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                                                                    Exhibit 10.3

                           EDUCATIONAL HOLDINGS CORP.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

Article 1 - Purpose.
--------------------

    This 2000 Employee Stock Purchase Plan (the "Plan") is intended to encourage
stock ownership by all eligible employees of Educational Holdings Corp., a
Delaware corporation (the "Company"), and its participating subsidiaries (as
defined in Article 17) so that they may share in the growth of the Company by
acquiring or increasing their proprietary interest in the Company. The Plan is
designed to encourage eligible employees to remain in the employ of the Company
and its participating subsidiaries. The Plan is intended to constitute an
"employee stock purchase plan" within the meaning of Section 423(b) of the
Internal Revenue Code of 1986, as amended (the "Code").

Article 2 - Administration of the Plan.
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    The Plan may be administered by a committee appointed by the Board of
Directors of the Company (the "Committee"). The Committee shall consist of not
less than two members of the Company's Board of Directors. The Board of
Directors may from time to time remove members from, or add members to, the
Committee. Vacancies on the Committee, howsoever caused, shall be filled by the
Board of Directors. The Committee may select one of its members as Chairman, and
shall hold meetings at such times and places as it may determine. Acts by a
majority of the Committee, or acts reduced to or approved in writing by a
majority of the members of the Committee, shall be the valid acts of the
Committee.

    The interpretation and construction by the Committee of any provisions of
the Plan or of any option granted under it shall be final, unless otherwise
determined by the Board of Directors. The Committee may from time to time adopt
such rules and regulations for carrying out the Plan as it may deem best,
provided that any such rules and regulations shall be applied on a uniform basis
to all employees under the Plan. No member of the Board of Directors or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

    In the event the Board of Directors fails to appoint or refrains from
appointing a Committee, the Board of Directors shall have all power and
authority to administer the Plan. In such event, the word "Committee" wherever
used herein shall be deemed to mean the Board of Directors.

Article 3 - Eligible Employees
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    All employees of the Company or any of its participating subsidiaries whose
customary employment is more than 20 hours per week and for more than five
months in any calendar year and who have completed 90 days employment with the
Company shall be eligible to receive options under the Plan to purchase common
stock of the Company, and all eligible employees shall have the same rights and
privileges hereunder, except as otherwise set forth in the Plan or as required
under applicable tax laws. Persons who are eligible employees on the first
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business day of any Payment Period (as defined in Article 5) shall receive their
options as of such day. Persons who become eligible employees after any date on
which options are granted under the Plan shall be granted options on the first
day of the next succeeding Payment Period on which options are granted to
eligible employees under the Plan. In no event, however, may an employee be
granted an option if such employee, immediately after the option was granted,
would be treated as owning stock possessing five percent or more of the total
combined voting power or value of all classes of stock of the Company or of any
parent corporation or subsidiary corporation, as the terms "parent corporation"
and "subsidiary corporation" are defined in Section 424(e) and (f) of the Code.
For purposes of determining stock ownership under this paragraph, the rules of
Section 424(d) of the Code shall apply, and stock which the employee may
purchase under outstanding options shall be treated as stock owned by the
employee.

Article 4 - Stock Subject to the Plan.
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    The stock subject to the options under the Plan shall be shares of the
Company's authorized but unissued common stock, par value $.01 per share (the
"Common Stock"), or shares of Common Stock reacquired by the Company, including
shares purchased in the open market. The aggregate number of shares which may be
issued pursuant to the Plan is [___________], subject to adjustment as provided
in Article 12. If any option granted under the Plan shall expire or terminate
for any reason without having been exercised in full or shall cease for any
reason to be exercisable in whole or in part, the unpurchased shares subject
thereto shall again be available under the Plan.

Article 5 - Payment Period and Stock Options.
---------------------------------------------

    Payment Periods shall consist of the six-month periods commencing on
January 1 and July 1 and ending on June 30 and December 31 of each calendar
year.

