Document:

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                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT ("Agreement") is made as of this 21st day
of October, 1999, by and among Colonial Direct Financial Group, Inc., a Delaware
corporation, with offices at 1499 W. Palmetto Park Road, Suite 312, Boca Raton,
Florida 33486 ("Buyer"), Certified Tax Returns USA, Inc., a Florida corporation,
with offices at 2300 W. Sample Road, Suite 202, Pompano Beach, Florida 33073
(the "Company") and the Shareholders (the "Shareholder") (the Shareholders and
the Company are sometimes hereinafter collectively referred to as "Sellers").

         Background

         WHEREAS, Shareholders (as identified on the attached Shareholder
Schedule) are all of the stockholders of the Company, a Florida corporation,
which currently operates a tax return preparation and consulting business with
offices located at 2300 W. Sample Road, Suite 202, Pompano Beach, Florida 33073
(the "Office") and furnishes certain tax return preparation and consulting
services to the general public at the Office through professionals affiliated
with the Company;

         WHEREAS, Sellers wish to sell to Buyer all of Sellers' right, title,
and interest in and to all of the outstanding shares of capital stock of the
Company (the "Stock"), and Buyer wishes to buy all of Sellers' right, title, and
interest in and to the Stock subject to and upon the terms and conditions set
forth herein; and

        WHEREAS, Sellers and Buyer intend that the sale contemplated hereunder
will qualify as a tax free reorganization under Section 354 of the Internal
Revenue Code of 1986, as amended (the "Code");

        NOW THEREFORE, in reliance on the representations, warranties and
agreements described herein, and subject to the terms and conditions hereinafter
set forth, the parties hereby agree as follows:

         Terms

         1. Purchase of Stock, Business and Assets. At the Closing (as defined
in Section 1.3) and subject to the terms and conditions of this Agreement,
Sellers shall sell, transfer, assign, and deliver to Buyer, and Buyer shall
purchase and accept from Sellers, all of Sellers' right, title, and interest in
and to the Stock, Business and Assets of the Company. At the Closing, subject to
the terms and conditions specified in this Agreement, Sellers are selling to
Buyer and Buyer is purchasing from the Sellers, free and clear of all liens,
charges, security interests and other encumbrances and for the consideration set
forth below, the tangible and intangible assets and personal property owned by
the Sellers and used in connection with the conduct of the Business, wherever
located, including, but not limited to, the name "Certified Tax Returns USA"
(collectively, the "Acquired Assets"). Such Acquired Assets are more
particularly detailed on Section 2 of the attached Disclosure Schedule.

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         1.2. Delivery of Stock. At the Closing, Sellers shall deliver to Buyer
a certificate or certificates representing ownership of the Stock, duly endorsed
for transfer or with proper stock powers therefor, so that the Stock is
negotiable for delivery.

         1.3. Closing Date. Subject to satisfaction of all conditions set forth
herein, the closing (the "Closing") of the sale and purchase of the Stock
pursuant to the terms of this Agreement shall take place no event later than
September 30, 1999, at the law offices of Dreier & Baritz LLP, 150 E. Palmetto
Park Road, Suite 401, Boca Raton, FL 33432 (the "Closing Date").

         1.4. Release by Sellers. Effective on the Closing Date, Seller hereby
release the Company from any and all claims of Sellers, whether arising before
or after the Closing Date, or liabilities or obligations of the Company to
Sellers as a result of the Sellers having served as a stockholder, director,
officer, employee, or agent of the Company.

         2. Purchase Price. Payment by Buyer for the Stock shall be effected for
an aggregate purchase price of Six Hundred Thousand and No/00 Dollars ($600,000)
(the "Purchase Price"), such Purchase Price payable solely in the form of the
Common Stock of the Buyer, and payable as follows:

            a. 66,667 shares of Common Stock, representing such Six Hundred
         Thousand and No/00 Dollars ($600,000) of the Purchase Price, shall be
         delivered at the Closing.

         3. Deliveries of Buyer. At the Closing, Buyer shall: (i) cause to be
delivered 66,667 shares of its Common Stock, such Common Stock shall be duly
issued, fully paid for and non-assessable, in the amounts and in the names as
identified on the Shareholder Schedule; and (ii) together with Sellers, execute
and deliver such other documents as Buyer or Sellers may reasonably request.

