Document:

EXHIBIT 10.1

                              SETTLEMENT AGREEMENT

          Agreement made the 3rd day of October 2003, by and among Amaranth
Trading L.L.C., having an office at One American Lane, Greenwich, Connecticut
06831 ("Amaranth"), and EVCI Career Colleges Incorporated, having an office at
35 East Grassy Sprain Road, Yonkers, New York 10710 ("EVCI").

          Reference is made to the Series B Stock Purchase Agreement, dated as
of September 22, 2000, between Paloma Strategic Fund L.P. ("Paloma") and EVCI,
then known as Educational Video Conferencing, Inc., and to the Certificate of
Designations dated September 22, 2000, as amended and corrected (the
"Certificate of Designations"). References below to the "Purchase Agreement"
mean such Stock Purchase Agreement and all other agreements, documents and
instruments referred to therein and/or executed simultaneously therewith,
including any subsequent amendments and the Certificate of Designations, unless
the context requires otherwise.

          On October 1, 2000, Paloma transferred to Amaranth 100,000 Series B
Preferred Shares (the "B Shares") and Warrants to purchase 555,556 shares of
EVCI's common stock ("Common Stock"), and Amaranth succeeded to Paloma's rights
under the Purchase Agreement. Such Warrants expired unexercised on September 22,
2003.

          Also on September 22, 2003, pursuant to the Certificate of
Designations the B Shares were automatically converted into shares of Common
Stock. Disputes have arisen between EVCI and Amaranth as to the number of shares
of Common Stock Amaranth has the right to receive and EVCI has the obligation to
issue now or in the future and as to Amaranth's right to receive and EVCI's
obligation to pay dividends on the B Shares.

          EVCI and Amaranth desire to fully and finally settle all such disputes
pursuant to this Agreement.
<PAGE>

          Accordingly, in consideration of the mutual promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

          1. The closing (the "Closing") shall be held on October 10, 2003,
commencing at 12:00 noon at the offices of Fischbein Badillo Wagner Harding, 909
Third Avenue, New York, New York 10022 (facsimile No. 212-644-7485). If the
Closing does not occur on or prior to 1:00 p.m. on such date, this Agreement
shall become null and void AB INITIO. At the Closing, the following shall occur:

               (a) EVCI shall deliver to Amaranth a certificate or certificates
for a total of 950,000 shares of Common Stock (the "950,000 Shares") registered
in the name(s) designated by Amaranth, such shares having been issued in respect
of the conversion of certain B Shares held by Amaranth pursuant to the
Certificate of Designations. Such certificates shall be unlegended, and the
950,000 Shares shall not be subject to any restrictions on transfer. On the date
hereof, outside legal counsel to Amaranth has provided EVCI with an opinion
acceptable to EVCI that Amaranth can sell all of the 950,000 Shares pursuant to
Rule 144(k) under the Securities Act of 1933, as amended (the "Act").

               (b) EVCI shall pay Amaranth $999,600 by wire transfer to an
account designated in writing by Amaranth prior to the Closing. Upon Amaranth's
receipt of such payment and of the 950,000 Shares, EVCI shall be deemed to have
paid and fully satisfied all claims Amaranth may have relating to dividends on
the B Shares (the "Dividend Claim") and all other claims Amaranth may have
relating to 32,062.5 of the B Shares.

                                       2
<PAGE>

               (c) Amaranth shall transfer to EVCI and/or EVCI's designees
(each, a "Designee" and, collectively, the "Designees") all of Amaranth's right,
title and interest in and to all claims it may have to demand and receive shares
of Common Stock (but not any dividends on the B Shares) upon or in connection
with the automatic conversion of 39,337.50 of the B Shares (the "Share Claim").
Amaranth's transfer of the Share Claim shall be made by executing in blank the
number of Transfer Instruments, requested in writing by EVCI prior to the
Closing, in the form(s) of Exhibit A attached to this Agreement (each, a
"Transfer Instrument"). Simultaneously therewith, EVCI shall cause to be wire
transferred to an account designated in writing by Amaranth prior to the Closing
the sum of $2,500,000 and shall deliver to Amaranth signed counterpart Transfer
Instruments from each transferee, including EVCI if it is a transferee. Upon
completion of the transactions contemplated above in this Section 1(c), EVCI
shall be deemed to have paid and fully satisfied all claims Amaranth may have
with respect to the Share Claim. In the event a counterpart has been delivered
to EVCI by facsimile, EVCI will use reasonable efforts to obtain and deliver to
Amaranth an original signed copy promptly following the Closing.

               (d) EVCI, on the one hand, and Amaranth and Amaranth Fund L.P.,
formerly known as Paloma Strategic Fund, L.P. ("Amaranth Fund"), on the other
hand, shall each deliver to the other a general release releasing the other and
their predecessors and affiliates (as defined in Section 2(d) hereof) and their
and such predecessors' and such affiliates' respective officers, directors,
employees, agents, members and partners, through the date of the Closing. Such
releases shall be in the respective forms of Exhibit B-1 and B-2 attached to
this Agreement. Amaranth shall cause Amaranth Fund to deliver such general
release.

               (e) Notwithstanding anything to the contrary in this Section 1,
all of the transactions contemplated by this Section 1 shall be deemed to have
occurred simultaneously, and if any of such transactions does not occur, all of
such transactions shall be null and void.

                                       3

<PAGE>

          2. Amaranth represents and warrants to EVCI as follows, which
representations and warranties shall be true and correct on the date of the
Closing and, which, other than Section 2(d) below, shall inure to the benefit of
each Designee (but not any subsequent transferee or any other person or entity):

               (a) Amaranth is a limited liability company duly organized,
validly existing and in good standing under the laws of Delaware.

