Document:

EXHIBIT 4.2

Offering Memorandum                                                Confidential
Dated July 12, 1996

                            Mariculture Systems, Inc.
                             (A Florida Corporation)

                                1,200, 000 Shares

                          At a Price of $.01 Per Share

     Mariculture  Systems,  Inc., a Florida  corporation (the  "Company"),  is a
company which installs cable and fiber optic system.

     The Company's  principal  office is located at 222 Lakeview  Avenue,  Suite
160-124, West Palm Beach, FL 33401.

     AN INVESTMENT IN THE COMPANY IS  SPECULATIVE  AND INVOLVES A HIGH DEGREE OF
RISK.  INVESTMENT IN THE SECURITIES  OFFERED HEREBY IS SUITABLE ONLY FOR PERSONS
OF SUBSTANTIAL  FINANCIAL MEANS WHO CAN AFFORD A TOTAL LOSS OF THEIR  INVESTMENT
AND WILL BE SOLD ONLY TO  ACCREDITED  OR OTHERWISE  QUALIFIED  INVESTORS.  FOR A
DISCUSSION OF THE MATERIAL RISKS IN CONNECTION  WITH THE PURCHASE OF THE SHARES,
SEE "INVESTMENT RISK CONSIDERATIONS".

     The SECURITIES ARE BEING OFFERED WITHOUT  REGISTRATION UNDER THE SECURITIES
ACT OF 1933,  AS AMENDED  (The  "ACT"),  IN  RELIANCE  UPON The  EXEMPTION  FROM
REGISTRATION  AFFORDED  BY  SECTIONS  4(2)  AND 3(b) OF The  SECURITIES  ACT AND
REGULATION D PROMULGATED THEREUNDER.

     THIS MEMORANDUM HAS NOT BEEN REVIEWED OR APPROVED OR  DISAPPROVED,  NOR HAS
The ACCURACY OR ADEQUACY OF THE INFORMATION SET FORTH HEREIN BEEN PASSED UPON BY
The SECURITIES AND EXCHANGE  COMMISSION OR ANY STATE  SECURITIES  ADMINISTRATOR.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS OFFERING IS BEING
MADE  PURSUANT  TO THE  EXEMPTIONS  AFFORDED  BY  SECTIONS  4(2)  OR 3(b) OF THE
SECURITIES  ACT OF 1933 AND RULE 504 OF REGULATION D PROMULGATED  THEREUNDER AND
STATE SMALL CORPORATE OFFERING  REGISTRATION  PROVISIONS.  PURSUANT TO RULE 504,
THE SHARES SOLD HEREBY WILL NOT BE SUBJECT TO ANY  LIMITATIONS ON RESALE THEREOF
UNDER FEDERAL LAW. THE SHARES MAY,  HOWEVER,  BE SUBJECT TO  LIMITATIONS  ON THE
OFFER AND SALE AND THE  RESALE  OF THE  SHARES  IMPOSED  BY The BLUE SKY LAWS OF
INDIVIDUAL  STATES.  IN  ADDITION,  The  COMPANY  INTENDS  TO FILE THE  REQUIRED
DOCUMENTS IN CERTAIN OTHER STATES  IDENTIFIED  BY MANAGEMENT AS HAVING  POSSIBLE
INVESTOR  INTEREST AND USE ITS BEST EFFORTS TO QUALIFY The SHARES FOR  SECONDARY
TRADING IN SUCH STATES, THOUGH NO ASSURANCE CAN BE GIVEN THAT IT WILL BE ABLE TO
QUALIFY The SHARES FOR SECONDARY  TRADING IN ANY SUCH STATES IN WHICH IT SUBMITS
SUCH APPLICATIONS AND DOCUMENTS. AN

                                        1

<PAGE>

INABILITY TO QUALIFY The SHARES FOR  SECONDARY  TRADING WILL CREATE  SUBSTANTIAL
RESTRICTION ON The  TRANSFERABILITY  OF SUCH SHARES WHICH MAY NEGATE The BENEFIT
OF The EXEMPTION  PROVIDED BY RULE 504 OF REGULATION D. SEE "RISK  FACTORS." THE
COMPANY  WILL USE ITS BEST  EFFORTS  TO CAUSE  The  SHARES  TO BE  LISTED ON THE
ELECTRONIC  BULLETIN  BOARD  OPERATED BY The NATIONAL  ASSOCIATION OF SECURITIES
DEALERS,  INC.  AS A MARKET IN WHICH THEY MAY BE TRADED.  THERE IS NO  ASSURANCE
THAT SUCH  LISTING  WILL BE OBTAINED  OR THAT IF A LISTING IS OBTAINED  THAT ANY
MARKET FOR THE SHARES WILL DEVELOP, OR IF DEVELOPED, THAT IT WILL BE SUSTAINED.

        ----------------------------------------------------------------

                  Subscription                            Proceeds to the
                  Price              Commissions(1)           Company

Per Share         $0.01                 $ -0-                $ 12,000

(1) The Shares are being sold by the Company's  sole Officer and no  commissions
will be paid in connection with the Offering.

                                   Mariculture Systems, Inc.
                                   222 Lakeview Avenue, Suite 160-124
                                   West Palm Beach, FL 33401
                                   (407) 833-5092

                                        2

<PAGE>

                            CONFIDENTIAL INFORMATION

         THE INFORMATION  CONTAINED IN THIS OFFERING  MEMORANDUM IS CONFIDENTIAL
AND PROPRIETARY TO THE COMPANY AND IS BEING  SUBMITTED TO PROSPECTIVE  INVESTORS
IN THE  COMPANY  SOLELY FOR SUCH  INVESTORS'  CONFIDENTIAL  USE WITH THE EXPRESS
UNDERSTANDING  THAT, WITHOUT THE PRIOR WRITTEN  PERMISSION OF THE COMPANY,  SUCH
PERSONS  WILL NOT RELEASE  THIS  DOCUMENT OR DISCUSS THE  INFORMATION  CONTAINED
HEREIN OR MAKE REPRODUCTIONS OF OR USE THIS OFFERING  MEMORANDUM FOR ANY PURPOSE
OTHER THAN EVALUATING A POTENTIAL INVESTMENT IN THE SHARES.

         A  PROSPECTIVE   INVESTOR,  BY  ACCEPTING  DELIVERY  OF  THIS  OFFERING
MEMORANDUM,  AGREES  PROMPTLY TO RETURN TO THE COMPANY THIS OFFERING  MEMORANDUM
AND ANY OTHER  DOCUMENTS OR INFORMATION  FURNISHED IF THE  PROSPECTIVE  INVESTOR
ELECTS NOT TO PURCHASE ANY OF THE SHARES OFFERED HEREBY.

         THE INFORMATION  PRESENTED  HEREIN WAS PREPARED BY THE COMPANY IS BEING
FURNISHED BY THE COMPANY SOLELY FOR USE BY  PROSPECTIVE  INVESTORS IN CONNECTION
WITH THE  OFFERING  NOTHING  CONTAINED  HEREIN  IS,  OR SHOULD BE RELIED ON AS A
PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF THE COMPANY.

         THIS OFFERING  MEMORANDUM  DOES NOT PURPORT TO BE  ALL-INCLUSIVE  OR TO
CONTAIN  ALL  THE  INFORMATION  THAT  A  PROSPECTIVE   INVESTOR  MAY  DESIRE  IN
INVESTIGATING  THE  COMPANY.  EACH  INVESTOR  MUST  CONDUCT  AND RELY ON ITS OWN
EVALUATION  OF THE COMPANY AND THE TERMS OF THE  OFFERING,  INCLUDING THE MERITS
AND RISKS INVOLVED.  IN MAKING AN INVESTMENT DECISION WITH RESPECT TO THE SHARES
SEE "RISK FACTORS" FOR A DISCUSSION OF CERTAIN FACTORS THAT SHOULD BE CONSIDERED
IN CONNECTION WITH THE PURCHASE OF SHARES.

         THIS  OFFERING  MEMORANDUM  DOES NOT  CONSTITUTE  AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY THE SHARES IN ANY JURISDICTION  WHERE, OR TO ANY
PERSON TO WHOM,  IT IS  UNLAWFUL  TO MAKE  SUCH  OFFER OR  SOLICITATION  IN SUCH
JURISDICTION.  EXCEPT AS OTHERWISE INDICATED, THIS OFFERING MEMORANDUM SPEAKS AS
OF THE DATE HEREOF.  NEITHER THE DELIVERY OF THIS  OFFERING  MEMORANDUM  NOR ANY
SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES,  CREATE ANY IMPLICATION THAT
THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY AFTER THE DATE HEREOF.

         NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY  INFORMATION  OTHER THAN THAT
CONTAINED  IN THIS  OFFERING  MEMORANDUM,  OR TO  MAKE  ANY  REPRESENTATIONS  IN
CONNECTION  WITH THE  OFFERING  MADE HEREBY,  AND, FI GIVEN OR MADE,  SUCH OTHER
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED
BY THE  COMPANY.  THE COMPANY  DISCLAIMS  IN, OR OMISSION  FROM,  THIS  OFFERING
MEMORANDUM  OR ANY  OTHER  WRITTEN  OR ORAL  COMMUNICATION  TRANSMITTED  OR MADE
AVAILABLE TO THE RECIPIENT.

                                        3

<PAGE>

FOR RESIDENT OF ALL STATES:

         THE SHARES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OR THE  SECURITIES  LAWS OF ANY  STATE  AND ARE  BEING  OFFERED  AND SOLD IN
RELIANCE ON EXEMPTIONS FROM THE REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT
AND SUCH LAWS. THE SHARES ARE SUBJECT TO RESTRICTIONS ON THE TRANSFERABILITY AND
RESALE  AND MAY NOT BE  TRANSFERRED  OR  RESOLD  EXCEPT AS  PERMITTED  UNDER THE
SECURITIES ACT AND SUCH LAWS PURSUANT TO  REGISTRATION  OR EXEMPTION  THEREFROM.
THE SHARES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES
AND EXCHANGE  COMMISSION.  ANY STATE  SECURITIES  COMMISSION OR OTHER REGULATORY
AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE
MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THIS OFFERING MEMORANDUM.
ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

                        NOTICES TO PROSPECTIVE INVESTORS

         THIS OFFERING  MEMORANDUM IS SUBMITTED IN CONNECTION  WITH THE OFFERING
OF THE  SHARES  AND MAY NOT BE  REPRODUCED  OR USED FOR ANY  OTHER  PURPOSE.  BY
ACCEPTING DELIVERY OF THIS OFFERING MEMORANDUM,  EACH RECIPIENT AGREES TO RETURN
THIS OFFERING MEMORANDUM AND ALL OTHER DOCUMENTS IF THE RECIPIENT DOES NOT AGREE
TO PURCHASE ANY OF THE SHARES TO THE COMPANY AT ITS ADDRESS  LISTED ON THE COVER
OF THE OFFERING MEMORANDUM.

         THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON THE TRANSFERABILITY AND
RESALE  AND  MAY  NOT BE  TRANSFERRED  OR  RESOLD  EXCEPT  AS  PERMITTED  BY THE
SECURITIES ACT OF 1933, AS AMENDED,  AND THE APPLICABLE  STATE  SECURITIES LAWS.
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM,  INVESTORS SHOULD BE AWARE THAT
THEY WILL BE  REQUIRED TO BEAR THE  FINANCIAL  RISKS OF THIS  INVESTMENT  FOR AN
INDEFINITE PERIOD OF TIME.

         IN  MAKING AN  INVESTMENT  DECISION,  INVESTORS  MUST RELY ON THEIR OWN
EXAMINATION OF THE PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE
OFFERING,  INCLUDING THE MERITS AND RISKS  INVOLVED.  THESE  SECURITIES HAVE NOT
BEEN  RECOMMENDED  BY ANY FEDERAL OR STATE  SECURITIES  COMMISSION OR REGULATORY
AUTHORITY.  FURTHERMORE,  THE  FOREGOING  AUTHORITIES  HAVE  NOT  CONFIRMED  THE
ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT.  ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.

         THIS OFFERING  MEMORANDUM  DOES  NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO PURCHASE SHARES TO ANY PERSON IN ANY STATE OR IN ANY

                                        4

<PAGE>

JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS UNLAWFUL,  SUBJECT TO THE
PRECEDING  SENTENCE.  THIS OFFERING MEMORANDUM IS INTENDED FOR THE EXCLUSIVE USE
OF THE PERSON TO WHOM IT IS DELIVERED BY AN  AUTHORIZED  AGENT OF THE COMPANY ON
BEHALF OF THE COMPANY.

         PROSPECTIVE  INVESTORS  ARE  NOT  TO  CONSTRUE  THE  CONTENTS  OF  THIS
CONFIDENTIAL  OFFERING  MEMORANDUM OR ANY PRIOR OR SUBSEQUENT  COMMUNICATIONS AS
LEGAL, TAX OR INVESTMENT  ADVICE.  EACH INVESTOR SHOULD CONSULT HIS OWN COUNSEL,
ACCOUNTANT OR BUSINESS ADVISOR AS TO LEGAL, TAX AND RELATED MATTERS COVERING HIS
INVESTMENT.

         THE SHARES ARE  OFFERED  SUBJECT TO THE  ACCEPTANCE  BY THE  COMPANY OF
OFFERS BY PROSPECTIVE  INVESTORS,  ALLOCATION OF SHARES BY THE COMPANY AND OTHER
CONDITIONS  SET FORTH  HEREIN.  THE  COMPANY MAY REJECT ANY OFFER IN WHOLE OR IN
PART AND NEED NOT ACCEPT OFFERS IN THE ORDER RECEIVED.

         THIS  CONFIDENTIAL  OFFERING  MEMORANDUM  DOES NOT  CONTAIN  AN  UNTRUE
STATEMENT OF A MATERIAL FACT OR OMIT TO STATE A MATERIAL FACT  NECESSARY TO MAKE
THE STATEMENTS  MADE IN LIGHT OF THE  CIRCUMSTANCES  UNDER WHICH THEY WERE MADE,
NOT  MISLEADING.  IT CONTAINS A FAIR SUMMARY OF THE MATERIAL  TERMS AND DOCUMENT
PURPORTED TO BE SUMMARIZED HEREIN.

         THE SHARES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF CERTAIN STATES AND ARE BEING
OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF
SAID ACT AND SUCH  LAWS.  THE  SHARES  UNDERLYING  THE  SHARES  ARE  SUBJECT  TO
RESTRICTIONS ON TRANSFERABILITY  AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED  UNDER SAID ACT AND SUCH LAWS  PURSUANT TO  REGISTRATION  OR
EXEMPTION  THEREFROM.  THE SHARES HAVE NOT BEEN APPROVED OR  DISAPPROVED  BY THE
SECURITIES AND EXCHANGE COMMISSION OR OTHER REGULATORY  AUTHORITY,  NOR HAVE ANY
OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING
OR THE ACCURACY OR ADEQUACY OF THE OFFERING  MEMORANDUM.  ANY  REPRESENTATION TO
THE CONTRARY IS UNLAWFUL.

         THE  SUBSCRIPTION  PRICE  FOR  THE  SHARES  IS  PAYABLE  IN  FULL  UPON
SUBSCRIPTION.  THE OFFERING PRICE WAS DETERMINED  ARBITRARILY BY THE COMPANY AND
BEARS NO RELATIONSHIP TO ASSETS,  EARNINGS,  BOOK VALUE OR ANY OTHER CRITERIA OF
VALUE. NO  REPRESENTATION IS MADE THAT THE SHARES HAVE MARKET VALUE OF, OR COULD
BE RESOLD AT, THAT PRICE (SEE "RISK FACTORS," "DILUTION," AND "USE OF PROCEEDS).

         THE  SHARES WILL BE OFFERED BY THE COMPANY ON A BEST EFFORTS BASIS TO A
SELECT GROUP OF INVESTORS WHO MEET CERTAIN SUITABILITY STANDARDS. NO COMMISSIONS
AND NO NON-ACCOUNTABLE OR ACCOUNTABLE EXPENSE

                                        5

<PAGE>

ALLOWANCE  OF ANY KIND WILL BE PAID FROM OR DEDUCTED  FROM THE  PROCEEDS  RAISED
HEREBY.  THE COMPANY WILL ABSORB ALL  MARKETING  EXPENSES  ASSOCIATED  WITH THIS
OFFERING 9SEE "USE OF PROCEEDS").

         THE  COMPANY HAS AGREED TO PROVIDE,  PRIOR TO THE  CONSUMMATION  OF THE
TRANSACTIONS  CONTEMPLATED HEREIN, TO EACH POTENTIAL PURCHASER OF SECURITIES (OR
HIS  REPRESENTATIVES)  OR BOTH) THE OPPORTUNITY TO ASK QUESTIONS OF, AND RECEIVE
ANSWERS  FROM,  THE COMPANY OR ANY PERSON  ACTING ON ITS BEHALF  CONCERNING  THE
TERMS AND CONDITIONS OF THIS OFFERING AND TO OBTAIN ANY ADDITIONAL  INFORMATION,
TO  THE  EXTENT  THEY  POSSESS  SUCH  INFORMATION  OR  CAN  ACQUIRE  IT  WITHOUT
UNREASONABLE  EFFORT  OR  EXPENSE  NECESSARY  TO  VERIFY  THE  ACCURACY  OF  THE
INFORMATION SET FORTH HEREIN.

         THIS OFFERING MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO ANY PERSON WHO
DOES NOT MEET THE SUITABILITY  STANDARDS DESCRIBED HEREIN.  REPRODUCTION OF THIS
OFFERING MEMORANDUM IS STRICTLY PROHIBITED.

         NO  PERSON  IS  AUTHORIZED  TO GIVE  ANY  INFORMATION  OR TO  MAKE  ANY
REPRESENTATION  NOT CONTAINED IN THIS OFFERING  MEMORANDUM EXCEPT AS NOTED ABOVE
WITH REGARD TO QUESTIONS ASKED OF THE COMPANY AND OF THOSE  AUTHORIZED TO ACT ON
ITS BEHALF.  NO OFFERING  LITERATURE OR ADVERTISING  HAS BEEN  AUTHORIZED BY THE
COMPANY  EXCEPT  THE   INFORMATION   CONTAINED   HEREIN.   ANY   INFORMATION  OR
REPRESENTATION  NOT  CONTAINED  HEREIN  MUST NOT BE RELIED  UPON AS HAVING  BEEN
AUTHORIZED  BY THE COMPANY OR ITS  OFFICERS AND  DIRECTORS.  EXCEPT AS OTHERWISE
INDICATED,  THIS  OFFERING  MEMORANDUM  SPEAKS AS OF THE DATE ON THE COVER  PAGE
NEITHER THE DELIVERY OF THIS  OFFERING  MEMORANDUM  NOR ANY SALE MADE  HEREUNDER
SHALL,  UNDER ANY  CIRCUMSTANCES,  CREATE ANY IMPLICATION THAT THERE HAS BEEN NO
CHANGE IN THE AFFAIRS OF THE  COMPANY  SINCE THE  RESPECTIVE  DATES AT WHICH THE
INFORMATION IS GIVEN HEREIN OR THE DATE HEREOF.

         ANY UNSOLD SHARES MAY BE PURCHASED BY THE COMPANY OR ITS  AFFILIATES ON
THE SAME TERMS AS SHARES PURCHASED BY OTHER INVESTORS.

                     NOTICES TO RESIDENTS OF CERTAIN STATES

                           NOTICE TO ALABAMA RESIDENTS

         THESE SECURITIES ARE OFFERED PURSUANT TO A CLAIM OF EXEMPTION UNDER THE
ALABAMA  SECURITIES ACT. A REGISTRATION  STATEMENT  RELATING TO THESE SECURITIES
HAS NOT BEEN FILED WITH THE ALABAMA SECURITIES  COMMISSION.  THE COMMISSION DOES
NOT RECOMMEND OR ENDORSE THE PURCHASE OF ANY  SECURITIES,  NOR DOES IT PASS UPON
THE ACCURACY OR COMPLETENESS OF THIS OFFERING MEMORANDUM.  ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

                                        6

<PAGE>

         ANYTHING TO THE CONTRARY HEREIN  NOTWITHSTANDING,  THE INVESTMENT OF AN
ALABAMA  PURCHASER  WHO IS NOT AN ACCREDIT  INVESTOR MAY NOT EXCEED TWENTY (20%)
PER CENT OF SUCH  PURCHASER'S  NET  WORTH,  EXCLUSIVE  OF  PRINCIPAL  RESIDENCE,
FURNISHINGS AND AUTOMOBILES.

                           NOTICE TO ALASKA RESIDENTS

         THESE SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE ALASKA  SECURITIES
ACT AND MAY  NOT BE  SOLD  WITHOUT  REGISTRATION  UNDER  THAT  ACT OR  EXEMPTION
THEREFROM.

                           NOTICE TO ARIZONA RESIDENTS

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE ARIZONA  SECURITIES
ACT AND ARE BEING  SOLD IN  RELIANCE  UPON THE  EXEMPTION  CONTAINED  IN SECTION
44-184(1) OF SUCH ACT.  THESE  SECURITIES  MAY NOT BE SOLD WITHOUT  REGISTRATION
UNDER SUCH ACT OR EXEMPTION THEREFROM.

