Document:

Exhibit 10.1

                           PURCHASE AND SALE AGREEMENT
                              (SUNRISE PRESCHOOLS)

     This PURCHASE AND SALE  AGREEMENT (the  "Agreement")  is entered into as of
the 11th day of May, 2001, by and between SUNRISE EDUCATIONAL SERVICES,  INC., a
Delaware  corporation,  in its corporate  capacity and in its capacity as debtor
and  debtor-in-possession  in its Chapter 11 case  pending in the United  States
Bankruptcy Court for the District of Arizona ("Seller"), and BORG HOLDINGS, INC.
("Buyer").

                                    RECITALS

     A. Seller operates those certain private preschools ("Preschools") commonly
referred  to as the  "Sunrise  Preschools"  as set forth on  SCHEDULE A attached
hereto and incorporated herein by reference.

     B. On October 6, 2000,  Seller  filed a voluntary  petition  for Chapter 11
relief under Title 11 of the United States Code  ("Bankruptcy  Code"),  which is
pending  before the United States  Bankruptcy  Court for the District of Arizona
(the "Court").

     C. Seller desires,  subject to the approval of the Court, to sell and Buyer
desires to purchase certain assets as defined below and set forth in Article 2.1
of this  Agreement and assume certain  liabilities of Seller in connection  with
Seller's  operations of the  Preschools on the terms and conditions set forth in
this Agreement and in accordance with Bankruptcy Code ss.ss. 363 and 365.

     D. Seller further desires, subject to the approval of the Court, to assign,
and Buyer desires to assume,  the management  agreement Seller has in connection
with  Seller's  operations  of  the  Preschool  set  forth  on  SCHEDULE  D (the
"Preschool  Operation")  on the terms and conditions set forth in this Agreement
and in accordance with the Bankruptcy Code ss. 365.

     E. In addition, Buyer and Seller further desire, subject to the approval of
the Court, to enter into such other agreements that effectuate the assignment of
the Leases and other contracts by Seller for the Preschools'  sites of operation
and the assumption of those Leases by Buyer, as fully set forth below.

     F. Buyer and Seller further  desire,  subject to the approval of the Court,
to enter into such other agreements and arrangements that effectuate the orderly
transition of the Preschools from Seller to Buyer.

     G. Buyer has completed its due  diligence of the  Preschools  and all other
matters addressed in this Agreement.

     H. The parties  hereto  acknowledge  that (i) they  intend the  transaction
contemplated  under this Agreement to be an asset purchase,  including  Seller's
rights to the name "Sunrise Preschools" or "Sunrise Educational Services, Inc.,"
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and not a sale of the stock of Seller; and (ii) Buyer is not buying the Business
of Seller as defined in this Agreement.

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto agree as follows:

                                    Article I

                                   DEFINITIONS

     For purposes of this Agreement,  the following capitalized terms, when used
in this Agreement, shall have the meanings assigned to them as follows:

     I.1 ACCOUNTS  RECEIVABLE.  The term  "Accounts  Receivable"  shall mean all
amounts owing to Seller for services rendered as part of its Business.

     I.2 AFFILIATE.  The term "Affiliate" shall mean any person that directly or
indirectly, through one or more intermediaries, controls or is controlled by, or
is under common control with BORG HOLDINGS, INC., an Arizona corporation.

     I.3  ASSUMED  CONTRACTS.  The term  "Assumed  Contracts"  shall  mean those
unexpired  leases  and  other  executory   contracts  which  Buyer  will  assume
hereunder,  which are  specifically  set forth on SCHEDULE 1.3 attached  hereto.
Buyer assumes no liability for any contracts not expressly assumed by Buyer.

     I.4 BUSINESS.  The term "Business" shall mean Seller's operations conducted
under  the  name  "Sunrise,"  "Sunrise   Preschools,"  or  "Sunrise  Educational
Services, Inc.," at the Preschools and at any other location within the State of
Arizona.

     I.5 CLAIM.  The term "Claim" shall be given the same meaning as provided to
such term under Bankruptcy Codess. 101 (5).

     I.6 CLOSING.  The term "Closing" shall mean the completed  exchange of: (i)
Closing  documents  set forth in Articles  XIV and XV below,  together  with the
simultaneous  conveyance by Seller to Buyer of the Purchased  Assets, as defined
in Article II, following  approval by the Bankruptcy  Court; (ii) the payment by
Buyer to Seller of the Purchase Price due under the terms of this Agreement; and
(iii) the assumption by Buyer of the obligations  which it has expressly  agreed
to assume hereunder, following entry of the Section 365 Order.

     I.7 CLOSING DATE.  The term "Closing Date" shall mean the date on which the
Closing  occurs  which  shall not be later than ten (10) days after (i) entry of
Sale Orders, or (ii) upon Buyer obtaining Buyer's Licenses,  whichever is later.
The Court order  approving  the Sale Motions  shall be entered by June 22, 2001,
unless  such date is  extended  as  mutually  agreed in writing  by the  parties
hereto.

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     I.8 EQUIPMENT.  The term  "Equipment"  shall mean all furniture,  fixtures,
office equipment,  computers,  printers,  all of Seller's rights to any building
improvements,  motor vehicles,  vans, and other tangible personal property owned
by Seller as specifically set forth on SCHEDULE 1.8 attached hereto.

     I.9 LEASES.  The term "Leases"  shall mean those  certain  Leases listed on
SCHEDULE  1.9  in  which  Seller  leases  the  real  property  for  each  of the
Preschools.  When the term "Lease" is used, it shall refer to a particular lease
of the real property for a particular Preschool.

     I.10 PRESCHOOL OPERATION. The term "Preschool Operation" shall refer to the
Preschool  site where  Preschool  services  are  provided  under the  management
agreement dated April 26, 1996 between Seller and Swift Trucking.

     I.11 PRESCHOOLS.  The term "Preschools" shall have the meaning set forth in
Recital A above.  When used singularly,  the term "Preschool" shall refer to one
of the applicable Preschools listed on SCHEDULE A.

     I.12  REAL  PROPERTY.  The term  "Real  Property"  shall  refer to the real
property  upon which each of the  Preschools  are  located as listed in SCHEDULE
1.12.

     I.13 SECTION 363 ORDER.  The term  "Section 363 Order" shall mean the order
entered by the Court pursuant to Bankruptcy Code ss.363 approving  Seller's sale
of the  Purchased  Assets (as  defined  in Section  2.1 below) to Buyer free and
clear of any and all liens,  security  interests,  and adverse  interests of any
kind, the form of which shall be agreed to by the parties hereto.

     I.14 SECTION 365 ORDER.  The term  "Section 365 Order" shall mean the Order
entered by the Court pursuant to Bankruptcy Code ss. 365(a)  approving  Seller's
decision to: (i) assume each Lease, as modified, as it relates to the applicable
Real Property  listed on SCHEDULE 1.12;  and (ii) assume the Assumed  Contracts,
the form of which shall be agreed to by the parties hereto.

     I.15 SALE  ORDERS.  The term  "Sale  Orders"  shall  collectively  mean the
Section 363 and Section 365 Orders.