               (b) Amaranth has full power and authority to enter into this
Agreement and to carry out the transactions contemplated hereby. The execution,
delivery and consummation of this Agreement have been duly and validly
authorized by all necessary action on the part of Amaranth. This Agreement is a
valid and binding agreement of Amaranth enforceable in accordance with its terms
except that (i) such enforcement may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors' rights; and (ii) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought.

               (c) Amaranth has the complete and unrestricted power to enter
into this Agreement and to consummate the transactions contemplated hereby,
including accepting and acknowledging full satisfaction of the Dividend Claim
and transferring and delivering the Share Claim to EVCI and/or the Designees in
accordance with this Agreement. The Share Claim will be transferred pursuant to
the Transfer Instrument(s) free and clear of any and all liens, charges, claims,
pledges and encumbrances of any kind whatsoever specifically binding upon or
relating to the assets or properties of Amaranth or its affiliates. No such
affiliate has any right, claim, cause of action or remedy of any kind against
EVCI or any of its affiliates.

                                       4
<PAGE>

               (d) The issuance of the 950,000 Shares to Amaranth will not
result in Amaranth and its "affiliates," as defined in Rule 144 of the Act,
being deemed the owner of more than 9.99% of the outstanding shares of Common
Stock of EVCI, assuming that there are at least 9,709,710 shares of Common Stock
outstanding immediately after giving effect to such issuance.

          3. EVCI represents and warrants to Amaranth as follows, which
representations and warranties shall be true and correct on the date of the
Closing:

               (a) EVCI is duly organized, validly existing and in good standing
under the laws of Delaware.

               (b) EVCI has full power and authority to enter into this
Agreement and to carry out the transactions contemplated hereby. The execution,
delivery and consummation of this Agreement have been duly and validly
authorized by all necessary action on the part of EVCI. This Agreement is a
valid and binding agreement of EVCI enforceable in accordance with its terms
except that (i) such enforcement may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors' rights and (ii) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought. No affiliate of EVCI has any right claim, cause of action or
remedy of any kind against Amaranth or any of its affiliates.

               (c) Upon issuance, the 950,000 Shares will be fully paid,
non-assessable and free of any statutory or contractual preemptive or similar
rights.

                                       5
<PAGE>

               (d) To the extent applicable, any offers and sales of the Share
Claim and any securities issued in connection with the settlement thereof have
been made in compliance with the Act, and applicable state securities laws, and
EVCI has made such inquiries as it deemed appropriate in its reasonable
discretion in connection with the foregoing determination.

               (e) Each Designee has represented to EVCI, which representations
and warranties shall be true and correct on the date of the Closing, that:

                    (i) It is an "accredited investor," as that term is defined
in Regulation D under the Act, and that it is able to fend for itself, can bear
the economic risk of its investment, and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and
risks of an investment in the Share Claim and any securities of EVCI that it
receives in connection with the settlement thereof.

                    (ii) Any securities to be issued by EVCI in satisfaction of
the Share Claim are being acquired by it solely for its own account and not for
resale, assignment, distribution, subdivision or fractionalization thereof
except as permitted by applicable securities laws.

                    (iii) It has received from EVCI all information that it
considers necessary or appropriate for deciding whether to purchase the Share
Claim and any securities issued by EVCI in satisfaction of the Share Claim and,
that, other than as expressly set forth in Section 2 hereof, it has not relied
on Amaranth or any of its affiliates or any of their respective directors,
officers, employees, members or partners (collectively, "Amaranth Persons") for
any information whatsoever.

                                       6
<PAGE>

                    (iv) IT AGREES AND ACKNOWLEDGES THAT THE SHARE CLAIM IS
BEING SOLD WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER (EXPRESS OR
IMPLIED), EXCEPT AS SPECIFICALLY SET FORTH IN SECTION 2 HEREOF, AND THAT, EXCEPT
FOR SUCH REPRESENTATIONS AND WARRANTIES, THE SALE OF THE SHARE CLAIM IS BEING
MADE BY AMARANTH ON AN "AS IS, WHERE IS" BASIS, WITH ALL DEFECTS AND IMPAIRMENTS
OF ANY KIND OR NATURE, WHETHER KNOWN OR UNKNOWN, MATURE OR LATENT, WHICH MAY
AFFECT THE VALUE, AMOUNT, PRIORITY, VALIDITY, ENFORCEABILITY, ALLOWABILITY OR
RECOVERY OR ANY OTHER RIGHT OR REMEDY IN RESPECT OF THE SHARE CLAIM, AND EACH
DESIGNEE ASSUMES ALL RISKS RELATING THERETO, AND EXPRESSLY AGREES THAT IT SHALL
HAVE NO RIGHT, CLAIM, CAUSE OF ACTION OR REMEDY AGAINST ANY AMARANTH PERSON IN
RESPECT THEREOF

          4. In the event this Agreement becomes null and void, neither this
Agreement nor any of the communications or negotiations relating to this
Agreement shall be used by either Amaranth or EVCI for any purpose in any
litigation.

          5. This Agreement (and any Transfer Instrument) shall be governed by
and interpreted in accordance with the laws of the State of New York without
regard to the principles of conflict of laws.

          6. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party.

                                       7
<PAGE>

          7. This Agreement supercedes all other prior oral or written
agreements among the parties, their affiliates and persons acting on their
behalf with respect to the matters discussed herein, and this Agreement and the
documents referenced herein contain the entire understanding of the parties with
respect to the matters covered herein and therein. No provisions of this
Agreement may be waived or amended other than by an instrument in writing signed
by the party to be charged with enforcement.

