Document:

PURCHASE AGREEMENT

         THIS PURCHASE AGREEMENT (this "Agreement") is made as of the 7th day of
June,  2000,  by  and  between  CONTINENTAL  CHOICE  CARE,  INC.,  a New  Jersey
corporation  with its  principal  executive  offices  located at 44 Aspen Drive,
Livingston,  New Jersey 07039 (the  "Company") and LAZAR & COMPANY I.G.,  LLC, a
New York limited liability company with its principal  executive offices located
at One Penn  Plaza,  36th  Floor,  New York,  New York 10119 (the  "Purchaser").
Capitalized  terms used in this Agreement but not defined upon their first usage
are defined in Section 9.1, unless otherwise noted.

         The parties hereto, intending to be legally bound, agree as follows:

                                    ARTICLE 1

                        PURCHASE AND SALE OF COMMON STOCK
                        AND COMMON STOCK PURCHASE WARRANT

         1.1  Purchase.  Subject  to the terms  and  conditions  hereof,  on the
Closing Date the Company shall sell to the  Purchaser,  and the Purchaser  shall
purchase from the Company,  (a) 200,000  shares (the  "Shares") of the Company's
common  stock,  no par value  per  share  (the  "Common  Stock")  upon the terms
hereinafter set forth,  and (b) a warrant (the "Warrant") to purchase  6,800,000
shares of Common Stock (the "Warrant Shares") in substantially the form attached
hereto as Exhibit A (the "Sale").

         1.2  Form of  Payment.  The  purchase  price  for the  Shares  shall be
$750,000  and the  purchase  price for the  Warrant  shall be  $350,000,  for an
aggregate  purchase price of $1,100,000 (the "Purchase  Price").  On the Closing
Date,  the Purchaser  shall pay the Purchase  Price by delivering to the Company
(a) $50,000 in cash or other  immediately  available  U.S.  funds,  and (b) a 7%
Secured  Promissory  Note (the "Note") in the principal  amount of $1,050,000 in
substantially  the form attached hereto as Exhibit B and a pledge agreement (the
"Pledge Agreement") in substantially the form attached hereto as Exhibit C.

         1.3 Closing  Date.  The closing (the  "Closing")  of the Sale will take
place no later  than the  fifth  business  day  following  the date the  Company
obtains  Shareholder  Approval  or such other time and date as shall be mutually
agreed  upon by the  Purchaser  and the  Company.  Such  time and date is herein
called the  "Closing  Date." The  Closing  shall occur at the offices of Pitney,
Hardin, Kipp & Szuch LLP, 200 Campus Drive, Florham Park, New Jersey, or at such
other location as may be agreed upon by the parties.

                                    ARTICLE 2

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents and warrants that:

         2.1 Organization and  Qualification.  The Company is a corporation duly
organized,  validly existing and in good standing under the laws of the State of
New Jersey. The Company has all requisite corporate power and authority to carry
on its  business as described in the Company  Reports (as defined  herein).  The
Company is duly qualified as a foreign corporation to do business and is in good
standing  in every  jurisdiction  where the  failure to so qualify or be in good
standing would materially adversely affect its business.

         2.2  Capitalization.  The  authorized  capital  stock  of  the  Company
consists of 20,000,000  shares of Common Stock and 5,000,000 shares of preferred
stock. As of June 6, 2000, there were:

                           (a)  3,612,544 shares of Common Stock outstanding,

                           (b)  1,707,100  shares of Common  Stock  reserved for
                           issuance pursuant to outstanding  securities that are
                           convertible into or exchangeable for shares of Common
                           Stock,  other  than the  Shares  and shares of Common
                           Stock  reserved  for  issuance  upon  exercise of the
                           Warrant  and the Key  Employee  Warrants  (as defined
                           herein), and

                           (c)  3,500,000  shares to be  reserved  for  issuance
                           under a stock  incentive  plan to be  approved by the
                           Company's  board of directors and subject to approval
                           by the Company's shareholders (the "Incentive Plan").

As of June 6, 2000,  (i) of the 3,612,544  shares of Common Stock referred to in
clause (a) above,  1,527,500  shares are beneficially  owned by Techtron,  Inc.,
(ii) of the 1,707,100  shares  referred to in clause (b) above,  an aggregate of
950,000  are   reserved  for  issuance   pursuant  to   outstanding   securities
beneficially  owned by Steven L.  Trenk,  Alvin S. Trenk and  Martin G.  Jacobs,
M.D.,  collectively,  and (iii)  Steven L.  Trenk,  Alvin S. Trenk and Martin G.
Jacobs, M.D. collectively own approximately 80% of the outstanding capital stock
of  Techtron,  Inc.  Except for  interests  pursuant  to which  shares have been
reserved for issuance as set forth in the  preceding  sentence or as so excluded
therefrom,  there are no outstanding or authorized options,  warrants,  purchase
rights,  subscription  rights,  conversion  rights,  exchange  rights  or  other
contracts  or  commitments  that could  require  the  Company to issue,  sell or
otherwise  cause to  become  outstanding  any of its  capital  stock  or  equity
interests or other  instruments  convertible into such interests.  Except as set
forth on Schedule 2.2, there are no shareholder  agreements,  voting agreements,
voting trusts,  trust deeds,  irrevocable proxies or any other similar agreement
or instruments  to which the Company is a party or of which it is aware,  or any
agreements or arrangements  under which the Company is obligated to register the
sale of any of its securities under the Securities Act.

         2.3  Authorization;  Binding Effect; No Breach.  Subject to Shareholder
Approval: The Company's execution,  delivery and performance of each Transaction
Document to which it is a party has been duly authorized by it; Each Transaction
Document  to which  the  Company  is a party  constitutes  a valid  and  binding
obligation of the Company which is enforceable against the Company in accordance
with its terms, except to the extent that such validity or enforceability may be
subject  to  or  affected  by  any   bankruptcy,   insolvency,   reorganization,
moratorium,  liquidation or similar laws relating to, or affecting generally the
enforcement  of,  creditors'  rights or remedies of creditors  generally,  or by
other equitable principles of general application;  The execution,  delivery and
performance by the Company of the  Transaction  Documents to which it is a party
do not and will not (a)  conflict  with or  result  in a  breach  of the  terms,
conditions or provisions  of, (b)  constitute a default  under,  (c) result in a
violation of, (d) require any  authorization,  consent,  approval,  exemption or
other action by or declaration or notice to any Government  Entity  pursuant to,
or (e)  create  any Lien  under,  the  charter  or bylaws of the  Company or any
agreement, instrument, or other document, or any Legal Requirement, to which the
Company is, or any of its assets are, subject.

         2.4 Validity of the Shares,  the Warrant,  and the Warrant Shares.  The
Shares,  the Warrant,  and the Warrant Shares are duly authorized,  reserved for
issuance and will,  when issued in accordance with the terms hereof and thereof,
be validly issued,  fully paid and  non-assessable,  free and clear of all Liens
and any pre-emptive  rights of the  shareholders of the Company,  except for the
Pledge Agreement and with respect to the Warrant the exercise price thereof.

         2.5  Governmental  Filings.  Except  for the  filing  of an  Additional
Listing  Application with The Nasdaq Stock Market,  Inc. and a Notice of Sale of
Securities Pursuant to Regulation D on Form D with the SEC, no notices,  reports
or other  filings  are  required  to be made by the  Company  with,  nor are any
consents,  registrations,  approvals,  permits or authorizations  required to be
obtained by the Company  from,  any  Government  Entity in  connection  with the
execution and delivery of this Agreement by the Company and the  consummation of
the transactions  contemplated by the Transaction Documents.  Attached hereto as
Exhibit D-1 is a certificate by the Company  certifying that, within the meaning
of the Hart-Scott-Rodino  Antitrust Improvement Act of 1976 (the "HSR Act"), the
Company is not a person with total  assets or net sales of $100 million or more,
and attached hereto as Exhibit D-2 is a certificate by the Purchaser  certifying
that,  within the  meaning of the HSR Act,  the  Purchaser  is not a person with
total assets of $10 million or more.

         2.6 Company Reports;  Financial Statements.  The Company has filed with
the SEC each report,  proxy  statement or information  statement  required to be
filed by it since  January 1, 2000  through the date hereof,  including  (a) the
Company's  Annual Report on Form 10-KSB for the year ended December 31, 1999, as
amended,  and (b) the Company's  Quarterly  Report on Form 10-Q for the calendar
quarter ended March 31, 2000 (collectively,  the "Company  Reports"),  copies of
which have been made available to the Purchaser.  As of their respective  dates,
the Company  Reports did not contain any untrue  statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements made therein,  in light of the  circumstances  in which they were
made, not misleading.  As of their respective dates, the consolidated  financial
statements  included in the Company Reports  complied as to form in all material
respects with then applicable  accounting  requirements  and the published rules
and  regulations  of the SEC  with  respect  thereto.  Each of the  consolidated
balance sheets included in or incorporated by reference into the Company Reports
(including  the related  notes and  schedules)  fairly  presents in all material
respects the consolidated financial position of the Company and its subsidiaries
as of its date and each of the consolidated  statements of income and of changes
in cash flows included in or  incorporated by reference into the Company Reports
(including  any related  notes and  schedules)  fairly  presents in all material
respects the results of  operations  and changes in cash flows,  as the case may
be, of the Company for the periods set forth  therein  (subject,  in the case of
unaudited  statements,  to the  absence  of  notes  and  normal  year-end  audit
adjustments),  in each  case in  accordance  with  GAAP,  except as may be noted
therein.

         2.7 Nasdaq  Listing.  The Common Stock is listed on the Nasdaq SmallCap
and the Company has not received any notice from The Nasdaq Stock  Market,  Inc.
advising the Company of the initiation of any delisting proceedings with respect
to the Common Stock.

         2.8  Absence of Certain  Changes.  Except as  disclosed  in the Company
Reports  filed prior to the date hereof,  since  January 1, 2000 the Company has
conducted its business only in, and has not engaged in any material  transaction
other than in, the  ordinary  and usual course of its business and there has not
been any material adverse change in the financial condition, business, prospects
or results of operations of the Company and its Subsidiaries,  taken as a whole,
since January 1, 2000.

         2.9   Absence  of   Undisclosed   Liabilities.   The  Company  and  its
Subsidiaries,  taken as a whole,  do not have any  material  liability  (whether
accrued, absolute, contingent,  unliquidated or otherwise, whether or not known,
whether due or to become due, and regardless of when  asserted)  other than: (a)
the  liabilities  included on the latest balance sheet  contained in the Company
Reports (the "Latest Balance Sheet"),  (b) current liabilities which have arisen
in the  ordinary  course of business  and  consistent  with the  Company's  past
practice  after  the  date of the  Latest  Balance  Sheet  (none  of  which is a
liability  resulting  from  breach  of  contract,   breach  of  warranty,  tort,
infringement,  violation  of law,  claim or  lawsuit),  all of which  have  been
disclosed to the Purchaser,  and (c) other liabilities and obligations expressly
disclosed in this Agreement or in any Transaction Document.

         2.10  Litigation.  There  are  no  civil,  criminal  or  administrative
actions, suits, claims, hearings,  investigations,  arbitrations, or proceedings
pending or, to the  knowledge  of the  Company,  threatened  against the Company
preventing,  or which, if determined  adversely to the Company would prevent the
Company from  consummating  the  transactions  contemplated  by the  Transaction
Documents or would have a material  adverse  effect on the financial  condition,
business, prospects or results of operations of the Company or its Subsidiaries,
taken as a whole.

         2.11 Brokerage.  There is no claim for brokerage commissions,  finders'
fees or similar compensation in connection with the transactions contemplated by
the Transaction Documents which is binding upon the Company.

         2.12  Disclosure.  Neither this Article 2 nor any  certificate or other
item  delivered to the  Purchaser by or on behalf of the Company with respect to
the transactions  contemplated by the Transaction  Documents contains any untrue
statement of a material fact or omits a material fact which is necessary to make
any statement  contained  herein or therein,  in light of the  circumstances  in
which they were made, not misleading.

                                    ARTICLE 3

                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

         The Purchaser represents and warrants that:

         3.1  Organization  and  Qualification.   The  Purchaser  is  a  limited
liability  company duly organized,  validly  existing and in good standing under
the laws of the State of New York.  The Purchaser  has all  requisite  power and
authority to carry on its business as presently conducted. The Purchaser is duly
qualified  to do business  and is in good  standing in every other  jurisdiction
where  the  failure  to so  qualify  or be in  good  standing  would  materially
adversely affect its business.

         3.2   Authorization;   Binding  Effect;  No  Breach.   The  Purchaser's
execution,  delivery and performance of each Transaction Document to which it is
a party has been  duly  authorized  by it.  Lazar & Company  I.G.,  Inc.  is the
managing  member of the  Purchaser  (the  "Managing  Member") and the  Purchaser
hereby  represents  that the Managing  Member is duly  authorized to execute and
deliver,  on behalf of the  Purchaser,  each  Transaction  Document to which the
Purchaser  is a party.  Each  Transaction  Document to which the  Purchaser is a
party  constitutes  a valid and binding  obligation  of the  Purchaser  which is
enforceable  against the Purchaser in accordance  with its terms,  except to the
extent that such validity or enforceability may be subject to or affected by any
bankruptcy, insolvency, reorganization,  moratorium, liquidation or similar laws
relating to, or affecting  generally the  enforcement of,  creditors'  rights or
remedies of creditors  generally,  or by other  equitable  principles of general
application.  The  execution,  delivery and  performance by the Purchaser of the
Transaction  Documents  to which it is a party do not and will not (a)  conflict
with or  result in a breach of the  terms,  conditions  or  provisions  of,  (b)
constitute  a default  under,  (c) result in a violation  of, or (d) require any
authorization, consent, approval, exemption or other action by or declaration or
notice to any  Government  Entity  pursuant  to,  the  charter  or bylaws of the
Purchaser  or any  agreement,  instrument,  or  other  document,  or  any  Legal
Requirement, to which the Purchaser or any of its assets is subject.