    On the first business day of each Payment Period, the Company shall grant to
each eligible employee who is then a participant in the Plan an option to
purchase on the last day of such Payment Period, at the Option Price hereinafter
provided for, a maximum of [1,000] shares, on condition that such employee
remains eligible to participate in the Plan throughout the remainder of such
Payment Period. The participant shall be entitled to exercise the option so
granted only to the extent of the participant's accumulated payroll deductions
on the last day of such Payment Period. If the participant's accumulated payroll
deductions on the last day of the Payment Period would enable the participant to
purchase more than [1,000] shares except for the [1,000]-share limitation, the
excess of the amount of the accumulated payroll deductions over the aggregate
purchase price of the [1,000] shares shall be promptly refunded to the
participant by the Company, without interest. The Option Price per share for
each Payment Period shall be the lesser of (i) 85% of the average market price
of the Common Stock on the first business day of the Payment Period and (ii) 85%
of the average market price of the Common Stock on the last business day of the
Payment Period, in either event rounded up to the nearest cent. The foregoing
limitation on the number of shares subject to option and the Option Price shall
be subject to adjustment as provided in Article 12.

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    For purposes of the Plan, the term "average market price" on any date means
(i) the average (on that date) of the high and low prices of the Common Stock on
the principal national securities exchange on which the Common Stock is traded,
if the Common Stock is then traded on a national securities exchange; or (ii)
the last reported sale price (on that date) of the Common Stock on the Nasdaq
National Market, if the Common Stock is not then traded on a principal national
securities exchange; (iii) the average of the closing bid and asked prices last
quoted (on that date) by an established quotation service for over-the-counter
securities, if the Common Stock is not reported on the Nasdaq National Market;
or (iv) if the Common Stock is not publicly traded, the fair market value of the
Common Stock as determined by the Committee after taking into consideration all
factors which it deems appropriate, including, without limitation, recent sale
and offer prices of the Common Stock in private transactions negotiated at arm's
length.

    For purposes of the Plan, the term "business day" means a day on which there
is trading on the Nasdaq National Market or the aforementioned national
securities exchange, whichever is applicable pursuant to the preceding
paragraph; and if neither is applicable, a day that is not a Saturday, Sunday or
legal holiday in the state of Delaware.

    No employee shall be granted an option which permits the employee's right to
purchase stock under the Plan, and under all other Section 423(b) employee stock
purchase plans of the Company and any parent or subsidiary corporations, to
accrue at a rate which exceeds $25,000 of fair market value of such stock
(determined on the date or dates that options on such stock were granted) for
each calendar year in which such option is outstanding at any time. The purpose
of the limitation in the preceding sentence is to comply with Section 423(b)(8)
of the Code. If the participant's accumulated payroll deductions on the last day
of the Payment Period would otherwise enable the participant to purchase Common
Stock in excess of the Section 423(b)(8) limitation described in this paragraph,
the excess of the amount of the accumulated payroll deductions over the
aggregate purchase price of the shares actually purchased shall be promptly
refunded to the participant by the Company, without interest.

Article 6 - Exercise of Option.
-------------------------------

    Each eligible employee who continues to be a participant in the Plan on the
last day of a Payment Period shall be deemed to have exercised his or her option
on such date and shall be deemed to have purchased from the Company such number
of full shares of Common Stock reserved for the purpose of the Plan as the
participant's accumulated payroll deductions on such date shall pay for at the
Option Price, subject to the [1,000]-share limit of the option and the Section
423(b)(8) limitation described in Article 5. If the individual is not a
participant on the last day of a Payment Period, then he or she shall not be
entitled to exercise his or her option. Only full shares of Common Stock may be
purchased under the Plan. Unused payroll deductions remaining in a participant's
account at the end of a Payment Period by reason of the inability to purchase a
fractional share shall be carried forward to the next Payment Period.

Article 7 - Authorization for Entering the Plan.
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    An employee may elect to enter the Plan by filling out, signing and
delivering to the Company an authorization:

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         A. Stating the percentage to be deducted regularly from the employee's
     pay;

         B. Authorizing the purchase of stock for the employee in each Payment
     Period in accordance with the terms of the Plan; and

         C. Specifying the exact name or names in which stock purchased for the
     employee is to be issued as provided under Article 11 hereof.

Such authorization must be received by the Company at least ten days before the
first day of the next succeeding Payment Period and shall take effect only if
the employee is an eligible employee on the first business day of such Payment
Period.

    Unless a participant files a new authorization or withdraws from the Plan,
the deductions and purchases under the authorization the participant has on file
under the Plan shall continue from one Payment Period to succeeding Payment
Periods as long as the Plan remains in effect.

