Document:

STOCK PURCHASE AGREEMENT

         AGREEMENT made as of this 14th day of January, 2000, by and among Bruce
R. Kalisch,  residing at 66 Church Lane,  Scarsdale,  New York 10583 ("Seller"),
Interboro Holding,  Inc., a Delaware corporation with offices at c/o Educational
Video  Conferencing,  Inc., 35 East Grassy Sprain Road, Suite 200, Yonkers,  New
York 10710  ("BUYER") and Interboro  Institute,  Inc.,  with Offices at 450 West
56th Street,  New York, New York 10019  (collectively,  with the Institute,  the
"Company").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS,  the  Company is a  post-secondary  two-year  college  that is
authorized  by the New York State  Board of Regents  to grant the  Associate  of
Occupational   Studies  degree  in  business   administration  (with  majors  in
accounting   and   management),   opthalmic   dispensing,   paralegal   studies,
administrative  secretarial  arts (with majors in executive,  medical and legal)
and security services and management (the "Institute");

         WHEREAS,  Seller owns 100 shares (the "Shares"),  constituting  100% of
the Company's  issued and  outstanding  common stock,  no par value (the "Common
Stock"); and

         WHEREAS,  Buyer  desires  to  purchase  and  Seller desires to sell the
Shares;

         NOW,  THEREFORE,  in  consideration  of the premises and the respective
representations and warranties,  agreements and covenants hereinafter set forth,
the parties agree as follows:

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                                   ARTICLE I.

                                   DEFINITIONS

         1.1. CERTAIN  DEFINITIONS.  Except as otherwise  expressly  provided in
this  Agreement,  or unless the text of this Agreement  otherwise  requires,  in
addition to the other terms defined herein, the following shall apply:

               (a) "AGREEMENT"  means this Stock Purchase  Agreement,  including
the  Disclosure  Schedules and Exhibits and any amendments  thereto,  unless the
context otherwise requires.

               (b)  "BUYER'S  RECOUPMENT  AMOUNT"  means the total  amount Buyer
reasonably  determines  is  required  to be  invested by Buyer in the Company to
satisfy (i) the net worth  requirement of subparagraph 51E of the Lease in order
for Buyer to acquire the Shares under this Agreement  without the consent of the
Landlord being required or the Landlord  having any right to terminate or change
the Lease or recapture any portion of the premises covered by the Lease and (ii)
any  further  financial  requirements,  if any,  of  federal  or New York  State
agencies providing student financial aid to students of Interboro.

               (c)  "CLOSING"  AND  "CLOSING  DATE" mean the closing and date of
closing referred to in Section 2.3(a) of this Agreement.

               (d) "CONSENTS" mean all licenses, permits, franchises, approvals,
acknowledgments,  registrations, authorizations, consents or order of, or filing
with, any governmental authority, (whether foreign, federal, state or local), or
accreditation  or  membership  organization  or any other  party,  necessary  or
desirable  for  the  present  and  continued  conduct  of,  or  relating  to the
consummation of the transactions contemplated by this Agreement or the operation
of, the Company's business.

               (e) "CONTRACT" means any agreement,  contract, lease, note, loan,
evidence of indebtedness, purchase order, letter of credit, franchise agreement,
undertaking,  covenant not to compete, employment agreement,  license agreement,
instrument, obligation or commitment to which the Company is a party or by which
it is bound, whether oral or written.

               (f)  "CUMULATIVE  EBITDA"  means total EBITDA since  December 31,
1999.

               (g) "DISCLOSURE  SCHEDULES" mean all of the schedules referred to
in  this   Agreement   and   delivered  by  Seller  and  the  Company  to  Buyer
simultaneously  with the execution and delivery of this Agreement and containing
the information required to be included therein pursuant to this Agreement.

               (h) "EBITDA" means earnings before interest,  taxes, depreciation
and amortization  determined in accordance with GAAP by the independent auditors
of the Company.

               (i) "EVCI" means Educational Video Conferencing, Inc., a Delaware
Corporation and the parent of Buyer.

               (j) "GAAP" means  generally  accepted  accounting  principles  in
general use by significant segments of the U.S. accounting profession.

               (k) "LANDLORD" means 444 Realty Company, L.L.C.

               (l) "LEASE"  means the lease between the Landlord and the Company
dated July 27, 1983, as subsequently amended, including the Second Amendment and
Lease Extension  Agreement dated February 1, 1983, which contains in paragraph 8
thereof the provisions of subparagraph 51E.

               (m) "SELLERS  RECOUPMENT  AMOUNT" means that portion of the Price
equal to the amount of the Shareholder Debt minus $22,500.

                                       2

<PAGE>

         1.2. OTHER DEFINITIONS.  The following terms have the meanings provided
for in the Sections set forth below.

               TERM                                   SECTION
               ----                                   -------
               Accounts Payable Schedule              3.7
               Accreditations                         3.5
               Audited Financial Statements           3.7
               Breaching Party                        8.2(d)
               Buyer                                  Preamble
               Common Stock                           Second WHEREAS clause
               Company                                Preamble
               EBITDA Period                          2.2(b)
               Employee Plan                          3.15
               Equipment                              3.12(b)
               ERISA                                  3.15
               Escrow Agreement                       6.5
               50% EBITDA Period                      2.2(a)
               50% EBITDA Portion                     2.2(a)
               Harmed Party                           8.2(d)
               Indemnifying Party                     8.2(c)
               Indemnitee                             8.2(c)
               Institute                              First WHEREAS clause
               Inventory                              3.12(a)
               Losses                                 8.2(a)
               Memberships                            3.5
               Price                                  2.2(a)
               Prior Period Disallowance              8.2(e)
               Receivables Schedule                   3.7
               Seller                                 Preamble
               Seller's Non-compete                   2.2(a)
               Seller's Non-compete Area              9.1(a)
               SFA Programs                           3.24
               Shareholder Debt                       3.16
               Shares                                 Second WHEREAS clause
               Unaudited Balance Sheet                3.7
               Unaudited Financial Statements         3.7

                                  ARTICLE II.

                           PURCHASE AND SALE OF SHARES

         2.1.  PURCHASE AND SALE.  Seller agrees that,  at the Closing,  it will
sell,  assign,  transfer and deliver the Shares to Buyer,  free and clear of any
lien charge,  claim, pledge or encumbrance of any kind, and Buyer agrees it will
purchase the Shares.

                                       3

<PAGE>

         2.2. PRICE AND PAYMENT.

               (a) The total  purchase  price (the  "Price")  for the Shares and
Seller's non-compete  agreement pursuant to Article IX ("Seller's  Non-compete")
shall equal,  and be limited to, the sum of (i) Seller's  Recoupment  Amount and
(ii) 50% of EBITDA,  if any, for the three  fiscal  years of the Company  ending
June 30, 2001,  2002 and 2003;  provided,  however,  if, for any reason,  in the
Company's  sole  discretion,  it changes its fiscal year to a calendar year, the
foregoing  dates shall be December 31, 2001,  2002 and 2003,  respectively.  The
portion of the Price exceeding Seller's Recoupment Amount is defined as the "50%
EBITDA  Portion" and the three  fiscal  years of the Company  referred to in the
immediately preceding sentence is defined as the "50% EBITDA Period."

               (b) The  Price  shall be  allocated  95% to the  purchase  of the
Shares and 5% to Seller's Non-compete.  In addition,  the execution and delivery
by EVCI of the  Warrant  Agreement  referred  to in Section  6.5 shall be deemed
additional consideration for Seller's Non-compete.

               (c)  Each  portion  of the  Price  shall be  calculated  and such
calculation  shall be given to  Seller  within  100 days  after the close of the
period to which it  relates.  The  calculation  of EBITDA  shall be based on the
Company's audited financial  statements.  Each calculation of the Price shall be
accompanied  by the  financial  statements  to which such payment  relates.  The
financial  statements  shall be  accompanied  by a certificate  of the Company's
Chief Financial  Officer showing the calculation in reasonable  detail of EBITDA
for the applicable fiscal year of the Company.

               (d) Buyer's  Recoupment  Amount shall be deemed paid to Buyer out
of 80% of EBITDA for each fiscal year of the Company  beginning  after  December
31, 1999.  Buyer's Recoupment Amount shall be paid in full before any of the 50%
EBITDA Portion is paid to Seller.

               (e) Each installment  payment of Seller's Recoupment Amount shall
equal 20% of EBITDA for each fiscal year of the Company beginning after December
31, 1999,  except to the extent the last  installment is less than 20% of EBITDA
for the  applicable  fiscal year.  Installment  payments of Seller's  Recoupment
Amount  shall be made to Seller  when the  calculation  of EBITDA to which  such
payment relates is delivered to Seller pursuant to Section 2.2(c).  If, however,
Seller's  Recoupment  Amount is not paid in full by the time Buyer's  Recoupment
Amount is paid in full, the balance of Seller's Recoupment Amount shall continue
to be paid out of 20% of EBITDA  and,  in  addition,  commencing  the  Company's
fiscal year  immediately  following  the  Company's  fiscal year in which 80% of
Cumulative  EBITDA equals or exceeds  Buyer's  Recoupment  Amount and continuing
through  the fiscal  year in which 20% of  Cumulative  EBITDA  equals or exceeds
Seller's  Recoupment  Amount, 30% of EBITDA for the fiscal year shall be used to
pay any 50% EBITDA Portion that is earned in such fiscal year or, if such fiscal
year is not within the 50% EBITDA  Period,  such 30% of EBITDA  shall be used to
pay the accrued 50% EBITDA Portion.  Payment of such 30% of EBITDA shall be made
when the  calculation  of EBITDA for the period to which it relates is delivered
to Seller pursuant to Section 2.2(c).

                                       4
<PAGE>

               (f) In addition,  if all or  substantially  all the assets of the
Company  are  sold,  or if the  stock  of  the  Company  is  disposed  of,  in a
transaction  where  Buyer  receives  cash of other  property  (the  "Transaction
Consideration"),  Seller shall be entitled to receive,  upon the Closing of such
transaction, the portion of the Transaction Consideration as equals the sum of:

               (i) the lesser of 20% thereof and the unpaid  balance of Seller's
Recoupment Amount,

               (ii) to the extent,  if any, Buyer's  Recoupment  Amount has been
paid in full by the  application  of 80% of the  Transaction  Consideration,  or
otherwise,  but there remains an unpaid balance of Seller's  Recoupment  Amount,
the lesser of 50% of the  Transaction  Consideration  and the unpaid  balance of
Seller's Recoupment Amount, and

               (iii) if there is any Transaction  Consideration  remaining after
the payments  pursuant to the  immediately  preceding  clauses (i) and (ii), the
lesser of 50% of such remaining Transaction Consideration or the amount required
to pay the accrued 50% EBITDA Portion in full.

               (g) Payment of  installments  of the 50% EBITDA Portion that have
been  accrued and remain  unpaid as of the end of the  Company's  fiscal year in
which 20% of Cumulative  EBITDA equals or exceeds  Seller's  Recoupment  Amount,
shall be paid to Seller in equal eight quarterly  installments on each March 31,
June 30,  September 30, and December 31,  commencing the quarterly  payment date
immediately  following such fiscal year. All 50% EBITDA  Portions  earned during
the fiscal years, if any, of the 50% EBITDA Period  commencing  after the fiscal
year when 20% of Cumulative EBITDA equals or exceeds Seller's Recoupment Amount,
shall be paid to Seller  together with the delivery of the calculation of EBITDA
to which each such 50% EBITDA Portion relates until all such 50% EBITDA Portions
are paid in full.

               (h) Notwithstanding any other provision of this Agreement, in the
event that, as of September 30, 2000, the Company has not collected, or does not
have reasonable  assurance of collecting by October 31, 2000,  tuition  totaling
$1,732,   500  (from  sources  other  than  loans  by  the  Institute)  that  is
attributable  solely to student  enrollment at the Institute  during the current
Spring 2000 semester,  Seller's Recoupment Amount shall be reduced by the amount
that  such  tuition  collections  and  anticipated  collections  are  less  than
$1,732,500.

                                       5
<PAGE>

         2.3. CLOSING.

               (a) The Closing of the sale and purchase of the Shares shall take
place at the offices of Fischbein Badillo Wagner Harding,  909 Third Avenue, New
York, NY 10022, on January 14, 2000,  commencing at 10:00 A.M., or at such other
time and place as the parties shall mutually agree.

               (b) Subject to the  satisfaction  or waiver of the  conditions of
the Closing  specified  in Articles VI and VII hereof,  at the  Closing,  Seller
shall deliver to Buyer the certificate(s) representing the Shares, duly endorsed
to Buyer by Seller or  accompanied  by a stock  power duly  endorsed to Buyer by
Seller.

                                  ARTICLE III.

                    REPRESENTATIONS AND WARRANTIES OF SELLER

    Seller hereby represents and warrants the following to Buyer:

         3.1. CORPORATE ORGANIZATION AND QUALIFICATION; BUSINESS.

               (a) The Company is a corporation duly organized, validly existing
and in good standing under the laws of the State of New York, has full corporate
power and authority to carry on its business as it is now being conducted and to
own the  properties  and assets it now owns.  The Company is not  qualified as a
foreign  corporation or licensed to do business as a foreign  corporation in any
other  jurisdiction  because the character and location of its assets and nature
of its business do not require it to be so qualified or licensed.  The copies of
the Company's  Certificate of  Incorporation  and By-Laws  provided to Buyer are
complete and correct copies of such instruments as presently in effect.

               (b) The Company's  sole business  activity  consists of operating
the Institute.

         3.2. AUTHORIZED AND OUTSTANDING SHARES; NO SUBSIDIARIES.

               (a) The authorized  capital stock of the Company  consists of 200
shares of Common  Stock,  of which 100  shares of Common  Stock are  issued  and
outstanding and owned of record and  beneficially  solely by Seller.  All of the
issued  and  outstanding  shares of Common  Stock are duly  authorized,  validly
issued, fully paid and non-assessable.