          8. This Agreement (and any Transfer Instrument) shall be binding upon
and inure to the benefit of the parties and their respective successors and
assigns, including each Designee.

          9. Each party (including any Designee) shall do and perform, or cause
to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents,
as the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement (including without limitation the
second sentence of Section 1(a)) and the consummation of the transactions
contemplated hereby.

          10. The parties hereto (including any Designee) expressly submit
themselves to the exclusive jurisdiction of the state and federal courts of New
York in any action or proceeding relating to this Agreement or any of the other
documents contemplated hereby or any of the transactions contemplated hereby or
thereby. Each party hereby irrevocably waives, to the fullest extent permitted
by law, any objection that it may now or hereafter have to the laying of venue
of any such action, suit or proceeding brought in such a court and any claim
that any such action, suit or proceeding brought in such a court has been
brought in an inconvenient forum.

                                       8
<PAGE>

          11. The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.

          12. EVCI shall not make any written statement concerning this
Agreement, the settlement or any other transaction contemplated hereby
(including, without limitation, in any filing under the Securities Act or the
Securities Exchange Act of 1934, as amended) without the prior written approval
of Amaranth, which approval Amaranth shall not unreasonably withhold or delay;
provided, that, Amaranth consents to (i) EVCI's references to this Agreement and
the provisions of Section 3(e) hereof in its communications and agreements with
Designees, (ii) the inclusion in its entirety of the language attached hereto as
Exhibit C in a press release or in any public filing of EVCI made pursuant to
the federal securities laws as and for the description of the Settlement
Agreement and the transactions consummated thereunder; PROVIDED, HOWEVER, EVCI
may include additional disclosure of transactions with the Designees, in its
discretion, so long as any such disclosure concerning a Designee does not refer
to Amaranth or any other holder of B Shares (by name or generically), any
dispute between any such persons and EVCI or this settlement agreement and (iii)
references (consistent with clause (ii) above) to, and filing of, the Settlement
Agreement as an exhibit to EVCI's filings under the Securities Act and
Securities Exchange Act of 1934, as amended. EVCI and Amaranth agree not to
disparage the other in any future statements regarding their relationship prior
to or in connection with the Settlement Agreement.

                     [ COUNTERPART SIGNATURE PAGES FOLLOW. ]

                                       9
<PAGE>

                              SETTLEMENT AGREEMENT
                           COUNTERPART SIGNATURE PAGE

                             AMARANTH TRADING L.L.C.

                                       By: Amaranth Advisors L.L.C.
                                             (Managing Member)

                                       By: /s/ Nicholas M. Maounis
                                          ------------------------------------
                                          Nicholas M. Maounis
                                          Managing Member

                                       EVCI CAREER COLLEGES INCORPORATED

                                       By: /s/ Dr. John J. McGrath
                                          ------------------------------------
                                          Dr. John J. McGrath
                                          Chief Executive Officer and President

<PAGE>
                                                                       Exhibit A

                               TRANSFER INSTRUMENT

          Pursuant to a Settlement Agreement (the "Settlement Agreement") dated
the ____ day of October, 2003, between Amaranth Trading L.L.C. ("Amaranth") and
EVCI Career Colleges Incorporated ("EVCI"), Amaranth does hereby transfer to
______________________ ________________________________________________________
(the "Transferee") all of Amaranth's right, title and interest in and to the
portion of the Share Claim, as defined in the Settlement Agreement, relating to
_________________________ shares of EVCI's common stock (the "Transfer"). To the
extent the Transferee is not EVCI, the Transferee agrees and acknowledges that
it is a "Designee" within the meaning of the Settlement Agreement.

          The Transfer is being made free and clear of any and all liens,
charges, claims, pledges and encumbrances of any kind whatsoever specifically
binding upon or relating to the assets or properties of Amaranth or its
affiliates.

          By accepting the Transfer, the Transferee is acknowledging that it has
made an independent investigation of EVCI and has not relied upon Amaranth for
any purpose in connection with its decision to acquire a portion of the Share
Claim or any securities that may be issued by EVCI in connection with the
settlement of the Share Claim, except for the Transferee's reliance on this
instrument and as beneficiary of Amaranth's representations and warranties that
are expressly stated in the Settlement Agreement. Except as expressly
contemplated in the Settlement Agreement, no representations and warranties are
made by Amaranth to or for the benefit of the Transferee. Without limiting the
foregoing, the Transferee agrees and acknowledges that it is acquiring the Share
Claim subject to the limitations set forth in clause (e)(iv) of Section 3 of the
Settlement Agreement.

<PAGE>

          Furthermore, the Transferee hereby makes to Amaranth all of the
representations and warranties set forth in clauses (e)(i) through (iii) of
Section 3 of the Settlement Agreement.

Dated: ___________________________

                                         AMARANTH TRADING L.L.C.

                                         By: Amaranth Advisors L.L.C.
                                               (Managing Member)

                                         By:
                                            ---------------------------------
                                             Nicholas M. Maounis
                                             Managing Member

AGREED AND ACKNOWLEDGED:

IF AN ENTITY: Name of Entity:

By:
   -------------------------------
   Name:
   Title:

IF AN INDIVIDUAL*:

Signature:
          ------------------------

Name:
     -----------------------------
     (print)

__________________________
          *If joint tenants or tenants in common, each must complete and sign
this Signature Page.

