution
and delivery of this Agreement, the Registration Rights Agreement, the Escrow
Agreement and any related agreements by the Company and the consummation by it
of the transactions contemplated hereby and thereby, have been duly authorized
by the Company's Board of Directors and no further consent or authorization is
required by the Company, its Board of Directors or its stockholders( other than
as may be required as stated in Section 7.2(g) hereof), (iii) this Agreement,
Registration Rights Agreement, the Escrow Agreement and any related agreements
have been duly executed and delivered by the Company, (iv) this Agreement, the
Registration Rights Agreement, Escrow Agreement and any related agreements
constitute the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors' rights and remedies.

                                       3
<PAGE>

        (iii) Capitalization. The authorized capital stock of the Company
consists of 100,000,000 shares of Common Stock $0.001 par value, and 100,000,000
shares of Preferred Stock, $0.001 par value. As of July 23, 2001 , the Company
had 62,167,450 shares of Common Stock outstanding excluding 60,000 shares of
Common Stock in its treasury which are being cancelled, the Company filed a
Certificate of Designations authorizing 600,000 shares of Series B Convertible
Redeemable Preferred Stock par value $0.001 per share (the "Series B Stock") in
connection with a proposed transaction with Mulligan Media and Communications
Ltd. Such transaction was not consummated and no shares of the Series B Stock
were issued in connection therewith. There are no shares of Preferred Stock
issued and outstanding except for the transactions of the reorganized entities
preceding the Reorganizations, for which the Company has relied on third party
representations, all of such outstanding shares have been validly issued and are
fully paid and nonassessable. All of such outstanding shares have been validly
issued and are fully paid and nonassessable. Except as disclosed in the SEC
Documents or Schedule 4.3, no shares of Common Stock are subject to preemptive
rights or any other similar rights or any liens or encumbrances suffered or
permitted by the Company. Except as disclosed in Schedule 4.3 hereto, as of the
date hereof, (i) there are no outstanding options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, any shares of capital stock of the
Company or any of its subsidiaries, or contracts, commitments, understandings or
arrangements by which the Company or any of its subsidiaries is or may become
bound to issue additional shares of capital stock of the Company or any of its
subsidiaries or options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
subsidiaries, (ii) there are no outstanding debt securities and (iii) there are
no agreements or arrangements under which the Company or any of its subsidiaries
is obligated to register the sale of any of their securities under the
Securities Act (except pursuant to the Registration Rights Agreement). There are
no securities or instruments containing anti-dilution or similar provisions that
will be triggered by this Agreement or any related agreement or the consummation
of the transactions described herein or therein. The Company has furnished to
the Investors true and correct copies of the Company's Certificate of
Incorporation, as amended and as in effect on the date hereof (the "Certificate
of Incorporation"), and the Company's By-laws, as in effect on the date hereof
(the "By-laws").

        (iv) No Conflict. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby and assuming receipt of shareholder approval under Section
2.7 herein will not (i) result in a violation of the Certificate of
Incorporation, any certificate of designations of any outstanding series of
preferred stock of the Company or By-laws or (ii) conflict with or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any of its subsidiaries is a party, or result in a violation of
any law, rule, regulation, order, judgment or decree (including federal and
state securities laws and regulations and the rules and regulations of the
Principal Market on which the Common Stock is quoted) applicable to the Company
or any of its subsidiaries or by which any material property or asset of the
Company or any of its subsidiaries is bound or affected and which could cause a
Material

                                       4
<PAGE>

Adverse Effect. Except as disclosed in the SEC Documents, neither the Company
nor its subsidiaries is in violation of any term of or in default under its
Certificate of Incorporation or By-laws or their organizational charter or
by-laws, respectively, or any material contract, agreement, mortgage,
indebtedness, indenture, instrument, judgment, decree or order or any statute,
rule or regulation applicable to the Company or its subsidiaries. The business
of the Company and its subsidiaries is not being conducted in violation of any
material law, ordinance, regulation of any governmental entity. Except as
specifically contemplated by this Agreement and as required under the Securities
Act and any applicable state securities laws, the Company is not required to
obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under or contemplated by this
Agreement or the Registration Rights Agreement in accordance with the terms
hereof or thereof. All consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been or will be obtained or effected on or prior to the Effective
Date. The Company and its subsidiaries are unaware of any fact or circumstance
which might give rise to any of the foregoing.

