Document:

EXHIBIT 4.1
Offering Memorandum                                                 Confidential
Dated February 27, 1997

                              Smart Industries,Inc.
                             (A Florida Corporation)

                                1,600, 000 Shares

                          At a Price of $.01 Per Share

     Smart Industries,  Inc., a Nevada corporation (the "Company"), is a company
which is in he motivational training business.

         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 INABILITY TO QUALIFY The SHARES
FOR SECONDARY TRADING WILL CREATE

<PAGE>

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-                   $ 16,000

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

                             Smart Industries, Inc.
                               222 Lakeview Avenue
                                  Suite 160-124
                            West Palm Beach, FL 33401
                                 (561) 833-5092

<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.

<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.

<PAGE>

         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
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).

<PAGE>

         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 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

<PAGE>

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.

         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.

<PAGE>

                           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 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.

<PAGE>

         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.

                              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

<PAGE>

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.

                           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

<PAGE>

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.

         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.

<PAGE>

                            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.

                           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

<PAGE>

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  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)

<PAGE>

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  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.

<PAGE>

                           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.

                            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.

<PAGE>

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

                             Smart Industries, Inc.
                             (A Nevada Corporation)

                   Offering Memorandum Dated February 27, 1997

                                1,600,000 Shares

         Smart  Industries,  Inc.  (the  "Company"),  a Nevada  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.

<PAGE>

         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.

     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  motivational  training  and
consulting  services to businesses,  schools and government  organizations.  The
company  was  incorporated  in the State of Nevada and its  principal  executive
office is located at 222 Lakeview  Avenue,  Suite 160--124,  West Palm Beach, FL
33401 and its telephone number is (561) 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  did not  have any
operations  before 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.

<PAGE>

     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.

     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.

<PAGE>

     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  is  in  the  business  providing  motivational  training  and
consulting  services to  business,  schools  and  government  organizations.  In
addition,  the company is negotiating with other companies in the communications
field with the intent of acquiring all of the shares or assets of one or more of
these   companies.   However,   if  the  company  is  unable  to  complete   the
acquisition/acquisitions  it will continue to operate its existing  business and
expand its activities through internal growth.

     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
1,600,000 shares of Common Stock at $.01 per Share.

<PAGE>

     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, 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.

<PAGE>

     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.

<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;

<PAGE>

     (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;

     (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.

<PAGE>

     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 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.

<PAGE>

                             Smart Industries, Inc.

                             (A Nevada Corporation)

                             Subscription Documents

                                February 27, 1997

                           INSTRUCTION FOR COMPLETION:

     In  connection  with  your  subscription  for  Smart  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 P.O.
Box 669,  Palm  Beach,  FL 33480.  Checks  should be made  payable  to the Smart
Industries, Inc.

     (c) Additional  copies of the required forms are available from the Company
at P.O.  Box 669,  Palm  Beach,  FL 33480,  or by calling  the  Company at (561)
833-5092.

<PAGE>

                        INVESTMENT SUBSCRIPTION AGREEMENT

To:      Smart Industries, Inc
         P.O. Box 669
         Palm Beach, FL 33480

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.

<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.

<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

<PAGE>

or of any other person,  will in any way indicate the predictable results of the
ownership of the Units or of the overall Company.

     (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

<PAGE>

     (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.

     (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.

                                      44

<PAGE>

                             SMART INDUSTRIES, 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)EXHIBIT 4.2

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

                          LL Brown International, Inc.
                             (A Nevada Corporation)

                    Offering Memorandum Dated April 21, 1998

                                 500,000 Shares

     LL Brown International, Inc., a Nevada corporation, f/k/a Smart Industries,
Inc., (the "Company"), is offering on a "best efforts, no minimum basis" up to a
maximum of 500,000 shares of common stock ("Shares"),  $.001 par value, at $1.00
per share.  Since  there is no minimum,  no  proceeds  will be held in an escrow
account and all funds will be immediately available to the Company.

         The Shares are being sold by the  Company's  Officers and Directors and
no commissions  will be paid to them in connection  with the Offering.  However,
participating NASD registered broker/dealers, if any, shall receive a maximum of
10% sales commissions on all shares sold through their efforts.

         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.

         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".

         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

<PAGE>

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.

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.

