HELP, ITS A MESS!!

Here is a thing : 30 hours ago, i was completely free nd useless .Had a lot of reminders to open source & learn new techs for upcoming summer vacations .

But day before yesterday my friend called me to say that he got a 6 month internship in web from some (not so big) startup and they were looking for some Android dev too, so he gave my name and wanted me to mail him my resume.

I did, and within half an hour he called, discussed about the work and wanted to test me.(as i said i didn't had plans for internship , leave alone a sudden test, but the company was work from home so i didn't denied ) The test was a big one but easy, he wanted me to design 15 UI activities for an app by looking at the wireframe. I asked for next 6 hours, did it in 4.5 and submitted him the repo...

THE TROUBLE STARTS NOW...
1) He seemed impressed i guess, coz the next day when he saw my message, he Created a group of 5 people within a few minutes and started assigning tasks(?!) And in the personal chat what he said was just weird : "You are the lead for this project" (WTF??!?)

2)I had already mentioned him that i currently had exams so won't be doing any much of practical work but after every few grp messages, he was trying to assign me some task and a deadline. Weirdly, the test was actually a wireframe based on the project idea from some of their client , and just to show my skills, i have designed layouts of 15 of their activities of their app.

3) The negetive part comes like this: THERE IS NO MONEY AND ITS A 6 MONTH INTERNSHIP !! Fed up of this continues indirect deadlines, i asked him What's my responsibilities as a team dev, what will be my tenure and what will be the pay to which he replies that:

"there is no stipend for this, we have multiple projects lined up in which you can contribute and your internship period is 6 months which could be increased/decreased on the basis of your performance. You will get a PPO, Internship certificate , mentor support and intellectual code rights (which i am guessing means my 2 word name in the about pages of the apps i develop for them ) .And as a lead , you will be getting an experience in leadership skills "

I am really confused. Work from home seems like a relaxing thing , and being a team lead for the first time definitely would make me a little more confident. But why does it feel to be kind of fraud plan? Plus there is no pay and i would be ignoring my creativity ideas for this (not completely but i am sure anyone giving a job would expect some work from me eceryday ).

WHAT SHOULD I DO???