    The Company shall accumulate and hold for each participant's account the
amounts deducted from his or her pay. No interest shall be paid on these
amounts.

Article 8 - Maximum Amount of Payroll Deductions.
-------------------------------------------------

    An employee may authorize payroll deductions in an amount (expressed as a
whole percentage) not less than one percent (1%) but not more than ten percent
(10%) of the employee's total compensation, including base pay or salary and any
overtime, bonuses or commissions.

Article 9 - Change in Payroll Deductions.
-----------------------------------------

    Deductions may not be increased or decreased during a Payment Period.
However, a participant may withdraw in full from the Plan.

Article 10 - Withdrawal from the Plan.
--------------------------------------

    A participant may withdraw from the Plan (in whole but not in part) at any
time prior to the last day of a Payment Period by delivering a withdrawal notice
to the Company.

    To re-enter the Plan, an employee who has previously withdrawn must file a
new authorization at least ten days before the first day of the next Payment
Period in which he or she wishes to participate. The employee's re-entry into
the Plan becomes effective at the beginning of such Payment Period, provided
that he or she is an eligible employee on the first business day of the Payment
Period.

Article 11 - Issuance of Stock.
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    Certificates for stock issued to participants shall be delivered as soon as
practicable after each Payment Period by the Company's transfer agent.

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    Stock purchased under the Plan shall be issued only in the name of the
participant, or if the participant's authorization so specifies, in the name of
the participant and another person of legal age as joint tenants with rights of
survivorship.

Article 12 - Adjustments.
-------------------------

    Upon the happening of any of the following described events, a participant's
rights under options granted under the Plan shall be adjusted as hereinafter
provided:

         A. In the event that the shares of Common Stock shall be subdivided or
     combined into a greater or smaller number of shares or if, upon a
     reorganization, split-up, liquidation, recapitalization or the like of the
     Company, the shares of Common Stock shall be exchanged for other securities
     of the Company, each participant shall be entitled, subject to the
     conditions herein stated, to purchase such number of shares of Common Stock
     or amount of other securities of the Company as were exchangeable for the
     number of shares of Common Stock that such participant would have been
     entitled to purchase except for such action, and appropriate adjustments
     shall be made in the purchase price per share to reflect such subdivision,
     combination or exchange; and

         B. In the event the Company shall issue any of its shares as a stock
     dividend upon or with respect to the shares of stock of the class which
     shall at the time be subject to an option hereunder, each participant upon
     exercising such option shall be entitled to receive (for the purchase price
     paid upon such exercise) the shares as to which the participant is
     exercising his or her option and, in addition thereto (at no additional
     cost), such number of shares of the class or classes in which such stock
     dividend or dividends were declared or paid, and such amount of cash in
     lieu of fractional shares, as is equal to the number of shares thereof and
     the amount of cash in lieu of fractional shares, respectively, which the
     participant would have received if the participant had been the holder of
     the shares as to which the participant is exercising his or her option at
     all times between the date of the granting of such option and the date of
     its exercise.

    Upon the happening of any of the foregoing events, the class and aggregate
number of shares set forth in Article 4 hereof which are subject to options
which have been or may be granted under the Plan and the limitations set forth
in the second paragraph of Article 5 shall also be appropriately adjusted to
reflect the events specified in paragraphs A and B above. Notwithstanding the
foregoing, any adjustments made pursuant to paragraphs A or B shall be made only
after the Committee, based on advice of counsel for the Company, determines
whether such adjustments would constitute a "modification" (as that term is
defined in Section 424 of the Code). If the Committee determines that such
adjustments would constitute a modification, it may refrain from making such
adjustments.

    If the Company is to be consolidated with or acquired by another entity in a
merger, a sale of all or substantially all of the Company's assets or otherwise
(an "Acquisition"), the Committee or the board of directors of any entity
assuming the obligations of the Company hereunder (the "Successor Board") shall,
with respect to options then outstanding under the Plan, either (i) make
appropriate provision for the continuation of such options by arranging for the

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substitution on an equitable basis for the shares then subject to such options
either (a) the consideration payable with respect to the outstanding shares of
the Common Stock in connection with the Acquisition, (b) shares of stock of the
successor corporation, or a parent or subsidiary of such corporation, or (c)
such other securities as the Successor Board deems appropriate, the fair market
value of which shall not materially exceed the fair market value of the shares
of Common Stock subject to such options immediately preceding the Acquisition;
or (ii) terminate each participant's options in exchange for a cash payment
equal to the excess of (a) the fair market value on the date of the Acquisition,
of the number of shares of Common Stock that the participant's accumulated
payroll deductions as of the date of the Acquisition could purchase, at an
option price determined with reference only to the first business day of the
applicable Payment Period and subject to the [1,000]-share, Code Section
423(b)(8) and fractional-share limitations on the amount of stock a participant
would be entitled to purchase, over (b) the result of multiplying such number of
shares by such option price.