     I.16 SIERRA VISTA  PRESCHOOL.  The term "Sierra Vista Preschool" shall mean
the preschool listed on SCHEDULE 1.16.

     I.17  SOFTWARE.  The  term  "Software"  shall  mean  all  software  used in
connection  with the Preschools  and licenses to use such software  specifically
set forth on SCHEDULE 1.17 attached hereto.

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                                   Article II

                                PURCHASE AND SALE

     II.1  ASSETS  TO BE SOLD.  Subject  to the  terms  and  conditions  of this
Agreement,  on the Closing  Date,  Seller agrees to sell,  assign,  transfer and
convey the following assets to Buyer (collectively, the "Purchased Assets"):

     II.1.1 EQUIPMENT AND THE ASSUMED  CONTRACTS.  The Equipment and the Assumed
Contracts. Buyer shall be responsible for all costs associated with the transfer
of titles to Buyer for the vehicles listed as Equipment,  and Buyer,  within ten
(10)  business  days after  Closing,  shall  provide to Seller  evidence of such
transfers.

     II.1.2 OTHER PERSONAL PROPERTY.  In addition to the Equipment,  any and all
other  tangible  personal  property  utilized by Seller in  connection  with the
Business  conducted at the Preschools and located those  facilities,  including,
but  not  limited  to,  supplies-on-hand,  and  all  marketing  and  promotional
materials.

     II.1.3 RECORDS, FILES AND RELATED MATERIALS.  Copies of all records, files,
invoices,  student lists, employee files, accounting records,  business records,
operating information and other data of Seller relating to the Preschools.

     II.1.4 GOODWILL. All of Seller's goodwill that relates to the Preschools.

     II.1.5  INTELLECTUAL   PROPERTY.   Assignment  to  Buyer  of  Seller's  (i)
trademarks,  service  marks,  and trade  names  listed  on  SCHEDULE  2.1;  (ii)
curriculum materials,  procedure manuals,  client contracts,  operational forms,
procedure and marketing  materials,  and policy manuals;  and (iii) right to use
the name "Sunrise  Preschools" and/or "Sunrise  Educational  Services,  Inc." as
provided by such  trademarks,  service  marks and trade names listed in SCHEDULE
2.1.  Buyer  will  permit  Seller  to use the  trade  name in  corporate  and/or
bankruptcy matters up until substantial  consummation of the debtor's Chapter 11
Plan.

     II.1.6  SOFTWARE.  Rights to use Software,  provided that Buyer obtains all
necessary consents to assignment from the respective software manufacturers.

     II.2 EXCLUDED ASSETS.  Notwithstanding  SECTION 2.1 above, Seller shall not
sell, transfer,  assign,  convey or deliver to Buyer, any asset not specifically
addressed  in SECTION  2.1 above,  including  but not  limited to the  following
assets (collectively the "Excluded Assets"):

     II.2.1  CONSIDERATION.  The  consideration  delivered  by Buyer  to  Seller
pursuant to this Agreement.

     II.2.2 INTELLECTUAL  PROPERTY.  Buyer shall not obtain rights to the use of
(i) the trade name or service mark "Tesseract" or (ii) any intellectual property
of the Seller specifically listed in SCHEDULE 2.2.2 herein.

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     II.2.3  INSURANCE   POLICIES.   Seller's   insurance  policies  and  rights
thereunder,  including,  but not limited to,  general  liability,  vehicular and
workers' compensation insurance held by Seller.

     II.2.4 CORPORATE  FRANCHISE.  Seller's  franchise to be a corporation,  its
certificate of  incorporation,  corporate  seal,  stock books,  minute books and
other corporate records having exclusively to do with the corporate organization
and capitalization of Seller, and Seller's use of the name "Sunrise  Educational
Services,  Inc."  or  "Sunrise"  or any  variation  of  such  name as it is used
exclusively by Seller for corporate matters related to its bankruptcy case until
substantial consummation of Debtor's Plan of Reorganization.

     II.2.5  PHYSICAL ASSETS AND REAL PROPERTY OF THE PRESCHOOL  OPERATION.  All
physical assets, personal property, right or title in that real property located
at the  Preschool  listed  in  SCHEDULE  1.16  and  known as the  "Sierra  Vista
Preschool."

     II.2.6  PRESCHOOL  LICENSE.  Seller's  license(s)  issued  by  the  Arizona
Department of Health Services ("ADHS") to operate the Preschools.

     II.2.7 CASH AND ACCOUNTS RECEIVABLE.  Seller's cash and Accounts Receivable
accrued prior to Closing, including, but not limited to, the Government Payments
referred to in SECTION 7.3.

                                   Article III

                            ASSUMPTION OF LIABILITIES

     III.1 ASSUMED  LIABILITIES.  At Closing,  Buyer shall not assume any of the
Seller's  liabilities  other  than the  Assumed  Contracts  and all  liabilities
directly  arising  under the  Assumed  Contracts  and Leases  from and after the
Closing (the "Assumed Liabilities"). No other liabilities incurred by the Seller
prior to  Closing  shall be  assumed  by the  Buyer.  Notwithstanding  the above
sentence,  the Buyer shall only be  obligated to pay,  perform,  or discharge in
accordance with their terms the assumed obligations  hereunder that first become
performable  on or after the Closing  Date.  Buyer  shall  fully and  faithfully
perform all duties and obligations,  due or owing after Closing,  of Seller with
respect to the Assumed Liabilities.

     III.2 NO ASSUMPTION OF OTHER LIABILITIES.  Except as expressly set forth in
this Agreement,  Buyer does not by this Agreement, and will not be obligated to,
assume  any  obligation,  liability  or  duty  of  Seller  whether  incurred  in
connection with the Purchased Assets or otherwise.

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                                   Article IV

                                TERMS OF PAYMENT

     IV.1  PAYMENT DUE AT CLOSING.  At  Closing,  Buyer shall pay to Seller,  in
immediately  available U.S.  funds, an amount equal to Two Million Eight Hundred
Thousand and No/100 Dollars  ($2,800,000,00.00)  (the "Purchase Price") less (i)
the  amount of the  Deposit  delivered  by Buyer to Seller  in  accordance  with
SECTION 4.2 below.

     IV.2 DEPOSIT.  Buyer  delivered  and Seller  accepted a cash Deposit in the
amount of $100,000.00  (the "Deposit") in connection with the executed Letter of
Intent,  which shall not be  refundable to Buyer  unless:  (i) the  transactions
contemplated in this Agreement do not close due to Seller's  failure to meet all
of the conditions precedent as set forth in Article XII of this Agreement;  (ii)
if Seller  otherwise  refuses  to close the  transactions  contemplated  in this
Agreement; (iii) if the Court does not approve a sale of the Purchased Assets to
Buyer on or before June 22, 2001; or (iv) if the transaction  does not close for
reasons of Force Majeure as provided in Section  17.27.  If the Closing does not
occur  on or  before  the  Closing  Date  due  to  any  event  described  in the
immediately preceding (i) or (ii), and Buyer and Seller have not mutually agreed
in writing to extend the Closing Date,  then Seller shall  immediately  transfer
the Deposit to Buyer.