<PAGE>

                                                                     Exhibit B-1
                                 GENERAL RELEASE

          In consideration of the mutual agreements of EVCI Career Colleges
Incorporated ("EVCI") and Amaranth Trading L.L.C. ("Amaranth") set forth in the
Settlement Agreement dated October __, 2003 (the "Settlement Agreement") and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, EVCI, and its heirs, executors, administrators, successors
and assigns (collectively, the "RELEASORS"), do hereby release and discharge
Amaranth, Amaranth Fund L.P., formerly known as Paloma Strategic Fund L.P.
("Amaranth Fund"), and their respective affiliates (as that term is defined in
Rule 144 under the Securities Act of 1933, as amended) and all of their
respective officers, directors, employees, agents, members and partners
(Amaranth, Amaranth Fund, such affiliates, officers, directors, employees,
agents, members and partners being collectively referred to as "RELEASEES") and
each such Releasee's heirs, executors, administrators, successors and assigns
from all actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
liabilities, agreements, promises, variances, trespasses, damages, judgments,
extents, executions, claims, and demands whatsoever, whether known or unknown,
in law, admiralty or equity (including, without limitation, with respect to the
Purchase Agreement, as that term is defined in the Settlement Agreement), which
against Releasees and Releasees' heirs, executors, administrators, successors
and assigns Releasors ever had, now have or hereafter can, shall or may have,
for, upon, or by reason of any matter, cause or thing whatsoever from the
beginning of the world to the day of the date of this General Release; PROVIDED,
HOWEVER, that there are excluded from this General Release any claims relating
to or arising out of the Settlement Agreement or the following portions of the
Amended and Restated Registration Rights Agreement dated September 27, 2000, to
which EVCI and the purchasers of EVCI's Series B 7% Convertible Preferred Stock
are parties: Sections 3 and 4, the portion of the first sentence of Section 7(a)
that ends after "hereto" and before the parenthesis and Sections 7(b), 7(c),
7(d), except for the reference to the Purchase Agreement, and 7(g).

          This General Release may not be changed orally.

          IN WITNESS WHEREOF, the Releasors have caused this General Release to
be executed by a duly authorized signatory as of October ___, 2003.

                                   EVCI CAREER COLLEGES INCORPORATED

                                   By:
                                      ---------------------------------------
                                        Dr. John McGrath
                                        President and Chief Executive Officer

<PAGE>

State of           )
                    ss:
County of          )

On this ______ day of _____________, 2003, the undersigned
___________________________ personally appeared before me, known to me or proved
to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the entity
upon behalf of which the individual(s) acted, executed the instrument.

                                         ------------------------------------
                                         (signature and capacity of individual
                                         taking acknowledgment)

<PAGE>
                                                                     Exhibit B-2

                                 GENERAL RELEASE

          In consideration of the mutual agreements of EVCI Career Colleges
Incorporated ("EVCI") and Amaranth Trading L.L.C. ("Amaranth") set forth in the
Settlement Agreement dated October ___, 2003 (the "Settlement Agreement") and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Amaranth and Amaranth Fund L.P., formerly known as
Paloma Strategic Fund L.P. and their respective heirs, executors,
administrators, successors and assigns (collectively, "RELEASORS"), do hereby
release and discharge EVCI and its predecessors and affiliates (as that term is
defined in Rule 144 under the Securities Act of 1933, as amended) and its and
such predecessors' and affiliates' respective officers, directors, employees,
agents, members and partners (EVCI and such predecessors and affiliates and
their respective officers, directors, employees, agents, members and partners
being collectively referred to as "RELEASEES") and each such Releasee's heirs,
executors, administrators, successors and assigns from all actions, causes of
action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills,
specialties, covenants, contracts, controversies, liabilities, agreements,
promises, variances, trespasses, damages, judgments, extents, executions,
claims, and demands whatsoever, whether known or unknown, in law, admiralty or
equity (including, without limitation, with respect to the Purchase Agreement,
as that term is defined in the Settlement Agreement), which against Releasees
and Releasees', heirs, executors, administrators, successors and assigns and
Releasors ever had, now have or hereafter can, shall or may have, for, upon, or
by reason of any matter, cause or thing whatsoever from the beginning of the
world to the day of the date of this General Release; PROVIDED, HOWEVER, that
there are excluded from this General Release any claims relating to or arising
out of the Settlement Agreement or the following portions of the Amended and
Restated Registration Rights Agreement dated September 27, 2000, to which EVCI
and the purchasers of EVCI's Series B 7% Convertible Preferred Stock are
parties: Sections 3 and 4, the portion of the first sentence of Section 7(a)
that ends after "hereto" and before the parenthesis and Sections 7(b), 7(c),
7(d), except for the reference to the Purchase Agreement, and 7(g).

          This General Release may not be changed orally.

          IN WITNESS WHEREOF, the Releasors have caused this General Release to
be executed by duly authorized signatories as of October ___, 2003.

                                       AMARANTH TRADING L.L.C.

                                       By: Amaranth Advisors L.L.C.
                                           (Managing Member)

                                       By:
                                          -------------------------------------
                                          Nicholas M. Maounis
                                          Managing Member

                                       AMARANTH FUND L.P.

                                       By: Amaranth Advisors L.L.C.
                                           (Attorney-in-Fact)

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

<PAGE>

State of          )
                      ss:
County of         )

On this ______ day of _____________, 2003, the undersigned
___________________________ personally appeared before me, known to me or proved
to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the entity
upon behalf of which the individual(s) acted, executed the instrument.

                                      ------------------------------------
                                      (signature and capacity of individual
                                      taking acknowledgment)

State of          )
                      ss:
County of         )

On this ______ day of _____________, 2003, the undersigned
___________________________ personally appeared before me, known to me or proved
to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the entity
upon behalf of which the individual(s) acted, executed the instrument.

