FRANCHISE AGREEMENT

                                                                    EXHIBIT 10.2
                                   REZcity.com
                                  REZcity Plus
                   A Division of Rezconnect Technologies, Inc.


                               FRANCHISE AGREEMENT


                       EXHIBIT B TO THE OFFERING CIRCULAR





















                     THIS CONTRACT IS SUBJECT TO ARBITRATION
                     ---------------------------------------




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                                TABLE OF CONTENTS


I.     GRANT.................................................................2

II.    TERRITORY.............................................................2

III.   TERM AND RENEWAL......................................................3

IV.    BUSINESS LOCATION.....................................................4

V.     TRAINING AND ASSISTANCE...............................................5

VI.    USE OF SYSTEM AND MARKS...............................................6

VII.   OPERATIONS MANUAL.....................................................7

VIII.  CONFIDENTIAL INFORMATION..............................................7

IX.    MODIFICATION OF THE SYSTEM............................................8

X.     ADVERTISING...........................................................8

XI.    PAYMENTS TO FRANCHISEE................................................9

XII.   BILLING, ACCOUNTING AND RECORDS.......................................9

XIII.  STANDARDS OF QUALITY AND PERFORMANCE.................................10

XIV.   FRANCHISOR'S OPERATIONS ASSISTANCE...................................11

XV.    INSURANCE............................................................12

XVI.   COVENANTS............................................................14

XVII.  DEFAULT AND TERMINATION..............................................15

XVIII. RIGHTS AND DUTIES OF PARTIES UPON EXPIRATION OR TERMINATION..........17

XIX.   TRANSFERABILITY OF INTEREST..........................................18

XX.    DEATH OR INCAPACITY OF FRANCHISEE....................................20

XXI.   RIGHT OF FIRST REFUSAL...............................................21

XXII.  INDEPENDENT CONTRACTOR AND INDEMNIFICATION...........................21

XXIII. NON-WAIVER...........................................................22

XXIV.  NOTICES..............................................................22

XXV.   COST OF ENFORCEMENT OR DEFENSE.......................................23

XXVI.  APPROVALS............................................................23

XXVII. ENTIRE AGREEMENT.....................................................23

XXVIII.SEVERABILITY AND CONSTRUCTION........................................24

XXIX.  APPLICABLE LAW.......................................................24

XXX.   ARBITRATION..........................................................25

XXXI.  FORCE MAJEURE........................................................26

XXXII. FRANCHISEE DEFINED; GUARANTY.........................................26

XXXIII.CAVEAT...............................................................26


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XXXIV. ACKNOWLEDGMENTS......................................................26

EXHIBITS
--------

A. MAP OF TERRITORY B. COMMISSION SCHEDULE
C. GUARANTY AND ASSUMPTION OF OBLIGATIONS D. PROMISSORY NOTE


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                          RezConnect Technologies, Inc.

                               FRANCHISE AGREEMENT

     This  Franchise  Agreement  (this  "Agreement"),  made  this  ____  day  of
___________,  20___ by and  between  RezConnect  Technologies,  Inc.,  a company
operating  under the laws of the State of New York,  and  having  its  principal
place of business  at 560 Sylvan  Avenue,  Englewood  Cliffs,  New Jersey  07632
(hereinafter    referred   to   as   "RezCity.com"   or    "Franchisor"),    and
__________________________     an     individual/partnership/corporation/limited
liability  company  established in the State of  ____________,  whose  principal
address   is   __________________________________________________   (hereinafter
referred to as "Franchisee").