         3.3 Investment Purpose. The Purchaser is capable of evaluating the risk
of its investment in the Shares and the Warrant and is able to bear the economic
risk of such  investment,  that it is purchasing  the Shares and the Warrant for
its own account and that the Shares and the Warrant are being  purchased  by the
Purchaser  for  investment  and not with a view to any  resale  or  distribution
thereof.  If the Purchaser  should in the future decide to dispose of the Shares
or the Warrant (which it does not now  contemplate),  it is understood  that the
Purchaser  may do so  only  in  compliance  with  the  Securities  Act  and  any
applicable state blue sky or securities laws.

         3.4 Accredited  Investor  Status.  The Purchaser and each of the equity
owners of the  Purchaser  is an  "accredited  investor"  within  the  meaning of
Regulation  D of  the  General  Rules  and  Regulations  promulgated  under  the
Securities  Act  ("Regulation  D").  Each of the equity  owners of the Purchaser
meets  either  of the  following  standards  for  determination  of  "accredited
investor"  status of Regulation  D: (a) a natural  person whose  individual  net
worth, or joint net worth with that person's spouse, at the time of his purchase
exceeds  $1,000,000;  or (b) a natural  person who had an  individual  income in
excess of  $200,000 in each of the two most  recent  years or joint  income with
that  person's  spouse in excess of  $300,000  in each of those  years and has a
reasonable expectation of reaching the same income level in the current year.

         3.5 Information.  The Purchaser (a) has received and carefully reviewed
the  Company  Reports,  and (b) has had the  opportunity  to ask  questions  and
receive  answers from the Company  concerning the Company  Reports and the terms
and  conditions  of the  offering  of the Shares  and the  Warrant to obtain any
documents  relating  to  the  Company  which  are  publicly  available  and  any
additional  information  or documents  relating to the Company which the Company
possesses or can acquire without unreasonable effort or expense.

                                    ARTICLE 4

                                    COVENANTS

         4.1      Confidentiality.

                  (a) Confidential  Information furnished to the Purchaser prior
to the Closing.  The Purchaser  and the Company  acknowledge  that  Confidential
Information (as defined herein) may be furnished by the Company to the Purchaser
in  connection  with  transactions  contemplated  by this  Agreement or pursuant
hereto.  The  term   "Confidential   Information"  shall  mean  all  information
concerning  the Company or any of its  Subsidiaries  or  Affiliates,  whether in
verbal, visual, written, electronic or other form which is made available by the
Company to the  Purchaser  or any its  Representatives  (as defined  herein) and
which the Company  identifies to the Purchaser,  whether verbally or in writing,
as being  confidential.  The term "Confidential  Information" shall not apply to
(i) any information which (A) the Purchaser can establish by convincing evidence
was already in its rightful  possession prior to the disclosure thereof to it by
the Company;  (B) was then generally  known to the public other than as a result
of a disclosure by the Purchaser or its Representative;  (C) became known to the
public through no fault of the Purchaser;  or (D) was disclosed to the Purchaser
by a  third-party  who,  to the  Purchaser's  knowledge,  was  not  bound  by an
obligation  of  confidentiality;  or (ii)  information  disclosed  pursuant to a
legal,  regulatory  requirement  or in  accordance  with an  order of a court of
competent jurisdiction, provided that in the event of any disclosure required by
this clause (ii),  the Purchaser  will give  reasonable  prior written notice of
such disclosure to the Company,  and disclosure  under this clause (ii) does not
constitute  the public  knowledge  under clause (i).  The term  "Representative"
shall  mean the  Purchaser's  agents  and  representatives,  including,  without
limitation, officers, directors, employees, attorneys, accountants and financial
advisors.  The Purchaser  acknowledges  that it has informed and hereafter shall
inform its  Representatives of the terms of this Section 4.1. Any breach of this
Section 4.1 by a Representative  of the Purchaser shall be deemed to be a breach
thereof by the Purchaser.

                  (b) Confidential  Information furnished to the Purchaser after
the Closing.  The Purchaser  acknowledges that  Confidential  Information may be
furnished by the Company to the Purchaser  after the Closing in connection  with
the Purchaser's  investment in the Shares, the Warrant,  and the Warrant Shares.
The Purchaser further  acknowledges its awareness of the restrictions imposed by
federal and state securities laws on persons in possession of material nonpublic
information,  and the Purchaser  hereby agrees that while it is in possession of
material nonpublic  information with respect to the Company, the Purchaser shall
not  purchase  or  sell  any  securities  of the  Company  or  communicate  such
information to any third-party, in violation of any such laws.

                  (c) Use of Confidential Information.  Confidential Information
shall be (i) kept  confidential,  (ii)  used  solely  by the  Purchaser  and its
Representatives,  (iii) used solely for the purposes specified by the Company at
the time the Company  furnishes the  Confidential  Information to the Purchaser,
and (iv) treated as the sole property of the Company.

                  (d) Equitable  Relief.  In addition to all other remedies that
may be available to the Company in connection  with a breach by the Purchaser of
its or its  Representative's  obligations  under this  Section  4.1, the Company
shall be entitled to specific  performance  and injunctive  and other  equitable
relief with respect to this Section 4.1. The Purchaser waives, and agrees to use
all reasonable efforts to cause its Representatives to waive, any requirement to
secure or post a bond in connection with any such relief.

         4.2 Board  Representation.  At, or prior to, the  Closing,  the Company
shall  enlarge the size of its Board of Directors  to seven  members and, of the
vacancies  so  created,  fill two  vacancies  with two  persons  selected by the
Purchaser  to serve  until  its next  annual  meeting  of  shareholders  for the
election of directors.  The Company shall include among nominees in the slate of
directors  recommended by the  management of the Company in the proxy  statement
for the next held annual meeting for the election of directors,  and for as long
as the Warrant is outstanding for each next held annual meeting for the election
of directors,  two directors  selected by the Purchaser by giving written notice
to the Company of such  nominations,  together with the written  consent of such
nominees to serve as directors,  not less than 120 calendar days before the date
of the Company's proxy statement released to shareholders in connection with the
previous year's annual meeting.

         4.3 Stock  Incentive  Plan.  The Company shall submit for approval from
its  shareholders  in  the  proxy  statement  for  the  next  held  meeting  the
establishment  of the Incentive  Plan pursuant to which common stock and options
to purchase up to 3,500,000  shares of common stock may be issued.  Common Stock
and  options  under such plan shall be  available  for  issuance  to  employees,
strategic partners and advisors to the Company.

         4.4 Key Employee  Warrants.  At, or prior to, the Closing,  the Company
shall issue  warrants to purchase up to an aggregate of 1,350,000  shares of the
Company's  Common  Stock to  certain  key  employees  of the  Company  (the "Key
Employee Warrants") in substantially the form attached hereto as Exhibit E.

         4.5 Non-Competition.

                  (a) Scope of  Agreement.  During the period  beginning  on the
date of this Agreement and continuing so long as the Warrant is outstanding (the
"Non-Competition  Period"),  the  Purchaser  will not,  directly or  indirectly,
either for itself or for any other Person, participate in the acquisition of any
business the acquisition of which is within the Company's  acquisition strategy,
as  agreed  upon  between  the  Purchaser  and the  Company  from  time to time;
provided,  the  restriction set forth in this Section 4.5 shall not apply (i) to
any investment by the Purchaser prior to the date of this Agreement, (ii) to any
wholly passive investment by the Purchaser after the date of this Agreement, and
(iii) to any investment by the Purchaser after the date of this Agreement if the
Sale is not consummated.

                  (b) Specific  Performance.  The parties  hereto agree that the
Company would suffer  irreparable  harm from a breach by the Purchaser of any of
the  covenants or  agreements  contained in this Section 4.5. In the event of an
alleged or  threatened  breach by any such Persons of any of the  provisions  of
this Section 4.5, the Company or its  successors  or assigns may, in addition to
all other  rights and  remedies  existing  in its  favor,  apply to any court of
competent  jurisdiction  for specific  performance  and/or  injunctive  or other
relief in order to enforce or prevent any violations of the  provisions  hereof.
The Purchaser agrees that these restrictions are reasonable.

                  (c)  Reasonableness.  If, at the time of enforcement of any of
the  provisions  of Section  4.5(a) or Section  4.5(b),  a court  holds that the
restrictions  stated  therein  are  unreasonable  under the  circumstances  then
existing,   the  parties  hereto  agree  that  the  maximum  period,   scope  or
geographical  area reasonable under such  circumstances  will be substituted for
the stated period, scope or area.

         4.6 Securities  Laws. The Company shall timely file a Notice of Sale of
Securities Pursuant to Regulation D on Form D with respect to the Shares and the
Warrant  with the SEC as  required  under  Regulation  D and to  provide  a copy
thereof to the Purchaser  promptly after such filing. The Company agrees to file
a Current  Report on Form 8-K  disclosing  this  Agreement and the  transactions
contemplated  hereby with the SEC within fifteen calendar days after the Sale is
consummated.

         4.7 Legends. The Company may endorse on all certificates evidencing the
Shares, the Warrants, and the Warrant Shares a legend restricting their transfer
that shall read as follows: "The securities represented by this certificate have
not  been  registered  under  the  Securities  Act  of  1933,  as  amended  (the
"Securities Act") or the securities laws of any state of the United States.  The
securities  represented  hereby have been acquired for investment and may not be
sold, transferred,  pledged, assigned or otherwise disposed of in the absence of
an effective  registration statement for the securities under the Securities Act
or an  opinion,  if  requested,  of counsel  satisfactory  to the  Company  that
registration is not required under the Securities  Act." Where  applicable,  the
Company  shall  remove such  legends so as to  facilitate  the  transfer of such
securities  pursuant to an effective  registration  statement  or, if and to the
extent  applicable,  pursuant to Rule 144 under the Securities Act, provided (in
the  case  of  Rule  144  transfers)   that  the  Purchaser  has  provided  such
documentation as the Company and its transfer agent shall reasonably  require in
connection therewith.

         4.8  Consummation of Transaction.  Each of the parties hereto agrees to
use its best efforts to take promptly,  or cause to be taken, all actions and to
do  promptly,  or cause to be done,  all things  necessary,  proper or advisable
under  applicable  laws and  regulations  to consummate  and make  effective the
transactions contemplated by this Agreement.

         4.9 Proxy Statement.  As soon as practicable following the date of this
Agreement,  the Company shall prepare a proxy statement (the "Proxy  Statement")
which shall be utilized to solicit proxies in connection with a meeting at which
the  Company's  shareholders  will  vote  upon  the  Sale  and the  transactions
contemplated  by this  Agreement.  The Company will afford the Purchaser and its
counsel a  reasonable  opportunity  to  comment  on (a) the Proxy  Statement  in
preliminary  form prior to its being filed with the SEC, (b) any response to any
comments from the staff of the SEC with respect to such Proxy Statement, and (c)
any proposed  revisions to the Proxy  Statement in response to any comments from
the staff of the SEC with respect to such Proxy Statement.

         4.10     Registration Rights.

                  (a) Registration  Period.  The registration  rights granted to
the Purchaser pursuant to this Section 4.10 shall cease as to some or all of the
Shares or the Warrant Shares when (i) a  registration  statement with respect to
the sale of such Shares or Warrant Shares shall have become  effective under the
Securities  Act and such Shares or Warrant Shares shall have been disposed of in
accordance with such registration statement, (ii) such Shares or Warrants Shares
are permitted to be sold to the public under the Securities Act pursuant to Rule
144 (or any successor provision) without any limitations or restrictions,  (iii)
such  Shares or  Warrant  Shares  shall  have been  otherwise  transferred,  new
certificates  for them not bearing a legend  restricting  further transfer shall
have been delivered by the Company and subsequent  disposition of them shall not
require  registration or  qualification  of them under the Securities Act or any
state  securities or blue sky law then in force,  or (iv) such Shares or Warrant
Shares shall have ceased to be outstanding (the period prior to the cessation of
such rights being the "Registration Period").

                  (b)  Registration  by the Company.  Prior to the Closing Date,
the  Company  shall file a  registration  statement  covering  the resale of the
Shares and the Warrant Shares on Form S-3 under the Securities Act (if such form
is then available for use by the Company,  or if such form is not then available
for use by the Company,  such form as is then  available to the Company for such
registration),  and  thereafter  diligently  pursue  the  effectiveness  of such
registration statement; provided, however, solely in the event that the SEC does
not permit the Company to file such registration  statement prior to the Closing
Date, the Company shall file such registration  statement on or before the tenth
business day following the Closing Date. The  registration  statement shall have
been  declared  effective  by the SEC on or before the  ninetieth  calendar  day
following the Closing Date,  unless the  registration  statement is not declared
effective  due to action  within the control of the SEC and  unrelated to action
within the control of the Company or the  Company's  agents or  representatives;
provided,  however,  that if the  registration  statement  shall  not have  been
declared  effective on or before such ninetieth  calendar day, the Company shall
thereafter  use its best  efforts to cause  such  registration  statement  to be
declared effective as promptly as possible, until such registration statement is
declared effective.