         ARIZONA  RESIDENTS MUST HAVE EITHER (i) A MINIMUM NET WORTH OF AT LEAST
SEVENTY FIVE THOUSAND  ($75,000)  DOLLARS  (EXCLUDING HOME, HOME FURNISHINGS AND
AUTOMOBILES)  AND A  MINIMUM  ANNUAL  GROSS  INCOME  OF  SEVENTY  FIVE  THOUSAND
(475,000)  DOLLARS;  OR (iii) A NET WORTH OF AT LEAST TWO  HUNDRED  TWENTY  FIVE
THOUSAND ($225,000) DOLLARS (AS COMPUTED ABOVE).

                          NOTICE TO ARKANSAS RESIDENTS

         THESE  SECURITIES  ARE OFFERED  PURSUANT TO A CLAIM OF EXEMPTION  UNDER
SECTION  14(b)(14)  OF THE  ARKANSAS  SECURITIES  ACT  AND  SECTION  4(2) OF THE
SECURITIES ACT OF 1933. A REGISTRATION  STATEMENT  RELATING TO THESE  SECURITIES
HAS NOT  BEEN  FILED  WITH  THE  ARKANSAS  SECURITIES  DEPARTMENT  OR  WITH  THE
SECURITIES  AND EXCHANGE  COMMISSION.  NEITHER THE DEPARTMENT NOR THE COMMISSION
HAS PASSED UPON THE VALUE OF THESE SECURITIES,  MADE ANY  RECOMMENDATIONS  AS TO
THEIR  PURCHASE,  APPROVED  OR  DISAPPROVED  THE  OFFERING,  OR PASSED  UPON THE
ADEQUACY OR ACCURACY OF THIS  OFFERING  MEMORANDUM.  ANY  REPRESENTATION  TO THE
CONTRARY IS UNLAWFUL.

         NOTWITHSTANDING  ANYTHING TO THE CONTRARY  HEREIN,  AN  INVESTMENT BY A
NON-ACCREDITED  INVESTOR MAY NOT EXCEED TWENTY (20%) PER CENT OF THE  INVESTOR'S
NET WORTH AT THE TIME OF PURCHASE, ALONE OR JOINTLY WITH SPOUSE.

                         NOTICE TO CALIFORNIA RESIDENTS

         IF THE COMPANY ELECTS TO SELL SHARES IN THE STATE OF CALIFORNIA,  IT IS
UNLAWFUL TO  CONSUMMATE  A SALE OR TRANSFER  OF THE  SHARES,  OR OTHER  INTEREST
THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR WITHOUT THE

                                        7

<PAGE>

PRIOR  WRITTEN  CONSENT  OF THE  COMMISSIONER  OF  CORPORATIONS  OF THE STATE OF
CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES.

                         NOTICE TO CONNECTICUT RESIDENTS

         THESE  SECURITIES  HAVE  NOT  BEEN  REGISTERED  UNDER  THE  CONNECTICUT
SECURITIES  ACT  AND MAY NOT BE SOLD  OR  TRANSFERRED  WITHOUT  REGISTRATION  OR
EXEMPTION THEREFROM.

                          NOTICE TO DELAWARE RESIDENTS

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE DELAWARE SECURITIES
ACT  AND  MAY  NOT BE SOLD OR  TRANSFERRED  WITHOUT  REGISTRATION  OR  EXEMPTION
THEREFROM.

                           NOTICE TO FLORIDA RESIDENTS

         THE SHARES  REFERRED  TO HEREIN WILL BE SOLD TO, AND  ACQUIRED  BY, THE
HOLDER IN A TRANSACTION  EXEMPT UNDER SECTION 517.061 OF THE FLORIDA  SECURITIES
ACT. THE SHARES HAVE NOT BEEN REGISTERED UNDER SAID ACT IN THE STATE OF FLORIDA.
IN  ADDITION,  ALL FLORIDA  RESIDENTS  SHALL HAVE THE  PRIVILEGE  OF VOIDING THE
PURCHASE WITHIN THREE (3) DAYS AFTER THE FIRST TENDER OF  CONSIDERATION  IS MADE
BY SUCH PURCHASER TO THE ISSUER,  AN AGENT OF THE ISSUER,  OR AN ESCROW AGENT OR
WITHIN THREE (3) DAYS AFTER THE  AVAILABILITY  OF THAT PRIVILEGE IS COMMUNICATED
TO SUCH PURCHASER, WHICHEVER OCCURS LATER.

                           NOTICE TO GEORGIA RESIDENTS

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE GEORGIA  SECURITIES
ACT OF 1973, AS AMENDED.  IN RELIANCE UPON AN EXEMPTION  FROM  REGISTRATION  SET
FORTH  IN  SECTION  9(M)  OF  SUCH  ACT AND  THE  SECURITIES  CANNOT  BE SOLD OR
TRANSFERRED  EXCEPT IN A TRANSACTION  WHICH IS EXEMPT UNDER SUCH ACT OR PURSUANT
TO AN EFFECTIVE  REGISTRATION STATEMENT UNDER SUCH ACT OR IN A TRANSACTION WHICH
IS OTHERWISE IN COMPLIANCE WITH SAID ACT.

                            NOTICE TO IDAHO RESIDENTS

         THESE  SECURITIES  HAVE  NOT  BEEN  REGISTERED  UNDER  THE  CONNECTICUT
SECURITIES  ACT  AND MAY NOT BE SOLD  OR  TRANSFERRED  WITHOUT  REGISTRATION  OR
EXEMPTION THEREFROM.

         ANYTHING  TOT  HE  CONTRARY   NOTWITHSTANDING,   THE  INVESTMENT  BY  A
NON-ACCREDITED  INVESTOR MAY NOT EXCEED TEN (10%) PER CENT OF THE INVESTOR'S NET
WORTH.

                                        8

<PAGE>

                           NOTICE TO INDIANA RESIDENTS

         EACH INVESTOR  PURCHASING  SHARES MUST WARRANT THAT HE HAS EITHER (i) A
NET WORTH (EXCLUSIVE OF HOME, HOME FURNISHING AND AUTOMOBILES) EQUAL TO AT LEAST
THREE (3) TIMES THE AMOUNT OF HIS  INVESTMENT BUT IN N O EVENT LESS THAN SEVENTY
FIVE THOUSAND  (475,000)  DOLLARS OR (ii) A NET WORTH  (EXCLUSIVE OF HOME,  HOME
FURNISHING AND AUTOMOBILES OF TOW (2) TIMES HIS INVESTMENT BUT IN NOT EVENT LESS
THAN THIRTY  THOUSAND  ($30,000)  DOLLARS AND A GROSS INCOME OF THIRTY  THOUSAND
($30,000) DOLLARS.

                            NOTICE TO IOWA RESIDENTS

         IOWA  RESIDENTS  MUST HAVE  EITHER  (i) A NET  WORTH OF AT LEAST  FORTH
THOUSAND ($40,000) DOLLARS (EXCLUSIVE OF HOME, HOME FURNISHINGS AND AUTOMOBILES)
AND A MINIMUM ANNUAL GROSS INCOME OF FORTH THOUSAND ($40,000) DOLLARS, OR (ii) A
NET WORTH OF AT LEAST ONE HUNDRED  TWENTY FIVE  THOUSAND  ($125,000)  DOLLARS AS
COMPUTED ABOVE.

                           NOTICE TO KANSAS RESIDENTS

         AN  INVESTMENT  BY A  NON-ACCREDITED  INVESTOR  SHALL NOT EXCEED TWENTY
(20%) PER CENT OF THE  INVESTOR'S  NET  WORTH;  EXCLUDING  PRINCIPAL  RESIDENCE,
FURNISHINGS THEREIN AND PERSONAL AUTOMOBILES.

                          NOTICE TO KENTUCKY RESIDENTS

         THESE  SECURITIES  REPRESENTED BY THIS  CERTIFICATE (OR OTHER DOCUMENT)
HAVE BEEN  ISSUED  PURSUANT TO A CLAIM OF  EXEMPTION  FROM THE  REGISTRATION  OR
QUALIFICATION  PROVISIONS  OF FEDERAL AND STATE  SECURITIES  LAWS AND MAY NOT BE
SOLD OR TRANSFERRED  WITHOUT  COMPLIANCE WITH THE  REGISTRATION OR QUALIFICATION
PROVISIONS  OF  APPLICABLE  FEDERAL  AND  STATE  SECURITIES  LAWS OR  APPLICABLE
EXEMPTIONS THEREIN.

         ANYTHING TO THE CONTRARY  HEREIN  NOTWITHSTANDING,  THE INVESTMENT BY A
NON-ACCREDITED INVESTOR MAY NOT EXCEED TEN (10%) OF THE INVESTOR'S NET WORTH.

                            NOTICE TO MAINE RESIDENTS

         THESE   SECURITIES  ARE  BEING  SOLD  PURSUANT  TO  AN  EXEMPTION  FROM
REGISTRATION  WITH THE BANK  SUPERINTENDENT  OF THE STATE OF MAINE UNDER SECTION
1052(2)(R) OF TITLE 32 OF THE MAINE REVISED  STATUES.  THESE  SECURITIES  MAY BE
DEEMED  RESTRICTED  SECURITIES  AND AS SUCH THE HOLDER MAY NOT BE ABLE TO RESELL
THE SECURITIES UNLESS PURSUANT TO REGISTRATION UNDER STATE OR FEDERAL SECURITIES
LAWS OR UNLESS AN EXEMPTION UNDER SUCH LAWS EXISTS.

                                        9

<PAGE>

                          NOTICE TO MARYLAND RESIDENTS

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE MARYLAND SECURITIES
ACT IN  RELIANCE  UPON THE  EXEMPTION  FROM  REGISTRATION  SET FORTH IN  SECTION
11-602(9) OF SUCH ACT. UNLESS THESE  SECURITIES ARE REGISTERED,  THEY MAY NOT BE
REOFFERED FOR SALE OR RESOLD IN THE STATE OF MARYLAND,  EXCEPT AS A SECURITY, OR
IN A TRANSACTION EXEMPT UNDER SUCH ACT.

                        NOTICE TO MASSACHUSETTS RESIDENTS

         MASSACHUSETTS RESIDENTS MUST HAVE HAD EITHER (i) A MINIMUM NET WORTH OF
AT LEAST FIFTY THOUSAND  ($50,000) DOLLARS (EXCLUDING HOME, HOME FURNISHINGS AND
AUTOMOBILES)  AND  HAD  DURING  THE  LAST  YEAR,  OR IT IS  ESTIMATED  THAT  THE
SUBSCRIBER  WILL HAVE  DURING THE  CURRENT  TAKE YEAR,  TAXABLE  INCOME OF FIFTY
THOUSAND  ($50,000)  DOLLARS,  OR (ii) A NET WORTH OF AT LEAST ONE HUNDRED FIFTY
THOUSAND ($150,000) DOLLARS (AS COMPUTED ABOVE).