                              W I T N E S S E T H:

         WHEREAS,  Franchisor has developed a system  ("System"),  identified by
the Mark "RezCity.com" relating to the establishment,  development and operation
of a business specializing in the sale of Internet based marketing tools such as
banner  advertisements  on the home page and calendar  pages of the  REZcity.com
website,  content licensing,  creating websites with unlimited pages featuring a
shopping cart order system and other forms of Internet Advertising.  In addition
to the services  described,  the  franchisee  can elect to operate a consignment
business  online and  provide  an auction  model  through  the eBAY  Marketplace
(Hereby  described  as REZcity  Plus).  We all provide  tools such as  real-time
reservations,  confirmations  and appointment  scheduling,  business-to-consumer
negotiating  of retail  products and services.  Other  services  include  search
engine submission and domain name site  registration.  All of these services are
designed for small to medium sized businesses and local community organizations.
Our travel  services  feature  online 24/7  reservations/bookings  for Airlines,
Hotels,  Cars,  Limos,  Tours and Cruises products with over 55 bookable engines
("Services")
         WHEREAS,  the  distinguishing  characteristics  of the System  include,
without limitation,  the RezCity.com home page located at http://www.rezcity.com
featuring  "city  guides"  for over fifty  three  thousand  (53,000)  cities and
communities;  the  proprietary  Internet  marketing  package which  includes the
Services, the RezCity.com Confidential Operations Manual ("Manual"); methods for
recruiting,  hiring and training  employees;  inventory,  cost controls,  record
keeping,  all of  which  may be  changed,  improved  and  further  developed  by
Franchisor from time to time; and

         WHEREAS,  Franchisor  is the owner of the  right,  title and  interest,
together  with all the  goodwill  connected  thereto,  in and to the  trademarks
"RezConnect.com"  and "RezCity.com" and other trademarks,  domain names, service
marks and trade  dress,  associated  logos,  commercial  symbols,  trade  names,
trademarks,  service  marks  and  trade  dress  as are  now,  or in the  future,
designated as an integral part of the System (the "Mark[s]"); and

         WHEREAS,  Franchisee  understands  and  acknowledges  the importance of
Franchisor's high and uniform  standards of quality,  operations and service and
the necessity of operating the  Franchised  Business in strict  conformity  with
Franchisor's standards and specifications; and

         WHEREAS,  Franchisor  is the licensee of certain  proprietary  software
from  411Web.com,  Inc.,  with the  right to  sub-license  the  software  to its
franchisees; and

         WHEREAS,  Franchisor  expressly  disclaims the making of and Franchisee
acknowledges that it has not received nor relied upon any warranty or guarantee,
express or  implied,  as to the  revenues,  profits  or success of the  business
venture contemplated by this Agreement. Franchisee acknowledges that it has read
this Agreement and Franchisor's  Uniform Franchise Offering Circular and that it
has no knowledge of any representation by Franchisor or its officers, directors,
shareholders,  employees or agents that are contrary to the  statements  made in

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Franchisor's Uniform Franchise Offering Circular or to the terms hereof.

         NOW,  THEREFORE,  the parties, in consideration of the undertakings and
commitments of each party to the other set forth in this Agreement, hereby agree
as follows:

I.             GRANT
               -----

         A     Franchisor  hereby grants to Franchisee,  subject to the terms
and conditions  hereof, the right and license to operate a business offering the
Services  to  local  businesses,   community  organizations,   not-for-profit's,
merchants and professionals within their franchised territory.
         B     In  consideration  of the  payments  received  and the  mutual
covenants  contained in this Agreement,  Franchisor hereby grants to Franchisee,
and  Franchisee  hereby  accepts,  a  license  for  the  territory   hereinafter
described.  Franchisor  hereby  grants  to  Franchisee,  and  Franchisee  hereby
accepts,   the  right,   license  and  privilege  of  using   "RezCity.com"  and
"RezConnect.com"  and  other  Marks of  Franchisor  solely  and only upon and in
connection with activities  authorized under this Agreement.  Franchisee  agrees
not to make or authorize any use, direct or indirect, of the Marks for any other
purpose or in any other way.  Franchisee  acknowledges that Franchisor may grant
other  licenses  for the use of the Marks or  utilize  the  Marks in any  manner
whatsoever subject to the provisions of this Agreement.

