Document:

Exhibit # 10.13

                      Sample Option Agreement - consultants

<PAGE>

                                 1999 STOCK PLAN

                             STOCK OPTION AGREEMENT

Unless  otherwise  defined  herein,  the terms defined in the Plan  (attached as
Exhibit "B") shall have the same defined meanings in this Option Agreement.

III.     NOTICE OF STOCK OPTION GRANT

                  James Healey
                  2435 Coates Street
                  Dubuque, IA  52003

         You have been granted an option to purchase Class A Common Stock of the
Company,  subject  to the  terms  and  conditions  of the Plan  and this  Option
Agreement as follows:

         Grant Number                                         99-N00001

         Date of Grant                                        10/1/99

         Vesting Commencement Date          See Vesting Schedule below

         Exercise Price per Share                    See Vesting Schedule below

         Total Number of Shares Granted              50,000

         Type of Option                              Nonstatutory Stock Option

         Term/Expiration Date                       See Vesting Schedule below

     A. Vesting  Schedule.  This Option may be exercised in accordance  with the
following  terms which are based on the Optionee's  following  performance as an
Agent for the Company:
<TABLE>
<CAPTION>

             UPON COMPANY'S MONTHLY                       NUMBER OF
          BILLING TO AGENT'S CUSTOMERS     EXERCISE     SHARES WHICH        EXPIRATION
OPTION    FIRST REACHING THIS LEVEL      PRICE       CAN BE PURCHASED            DATE
------    -------------------------      -----       ----------------            ----

<S>          <C>                          <C>          <C>                     <C>
    A        $100,000                     $1.00        10,000                  10/1/04

    B        $200,000                     $2.00        10,000                  10/1/05

    C        $300,000                     $3.00        10,000                  10/1/06

    D        $400,000                     $4.00        10,000                  10/1/07

    E        $500,000                     $5.00        10,000                  10/1/08
</TABLE>

         B.  Termination  Period.  Those  Options  which reach the above defined
Levels and have not reached their  respective  Expiration Date, may be exercised
for ninety (90) days after Optionee ceases to be an Agent (Service Provider) for
the Company;  or upon the death or Disability  of the Optionee,  for one hundred
eighty (180) days after Optionee  ceases to be an Agent  (Service  Provider) for
the  Company.  In no event  shall  these  Options  be  exercised  later than the
applicable Expiration Date as provided above.

IV.      AGREEMENT

C. Grant of Option.  The Plan  Administrator of the Company hereby grants to the
Optionee  named in the Notice of Grant attached as Part I of this Agreement (the
"Optionee")  an option (the  "Option") to purchase the number of Shares,  as set
forth in the Notice of Grant,  at the  exercise  price(s) per Share set forth in
the Notice of Grant (the "Exercise Price"),  subject to the terms and conditions
of the  Plan  (attached  as  Exhibit  "B"),  which  is  incorporated  herein  by
reference.  Subject to Section 7 of the Plan, in the event of a conflict between
the terms and conditions of the Plan and the terms and conditions of this Option
Agreement, the terms and conditions of the Plan shall prevail.

                  If  designated  in the Notice of Grant as an  Incentive  Stock
Option ("ISO"),  this Option is intended to qualify as an Incentive Stock Option
under  Section  422 of the Code.  However,  if this  Option is intended to be an
Incentive Stock Option,  to the extent that it exceeds the $100,000 rule of Code
Section 422(d) it shall be treated as a Nonstatutory Stock Option ("NSO").

D.       Exercise of Option.

9. Right to Exercise.  This Option is exercisable  during its term in accordance
with the Vesting  Schedule  set forth in the Notice of Grant and the  applicable
provisions of the Plan and this Stock Agreement.

10. Method of Exercise.  This Option is  exercisable  by delivery of an exercise
notice, in the form attached as Exhibit "A" (the "Exercise Notice"), which shall
state the  election to exercise  the Option,  the number of Shares in respect to
which  Option  is being  exercised  (the  "Exercised  Shares"),  and such  other
representations and agreements as may be required by the Company pursuant to the
provisions of the Plan.  The Exercise  Notice shall be completed by the Optionee
and  delivered to the  Secretary of the  Company.  The Exercise  Notice shall be
accompanied  by  payment of the  aggregate  Exercise  Price as to all  Exercised
Shares.  This  Option  shall be deemed to be  exercised  upon the receipt by the
Company of such fully  executed  Exercise  Notice  accompanied by such aggregate
Exercise Price.

                           No Shares shall be issued pursuant to the exercise of
this Option unless such issuance and exercise
complies with Applicable Laws. Assuming such compliance, for income tax purposes
the Exercised Shares shall be considered transferred to the Optionee on the date
the Option is exercised with respect to such Exercised Shares.

11. Method of Payment.  Payment of the aggregate  Exercise Price shall be by any
of the following, or a combination thereof, at the election of the Optionee:

(e)      cash;

(f)      check;

(g)  consideration  received by the Company  under a cashless  exercise  program
implemented by the Company in connection with the Plan; or

(h)  surrender  of other Shares  which (i) in the case of Shares  acquired  upon
exercise  of an option,  have been owned by the  Optionee  for more than six (6)
months on the date of  surrender,  and (ii) have a Fair Market Value on the date
of surrender equal to the aggregate Exercise Price of the Exercised Shares.

12.  Non-Transferability  of Option.  This Option may not be  transferred in any
manner  otherwise than by will or by the laws of descent or distribution and may
be exercised during the lifetime of Optionee only by the Optionee.

13. Term of Option. This Option may be exercised only within the term(s) set out
in the  Notice  of Grant,  and may be  exercised  during  such  term(s)  only in
accordance with the Plan and the terms of this Option Agreement.

14. Tax  Consequences.  Some of the  federal tax  consequences  relating to this
Option,  as of the date of this  Option,  are set forth  below.  THIS SUMMARY IS
NECESSARILY INCOMPLETE,  AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
THE  OPTIONEE  SHOULD  CONSULT A TAX ADVISOR  BEFORE  EXERCISING  THIS OPTION OF
DISPOSING OF THE SHARES.

(d)      Exercising the Option.