                               REGULATION D OFFERING

         THIS  OFFERING  IS BEING MADE  PURSUANT TO THE  EXEMPTIONS  AFFORDED BY
SECTIONS  4(2) OR 3(b) OF  SECURITIES  ACT OF 1933 AND RULE 504 OF  REGULATION D
PROMULGATED   THEREUNDER  AND  STATE  SMALL  CORPORATE   OFFERING   REGISTRATION
PROVISION.  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 INABILITY TO
QUALIFY THE SHARES FOR SECONDARY TRADING WILL CREATE SUBSTANTIAL RESTRICTIONS ON
THE TRANSFERABILITY OF SUCH SHARES WHICH MAY NEGATE THE BENEFIT OF THE EXEMPTION
PROVIDED BY RULE 504 OF  REGULATION  D. 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.

                      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

<PAGE>

COMPLETENESS OF THIS OFFERING MEMORANDUM.  ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.

         ANYTHING TO THE CONTRARY HEREIN  NOTWITHSTANDING,  THE INVESTMENT OF AN
ALABAMA PURCHASER WHO IS NOT AN ACCREDITED  INVESTOR MAY NOT EXCEED TWENTY (20%)
PERCENT  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

     SUBJECT TO THE PROVISIONS OF ARIZONA  ADMINISTRATIVE CODE R14-4-140,  THESE
SECURITIES MAY BE OFFERED AND SOLD BY THE ISSUER ONLY TO ACCREDITED INVESTORS AS
DEFINED IN ARIZONA  ADMINISTRATIVE CODE R14-4-126 AND MAY BE RE-OFFERED AND SOLD
WITHIN  ARIZONA  FOR A THREE YEAR  PERIOD ONLY TO  ACCREDITED  INVESTORS.  THESE
SECURITIES  HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR THE ARIZONA CORPORATION COMMISSION,  NOR HAVE THEY PASSED UPON THE
MERITS  OF OR  OTHERWISE  APPROVED  THIS  OFFERING.  ANY  REPRESENTATION  TO THE
CONTRARY IS A CRIMINAL OFFENSE.

     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%)  PERCENT 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

<PAGE>

INTEREST THEREIN,  OR TO RECEIVE ANY  CONSIDERATION  THEREFORE WITHOUT THE 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  APPROVED  OR  DISAPPROVED  BY THE BANKING
COMMISSIONER  OF THE STATE OF CONNECTICUT NOR HAS THE  COMMISSIONER  PASSED UPON
THE ACCURACY OR ADEQUACY OF THE OFFERING.  ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.

     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.

<PAGE>

     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 IDAHO  SECURITIES ACT
AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT REGISTRATION OR EXEMPTION THEREFROM.

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

     NOTICE TO INDIANA RESIDENTS

     EACH INVESTOR  PURCHASING  SHARES MUST WARRANT THAT HE HAS EITHER (i) A NET
WORTH (EXCLUSIVE OF HOME, HOME  FURNISHINGS AND  AUTOMOBILES)  EQUAL TO AT LEAST
THREE  (3)  TIMES  THE  AMOUNT  OF HIS  INVESTMENT  BUT IN NO  EVENT  LESS  THAN
SEVENTY-FIVE  THOUSAND ($75,000) DOLLARS OR (ii) A NET WORTH (EXCLUSIVE OF HOME,
HOME FURNISHINGS AND AUTOMOBILES OF TWO (2) TIMES HIS INVESTMENT BUT IN NO 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 FORTY THOUSAND
($40,000)  DOLLARS  [EXCLUDING  HOME, HOME  FURNISHINGS AND  AUTOMOBILES]  AND A
MINIMUM ANNUAL GROSS INCOME OF FORTY 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 AN  NON-ACCREDITED  INVESTOR SHALL NOT EXCEED TWENTY (20%)
PERCENT 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

<PAGE>

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%) PERCENT OF THE  INVESTOR'S NET
WORTH.

<PAGE>

     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 10520(2)(R) OF
TITLE  32 OF  THE  MAINE  REVISED  STATUTES.  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.

     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  TAX 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 STATEMENTS 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 FOR VALUE
EXCEPT PURSUANT TO REGISTRATION OR OPERATION OF LAW.

