Document:

WARRANT  AGREEMENT  dated as of June 23, 2000,  between Tech  Laboratories,
Inc., a New Jersey corporation (the "Company"), and M3Communication,  Inc., (the
"Holder") a Florida corporation.

                                   WITNESSETH:

     WHEREAS,  the Holder has entered into an Asset Purchase  Agreement with the
Company  dated June 1,  2000,  as amended  June 9, 2000,  pursuant  to which the
Company  granted to the Holder a warrant (the "Warrant") to purchase one hundred
thousand  (100,000) shares of the common stock, $.01 par value per share, of the
Company ("Common Stock").

     NOW,  THEREFORE,  in consideration of the mutual promises herein contained,
the Company and the Holder mutually covenant and agree as follows:

     1. Grant.  The Holder is hereby granted the right to purchase,  at any time
from the date hereof,  until 5:30 p.m., New York time, on the third  anniversary
of the  date of this  Agreement,  up to an  aggregate  of one  hundred  thousand
(100,000) shares of Common Stock.

     2.  Warrant   Certificates.   The  warrant   certificates   (the   "Warrant
Certificates") delivered and to be delivered pursuant to this Agreement shall be
in the form set forth in Exhibit A attached hereto and made a part hereof,  with
such appropriate insertions,  omissions,  substitutions, and other variations as
required or permitted by this Agreement.

     3. Exercise of Warrant.  The Warrants are exercisable at the exercise price
per share of Common Stock set forth in Section 6 hereof  payable by certified or
official bank check.  Upon surrender of a Warrant  Certificate  with the annexed
Form of  Election  to  purchase  duly  executed,  together  with  payment of the
exercise  price,  the  Holder  shall be  entitled  to receive a  certificate  or
certificates  for the shares of Common Stock so purchased.  The purchase  rights
represented  by each Warrant  Certificate  are  exercisable at the option of the
Holder  thereof,  in whole or in part  (but not as to  fractional  shares of the
Common Stock underlying the Warrants). Warrants may be exercised to purchase all
or part of the shares of Common Stock  represented  thereby.  In the case of the
purchase  of less  than all the  shares of Common  Stock  purchasable  under any
Warrant Certificate,  the Company shall cancel said Warrant Certificate upon the
surrender  thereof and shall  execute and deliver a new Warrant  Certificate  of
like tenor for the balance of the shares of Common Stock.

     4.  Issuance  of  Certificates.  Upon the  exercise  of the  Warrants,  the
issuance  of  certificates  for  shares  of  Common  Stock or other  securities,
properties or rights  underlying such Warrants,  shall be made forthwith (and in
any event such issuance shall be made within five (5) business days  thereafter)
without  charge to the Holder thereof  including,  without  limitation,  any tax
which may be payable in respect

<PAGE>

of the issuance thereof,  and such certificates shall (subject to the provisions
of Sections 5 and 7 hereof) be issued in the name of, or in such names as may be
directed by, the Holder thereof;  provided,  however, that the Company shall not
be  required  to pay any tax which may be payable  in  respect  of any  transfer
involved in the issuance and delivery of any such  certificates  unless or until
the person or persons  requesting  the issuance  thereof  shall have paid to the
Company the amount of such tax or shall have  established to the satisfaction of
the Company that such tax has been paid.

     The Warrant  Certificate and the  certificates  representing  the shares of
Common Stock (and/or other securities, property or rights issuable upon exercise
of the  Warrants)  shall be  executed  on behalf of the Company by the manual or
facsimile  signature of the President of the Company  under its  corporate  seal
reproduced  thereon,  attested to by the manual or  facsimile  signature  of the
Secretary of the  Company.  The Warrant  Certificate  shall be dated the date of
execution by the Company upon initial issuance, division, exchange, substitution
or transfer.

     5.  Restriction  on  Transfer  of  Warrants.  The  Holder  of  the  Warrant
Certificate,  by its acceptance thereof,  covenants and agrees that the Warrants
are being  acquired  as an  investment  and not with a view to the  distribution
thereof.