II.            TERRITORY
               ---------

         A     The  territory  granted  shall be as  described  on  Exhibit A
("Territory").  During this  Agreement  term,  Franchisor  will not establish or
license any other person or entity to provide Internet  advertising  services or
other related services  operating under the RezCity.com  trademark and utilizing
the System within the Territory; provided, however, that Franchisor shall retain
the right:

               1.  to establish  other  Franchises at  any  location  outside of
Franchisee's   Territory,   as  Franchisor,   in  its  sole  discretion,   deems
appropriate;

               2.  to establish,  and license  others  to  establish  businesses
under other systems using other proprietary marks, which businesses may offer or
sell services and products  which are  competitive  with or different from those
services and products offered by the Franchised  Business,  and which businesses
may be located  within or outside the  Territory;  Rezconnect  Technology  which
consists of a Net-to-Phone-to-Net application and WEB 2 Web applications are and
will be used by various  companies and websites which may compete  directly with
the franchisee in his market or on the Internet.  We are not providing exclusive
use of the  applications to Franchisees but will not offer our technology  using
REZcity platform other than thru the Franchisee.

               3.  to   contract   with   sales  organizations  and other  Sales
Consultant(s)  to allow the Sales  Consultants  and its sales force to engage in
the sale of Internet advertising including the Services; provided, however, that
Sales Consultants shall not be licensed to utilize the RezCity.com  trademark as
its  principal  trade name under  which it  operates,  but may be  permitted  to
identify itself as a "RezCity.com-Authorized Dealer"; provided further, that the
Franchisee  shall receive a commission based upon the sale of Services and other
Internet   advertising  by  each  Sales  Consultant  occurring  in  Franchisee's
Territory in accordance with Section V of this Agreement.  Sales organization is
optional  and  not  required  for  franchisee  to  accept,   unless  already  in
marketplace and all deals will continue.

         B     Upon  execution  of   this  Agreement ,  Franchisee  shall  pay a
franchise      fee       ("Franchise       Fee")      to      Franchisor      of
___________________________________  DOLLARS  ($_________).  Said  Franchise Fee
shall be deemed fully earned and non-refundable upon execution of this Agreement


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as consideration  for expenses  incurred by Franchisor in furnishing  assistance
and services to Franchisee and for Franchisor's lost or deferred  opportunity to
grant this  franchise  to other  third  parties,  except as may be  specifically
provided in this Agreement and/or any exhibit attached hereto.

         The initial  franchise  fee is based on a per unit sale.  A unit can be
defined  as a town or city with a  population  of 25,000 or less.  For a town or
city with 25,000 or less in population,  the franchise fee is $1,500.  For towns
or cities greater than 25,000 in population,  a surcharge of $0.06 per person in
population is charged.  For example, if a town or city has 15,000 in population,
the franchise  fee would be $1,500;  For a town with 30,000 in  population,  the
franchise fee would be $1,800. The franchise fee is due and payable  immediately
upon execution of the Franchise  Agreement.  The population is based on the most
current U.S. Census Bureau statistics. In the event a Franchisee selects REZcity
Plus, they are required to purchase a minimum of three (3) contiguous units at a
minimum cost of $4,500.

         Upon the commencement of Franchisee's  Franchised Business,  Franchisee
shall pay to  Franchisor a "Web Hosting Fee"  totaling One Hundred Fifty Dollars
($150.00) for each  franchised  unit.  The Web Hosting Fee is an annual fee, due
from Franchisee to Franchisor on each  anniversary  year of the signed franchise
Agreement.  The Web  Hosting  Fee will  increase  each year (5%),  to  reimburse
Franchisor  for its costs,  including  labor,  maintenance  and  communications,
related to web hosting.  If Franchisee  does not pay  re-occurring  hosting fee,
franchisee will be in default of the Franchise Agreement.

         C     Franchisee  acknowledges  that  because  complete and detailed
uniformity  under many  varying  conditions  may not be possible  or  practical,
Franchisor specifically reserves the right and privilege, at its sole discretion
and as it may  deem in the  best  interests  of all  concerned  in any  specific
instance,   to  vary  standards  for  any  System   franchisee  based  upon  the
peculiarities of the particular site or circumstance,  population of trade area,
density of population,  business  potential,  existing business practices or any
other  condition  which  Franchisor  deems to be of importance to the successful
operation of such  franchisee's  business.  Franchisee  shall not be entitled to
require  Franchisor  to  disclose  or  grant  to  Franchisee  a like or  similar
variation hereunder.

