Document:

THE SECURITIES  REPRESENTED BY THIS WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS. THE
SECURITIES  HAVE BEEN ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED,  OR  ASSIGNED IN THE  ABSENCE OF AN  EFFECTIVE  REGISTRATION
STATEMENT FOR THE SECURITIES  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR
APPLICABLE  STATE  SECURITIES  LAWS,  OR  AN  OPINION  OF  COUNSEL,   REASONABLY
ACCEPTABLE  TO THE ISSUER THAT  REGISTRATION  IS NOT REQUIRED  UNDER SAID ACT OR
APPLICABLE  STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.

                                    FORM OF

                      EDUCATIONAL VIDEO CONFERENCING, INC.

                          COMMON STOCK PURCHASE WARRANT

No. W-[ ]                                                   [          ], 2000

                                                     Warrant to Purchase [     ]
                                                        Shares of Common Stock

         EDUCATIONAL  VIDEO  CONFERENCING,  INC.,  a Delaware  corporation  (the
"Company"),  for value  received,  hereby  certifies that [
   ], a company organized under the laws of [     ],  or registered assigns (the
"Holder"),  is entitled to purchase  from the Company  [     ] duly  authorized,
validly issued,  fully paid and nonassessable  shares of Common Stock, par value
$.0001 per share, of the Company (the "Common Stock"), at the Purchase Price, at
any  time or from  time to time  prior to 5:00  P.M.,  New York  City  time,  on
[           ] 2003 (the "Expiration Date"), all subject to the terms, conditions
and adjustments set forth below in this Warrant.

         This   Warrant  is  one  of  the   Common   Stock   Purchase   Warrants
(collectively,  the "Warrants", such term to include any such warrants issued in
substitution therefor) originally issued pursuant to the terms of the Securities
Purchase  Agreement,  dated as of [ ], 2000  between  the Company and the Holder
(the  "Purchase  Agreement").  Capitalized  terms used herein and not  otherwise
defined  herein  shall have the  meanings  assigned  such terms in the  Purchase
Agreement.

     1.  DEFINITIONS. As used herein, unless the context otherwise requires, the
following terms shall have the meanings indicated:

         "ADDITIONAL  SHARES OF COMMON  STOCK" shall mean all shares  (including
treasury shares) of Common Stock issued or sold (or,  pursuant to Section 3.3 or
3.4,  deemed to be issued)by the Company  after the date hereof,  whether or not
subsequently  reacquired  or retired  by the  Company,  other than the  Excluded
Shares.

<PAGE>

         "BUSINESS  DAY" shall mean any day other than a Saturday or a Sunday or
a day on  which  commercial  banking  institutions  in the  City of New York are
authorized by law to be closed.  Any reference to "days"  (unless  Business Days
are specified) shall mean calendar days.

         "CERTIFICATE OF DESIGNATIONS"  shall mean the Company's  Certificate of
Designations, Preferences and Rights of the Series B Preferred Shares.

         "COMMISSION"  shall mean the Securities and Exchange  Commission or any
successor agency having jurisdiction to enforce the Securities Act.

         "COMMON   STOCK"  shall  have  the  meaning   assigned  to  it  in  the
introduction  to this  Warrant,  such term to include  any stock into which such
Common  Stock  shall  have  been  changed  or  any  stock   resulting  from  any
reclassification  of such  Common  Stock,  and all  other  stock of any class or
classes (however designated) of the Company the holders of which have the right,
without  limitation as to amount,  either to all or to a share of the balance of
current  dividends and liquidating  dividends after the payment of dividends and
distributions on any shares entitled to preference.

         "COMPANY" shall have the meaning  assigned to it in the introduction to
this Warrant,  such term to include any  corporation or other entity which shall
succeed to or assume the obligations of the Company hereunder in compliance with
Section 4.

         "CONVERTIBLE  SECURITIES"  shall mean any  evidences  of  indebtedness,
shares of stock  (other  than  Common  Stock) or other  securities  directly  or
indirectly  convertible  into or  exchangeable  for Additional  Shares of Common
Stock.

         "CURRENT  MARKET PRICE" means the 20-day average  closing bid prices as
reported on NASDAQ for the period of 20  consecutive  Trading Days ending on the
date of determination;  PROVIDED,  HOWEVER, if the Common Stock is not listed or
admitted to trading on NASDAQ,  as reported on the principal  national  security
exchange or  quotation  system on which the Common  Stock is quoted or listed or
admitted to trading;  or, if not, quoted or listed or admitted to trading on any
national  securities exchange or quotation system, the closing bid price of such
security  on the  over-the-counter  market on the day in question as reported by
Bloomberg LP, or a similar generally accepted reporting service, as the case may
be, or if not listed or admitted for trading on any national securities exchange
or quoted in the over-the-counter  market, the Current Market Price shall be the
Fair Value on such date.

         "DISTRIBUTION  DATE" shall have the  meaning  assigned to it in Section
3.10.

         "EXCHANGE  ACT"  shall mean the  Securities  Exchange  Act of 1934,  as
amended  from time to time,  and the rules and  regulations  thereunder,  or any
successor statute.

         "EXCLUDED  SHARES" shall have the meaning  assigned to such term in the
Certificate of Designations.

         "EXPIRATION  DATE"  shall  have  the  meaning  assigned  to it  in  the
introduction to this Warrant.
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<PAGE>

         "FAIR VALUE" shall mean, on any date  specified  herein (i) in the case
of cash, the dollar amount thereof,  (ii) in the case of a security admitted for
trading on any national  securities  exchange or quoted in the  over-the-counter
market,  the Current Market Price, and (iii) in all other cases as determined in
good faith  jointly by the Company and the Holder;  PROVIDED,  HOWEVER,  that if
such parties are unable to reach agreement  within a reasonable  period of time,
the Fair Value shall be  determined in good faith by an  independent  investment
banking  firm  selected  jointly  by the  Company  and the  Holder  or,  if that
selection cannot be made within ten days, by an independent  investment  banking
firm selected by the American  Arbitration  Association  in accordance  with its
rules;  and  PROVIDED  FURTHER  that the  Company  shall pay all of the fees and
expenses of any third parties  incurred in connection with  determining the Fair
Value.

         "NASDAQ"  means  the  NASDAQ  Smallcap  Market or the  NASDAQ  National
Market, as applicable.

         "OPTIONS" shall mean any rights,  options or warrants to subscribe for,
purchase  or  otherwise  acquire  either  Additional  Shares of Common  Stock or
Convertible Securities.

         "OTHER  SECURITIES"  shall mean any stock (other than Common Stock) and
other  securities  of the Company or any other Person  (corporate  or otherwise)
which the holders of the  Warrants at any time shall be entitled to receive,  or
shall  have  received,  upon  the  exercise  of the  Warrants,  in lieu of or in
addition to Common  Stock,  or which at any time shall be issuable or shall have
been  issued  in  exchange  for or in  replacement  of  Common  Stock  or  Other
Securities pursuant to Section 4 or otherwise.

         "PERSON" shall mean any  individual,  firm,  partnership,  corporation,
trust,  joint  venture,  association,  joint stock  company,  limited  liability
company,  unincorporated  organization  or any  other  entity  or  organization,
including a government  or agency or political  subdivision  thereof,  and shall
include any successor (by merger or otherwise) of such entity.

         "PURCHASE  AGREEMENT"  shall  have the  meaning  assigned  to it in the
introduction to this Warrant.

         "PURCHASE  PRICE"  shall  mean  initially $20.25 per share, subject  to
adjustment and readjustment  from time to time as provided in Section 3, and, as
so adjusted or readjusted,  shall remain in effect until a further adjustment or
readjustment thereof is required by Section 3.

         "REGISTRATION  RIGHTS  AGREEMENT"  shall mean the Amended and  Restated
Registration  Rights Agreement dated as of September 27, 2000,  substantially in
the form of Exhibit C to the Purchase Agreement.

         "RIGHTS" shall have the meaning assigned to it in Section 3.10.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended from
time to  time,  and the  rules  and  regulations  thereunder,  or any  successor
statute.

         "TRADING  DAY"  means  any day on  which  (a)  purchases  and  sales of
securities authorized for quotation on NASDAQ are reported thereon, (b) no event
which  results in a material  suspension  or limitation of trading on the Common
Stock on NASDAQ has  occurred
                                       3
<PAGE>

and (c) at least one bid for the trading of Common  Stock is reported on NASDAQ.
For the  purposes  of this  definition  only,  references  to  NASDAQ  mean  the
applicable  over-the-counter  market or National Securities Exchange referred to
in the definition of Current Market Price.

         "WARRANTS" shall have the meaning assigned to it in the introduction to
this Warrant.

         2.    EXERCISE OF WARRANT.

         2.1.  MANNER OF  EXERCISE;  PAYMENT  OF THE  PURCHASE  PRICE.  (a) This
Warrant may be exercised by the Holder hereof,  in whole or in part, at any time
or from  time to time  prior to the  Expiration  Date,  by  surrendering  to the
Company at its  principal  office  this  Warrant,  with the form of  Election to
Purchase Shares attached hereto as Exhibit A (or a reasonable facsimile thereof)
duly executed by the Holder and accompanied by payment of the Purchase Price for
the number of shares of Common Stock specified in such form.

         (b)  Payment  of the  Purchase  Price  shall be made in  United  States
currency by cash or delivery of a certified  check or bank draft  payable to the
order of the Company or by wire transfer to the Company.

         (c)  Notwithstanding  any  provisions  herein to the  contrary,  if the
Current  Market  Price of one share of Common Stock is greater than the Purchase
Price (at the date of  calculation  as set forth  below),  in lieu of exercising
this Warrant for cash, the Holder may elect to receive shares equal to the value
(as determined below) of this Warrant (or the portion thereof being canceled) by
surrender of this Warrant at the principal  office of the Company  together with
the  properly  endorsed  Election to Purchase  Shares in which event the Company
shall issue to the Holder a number of shares of Common Stock  computed using the
following formula:

         X = Y (A-B)
                A

                 X =  the number of shares of Common Stock to be issued to the
                      Holder

                 Y =  the number of shares of Common Stock  purchasable  under
                      the  Warrant or, if only a portion of the Warrant is being
                      exercised, the number of shares of Common Stock underlying
                      the portion of the Warrant being exercised (at the date of
                      such calculation)

                 A =  the Current  Market Price of one share of the  Company's
                      Common Stock (at the date of such calculation)

                 B =  Purchase  Price  (as  adjusted  to  the  date  of  such
                      calculation)

         2.2.  WHEN EXERCISE  EFFECTIVE.  Each exercise of this Warrant shall be
deemed to have been effected  immediately  prior to the close of business on the
Business  Day on which  this  Warrant  shall have been  surrendered  to, and the
Purchase  Price shall have been  received by, the Company as provided in Section
2.1,  and at such  time  the  Person  or  Persons  in whose  name or  names  any
certificate  or  certificates  for shares of Common Stock (or Other  Securities)
shall be

                                       4
<PAGE>

issuable  upon such  exercise as provided in Section 2.3 shall be deemed to have
become the holder or holders of record thereof for all purposes.

         2.3. DELIVERY OF STOCK CERTIFICATES, ETC.; CHARGES, TAXES AND EXPENSES.

         (a) Subject to Section 2.5 as soon as  practicable  after each exercise
of this Warrant,  in whole or in part, and in any event within ten (10) Business
Days thereafter,  the Company shall cause to be issued in such  denominations as
may be requested by the Holder in the Election to Purchase  Shares,  in the name
of and  delivered to the Holder or,  subject to the Purchase  Agreement,  as the
Holder may direct,

                  (i) a certificate or certificates  for the number of shares of
         Common  Stock  (or  Other  Securities)  to which  the  Holder  shall be
         entitled upon such exercise plus, in lieu of issuance of any fractional
         share to which the  Holder  would  otherwise  be  entitled,  if any,  a
         Company  check  for the  amount  of cash  equal  to the  same  fraction
         multiplied by the Current Market Price per share on the date of Warrant
         exercise, PROVIDED, HOWEVER, that in the event sufficient funds are not
         legally available for the payment of such amount,  the number of shares
         of Common Stock which such  certificate(s)  represents shall be rounded
         up to the nearest whole number, and

                  (ii) in case such  exercise is for less than all of the shares
         of Common  Stock  purchasable  under  this  Warrant,  a new  Warrant or
         Warrants of like tenor,  for the balance of the shares of Common  Stock
         purchasable hereunder.

         (b)  Issuance  of  certificates  for  shares of Common  Stock  upon the
exercise of this Warrant  shall be made without  charge to the Holder hereof for
any  issue or  transfer  tax or other  incidental  expense,  in  respect  of the
issuance of such  certificates,  all of which such taxes and  expenses  shall be
paid by the Company.

         2.4. COMPANY TO REAFFIRM OBLIGATIONS. The Company shall, at the time of
each  exercise  of  this  Warrant,  upon  the  request  of  the  Holder  hereof,
acknowledge  in writing its  continuing  obligation to afford to such Holder all
rights to which such Holder shall continue to be entitled after such exercise in
accordance  with the terms of this Warrant,  PROVIDED that if the Holder of this
Warrant shall fail to make any such  request,  such failure shall not affect the
continuing obligation of the Company to afford such rights to the Holder.

         2.5.  EXERCISE DISPUTES. In the case of any dispute with respect to the
number of shares to be issued upon exercise of this  Warrant,  the Company shall
promptly  issue such number of shares of Common  Stock that is not  disputed and
shall submit the  disputed  determinations  or  arithmetic  calculations  to the
Holder via  facsimile  within five (5) Business  Days of receipt of the Holder's
Election to Purchase  Shares.  If the Holder and the Company are unable to agree
as to the  determination  of the Purchase Price within five (5) Business Days of
such disputed  determination  or arithmetic  calculation  being submitted to the
Holder,  then the Company  shall,  in accordance  with this Section,  submit via
facsimile the disputed determination to an independent reputable accounting firm
of national  standing,  selected  jointly by the  Company  and the  Holder.  The
Company  shall  cause such  accounting  firm to perform  the  determinations  or
calculations  and  notify  the  Company  and the  Holder of the  results  within
forty-

                                       5
<PAGE>

eight  (48) hours  from the time it  receives  the  disputed  determinations  or
calculations.  Such accounting  firm's  determination  shall be binding upon all
parties absent  manifest  error.  The Company  shall,  on the next Business Day,
issue  certificate(s)  representing  the appropriate  number of shares of Common
Stock in accordance with such accounting firm's  determination and this Section.
All fees and expenses of such  determinations and calculations shall be borne by
the Company.

         3.    ADJUSTMENT OF COMMON STOCK ISSUABLE UPON EXERCISE.

         3.1.  ADJUSTMENT OF NUMBER OF SHARES.

               Upon each  adjustment  of the  Purchase  Price as a result of the
calculations made in this Section 3, this Warrant shall thereafter  evidence the
right to  receive,  at the  adjusted  Purchase  Price,  that number of shares of
Common Stock  (calculated to the nearest  one-hundredth  of a share) obtained by
dividing  (i) the  product  of the  aggregate  number of shares  covered by this
Warrant  immediately  prior to such  adjustment and the Purchase Price in effect
immediately  prior to such adjustment of the Purchase Price by (ii) the Purchase
Price in effect immediately after such adjustment of the Purchase Price.

         3.2.  ADJUSTMENT OF PURCHASE PRICE.

         3.2.1. ISSUANCE  OF  ADDITIONAL  SHARES OF COMMON  STOCK.  In case the
Company at any time or from time to time after the date  hereof  shall  issue or
sell Additional  Shares of Common Stock (including  Additional  Shares of Common
Stock  deemed  to be  issued  pursuant  to  Section  3.3  or 3.4  but  excluding
Additional  Shares of Common Stock  purchasable upon exercise of Rights referred
to in Section 3.10), without consideration or for a consideration per share less
than the fair  market  value of such  Additional  Shares  of  Common  Stock,  as
determined  in good faith by the Board of  Directors of the Company as in effect
immediately prior to such issue or sale, then, and in each such case, subject to
Section 3.8, the Purchase Price shall be reduced,  concurrently  with such issue
or sale, to a price  (calculated  to the nearest .001 of a cent),  determined by
multiplying such Purchase Price by a fraction

                (a) the numerator of which shall be the sum of (i) the number of
           shares of Common Stock outstanding immediately prior to such issue or
           sale and (ii) the  number of shares of Common  Stock  which the gross
           consideration  received by the  Company for the total  number of such
           Additional Shares of Common Stock so issued or sold would purchase at
           the Current Market Price, and

               (b) the  denominator  of which  shall be the  number of shares of
          Common  Stock  outstanding  immediately  after  such  issue  or  sale,
          PROVIDED that, for the purposes of this Section 3.2.1, (x) immediately
          after any  Additional  Shares of Common  Stock are deemed to have been
          issued  pursuant  to Section  3.3 or 3.4,  such  Additional  Shares of
          Common  Stock  shall be deemed  to be  outstanding,  and (y)  treasury
          shares shall not be deemed to be outstanding per share.

         3.2.2.  EXTRAORDINARY DIVIDENDS AND DISTRIBUTIONS.  In case the Company
at any time or from time to time after the date hereof shall declare, order, pay
or make a dividend or other distribution  (including,  without  limitation,  any
distribution  of other or  additional  stock or

                                       6

<PAGE>

other  securities  or  property  or  Options  by way of  dividend  or  spin-off,
reclassification,  recapitalization  or similar corporate  rearrangement) on the
Common  Stock,  then,  in each such case,  subject to Section  3.8, the Purchase
Price in effect  immediately  prior to the close of  business on the record date
fixed for the  determination  of holders of any class of securities  entitled to
receive  such  dividend or  distribution  shall be reduced,  effective as of the
close of business on such record date, to a price determined by multiplying such
Purchase Price by a fraction

                   (a) the numerator of which shall be the Current  Market Price
          in effect on such  record  date or, if the Common  Stock  trades on an
          ex-dividend   basis,  on  the  date  prior  to  the   commencement  of
          ex-dividend  trading,   less  the  Fair  Value  of  such  dividend  or
          distribution applicable to one share of Common Stock, and

                   (b) the  denominator  of which shall be such  Current  Market
          Price.