        (v) SEC Documents; Financial Statements. Except as set forth in Schedule
4.5 attached the Equity Line of Credit Agreement, since April 2000, the Company
has filed all reports, schedules, forms, statements and other documents required
to be filed by it with the SEC under of the Exchange Act (all of the foregoing
filed prior to the date hereof and all exhibits included therein and financial
statements and schedules thereto and documents incorporated by reference
therein, being hereinafter referred to as the "SEC Documents"). The Company has
delivered to the Investors or its representatives, or made available through the
SEC's website at http://www.sec.gov, true and complete copies of the SEC
Documents. As of their respective dates, the financial statements of the Company
disclosed in the SEC Documents (the "Financial Statements") complied as to form
in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with generally accepted accounting
principles, consistently applied, during the periods involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto, or
(ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all
material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).

        (vi) 10b-5. The SEC Documents, when filed, did not include any untrue
statements of material fact, nor do they omit to state any material fact
required to be stated therein necessary to make the statements made, in light of
the circumstances under which they were made, not misleading.

        (vii) No Default. Except as disclosed Section 4.5 the Company is not in
default in the performance or observance of any material obligation, agreement,
covenant or condition contained in any indenture, mortgage, deed of trust or
other material instrument or agreement to which it is a party or by which it is
or its property is bound and neither the execution, nor the delivery by the
Company, nor the performance by the Company of its obligations under this
Agreement or any of the exhibits or attachments hereto will conflict with or
result in the breach or

                                       5
<PAGE>

violation of any of the terms or provisions of, or constitute a default or
result in the creation or imposition of any lien or charge on any assets or
properties of the Company under its Certificate of Incorporation, By-Laws, any
material indenture, mortgage, deed of trust or other material agreement
applicable to the Company or instrument to which the Company is a party or by
which it is bound, or any statute, or any decree, judgment, order, rules or
regulation of any court or governmental agency or body having jurisdiction over
the Company or its properties, in each case which default, lien or charge is
likely to cause a Material Adverse Effect on the Company's business or financial
condition.

        (viii) Absence of Events of Default. Except for matters described in the
SEC Documents and/or this Agreement, no Event of Default, as defined in the
respective agreement to which the Company is a party, and no event which, with
the giving of notice or the passage of time or both, would become an Event of
Default (as so defined), has occurred and is continuing, which would have a
Material Adverse Effect on the Company's business, properties, prospects,
financial condition or results of operations.

        (ix) Intellectual Property Rights. The Company and its subsidiaries own
or possess adequate rights or licenses to use all material trademarks, trade
names, service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and rights necessary to conduct their respective
businesses as now conducted. The Company and its subsidiaries do not have any
knowledge of any infringement by the Company or its subsidiaries of trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses,
service names, service marks, service mark registrations, trade secret or other
similar rights of others, and, to the knowledge of the Company, there is no
claim, action or proceeding being made or brought against, or to the Company's
knowledge, being threatened against, the Company or its subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license,
service names, service marks, service mark registrations, trade secret or other
infringement; and the Company and its subsidiaries are unaware of any facts or
circumstances which might give rise to any of the foregoing.

        (x) Employee Relations Neither the Company nor any of its subsidiaries
is involved in any labor dispute nor, to the knowledge of the Company or any of
its subsidiaries, is any such dispute threatened. None of the Company's or its
subsidiaries' employees is a member of a union and the Company and its
subsidiaries believe that their relations with their employees are good.