<PAGE>

     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,  NOR HAS APPROVED OR
DISAPPROVED THE OFFERING. THE SECRETARY OF STATE DOES NOT RECOMMEND THE PURCHASE
OF THESE OR ANY OTHER SECURITIES.

     THERE IS NO  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 BEEN 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  NOT  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  ($30,000)  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%)
PERCENT OF THE INVESTOR'S NET WORTH.

     NOTICE TO MONTANA RESIDENTS

<PAGE>

     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%) PERCENT OF THE INVESTORS NET
WORTH.

     NOTICE TO NEBRASKA RESIDENTS

     THESE SHARES HAVE NOT BEEN REGISTERED UNDER THE NEBRASKA SECURITIES ACT AND
MAY NOT BE SOLD WITHOUT REGISTRATION UNDER THAT 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,  FURNISHINGS AND AUTOMOBILES) OF TWO
HUNDRED  FIFTY  THOUSAND  ($250,000)  DOLLARS OR (ii) A NET WORTH  (EXCLUSIVE OF
HOME, FURNISHING 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 OR ENDORSED THE MERITS OF
THIS OFFERING. THE FILING OF THE WITHIN OFFERING DOES NOT 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
COMMISSIONER 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 UNLAWFUL.

     NOTICE TO NEW YORK RESIDENTS

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

<PAGE>

     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 THAT 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  ADMINISTRATION
NEITHER  RECOMMENDS  NOR  ENDORSES  THE  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

     THE 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-ACCREDITED
INVESTOR SHALL NOT EXCEED TEN (10%) PERCENT OF THE INVESTORS NET WORTH.

     NOTICE TO OREGON RESIDENTS

     THE SECURITIES  OFFERED HAVE NOT 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  DOCUMENT  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  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

<PAGE>

CONSIDERATION  PAID,  WITHOUT  INCURRING ANY LIABILITY,  WITHIN TWO (2) 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 GIVE  NOTICE  BY  LETTER  OR  TELEGRAM  SENT AND
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  FURNISHINGS  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 ABOVE], AND MAY NOT INVEST MORE THAN TEN (10%) PERCENT 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  DEPOSED 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 TO TENNESSEE RESIDENTS

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

     NOTICE TO TEXAS RESIDENTS

<PAGE>

     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%) PERCENT OF THE INVESTOR'S NET WORTH.

     NOTICE TO UTAH RESIDENTS

     THESE  SECURITIES  HAVE NOT BEEN  REGISTERED  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 BEEN
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 FULLY 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.

     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.

                              OFFERING SUMMARY

     The  following  summary  information  is  qualified  in its entirety by the
detailed information appearing elsewhere in this Memorandum.

<PAGE>

     LL Brown  International,  Inc. is an educational  corporation  that designs
curriculum and programs which teach people how to make positive changes in their
lives.

     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

         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 ln
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 and another contemplated 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 formal  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

                                    58

<PAGE>

the Company and bears no relationship to the Company's  earnings,  book value or
any other recognized criteria of value.

     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.

         No Assurance of Acquisition While it is the Company's intent to acquire
either  all of the  shares or  assets of other  industry  related  companies  in
addition to expanding its own operations, there is no assurance that the Company
will be able to achieve this goal.  That event could cause a materially  adverse
affect on the future of the Company.

         Forward-Looking  Statements This Memorandum  includes  "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All
statements,  other than statements of historical facts, included or incorporated
by reference in this Memorandum which address activities, events or developments
which the  Company  expects  or  anticipates  will or may  occur in the  future,
including such things as capital  expenditures  (including the amount and nature
thereof),  expected  sales  revenues,  expansion  and  growth  of the  Company's
business and operations, and other such matters are forward-looking  statements.
These  statements  are based on certain  assumptions  and  analyses  made by the
Company in light of its  experience  and its  perception of  historical  trends,
current conditions and expected future  developments as well as other factors it
believes  are  appropriate  under the  circumstances.  However,  whether  actual
results and  developments  will  conform  with the  Company's  expectations  and
predictions  is subject to a number of risks and  uncertainties,  including  the
risk factors discussed in this Memorandum,  general economic, market or business
conditions,  the business  opportunities (or lack thereof) that may be presented
to and  pursued  by the  Company,  changes  in laws or  regulations,  and  other
factors, some of which are beyond the control of the Company.  Consequently, all
of the forward-looking statements made in this Memorandum are qualified by these
cautionary  statements  and there can be no assurance that the actual results or
developments   anticipated   by  the  Company  will  be  realized  or,  even  if
substantially  realized,  that they will have the  expected  consequences  to or
effects on the Company or its  business or  operations.  The Company  assumes no
obligation to update any such forward-looking statements.