         4. Deliveries of Seller. At the Closing, Sellers shall (i) deliver a
duly executed Stock Certificate(s); and (ii) together with Buyer, execute and
deliver such other documents as Buyer or Sellers may reasonably request.

         5. Reporting/Books and Records. Sellers has provided accurate books and
records of account and inventory control documents, containing all information
necessary to ascertain the revenue generated by the Business through December
31, 1998, and for the interim period of January 1, 1999 through July 31, 1999,
and will, at or prior to Closing Date, have provided to Buyer such updated books
and records up to and including the date of Closing Date.

         6. Representations and Warranties of Seller. Sellers represent, warrant
and agree that:

            a. Ownership of Business/Absence of Claims. The Shareholders are all
         of the shareholders of record and beneficial owners of the outstanding

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         Stock of the Company and such Stock is fully paid for and
         non-assessable and is free and clear of any and all liens, pledges,
         security interests, options, encumbrances, charges, agreements or
         claims of any kind whatsoever and any rights the Shareholders may have
         personally with respect to any aspect of this Agreement are or will be
         assigned to the Company at or prior to the Closing Date.

            b. Authority. Sellers, jointly and severally, have the full right,
         power and authority to enter into and to perform this Agreement and all
         other agreements, certificates and documents executed or delivered, by
         Sellers in connection herewith. This Agreement has been duly
         authorized, executed and delivered by Sellers, and is a legal, valid
         and binding obligation of Sellers, enforceable in accordance with its
         terms.

            c. Organization and Standing. The Company is a corporation duly
         organized, validly existing, and in good standing under the laws of the
         State of Florida. The Company has no subsidiaries nor does it have any
         other interest of any kind in any corporation, partnership, joint
         venture, association or other entity.

            d. Capital Stock. The authorized capital stock of the Company
         consists of 100 shares of common stock, of which 100 are issued and
         outstanding. No person, firm or corporation has any agreement, option,
         right or privilege, whether preemptive or contractual, capable of
         becoming an agreement for the purchase or acquisition of any bonds,
         debentures, shares or other securities of the Company.

            e. Defaults. The Company is not in default under or in violation of
         any contracts, leases, or agreements to which it is a party. All such
         contracts leases and agreements are now in full force and effect and
         the Company is aware of any violation or notice of termination or
         intent to terminate, with respect to any contracts, leases or
         agreements to which the Company is a party.

            f. Litigation. Other than as disclosed in Schedule 6(f), neither the
         Company nor the Shareholders are subject to any unsatisfied judgment,
         order, decree, stipulation, injunction, or charge and, to the best of
         the Company's and the Shareholder's knowledge neither is a party nor is
         threatened to be made a party to any charge, complaint, action, suit,
         proceeding, hearing, or investigation of or in any court or
         quasi-judicial or administrative agency of any federal, state, local,
         or foreign jurisdiction or before any arbitrator.

            g. Taxes. The Company has filed, all federal, state and local tax
         returns required to be filed by it as of the date of this Agreement and
         has paid, or made provision for payment, of all (i) taxes due for the
         periods covered by such returns, (ii) all payments of estimated taxes
         and (iii) all deficiencies assessed as a result of any examination of
         such returns. The Company has not been granted any extension of the
         limitation period applicable to any claim for taxes or assessments.

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            h. Compliance with Laws. To the best of the Company's knowledge, the
         Company always has conducted its business in compliance with all
         applicable laws and regulations and all orders of any governmental
         authority having jurisdiction over it. The Company has all licenses,
         permits and authorizations necessary to conduct its business.

            i. Status of and Relationship with Clients and Suppliers. The
         Company has established oral and/or written relationships with each of
         the clients and suppliers as described in the attached Exhibit "A",
         each of whom has engaged in business with the Company within the last
         twenty four (24) months. The Company's relationship with each client
         remains positive and the Company knows of no impediment to a continued
         relationship therewith and further, the Company has any knowledge of
         the intention of any client not to continue its relationship with the
         Company.

            j. Maintenance of the Business. Sellers represent and warrant that
         from and after the execution of the Letter of Intent on July 22, 1999
         to the present, they have operated the Business consistently and
         substantially in accordance with the operation thereof prior to such
         date and from July 22, 1999 to the present there have been no material
         changes thereto.

            k. Debts. Sellers represent that the Company currently has no
         outstanding debt obligations.