                          NOTICE TO MICHIGAN RESIDENTS

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE MICHIGAN SECURITIES
ACT AND MAY NOT BE SOLD OR TRANSFERRED  WITHOUT  REGISTRATION  UNDER THAT ACT OR
EXEMPTION THEREFROM.

         THE  COMPANY  SHALL  PROVIDE  ALL  MICHIGAN  INVESTORS  WITH A DETAILED
WRITTEN  STATEMENT OF THE APPLICATION OF THE PROCEEDS OF THE OFFERING WITHIN SIX
(6) MONTHS  AFTER  COMMENCEMENT  OF THE OFFERING OR UPON  COMPLETION,  WHICHEVER
OCCURS  FIRST,  AND WITH  ANNUAL  CURRENT  BALANCE  SHEETS AND INCOME  STATEMENT
THEREAFTER.

                          NOTICE TO MINNESOTA RESIDENTS

         THESE  SECURITIES  HAVE NOT BEEN  REGISTERED  UNDER  CHAPTER  80 OF THE
MINNESOTA SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED
OF FOR VALUE EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW.

                         NOTICE TO MISSISSIPPI RESIDENTS

         THESE SECURITIES ARE OFFERED PURSUANT TO A CLAIM OF EXEMPTION UNDER THE
MISSISSIPPI   SECURITIES  ACT.  A  REGISTRATION   STATEMENT  RELATING  TO  THESE
SECURITIES  HAS NOT BEEN FILED WITH THE  MISSISSIPPI  SECRETARY OF STATE OR WITH
THE SECURITIES AND EXCHANGE  COMMISSION.  NEITHER THE SECRETARY OF STATE NOR THE
COMMISSION  HAS PASSED UPON THE VALUE OF THESE  SECURITIES,  NO HAS  APPROVED OR
DISAPPROVED THE OFFERING. THE SECRETARY OF STATE DOES NOT RECOMMEND THE PURCHASE
OF THESE OR ANY OTHER SECURITIES.

                                       10

<PAGE>

         THERE IS NOT ESTABLISHED  MARKET FOR THESE SECURITIES AND THERE MAY NOT
BE ANY MARKET FOR THESE  SECURITIES  IN THE FUTURE.  THE  SUBSCRIPTION  PRICE OF
THESE  SECURITIES  HAS BEEN  ARBITRARILY  DETERMINED BY THE ISSUER AND IS NOT AN
INDICATION OF THE ACTUAL VALUE OF THESE SECURITIES.

         THE  PURCHASER  OF  THESE  SECURITIES  MUST  MEET  CERTAIN  SUITABILITY
STANDARDS  AND  MUST  BE  ABLE  TO  BEAR  THE  ENTIRE  LOSS  OF HIS  INVESTMENT.
ADDITIONALLY,  ALL PURCHASERS  WHO ARE NOT ACCREDITED  INVESTORS MUST HAVE A NET
WORTH OF AT LEAST  THIRTY  THOUSAND  ($30,000)  DOLLARS  AND  INCOME  OF  THIRTY
THOUSAND  ($30,000)  DOLLARS OR A NET WORTH OF SEVENTY FIVE  THOUSAND  ($75,000)
DOLLARS.  THESE  SECURITIES MAY NOT BE TRANSFERRED  FOR A PERIOD OF ONE (1) YEAR
EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE MISSISSIPPI  SECURITIES ACT OR
IN A TRANSACTION IN COMPLIANCE WITH THE MISSISSIPPI SECURITIES ACT.

                          NOTICE TO MISSOURI RESIDENTS

         THESE  SECURITIES  ARE SOLD TO, AND BEING  ACQUIRED BY, THE HOLDER IN A
TRANSACTION EXEMPTED UNDER SECTION 10, SUBSECTION  409.402(b),  MISSOURI UNIFORM
SECURITIES ACT (RMSO 1969).

         THE  SHARES  HAVE TO BEEN  REGISTERED  UNDER  SAID ACT IN THE  STATE OF
MISSOURI, UNLESS THE SHARES ARE REGISTERED,  THEY MAY NOT BE REOFFERED OR RESOLD
IN THE STATE OF MISSOURI, EXCEPT AS A SECURITY, OR IN A TRANSACTION EXEMPT UNDER
SAID ACT.

         ANYTHING  TO THE  CONTRARY  NOTWITHSTANDING,  AN  INVESTOR  MUST HAVE A
MINIMUM ANNUAL INCOME OF THIRTY THOUSAND  ($330,000)  DOLLARS AND A NET WORTH OF
AT LEAST THIRTY THOUSAND  ($30,000)(DOLLARS,  EXCLUSIVE OF HOME, FURNISHINGS AND
AUTOMOBILES OR A NET WORTH OF SEVENTY FIVE THOUSAND  ($75,000) DOLLARS EXCLUSIVE
OF HOME, FURNISHINGS AND AUTOMOBILES.

         AN  INVESTMENT  BY A  NON-ACCREDITED  INVESTOR  SHALL NOT EXCEED TWENTY
(20%) PER CENT OF THE INVESTOR'S NET WORTH.

                           NOTICE TO MONTANA RESIDENTS

         EACH MONTANA  RESIDENT WHO SUBSCRIBES FOR THE SECURITIES  BEING OFFERED
HEREBY  AGREES NOT TO SELL THESE  SECURITIES  FOR A PERIOD OF TWELVE (12) MONTHS
AFTER DATE OF PURCHASE.

         ANYTHING  TO  THE  CONTRARY   NOTWITHSTANDING,   THE  INVESTMENT  BY  A
NON-ACCREDITED  INVESTOR MAY NOT EXCEED TWENTY (20%) PER CENT OF THE  INVESTOR'S
NET WORTH.

                                       11

<PAGE>

                          NOTICE TO NEBRASKA RESIDENTS

         THESE SHARES HAVE NOT BEEN REGISTERED UNDER THE NEBRASKA SECURITIES ACT
AND MAY NOT BE SOLD WITHOUT REGISTRATION UNDER THE ACT OR EXEMPTION THEREFROM.

                        NOTICE TO NEW HAMPSHIRE RESIDENTS

         EACH NEW HAMPSHIRE INVESTOR  PURCHASING SHARES MUST WARRANT THAT HE HAS
EITHER (i) A NET WORTH  (EXCLUSIVE OF HOME, HOME FURNISHING AND  AUTOMOBILES) OF
TWO HUNDRED FIFTY THOUSAND ($250,000) DOLLARS OR (iii) A NET WORTH (EXCLUSIVE OF
HOME,  HOME  FURNISHINGS  AND  AUTOMOBILES  OF ONE HUNDRED  TWENTY FIVE THOUSAND
($125,000) DOLLARS AND FIFTY THOUSAND ($50,000 DOLLARS ANNUAL INCOME.

                         NOTICE TO NEW JERSEY RESIDENTS

         THE  ATTORNEY  GENERAL OF THE STATE HAS NOT PASSED ON OR  ENDORSED  THE
MERITS OF THIS  OFFERING.  THE FILING OF THE WITHIN  OFFERING DOES TO CONSTITUTE
APPROVAL  OF THE ISSUE OR THE SALE  THEREOF BY THE BUREAU OF  SECURITIES  OR THE
DEPARTMENT  OF  LAW  AND  PUBLIC  SAFETY  OF  THE  STATE  OF  NEW  JERSEY.   ANY
REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

                        NOTICE TO NORTH DAKOTA RESIDENTS

            THESE  SECURITIES  HAVE  NOT BEEN  APPROVED  OR  DISAPPROVED  BY THE
SECURITIES  COMMISSION  OF THE STATE OF NORTH  DAKOTA  NOR HAS THE  COMMISSIONER
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.  ANY  REPRESENTATION TO
THE CONTRARY IS CRIMINAL OFFENCE.

                          NOTICE TO NEW YORK RESIDENTS

         THIS OFFERING  MEMORANDUM HAS NOT BEEN REVIEWED BY THE ATTORNEY GENERAL
PRIOR TO ITS ISSUANCE AND USE. THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS
NOT PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE
CONTRARY IS UNLAWFUL.

         THIS  OFFERING  MEMORANDUM  DOES NOT CONTAIN AN UNTRUE  STATEMENT  OF A
MATERIAL FACT OR OMIT TO STATE A MATERIAL FACT  NECESSARY TO MAKE THE STATEMENTS
MADE IN LIGHT OF THE  CIRCUMSTANCES  UNDER WHICH THEY WERE MADE, NOT MISLEADING.
IT CONTAINS A FAIR SUMMARY OF THE MATERIAL  TERMS AND DOCUMENTS  PURPORTED TO BE
SUMMARIZED HEREIN.

                       NOTICE TO NORTH CAROLINA RESIDENTS

         THESE SECURITIES ARE OFFERED PURSUANT TO A CLAIM OF EXEMPTION UNDER THE
NORTH  CAROLINA  SECURITIES  ACT. THE NORTH  CAROLINA  SECURITIES  ADMINISTRATOR
NEITHER RECOMMENDS NOR ENDORSES THE

                                       12

<PAGE>

PURCHASE OF ANY SECURITY,  NOR HAS THE  ADMINISTRATOR  PASSED ON THE ACCURACY OR
ADEQUACY OF THE INFORMATION  PROVIDED HEREIN. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.

                          NOTICE TO OKLAHOMA RESIDENTS

         THESE SECURITIES  RENDERED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 OR THE OKLAHOMA  SECURITIES ACT. THE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT  AND MAY NOT BE SOLD OR TRANSFERRED  FOR VALUE
IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION OF THEM UNDER THE SECURITIES ACT OF
1933 AND/OR THE OKLAHOMA  SECURITIES ACT OF AN OPINION OF COUNSEL TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR ACTS.

         ANYTHING  TO  THE  CONTRARY   NOTWITHSTANDING,   AN   INVESTMENT  BY  A
NON-ACCREDITS  INVESTOR  SHALL NOT EXCEED THEN (10%) PER CENT OF THE  INVESTOR'S
NET WORTH.

                           NOTICE TO OREGON RESIDENTS

         THE SECURITIES  OFFERED HAVE BEEN  REGISTERED  WITH THE DIRECTOR OF THE
STATE OF OREGON UNDER THE PROVISIONS OF OAR 441-65-240.  THE INVESTOR IS ADVISED
THAT THE DIRECTOR HAS MADE ONLY A CURSORY REVIEW OF THE  REGISTRATION  STATEMENT
AND HAS NOT REVIEWED  THIS  DOCUMENTS  SINCE THIS DOCUMENT IS NOT REQUIRED TO BE
FILED WITH THE DIRECTOR.