        (xi) Environmental Laws. The Company and its subsidiaries are (i) in
compliance with any and all applicable material foreign, federal, state and
local laws and regulations relating to the protection of human health and
safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants ("Environmental Laws"), (ii) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to
conduct their respective businesses and (iii) are in compliance with all terms
and conditions of any such permit, license or approval.

        (xii) Title. Except as set forth in the SEC Documents, the Company has
good and

                                       6
<PAGE>

marketable title to its properties and material assets owned by it, free and
clear of any pledge, lien, security interest, encumbrance, claim or equitable
interest other than such as are not material to the business of the Company. Any
real property and facilities held under lease by the Company and its
subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as are not material and do not interfere with the use made
and proposed to be made of such property and buildings by the Company and its
subsidiaries.

        (xiii) Insurance. The Company and each of its subsidiaries are insured
by insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company believes to be prudent and
customary in the businesses in which the Company and its subsidiaries are
engaged. Neither the Company nor any such subsidiary has been refused any
insurance coverage sought or applied for and neither the Company nor any such
subsidiary has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not materially and adversely affect the condition,
financial or otherwise, or the earnings, business or operations of the Company
and its subsidiaries, taken as a whole.

        (xiv) Regulatory Permits. The Company and its subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state or foreign regulatory authorities necessary to conduct their respective
businesses, and neither the Company nor any such subsidiary has received any
notice of proceedings relating to the revocation or modification of any such
certificate, authorization or permit.

        (xv) Internal Accounting Controls. The Company and each of its
subsidiaries maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management's general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with
management's general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

        (xvi) No Material Adverse Breaches, etc. Except as set forth in the SEC
Documents, neither the Company nor any of its subsidiaries is subject to any
charter, corporate or other legal restriction, or any judgment, decree, order,
rule or regulation which in the judgment of the Company's officers has or is
expected in the future to have a Material Adverse Effect on the business,
properties, operations, financial condition, results of operations or prospects
of the Company or its subsidiaries. Neither the Company nor any of its
subsidiaries is in breach of any contract or agreement which breach, in the
judgment of the Company's officers, has or is expected to have a Material
Adverse Effect on the business, properties, operations, financial condition,
results of operations or prospects of the Company or its subsidiaries.

        (xvii) Absence of Litigation. Except as set forth in the SEC Documents,
there is no action, suit, proceeding, inquiry or investigation before or by any
court, public board, government

                                       7
<PAGE>

agency, self-regulatory organization or body pending against or affecting the
Company, the Common Stock or any of the Company's subsidiaries, wherein an
unfavorable decision, ruling or finding would (i) have a Material Adverse Effect
on the transactions contemplated hereby (ii) adversely affect the validity or
enforceability of, or the authority or ability of the Company to perform its
obligations under, this Agreement or any of the documents contemplated herein,
or (iii) except as expressly disclosed in the SEC Documents, have a Material
Adverse Effect on the business, operations, properties, financial condition or
results of operation of the Company and its subsidiaries taken as a whole.

        (xviii) Subsidiaries. Except as disclosed in the SEC Documents, the
Company does not presently own or control, directly or indirectly, any interest
in any other corporation, partnership, association or other business entity.

        (xix) Other Outstanding Securities/Financing Restrictions. As of the
date hereof, other than warrants and options to acquire shares of Common Stock
as disclosed in Schedule 4.3, there are no other warrants and options registered
with the SEC, which are available for sale as unrestricted ("free trading")
stock.

        (xx) Tax Status. The Company and each of its subsidiaries has made,
filed, or has obtained current extensions for all federal and state income and
all other tax returns, reports and declarations required by any jurisdiction to
which it is subject and (unless and only to the extent that the Company and each
of its subsidiaries has set aside on its books provisions reasonably adequate
for the payment of all unpaid and unreported taxes) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the
periods to which such returns, reports or declarations apply. There are no
unpaid taxes in any material amount claimed to be due by the taxing authority of
any jurisdiction, and the officers of the Company know of no basis for any such
claim.