                  (c) Terms and Conditions of Registration.  Except as otherwise
provided herein, in connection with any registration statement filed pursuant to
this Section 4.10, the following provisions shall apply:

                           (i) The  Company  will afford the  Purchaser  and its
counsel a reasonable  opportunity to comment on (A) such registration  statement
prior to its being filed with the SEC, (B) any response to any comments from the
staff  of the SEC  with  respect  to such  registration  statement,  and (C) any
proposed  revisions to such  registration  statement in response to any comments
from the staff of the SEC with respect to such registration statement.

                           (ii) All expenses in connection  with the preparation
and filing of such registration statement, including all registration and filing
fees, fees and expenses of compliance with securities or blue sky laws, printing
expenses,  messenger and delivery expenses, counsel for the Company, independent
certified public accountants,  and other Persons retained by the Company,  shall
be borne  solely by the  Company,  except for any  transfer  taxes  payable with
respect to the  disposition of such Shares and Warrant  Shares,  and any selling
commissions applicable to such Shares and Warrant Shares, which shall be paid by
the Purchaser.

                           (iii) The Company shall use its best efforts to cause
the Shares and  Warrant  Shares  covered by such  registration  statement  to be
listed on the Nasdaq  SmallCap  (or such other  market or  exchange on which the
Common  Stock is then  listed)  and  comply in all  material  respects  with the
Company's reporting,  filing and other obligations under the bylaws and rules of
the Nasdaq SmallCap (or such other market or exchange).

                           (iv)  The  Company  shall  use its  best  efforts  to
register  or  qualify  the  Shares  and  the  Warrant  Shares  covered  by  such
registration   statement   under  the  securities  or  blue  sky  laws  of  such
jurisdictions  as the Purchaser  reasonably  requests,  and do any and all other
acts and things  which may be  reasonably  necessary  or advisable to enable the
Purchaser to consummate the disposition in such  jurisdictions of such Shares or
Warrant Shares,  provided, that the Company shall not be required to (A) qualify
generally  to do business in any  jurisdiction  where it would not  otherwise be
required to qualify but for this Section 4.10, (B) subject itself to taxation in
any such jurisdiction,  or (C) consent to general service of process in any such
jurisdiction.

                           (v) Following the effective date of such registration
statement,  the  Company  shall,  upon the request of the  Purchaser,  forthwith
supply such number of prospectuses  (including  exhibits thereof and preliminary
prospectuses and amendments and supplements thereto) meeting the requirements of
the Securities Act and such other documents as are referred to in the prospectus
as shall be  reasonably  requested by the  Purchaser to permit the  Purchaser to
make a public distribution of the Shares and Warrant Shares.

                           (vi) The Company shall  prepare,  if  necessary,  and
file such  amendments and supplements to such  registration  statement as may be
necessary to keep such registration  statement effective,  subject to applicable
laws, rules and orders, during the Registration Period.

                           (vii) The Purchaser  shall cooperate with the Company
and provide the Company with all information reasonably requested by the Company
for inclusion in the  registration  statement or as necessary to comply with the
Securities Act.

                           (viii)  The   Company   shall   cooperate   with  any
underwriters  selected by the  Purchaser  and counsel to such  underwriters  and
shall provide reasonable and customary access to the Company's books and records
(upon receipt from such underwriters of customary confidentiality agreements) in
order to facilitate such underwriters'  review and examination of the Company in
connection with such  underwriting,  and shall provide customary comfort letters
from its legal counsel and accountants to such underwriters.

                           (ix) The Company will indemnify the  Purchaser,  each
of its officers,  directors,  managers,  partners,  members,  legal counsel, and
accountants  and each person  controlling  the  Purchaser  within the meaning of
Section  15  of  the  Securities  Act,  with  respect  to  which   registration,
qualification,  or compliance  has been effected  pursuant to this Section 4.10,
and each underwriter, if any, and each person who controls within the meaning of
Section 15 of the Securities Act any underwriter,  against all expenses, claims,
losses,  damages,  and liabilities (or actions,  proceedings,  or settlements in
respect  thereof)  arising out of or based on any untrue  statement  (or alleged
untrue  statement)  of a material  fact  contained in any  prospectus,  offering
circular,  or other  document  (including  any related  registration  statement,
notification, or the like) incident to any such registration,  qualification, or
compliance,  or based on any 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 any violation by the Company of the Securities Act or
any rule or  regulation  thereunder  applicable  to the Company and  relating to
action  or  inaction  required  of the  Company  in  connection  with  any  such
registration,  qualification,  or compliance,  and will reimburse the Purchaser,
each of its officers, directors, managers, partners, members, legal counsel, and
accountants and each person  controlling the Purchaser,  each such  underwriter,
and each person who controls any such  underwriter,  for any legal and any other
expenses  reasonably  incurred in connection with investigating and defending or
settling any such claim, loss, damage,  liability,  or action, provided that the
Company  will not be liable in any such case to the extent  that any such claim,
loss,  damage,  liability,  or  expense  arises out of or is based on any untrue
statement or omission based upon written information furnished to the Company by
the Purchaser and stated to be specifically  for use therein.  It is agreed that
the indemnity  agreement contained in this clause (A) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability, or action if such
settlement is effected  without the consent of the Company  (which consent shall
not be unreasonably withheld). Notwithstanding the foregoing, to the extent that
the provisions on indemnification and contribution contained in any underwriting
agreement  entered into in connection  with such  registration  statement are in
conflict  with the foregoing  provisions,  the  provisions  of the  underwriting
agreement shall control.

                           (x) The  Purchaser  will,  if any  Shares or  Warrant
Shares held by the  Purchaser  are included in the  securities  as to which such
registration,  qualification,  or  compliance is being  effected,  indemnify the
Company,  each  of  its  directors,   officers,  partners,  legal  counsel,  and
accountants and each underwriter, if any, of the Company's securities covered by
such a  registration  statement,  each person who  controls  the Company or such
underwriter  within the meaning of Section 15 of the Securities Act, against all
claims,  losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue  statement  (or  alleged  untrue  statement)  of a
material fact contained in any such registration statement, prospectus, offering
circular,  or other  document,  or any 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  reimburse  the  Company,  such
directors,   officers,  partners,  legal  counsel,  and  accountants,   persons,
underwriters,  or control persons for any legal or any other expenses reasonably
incurred in connection  with  investigating  or defending any such claim,  loss,
damage,  liability,  or  action,  in each  case to the  extent,  but only to the
extent, that such untrue statement (or alleged untrue statement) or omission (or
alleged omission) is made in such registration statement,  prospectus,  offering
circular,  or other  document in reliance  upon and in  conformity  with written
information  furnished  to  the  Company  by  the  Purchaser  and  stated  to be
specifically  for use therein,  provided,  however,  that the obligations of the
Purchaser  hereunder  shall not apply to amounts paid in  settlement of any such
claims, losses,  damages, or liabilities (or actions in respect thereof) if such
settlement is effected without the consent of the Purchaser (which consent shall
not be unreasonably withheld); and provided,  further, that the liability of the
Purchaser  hereunder  shall  be  limited  to the net  proceeds  received  by the
Purchaser from the sale of securities  covered by such  registration  statement.
Notwithstanding  the foregoing,  to the extent the provisions on indemnification
and  contribution  contained  in any  underwriting  agreement  entered  into  in
connection with such  registration  statement are in conflict with the foregoing
provisions, the provisions of the underwriting agreement shall control.

                           (xi) If the  indemnification  provided for in Section
4.10(ix) and Section 4.10(x) is held by a court of competent  jurisdiction to be
unavailable to an indemnified party with respect to any loss, liability,  claim,
damage, or expense referred to therein,  then the indemnifying party, in lieu of
indemnifying  such indemnified  party hereunder,  shall contribute to the amount
paid or payable by such indemnified  party as a result of such loss,  liability,
claim,  damage, or expense,  in such proportion as is appropriate to reflect the
relative fault of the indemnifying  party on the one hand and of the indemnified
party on the other in connection  with the statements or omissions that resulted
in such loss, liability, claim, damage, or expense as well as any other relevant
equitable  considerations.  The relative fault of the indemnifying  party and of
the  indemnified  party shall be determined by reference to, among other things,
whether  the  untrue or  alleged  untrue  statement  of a  material  fact or the
omission or alleged  omission to state a material  fact  relates to  information
supplied by the indemnifying  party or by the indemnified party and the parties'
relative intent, knowledge, access to information, and opportunity to correct or
prevent such statement or omission;  provided,  however, that no party guilty of
fraudulent  misrepresentation  shall be entitled to contribution  from any party
who was not guilty of such fraudulent misrepresentation.

                           (xii) The Company shall notify the Purchaser,  at any
time after  effectiveness  when a prospectus  relating thereto is required to be
delivered under the Securities Act, of the happening of any event as a result of
which the prospectus included in such registration statement, as then in effect,
includes an untrue  statement of a material  fact or omits to state any material
fact required to be stated therein or necessary to make the  statements  therein
not misleading in light of circumstances then existing (and upon receipt of such
notice and until a  supplemented  or amended  prospectus  as set forth  below is
available,  the Purchaser shall not offer or sell any securities covered by such
registration  statement  and shall return all copies of such  prospectus  to the
Company  if  requested  to do so by it),  and at the  request  of the  Purchaser
prepare and furnish the  Purchaser  promptly a reasonable  number of copies of a
supplement to or an amendment of such prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such shares, such prospectus shall not
include an untrue  statement of a material fact or omit to state a material fact
required to be stated  therein or necessary to make the  statements  therein not
misleading in light of the circumstances than existing.

                           (xiii)  The  Company  will  use its best  efforts  to
comply in a timely  manner with the  reporting  requirements  of Sections 13 and
15(d)  of  the  Exchange  Act  and  all  other  public   information   reporting
requirements  of the SEC of Rule 144 promulgated by the SEC under the Securities
Act from time to time in effect and relating to the availability of an exemption
from the Securities Act for the sale of any of the Shares or Warrant Shares. The
Company will also cooperate with the Purchaser in supplying such information and
documentation  as may be  necessary  for the  Purchaser to complete and file any
information  reporting  forms  presently or  hereafter  required by the SEC as a
condition to the  availability  of an exemption  from the Securities Act for the
sale of any Shares or Warrant Shares held by the Purchaser.  Upon request of the
Purchaser,  the Company shall furnish the Purchaser with a copy of all documents
filed by the Company after the date of this  Agreement  with the SEC pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act.

                           (xiv) The Company will use its best efforts to comply
with the  requirements  of the Securities  Act with respect to any  registration
statement filed pursuant to Section 4.10, including any undertakings pursuant to
Section 415 under the Securities Act.

                           (xv) The  Company  will use its best  efforts to keep
such  registration  statement  continuously  effective  under the Securities Act
during the Registration Period.

                           (xvi) In the  event  that the  Purchaser  engages  an
underwriter with respect to the sale of any Shares or Warrant Shares pursuant to
such registration statement, the Company shall amend such registration statement
with respect to, among other things,  the plan of  distribution  and any related
exhibits,  as soon as practicable following receipt of such information from the
Purchaser.

         4.11  Negative  Covenants.  During the period  beginning on the date of
this Agreement and so long as the Warrant is outstanding or, thereafter, so long
as the Purchaser holds at least 25% of the then  outstanding  Common Stock (on a
Fully Diluted Basis),  the Company shall not,  without the prior written consent
of the Purchaser,  which consent shall not be unreasonably withheld, take any of
the following actions:

                  (a) make or propose any change or amendment  to the  Company's
Certificate of Incorporation or bylaws which has or would have an adverse effect
on the Shares;

                  (b) incur or assume any  indebtedness  for a term in excess of
12 months and in excess of $2,000,000 in any single  transaction  or $10,000,000
in the aggregate;

                  (c)  enter  into any  merger or  consolidation  with or of any
other corporation, association or business entity where the Company would not be
the surviving corporation or where the shareholders of the Company prior to such
merger or  consolidation  would hold less than fifty percent of the voting power
of the surviving  corporation  immediately after such merger or consolidation or
sell or transfer all or substantially  all of any material  Subsidiary or all or
substantially all of the Company's or any material Subsidiary's assets; or

                  (d) enter into any  contract,  agreement  or  commitment  with
respect  to, or  propose  or  authorize,  any of the  actions  described  in the
foregoing clauses (a) through (c).

         4.12 Transactions with Related Parties.  The Company shall not, without
the  approval  of all of the  disinterested  members of the  Company's  Board of
Directors, engage in any loans, leases, contracts or other transactions with any
director,  officer or key  employee  of the  Company,  or any member of any such
person's immediately family,  including the parents,  spouse, children and other
relatives of any such person,  on terms less  favorable  than the Company  would
obtain in a transaction  with an unrelated party, as determined in good faith by
such members of the Board of Directors.

         4.13     Preemptive Rights

                  (a)  Right to  Purchase.  Subject  to the  provisions  of this
Section  4.13,  the  Company  hereby  grants to the  Purchaser  the  right  (the
"Preemptive  Right") to purchase a pro rata share of New  Securities (as defined
herein) which the Company may, from time to time, propose to sell and issue. The
Purchaser's "pro rata share",  for purposes of this Section,  shall be the ratio
of the number of shares of Common Stock owned by the Purchaser immediately prior
to the issuance of New  Securities  (assuming  full exercise of all  outstanding
rights, options and warrants to acquire Common Stock by the Purchaser, including
any Warrant Shares then exercisable by the Purchaser, and after giving effect to
the proposed issuance of New Securities) to the total number of shares of Common
Stock outstanding  immediately prior to the issuance of New Securities (assuming
full exercise of all outstanding rights,  options and warrants to acquire Common
Stock of the Company).