                                      ------------------------------------
                                      (signature and capacity of individual
                                      taking acknowledgment)

<PAGE>

                                                                       EXHIBIT C

        See Exhibit 99 of the Form 8-K.EXHIBIT 10.2

                                     FORM OF

             SHARE CLAIM PURCHASE AND REGISTRATION RIGHTS AGREEMENT

EVCI Career Colleges Incorporated
35 East Grassy Sprain Road
Suite 200
Yonkers, New York 10710

Ladies and Gentlemen:

          This will confirm the agreement of the undersigned ("Purchaser") to
purchase the portion (the "Share Claim Portion") of the "Share Claim," as that
term is defined in the Settlement Agreement between Amaranth Trading L.L.C.
("Amaranth") and EVCI Career Colleges Incorporated ("EVCI") dated October 3,
2003 (the "Settlement Agreement"). The Share Claim Portion entitles Purchaser to
receive the number of newly issued shares of common stock of EVCI that are
indicated on the Signature Page to this Agreement (the "Signature Page").
Purchaser acknowledges that it is a "Designee," as that term is defined in the
Settlement Agreement. EVCI represents and warrants that it has delivered a true
and complete copy of the Settlement Agreement to Purchaser, receipt of which
Purchaser hereby acknowledges..

     Section 1. PURCHASE OF THE SHARE CLAIM PORTION

          1.1 PURCHASE. Purchaser agrees to purchase the Shares Claim Portion at
the Closing, referred to below. The full purchase price (the "Purchase Price")
for the Share Claim Portion (and , accordingly, the Shares) is indicated on the
Signature Page. The Purchase Price has been or is, contemporaneously herewith,
being wire transferred to the non-interest bearing IOLA account of Fischbein
Badillo Wagner Harding ("FBWH") at Commerce Bank, 1350 Avenue of the Americas,
New York, New York 10019 in accordance with wire instructions previously
provided to Purchaser. Purchaser is also delivering to FBWH a completed and
signed copy of the Signature Page and a copy of the signature page (the "TI
Acknowledgement Page") of the Transfer Instrument (Exhibit A to the Settlement
Agreement) signed by Purchaser where indicated below "AGREED AND ACKNOWLEDGED."

          1.2 ESCROW. The Purchase Price, Signature Page and TI Acknowledgement
Page (collectively, the "Closing Items") will be held in escrow by FBWH until
the Closing under the Settlement Agreement (the "Closing"), presently scheduled
for October 9, 2003, or until the Settlement Agreement becomes null and void AB
INITIO by its terms, whichever happens first. If the Closing does not occur, the
Closing Items will be returned to Purchaser promptly (without interest on or
deduction from the Purchase Price), in accordance with instructions provided by
Purchaser, whereupon this Agreement shall become null and void AB INITIO.

          Purchaser acknowledges that EVCI, in its sole discretion, will
determine the portion, if any, of the Share Claim (and, therefore, the Shares)
Purchaser can acquire, provided such amount does not exceed the number of Shares
and Purchase Price specified on the Signature Page. Purchaser also acknowledges
that the Purchase Price includes an amount for the payment of flotation costs of
EVCI in connection with its negotiation, preparation and Closing of the
Settlement Agreement and this Agreement.

<PAGE>

          1.3 CERTIFICATE. Upon Purchaser's purchase of the Share Claim Portion,
EVCI will deliver a certificate registered in Purchaser's name representing the
Shares. Upon such delivery the Share Claim Portion shall be deemed fully
satisfied and extinguished.

     Section 2. PURCHASER'S REPRESENTATIONS AND WARRANTIES AND ACKNOWLEDGMENT
AND AGREEMENT

          2.1 REPRESENTATIONS AND WARRANTIES. In order to induce Amaranth to
sell and deliver the Share Claim Portion to Purchaser at the Closing and to
induce EVCI to instruct its transfer agent to issue the Shares for delivery at
or promptly after the Closing, Purchaser represents and warrants to EVCI (all of
which representations and warranties shall be true and correct on the date of
the Closing and, those representations and warranties, in Sections 2.1(b), (c),
and (d), shall also inure to the benefit of Amaranth) that:

               (a) Purchaser has full power and authority to enter into this
Agreement and to carry out the purchase of the Share Claim Portion. The
execution, delivery and consummation of this Agreement have been duly and
validly authorized by all necessary action on the part of Purchaser. This
Agreement is a valid and binding agreement of Purchaser enforceable in
accordance with its terms except that (i) such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors' rights; and (ii) the remedy of
specific performance and injunctive and other forms of equitable relief may be
subject to equitable defenses and to the discretion of the court before which
any proceeding therefor may be brought.

               (b) Purchaser is an "accredited investor" as that term is defined
in Regulation D under the Securities Act of 1933, as amended (the "Securities
Act"), and that Purchaser is able to fend for itself, can bear the economic risk
of its investment, and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of an
investment in the Share Claim and any securities of EVCI that it receives in
connection with the settlement thereof.

               (c) Any securities to be issued by EVCI in satisfaction of the
Share Claim are being acquired by Purchaser solely for its own account and not
for the resale, assignment, distribution, subdivision or fractionalization
thereof, except as permitted by applicable securities laws.

               (d) Purchaser has received from EVCI all information that it
considers necessary or appropriate for deciding whether to purchase the Share
Claim and any securities issued by EVCI in satisfaction of the Share Claim and,
that, other than as expressly set forth in Section 2 of the Settlement
Agreement, it has not relied on Amaranth or any of its affiliates or any of
their respective directors, officers, employees, members or partners for any
information whatsoever.

               (e) Purchaser is relying upon its own counsel, accountant and/or
business advisor(s) concerning legal, tax, business and related aspects of its
purchase of the Share Claim Portion and the issuance of the Shares in
satisfaction hereof.