         3.3.  TREATMENT  OF OPTIONS  AND  CONVERTIBLE  SECURITIES.  In case the
Company  at any time or from time to time  after the date  hereof  shall  issue,
sell,  grant or  assume,  or shall fix a record  date for the  determination  of
holders of any class of  securities  of the Company  entitled  to  receive,  any
Options or  Convertible  Securities  (whether or not the rights  thereunder  are
immediately  exercisable),  then,  and in each such case,  the maximum number of
Additional  Shares of Common  Stock  (as set  forth in the  instrument  relating
thereto,  without  regard to any provisions  contained  therein for a subsequent
adjustment of such number) issuable upon the exercise of such Options or, in the
case of Convertible  Securities and Options therefor, the conversion or exchange
of such  Convertible  Securities,  shall be  deemed to be  Additional  Shares of
Common Stock issued as of the time of such issue,  sale, grant or assumption or,
in case such a record date shall have been fixed, as of the close of business on
such record date (or, if the Common Stock trades on an ex-dividend basis, on the
date prior to the  commencement  of  ex-dividend  trading),  PROVIDED  that such
Additional Shares of Common Stock shall not be deemed to have been issued unless
(i) the  consideration  per share  (determined  pursuant to Section 3.5) of such
shares would be less than the fair market value of such shares as  determined in
good faith by the Board of  Directors of the Company as in effect on the date of
and immediately  prior to such issue,  sale,  grant or assumption or immediately
prior to the close of business  on such  record  date (or,  if the Common  Stock
trades  on an  ex-dividend  basis,  on the  date  prior to the  commencement  of
ex-dividend  trading),  as the case may be, and (ii) such  Additional  Shares of
Common Stock are not purchasable pursuant to Rights referred to in Section 3.10,
and PROVIDED, FURTHER, that

                   (a)  whether  or not the  Additional  Shares of Common  Stock
          underlying  such Options or  Convertible  Securities  are deemed to be
          issued, no further adjustment of the Purchase Price shall be made upon
          the subsequent  issue or sale of  Convertible  Securities or shares of
          Common Stock upon the exercise of such  Options or the  conversion  or
          exchange of such Convertible Securities;

                  (b) if such Options or  Convertible  Securities by their terms
         provide, with the passage of time or otherwise, for any increase in the
         consideration payable to the Company, or for any decrease in the number
         of  Additional  Shares of Common  Stock  issuable,  upon the  exercise,
         conversion or exchange  thereof (by change of rate or

                                       7
<PAGE>

         otherwise),  the Purchase Price computed upon the original issue, sale,
         grant or assumption thereof (or upon the occurrence of the record date,
         or date prior to the commencement of ex-dividend  trading,  as the case
         may be, with respect  thereto),  and any subsequent  adjustments  based
         thereon,  shall, upon any such increase or decrease becoming effective,
         be  recomputed  to reflect  such  increase  or  decrease  insofar as it
         affects such Options,  or the rights of  conversion  or exchange  under
         such Convertible Securities, which are outstanding at such time;

                  (c)  upon the  expiration  (or  purchase  by the  Company  and
         cancellation  or  retirement)  of any such Options which shall not have
         been  exercised  or the  expiration  of any  rights  of  conversion  or
         exchange under any such  Convertible  Securities  which (or purchase by
         the Company and  cancellation  or  retirement  of any such  Convertible
         Securities  the rights of conversion or exchange under which) shall not
         have been  exercised,  the Purchase  Price  computed  upon the original
         issue, sale, grant or assumption thereof (or upon the occurrence of the
         record date, or date prior to the commencement of ex-dividend  trading,
         as  the  case  may  be,  with  respect  thereto),  and  any  subsequent
         adjustments  based  thereon,  shall,  upon  such  expiration  (or  such
         cancellation or retirement, as the case may be), be recomputed as if:

                            (i) in the  case of  Options  for  Common  Stock  or
                   Convertible Securities,  the only Additional Shares of Common
                   Stock  issued  or sold were the  Additional  Shares of Common
                   Stock,  if any,  actually issued or sold upon the exercise of
                   such   Options  or  the   conversion   or  exchange  of  such
                   Convertible   Securities  and  the   consideration   received
                   therefor  was  the  consideration  actually  received  by the
                   Company for the issue,  sale, grant or assumption of all such
                   Options,  whether or not  exercised,  plus the  consideration
                   actually  received by the Company upon such exercise,  or for
                   the issue or sale of all such  Convertible  Securities  which
                   were  actually  converted or exchanged,  plus the  additional
                   consideration,  if any, actually received by the Company upon
                   such conversion or exchange, and

                            (ii)  in  the  case  of  Options   for   Convertible
                   Securities, only the Convertible Securities, if any, actually
                   issued or sold upon the  exercise of such Options were issued
                   at the time of the issue or sale, grant or assumption of such
                   Options,  and the  consideration  received by the Company for
                   the  Additional  Shares of Common  Stock  deemed to have then
                   been issued was the  consideration  actually  received by the
                   Company for the issue,  sale, grant or assumption of all such
                   Options,  whether or not  exercised,  plus the  consideration
                   deemed to have been  received  by the  Company  (pursuant  to
                   Section  3.5)  upon  the  issue  or sale of such  Convertible
                   Securities  with respect to which such Options were  actually
                   exercised;

                   (d) no readjustment  pursuant to subdivision (b) or (c) above
          shall have the effect of increasing the Purchase Price by an amount in
          excess of the  amount of the  adjustment  thereof  originally  made in
          respect of the issue,  sale,  grant or  assumption  of such Options or
          Convertible Securities; and

                                       8
<PAGE>

                   (e) in the case of any such  Options  which  expire  by their
          terms not more than 30 days  after the date of issue,  sale,  grant or
          assumption  thereof, no adjustment of the Purchase Price shall be made
          until the  expiration or exercise of all such Options,  whereupon such
          adjustment  shall be made in the manner  provided in  subdivision  (c)
          above.

         3.4.  TREATMENT  OF STOCK  DIVIDENDS,  STOCK  SPLITS,  ETC. In case the
Company at any time or from time to time after the date hereof shall  declare or
pay any dividend on the Common Stock payable in Common Stock,  or shall effect a
subdivision of the  outstanding  shares of Common Stock into a greater number of
shares of Common Stock (by  reclassification  or otherwise  than by payment of a
dividend in Common  Stock),  then, and in each such case,  Additional  Shares of
Common  Stock  shall be deemed to have been  issued  (a) in the case of any such
dividend,  immediately  after the close of  business  on the record date for the
determination  of holders of any class of  securities  entitled to receive  such
dividend,  or (b) in the case of any such subdivision,  at the close of business
on the day immediately prior to the day upon which such corporate action becomes
effective.

         3.5. COMPUTATION OF CONSIDERATION. For the purposes of this Section 3,

                   (a) the consideration for the issue or sale of any Additional
          Shares of Common Stock shall, irrespective of the accounting treatment
          of such consideration,

                            (i) insofar as it  consists of cash,  be computed at
                   the amount of cash received by the Company, without deducting
                   any  expenses   paid  or  incurred  by  the  Company  or  any
                   commissions or compensations paid or concessions or discounts
                   allowed to underwriters, dealers or others performing similar
                   services in connection with such issue or sale,

                            (ii)  insofar as it consists of property  (including
                   securities)  other than cash,  be  computed at the Fair Value
                   thereof at the time of such issue or sale, and

                            (iii) in the case where Additional  Shares of Common
                   Stock  are  issued  or sold  together  with  other  stock  or
                   securities or other assets of the Company for a consideration
                   which covers both,  be the portion of such  consideration  so
                   received, computed as provided in clauses (i) and (ii) above,
                   allocable to such  Additional  Shares of Common  Stock,  such
                   allocation  to be determined in the same manner that the Fair
                   Value of property not  consisting of cash or securities is to
                   be determined  as provided in the  definition of "Fair Value"
                   herein;

                   (b)  Additional  Shares of Common  Stock  deemed to have been
          issued  pursuant to Section 3.3,  relating to Options and  Convertible
          Securities,  shall be deemed to have been  issued for a  consideration
          per share determined by dividing

                           (i) the total amount, if any, received and receivable
                  by the Company as consideration for the issue,  sale, grant or
                  assumption  of  the  Options  or  Convertible   Securities  in
                  question,  plus the  minimum  aggregate  amount of  additional
                  consideration  (as  set  forth  in  the  instruments  relating
                  thereto, without regard to any provision contained therein for
                  a  subsequent  adjustment  of such

                                       9
<PAGE>

                  consideration  to  protect  against  dilution)  payable to the
                  Company  upon  the  exercise  in full of such  Options  or the
                  conversion or exchange of such  Convertible  Securities or, in
                  the case of Options for Convertible  Securities,  the exercise
                  of such Options for Convertible  Securities and the conversion
                  or  exchange  of such  Convertible  Securities,  in each  case
                  computing  such  consideration  as provided  in the  foregoing
                  subdivision (a),

                  by

                           (ii) the maximum number of shares of Common Stock (as
                  set forth in the instruments relating thereto,  without regard
                  to any provision contained therein for a subsequent adjustment
                  of such number to protect against dilution)  issuable upon the
                  exercise of such Options or the conversion or exchange of such
                  Convertible Securities; and

                   (c)  Additional  Shares of Common  Stock  deemed to have been
          issued  pursuant to Section 3.4,  relating to stock  dividends,  stock
          splits,   etc.,   shall  be  deemed  to  have  been   issued   for  no
          consideration.

         3.6. 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 Purchase Price in
effect   immediately   prior  to  such  combination  or   consolidation   shall,
concurrently  with the  effectiveness of such combination or  consolidation,  be
proportionately increased.

         3.7. DILUTION IN CASE OF OTHER SECURITIES. In case any Other Securities
shall  be  issued  or sold or shall  become  subject  to issue or sale  upon the
conversion or exchange of any stock (or Other Securities) of the Company (or any
issuer of Other  Securities or any other Person  referred to in Section 4) or to
subscription,  purchase or other  acquisition  pursuant to any Options issued or
granted by the Company (or any such other issuer or Person) for a  consideration
such as to dilute,  on a basis consistent with the standards  established in the
other provisions of this Section 3, the purchase rights granted by this Warrant,
then, and in each such case, the  computations,  adjustments  and  readjustments
provided for in this Section 3 with respect to the Purchase Price and the number
of shares  purchasable upon Warrant exercise shall be made as nearly as possible
in the  manner  so  provided  and  applied  to  determine  the  amount  of Other
Securities from time to time receivable upon the exercise of the Warrants, so as
to protect the holders of the Warrants against the effect of such dilution.

         3.8. DE MINIMIS  ADJUSTMENTS.  If the amount of any  adjustment  of the
Purchase Price per share required  pursuant to this Section 3 would be less than
$.01,  such amount  shall be carried  forward and the  adjustment  with  respect
thereto made at the time of and together with any subsequent  adjustment  which,
together  with such amount and any other  amount or amounts so carried  forward,
shall  aggregate a change in the Purchase Price of at least $.01 per share.  All
calculations  under this Warrant  shall be made to the nearest .001 of a cent or
to the nearest one-hundredth of a share, as the case may be.

                                       10
<PAGE>

         3.9.  ABANDONED  DIVIDEND OR DISTRIBUTION.  If the Company shall take a
record of the holders of its Common Stock for the purpose of  entitling  them to
receive a dividend or other distribution  (which results in an adjustment to the
Purchase  Price  under the terms of this  Warrant)  and shall,  thereafter,  and
before such  dividend  or  distribution  is paid or  delivered  to  shareholders
entitled  thereto,  legally  abandon its plan to pay or deliver such dividend or
distribution,  then any  adjustment  made to the  Purchase  Price and  number of
shares of Common Stock purchasable upon Warrant exercise by reason of the taking
of such record shall be reversed, and any subsequent adjustments, based thereon,
shall be recomputed.

         3.10.  SHAREHOLDER RIGHTS PLAN.  Notwithstanding the foregoing,  in the
event that the Company  shall  distribute  "poison  pill"  rights  pursuant to a
"poison pill" shareholder rights plan (the "Rights"), the Company shall, in lieu
of making any adjustment pursuant to Section 3.2.1 or Section 3.2.2 hereof, make
proper  provision so that each Holder who  exercises a Warrant  after the record
date for such  distribution  and prior to the  expiration  or  redemption of the
Rights  shall be  entitled  to receive  upon such  exercise,  in addition to the
shares of Common Stock  issuable  upon such  exercise,  a number of Rights to be
determined as follows:  (i) if such exercise  occurs on or prior to the date for
the  distribution to the holders of Rights of separate  certificates  evidencing
such  Rights  (the  "Distribution  Date"),  the same number of Rights to which a
holder of a number of shares of Common  Stock  equal to the  number of shares of
Common Stock  issuable upon such exercise at the time of such exercise  would be
entitled in accordance  with the terms and  provisions of and  applicable to the
Rights;  and (ii) if such exercise occurs after the Distribution  Date, the same
number  of Rights to which a holder  of the  number  of  shares  into  which the
Warrant so exercised was exercisable  immediately prior to the Distribution Date
would have been entitled on the  Distribution  Date in accordance with the terms
and provisions of and applicable to the Rights,  and in each case subject to the
terms and conditions of the Rights.

         4. CONSOLIDATION, MERGER, ETC.

         4.1.   ADJUSTMENTS   FOR   CONSOLIDATION,   MERGER,   SALE  OF  ASSETS,
REORGANIZATION,  ETC.  In case the  Company  after  the date  hereof  shall  (a)
consolidate  with or merge into any other Person and shall not be the continuing
or surviving  corporation  of such  consolidation  or merger,  or (b) 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  shall be  changed  into or
exchanged for stock or other securities of any other Person or cash or any other
property,  or (c) transfer all or substantially  all of its properties or assets
to any other Person in one or more related transactions, or (d) effect a capital
reorganization  or  reclassification  of the  Common  Stock or Other  Securities
(other than a capital reorganization or reclassification  resulting in the issue
of Additional  Shares of Common Stock for which adjustment in the Purchase Price
is  provided  in  Section  3.2.1 or 3.2.2),  then,  and in the case of each such
transaction,  proper  provision  shall be made so that,  upon the  basis and the
terms and in the manner  provided in this  Warrant,  the Holder of this Warrant,
upon the exercise hereof at any time after the consummation of such transaction,
shall be entitled to receive (at the aggregate  Purchase  Price in effect at the
time of such consummation for all Common Stock or Other Securities issuable upon
such exercise  immediately  prior to such  consummation),  in lieu of the Common
Stock  or  Other   Securities   issuable  upon  such  exercise   prior  to  such
consummation,  the amount of  securities,  cash or other  property to which such
Holder would actually have been entitled as a shareholder upon such consummation
if such

                                       11
<PAGE>

Holder  had  exercised  this  Warrant  immediately  prior  thereto,  subject  to
adjustments  (subsequent to such  consummation) as nearly equivalent as possible
to the adjustments provided for in Sections 3 through 5.

         4.2. ASSUMPTION OF OBLIGATIONS.  Notwithstanding  anything contained in
the Warrants or in the Purchase Agreement to the contrary, the Company shall not
effect any of the  transactions  described in clauses (a) through (d) of Section
4.1 unless,  prior to the  consummation  thereof,  each  Person  (other than the
Company)  which may be  required  to  deliver  any  stock,  securities,  cash or
property upon the exercise of this Warrant as provided  herein shall assume,  by
written instrument  delivered to, and reasonably  satisfactory to, the Holder of
this Warrant,  (a) the obligations of the Company under this Warrant (and if the
Company shall survive the  consummation  of such  transaction,  such  assumption
shall be in addition to, and shall not release the Company from,  any continuing
obligations  of the Company  under this  Warrant),  (b) the  obligations  of the
Company  under  the  Agreement,   the  Certificate  of   Designations   and  the
Registration  Rights  Agreement and (c) the  obligation to deliver to the Holder
such shares of stock,  securities,  cash or property as, in accordance  with the
foregoing  provisions  of this Section 4, the Holder may be entitled to receive.
Nothing in this Section 4 shall be deemed to authorize the Company to enter into
any transaction not otherwise permitted by the Purchase Agreement.

         5. OTHER DILUTIVE EVENTS. In case any event shall occur as to which the
provisions  of Section 3 or Section 4 hereof are not strictly  applicable  or if
strictly  applicable  would not fairly protect the purchase rights of the Holder
in accordance with the essential  intent and principles of such Sections,  then,
in each  such  case,  the  Board  of  Directors  of the  Company  shall  make an
adjustment  in the  application  of such  provisions,  in  accordance  with such
essential  intent and  principles,  so as to  preserve,  without  dilution,  the
purchase rights represented by this Warrant.

         6. NO DILUTION OR  IMPAIRMENT.  The Company  shall not, by amendment of
its  certificate  of  incorporation  or  through  any   consolidation,   merger,
reorganization,  transfer of assets, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant,  but will at all times 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 of
this  Warrant  against  dilution  or  other  impairment.  Without  limiting  the
generality of the  foregoing,  the Company shall (a) not permit the par value of
any shares of stock  receivable  upon the exercise of this Warrant to exceed the
amount payable  therefor upon such exercise,  (b) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue
fully  paid and  nonassessable  shares of stock,  free  from all  taxes,  liens,
security interests, encumbrances,  preemptive rights and charges on the exercise
of the  Warrants  from time to time  outstanding,  (c) not take any action which
results in any adjustment of the Purchase Price if the total number of shares of
Common Stock (or Other  Securities)  issuable after the action upon the exercise
of all of the  Warrants  would exceed the total number of shares of Common Stock
(or  Other   Securities)  then  authorized  by  the  Company's   certificate  of
incorporation and available for the purpose of issue upon such exercise, and (d)
shall  not  issue  any  capital  stock of any  class  which is  preferred  as to
dividends or as to the  distribution  of assets upon  voluntary  or  involuntary
dissolution, liquidation or winding-up, unless the rights of the holders thereof
shall

                                       12
<PAGE>

be  limited to a fixed sum or  percentage  of par value or a sum  determined  by
reference to a formula based on a published index of interest rates, an interest
rate publicly  announced by a financial  institution  or a similar  indicator of
interest  rates in respect of  participation  in dividends and to a fixed sum or
percentage of par value in any such distribution of assets.