        (xxi) Certain Transactions. Except as set forth in the SEC Documents,
none of the officers, directors, or employees of the Company is presently a
party to any transaction with the Company (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
officer, director or such employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director,
trustee or partner.

        (xxii) Fees and Rights of First Refusal. Except as set forth in the SEC
Documents, the Company is not obligated to offer the securities offered
hereunder on a right of first refusal basis or otherwise to any third parties
including, but not limited to, current or former shareholders of the Company,
underwriters, brokers, agents or other third parties.

        (xxiii) Use of Proceeds. The Company represents that the net proceeds
from this

                                       8
<PAGE>

offering will be used for working capital purposes and to reduce indebtedness .
However, in no event shall the net proceeds from this offering be used by the
Company for the payment (or loaned to any such person for the payment) of any
judgment, or other liability, incurred by any executive officer, officer,
director, or employee of the Company.

        (xxiv) Further Representation and Warranties of the Company. For so long
as any securities issuable hereunder held by the Investors remain outstanding,
the Company acknowledges, represents, warrants and agrees that it will use
commercially reasonable efforts to maintain the listing of its Common Stock on
NASD Bulletin Board.

        (xxv) Opinion of Counsel. Investors shall receive an opinion letter from
counsel to the Company (updated where applicable) on the date hereof and updated
annually for the life of the this Agreement in form substantially acceptable to
the Investors.

        (xxvi) Opinion of Counsel. The Company will obtain for the Investors, at
the Company's expense, any and all opinions of counsel which may be reasonably
required in order to sell the securities issuable hereunder without restriction.

        (xxvii) Dilution. The Company is aware and acknowledges that issuance of
shares of the Company's Common Stock could cause dilution to existing
shareholders and could significantly increase the outstanding number of shares
of Common Stock.

        (xxviii) No General Solicitation. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer or sale of
the shares of Common Stock offered hereby.

                B. There are no claims for services in the nature of a finder's
or origination fee with respect to the sale of the Common Stock or any other
arrangements, agreements or understandings that may affect May Davis's
compensation, as determined by the National Association of Securities Dealers,
Inc.

                C. Subject to the performance by May Davis of its obligations
hereunder, the Equity Line of Credit and the offer and sale of the Securities
comply, and will continue to comply, up to the Registration Period (as defined
in the Equity Line of Credit ) in all material respects with the requirements of
Rule 506 of Regulation D promulgated by the SEC pursuant to the 1933 Act and any
other applicable federal and state laws, rules, regulations and executive
orders. Neither the Offering Materials nor any amendment or supplement thereto
nor any documents prepared by the Company in connection with the Offering will
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. All
statements of material facts in the Offering Materials are true and correct as
of the date of the Offering Materials and will be true and correct on the date
of the Closing.

                D. All material taxes which are due and payable from the Company
have been paid in full or adequate provision has been made for such taxes on the
books of the Company except for

                                       9
<PAGE>

those taxes disputed in good faith the Company does not have any tax deficiency
or claim outstanding assessed or proposed against it.

                E. None of the Company nor any of its officers, directors,
employees or agents, nor any other person acting on behalf of the Company, has,
directly or indirectly, given or agreed to give any money, gift or similar
benefit (other than legal price concessions to customers in the ordinary course
of business) to any customer, supplier, employee or agent of a customer or
supplier, or official or employee of any governmental agency or instrumentality
of any government (domestic or foreign) or any political party or candidate for
office (domestic or foreign) or other person who is or may be in a position to
help or hinder the business of the Company (or assist it in connection with any
actual or proposed transaction) which (A) might subject the Company to any
damage or penalty in any civil, criminal or governmental litigation or
proceeding, or (B) if not given in the past, might have had a materially adverse
effect on the assets, business or operations of the Company as reflected in any
of the financial statements contained in the Offering Materials, or (C) if not
continued in the future, might adversely affect the assets, business, operations
or prospects of the Company in the future.