                                THE COMPANY

     LL Brown International,  Inc., a Nevada corporation,  and its subsidiary LL
Brown &  Associates,  Inc.,  a  Washington  corporation  owned  100% by LL Brown
International  Inc.  (both  hereinafter  referred  to as  the  "Company")  is an
educational  corporation that designs curriculum and programs which teach people
how to make positive changes in their lives.

     The   Company's   seminar  and  training   materials  are  widely  used  by
corporations,  nonprofit organizations,  universities,  welfare agencies, school
districts and youth service agencies. Using

<PAGE>

proven techniques in self-imaging  psychology and mind/brain research applied to
everyday  work  situations,  LL Brown helps people and  organizations  to master
transition,  make better  decisions  and  improve the quality of their  thinking
skills.    Individuals    are   taught   to   achieve    their    personal   and
organizational/professional  goals  with  an  array  of  products  and  services
guaranteed to bring success.

         A major  premise of LL Brown's  work is that people can always  achieve
more in life once they learn how to eliminate  self-imposed  ceilings  which cap
their  potential.  LL Brown  works  with  people  to show  them  that  change is
possible.  It shows  organizations  and their employees how to become resilient,
focused,  goal oriented and  innovative.  Without this type of  education,  many
organizations are  re-engineering  their operations  without  re-engineering the
thinking of their employees.

         The Company  provides  organizations  with the training  and  education
needed to improve  corporate  image,  performance  and  quality.  LL Brown helps
companies  to  re-energize  their staff so that they feel  capable of  achieving
clear,  consistent  results.  The Company's programs foster teamwork and greater
communications between departments.

         LL  Brown  has   trained   over   10,000   teachers,   counselors   and
administrators  to implement its curriculum.  The majority of its employees have
advanced  degrees  in  education,   social  work,  public   administration   and
counseling.  To date, they have logged over 3,000 hours  experience  teaching LL
Brown's curriculum.

CLIENT LIST

Corporations
AT&T
Butler Corporation
GTE-Northwest
Hughes Aircraft
IBM
Mobile Area Chamber of Commerce
Prime Health Corporation
Vanity Fair Corporation

Governmental
Charleston Naval Shipyard
City of Detroit Employment & Training
Dept. of Labor-Southeast Region
Fulton County DFAC
Los Angeles Dept. of Children & Family Services
Santa Clara County Welfare
South Carolina Dept. of Economic Security & Community Affairs
Trident Refit Submarine

<PAGE>

Social Services, Employment & Training
Dyersburg JTPA
WAGES Jacksonville, Tampa, Fort Meyers, Miami, St. Petersburg
Santa Clara County JTPA
Treasure Coast JTPA
NY State Division of Youth Services

International
Henburg School, Bristol, UK
Lawrence Weston School, Bristol, UK
Menzieshill High School, Dundee, Scotland
St. Thomas Moore School, Bristol, UK
Metamorphosis, London, UK

Educational
-----------
Chicago Public Schools
Detroit Public Schools
Gary Public Schools
Portland Public Schools
University of Alabama
Wayne State University-School of Education Doctoral Program

     MANAGEMENT

     The following sets forth the names of the Company's officers and directors:

     CAROLYN SCOTT BROWN PRESIDENT

         Carolyn Scott Brown, M.A. is a psychologist who has worked in the areas
of  psychotherapy,  training,  community mental health,  education and substance
abuse counseling to help people make paradigm shifts and manage their lives more
successfully.  She  brings  over  17  years  of  experience  in  consulting  and
developing  programs  based on  cognitive  skills  training for  businesses  and
nonprofit organizations to the Company.

         She  received  her  Masters  Degree  in 1976 and  completed  5 years of
Doctoral Studies at Columbia  University in counseling and clinical  psychology.
While  completing her  requirements,  she  participated  in an internship at the
Charles Stewart Mott Center for Human Development-Wayne State University Medical
School in Detroit,  MI. She obtained her Bachelors  Degree from Brown University
in  Providence,  Rhode  Island with a double  major in  Psychology  and Cultural
Anthropology.