                                    Article V

              REPRESENTATIONS, WARRANTIES, AND COVENANTS OF SELLER

     Seller hereby represents,  warrants, and covenants to Buyer as follows, and
the  warranties,  representations,  and  covenants  contained in this Article or
elsewhere in this Agreement shall be deemed to be made as of the Closing:

     V.1 CORPORATE  STATUS.  Seller is a  corporation  duly  organized,  validly
existing  and in good  standing  under the laws of the State of Delaware  and is
qualified to do business in the State of Arizona.

     V.2 CORPORATE AUTHORITY.  Subject only to approval of the Court, Seller has
full power and authority to execute and perform this Agreement and all corporate
action  necessary to confirm such  authority  has been duly and lawfully  taken.
Upon  execution  hereof,  this  Agreement  shall  be a  valid,  legally  binding
obligation of Seller,  enforceable in accordance  with its terms subject only to
approval by the Court.

     V.3 TITLE TO PURCHASED ASSETS.  Seller has good and marketable title to the
Purchased  Assets,  and has full power and  authority to transfer  such title to
Buyer subject only to approval by the Court.

     V.4 ASSUMED CONTRACTS. The Assumed Contracts are valid, binding and in full
force and effect;  and there  exists no default or event that with the giving of
notice,  the passage of time or both, would constitute a default thereunder that
remains uncured as of the Closing Date.

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     V.5 FINANCIAL  STATEMENTS.  Except that Seller's  Financial  Statements (as
defined  below) do not comply  with  generally  accepted  accounting  principles
consistently  applied ("GAAP"),  Seller's financial  statements,  for the period
January  1  through  March 31,  2001,  accurately  and  truthfully  reflect  the
financial performance and condition of the Seller.

                                   Article VI

               REPRESENTATIONS, WARRANTIES, AND COVENANTS OF BUYER

     Buyer  hereby  represents  and  warrants  to  Seller  as  follows  and  the
warranties  and  representations  contained in this Article or elsewhere in this
Agreement shall be deemed to be made as of Closing:

     VI.1 ORGANIZATION.  Buyer is a corporation duly organized, validly existing
and in good standing under the laws of the State of Arizona.

     VI.2  AUTHORITY.  Buyer has full power and authority to execute and perform
this Agreement and all action  necessary to confirm such authority has been duly
and lawfully  taken.  Upon execution  hereof,  this shall be a valid and legally
binding  obligation of Buyer,  enforceable  against Buyer in accordance with its
terms subject only to approval by the Court.

     VI.3 CONDITION OF ASSETS.  Buyer has fully examined the physical  condition
of the  Purchased  Assets,  and hereby  agrees to accept such property AS IS AND
WHERE  IS. NO  REPRESENTATION  OR  WARRANTY  OF ANY KIND,  EXPRESS  OR  IMPLIED,
INCLUDING ANY IMPLIED  WARRANTY OF  MERCHANTABILITY  OR FITNESS FOR A PARTICULAR
PURPOSE, IS MADE WITH RESPECT TO THE PURCHASED ASSETS.

                                   Article VII

                                 OTHER COVENANTS

     VII.1 PRESCHOOLS.  Buyer shall diligently  pursue a license  (collectively,
"Buyer's  Licenses") from the Arizona  Department of Health Services ("ADHS") to
operate each of the Preschools  (the "Preschool  Licenser"),  and Buyer shall be
responsible  for  reimbursing  Seller  for all hard  costs and  expenses  Seller
incurred to assist Buyer in connection therewith, including, but not limited to,
any and all facility-related  expenses required by ADHS ("Preschool  Expenses"),
not to  exceed  Fifteen  Thousand  Dollars  ($15,000.00).  Buyer  shall  only be
responsible for such Preschool  Expenses if Buyer receives Buyer's Licenses.  In
entering this  Agreement,  Buyer warrants that there are no material  violations
and it currently has licenses in good standing with the ADHS.

     VII.2 GOVERNMENT PAYMENTS AND ACCOUNTS  RECEIVABLE.  As of the date hereof,
Seller  estimates that Seller has  approximately  $225,000.00 in revenues due on
behalf of  students  at the  Preschools  which  has been  billed to the State of
Arizona,  but  is  as of  yet  uncollected,  by  Seller  for  April,  2001  (the
"Government Payments").  For informational purposes only, see SCHEDULE 7.2 for a

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breakdown of the Accounts  Receivable owed to Seller.  Buyer agrees that any and
all Accounts  Receivable  listed in SCHEDULE 7.2 (as this schedule is updated at
Closing),  including,  but not limited to,  Government  Payments,  for  services
rendered by Seller  prior to the Closing Date will be  immediately  forwarded to
Seller upon Buyer's receipt.  Buyer also agrees that, after the Closing,  Seller
shall have the right to audit Buyer's records to determine that all such amounts
are  forwarded  to Seller.  If Seller  receives  any  accounts  receivables  for
services  rendered  by Buyer  following  the  Closing  Date,  Seller  agrees  to
immediately forward all such receivables to Buyer.

     VII.3 LEASES.  Seller is in the process of negotiating rent reductions with
the landlords of the Leases,  and Seller shall  continue to negotiate  such rent
reductions  and  extensions  of lease  terms with the input and  cooperation  of
Buyer. Seller, with Buyer's assistance,  shall enter into written  modifications
with each of the landlords of the Leases to reduce the aggregate monthly rent on
all Leases by a dollar  amount  that is not less than ten  percent  (10%) of the
current base monthly rent due under such Leases; provided,  however, that Seller
shall have the  option to pay Buyer cash at Closing in the amount of  $50,000.00
in lieu of obtaining base rent  reductions  with respect to any three (3) of the
Leases for purposes of calculating the ten percent (10%) rent reduction.

     VII.4  SELLER  COOPERATION.  Seller  agrees  that it will  make  reasonable
efforts to have its senior  employees who have knowledge of the operation of the
Preschools  available to discuss such operations with the Buyer until sixty (60)
days after  Closing.  In addition,  Seller will  cooperate with Buyer in Buyer's
application for Buyer's  Licenses subject to Buyer's  reimbursement  obligations
set forth herein. The Closing is expressly subject to licensing approval for all
of the Preschools by the ADHS to allow the Buyer to operate the  Preschools.  If
Buyer does not obtain  Buyer's  Licenses due to Buyer's  failure to qualify as a
licensee  prior to July 30, 2001 (unless such date is extended by mutual written
consent),  the Buyer will be  entitled  to an  immediate  return of the  Deposit
referred to in SECTION 4.2 LESS Seller's  actual costs and  expenses,  including
attorneys'  fees,  related  to this  contemplated  transaction  with Buyer in an
amount not to exceed Forty Thousand and No/100 Dollars ($40,000.00).

                                  Article VIII

                                    EMPLOYEES

     VIII.1  DEFINITION.  Seller has provided  Buyer with a complete list of all
persons regularly employed on either a part-time or full-time basis by Seller in
connection with each of the Preschools.