                                       2
<PAGE>

               (f) Purchaser understands that Purchaser's purchase of the Share
Claim Portion and EVCI's issuance of the Shares in satisfaction thereof have not
been registered under the Securities Act, or any state securities laws in
reliance on exemptions from such registration, that, unless the Shares are
resold pursuant to the Registration Statement referred to in Section 3.1, the
Shares cannot be resold or otherwise disposed of unless an exemption from
registration is available and, further, that the Certificate(s) for the Shares
will bear a restrictive legend to such effect. Purchaser also understands that
it will have no rights to require that the Shares be registered under the
Securities Act or any state securities laws, except as provided in Section 3.

               (g) The issuance of the Shares to Purchaser will not result in
Purchaser and its "affiliates," as defined in Rule 144 of the Securities
Exchange Act of 1934, being deemed the owner of more than 9.99% of outstanding
shares of common stock of EVCI, assuming that there are at least 10,400,000
shares of Common Stock outstanding immediately after giving effect to such
issuance. Purchaser agrees that Purchaser and its affiliates will not alone or
as a part of a "group," as that term is used in Regulation 13D-G under the
Securities Exchange Act of 1934, at any time after the issuance of the Shares
own more than 9.99% of EVCI's outstanding common stock unless otherwise
authorized by EVCI's board of directors and agreed to in writing by EVCI.

          2.2 ACKNOWLEDGMENT AND AGREEMENT. Purchaser acknowledges and agrees
that it is acquiring the Share Claim Portion subject to the limitations in
clause (e)(iv) of Section 3 of the Settlement Agreement.

     Section 3. REGISTRATION RIGHTS

          3.1 CONTINUING REGISTRATION. EVCI represents, warrants and covenants:

               (a) The resale of the Shares has been registered pursuant to a
currently effective Form S-3, Registration No. 333-48934 (the "Registration
Statement").

               (b) Promptly after Purchaser purchases the Shares, EVCI shall
prepare and file with the Securities and Exchange Commission ("SEC") a
supplement to the final prospectus dated January 18, 2001, included in the
Registration Statement (the "Prospectus") in order to include Purchaser as a
selling stockholder in the Prospectus, subject to Purchaser's compliance with
Section 3(k).

               (c) EVCI shall use its best efforts to cause the Registration
Statement to remain effective until the earlier of the date (i) as of which
Purchaser may sell all of the Shares without restriction pursuant to Rule 144(k)
and (ii) when Purchaser shall have sold all of the Shares.

               (d) EVCI shall prepare and file with the SEC such amendments and
supplements to the Registration Statement and the Prospectus as may be necessary
to keep the Registration Statement continuously effective, pursuant to Rule 415,
for the period specified in Section 3(c) and comply with the provisions of the
Securities Act with respect to the disposition of all the Shares covered by the
Registration Statement in accordance with Purchaser's intended method of
disposition set forth in the Registration Statement for such period; PROVIDED,
HOWEVER, notwithstanding the foregoing provisions of this Section 3(d), EVCI may

                                       3
<PAGE>

suspend the use of the Registration Statement for a period not to exceed 60 days
(whether or not consecutive) in any 12-month period if EVCI's Board of Directors
determines in good faith (after consulting with EVCI's counsel and, if
appropriate, its independent auditors) that because of valid and material
business developments (which, under applicable securities laws, would be
required to be disclosed in an amendment to the Prospectus), including pending
mergers or other business combination transactions, the planned acquisition or
divestiture of assets, pending material corporate developments and similar
events, it is advisable to suspend such use and, prior to or contemporaneously
with suspending such use, EVCI provides Purchaser with written notice of such
suspension, which notice need not specify the nature of the event giving rise to
such suspension. At the end of any such suspension period, EVCI shall provide
Purchaser with written notice of the termination of such suspension.

               (e) EVCI shall permit Purchaser to review and comment upon the
Registration Statement and, at least three days prior to their filing with the
SEC, upon all future amendments and supplements thereto. After Purchaser reviews
the Registration Statement in the form declared effective on January 18, 2001,
Purchaser may request that EVCI file an amendment or supplement thereto for
reasons specified in writing by Purchaser and reasonably acceptable to EVCI and
its counsel.

               (f) EVCI shall furnish to Purchaser such number of copies of the
Registration Statement and the Prospectus as Purchaser reasonably may request in
order to facilitate the public sale or other disposition of the Shares pursuant
to the Prospectus.

               (g) EVCI shall use its best efforts to register or qualify the
Shares covered by the Registration Statement under the securities or "blue sky"
laws of such jurisdictions as Purchaser reasonably shall request; PROVIDED,
HOWEVER, EVCI shall not for any such purpose be required to qualify generally to
transact business as a foreign corporation in any jurisdiction where it is not
so qualified or to consent to general service of process in any such
jurisdiction.

               (h) While a Prospectus relating to the Shares is required to be
delivered under the Securities Act, EVCI shall promptly notify Purchaser of the
happening of any event of which EVCI has knowledge and as a result of which the
Prospectus, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing.

               (i) Purchaser agrees that, upon receipt of any notice from EVCI
of the happening of any event of the kind specified in Section 3(h), Purchaser
will immediately discontinue disposition of the Shares pursuant to the
Prospectus until Purchaser's receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(h), and, if so directed by EVCI,
Purchaser will deliver to EVCI all copies, other than permanent file copies then
in Purchaser's possession, of the most recent Prospectus at the time of receipt
of such notice.