                  (b) Definition of New  Securities.  As used in this Agreement,
the term "New Securities"  shall mean any capital stock of the Company,  whether
now authorized or not, and rights,  options or warrants to purchase such capital
stock,  and  securities  of  any  type  whatsoever  that  are,  or  may  become,
convertible into or exchangeable or exercisable for capital stock; provided that
the term "New Securities" does not include (i) the Shares,  the Warrant,  or the
Warrant Shares; (ii) the Key Employee Warrants; (iii) securities issued pursuant
to the acquisition of another  business  entity or business  segment of any such
entity by the  Company by merger,  purchase of  substantially  all the assets or
other  reorganization  whereby the Company  will own more than 50% of the voting
power of such  business  entity or  business  segment of any such  entity;  (iv)
securities  issued  pursuant  to the  sale  of all or  substantially  all of the
Company's  assets or in a merger or  consolidation  of the Company  with or into
another corporation in which the Company is not the surviving  corporation;  (v)
any borrowings, direct or indirect, from financial institutions or other persons
by the Company, whether or not presently authorized,  including any type of loan
or payment evidenced by any type of debt instrument, provided such borrowings do
not have any equity  features  including  warrants,  options or other  rights to
purchase  capital  stock  and are not  convertible  into  capital  stock  of the
Company; (vi) securities issued to employees, consultants, officers or directors
of the Company pursuant to any stock option, stock purchase or stock bonus plan,
agreement  or  arrangement  approved  by  the  Board  of  Directors,   including
securities  issued pursuant to the Incentive Plan;  (vii)  securities  issued to
Strategic  Investors (as defined below);  (viii) securities issued in connection
with any stock split, stock dividend or  recapitalization  of the Company;  (ix)
securities  issued  other  than for cash and for not less  than the fair  market
value of such securities, as determined in good faith by the Board of Directors;
(x)  securities  issued  to a  provider  of  services  to the  Company  for such
services, in exchange for cash in an amount equivalent to the amount the Company
has paid or is to pay for such  services,  and for not less than the fair market
value of such  securities as determined in good faith by the Board of Directors;
and (xi) any right,  option or warrant to acquire any security  convertible into
the  securities  excluded  from the  definition  of New  Securities  pursuant to
clauses (i) through (x) above.  As used herein,  the term  "Strategic  Investor"
means any Person (other than an entity engaged  primarily in venture  capital or
other  investment  activities)  that is not an  Affiliate  of the Company (i) to
which the  Company  proposes  to issue  securities  for the  primary  purpose of
forming a  relationship  that the Board of Directors  of the Company  determines
will  enhance  its (a)  perception  in its  marketplace,  (b) ability to attract
sales,  technology or future investments or (c) perceived value and (ii) who, in
connection with such investor's equity investment, also enters into a licensing,
distribution,  marketing, development or services agreement or the like with the
Company.

                  (c) Procedures. In the event the Company proposes to undertake
an issuance of New Securities, it shall give the Purchaser written notice of its
intention,  describing  the type of New  Securities,  and  their  price  and the
general terms upon which the Company  proposes to issue the same.  The Purchaser
shall have 10  business  days  after any such  notice is  effective  to agree to
purchase up to the  Purchaser's  pro rata share of such New  Securities  for the
price and upon the terms specified in the notice by giving written notice to the
Company and stating  therein the quantity of New Securities to be purchased.  In
the event the Purchaser  fails to exercise the  Preemptive  Right within said 10
business day period,  the Company shall have 90 days thereafter to sell or enter
into an agreement  (pursuant to which the sale of New Securities covered thereby
shall be closed,  if at all, within 120 days from the date of said agreement) to
sell the New Securities  respecting which the Preemptive Right set forth in this
Section 4.13 was not  exercised,  at a price and upon terms no more favorable to
the  purchasers  thereof  than  specified in the  Company's  notice to Purchaser
pursuant to this Section  4.13. In the event the Company has not entered into an
agreement to sell the New Securities and sold the New Securities within the time
periods set forth above,  the Company shall not thereafter issue or sell any New
Securities, without first again offering such securities to the Purchaser in the
manner provided in this Section 4.13.

                  (d)  Termination of Preemptive  Right.  The  Preemptive  Right
granted  under this  Section  4.13 shall  expire at such time as the Warrant has
expired, or, thereafter,  at such time as the Purchaser no longer holds at least
25% of the then outstanding Common Stock (on a Fully Diluted Basis).

                                    ARTICLE 5

                                   CONDITIONS

         5.1  Conditions  to Each Party's  Obligations  to Effect the Sale.  The
respective  obligations of each party to effect the Sale shall be subject to the
Company obtaining Shareholder Approval.

         5.2  Conditions to Obligations of the Purchaser to Effect the Sale. The
obligations  of the  Purchaser  to  effect  the  Sale  shall be  subject  to the
fulfillment  or waiver at or prior to the  Closing of the  additional  following
conditions:

                  (a) Each  representation and warranty of the Company set forth
in  Article  2 shall be true and  correct  in all  material  respects  as of the
Closing.

                  (b) The Company shall have performed in all material  respects
each covenant or other obligation required to be performed by it pursuant to the
Transaction Documents prior to the Closing.

                  (c) The consummation of the  transactions  contemplated by the
Transaction  Documents  shall  not be  prohibited  by any Legal  Requirement  or
subject  the  Purchaser  to any  penalty or  liability  arising  under any Legal
Requirement or imposed by any Government Entity.

                  (d)  No  action,  suit  or  proceeding  shall  be  pending  or
threatened  before any  Government  Entity the result of which could  prevent or
prohibit  the  consummation  of any  transaction  pursuant  to  the  Transaction
Documents,   cause  any  such   transaction  to  be  rescinded   following  such
consummation  or adversely  affect the Company's  performance of its obligations
pursuant  to  the  Transaction  Documents,  and  no  judgment,   order,  decree,
stipulation, injunction or charge having any such effect shall exist.

                  (e) All filings, notices, licenses, consents,  authorizations,
accreditation,  waivers,  approvals  and the like of, to or with any  Government
Entity or any other  Person that are required for the Company to effect the Sale
or any other  transaction  contemplated by the Transaction  Documents shall have
been duly made or obtained and the Company shall have  delivered  copies thereof
to the Purchaser.

                  (f) The  Company  shall  have  delivered  to the  Purchaser  a
certificate  dated the  Closing  Date,  signed by the  President  of the Company
stating that the  conditions  set forth in Section 5.2 (a) through (e) have been
satisfied.

                  (g) The Company  shall have  delivered to the Purchaser a copy
of the resolutions duly adopted by the Company's board of directors  authorizing
the Company's execution,  delivery and performance of the Transaction  Documents
to  which  the  Company  is a  party,  the  Sale,  and  all  other  transactions
contemplated  by the  Transaction  Documents,  as in effect  as of the  Closing,
certified by an officer of the Company.

                  (h) The  Company  shall  have  delivered  to the  Purchaser  a
certificate (dated not less than five business days prior to the Closing) of the
Treasurer  of the State of New Jersey as to the good  standing of the Company in
New Jersey.

                  (i) The Company  shall have  delivered to the  Purchaser (i) a
certificate representing the Shares, and (ii) the Warrant.

                  (j) The Shares and the Warrant  Shares shall have been listed,
or approved  for listing  subject to issuance,  on the Nasdaq  SmallCap (or such
other market or exchange on which the Common Stock is then listed).

                  (k) The  Purchaser  shall have  received an opinion of counsel
for  the  Company  as to the  valid  existence  of the  Company,  the  Company's
corporate power and authority to enter into the Transaction  Documents,  the due
execution of the Transaction  Documents,  the  enforceability of the Transaction
Documents  in  accordance  with  their  respective  terms (as may be  limited by
bankruptcy),  and the valid issuance of the Shares and the Warrant,  in form and
substance reasonably satisfactory to the Purchaser.

                  (l) The  Company  shall  have filed a  registration  statement
pursuant  to Section  4.10(b),  or shall have  delivered  written  notice to the
Purchaser  that the SEC  prohibited  the Company  from filing such  registration
statement prior to the Closing Date.

         5.3  Conditions to  Obligations  of the Company to Effect the Sale. The
obligations  of  the  Company  to  effect  the  Sale  shall  be  subject  to the
fulfillment  or waiver at or prior to the  Closing of the  additional  following
conditions:

                  (a)  Each   representation   and  warranty  by  the  Purchaser
(including  those  relating  to equity  holders of the  Purchaser)  set forth in
Article 3 shall be true and correct in all material respects as of the Closing.

                  (b)  The  Purchaser  shall  have  performed  in  all  material
respects  each  covenant  or other  obligation  required to be  performed  by it
pursuant to the Transaction Documents prior to the Closing.

                  (c) The consummation of the  transactions  contemplated by the
Transaction  Documents  shall  not be  prohibited  by any Legal  Requirement  or
subject  the Company or any of its assets to any  penalty or  liability  arising
under any Legal Requirement or imposed by any Government Entity.

                  (d)  No  action,  suit  or  proceeding  shall  be  pending  or
threatened  before any  Government  Entity the result of which could  prevent or
prohibit  the  consummation  of any  transaction  pursuant  to  the  Transaction
Documents,   cause  any  such   transaction  to  be  rescinded   following  such
consummation  or adversely  affect the Company's  performance of its obligations
pursuant  to  the  Transaction  Documents,  and  no  judgment,   order,  decree,
stipulation, injunction or charge having any such effect shall exist.

                  (e) All filings, notices, licenses, consents,  authorizations,
accreditation,  waivers,  approvals  and the like of, to or with any  Government
Entity or any other  Person that are  required  for the  Purchaser to effect the
Sale or any other  transaction  contemplated by the Transaction  Documents shall
have been duly made or obtained and the Purchaser  shall have  delivered  copies
thereof to the Company.

                  (f) The  Purchaser  shall  have  delivered  to the  Company  a
certificate,  dated  the  Closing  Date,  signed by the  Managing  Member of the
Purchaser  stating that the conditions set forth in Sections  5.3(a) through (e)
have been satisfied.

                  (g) The Purchaser  shall have  delivered to the Company a copy
of  the  resolutions  duly  adopted  by the  Managing  Member  of the  Purchaser
authorizing  the  Purchaser's   execution,   delivery  and  performance  of  the
Transaction Documents to which the Purchaser is a party, the Sale, and all other
transactions  contemplated by the Transaction Documents,  as in effect as of the
Closing, certified by an officer of the Purchaser.

                  (h) The  Purchaser  shall  have  delivered  to the  Company  a
certificate (dated not less than five business days prior to the Closing) of the
Secretary  of State of the  State  of New  York as to the good  standing  of the
Purchaser in New York.

                  (i) The Purchaser shall have delivered to the Company the Note
and the Pledge Agreement.

                  (j) The  Company  shall  have  issued  and  delivered  the Key
Employee Warrants.

                  (k) The Company  shall have received an opinion of counsel for
the Purchaser as to the valid existence of the Purchaser,  the Purchaser's power
and authority to enter into the Transaction Documents,  the due execution of the
Transaction  Documents,  and the enforceability of the Transaction  Documents in
accordance with their  respective  terms (as may be limited by  bankruptcy),  in
form and substance reasonably satisfactory to the Company.

                                    ARTICLE 6

                          SURVIVAL AND INDEMNIFICATION

         6.1  Survival of Representations, Warranties and Covenants.

                  (a)  Survival  Term.  All   representations,   warranties  and
covenants  contained  herein  or made in  writing  by any  party  in  connection
herewith  shall  survive the  execution  and delivery of this  Agreement and the
consummation  of  the  transactions   contemplated  hereby  (regardless  of  any
investigation  made by any party or on its  behalf)  and will  continue  in full
force and effect for:

                           (i) perpetuity,  in the case of the  representations,
warranties and covenants in Sections 2.3, 2.4 and 3.2;

                           (ii) for a period of two years  following the Closing
Date for all other representations and warranties set forth in Articles 2 and 3;
and

                           (iii) in the case of the covenant in Section 4.1, for
a period of two years (A) following  termination of  negotiations  in connection
with the Sale in the event the Sale is not  consummated,  or (B)  following  the
Closing Date in the event the Sale is consummated.

                           (iv) for the term set forth therein, or if no term is
set forth  therein for a period of two years  following the Closing Date, in the
case of all other covenants set forth in Article 4.

                  (b) Special Rule for Fraud.  Notwithstanding  anything in this
Section  6.1 to the  contrary,  in the  event  of a  breach  by any  party  of a
representation  or warranty which breach is intentional,  or constitutes  fraud,
the representation or warranty that has been breached will survive the execution
and  delivery  of  this  Agreement  and  the  consummation  of the  transactions
contemplated hereby (regardless of any investigation made by any party or on its
behalf) and will  continue in full force and effect for six years  following the
Closing Date or the discovery of such fraud, whichever is later.