III.           TERM AND RENEWAL
               ----------------

         A     This  Agreement  shall be effective and binding for an initial
term of five (5) years from the date of its execution.

         B     Franchisee shall have the right to renew this franchise at the
expiration  of the  initial  term  of  the  franchise  for  two  (2)  additional
successive  terms of five (5) years  each,  provided  that all of the  following
conditions have been fulfilled:

               1.  Franchisee  has,  during the entire  term of this  Agreement,
substantially complied with all its provisions;

               2.  Franchisee  has given  notice of  renewal  to  Franchisor  as
provided below;

               3.  Franchisee has satisfied all monetary  obligations owed by
Franchisee to  Franchisor,  or any affiliate of  Franchisor,  and has timely met
these obligations throughout the term of this Agreement;

               4.  Upon  renewal,   Franchisee   has   executed    Franchisor's
then-current  form of the Franchise  Agreement or has executed renewal documents
at Franchisor's  election (with  appropriate  modifications  to reflect the fact
that the Franchise Agreement relates to the grant of a renewal franchise), which


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Franchise  Agreement  shall  supersede this  Agreement in all respects,  and the
terms of which may differ from the terms of this  Agreement  including,  without
limitation,  a  different  percentage  Sales  Commission;   provided,   however,
Franchisee shall not be required to pay the then-current  initial  Franchise Fee
or its equivalent; and

               5.  Franchisee  has  complied  with   Franchisor's   then-current
qualifications and training requirements.

         C     If   Franchisee   desires  to  renew  this  franchise  at  the
expiration of this Agreement, Franchisee shall give Franchisor written notice of
its  desire to renew at least six (6)  months,  but not more  than  twelve  (12)
months,  prior to the expiration of the initial term of this  Agreement.  Within
thirty  (30) days after its  receipt of such  timely  notice,  Franchisor  shall
furnish Franchisee with written notice of Franchisee's right to obtain a renewal
franchise.  If the notice  indicates that Franchisor  will permit  Franchisee to
obtain a renewal  franchise,  Franchisee's  right to obtain a renewal  franchise
will be  contingent on continued  full  compliance  with this  Agreement and any
other  agreement   between   Franchisee  and  Franchisor   and/or   Franchisor's
affiliates.  If,  during the term of this  Agreement,  Franchisee  has failed to
substantially  comply  with  this  Agreement,  Franchisor  may  refuse  to grant
Franchisee a renewal agreement.  Franchisor will provide notice which states the
reasons for Franchisor's  decision.  If Franchisor determines that Franchisee is
not  eligible  to  obtain  a  renewal  franchise,  but that  the  nature  of the
noncompliance  may be cured so that  Franchisor is willing to consider  granting
Franchisee a renewal franchise,  Franchisor will notify Franchisee  accordingly.
Franchisee will be eligible for a renewal  franchise if Franchisee has cured the
noncompliance within thirty (30) days of Franchisor's notice of noncompliance to
Franchisee.

IV.            BUSINESS LOCATION
               -----------------

         A     Franchisee  must locate the business office for the Franchised
Business from a premises  which is located  within the  Territory  ("Premises").
Franchisee's  acceptance  of a  franchise  for  the  operation  of a  Franchised
Business  at  the  location  of  the  Premises  is  based  on  Franchisee's  own
independent   investigation  of  its  suitability  for  a  Franchised  Business.
Franchisee  may  establish  the office for the  Franchised  Business  within the
majority owner's residence  (subject to local zoning laws).  Franchisor does not
evaluate the  location.  If a Franchisee  selects  REZcity  Plus,  Franchisee is
required to lease a storage  facility that is located  within the same territory
as the Franchised Business.

         B     Franchisee  agrees, at its expense,  to do or cause to be done
the following within ninety (90) days after the date of this Agreement:

               1.  obtain all required building,  utility,  sign, health, and
business  permits and licenses and any other required  permits and licenses,  if
any;

               2.  construct all required  improvements to the Premises,  and
decorate  Franchisee's  Premises in compliance  with layouts and  specifications
approved by Franchisor, if any;

               3.  purchase  and  install  all  required   computer   equipment,
furniture, furnishings and signs;

               4.  purchase the opening inventory of office supplies; and

               5. hire personnel required for Franchisee's  Franchised Business,
if any.