         7.  CERTIFICATE  AS TO  ADJUSTMENTS.  In each case of any adjustment or
readjustment in the shares of Common Stock (or Other  Securities)  issuable upon
the exercise of this Warrant,  the Company at its expense shall promptly compute
such adjustment or readjustment in accordance with the terms of this Warrant and
prepare a certificate,  signed by the Chairman of the Board, President or one of
the Vice  Presidents of the Company,  and by the Chief  Financial  Officer,  the
Treasurer or one of the Assistant Treasurers of the Company,  setting forth such
adjustment  or  readjustment  and  showing  in  reasonable  detail the method of
calculation  thereof and the facts upon which such adjustment or readjustment is
based, including a statement of (a) the consideration received or to be received
by the  Company  for any  Additional  Shares of Common  Stock  issued or sold or
deemed to have been issued, (b) the number of shares of Common Stock outstanding
or deemed to be  outstanding,  and (c) the Purchase Price in effect  immediately
prior to such issue or sale and as  adjusted  and  readjusted  (if  required  by
Section 3) on account  thereof.  The Company shall forthwith mail a copy of each
such certificate to each holder of a Warrant and shall, upon the written request
at  any  time  of any  holder  of a  Warrant,  furnish  to  such  holder  a like
certificate.  The Company shall also keep copies of all such certificates at its
principal office and shall cause the same to be available for inspection at such
office  during  normal  business  hours  by  any  holder  of a  Warrant  or  any
prospective purchaser of a Warrant designated by the holder thereof. The Company
shall,  upon the  request in writing of the Holder (at the  Company's  expense),
retain independent  public accountants of recognized  national standing selected
by the Board of  Directors  of the Company to make any  computation  required in
connection with adjustments under this Warrant, and a certificate signed by such
firm shall be conclusive  evidence of the correctness of such adjustment,  which
shall be binding on the Holder and the Company.

         8. NOTICES OF CORPORATE ACTION. In the event of:

                   (a) any taking by the  Company of a record of the  holders of
          any class of  securities  for the purpose of  determining  the holders
          thereof  who  are   entitled   to  receive   any   dividend  or  other
          distribution,  or any right to  subscribe  for,  purchase or otherwise
          acquire  any shares of stock of any class or any other  securities  or
          property, or to receive any other right, or

                   (b)  any  capital   reorganization   of  the   Company,   any
          reclassification  or  recapitalization  of the  capital  stock  of the
          Company,  any  consolidation  or merger  involving the Company and any
          other Person,  any transaction or series of transactions in which more
          than 50% of the voting  securities of the Company are  transferred  to
          another Person,  or any transfer,  sale or other disposition of all or
          substantially all the assets of the Company to any other Person, or

                                       13
<PAGE>

                   (c) any voluntary or involuntary dissolution,  liquidation or
          winding-up of the Company,

the Company shall mail to each holder of a Warrant a notice  specifying  (i) the
date or expected date on which any such record is to be taken for the purpose of
such  dividend,  distribution  or right,  and the amount and  character  of such
dividend, distribution or right, and (ii) the date or expected date on which any
such reorganization, reclassification,  recapitalization, consolidation, merger,
transfer, sale, disposition,  dissolution,  liquidation or winding-up is to take
place and the time, if any such time is to be fixed,  as of which the holders of
record of Common Stock (or Other Securities) shall be entitled to exchange their
shares  of  Common  Stock  (or Other  Securities)  for the  securities  or other
property    deliverable    upon    such    reorganization,     reclassification,
recapitalization,  consolidation,  merger, transfer, dissolution, liquidation or
winding-up.  Such  notice  shall be  mailed  at least 20 days  prior to the date
therein  specified but in no event earlier than the public  announcement of such
proposed transaction or event.

         9. REGISTRATION OF COMMON STOCK. If any shares of Common Stock required
to be reserved  for purposes of exercise of this  Warrant  require  registration
with or approval of any  governmental  authority  under any federal or state law
(other than the Securities  Act) before such shares may be issued upon exercise,
the Company shall, at its expense and as expeditiously as possible, use its best
efforts to cause such shares to be duly registered or approved,  as the case may
be.  At any such  time as Common  Stock is  listed  on any  national  securities
exchange or trade market, the Company shall, at its expense, obtain promptly and
maintain the approval for listing on each such  exchange or trade  market,  upon
official  notice of issuance,  the shares of Common Stock issuable upon exercise
of the then  outstanding  Warrants and maintain the listing of such shares after
their  issuance;  and the Company  shall also list on such  national  securities
exchange  or trade  market,  shall  register  under the  Exchange  Act and shall
maintain  such  listing of, any Other  Securities  that at any time are issuable
upon  exercise of the  Warrants,  if and at the time that any  securities of the
same class shall be listed on such national  securities exchange or trade market
by the Company.

                  10.  RESERVATION OF STOCK, ETC. The Company shall at all times
reserve and keep  available,  solely for issuance and delivery  upon exercise of
the Warrants, 150% of the number of shares of Common Stock (or Other Securities)
from time to time issuable upon exercise of all Warrants at the time outstanding
and otherwise in accordance with the terms of the Purchase Agreement. All shares
of Common Stock (or Other  Securities)  issuable  upon  exercise of any Warrants
shall be duly authorized  and, when issued upon such exercise,  shall be validly
issued  and,  in the  case of  shares,  fully  paid  and  nonassessable  with no
liability  on  the  part  of the  holders  thereof,  and,  in  the  case  of all
securities,   shall  be  free  from  all  taxes,   liens,   security  interests,
encumbrances,  preemptive rights and charges.  The transfer agent for the Common
Stock,  which may be the Company (the "Transfer  Agent"),  and every  subsequent
Transfer  Agent for any shares of the Company's  capital stock issuable upon the
exercise of any of the purchase rights  represented by this Warrant,  are hereby
irrevocably  authorized and directed at all times until the  Expiration  Date to
reserve such number of authorized and unissued  shares as shall be requisite for
such  purpose.  The Company  shall keep copies of this  Warrant on file with the
Transfer Agent for the Common Stock and with every subsequent Transfer Agent for
any shares of the  Company's  capital  stock  issuable  upon the exercise of the
rights of purchase  represented  by this Warrant.  The Company shall supply such
Transfer  Agent  with  duly  executed  stock

                                       14
<PAGE>

certificates  for such purpose.  Subsequent to the Expiration Date, no shares of
stock need be reserved in respect of any unexercised Warrant.

         11. REGISTRATION AND TRANSFER OF WARRANTS, ETC.

         11.1. WARRANT REGISTER;  OWNERSHIP OF WARRANTS.  Each Warrant issued by
the Company shall be numbered and shall be registered in a warrant register (the
"Warrant  Register") as it is issued and  transferred,  which  Warrant  Register
shall be maintained by the Company at its principal  office or, at the Company's
election and expense,  by a warrant agent or the Company's  Transfer Agent.  The
Company shall be entitled to treat the  registered  Holder of any Warrant on the
Warrant  Register 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,  and shall not be affected by any notice to the
contrary,  except that,  if and when any Warrant is properly  assigned in blank,
the Company may (but shall not be obligated to) treat the bearer  thereof as the
owner of such Warrant for all purposes. A Warrant, if properly assigned,  may be
exercised by a new holder without a new Warrant first having been issued.

         11.2.  TRANSFER  OF  WARRANTS  AND  COMPLIANCE  WITH  SECURITIES  LAWS.

         (a) Neither this Warrant nor any interest therein may be transferred or
assigned in whole or in part without  compliance with all applicable Federal and
State  securities  laws by Holder and the  transferee  or assignee  thereof.  If
applicable,  this Warrant and all rights  hereunder are transferable in whole or
in part,  without  charge to the Holder  hereof,  upon surrender of this Warrant
with a properly  executed Form of Assignment,  attached  hereto as Exhibit B, at
the  principal  office of the Company.  Upon any partial  transfer,  the Company
shall at its  expense  issue and  deliver  to the  Holder a new  Warrant of like
tenor, in the name of the Holder,  which shall be exercisable for such number of
shares of Common  Stock with respect to which rights under this Warrant were not
so transferred and to the transferee a new Warrant of like tenor, in the name of
the  transferee,  which shall be exercisable for such number of shares of Common
Stock with respect to which rights under this Warrant were so transferred.

         (b) Holder,  by acceptance of this Warrant,  acknowledges  that neither
this Warrant nor the Warrant  Shares have been  registered  under the Securities
Act and  represents  and  warrants  to the  Company  that this  Warrant is being
acquired for investment and not for distribution or resale,  solely for Holder's
own account and not as a nominee for any other person,  and that Holder will not
offer,  sell,  pledge or otherwise  transfer this Warrant or any Warrant  Shares
except (i) in compliance with the requirements  for an available  exemption from
the Securities Act and any applicable state securities laws, or (ii) pursuant to
an effective  registration  statement or qualification  under the Securities Act
and any applicable state securities laws.

         11.3.  REPLACEMENT  OF WARRANTS.  On receipt by the Company of evidence
reasonably  satisfactory  to the  Company  of the loss,  theft,  destruction  or
mutilation  of  this  Warrant  and,  in the  case of any  such  loss,  theft  or
destruction of this Warrant,  on delivery of an indemnity  agreement  reasonably
satisfactory  in form and  amount  to the  Company  or,  in the case of any such
mutilation,  on surrender of such Warrant to the Company at its principal office
and

                                       15
<PAGE>

cancellation  thereof,  the Company at its expense shall execute and deliver, in
lieu thereof, a new Warrant of like tenor.

         11.4.   ADJUSTMENTS   TO   PURCHASE   PRICE  AND   NUMBER  OF   SHARES.
Notwithstanding any adjustment in the Purchase Price or in the number or kind of
shares of Common Stock  purchasable  upon exercise of this Warrant,  any Warrant
theretofore  or  thereafter  issued may  continue to express the same number and
kind of shares of Common  Stock as are  stated  in this  Warrant,  as  initially
issued.

         11.5.  FRACTIONAL SHARES.  Notwithstanding  any adjustment  pursuant to
Section 3 in the number of shares of Common Stock covered by this Warrant or any
other  provision  of this  Warrant,  the Company  shall not be required to issue
fractions of shares upon exercise of this Warrant or to distribute  certificates
which evidence  fractional  shares.  In lieu of fractional  shares,  the Company
shall make  payment to the Holder,  at the time of  exercise of this  Warrant as
herein provided,  in an amount in cash equal to such fraction  multiplied by the
Current Market Price of a share of Common Stock on the date of Warrant exercise.

         12. REMEDIES;  SPECIFIC PERFORMANCE.  The Company stipulates that there
would be no adequate remedy at law to the Holder of this Warrant in the event of
any  default or  threatened  default by the  Company  in the  performance  of or
compliance with any of the terms of this Warrant and,  accordingly,  the Company
agrees that, in addition to any other remedy to which the Holder may be entitled
at law or in equity,  the Holder  shall be entitled  to seek to compel  specific
performance of the  obligations  of the Company under this Warrant,  without the
posting of any bond, in accordance with the terms and conditions of this Warrant
in any court of the United States or any State thereof having jurisdiction,  and
if any action  should be brought in equity to enforce any of the  provisions  of
this Warrant,  the Company shall not raise the defense that there is an adequate
remedy at law.  Except as otherwise  provided by law, a delay or omission by the
Holder  hereto in exercising  any right or remedy  accruing upon any such breach
shall not impair the right or remedy or  constitute a waiver of or  acquiescence
in any such  breach.  No remedy  shall be  exclusive  of any other  remedy.  All
available remedies shall be cumulative.

         13. NO RIGHTS OR LIABILITIES AS SHAREHOLDER.  Nothing contained in this
Warrant shall be construed as conferring  upon the Holder hereof any rights as a
shareholder  of the  Company  or as  imposing  any  obligation  on the Holder to
purchase  any  securities  or as  imposing  any  liabilities  on the Holder as a
shareholder of the Company,  whether such obligation or liabilities are asserted
by the Company or by creditors of the Company.

         14. NOTICES.  Any notices,  consents,  waivers or other  communications
required  or  permitted  to be given  hereunder  must be in writing  and will be
deemed to have been delivered (i) upon receipt, when delivered personally;  (ii)
upon  receipt,  when  sent  by  facsimile,  provided  a copy is  mailed  by U.S.
certified mail, return receipt requested;  (iii) three (3) days after being sent
by U.S.  certified  mail,  return receipt  requested;  or (iv) one (1) day after
deposit with a nationally  recognized  overnight delivery service,  in each case
properly addressed to the party to receive the same. The addresses and facsimile
numbers for such communications shall be:

                                       16

<PAGE>

                  If to the Company:

                           Educational Video Conferencing, Inc.
                           35 East Grassy Sprain Road
                           Suite 200
                           Yonkers, New York  10710
                           Telephone:  (914) 787-3500
                           Facsimile:  (914) 787-3540
                           Attention:  Chief Financial Officer

                  With a copy to:

                           Fischbein Badillo Wagner Harding
                           909 Third Avenue
                           New York, NY  10022
                           Telephone:  (212) 826-2000
                           Facsimile:  (212) 644-7485
                           Attention:  Joseph D. Alperin, Esq.

         If to a Holder,  to its address and  facsimile  number on the  register
maintained by the Company, with a copy to:

                           Schulte Roth & Zabel LLP
                           900 Third Avenue
                           New York, New York  10022
                           Telephone:  (212) 756-2153
                           Facsimile:  (212) 535-5955
                           Attention:  Michael R. Littenberg, Esq.

         Each party shall  provide  five (5) days' prior  written  notice to the
other party of any change in address or facsimile  number.  Notwithstanding  the
foregoing, the exercise of any Warrant shall be effective in the manner provided
in Section 2.

         15.  AMENDMENTS.  This  Warrant and any term hereof may not be amended,
modified, supplemented or terminated, and waivers or consents to departures from
the  provisions  hereof  may not be given,  except by  written  instrument  duly
executed by the party against which enforcement of such amendment, modification,
supplement, termination or consent to departure is sought.

         16.  DESCRIPTIVE  HEADINGS,  ETC.  The headings in this Warrant are for
convenience  of  reference  only and  shall not limit or  otherwise  affect  the
meaning of terms contained herein.  Unless the context of this Warrant otherwise
requires:  (a) words of any gender shall be deemed to include each other gender;
(b) words using the  singular or plural  number shall also include the plural or
singular number, respectively;  (c) the words "hereof", "herein" and "hereunder"
and words of  similar  import  when  used in this  Warrant  shall  refer to this
Warrant as a whole and not to any  particular  provision  of this  Warrant,  and
Section and  paragraph  references  are to the Sections and  paragraphs  of this
Warrant  unless  otherwise  specified;  (d) the word  "including"  and  words of
similar  import  when  used in  this  Warrant  shall  mean  "including,

                                       17
<PAGE>

without limitation," unless otherwise specified;  (e) "or" is not exclusive; and
(f) provisions apply to successive events and transactions.

         17.  GOVERNING LAW. This Warrant shall be governed by, and construed in
accordance with, the laws of the State of New York (without giving effect to the
conflict of laws principles thereof).

         18. JUDICIAL PROCEEDINGS.  Any legal action, suit or proceeding brought
against the Company  with  respect to this Warrant may be brought in any federal
court of the  Southern  District of New York or any state  court  located in New
York County,  State of New York,  and by execution and delivery of this Warrant,
the Company hereby irrevocably and  unconditionally  waives any claim (by way of
motion,  as a defense or  otherwise) of improper  venue,  that it is not subject
personally  to  the  jurisdiction  of  such  court,  that  such  courts  are  an
inconvenient  forum  or that  this  Warrant  or the  subject  matter  may not be
enforced in or by such court. The Company hereby irrevocably and unconditionally
consents  to the service of process of any of the  aforementioned  courts in any
such action,  suit or proceeding by the mailing of copies  thereof by registered
or certified mail, postage prepaid,  at its address set forth or provided for in
Section 14, such service to become effective 10 days after such mailing. Nothing
herein  contained  shall be  deemed  to  affect  the right of any party to serve
process  in any  manner  permitted  by  law or  commence  legal  proceedings  or
otherwise  proceed against any other party in any other  jurisdiction to enforce
judgments  obtained in any action,  suit or proceeding  brought pursuant to this
Section.  The Company irrevocably  submits to the executive  jurisdiction of the
aforementioned courts in such action, suit or proceeding.

         19.  REGISTRATION  RIGHTS  AGREEMENT.  The shares of Common  Stock (and
Other Securities)  issuable upon exercise of this Warrant (or upon conversion of
any  shares  of  Common  Stock  issued  upon  such  exercise)  shall  constitute
Restricted  Securities  (as such  term is  defined  in the  Registration  Rights
Agreement). Each holder of this Warrant shall be entitled to all of the benefits
afforded to a holder of any such Restricted  Securities  under the  Registration
Rights Agreement and such holder,  by its acceptance of this Warrant,  agrees to
be bound by and to  comply  with the terms and  conditions  of the  Registration
Rights  Agreement  applicable  to such  holder  as a holder  of such  Restricted
Securities.