         7. Representations and Warranties of Buyer. Buyer represents, warrants
and agrees that:

            a. Execution and Effect of Agreement. Buyer has the full right,
         power and authority to enter into and perform under and pursuant to
         this Agreement. This Agreement has been duly executed and delivered by
         Buyer and is a legal, valid and binding obligation of Buyer enforceable
         in accordance with its terms.

            b. Access to the Company by Buyer. Buyer has had free and full
         access during normal business hours to the Company's assets, premises,
         books and records, clients and key employees, and have had the
         opportunity to ask questions and receive answers about the past
         performance and current and future prospects of the Company's business
         and assets.

            c. Litigation. Other than as disclosed in Schedule 7(c), Buyer is
         not subject to any unsatisfied judgment, order, decree, stipulation,
         injunction, or charge and, to the best of Buyer's knowledge is not a
         party nor is threatened to be made a party to any

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         charge, complaint, action, suit, proceeding, hearing, or investigation
         of or in any court or quasi-judicial or administrative agency of any
         federal, state, local, or foreign jurisdiction or before any
         arbitrator.

         8. Survival of Representations and Warranties. All representations and
warranties made herein shall be true and correct at and as of the Closing and
shall survive the consummation of the transactions provided for in this
Agreement.

        9. Non-Compete Agreement. Provided Buyer timely tenders all payments
and/or deliveries due hereunder the Shareholders agree that from and after the
Closing and for a period ending three (3) years after the Closing Date, the
Shareholders shall not (i) directly or indirectly, individually or through
family members, or as a partner, employee or shareholder of any person or entity
engage in any form of tax preparation business or related venture within the
area of 100 miles of each facility at which Buyer, its affiliates or assigns,
services and/or operates during the term hereof, provided, however, Michael
Chandross shall be permitted to continue to maintain his normal tax preparation
business, provided same does not in any way interfere with the business of the
Company; (ii) solicit, serve, direct or disseminate information concerning the
Business; (iii) solicit, encourage or advise clients of the Company who were
clients during the two (2) year period prior to the Closing Date, to cease doing
business therewith or otherwise engage in such securities or securities related
business with any other individual or entity; (iv) induce or attempt to induce
any other employee of the Company or any other person to refrain from doing
business with the Buyer or with any entity operated by Buyer; or (v) solicit,
encourage or advise any employees of Buyer to terminate employment with Buyer
for any reason whatsoever. The Shareholders recognize and agree that the
limitations set forth herein are reasonable and necessary for the protection of
the goodwill of the business of Buyer.

         10. Brokers. Should any claim be made for a broker's, finder's or
similar fee, on account of any actions or dealings by a party or its agents,
such party shall indemnify and hold the other party harmless from and against
any and all liability and expenses, including reasonable attorneys' fees,
incurred by reason of any claim made by such broker.

         11. Further Assurances. The parties shall cooperate and take such
actions, and execute such documents, as either may reasonably request in order
to carry out the provisions or purposes of this Agreement.

         12. Assignment and Delegation. Buyer may assign this Agreement and all
rights hereunder and delegate all duties under this Agreement to any third
party. Any such assignment and delegation may be made freely and without prior
notice to or approval from Seller. Following any such assignment, Buyer shall be
without further obligation of any kind to Sellers with the sole and exclusive
exception of any liability for any breach of this Agreement by Buyer which may
have occurred prior to the effective date of any such assignment. Liability for
any breach of this Agreement which may occur at any time subsequent to the
effective date of any such assignment shall be entirely the responsibility of
the assignee, solely and exclusively.