                  (c)  No  Waiver.   Neither  a  party's  participation  in  the
consummation  of any transaction  pursuant to any  Transaction  Document nor any
waiver of any condition to such  participation  (including  any condition that a
representation  or  warranty  of any  other  party  be true  and  correct)  will
constitute  a  waiver  by such  participating  party  of any  representation  or
warranty  of  any  party  or   otherwise   affect  the   survival  of  any  such
representation or warranty.

         6.2      Indemnification Obligations of the Purchaser.

                  (a)  Specific   Indemnifiable   Losses.   The  Purchaser  will
indemnify the Company and its  Affiliates,  shareholders,  officers,  directors,
employees,   agents,   representatives  and  permitted  successors  and  assigns
(collectively,  the "Company Indemnitees") in respect of, and save and hold each
Company  Indemnitee  harmless  against  and pay on behalf of or  reimburse  each
Company Indemnitee as and when incurred, any Loss which any Purchaser Indemnitee
suffers,  sustains  or becomes  subject to as a result of, in  connection  with,
relating or incidental to or by virtue of, without duplication:

                           (i)  subject to the  survival  provisions  of Section
6.1, any  misrepresentation  or breach of any  representation or warranty (other
than  intentional   misrepresentations   or  breaches  of  representations   and
warranties arising out of fraud) by the Purchaser set forth in this Agreement or
any certificate or other instrument or document  furnished to the Company by the
Purchaser pursuant to any Transaction Document;

                           (ii) any intentional  misrepresentation  or breach of
any  representation  or warranty arising out of fraud by the Purchaser set forth
in this Agreement or any certificate or other  instrument or document  furnished
to the Company by the Purchaser pursuant to any Transaction Document; or

                           (iii) any nonfulfillment or breach of any covenant or
agreement of the Purchaser set forth in any Transaction Document.

                  (b) Limitation of Liability.  In no event, except with respect
to any claim  described  in Sections  6.2(a)(ii)  and 6.1(b) of this  Agreement,
shall any  indemnification  be made under Section 6.2 until the aggregate amount
of Losses with  respect to an  indemnity  obligation  of the  Purchaser  exceeds
$10,000,  then  indemnification  for such  obligation  shall be made to the full
extent of Losses (including the initial $10,000).

         6.3      Indemnification Obligations of the Company.

                  (a) Specific  Indemnifiable Losses. The Company will indemnify
the Purchaser  and its  Affiliates,  members,  officers,  directors,  employees,
agents, representatives and permitted successors and assigns (collectively,  the
"Purchaser  Indemnitees")  in  respect  of,  and save and  hold  each  Purchaser
Indemnitee  harmless  against and pay on behalf of or reimburse  each  Purchaser
Indemnitee  as and  when  incurred,  any Loss  which  any  Purchaser  Indemnitee
suffers,  sustains  or becomes  subject to as a result of, in  connection  with,
relating to or by virtue of, without duplication:

                           (i)  subject to the  survival  provisions  of Section
6.1, any  misrepresentation  or breach of any  representation or warranty (other
than  intentional   misrepresentations   or  breaches  of  representations   and
warranties  arising out of fraud) by the Company set forth in this  Agreement or
any  certificate or other  instrument or document  furnished to the Purchaser by
the Company pursuant to any Transaction Document;

                           (ii) any intentional  misrepresentation  or breach of
any  representation or warranty arising out of fraud by the Company set forth in
this  Agreement or any  certificate  furnished  to the  Purchaser by the Company
pursuant to any Transaction Document; or

                           (iii) any nonfulfillment or breach of any covenant or
agreement of the Company set forth in any Transaction Document.

                  (b) Limitation of Liability.  In no event, except with respect
to any claim  described  in Sections  6.3(a)(ii)  and 6.1(b) of this  Agreement,
shall any  indemnification  be made under Section 6.2 until the aggregate amount
of Losses  with  respect  to an  indemnity  obligation  of the  Company  exceeds
$10,000,  then  indemnification  for such  obligation  shall be made to the full
extent of Losses in excess of $10,000.

         6.4      Indemnification Procedures.

                  (a)  Notice  of  Claim.   Any   Person   making  a  claim  for
indemnification  pursuant to Section 6.2 or Section 6.3 (an "Indemnified Party")
must  give the party  from whom  indemnification  is  sought  (an  "Indemnifying
Party")  written  notice  of such  claim  (an  "Indemnification  Claim  Notice")
promptly after the Indemnified  Party receives any written notice of any action,
lawsuit,  proceeding,  investigation or other claim (a "Proceeding")  against or
involving the Indemnified  Party by a Government  Entity or other third-party or
otherwise discovers the liability, obligation or facts giving rise to such claim
for indemnification;  provided, that the failure to notify or delay in notifying
an Indemnifying Party will not relieve the Indemnifying Party of its obligations
pursuant to Section 6.2 or Section 6.3, as applicable, except to the extent that
such failure actually harms the Indemnifying  Party.  Such notice must contain a
description  of the claim and the  nature and amount of such Loss (to the extent
that the nature and amount of such Loss is known at such time).

                  (b)  Control  of  Defense;  Conditions.  With  respect  to the
defense of any Proceeding  against or involving an Indemnified  Party in which a
Government  Entity or other third-party in question seeks only the recovery of a
sum of money for which  indemnification  is  provided  in Section 6.2 or Section
6.3, at its option an  Indemnifying  Party may  appoint as lead  counsel of such
defense any legal counsel selected by the  Indemnifying  Party;  provided,  that
before the Indemnifying Party assumes control of such defense it must first:

                           (i)  enter  into an  agreement  with the  Indemnified
Party (in form and substance  satisfactory to the Indemnified Party) pursuant to
which the Indemnifying Party agrees to be fully responsible (with no reservation
of any  rights  other  than the  right to be  subrogated  to the  rights  of the
Indemnified   Party)   for  all  Losses   relating   to  such   Proceeding   and
unconditionally  guarantees  the payment and  performance  of any  liability  or
obligation  which may arise with respect to such  Proceeding or the facts giving
rise to such claim for indemnification; and

                           (ii) furnish the Indemnified Party with evidence that
the Indemnifying Party, in the Indemnified Party's sole judgment, is and will be
able to satisfy any such liability.

                  (c)  Control  of  Defense;  Related  Matters.  Notwithstanding
Section 6.4(b):

                           (i)  the  Indemnified   Party  will  be  entitled  to
participate in the defense of such claim and to employ counsel of its choice for
such purpose at its own expense; provided, that the Indemnifying Party will bear
the reasonable fees and expenses of such separate  counsel incurred prior to the
date upon  which the  Indemnifying  Party  effectively  assumes  control of such
defense;

                           (ii) the  Indemnifying  Party will not be entitled to
assume control of the defense of such claim,  and will pay the  reasonable  fees
and expenses of legal counsel retained by the Indemnified Party, if

                                    (A)   the   Indemnified   Party   reasonably
believes that an adverse  determination  of such Proceeding  could be materially
detrimental to or injure the Indemnified  Party's  reputation or future business
prospects, or

                                    (B) a court of competent  jurisdiction rules
that the  Indemnifying  Party has failed or is failing  to  prosecute  or defend
vigorously such claim; and

                           (iii) the  Indemnifying  Party must  obtain the prior
written consent of the Indemnified  Party (which the Indemnified  Party will not
unreasonably  withhold)  prior to entering into any  settlement of such claim or
Proceeding or ceasing to defend such claim or Proceeding.

                                    ARTICLE 7

                                   TERMINATION

         7.1 Events of Termination. This Agreement may be terminated at any time
prior to the Closing,  whether before or after the Company  obtains  Shareholder
Approval:

                  (a) By mutual  consent of the Company and the Managing  Member
of the Purchaser;

                  (b) By either  the  Company  or the  Purchaser  (provided  the
terminating  party is not otherwise in material breach of its obligations  under
this  Agreement  and the  terminating  party has not  otherwise  taken action to
prevent the  Closing) if the Sale shall not have been  consummated  on or before
September 30, 2000 (the "Termination Date"); provided,  however, the Termination
Date  may be  extended  until  November  30,  2000 by the  Company  in its  sole
discretion if the Sale shall not been  consummated on or before the  Termination
Date because of (i) delays  resulting  from  comments  from the staff of the SEC
with respect to the Proxy Statement, or (ii) the Company has scheduled,  but has
not yet  concluded,  the  meeting  at  which  the  Company  intends  to  solicit
Shareholder Approval.

                  (c) By either the Company or the Purchaser if the Company does
not obtain Shareholder Approval; and

                  (d) By the  Company  or the  Purchaser  in the  event of (i) a
breach by the other party of any  representation  or warranty  contained herein,
which  breach  has not been  cured  within 30 days  after the  giving of written
notice to the breaching  party of such breach and which breach,  individually or
in the  aggregate  when  combined  with other  such  breaches,  would  cause the
conditions  set forth in Section 5.2 or Section  5.3, as the case may be, not to
be met if the date of the action described above were the date of the Closing or
(ii) a material  breach by the other party of any of the covenants or agreements
contained  herein,  which  breach  has not been  cured  within 30 days after the
giving of written notice to the breaching party of such breach.

         7.2  Effect of  Termination.  In the event of the  termination  of this
Agreement pursuant to Section 7.1, this Agreement,  except for the provisions of
Section 4.1, shall become void and have no effect,  without any liability on the
part of any party or its directors,  officers or  shareholders.  Notwithstanding
the  foregoing,  nothing in this  Section  7.2 shall  relieve  any party to this
Agreement of liability for a material  breach of any provision of this Agreement
and provided,  further,  however, that if it shall be judicially determined that
termination  of this  Agreement  was  caused  by an  intentional  breach of this
Agreement,  then,  in addition to other  remedies at law or equity for breach of
this Agreement, the party so found to have intentionally breached this Agreement
shall indemnify and hold harmless the other party for its  out-of-pocket  costs,
fees and  expenses of its  counsel,  accountants,  financial  advisors and other
experts and advisors  (as well as fees and  expenses)  incident to  negotiation,
preparation  and  execution  of this  Agreement  and related  documentation  and
shareholders' meetings and consents.

                                    ARTICLE 8

                                  MISCELLANEOUS

         8.1 Rights and  Remedies.  No course of dealing  between the parties or
failure or delay in exercising any right,  remedy,  power or privilege  (each, a
"right")  pursuant to this  Agreement  will operate as a waiver of any rights of
any  party,  nor will any  single or partial  exercise  of any right  under this
Agreement  preclude any other or further  exercise of such right or the exercise
of any other right.  Except as expressly set forth herein,  the rights  provided
pursuant to this Agreement are cumulative and not exhaustive of any other rights
which may be provided by law.

         8.2  Waivers,  Amendments  to  be in  Writing.  No  waiver,  amendment,
modification or supplement of this Agreement will be binding upon a party unless
such waiver,  amendment,  modification or supplement is set forth in writing and
is executed by such party.

         8.3 Successors and Assigns.  Except as otherwise  expressly provided in
this  Agreement,  all covenants and agreements set forth in this Agreement by or
on behalf of the Purchaser and the Company will bind and inure to the benefit of
the respective successors and assigns of the Purchaser and the Company,  whether
so expressed or not. Prior to the Closing, this Agreement and any of the rights,
interests  or  obligations  hereunder  may  not be  assigned  by the  Purchaser.
Following  the  Closing,  this  Agreement,  and any of the rights,  interests or
obligations hereunder (except for the Shares, the Warrant or the Warrant Shares,
which may be assigned except as otherwise  provided  therein or elsewhere in the
Transaction  Documents)  may not be assigned by the  Purchaser  except to (i) an
individual  who was a direct or indirect  equity  holder of the Purchaser on the
date of this Agreement, (ii) Shlomo Lazar, a member of his immediate family or a
trust for the benefit of same, or any entity controlled by any of the foregoing,
or (iii) to any third-party with the prior written consent of the Company, which
consent  shall  not be  unreasonably  withheld;  so long as  prior  to any  such
assignment  the  Company  receives  (A)  notice  of  and a  description  of  the
particular  rights,  interest or obligations  being assigned,  and (B) a written
agreement  by the  assignee  whereby  such  assignee  agrees to be bound by this
provision.

         8.4 Governing  Law. This Agreement will be governed by and construed in
accordance  with the domestic  laws of the State of New Jersey,  without  giving
effect to any  choice of law or  conflict  rule of any  jurisdiction  that would
cause the laws of any other  jurisdiction  to be applied.  In furtherance of the
foregoing,  the  internal  law of the  State  of New  Jersey  will  control  the
interpretation  and construction of this Agreement,  even if under any choice of
law or conflict of law analysis,  the substantive law of some other jurisdiction
would ordinarily apply.

         8.5 Jurisdiction. Each of the parties hereby (a) irrevocably submits to
the  exclusive  jurisdiction  of the state  courts  of, and the  federal  courts
located in, the State of New Jersey in any action or  proceeding  arising out of
or relating  to, this  Agreement,  (b) waives,  and agrees to assert,  by way of
motion, as a defense, or otherwise, in any such suit, action or proceeding,  any
claim that it is not subject  personally to the  jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution under
the law of another jurisdiction,  that the suit, action or proceeding is brought
in an inconvenient  forum,  that the venue of the suit,  action or proceeding is
improper or that this Agreement or the subject matter hereof may not be enforced
in or by such court, and agrees not to seek any review by any court of any other
jurisdiction which may be called upon to grant an enforcement of the judgment of
any such court.