     6. Exercise Price.

     The exercise  price of the Warrant shall be $5.75 per share of Common Stock
(the "Exercise Price").

     7. Adjustments to Exercise and Number of Securities.

     7.1  Subdivision  and  Combination.  In case the Company  shall at any time
subdivide or combine the outstanding  shares of Common Stock, the Exercise Price
shall  forthwith  be  proportionately  decreased in the case of  subdivision  or
increased in the case of combination.

     7.2 Adjustment in Number of Securities.  Upon an adjustment of the Exercise
Price  pursuant to the  provisions  of this Section 7, the number of  Securities
issuable upon the exercise of each Warrant shall be adjusted to the nearest full
amount by multiplying a number equal to the Exercise Price in effect immediately
prior to such  adjustment  by the number of  Warrant  Securities  issuable  upon
exercise of the Warrants  immediately  prior to such adjustment and dividing the
product so obtained by the adjusted Exercise Price.

     7.3  Definition of Common Stock.  For the purposes of this  Agreement,  the
term "Common Stock" shall mean (i) the class of stock designated as Common Stock
in the Certificate of  Incorporation  of the Company as may be amended as of the
date hereof, or (ii) any other class of stock

                                      - 2 -

<PAGE>

resulting  from  successive  changes or  reclassifications  of such Common Stock
consisting solely of changes in par value, or from par value to no par value, or
from no par value to par value.  In the event that the Company shall,  after the
date hereof,  issue  securities  with greater or superior voting rights than the
shares of Common Stock  outstanding  as of the date hereof,  the Holder,  at its
option,  may receive upon exercise of any Warrant  either shares of Common Stock
or a like number of such securities with greater or superior voting rights.

     7.4 Merger or  Consolidation.  In case of any  consolidation of the Company
with,  or  merger  of  the  Company  into,  another  corporation  (other  than a
consolidation or merger which does not result in any  reclassification or change
of the outstanding  Common Stock),  the corporation formed by such consolidation
or merger  shall  execute  and  deliver  to the  Holder a  supplemental  warrant
agreement  providing that the Holder shall have the right thereafter  (until the
expiration of such Warrant) to receive,  upon exercise of such warrant, the kind
and amount of shares of stock and other securities and property  receivable upon
such  consolidation  or  merger,  by a holder of the  number of shares of Common
Stock  of  the  Company  for  which  such  warrant  might  have  been  exercised
immediately prior to such consolidation,  merger or transfer.  Such supplemental
warrant  agreement shall provide for adjustments which shall be identical to the
adjustments  provided in Section 7. The above provision of this Subsection shall
similarly apply to successive consolidations or mergers.

     7.5 No Adjustment of Exercise Price in Certain Cases.  No adjustment of the
Exercise  Price shall be made:

          (a) upon the  issuance or sale of the Warrants or the shares of Common
     Stock issuable upon the exercise of the Warrants; or

          (b) if the  amount  of said  adjustment  shall be less  than two cents
     ($.02) per Security;  provided,  however,  that in such case any adjustment
     that would  otherwise be required then to be made shall be carried  forward
     and  shall be made at the  time of and  together  with the next  subsequent
     adjustment  which,  together with any adjustment so carried forward,  shall
     amount to at least two cents ($.02) per Security.

     7.6 Dividends and Other Distributions.  In the event that the Company shall
at any time prior to the exercise of all Warrants declare a dividend (other than
a dividend consisting solely of shares of Common Stock) or otherwise  distribute
to its stockholders  any assets,  property,  rights,  evidences of indebtedness,
securities (other than shares of Common Stock), whether issued by the Company or
by another, or any other thing of value, the Holder of the unexercised  Warrants
shall thereafter be entitled,

                                      - 3 -

<PAGE>

in  addition  to the shares of Common  Stock or other  securities  and  property
receivable  upon the  exercise  thereof,  to receive,  upon the exercise of such
Warrants,  the  same  property,   assets,  rights,  evidences  of  indebtedness,
securities  or any other  thing of value that they would have been  entitled  to
receive at the time of such dividend or distribution as if the Warrants had been
exercised immediately prior to such dividend or distribution. At the time of any
such dividend or distribution,  the Company shall make  appropriate  reserves to
ensure the timely performance of the provisions of this Subsection 7.6.