        5. Certain Covenants and Agreements of the Company.

        The Company covenants and agrees at its expense and without any expense
to May Davis as follows:

        A. To advise May Davis of any material adverse change in the Company's
financial condition, prospects or business or of any development materially
affecting the Company or rendering untrue or misleading any material statement
in the Offering Materials occurring at any time as soon as the Company is either
informed or becomes aware thereof.

        B. To use its commercially reasonable efforts to cause the Common Stock
issuable in connection with the Equity Line of Credit and upon exercise of the
Convertible Debentures to be qualified or registered for sale on terms
consistent with those stated in the Registration Rights Agreement and under the
securities laws of such jurisdictions as May Davis and the Investors shall
reasonably request, provided that such states and jurisdictions do not require
the Company to qualify as a foreign corporation. Qualification, registration and
exemption charges and fees shall be at the sole cost and expense of the Company.

        C. Upon written request, to provide and continue to provide the each
holder of Securities, copies of all quarterly financial statements and audited
annual financial statements prepared by or on behalf of the Company, other
reports prepared by or on behalf of the Company for public disclosure and all
documents delivered to the Company's stockholders.

        D. To deliver, during the Registration Period, to May Davis, upon May
Davis's request, within forty five (45) days, a statement of its income for each
such quarterly period, and its balance sheet and a statement of changes in
stockholders' equity as of the end of such quarterly period, all in reasonable
detail, certified by its principal financial or accounting officer; (ii) within
ninety (90) days after the close of each fiscal year, its balance sheet as of
the close of such fiscal year, together with a statement of income, a statement
of changes in stockholders' equity and a statement of cash flow for such fiscal
year, such balance sheet, statement of income, statement of changes in
stockholders' equity and statement of cash flow to be in reasonable detail and
accompanied by a copy of the certificate or report thereon of independent
auditors if audited financial statements are prepared; and (iii) a copy of all
documents, reports and information furnished to its stockholders at the time
that such documents, reports and information are furnished to its stockholders.

                                       10
<PAGE>

        E. To comply with the terms of the Equity Line of Credit, the
Registration Rights Agreement, and the Escrow Agreement.

        F. To ensure that any transactions between or among the Company, or any
of its officers, directors and affiliates be on terms and conditions that are no
less favorable to the Company, than the terms and conditions that would be
available in an "arm's length" transaction with an independent third party.

        6. Indemnification.

                A. The Company hereby agrees that it will indemnify and hold May
Davis and each officer, director, shareholder, employee or representative of May
Davis, and each person controlling, controlled by or under common control with
May Davis within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act or the SEC's Rules and Regulations promulgated thereunder (the "Rules
and Regulations"), harmless from and against any and all loss, claim, damage,
liability, cost or expense whatsoever (including, but not limited to, any and
all reasonable legal fees and other expenses and disbursements incurred in
connection with investigating, preparing to defend or defending any action, suit
or proceeding, including any inquiry or investigation, commenced or threatened,
or any claim whatsoever or in appearing or preparing for appearance as a witness
in any action, suit or proceeding, including any inquiry, investigation or
pretrial proceeding such as a deposition) to which May Davis or such indemnified
person of May Davis may become subject under the 1933 Act, the 1934 Act, the
Rules and Regulations, or any other federal or state law or regulation, common
law or otherwise, arising out of or based upon (i) any untrue statement or
alleged untrue statement of a material fact contained in (a) Section 4 of this
Agreement, (b) the Offering Materials (except those written statements relating
to May Davis given by an indemnified person for inclusion therein), (c) any
application or other document or written communication executed by the Company
or based upon written information furnished by the Company filed in any
jurisdiction in order to qualify the Common Stock under the securities laws
thereof, or any state securities commission or agency; (ii) the omission or
alleged omission from documents described in clauses (a), (b) or (c) above of a
material fact required to be stated therein or necessary to make the statements
therein not misleading; or (iii) the breach of any representation, warranty,
covenant or agreement made by the Company in this Agreement. The Company further
agrees that upon demand by an indemnified person, at any time or from time to
time, it will promptly reimburse such indemnified person for any loss, claim,
damage, liability, cost or expense actually and reasonably paid by the
indemnified person as to which the Company has indemnified such person pursuant
hereto. Notwithstanding the foregoing provisions of this Paragraph 6(A) the
Company shall not be obligated to indemnify any indemnified person in any
proceeding in which a final judgment by a court of competent jurisdiction (after
all appeals or the expiration of time to appeal) is entered against May Davis or
such indemnified person as a direct result of May Davis or such person's gross
negligence or breach of this Agreement and the Company will not be required to
indemnify any person hereunder as a result of any statement made by any
indemnified person furnished to the Company arising out of or based upon i) the
conduct of May Davis or its officers, employees or representatives in its acting
as Placement Agent for the Offering or (ii) the breach of any representation,
warranty, covenant or agreement made by May Davis in this Agreement (iii) any
false or misleading information provided to the Company by one of the May Davis
indemnified persons.