         From 1978 to 1979,  she  worked as the  Assistant  Director  of Student
Affairs,  Columbia  University,  Graduate  School of Business and consulted with
several  organizations in the areas of Stress Management throughout New York and
New  Jersey.  From  1974 to 1976,  she  worked as a staff  psychologist  for the
Brooklyn   Veterans   Administration   Hospital  in  Brooklyn,   New  York.  Her
responsibilities  included  providing career  planning,  vocational and clinical
testing, group therapy and recovery services for veterans and their families.

<PAGE>

         As a  consultant  to  Hotline  Crisis,  Inc.  from  1979 to  1982,  she
developed a crises  intervention  program for runaways and  supervised a 24 hour
teen  runaway  hotline.  She also  developed  a counselor  training  program and
supervised  case managers for Enter,  Inc., a  residential  center for substance
abusers in East  Harlem  from 1979 to 1982.  At  Marygrove  College in  Detroit,
Michigan,  she  worked as a  Special  Student  Services  Director  and  provided
programs in parenting skills,  test anxiety and motivation for "returning adult"
students.  Her office helped to  significantly  improve the retention  rates for
this target group.  Ms. Brown also developed a peer counseling and peer tutoring
program that provides services for over 700 students each year. During that same
year  period,  she  spent 24 hours  per week as a  supervisor  of the  Emergency
Telephone  Service,  a 24 hour  suicide line in Detroit,  Michigan  that handled
7,000  suicide  and  domestic  calls per month.  As  President  of L.L.  Brown &
Associates,  Inc., Ms. Brown is in charge of marketing,  research,  new products
and curriculum  development.  She has written all of the training  materials and
designed   a   train-the-trainer   program   that   leads   to  cost   effective
implementations of all L.L. Brown International, Inc. programs.

     LESTER BROWN VICE-PRESIDENT

         Lester Brown, a uniquely-gifted,  internationally-acclaimed speaker and
teacher  grew up in a climate  of  poverty,  crime  and  drugs in the  ghetto of
Detroit,  Michigan. He was expelled from school at an early age-while in school,
and was thought to have learning disabilities.

         Years later,  he discovered  that if he wanted to, he had the potential
to change his life.  Armed with powerful  information  on how to bring about the
changes he desired,  he studied for and received his GED. He studied  psychology
at a  special  program  offered  by  the  University  of  Wisconsin  in  Oxford,
Wisconsin.  For the past 25 years,  he has  taught  thousands  of  people  basic
success and critical  thinking  skills.  He has shared with them an  educational
process to change their habits, attitudes,  beliefs, and expectations about what
they can achieve so that they can become more successful in all areas of life.

         Drawing on his own personal experiences, he delivers a powerful message
that inevitably inspires and motivates his audience.  Lester Brown developed one
of the nations  most  outstanding  programs  for working  with youth and at-risk
populations.  He has  provided  training  programs  and  seminars  for  schools,
corporations,  and governments in the U.S. and abroad.  He has provided training
to Fortune 500 companies,  and designed and packaged the successful  Independent
Thinking Skills Program. He and his wife, Carolyn Scott Brown, have started this
company  to serve the hard-  to-serve  and to give a chance  to  at-risk  youth,
dislocated workers, and people in transition.

     PRINCIPAL SHAREHOLDERS

         Prior to this offering, the Company had 10,000,000 shares of its Common
Stock issued and outstanding. The following table sets forth, as of November 10,
2000,  the  beneficial  ownership of the Company's  Common Stock (i) by the only
persons who are known by the Company to own

<PAGE>

beneficially  more than 5% of the Company's Common Stock;  (ii) by each director
of the Company; and (iii) by all directors and officers as a group.

Name                 Number of Shares        Percentage Owned   Percentage Owned
                     Owned Prior to Offering  Before Offering           After
Offering

Carolyn Scott Brown  4,384,500                   44%                       40%

Lester L. Brown      4,384,500                   44%                       40%

     USE OF PROCEEDS

     The Company  plans to utilize the  proceeds  of this  Offering  for working
capital.