         THE INVESTOR MUST RELY ON THE INVESTOR'S OWN EXAMINATION OF THE COMPANY
CREATING THE SECURITIES,  AND THE TERMS OF THE OFFERING INCLUDING THE MERITS AND
RISKS INVOLVED IN MAKING AN INVESTMENT DECISION ON THESE SECURITIES.

                        NOTICE TO PENNSYLVANIA RESIDENTS

         ANY  PERSON WHO  ACCEPTS AN OFFER TO  PURCHASE  THE  SECURITIES  IN THE
COMMONWEALTH OF PENNSYLVANIA IS ADVISED,  THAT PURSUANT TO SECTION 207(m) OF THE
PENNSYLVANIA SECURITIES ACT, HE SHALL HAVE THE RIGHT TO WITHDRAW HIS ACCEPTANCE,
AND RECEIVE A FULL  REFUND OF ANY  CONSIDERATION  PAID,  WITHOUT  INCURRING  ANY
LIABILITY,  WITHIN TWO (20) BUSINESS DAYS FROM THE TIME THAT HE RECEIVES  NOTICE
OF THIS WITHDRAWAL  RIGHT AND RECEIVES THE PLACEMENT  OFFERING  MEMORANDUM.  ANY
PERSON  WHO WISHES TO  EXERCISE  SUCH  RIGHT OF  WITHDRAWAL  IS ADVISED TO GIVEN
NOTICE BY LETTER OR  TELEGRAM  SENT TO  POSTMARKED  BEFORE THE END OF THE SECOND
BUSINESS  DAY AFTER  EXECUTION.  IF THE REQUEST FOR  WITHDRAWAL  IS  TRANSMITTED
ORALLY,  WRITTEN  CONFIRMATION MUST BE GIVEN. ANY PERSON WHO PURCHASES INTERESTS
WHO IS A  PENNSYLVANIA  RESIDENT  WILL NOT SELL SUCH  INTERESTS  FOR A PERIOD OF
TWELVE (12) MONTHS BEGINNING WITH THE CLOSING DATE.  PENNSYLVANIA RESIDENTS MUST
HAVE  EITHER  (i) A  MINIMUM  NET  WORTH OF THIRTY  THOUSAND  ($30,000)  DOLLARS
(EXCLUDING HOME, HOME

                                       13

<PAGE>

FURNISHING AND AUTOMOBILES) AND A MINIMUM ANNUAL GROSS INCOME OF THIRTY THOUSAND
($30,000)  DOLLARS,  OR (ii) A NET  WORTH  OF AT  LEAST  SEVENTY  FIVE  THOUSAND
($75,000)  DOLLARS (AS COMPUTED  ABOVE0,  AND MAY NOT INVEST MORE THAN TEN (10%)
PER  CENT  OF  THEIR  NET  WORTH  (EXCLUSIVE  OF  THE  SUBSCRIBER'S  HOME,  HOME
FURNISHINGS AND AUTOMOBILES).

                       NOTICE TO SOUTH CAROLINA RESIDENTS

         THESE SECURITIES ARE OFFERED PURSUANT TO A CLAIM OF EXEMPTION UNDER THE
SOUTH CAROLINA  UNIFORM  SECURITIES  ACT. A REGISTRATION  STATEMENT  RELATING TO
THESE  SECURITIES  HAS  NOT  BEEN  FILED  WITH  THE  SOUTH  CAROLINA  SECURITIES
COMMISSIONER. THE COMMISSIONER DOES NOT RECOMMEND OR ENDORSE THE PURCHASE OF ANY
SECURITIES,  NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF THIS OFFERING
MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

                        NOTICE TO SOUTH DAKOTA RESIDENTS

         THE SHARES HAVE NOT BEEN  REGISTERED  UNDER  CHAPTER 47.31 OF THE SOUTH
DAKOTA SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
FOR VALUE EXCEPT PURSUANT TO REGISTRATION,  EXEMPTION  THEREFROM OR OPERATION OF
LAW.

         SOUTH DAKOTA  RESIDENTS  MUST HAVE EITHER (i) A MINIMUM NET WORTH OF AT
LEAST SIXTY THOUSAND  ($60,000)  DOLLARS  (EXCLUDING  HOME, HOME FURNISHINGS AND
AUTOMOBILES) AND A MINIMUM GROSS INCOME OF SIXTY THOUSAND ($60,000) DOLLARS,  OR
(ii) A NET WORTH OF AT LEAST TWO HUNDRED TWENTY FIVE THOUSAND ($225,000) DOLLARS
(AS COMPUTED ABOVE).

                          NOTICE OF TENNESSEE RESIDENTS

         ANYTHING TO THE CONTRARY NOTWITHSTANDING, AN INVESTMENT BY ANY INVESTOR
SHALL NOT EXCEED TEN (10%) PER CENT OF THE INVESTOR'S NET WORTH.

                            NOTICE OF TEXAS RESIDENTS

         THIS OFFERING MEMORANDUM IS FOR THE INVESTOR'S CONFIDENTIAL USE AND MAY
NOT BE  REPRODUCED.  ANY ACTION  CONTRARY TO THESE  RESTRICTIONS  MAY PLACE SUCH
INVESTOR AND THE ISSUER IN VIOLATION OF THE TEXAS SECURITIES ACT.

         ANYTHING TO THE CONTRARY NOTWITHSTANDING, AN INVESTMENT BY ANY INVESTOR
SHALL NOT EXCEED TEN (10%) PER CENT OF THE INVESTOR'S NET WORTH.

                                       14

<PAGE>

                            NOTICE TO UTAH RESIDENTS

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UTAH SECURITIES ACT
AND MAY NOT NE SOLD WITHOUT REGISTRATION UNDER THAT ACT OR EXEMPTION THEREFROM.

                         NOTICE TO WASHINGTON RESIDENTS

         THESE   SECURITIES  HAVE  NOT  BEEN  REGISTERED  UNDER  THE  WASHINGTON
SECURITIES  ACT AND THE  ADMINISTRATOR  OF SECURITIES OF THE STATE OF WASHINGTON
HAS NOT REVIEWED THE OFFERING OR OFFERING  MEMORANDUM.  THESE SECURITIES MAY NOT
BE SOLD WITHOUT REGISTRATION UNDER THE ACT OR EXEMPTION THEREFROM.

         IT IS THE  RESPONSIBILITY OF ANY INVESTOR  PURCHASING SHARES TO SATISFY
ITSELF AS TO FULL OBSERVANCE OF THE LAWS OF ANY RELEVANT  TERRITORY  OUTSIDE THE
UNITED  STATES IN CONNECTION  WITH ANY SUCH  PURCHASE,  INCLUDING  OBTAINING ANY
REQUIRED  GOVERNMENTAL  OR OTHER  CONSENTS  OR  OBSERVING  ANY OTHER  APPLICABLE
REQUIREMENTS.

                                       15

<PAGE>

 -----------------------------------------------------------------------------

                               OFFERING MEMORANDUM
 -----------------------------------------------------------------------------

                            Mariculture Systems,Inc.
                             (A Florida Corporation)

                     Offering Memorandum Dated July 12, 1996

                                                 1,200,000 Shares

         Mariculture systems, Inc., (the "Company"),  a Florida corporation,  is
offering  on a "best  efforts,  no minimum  basis" up to a maximum of  1,600,000
shares of common stock ("Common  Stock"),  $.001 par value,  at $0.01 per Share.
Since there is no minimum,  no proceeds  will be held in escrow  account and all
funds will be immediately available to the Company.

         The Company  intends to apply for  inclusion of the Common Stock on the
Over the Counter  Electronic  Bulletin Board. There can be no assurances that an
active  trading  market will develop,  even if the  securities  are accepted for
quotation.  Additionally,  even if the  Company's  securities  are  accepted for
quotation and active trading develops, the Company is still required to maintain
certain  minimum  criteria  established  by  NASDAQ,  of which  there  can be no
assurance that the Company will be able to continue to fulfill such criteria.

         Prior to this offering,  there has been no public market for the common
stock of the Company.  The price of the Shares  offered  hereby was  arbitrarily
determined  by the Company and does not bear any  relationship  to the Company's
assets,  book value,  net worth,  results of operations or any other  recognized
criteria of value. For additional  information  regarding the factors considered
in determining  the offering price of the Shares,  see "Risk Factors - Arbitrary
Offering Price," "Description of Securities".

         The Company does not presently file reports or other  information  with
the  Securities  and  Exchange  Commission  ("Commission").  However,  following
completion of this offering, the Company intends to furnish its security holders
with annual reports  containing  audited  financial  statements and such interim
reports,  in each case as it may  determine  to furnish or as may be required by
law.

         THESE   SECURITIES  HAVE  NOT  BEEN  APPROVED  OR  DISAPPROVED  BY  THE
SECURITIES AND EXCHANGE  COMMISSION OR ANY STATE  SECURITIES  COMMISSION NOR HAS
THE COMMISSION OF ANY STATE  SECURITIES  COMMISSION  PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS.  ANY  REPRESENTATION  TO THE CONTRARY IS A CRIMINAL
OFFENSE.

         THE  SECURITIES  ARE  OFFERED BY THE  COMPANY  SUBJECT  TO PRIOR  SALE,
ACCEPTANCE OR AN OFFER TO PURCHASE, WITHDRAWAL,  CANCELLATION OR MODIFICATION OF
THE OFFER,  WITHOUT NOTICE.  THE COMPANY RESERVES THE RIGHT TO REJECT ANY ORDER,
IN WHOLE OR IN PART, FOR THE PURCHASE OF ANY OF THE SECURITIES OFFERED HEREBY.

         This offering  involves special risks concerning the Company (see "Risk
Factors").  Investors should  carefully review the entire  Memorandum and should
not  invest  any funds in this  Offering  unless  they can  afford to lose their
entire  investment.  In making an investment  decision,  investors  must rely on
their own examination of the issuer and the terms of the Offering, including the
merit and risks involved.

                                       16

<PAGE>

                                OFFERING SUMMARY

         The following  summary  information is qualified in its entirety by the
detailed  information  and  financial  statements  and notes  thereto  appearing
elsewhere in this Memorandum.