                                       11
<PAGE>

        B. May Davis hereby agrees that it will indemnify and hold the Company
and each officer, director, shareholder, employee or representative of the
Company, and each person controlling, controlled by or under common control with
the Company within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act or the Rules and Regulations, harmless from and against any and all
loss, claim, damage, liability, cost or expense whatsoever (including, but not
limited to, any and all reasonable legal fees and other expenses and
disbursements incurred in connection with investigating, preparing to defend or
defending any action, suit or proceeding, including any inquiry or
investigation, commenced or threatened, or any claim whatsoever or in appearing
or preparing for appearance as a witness in any action, suit or proceeding,
including any inquiry, investigation or pretrial proceeding such as a
deposition) to which the Company or such indemnified person of the Company may
become subject under the 1933 Act, the 1934 Act, the Rules and Regulations, or
any other federal or state law or regulation, common law or otherwise, arising
out of or based upon (i) the conduct of May Davis or its officers, employees or
representatives in its acting as Placement Agent for the Offering or (ii) the
breach of any representation, warranty, covenant or agreement made by May Davis
in this Agreement (iii) any false or misleading information provided to the
Company by one of the May Davis indemnified persons.

        C. Promptly after receipt by an indemnified party of notice of
commencement of any action covered by Section 6(A) or 6(B), the party to be
indemnified shall, within five (5) business days, notify the indemnifying party
of the commencement thereof; the omission by one (1) indemnified party to so
notify the indemnifying party shall not relieve the indemnifying party of its
obligation to indemnify any other indemnified party that has given such notice
and shall not relieve the indemnifying party of any liability outside of this
indemnification if not materially prejudiced thereby. In the event that any
action is brought against the indemnified party, the indemnifying party will be
entitled to participate therein and, to the extent it may desire, to assume and
control the defense thereof with counsel chosen by it which is reasonably
acceptable to the indemnified party. After notice from the indemnifying party to
such indemnified party of its election to so assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under such
Section 6(A) or 6(B) for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof, but the
indemnified party may, at its own expense, participate in such defense by
counsel chosen by it, without, however, impairing the indemnifying party's
control of the defense. Subject to the proviso of this sentence and
notwithstanding any other statement to the contrary contained herein, the
indemnified party or parties shall have the right to choose its or their own
counsel and control the defense of any action, all at the expense of the
indemnifying party if, (i) the employment of such counsel shall have been
authorized in writing by the indemnifying party in connection with the defense
of such action at the expense of the indemnifying party, or (ii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
such indemnified party to have charge of the defense of such action within a
reasonable time after notice of commencement of the action, or (iii) such
indemnified party or parties shall have reasonably concluded that there may be
defenses available to it or them which are different from or additional to those
available to one or all of the indemnifying parties (in which case the
indemnifying parties shall not have the right to direct the defense of such
action on behalf of the indemnified party or parties), in any of which events
such fees and expenses of one additional counsel shall be borne by the
indemnifying party; provided, however, that the indemnifying party shall not, in
connection with any one action or separate but substantially similar or related
actions

                                       12
<PAGE>

in the same jurisdiction arising out of the same general allegations or
circumstance, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys at any time for all such indemnified parties. No
settlement of any action or proceeding against an indemnified party shall be
made without the consent of the indemnifying party.