     8.  Exchange  and  Replacement  of  Warrant   Certificates.   Each  Warrant
Certificate is exchangeable  without expense,  upon the surrender thereof by the
Holder at the  principal  executive  office of the  Company,  for a new  Warrant
Certificate  of like tenor and date  representing  in the aggregate the right to
purchase  the  same  number  of  Securities  in such  denominations  as shall be
designated by the Holder thereof at the time of such surrender.

     Upon receipt by the Company of evidence  reasonably  satisfactory  to it of
the loss, theft,  destruction or mutilation of any Warrant Certificate,  and, in
the case of loss,  theft or  destruction,  of indemnity  or security  reasonably
satisfactory to it, and reimbursement to the Company of all reasonable  expenses
incidental  thereto,  and upon surrender and  cancellation  of the Warrants,  if
mutilated,  the Company will make and deliver a new Warrant  Certificate of like
tenor, in lieu thereof.

     9. Elimination of Fractional  Interests.  The Company shall not be required
to issue certificates  representing fractions of shares of Common Stock upon the
exercise of the Warrants, nor shall it be required to issue scrip or pay cash in
lieu of  fractional  interest,  it being  the  intent  of the  parties  that all
fractional  interests  shall be  eliminated  by rounding  any fraction up to the
nearest whole number of shares of Common Stock or other  securities,  properties
or rights.

     10.  Reservation and Listing of Securities.  The Company shall at all times
reserve and keep available out of its authorized shares of Common Stock,  solely
for the purpose of issuance  upon the exercise of the  Warrants,  such number of
shares of Common  Stock or other  securities,  properties  or rights as shall be
issuable upon the exercise thereof.  The Company covenants and agrees that, upon
exercise of the Warrants and payment of the Exercise Price therefor,  all shares
of Common Stock and other  securities  issuable upon such exercise shall be duly
and validly issued, fully paid, non-assessable and not subject to the preemptive
rights of any  stockholder.  As long as the Warrants shall be  outstanding,  the
Company shall use its best efforts to cause all shares of Common Stock  issuable
upon the  exercise of the Warrants to be listed  (subject to official  notice of
issuance)  on all  securities  exchanges on which the Common Stock issued to the
public in connection herewith may then be listed and/or quoted by NASDAQ.

                                      - 4 -

<PAGE>

     11. Notice to Warrant Holder.  Nothing contained in this Agreement shall be
construed  as  conferring  upon the Holder the right to vote or to consent or to
receive notice as a stockholder in respect of any meetings of  stockholders  for
the  election  of  directors  or any  other  manner,  or as  having  any  rights
whatsoever as a stockholder of the Company.  If,  however,  at any time prior to
the expiration of the Warrants and their exercise,  any of the following  events
shall occur:

          (a) the  Company  shall take a record of the  holders of its shares of
     Common  Stock for the  purpose of  entitling  them to receive a dividend or
     distribution  payable  otherwise  than  in  cash,  or a  cash  dividend  or
     distribution payable otherwise than out of current or retained earnings, as
     indicated by the accounting  treatment of such dividend or  distribution on
     the books of the Company; or

          (b) the Company shall offer to all the holders of its Common Stock any
     additional shares of capital stock of the Company or securities convertible
     into or exchange for shares of capital stock of the Company, or any option,
     right or warrant to subscribe therefor; or

          (c) a  dissolution,  liquidation  or winding up of the Company  (other
     than in  connection  with a  consolidation  or  merger) or a sale of all or
     substantially all of its property, assets and business as an entirety shall
     be proposed;  then,  in any one or more of said events,  the Company  shall
     give  notice of such  event at least  fifteen  (15) days  prior to the date
     fixed as a record date or the date of the closing  the  transfer  books for
     the   determination  of  the   stockholders   entitled  to  such  dividend,
     distribution,   convertible  or  exchangeable  securities  or  subscription
     rights,  or entitled  to vote on such  proposed  dissolution,  liquidation,
     winding up or sale.  Such notice shall specify such record date or the date
     of closing the  transfer  books,  as the case may be.  Failure to give such
     notice or any defect  therein  shall not affect the  validity of any action
     taken in connection  with the  declaration or payment of any such dividend,
     or  the  issuance  of  any  convertible  or  exchangeable  securities,   or
     subscription  rights,  options or warrants,  or any  proposed  dissolution,
     liquidation, winding up or sale.