         20.  LIMITATION  ON  EXERCISE.  Notwithstanding  any  provision  to the
contrary  contained herein, in no event shall the Holder be entitled to exercise
this  Warrant,  nor will the Company  recognize  such  exercise,  such that upon
giving effect to such exercise,  the aggregate  number of shares of Common Stock
then  beneficially  owned by the Holder and its  "affiliates" as defined in Rule
144 of the Act would exceed 9.99% of the total issued and outstanding  shares of
the Common Stock  following such exercise;  PROVIDED,  HOWEVER,  that Holder may
elect to waive this  restriction  upon not less than  sixty-one  (61) days prior
written  notice  to the  Company.  For  purposes  of  this  Section,  beneficial
ownership  shall be calculated in accordance  with Section 13(d) of the Exchange
Act.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       18
<PAGE>

                                        EDUCATIONAL VIDEO CONFERENCING, INC.

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

                   [SIGNATURE PAGE TO THE[          ] WARRANT]

                                       19

<PAGE>
                                                   EXHIBIT A to
                                                   COMMON STOCK PURCHASE WARRANT

                                    [FORM OF]
                           ELECTION TO PURCHASE SHARES
                         AND TRANSFER AGENT INSTRUCTIONS

         The undersigned  hereby  irrevocably  elects to exercise the Warrant to
purchase  ____  shares of Common  Stock,  par value  $.0001  per share  ("Common
Stock"),  of EDUCATIONAL  VIDEO  CONFERENCING,  INC. and hereby makes payment of
$________  therefor.  The undersigned hereby requests that certificates for such
shares be issued and delivered as follows:

ISSUE TO:
         -----------------------------------------------------------------------
                                     (NAME)

--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

--------------------------------------------------------------------------------
                  (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)
DELIVER TO:
           ---------------------------------------------------------------------
                                     (NAME)

--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

         If the number of shares of Common Stock  purchased  hereby is less than
the number of shares of Common  Stock  covered by the Warrant,  the  undersigned
requests  that a new Warrant  representing  the number of shares of Common Stock
not so purchased be issued and delivered as follows:

ISSUE TO:
         -----------------------------------------------------------------------
                                (NAME OF HOLDER)

--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)
DELIVER TO:
           ---------------------------------------------------------------------
                                (NAME OF HOLDER)

--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

Dated:                                         [NAME OF HOLDER]
      ----------------------
                                       By:
                                           ----------------------------
                                           Name:
                                           Title:

          ____ , as transfer agent and registrar of the Common Stock,  is hereby
authorized  and  directed to issue the above number of shares of Common Stock in
the  name  of  the  above  referenced  entity  or  person  and  to  deliver  the
certificates representing such shares using an overnight delivery service.

--------------------------
1 (ALL SIGNATURES MUST BE GUARANTEED BY AN ELIGIBLE  GUARANTOR  INSTITUTION THAT
IS A MEMBER OF A RECOGNIZED MEDALLION SIGNATURE GUARANTY PROGRAM.)

                                       20
<PAGE>

                                                 EXHIBIT A to
                                                 COMMON STOCK PURCHASE WARRANT
                                                 ------------------------------

                                                 EDUCATIONAL VIDEO
                                                     CONFERENCING, INC.

                                                 By:
                                                    ---------------------------

                                       21
<PAGE>

                                                   EXHIBIT B to
                                                   COMMON STOCK PURCHASE WARRANT
                                                   -----------------------------
                              [FORM OF] ASSIGNMENT

         FOR  VALUE  RECEIVED,   the  undersigned  hereby  sells,  assigns,  and
transfers unto the Assignee named below all of the rights of the  undersigned to
purchase  Common  Stock,   par  value  $.0001  per  share  ("Common  Stock")  of
EDUCATIONAL VIDEO CONFERENCING, INC. represented by the Warrant, with respect to
the number of shares of Common Stock set forth below:

NAME OF ASSIGNEE            ADDRESS                   NO. OF SHARES

and does hereby  irrevocably  constitute and appoint  ________  Attorney to make
such transfer on the books of EDUCATIONAL VIDEO  CONFERENCING,  INC.  maintained
for that purpose, with full power of substitution in the premises.

Dated:                                                   [NAME OF HOLDER]
      ------------------------

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

(ALL SIGNATURES MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR  INSTITUTION THAT IS
A MEMBER OF A RECOGNIZED MEDALLION SIGNATURE GUARANTY PROGRAM.)FORM OF
                        SERIES B STOCK PURCHASE AGREEMENT

          SERIES B STOCK PURCHASE AGREEMENT (the "AGREEMENT"),  dated as of [ ],
2000, by and among Educational Video Conferencing, Inc., a Delaware corporation,
with headquarters located at 35 East Grassy Sprain Road, Suite 200, Yonkers, New
York 10710 (the  "COMPANY"),  and the investors listed on the Schedule of Buyers
attached hereto (individually, a "BUYER" and collectively, the "BUYERS").

          WHEREAS:

          A. The  Company  and the  Buyers are  executing  and  delivering  this
Agreement in reliance upon the exemption from securities  registration  afforded
by Rule 506 of Regulation D ("REGULATION D") as promulgated by the United States
Securities and Exchange Commission (the "SEC") under the Securities Act of 1933,
as amended (the "1933 ACT");

          B. The Company has authorized the following series of Preferred Stock,
$.0001  par value per share (the  "PREFERRED  STOCK"):  Series B 7%  Convertible
Preferred  Stock ("SERIES B PREFERRED  STOCK") which shall be  convertible  into
shares of the Company's  Common  Stock,  $.0001 par value per share (the "COMMON
STOCK") (as converted, the "CONVERSION SHARES"), in accordance with the terms of
the Company's Certificate of Designations,  Preferences and Rights of the Series
B Preferred Stock, in the form attached hereto as EXHIBIT A (the "CERTIFICATE OF
DESIGNATIONS");

          C. The Company  shall  authorize as of the Closing Date (as defined in
Section 1b.) the issuance of Common Stock  Purchase  Warrants to the Buyers (the
"WARRANTS")  in the form  attached  hereto as EXHIBIT  B, to  acquire  shares of
Common Stock at an exercise price equal to 150% of the Initial Conversion Price,
defined  below,  of the Series B Preferred  Stock (such  shares of Common  Stock
issued upon exercise of the Warrants are hereinafter referred to as the "WARRANT
SHARES" and,  together with the Series B Preferred Shares (defined  below),  the
Conversion Shares and the Warrants are referred to as the "SECURITIES").

          D.   Contemporaneously   with  the  execution  and  delivery  of  this
Agreement,  the  parties  hereto are  executing  and  delivering  an Amended and
Restated  Registration Rights Agreement in the form attached hereto as EXHIBIT C
(the "REGISTRATION  RIGHTS AGREEMENT")  pursuant to which the Company has agreed
to  provide  certain  registration  rights  under the 1933 Act and the rules and
regulations promulgated thereunder, and applicable state securities laws.

          NOW THEREFORE, the Company and the Buyers hereby agree as follows:

          1. PURCHASE AND SALE OF SERIES B PREFERRED SHARES.

            a.   PURCHASE  OF  SERIES  B  PREFERRED   SHARES.   Subject  to  the
satisfaction  (or waiver) of the conditions set forth in Sections 6 and 7 below,
the  Company  shall issue and sell to the Buyers and the Buyers  shall  purchase
from the Company an  aggregate  of [ ] shares of Series B  Preferred  Stock (the
"SERIES B PREFERRED SHARES"),  in the respective amounts set forth opposite each
Buyer's name on the Schedule of Buyers (the  "CLOSING").  The per share purchase
price (the "PURCHASE  PRICE") of the Preferred Shares shall be $100 per share or
an

<PAGE>

aggregate  purchase  price of $[ ]. On the Closing  Date (as defined  below) the
Company shall deliver to each Buyer a stock certificate representing such number
of Series B Preferred  Shares which such Buyer is then  purchasing (as indicated
opposite  such Buyer's name on the Schedule of Buyers),  duly executed on behalf
of the Company and  registered  in the name of such Buyer or its  designee  (the
"STOCK CERTIFICATES").

            b.  CLOSING  DATE.  The date and time of the Closing  (the  "CLOSING
DATE")  shall be 10:00  a.m.  Eastern  Standard  Time on [ ],  2000,  subject to
notification  of  satisfaction  (or waiver) of the conditions to the Closing set
forth in Sections 6 and 7 below (or such later date as is mutually  agreed to in
writing by the Company and the Buyers).  The Closing  shall occur on the Closing
Date at the offices of Fischbein Badillo Wagner Harding,  909 Third Avenue,  New
York, New York 10022.

            c. FORM OF PAYMENT.  On the Closing  Date,  each Buyer shall pay the
Purchase Price to the Company for the Series B Preferred Shares to be issued and
sold to such Buyer at the Closing,  by wire  transfer of  immediately  available
funds in accordance with the Company's written wire instructions provided to the
Buyers  at  least  two  days  prior  to  the  Closing  Date.

            d. WARRANTS. In consideration of the purchase of the Series B
Preferred Shares, the Company shall on the Closing Date issue and deliver to
each Buyer, Warrants to purchase in the aggregate the number of Warrant Shares
as equals the product of 75% and a fraction, the numerator of which is $[ ] and
the denominator of which is the Initial Conversion Price. Each Buyer will
receive Warrants to purchase the number of shares of Common Stock set forth in
the respective amounts set forth opposite such Buyer's name on the Schedule of
Buyers.

            e. INITIAL CONVERSION PRICE. "INITIAL CONVERSION PRICE" means
$13.50.

          2. BUYER'S REPRESENTATIONS AND WARRANTIES.

          Each Buyer represents and warrants with respect to only itself that:

            a.  INVESTMENT  PURPOSE.  Such Buyer (i) is  acquiring  the Series B
Preferred  Shares  and the  Warrants  and (ii) upon  conversion  of the Series B
Preferred  Shares and  exercise of the  Warrants,  will  acquire the  Conversion
Shares and Warrant Shares,  respectively,  then issuable for its own account for
investment only and not with a view towards,  or for resale in connection  with,
the public sale or distribution thereof,  except pursuant to sales registered or
exempted   under  the  1933  Act;   provided,   however,   that  by  making  the
representations herein, such Buyer does not agree to hold any Securities for any
minimum  or other  specific  term and  reserves  the  right  to  dispose  of the
Securities  at any  time  in  accordance  with  or  pursuant  to a  registration
statement or an exemption under the 1933 Act.

            b.  ACCREDITED   INVESTOR  STATUS.  Such  Buyer  is  an  "accredited
investor" as that term is defined in Rule 501(a) of Regulation D.

                                       2
<PAGE>

            c. RELIANCE ON EXEMPTIONS.  Such Buyer understands that the Series B
Preferred  Shares and Warrants  are being  offered and sold to it in reliance on
specific exemptions from the registration  requirements of United States federal
and state securities laws and that the Company is relying in part upon the truth
and  accuracy  of,  and  such  Buyer's  compliance  with,  the  representations,
warranties,  agreements,  acknowledgments  and  understandings of such Buyer set
forth herein in order to determine the  availability  of such exemptions and the
eligibility  of such Buyer to  acquire  the  Series B  Preferred  Shares and the
Warrants.

            d.  INFORMATION.  Such  Buyer and its  advisors,  if any,  have been
furnished with all materials  relating to the business,  finances and operations
of the  Company  and  materials  relating  to the offer and sale of the Series B
Preferred  Shares and the  Warrants  which have been  requested  by such  Buyer,
including,  without limitation, the Company's Annual Report on Form 10-K for the
year ended December 31, 1999, its Quarterly  Report on Form 10-Q for the periods
ended March 31, 2000 and June 30,  2000;  its Current  Reports on Form 8-K filed
with the SEC on January,  31, 2000,  February 18, 2000,  March 7, 2000 and March
28, 2000; the  description  of the Common Stock  contained in the Company's Form
8-A filed with the SEC on February 10, 1999; and the  Prospectus  filed with the
SEC on  February  24,  1999.  Such  Buyer and its  advisors,  if any,  have been
afforded the opportunity to ask questions of the Company. Neither such inquiries
nor any  other  due  diligence  investigations  conducted  by such  Buyer or its
advisors,  if any, or its  representatives  shall  modify,  amend or affect such
Buyer's right to rely on the Company's  representations and warranties contained
in Section 3 below.

            e. NO GOVERNMENTAL  REVIEW.  Such Buyer  understands  that no United
States federal or state agency or any other  government or  governmental  agency
has  passed  on or made  any  recommendation  or  endorsement  of the  Series  B
Preferred  Shares  and  the  Warrants  or the  fairness  or  suitability  of the
investment in the Securities nor have such  authorities  passed upon or endorsed
the merits of the offering of the Series B Preferred Shares and the Warrants.

            f.  TRANSFER  OR  RESALE.  Such  Buyer  understands  that  except as
provided in the Registration Rights Agreement:  (i) the Securities have not been
and are not being  registered  under the 1933 Act or any state  securities laws,
and may not be  offered  for sale,  sold,  assigned  or  transferred  unless (A)
subsequently  registered thereunder,  (B) such Buyer shall have delivered to the
Company an opinion of counsel,  reasonably  acceptable  to the  Company,  to the
effect that such  Securities to be sold,  assigned or  transferred  may be sold,
assigned or transferred pursuant to an exemption from such registration,  or (C)
such  Securities  can be sold,  assigned  or  transferred  pursuant  to Rule 144
promulgated  under the 1933 Act (or a successor rule thereto) ("RULE 144"); (ii)
any sale of such  Securities  made in  reliance  on Rule 144 may be made only in
accordance  with  the  terms  of  Rule  144  and  further,  if  Rule  144 is not
applicable,  any  resale of such  Securities  under  circumstances  in which the
seller  (or the  person  through  whom the sale is made)  may be deemed to be an
underwriter  (as that term is  defined in the 1933 Act) may  require  compliance
with some other exemption under the 1933 Act or the rules and regulations of the
SEC thereunder;  and (iii) neither the Company nor any other person is under any
obligation  to  register  such  Securities  under  the  1933  Act or  any  state
securities  laws or to comply  with the terms and  conditions  of any  exemption
thereunder, except as set forth in the Registration Rights Agreement.

                                       3
<PAGE>

            g. LEGENDS.  Such Buyer  understands  that the certificates or other
instruments  representing  the Series B  Preferred  Shares,  the  Warrants,  the
Conversion  Shares and the Warrant  Shares  shall bear a  restrictive  legend in
substantially  the  following  form  (and a  stop-transfer  order  may be placed
against transfer of such stock certificates):

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED,  OR  APPLICABLE  STATE
         SECURITIES  LAWS. THE SECURITIES  HAVE BEEN ACQUIRED FOR INVESTMENT AND
         MAY NOT BE OFFERED  FOR SALE,  SOLD,  TRANSFERRED  OR  ASSIGNED  IN THE
         ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
         THE SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE STATE SECURITIES
         LAWS,  OR AN OPINION OF COUNSEL,  REASONABLY  ACCEPTABLE TO THE ISSUER,
         THAT  REGISTRATION  IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE  STATE
         SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

The legend  set forth  above  shall be removed  and the  Company  shall  issue a
certificate without such legend to the holder of any Securities upon which it is
stamped, if (i) upon a resale, any such Securities are registered for sale under
the 1933 Act, (ii) in connection with a sale  transaction,  such holder provides
the Company with an opinion of counsel, reasonably acceptable to the Company, to
the effect that a public sale,  assignment or transfer of any of the  Securities
may be made  without  registration  under  the 1933  Act,  or  (iii)  any of the
Securities  can be sold pursuant to Rule 144 without any  restriction  as to the
number  of  securities  acquired  as of a  particular  date  that  can  then  be
immediately sold. Each Buyer  acknowledges,  covenants and agrees to sell any of
the Securities  represented by a  certificate(s)  from which the legend has been
removed, only pursuant to (i) a registration  statement effective under the 1933
Act,  or (ii)  advice of  counsel  that such  sale is exempt  from  registration
required by Section 5 of the 1933 Act. In the event the above  legend is removed
from any of the Securities,  the Company may, upon reasonable  advance notice to
the holder,  require  that the above  legend be placed on any of the  Securities
that cannot then be sold pursuant to an effective registration statement or Rule
144(k) under the 1933 Act (or any successor rule thereto).

            h.  AUTHORIZATION;  ENFORCEMENT.  This  Agreement  has been duly and
validly  authorized,  executed  and  delivered  on behalf of such Buyer and is a
valid and binding  agreement of such Buyer  enforceable  in accordance  with its
terms,  subject  as to  enforceability  to general  principles  of equity and to
applicable bankruptcy, insolvency,  reorganization,  moratorium, liquidation and
other  similar laws  relating to, or affecting  generally,  the  enforcement  of
applicable creditors' rights and remedies.

            i.  RESIDENCY.  Such Buyer is a resident of that country or state of
the United States specified in the Schedule of Buyers.