         The Company is in the business of providing supplies and other products
to the medical  industry.  The company was  incorporated in the State of Florida
and its  principal  executive  office is located at 222 Lakeview  Avenue,  Suite
160--124, West Palm Beach, FL 33401 and its telephone number is (407) 833-5092

                                  RISK FACTORS

         THE SECURITIES OFFERED HEREBY ARE SPECULATIVE AND INVOLVE A HIGH DEGREE
OF RISK. ONLY THOSE PERSONS ABLE TO LOSE THEIR ENTIRE INVESTMENT SHOULD PURCHASE
THESE SECURITIES. PROSPECTIVE INVESTORS, PRIOR TO MAKING AN INVESTMENT DECISION,
SHOULD  CAREFULLY READ THIS  PROSPECTUS  AND CONSIDER,  ALONG WITH OTHER MATTERS
REFERRED TO HEREIN, THE FOLLOWING RISK FACTORS:

Risk Factors Relating to the Business of the Company

         Start-up  or  Development  Stage  Company.   The  Company  has  had  no
operations  since its  organization  and is a "start-up" or "development  stage"
company.  No  assurances  can be given that the Company  will be able to compete
with other  companies in its industry.  The purchase of the  securities  offered
hereby  must be  regarded  as the  placing  of funds at a high  risk in a new or
"start-up"  venture  with all the  unforeseen  costs,  expenses,  problems,  and
difficulties to which such ventures are subject. See "Use of Proceeds to Issuer"
and "Description of Business."

         No Assurance of  Profitability.  To date, the Company has not generated
any revenues from  operations.  The Company does not anticipate any  significant
revenues in the near future. The Company's ability to successfully implement its
business plan is dependent on the completion of this  Offering.  There can be no
assurance  that  the  Company  will be  able to  develop  into a  successful  or
profitable business.

         No Assurance of Payment of Dividends.  No  assurances  can be made that
the future operations of the Company will result in additional  revenues or will
be profitable.  Should the operations of the Company  become  profitable,  it is
likely that the  Company  would  retain much or all of its  earnings in order to
finance future growth and expansion.  Therefore,  the Company does not presently
intend to pay dividends, and it is not likely that any dividends will be paid in
the foreseeable future. See "Dividend Policy."

         Possible Need for  Additional  Financing . The Company  intends to fund
its operations and other capital needs for the next 12 months substantially from
the proceeds of this  Offering,  but there can be no  assurance  that such funds
will be  sufficient  for these  purposes.  The Company  may  require  additional
amounts  of  capital  for its  future  expansion,  operating  costs and  working
capital.  The  Company  has made no  arrangements  to obtain  future  additional
financing,  and if required,  there can be no assurance that such financing will
be available,  or that such financing will be available on acceptable terms. See
"Use of Proceeds."

         Dependence  on  Management.   The  Company's   success  is  principally
dependent on its current management personnel for the operation of its business.

         Broad  Discretion in  Application  of Proceeds . The  management of the
Company has broad discretion to adjust the application and allocation of the net
proceeds  of this  offering,  in  order to  address  changed  circumstances  and
opportunities.  As a result of the foregoing, the success of the Company will be
substantially  dependent  upon the  discretion and judgment of the management of
the Company with respect to the  application  and allocation of the net proceeds
hereof.  Pending use of such proceeds, the net proceeds of this offering will be
invested by the Company in temporary,  short-term interest-bearing  obligations.
See "Use of Proceeds."

         Arbitrary Offering Price. There has been no prior public market for the
Company's  securities.  The price to the public of the Shares offered hereby has
been  arbitrarily  determined  by the Company and bears no  relationship  to the
Company's earnings, book value or any other recognized criteria of value.

                                       17

<PAGE>

         Immediate and Substantial Dilution.  An  investor in this offering will
experience immediate and substantial dilution.

         Lack of Prior Market for Securities of the Company. No prior market has
existed for the  securities  being offered  hereby and no assurance can be given
that a market will develop subsequent to this offering.

         No Escrow of Investors'  Funds.  This offering is being made on a "best
efforts,  no minimum  basis" As such,  all the funds from this  Offering will be
immediately available to the Company.

                                 USE OF PROCEEDS

         The Company  will  receive the  proceeds  from the Offering for working
capital.

                                 DIVIDEND POLICY

         Holders of the Company's  Common Stock are entitled to dividends  when,
as and if  declared by the Board of  Directors  out of funds  legally  available
therefor.  The Company does not  anticipate  the  declaration  or payment of any
dividends in the foreseeable future. The Company intends to retain earnings,  if
any, to finance the development  and expansion of its business.  Future dividend
policy will be subject to the  discretion  of the Board of Directors and will be
contingent  upon future  earnings,  if any, the Company's  financial  condition,
capital requirements,  general business conditions and other factors. Therefore,
there can be no assurance that any dividends of any kind will ever be paid.

                                   THE COMPANY

         The Company was  founded  with the  specific  intent of  producing  and
marketing aquiculture fish production systems.

Management

         Dale  B.  Finfrock,  Jr.,  is  the  Company's  sole  Director,  and its
President and Secretary.

                             EXECUTIVE COMPENSATION

         Since the  Company  was  recently  incorporated,  it has no  historical
information  with respect to executive  compensation.  At the  conclusion of the
Offering, the Company does not intend to compensate its officers for services to
the Company from the  proceeds of this  Offering and will only do so when and if
the Company generates profits.

Compensation of Directors

         Directors  are not paid  fees for their  services  nor  reimbursed  for
expenses of attending board meetings.

                            DESCRIPTION OF SECURITIES

Shares

         The Company is offering hereby a "best efforts, no minimum basis" up to
1,200,000 shares of Common Stock at $.01 per Share.

Common Stock

         The  authorized  capital  stock of the Company  consists of  20,000,000
shares of Common Stock, $.001 par value. Holders of the Common Stock do not have
preemptive  rights  to  purchase  additional  shares  of  Common  Stock or other
subscription  rights.  The Common Stock carries no conversion  rights and is not
subject to  redemption or to any sinking fund  provisions.  All shares of Common
Stock are entitled to share equally in dividends from sources legally  available
therefor  when,  as  and if  declared  by  the  Board  of  Directors  and,  upon
liquidation or dissolution of the Company,

                                       18

<PAGE>

whether voluntary or involuntary,  to share equally in the assets of the Company
available for  distribution to  stockholders.  All outstanding  shares of Common
Stock are validly authorized and issued,  fully paid and nonassessable,  and all
shares to be sold and issued as contemplated  hereby, will be validly authorized
and issued,  fully paid and nonassessable.  The Board of Directors is authorized
to issue additional  shares of Common Stock, not to exceed the amount authorized
by the Company's Certificate of Incorporation,  on such terms and conditions and
for such  consideration  as the  Board  may  deem  appropriate  without  further
stockholder  action.  The above  description  concerning the Common Stock of the
Company  does not purport to be  complete.  Reference  is made to the  Company's
Certificate of Incorporation  and Bylaws which are available for inspection upon
proper notice at the Company's offices, as well as to the applicable statutes of
the State of Florida for a more complete  description  concerning the rights and
liabilities of stockholders.

         Prior to this  offering,  there has been no market for the Common Stock
of the  Company,  and no  predictions  can be made of the effect,  if any,  that
market sales of shares or the  availability  of shares for sale will have on the
market price  prevailing from time to time.  Nevertheless,  sales of significant
amounts of the Common  Stock of the Company in the public  market may  adversely
affect prevailing  market prices,  and may impair the Company's ability to raise
capital at that time through the sale of its equity securities.

         Each  holder of Common  Stock is  entitled to one vote per share on all
matters on which such  stockholders  are  entitled to vote.  Since the shares of
Common Stock do not have cumulative  voting rights,  the holders of more than 50
percent of the shares  voting for the  election of  directors  can elect all the
directors  if they  choose  to do so and,  in such  event,  the  holders  of the
remaining shares will not be able to elect any person to the Board of Directors.

                              PLAN OF DISTRIBUTION

         The Company  has no  underwriter  for this  Offering.  The  Offering is
therefore a self-underwriting.  The Shares will be offered by the Company at the
offering price of $.01 per Share.

Price of the Offering.

         There is no, and never has been, a market for the Shares,  and there is
no  guaranty  that  a  market  will  ever  develop  for  the  Company's  shares.
Consequently, the offering price has been determined by the Company. Among other
factors  considered in such  determination  were estimates of business potential
for the  Company,  the  Company's  financial  condition,  an  assessment  of the
Company's  management and the general  condition of the securities market at the
time of this  Offering.  However,  such  price  does  not  necessarily  bear any
relationship to the assets, income or net worth of the Company.

         The offering price should not be considered an indication of the actual
value of the  Shares.  Such  price is  subject  to  change as a result of market
conditions and other factors,  and no assurance can be given that the Shares can
be resold at the Offering Price.

         There can be no assurance  that an active  trading  market will develop
upon  completion  of this  Offering,  or if such market  develops,  that it will
continue.  Consequently,  purchasers of the Shares offered hereby may not find a
ready market for Shares.

                             ADDITIONAL INFORMATION

         Each investor  warrants and  represents  to the Company that,  prior to
making an investment in the Company,  that he has had the opportunity to inspect
the books and records of the Company and that he has had the opportunity to make
inquiries to the  officers and  directors of the Company and further that he has
been provided full access to such information.

                                       19

<PAGE>

                       INVESTOR SUITABILITY STANDARDS AND
                             INVESTMENT RESTRICTIONS

Suitability

         Shares  will be  offered  and sold  pursuant  an  exemption  under  the
Securities Act, and exemptions  under  applicable  state securities and Blue Sky
laws.  There are different  standards  under these federal and state  exemptions
which must be met by prospective investors in the Company.

         The  Company  will sell Shares only to those  Investors  it  reasonably
believes meet certain suitability requirements described below.

         Each  prospective  Investor  must  complete  a  Confidential  Purchaser
questionnaire  and  each  Purchaser  Representative,  if any,  must  complete  a
Purchaser Representative Questionnaire.

         EACH INVESTOR MUST BE RESPONSIBLE FOR DETERMINING  THAT IT IS PERMITTED
TO INVEST IN THE COMPANY,  THAT ALL  APPROPRIATE  ACTIONS TO  AUTHORIZE  SUCH AN
INVESTMENT HAVE BEEN TAKEN,  AND THAT ANY  REQUIREMENTS  THAT ITS INVESTMENTS BE
DIVERSIFIED OR SUFFICIENTLY LIQUID HAVE BEEN MET.