     DESCRIPTION OF SECURITIES

     Shares The Company is hereby offering a "best efforts, no minimum basis" up
to 500,000 shares of Common Stock at $1.00 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, 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
Nevada for a more complete description  concerning the rights and liabilities of
stockholders.

<PAGE>

         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.

Preferred Stock

         The authorized  capital stock of the Company also consists of 1,000,000
shares of Preferred Stock, $.001 par value, none of which are issued.

     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 $1.00 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.

     CAUTIONARY WARNING

THE COMPANY'S BUSINESS PLAN CONTAINED HEREIN AND THE COMPANY'S
FINANCIAL STATEMENTS AND PROJECTIONS ARE FORWARD LOOKING.  STATEMENT
AND ACTUAL RESULTS COULD MATERIALLY DIFFER FROM THE PROJECTIONS. AS
SUCH, NO INVESTOR SHOULD RELY ON SUCH INFORMATION IN MAKING HIS
INVESTMENT.

<PAGE>

     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.

<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;

                                    66

<PAGE>

     (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 $1,000,000;

     (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;

     (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
non-accredited 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.

                                     67

<PAGE>

         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.

                                     68

<PAGE>

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  under the  Securities  Act, or an  exemption  therefrom
(including  an  exemption  under  Regulation  D,  Section 504) 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.

                                      69

<PAGE>

                          LL Brown International, Inc.
                             (A Nevada corporation)

                               ==================

                             SUBSCRIPTION DATA SHEET

                               ==================

Name of Subscriber
(Offeree):_______________________________________________________

Address of Residence
(if natural person):_____________________________________________

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

Address of
Business:________________________________________________________

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

Subscriber's
Telephone No.:___________________________________________________

Subscriber's Social
Security No. or
Tax I.D. No.:____________________________________________________

Preferred Address for
receiving mail:
( ) Residence
( ) Business
( ) Other, if any:
-----------------------------------------------------------------

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

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

Date of Subscription:____________________________________________

Amount of
Subscription:     $______________________________________________

                                         70

<PAGE>

                      SUBSCRIPTION AGREEMENT AND INVESTMENT
                           REPRESENTATION OF INVESTORS

LL Brown International, Inc.
1107 S.W. Grady Way, Suite 106
Renton, WA 98055

Gentlemen:

     1. Subject to the terms and conditions hereof,  the undersigned,  intending
to be legally bound, hereby irrevocably  subscribes for and agrees to accept and
subscribe to _________  shares of  Regulation  D, Section 504 common stock of LL
Brown  International,  Inc., a Nevada  corporation  (the  Company),  for a total
consideration  of  $_________,  the receipt and  sufficiency  of which is hereby
acknowledged.

     2. In order to induce the Company to accept the  subscription  made hereby,
the undersigned  hereby  represents and warrants to the Company,  and each other
person who acquires or has acquired the Shares, as follows :

     (a) The  undersigned,  if an individual (i) has reached the age of majority
in the  state  in  which  he  resides  and  (ii)  is a bona  fide  resident  and
domiciliary  (not a  temporary  or  transient  resident)  of the state set forth
beneath his signature below.

     (b) The undersigned has the financial  ability to bear the economic risk of
an  investment  in the Shares has adequate  means of  providing  for his current
needs and personal contingencies,  has no need for liquidity in such investment,
and could afford a complete loss of such investment.  The undersigned's  overall
commitment   to   investments   that   are  not   readily   marketable   is  not
disproportionate  to his net worth,  and his  investment in the Company will not
cause such overall commitment to become excessive.

     (c) The undersigned meets at least one of the following criteria:

     (i) the undersigned is a natural person whose individual net worth or joint
net worth with his spouse, at the time of his purchase,  exceeds $1,000,000 (ONE
MILLION DOLLARS); or --

     (ii) the  undersigned is a natural  person and had an individual  income in
excess of $200,000 (TWO-HUNDRED THOUSAND DOLLARS) in each of the two most recent
years, or jointly with his spouse in excess of $300,000  (THREE-HUNDRED THOUSAND
DOLLARS) in each of those years, and who reasonably  expects to achieve at least
the same income level in the current year; or

     (iii)  qualifies  as an  accredited  investor  under  Regulation  D of  the
Securities Act of 1933 (the "Act").