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         13. Notices. All notices or other communications provided for herein
and all legal process in regard hereto shall be in writing and shall be deemed
to have been duly given: when delivered by hand; when delivered by facsimile (if
written confirmation of receipt of the facsimile is obtained from the party to
be charged with notice; five (5) days after being deposited in the United States
mail, by registered or certified mail, return receipt requested, postage
prepaid; or on the second business day after being sent via a nationally
recognized overnight delivery service, to the addresses set forth above, or such
other address as any party hereto may from time to time designate in a writing
delivered pursuant hereto.

         14. Entire Agreement/Integration. This Agreement sets forth the
parties' final and entire agreement with respect to its subject matter and
supersedes any and all prior understandings and agreements. This Agreement can
be amended, supplemented or changed, and any provision hereof may be waived,
only by a written instrument making specific reference to this Agreement signed
by the party against whom enforcement of any such amendment, supplement, change
or waiver is sought.

         15. Company Property. On the Closing Date of this transaction, Sellers
shall provide to Buyer all documents, books, records, inventory, materials, keys
and personal property in Sellers' possession used in the operation of the
Business, such materials more fully detailed in Section 2 of the Disclosure
Schedule.

         16. Use of Corporate Name. It is expressly understood and agreed that
from and after the Closing hereof, Buyer shall have the absolute right to use
and ownership of the name "Certified Tax Returns USA".

         17. Mutual Indemnity. The parties hereto hereby mutually agree to
indemnify, defend and hold the other harmless from and against (i) in the case
of the Sellers, any and all costs, losses, claims, demands and liabilities,
including reasonable attorneys' fees and costs, which arise out of or relate to
any breach by the other of any of the terms or conditions of this Agreement; or
any other act of the other not authorized under the terms of this Agreement
whether any such act of the other is in connection with Sellers' business, or is
not so connected, which arose prior to the Closing Date, and (ii) in the case of
the Buyer, any and all costs, losses, claims, demands and liabilities, including
reasonable attorneys' fees and costs, which arise out of or relate to any breach
by the other of any of the terms or conditions of this Agreement; or any other
act of the other not authorized under the terms of this Agreement whether any
such act of the other is in connection with Buyer's business, or is not so
connected, which arises after the Closing Date. The terms and conditions of this
Section 17 shall survive termination of this Agreement.

         18. Governing Law. This Agreement shall be governed by and construed
and interpreted in accordance with the internal law of the State of Florida,
without reference to its rules as to conflicts of law.

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         19. Jurisdiction and Venue. The parties acknowledge that a substantial
portion of negotiations, anticipated performance and execution of this Agreement
occurred or shall occur in Palm Beach County, Florida, and that therefore,
without limiting the jurisdiction or venue of any other federal or state courts,
each of the parties irrevocably and unconditionally (a) agree that any suit,
action or legal proceeding arising out of or relating to this Agreement may be
brought in the courts of record of the State of Florida or the District Court of
the United States, Southern District of Florida; (b) consents to the
jurisdiction of each such court in any suit, action or proceeding; (c) waives
any objection which it may have to the laying of venue of any such suit, action
or proceeding in any of such courts; and (d) agrees that service of any court
paper may be effected on such party by mail, as provided in this Agreement, or
in such other manner as may be provided under applicable law or court rules in
said state.

         20. Expenses. Unless provided herein to the contrary, each party is
responsible for its or his own expenses, including attorneys' fees and costs,
associated with this transaction.

         21. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument.

                           [signature page to follow]

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                              SHAREHOLDER SCHEDULE

Name                       % of Company Shares         % of Buyer's Shares
                             Currently Owned              to be Received
--------------------------------------------------------------------------------
Robert Bettinger                   21%                         21%
Steven Bettinger                   20%                         20%
Michael Chandross                  16%                         16%
Scott Shaw                         41%                         41%
Craig Winograd                      2%                          2%
                                  ----                        ----
        Total                     100%                        100%

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

                                    BUYER:

                                    COLONIAL DIRECT FINANCIAL GROUP, INC.

                                    SELLER:

                                    CERTIFIED TAX RETURNS USA, INC.