    The Committee or Successor Board shall determine the adjustments to be made
under this Article 12, and its determination shall be conclusive.

Article 13 - No Transfer or Assignment of Employee's Rights.
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    An option granted under the Plan may not be transferred or assigned and may
be exercised only by the participant.

Article 14 - Termination of Employee's Rights.
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    Whenever a participant ceases to be an eligible employee because of
retirement, voluntary or involuntary termination, resignation, layoff,
discharge, death or for any other reason, his or her rights under the Plan shall
immediately terminate, and the Company shall promptly refund, without interest,
the entire balance of his or her payroll deduction account under the Plan.
Notwithstanding the foregoing, eligible employment shall be treated as
continuing intact while a participant is on military leave, sick leave or other
bona fide leave of absence, for up to 90 days, or for so long as the
participant's right to re-employment is guaranteed either by statute or by
contract, if longer than 90 days.

    If a participant's payroll deductions are interrupted by any legal process,
a withdrawal notice shall be considered as having been received from the
participant on the day the interruption occurs.

Article 15 - Termination and Amendments to Plan.
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    Unless terminated sooner as provided below, the Plan shall terminate on the
tenth (10th) anniversary of the date that the Plan is approved by the Board. The
Plan may be terminated at any time by the Company's Board of Directors but such
termination shall not affect options then outstanding under the Plan. The Plan
shall terminate in any case when all or substantially all of the unissued shares
of stock reserved for the purposes of the Plan have been purchased. If at any
time shares of stock reserved for the purpose of the Plan remain available for
purchase but not in sufficient number to satisfy all then unfilled purchase
requirements, the available shares shall be apportioned among participants in
proportion to the amount of payroll deductions accumulated on

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behalf of each participant that would otherwise be used to purchase stock, and
the Plan shall terminate. Upon such termination or any other termination of the
Plan, all payroll deductions not used to purchase stock shall be refunded,
without interest.

     The Committee or the Company's Board of Directors may at any time wholly or
partially amend, alter or suspend the Plan. However, without approval of the
Company's shareholders given within twelve (12) months before or after the
action by the Board, no action of the Committee or the Company's Board of
Directors may, except as provided in paragraph 12, increase the limits imposed
in paragraph 4 on the maximum number of shares which may be issued under the
Plan or extend the term of the Plan under paragraph 15.

     The Company's Board of Directors shall obtain shareholder approval of any
Plan amendment to the extent necessary and desirable to comply with applicable
tax laws.

    No amendment, alteration, suspension or termination of the Plan shall impair
the rights of any participant, unless mutually agreed otherwise between the
participant and the Company, which agreement must be in writing and signed by
the participant and the Company. Termination of the Plan shall not affect the
Committee's ability to exercise the powers granted to it hereunder with respect
to options granted or awarded under the Plan prior to the date of such
termination.

Article 16 - Limits on Sale of Stock Purchased under the Plan.
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    The Plan is intended to provide shares of Common Stock for investment and
not for resale. The Company does not, however, intend to restrict or influence
any employee in the conduct of his or her own affairs. An employee may,
therefore, sell stock purchased under the Plan at any time the employee chooses,
subject to compliance with any applicable federal or state securities laws and
subject to any restrictions imposed under Article 21 to ensure that tax
withholding obligations are satisfied. THE EMPLOYEE ASSUMES THE RISK OF ANY
MARKET FLUCTUATIONS IN THE PRICE OF THE STOCK.

Article 17 - Participating Subsidiaries.
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    The term "participating subsidiary" shall mean any present or future
subsidiary of the Company, as that term is defined in Section 424(f) of the
Code, which is designated from time to time by the Board of Directors to
participate in the Plan. The Board of Directors shall have the power to make
such designation before or after the Plan is approved by the stockholders.