               (b) Except for the Shares, no other stock is issued and there are
no outstanding options, warrants,  agreements,  restrictions,  contracts, calls,
demands,   understandings,   obligations  (contingent  or  otherwise)  or  other
commitments  of any kind  relating to the  issuance or  ownership  of any equity
interest in the Company, other than as provided in this Agreement.

               (c) The Company has no subsidiaries.

                                      6
<PAGE>

         3.3. TITLE TO SHARES. Seller owns the Shares beneficially and of record
and free and clear of all liens,  charges,  claims,  pledges and encumbrances of
any kind whatsoever.  Seller has the complete and unrestricted power to sell and
deliver to Buyer all of the Shares in accordance with this Agreement. The Shares
acquired by Buyer under this  Agreement  will be acquired  free and clear of any
and all liens, charges, claims, pledges and encumbrances of any kind whatsoever,
including any claim for payment of any transfer or other similar taxes,  if any,
which shall be Seller's obligation to pay.

         3.4.  AUTHORIZATION;   BINDING  EFFECT;  NO  CONFLICT.  The  execution,
delivery and performance of this Agreement has been duly and validly  authorized
by all  necessary  action on the part of the  Company.  The Company has the full
power  and  authority  to  enter  into  this  Agreement  and to  consummate  the
transactions  contemplated  hereby.  This  Agreement  has been duly executed and
delivered  by Seller and the  Company.  This  Agreement is the valid and binding
obligation of Seller and the Company  enforceable in accordance  with its terms,
except  that (i) such  enforcement  may be  subject to  bankruptcy,  insolvency,
reorganization,  moratorium  or other  similar  laws now or  hereafter in effect
relating to creditors'  rights and (ii) the remedy of specific  performance  and
injunctive  and other  forms of  equitable  relief may be  subject to  equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought.  The  execution,  delivery and  performance of this Agreement by
Seller and the Company does not (i) violate or conflict  with any statute,  law,
code, ordinance,  rule, regulation,  judgment, order, writ, decree or injunction
of any  court  or  governmental  authority;  (ii)  violate  the  Certificate  of
Incorporation  or By-Laws of the Company;  and (iii) violate,  conflict with, or
constitute a default  under,  or result in the  acceleration  of any debt of the
Company or the creation or  imposition of any security  interest,  lien or other
encumbrance  upon any  property or assets of the  Company,  under any Consent or
Contract  to which  Seller or the  Company is a party or by which  Seller or the
Company is bound.

         3.5. CONSENTS.

               (a)  Schedule 3.5 lists and  attaches  evidence of all  Consents,
including those required by all federal,  state,  county and local  governmental
(including  New  York  State  Board  of  Regents),  accreditation  organizations
(collectively,  "Accreditations")  and membership  organizations  (collectively,
"Memberships")  held  or  required  by the  Company  in  order  to  operate  the
Institute's  business  described in the Interboro  Institute  College  Catalogue
1999-2001.  Except as disclosed in Schedule 3.5, to the best knowledge of Seller
and the Company,  the Company has complied and is in  compliance in all material
respects with the terms and conditions of all such Consents,  Accreditations and
Memberships and no notice of noncompliance  has been received by the Company nor
does Seller or the Company  know of, or aware of any basis for, any event which,
with the  lapse of  time,  would  result  in such a  notice  being  given to the
Company.

                                       7
<PAGE>

               (b) Except as  disclosed in Schedule  3.5, no further  Consent is
necessary for the execution,  delivery and  consummation of this Agreement as of
the Closing.  Except as disclosed in Schedule  3.5, all Consents  referred to in
this Agreement and the Disclosure Schedules are in full force and effect and are
valid,  binding and enforceable in accordance  with their terms;  neither Seller
nor the Company is aware of, or knows of any basis for, any  existing  defaults,
or incurred  violations  that could result in a default,  in the material  terms
thereof, which defaults,  individually or in the aggregate,  could reasonably be
expected to  materially  adversely  affect the business,  assets,  properties or
prospects of the Company.

         3.6.  COMPLIANCE  WITH LAW. Except as disclosed in Schedule 3.6, Seller
and the  Company do not know,  nor are they aware of any basis,  of a failure by
the Company to conduct its operations in accordance  with all  applicable  laws,
regulations  and other  requirements of all  governmental,  regulatory and other
authorities,  having jurisdiction over the Company,  except for violations which
individually  and in the  aggregate  could not  reasonably be expected to have a
material  adverse  affect on the assets,  business or  prospects of the Company.
Except as disclosed in Schedule 3.6, during the last 36 months,  the Company has
not  received  any  notification  of any alleged  present or past failure by the
Company to comply with such laws, rules or regulations.

         3.7. FINANCIAL RECORDS; STATEMENTS. The Company has delivered to Buyer:
(i) a schedule  of notes and  accounts  receivable  dated  January 13, 2000 (the
"Receivables  Schedule");  (ii) a schedule of accounts payable dated January 13,
2000 (the "Accounts Payable  Schedule");  (iii) the Company's  unaudited balance
sheet as of December 31, 1999 (the  "Unaudited  Balance Sheet") and the related,
statements of income,  retained earnings and cash flows (collectively,  with the
Unaudited  Balance Sheet,  the "Unaudited  Financial  Statements")  and (iv) the
Company's audited  financial  statements for the fiscal year ended June 30, 1999
(the "Audited Financial Statements").  The Receivables Schedule and the Accounts
Payable  Schedule are, in all material  respects,  complete and accurate,  as of
their respective dates, and the Unaudited  Financial  Statements and the Audited
Financial Statements fairly present the Company's financial position,  as of the
respective  dates of the balance  sheets  included  therein,  and the  Company's
results of its  operations  and cash flows for the  respective  periods ended on
such  dates,  in  accordance  with  GAAP  (except,  in  the  case  of  unaudited
statements, for normally recurring year-end adjustments,  which adjustments will
not be material either individually or in the aggregate).

         3.8. NO UNDISCLOSED  LIABILITIES.  Except as disclosed in the Unaudited
Balance Sheet, the Accounts Payable Schedule and the Disclosure  Schedules,  the
Company does not have any  liabilities or  obligations of any nature  (absolute,
accrued, contingent or otherwise).

         3.9.  TAXES.  Except as disclosed in Schedule 3.9, the Company has duly
filed all tax reports  and returns  required to be filed by it and has duly paid
all taxes and other charges due or claimed to be due from it by federal,  state,
local or other taxing  authorities.  Except as disclosed in Schedule 3.9,  there
are no tax liens upon any  property  or assets of the Company  except  liens for
current  taxes not yet due.  There are no audits of the  Company's  tax  returns
pending  and  there are no  outstanding  agreements  or  waivers  extending  the
statutory  period of  limitation  applicable  to any tax returns for any period.
Except as disclosed  in Schedule  3.9, a complete and correct copy of the income
tax returns for the Company (federal and state) with respect to the fiscal years
ended December 31, 1996, 1997 and 1998 have been delivered to Buyer.

                                        8
<PAGE>

         3.10.  TITLE TO PROPERTIES;  ENCUMBRANCES.  The Company has good, valid
and marketable  title to all the properties and assets which it purports to own,
except for personal  property  having an  aggregate  book value not in excess of
$1,000,  free and clear of, all title  defects  or  objections,  liens,  claims,
charges,  security  interests or other  encumbrances  of any nature  whatsoever,
except for encumbrances in the nature of leases affecting the specific Equipment
which is the subject of such  leases.  The rights,  properties  and other assets
presently  owned,  leased or licensed by the Company and described  elsewhere in
this  Agreement  include all rights,  properties  and other assets  necessary to
permit the Company to conduct its business in all material  respects in the same
manner as its business has been conducted prior to the date hereof.

         3.11.  RECEIVABLES.  All notes and accounts  receivable  of the Company
reflected in the Receivables Schedule represent  receivables actually due in the
ordinary course of business and are believed by Seller, based solely on Seller's
knowledge of the Company's  collection  experience,  to be  collectible in full,
without  setoff  or  deduction,  net of any  reserves  shown on the  Receivables
Schedule.

         3.12. INVENTORY; EQUIPMENT.

               (a) Schedule  3.12(a) sets forth a complete and accurate  list of
each  category of items  exceeding a total of $10,000 in value of the  Company's
inventory  ("Inventory") and the cost thereof. All Inventory is reflected on the
Unaudited  Balance  Sheet,  and  consists  of a quality and  quantity  usable an
salable in the ordinary course of business,  except for obsolete items and items
of below-standard  quality, all of which have been written down in the Unaudited
Balance Sheet to  realizable  market value or for which  adequate  reserves have
been provided therein.  Except as disclosed in Schedule 3.12(a),  the quantities
of all Inventory are  reasonable and warranted in the present  circumstances  of
the Company's business.

               (b)  Schedule  3.12(b)  lists  all of the  equipment  used by the
Company in  connection  with the business of the Company,  including  any office
furniture  and leased  equipment  (collectively,  the  "Equipment").  All of the
Equipment  is, as of the date of this  Agreement,  in generally  good  operating
condition and repair and is adequate for the uses to which it is being put; and,
except as disclosed in Schedule 3.12(b),  none of the Equipment,  as of the date
of this  Agreement,  is in need of  maintenance  or repairs except for ordinary,
routine maintenance and repairs which are not material in nature or cost. At the
Closing, Buyer is accepting the Equipment "as is."

                                       9
<PAGE>

         3.13. CONTRACTS.

               (a)  Schedule  3.13(a)  is  an  accurate  list  of  all  material
Contracts  to which  the  Company  is a party,  or by  which  it,  or any of its
property is bound.  Except as disclosed on Schedule 3.13(a),  to Seller's or the
Company's  knowledge,  all such  Contracts  are in full  force and effect and no
party is in  material  breach  of, or default  under,  any such  Contract.  Each
Contract  is a valid  and  binding  obligation  to the  Company  enforceable  in
accordance  with its terms.  The Company has  delivered  to Buyer a complete and
correct  copy of each  Contract  (including  the Lease)  that is  identified  on
Schedule 3.13 as having been delivered to Buyer.

               (b) Except as disclosed in Schedule  3.13(b),  (i) all fixed rent
and  additional  rent  presently  due and owing to the Landlord  pursuant to the
Lease has been paid,  (ii) neither  Seller nor the Company knows of, or is aware
of any basis for,  the  occurrence  of any event which is, or with the giving of
notice or passage of time or both will become,  a condition of limitation  under
the  Lease,  on the part of either  the  Institute  or the  Landlord,  (iii) the
Company is currently  the sole tenant under the Lease and the Lease is presently
in full force and effect,  and (iv) the Company has not  received any notices of
default citing any defaults under the Lease which remain uncured.

         3.14. EMPLOYEES.

               (a)  Schedule  3.14 sets forth a complete and correct list of the
names,  current  annual  rates of  salary,  bonus,  employee  benefits,  accrued
vacation  times and pay,  sick pay,  and other  compensation  of all the present
officers, employees, and agents of Seller.

               (b) Except as set forth in Schedule  3.14,  all of the  Company's
employees  may be  terminated at will without any liability or obligation of the
Company  except  for  compensation  earned  prior to such  termination  and owed
pursuant to the terms of their  employment,  as disclosed in Schedules  3.14 and
3.15, prior to such termination.  Neither Seller nor the Company knows of, or is
aware of any basis for,  any claim  against the Company by any employee or agent
of the Company as a result of the Company's  execution,  delivery or performance
of this Agreement.

               (c)  The  Company  is not a party  to any  labor  agreement  with
respect to its employees with any union or similar labor  organization.  Neither
Seller  nor the  Company  knows of, or is aware of any basis for,  any  employee
unions (nor any  similar  labor or employee  organizations)  under any  statute,
custom or practice  governing the Company's  employees in their  capacity as the
Company's  employees.  There is no labor strike or  disturbance  pending,  or to
Seller's or the Company's  knowledge,  threatened against the Company nor is any
labor grievance  currently being asserted  against the Company.  Within the last
three years there has been no union organization campaign involving the Company.

                                       10
<PAGE>

         3.15. EMPLOYEE BENEFIT PLANS. Except as set forth in Schedule 3.15, the
Company  has  no  bonus,   deferred   compensation,   pension,   profit-sharing,
retirement,  stock purchase,  stock option,  group insurance or any other fringe
benefit plan,  arrangement  or practice,  whether formal or informal  (each,  an
"Employee  Plan").  Schedule 3.15 contains an accurate  description of, and sets
forth the annual amount payable  pursuant to, each Employee Plan.  Each Employee
Plan, if any, that is subject to the Employee  Retirement Income Security Act of
1974, as amended  ("ERISA") has been  administered  in compliance with ERISA and
all  other   applicable  laws,   rules,  and  regulations,   and  any  necessary
governmental  approvals  of the  Employee  Plan  have  been  obtained.  True and
complete  copies of the Employee  Plans and reports filed with any  governmental
agency with respect  thereto and the amount of  contributions  made by Seller to
any such Employee Plans for the last three fiscal years of the Company have been
furnished  to  Purchaser by Seller.  Except as set forth in Schedule  3.15,  the
Company does not have any obligations, contingent or otherwise, past or present,
under applicable laws, rules, or regulations or the terms of any Employee Plan.

         3.16. INSIDER/AFFILIATE ARRANGEMENTS;  SHAREHOLDER DEBT. The Company is
not a party to any transaction or understanding  with any officer or director or
Seller (or any  relative  thereof)  of the  Company  that  cannot be  terminated
without  liability  to the  Company.  The total  amount of  indebtedness  of the
Company to each of Seller, Bruce Advertising and any relative or other affiliate
of Seller (collectively, the "Shareholder Debt") is disclosed in Schedule 3.16.