         C     Franchisee must not open the  Franchised  Business  and  commence
business until:

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               1. all of the  obligations  pursuant to the other  provisions  of
Section IV. of this Agreement have been fulfilled;

               2.  Franchisor  has received a fully  executed form of collateral
assignment of telephone numbers and listings, if required;

               3.  Franchisee  and its personnel have  satisfactorily  completed
          initial training;

         .........4. Franchisee has furnished Franchisor with certification that
all required building,  utility,  sign, health,  sanitation,  business and other
permits  and  licenses  have  been  obtained  from any  applicable  governmental
authority,  including any  certificate  of occupancy and approvals  necessary to
operate a business (if any); and

         .........5.  Franchisor has been furnished with copies of all insurance
policies  required  by this  Agreement,  or such  other  evidence  of  insurance
coverage and payment of premiums as Franchisor may request.

         D........Franchisee  must comply with these  conditions and be prepared
to open the  Franchised  Business  within one  hundred  twenty  (120) days after
signing  this  Agreement  and only after  having  satisfactorily  completed  the
initial training program as specified in Section V.

V.             TRAINING AND ASSISTANCE
               -----------------------

         A     Franchisor shall make training available to Franchisee and its
manager,   who  shall   successfully   complete  each   required   training  and
familiarization  course  conducted.  Initial training shall cover aspects of the
operation of a Franchised  Business,  and shall be conducted in three (3) phases
("Phase[s] I - III"):


         Phase I          This  Phase is  a self-study  course  lasting  several
                          days depending upon Franchisee's  technical background
                          and time  spent  each  day  reviewing  the  materials.
                          Franchisee  must pass a proficiency  examination  over
                          the  Internet  via  an  online  tutorial   program  to
                          successfully complete Phase I.

         Phase II         For  REZcity:  This Phase lasts twelve (12) hours over
                          several  weeks online.  Franchisee  may elect to visit
                          REZcity.com  Corporate  Headquarters,   or  any  other
                          location that the Franchisor operates from including a
                          location selected by the Area  Representative,  if one
                          exits in  franchisee's  market for in-class  training.
                          In-class  training is  recommended  but not mandatory.
                          This Phase is designed to provide  Franchisee  with an
                          understanding  of  products  and  services  as well as
                          sales and public relations skills.

                          For REZcity Plus: This Phase lasts eighteen (18) hours
                          over several  weeks  online.  Franchisee  may elect to
                          visit REZcity.com Corporate Headquarters, or any other
                          location that the Franchisor operates from including a
                          location selected by the Area  Representative,  if one
                          exists in franchisee's  market for in-class  training.
                          In-Class  training is  recommended  but not mandatory.
                          This  Phase   begins   with   twelve   (12)  hours  of
                          REZcity.com  training and is followed by an additional
                          six (6) hours of training on the auction program.

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         Phase III        Prior to beginning  operation,  Franchisor or its Area
                          Representative    shall   provide    Franchisee   with
                          counseling  and offer its  experience and knowledge on
                          pertinent  issues  Franchisee has in establishing  the
                          Franchised  Business.  Franchisor  shall be  available
                          during  normal  business  hours and can be  reached by
                          fax, telephone and/or the Internet.

         If Franchisee selects in-house training,  all expenses of attendance at
the  initial  training  by  Franchisee  and  its  employees  including,  without
limitation,   travel,   and  room  and  board   expenses,   shall  be  the  sole
responsibility of Franchisee.  If Franchisee  selects online training,  the only
expense associated is a long distance telephone call into the conference line.

         B     As   part  of ongoing assistance,  Franchisor will make available
a telephone line which Franchisee may use to communicate with Franchisor  during
normal  business hours to request advice  regarding  sales matters,  business or
technical issues.