         8.6  Notices.

                  (a)  All   demands,   notices,   communications   and  reports
("notices") provided for in this Agreement will be in writing and will be either
personally  delivered,  mailed by registered or certified  mail (return  receipt
requested) or sent by reputable  overnight  courier  service  (delivery  charges
prepaid) to any party at the address specified below, or at such address, to the
attention of such other Person, and with such other copy, as the recipient party
has  specified  by prior  written  notice to the sending  party  pursuant to the
provisions of this Section 8.6.

             If to the Purchaser:
             --------------------

             Lazar & Company I.G., LLC
             One Penn Plaza, 36th Floor
             New York, New York 10119
             Attention:  President

             with a copy, which will not constitute notice to the Purchaser, to:
             -------------------------------------------------------------------

             Akin, Gump, Strauss, Hauer & Feld, L.L.P.
             590 Madison Avenue
             New York, New York  10022
             Facsimile Number:  (212) 872-1002
             Attention:  Steven H. Scheinman

             If to the Company:
             ------------------

             Continental Choice Care, Inc.
             44 Aspen Drive
             Livingston, New Jersey  07039
             Attention:  President

             with a copy, which will not constitute notice to the Company, to:
             -----------------------------------------------------------------

             Pitney, Hardin, Kipp & Szuch LLP
             200 Campus Drive
             P.O. Box 1945
             Morristown, New Jersey  07962-1945
             Attention:  Joseph Lunin
             Facsimile Number:  (973) 966-1550

                  (b) Any such  notice  will be deemed to have been  given  when
delivered  personally,  on the third business day after deposit postage pre-paid
in the  U.S.  mail,  or on the  business  day  after  deposit  with a  reputable
overnight courier service delivery charges pre-paid, as the case may be.

         8.7  Severability of Provisions.  If any provision of this Agreement is
held to be invalid for any reason whatsoever, then such provision will be deemed
severable  from the remaining  provisions  of this  Agreement and will in no way
affect the validity or enforceability of any other provision of this Agreement.

         8.8  Counterparts.  The parties may execute this  Agreement in separate
counterparts (no one of which need contain the signatures of all parties),  each
of which will be an original and all of which  together will  constitute one and
the same instrument.

         8.9  No  Third-Party  Beneficiaries.   Except  as  otherwise  expressly
provided in this  Agreement,  no Person which is not a party will have any right
or obligation pursuant to this Agreement.

         8.10 Headings.  The headings used in this Agreement are for the purpose
of  reference  only and will not affect the  meaning  or  interpretation  of any
provision of this Agreement.

         8.11  Merger and  Integration.  Except as  otherwise  provided  in this
Agreement,  this  Agreement sets forth the entire  understanding  of the parties
relating to the subject matter  hereof,  and all prior  understandings,  whether
written or oral, are superseded by this Agreement.

         8.12 Transaction  Expenses.  The Purchaser and the Company,  whether or
not the Sale is  consummated,  shall  bear  their own  legal and other  fees and
expenses with respect to the Sale.

         8.13 Further Assurances.  From and after the Closing, the Purchaser and
the Company will,  and will cause their  respective  Affiliates  to, execute all
documents  and take any other  action  which they are  reasonably  requested  to
execute or take to  further  effectuate  the  transactions  contemplated  by the
Transaction Documents.

         8.14 Announcements.  The Company and the Purchaser shall have the right
to review  any press  release  or other  public  statement  with  respect to the
transactions  contemplated  by this  Agreement  for a reasonable  period of time
before issuance thereof; provided,  however, that the Company shall be entitled,
without the prior approval of the Purchaser,  to make any press release or other
public statement with respect to such  transactions as is required by applicable
law and regulations (although the Purchaser shall be consulted by the Company in
connection  with any such press release or other public  statement  prior to its
release and shall be provided with a copy thereof and be given an opportunity to
comment thereon).

         8.15 SEC. The Purchaser  acknowledges  that  following the Closing Date
the Purchaser and its Affiliates  will have  obligations to file certain reports
pursuant to Section 13 and Section 16 of the Exchange Act with the SEC.

         8.16  Cooperation  on  SEC  Filings.  The  Company  and  the  Purchaser
acknowledge  that the  Company  may now or in the future be  required to include
information  concerning  the  Purchaser  in SEC  reports or other  filings.  The
Purchaser  shall  provide  the  Company  with  any  information,   certificates,
documents or other materials  about the Purchaser that are reasonably  necessary
to be included in such SEC reports or other filings.

                                    ARTICLE 9

                                   DEFINITIONS

         9.1 Definitions.  For purposes hereof,  the following terms,  when used
herein with initial  capital  letters,  shall have the  respective  meanings set
forth herein:

                  "Affiliate" of any Person means any other Person  controlling,
controlled by or under common control with such first Person.

                  "Agreement" means this Purchase Agreement  (including Exhibits
and  Schedules)  as it may be amended from time to time in  accordance  with its
terms.

                  "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended.

                  "Fully  Diluted  Basis" means (i) assuming the  conversion  or
exercise of outstanding securities that are convertible into or exchangeable for
shares of Common Stock (whether such  outstanding  securities are "in the money"
or not),  (ii) not assuming the exercise of options to be issued under any plan,
and (iii) not taking into account  authorized,  but unissued,  shares of capital
stock.

                  "GAAP"  means,  at  a  given  time,  United  States  generally
accepted accounting principles, consistently applied.

                  "Government  Entity" means the United States of America or any
other nation, any state or other political  subdivision  thereof,  or any entity
exercising  executive,  legislative,   judicial,  regulatory  or  administrative
functions of government.

                  "Legal  Requirement"  means any requirement  arising under any
action,  law,  treaty,  rule or  regulation,  determination  or  direction of an
arbitrator or Government Entity.

                  "Lien"  means  any  mortgage,   pledge,   security   interest,
encumbrance,  easement,  restriction on use, restriction on transfer, charge, or
other lien.

                  "Loss" means,  with respect to any Person,  any  diminution in
value, consequential or other damage, liability, demand, claim, action, cause of
action, cost, damage,  deficiency,  Tax, penalty, fine or other loss or expense,
whether or not arising  out of a  third-party  claim,  including  all  interest,
penalties,  reasonable  attorneys'  fees and  expenses  and all amounts  paid or
incurred in connection with any action,  demand,  proceeding,  investigation  or
claim by any third-party  (including any Government Entity) against or affecting
such Person or which,  if determined  adversely to such Person,  would give rise
to,   evidence  the  existence  of,  or  relate  to,  any  other  Loss  and  the
investigation,  defense or  settlement  of any of the  foregoing,  together with
interest  thereon from the date on which such Person provides the written notice
of the related  claim as described in Section 6.4 through and including the date
on which the total amount of the claim, including such interest, is recovered or
recouped pursuant to Article 6.

                  "Person" means an individual, a partnership, a corporation, an
association,  a limited  liability  company,  a joint stock company,  a trust, a
joint venture,  an unincorporated  organization and a governmental entity or any
department, agency or political subdivision thereof.

                  "SEC"  means  the  United  States   Securities   and  Exchange
Commission.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Shareholder Approval" means approval and adoption of the Sale
and the  issuance  of the Key  Employee  Warrants by the  requisite  vote of the
holders of the Company's Common Stock.

                  "Subsidiary" of any Person means any corporation, partnership,
association or other business entity which such Person,  directly or indirectly,
controls or in which such Person has a majority ownership interest. For purposes
of this definition,  a Person is deemed to have a majority ownership interest in
a partnership,  association or other business entity if such Person is allocated
a majority of the gains or losses of such entity or is or controls  the managing
director or general partner of such entity.

                  "Transaction  Documents"  means this Agreement,  and all other
agreements, instruments,  certificates and other documents to be entered into or
delivered by any party hereto in connection with the Sale.

         9.2 Other Definitional Provisions.

                  (a)   "Hereof,"   etc.  The  terms   "hereof,"   "herein"  and
"hereunder"  and terms of similar  import are  references to this Agreement as a
whole (including Exhibits and Schedules) and not to any particular  provision of
this Agreement.  Section and clause  references  contained in this Agreement are
references  to  Sections  and  clauses  in  this  Agreement,   unless  otherwise
specified.

                  (b) "Including." The term "including" means including, without
limitation.

                  (c) Successor  Laws.  Any reference to any  particular  law or
regulation  will be  interpreted to include any revision of or successor to that
section regardless of how it is numbered or classified.

<PAGE>

                  IN WITNESS  WHEREOF,  the parties have  executed this Purchase
Agreement as of the date first written above.

                                    LAZAR & COMPANY I.G., LLC

                                    By:      LAZAR & COMPANY I.G., INC.
                                             Managing Member

                                                      SHLOMO LAZAR
                                             By:      __________________________
                                                      Shlomo Lazar
                                                      Chief Executive Officer

                                    CONTINENTAL CHOICE CARE, INC.

                                             STEVEN L. TRENK
                                    By:      _______________________________
                                             Steven L. Trenk
                                             PresidentTHE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, (THE "SECURITIES ACT") OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES.  THE SECURITIES  REPRESENTED HEREBY HAVE
BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, ASSIGNED
OR OTHERWISE DISPOSED IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OR AN OPINION, IF REQUESTED,  OF COUNSEL
SATISFACTORY  TO THE  COMPANY  THAT  REGISTRATION  IS  NOT  REQUIRED  UNDER  THE
SECURITIES ACT.

                    COMMON STOCK PURCHASE WARRANT CERTIFICATE

                           Dated: August 21, 2000

                 to Purchase 6,800,000 Shares of Common Stock of

                          CONTINENTAL CHOICE CARE, INC.

         CONTINENTAL   CHOICE  CARE,   INC.,  a  New  Jersey   corporation  (the
"Company"),  hereby  certifies  that LAZAR & COMPANY I.G., LLC and its Permitted
Assigns (as defined herein) (collectively, the "Holder"), for value received, is
entitled to purchase from the Company at any time  commencing on the date hereof
and  terminating  on the  Expiration  Date (as defined  herein) up to  6,800,000
shares (each a "Share" and  collectively  the "Shares") of the Company's  common
stock,  no par value per share (the  "Common  Stock"),  at an exercise  price of
$3.00  per Share  (the  "Exercise  Price").  The  number  of Shares  purchasable
hereunder  and the  Exercise  Price are  subject to  adjustment  as  provided in
Section 5 hereof.

         1.       Exercise of Warrants.

                  (a) Portions.  The rights to purchase the Shares shall vest in
five portions (each a "Portion"),  the "First Portion" being 850,000 Shares; the
"Second  Portion" being 850,000  Shares;  the "Third  Portion"  being  1,700,000
Shares;  the "Fourth  Portion" being 1,700,000  Shares;  and the "Fifth Portion"
being 1,700,000 Shares.

                  (b)      Targets.

                           (i)      The First Portion shall be exercisable  upon
                                    the  Market   Capitalization   (as   defined
                                    herein)  being  equal  to  or  greater  than
                                    $63,750,000 (the "First Target");

                           (ii)     The Second Portion shall be exercisable upon
                                    the Market  Capitalization being equal to or
                                    greater  than   $143,750,000   (the  "Second
                                    Target");

                           (iii)    The Third Portion shall be exercisable  upon
                                    the Market  Capitalization being equal to or
                                    greater   than   $243,750,000   (the  "Third
                                    Target");

                           (iv)     The Fourth Portion shall be exercisable upon
                                    the Market  Capitalization being equal to or
                                    greater  than   $343,750,000   (the  "Fourth
                                    Target");

                          (v)       The Fifth Portion shall be exercisable  upon
                                    the Market  Capitalization being equal to or
                                    greater   than   $443,750,000   (the  "Fifth
                                    Target");  the First Target,  Second Target,
                                    Third   Target,   Fourth  Target  and  Fifth
                                    Target, each a "Target").

                  (c) Market Capitalization.  "Market Capitalization" shall mean
the lowest  Daily  Market  Value for a Trading  Day (as such  terms are  defined
herein)  during any period of twenty  consecutive  Trading  Days.  "Daily Market
Value"  shall be  computed  by  multiplying  (i) the  number  of  shares  of the
Company's then  outstanding  Common Stock,  plus the number of then  unexercised
Warrant Shares, plus the number of shares then reserved for issuance pursuant to
the  Company's  Incentive  Plan,  plus the number of shares  then  reserved  for
issuance  pursuant to the Key  Employee  Warrants (as such  undefined  terms are
defined in the  Purchase  Agreement  by and  between  the Company and the Holder
dated June 7, 2000),  by (ii) (A) if the Common  Stock is  registered  under the
Securities  Exchange Act of 1934, as amended (the "Exchange  Act"), the price at
which  the  Common  Stock  was last sold on such  Trading  Day in the  principal
securities  exchange  or other  securities  market on which the Common  Stock is
being traded (or the equivalent in an  over-the-counter  market),  or if no sale
occurred on such  Trading  Day,  the average of the last bid and asked prices of
such Common Stock,  in the  principal  securities  exchange or other  securities
market  on which the  Common  Stock is being  traded  (or the  equivalent  in an
over-the-counter market), or (B) if the Common Stock is not registered under the
Exchange  Act, the value of the Common  Stock as  determined  by an  independent
financial  expert mutually agreed upon by the Company and the Holder and, in the
event the Company and the Holder fail to so mutually  agree within 30 days after
the Holder requests that a determination of Market  Capitalization  hereunder be
made, the parties shall submit the selection of the independent financial expert
to the American Arbitration Association for arbitration in New Jersey.