                                       4

<PAGE>

          3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

          The Company represents and warrants to each of the Buyers that:

            a. ORGANIZATION AND QUALIFICATION.  The Company and its subsidiaries
(a complete list of which is set forth in Schedule 3(a)) are  corporations  duly
organized  and  validly  existing  in  good  standing  under  the  laws  of  the
jurisdiction in which they are  incorporated,  and have the requisite  corporate
power to own  their  properties  and to carry on  their  business  as now  being
conducted.  Each of the  Company and its  subsidiaries  is duly  qualified  as a
foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the  business  conducted  by it makes such  qualification
necessary,  except to the extent  that the failure to be so  qualified  or be in
good  standing  would not have a  Material  Adverse  Effect.  "MATERIAL  ADVERSE
Effect"  means any  material  adverse  effect on (i) the  business,  properties,
operations,   condition  (financial  or  otherwise),  prospects  or  results  of
operations of the Company and its  subsidiaries,  taken as a whole,  (ii) on the
ability  of  the  Company  to  perform  its  obligations  hereunder,  under  the
Registration  Rights  Agreement,   the  Warrants  or  under  the  agreements  or
instruments to be entered into or filed in connection herewith or therewith,  or
(iii) the Securities.

            b.  AUTHORIZATION;  ENFORCEMENT;  COMPLIANCE WITH OTHER INSTRUMENTS.
(i) The Company has the  requisite  corporate  power and authority to enter into
and perform this Agreement and the Registration Rights Agreement, to issue, sell
and perform its obligations with respect to the Series B Preferred Stock and the
Warrants in accordance  with the terms hereof,  the  Certificate of Designations
and the Warrants,  as  applicable,  and to issue the  Conversion  Shares and the
Warrant Shares upon conversion of the Series B Preferred Shares and the exercise
of  the  Warrants,   respectively,   in  accordance   with  the  Certificate  of
Designations and the Warrants,  respectively, (ii) the execution and delivery of
this  Agreement  and the  Registration  Rights  Agreement by the Company and the
consummation  by  it  of  the  transactions  contemplated  hereby  and  thereby,
including  without  limitation the issuance of the Series B Preferred Shares and
the Warrants and the reservation for issuance and the issuance of the Conversion
Shares issuable upon conversion of the Series B Preferred Shares and the Warrant
Shares upon exercise of the Warrants have been duly  authorized by the Company's
Board of Directors and no further  consent or  authorization  is required by the
Company, its Board of Directors or its stockholders,  (iii) this Agreement,  the
Registration  Rights  Agreement,  the  certificates  for the Series B  Preferred
Shares and the Warrants  have been duly  executed and  delivered by the Company,
(iv) this Agreement,  the Registration Rights Agreement,  the Stock Certificates
and the Warrants  constitute  the valid and binding  obligations  of the Company
enforceable  against the Company in accordance with their terms,  except as such
enforceability  may be  limited by general  principles  of equity or  applicable
bankruptcy, insolvency, reorganization,  moratorium, liquidation or similar laws
relating to, or affecting  generally,  the enforcement of creditors'  rights and
remedies  and  except  to the  extent  enforcement  of the  indemnification  and
contribution  provisions  contained in the Registration  Rights Agreement may be
limited  by  applicable  securities  laws,  and (v)  prior to the  Closing,  the
Certificate of Designations  will have been filed with the Secretary of State of
the State of Delaware and will be in full force and effect,  enforceable against
the Company in accordance with its terms.

                                       5

<PAGE>

            c.  CAPITALIZATION.  As of the date hereof,  the authorized  capital
stock of the Company consists of 20,000,000  shares of Common Stock, of which as
of  September  19,  2000,  4,443,523  shares  were issued and  outstanding,  and
1,000,000 shares of Preferred Stock, of which as of September 19, 2000,  315,000
shares were issued and  outstanding.  All of such  outstanding  shares have been
validly  issued and are fully paid and  nonassessable.  Except as  disclosed  in
Schedule 3(c) and except as provided in the Series B Stock  Purchase  Agreements
governing  the  issuance  of other  shares of  Series B  Preferred  (the  "Other
Agreements"),  no shares of  Common  Stock or  Preferred  Stock are  subject  to
preemptive  rights or any  other  similar  rights  or any liens or  encumbrances
suffered or permitted by the Company.  Except as disclosed in Schedule  3(c) and
as provided in the Other  Agreements,  as of the date  hereof,  (i) there are no
outstanding  options,   warrants,  scrip,  rights  to  subscribe  to,  calls  or
commitments  of any  character  whatsoever  relating to, or securities or rights
convertible  into,  any  shares of  capital  stock of the  Company or any of its
subsidiaries, or contracts, commitments, understandings or arrangements by which
the  Company  or  any of  its  subsidiaries  is or may  become  bound  to  issue
additional  shares of capital stock of the Company or any of its subsidiaries or
options,  warrants,  scrip,  rights to subscribe to, calls or commitments of any
character  whatsoever relating to, or securities or rights convertible into, any
shares of capital  stock of the Company or any of its  subsidiaries,  (ii) there
are no  outstanding  debt  securities  and  (iii)  there  are no  agreements  or
arrangements  under which the Company or any of its subsidiaries is obligated to
register  the sale of any of their  securities  under the 1933 Act  (except  the
Registration  Rights  Agreement).  Except as disclosed  in Schedule  3(c) and as
provided  in the  Other  Agreements,  there  are no  securities  or  instruments
containing  anti-dilution  or similar  provisions  that will be triggered by the
issuance of any of the  Securities as described in this  Agreement.  The Company
has furnished to the Buyers true and correct copies of the Company's Certificate
of  Incorporation,  as  amended  and  as in  effect  on  the  date  hereof  (the
"CERTIFICATE OF INCORPORATION"),  and the Company's By-laws, as in effect on the
date hereof (the "BY-LAWS"), and the terms of all securities convertible into or
exercisable  for Common Stock and the material  rights of the holders thereof in
respect thereto.

            d.  ISSUANCE  OF  SECURITIES.  The  Series B  Preferred  Shares  and
Warrants are duly  authorized  and, upon  issuance in accordance  with the terms
hereof,  shall be (i) validly issued,  fully paid and non-assessable,  (ii) free
from all taxes,  liens and charges with  respect to the issue  thereof and (iii)
entitled  to  the  rights  and  preferences  set  forth  in the  Certificate  of
Designations and the Warrants, respectively. Not less than 150% of the number of
shares of Common Stock  necessary to provide for the issuance of the  Conversion
Shares and the Warrant Shares  (assuming such  conversion or exercise took place
on the  Closing  Date) in  accordance  with the  terms  of this  Agreement,  the
Certificate  of  Designations  and the Warrants  have been duly  authorized  and
reserved  for  issuance  upon  conversion  of the Series B Preferred  Shares and
exercise of the Warrants.  Upon  conversion  or exercise in accordance  with the
Certificate of  Designations  and the Warrants,  as  applicable,  the Conversion
Shares and Warrant Shares will be validly issued,  fully paid and  nonassessable
and free from all taxes,  liens and charges with  respect to the issue  thereof,
with the holders  being  entitled  to all rights  accorded to a holder of Common
Stock.

            e.  NO  CONFLICTS.   Except  as  disclosed  in  Schedule  3(e),  the
execution,  delivery and performance of this Agreement,  the Registration Rights
Agreement and the Warrants by the Company, the performance by the Company of its
obligations  under the  Certificate  of  Designations  and the  Warrants and the
consummation by the Company of the

                                       6
<PAGE>

transactions  contemplated hereby and thereby will not (i) result in a violation
of  the  Certificate  of   Incorporation,   any  Certificate  of   Designations,
Preferences  and  Rights of any  outstanding  series of  Preferred  Stock of the
Company or By-laws or (ii)  conflict  with, or constitute a default (or an event
which with  notice or lapse of time or both would  become a default)  under,  or
give  to  others  any  rights  of   termination,   amendment,   acceleration  or
cancellation  of, any material  agreement,  indenture or instrument to which the
Company or any of its  subsidiaries  is a party, or result in a violation of any
law, rule,  regulation,  order,  judgment or decree (including federal and state
securities  laws and  regulations and the rules and regulations of the principal
market or exchange on which the Common Stock is traded or listed)  applicable to
the Company or any of its  subsidiaries or by which any property or asset of the
Company or any of its subsidiaries is bound or affected.  Except as disclosed in
Schedule 3(e),  neither the Company nor its  subsidiaries is in violation of any
term of or in default under its Certificate of Incorporation, any Certificate of
Designations,  Preferences  and Rights of any  outstanding  series of  Preferred
Stock of the  Company  or By-laws or their  organizational  charter or  by-laws,
respectively,  or any  material  contract,  agreement,  mortgage,  indebtedness,
indenture,  instrument,  judgment,  decree  or  order  or any  statute,  rule or
regulation  applicable to the Company or its  subsidiaries.  The business of the
Company and its subsidiaries is not being conducted, and shall not be conducted,
in violation of any law,  ordinance or  regulation of any  governmental  entity.
Except as specifically  contemplated by this Agreement and as required under the
1933 Act, the Company is not required to obtain any  consent,  authorization  or
order of, or make any filing or registration  with, any court or governmental or
regulatory  or  self-regulatory  agency in order for it to  execute,  deliver or
perform any of its obligations  under or  contemplated  by this  Agreement,  the
Registration  Rights Agreement or the Warrants or perform its obligations  under
the  Certificate of Designations in accordance with the terms hereof or thereof.
Except as disclosed in Schedule  3(e),  all  consents,  authorizations,  orders,
filings and  registrations  which the Company is required to obtain  pursuant to
the  preceding  sentence  have been obtained or effected on or prior to the date
hereof.  The  Company is not in  violation  of the listing  requirements  of the
Nasdaq  SmallCap  Market.  The Company and its  subsidiaries  are unaware of any
facts or  circumstances  which  might  give rise to any of the  foregoing  or to
delisting of the Common Stock by the Nasdaq SmallCap Market.

            f. SEC DOCUMENTS; FINANCIAL STATEMENTS. Since February 10, 1999, the
Company has filed all reports,  schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the  reporting  requirements
of the Securities  Exchange Act of 1934, as amended (the "1934 ACT") (all of the
foregoing filed prior to the date hereof and all exhibits  included  therein and
financial  statements  and  schedules  thereto  and  documents  incorporated  by
reference  therein being hereinafter  referred to as the "SEC  DOCUMENTS").  The
Company  has agreed to deliver  to the Buyers or their  representative  true and
complete copies of the SEC Documents upon request. As of their respective dates,
the SEC Documents complied in all material respects with the requirements of the
1934  Act and the  rules  and  regulations  of the  SEC  promulgated  thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they
were filed with the SEC,  contained  any untrue  statement of a material fact or
omitted to state a material fact  required to be stated  therein or necessary in
order to make the statements  therein, in light of the circumstances under which
they were made, not  misleading.  As of their  respective  dates,  the financial
statements of the Company  included in the SEC Documents  complied as to form in
all material respects with applicable accounting  requirements and the published
rules and regulations of the SEC with respect thereto. Such

                                       7
<PAGE>

financial  statements have been prepared in accordance  with generally  accepted
accounting principles,  consistently applied during the periods involved (except
(i) as may be otherwise  indicated  in such  financial  statements  or the notes
thereto, or (ii) in the case of unaudited interim statements, to the extent they
may exclude  footnotes  or may be condensed  or summary  statements)  and fairly
present in all material respects the financial position of the Company as of the
dates thereof and the results of its  operations  and cash flows for the periods
then ended  (subject,  in the case of unaudited  statements,  to normal year-end
audit adjustments). No other information provided by or on behalf of the Company
to the Buyers which is not  included in the SEC  Documents,  including,  without
limitation,  information referred to in Section 2(d) of this Agreement, contains
any untrue  statement  of a material  fact or omits to state any  material  fact
necessary  in  order  to  make  the  statements  therein,  in the  light  of the
circumstances  under  which they are or were  made,  not  misleading.  After the
Closing,  the  Company  will not  provide to any Buyer any  material  non-public
information  which,  according to applicable law, rule or regulation should have
been disclosed publicly by the Company but which has not been so disclosed as of
the date hereof.

            g.  ABSENCE OF CERTAIN  CHANGES.  Except as  expressly  set forth in
Schedule 3(g),  since June 30, 2000,  there has been no material  adverse change
and no material  adverse  development in the business,  properties,  operations,
financial  condition,  results of operations or prospects of the Company and its
subsidiaries taken as a whole. The Company has not taken any steps, and does not
currently  expect  to  take  any  steps,  to  seek  protection  pursuant  to any
bankruptcy  law nor does the Company or its  subsidiaries  have any knowledge or
reason to believe that its creditors intend to initiate  involuntary  bankruptcy
proceedings.

            h. ABSENCE OF  LITIGATION.  Except as  disclosed  on Schedule  3(h),
there is no action, suit, proceeding,  inquiry or investigation before or by any
court,  public board,  government agency,  self-regulatory  organization or body
pending  or,  to the  knowledge  of  the  Company  or  any of its  subsidiaries,
threatened  against  or  affecting  the  Company  or its  subsidiaries  or their
respective  directors or officers,  or the Common Stock,  wherein an unfavorable
decision,  ruling or  finding  could  individually  or in the  aggregate  have a
Material  Adverse  Effect.  Schedule  3(h)  contains a complete list and summary
description  of any pending,  or to the  knowledge  of the  Company,  threatened
litigation against or affecting the Company or any of its subsidiaries,  without
regard to whether it could have a Material Adverse Effect.

            i.  ACKNOWLEDGMENT  REGARDING  BUYERS'  PURCHASE  OF  THE  SERIES  B
PREFERRED SHARES. The Company acknowledges and agrees that each of the Buyers is
acting  solely in the  capacity of arm's length  purchaser  with respect to this
Agreement  and  the  transactions   contemplated  hereby.  The  Company  further
acknowledges  that each Buyer is not acting as a financial  advisor or fiduciary
of the Company (or in any similar  capacity)  with respect to this Agreement and
the transactions  contemplated  hereby and any advice given by any of the Buyers
or any of their  respective  representatives  or agents in connection  with this
Agreement and the transactions  contemplated hereby is merely incidental to such
Buyer's  purchase  of  the  Series  B  Preferred  Shares.  The  Company  further
represents  to each  Buyer  that  the  Company's  decision  to enter  into  this
Agreement has been based solely on the independent evaluation by the Company and
its representatives.

                                       8
<PAGE>

            j. NO GENERAL  SOLICITATION.  Neither  the  Company,  nor any of its
affiliates,  nor any person  acting on its or their  behalf,  has engaged in any
form of general  solicitation  or general  advertising  (within  the  meaning of
Regulation D under the 1933 Act) in connection  with the offer or sale of any of
the Securities offered hereby.

            k. NO  INTEGRATED  OFFERING.  Neither  the  Company,  nor any of its
affiliates,  nor any  person  acting on its or their  behalf  has,  directly  or
indirectly,  made any offers or sales of any security or solicited any offers to
buy any security,  under circumstances that would require registration of any of
the Securities under the 1933 Act or cause the offering of any of the Securities
to be  integrated  with prior  offerings by the Company for purposes of the 1933
Act  or any  applicable  stockholder  approval  provisions,  including,  without
limitation, under the rules and regulations of The Nasdaq Stock Market.

            l.  EMPLOYMENT   MATTERS;   ERISA  MATTERS.   The  Company  and  its
subsidiaries are in compliance with all federal,  state,  local and foreign laws
and  regulations  respecting  employment  and  employment  practices,  terms and
conditions  of  employment  and wages and hours  except  where  failure to be in
compliance  would not have a  Material  Adverse  Effect.  There  are no  pending
investigations  involving  the  Company or any of its  subsidiaries  by the U.S.
Department  of  Labor  or any  other  governmental  agency  responsible  for the
enforcement of such federal, state, local or foreign laws and regulations. There
is no unfair labor  practice  charge or complaint  against the Company or any of
its  subsidiaries  pending  before the  National  Labor  Relations  Board or any
strike,  picketing,  boycott,  dispute,  slowdown or stoppage  pending or to the
Company's  knowledge  threatened  against or involving the Company or any of its
subsidiaries.  Except as set forth in Schedule 3(l), no representation  question
exists respecting the employees of the Company or any of its  subsidiaries,  and
no collective  bargaining  agreement or modification  thereof is currently being
negotiated  by  the  Company  or  any  of  its  subsidiaries.  No  grievance  or
arbitration  proceeding  is pending  under any  expired or  existing  collective
bargaining  agreements  of the Company or any of its  subsidiaries.  No material
labor  dispute  with the  employees  of the  Company or any of its  subsidiaries
exists or, to the knowledge of the Company, is imminent.  Except as set forth on
Schedule 3(l), the Company has no employee benefit plans subject to the Employee
Retirement Income Security Act of 1974, as amended.

            m.  INTELLECTUAL  PROPERTY RIGHTS.  The Company and its subsidiaries
own or possess  adequate rights or licenses to use all trademarks,  trade names,
service  marks,  service mark  registrations,  service  names,  patents,  patent
rights,    copyrights,    inventions,    licenses,    approvals,    governmental
authorizations,  trade secrets and rights (collectively  "INTELLECTUAL  PROPERTY
RIGHTS")  necessary to conduct their  respective  businesses  as now  conducted.
Except as set forth on Schedule 3(m), none of the  Intellectual  Property Rights
or other  intellectual  property  rights  have  expired  or  terminated,  or are
expected  to  expire  or  terminate  in the near  future.  The  Company  and its
subsidiaries  do not have  any  knowledge  of any  event,  fact or  circumstance
relating  to (i) any  infringement  by the  Company or its  subsidiaries  of any
trademarks,  trade names,  service marks,  service mark  registrations,  service
names, patents,  patent rights,  copyrights,  inventions,  licenses,  approvals,
governmental authorizations, trade secrets or other similar rights of others, or
of any such  development  of similar or  identical  trade  secrets or  technical
information  by  others  or  (ii)  any  person  or  entity  now  infringing  any
Intellectual  Property Rights or other similar rights or any such development of
similar or identical trade secrets or technical information owned or used by the
Company or any of its  subsidiaries  and,

                                       9
<PAGE>

except as set forth on Schedule  3(m),  there is no claim,  action or proceeding
being made or brought against, or to the Company's  knowledge,  being threatened
against, the Company or its subsidiaries regarding any trademarks,  trade names,
service  marks,  service mark  registrations,  service  names,  patents,  patent
rights,    copyrights,    inventions,    licenses,    approvals,    governmental
authorizations,  trade secrets or other similar rights of others, or of any such
development  of similar or identical  trade secrets or technical  information by
others or (ii) any person or entity now  infringing  any  Intellectual  Property
Rights or other similar  rights or any such  development of similar or identical
trade secrets or other  infringement;  and the Company and its  subsidiaries are
unaware  of any  facts or  circumstances  which  might  give  rise to any of the
foregoing.  The  Company and its  subsidiaries  have taken  reasonable  security
measures  to  protect  the  secrecy,  confidentiality  and value of all of their
Intellectual Property Rights.