Article 18 - Optionees Not Stockholders.
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    Neither the granting of an option to an employee nor the deductions from his
or her pay shall constitute such employee as a stockholder of the shares covered
by an option until such shares have been actually purchased by the employee.

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Article 19 - Application of Funds.
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    The proceeds received by the Company from the sale of Common Stock pursuant
to options granted under the Plan shall be used for general corporate purposes.

Article 20 - Notice to Company of Disqualifying Disposition.
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    By electing to participate in the Plan, each participant agrees to notify
the Company in writing immediately after the participant transfers Common Stock
acquired under the Plan, if such transfer occurs within two years after the
first business day of the Payment Period in which such Common Stock was
acquired. Each participant further agrees to provide any information about such
a transfer as may be requested by the Company or any subsidiary corporation in
order to assist it in complying with the tax laws. Such dispositions generally
are treated as "disqualifying dispositions" under Sections 421 and 424 of the
Code, which have certain tax consequences to participants and to the Company and
its participating subsidiaries.

Article 21 - Withholding of Additional Income Taxes.
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     By electing to participate in the Plan, each participant acknowledges that
the Company and its participating subsidiaries are required to withhold taxes
with respect to the amounts deducted from the participant's compensation and
accumulated for the benefit of the participant under the Plan, and each
participant agrees that the Company and its participating subsidiaries may
deduct additional amounts from the participant's compensation, when amounts are
added to the participant's account, used to purchase Common Stock or refunded,
in order to satisfy such withholding obligations. Each participant further
acknowledges that when Common Stock is purchased under the Plan the Company and
its participating subsidiaries may be required to withhold taxes with respect to
all or a portion of the difference between the fair market value of the Common
Stock purchased and its purchase price, and each participant agrees that such
taxes may be withheld from compensation otherwise payable to such participant.
It is intended that tax withholding shall be accomplished in such a manner that
the full amount of payroll deductions elected by the participant under Article 7
shall be used to purchase Common Stock. However, if amounts sufficient to
satisfy applicable tax withholding obligations have not been withheld from
compensation otherwise payable to any participant, then, notwithstanding any
other provision of the Plan, the Company may withhold such taxes from the
participant's accumulated payroll deductions and apply the net amount to the
purchase of Common Stock, unless the participant pays to the Company, prior to
the exercise date, an amount sufficient to satisfy such withholding obligations.
Each participant further acknowledges that the Company and its participating
subsidiaries may be required to withhold taxes in connection with the
disposition of stock acquired under the Plan and agrees that the Company or any
participating subsidiary may take whatever action it considers appropriate to
satisfy such withholding requirements, including deducting from compensation
otherwise payable to such participant an amount sufficient to satisfy such
withholding requirements or conditioning any disposition of Common Stock by the
participant upon the payment to the Company or such subsidiary of an amount
sufficient to satisfy such withholding requirements. Notwithstanding any other
provision of the Plan, the number of shares of Common Stock which may be
withheld upon the exercise or vesting of any right under the Plan, or which may
be repurchased from the participant within six months after such shares were

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acquired by the participant from the Company, in order to satisfy the
participant's federal and state income and payroll tax liabilities with respect
to the exercise or vesting of the right shall be limited to the number of shares
which have a fair market value equal to the aggregate amount of such liabilities
based on the minimum statutory withholding rates for federal and state tax
income and payroll tax purposes that are applicable to such supplemental taxable
income.

Article 22 - Governmental Regulations.
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    The Company's obligation to sell and deliver shares of Common Stock under
the Plan is subject to the approval of any governmental authority required in
connection with the authorization, issuance or sale of such shares.

    Government regulations may impose reporting or other obligations on the
Company with respect to the Plan. For example, the Company may be required to
identify shares of Common Stock issued under the Plan on its stock ownership
records and send tax information statements to employees and former employees
who transfer title to such shares.

Article 23 - Governing Law.
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    The validity and construction of the Plan shall be governed by the laws of
Delaware, without giving effect to the principles of conflicts of law thereof.

Article 24 - Approval of Stockholders of the Company.
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    The Plan shall be submitted for the approval of the Company's shareholders
within twelve months after the date of the Board of Director's initial approval
of the Plan.

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