                  (d) Procedure.  Upon presentation and surrender of this Common
Stock Purchase Warrant Certificate ("Warrant Certificate"),  or Lost Certificate
Affidavit (as defined herein),  accompanied by a completed  Election to Purchase
in the form  attached  hereto as Exhibit A (the  "Election  to  Purchase")  duly
executed,  to the Company in accordance  with Section 10,  together with a check
payable to the Company in the amount of the  Exercise  Price  multiplied  by the
number of Shares being purchased,  the Company or the Company's  Transfer Agent,
as the case may be, shall, within two business days of receipt of the foregoing,
deliver  to the Holder  hereof,  certificates  of fully paid and  non-assessable
Common  Stock  which in the  aggregate  represent  the  number of  Shares  being
purchased;  provided, however, that the Holder may elect to utilize the cashless
exercise  provisions  set forth in Section 1(e) in lieu of tendering all or part
of the Exercise Price in cash. The  certificates  so delivered  shall be in such
denominations  as  may be  reasonably  requested  by the  Holder  and  shall  be
registered  in the name of the Holder or such other name as shall be  designated
by the Holder. All or less than all of the Warrants  represented by this Warrant
Certificate  or that may be exercised  with respect to a specific  Target may be
exercised  and, in case of the  exercise  of less than all,  the  Company,  upon
surrender  hereof,  will at the  Company's  expense  deliver to the Holder a new
Warrant  Certificate or Certificates (in such  denominations as may be requested
by the Holder) of like tenor and dated the date hereof  entitling  the Holder to
purchase the number of Shares represented by this Warrant Certificate which have
not been  exercised  and to receive all other  rights with respect to the Shares
which the Holder has on the date hereof.

                  (e) Cashless Exercise. Notwithstanding the foregoing provision
regarding  payment of the Exercise  Price in cash,  in lieu of tendering  all or
part of the Exercise Price in cash the Holder may:

                           (i) elect to pay all or part of the Exercise Price by
delivery  of shares of Common  Stock held by the Holder for at least six months,
in which case (A) the number of shares of Common Stock to be delivered  shall be
determined  by dividing the  aggregate  of the Exercise  Price for the number of
Shares  with  respect  to  which  the  Holder  elects  to pay all or part of the
Exercise  Price by delivery of shares of Common  Stock,  by the Market Value (as
defined herein) of one share of Common Stock, (B) such shares of Common Stock so
delivered  shall  be free and  clear  of all  liens  and  encumbrances,  and (C)
certificates  for such shares of Common  Stock shall be delivered to the Company
duly endorsed in blank for transfer; and/or

                           (ii) elect to pay all or part of the  Exercise  Price
by delivery of a promissory  note to the Company in the principal  amount of the
aggregate of the  Exercise  Price for the number of Shares with respect to which
the Holder  elects to pay all or part of the  Exercise  Price by  delivery  of a
promissory note;  provided,  the Company may not accept any such promissory note
as payment if the Board of  Directors  of the Company  determines  in good faith
that receipt of any such  promissory  note as payment would,  as a result of the
application thereto of generally accepted accounting principles, have a material
adverse  effect on the Company.  Each  promissory  note delivered to the Company
pursuant to this Section (1)(e) shall be a three-year,  full-recourse  note, and
shall bear interest at a rate of 7% (compounded annually,  computed on the basis
of a year of 360 days counting the actual number of days elapsed).

As used in this Section  (1)(e),  "Market  Value"  refers to the Current  Market
Value of the Common  Stock on the day before the  Election to Purchase  and this
Warrant  Certificate  are duly  surrendered to the Company for a full or partial
exercise hereof.

         2. Expiration.  This Warrant shall expire on August 20, 2003, provided,
at the  election of the Holder and upon  payment by the Holder to the Company of
$1,000,000 on or before such date, the  expiration  date shall be extended until
August 20,  2004;  and if so  extended,  at the  election of the Holder and upon
payment by the Holder to the Company of an  additional  $1,000,000  on or before
such extended date, the extended date shall be further extended until August 20,
2005 (such date or such extended dates being the "Expiration Date").

         3.       Exchange, Transfer and Replacement.

                  (a) Exchange.  At any time prior to the exercise hereof,  this
Warrant  Certificate  may be exchanged  upon  presentation  and surrender to the
Company,  alone or with other  Warrant  Certificates  of like tenor of different
denominations  registered  in the name of the same Holder,  for another  Warrant
Certificate or Certificates of like tenor in the name of such Holder exercisable
for the aggregate  number of Shares as the Warrant  Certificate or  Certificates
surrendered.

                  (b)  Replacement  of  Warrant  Certificate.  Upon  receipt  of
evidence reasonably satisfactory to the Company of the loss, theft, destruction,
or  mutilation  of this Warrant  Certificate  and, in the case of any such loss,
theft,  or  destruction,  upon delivery of an indemnity  agreement of the Holder
reasonably satisfactory in form and amount to the Company (collectively, a "Lost
Certificate Affidavit"),  or, in the case of any such mutilation, upon surrender
and cancellation of this Warrant Certificate,  the Company, at its expense, will
execute and deliver in lieu thereof, a new Warrant Certificate of like tenor.

                  (c) Cancellation;  Payment of Expenses.  Upon the surrender of
this  Warrant   Certificate  in  connection  with  any  transfer,   exchange  or
replacement  as provided in this  Section 3, this Warrant  Certificate  shall be
promptly  canceled by the Company.  The Company  shall pay all taxes (other than
securities transfer taxes) and all other expenses (other than legal expenses, if
any,  incurred by the Holder or  transferees)  and charges payable in connection
with  the  preparation,  execution  and  delivery  of the  Warrant  Certificates
pursuant to this Section 3.

                  (d) Warrant  Register.  The  Company  shall  maintain,  at its
principal  executive  offices (or at the offices of the  transfer  agent for the
Warrant  Certificate  or such  other  office or agency of the  Company as it may
designate  by  notice  to the  holder  hereof),  a  register  for  this  Warrant
Certificate (the "Warrant Register"), in which the Company shall record the name
and  address  of the  person in whose  name this  Warrant  Certificate  has been
issued,  as well as the name and address of each Permitted Assign and each prior
Holder of this Warrant Certificate.

         4. Rights and Obligations of Holders of this Warrant  Certificate.  The
Holder of this Warrant  Certificate  shall not, by virtue hereof, be entitled to
any  rights  of a  shareholder  in the  Company,  either  at  law or in  equity;
provided,  however,  that upon  exercise  of some or all of the  Warrants,  such
Holder shall, for all purposes, be deemed to have become the Holder of record of
such Common Stock on the date on which this Warrant Certificate, together with a
duly executed Election to Purchase, was surrendered and payment of the aggregate
Exercise  Price was made,  irrespective  of the date of  delivery  of such share
certificate.

         5.  Adjustments.

                  (a)  Stock  Dividends,  Reclassifications,  Recapitalizations,
etc. In the event the  Company:  (i) pays a dividend in Common  Stock or makes a
distribution in Common Stock, (ii) subdivides its outstanding  Common Stock into
a greater number of shares,  (iii) combines its outstanding  Common Stock into a
smaller number of shares, or (iv) increases or decreases the number of shares of
Common Stock  outstanding by  reclassification  of its Common Stock (including a
recapitalization  in  connection  with a  consolidation  or  merger in which the
Company  is the  continuing  corporation),  then (A) the  Exercise  Price on the
record  date of such  dividend or  distribution  or the  effective  date of such
action shall be adjusted by multiplying  such Exercise Price by a fraction,  the
numerator  of  which  is the  number  of  shares  of  Common  Stock  outstanding
immediately  before  such  event and the  denominator  of which is the number of
shares of Common Stock  outstanding  immediately  after such event,  and (B) the
number of shares of Common  Stock  for which  this  Warrant  Certificate  may be
exercised  immediately  before such event shall be adjusted by multiplying  such
number by a fraction,  the numerator of which is the Exercise Price  immediately
before such event and the denominator of which is the Exercise Price immediately
after such event.

                  (b) Adjustments for Dividends in Stock or Other  Securities or
Property. If while this Warrant, or any portion hereof,  remains outstanding and
unexpired the holders of the securities as to which  purchase  rights under this
Warrant exist at the time shall have  received,  or, on or after the record date
fixed for the determination of eligible stockholders, shall have become entitled
to  receive,  without  payment  therefor,  other  or  additional  stock or other
securities or property (other than cash) of the Company by way of dividend, then
and in each case, this Warrant shall represent the right to acquire, in addition
to the  number  of shares  of the  security  receivable  upon  exercise  of this
Warrant,  and without  payment of any  additional  consideration  therefor,  the
amount of such other or additional  stock or other securities or property (other
than  cash) of the  Company  that  such  holder  would  hold on the date of such
exercise  had it been the  holder of record of the  securities  receivable  upon
exercise  of this  Warrant  on the date  hereof and had  thereafter,  during the
period from the date hereof to and including the date of such exercise, retained
such shares  and/or all other  additional  stock  available  to it as  aforesaid
during such  period,  giving  effect to all  adjustments  called for during such
period by the provisions of this Section 5.

                  (c)  Merger,  Sale of Assets,  etc.  If at any time while this
Warrant,  or any portion hereof, is outstanding and unexpired there shall be (i)
a  reorganization  (other  than a  combination,  reclassification,  exchange  or
subdivision  of  shares  otherwise  provided  for  herein),  (ii)  a  merger  or
consolidation  of the  Company  with or into  another  corporation  in which the
Company is not the surviving entity, or a reverse triangular merger in which the
Company is the surviving  entity but the shares of the  Company's  capital stock
outstanding  immediately  prior to the  merger  are  converted  by virtue of the
merger  into  other  property,  whether  in the  form of  securities,  cash,  or
otherwise,  or (iii) a sale or transfer of the Company's  properties  and assets
as, or  substantially  as, an entirety to any other  person,  then, as a part of
such reorganization,  merger, consolidation,  sale or transfer, lawful provision
shall be made so that the Holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant,  during the period  specified  herein and
upon payment of the Exercise Price then in effect, the number of shares of stock
or other securities or property of the successor corporation resulting from such
reorganization,  merger,  consolidation,  sale or transfer  that a holder of the
shares  deliverable  upon  exercise of this Warrant  would have been entitled to
receive in such reorganization,  consolidation, merger, sale or transfer if this
Warrant  had been  exercised  immediately  before such  reorganization,  merger,
consolidation,  sale or transfer,  all subject to further adjustment as provided
in this Section 5. The foregoing provisions of this Section 5(c) shall similarly
apply  to  successive  reorganizations,   consolidations,   mergers,  sales  and
transfers and to the stock or securities  of any other  corporation  that are at
the  time  receivable  upon  the  exercise  of this  Warrant.  If the per  share
consideration  payable to the Holder  hereof for shares in  connection  with any
such transaction is in a form other than cash or marketable securities, then the
value of such  consideration  shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's  Board of Directors)  shall be made in the application of
the  provisions  of this Warrant with respect to the rights and interests of the
Holder after the  transaction,  to the end that the  provisions  of this Warrant
shall be applicable  after that event, as near as reasonably may be, in relation
to any shares or other  property  deliverable  after that event upon exercise of
this Warrant.

                  (d)  Adjustments  for Certain  Further  Issuances of Stock. If
while this Warrant, or any portion hereof, remains outstanding and unexpired the
Company  shall issue any shares of Common Stock or any  securities  convertible,
exchangeable  or  exercisable  for shares of Common  Stock (other than shares of
Common Stock or securities  exercisable for shares of Common Stock issuable upon
exercise  of this  Warrant or the Key  Employee  Warrants,  or  pursuant  to the
Incentive Plan),  then the Exercise Price applicable to any subsequent  exercise
of this Warrant  shall be adjusted by  multiplying  the  Exercise  Price then in
effect by a fraction,  the  numerator of which is the number of shares of Common
Stock and other securities  convertible,  exchangeable or exercisable for shares
of Common Stock outstanding immediately before such issuance and the denominator
of  which  is the  number  of  shares  of  Common  Stock  and  other  securities
convertible,  exchangeable or exercisable for shares of Common Stock outstanding
immediately  after such issuance,  giving effect to all  adjustments  called for
during such period by the provisions of this Section 5.

                  (e) No  Impairment.  The Company  will not,  by any  voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
to be observed or performed  hereunder by the Company,  but will at all times in
good faith assist in the carrying  out of all the  provisions  of this Section 5
and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of the Holder of this Warrant against impairment.

                  (f) Notice of  Adjustment.  Whenever the Exercise Price or the
number of shares of Common  Stock  and other  property,  if any,  issuable  upon
exercise  of the Warrant  Certificates  is  adjusted,  as herein  provided,  the
Company shall deliver to the Holders of the Warrant  Certificates  in accordance
with Section 10 a certificate of the Company's Chief  Financial  Officer setting
forth, in reasonable  detail,  the event requiring the adjustment and the method
by which such  adjustment  was  calculated and specifying the Exercise Price and
number of shares of Common Stock issuable upon exercise of Warrant  Certificates
after giving effect to such adjustment.