         3.17. LITIGATION.  Except as disclosed in Schedule 3.17, neither Seller
nor  the  Company  knows  of  any  action,  suit,  inquiry,  student  complaint,
proceeding  or  investigation  pending or  threatened  by or before any court or
governmental  or other  regulatory or  administrative  agency,  or commission or
Membership  organization,  or any Accreditation or student financial  assistance
agency or  organization,  involving the Company or which questions or challenges
the  validity of this  Agreement or any action taken or to be taken by Seller or
the Company  pursuant to this Agreement or in connection  with the  transactions
contemplated  hereby;  and neither  Seller nor the Company know of any basis for
any  such  action,   lawsuit,   inquiry,   student   complaint,   proceeding  or
investigation.  The liability  claims against the Company  disclosed on Schedule
3.17 are fully covered by insurance.

         3.18.  INSURANCE.  Schedule  3.18  contains an accurate  summary of all
material policies of fire, liability,  workmen's compensation and other forms of
insurance owned or held by the Company.  All such policies are in full force and
effect,  and,  except as disclosed in Schedule  3.18,  all premiums with respect
thereto  have  been paid when due or before  the  grace  period  thereunder  has
elapsed,  and no notice of  cancellation  or termination  has been received with
respect to any such policy. Such policies are sufficient for compliance with all
requirements  of law and of all  agreements  to which  the  Company  is a party;
provide  adequate  insurance  coverage  for the  assets  and  operations  of the
Company;  will remain in full force and effect through the respective  dates set
forth in Schedule  3.18; and will not in any way be affected by, or terminate or
lapse by reason of, the  transactions  contemplated by this Agreement.  Schedule
3.18   identifies  all  types  of  material  risks  for  which  the  Company  is
self-insured.

                                       11
<PAGE>

         3.19.  ABSENCE OF CHANGE.  Except as disclosed in Schedule 3.19,  since
the date of the Unaudited Balance Sheet, there has not been any:

               (a)  transaction by the Company except in the ordinary  course of
the Company's business;

               (b)  material   adverse   change  in  the  financial   condition,
liabilities, assets, business or prospects of the Company;

               (c) destruction, damage to, or loss or impairment of any material
asset of Consent of the Company (whether or not covered by insurance);

               (d) labor  dispute or other event or condition  of any  character
materially and adversely affecting the financial condition, business, assets, or
prospects of the Company;

               (e) change in accounting methods or practices (including, without
limitation,  any change in depreciation or amortization policies or rate) by the
Company;

               (f) except in  accordance  with past  practice,  increase  in the
salary or other compensation  payable or to become payable by the Company to any
of its  officers,  directors,  or employees,  or the  declaration,  payment,  or
commitment or obligation of any kind for the payment, by the Company, of a bonus
or other additional salary or compensation to any such person;

               (g) amendment or termination of any Contract to which the Company
is a party,  or by which it or any of its  assets  or  properties  are  subject,
except in the ordinary course of the Company's business;

               (h)  waiver  or  release  of any  right or claim of the  Company,
except in the ordinary course of the Company's business;

               (i) declaration of, or agreement to make, any distribution of any
assets of any kind whatsoever;

               (j) citations, notices, or communications received by the Company
for any violations of any law, rule or regulation or Consent of any governmental
agency or other authority or Accreditation or Membership organization;

               (k) claim incurred by the Company for damages or alleged  damages
for actual or alleged  negligence  or other tort or breach of contract  which is
not fully covered by insurance underwritten by responsible insurers;

               (l)  sales,  transfers,  disposals  of  or  agreements  to  sell,
transfer or otherwise dispose of any of the assets,  properties or rights of the
Company,  except as incurred in the ordinary course of business  consistent with
the past practices of the Company;

               (m)  agreements   entered  into  by  the  Company   granting  any
preferential  rights to purchase any of the assets,  properties or rights of the
Company (including management and control thereof); or

               (n) agreement by Seller to do any of the things  described in the
preceding clauses (a) through (m).

                                       12
<PAGE>

         3.20.  BOOKS AND  RECORDS.  All of the  Company's  books  and  records,
including,  without limitation,  its books of account, corporate records, minute
book  and  stock  certificate  book  are up to date  and  complete  and  reflect
accurately and fairly the conduct of its business in all material respects since
its date of incorporation.

         3.21.  INTELLECTUAL  PROPERTY  RIGHTS.  Schedule 3.21 lists and briefly
describes all patents,  trademarks,  servicemarks,  tradenames,  copyrights, and
applications  therefor  registered  in the name of the  Company  or in which the
Company  has any right,  license,  or other  interest.  Except as  disclosed  in
Schedule  3.21,  the  Company is not a party to any license  agreements  whether
written or oral,  either as licensor or  licensee,  with respect to any patents,
trademarks,  servicemarks,  tradenames,  or copyrights or applications therefor.
Neither  Seller nor the  Company has any reason to believe  that (i) the Company
does not have good and  marketable  title to, or the right to use, such patents,
trademarks,  service marks, tradenames, trade secrets and know-how necessary for
the operation of the Company's  business,  without the payment of any royalty or
similar payment or (ii) that the Company is infringing on any patent, trademark,
servicemark,  tradename,  or  copyright  of others,  and neither  Seller nor the
Company is aware of any  infringement  by others of any such rights owned by the
Company.

         3.22. STUDENT ENROLLMENT.

               (a) The  information  disclosed  in  Schedule  3.22(a)  regarding
student  enrollments  at the Institute by semester,  from Fall 1994 through Fall
1999,  including  information  about TAP and PELL grants and student  loans,  is
accurate and complete in all material respects.

               (b) The information  disclosed in Schedule 3.22(b)  regarding the
number of  students  majoring  in each of the  degree  programs  offered  by the
Institute,  by semester  from Spring 1996  through  Fall 1999,  is accurate  and
complete in all material respects.

         3.23.  STUDENT  FINANCIAL  ASSISTANCE.  Except as disclosed in Schedule
3.23, (i) the Company is not subject to  disallowance of funds advanced or to be
reimbursed  to the Company with respect to any current or prior  semester  under
any federal or state  financial aid programs ("SFA  Programs") and (ii) there is
no basis for any disallowance. The amounts remaining to be repaid as a result of
all prior  disallowances under SFA Programs and the due dates of such repayments
are disclosed in Schedule 3.23.  Except as disclosed in Schedule  3.23,  neither
Seller  nor the  Company  knows  of, or is aware of any basis  for,  pending  or
threatened  claims,  assessments,  notices,  proposals to assess, or audits with
respect to any funds  disbursed  to the Company  under SFA Programs or for which
the Company has applied for disbursement.

         3.24. BANKING FACILITIES, CASH. Schedule 3.24 lists:

               (a) each bank,  savings and loan,  brokerage or similar financial
institution  in which the  Company  has an  account  or safety  deposit  box and
numbers of the  accounts  or safety  deposit  boxes  maintained  by the  Company
thereat;

               (b) the names of all signatories  authorized to draw on each such
account or to have access to any such safety deposit box facility, together with
a description of the authority  (and  conditions  thereof,  if any) of each such
signatory with respect thereto.

               (c) the  cash,  securities  and  other  property  on  deposit  or
maintained  in a brokerage  account at or invested  through each such  financial
institution as of January 12, 2000.

                                       13
<PAGE>

         3.25.  POWERS  OF  ATTORNEY  AND  SURETYSHIPS.  Except  as set forth on
Schedule  3.25,  the  Company  does not have any  general or  special  powers of
attorney  outstanding  (whether as grantor or grantee thereof) or any obligation
or liability  (whether actual,  accrued,  accruing,  contingent or otherwise) as
guarantor,  surety, co-signer,  endorser,  co-maker,  indemnitor or otherwise in
respect of the obligation of any person or entity except as endorser or maker of
checks endorsed or made in the ordinary course of business.

         3.26.  ILLEGAL  PAYMENTS.  The Company has not directly or  indirectly,
paid or delivered any fee, commission or other sum of money or item or property,
however characterized, to any finder, agent, government official or other party,
in the United States or any other country, which is in any manner related to the
business or  operations  of the Company and which is, or may be with the passage
of time or  discovery,  illegal  under any  federal,  state or local laws of the
United States (including, without limitation, the U.S. Foreign Corrupt Practices
Act)  or any  other  country  having  jurisdiction;  and  the  Company  has  not
participated, directly or indirectly, in any boycotts or other similar practices
affecting any of its actual or potential students.

         3.27.  NO BROKERS.  Neither the  Company,  nor Seller or any  officers,
directors,  employees  or  affiliates  of the Company  has  employed or made any
agreement  with any third party which  obligates the Company or Seller or any of
their  Affiliates  to pay any finder's  fee,  brokerage  fees or  commission  or
similar payment in connection with the transactions  contemplated  hereby, other
than Dr. Benjamin Weissman and for which Seller shall be solely responsible.

         3.28.  DISCLOSURE.  No  representations or warranties by Seller in this
Agreement and no statements  contained in any  document,  certificate,  or other
writing furnished or to be furnished by Seller or the Company to Buyer or any of
its representatives  pursuant to the provisions hereof or in connection with the
transactions  contemplated hereby, contains or will contain any untrue statement
of material fact or omits or will omit to state any material fact necessary,  in
light  of the  circumstances  under  which  it was  made,  in  order to make the
statements herein or therein not misleading.

                                  ARTICLE IV.

                     REPRESENTATIONS AND WARRANTIES OF BUYER

    Buyer represents and warrants to Seller and the Company as follows:

         4.1. ORGANIZATION,  ETC. Buyer is a corporation duly organized, validly
existing and in good standing  under the laws of the State of Delaware,  and has
full power and authority to carry on its business as it is now  contemplated and
to own the properties and assets it now owns and contemplates owning.

         4.2. AUTHORIZATION;  BINDING EFFECT. Buyer has full power and authority
to enter  into this  Agreement  and to carry out the  transactions  contemplated
hereby.  This Agreement is a valid and binding agreement of Buyer enforceable in
accordance  with its terms  except that (i) such  enforcement  may be subject to
bankruptcy, insolvency, reorganization,  moratorium or other similar laws now or
hereafter  in  effect  relating  to  creditors'  rights  and (ii) the  remedy of
specific  performance and injunctive and other forms of equitable  relief may be
subject to equitable  defenses and to the  discretion  of the court before which
any proceeding therefor may be brought.

         4.3. NO  VIOLATION.  Neither  Buyer's  execution  and  delivery of this
Agreement nor its consummation of the transactions  contemplated hereby will (i)
violate the Certificate of  Incorporation  or By-Laws of Buyer; or (ii) violate,
or be in conflict with, or constitute a default under, or cause the acceleration
of the  maturity of any debt or  obligation  pursuant  to, any Contract to which
Buyer is a party or by which Buyer is bound.

                                       14
<PAGE>

         4.4. LEASE.

               (a) By the  Closing,  Buyer  will have the  financial  ability to
satisfy the net worth  requirements of subparagraph  51E of the Lease,  provided
the representations and warranties of Seller in Section 3.23 are not breached.

               (b) Representatives of Buyer will cooperate with  representatives
of the  Company  in  negotiating  the  final  disposition  of all  claims of the
Landlord under the Lease that are disclosed in Schedule 3.13(b).

         4.5.  DUE  DILIGENCE.  With  Seller's  and the  Company's  cooperation,
Buyer's  representatives  have  conducted,  but  not  completed,  due  diligence
(without  waiving any claims  hereunder)  regarding,  among other  matters,  the
Lease,  the  continuation of the  Institute's  state and federal  Consents,  the
Company's books and records and previous disallowances under SFA Programs.

                                   ARTICLE V.

                       COVENANTS OF SELLER AND THE COMPANY

    The Company and Seller hereby covenant and agree with Buyer that:

         5.1. FULL ACCESS. The Company has afforded and shall continue to afford
to Buyer,  its counsel,  accountants  and other  representatives  full access to
books and records of the Company on  reasonable  notice and during the Company's
normal  business  hours so that  Buyer  may have full  opportunity  to make such
investigations  as it shall desire to make of the affairs of the Company and the
Company  shall cause its officers  and  accountants  to furnish such  additional
reasonable  financial and operating data and other information as is customarily
kept or prepared by the Company and as Buyer shall from time to time request.

         5.2. SUPPLEMENTS TO DISCLOSURE  SCHEDULES.  At or prior to the Closing,
Seller and the Company will  supplement or amend the  Disclosure  Schedules with
respect to any matters hereafter arising which, individually or in the aggregate
are material, and if existing or occurring at the date of this Agreement,  would
have been required to be disclosed in the Disclosure Schedules. No supplement or
amendment of the  Disclosure  Schedules  made  pursuant to this section shall be
deemed to cure any  breach of any  representation  of or  warranty  made in this
Agreement unless Buyer specifically agrees thereto in writing.

         5.3. SATISFACTION OF ALL CONDITIONS PRECEDENT.  From the date hereof to
the Closing, the Seller and the Company shall use their best efforts to cause to
be  satisfied  all  conditions  precedent to the  obligations  of Buyer to close
hereunder.

                                       15
<PAGE>

         5.4.  CONDUCT OF BUSINESS.  Through the Closing Date, the Company shall
conduct  its  business  substantially  in the  manner  in which it is  presently
conducted.

                                  ARTICLE VI.

               CONDITIONS TO OBLIGATIONS OF SELLER AND THE COMPANY

    Each and every  obligation of Seller and the Company under this Agreement to
be performed on or before the Closing shall be subject to the  satisfaction,  on
or before the  Closing of each of the  following  conditions,  unless  waived in
writing by Seller or the Company:

         6.1. NO  GOVERNMENT  PROCEEDING OR  LITIGATION.  Except as disclosed in
Schedule  3.17,  no suit,  action,  investigation,  inquiry  or  other  legal or
administrative  proceeding  by  any  governmental  authority,  Accreditation  or
Membership organization, or other party shall have been instituted or threatened
which questions the validity or legality of the transactions contemplated hereby
or could reasonably result in the foregoing.