     VIII.2  EMPLOYMENT  OF SELLER'S  EMPLOYEES AT THE  PRESCHOOLS.  At Closing,
Seller will  terminate all employees of Sunrise  Educational  Services,  Inc. At
Closing,  Buyer agrees to employ all of Seller's employees currently enrolled at
the Preschools at a similar wage;  however,  this section in no respect consists
of a contract  or an  agreement  between  Buyer and any party that gives rise to
rights of third  parties.  Buyer will no longer  employ those  employees who are
unable  to work  and are  receiving  workers'  compensation  at the  time of the
Closing.

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     VIII.3 EMPLOYEE SOLICITATIONS. Buyer shall be entitled to reasonable access
to all employees  related to the Preschools for purposes of  interviewing  these
individuals.

     VIII.4 WORKERS'  COMPENSATION.  Seller agrees to assume all  responsibility
for liability  arising from  workers'  compensation  claims,  which arise out of
incidents occurring prior to Closing.  Buyer shall be responsible for all claims
which  arise out of, or are based upon,  incidents  which  occur  subsequent  to
Closing. To the extent of the actual knowledge,  without investigation,  of Mike
Lynch,  in his  capacity  as CEO of Seller,  Seller  currently  has no  workers'
compensation claims pending in the State courts.

                                   Article IX

                                   INDEMNITIES

     IX.1 SELLER.  Seller  agrees to hold  harmless,  indemnify and defend Buyer
from  and  against  any  and all  loss,  claim,  damage,  liability  or  expense
(including,  but not limited to,  reasonable  attorneys' fees and costs) arising
out of or  occurring  as  the  result  of any  breach  by  Seller  of any of its
covenants,  representations or warranties hereunder.  Such indemnification shall
include any claims  pertaining to events or actions  occurring prior to the date
of Closing, and shall not exceed Fifty Thousand Dollars ($50,000.00).

     IX.2 BUYER. Buyer agrees to hold harmless, indemnify and defend Seller from
and against any and all loss, claim,  damage,  liability or expense  (including,
but not  limited to,  reasonable  attorneys'  fees and costs)  arising out of or
occurring  in  connection  with any  breach  by  Buyer of any of its  covenants,
representations  or  warranties  hereunder,  or any  liability of Buyer,  not to
exceed Fifty Thousand Dollars  ($50,000.00).  Such indemnification shall include
any claims pertaining to events or actions occurring after the date of Closing.

                                    Article X

                                     CLOSING

     X.1 CLOSING.  Closing  shall occur at the law offices of Bryan Cave LLP, in
Phoenix,  Arizona. If the Court enters the Sale Orders by June 22, 2001, and the
Closing  does not occur due to any event  described  in SECTION  4.2(I) OR (II),
then this  Agreement  may be  terminated  by Buyer or Seller,  and Buyer  shall,
subject to the approval of the Court, be entitled to reimbursement of its actual
costs and expenses,  including  attorneys'  fees,  related to this  contemplated
transaction  with Seller in an amount not to exceed  Forty  Thousand  and No/100
Dollars ($40,000.00).

     X.2 TIME IS OF THE ESSENCE.  Time is of the essence for the Closing of this
transaction  and if such  Closing  does not occur as  provided  in SECTION  10.1
above, a new Closing Date may be set if, and only if,  mutually agreed upon in a
writing  signed  by both  parties.  If a new  Closing  Date is not so set,  then
neither Seller nor Buyer shall have any further obligation under this Agreement.

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                                   Article XI

                                   PRORATIONS

     The following costs and expenses shall be prorated as of the Closing Date:

     XI.1  Personal  property  taxes and any other  assessments  related  to the
Purchased Assets,  including, but not limited to, all accounts payable of Seller
for services as of the Closing Date;

     XI.2 Charges for utilities  servicing the  Preschools,  including,  without
limitation,  charges or gas,  electricity,  water, sewer, cable television,  and
telephone services; and

     XI.3 Any other reasonable expenses approved in writing by Buyer and prepaid
by Seller related to the operation of the Preschools.

     The amount of any prorations shall be computed by Buyer with the assistance
of Seller.  At Closing,  Buyer shall pay to Seller or Seller shall pay to Buyer,
as the ease may be, an amount equal to the net proration so determined.

                                   Article XII

                  CONDITIONS PRECEDENT TO BUYER'S DUTY TO CLOSE

     Buyer shall have no duty to close, and no obligation hereunder,  unless and
until each and every one of the following  conditions  precedent have been fully
and completely satisfied:

     XII.1  CONTINUED  TRUTH  OF  WARRANTIES.  All  of the  representations  and
warranties of Seller  contained  herein shall continue to be true and correct at
Closing.

     XII.2  PERFORMANCE  OF  OBLIGATIONS.  Seller shall have fully  performed or
tendered performance of each and every one of its obligations hereunder which by
its terms is capable of performance on or before Closing.

     XII.3 DELIVERY OF CLOSING DOCUMENTS. Seller shall have tendered delivery to
Buyer of all the documents,  in form and substance  reasonably  satisfactory  to
Buyer, required to be delivered to Buyer by Seller on or before Closing pursuant
to this Agreement.

     XII.4  LITIGATION.  With the  exception of the pending  Chapter 11 case, no
lawsuit,  administrative proceedings or other legal action shall have been filed
against  Seller as of the Closing Date which seeks to restrain or enjoin Buyer's
acquisition of the Purchased Assets, or the assumption of the Assumed Contracts.

     XII.5 COURT ORDERS. The Court shall issue the Sale Orders on or before June
22, 2001 (the "Sale Orders") that (a) approve a sale of the purchased  assets to
Buyer pursuant to Section 363 and Section 365 of the Bankruptcy  Code,  free and
clear of liens,  claims and interests  (except to the extent securing an assumed
liability),  (b) contain findings of fact and provide that Buyer is a good faith

                                       10
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purchaser  entitled to the protections of Section 363(m) of the Bankruptcy Code,
(c)  authorize the  assumption by Seller and  assignment to Buyer of all assumed
real property leases (as modified) and assumed contracts in connection with this
Agreement,  (d) approve the repayment of the  reimbursement  right referenced in
this Agreement, and (e) are otherwise reasonably acceptable to Buyer and Seller.

     XII.6 LICENSURE. Buyer has obtained Buyer's Licenses.

     XII.7 SELLER'S ORDINARY COURSE OF BUSINESS. Seller has continued to operate
its Business  during the period  between the date hereof and the Closing Date in
the ordinary course under the  circumstances  (with reference to Seller's filing
for Chapter 11 relief with the Court) and in compliance with all applicable laws
and  regulations.  Seller  shall  use all  commercially  reasonable  efforts  to
maintain the Business such that the Business does not  experience any materially
adverse change.

                                  Article XIII

                 CONDITIONS PRECEDENT TO SELLER'S DUTY TO CLOSE

     Seller shall have no duty to close this  transaction  unless and until each
and  every  one of the  following  conditions  precedent  have  been  fully  and
completely satisfied:

     XIII.1  CONTINUED  TRUTH  OF  WARRANTIES.  All of the  representations  and
warranties of Buyer  contained  herein shall  continue to be true and correct at
Closing.