(3) Nonstatutory Stock Option. The Optionee may incur regular federal income tax
liability  upon  exercise  of an NSO.  The  Optionee  will be  treated as having
received compensation income (taxable at ordinary income tax rates) equal to the
excess,  if any, of the Fair Market Value of the Exercised Shares on the date of
exercise over their aggregate  Exercise Price. If the Optionee is an Employee or
a former  Employee,  the Company  will be  required to withhold  from his or her
compensation  or  collect  from  Optionee  and  pay  to  the  applicable  taxing
authorities an amount in cash equal to a percentage of this compensation  income
at the time of  exercise,  and may  refuse to honor the  exercise  and refuse to
deliver Shares if such withholding amounts are not delivered at the same
time of
exercise.

(4)  Incentive  Stock Option.  If this Option  qualifies as an ISO, the Optionee
will have no regular  federal income tax liability  upon its exercise,  although
the excess,  if any, of the Fair Market Value of the Exercise Shares on the date
of exercise over the aggregate  Exercise  Price will be treated as an adjustment
to alternative  minimum  taxable income for federal tax purposes and may subject
the Optionee to  alternative  minimum tax in the year of exercise.  In the event
that the Optionee ceases to be an Employee but remains a Service  Provider,  any
Incentive Stock Option of the Optionee that remains  unexercised  shall cease to
qualify as an  Incentive  Stock Option and will be treated for tax purposes as a
Nonstatutory Stock Option in the date three (3) months and one (1) day following
such change of status.

(e)      Disposition of Shares.

(3) NSO.  If the  Optionee  holds NSO  Shares  for at least  one year,  any gain
realized on disposition of the Shares will be treated as long-term  capital gain
for federal  income tax purposes.  (4) ISO. If the Optionee holds ISO Shares for
at least one year after  exercise  and two years after the grant date,  any gain
realized on disposition of the Shares will be treated as long-term  capital gain
for federal income tax purposes.  If the Optionee  disposes of ISO Shares within
one year after  exercise or two years after the grant date, any gain realized on
such  disposition  will be treated as  compensation  income (taxable at ordinary
income  rates) to the  extent of the  excess,  if any,  of the lesser of (a) the
difference  between the Fair Market Value of the Shares  acquired on the date of
exercise and the aggregate  Exercise  Price,  or (b) the difference  between the
sale price of such Shares and the aggregate  Exercise Price. Any additional gain
will be taxed as capital gain,  short-term or long-term  depending on the period
that the ISO Shares were held.

(f) Notice of Disqualifying  Disposition of ISO Shares. If the Optionee sells or
otherwise disposes of any of the Shares acquired pursuant to an ISO on or before
the later of (i) two years  after the  grant  date,  or (ii) one year  after the
exercise date, the Optionee shall  immediately  notify the Company in writing of
such  disposition.  The Optionee  agrees that he or she may be subject to income
tax withholding by the Company on the compensation  income  recognized from such
early  disposition  of ISO  Shares  by  payment  in cash  or out of the  current
earnings paid to the Optionee.

15.  Entire  Agreement  Governing  Law.  The  Plan  is  incorporated  herein  by
reference. The Plan and this Option Agreement constitute the entire agreement of
the parties with  respect to the subject  matter  hereof and  supersede in their
entirety all prior  undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof,  and may not be modified  adversely to the
Optionee's  interest  except by means of a writing  signed  by the  Company  and
Optionee.  This Agreement is governed by the internal  substantive laws, but not
the choice of law rules, of California.

16. No Guarantee of Continued Service. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES  PURSUANT  TO THE  VESTING  SCHEDULE  HEREOF IS EARNED ONLY BY
CONTINUING AS A SERVICE PROVIDER OR EMPLOYEE, AS THE CASE MAY BE, AT THE WILL OF
THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED,  BEING GRANTED AN OPTION OR
PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT, THE TRANSACTIONS  CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET
FORTH  HEREIN DO NOT  CONSTITUTE  AN  EXPRESS OR  IMPLIED  PROMISE OF  CONTINUED
ENGAGEMENT  AS A SERVIE  PROVIDER OR EMPLOYEE  FOR THE VESTING  PERIOD,  FOR ANY
PERIOD,  OR AT ALL,  AND  SHALL  NOT  INTERFERE  WITH  OPTIONEE'S  RIGHT  OR THE
COMPANY'S RIGHT TO TERMINATE  OPTIONEE'S  RELATIONSHIP AS A SERVICE  PROVIDER OR
EMPLOYEE AT ANY TIME, WITH OR WITHOUT CAUSE.

By your signature and the signature of the Company's  representative  below, you
and the  Company  agree that this  Option is granted  under and  governed by the
terms  and  conditions  of the Plan  and this  Option  Agreement.  Optionee  has
reviewed  the Plan and  this  Option  Agreement  in their  entirety,  has had an
opportunity  to obtain the  advice of counsel  prior to  executing  this  Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding,  conclusive and final all decisions
or  interpretations of the Administrator upon any questions relating to the Plan
and Option  Agreement.  Optionee  further  agrees to notify the Company upon any
change in the residence address and telephone numbers indicated below.

         OPTIONEE:                                COMPETITIVE COMPANIES, INC.

         ------------------------------     ------------------------------
         Signature                                            Signature

         ______________________________     Larry A. Halstead
         Print Name                    Corporate Secretary & Plan Administrator
                                            3751 Merced Drive, Suite A
         ______________________________     Riverside, CA  92503
         Address                                     (909) 687-6100

         ------------------------------
         City                           State     Zip

         (------)-----------------------
         Telephone Number

<PAGE>

                                                                       EXHIBIT A

                                                                EXERCISE NOTICE

TO:      COMPETITIVE COMPANIES, INC.
         Attn: Stock Plan Administrator
         3751 Merced Drive, Suite A
         Riverside, CA  92503

FROM:  ______________________________

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

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

As of ___________________ (Date) and in accordance with the terms of Stock
Option Grant Number

________ I hereby elect to exercise such Option to the extent delineated below:

6.       OPTION NUMBER:                                       __________

7.       NUMBER OF SHARES BEING EXERCISED:                    __________

8.       EXERCISE PRICE PER SHARE (PER OPTION NUMBER):        $__________

9.       AGGREGATE PRICE OF SHARES (#2 X #3, above)           $__________

10.      PAYMENT METHOD:

                  _____ Cash Amount:                          $__________

                  _____  Check Amount:                        $__________

                  _____ Other per Plan (describe below): $__________

                  _____  Surrender of Other Shares (Fair Market Value):
                                                              $----------
                           (Executed Certificate(s) #____,____,____ attached)

                                    TOTAL (must equal #4 total above):