         6.2.  REPRESENTATIONS  AND  WARRANTIES  TRUE. The  representations  and
warranties  of  Buyer  contained  herein  and in  any  certificate  or  document
delivered  and to be delivered by Buyer shall be in all material  respects  true
and  accurate  as of the date  when  made and at and as of the  Closing  Date as
though such  representations  and warranties  were made at and as of such dates,
except for changes  expressly  permitted or contemplated by this Agreement,  and
Buyer shall have executed and delivered to Seller a certificate to such effect.

         6.3.  PERFORMANCE.  Buyer shall have  performed  and complied  with all
agreements,  obligations  and  conditions  required  by  this  Agreement  to  be
performed or complied with by Buyer, on or prior to the Closing, and Buyer shall
have executed and delivered to Seller a certificate to such effect.

         6.4.  WARRANT  AGREEMENT.  Seller and EVCI shall have  entered into the
Warrant Agreement in the form of Exhibit A to this Agreement.

         6.5.   ESCROW    AGREEMENT.    Seller,    the   Company,    Buyer   and
Fischbein Badillo Wagner Harding  shall  have  entered into the Escrow Agreement
in the form of Exhibit B to this Agreement (the "Escrow Agreement").

         6.6. INVESTMENT. Buyer shall have invested at least $500,000 in cash in
the Company by means of loans or contributions to equity.

         6.7.  DEBT  REPAYMENT.  Seller shall have received  repayment,  by wire
transfer to an account designated by Seller, of $22,500 of the Shareholder Debt,
without interest.

                                       16
<PAGE>

                                  ARTICLE VII.

                       CONDITIONS TO OBLIGATIONS OF BUYER

    Each and every  obligation of Buyer under this  Agreement to be performed on
or before the  Closing  shall be subject to the  satisfaction,  on or before the
Closing of each of the following conditions, unless waived in writing by Buyer:

         7.1.  CONSENTS.  All  Consents  required  in  order to  consummate  the
transactions contemplated by this Agreement shall have been obtained.

         7.2.  NO  GOVERNMENT   PROCEEDING  OR  LITIGATION.   No  suit,  action,
investigation,  inquiry  or other  legal  or  administrative  proceeding  by any
governmental body, Accreditation or Membership organization or other party shall
have been  instituted  or  threatened  which  questions or affects the validity,
legality  or value  of the  transactions  contemplated  hereby  or  which  could
reasonably  result in the foregoing  or,  except as disclosed in the  Disclosure
Schedules, could have a material adverse affect on Seller or the Company.

         7.3.  REPRESENTATIONS  AND  WARRANTIES  TRUE. The  representations  and
warranties of Seller and the Company contained in this Agreement, the Disclosure
Schedules  and in any  certificates  and  other  documents  delivered  and to be
delivered by Seller and/or the Company,  pursuant hereto,  or in connection with
the transactions  contemplated  hereby,  shall be true, complete and accurate in
all material respects as of the date when made and at and as of the Closing Date
as though such representations and warranties were made at and as of such dates,
except for changes  expressly  permitted  or  contemplated  by the terms of this
Agreement,  and Seller shall have  executed and delivered to Buyer a certificate
to such effect.

         7.4.  PERFORMANCE.  Seller and the  Company  shall have  performed  and
complied  with all  agreements,  obligations  and  conditions  required  by this
Agreement to be  performed  or complied  with by them on or prior to the Closing
Date,  and Seller shall have executed and  delivered to Buyer a  certificate  to
such effect.

         7.5. FINANCIAL  STATEMENTS.  The Company shall have provided Buyer with
audited  financial  statements  for its  fiscal  year  ended  June 30,  1999 and
unaudited  financial  statements for its six months ending December 31, 1999, in
such  form  as  Buyer's  auditors  shall  reasonably  request  to  ensure  their
compliance  with  applicable  requirements  of  Regulations  S-B  and S-X of the
Securities and Exchange Commission.

         7.6. ENROLLMENT.  For the Spring 2000 semester,  at least 550 full-time
students shall be enrolled at the Institute who have or, Buyer is satisfied will
have, their tuition fully paid from sources other than loans from the Institute.

                                       17
<PAGE>

         7.7.  SHAREHOLDER  DEBT. Except for the $22,500 repaid to Seller at the
Closing,  all of the Shareholder  Debt shall have been contributed to the equity
of the Company.

         7.8. ESCROW AGREEMENT. Seller, the Company, Buyer and Fischbein Badillo
Wagner Harding shall have entered into the Escrow Agreement.

         7.9. OTHER CLOSING  DELIVERIES.  Buyer shall have received:  (a) a long
form  certificate  of  good  standing  of the  Company  or such  other  evidence
reasonably  satisfactory  to Buyer,  regarding the Company's good standing and a
copy of the Company's  charter documents on file with, and certified by, the New
York  Department  of State and (b) an  opinion  of  Seller's  and the  Company's
counsel, in form reasonably satisfactory to Buyer's counsel, with respect to the
matters set forth in Exhibit C to this Agreement.

                                 ARTICLE VIII.

           SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

         8.1. INVESTIGATIONS; SURVIVAL OF WARRANTIES.

               (a) The respective  representations and warranties of the parties
contained herein or in any certificates or other documents delivered prior to or
at  the  Closing  shall  not be  deemed  waived  or  otherwise  affected  by any
investigation made by any party hereto. Furthermore,  the disclosure to Buyer in
the Disclosure  Schedules or otherwise of an  investigation,  audit,  failure to
file,  liability  claim or other event,  which is not  disclosed on a Disclosure
Schedule  as a  liquidated  dollar  amount,  shall  not  relieve  Seller  of any
liability for Losses resulting from such investigation,  audit, failure to file,
liability claim or other event;  provided,  however, that (i) the full extent of
Seller's  liability for any such Losses  resulting from New York State Education
Department and U.S.  Department of Education  investigations  or audits shall be
limited to  reduction of the unpaid  portion of the Price by offset  pursuant to
Section 8.2;  (ii) Seller shall have no  responsibility,  and have no liability,
for any Losses arising from any regulatory or administrative review,  assessment
or determination of the Company's compliance with any laws, rules or regulations
of any kind relating to facts or  circumstances  existing at any point after the
Closing;  and (iii)  Seller  shall have no  liability  whatsoever  for Losses in
connection  with the  Company's  non-compliance  with any legal,  regulatory  or
administrative notice, filing or other requirement after the Closing.

               (b) All  representations  and warranties (other than with respect
to taxes in Section 3.9, Employee Plans in the last sentence of Section 3.15 and
disallowances  under SFA Programs in Section 3.23),  shall survive the execution
and delivery hereof and the Closing hereunder for one year following the Closing
Date and shall thereupon  expire together with any right to  indemnification  in
respect thereof  (except to the extent a notice  asserting a claim for breach of
any such  representation  or warranty  shall have been given prior to such date)
Representations  and warranties  with respect to taxes in Section 3.9,  Employee
Plans in the last sentence of Section 3.15 and disallowances  under SFA Programs
in Section 3.23 shall survive the execution and delivery  hereof and the Closing
until the expiration of any  applicable  statute of  limitations,  including any
extensions  thereof,  and  shall  thereupon  expire  together  with any right to
indemnification  in respect thereof  (except to the extent a notice  assenting a
claim for breach or any such  representation  or warranty  shall have been given
prior to such date).

                                       18
<PAGE>

         8.2. INDEMNIFICATION.

               (a) SELLER'S  OBLIGATION.  Seller  agrees to  indemnify  and hold
harmless Buyer and its stockholders,  officers, directors and affiliates against
and in respect to all damages,  claims, losses and expenses (including,  without
limitation to, attorneys' fees and disbursements)  reasonably incurred (all such
amounts being hereinafter  sometimes referred to as "Losses") arising out of (i)
any  misrepresentation  or breach of any  representation or warranty made by the
Seller  or the  Company  in this  Agreement  or  pursuant  hereto;  and (ii) the
non-performance or breach of any covenant,  agreement or obligation of Seller or
the Company contained in this Agreement.  Notwithstanding any other provision of
this Agreement, the sole source for payment or reimbursement of Buyer for Losses
resulting  from  Seller's  breach of Section  3.23 shall be by  reduction of the
Price by offset  pursuant  to  Section  8.2 or by  payment  to Buyer  from funds
deposited in escrow, plus accrued interest, pursuant to the Escrow Agreement.

               (b) BUYER'S  OBLIGATION.  Buyer shall indemnify,  defend and hold
harmless the Company and its  stockholder,  officers,  directors and  affiliates
from  and  against  any  Losses  arising  out  of or  due  to a  breach  of  any
representation,  warranty,  covenant or  agreement  of Buyer  contained  in this
Agreement  or in any  document  or  other  writing  delivered  pursuant  to this
Agreement.

               (c)  THIRD  PARTY   CLAIMS.   If  either  Seller  or  Buyer  (the
"Indemnitee")  receives notice of any claim or the commencement of any action or
proceeding   with   respect  to  which  the  other  is   obligated   to  provide
indemnification (the "Indemnifying  Party") pursuant to such Sections (a) or (b)
hereof, the Indemnitee shall promptly give the Indemnifying Party written notice
thereof.  The  failure to give such notice  shall not  relieve the  Indemnifying
Party  of its  indemnification  obligation  hereunder  (except  as set  forth in
Section 8.1). The Indemnifying  Party may compromise,  settle or defend, at such
Indemnifying  Party's own expense and by such Indemnifying  Party's own counsel,
any such matter  involving  the  asserted  liability  of the  Indemnitee  if the
Indemnifying  Party  has  agreed  to pay  100% of any  liability  of  Indemnitee
resulting  from  such  defense,  settlement  or  compromise.  In the  event  the
Indemnifying Party has not agreed to assume 100% of any such liability for which
Indemnitee is seeking  indemnification  hereunder,  the parties  hereto agree in
good faith to jointly choose and control counsel to defend, settle or compromise
such claim and, the fees of such joint counsel shall jointly be shared until the
resolution of such claim and a determination of the extent of liability, if any,
of the Indemnifying Party hereunder.  Thereupon,  if the claim made hereunder is
found to have been one as to which the  Indemnifying  Party is  responsible  for
hereunder,  it shall be liable for all of such  counsel fees and if found not to
be so liable hereunder, the Indemnitee shall be responsible for all such counsel
fees; provided, however, that if more than one claim is involved in a lawsuit or
if both the Indemnitee and Indemnifying  Party are found to be liable,  then the
right to recover counsel fees shall be shared equitably and in proportion to the
claims which are finally determined to be subject to  indemnification  hereunder
and the  parties  liable  therefor.  The  Indemnitee  shall not be  entitled  to
reimbursement  for  its  counsel  fees in an  indemnification  claim  except  as
hereinabove   provided  in  this  Section  8.2  and  in  the  event   Indemnitee
successfully makes a claim for indemnification against the Indemnifying Party to
recover any sum pursuant to a claim for indemnification under this Agreement. In
any event, the Indemnitee,  the Indemnifying Party and the Indemnifying  Party's
counsel  shall  cooperate in the  compromise  of, or defense  against,  any such
asserted  liability.  If the Indemnifying Party chooses to defend any claim, the
Indemnitee shall make available to the Indemnifying Party any books,  records or
other  documents  within its control that are necessary or appropriate  for such
defense  and the  Indemnitee  shall not be  entitled  to  reimbursement  for its
counsel fees which are incurred after the  Indemnifying  Party has agreed to pay
100% of any liability resulting from a claim made hereunder.

                                       19
<PAGE>

               (d) INTEREST.  If any party to this Agreement ("Breaching Party")
breaches any of its  obligations to any other party to this  Agreement  ("Harmed
Party")  under this Article VIII and such breach  causes the Harmed Party to pay
or expend  money,  such  expended sum shall bear interest at the rate of 12% per
annum from the date the Harmed  Party is  required  to pay or expend such sum to
the date the Breaching Party pays such sum to the Harmed Party.

               (e) OFFSET RIGHT.  Buyer shall have the right to cause the offset
of any amounts due from Seller  under this  Section 8.2 against  amounts owed to
Seller by Buyer  pursuant  to the  Agreement  that  remain  unpaid.  Such offset
amounts include any Losses resulting from any and all  disallowances  made under
any SFA Program with  respect to any period prior to the Closing  (each a "Prior
Period Disallowance").  In this connection,  notwithstanding any other provision
of this Agreement or any disclosure in any  Disclosure  Schedule,  the amount of
Losses resulting from any and all Prior Period Disallowances and Losses, if any,
specifically  referred to in Section 8.1(a) shall reduce the Price except to the
extent of any portion of the Price that has been paid to Seller. However, if the
Company receives any notice of a proposed investigation or audit of the Company,
or such an  investigation  or audit is commenced  without notice,  under any SFA
Program,  any 50% EBITDA  Portion  that is required  to be paid to Seller  shall
instead be paid to, and thereafter released by, the Escrow Agent pursuant to the
terms of the Escrow Agreement.

                                  ARTICLE IX.