         An investor will qualify as an  accredited  Investor if it falls within
any one of the  following  categories  at the time of the sale of the  Shares to
that Investor:

         (1) A bank as defined in Section  3(a)(2) of the  Securities  Act, or a
savings  and loan  association  or  other  institution  as  defined  in  Section
3(a)(5)(A) of the Securities Act,  whether acting in its individual or fiduciary
capacity; a broker or dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934;  an insurance  company as defined in Section  2(13) of the
Securities Act; an investment  company  registered under the Investment  Company
Act of 1940 or a business  development company as defined in Section 2(a)(48) of
that Act; a Small  Business  Investment  Company  licensed by the United  States
Small Business  Administration under Section 301(c) or (d) of the Small Business
Investment  Act of 1958;  a plan  established  and  maintained  by a state,  its
political  subdivisions,  or any  agency  or  instrumentality  of a state or its
political subdivisions, for the benefit of its employees, if such plan has total
assets in excess of $5,000,000;  an employee  benefit plan within the meaning of
the Employee  Retirement Income Security Act of 1974, if the investment decision
is made by a plan  fiduciary,  as defined in Section 3(21) of that Act, which is
either a bank, savings and loan association,  insurance  company,  or registered
investment  adviser,  or if the employee benefit plan has total assets in excess
of $5,000,000,  or, if a self-directed  plan with the investment  decisions made
solely by persons that are accredited investors;

         (2) A private business development company as defined in Section 202(a)
(22) of the Investment Advisers Act of 1940;

         (3) An  organization  described  in  Section  501(c)(3) of the Internal
Revenue Code with total assets in excess of $5,000,000;

         (4) A director or executive officer of the Company.

         (5) A natural  person whose  individual  net worth,  or joint net worth
with that person's spouse,  at the time of such person's  purchase of the Shares
exceeds $1,100,000;

         (6) A natural person who had an individual income in excess of $200,000
in each of the two most recent years or joint income with that  person's  spouse
in excess of $300,000 in each of those years and has a reasonable expectation of
reaching the same income level in the current year;

                                       20

<PAGE>

         (7) A trust with total assets in excess of  $5,000,000,  not formed for
the specific  purpose of acquiring the  securities  offered,  whose  purchase is
directed  by a  sophisticated  person  as  describe  in  Rule  506(b)(2)(ii)  of
Regulation D; and

         (8) An  entity  in  which  all  of  the  equity  owners  are accredited
investors (as defined above).

         As used in this  Memorandum,  the term "net worth"  means the excess of
total assets over total  liabilities.  In computing net worth for the purpose of
(5) above,  the  principal  residence  of the  investor  must be valued at cost,
including  cost  of  improvements,   or  at  recently   appraised  value  by  an
institutional lender making a secured loan, net of encumbrances.  In determining
income an  investor  should  add to the  investor's  adjusted  gross  income any
amounts attributable to tax exempt income received,  losses claimed as a limited
partner  in  any  limited   partnership,   deductions   claimed  for  depletion,
contributions  to an IRA or KEOGH  retirement plan,  alimony  payments,  and any
amount by which income form long-term capital gains has been reduced in arriving
at adjusted gross income.

         In order to meet the  conditions  for exemption  from the  registration
requirements under the securities laws of certain  jurisdictions,  investors who
are  residents  of  such   jurisdiction  may  be  required  to  meet  additional
suitability requirements.

         An  Investor  that does not  qualify  as an  accredited  Investor  is a
nonaccredited Investor and may acquire Shares only if:

         (1)  The  Investor  is  knowledgeable  and experienced with respect  to
investments  in  limited  partnerships  either  alone  or   with  its  Purchaser
Representative, if any; and

         (2) The  Investor has been provided access to all relevant documents it
desires or needs; and

         (3) The  Investor  is  aware  of  its  limited  ability  to sell and/or
transfer its Shares in the Company; and

         (4) The  Investor  can bear the economic  risk  (including  loss of the
entire  investment)  without  impairing its ability to provide for its financial
needs and  contingencies  in the same  manner  as it was  prior to  making  such
investment.

         THE COMPANY RESERVES THE RIGHT IN ITS ABSOLUTE  DISCRETION TO DETERMINE
IF A POTENTIAL  INVESTOR  MEETS OR FAILS TO MEET THE  SUITABILITY  STANDARDS SET
FORTH IN THIS SECTION.

Additional Suitability Requirements for Benefit Plan Investors

         In addition to the foregoing suitability standards generally applicable
to all  Investors,  the Employee  Retirement  Income  Security  Act of 1934,  as
amended ("ERISA"),  and the regulations promulgated thereunder by the Department
of Labor impose certain additional  suitability standards for Investors that are
qualified   pension,   profit-sharing   or  stock  bonus  plans  ("Benefit  Plan
Investor"). In considering the purchase of Shares, a fiduciary with respect to a
prospective  Benefit Plan Investor  must  consider  whether an investment in the
Shares will satisfy the prudence  requirement of Section  404(a)(1)(B) of ERISA,
since  there  is not  expected  to be any  market  created  in  which to sell or
otherwise  dispose of the Shares.  In  addition,  the  fiduciary  must  consider
whether the investment in Shares will satisfy the diversification requirement of
Section 404(a)(1)(C) of ERISA.

Restrictions on Transfer or Resale of Shares

         The  Availability  of Federal and state  exemptions and the legality of
the offers and sales of the Shares are conditioned upon, among other things, the
fact that the purchase of Shares by all  Investors are for  investment  purposes
only  and  not  with  a  view  to  resale  or  distribution.  Accordingly,  each
prospective Investor will be required to represent in the Subscription Agreement
that it is  purchasing  the Shares for its own  account  and for the  purpose of
investment  only, not with a view to, or in accordance with, the distribution of
sale of the  Shares and that it will not sell,  pledge,  assign or  transfer  or
offer to sell, pledge, assign or transfer any of its Shares without an effective
registration statement

                                       21

<PAGE>

under the Securities  Act, or an exemption  there from and an opinion of counsel
acceptable  to the Company that  registration  under the  Securities  Act is not
required and that the transaction complies with all other applicable Federal and
state securities or Blue Sky laws.

                                       22

<PAGE>

                            Mariculture Systems, Inc.

                             (A Florida Corporation)

                             Subscription Documents

                                July 12, 1996

                           INSTRUCTION FOR COMPLETION:

     In  connection  with your  subscription  for Mariculture Systems, Inc. (the
"Company"), enclosed herewith are the following documents which must be properly
and fully completed and signed:

     1. INVESTMENT AGREEMENT. Fully completed and signed. Please make your check
payable  to the  Company.  (Note to  partnerships  who wish to  subscribe:  each
general partner of the  partnership  must fully complete and sign the Investment
Agreement).

----------------------------------------------------------------

NOTES TO SUBSCRIBERS:

         (a)  Please indicate on the Subscription Agreement and the Confidential
Purchaser  Questionnaire  how the Units are to be held (e.g.  joint tenants with
rights of survivorship, tenants by the entireties, etc.)

         (b)  Please return  Subscription Documents and checks to the Company at
222 Lakeview Avenue, Suite 160-124,  West Palm Beach, FL 33401. Checks should be
made payable to the Mariculture Systems , Inc.

         (c)  Additional  copies of the required  forms are  available  from the
Company at 222 Lakeview Avenue, Suite 160-124,  West Palm Beach, FL 33401, or by
calling the Company at (407) 833-5092.

                                       23

<PAGE>

                        INVESTMENT SUBSCRIPTION AGREEMENT

To:      Mariculture Systems, Inc.
         222 Lakeview Avenue, Suite 160-124
         West Palm  Beach,  FL 33401

Gentlemen:

         You have  informed  me that  the  Company  is  offering  shares  of the
Company's common stock at a price of $0.01 per share.

         1.   Subscription.   Subject  to  the  terms  and  conditions  of  this
Subscription  Agreement (the  "Agreement"),  the undersigned hereby tenders this
subscription,  together  with the  payment  (in cash or by bank  check in lawful
funds of the United States) of an amount equal to $0.01 per Share, and the other
subscription documents, all in the forms submitted to the undersigned.

         2.   Acceptance  of  Subscription:   Adoption  and  Appointment.  It is
understood and agreed that this Agreement is made subject to the following terms
and conditions:

                  (a) The  Company  shall  have the  right to  accept  or reject
subscriptions  in any  order it shall  determine,  in whole or in part,  for any
reason (or for no reason).

                  (b)  Investments are not binding on the Company until accepted
by the  Company.  The Company  will refuse any  subscription  by giving  written
notice to the purchaser by personal  delivery or  first-class  mail. In its sole
discretion,  the  Company may  establish  a limit on the  purchase of Units by a
particular purchaser.

                  (c) The undersigned  hereby intends that his signature  hereon
shall  constitute an irrevocable  subscription to the Company of this Agreement,
subject to a three day right of  rescission  for Florida  residents  pursuant to
Section  517.061 of the Florida  Securities  and Investor  Protection  Act. Each
Florida  resident  has a right to withdraw  his or her  subscription  for Units,
without any liability whatsoever,  and receive a full refund of all monies paid,
within three days after the execution of this Agreement or payment for the Units
has been made,  whichever is later. To accomplish this withdrawal,  a subscriber
need only send a letter or  telegram  to the Company at the address set forth in
this  Agreement,  indicating  his or her  intention to withdraw.  Such letter or
telegram  should be sent and postmarked  prior to the end of the  aforementioned
third day. It is prudent to send such letter by certified  mail,  return receipt
requested,  to ensure that is received and also to evidence the time when it was
mailed. If the request is made orally (in person or by telephone) to the Company
a written confirmation that the request has been received should be requested.

         Upon satisfaction of the all the conditions referred to herein,  copies
of this  Agreement,  duly  executed by the  Company,  will be  delivered  to the
undersigned.

                                       24

<PAGE>

         3.  Representations and Warranties of the Undersigned.  The undersigned
hereby represents and warrants to the Company as follows:

                  (a) The  undersigned  (I) has adequate  means of providing for
his current needs and possible  personal  contingencies,  and he has no need for
liquidity of his investment in the Company;  (ii) is an Accredited Investor,  as
defined  below,  or has the net worth  sufficient to bear the risk of losing his
entire  investment;  and  (iii)  has,  alone  or  together  with  his  Purchaser
Representative  (as  hereinafter  defined),  such  knowledge  and  experience in
financial  matters that the  undersigned  is capable of evaluating  the relative
risks and merits of this investment.

                        "Accredited Investors" include: (I) accredited investors
as defined in Regulation D under the  Securities  Act of 1933, as amended ("Reg.
D") i.e.,  (a)  $1,000,000  in net worth  (including  spouse) or (b) $200,000 in
annual income for the last two years and  projected  for the current  year;  and
(ii) the Company or affiliates of the Company.

                        "Non-Accredited Investors"  are  all subscribers who are
not "Accredited Investors."

                        All investors must have either a preexisting personal or
business relationship with the Company or any of its affiliates, or by reason of
their business or financial  experience (or the business or financial experience
of their unaffiliated professional advisors) would reasonably be assumed to have
the capacity to protect their own interests in connection with this  investment.
Each  subscriber  must  represent  that he is purchasing for his own account not
with a view to or for resale in connection with any distribution of the Units.