                                                              $----------

Other Plan Payment Method:_____________________________________________________

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

Amount of Payment Enclosed: $__________________

Signed:____________________________ Date:_____________________

Enclosure(s)-

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

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

<PAGE>Exhibit # 10.14

                  Subscription Agreement - Common Stock

<PAGE>

                                    EXHIBIT C

                             SUBSCRIPTION AGREEMENT

                                  (IRREVOCABLE)

<PAGE>

                             SUBSCRIPTION AGREEMENT

                                  (IRREVOCABLE)

Competitive Companies, Inc.
Attn: Chief Executive Officer

        1.  General.  Pursuant  to the  terms of the offer  made by  Competitive
Companies,  Inc. (the "Company") contained in the Company's Confidential Private
Offering  Memorandum  dated  August 1, 1998,  (said  Memorandum,  including  the
exhibits and attachments  thereto,  being hereinafter  called the "Memorandum"),
the undersigned hereby tenders this subscription and applies for the purchase of
the number of shares  (the  "Shares")  set forth on the  signature  page of this
Agreement, of the Company's common stock, par value $.001 per share (the "Common
Stock"),  at a  purchase  price of $1.00 per Share  with a minimum  purchase  of
20,000 Shares ($20,000).  (Fractional  Shares may be purchased at the discretion
of the Company.)

Terms not defined herein are defined in the Memorandum.

        2.  Representations  and  Warranties.  In order to induce the Company to
accept this subscription, the undersigned hereby represents and warrants to, and
covenants with, the Company (and others) as follows:

                 (i) The  undersigned  has received and  carefully  reviewed the
Memorandum,  and  except  for the  Memorandum,  the  undersigned  has  not  been
furnished with any other materials or literature  relating to the offer and sale
of the Securities,  and the undersigned  agrees this subscription is irrevocable
with the  purchase  price being  non-refundable  except as  otherwise  expressly
stated in the Memorandum;

                 (ii) The  undersigned  has had a reasonable  opportunity to ask
questions of and receive answers from the Company concerning the Company and the
offering to which the Memorandum relates,  and all such questions,  if any, have
been answered to the full satisfaction of the undersigned;

                 (iii) The  undersigned  has such  knowledge  and  expertise  in
financial  and  business  matters  such  that  the  undersigned  is  capable  of
evaluating the merits and risks involved in an investment in the Shares;

                 (iv) The Confidential  Purchaser  Questionnaire being delivered
by the undersigned to the Company simultaneously  herewith is true, complete and
correct in all  material  respects;  and the  undersigned  understands  that the
Company has determined  that the exemption from the  registration  provisions of
the  Securities  Act of 1933,  as  amended  (the  "Act"),  which  is based  upon
non-public offerings are applicable to the offer and sale of the Shares,  based,
in  part,  upon  the  representations,  warranties  and  agreements  made by the
undersigned herein and in the Confidential  Purchaser  Questionnaire referred to
above;

                  (v) Except as set forth in the Memorandum,  no representations
or  warranties  have been made to the  undersigned  by the Company or any agent,
employee or affiliate of the Company and in entering into this  transaction  the
undersigned  is not relying upon any  information,  other than that contained in
the Memorandum and the results of independent investigation by the undersigned;

                 (vi) The undersigned  understands  that (a) the Shares have not
been registered under the Act or the securities laws of any state, based upon an
exemption from such registration  requirements for non-public offerings pursuant
to Regulation D under the Act; (b) the Shares may be "restricted  securities" as
said term is defined in Rule 144 of the Rules and Regulations  promulgated under
the Act;  (c) the Shares may not be sold or  otherwise  transferred  unless they
have been first  registered  under the Act and all applicable  state  securities
laws, or unless exemptions from such registration  provisions are available with
respect  to  said  resale  or  transfer;  (d)  other  than as set  forth  in the
Memorandum,  the Company is under no obligation to register the Shares under the
Act or any state  securities  laws, or to take action to make any exemption from
any such registration provisions available;  (e) the certificates for the Shares
may bear a legend to the effect that the transfer of the securities  represented
thereby is subject to the provisions hereof; and (f) stop transfer  instructions
may be placed on the Shares;

<PAGE>

                 (vii) The  undersigned  is acquiring  the Shares solely for the
account of the  undersigned,  for investment  purposes only, and not with a view
towards the resale or distribution thereof;

                 (viii) The undersigned will not sell or otherwise  transfer any
of the Shares, or any interest  therein,  unless and until (a) said Shares shall
have first been  registered  under the Act and all applicable  state  securities
laws; or (b) the undersigned shall have first delivered to the Company a written
opinion of counsel  (which  counsel and opinion in form and  substance  shall be
reasonably satisfactory to the Company), to the effect that the proposed sale or
transfer  is  exempt  from  the  registration  provisions  of the  Act  and  all
applicable state securities laws;

                 (ix) The  undersigned  has full power and  authority to execute
and deliver this  Subscription  Agreement and to perform the  obligations of the
undersigned  hereunder;  and this  Subscription  Agreement is a legally  binding
obligation of the undersigned in accordance with its terms;

                 (x)  The   undersigned   is,  if  applicable,   an  "accredited
investor",  as such term is defined in Regulation D of the Rules and Regulations
promulgated  under  the  Act  and as set  forth  in the  Confidential  Purchaser
Questionnaire;

                 (xi)  The  undersigned  understands  and  acknowledges  that no
Selling  Agent makes any  representations  or  warranties  as to the accuracy or
completeness of the information contained in the Memorandum; and

                 (xii) The undersigned has carefully reviewed the jurisdictional
notices listed below and agrees to abide by any restrictions  contained  therein
applicable to the undersigned.

        Any  foreign   subscriber  shall  be  deemed  to  agree  by  making  the
subscription hereunder to be fully responsible and liable to undertake all steps
necessary  for the  Offering  and the  Company  to be  fully  registered  in the
jurisdiction/country of the subscriber.