                              SELLER'S NON-COMPETE

         9.1.  NON-COMPETE.  Seller agrees that he shall not, from and after the
Closing, until the fifth anniversary of the Closing Date:

     (a) directly or indirectly own, engage in, manage,  operate, join, control,
or  participate in the ownership,  management,  operation,  or control of, or be
connected as a stockholder,  director,  officer, employee, agent, partner, joint
venturer,  member,  beneficiary  or  otherwise  with  any  corporation,  limited
liability company,  partnership,  sole  proprietorship,  association,  business,
trust,  or other  organization,  entity or  individual  which in any way is then
competing  with the Company (i) within a 100 mile radius of the Institute or any
of its branches or extensions wherever located, or (ii) by delivering courses by
video  conferencing  or  other  distance  learning  services  to any  geographic
location  where the Company  delivers  competitive  courses  ((i) and (ii) being
"Sellers Non-compete Area"), provided, however, that Seller may own, directly or
indirectly,  securities of any entity traded on any national securities exchange
or listed on Nasdaq if Seller does not,  directly or indirectly,  own 3% or more
of any class of equity securities, or securities convertible into or exercisable
or  exchangeable  for 3% or more of any  class  of  equity  securities,  of such
entity;

               (b)  aid,  abet  or  otherwise  assist  any  business,  or  other
organization  or entity in  competing  with the Company in Seller's  Non-compete
Area;

               (c)  directly  or  indirectly  request or advise  any  present or
future  students or vendors of the  Institute to cancel any  contracts  with the
Institute or curtail their dealings with the Institute;

               (d)  directly  or  indirectly  request or advise  any  present or
future service provider or financial resource of the Institute or the Company to
withdraw, curtail, or cancel the furnishing of such service or resource;

               (e) directly or indirectly  disclose or  communicate to any other
person, firm, or corporation,  the names of any past, present or future students
of the Institute;

               (f) directly or  indirectly  induce or attempt to  influence  any
employee of the Institute or the Company to terminate his or her employment.

                                       20
<PAGE>

         9.2.  INJUNCTIVE  RELIEF.  Seller  agrees that a violation  of Seller's
Non-compete,  or any provision  thereof,  will cause  irreparable  injury to the
Company and Buyer and that the Company or Buyer shall be  entitled,  in addition
to any other  rights and remedies it may have,  at law or in equity,  to seek an
injunction  enjoining  and  restraining  Seller from  violating or attempting to
violate any provision of the Seller's Non-compete.

         9.3. BLUE PENCILING. In the event any provision of Seller's Non-compete
as applied to any  circumstances  shall be  adjudged by a Court to be invalid or
unenforceable,  such  invalidity  shall in no way affect any other  provision of
Seller's  Non-compete  or the  application  of any such  provision  in any other
circumstance,  or the validity or enforceability  of this Agreement.  Seller and
Buyer intend  Seller's  Non-compete to be enforced as written.  However,  in the
event any provision, or any part of Seller's Non-compete, is adjudged by a Court
to be  unenforceable  because  of the  duration  of such  provision  or the area
covered thereby, Seller and Buyer agree that the Court making such determination
shall  have the power to reduce  the  duration  and/or  area of such  provision,
and/or  to delete  specific  words or  phrases  (generally  referred  to as blue
penciling), and, in its reduced or blue penciled form, such provision shall then
be enforceable and shall be enforced.

                                   ARTICLE X.

                            MISCELLANEOUS PROVISIONS

         10.1. TERMINATION.

               (a) TERMINATION BY MUTUAL WRITTEN CONSENT.  This Agreement may be
terminated and the transactions  contemplated  hereby may be abandoned,  for any
reason and at any time prior to the Closing Date, by the mutual written  consent
of Seller, the Company and Buyer.

               (b)  TERMINATION  BY THE COMPANY OR BUYER.  This Agreement may be
terminated and the transactions  contemplated  hereby may be abandoned by action
of Seller or Buyer if (i) the  Closing  shall not have  occurred  at or prior to
5:00 P.M.,  New York City time, on January 31, 1999 (the "Latest  Closing Date")
provided,  however,  that the right to terminate this Agreement pursuant to this
Section  9.1(b) shall not be available to any party whose failure to fulfill any
of its obligations  under this Agreement has been the cause of or has resulted n
the failure of the  Closing to occur at or before such time and date;  provided,
further, However, that if the Closing shall not have occurred on or prior to the
Latest  Closing Date,  the Closing may only occur after the Latest  Closing Date
with the written consent of Buyer.

               (c)  TERMINATION  BY BUYER.  This Agreement may be terminated and
the transactions contemplated hereby may be abandoned by Buyer at any time prior
to the Closing  Date,  if (i) Seller or the Company shall have failed to comply,
in any material  respect,  with any of its covenants or agreements  contained in
this   Agreement,   (ii)  there  shall  have  been  a  material  breach  of  any
representation  or warranty made by Seller in this Agreement,  (iii) there shall
have  occurred  any event or  development,  or there shall be in  existence  any
condition,  having or reasonably likely to have a material adverse effect on the
Company,  or (iv)  Seller  or the  Company  shall  have  failed to  satisfy  the
conditions provided in Article VII hereof.

               (d) TERMINATION BY SELLER AND THE COMPANY.  This Agreement may be
terminated and the transactions  contemplated  hereby may be abandoned by Seller
and the  Company  at any time prior to the  Closing  Date,  if Buyer  shall have
failed to  comply  with any of its  covenants  or  agreements  or  breached  any
representation or warranty made by it in this Agreement.

               (e) EFFECT ON  TERMINATION.  In the event of the  termination  of
this Agreement  pursuant to this Section 10.1, this Agreement  shall  thereafter
become void and have no effect,  and no party hereto shall have any liability or
obligation to any other party hereto in respect of this  Agreement,  except that
the provisions of Article XIII and Sections 10.1,  10.2,  10.5,  10.6,  10.8 and
10.10-10.14 shall survive any such termination; provided, however, that no party
shall be released from any liability  hereunder if this  Agreement is terminated
and the  transactions  contemplated  hereby  abandoned  by reason of (i) willful
failure  of such  party  to  perform  its  obligations  hereunder  or  (ii)  any
misrepresentation made by such party of any matter set forth herein.

                                       21
<PAGE>

         10.2. CONFIDENTIALITY.

               (a)  PRE-CLOSING.  Each party hereto will hold and will cause its
or their  employees,  consultants and advisors to hold in strict  confidence the
negotiations  regarding  and the  existence  of  this  Agreement  and all  other
documents and information (collectively,  "Confidential Information") concerning
the  other  parties  furnished  it  by  such  other  parties  or  its  or  their
representatives  in  connection  with  the  transactions  contemplated  by  this
Agreement  (except to the extent that  Confidential  Information can be shown to
have been (i) previously  known by the party to which it was furnished,  (ii) in
the  public  domain  through no fault of such  party,  or (iii)  later  lawfully
acquired from other sources by the party to which it was  furnished);  provided,
however,  Buyer  shall have the right to  disclose  or cause  others to disclose
Confidential  Information  to the extent  Buyer deems  reasonably  necessary  to
respond  to  oral or  written  requests  or  inquiries  from  federal  or  state
regulators  or in order to obtain any  Consent.  Each  party  will not  disclose
Confidential Information, except to its auditors, attorneys, financial advisors,
bankers and other  consultants  and advisors on a "need to know"  basis,  unless
compelled to disclose by judicial or  administrative  process or, in the opinion
of its or their  counsel,  by other  requirements  of law. This  covenant  shall
survive the consummation of the  transactions  contemplated by this Agreement or
the earlier  termination  of this  Agreement  for a period of one year.  Written
Confidential  Information shall be returned to the party or parties providing it
promptly after written request therefor.

               (b)   POST-CLOSING.   Seller   acknowledges   that   Confidential
Information concerning the business affairs of Interboro will be the property of
the Company and not Seller following the Closing.  Therefore, Seller agrees that
he will  not  disclose  to any  person  or use for his own  account  any of such
Confidential  Information unless and to the extent that it is already or becomes
generally  known to and  available  for use by the  public  otherwise  than as a
result of Seller's  act or omission  to act or is  required to be  disclosed  by
Seller to a court of law or  pursuant to lawful  subpoena  or summons,  provided
Seller  has given the  Company  and Buyer  reasonable  notice of any  attempt to
legally compel Seller to disclose any such  information,  observations  or data.
Seller  agrees to deliver to the  Company,  at any time the Company may request,
all memoranda,  notes, plans, records,  reports, and other documents (and copies
thereof)  constituting   Confidential  Information  relating  to  the  Company's
business.

         10.3. FURTHER  ASSURANCES.  The parties shall from time to time, at the
reasonable request of another party, and without further cost or expense to such
requesting  party,  execute and deliver such other documents and instruments and
take  such  other  actions  as may be  reasonably  requested,  in order to fully
consummate the transactions contemplated hereby.

         10.4.  AMENDMENT AND MODIFICATION.  This Agreement may only be amended,
modified and supplemented by written agreement of the parties.

         10.5.  EXPENSES.  Except as otherwise  provided herein,  Seller and the
Company  agree that all fees and expenses  incurred by them in  connection  with
this  Agreement  shall  be  borne by them  and  Buyer  agrees  that all fees and
expenses incurred by it in connection with this Agreement shall be borne by it.

                                       22
<PAGE>

         10.6. NOTICES. All notices,  requests, demands and other communications
required or permitted  hereunder shall be in writing and shall be deemed to have
been duly given and received if delivered by hand, receipt acknowledged, or fax,
receipt confirmed or, if mailed,  four days after having been mailed,  certified
or registered mail with postage prepaid:

               (a) If to  Seller  or the  Company,  to each  of  them  at  their
respective  addresses set forth in the first  paragraph of this Agreement with a
copy to David M. Levy,  Esq.,  Levy,  Boonshoft &  Lichtenberg  LLP, 477 Madison
Avenue,  New York, NY 10022, or to such other person(s) or address(es) as Seller
and the Company shall furnish to Buyer in writing.

               (b) If to  Buyer,  to it at its  address  set  forth in the first
paragraph  of  this  Agreement,   with  a  copy  to  Joseph  D.  Alperin,  Esq.,
Fischbein Badillo Wagner Harding,  909 Third Avenue,  New York, NY 10022,  or to
such other person or address as Buyer shall furnish to Seller and the Company in
writing.

         10.7. ASSIGNMENT. This Agreement and all of the provisions hereof shall
be  binding  upon and  inure to the  benefit  of the  parties  hereto  and their
respective  successors and permitted assigns, but neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned by Seller or
the Company  or,  following  the  Closing,  by Buyer or the Company  without the
written  consent of Seller  (which  Seller  shall not  unreasonably  withhold or
delay).

         10.8.  GOVERNING LAW. This Agreement and the legal  relations among the
parties hereto shall be governed by and construed in accordance with the laws of
the State of New York.

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

         10.10.  HEADINGS.  The  headings of the  Sections  and Articles of this
Agreement  are inserted  for  convenience  only and shall not  constitute a part
hereof or affect in any way the meaning or interpretation of this Agreement.

         10.11.  ENTIRE  AGREEMENT.  This  Agreement,  including the  Disclosure
Schedules,  Exhibits hereto, and the other documents and certificates  delivered
pursuant to the terms hereof,  set forth the entire agreement and  understanding
of the parties hereto in respect of the subject  matter  contained  herein,  and
supersede   all   prior   agreements,    promises,   covenants,    arrangements,
communications,  representations or warranties,  whether oral or written, by any
officer, employee or representative of any party hereto.

         10.12. JOINTLY DRAFTED AGREEMENT.  The parties acknowledge that each of
them, and their  attorneys,  have had the  opportunity to draft and comment upon
this  Agreement  and have in fact done so, and that this  Agreement is the joint
product of negotiation  among them.  The parties agree that, in construing  this
Agreement,  each term shall be given its  ordinary  meaning.  The parties  waive
application of the doctrine of construction  against the drafter and acknowledge
that,  for purposes of  construction  of this  Agreement,  they shall jointly be
considered  to be the  drafters  of the  Agreement  and of each  term  contained
herein.

         10.13.  THIRD PARTIES.  Except as specifically set forth or referred to
herein, nothing herein,  expressed or implied, is intended or shall be construed
to confer upon or give to any person or entity other than the parties hereto and
their successors or permitted assigns, any rights or remedies under or by reason
of this Agreement.

                                       23
<PAGE>

         10.14. SEVERABILITY.  Any provision of this Agreement which is invalid,
illegal or unenforceable in any jurisdiction shall, as to that jurisdiction,  be
ineffective  to the extent of such  invalidity,  legality  or  unenforceability,
without   affecting  in  any  way  the  remaining   provisions  hereof  in  such
jurisdiction or rendering that or any other provision of this Agreement invalid,
illegal or unenforceable in any other jurisdiction.

         10.15.   DISPUTE   RESOLUTION.   Any  and  all   disputes,   claims  or
controversies arising out of or relating to this Agreement that are not resolved
within  ten  (10)  business  days  shall  be  submitted  to  final  and  binding
arbitration  in New  York  City  before  J-A-M-S/ENDISPUTE,  or  its  successor,
pursuant to the United States Arbitration Act, 9 U.S.C. Sec. 1 et seq. Any party
hereto may  commence the  arbitration  process  called for in this  Agreement by
filing a written demand for arbitration with  J-A-M-S/ENDISPUTE,  with a copy to
the other  party.  The  arbitration  will be conducted  in  accordance  with the
provisions of J-A-M-S/ENDISPUTE's  Streamlined  Arbitration Rules and Procedures
in effect at the time of filing of the demand for arbitration.  The parties will
cooperate with J-A-M-S/ENDISPUTE and with one another in selecting an arbitrator
from  J-A-M-S/ENDISPUTE's  panel of neutrals,  and in scheduling the arbitration
proceedings  so that a final  determination  can be made within thirty (30) days
after submission to arbitration. The parties covenant that they will participate
in the arbitration in good faith, and that they will share equally in its costs.
However,  except as  otherwise  provided  in  Section  8.2(c),  once an award is
rendered, the arbitrator shall determine the allocation of costs and expenses of
the arbitration,  including attorneys fees, between the parties.  The provisions
of this Section  10.15 may be enforced by any Court of  competent  jurisdiction,
and the party  seeking  enforcement  shall be entitled to an award of all costs,
fees and expenses,  including  attorneys'  fees, to be paid by the party against
whom enforcement is ordered.

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                                       24

<PAGE>

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written.

                                           /s/ Bruce R. Kalisch
                                           ------------------------------------
                                                    Bruce R. Kalisch

                                           INTERBORO HOLDING, INC.

                                           By:  /s/ Arol I. Buntzman
                                                _______________________________
                                                 Dr. Arol I. Buntzman, Chairman

                                           INTERBORO INSTITUTE, INC.