     XIII.2  PERFORMANCE  OBLIGATIONS.  Buyer  shall  have  fully  performed  or
tendered performance of each and every one of its obligations hereunder which by
its terms is capable of performance on or before Closing.

     XIII.3 DELIVERY OF CLOSING DOCUMENTS. Buyer shall have tendered delivery to
Seller of all the documents,  in form and substance  reasonably  satisfactory to
Seller,  required  to be  delivered  to  Seller  by Buyer on or  before  Closing
pursuant to this Agreement.

     XIII.4  LITIGATION.  With the exception of the pending  Chapter 11 case, no
lawsuit, administrative proceedings, or other legal action shall have been filed
against  Seller as of the Closing Date which seeks to restrain or enjoin Buyer's
acquisition of the Purchased Assets or the assumption of the Assumed Contracts.

     XIII.5  COURT  ORDERS.  The Court  shall issue the Sale Orders on or before
June 22,  2001 (the  "Sale  Orders")  that (a)  approve a sale of the  purchased
assets to Buyer pursuant to Section 363 and Section 365 of the Bankruptcy  Code,
free and clear of liens,  claims and interests (except to the extent securing an
assumed  liability),  (b) contain  findings of fact and provide  that Buyer is a
good faith  purchaser  entitled  to the  protections  of  Section  363(m) of the
Bankruptcy  Code, (c) authorize the assumption by Seller and assignment to Buyer
of all assumed real property  leases and assumed  contracts in  connection  with
this Agreement,  (d) approve the repayment of the reimbursement right referenced

                                       11
<PAGE>
in this  Agreement,  and (e) are  otherwise  reasonably  acceptable to Buyer and
Seller.

     XIII.6 APPROVAL. Buyer has obtained the consent to assignment of the Leases
(as modified) to Buyer from the landlords for the respective Leases.

                                   Article XIV

                                   TERMINATION

     XIV.1  TERMINATION  RIGHTS.  This Purchase  Agreement and the  transactions
contemplated  hereby maybe terminated at any time prior to the Closing Date with
written notice thereof (a "Termination Notice") by any of the following:  (a) by
written mutual written  consent of Seller and Buyer at any time; or (b) by Buyer
or Seller alone in writing, if any of the conditions set forth in Article XII or
Article XIII have not been or are not capable of being  satisfied by the Closing
Date.

                                   Article XV

                   ITEMS TO BE DELIVERED AT CLOSING BY SELLER

     At Closing,  Seller shall,  unless waived in writing by Buyer,  deliver the
following items, each in form and substance  reasonably  acceptable to Buyer and
Buyer's counsel, to Buyer:

     XV.1  BILL OF  SALE.  A duly  executed  bill of  sale  selling,  assigning,
transferring, and conveying the Purchased Assets.

     XV.2  CERTIFIED  RESOLUTION.  A copy  of the  resolution  of the  Board  of
Directors of Seller authorizing the execution and performance of this Agreement.

     XV.3 REPRESENTATIONS AND WARRANTIES. A certificate signed by an appropriate
representative  of  Seller  to the  effect  that  all  the  representations  and
warranties of Seller contained herein are true and correct as of Closing.

     XV.4 OTHER  CLOSING  DOCUMENTS.  A duly  executed  assignment  of  Seller's
intellectual property pursuant to this Agreement, and a duly executed assignment
of each Lease.

                                   Article XVI

                    ITEMS TO BE DELIVERED AT CLOSING BY BUYER

     At Closing,  Buyer shall,  unless waived in writing by Seller,  deliver the
following items, each in form and substance reasonably  acceptable to Seller and
Seller's counsel, to Seller:

                                       12
<PAGE>
     XVI.1  CERTIFIED  RESOLUTION.  A copy of the  resolutions  of the Executive
Director  of  Buyer  or  other  appropriate  representative(s)  author/zing  the
execution and performance of this Agreement.

     XVI.2   REPRESENTATIONS   AND  WARRANTIES.   A  certificate  signed  by  an
appropriate  representative of Buyer to the effect that all the  representations
and warranties of Buyer contained herein are true and correct as of Closing.

     XVI.3 THE PURCHASE PRICE. The Purchase Price.

     XVI.4 OTHER  CLOSING  DOCUMENTS.  A duly  executed  agreement  assuming the
Purchased  Assets,  including,  without  limitation,  each Lease and the Assumed
Contracts.

                                  Article XVII

                                  MISCELLANEOUS

     XVII.1 BUYER'S LIABILITY. Notwithstanding anything in this Agreement to the
contrary,  in no event  shall  Buyer be liable  for any  amount in excess of the
Deposit.

     XVII.2 RIGHT TO BID. Buyer  acknowledges and understands that the Court may
consider higher and better offers. If Buyer is outbid in Court and another buyer
buys the Purchased  Assets for at least Two Million Eight Hundred Forty Thousand
Dollars  ($2,840,000.00)  and,  therefore,  the Agreement is not approved by the
Court, Buyer shall be entitled to the reimbursement of its actual  out-of-pocket
expenses and costs incurred in this transaction,  including  attorneys' fees, in
an amount not to exceed Forty Thousand and No/100 Dollars  ($40,000.00) and will
be  entitled  to the return of the  Deposit  referred  to in  SECTION  4.2 to be
returned  within ten (10) days of the entry of the Bankruptcy  Court's Order not
approving this  Agreement.  In addition,  if a 363 Motion and 365 Motion are not
filed with the Court within ten (10) days from the execution of this  Agreement,
Buyer is entitled to the return of the Deposit referred to in SECTION 4.2. Buyer
shall provide adequate records, receipts and other documents to demonstrate such
reimbursable expenses.

     XVII.3  ACQUISITION  PROPOSALS.  Neither Seller nor any of their affiliates
nor any of their affiliates' respective directors,  officers,  employees, agents
or representatives shall solicit, or initiate either directly or indirectly, any
inquiries,  discussions or proposals for an acquisition proposal or engage in or
continue  any  discussions  with  any  party  that  has  made  or who  make  any
acquisition  proposal  until after a motion  requesting a hearing of the 363 and
365 Motions has been filed by Seller,  provided that,  Seller may respond to any
unsolicited  proposals  received from a third party  relating to an  acquisition
proposal  during such period.  By no later than three (3) business days prior to
the final  hearing on Court  approval of this  transaction,  Seller will provide
Buyer with all written  alternative  bids received by Buyer regarding any of the
assets  that are the subject of this  Agreement;  provided,  however,  that such
written  alternative  bids  will  be  redacted  so  that  the  identity  of such
alternative bidders will not be disclosed to Buyer.

                                       13
<PAGE>
     XVII.4  FURTHER  ASSURANCES.  Each party shall,  at any time after Closing,
execute  and  deliver  to the other  party all such  additional  instruments  of
conveyance and assignments,  certificates or similar documents and take all such
further actions as such other party may reasonably request.