<PAGE>

                             JURISDICTIONAL NOTICES

For Residents of All States

         THE  SECURITIES  OFFERED  HEREBY  HAVE NOT BEEN  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND ARE
BEING  OFFERED  AND  SOLD IN  RELIANCE  UPON  EXEMPTION  FROM  THE  REGISTRATION
REQUIREMENTS  OF  SAID  ACT  AND  SUCH  LAWS.  THE  SECURITIES  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.  INVESTORS  SHOULD BE AWARE THAT THEY WILL BE  REQUIRED TO
BEAR THE FINANCIAL  RISKS OF THIS  INVESTMENT FOR AN INDEFINITE  PERIOD OF TIME.
THE  SECURITIES  OFFERED  HEREBY HAVE NOT BEEN  APPROVED OR  DISAPPROVED  BY THE
SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY 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
MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Legend

         THE  PRESENCE  OF A LEGEND  FOR ANY GIVEN  STATE  REFLECTS  ONLY THAT A
LEGEND MAY BE  REQUIRED  BY THAT STATE AND  SHOULD NOT BE  CONSTRUED  TO MEAN AN
OFFER  OR SALE  MAY BE MADE IN ANY  PARTICULAR  STATE.  THIS  MEMORANDUM  MAY BE
SUPPLEMENTED BY ADDITIONAL STATE LEGENDS WITHOUT NOTICE. IF YOU ARE UNCERTAIN AS
TO WHETHER OR NOT OFFERS OR SALES MAY BE LAWFULLY  MADE IN ANY GIVEN STATE,  YOU
ARE ADVISED TO SPEAK WITH YOUR OWN LEGAL COUNSEL.

Rescission

         ONE OR MORE STATES MAY REQUIRE AN INVESTOR BE PROVIDED WITH A STATUTORY
RIGHT TO RESCISSION,  AS IN THE CASE OF FLORIDA.  IT IS THE DETERMINATION OF THE
COMPANY TO,  NEVERTHELESS,  ALSO  VOLUNTARILY  TO OFFER A RIGHT OF RESCISSION TO
EACH INVESTOR.  THEREFORE,  ANY INVESTOR MAY WITHDRAW HIS SUBSCRIPTION AGREEMENT
AND RECEIVE A FULL REFUND OF ALL MONIES PAID , WITHIN THREE  BUSINESS DAYS AFTER
THE DATE  CONSIDERATION  FOR SUCH  SECURITY  IS  DELIVERED  TO THE ESCROW  AGENT
IDENTIFIED  HEREIN.  ANY  INVESTOR  THAT  PURCHASES  SECURITIES  IS  ENTITLED TO
EXERCISE  THE  FOREGOING  RESCISSION  RIGHT BY  TELEGRAM  OR  LETTER  NOTICE  TO
COMPETITIVE  COMPANIES,   INC.,  11731  STERLING  AVENUE,  SUITE  F,  RIVERSIDE,
CALIFORNIA  92503.  ANY TELEGRAM OR LETTER SHOULD BE SENT OR POSTMARKED PRIOR TO
THE END OF THE THIRD BUSINESS DAY. A LETTER SHOULD BE MAILED BY CERTIFIED  MAIL,
RETURN  RECEIPT  REQUESTED,  TO ENSURE ITS RECEIPT  AND TO EVIDENCE  THE TIME OF
MAILING.  TO THE EXTENT ANY OTHER  RESCISSION RIGHT APPLIES UNDER LAW, AS IN THE
CASE OF FLORIDA RESIDENTS,  SUCH RESCISSION RIGHT SHALL CONTROL TO THE EXTENT OF
ANY CONFLICT WITH THIS PARAGRAPH.

NASSAA Uniform Legend

         IN  MAKING  AN  INVESTMENT  DECISION  INVESTORS  MUST RELY ON THEIR OWN
EXAMINATION  OF THE PERSON OR ENTITY  CREATING THE  SECURITIES  AND THE TERMS OF
THIS OFFERING,  INCLUDING THE MERITS AND RISKS INVOLVED.  THESE  SECURITIES HAVE
NOT BEEN  RECOMMENDED BY FEDERAL OR STATE  SECURITIES  COMMISSIONS OR REGULATORY
AUTHORITIES.  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.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY  AND  RESALE  AND MAY NOT BE  TRANSFERRED  OR  RESOLD  EXCEPT AS
PERMITTED  UNDER THE SECURITIES  ACT, 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.

Blue Sky Notices

         IT IS ANTICIPATED  THAT THE SECURITIES  DESCRIBED HEREIN MAY BE OFFERED
FOR SALE IN SEVERAL STATES. THE SECURITIES BLUE SKY LAWS OF SOME OF THOSE STATES
REQUIRE THAT CERTAIN  CONDITIONS  AND  RESTRICTIONS  RELATING TO THE OFFERING BE
DISCLOSED.

California Residents

         THE  SECURITIES  OFFERED  HEREBY  HAVE  NOT  BEEN  QUALIFIED  WITH  THE
CALIFORNIA  DEPARTMENT  OF  CORPORATIONS  NOR HAS THE  CALIFORNIA  DEPARTMENT OF
CORPORATIONS  PASSED  UPON THE  ADEQUACY OR  ACCURACY  OF THIS  MEMORANDUM.  ANY
REPRESENTATION   TO  THE  CONTRARY  IS  A  CRIMINAL   OFFENSE.   THE  CALIFORNIA
COMMISSIONER OF CORPORATIONS DOES NOT RECOMMEND OR ENDORSE THE PURCHASE OF THESE
SECURITIES.

Colorado Residents

         THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF
1933, AS AMENDED,  OR THE COLORADO SECURITIES ACT OF 1981, BY REASON OF SPECIFIC
EXEMPTIONS  THEREUNDER  RELATING TO THE LIMITED  AVAILABILITY  OF THE  OFFERING.
THESE SECURITIES CANNOT BE SOLD,  TRANSFERRED,  OR OTHERWISE  DISPOSED OF TO ANY
PERSON OR ENTITY UNLESS THEY ARE  SUBSEQUENTLY  REGISTERED OR AN EXEMPTION  FROM
REGISTRATION IS AVAILABLE.

Connecticut Residents

         THE  SECURITIES  REFERRED  TO  HEREIN  WILL  BE  SOLD  PURSUANT  TO THE
EXEMPTION SET OUT IN SECTION  36490(B)(9) OF THE CONNECTICUT  UNIFORM SECURITIES
ACT.  THE  SHARES  HAVE  NOT BEEN  REGISTERED  UNDER  SAID  ACT IN THE  STATE OF
CONNECTICUT.  THE SHARES CANNOT BE SOLD OR  TRANSFERRED  EXCEPT IN A TRANSACTION
WHICH IS EXEMPT  UNDER SUCH ACT OR PURSUANT TO AN EFFECTIVE  REGISTRATION  UNDER
SUCH  ACT.  THESE  SECURITIES  HAVE  NOT BEEN  APPROVED  OR  DISAPPROVED  BY THE
CONNECTICUT  BANKING  COMMISSIONER  NOR HAS THE  COMMISSIONER  PASSED  UPON  THE
ACCURACY OR ADEQUACY OF THIS  OFFERING.  ANY  REPRESENTATION  TO THE CONTRARY IS
UNLAWFUL.