                                           By:  /s/ Bruce R. Kalisch
                                                _______________________________
                                                 Bruce R. Kalisch, President

                                     25WARRANT AGREEMENT, dated as of January 14, 2000 (the "Effective Date"),
between  EDUCATIONAL  VIDEO  CONFERENCING,  INC.,  a Delaware  corporation  (the
"Company"), and BRUCE R. KALISCH ("Kalisch").

         The Company  has agreed to issue to Kalisch  warrants  ("Warrants")  to
purchase an aggregate of up to 25,000 shares ("Warrant Shares") of the Company's
common  stock,  par value $.0001 per share (the "Common  Stock"),  in connection
with the closing of a Stock Purchase Agreement (the "Purchase  Agreement") among
Kalisch, the Company and Interboro Institute, Inc. ("Interboro").

         THEREFORE,  in  consideration  of  the  mutual  undertakings  contained
herein, the Company and Kalisch hereby agree as follows:

         1.  ISSUANCE OF WARRANTS.  Subject to the  conditions  precedent in the
next two sentences,  the Company shall issue, as of each of July 1, 2001,  2002,
2003, 2004 and 2005, and deliver within 100 days of each such date,  Warrants to
purchase 5,000 Warrant Shares or, in case Interboro  changes the last day of its
fiscal year to a calendar  year,  such issuance  shall be as of January 1, 2002,
2003,  2004,  2005 and 2006  (each such date is a  "Warrants  Issue  Date").  No
Warrants shall be issued on a Warrants Issue Date unless  Interboro has at least
$500,000 of EBITDA  (calculated  as provided in the Purchase  Agreement) for the
fiscal year of Interboro  ending  immediately  prior to the Warrants  Issue Date
(each,  a  "Measuring  Year").  However,  in the event that  EBITDA is less than
$500,000 in any  Measuring  Year,  the Warrants that cannot then be issued as of
the next Warrants Issue Date, will be issued on a subsequent Warrants Issue Date
provided  cumulative EBITDA for all of the preceding Measuring Years is not less
than the product $500,000 and the number of such preceding Measuring Years.

                  Each certificate evidencing Warrants (a "Warrant Certificate")
shall be substantially in the form of Annex A attached hereto.

         2. REGISTRATION. The Company shall maintain a register for the Warrants
at its  principal  executive  offices for the  registration  of the issuance and
transfer  of  Warrants.  The Company  shall be entitled to treat the  registered
holder  of any  Warrant  (the  "Holder")  as the owner in fact  thereof  for all
purposes and shall not be bound to recognize  any equitable or other claim to or
interest in such Warrant on the part of any other person.  The Warrants shall be
registered in the name of Kalisch.

         3.  TRANSFER  AND  EXCHANGE OF  WARRANTS.  Subject to  compliance  with
applicable  securities  laws,  any  Warrant  shall  be  transferable  only  upon
surrender thereof at the Company's  principal executive offices duly endorsed by
its Holder or by such Holder's duly authorized  attorney or  representative,  or
accompanied  by proper  evidence  of  succession,  assignment  or  authority  to
transfer.  Upon any  registration  of transfer,  the Company shall deliver a new
Warrant or Warrants to the persons  entitled  thereto.  In  addition,  a Warrant
Certificate may be exchanged,  at the option of the Holder thereof,  for another
Warrant Certificate or Warrant Certificates of different denominations,  of like
tenor and  representing  in the aggregate the right to purchase a like number of
Warrant Shares upon surrender at the Company's principal executive offices.

                                       1
<PAGE>

         4.       EXERCISE OF WARRANTS.

         4.1  EXERCISE  PRICE AND TERM.  Each Warrant  shall  entitle the Holder
thereof to purchase  from the Company one Warrant  Share at 25.00 per share (the
"Exercise  Price"),  as such purchase  price and number of Warrant Shares may be
adjusted  from time to time  pursuant  to the  provisions  of  Section 8 hereof,
payable in full at the time of exercise of such  Warrant.  The  Warrants  issued
pursuant to Section 1 hereof may be exercised,  in whole or in part, at any time
or from time to time  commencing  on the Warrants  Issue Date and ending at 5:00
p.m.,  New York City time on the sixth  anniversary  of the date of this Warrant
Agreement (the  "Expiration  Date").  After the Expiration Date, any unexercised
Warrants  shall be void and all rights of the  Holder(s)  with  respect  thereto
shall cease.

         4.2  PAYMENT OF EXERCISE  PRICE.  At the  election  of any Holder,  the
aggregate  Exercise Price for any Warrants  being  exercised may be paid: (a) in
cash in the amount of the aggregate Exercise Price then in effect for the number
of Warrants being exercised, (b) by surrender to the Company of shares of Common
Stock  having an aggregate  Fair Market Value (as defined  below) on the date of
exercise equal to the aggregate  Exercise Price then in effect for the number of
Warrants being exercised, (c) by surrender to the Company of Warrants covering a
number of Warrant  Shares  having an  aggregate  Fair Market  Value,  net of the
applicable  aggregate  Exercise Price therefor,  equal to the aggregate Exercise
Price then in effect for the number of  Warrants  being  exercised,  or (d) by a
combination  of the  aforementioned  methods of  payment.  For  purposes of this
Agreement,  the "Fair  Market  Value" per share of Common  Stock on a given date
shall be: (i) if the Common Stock is listed on a national securities exchange or
included on the Nasdaq  National  or Small Cap  Markets,  the closing  price per
share of Common Stock on such date (or, if there was no trading on such date, on
the next preceding day on which there was trading);  (ii) if the Common Stock is
not listed on a national  securities exchange or included on the Nasdaq National
or Small Cap Markets,  the average of the closing bid and asked  quotations  per
share of Common  Stock as reported by Nasdaq (or the National  Quotation  Bureau
Incorporated  or any  similar  organization)  on such date (or, if there were no
quotations for the Common Stock on such date, on the next preceding day on which
there were quotations) as provided by such organization; and (iii) if the Common
Stock is not traded on a national  securities exchange or included on the Nasdaq
National or Small Cap Markets and bid and asked  quotations  are not provided by
Nasdaq  (or  the  National   Quotation   Bureau   Incorporated  or  any  similar
organization),  as  determined by the agreement of the parties in good faith or,
in the absence of such agreement,  as determined  pursuant to arbitration  under
the auspices of the American Arbitration Association.

         4.3 EXERCISE PROCEDURE. Warrants may be exercised by their surrender at
the Company's  principal  executive offices,  with the Election to Purchase form
attached  thereto duly  completed  and executed,  accompanied  by payment of the
aggregate  Exercise  Price  for the  Warrant  Shares to be  purchased  upon such
exercise.  Payment for the Warrant Shares shall be made: (a) if payment is to be
made in cash, by a certified or bank cashier's check payable to the order of the
Company or by wire  transfer to an account  designated  by the  Company,  (b) if
payment  is to be made  through  a  surrender  of shares  of  Common  Stock,  by
surrender of  certificates  duly endorsed for transfer  (with all transfer taxes
paid or  provided  for),  or (c) if  payment  is to be made  by a  surrender  of
Warrants,  by surrender of  certificates  representing  such Warrants.  Promptly
after the exercise of any Warrants,  upon compliance with Section 5 hereof,  the
Company  shall  issue a  certificate  or  certificates,  for the  number of full
Warrant Shares to which the Holder thereof is entitled, registered in accordance
with the instructions set forth in the Election to Purchase,  together with cash
as  provided  in  Section  10 of this  Warrant  Agreement  payable in respect of
fractional shares and (if applicable) a new Warrant  Certificate or Certificates
representing  all remaining  unexercised  Warrants.  All Warrant Shares shall be
duly  authorized,  validly  issued,  fully  paid,  non-assessable  and  free  of
preemptive  rights, and free from all liens and charges other than those created
by the Holder. Upon compliance with Section 5 hereof, and applicable  securities
laws,  certificates  representing such Warrant Shares and remaining  unexercised
Warrants  shall be issued by the  Company in such names and  denominations,  and
shall be delivered to such persons, as are specified by written  instructions of
the Holder.

                                       2
<PAGE>

         4.4 RECORD HOLDER.  Each person in whose name any such  certificate for
Warrant  Shares is issued  shall for all  purposes  be deemed to have become the
holder of record of the  Warrant  Shares  represented  thereby  on the date upon
which such Warrants were surrendered for exercise, accompanied by payment of the
aggregate  Exercise Price as aforesaid,  irrespective of the date of issuance or
delivery of such certificate for Warrant Shares; provided,  however, that if, at
the date of the surrender of such Warrants and payment of the aggregate Exercise
Price,  the  transfer  books for the  Common  Stock or any other  class of stock
purchasable upon the exercise of such Warrants shall be closed, the certificates
for the Warrant  Shares or for shares of such other class of stock in respect of
which such  Warrants  are then  exercisable  shall be issuable as of the date on
which such books shall next be opened  (whether  before or after the  Expiration
Date) and,  until such date,  the Company  shall be under no duty to deliver any
certificate  for such Warrant Shares or for shares of such other class of stock;
and,  provided,  further,  that the transfer books of record,  unless  otherwise
required by law, shall not be closed at any one time for a period longer than 30
days.

         5. PAYMENT OF TAXES.  The Company  shall  promptly pay all  documentary
stamp taxes  attributable to the issuance of Warrants or the issuance of Warrant
Shares upon the exercise of any Warrants, except that any transfer taxes payable
in connection  with the issuance of Warrants or Warrant Shares in any name other
than that of the Holder of the Warrants surrendered shall be paid by such Holder
and, if any such tax would otherwise be payable by the Company, no such issuance
or delivery shall be made unless and until the person  requesting  such issuance
has paid to the Company the amount of any such tax or it is  established  to the
reasonable satisfaction of the Company that any such tax has been paid.

         6.  REPLACEMENT  WARRANTS.  In case any  Warrant  Certificate  shall be
mutilated,  lost,  stolen or  destroyed,  the Company shall issue and deliver in
exchange and  substitution  for and upon  cancellation of the mutilated  Warrant
Certificate  or in lieu of and  substitution  for the lost,  stolen or destroyed
Warrant Certificate, a new Warrant Certificate of like tenor and representing an
equivalent  right or  interest,  but only upon  receipt of  evidence  reasonably
satisfactory  to the Company of such loss,  theft or destruction of such Warrant
Certificate, together with an appropriate agreement regarding indemnification of
the Company relating to the issuance of a replacement Warrant Certificate.

         7.  RESERVATION  OF  WARRANT  SHARES.  The  Company  shall at all times
reserve  and keep  available  for  issuance  the  number of its  authorized  but
unissued shares of Common Stock or other stock sufficient to permit the exercise
in full of the  Warrants  and any  transfer  agent for the Common Stock or other
stock  issuable upon the exercise of Warrants  shall be directed at all times to
reserve such number as shall be sufficient  for such  purpose.  The Company will
keep a copy of this Warrant  Agreement on file with each such transfer agent and
will supply such transfer agent with duly executed stock  certificates  for such
purpose  and will  provide  or  otherwise  make  available  any cash that may be
payable as  provided in Section 10 hereof.  All  Warrants  surrendered  upon the
exercise  thereof shall be canceled.  After the Expiration Date, no shares shall
be subject to reservation in respect of any unexercised Warrants.

                                       3
<PAGE>

         8. ADJUSTMENTS.

         8.1 ADJUSTMENT OF EXERCISE PRICE.

                  8.1.1  INITIAL  EXERCISE  PRICE.  The  Exercise  Price,  which
initially  will be as provided in Section 4.1,  shall be adjusted and readjusted
from  time to time as  provided  in this  Section  8.1 and,  as so  adjusted  or
readjusted,  shall remain in effect until a further  adjustment or  readjustment
thereof is required by this Section 8.1.

                  8.1.2 ISSUANCE OF ADDITIONAL  SHARES OF COMMON STOCK.  In case
the Company, at any time after the date hereof, shall issue additional shares of
Common Stock for no consideration in connection with a dividend,  stock split or
other  distribution  on the Common Stock  (including,  without  limitation,  any
distribution of Common Stock by way of spin-off,  reclassification  or corporate
rearrangement), then, and in each such case, the Exercise Price shall be reduced
concurrently  with such  issuance to a price  (calculated  to the nearest  cent)
determined by multiplying such Exercise Price by a fraction of which:

                  (a) the  numerator  shall be the  number  of  shares of Common
Stock outstanding immediately prior to such issuance, and

                  (b) the  denominator  shall be the  number of shares of Common
Stock outstanding immediately after such issuance.

                  8.1.3 DIVIDENDS AND DISTRIBUTIONS. In case the Company, at any
time after the date hereof,  shall pay or make a dividend or other  distribution
on the Common Stock (including,  without  limitation,  any distribution of stock
(other than Common Stock) or other  securities,  including  securities  that are
convertible  into or exchangeable  or exercisable for Common Stock,  property or
options  by  way  of   dividend,   spin-off,   reclassification   or   corporate
rearrangement)  then,  and in each  such  case,  the  Exercise  Price in  effect
immediately  prior to the close of  business  on the  record  date fixed for the
determination  of the  holders  of the Common  Stock  entitled  to receive  such
dividend or other  distribution  shall be reduced,  effective as of the close of
business on such  record  date,  to a price  (calculated  to the  nearest  cent)
determined by multiplying such Exercise Price by a fraction of which:

                                       4
<PAGE>

                  (a) the  numerator  shall  be the  Exercise  Price  in  effect
immediately  prior to the close of  business on such record date minus the value
of such dividend or other distribution (as determined in good faith by the Board
of Directors of the Company) applicable to one share of Common Stock, and

                  (b) the  denominator  shall be such  Exercise  Price in effect
immediately prior to the close of business on such record date;

provided, however, that no such reduction shall be made pursuant to this Section
8.1.3 for a  dividend  payable  in shares of Common  Stock  (which is subject to
Section  8.1.2) or payable in cash or other  property  and  declared  out of the
earned surplus (i.e.,  retained  earnings) of the Company (excluding any portion
thereof  resulting  from a revaluation  of property) or which is declared but is
then not paid or made. For purposes of the foregoing, a dividend or distribution
payable  other than in cash shall be  considered  payable out of earned  surplus
only to the extent  that such earned  surplus is charged an amount  equal to the
fair value of such dividend or distribution at the time of payment as determined
in good  faith by the  Board of  Directors  of the  Company.  If a  dividend  or
distribution  covered  under  this  Section  8.1.3  is  declared  prior  to  the
Expiration Date but not paid by such date, the Expiration Date shall be extended
until the payment thereof.