     XVII.5  USE OF  INTELLECTUAL  PROPERTY  AND  OTHER  INFORMATION.  Except in
connection with Seller's completion of such administrative, ministerial or other
matters as may be required to effectuate an orderly  conclusion of winding up of
the  business  affairs of  Seller,  after the  Closing  Date,  Seller  shall not
communicate,  disclose, divulge, or use for their own benefit or for the benefit
of any other  person  or  entity,  or misuse in any way any of the  intellectual
property or other  proprietary or confidential  information of Buyer relating to
the business or the purchased assets except as consented to by Buyer in writing.

     XVII.6  NO  ADMISSIONS.  Nothing  in this  Agreement  shall be, or shall be
construed to be, an  admission  of liability by the parties  hereto to any other
person, party or entity.

     XVII.7 NO OTHER AGREEMENTS. This Agreement, and all agreements delivered as
part of the Closing contemplated herein, constitute the entire agreement between
the parties with respect to its subject  matter.  All prior and  contemporaneous
negotiations,  proposals and  agreements  between the parties are  superseded by
this  Agreement.  Any  changes  to this  Agreement  must be agreed to in writing
signed by both parties.

     XVII.8 TRANSITION COOPERATION. Buyer agrees to provide Seller with the list
of all of Seller's  employees that Buyer intends to hire, no later than five (5)
business  days after  execution  by both parties of this  Agreement.  Seller and
Buyer have agreed to cooperate in an orderly  transition of  administrative  and
clerical  services for sixty (60) days  following  the Closing (the  "Transition
Period"). Seller and Buyer will equally divide the salary cost of accounting and
information  services  personnel  during this period,  based upon the  allocable
portion of the salary and other  employee  costs of any  employees  who work for
both Buyer and Seller  during the  Transition  Period.  Buyer agrees that Seller
shall  have  an  account/information  technology  employee  of  Seller's  choice
available  for fifty  percent  (50%) of the  employee's  work schedule to assist
Seller.  Buyer shall  indemnify,  defend and hold harmless  Seller for, from and
against any and all claims,  causes of action,  costs,  expenses and liabilities
resulting from Buyer's  employment of any employee  pursuant to this  paragraph,
including,  without limitation,  disability claims, wrongful termination claims,
harassment claims,  discrimination claims, and claims relating to vacation, sick
leave, wages, salaries or other employee benefits, and any liability as a result
of actions by such employees.  Seller shall indemnify,  defend and hold harmless
Buyer  for,  from and  against  any and all  claims,  causes of  action,  costs,
expenses  and  liabilities  resulting  from Buyer's  employment  of any employee
pursuant to this paragraph,  including,  without limitation,  disability claims,
wrongful  termination  claims,  harassment  claims,  discrimination  claims, and
claims  relating to  vacation,  sick leave,  wages,  salaries or other  employee
benefits, and any liability as a result of actions by such employees.

     XVII.9  WAIVER.  Either party may waive the  performance  of any obligation
owed to it by the other party  hereunder for the  satisfaction  of any condition
precedent to the waiving party's duty to perform any of its covenants, including

                                       14
<PAGE>
its obligations to Close.  Any such waiver shall be valid only if contained in a
writing signed by the waiving party.

     XVII.10 PUBLIC ANNOUNCEMENTS.  Through the Closing, no public announcements
of this  Agreement  shall  have been made  unless  Buyer and  Seller  shall have
mutually agreed on the timing, distribution, and contents of such announcements,
except as may be required by law. The parties hereto  acknowledge and understand
that this  Agreement will be filed with the Court promptly upon its execution by
the parties hereto.

     XVII.11 NOTICES. Any notices required or allowed in this Agreement shall be
effectively given if placed in a sealed envelope, postage prepaid, and deposited
in the United States mail, registered or certified, addressed as follows:

     To Seller:  Mike Lynch, Chief Executive Officer
                 The TesseracT Group, Inc.
                 4515 East Muirwood Drive
                 Phoenix, Arizona 85048

     Copy To:    Susan E. Klemmer, Esq.
                 Bryan Cave LLP
                 Two North Central Avenue
                 Phoenix, Arizona 85004

     To Buyer:   BORG HOLDINGS, INC.
                 c/o Randall Gusikoski
                 Nine Montia
                 Irvine, California 92620

                 BORG HOLDINGS, INC.
                 c/o Robert Orsi
                 222 Via Arabella
                 San Dimas, California 91773

     Copy To:    Michael Reynolds, Esq.
                 Greenberg Traurig LLP
                 2375 East Camelback Road, Suite 700
                 Phoenix, Arizona 85016

     XVII.12  BROKER AND  FINDERS.  Each of the parties  hereto  represents  and
warrants to the other that it has not  employed or retained any broker or finder
in connection  with the  transactions  contemplated by this Agreement nor has it
had any  dealings  with any person  which may  entitle  such  person to a fee or
commission  from any party hereto.  Each of the parties shall indemnify and hold
the other harmless for, from and against any claim,  demand or damage whatsoever
by virtue of any arrangement or commitment made by it with or to any person that
may entitle  such person to any fee or  commission  from the other party to this
Agreement.

                                       15
<PAGE>
     XVII.13  RISK OF LOSS.  The risk of loss,  damage,  or  destruction  of the
Purchased  Assets shall be borne by Seller until Closing.  In the event any loss
or damage to or taking of any such  Purchased  Assets is material in the context
of this transaction and occurs before Closing,  Seller shall immediately  notify
Buyer of the nature and extent of such loss, damage or taking,  and Buyer shall,
at its option,  by written  notice to Seller,  either  terminate  this Agreement
without  further  liability or obligation  to Seller,  or Buyer may proceed with
this transaction on the terms and conditions  mutually agreeable to the parties,
including any adjustment in the Purchase Price.

     XVII.14 THIRD-PARTY  BENEFICIARY.  Nothing contained herein shall create or
give rise to any third-party  beneficiary rights for any individual or entity as
a result of the terms and provisions of this Agreement.

     XVII.15 COURT  JURISDICTION.  Upon the execution  hereof,  the parties will
file this Agreement with the Court. Upon approval  thereof,  the Court will have
continuing  jurisdiction  to resolve any and all  disputes  that may arise under
this Agreement.

     XVII.16 RELATIONSHIP OF PARTIES. The relationship of Seller and Buyer shall
be that of  independent  entities and neither shall be deemed to be the agent of
the other.

     XVII.17 CHOICE OF LAW. This Agreement  shall be governed by and interpreted
in  accordance  with the laws of the State of Arizona  and, as  applicable,  the
Bankruptcy Code.

     XVII.18 PARAGRAPH  HEADINGS.  The Section,  Article and paragraph  headings
contained herein are for convenience only and shall have no substantive  bearing
on the interpretation of this Agreement.

     XVII.19  RULES OF  INTERPRETATION.  The following  rules of  interpretation
shall  apply to this  Agreement,  the  Schedules  hereto  and any  certificates,
reports or other  documents or instruments  made or delivered  pursuant to or in
connection with this Agreement,  unless otherwise  expressly  provided herein or
therein and unless the context hereof or thereof clearly requires otherwise:

     XVII.19.1 A reference  to any  document or  agreement  shall  include  such
document or agreement as amended,  modified or supplemented from time to time in
accordance with its terms, and if a term is said to have the meaning assigned to
such term in another document or agreement and the meaning of such terms therein
is amended, modified or supplemented, then the meaning of such term herein shall
be deemed automatically amended, modified or supplemented in a like manner.