     12.  Notices.  All notices,  requests,  consents  and other  communications
hereunder  shall be in  writing  and shall be deemed to have been duly made when
delivered, or mailed by registered or certified mail, return receipt requested:

          (a) If to the  Holder:  m3communications,  Inc.,  806  Sarasota  Quay,
     Sarasota, Florida, 34236, as shown on the books of the Company; or

          (b) If to the Company:  Tech  Laboratories,  Inc., 955 Belmont Avenue,
     North Haledon, NJ 07508.

                                      - 5 -

<PAGE>

     13.  Supplements and  Amendments.  Except as otherwise  expressly  provided
herein,  the  provisions of this  Agreement may be amended or waived at any time
only by the written agreement of the parties hereto. Any waiver, permit, consent
or approval of kind or  character  on the part of each  Company or the Holder of
any provisions or conditions of this Agreement must be made in writing and shall
be effective only to the extent specifically set forth in such writing.

     14. Successors. All the covenants and provisions of this Agreement shall be
binding  upon and inure to the  benefit  of the  Company,  the  Holder and their
respective successors and assigns hereunder.

     15.  Governing  Law;  Submission to  Jurisdiction.  This Agreement and each
Warrant Certificate issued hereunder shall be deemed to be a contract made under
the laws of the State of New Jersey and for all  purposes  shall be construed in
accordance  with the laws of said State  without  giving  effect to the rules of
said State governing the conflicts of laws.

     The Company and the Holder  hereby  agree that any  action,  proceeding  or
claim against it arising out of, or relating in any way to, this Agreement shall
be  brought  and  enforced  in the  courts of the State of New  Jersey or of the
United States of America for the District of New Jersey, and irrevocably submits
to such jurisdiction, which jurisdiction shall be exclusive. The Company and the
Holder hereby irrevocably waive any objection to such exclusive  jurisdiction or
inconvenient  forum.  Any such  process or summons to be served  upon any of the
Company  and the  Holder  (at the  option of the  party  bringing  such  action,
proceeding or claim) may be served by transmitting a copy thereof, by registered
or certified mail, return receipt requested, postage prepaid, addressed to it at
the  address as set forth in Section 12  hereof.  Such  mailing  shall be deemed
personal  service and shall be legal and binding upon the party so served in any
action,  proceeding  or  claim.  The  Company  and the  Holder  agree  that  the
prevailing  party(ies)  in any such  action or  proceeding  shall be entitled to
recover from the other  party(ies) all of its/their  reasonable  legal costs and
expenses  relating to such action or  proceeding  and/or  incurred in connection
with the preparation therefor.

     16. Entire  Agreement;  Modification.  This Agreement,  that certain letter
agreement  dated June 23, 2000, and the Asset Purchase  Agreement and all of its
exhibits  and  schedules  contain the entire  understanding  between the Parties
hereto  with  respect to the  subject  matter  hereof and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the modification or amendment is sought.

     17.  Severability.  If any provision of this Agreement  shall be held to be
invalid or unenforceable,  such invalidity or unenforceability  shall not affect
any other provision of this Agreement.

                                      - 6 -

<PAGE>

     18.  Captions.  The caption  headings of the Sections of this Agreement are
for  convenience  of  reference  only and are not  intended,  nor should they be
construed as, a part of this Agreement and shall be given no substantive effect.