                  8.1.4   ADJUSTMENTS  FOR   COMBINATIONS,   etc.  In  case  the
outstanding  shares  of Common  Stock  shall be  combined  or  consolidated,  by
reclassification  or otherwise,  into a lesser number of shares of Common Stock,
the  Exercise  Price  in  effect   immediately  prior  to  such  combination  or
consolidation   shall  be  proportionately   increased   concurrently  with  the
effectiveness of such combination or consolidation.

                  8.1.5 MINIMUM  ADJUSTMENT OF EXERCISE  PRICE. If the amount of
any adjustment of the Exercise Price required pursuant to this Section 8.1 would
be less than $.05, such amount shall be carried forward,  and an adjustment with
respect  thereto shall be made at the time of and together  with any  subsequent
adjustment  that,  together  with such amount and any other amount or amounts so
carried forward, shall aggregate at least $.05.

                  8.1.6 MINIMUM EXERCISE PRICE.  Notwithstanding anything to the
contrary set forth herein, no adjustment  provided for in this Section 8.1 shall
reduce the Exercise  Price below the par or stated value of the Common Stock and
the Company  shall have no  obligation  to change such value to permit a further
reduction of the Exercise Price; provided, however, that, except in the event of
any  transactions  of the type  contemplated  under Section  8.1.4  hereof,  the
Company agrees not to change the par or stated value of the Common Stock.

                                       5
<PAGE>

         8.2 ADJUSTMENT OF NUMBER OF WARRANT SHARES. Upon each adjustment of the
Exercise  Price pursuant to the provisions of Section 8.1, the number of Warrant
Shares that the Holder of a Warrant  shall be entitled to receive upon  exercise
thereof shall be adjusted to equal that number of Warrant  Shares  determined by
multiplying  the number of Warrant Shares issuable upon exercise of such Warrant
immediately  prior to such  adjustment  of the  Exercise  Price by a fraction of
which:

                  (a) the  numerator  shall  be the  Exercise  Price  in  effect
immediately prior to such adjustment of the Exercise Price, and

                  (b) the  denominator  shall be the  Exercise  Price in  effect
immediately following such adjustment of the Exercise Price.

         8.3 NOTICE,  EVIDENCE OF  ADJUSTMENTS.  Whenever the Exercise  Price is
adjusted as herein  provided,  the Company shall promptly cause a notice setting
forth the  adjusted  Exercise  Price and  adjusted  number  of  Warrant  Shares,
issuable  upon  exercise  of each  Warrant to be mailed to each  Holder,  at the
Holder's last address appearing in the Warrant register,  and shall cause a copy
thereof to be mailed to each transfer  agent for the Common  Stock.  The Company
shall retain a firm of independent  public  accountants  of recognized  standing
selected by the Board of Directors (who may be the regular accountants  employed
by the  Company)  to make any  computation  required  by this  Section  8, and a
certificate  signed  by such  firm  shall  accompany  said  notice  and shall be
conclusive  evidence of the  correctness of such  adjustments,  absent  manifest
error.

         9. CONSOLIDATION, MERGER, SALE OF ASSETS, REORGANIZATION, etc.

         9.1  GENERAL  PROVISIONS.  In case the  Company  at any time  after the
Effective Date (a) shall consolidate with or merge into any other person and not
be the continuing or surviving person of such  consolidation  or merger,  or (b)
shall permit any other person to consolidate  with or merge into the Company and
the Company shall be the continuing or surviving  person but, in connection with
such consolidation or merger, the Common Stock or other securities then issuable
upon exercise of the Warrants shall be changed into or exchanged for cash, stock
or other securities or property, or (c) shall transfer,  directly or indirectly,
all or substantially  all its properties and assets to any other person,  or (d)
shall effect a capital reorganization or reclassification of the Common Stock or
other  securities  then  issuable  upon  exercise of the Warrants  (other than a
capital  reorganization  or  reclassification  resulting in an adjustment of the
Exercise  Price as provided in Section 8.1),  then, and in the case of each such
transaction,  the Company shall make proper  provision such that, upon the terms
and in the  manner  provided  in this  Warrant  Agreement,  the  Holder  of each
Warrant,  upon the exercise  thereof at any time after the  consummation of such
transaction, shall be entitled to receive, at the Exercise Price then in effect,
in lieu of the Common  Stock or other  securities  issuable  upon such  exercise
immediately  prior to such  transaction,  the  amount  of  cash,  stock or other
securities  or property to which such  Holder  would have been  entitled if such
Warrant  had been  exercised  in full  immediately  prior  to such  transaction,
subject to adjustments  subsequent to such  transaction as nearly  equivalent as
possible to the adjustments provided for in Section 8 and this Section 9.

                                       6
<PAGE>

         9.2 ASSUMPTION OF OBLIGATIONS.  Notwithstanding  anything  contained in
this Warrant Agreement to the contrary,  the Company shall not effect any of the
transactions  described in Section 9.1(a), (b), (c) or (d) unless,  prior to the
consummation  thereof,  the person (other than the Company) that may be required
to deliver any cash,  stock or other securities or property upon exercise of any
Warrant as provided herein shall assume, by written instrument  delivered to the
Holder(s) of the Warrants, (a) the obligations of the Company under this Warrant
Agreement and the Warrants (and if the Company shall survive the consummation of
any such  transaction,  such  assumption  shall not release the Company from any
continuing  obligations  of the Company  under this  Warrant  Agreement  and the
Warrants) and (b) the  obligation to deliver to such Holder such cash,  stock or
other  securities or other property as such Holder may be entitled to receive in
accordance with the provisions of this Section 9; provided,  however,  that this
Section 9.2 shall not be applicable to any transaction  described in Section 9.1
if all such  cash,  stock,  property  or  other  consideration  receivable  upon
consummation of such  transaction is delivered to the Company at such time. Such
person  shall  similarly  deliver  to the  Company  an opinion of counsel to the
effect that this Warrant Agreement and the Warrants shall continue in full force
and effect  after any such  transaction  and that the terms  hereof  (including,
without  limitation all of the provisions of Section 8 and this Section 9.2) and
thereof shall be applicable to the cash,  stock or other  securities or property
that such person may be required to deliver upon any exercise of the Warrants.

         9.3 NO DILUTION OR  IMPAIRMENT.  The Company shall not, by amendment of
its  certificate  of  incorporation  or by-laws or  through  any  consolidation,
merger, reorganization,  transfer of assets, dissolution,  issue, sale, grant or
assumption of securities or any other voluntary  action,  avoid or seek to avoid
the observance or  performance of any of the terms of this Warrant  Agreement or
the Warrants,  but will at all times, whether or not requested to do so, in good
faith assist in the carrying out of all such terms and in the taking of all such
action as may be necessary or  appropriate in order to protect the rights of the
Holder(s) against dilution or other impairment.  Without limiting the generality
of the  foregoing,  the Company  agrees  that it shall take all such  reasonable
action as may be necessary or  appropriate in order that the Company may validly
and  legally  issue  fully  paid and  non-assessable  shares  of stock  upon the
exercise of all Warrants from time to time outstanding.

         10.  FRACTIONAL  INTERESTS.  The Company shall not be required to issue
fractions of shares of Common Stock upon the exercise of any  Warrants.  If more
than one Warrant  shall be  presented  for exercise at the same time by the same
Holder,  the number of Warrant  Shares that shall be issuable  upon the exercise
thereof shall be computed on the basis of the aggregate number of Warrant Shares
purchasable on exercise of the Warrants so presented. If any fraction of a share
of Common Stock would, except for the provisions of this Section 10, be issuable
on the exercise of any Warrant,  the Company shall purchase such fraction for an
amount in cash equal to the same  fraction of the Fair Market Value of one share
of Common Stock on the date of exercise.

                                       7
<PAGE>

         11.  RESTRICTIONS  ON  DISPOSITIONS.   Kalisch  acknowledges  that  the
Warrants and the Warrant  Shares have not been  registered  under the Securities
Act of 1933,  as amended (the "Act") and  accordingly  that the Warrants and the
Warrant  Shares  may not be  transferred  except  pursuant  to (i) an  effective
registration  statement  under  the Act or (ii)  any  available  exemption  from
registration  under the Act permitting  such  disposition of securities and upon
delivery  to the Company of an opinion of counsel,  reasonably  satisfactory  to
counsel for the Company,  that such  exemption from  registration  is available.
Kalisch  agrees that the  certificates  representing  the  Warrants  and Warrant
Shares shall bear an appropriate  restrictive legend to such effect and that the
Company has no obligation to register the Warrants and Warrant  Shares under the
Act except as provided in Section 12.

         12. REGISTRATION RIGHTS.

         12.1  PIGGYBACK  REGISTRATION.  If,  at  any  time  within  the  period
commencing after the first Warrants Issue Date and ending at 5:00 p.m., New York
City time, on the Expiration  Date, the Company  proposes to register any voting
equity  securities  under  the Act in a  primary  registration  on behalf of the
Company  and/or  in a  secondary  registration  on  behalf  of  holders  of such
securities, and the registration form to be used may be used for registration of
the Warrant Shares, the Company shall give prompt written notice (which shall be
at least  30 days  prior to the date of the  initial  filing  of the  applicable
registration  statement) to the Holders of Warrants and/or Warrant Shares of its
intention to effect registration and shall offer to include in such registration
such  number of Warrant  Shares with  respect to which the Company has  received
written requests for inclusion  therein within 10 business days after receipt of
such notice from the Company,  upon  generally the same terms and  conditions as
the person or persons for whom such  registration  is being  effected has agreed
to. This  Section 12.1 is not  applicable  to any  registration  statement to be
filed by the  Company on Forms S-4 or S-8 or any  successor  forms.  The Company
shall not be obligated to cause to be effective any registration statement as to
which it has given notice to the Holders of Warrants  and/or  Warrant Shares and
shall have  discretion to withdraw any such  registration  without  liability to
Holders of Warrants and/or Warrant Shares.

         Notwithstanding  the  foregoing,  if the  managing  underwriter  of the
offering  shall  determine  in good faith and advise the Company in writing that
the inclusion of the Warrant Shares with the other  securities  being offered in
such registration would materially and adversely affect the marketability of the
offering, then the Company and the managing underwriter may reduce the number of
Warrant  Shares  to be  registered  on a pro  rata  basis  proportionate  to the
reduction of all other holders of securities  participating in such registration
pursuant to the exercise of piggyback  registration  rights.  In such event, the
Company may reduce the number of Warrant Shares to be registered to zero as long
as no other securities are registered in such registration statement pursuant to
an exercise of piggyback registration rights.

                                       8
<PAGE>

         12.2 REGISTRATION  PROCEDURES.  If and whenever the Company is required
by the provisions of this Section 12 to effect the  registration  of any Warrant
Shares under the Act, the Company will:

                  (a)  furnish to each  seller of Warrant  Shares such number of
copies  of the  registration  statement  and  the  prospectus  included  therein
(including each preliminary  prospectus) as such persons  reasonably may request
in order to  facilitate  the public  sale or other  disposition  of the  Warrant
Shares covered by such registration statement;

                  (b) use its reasonable best efforts to register or qualify the
Warrant Shares covered by such  registration  statement under such securities or
blue sky laws of such jurisdictions as each seller shall request, and do any and
all other acts and things which may be necessary  under such  securities or blue
sky  laws to  enable  such  seller  to  consummate  the  public  sale  or  other
disposition in such  jurisdictions  of the securities to be sold by such seller,
except that the Company shall not for any such purpose be required to qualify to
do  business  as a foreign  corporation  in any  jurisdiction  wherein it is not
qualified or to file any general consent to service of process;

                  (c) use its reasonable best efforts to list the Warrant Shares
covered by such registration statement with any securities exchange or automated
quotation system on which the Common Stock of the Company is then listed;

                  (d) immediately  notify each seller of Warrant Shares,  at any
time when a prospectus  relating  thereto is required to be delivered  under the
Act, of the  happening of any event of which the Company has knowledge as result
of which the prospectus  contained in such  registration  statement,  as then in
effect,  included  an untrue  statement  of a material  fact or omits to state a
material fact required to be stated  therein or necessary to make the statements
therein not misleading in light of the circumstances then existing; and

                   (e) make available upon  reasonable  notice for inspection by
each seller of Warrant Shares, any underwriter participating in any distribution
pursuant to such registration statement,  and any attorney,  accountant or other
agent  retained by such seller of Warrant Shares or  underwriter,  all financial
and other records,  pertinent corporate documents and properties of the Company,
and cause  the  Company's  officers,  directors  and  employees  to  supply  all
information  reasonably  requested  by any such seller,  underwriter,  attorney,
accountant or agent in connection with such registration statement.

                                       9
<PAGE>

         12.3. SELLER COVENANTS.  In connection with each registration hereunder
the  sellers of Warrant  Shares  will  furnish  to the  Company in writing  such
information with respect to themselves and the proposed  distribution by them as
reasonably  shall be necessary and shall be requested by the Company in order to
comply with federal and applicable state securities laws.