                  (g) Current Market Value.  "Current Market Value" per share of
Common  Stock or any other  security  at any date means (i) if the  security  is
registered  under the Exchange  Act, the average of the daily closing bid prices
(or the  equivalent  in an  over-the-counter  market)  for each day on which the
Common Stock is traded for any period on the  principal  securities  exchange or
other  securities  market on which the Common  Stock is being  traded  (each,  a
"Trading Day") during the period commencing eleven Trading Days before such date
and ending on the date one day prior to such date; provided, however that if the
closing bid price is not  determinable  for at least five  Trading  Days in such
period, the "Current Market Value" of the security shall be determined as if the
security were not registered  under the Exchange Act, or (ii) if the security is
not registered under the Exchange Act, (A) the value of the security, determined
in good faith by the Board of Directors of the Company and  certified in a board
resolution,  based  on the  most  recently  completed  arm's-length  transaction
between the Company and a person  other than an affiliate of the Company and the
closing of which occurs on such date or shall have occurred within the six-month
period  preceding such date, or (B) if no such  transaction  shall have occurred
within the  six-month  period,  the value of the  security as  determined  by an
independent  financial expert mutually agreed upon by the Company and the Holder
and, in the event the Company and the Holder fail to so mutually agree within 30
days after the date of the  requirement  to determine  the Current  Market Value
hereunder,  the parties shall submit the selection of the independent  financial
expert to the American Arbitration Association for arbitration in New Jersey.

         6. Notices of Certain  Events.  In case:  (i) the Company  shall take a
record of the holders of its Common Stock (or other stock or  securities  at the
time  receivable upon the exercise of this Warrant) for the purpose of entitling
them to receive any  dividend or other  distribution,  or any right to subscribe
for or purchase any shares of stock of any class or any other securities,  or to
receive any other right, or (ii) of any capital  reorganization  of the Company,
any  reclassification of the capital stock of the Company,  any consolidation or
merger of the Company with or into another corporation, or any conveyance of all
or  substantially  all of the assets of the Company to another  corporation,  or
(iii) of any voluntary  dissolution,  liquidation  or winding-up of the Company,
then,  and in each such case,  the Company will mail or cause to be delivered or
given in the  manner  provided  herein to the  Holder  of this  Warrant a notice
specifying,  as the case may be,  (A) the date of which a record  is to be taken
for the  purpose of such  dividend,  distribution  or right,  or (B) the date on
which such reorganization, reclassification,  consolidation, merger, conveyance,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the holders of record of Common Stock (or such stock or
securities at the time  receivable  upon the exercise of this Warrant)  shall be
entitled  to  exchange  their  shares of Common  Stock (or such  other  stock or
securities)   for   securities   or  other   property   deliverable   upon  such
reorganization,    reclassification,    consolidation,    merger,    conveyance,
dissolution,  liquidation or winding-up. Such notice shall be delivered or given
at least 15 days prior to the date therein specified.

         7. Issuance of  Certificates.  Within two business days of receipt of a
duly completed Election to Purchase,  together with this Warrant Certificate and
payment of the Exercise  Price,  the Company,  at its expense,  will cause to be
issued in the name of and delivered to the Holder of this Warrant, a certificate
or certificates for the number of fully paid and non-assessable shares of Common
Stock  to which  the  Holder  shall be  entitled  on such  exercise.  In lieu of
issuance of a fractional share upon any exercise hereunder, the Company will pay
the cash value of that fractional share, calculated on the basis of the Exercise
Price.  In the  event  the  shares  of  Common  Stock  underlying  this  Warrant
Certificate are not registered  under the Securities Act for resale under a then
effective registration statement, all such certificates shall bear a restrictive
legend to the effect that the Shares  represented by such  certificate  have not
been registered under the Securities Act, and that the Shares may not be sold or
transferred in the absence of such registration or an exemption therefrom,  such
legend to be  substantially in the form of the bold-face  language  appearing at
the top of Page 1 of this Warrant  Certificate.  Where  applicable,  the Company
shall remove such legends so as to  facilitate  the transfer of such  securities
pursuant  to an  effective  registration  statement  or,  if and  to the  extent
applicable, pursuant to Rule 144 under the Securities Act, provided (in the case
of Rule 144 transfers)  that the Holder has provided such  documentation  as the
Company and its transfer agent shall reasonably require in connection therewith.
In the event that unlegended certificates have been delivered to the Holder, and
a previously  effective  registration  statement  with respect to the underlying
securities  is no  longer  effective  and  the  underlying  securities  are  not
otherwise freely transferable,  the Holder shall return such certificates to the
Company in  exchange  for  legended  certificates  of like tenor  within 10 days
following the written request therefor by the Company.

         8.  Reservation  of Stock.  The Company  covenants that during the term
this Warrant is  exercisable,  the Company will reserve from its  authorized and
unissued Common Stock a sufficient  number of shares to provide for the issuance
of Common Stock upon the exercise of this Warrant and,  from time to time,  will
take all steps  necessary to amend its Certificate of  Incorporation  to provide
sufficient  reserves of shares of Common Stock  issuable  upon  exercise of this
Warrant.  The Company further  covenants that all shares that may be issued upon
the exercise of the rights  represented  by this Warrant will,  upon exercise of
the rights represented by this Warrant and payment of the Exercise Price, all as
set forth  herein,  be free from all taxes,  liens and charges in respect of the
issue  thereof   (other  than  taxes  in  respect  of  any  transfer   occurring
contemporaneously  or otherwise  specified herein).  The Company agrees that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing  stock  certificates to execute and issue the
necessary  certificates  for shares of Common  Stock upon any  exercise  of this
Warrant.

         9.  Disposition  of  Warrants  or Shares.  The  Holder of this  Warrant
Certificate,  and  each  holder  and  transferee  of any  Shares,  by his or its
acceptance  thereof,  agrees that no public  distribution  of Warrants or Shares
will  be  made  in  violation  of the  provisions  of the  Securities  Act.  Any
transferee  shall acquire the Warrants  subject to all of the relevant terms and
conditions contained in this Warrant Certificate.

         10. Notices.

                  (a)  All  demands,  notices,  and  communications  ("notices")
provided for in this Warrant  Certificate  will be in writing and will be either
personally  delivered,  mailed by registered or certified  mail (return  receipt
requested) or sent by reputable  overnight  courier  service  (delivery  charges
prepaid) to any party at the address specified below, or at such address, to the
attention of such other Person, and with such other copy, as the recipient party
has  specified  by prior  written  notice to the sending  party  pursuant to the
provisions of this Section 10.

               If to the Holder:
               -----------------

               Lazar & Company, LLC
               One Penn Plaza, 36th Floor
               New York, New York 10119
               Attention:  President

               with a copy, which will not constitute notice to the Holder, to:
               ----------------------------------------------------------------

               Akin, Gump, Strauss, Hauer & Feld, L.L.P.
               590 Madison Avenue
               New York, New York  10022
               Attention:  Steven H. Scheinman
               Facsimile Number:  (212) 872-1002

               If to the Company:
               ------------------

               Continental Choice Care, Inc.
               44 Aspen Drive
               Livingston, New Jersey  07039
               Attention:  President

               with a copy, which will not constitute notice to the Company, to:
               -----------------------------------------------------------------

               Pitney, Hardin, Kipp & Szuch LLP
               200 Campus Drive
               P.O. Box 1945
               Morristown, New Jersey  07962-1945
               Attention:  Joseph Lunin
               Facsimile Number:  (973) 966-1550

                  (b) Any such  notice  will be deemed to have been  given  when
delivered  personally,  on the third business day after deposit postage pre-paid
in the  U.S.  mail,  or on the  business  day  after  deposit  with a  reputable
overnight courier service delivery charges pre-paid, as the case may be.

         11.  Governing  Law. This Warrant  Certificate  will be governed by and
construed  in  accordance  with the  domestic  laws of the State of New  Jersey,
without giving effect to any choice of law or conflict rule of any  jurisdiction
that  would  cause  the  laws  of  any  other  jurisdiction  to be  applied.  In
furtherance of the  foregoing,  the internal law of the State of New Jersey will
control the interpretation and construction of this Warrant Certificate, even if
under any choice of law or conflict of law analysis, the substantive law of some
other jurisdiction would ordinarily apply.

         12. Jurisdiction. Each of the parties hereby (a) irrevocably submits to
the  exclusive  jurisdiction  of the state  courts  of, and the  federal  courts
located in, the State of New Jersey in any action or  proceeding  arising out of
or relating to, this Warrant  Certificate,  (b) waives, and agrees to assert, by
way of  motion,  as a  defense,  or  otherwise,  in any  such  suit,  action  or
proceeding,  any claim that it is not subject  personally to the jurisdiction of
the above-named courts, that its property is exempt or immune from attachment or
execution  under  the law of  another  jurisdiction,  that the  suit,  action or
proceeding  is brought  in an  inconvenient  forum,  that the venue of the suit,
action or proceeding is improper or that this Warrant Certificate or the subject
matter  hereof may not be enforced in or by such court,  and agrees not to seek,
any review by any court of any other  jurisdiction  which may be called  upon to
grant an enforcement of the judgment of any such court.

         13. Successors and Assigns.  This Warrant  Certificate shall be binding
upon and shall inure to the benefit of the parties  hereto and their  respective
successors and Permitted Assigns.

         14. Severability.  If any provision of this Warrant Certificate is held
to be unenforceable  under applicable law, such provision shall be excluded from
this Warrant Certificate, and the balance hereof shall be interpreted as if such
provision were so excluded.

         15. Modification and Waiver. This Warrant Certificate and any provision
hereof may be amended, waived, discharged or terminated only by an instrument in
writing signed by the Company and the Holder.

         16. Specific  Enforcement.  The Company and the Holder  acknowledge and
agree  that  irreparable  damage  would  occur  in  the  event  that  any of the
provisions of this Warrant  Certificate  were not  performed in accordance  with
their specific terms or were otherwise  breached.  It is accordingly agreed that
the parties shall be entitled to an injunction or injunctions to prevent or cure
breaches  of  the  provisions  of  this  Warrant   Certificate  and  to  enforce
specifically  the terms and  provisions  hereof,  this being in  addition to any
other remedy to which either of them may be entitled by law or equity.

         17.  Assignment.  This Warrant  Certificate  may not be  transferred or
assigned,  in whole or in part, at any time, except to (i) an individual who, on
June 7, 2000 was a direct or indirect  equity holder of the Holder,  (ii) Shlomo
Lazar,  a member of his immediate  family or a trust for the benefit of same, or
any entity controlled by any of the foregoing,  or (iii) to any third-party with
the  prior  written  consent  of  the  Company,   which  consent  shall  not  be
unreasonably withheld; so long as such individual or entity acquires the Warrant
subject to this provision ("Permitted Assign"). Assignment to a Permitted Assign
can be  effected  by the  Holder's  submission  of this  Warrant to the  Company
together with a duly executed Assignment in substantially the form and substance
of the Form of Assignment which  accompanies this Warrant  Certificate and, upon
the  Company's  receipt  hereof,  and in any event,  within three  business days
thereafter,  the  Company  shall  issue a Warrant  Certificate  to the Holder to
evidence that portion of this Warrant Certificate, if any as shall not have been
so transferred or assigned.

         IN WITNESS WHEREOF,  the Company has caused this Warrant Certificate to
be duly  executed,  manually or by facsimile,  by one of its officers  thereunto
duly authorized.

                                           CONTINENTAL CHOICE CARE, INC.

Date: August 21, 2000                      By:  STEVEN L. TRENK
                                              ----------------------------------
                                         Name:  Steven L. Trenk
                                        Title:  President

<PAGE>

                              ELECTION TO PURCHASE
              To Be Executed by the Holder in Order to Exercise the
                    Common Stock Purchase Warrant Certificate

         The  undersigned  Holder  hereby  elects  to  exercise  _______  of the
Warrants  represented by the attached Common Stock Purchase Warrant Certificate,
and to purchase  the shares of Common Stock  issuable  upon the exercise of such
Warrants,  and requests that  certificates  for securities be issued in the name
of:

                  ---------------------------------------------
                     (Please type or print name and address)
                  ---------------------------------------------

                 (Social Security or Tax Identification Number)

and delivered to:

          --------------------------------------------------------------
         (Please type or print name and address if different from above)

If such number of Warrants being exercised  hereby shall not be all the Warrants
evidenced  by the attached  Common Stock  Purchase  Warrant  Certificate,  a new
Common Stock Purchase Warrant Certificate for the balance of such Warrants shall
be  registered  in the name of, and  delivered to, the Holder at the address set
forth below.

         [In full  payment of the  purchase  price with  respect to the Warrants
exercised and transfer taxes, if any, the undersigned  hereby tenders payment of
$______________  by check, money order or wire transfer payable in United States
currency to the order of  CONTINENTAL  CHOICE  CARE,  INC.] or [The  undersigned
elects  cashless  exercise in  accordance  with Section 1(e) of the Common Stock
Purchase Warrant Certificate.]

                                     HOLDER:

Dated:                                 By:
       ------------------                 --------------------------------------
                                       Name:
                                       Title:
                                       Address:

<PAGE>

                               FORM OF ASSIGNMENT
                   (To be signed only on transfer of Warrant)

For value received,  the undersigned hereby sells,  assigns,  and transfers unto
_______________  the  right  represented  by  the  within  Warrant  to  purchase
____________  shares of Common Stock of  CONTINENTAL  CHOICE  CARE,  INC., a New
Jersey  corporation,   to  which  the  within  Warrant  relates,   and  appoints
_____________ Attorney to transfer such right on the books of CONTINENTAL CHOICE
CARE,  INC.,  a New  Jersey  corporation,  with full  power of  substitution  of
premises.

Dated:                               By:
       ---------------                  ----------------------------------------
                                     Name:
                                     Title:
                                     (signature must conform to
                                     name of holder as specified on
                                     the fact of the Warrant)

                                     Address:

Signed in the presence of:

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