            n.  ENVIRONMENTAL  LAWS. The Company and its subsidiaries (i) are in
compliance with any and all applicable  foreign,  federal,  state and local laws
and  regulations  relating to the  protection  of human  health and safety,  the
environment  or  hazardous  or  toxic   substances  or  wastes,   pollutants  or
contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits, licenses or
other approvals required of them under applicable  Environmental Laws to conduct
their  respective  businesses  and  (iii) are in  compliance  with all terms and
conditions of any such permit, license or approval.

            o. TITLE. The Company and its subsidiaries  have good and marketable
title in fee simple to all real  property and good and  marketable  title to all
personal property owned by them which is material to the business of the Company
and its subsidiaries, in each case free and clear of all liens, encumbrances and
defects  except  such  as are  described  in  Schedule  3(o)  or  such as do not
materially  affect the value of such property and do not interfere  with the use
made  and  proposed  to be  made  of  such  property  by  the  Company  and  its
subsidiaries.  Any real property and facilities  held under lease by the Company
and its  subsidiaries  are held by them under valid,  subsisting and enforceable
leases with such  exceptions as are not material and do not  interfere  with the
use made and proposed to be made of such  property and  buildings by the Company
and its subsidiaries.

            p. INSURANCE.  The Company and each of its  subsidiaries are insured
by insurers of recognized financial responsibility against such losses and risks
and in such amounts as is prudent and  customary in the  businesses in which the
Company  and its  subsidiaries  are  engaged.  Neither  the Company nor any such
subsidiary  has any  reason  to  believe  that it will not be able to renew  its
existing  insurance  coverage  as and when such  coverage  expires  or to obtain
similar  coverage  from  similar  insurers as may be  necessary  to continue its
business at a cost that would not have a Material Adverse Effect.

            q. REGULATORY PERMITS;  COMPLIANCE. The Company and its subsidiaries
possess all franchises,  grants,  authorizations,  licenses permits,  easements,
consents, certificates, approvals and orders necessary to own, lease and operate
its properties  and to conduct their  respective  businesses as currently  being
conducted (collectively,  the "COMPANY PERMITS"). There is no action pending, or
to  the  knowledge  of the  Company,  threatened  regarding  the  suspension  or
cancellation of any of the Company  Permits.  Neither the Company nor any of its
subsidiaries  is in conflict  with,  or in default or  violation  of, any of the
Company  Permits,  except where such conflicts,  default or violations would not
individually  or in the

                                       10

<PAGE>

aggregate  have a Material  Adverse  Effect.  Neither the Company nor any of its
subsidiaries has received any notification  with respect to possible  conflicts,
defaults, or violations of applicable laws.

            r.  INTERNAL  ACCOUNTING  CONTROLS.  The  Company  and  each  of its
subsidiaries  maintain a system of internal accounting controls  sufficient,  in
the  judgment  of the  Company's  board  of  directors,  to  provide  reasonable
assurance that (i)  transactions  are executed in accordance  with  management's
general or specific authorizations,  (ii) transactions are recorded as necessary
to permit  preparation  of financial  statements  in conformity  with  generally
accepted  accounting  principles  and to maintain  asset  accountability,  (iii)
access to assets is permitted only in accordance  with  management's  general or
specific  authorization  and (iv) the  recorded  accountability  for  assets  is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

            s. NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any
of its  subsidiaries  is  subject  to any  charter,  corporate  or  other  legal
restriction,  or any judgment, decree, order, rule or regulation which has or is
expected  in the  future  individually  or in the  aggregate  to have a Material
Adverse  Effect.  Neither the Company nor any of its  subsidiaries is a party to
any  contract or agreement  which has or is expected to have a Material  Adverse
Effect.

            t. TAX STATUS. Except as set forth on Schedule 3(t), the Company and
each of its  subsidiaries has made or filed all federal and state income and all
other tax returns,  reports and  declarations  required by any  jurisdiction  to
which it is subject  (unless and only to the extent that the Company and each of
its subsidiaries has set aside on its books provisions  reasonably  adequate for
the payment of all unpaid and unreported taxes) and has paid all taxes and other
governmental  assessments  and charges  that are  material  in amount,  shown or
determined to be due on such  returns,  reports and  declarations,  except those
being  contested  in good  faith  and  has  set  aside  on its  books  provision
reasonably  adequate for the payment of all taxes for periods  subsequent to the
periods  to which such  returns,  reports or  declarations  apply.  There are no
unpaid taxes in any material amount claimed to be due by the taxing authority of
any jurisdiction,  and the officers of the Company know of no basis for any such
claim.

            u. CERTAIN  TRANSACTIONS.  Except as set forth on Schedule  3(u) and
except  for  arm's  length  transactions  pursuant  to which the  Company  makes
payments in the ordinary  course of business upon terms no less  favorable  than
the Company  could  obtain from third  parties and other than the grant of stock
options disclosed on Schedule 3(c), none of the officers, directors or employees
of the Company is presently a party to any  transaction  with the Company (other
than for services as employees, officers and directors), including any contract,
agreement or other  arrangement  providing for the  furnishing of services to or
by,  providing for rental of real or personal  property to or from, or otherwise
requiring payments to or from any officer,  director or such employee or, to the
knowledge of the Company, any corporation, partnership, trust or other entity in
which any officer,  director or any such employee has a substantial  interest or
is an officer, director, trustee or partner.

                                       11
<PAGE>

            v. S-3 REGISTRATION.  The Company is currently  eligible to register
the resale of securities,  including the resale of the Conversion Shares and the
Warrant Shares, on a registration statement on Form S-3 under the 1933 Act.

            w. DISCLOSURE. All information relating to or concerning the Company
or any of its subsidiaries set forth in this Agreement and provided to the Buyer
pursuant  to  Section  2(d)  hereof  and  otherwise  in   connection   with  the
transactions  contemplated  hereby is true and correct in all material  respects
and the Company has not omitted to state any material fact necessary in order to
make the statements made herein or therein,  in light of the circumstances under
which they were made, not misleading.  No event or circumstance  has occurred or
information exists with respect to the Company or any of its subsidiaries or its
or their business, properties,  operations or financial conditions, which, under
applicable law, rule or regulation,  requires public  disclosure or announcement
by the  Company  but  which  has not been so  publicly  announced  or  disclosed
(assuming for this purpose that the  Company's  reports filed under the 1934 Act
are being  incorporated  into an effective  registration  statement filed by the
Company under the 1933 Act).

            x.  INVESTMENT   COMPANY  STATUS.   The  Company  is  not  and  upon
consummation of the sale of the Securities will not be an "investment  company,"
a company controlled by an "investment company" or an "affiliated person" of, or
"promoter" or "principal underwriter" for, an "investment company" as such terms
are defined in the Investment Company Act of 1940, as amended.

            y. FOREIGN CORRUPT PRACTICES.  To the Company's  knowledge,  neither
the Company  nor any of its  subsidiaries,  nor any  director,  officer,  agent,
employee or other person acting on behalf of the Company or any subsidiary  has,
in the  course  of his  actions  for,  or on behalf  of,  the  Company  used any
corporate  funds for any unlawful  contribution,  gift,  entertainment  or other
unlawful  expenses relating to political  activity;  made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from
corporate  funds;  violated  or is in  violation  of any  provision  of the U.S.
Foreign  Corrupt  Practices  Act of 1977;  or made any  bribe,  rebate,  payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic
government official or employee.

          4. COVENANTS AND AGREEMENTS.

            a. BEST  EFFORTS.  Each party shall use its best  efforts  timely to
satisfy each of the  conditions  to be satisfied by it as provided in Sections 6
and 7 of this Agreement.

            b. FORM D. The Company  agrees to file a Form D with  respect to the
Securities as required under  Regulation D and to provide a copy thereof to each
Buyer  promptly after such filing.  The Company shall,  on or before the Closing
Date, take such action as the Company shall reasonably determine is necessary to
qualify the Securities for, or obtain  exemption for the Securities for, sale to
the Buyers at the Closing pursuant to this Agreement under applicable securities
or "Blue  Sky"  laws of the  states of the  United  States,  and  shall  provide
evidence  of any such  action so taken to the Buyers on or prior to the  Closing
Date.

                                       12

<PAGE>

            c. REPORTING  STATUS.  Until the earlier of (i) six months after the
date as of which the  Investors  (as that term is  defined  in the  Registration
Rights  Agreement)  may sell all of the  Conversion  Shares and  Warrant  Shares
without  restriction  pursuant to Rule 144(k) promulgated under the 1933 Act (or
successor  thereto) or (ii) the date which is six months after the date on which
none  of the  Series  B  Preferred  Shares  or  Warrants  are  outstanding  (the
"REGISTRATION  PERIOD"),  the Company (x) shall timely file all reports required
to be filed with the SEC  pursuant to the 1934 Act,  and the  Company  shall not
terminate  its status as an issuer  required to file reports  under the 1934 Act
even if the 1934 Act or the rules and  regulations  thereunder  would  otherwise
permit  such  termination  and (y) will use its best  efforts  to  maintain  its
ability and eligibility to register securities on Form S-3.

            d. USE OF PROCEEDS.  The Company will use the proceeds from the sale
of the Series B  Preferred  Shares and  Warrants  for capital  expenditures  and
general corporate purposes.

            e. FINANCIAL  INFORMATION.  The Company agrees to send the following
to each Investor (as that term is defined in the Registration  Rights Agreement)
during  the  Registration  Period:  (i)  within  five (5) days  after the filing
thereof with the SEC, a copy of its Annual  Reports on Form 10-K,  its Quarterly
Reports  on Form 10-Q,  any  Current  Reports  on Form 8-K and any  registration
statements or amendments filed pursuant to the 1933 Act; (ii) within one (1) day
after release thereof, copies of all press releases issued by the Company or any
of its subsidiaries;  and (iii) copies of any notices and other information made
available   or   given   to  the   stockholders   of  the   Company   generally,
contemporaneously   with  the  making   available  or  giving   thereof  to  the
stockholders.

            f.  RESERVATION  OF  SHARES.  The  Company  shall  take  all  action
necessary  to at all times have  authorized,  and  reserved  for the  purpose of
issuance,  no less than 150% of the number of shares of Common  Stock  needed to
provide for the issuance of the  Conversion  Shares and Warrant  Shares,  in the
aggregate,  upon conversion of the Series B Preferred Shares and the exercise of
the Warrants,  respectively,  in accordance with the terms of this Agreement and
the Certificate of Designations.

            g.  LISTING.  The Company shall  promptly  secure the listing of the
Conversion  Shares and  Warrant  Shares  upon the Nasdaq  SmallCap  (subject  to
official notice of issuance) and shall maintain,  so long as any other shares of
Common  Stock  shall be so  listed,  the  listing of all  Conversion  Shares and
Warrant Shares from time to time issuable under the terms of this Agreement, the
Certificate  of  Designations  and  the  Warrants  on each  national  securities
exchange and automated  quotation  system  (including the Nasdaq National Market
System and Nasdaq SmallCap),  if any, upon which shares of Common Stock are then
listed.  The Company shall promptly  provide to each Buyer copies of any notices
it receives from NASDAQ regarding the continued  eligibility of the Common Stock
for listing on the Nasdaq SmallCap.  The Company shall pay all fees and expenses
in connection with satisfying its obligations under this Section 4(g).

            h.  EXPENSES.  The  Company  and  the  Buyers  shall  each  pay  its
respective  costs and  expenses  incurred by such party in  connection  with the
negotiation,

                                       13
<PAGE>

investigation,   preparation,   execution,  delivery  and  performance  of  this
Agreement,  the Certificate of  Designations,  the Warrants and the Registration
Rights Agreement.

            i CERTAIN  RESTRICTIONS.  Neither a Buyer nor its  affiliates  shall
sell shares of Common  Stock in the  over-the-counter  market or on any national
securities  exchange  (i)  during  the  10  Trading  Days  prior  to  the  first
anniversary  of the Closing Date, at prices that are between 50% and 100% of the
Initial  Conversion Price (as defined in the Certificate of  Designations),  and
(ii) during the 10 Trading  Days prior to the third  anniversary  of the Closing
Date, at prices that are between 50% and 100% of the Reset  Conversion Price (as
defined in the Certificate of Designations).

            j. DILUTIVE EFFECT.  The Company  understands and acknowledges  that
the number of Conversion  Shares and Warrant Shares  issuable upon conversion of
the Series B Preferred Shares and exercise of the Warrants,  respectively,  will
increase in certain  circumstances.  The Company further acknowledges and agrees
that  its  obligation  to  issue  Conversion  Shares  and  Warrant  Shares  upon
conversion  of the Series B  Preferred  Shares  and  exercise  of the  Warrants,
respectively,   in  accordance   with  this   Agreement,   the   Certificate  of
Designations,  and the Warrants,  as applicable,  is absolute and  unconditional
regardless  of the dilutive  effect that such issuance may have on the ownership
interests of other stockholders of the Company.

            k. OPINION ON REMOVAL OF LEGEND.  The Company will cause its counsel
to  deliver  an  opinion,  in the form  attached  hereto  as  EXHIBIT  D, on the
effective date of a registration statement covering the resale of the Conversion
Shares and the  Warrant  Shares to the effect  that the  restrictive  legend set
forth in Section 2(g) of this Agreement may be removed upon the sale, assignment
or other transfer of any and all such Conversion  Shares and Warrant Shares sold
pursuant  to such  registration  statement  and  accompanied  by the  prospectus
contained in such registration statement.

            l. DISCLOSURE. From and after the date hereof, the Company shall not
disclose nonpublic  information to any Buyer,  advisors to or representatives of
such Buyer of which the Company has actual  knowledge unless prior to disclosure
of such  information the Company  identifies such information as being nonpublic
information and provides the Buyer, such advisors and  representatives  of which
the Company has actual  knowledge  with the  opportunity  to accept or refuse to
accept such nonpublic information for review.

            m. CORPORATE  EXISTENCE.  So long as any Buyer beneficially owns any
Securities,  the Company shall maintain its corporate existence in good standing
under the laws of the jurisdiction in which it is incorporated.

            n.  SOLVENCY.   The  Company  individually  and  together  with  the
Subsidiaries on a consolidated basis (both before and after giving effect to the
transactions contemplated by this Agreement) is solvent (i.e., its assets have a
fair  market  value  in  excess  of the  amount  required  to pay  its  probable
liabilities  on its  existing  debts as they become  absolute  and  matured) and
currently  the  Company  has no  information  that would  lead it to  reasonably
conclude that the Company would not have,  nor does it intend to take any action
that would

                                       14
<PAGE>

impair,  its ability to pay its debts from time to time  incurred in  connection
therewith as such debts mature.

            o.  INSURANCE.  The Company shall maintain  liability,  casualty and
other  insurance   (subject  to  customary   deductions  and  retentions)   with
responsible  insurance  companies  against  such  risk of the  types  and in the
amounts customarily maintained by companies of comparable size to the Company.

            p. NO INTEGRATION.  The Company will not conduct any future offering
that will be integrated  with the issuance of the Securities for purposes of the
rules promulgated by the SEC or NASDAQ.

          5. TRANSFER AGENT INSTRUCTIONS.

          The Company shall issue irrevocable instructions to its transfer agent
(in the form  attached  hereto as EXHIBIT E) (the  "IRREVOCABLE  TRANSFER  AGENT
INSTRUCTIONS").  The  Company  warrants  that  no  instruction  other  than  the
Irrevocable Transfer Agent Instructions  referred to in this Section 5, and stop
transfer  instructions to give effect to Section 2(f) hereof (in the case of the
Conversion  Shares and Warrant  Shares,  prior to registration of the Conversion
Shares and  Warrant  Shares  under the 1933 Act) will be given by the Company to
its  transfer  agent  and  that  the  Securities   shall   otherwise  be  freely
transferable  on the books  and  records  of the  Company  as and to the  extent
provided in this Agreement,  the Registration Rights Agreement,  the Certificate
of Designations and the Warrants.  Nothing in this Section 5 shall affect in any
way each  Buyer's  obligations  and  agreement  to  comply  with all  applicable
securities  laws upon resale of any of the  Securities.  If a Buyer provides the
Company  with an  opinion  of  counsel,  reasonably  satisfactory  in  form  and
substance to the Company,  that registration of a resale by such Buyer of any of
the  Securities is not required under the 1933 Act, the Company shall permit the
transfer,  and, in the case of the Conversion Shares or Warrant Shares, promptly
instruct its transfer agent to issue one or more  certificates  in such name and
in such denominations as specified by such Buyer. The Company  acknowledges that
a breach by it of its obligations  hereunder will cause  irreparable harm to the
Buyers by  vitiating  the intent and  purpose  of the  transaction  contemplated
hereby.  Accordingly,  the  Company  acknowledges  that the  remedy at law for a
breach of its obligations under this Section 5 will be inadequate and agrees, in
the event of a breach or threatened  breach by the Company of the  provisions of
this  Section 5, that the Buyers  shall be  entitled,  in  addition to all other
available  remedies,  to an  injunction  restraining  any breach  and  requiring
immediate issuance and transfer,  without the necessity of showing economic loss
and without any bond or other security being required.

          6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

          The obligation of the Company hereunder to issue and sell the Series B
Preferred  Shares and  Warrants  to each Buyer at the  Closing is subject to the
satisfaction,  at  or  before  the  Closing  Date,  of  each  of  the  following
conditions,  provided that these  conditions  are for the Company's sole benefit
and may be waived by the Company at any time in its sole discretion:

            a.  Such  Buyer  shall  have   executed   this   Agreement  and  the
Registration Rights Agreement and delivered the same to the Company.

                                       15
<PAGE>

            b. Such Buyer shall have delivered to the Company the Purchase Price
for the Series B Preferred  Shares being  purchased by such Buyer at the Closing
by  wire  transfer  of  immediately   available   funds  pursuant  to  the  wire
instructions provided by the Company.

            c. The  representations  and  warranties of such Buyer shall be true
and  correct  in all  material  respects  as of the date when made and as of the
Closing  Date as  though  made at that  time  (except  for  representations  and
warranties  that  speak as of a  specific  date),  and  such  Buyer  shall  have
performed,  satisfied and complied in all material  respects with the covenants,
agreements and conditions required by this Agreement to be performed,  satisfied
or complied with by such Buyer at or prior to the Closing Date.

            d. The transactions  contemplated  hereby shall not violate any law,
regulation or order then in effect and applicable to Buyers or the Company.