     XVII.19.2  References to the plural include the singular,  the singular the
plural and the part the whole.

     XVII.19.3  The  words  "include,"   "includes,"  and  "including"  are  not
limiting.

     XVII.19.4 A reference to any law includes any amendment or  modification to
such law which is in effect on the relevant date.

                                       16
<PAGE>
     XVII.19.5  A reference  to any person or entity  includes  its  successors,
heirs and permitted assigns.

     XVII.19.6 The words "hereof,"  "herein,"  "hereunder," and similar terms in
this  Agreement  refer to this  Agreement  as a whole and not to any  particular
provision of this Agreement.

     XVII.19.7 All Schedules to this Agreement constitute material terms of this
Agreement and are incorporated fully into the terms of this Agreement.

     XVII.20 TIME IS OF THE ESSENCE.  Time is of the essence in the  performance
and observance of all obligations and duties under this Agreement.

     XVII.21 ATTORNEYS' FEES. Each party shall bear its own legal fees and costs
incurred in the negotiation and closing of this transaction, and in the event of
a dispute arising between the parties under this Agreement, the prevailing party
shall be  entitled  to  reasonable  attorneys'  fees and  costs of suit from the
non-prevailing party.

     XVII.22 COUNTERPARTS;  FACSIMILE SIGNATURES. This Agreement may be executed
in any number of  counterparts,  each of which shall be an original,  but all of
such  counterparts  shall together  constitute but one and the same  instrument.
Delivery of an executed  counterpart of this Agreement by telefacsimile shall be
equally as  effective  as delivery of a manually  executed  counterpart  of this
Agreement.  Any party  delivering an executed  counterpart  of this Agreement by
telefacsimile  also  shall  deliver  a  manually  executed  counterpart  of this
Agreement but the failure to deliver a manually  executed  counterpart shall not
affect the validity, enforceability, and binding effect of this Agreement.

     XVII.23 ASSIGNMENT.  This Agreement and the rights,  duties and obligations
hereunder  may not be  assigned  or  delegated  by any party  without  the prior
written consent of the other party or parties;  provided that Buyer may, without
the prior  consent of Seller,  collaterally  assign  this  Agreement  and/or its
rights  and  obligations  hereunder  (a) as  security  to any  lender  providing
financing  for  the  transactions   contemplated  hereby  (and  any  refinancing
thereof),  or (b) to an Affiliate of Buyer.  Subject to the foregoing  sentence,
any assignment of rights or delegation of duties or  obligations  hereunder made
without the written consent of the other party hereto shall be void and be of no
effect.

     XVII.24  SUCCESSORS AND ASSIGNS.  This Agreement and the provisions  hereof
shall be  binding  upon each of the  parties,  their  successors  and  permitted
assigns.

     XVII.25 SEVERABILITY. If any part of this Agreement for any reason shall be
declared illegal,  invalid or unenforceable,  such decision shall not affect the
validity of any remaining portion,  which shall remain in full force and effect,
provided,  however,  that to the extent a  substantially  material  provision is
altered by the Sale Orders, this Agreement is voidable by the adversely effected
party (whether Buyer or Seller). In addition,  in lieu of such provision,  there
shall  automatically be added as a part of this Agreement a provision similar in

                                       17
<PAGE>
terms to such illegal, invalid or unenforceable provisions so that the resulting
reformed Agreement is legal, valid and enforceable.

     XVII.26  RELEVANT  INFORMATION.  Buyer and Seller agree that the  financial
information  attached hereto as SCHEDULE 17.26 is relevant to this  transaction,
and should be considered by all parties.

     XVII.27 FORCE  MAJEURE.  Force Majeure shall mean the  occurrence of any of
the following  events which will excuse such  obligations of Seller and Buyer as
they are rendered  impossible  or reasonably  impracticable  for so long as such
event  continues  or for a period  equal to the  delay in the  critical  path of
completing  the  performance  of the  impaired  obligations  as the case may be:
delays caused directly or indirectly by strikes, lockouts, the unavailability of
labor or materials,  Acts of God, governmental  restrictions,  war insurrection,
rebellion, riot, civil disorder, fire, explosion, windstorm, hail, snow, extreme
weather conditions, rain, flood, damage from aircraft, vehicles, or smoke, or by
any  other   casualty  of  a   substantial   enough   nature  to  cause   delay.
Notwithstanding  the  foregoing,  the  financial  capacity  of  Buyer to pay the
Purchase  Price is not an event of Force Majeure,  and any casualty  relating to
the Purchased Assets shall be construed in accordance with SECTION 17.13 of this
Agreement.

     IN WITNESS  WHEREOF,  the parties hereto have set their hands effective the
date set forth above.

                                     SUNRISE EDUCATIONAL SERVICES, INC.,
                                     a Delaware corporation

                                     By /s/ Michael A. Lynch
                                       -----------------------------------------
                                     Name Michael A. Lynch
                                         ---------------------------------------
                                     Title CEO
                                          --------------------------------------

                                                                          SELLER

                                     BORG HOLDINGS, INC., an Arizona corporation

                                     By /s/ Robert Orsi
                                       -----------------------------------------
                                     Name Robert Orsi
                                         ---------------------------------------
                                     Title President
                                           -------------------------------------

                                                                           BUYER

                                       18
<PAGE>
                                LIST OF SCHEDULES

SCHEDULE A -     List of Preschools

SCHEDULE D -     Preschool Operation (the Preschool with the management
                 agreement)

SCHEDULE 1.3 -   List of Assumed Contracts

SCHEDULE 1.8 -   List of Equipment

SCHEDULE 1.9 -   List of Leases

SCHEDULE 1.12 -  List of Real Property where Preschools are located

SCHEDULE 1.16 -  Sierra Vista Preschool

SCHEDULE 1.17 -  List of Software

SCHEDULE 2.1 -   List of Seller's trademarks, service marks, and trade names

SCHEDULE 2.2.2 - Seller's Excluded intellectual property

SCHEDULE 7.2 -   Seller's Account Receivables (to be updated at Closing)

SCHEDULE 17.26 - Relevant Information

                                       19Exhibit 10.2

                 FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT
                              (SUNRISE PRESCHOOLS)

     This FIRST  AMENDMENT TO PURCHASE AND SALE AGREEMENT (the  "Amendment")  is
entered into as of the 5th day of June, 2001, by and between SUNRISE EDUCATIONAL
SERVICES,  INC., a Delaware  corporation,  in its corporate  capacity and in its
capacity as debtor and  debtor-in-possession  in its Chapter 11 case  pending in
the United States Bankruptcy Court for the District of Arizona  ("Seller"),  and
BORG  HOLDINGS,   INC.  an  Arizona  corporation  ("Buyer").   Unless  otherwise
specifically defined herein, capitalized terms used in this Amendment shall have
the meanings set forth in the Agreement (as defined below).