        D. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in Section 6(A) or 6(B)
is due in accordance with its terms but is for any reason held by a court to be
unavailable on grounds of policy or otherwise, the Company and May Davis shall
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with the investigation
or defense of same) which the other may incur in such proportion so that May
Davis shall be responsible for such percent of the aggregate of such losses,
claims, damages and liabilities as shall equal the percentage of the gross
proceeds paid to May Davis and the Company shall be responsible for the balance;
provided, however, that no person guilty of fraudulent misrepresentation within
the meaning of Section 11(f) of the 1933 Act shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section 6(D), any person controlling, controlled by or under
common control with May Davis, or any partner, director, officer, employee,
representative or any agent of any thereof, shall have the same rights to
contribution as May Davis and each person controlling, controlled by or under
common control with the Company within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act and each officer of the Company and each director
of the Company shall have the same rights to contribution as the Company. Any
party entitled to contribution will, promptly after receipt of notice of
commencement of any action, suit or proceeding against such party in respect of
which a claim for contribution may be made against the other party under this
Section 6(D), notify such party from whom contribution may be sought, but the
omission to so notify such party shall not relieve the party from whom
contribution may be sought from any obligation they may have hereunder or
otherwise if the party from whom contribution may be sought is not materially
prejudiced thereby. The indemnity and contribution agreements contained in this
Section 6 shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any indemnified person or any termination
of this Agreement.

        7. Payment of Expenses.

        The Company hereby agrees to bear all of it's own expenses in connection
with the Offering, including, but not limited to the following: filing fees,
printing and duplicating costs, advertisements, postage and mailing expenses
with respect to the transmission of Offering Materials, registrar and transfer
agent fees, fees of the Investors Counsel, Escrow Agent fees and expenses, fees
of the Company's counsel and accountants, issue and transfer taxes, if any.

        8. Conditions of Closing

        The Closing shall be held at the offices of May Davis or its counsel.
The obligations of May Davis hereunder shall be subject to the continuing
accuracy of the representations and warranties of the Company herein as of the
date hereof and as of the Date of Closing (the "Closing Date") with respect to
the Company as if it had been made on and as of such Closing Date; the accuracy
on and as of the Closing Date of the statements of the officers of the Company
made pursuant to the provisions hereof; and the performance by the Company on
and as of the Closing Date of its covenants and obligations hereunder and to the
following further conditions:

                                       13
<PAGE>

        A. At the Closing, May Davis shall receive the opinion of Edward T.
Swanson, Esq., dated as of the date of the Closing, which opinion shall be in
form and substance reasonably satisfactory to counsel for May Davis.

        B. At or prior to the Closing, counsel for May Davis shall have been
furnished such documents, certificates and opinions as they may reasonably
require for the purpose of enabling them to review or pass upon the matters
referred to in this Agreement and the Offering Materials, or in order to
evidence the accuracy, completeness or satisfaction of any of the
representations, warranties or conditions herein contained.

        C. At and prior to the Closing, (i) there shall have been no material
adverse change nor development involving a prospective change in the condition
or prospects or the business activities, financial or otherwise, of the Company
from the latest dates as of which such condition is set forth in the Offering
Materials; (ii) there shall have been no transaction, not in the ordinary course
of business, entered into by the Company which has not been disclosed in the
Offering Materials or to May Davis in writing; (iii) except as set forth in the
Offering Materials, the Company shall not be in default under any provision of
any instrument relating to any outstanding indebtedness for which a waiver or
extension has not been otherwise received; (iv) except as set forth in the
Offering Materials, the Company shall not have issued any securities (other than
those to be issued as provided in the Offering Materials) or declared or paid
any dividend or made any distribution of its capital stock of any class and
there shall not have been any change in the indebtedness (long or short term) or
liabilities or obligations of the Company (contingent or otherwise) and trade
payable debt; (v) no material amount of the assets of the Company shall have
been pledged or mortgaged, except as indicated in the Offering Materials; and
(v) no action, suit or proceeding, at law or in equity, against the Company or
affecting any of its properties or businesses shall be pending or threatened
before or by any court or federal or state commission, board or other
administrative agency, domestic or foreign, wherein an unfavorable decision,
ruling or finding could materially adversely affect the businesses, prospects or
financial condition or income of the Company, except as set forth in the
Offering Materials.