     19.  Benefits  of this  Agreement.  Nothing  in  this  Agreement  shall  be
construed  to give any  person or  corporation  other than the  Company  and the
Holder any legal or equitable right,  remedy or claim under this Agreement,  and
this  Agreement  shall be for the sole and exclusive  benefit of the Company and
the Holder.

     20.  Counterparts.  This  Agreement  may  be  executed  in  any  number  of
counterparts and each of such  counterparts  shall for all purposes be deemed to
be an original,  and such counterparts shall together constitute but one and the
same instrument.

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

                                    TECH LABORATORIES, INC.

                                    By:    /s/ Bernard M. Ciongoli
                                           -------------------------------
                                           Bernard M. Ciongoli, President

                                    M3COMMUNICATIONS, INC.

                                    By:    /s/ Paul Hansen
                                           --------------------------------
                                           Paul Hansen, President

                                      - 7 -FIRST AMENDMENT TO
                            ASSET PURCHASE AGREEMENT

     THIS FIRST AMENDMENT (the "First Amendment") to the Asset Purchase
Agreement dated as of the 1st day of June, 2000, is entered into as of the 9th
day of June, 2000 by and between Tech Laboratories, Inc., a New Jersey
corporation having its principal place of business at 955 Belmont Avenue, North
Haledon, New Jersey 07508 ("Tech Labs"), Tech Labs Community Networks of the
Southeast, Inc., a Delaware corporation having its principal place of business
at 955 Belmont Avenue, North Haledon, New Jersey 07508 ("TL Southeast" or
"Purchaser"), m3communications, Inc., a Florida corporation having its principal
place of business at 806 Sarasota Quay, Sarasota, Florida 34236 ("Seller") and
the shareholders of the Seller (the "Selling Shareholders"). Each of Tech Labs,
TL Southeast, the Seller and the Selling Shareholders are individually referred
to as a "Party" and collectively as the "Parties."

     WHEREAS, the undersigned are the Parties to an Asset Purchase Agreement
dated as of June 1, 2000 (the "Asset Purchase Agreement"); and

     WHEREAS, under Paragraph 11.13 of the Asset Purchase Agreement the Parties
may amend the Asset Purchase Agreement in a writing signed by the Parties;

     NOW, THEREFORE, the Parties hereby amend the Asset Purchase Agreement as
follows:

     FIRST: Section 3.4 of the Asset Purchase Agreement is hereby deleted in its
entirety and the following new paragraph is hereby inserted in lieu thereof:

     In accordance with the accounting and distribution procedures to be adopted
by Bernard M. Ciongoli, Terry Nelson and/or a member of the board of directors
of TL Southeast designated by the Seller, TL Southeast shall pay to Seller
twenty percent (20%) of the monthly "operating income", as such term is defined
under generally accepted accounting principles, generated from each contract for
telecommunications services to property developments that TL Southeast enters
into within one hundred and twenty (120) days of the date hereof within the
states of Virginia, North Carolina, South Carolina, Kentucky, Tennessee,
Georgia, Alabama, Louisiana, Mississippi and Florida (such states are
hereinafter referred to as the "Territory").

     SECOND: Section 4 of the Asset Purchase Agreement is hereby deleted in its
entirety and the following new paragraph is hereby inserted in lieu thereof:

     The Closing. The closing of the transaction contemplated by this Agreement
(the "Closing") shall be held at the offices of Stursberg & Veith at such time
and date as may be agreed to by the Parties (the "Closing Date"), but in no
event later than July 7, 2000.

<PAGE>

     IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to
the Asset Purchase Agreement to be entered into as of the date and year herein
above first set forth.

M3COMMUNICATIONS, INC.                   TECH LABORATORIES, INC.

By: /s/ Paul Hansen                      By: /s/ Bernard M. Ciongoli
    -------------------------------          -----------------------------------
    Paul Hansen                              Bernard M. Ciongoli
      President                                President

                                         TECH LABS COMMUNITY
                                         NETWORKS OF THE SOUTHEAST, INC.

                                         By: /s/ Bernard M. Ciongoli
                                             -----------------------------------
                                             Bernard M. Ciongoli
                                              President

                                      -2-

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