          7. CONDITIONS TO EACH BUYER'S  OBLIGATION TO PURCHASE.

          The  obligation  of each  Buyer  hereunder  to  purchase  the Series B
Preferred Shares at the Closing is subject to the satisfaction, at or before the
Closing  Date,  of  each  of  the  following  conditions,  provided  that  these
conditions  are for each Buyer's sole benefit and may be waived by such Buyer at
any time in its sole discretion:

            a.  The  Company  shall  have   executed  this   Agreement  and  the
Registration Rights Agreement, and delivered the same to such Buyer.

            b. The Certificate of  Designations  shall have been executed by the
Company  and filed  with the  Secretary  of State of the State of  Delaware  and
evidence of such filing  shall have been  provided to the Buyers (with a copy of
such filing being provided to Buyers as soon as practicable thereafter).

            c. The Common  Stock shall be  authorized  for trading on the Nasdaq
SmallCap and trading in the Common Stock issuable upon  conversion of the Series
B  Preferred  Shares and  exercise  of the  Warrants  to be traded on the Nasdaq
SmallCap shall not have been suspended by the SEC or the Nasdaq SmallCap.

            d. The  representations  and warranties of the Company shall be true
and  correct in all  material  respects  (except to the extent  that any of such
representations and warranties is already qualified as to materiality in Section
3 above,  in which case such  representations  and warranties  shall be true and
correct  without further  qualification)  as of the date when made and as of the
Closing  Date as  though  made at that  time  (except  for  representations  and
warranties  that  speak  as of a  specific  date)  and the  Company  shall  have
performed,  satisfied and complied in all material  respects with the covenants,
agreements and conditions required by this Agreement to be performed,  satisfied
or  complied  with by the Company at or prior to the  Closing  Date.  Such Buyer
shall have received a certificate,  executed by the Chief  Executive  Officer of
the Company,  dated as of the Closing Date,  to the  foregoing  effect and as to
such  other  matters as may be  reasonably  requested  by such Buyer  including,
without   limitation,   an  update  as  of  the  Closing  Date   regarding   the
representation contained in Section 3(c) above.

                                       16
<PAGE>

            e. Each  Buyer  shall have  received  the  opinion of the  Company's
counsel dated as of the Closing Date,  in form,  scope and substance  reasonably
satisfactory to such Buyer and in  substantially  the form of EXHIBIT F attached
hereto.

            f. The Company  shall have  executed and delivered to such Buyer the
Stock  Certificates (in such  denominations as such Buyer shall request) for the
Series B Preferred  Shares being  purchased by such Buyer at the Closing and the
Warrants.

            g. The Board of  Directors  of the  Company  shall have  adopted the
resolutions in substantially the form of EXHIBIT G attached hereto.

            h. As of the Closing  Date,  the Company  shall have reserved out of
its  authorized and unissued  Common Stock,  solely for the purpose of effecting
the  conversion  of the  Series  B  Preferred  Shares  and the  exercise  of the
Warrants,  at least 150% of the number of shares of Common  Stock  necessary  to
provide  for the  issuance  of the  Conversion  Shares  and  Warrant  Shares  in
accordance with the terms of this Agreement, the Certificate of Designations and
the Warrants.

            i.  The  Irrevocable  Transfer  Agent  Instructions,  in the form of
EXHIBIT E attached  hereto,  shall have been  delivered to and  acknowledged  in
writing by the Company's transfer agent. j. The transactions contemplated hereby
shall not violate any law,  regulation or order then in effect and applicable to
Buyers or the  Company.  k. Each  stockholder  who is a member of the  Company's
management  and holds in excess of 10% of the  outstanding  capital stock of the
Company  as of the  date  hereof,  and the  Company,  shall  have  executed  and
delivered to the Buyers an Amended and Restated Co-Sale Agreement in the form of
EXHIBIT H attached  hereto (the "CO-SALE  AGREEMENT").  l. Each Buyer shall have
received the letter,  countersigned by the holder of the Series A Preferred,  in
substantially the form of EXHIBIT I attached hereto.

          8. INDEMNIFICATION.

            a. COMPANY  INDEMNIFICATION.  The Company hereby agrees to indemnify
and hold harmless each Buyer and each holder of the  Securities and all of their
respective  officers,  directors,   partners,  members,  affiliates  and  agents
(including,   without   limitation,   those  retained  in  connection  with  the
transactions   contemplated  by  this  Agreement)   (collectively,   the  "BUYER
INDEMNITEES")  from and against  any and all  actions,  causes of action  suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (collectively, "LOSSES") and agrees to reimburse each Buyer
Indemnitee for all  out-of-pocket  expenses  (including the fees and expenses of
legal counsel), in each case promptly as incurred by the Buyer Indemnitee and to
the extent arising out of or in connection with:

               1. subject to Section 9(i),  any  misrepresentation  or breach of
     any  representation or warranty made by the Company in this Agreement,  the
     Certificate

                                       17
<PAGE>

     of Designations,  the Warrants,  the  Registration  Rights Agreement or any
     other certificate,  instrument or document  contemplated hereby or thereby,

               2. any breach of any  covenant,  agreement or  obligation  of the
     Company contained in this Agreement,  the Certificate of Designations,  the
     Warrants or the  Registration  Rights  Agreement or any other  certificate,
     instrument or document  contemplated  hereby or thereby, or

               3. any cause of action,  suit or claim  brought  or made  against
     such Buyer  Indemnitee  and arising out of or resulting from the execution,
     delivery,  performance  or  enforcement  of  this  Agreement  or any  other
     instrument,  document or agreement  executed  pursuant hereto by any of the
     Buyer Indemnitees or any transaction financed or to be financed in whole or
     in part,  directly or indirectly,  with the proceeds of the issuance of the
     Series B Preferred  Shares and  Warrants.

            b. BUYER  INDEMNIFICATION.  Each Buyer,  severally  and not jointly,
hereby  agrees to indemnify and hold harmless the Company,  its  affiliates  and
their   respective   officers,   directors,   partners,   members   and   agents
(collectively,  the "COMPANY  INDEMNITEES") from and against any and all Losses,
and  agrees to  reimburse  Company  Indemnitee  for all  out-of-pocket  expenses
(including  the fees and  expenses of legal  counsel)  in each case  promptly as
incurred by Company Indemnitee and to the extent arising out of or in connection
with:

               1. subject to Section 9(i),  any  misrepresentation  or breach of
     any  representation  or warranty made by such Buyer in this Agreement,  the
     Warrants,  the  Registration  Rights  Agreement  or any other  certificate,
     instrument or document  contemplated hereby or thereby, or

               2. any breach of the covenant,  contained in Section 4(i) of this
     Agreement.

            c. THIRD PARTY CLAIMS. Promptly after receipt by either party hereto
seeking  indemnification  pursuant to this Section 8 (an "INDEMNIFIED PARTY") of
written  notice  of any  investigation,  claim,  proceeding  or other  action in
respect  of which  indemnification  is  being  sought  (each,  a  "CLAIM"),  the
Indemnified  Party promptly shall notify the party against whom  indemnification
pursuant to this  Section 8 is being  sought (the  "INDEMNIFYING  PARTY") of the
commencement thereof; but the omission so to notify the Indemnifying Party shall
not relieve it from any liability that it otherwise may have to the  Indemnified
Party except to the extent that the Indemnifying Party is materially  prejudiced
and  forfeits  substantive  rights or  defenses  by reason of such  failure.  In
connection  with any  Claim as to which  both  the  Indemnifying  Party  and the
Indemnified  Party are  parties,  the  Indemnifying  Party  shall be entitled to
assume the defense thereof. Notwithstanding the assumption of the defense of any
Claim by the Indemnifying  Party, the Indemnified  Party shall have the right to
employ  separate  legal counsel and to participate in the defense of such Claim,
and the Indemnifying Party shall bear the reasonable fees,  out-of-pocket  costs
and expenses of such  separate  legal counsel to the  Indemnified  Party if (and
only if):  (i) the  Indemnifying  Party  shall  have  agreed  to pay such  fees,
out-of-pocket  costs and expenses,  (ii) the Indemnified  Party reasonably shall
have concluded that representation of the Indemnified Party and the Indemnifying
Party by the same legal  counsel

                                       18
<PAGE>

would not be  appropriate  due to actual or, as  reasonably  determined by legal
counsel to the Indemnified Party,  potentially  differing interests between such
parties in the conduct of the  defense of such  Claim,  or if there may be legal
defenses available to the Indemnified Party that are in addition to or disparate
from those available to the Indemnifying  Party, or (iii) the Indemnifying Party
shall  have  failed to  employ  legal  counsel  reasonably  satisfactory  to the
Indemnified  Party  within a  reasonable  period  of time  after  notice  of the
commencement  of such Claim.  If the  Indemnified  Party employs  separate legal
counsel in  circumstances  other than as described in clauses (i), (ii) or (iii)
above,  the fees,  costs  and  expenses  of such  legal  counsel  shall be borne
exclusively by the Indemnified Party. Except as provided above, the Indemnifying
Party  shall not,  in  connection  with any Claim in the same  jurisdiction,  be
liable for the fees and expenses of more than one firm of legal  counsel for the
Indemnified  Party (together with appropriate  local counsel).  The Indemnifying
Party shall not,  without the prior  written  consent of the  Indemnified  Party
(which  consent shall not  unreasonably  be withheld),  settle or compromise any
Claim or  consent  to the  entry  of any  judgment  that  does  not  include  an
unconditional release of the Indemnified Party from all liabilities with respect
to such Claim or judgment.

            d. CONTRIBUTION.  To the extent that the indemnification  provisions
above may be unenforceable for any reason, the Indemnifying Party shall make the
maximum contribution to the payment and satisfaction of each of the Losses which
is permissible under applicable law.

          9. GOVERNING LAW; MISCELLANEOUS.

            a.  GOVERNING   LAW.  This  Agreement   shall  be  governed  by  and
interpreted in accordance  with the laws of the State of New York without regard
to the principles of conflict of laws.

            b.  COUNTERPARTS.  This  Agreement  may be  executed  in two or more
identical  counterparts,  all of  which  shall  be  considered  one and the same
agreement and shall become effective when  counterparts have been signed by each
party and  delivered  to the other  party.  In the event any  signature  page is
delivered  by  facsimile  transmission,  the party  using such means of delivery
shall  cause  four  (4)  additional  original  executed  signature  pages  to be
physically  delivered to the other party  within five (5) days of the  execution
and delivery hereof.

            c. HEADINGS.  The headings of this Agreement are for  convenience of
reference  and shall not form part of, or affect  the  interpretation  of,  this
Agreement.

            d. SEVERABILITY. If any provision of this Agreement shall be invalid
or unenforceable in any jurisdiction,  such invalidity or unenforceability shall
not affect the validity or  enforceability of the remainder of this Agreement in
that  jurisdiction  or the validity or  enforceability  of any provision of this
Agreement in any other jurisdiction.

            e. ENTIRE AGREEMENT; AMENDMENTS. This Agreement supersedes all other
prior  oral or  written  agreements  between  the  Buyers,  the  Company,  their
affiliates  and  persons  acting on their  behalf  with  respect to the  matters
discussed herein, and this Agreement and the documents referenced herein contain
the entire  understanding  of the parties  with  respect

                                       19
<PAGE>

to the matters covered herein and therein and, except as specifically  set forth
herein or therein,  neither the Company nor any Buyer makes any  representation,
warranty,  covenant or undertaking with respect to such matters. No provision of
this  Agreement  may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

            f. NOTICES. Any notices,  consents,  waivers or other communications
required or permitted to be given under the terms of this  Agreement  must be in
writing  and will be  deemed  to have  been  delivered  (i) upon  receipt,  when
delivered personally; (ii) upon receipt, when sent by facsimile, provided a copy
is mailed by U.S. certified mail, return receipt requested; (iii) three (3) days
after being sent by U.S. certified mail, return receipt  requested,  or (iv) one
(1) day after deposit with a nationally  recognized  overnight delivery service,
in each case properly  addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

                  If to the Company:

                           Educational Video Conferencing, Inc.
                           35 East Grassy Sprain Road
                           Suite 200
                           Yonkers, New York  10710
                           Telephone:  (914) 787-3500
                           Facsimile: (914) 787-3540
                           Attention:  Chief Executive Officer and
                                         Chief Financial Officer

                  With a copy to:

                           Fischbein Badillo Wagner Harding
                           909 Third Avenue
                           New York, New York  10022
                           Telephone:  (212) 826-2000
                           Facsimile: (212) 644-7485
                           Attention: Joseph D. Alperin, Esq.

                  If to the Transfer Agent:

                           Continental Stock Transfer & Trust Company
                           2 Broadway
                           New York, New York 10004
                           Telephone: (212) 509-4000
                           Facsimile: (212) 509-5150
                           Attention: Michael Nelson, Compliance Department

          If to a Buyer, to its address and facsimile  number on the Schedule of
Buyers,  with  copies to such  Buyer's  counsel as set forth on the  Schedule of
Buyers.  Each party shall  provide  five (5) days' prior  written  notice to the
other party of any change in address or facsimile number.

            g. SUCCESSORS AND ASSIGNS.  This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns,
including any

                                       20

<PAGE>

purchasers of the Securities. The Company shall not assign this Agreement or any
rights or obligations hereunder without the prior written consent of the Buyers.
A Buyer may assign  some or all of its rights  hereunder  without the consent of
the Company,  provided,  however, that (i) any such assignment shall not release
such Buyer from its obligations hereunder unless such obligations are assumed by
such assignee and the Company has consented to such  assignment  and  assumption
and (ii) no Buyer may assign its rights  hereunder  in a manner that would cause
the offering of Securities  hereunder to be required to be registered  under the
1933 Act.

            h. NO THIRD PARTY BENEFICIARIES.  This Agreement is intended for the
benefit of the parties  hereto and their  respective  permitted  successors  and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

            i. SURVIVAL.  The  representations and warranties of the Company and
the Buyers  contained  in  Sections 3 and 2,  respectively,  shall  survive  the
Closing until three years after the Closing Date, including, without limitation,
all financial  statements  thereto.  The  agreements  and covenants set forth in
Sections 4, 5 and 9, and the indemnification  provisions set forth in Section 8,
shall  survive the  Closing.  Each Buyer shall be  responsible  only for its own
representations, warranties, agreements and covenants hereunder.

            j. PUBLICITY. Without the prior written consent of the subject Buyer
or Buyers,  the Company will not, and will use reasonable efforts to ensure that
its officers,  directors,  employees and agents do not, disclose the name of any
Buyer; provided,  however, that the Company shall be entitled, without the prior
approval of any Buyer, to make any press release or other public disclosure with
respect to such  transactions  as is required by applicable law and  regulations
(although  each Buyer shall be consulted by the Company in  connection  with any
such press release or other public  disclosure prior to its release and shall be
provided with a copy  thereof),  but only to the extent  required by such law or
regulation.

            k. FURTHER ASSURANCES.  Each party shall do and perform, or cause to
be done and performed,  all such further acts and things,  and shall execute and
deliver all such other agreements,  certificates,  instruments and documents, as
the other  party may  reasonably  request  in order to carry out the  intent and
accomplish  the  purposes  of  this  Agreement  and  the   consummation  of  the
transactions contemplated hereby.

            l. CONSENT TO  JURISDICTION.  The parties  hereto  expressly  submit
themselves to the exclusive  jurisdiction of the state and federal courts of New
York in any action or proceeding  relating to this Agreement or any of the other
documents contemplated hereby or any of the transactions  contemplated hereby or
thereby.  Each party hereby irrevocably  waives, to the fullest extent permitted
by law, any objection  that it may now or hereafter  have to the laying of venue
of any such  action,  suit or  proceeding  brought in such a court and any claim
that  any such  action,  suit or  proceeding  brought  in such a court  has been
brought  in  an  inconvenient   forum.   The  parties  hereto   irrevocably  and
unconditionally  consent to the service of process of any of the  aforementioned
courts in any such action,  suit or proceeding by the mailing of copies  thereof
by registered or certified mail, postage prepaid, at their respective  addresses
set forth or provided for herein, such service to become effective 10 days after
such  mailing.  Nothing  herein  shall  affect  the  right of any party to serve
process in any manner permitted by law.

                                       21
<PAGE>

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

            n. EQUITABLE RELIEF.  The Company  recognizes that in the event that
it fails to perform,  observe,  or discharge any or all of its obligations under
this  Agreement,  any  remedy  at law may prove to be  inadequate  relief to the
Buyers.  The Company  therefore agrees that the Buyers shall be entitled to seek
temporary and permanent injunctive relief in any such case without the necessity
of proving actual damages.

            o. WAIVER.  The Buyers  hereby waive the  requirement  of notice and
delivery of transaction  documents in connection  with the proposed  issuance of
"Additional  Securities"  pursuant  to  Section  18(b)  of  the  Certificate  of
Designations.

                                       22

<PAGE>

            IN WITNESS  WHEREOF,  the Buyers and the  Company  have  caused this
Series B Stock  Purchase  Agreement  to be duly  executed  as of the date  first
written above.