Florida Residents

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE FLORIDA  SECURITIES
ACT IN RELIANCE UPON EXEMPTION PROVISIONS CONTAINED THEREIN. SECTION 517.061(11)
OF THE  FLORIDA  SECURITIES  ACT  (THE  "FLORIDA  ACT")  THAT ANY  PURCHASER  OF
SECURITIES  IN  FLORIDA  WHICH ARE  EXEMPTED  FROM  REGISTRATION  UNDER  SECTION
517.061(11)  OF THE FLORIDA ACT MAY  WITHDRAW  HIS  SUBSCRIPTION  AGREEMENT  AND
RECEIVE A FULL REFUND OF ALL MONIES PAID,  WITHIN THREE  BUSINESS DAYS AFTER THE
LATER OF (1) THE DATE HE TENDERS  CONSIDERATION  FOR SUCH SECURITIES AND (2) THE
DATE THIS STATUTORY RIGHT OF RESCISSION IS COMMUNICATED TO HIM. ANY RESIDENT WHO
PURCHASES  SECURITIES IS ENTITLED TO EXERCISE THE FOREGOING STATUTORY RESCISSION
RIGHT BY  TELEGRAM  OR  LETTER  NOTICE TO  COMPETITIVE  COMPANIES,  INC.,  11731
STERLING AVENUE,  SUITE F, RIVERSIDE,  CALIFORNIA  92503. ANY TELEGRAM OR LETTER
SHOULD BE SENT OR  POSTMARKED  PRIOR TO THE END OF THE  THIRD  BUSINESS  DAY.  A
LETTER SHOULD BE MAILED BY CERTIFIED MAIL, RETURN RECEIPT  REQUESTED,  TO ENSURE
ITS RECEIPT AND TO EVIDENCE THE TIME OF MAILING.

Illinois Residents

         THESE  SECURlTIES  HAVE  NOT BEEN  REGISTERED  UNDER  SECTION  5 OF THE
ILLINOIS  SECURITIES ACT OF 1953. THE SECURITIES MAY NOT BE RESOLD,  TRANSFERRED
OR OTHERWISE DISPOSED OF TO ANY PERSON OR ENTITY UNLESS SUBSEQUENTLY  REGISTERED
UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

Michigan Residents

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE MICHIGAN SECURITIES
ACT AND ARE OFFERED AND SOLD PURSUANT TO AN EXEMPTION THEREFROM.  THE SECURITIES
CANNOT BE SOLD OR TRANSFERRED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER SUCH
ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION UNDER SUCH ACT.

Missouri Residents

         THESE  SECURITIES HAVE NOT BEEN REGISTERED UNDER 'THE SECURITIES ACT OF
1933, AS AMENDED,  OR THE MISSOURI UNIFORM SECURITIES ACT, BY REASON OF SPECIFIC
EXEMPTIONS  THEREUNDER  RELATING TO THE LIMITED  AVAILABILITY  OF THE  OFFERING.
THESE SECURITIES CANNOT BE SOLD,  TRANSFERRED,  OR OTHERWISE  DISPOSED OF TO ANY
PERSON OR ENTITY UNLESS THEY ARE  SUBSEQUENTLY  REGISTERED OR AN EXEMPTION  FROM
REGISTRATION IS AVAILABLE.

Nebraska Residents

         THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF
1933,  AS AMENDED,  OR THE  SECURITIES  ACT OF  NEBRASKA,  BY REASON OF SPECIFIC
EXEMPTIONS  THEREUNDER  RELATING TO THE LIMITED  AVAILABILITY  OF THE  OFFERING.
THESE SECURITIES CANNOT BE SOLD,  TRANSFERRED,  OR OTHERWISE  DISPOSED OF TO ANY
PERSON OR ENTITY UNLESS THEY ARE  SUBSEQUENTLY  REGISTERED OR AN EXEMPTION  FROM
REGISTRATION IS AVAILABLE.

Nevada Residents

         THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE NEVADA SECURITIES ACT, BY REASON OF SPECIFIC EXEMPTIONS
THEREUNDER  RELATING  TO  THE  LIMITED  AVAILABILITY  OF  THE  OFFERING.   THESE
SECURITIES CANNOT BE SOLD,  TRANSFERRED,  OR OTHERWISE DISPOSED OF TO ANY PERSON
OR  ENTITY  UNLESS  THEY  ARE  SUBSEQUENTLY  REGISTERED  OR  AN  EXEMPTION  FROM
REGISTRATION IS AVAILABLE.

New Jersey Residents

         THESE   SECURITIES  ARE  OFFERED  IN  RELIANCE  ON  AN  EXEMPTION  FROM
REGISTRATION  UNDER  THE NEW  JERSEY  UNIFORM  SECURITIES  LAW AND HAVE NOT BEEN
REGISTERED  UNDER SAID LAW. THEY MAY NOT BE RE-OFFERED FOR SALE,  TRANSFERRED OR
RESOLD WITHOUT  COMPLIANCE  WITH THE  REGISTRATION  PROVISIONS OF SAID LAW OR AN
EXEMPTION THEREFROM.  THE BUREAU OF SECURITIES OF NEW JERSEY HAS NOT PASSED UPON
THE  ACCURACY OR  COMPLETENESS  OF THIS  MEMORANDUM  AND DOES NOT  RECOMMEND  OR
ENDORSE THE PURCHASE OF THE SHARES.

New Mexico Residents

         THESE   SECURITIES  HAVE  NOT  BEEN  APPROVED  OR  DISAPPROVED  BY  THE
SECURITIES BUREAU OF THE NEW MEXICO DEPARTMENT OF REGULATION AND LICENSING,  NOR
HAS  THE  SECURITIES  BUREAU  PASSED  UPON  THE  ACCURACY  OR  ADEQUACY  OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

New York Residents

         THIS  MEMORANDUM  HAS NOT BEEN FILED WITH OR  REVIEWED  BY THE NEW YORK
ATTORNEY  GENERAL  PRIOR TO ITS ISSUANCE  AND USE. THE ATTORNEY  GENERAL HAS NOT
PASSED ON NOR ENDORSED THE MERITS OF THIS OFFERING.  ANY  REPRESENTATION  TO THE
CONTRARY  IS  UNLAWFUL.  ALL  DOCUMENTS,  RECORDS AND BOOKS  PERTAINING  TO THIS
INVESTMENT  WILL BE MADE  AVAILABLE FOR INSPECTION BY EACH NEW YORK INVESTOR AND
HIS  OR  HER  ATTORNEY  OR HIS  OR  HER  ACCOUNTANT  OR  HIS  OR  HER  PURCHASER
REPRESENTATIVE,  AND THE BOOKS AND RECORDS OF THE ISSUER WILL BE AVAILABLE, UPON
REASONABLE  NOTICE,  FOR  INSPECTION  BY  INVESTOR  AT  REASONABLE  HOURS AT ITS
PRINCIPAL PLACE OF BUSINESS.