                  In connection with each registration  pursuant to this Section
12 covering  an  underwritten  public  offering,  each seller of Warrant  Shares
agrees to enter into a written agreement with the managing  underwriter  (unless
the  Holder  is the  managing  underwriter)  in such  form and  containing  such
provisions as are customary in the  securities  business for such an arrangement
between such  underwriter  and  companies of the Company's  size and  investment
stature.

                  Each seller of Warrant  Shares  severally  agrees  that,  upon
receipt of any notice from the Company of the happening of any event of the kind
described  in  Section  12.2  (d),  such  seller  will  immediately  discontinue
disposition of Warrant Shares pursuant to the registration  statement until such
seller's  receipt  of the  copies  of the  supplemented  or  amended  prospectus
contemplated  by Section  12.2 (d) hereof,  and, if so directed by the  Company,
such seller will deliver to the Company all copies,  other than  permanent  file
copies then in such seller's possession,  of the most recent prospectus covering
such Warrant Shares at the time of receipt of such notice.  If the Company shall
give  such  notice,  the  Company  shall  extend  the  period  during  which the
registration  statement  shall be  maintained  effective  by the  number of days
during the period from and including  the date of the giving of notice  pursuant
to Section  12.2 (d) to the date when the Company  shall make  available to such
seller a prospectus  supplemented or amended to conform with the requirements of
Section 12.2 (d).

                  Each seller of Warrant Shares agrees that, if requested,  such
seller will enter into an agreement  containing  customary  indemnification  and
contribution  provisions as a condition to registration of such seller's Warrant
Shares.

         12.4 EXPENSES.  All expenses  incurred by the Company in complying with
Sections 12.1 and 12.2,  including,  without  limitation,  all  registration and
filing  fees,   printing  expenses,   fees  and  disbursements  of  counsel  and
independent  public  accountants for the Company,  fees and expenses  (including
counsel fees) incurred in connection  with  complying  with state  securities or
"blue sky" laws, fees of the National  Association of Securities Dealers,  Inc.,
transfer taxes, fees of transfer agents and registrars,  costs of insurance, but
excluding  any  Selling  Expenses,  are  herein  referred  to  as  "Registration
Expenses." "Selling Expenses," as used herein, means all underwriting  discounts
and selling commissions applicable to the sale of Warrant Shares and expenses of
counsel for the sellers of Warrant Shares.

                                       10
<PAGE>

                  The  Company  will pay or  cause  to be paid all  Registration
Expenses of the participating  sellers of Warrant Shares in connection with each
registration  statement  under Section 12.1. All Selling  Expenses in connection
with  each  registration  statement  under  Section  12.1  shall be borne by the
participating  sellers of Warrant  Shares in proportion to the number of Warrant
Shares sold by each, or by such participating  sellers of Warrant Shares as they
may agree.

         13. NOTICES TO HOLDERS.

13.1 Nothing contained in this Warrant Agreement or in any of the Warrants shall
be construed as conferring upon the Holder(s)  thereof as such the right to vote
or to receive  dividends or to consent or to receive notice as  stockholders  in
respect of the  meetings of  stockholders  or the  election of  directors of the
Company or any other matter or any other rights  whatsoever as  stockholders  of
the Company.

         13.2 In the event the Company intends to:

                  (a) make any  distribution  on or with  respect  to its Common
Stock (or other  securities  that may then be issuable in lieu  thereof upon the
exercise of Warrants), including without limitation any dividend or distribution
from earned surplus,  any dividend or distribution of stock, assets or evidences
of indebtedness, or any similar distribution,

                  (b) issue  subscription  rights or  warrants to holders of its
Common Stock,

                  (c) consolidate or merge with or into another entity,

                  (d)  liquidate,  dissolve  or sell  or  otherwise  dispose  of
substantially all its assets, or

                  (e) take any other action that would  result in an  adjustment
to the Exercise  Price or an adjustment to the number of Warrant Shares that the
Holder of a Warrant shall be entitled to receive upon exercise thereof, then the
Company  shall cause a notice of its intention to take such action to be sent by
first-class mail, postage prepaid, at least 20 days prior to the date fixed as a
record date or the date of closing the transfer books for the  determination  of
the stockholders  entitled to such distribution or issuance or to vote upon such
proposed consolidation,  merger, liquidation,  sale or conveyance to each Holder
at the Holder's address appearing on the Warrant  register,  but failure to mail
or to receive such notice or any defect therein or in the mailing  thereof shall
not  affect  the  validity  of  any  action  taken  in   connection   with  such
distribution, issuance, consolidation, merger, liquidation, sale or conveyance.

                                       11
<PAGE>

         14. NOTICES. Any notice or demand required by this Warrant Agreement to
be given or made by any Holder to or on the Company shall be sufficiently  given
or  made if sent  by  registered  or  certified  mail,  postage  prepaid,  or by
facsimile transmission address as follows:

                  Educational Video Conferencing, Inc.
                  35 East Grassy Sprain Road
                  Suite 200
                  Yonkers, New York 10710
                  Telephone: 914.787.3500
                  Facsimile:  914.395.3498
                  Attention:  Dr. Arol I. Buntzman

Any notice or demand  required by this Warrant  Agreement to be given or made by
the Company to or on the Holder of any Warrant  shall be  sufficiently  given or
made,  whether or not such Holder  receives the notice,  if sent by  first-class
mail, postage prepaid,  addressed to such Holder at his last address as shown on
the books of the Company.

         15. GOVERNING LAW. The validity, interpretation and performance of this
Warrant Agreement,  of each Warrant issued hereunder and of the respective terms
and  provisions  thereof  shall be governed by the laws of the State of New York
without giving effect to principles of conflicts of law.

         16.  COUNTERPARTS.  This  Warrant  Agreement  may  be  executed  in two
counterparts,  each of which when so executed shall be deemed to be an original;
but such counterparts shall together constitute but one and the same instrument.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Warrant Agreement as
of the date first set forth above.

                                  EDUCATIONAL VIDEO CONFERENCING, INC.

                                  By:     /s/ Arol I. Buntzman
                                          -------------------------------------
                                           Name:  Dr. Arol I. Buntzman
                                           Title:   Chairman

                                           /s/ Bruce R. Kalisch
                                           ------------------------------------
                                                    BRUCE R. KALISCH

                                       13
<PAGE>

                                                                         ANNEX A

THE  WARRANTS  REPRESENTED  HEREBY AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE
THEREOF HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED
(THE "ACT");  AND, NONE OF SUCH SECURITIES MAY BE OFFERED,  OR SOLD OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT, OR (ii) AN AVAILABLE  EXEMPTION FROM REGISTRATION UNDER THE ACT RELATING TO
THE  DISPOSITION OF SECURITIES AND UPON DELIVERY TO THE COMPANY OF AN OPINION OF
COUNSEL, REASONABLY SATISFACTORY TO COUNSEL FOR THE COMPANY, THAT SUCH EXEMPTION
FROM  REGISTRATION  UNDER  THE  ACT IS  AVAILABLE.  IN  ADDITION,  THE  WARRANTS
REPRESENTED HEREBY MAY NOT BE TRANSFERRED OR EXERCISED EXCEPT IN ACCORDANCE WITH
THE  PROVISIONS  OF THE WARRANT  AGREEMENT  DATED AS OF JANUARY 14, 2000 BETWEEN
EDUCATIONAL VIDEO CONFERENCING, INC. AND BRUCE R. KALISCH.

No. ___                                                        ______ Warrants

                     Void After 5:00 p.m. New York City Time

                                 On ____________

                      Educational Video Conferencing, Inc.

                               Warrant Certificate

         THIS  CERTIFIES  THAT,  for  value  received,   BRUCE  R.  KALISCH,  or
registered  assigns,  is the Holder of the number of Warrants  set forth  above,
each  Warrant  entitling  the  owner  thereof  to  purchase  at any  time  after
_________________  and prior to 5:00 p.m.,  New York City time, on  ____________
(the  "Expiration  Date"),  one fully  paid and  non-assessable  share of common
stock,  par value  $.0001  per share  ("Common  Stock"),  of  Educational  Video
Conferencing,  Inc., a Delaware corporation (the "Company"), at a purchase price
per share (the "Exercise Price") initially equal to $25.00 upon presentation and
surrender  of this  Warrant  Certificate  with the Form of  Election to Purchase
(attached  hereto)  duly  executed.  The number of  Warrants  evidenced  by this
Warrant  Certificate  (and the  number  of  shares  that may be  purchased  upon
exercise  hereof (the "Warrant  Shares") set forth above and the Exercise  Price
set forth  above are the number and  Exercise  Price as of the date of  original
issuance of this Warrant  Certificate,  based on the Common Stock as constituted
at such date.  As  provided  in the Warrant  Agreement  referred  to below,  the
Exercise  Price and the number or kind of shares that may be purchased  upon the
exercise of the Warrants  evidenced by this Warrant  Certificate  are subject to
modification and adjustment upon the happening of certain events.

         This Warrant Certificate is subject to, and entitled to the benefits of
all of the terms, provisions and conditions of the Warrant Agreement dated as of
January  14,  2000  between the  Company  and Bruce R.  Kalisch,  which  Warrant
Agreement is hereby  incorporated herein reference and made a part hereof and to
which reference is hereby made for a full description of the rights, limitations
of rights, duties and immunities hereunder of the Company and the Holders of the
Warrant  Certificates.  A copy  of  the  Warrant  Agreement  is on  file  at the
principal office of the Company.

                                       14
<PAGE>

         This Warrant Certificate,  with or without other Warrant  Certificates,
upon  surrender at the  principal  office of the Company,  may be exchanged  for
another Warrant  Certificate or Warrant  Certificates of like tenor,  evidencing
Warrants  entitling the Holder to purchase a like aggregate  number of shares of
Common Stock as the Warrants  evidenced  by the Warrant  Certificate  or Warrant
Certificates  surrendered  entitled  such Holder to  purchase.  If this  Warrant
Certificate  shall be exercised in part,  the Holder hereof shall be entitled to
receive  upon   surrender   hereof  another   Warrant   Certificate  or  Warrant
Certificates for the number of whole Warrants not exercised.

         The  Exercise  Price  shall  be paid in  cash  or by  surrender  of the
appropriate  number of Warrants or shares of Common Stock in a cashless exercise
or in a combination thereof as provided in Section 4.2 of the Warrant Agreement.

         No  fractional  shares of Common Stock will be issued upon the exercise
of any Warrant or Warrants  evidenced hereby, but in lieu thereof a cash payment
will be made as provided in the Warrant Agreement.

         No Holder of this Warrant  Certificate,  as such,  shall be entitled to
vote or to receive dividends or to consent or to receive notice as a stockholder
of the meetings of stockholders  for the election of directors of the Company or
any other  matter or to any rights  whatsoever  as  stockholder  of the Company,
until the Warrant or Warrant  evidenced by this Warrant  Certificate  shall have
been  exercised and the Warrant  Shares shall have been delivered as provided in
the Warrant Agreement.

         If this Warrant  Certificate  shall be surrendered  for exercise within
any period  during which the transfer  books for the Common Stock or other class
of stock issuable upon exercise of this Warrant  Certificate  are closed for any
purpose,  the Company shall not be required to make delivery of certificates for
shares  issuable  upon such  exercise  until the date of the  reopening  of said
transfer books as provided in the Warrant Agreement.

         IN WITNESS WHEREOF, Educational Video Conferencing, Inc. has caused the
signature (or  facsimile  signature) of its Chairman and Secretary to be printed
hereon.

EDUCATIONAL VIDEO CONFERENCING, INC.

BY:      ------------------------------------

Name:    ------------------------------------

Title:   ------------------------------------

Attest:  ------------------------------------
           Secretary

                                       15
<PAGE>

                               FORM OF ASSIGNMENT

(To be executed by the Holder if such Holder  desires to transfer  this  Warrant
Certificate).

TO EDUCATIONAL VIDEO CONFERENCING, INC.

         FOR VALUE RECEIVED,  __________________________________________  hereby
sells,  assigns  and  transfers  unto   ________________________   this  Warrant
Certificate,  together  with all rights,  title and interest  therein,  and does
hereby irrevocably  constitute and appoint  ______________________,  to transfer
the within Warrant  Certificate on the books of the within-named  Company,  with
full power of substitution.

DATED: ____________________

                                          SIGNATURE ____________________________
Signature Guaranteed:

NOTICE:

         The signature on the foregoing  assignment  must correspond to the name
as  written  upon  the face of this  Warrant  Certificate  in every  particular,
without alteration or enlargement or any change whatsoever.

                                       16
<PAGE>

                          FORM OF ELECTION TO PURCHASE

(To be executed if Holder  desires to exercise  the  Warrants  evidenced by this
Warrant Certificate).

TO EDUCATIONAL VIDEO CONFERENCING, INC.

The    undersigned     hereby    (1)    irrevocably     elects    to    exercise
___________________________________   Warrants   represented   by  this  Warrant
Certificate  to purchase  __________  shares of Common Stock  issuable  upon the
exercise of such Warrants,  (2) makes payment in full of the aggregate  Exercise
Price for such  Warrants by enclosure of a bank  cashier's  check or money order
therefor or by  surrendering  Warrants or shares of Common Stock for application
to the aggregate  Exercise Price, upon condition that new Warrants be issued for
the balance of the Warrants  remaining,  and (3) requests that  certificates for
shares and Warrants be issued in the name of.

(Please insert social security or other
         identifying number)____________________

(Please print name and address)

If such  number of  Warrants  shall not be all the  Warrants  evidenced  by this
Warrant Certificate, a new Warrant Certificate for the balance remaining of such
Warrants shall be registered in the name of and delivered to:

(Please insert social security or other
         identifying number)_____________________

(Please print name and address)

DATED:_________________, 20___

                                                  SIGNATURE_____________________

Signature Guaranteed:

NOTICE:  The signature on the foregoing  election to purchase must correspond to
the  name as  written  upon  the  face  of this  Warrant  Certificate  in  every
particular, without alteration or enlargement or any change whatsoever.

                                       17

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