         C     Franchisor may provide and may require that previously trained
               and  experienced  Franchisees  or their  managers or employees
               attend and successfully  complete  refresher training programs
               or seminars; provided online or in-house.
VI.            USE OF SYSTEM AND MARKS
               -----------------------

         A     Franchisee    acknowledges   that   the  name  "REZcity.com"  and
"REZconnect.com""  and the Marks licensed  hereunder are owned by Franchisor and
Franchisee further acknowledges that valuable goodwill is attached to such trade
names,  trademarks and service marks and that  Franchisee  will use same only in
the manner and to the extent specified by this Agreement.

         B     Franchisee acknowledges, and  will  not c ontest, Franchisor's or
any affiliate's  exclusive  ownership and rights to each and every aspect of the
System.  Franchisee's  right to market the System and establish  the  Franchised
Businesses  is  specifically  limited  to the  Territory,  and is subject to the
supervision  and  control of  Franchisor  as provided  herein.  Said right shall
terminate upon the expiration or termination of this Agreement.

         C     Franchisee  acknowledges that  Franchisor's   Marks constitute  a
significant  aspect  of  the  System.  Without  Franchisor's  written  approval,
Franchisee  agrees that such Marks will not be used as the name,  or part of any
name, of any  corporation,  partnership  or any entity of  proprietorship  under
which Franchisee  transacts business.  Franchisee's use of the Marks are subject
to the control and approval of Franchisor in every other respect.

         D     If  a claim is  asserted  by  others of  a prior use of the Marks
with respect to a similar business within the Territory,  Franchisor may require
Franchisee  to  participate  in the  defense  of such  claims,  at  Franchisor's
expense. Franchisee shall give written notice to Franchisor within five (5) days
of acquiring knowledge  concerning the use by others within the Territory of the
same or confusingly similar names and Marks.

         E     If  Franchisor  at any time, in its  sole discretion,  determines
that it is advisable for Franchisee to modify or  discontinue  use of any Marks,
and/or  use one or more  additional  or  substantive  trade  names,  trademarks,
service marks or other commercial symbols, Franchisee agrees to comply therewith
within a reasonable time after notice thereof by Franchisor.

         F     Franchisee  shall  not  establish a Website on the Internet using
any  domain  name   containing   the  words   "REZconnect.com,"   "RezCity.com,"
"Ezdropoff.com"  or any variation  thereof  without  prior written  consent from
Franchisor.  Franchisor  retains the sole right to advertise on the Internet and


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create a  Website  using  the  RezCity  domain  names  (Including:  rezcity.com,
rezity.biz, rezcity.net, rezcity.tv). Franchisee acknowledges that Franchisor is
the  owner of all  right,  title and  interest  in and to such  domain  names as
Franchisor  shall  designate  in the  Manual.  Franchisor  retains  the right to
pre-approve  Franchisee's  use of linking and framing between  Franchisee's  Web
pages and all other  Websites.  If requested by  Franchisor,  Franchisee  shall,
within five (5) days,  dismantle any frames and links between  Franchisee's  Web
pages and any other Websites.

         G      If  you  are  a  REZcity  Plus  Franchisee,  you  cannot  own an
auction site from eBAY or any other  provider or sell goods on behalf of a third
party under any  condition.  Violation of this  prohibition  will be grounds for
immediate termination of the Franchise Agreement.

VII.           OPERATIONS MANUAL
               -----------------

         A     While  this  Agreement is  in  effect,  Franchisor  will loan  to
Franchisee  one (1)  copy  of the  Manual  containing  mandatory  and  suggested
specifications,  standards,  operating procedures and rules prescribed from time
to time by  Franchisor  for a Franchised  Business and  information  relative to
other  obligations of Franchisee.  Franchisor shall have the right to add to and
otherwise  modify  the  Manual  from  time  to time to  reflect  changes  in the
specifications,   standards,   operating  procedures  and  rules  prescribed  by
Franchisor  for a  Franchised  Business,  provided  that  no  such  addition  or
modification shall alter  Franchisee's  fundamental status and rights under this
Agreement.  Franchisor  may make such additions or  modifications  without prior
notice to Franchisee.  Franchisee shall immediately, upon notice, adopt any such
changes.

         B     The  Manual shall,  at  all times,  remain  the  sole property of
Franchisor  and shall promptly be returned upon the expiration or termination of
this Agreement.  Franchisee shall not make any disclosure,  duplication or other
unauthorized use of manner any portion of the Manual.