               (j) EVCI shall make available for inspection by Purchaser, and
any attorney, accountant or other agent retained by Purchaser, all financial and
other records, pertinent corporate documents and properties of EVCI, and cause
EVCI's officers, directors and employees to supply all information reasonably
requested by Purchaser or such attorney, accountant or agent in connection with
the Registration Statement, provided appropriate confidentiality agreements are
first received by EVCI.

               (k) Purchaser shall furnish to EVCI in writing such information
with respect to it and the proposed distribution by it, as reasonably shall be
necessary and reasonably requested by EVCI's counsel in writing, in order to
assure compliance with applicable federal and state securities laws.

          3.2 EXPENSES. All expenses incurred by EVCI in complying with Section
3.1 including, without limitation, all registration and filing fees, printing
expenses, fees and disbursements of counsel and independent public accountants
for EVCI, fees and expenses (including counsel fees) incurred in connection with
complying with state securities or "blue sky" laws, Nasdaq listing fees, fees of
transfer agents and registrars, and costs of issuing the Shares, but excluding
any Selling Expenses and fees and disbursements of any counsel, or any
accountant or agent of Purchaser, are called "Registration Expenses." All
underwriting discounts and selling commissions applicable to the sale of the
Shares are called "Selling Expenses."

          EVCI will pay all Registration Expenses and the Purchaser will pay all
Selling Expenses.

          3.3 INDEMNIFICATION.

               (a) In connection with the registration and sale of the Shares
pursuant to the Registration Statement, to the fullest extent permitted by law,
EVCI will indemnify and hold harmless Purchaser together with Purchaser's
officers, directors, members, partners, employees and agents, and each other
person, if any, who controls Purchaser within the meaning of the Securities Act,
against any losses, claims, damages or liabilities, joint or several, to which
Purchaser and Purchaser's officers, directors, members, partners, employees and
agents, or controlling person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon (i) any untrue statement or
alleged untrue statement of any material fact contained in the Registration
Statement or the Prospectus or any amendment or supplement thereof, or (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
(iii) any violation or alleged violation by EVCI of the Securities Act, any
state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Shares pursuant to the Registration Statement (but not
Purchaser's failure to comply with the prospectus delivery requirements or other
rules and regulations under the Securities Exchange Act of 1934 relating to
Purchaser's conduct in offering and selling the Shares). EVCI will promptly
reimburse Purchaser and each such controlling person for any legal or other
expenses reasonably incurred by them in connection with investigation or
defending any such loss, claim, damage, liability or action; PROVIDED, HOWEVER,
that EVCI will not be liable in any such case if and to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished by Purchaser or any such controlling
person in writing specifically for use in the Registration Statement or the
Prospectus. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of the indemnified party.

                                       5
<PAGE>

               (b) In connection with the registration and sale of the Shares
pursuant to the Registration Statement, Purchaser will indemnify and hold
harmless EVCI, each person, if any, who controls EVCI within the meaning of the
Securities Act, each officer of EVCI who signs the Registration Statement, and
each director of EVCI, against all losses, claims, damages or liabilities, joint
or several, to which EVCI or such officer, director, or controlling person may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in the Registration Statement, the Prospectus contained
therein, or any amendment or supplement thereof, or (ii) the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will promptly
reimburse EVCI and each such officer, director, and controlling person for any
legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
PROVIDED, HOWEVER, that Purchaser will be liable hereunder in any such case if
and only to the extent that any such loss, claim, damage or liability arises out
of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in reliance upon and in conformity with information
pertaining to Purchaser and furnished in writing to EVCI by Purchaser
specifically for use in the Registration Statement or the Prospectus; and
PROVIDED, FURTHER, HOWEVER, that the liability of Purchaser hereunder shall be
limited to the proportion of any such loss, claim, damage, liability or expense
which is equal to the proportion that the public offering price of the Shares
sold by Purchaser under the Registration Statement bears to the total public
offering price of all securities sold thereunder, but not in any event to exceed
the net proceeds received by Purchaser from the sale of the Shares covered by
the Registration Statement.

               (c) Promptly after receipt by an indemnified party hereunder of
notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party in writing thereof, but the omission so to notify
the indemnifying party shall not relieve it from any liability which it may have
to such indemnified party under this Section 3.3 except and to the extent the
indemnifying party is prejudiced by such omission. In case any such action shall
be brought against any indemnified party and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to
participate in and, to the extent it shall wish, to assume and undertake the
defense thereof with counsel reasonably satisfactory to such indemnified party,
and, after notice from the indemnifying party to such indemnified party of its
election so to assume and undertake the defense thereof, the indemnifying party
shall not be liable to such indemnified party under this Section 3.3 for any
legal expenses subsequently incurred by such indemnified party in connection
with the defense thereof other than reasonable costs of investigation and of
liaison with counsel so selected; PROVIDED, HOWEVER, that if the defendants in
any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded that there may be
reasonable defenses available to it which are different from or additional to
those available to the indemnifying party or if the interests of the indemnified
party reasonably may be deemed to conflict with the interests of the
indemnifying party, the indemnified party shall have the right to select a
separate counsel and to assume such legal defenses and otherwise to participate
in the defense of such action, with the expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the
indemnifying party as incurred.