Pennsylvania Residents

         EACH SUBSCRIBER WHO IS A PENNSYLVANIA  RESIDENT HAS THE RIGHT TO CANCEL
AND  WITHDRAW  HIS  SUBSCRIPTION  AND HIS  PURCHASE OF SHARES  THEREUNDER,  UPON
WRITTEN  NOTICE TO THE COMPANY  GIVEN WITHIN TWO  BUSINESS  DAYS  FOLLOWING  THE
RECEIPT BY THE COMPANY OF HIS  EXECUTED  SUBSCRIPTION  AGREEMENT.  ANY NOTICE OF
CANCELLATION OR WITHDRAWAL SHOULD BE MADE BY TELEGRAM OR CERTIFIED OR REGISTERED
MAIL AND WILL BE  EFFECTIVE  UPON  DELIVERY  TO WESTERN  UNION OR DEPOSIT IN THE
UNITED  STATES  MAIL,  POSTAGE  OR OTHER  TRANSMITTAL  FEES  PREPAID.  UPON SUCH
CANCELLATION OR WITHDRAWAL, THE SUBSCRIBER WILL HAVE NO OBLIGATION OR DUTY UNDER
THE  SUBSCRIPTION  AGREEMENT  TO THE  COMPANY  OR ANY OTHER  PERSON  AND WILL BE
ENTITLED TO THE FULL RETURN OF ANY AMOUNT PAID BY HIM, WITHOUT INTEREST.

     NEITHER THE PENNSYLVANIA  SECURITIES COMMISSION NOR ANY OTHER AGENCY PASSED
ON OR ENDORSED THE MERITS OF THIS  OFFERING.  REPRESENTATION  TO THE CONTRARY IS
UNLAWFUL.  SUBSCRIBERS  MAY NOT SELL THEIR  SHARES FOR ONE YEAR FROM THE DATE OF
PURCHASE  IF  SUCH A SALE  WOULD  VIOLATE  SECTION  203(D)  OF THE  PENNSYLVANIA
SECURITIES ACT.

Utah Residents

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UTAH SECURITIES ACT
AND ARE OFFERED AND SOLD  PURSUANT TO AN  EXEMPTION  THEREFROM.  THE  SECURITIES
CANNOT BE SOLD OR TRANSFERRED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER SUCH
ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION UNDER SUCH ACT.

The undersigned has executed this Subscription Agreement this
day of                      , 199

<PAGE>

                                                  SIGNATURE PAGE

Organization Signature:                            Individual Signature:

BY:

                                                    Signature(s)

Print Name & Title of Person                       Print Name(s)
Signing

                                                   Print Name(s)

Number of Shares Subscribed for:

                      (All       Subscribers  should  please  print  information
                                 below  exactly as they wish it to appear in the
                                 records of the Company.)

                                       Social Security Number of Individual or
                                         Other Taxpayer I.D. Number

                                                            Address:

                                Number and Street

                  City                     State             Zip Code

Please check the box to indicate the form of ownership (if applicable):

             TENANTS-IN-COMMON                   JOINT TENANTS WITH RIGHT OF
        (Both parties must sign above)              SURVIVORSHIP
                                               (Both parties must sign above)

                                                  TENANTS BY THE ENTIRETIES
                                                (Both parties must sign above)

<PAGE>

                           ACCEPTANCE OF SUBSCRIPTION

                                            Competitive Companies, Inc.

     The  foregoing  subscription  is  hereby  accepted  this day of , 199 , for
Shares.

                          Competitive Companies, Inc.,

                                                   BY:

                          ITS: Chief Executive Officer

<PAGE>

85

<PAGE>

129

                                    EXHIBIT D

                      CONFIDENTIAL PURCHASER QUESTIONNAIRE

                                  (INDIVIDUAL)

<PAGE>

                     Competitive Companies Inc. ("COMPANY")

              CONFIDENTIAL PURCHASER QUESTIONNAIRE FOR INDIVIDUALS

Purpose of this Questionnaire

        Subject to  adjustment,  the Company is offering up to 950,000 Shares of
the common stock, par value $.001 per share (the "Common Stock"), of Competitive
Companies,  Inc., pursuant to a Confidential  Private Offering Memorandum of the
Company  dated August 1, 1998, at a purchase  price of $1.00 per Share  (minimum
purchase 20,000 Shares---$20,000)  without registration under the Securities Act
of 1933,  as amended  (the  "Act"),  or the  securities  laws of any  state,  in
reliance on the private  offering  exemptions  contained in Sections 3(b),  4(2)
and/or  4(6)  of the  Act  and/or  in  Regulation  D of the  General  Rules  and
Regulations under the Act and in reliance on similar exemptions under applicable
state  laws.  The  Company  must  determine  that an  individual  meets  certain
suitability requirements before selling (or, in some states, offering) Shares to
such individual.  This  Questionnaire  does not constitute an offer to sell or a
solicitation of an offer to buy Shares or any other security.

1.      Name and Address.  Please provide the following personal information:

Name
Age

Residence
Address:

(including Zip Code)

Business
Address

(including Zip Code)

Telephone:      Res.:   (                     )
                Bus.:   (                     )

Preferred Mailing Address:       Residence                 Business

2.  Accredited  Investor  Status.  Please  answer  Question  2  by  marking  the
appropriate item below. As indicated below,  Question 3 need only be answered if
all of the answers to Question 2 are "No".

                (i) Did your  individual  annual  income during each of the last
two years  exceed  $200,000  and do you expect  your  annual  income  during the
current year to exceed $200,000,  or did your joint annual income (together with
your spouse) during each of the last two years exceed $300,000 and do you expect
your joint annual income during the current year to exceed $300,000?

                                             Yes              No

                (ii) If the answer to the  preceding  question was no, does your
individual or joint (together with your spouse) net worth exceed $300,000?

                                             Yes              No

                (iii) If your answer to Question  2(i) and 2(ii) was no, are you
an executive officer or director of the Company?