                                    RECITALS

     A. Seller and Buyer  executed the Purchase and Sale  Agreement  dated as of
May 11, 2001 (the  "Agreement"),  whereby Seller agreed to sell and Buyer agrees
to buy certain assets and assume certain liabilities in connection with Seller's
operations  of the  Preschools  on the  terms  and  conditions  set forth in the
Agreement in accordance with the Bankruptcy Code and as approved by the Court.

     B. Seller and Buyer  desire to amend the terms of the  Agreement to provide
Seller with a portion of the rental  space at School No. 113 to conduct  affairs
of Seller and/or The TesseracT Group, Inc.;

                                    AMENDMENT

     NOW,  THEREFORE,  in  consideration  of TEN AND NO/100 DOLLARS ($10.00) and
other valuable  consideration,  the receipt and  sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. LEASE.  Buyer agrees that,  following the Closing,  Buyer shall lease to
Seller,  and Seller shall lease from Buyer,  the space shown on EXHIBIT A in the
building  on the  premises  located  at  4111  E.  Ray  Road,  Phoenix,  Arizona
("Property"),  along with non-exclusive rights to the common areas which include
but are not limited to, parking spaces, ingress and egress from the parking lot,
and access to the  Property  through the  outside  door of the  Property,  for a
period of sixty  (60) days  beginning  at the on the  Closing  Date (the  "Lease
Term").  Buyer and Seller agree that the rental  amount for the Property  during
the Lease Term shall be $0.00.  Buyer agrees to  cooperate in all respects  with
Seller. Seller shall not be liable for any rent of any nature whatsoever for use
of the Property and Seller shall be able to remove any and all personal property
not included in the Purchased Assets (as defined in the Purchase Agreement).

     2. REIMBURSEMENT OF EQUIPMENT  INSTALLATION COSTS. At Closing, Buyer agrees
that it will  reimburse  Seller for  Seller's  costs and  expenses for phone and
speaker system  installation in the amount of EIGHTEEN THOUSAND  THIRTY-FIVE AND
38/100 DOLLARS ($18,035.38).
<PAGE>
     3. CHOICE OF LAW. This  Agreement  shall be governed by and  interpreted in
accordance  with the laws of the  State  of  Arizona  and,  as  applicable,  the
Bankruptcy Code.

     4.  PARAGRAPH  HEADINGS.  The  Section,   Article  and  paragraph  headings
contained herein are for convenience only and shall have no substantive  bearing
on the interpretation of this Agreement.

     5. RULES OF  INTERPRETATION.  The following rules of  interpretation  shall
apply to this Agreement,  the Schedules hereto and any certificates,  reports or
other  documents or instruments  made or delivered  pursuant to or in connection
with this Agreement,  unless otherwise  expressly provided herein or therein and
unless the context hereof or thereof clearly requires otherwise:

          5.1 A  reference  to any  document or  agreement  shall  include  such
document or agreement as amended,  modified or supplemented from time to time in
accordance with its terms, and if a term is said to have the meaning assigned to
such term in another document or agreement and the meaning of such terms therein
is amended, modified or supplemented, then the meaning of such term herein shall
be deemed automatically amended, modified or supplemented in a like manner.

          5.2  References to the plural  include the singular,  the singular the
plural and the part the whole.

          5.3 The words "include," "includes," and "including" are not limiting.

          5.4 A reference to any law includes any amendment or  modification  to
such law which is in effect on the relevant date.

          5.5 A reference to any person or entity includes its successors, heirs
and permitted assigns.

          5.6 The words "hereof,"  "herein,"  "hereunder,"  and similar terms in
this  Agreement  refer to this  Agreement  as a whole and not to any  particular
provision of this Agreement.

          5.7 All Schedules to this Agreement  constitute material terms of this
Agreement and are incorporated fully into the terms of this Agreement.

     6. TIME IS OF THE ESSENCE.  Time is of the essence in the  performance  and
observance of all obligations and duties under this Agreement.

     7.  ATTORNEYS'  FEES.  Each  party  shall bear its own legal fees and costs
incurred in the negotiation and closing of this  transaction.  In the event of a
dispute arising between the parties under this Agreement,  the prevailing  party
shall be  entitled  to  reasonable  attorneys'  fees and  costs of suit from the
non-prevailing party.

                                       2
<PAGE>
     8. COUNTERPARTS;  FACSIMILE  SIGNATURES.  This Agreement may be executed in
any number of counterparts,  each of which shall be an original, but all of such
counterparts shall together constitute but one and the same instrument. Delivery
of an executed  counterpart of this Agreement by telefacsimile  shall be equally
as effective as delivery of a manually  executed  counterpart of this Agreement.
Any party delivering an executed  counterpart of this Agreement by telefacsimile
also shall deliver a manually  executed  counterpart  of this  Agreement but the
failure  to  deliver  a  manually  executed  counterpart  shall not  affect  the
validity, enforceability, and binding effect of this Agreement.

     9.  ASSIGNMENT.  This  Agreement  and the  rights,  duties and  obligations
hereunder  may not be  assigned  or  delegated  by any party  without  the prior
written consent of the other party or parties;  provided that Buyer may, without
the prior  consent  of  Seller,  assign  this  Agreement  and/or  its rights and
obligations  hereunder (a) as security to any lender providing financing for the
transactions  contemplated  hereby (and any refinancing  thereof),  or (b) to an
Affiliate of Buyer. Subject to the foregoing sentence,  any assignment of rights
or  delegation  of duties or  obligations  hereunder  made  without  the written
consent of the other party hereto shall be void and be of no effect.

     10. SUCCESSORS AND ASSIGNS.  This Agreement and the provisions hereof shall
be binding upon each of the parties, their successors and permitted assigns.

     11.  SEVERABILITY.  If any part of this  Agreement  for any reason shall be
declared illegal,  invalid or unenforceable,  such decision shall not affect the
validity of any remaining portion,  which shall remain in full force and effect.
In addition, in lieu of such provision,  there shall automatically be added as a
part of this Agreement a provision similar in terms to such illegal,  invalid or
unenforceable provision so that the resulting reformed Agreement is legal, valid
and enforceable.

     12.  CONTINUED  EFFECTIVENESS.  Except as expressly  amended  hereby,  this
Agreement  shall  continue  in full  force and  effect.  Any  references  to the
"Agreement" in the Agreement or to the words hereof, shall mean the Agreement as
amended hereby.

                                       3
<PAGE>
     IN WITNESS  WHEREOF,  the parties hereto have set their hands effective the
date set forth above.

                                     SUNRISE EDUCATIONAL SERVICES, INC.,
                                     a Delaware corporation

                                     By /s/ Michael A. Lynch
                                       -----------------------------------------
                                     Name Michael A. Lynch
                                         ---------------------------------------
                                     Title CEO
                                          --------------------------------------

                                                                          SELLER

                                     BORG HOLDINGS, INC., an Arizona corporation

                                     By /s/ Robert Orsi
                                       -----------------------------------------
                                     Name Robert Orsi
                                         ---------------------------------------
                                     Title President
                                           -------------------------------------

                                                                           BUYER

                                       4

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