                  (b) The address set forth in his  Purchaser  Questionnaire  is
his true and correct  residence,  and he has no present  intention of becoming a
resident of any other state or jurisdiction.

                  (c)  The  undersigned   acknowledges   that  if  a  "Purchaser
Representative",   as  defined  in  Regulation  D,  has  been  utilized  by  the
undersigned,  (I) the undersigned has completed and executed the  Acknowledgment
of Use of  Purchaser  Representative;  (ii)  in  evaluating  his  investment  as
contemplated   hereby,  the  undersigned  has  been  advised  by  his  Purchaser
Representative  as to the merits and risks of the  investment in general and the
suitability of the investment  for the  undersigned in particular;  and (ii) the
undersigned's Purchaser  Representative has completed and executed the Purchaser
Representative Questionnaire.

                  (d) The undersigned has received and read or reviewed with his
Purchaser  Representative,  if any,  and  represents  he is  familiar  with this
Agreement,  the other  Subscription  Documents and the  Memorandum  accompanying
these documents. The undersigned confirms that all documents,  records and books
pertaining to the investment in the Company and requested by the  undersigned or
his Purchaser  Representative have been made available or have been delivered to
the undersigned and/or the undersigned's Purchaser Representative.

                  (e) The undersigned and/or his Purchaser  Representative  have
had an opportunity to ask questions of and receive answers from the Company or a
person or persons  acting on its behalf,  concerning the terms and conditions of
this  investment  and the financial  condition,  operations and prospects of the
Company.

                                       25

<PAGE>

                  (f) The undersigned  understands  that the Units have not been
registered under the Securities Act of 1933, as amended (the  "Securities  Act")
or any state  securities laws and are instead being offered and sold in reliance
on exemptions from registration; and the undersigned further understands that he
is  purchasing  an interest in a Company  without  being  furnished any offering
literature or prospectus other than the material furnished hereby.

                  (g) The Units for which the undersigned  hereby subscribed are
being acquired  solely for his own account,  and are not being  purchased with a
view to or for  the  resale,  distribution,  subdivision,  or  fractionalization
hereof.  He has no present plans to enter into any such  contract,  undertaking,
agreement or  arrangement.  In order to induce the Company to sell and issue the
Units  subscribed for hereby to the  undersigned,  it is agreed that the Company
will have no obligation to recognize the ownership,  beneficial or otherwise, of
such Units by anyone but the undersigned.

                  (h) The  undersigned  has received,  completed and returned to
the Company the Purchaser  Questionnaire relating to his general ability to bear
the risks of an investment in the Company and his  suitability as an investor in
a private  offering;  and the undersigned  hereby affirms the correctness of his
answers to such  Confidential  Purchaser  Questionnaire and all other written or
oral  information  concerning  the  undersigned's  suitability  provided  to the
Company by, or on behalf of, the undersigned.

                  (I) The person, if any, executing the Purchaser Representative
Questionnaire,  a copy of which has been received by the undersigned,  is acting
and is hereby designated to act as the undersigned's Purchaser Representative in
connection  with the  offer  and  sale of the  Units  to the  undersigned.  This
designation  of a Purchaser  Representative  was made with the  knowledge of the
representations   and   disclosures   made  in  such  Purchaser   Representative
Questionnaire and other Subscription Documents.

                  (j)The undersigned acknowledges and is aware of the following:

                           (I)    That there are substantial restrictions on the
transferability  of the Units and the Units  will not be, and  investors  in the
Company  have no rights to  require  that,  the  Units be  registered  under the
Securities  act; the  undersigned may not be able to avail himself of certain of
the  provisions of Rule 144 adopted by the  Securities  and Exchange  Commission
under  the  Securities  Act  with  respect  to  the  resale  of the  Units  and,
accordingly, the undersigned may be required to hold the Units for a substantial
period of time and it may not be possible for the  undersigned  to liquidate his
investment in the Company.

                  (ii) That no federal or state  agency has made any  finding or
determination  as to the fairness of the offering of Units for investment or any
recommendation or endorsement of the Units.

                                    (1)  The approximate or exact length of time
that he will be required to remain as owner of the Units.

                                    (2) The prior performance on the part of the
Company or any Affiliate (as defined in Rule 405 under the  Securities  Act), or
its  associates,  agents,  or employees or of any other person,  will in any way
indicate the predictable results of the ownership of the Units or of the overall
Company.

                                       26

<PAGE>

                                    (3)   Subscriptions  will be accepted in the
order in which they are received.

                  (iv) That the Company  shall incur  certain costs and expenses
and  undertake  other  actions  in  reliance  upon  the  irrevocability  of  the
subscription  (following the three day rescission  period described in Paragraph
2(C) of this Agreement) for the Units made hereunder.

                  The  foregoing  representations  and  warranties  are true and
accurate  as of the date of  delivery  of the  Funds to the  Company  and  shall
survive such delivery.  If, in any respect,  such representations and warranties
shall not be true and accurate  prior to the  delivery of the Funds  pursuant to
Paragraph 1 hereof,  the  undersigned  shall give written notice of such fact to
his Purchaser  Representative,  if any,  specifying  which  representations  and
warranties  are not true and accurate and the reasons  therefor,  with a copy to
the Company and otherwise to give the same information to the Company directly.

         4.  Indemnification.  The undersigned  acknowledges that he understands
the  meaning  and  legal  consequences  of the  representations  and  warranties
contained in Paragraph 3 hereof,  and he hereby  indemnifies  and holds harmless
the Company,  agents,  employees  and  affiliates,  from and against any and all
losses,  claims, damages or liabilities due to or arising out of a breach of any
representations(s)   or  warranty(s)  of  the  undersigned   contained  in  this
Agreement.

         5.  No Waiver.  Notwithstanding any of the representations, warranties,
acknowledgment  or agreements  made herein by the  undersigned,  the undersigned
does not thereby or in any other  manner  waive any rights  granted to him under
federal or sate securities laws.

         6.  Transferability.  The undersigned  agrees not to transfer or assign
this Agreement, or any of his interest herein. Further, an investor in the Units
pursuant to this Agreement and applicable law, will not be permitted to transfer
or dispose of the Units unless they are registered or unless such transaction is
exempt from  registration  under the Securities Act or other securities laws and
in the case of the purportedly  exempt sale, such investor  provided (at his own
expense) an opinion of counsel reasonably  satisfactory to the Company that such
exemption is, in fact available.

         7.  Revocation.  The  undersigned  acknowledges  and  agrees  that  his
subscription  for the Units made by the execution and delivery of this Agreement
by the  undersigned  is  irrevocable  and  subject  to the  three  day  right of
rescission  in  Florida  described  in  Section  2(C)  herein,   and  that  such
subscription shall survive the death or disability of the undersigned, except as
provided  pursuant  to the blue sky laws of the states in which the Units may be
offered, or any other applicable state statutes or regulations.

         8.       Miscellaneous.

                  (a)  All  notices  or  other   communications  given  or  made
hereunder  shall be in writing and shall be delivered or mailed by registered or
certified mail, return receipt requested, postage prepaid, to the undersigned at
his address set forth below and to

                  (b)  Notwithstanding  the place  where this  Agreement  may be
executed by any of the parties hereto,  the parties expressly agree that all the
terms and provisions  hereof shall be construed in accordance  with and shall be
govern by the laws of the State of Florida.

                                       27

<PAGE>

                  (c) This Agreement  constitutes the entire agreement among the
parties hereto with respect to the subject matter hereof any may be amended only
by writing executed by all parties.

                  (d) This Agreement  shall be binding upon the heirs,  estates,
legal representatives, successors and assigns of all parties hereto.

                  (e) All terms  used  herein  shall be deemed  to  include  the
masculine  and the  feminine  and the  singular  and the  plural as the  context
requires.

                                       28

<PAGE>

                            Mariculture Systems, INC. .
                      SUBSCRIPTION AGREEMENT SIGNATURE PAGE

Accredited                          |_|
Non Accredited                      |_|

Number of Shares Subscribed for:

Amount tendered at $0.01 per Share:

Date:    __________________________

 ----------------------------           -----------------------------
(Signature of Subscriber)               (Signature of Spouse, or joint
                                        tenant, if any)

-----------------------------           -----------------------------
(Printed Name of Subscriber)            (Printed Name of Spouse, or
                                        other joint tenant, if any)

-----------------------------           -----------------------------
(Address)                               (Address)

-----------------------------           ----------------------------

-----------------------------           ----------------------------
(Social Security Number)                (Social Security Number)

                                       29EXHIBIT 4.3

                                 PROMISSORY NOTE

$10,000.00                                                     January 30, 1997.

For value received,  the undersigned  MariCulture Systems, Inc. (the "Promisor")
promises to pay to the order of William Evans,  (the "Payee") at 17007 35th Ave.
SE,  Bothell,  Washington  98012,  (or at such  other  place  as the  Payee  may
designate in writing) the principal sum of $ 10,000.00  without grace, in lawful
money of the United  States,  which will bear simple  interest  from January 31,
1997, on the unpaid principal at the rate of ten percent (10.00%) per annum. All
principal and interest shall be due and payable in two  installments.  The first
installment  of  $5,000.00 is due on March 30, 1997 and the balance due on April
30, 1997. Not withstanding the foregoing, Promisor agrees to pay fifteen percent
(15%) of all  monies  raised  until  this note is repaid in full.  In  addition,
Promisor  shall have the right to prepay all or any  portion of this Note at any
time and from time to time without premium or penalty.  All prepayments shall be
applied first to accrued  interest and the balance of such payment shall then be
applied to principal.

                               PENALTY FOR DEFAULT

Promisor  agrees that any payment is in default  after ten (10) days notice from
payee after the due date, and in the event of such default in payments as herein
agreed,  the  Promisor  promises  to pay  all  costs  of  collection,  including
reasonable  attorney fees,  whether or not a lawsuit is commenced as part of the
collection process.

If any  one or  more  of the  provisions  of  this  Note  are  determined  to be
unenforceable,  in whole or in part,  for any reason,  the remaining  provisions
shall remain fully operative.

Promisor  waives  presentment  for payment,  protest,  and notice of protest and
nonpayment of this Note.

No renewal or extension of this Note,  delay in enforcing any right of the Payee
under this Note,  or assignment by Payee of this Note shall affect the liability
of the Promisor.  All rights of the Payee under this Note are cumulative and may
be exercised concurrently or consecutively at the Payee's option.

This  Note  shall be  construed  in  accordance  with  the laws of the  State of
Washington.

Signed this 30th day of January, 1997, at Lynnwood, Washington.

First Promisor
MariCulture Systems, Inc.

By:      /s/ David E. Meilahn
         --------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]