                                             Yes              No

3. Citizenship. If you are not a citizen of the United States of America, please
indicate your citizenship:

4.      Investor Suitability Information.

Occupation                                                        or
Profession:

Nature                                                            of
Business:

Name                                                              of
Employer:

Address:
                                    (Street)

   (City)            (State)                                     (Zip Code)

Current Position or Title:

Period                                              Employed:

Do you have  sufficient  knowledge  and  experience  in  financial  and business
matters so as to be capable of evaluating the merits and risks  associated  with
investing in the Company?

                                                                     -----
                          Yes                                 No

Please briefly describe the basis of your knowledge and experience:

5. By signing this Questionnaire, I hereby confirm the following statements:

        (a) I am aware that the offering of Securities comprising the Shares may
involve  "restricted  securities",  as said term is  defined  in Rule 144 of the
Rules and Regulations  promulgated under the Act, and that they, or any interest
therein  may not be sold or  otherwise  transferred  unless they have first been
registered  under the Act and all applicable state securities laws, or unless an
exemption  from such  registration  provisions is available  with respect to any
such resale or transfer.

        (b) I acknowledge that any delivery to me of offering materials relating
to the Shares prior to the  determination by the Company of my suitability as an
investor shall not constitute an offer of the Shares until such determination of
suitability shall be made, and I agree that I shall promptly return the offering
materials to the Company upon request.

        (c) My answers to the  foregoing  questions are true and complete to the
best of my information and belief, and I will promptly notify the Company of any
changes in the information I have provided.

                                  Printed Name

                                                            Signature

                                                            Date

<PAGE>

                                    EXHIBIT E

                      CONFIDENTIAL PURCHASER QUESTIONNAIRE

                                 (ORGANIZATION)

<PAGE>

                     Competitive Companies, Inc. ("COMPANY")

             CONFIDENTIAL PURCHASER QUESTIONNAIRE FOR ORGANIZATIONS

Purpose of this Questionnaire

        Subject to  adjustment,  the Company is offering up to 950,000 Shares of
the common stock, par value $.001 per share (the "Common Stock"), of Competitive
Companies,  Inc., pursuant to a Confidential  Private Offering Memorandum of the
Company  dated August 1, 1998, at a purchase  price of $1.00 per Share  (minimum
purchase 20,000 Shares---$20,000)  without registration under the Securities Act
of 1933,  as amended  (the  "Act"),  or the  securities  laws of any  state,  in
reliance on the private  offering  exemptions  contained in Sections 3(b),  4(2)
and/or  4(6)  of the  Act  and/or  in  Regulation  D of the  General  Rules  and
Regulations  under  the  Act,  and  in  reliance  on  similar  exemptions  under
applicable  state laws. The Company must determine  that an  organization  meets
certain suitability  requirements before selling (or, in some states,  offering)
Shares to such entity.  This  Questionnaire does not constitute an offer to sell
or a solicitation of an offer to buy Shares or any other security.

1.      Name and Address.  Please print or type the following information about
the organization:

Name of
Organization:

Address    of  Principal
Office:
(including Zip Code)

Telephone     No.:                (                )
Fax           No.:                (               )

Type of Organization (e.g.,  corporation,  trust, limited  partnership,  general
partnership):

2. Information Regarding Principals.  Please provide the name, address, position
or title,  age and  citizenship  of the  executive  officer,  trustee or general
partner  authorized  to act with  respect  to  investments  by the  Organization
generally.

                                          Position

Name          Address                     or Title         Age     Citizenship

3. Business Description. Please describe the business of the Organization.:

4.  Authority.   Please  provide  the  following   information   concerning  the
Organization's  authority to subscribe  for the purchase of Shares:  Indicate by
check mark whether  permission or  authorization  from any person other than the
person  listed  in the  answer  to  Question  2 is  necessary  in order  for the
Organization to effect the purchase of the Shares.

                                             Yes              No

5.  Accredited  Investor  Status.  Please  answer  Question  5.1 by marking  the
appropriate box below. As indicated  below,  Questions 5.2, 5.3, 5.4 and 5.5, if
applicable, need only be answered if answer to 5.1 is "No".

        5.1 Does the organization qualify as (a) any of the types of entities as
defined in Rule 501(a)(1) of Regulation D pursuant to the rules and  regulations
of the Securities and Exchange  Commission,  (b) a private business  development
company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940,
or (c) an organization  described in Section  501(c)(3) of the Internal  Revenue
Code,  corporation,  Massachusetts or similar business trust, or partnership not
formed for the specific purpose of acquiring the securities offered hereby, with
total assets in excess of $300,000?

                                             Yes              No

                       IF YOU ANSWER "YES" TO QUESTION 5.1, PLEASE PROCEED TO
                                                 QUESTION 7 BELOW

         5.2 If the  Questionnaire is answered on behalf of a corporation,  does
each  shareholder  either (a) have an  individual  or joint  (together  with his
spouse) net worth in excess of $300,000,  or (b) expect to have an annual income
during this year,  and represent that he had an annual income during each of the
last two  years,  in excess of  $200,000  (or joint  annual  income in excess of
$300,000)?

                                             Yes              No

         5.3 If the  Questionnaire  is answered on behalf of a trust,  does each
beneficiary  of the trust either (a) have an individual or joint  (together with
his  spouse)  net worth in excess of  $300,000  or (b)  expect to have an annual
income during this year,  and represent that he had an annual income during each
of the last two years,  in excess of $200,000 (or joint annual  income in excess
of $300,000)?

                                             Yes              No

         5.4 If the  Questionnaire  is answered  on behalf of a trust,  does the
trust have total  assets in excess of $300,000  and was the trust not formed for
the specific purpose of acquiring the securities offered hereby,  whose purchase
is directed by a "sophisticated person" as described in Question 6?

                                             Yes              No

         5.5 If the  Questionnaire is answered on behalf of a partnership,  does
each  partner  (including  general  and  limited  partners)  either  (a) have an
individual or joint  (together  with his spouse) net worth in excess of $300,000
or (b) expect to have an annual income during this year,  and represent  that he
had an annual  income  during each of the last two years,  in excess of $200,000
(or joint annual income in excess of $300,000)?

                                             Yes              No

<PAGE>

          IF YOU ANSWER "YES" TO ANY OF QUESTIONS 5.1, 5.2, 5.3 OR 5.5,
                  PLEASE PROCEED TO QUESTION 7. HOWEVER, IF YOU
        ANSWER "YES" TO QUESTION 5.4, YOU MUST ANSWER ALL OF QUESTION 6.