         C     The Manual contains  proprietary  information of  Franchisor  and
shall be kept  confidential  by Franchisee both during the term of the franchise
and subsequent to the expiration or  termination of this  Agreement.  Franchisee
shall at all  times  ensure  that its copy of the  Manual  be  available  on the
Premises in a current and up-to-date manner. At all times that the Manual is not
in use by authorized personnel, Franchisee shall maintain the Manual in a locked
receptacle  on the  Premises,  and shall only  grant  authorized  personnel,  as
defined in the Manual,  access to the key or combination of such receptacle.  In
the event of any  dispute as to the  contents  of the  Manual,  the terms of the
master copy of the Manual maintained by Franchisor at Franchisor's  headquarters
shall be controlling.

VIII.          CONFIDENTIAL INFORMATION
               ------------------------

         A     Franchisor    possesses    certain    proprietary    confidential
information  consisting  of  methods,   techniques,   formats,   specifications,
procedures,  information,  systems,  methods of business  management,  sales and
promotion techniques,  and knowledge of and experience in operating a Franchised
Business  (the  "Confidential  Information").   Franchisor  shall  disclose  the
Confidential  Information in the training program,  the Manual,  and in guidance
furnished to  Franchisee  during this  Agreement's  term.  Franchisee  shall not
acquire any interest in the  Confidential  Information,  other than the right to
utilize it in  performing  its duties  during  the term of this  Agreement,  and
Franchisee  acknowledges  that  the  use  or  duplication  of  the  Confidential
Information in any other business  venture would  constitute an unfair method of
competition.   Franchisee   acknowledges   and  agrees  that  the   Confidential
Information  is  proprietary,   includes  Franchisor's  trade  secrets,  and  is
disclosed  to  Franchisee  solely  on the  condition  that  Franchisee  (and its
shareholders,  partners,  members and managers,  if Franchisee is a corporation,
partnership or limited  liability  company) does hereby agree that it: (a) shall
not use the  Confidential  Information  in any other  business or capacity;  (b)
shall  maintain the absolute  confidentiality  of the  Confidential  Information


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during  and after the term of this  Agreement;  (c) shall not make  unauthorized
copies of any portion of the  Confidential  Information  disclosed in written or
other tangible form; and (d) shall adopt and implement all reasonable procedures
prescribed  from  time to time by  Franchisor  to  prevent  unauthorized  use or
disclosure of the Confidential Information.  All ideas, concepts,  techniques or
materials  concerning  the  Franchised  Business,  whether  or  not  protectable
intellectual  property and whether created by or for Franchisee or its owners or
employees,  must  be  promptly  disclosed  to  Franchisor  and  will  be  deemed
Franchisor's  sole  and  exclusive  property,  part  of  the  System  and  works
made-for-hire for Franchisor. To the extent any item does not qualify as a "work
made-for-hire"  for Franchisor,  Franchisee shall assign ownership of that item,
and all  related  rights to that  item,  to  Franchisor  and must sign  whatever
assignment or other documents  Franchisor  requests to show ownership or to help
Franchisor obtain intellectual property rights in the item.

         B     Franchisor  reserves the right  to  require  Franchisee  to  have
each of its shareholders, officers, directors, partners, employees, members, and
managers,  and, if Franchisee is an individual,  Franchisee's spouse,  execute a
non-disclosure and non-competition agreement in a form approved by Franchisor.

IX.            MODIFICATION OF THE SYSTEM
               --------------------------

         Franchisee recognizes that from time to time hereafter,  Franchisor may
change or modify the System including,  without limitation, the adoption and use
of new or modified Marks or  copyrighted  materials,  new computer  hardware and
software,  equipment or new techniques and that  Franchisee  will accept and use
for the purpose of this Agreement any such changes in the System as if they were
part of this  Agreement at the time of execution  hereof.  Franchisee  will make
such  expenditures as such changes or modifications in the System may reasonably
require.  Franchisee  shall not  change the  System in any way  without  written
permission of Franchisor.