                                      71

<PAGE>

     (d) The  investment is one in which I am purchasing  for myself and not for
others, the investment amount does not exceed 10% of my net worth and I have the
capability to understand the investment and the risk.

     (e) The undersigned is purchasing the shares with the intent of holding the
securities for investment  and without the intent of  participating  directly or
indirectly in a distribution of such securities.

     (f) The undersigned  has been given a full  opportunity to ask questions of
and to receive  answers from the Company  concerning the terms and conditions of
the  offering  and  the  business  of  the  Company,  and to  obtain  additional
information  necessary to verify the accuracy of the information given him or to
obtain such other  information  as is desired in order to evaluate an investment
in the Shares. All such questions have been answered to the full satisfaction of
the undersigned.

     (g) In making his decision to purchase the Shares  herein  subscribed  for,
the undersigned has relied solely upon independent  investigations  made by him.
He has  received  no  representation  or  warranty  from the  Company  or from a
broker-dealer, if any, or any of the affiliates,  employees or agents of either.
In addition, he is not subscribing pursuant hereto for any Shares as a result of
or subsequent to (i) any advertisement,  article,  notice or other communication
published  in any  newspaper,  magazine  or  similar  media  or  broadcast  over
television or radio, or (ii) any seminar or meeting whose  attendees,  including
the undersigned,  had been invited as a result of, subsequent to, or pursuant to
any of the foregoing.

     (h) The  undersigned  understands  that the Shares have not been registered
under the Act in reliance upon specific exemptions from registration thereunder,
and he agrees that his Shares may not be sold,  offered  for sale,  transferred,
pledged,  hypothecated,  or otherwise  disposed of except in compliance with the
Act and  applicable  state  securities  laws,  which  restrictions  require  the
approval of the Company for the transfer of any Shares (which  approval,  except
under  limited  circumstances,  may be  withheld  by  the  Company  in its  sole
discretion).   The  undersigned  has  been  advised  that  the  Company  has  no
obligations to cause the Shares to be registered under the Act or to comply with
any exemption under the Act, including but not limited to that set forth in Rule
144  promulgated  under the Act, which would permit the Shares to be sold by the
undersigned.  The undersigned  understands that it is not anticipated that there
will be any market for resale of the Shares, and that it may not be possible for
the  undersigned  to  liquidate an  investment  in the Shares.  The  undersigned
understands  the legal  consequences  of the foregoing to mean that he must bear
the economic  risk of his  investment  in the Shares.  He  understands  that any
instruments  representing  the Shares may bear legends  restricting the transfer
thereof.

     3. To the  extent I have the right to rescind my  purchase  of the  Shares,
which right of recision is hereby  offered,  I waive and relinquish  such rights
and agree to accept certificate(s) evidencing such Shares.

     4. This  Agreement  and the rights and  obligations  of the parties  hereto
shall be governed by, and construed and enforced in accordance with, the laws of
the State of Nevada.

                                     72

<PAGE>

     5. All pronouns contained herein and any variations thereof shall be deemed
to refer to the  masculine,  feminine  or neuter,  singular  or  plural,  as the
identity of the parties hereto may require.

     6. The  shares  referred  to  herein  will be sold to the  subscriber  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, if sales are made to five or more persons in the State of Florida, any
sale in the State of Florida is voidable by the purchaser  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.

                                       73

<PAGE>

IN WITNESS WHEREOF,  the undersigned has executed and agrees to be bound by this
Subscription  Agreement and Investment  Representation on the date written below
as the Date of Subscription:

                                          (TO BE USED FOR INDIVIDUAL(S))

----------------------------                -------------------------------
Print Name of Individual                    Signature of Individual

-----------------------------               -------------------------------
State of Residence                          Date of Subscription

                                    (TO BE USED FOR PARTNERSHIPS, CORPORATIONS,
                                             TRUSTS OR OTHER ENTITIES)

_______________________________             By:______________________________
Print Name of Partnership                   Signature of Authorized
Corporation - Trust - Entity                Representative

-------------------------------             ---------------------------------
Capacity of Authorized                      Print Name of Authorized
Representative                              Representative

-------------------------------             --------------------------------
Print Jurisdiction of                       Date of Subscription
Incorporation or Organization

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