                                       6
<PAGE>

               (d) In order to provide for just and equitable contribution to
joint liability under the Securities Act in any case in which either (i)
Purchaser or any controlling person of Purchaser makes a claim for
indemnification pursuant to this Section 3.3 but it is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction as
to which time to appeal or the denial of the last right of appeal has expired)
that such indemnification may not be enforced in such case notwithstanding the
fact that this Section 3.3 provides for indemnification in such case, or (ii)
contribution under the Securities Act may be required on the part of Purchaser
or any such controlling person in circumstances for which indemnification is
provided under this Section 3.3, then, and in each such case, EVCI and Purchaser
will contribute to the aggregate losses, claims, damages or liabilities to which
they may be subject (after contribution from others) in such proportion so that
Purchaser is responsible for the portion represented by the percentage that the
public offering price of the Shares offered by the Registration Statement bears
to the public offering price of all securities offered by the Registration
Statement, and EVCI is responsible for the remaining portion; PROVIDED, HOWEVER,
that, in any such case, (A) Purchaser shall not be required to contribute any
amount in excess of the public offering price of all the Shares offered by it
pursuant to the Registration Statement; and (B) no person or entity guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person or entity who
was not guilty of such fraudulent misrepresentation.

          3.4 ENFORCEMENT. EVCI acknowledges that there is no adequate remedy at
law for failure by it to comply with the provisions of this Section 3 and that
such failure would not be adequately compensable in damages, and therefore
agrees that its agreements contained in this Section 3 may be specifically
enforced. In the event that EVCI fails to comply with its obligations and
agreements in this Section 3, then, in addition to any other rights or remedies
Purchaser may have at law or in equity, EVCI shall indemnify and hold harmless
Purchaser from and against any and all manner of loss which it may incur as a
result of such a failure. In addition, EVCI shall also reimburse Purchaser for
any and all reasonable legal fees and expenses incurred by it in enforcing its
rights pursuant to this Section 3, regardless of whether any litigation was
commenced.

     Section 4. MARKET STANDOFF. In connection with an underwritten public
offering by EVCI of at least $5 million in total offering price, if any,
Purchaser hereby agrees to be subject to a lockup for up to 180 days following
the effective date of EVCI's registration statement filed with the SEC in
connection with the offering as required by the underwriter(s) thereof. During
such period, Purchaser agrees not to sell, transfer or hypothecate any
securities of EVCI without the prior written consent of the underwriter(s). This
provisions is self-operating but Purchaser agrees to execute and furnish
directly to, and for the express benefit of, the underwriter(s) any confirmation
requested by the underwriter(s).

     Section 5. REVOCATION. Purchaser agrees that it cannot cancel, terminate or
revoke all or any portion of this Agreement and that, if Purchaser is an
individual, this Agreement shall survive Purchaser's death or disability, except
as provided by any applicable laws.

     Section 6. MISCELLANEOUS.

          6.1 NOTICES. All notices or other communications given or made
hereunder shall be in writing and shall be delivered by hand, against written
receipt (which shall include delivery by Federal Express or similar service), or

                                       7
<PAGE>

sent by telecopier, receipt confirmed, or mailed by registered or certified
mail, return receipt requested, postage prepaid, to Purchaser at its address set
forth below and to EVCI at its address set forth above, with a copy to Fischbein
Badillo Wagner Harding, 909 Third Avenue, New York, New York 10022, Attention:
Joseph D. Alperin, Esq. Notices shall be deemed given on the date of receipt or,
if mailed, three business days after mailing, except notices of change of
address, which shall be deemed given when received.

          6.2 GOVERNING LAW. Notwithstanding the place where this Agreement may
be executed by Purchaser or EVCI, all the terms and provisions hereof shall be
construed in accordance with and governed by the laws of the State of New York
without regard to principles of conflict of laws.

          6.3 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof and may be amended
only by a writing executed by the party to be charged.

          6.4 BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of each of the parties and their respective heirs, legal
representatives, successors and assigns.

          6.5 JURISDICTION. The parties each hereby submit to the non-exclusive
jurisdiction of the courts located in the County of Westchester with respect to
any action or legal proceeding commenced by either of us with respect to this
Agreement. Each of EVCI and Purchaser irrevocably waives any objection it now
has or hereafter may have respecting the venue of any such action or proceeding
brought in such a court or respecting the fact that such court is an
inconvenient forum and consents to the service of process in any such action or
proceeding by means of registered or certified mail, return receipt requested,
in care of the address set forth above or below or at such other address as
either of us shall furnish in writing to the other.

          6.6 SEVERABILITY. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

          6.7 WAIVER. No waiver by either of EVCI or Purchaser shall be valid
unless in a writing executed by the party to be changed. The waiver by either
party of a breach of any provision of this Agreement shall not operate, or be
construed, as a waiver of any subsequent breach of any provision of this
Agreement.

          6.8 FURTHER ASSURANCES. The parties agree to execute and deliver all
further documents, agreements and instruments and to take such other further
action as may be necessary or appropriate to carry out the purposes and intent
of this Agreement.

          6.9 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
together constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS.]

                                       8

<PAGE>

                   SIGNATURE PAGE TO SHARE CLAIM PURCHASE AND
                          REGISTRATION RIGHTS AGREEMENT

          Purchaser has signed this Share Claim Purchase and Registration Rights
Agreement as of the date indicated below.

Dated:
      --------------------------        PURCHASER:

No. of Shares:                          IF AN ENTITY:  Name of Entity:
              ------------------

Purchase Price: $
                 ---------------        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                           Address:

                                        Taxpayer Identification Number:
                                                                       ---------

                                        IF AN INDIVIDUAL *:

                                        Signature:
                                                  ------------------------------

                                        Name:
                                             -----------------------------------
                                                         (print)

                                        Address:

                                        Social Security Number:
                                                               -----------------
ACCEPTED:

EVCI CAREER COLLEGES INCORPORATED

By:
   ------------------------------
   Name:
   Title:

No. of Shares:
              -------------------

Acceptance Date:
                -----------------

----------------------------
          * If joint tenants or tenants in common, each must complete and sign
this Signature Page.

                                       9

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