6.       Sophistication of Decision-Maker.

         6.1 Please  list all the  educational  institutions  you have  attended
(including  colleges,  and specialized  training schools) and indicate the dates
attended and the degree(s) (if any) obtained from each.

>From - To                       Institution                       Degree

         6.2 Please provide the following  information  concerning your business
experience:

         Describe,  your present or most recent  business or occupation.  Please
indicate  such  information  as the  nature of your  employment,  the  principal
business or your employer,  the principal  activities  under your  management or
supervision  and the scope (e.g.,  dollar volume,  industry rank,  etc.) of such
activities.

7. By signing this Questionnaire,  the undersigned hereby confirms the following
statements:

         (a) I (We) am (are) aware that the proposed  offering of the Shares may
involve  "restricted  securities",  as said term is  defined  in Rule 144 of the
Rules and Regulations  promulgated under the Act, and that they, or any interest
therein  may not be sold or  otherwise  transferred  unless they have first been
registered  under the Act and all applicable state securities laws, or unless an
exemption  from such  registration  provisions is available  with respect to any
such resale or transfer.

         (b) I (We) acknowledge on behalf of the  Organization  named below that
any delivery to such Organization of offering  materials  relating to the Shares
prior to the determination by the Company of the suitability of the Organization
as an  investor  shall  not  constitute  an  offer  of  the  Shares  until  such
determination  of  suitability  shall be made,  and that the offering  materials
shall be returned promptly to the Company upon request.

         (c) The  foregoing  statements  are true and accurate to the best of my
(our)  information  and belief and the Company will be notified  promptly of any
changes in the foregoing answers.

                               Print Name of Organization

                                By:
                                Signature of Officer, Trustee or  Partner
                                 Date:
<PAGE>

                           COMPETITIVE COMPANIES, INC

                       Supplement dated December 11, 1998

                                       To

                 Private Placement Memorandum dated August 1, 1998

Due to potential  delays in filing a Registration  Statement to raise additional
funds which would be caused by a Rule 504  Offering,  please be advised that all
shares of Common Stock sold by the Company under the  Memorandum  have been sold
and are being sold under Rule 506, and thus are Restricted Securities under Rule
144 of the Securities Act of 1933, as amended.

LIMITED LIQUIDITY.

The  shares of Common  Stock  sold in this  Offering  as well as those  owned by
Affiliates are deemed "restricted  securities" as that term is defined under the
Securities Act, and in the future may be sold under Rule 144. Rule 144 provides,
in essence,  that a person holding restricted securities for a period of one (1)
year may sell every three (3) months,  in brokerage  transactions  and/or market
maker  transactions,  an amount  equal to the greater of (a) one percent (1%) of
the Corporation's issued and outstanding Common Stock or (b) the average weekly*
trading  volume of the Common Stock during the four (4) calendar  weeks prior to
such sale.  Rule 144 also  permits,  under  certain  circumstances,  the sale of
shares  without any quantity  limitation  by a person who is not an affiliate of
the Corporation and who has satisfied a two (2) year holding period.

However, to address this problem,  the Company will grant all purchasers in this
Offering  at no  additional  cost  Registration  Rights  pursuant  to which  the
Investors  will be allowed to sell their stock along with the Company when,  and
if,  the  Company  sells  stock  for  the  first  time  in an IPO  under  an SEC
Registration Statement.  Investors will be subject to the same conditions as the
Company in selling under such Registration  Statement,  including the Prospectus
delivery  requirements.  The Company will provide all  necessary  Prospectus  to
selling Brokers and Investors to meet this requirement.

Prior to this offering,  there has been no public market for the Common Stock of
the  Corporation;  and no  prediction  can be made as to when, if ever, a public
market for the  Common  Stock will  develop.  If a public  market for the Common
Stock  does  develop  at a future  time,  sales of  shares  by  shareholders  of
substantial  amounts of Common  Stock of the  Corporation  in the public  market
could  adversely  affect  the  prevailing  market  price  and could  impair  the
Corporation's  future  ability to raise  capital  through the sale of its equity
securities.

POSSIBLE FUTURE ISSUANCE OF ADDITIONAL SHARES BY THE CORPORATION.

The  Corporation's   Articles  of  Incorporation   authorizes  the  issuance  of
50,000,000 shares of Common Stock. Upon the sale of the maximum number of shares
offered hereby,  approximately 37% of the Corporation's  authorized Common Stock
may remain unissued. The Corporation's Board of Directors has the power to issue
substantial  additional shares and the right to determine the voting,  dividend,
conversion, liquidation,  preferences and other conditions of the shares without
Shareholder  approval.  Management  presently  anticipates that it may choose to
issue such shares to acquire  business  interests  or other types of property in
the future.

<PAGE>

 relating to the market for penny stocks, in connection with trades in any stock
 defined as a penny stock. The SEC has adopted regulations that generally define
 a penny stock to be any equity  security  that has a market  price of less than
 $5.00 per share, subject to certain exceptions. Under such rule, broker/dealers
 who recommend such securities to persons other than  established  customers and
 accredited investors must make a special written suitability  determination for
 the purchaser and receive the  purchaser's  written  agreement to a transaction
 prior to sale.

 The Company's Common Stock will fall within the  definitional  scope of a penny
 stock, and as such, the market liquidity for the Company's  securities could be
 severely  affected.  The regulations on penny stocks could limit the ability of
 broker/dealers  to sell  the  Company's  securities  and thus  the  ability  of
 purchasers  of  the  Company's  securities  to  sell  their  securities  in the
 secondary market, if such a market ever exists.

 THE FOREGOING RISK FACTORS DO. NOT PURPORT TO BE A COMPLETE  EXPLANATION OF ALL
 THE RISKS  INVOLVED  IN THIS  OFFERING.  POTENTIAL  INVESTORS  SHOULD READ THIS
 ENTIRE  PRIVATE  PLACEMENT  MEMORANDUM  BEFORE  DETERMINING  TO  INVEST  IN THE
 COMPANY,  SHOULD BE FAMILIAR WITH THE COMPANY'S BUSINESS IN GENERAL, AND SHOULD
 CONSULT  THEIR  OWN  LEGAL,  FINANCIAL  AND TAX  ADVISORS  WITH  RESPECT  TO AN
 INVESTMENT IN THE COMPANY.

 Based upon the foregoing, I elect to continue my investment in the Offering.

Signed:

Name:

Date:

<PAGE>

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