                       EDUCATIONAL VIDEO CONFERENCING, INC

                       By:
                            ------------------------------------------
                           Name: Dr. Arol I. Buntzman
                           Its:  Chairman and Chief Executive Officer

                        [                                           ]

                        By:   [                                     ]

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

                         [                                          ]

                         By:   [                               ]

                         By:   [                               ]

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

                                       23
<PAGE>

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>

<S>                   <C>                     <C>                  <C>          <C>
                                             NUMBER OF           NUMBER OF
                    INVESTOR ADDRESS AND     SERIES B            WARRANT        INVESTOR'S ADVISOR AND
INVESTOR NAME        FACSIMILE NUMBER     PREFERRED SHARES       SHARES         LEGAL COUNSEL ADDRESS

</TABLE>

                                       24

<PAGE>

               SCHEDULES TO THE SERIES B STOCK PURCHASE AGREEMENT

               (OMITTED FROM THIS FILING. COPIES WILL BE PROVIDED
                        TO THE COMMISSION UPON REQUEST)

                                       25
<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT A

                           Certificate of Designations

                       See Exhibit 3.6 of the Registrant's
                      Form 8-K Report dated October 6, 2000

                                       26
<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT B

                         Common Stock Purchase Warrants

                       See Exhibit 4.8 of the Registrant's
                      Form 8-K Report dated October 6, 2000

                                       27

<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT C

                          Registration Rights Agreement

3
                      See Exhibit 10.57 to the Registrant's

                     Form 8-K Report dated October 6, 2000

                                       28
<PAGE>

EXHIBITS TO THE SERIES B STOCK PURCHASE AGREEMENT OF [ ], 2000

                                    EXHIBIT D

                      FORM OF OPINION ON REMOVAL OF LEGEND

     In connection with the resale of the [Conversion Shares]
[Warrant  Shares] by the Seller and  assuming  that the  Registration  Statement
remains in effect and currently  updated as required under the 1933 Act, that no
stop order is issued and that the Company  remains in  existence,  we are of the
opinion that: (i) the resale of the [Conversion  Shares] [Warrant Shares] by the
Seller is registered under the 1933 Act under the Registration  Statement;  (ii)
upon the presentation of the certificate  representing  the [Conversion  Shares]
[Warrant  Shares] for transfer and upon your receipt of a letter of confirmation
indicating  that  such  shares  have been  transferred  in  conformity  with the
prospectus  delivery  requirements  of  the  1933  Act,  you  may  issue  a  new
certificate representing the [Conversion Shares] [Warrant Shares] in the name of
the subsequent purchaser; and (iii) the certificate representing the [Conversion
Shares]  [Warrant  Shares] in the name of such purchaser may be issued without a
restrictive legend.

                                       30

<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT E

                     Irrevocable Transfer Agent Instructions

                                  See attached

                                       31

<PAGE>

                       TRANSFER AGENT INSTRUCTIONS
                      EDUCATIONAL VIDEO CONFERENCING, INC.
                               SEPTEMBER 22, 2000

Continental Stock Transfer & Trust Company
2 Broadway
New York, NY 10004
Attn.:  Compliance Department

Ladies and Gentlemen:

          Reference is made to that certain  Series B Stock  Purchase  Agreement
(the  "Purchase  Agreement"),   dated  [  ],  2000,  between  Educational  Video
Conferencing,  Inc.,  a  Delaware  corporation  (the  "Company"),  and [   ](the
"Holder"),  pursuant  to which the  Company  is issuing  to the  Holders  (i) an
aggregate of [     ] shares of the Company's  Series B 7% Convertible  Preferred
Stock,  $[    ]  stated  value  per share  (the  "Preferred  Shares"),  and (ii)
Warrants to purchase an aggregate of [     ]  shares of Common Stock,  par value
$.0001 per share (the "Common Stock"),  of the Company.  Capitalized terms which
are defined in the Purchase Agreement are used herein as so defined.

         This letter shall serve as our irrevocable  authorization and direction
to you  (provided  that you are acting as the  transfer  agent of the Company at
such time):

               (i) to issue shares (the "Conversion  Shares") of Common Stock of
         the Company to or upon the order of a Holder from time to time upon (a)
         the Company's delivery to you of a Conversion Notice and Transfer Agent
         Instructions  in the form  attached  hereto as EXHIBIT A which has been
         acknowledged  by the Company as indicated by the signatures of officers
         of the  Company  thereon  and (b) the  delivery  to you of an  executed
         opinion  from  counsel to the  Company in the form  attached  hereto as
         EXHIBIT C; and

               (ii) to issue  shares (the  "Warrant  Shares") of Common Stock of
         the Company to or upon the order of a Holder from time to time upon (a)
         the  Company's  delivery to you of a Election to Purchase  and Transfer
         Agent  instructions  in the form attached hereto as EXHIBIT B which has
         been  acknowledged  by the Company as  indicated by the  signatures  of
         officers  of the  Company  thereon  and (b) the  delivery  to you of an
         executed  opinion  from  counsel to the  Company  in the form  attached
         hereto as EXHIBIT C.

          You  acknowledge  and  agree  that  so  long  as you  have  previously
received:  (i) an  executed  opinion  from  counsel  to the  Company in the form
attached hereto as EXHIBIT D that a registration  statement  covering resales of
the Conversion Shares and Warrant Shares has been declared  effective by the SEC
under  the  1933  Act;  (ii)  a  copy  of  such  registration  statement;  (iii)
confirmation  in the form  attached  hereto as  EXHIBIT E from a broker  for the
Holder or the  recipient  of any shares sold,  that any  transfer of  Conversion
Shares or Warrant Shares has been

                                       32
<PAGE>

made in conformity  with the prospectus  delivery  requirements of the 1933 Act,
then you shall issue within three  business days the  certificates  representing
the  Conversion  Shares and the Warrant Shares and such  certificates  shall not
bear any legend  restricting  transfer of the  Conversion  Shares or the Warrant
Shares  thereby  and should not be  subject  to any  stop-transfer  restriction;
provided,  however,  that  if  you  have  not  previously  received  any  of the
foregoing,  then the certificates  for the Conversion  Shares and/or the Warrant
Shares shall be issued  within three  business  days upon receipt of an executed
opinion from counsel to the Company in the form attached hereto as EXHIBIT C.

         Please be advised  that the Holders are relying  upon this letter as an
inducement to enter into the Agreement and, accordingly,  each Holder is a third
party beneficiary to these instructions.

         Please execute this letter in the space  indicated to acknowledge  your
agreement  to act in  accordance  with these  instructions.  Should you have any
questions concerning this matter,  please contact [                     ].

                                            EDUCATIONAL VIDEO CONFERENCING, INC.

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

THE FOREGOING INSTRUCTIONS
ARE AGREED TO
this ____ day of [          ], 2000

CONTINENTAL STOCK TRANSFER & TRUST COMPANY

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

Enclosures

cc:   [                     ]
      [                     ]

                                       33
<PAGE>

                                    EXHIBIT A

                      EDUCATIONAL VIDEO CONFERENCING, INC.

                                CONVERSION NOTICE
                         AND TRANSFER AGENT INSTRUCTIONS

Reference  is made to the  Certificate  of  Designations  of  Educational  Video
Conferencing,  Inc. (the "CERTIFICATE OF DESIGNATIONS").  In accordance with and
pursuant to the Certificate of  Designations,  the undersigned  hereby elects to
convert the number of shares of Series B 7% Convertible Preferred Stock, $100.00
stated value per share (the "SERIES B PREFERRED  SHARES"),  of Educational Video
Conferencing, Inc., a Delaware corporation (the "Company"), indicated below into
shares of Common Stock,  $.0001 par value per share (the "COMMON STOCK"), of the
Company,  by tendering  the stock  certificate(s)  representing  the share(s) of
Series B Preferred Shares specified below as of the date specified below.

  Date of Conversion:
                                                    ----------------------------
  Number of Series B
  Preferred Shares to be converted:
                                                    ----------------------------
  Stock certificate no(s). of Series B
  Preferred Shares to be converted:
                                                    ----------------------------
Please confirm the following information:

  Conversion Price:
                                                    ----------------------------
  Number of shares of Common Stock to be issued:
                                                    ----------------------------

Please  issue and  deliver  the Common  Stock into which the Series B  Preferred
Shares are being converted in the following name and to the following address:

     Issue to:
                                                     ---------------------------

                                                     ---------------------------

                                                     ---------------------------

     Facsimile Number:
                                                     ---------------------------

     Authorization:
                                                     ---------------------------
                                                 By:
                                                     ---------------------------
                                                 Title:
     Dated:
                                                     ---------------------------

          Continental  Stock  Transfer & Trust  Company,  as transfer  agent and
registrar of the Common Stock,  is hereby  authorized  and directed to issue the
above  number  of shares  of  Common  Stock in the name of the above  referenced
entity or person and to deliver the certificates  representing such shares using
an overnight delivery service.

                                       34
<PAGE>

                                       EDUCATIONAL VIDEO CONFERENCING, INC.

                                        By:
                                           -------------------------------------

                                       35
<PAGE>

                                    EXHIBIT B

           ELECTION TO PURCHASE SHARES AND TRANSFER AGENT INSTRUCTIONS

         The undersigned  hereby  irrevocably  elects to exercise the Warrant to
purchase  ____  shares of Common  Stock,  par value  $.0001  per share  ("Common
Stock"),  of Educational  Video  Conferencing,  Inc. and hereby makes payment of
$________  therefor.  The undersigned hereby requests that certificates for such
shares be issued and delivered as follows:

ISSUE TO:
         -----------------------------------------------------------------------
                                     (NAME)

--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

--------------------------------------------------------------------------------
                  (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:
           ---------------------------------------------------------------------
                                     (NAME)

--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

         If the number of shares of Common Stock  purchased  hereby is less than
the number of shares of Common  Stock  covered by the Warrant,  the  undersigned
requests  that a new Warrant  representing  the number of shares of Common Stock
not so purchased be issued and delivered as follows:

ISSUE TO:
         -----------------------------------------------------------------------
                                (NAME OF HOLDER)

                          (ADDRESS, INCLUDING ZIP CODE)

DELIVER TO:
           ---------------------------------------------------------------------
                                (NAME OF HOLDER)

--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

Dated:                                                 [NAME OF HOLDER]
       --------------------
                                          By
                                            -------------------------------
                                            Name:
                                            Title:

         Continental  Stock  Transfer & Trust  Company,  as  transfer  agent and
registrar of the Common Stock,  is hereby  authorized  and directed to issue the
above  number  of shares  of  Common  Stock in the name of the above  referenced
entity or person and to deliver the certificates  representing such shares using
an overnight delivery service.

                                         EDUCATIONAL VIDEO CONFERENCING, INC.

                                         By
                                           --------------------------------

                                       36
<PAGE>

                                    EXHIBIT C

                       FORM OF COUNSEL OPINION ON ISSUANCE

         In  connection  with  the  issuance  of  [Conversion  Shares]  [Warrant
Shares], it is our opinion that the issuance of:

         (i) Conversion  Shares is exempt from  registration  under the 1933 Act
pursuant to Section 3(a)(9) of the 1933 Act; and

         (ii)  Warrant  Shares is exempt  from  registration  under the 1933 Act
pursuant to Section 4(2) of the Act.

         Each stock  certificate  representing  shares of Common Stock,  if any,
issued to  ______________  as Conversion  Shares or Warrant Shares must bear the
following  legend (which you should note differs from the legend normally placed
by you on certificates representing the Company's restricted Common Stock):

         "THE  SECURITIES   REPRESENTED  BY  THIS   CERTIFICATE  HAVE  NOT  BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE
         STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
         AND MAY NOT BE OFFERED FOR SALE,  SOLD,  TRANSFERRED OR ASSIGNED IN THE
         ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
         THE SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE STATE SECURITIES
         LAWS, OR AN OPINION OF COUNSEL,  IN A GENERALLY  ACCEPTABLE  FORM, THAT
         REGISTRATION  IS  NOT  REQUIRED  UNDER  SAID  ACT OR  APPLICABLE  STATE
         SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT."

                                       37

<PAGE>

                                    EXHIBIT D

                FORM OF COUNSEL OPINION ON REGISTRATION STATEMENT

         In  connection  with the  resale of the  [Conversion  Shares]  [Warrant
Shares] by the Seller and assuming that the  Registration  Statement  remains in
effect and currently  updated as required under the 1933 Act, that no stop order
is issued and that the Company remains in existence, we are of the opinion that:
(i) the  resale of the  [Conversion  Shares]  [Warrant  Shares] by the Seller is
registered  under the 1933 Act under the Registration  Statement;  (ii) upon the
presentation of the certificate  representing  the [Conversion  Shares] [Warrant
Shares]  for  transfer  and  upon  your  receipt  of a  letter  of  confirmation
indicating  that  such  shares  have been  transferred  in  conformity  with the
prospectus  delivery  requirements  of  the  1933  Act,  you  may  issue  a  new
certificate representing the [Conversion Shares] [Warrant Shares] in the name of
the subsequent purchaser; and (iii) the certificate representing the [Conversion
Shares]  [Warrant  Shares] in the name of such purchaser may be issued without a
restrictive legend.

                                       38

<PAGE>

                                    EXHIBIT E

                       PROSPECTUS DELIVERY ACKNOWLEDGMENT

         In connection  with the sale,  pursuant to the final  prospectus  dated
__________________,  of an  aggregate  of  ______  shares  of  Common  Stock  of
Educational Video  Conferencing,  Inc. (the "COMPANY"),  the undersigned  hereby
acknowledges  to the Company,  its counsel and its transfer agent that copies of
such final  prospectus  were  properly  transmitted  for  delivery or  otherwise
properly made available to the buyers.

Dated:
      ------------------------------

                                            [               ]

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

                                       39
<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT F

                           Opinion of Company Counsel

                            Omitted from this filing

                                       40

<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT G

                      Company Board of Director Resolutions

                            Omitted from this filing

                                       41
<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT H

                                Co-Sale Agreement

                      See Exhibit 10.58 of the Registrant's
                      Form 8-K Report dated October 6, 2000

                                       42

<PAGE>

         Exhibits to the Series B Stock Purchase Agreement of [ ], 2000

                                    EXHIBIT I

                                 Series A Waiver

                                  See attached

                                       43
<PAGE>

              [LETTERHEAD OF EDUCATIONAL VIDEO CONFERENCING , INC.]

                                                     SEPTEMBER 21, 2000

BY FACSIMILE (212) 504-6666

Shimon Rosenfeld, Esq.
Cadwalader, Wickersham & Taft
100 Maiden Lane
New York, NY 10038

              Re:     The Shaar Fund Ltd. (the "Buyer") and Educational Video
                      CONFERENCING, INC. (THE "COMPANY")

Dear Mr. Rosenfeld:

       Reference  is made  to the  Securities  Purchase  Agreement  dated  as of
February 3, 2000 between the Company and the Buyer (the  "Purchase  Agreement").
Unless the context of this letter  requires  otherwise,  all  capitalized  terms
below shall have the same meaning as in the  Documents,  as that term is defined
in the Purchase Agreement.

       The  Buyer is aware  that the  Company  anticipates  closing  this week a
financing  involving  the  issuance of a new series of the  Company's  preferred
stock and  warrants to  purchase  shares of Common  Stock for gross  proceeds of
$10,000,000  (the  "Financing").  The Buyer is also  aware that a portion of the
proceeds  of the  Financing  must be used to  redeem  all  shares  of  Series  A
Preferred Stock. In order to complete the Financing on schedule,  the Company is
requesting from the Buyer:

       1. A waiver of the right of first  refusal set forth in Section IV. G. of
the Purchase Agreement.

       2. A waiver of the notice or redemption requirement of Section 6.6 of the
Certificate  of  Designation  provided the Company  notifies the Buyer or you by
facsimile, not less than three hours prior to the closing of the Financing, that
the  redemption  of the  Series A  Preferred  Stock  will be made at the time of
closing of the Financing (the "Redemption  Notice").  In this regard the Company
will require wire transfer  instructions  from the Buyer.  Notices of conversion
made by the  Buyer  pursuant  to the  Certificate  of  Designation  ("Conversion
Notices")  will be deemed timely given to the Company if received by the Company
at least one hour prior to the closing of the  Financing.  The Company will have
the right to rescind the Redemption Notice, without penalty or

                                       44

<PAGE>

Shimon Rosenfeld, Esq.
September 21, 2000
Page 2

premium,  by notifying the Buyer or you by facsimile by not later than 4:30 p.m.
on the next  Business  Day after giving the  Redemption  Notice in the event the
Financing  does not close for any  reason;  whereupon,  the Buyer shall have the
option to  rescind  any or all of the  Conversion  Notices  by giving  facsimile
notice to the  Company  within 24 hours  after the  receipt  by the Buyer of the
Company's recision of the Redemption Notice.

       3.  Confirmation  that the  filing by the  Company  of a  certificate  of
designations  in Delaware  relating  to the  Financing  and the  issuance of the
securities in the Financing will not trigger any anti-dilution  adjustment under
the Series A Preferred  Stock and will not contravene any other provision of the
Documents, including the provision of Article 8 paragraph (b) of the Certificate
of  Designation  regarding  the  creation of a series of capital  stock having a
preference over the Series A Preferred Stock.

       The   effectiveness  of  the  Buyer's   agreement  to  the  foregoing  is
conditioned  upon the wire  transfer  to the  Buyer  of  payment  in full of the
Optional Redemption Price and the Company giving irrevocable instructions to its
transfer  agent to issue to the Buyer the number of Common  Shares as equals all
accrued  and  unpaid  dividends  to the date of the  closing  of the  Financing,
simultaneously with the closing of the Financing,  it being understood that such
Common Shares shall be registered for resale in the Registration Statement.

       This  letter will  become  void if the  closing of the  Financing  is not
completed on or before October 5, 2000.

       Please  have the  Buyer  indicate  its  agreement  to give the  foregoing
waivers and  confirmation  by signing and returning a copy of this letter.  This
firm will rely upon the Buyer's agreement in rendering its opinion in connection
with the Financing.

                                                       Very truly yours,

                                                       /s/Dr. Arol I. Buntzman
                                                       -------------------------
                                                       Dr. Arol I. Buntzman
                                                       Chairman

AGREED:

THE SHAAR FUND LTD.

By: /s/Samuel Levinson
   ---------------------------
   Samuel Levinson
   Managing Director

                                       45

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