        D. At Closing, May Davis shall receive a certificate of the Company
signed by an executive officer and chief financial officer, dated as of the
applicable Closing, to the effect that the conditions set forth in subparagraph
(C) above have been satisfied and that, as of the applicable closing, the
representations and warranties of the Company set forth herein are true and
correct.

        9. Termination.

        This Agreement shall be co-terminus with, and terminate upon the same
terms and conditions as those set forth in, the Equity Line of Credit . The
rights of the Investors and the obligations of the Company under the
Registration Rights Agreement, and the rights of May Davis and the obligations
of the Company shall survive the termination of this Agreement unabridged.

        10. Miscellaneous.

        A. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all which shall be deemed to be one
and the same instrument.

        B. Any notice required or permitted to be given hereunder shall be given
in writing and shall be deemed effective when deposited in the United States
mail, postage prepaid, or when received if personally delivered or faxed ( upon
confirmation of receipt received by the sending party), addressed as follows:

                                       14
<PAGE>

If to Placement Agent, to:      The May Davis Group, Inc.
                                One World Trade Center
                                New York, NY 10048
                                Attention: Michael Jacobs
                                Telephone: (212)775-7400
                                Facsimile: (212) 775-8166

With Copy to:                   Butler Gonzalez LLP
                                1000 Stuyvesant Avenue
                                Union, NJ 07083
                                Attention: David Gonzalez, Esq.
                                Telephone: (908) 810-8588
                                Facsimile: (908) 810-0973

If to the Company, to:          Blagman Media International Inc.
                                1901 Avenue of the Stars
                                Suite 1710
                                Los Angeles, CA 90067
                                Attention: Robert Blagman
                                           Chairman and Chief Executive Officer
                                Telephone: (310) 788-5444
                                Facsimile: (310) 788-5440

With a copy to:                 Edward T. Swanson, Esq.
                                1135 17th Street
                                Santa Monica, CA 9043

                                Attention: Edward T. Swanson, Esq.
                                Telephone: (310) 283-1035
                                Facsimile: (310) 828-6138

or to such other address of which written notice is given to the others.

        C. This Agreement shall be governed by and construed in all respects
under the laws of the State of New York, without reference to its conflict of
laws rules or principles. Any suit, action, proceeding or litigation arising out
of or relating to this Agreement shall be brought and prosecuted in such federal
or state court or courts located within the State of New York as provided by
law. The parties hereby irrevocably and unconditionally consent to the
jurisdiction of each such court or courts located within the State of New York
and to service of process by registered or certified mail, return receipt
requested, or by any other manner provided by applicable law, and hereby
irrevocably and unconditionally waive any right to claim that any suit, action,
proceeding or litigation so commenced has been commenced in an inconvenient
forum.

                                       15
<PAGE>

        D. This Agreement and the other agreements referenced herein contain the
entire understanding between the parties hereto and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the modification or amendment is sought.

        E. If any provision of this Agreement shall be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       16
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                       BLAGMAN MEDIA INTERNATIONAL INC.

                                       By:
                                           -------------------------------------
                                       Name: Robert Blagman
                                       Title: Chairman  and Chief Executive
                                              Officer

                                       MAY DAVIS GROUP, INC.

                                       By:
                                           -------------------------------------
                                       Name: Michael Jacobs
                                       Title: Managing Director

                                       17

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