X.             ADVERTISING
               -----------

         A     If  you  are  an  individual  Franchisee,  you have the option to
make  expenditures on advertising  within your  territory.  You may use your own
advertising materials subject to the approval of the Franchisor.  Franchisor may
provide  guidelines for conducting local  advertising and promotional  programs,
and any  deviations  from such  guidelines  shall be approved by  Franchisor  in
writing prior to use.
         B     As a REZcity  Plus  Franchisee,  you  must  contribute 1% of your
gross revenue to the REZcity.com National Advertising Fund. There are no REZcity
Plus Franchisees in the network that do not contribute to this Fund. We estimate
that during the coming  fiscal year,  about 35% of the Funds money will be spent
on  media,  20%  on the  production  of  advertising  materials,  20% on  public
relations,  10% on sponsorships  and 15% on  administration.  REZcity  Corporate
Headquarters does not have to spend a specified amount of Advertising Fund money
on advertising in your geographic area. We will prepare an annual accounting for
the Fund.  You may review  upon  request  once a year.  The  report  will not be
audited. Most of the money in the Advertising Fund will be spent during the year
in which it is  contributed.  Any unspent  money will be retained in the account
for use during the following year. This goes into the OC at Item 11 not here.

         C    Franchisee  is  required  to   advertise    continuously  in   the
classified or Yellow Pages of the local telephone directory. Franchisee shall do
so under the  listings  "Internet  Services"  or such other  listings  as deemed
appropriate by Franchisor.  When more than one (1) Franchised  Business serves a
metropolitan  area,   classified   advertisements   shall  list  all  Franchised
Businesses   operating   within  the   distribution   area  of  such  classified
directories.  Each  franchisee  shall  contribute its equal share in the cost of
such  advertisement.  If  required,  Franchisee  agrees to execute an  agreement


                                       8
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assigning such directory  listing to Franchisor,  utilizing a form prescribed by
Franchisor,  which shall become effective upon termination or expiration of this
Agreement.

         D     With  respect  to any  promotional   materials  or    advertising
permitted  hereunder,  Franchisee shall not use in advertising or any other form
of promotion, the copyrighted materials,  trademarks,  copyrights, service marks
or commercial symbols of Franchisor without  appropriate (C) or (R) registration
marks or the designations TM or SM where applicable.

XI.            PAYMENTS TO FRANCHISEE
               ----------------------

         A     Unless   Franchisor  and Franchisee  agree in writing  otherwise
for a specific account, Franchisor shall pay to Franchisee,  within fifteen (15)
days after the end of each  calendar  month and  according  to the  schedule  as
contained in Exhibit B to this  Agreement,  fees for the sale of each Service or
other Internet  advertising  services which are actually  received by Franchisor
from each franchisee,  Sales Consultant or directly from the end user based upon
sales  within  Franchisee's  Territory  (as  delineated  in  Exhibit  A) ("Sales
Commissions").

         Notwithstanding the foregoing:

               1. If Franchisee  has  failed  to perform in any material respect
any material  requirements  under the terms of this Agreement,  Franchisee shall
not be entitled to receive Sales  Commissions  until such deficiencies have been
corrected to Franchisor's reasonable satisfaction.

               2. Franchisee  shall not be entitled to share in or receive any
Sales  Commissions  based upon fees paid to Franchisor in the Territory prior to
the time Franchisee  completes the initial  training  program and commences full
operations of the Franchised Business.

         B     All  payments   under   this   Paragraph  shall  immediately  and
permanently  cease  after  the  expiration  or  termination  of this  Agreement,
although  Franchisee  shall receive all amounts which have accrued to Franchisee
as of the effective date of expiration or termination.

         C     Franchisor's  payments to Franchisee shall be based on amounts
actually  collected,  not on payments  accrued,  due or owing.  Franchisor shall
apply any payments received from to any past due indebtedness owed to Franchisor
or its affiliates.

         D.    Franchisee  shall  not be  allowed  to set  off  amounts  owed to
               Franchisor  for fees or other  amounts  due under this  Agreement
               against any monies owed to Franchisee by Franchisor,  which right
               of set off is hereby expressl