                                    By: /s/ Robert Bettinger
                                        ---------------------
                                    Name: Robert Bettinger
                                    Title: Chairman

                                    SHAREHOLDERS

                                    /s/ Robert Bettinger
                                    ----------------------------------
                                    Robert Bettinger, individually

                                    /s/ Scott Shaw
                                    ----------------------------------
                                    Scott Shaw, individually

                                    /s/ Steven Bettinger
                                    ----------------------------------
                                    Steven Bettinger, individually

                                    /s/ Michael Chandross
                                    ----------------------------------
                                    Michael Chandross, individually

                                    /s/ Craig Winograd
                                    ----------------------------------
                                    Craig Winograd

                                       8<PAGE>

                            STOCK EXCHANGE AGREEMENT

         This STOCK EXCHANGE AGREEMENT ("Agreement") is made this 8th day of
November 1999, by and among Colonial Direct Financial Group, Inc., a Delaware
corporation, with offices at 1499 W. Palmetto Park Road, Suite 312, Boca Raton,
Florida 33486 ("Buyer"), Jeffrey S. Kahn ("Kahn"), an individual, and Richard H.
Waxman ("Waxman"), an individual (Kahn and Waxman sometimes hereinafter
collectively referred to as "Sellers").

                                   Background

         WHEREAS, Sellers are the sole stockholders of KWT Consultants, Inc., a
Florida corporation (the "Company"), which currently operates an employee
benefits consulting business with offices located at 2101 NW Corporate Blvd.,
Suite 2130, Boca Raton, Florida 33431-7343 (the "Office") and furnishes certain
employee benefits consulting and administration services, by and through its
employees, agents, third party administrators and other subcontractors.

         WHEREAS, Sellers wish to transfer to Buyer all of Sellers' right,
title, and interest in and to all of the outstanding shares of capital stock of
the Company (the "Stock") in exchange solely for Buyer's voting stock, and Buyer
wishes to acquire all of Sellers' right, title, and interest in and to the Stock
subject to and upon the terms and conditions set forth herein; and

        WHEREAS, Sellers and Buyer intend that the sale contemplated hereunder
will qualify as a tax free reorganization under Section 354 of the Internal
Revenue Code of 1986, as amended (the "Code");

        NOW THEREFORE, in reliance on the representations, warranties and
agreements described herein, and subject to the terms and conditions hereinafter
set forth, the parties hereby agree as follows:

                                     Terms

        1. Exchange of Stock. At the Closing (as defined in Section 1.3) and
subject to the terms and conditions of this Agreement, Sellers shall exchange,
transfer, assign, and deliver to Buyer, and Buyer shall accept from Sellers, all
of Sellers' right, title, and interest in and to the Stock, in exchange solely
for voting common stock of the Buyer as provided in Section 2.

        1.2. Delivery of Stock. At the Closing, Sellers shall deliver to Buyer a
certificate or certificates representing ownership of the Stock, duly endorsed
for transfer or with proper stock powers therefor, so that the Stock is
negotiable for delivery.

        1.3. Closing Date. Subject to satisfaction of all conditions set forth
herein, the closing (the "Closing") of the exchange of stock contemplated
pursuant to the terms of this Agreement shall take place no event later than
November 8, 1999, at the law offices of Dreier & Baritz LLP, 150 E. Palmetto
Park Road, Suite 401, Boca Raton, FL 33432 (the "Closing Date").

         1.4. Release by Sellers. Effective on the Closing Date and unless
otherwise disclosed in this Agreement, each Seller hereby releases the Company
from any and all claims of Seller, arising before the Closing Date.

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         2. Exchange Price. Payment by Buyer for the Stock shall be effected by
Buyer delivering to Sellers 144,444 shares of its voting Common Stock, free and
clear of any liens or encumbrances, which at the time of Closing will represent
3.7% of the issued and outstanding Shares of the Buyer and, after the
transactions set forth on Schedule 1 are consummated, represent no less than
2.7% of the issued and outstanding Shares of the Buyer.

         3. Deliveries of Buyer. At the Closing, Buyer shall: (i) cause to be
delivered 144,444 shares of its Common Stock, such Common Stock shall be duly
issued, fully paid for and non-assessable; (ii) Employment Agreement in the form
as attached hereto as Exhibit "A" executed by it; and (iii) together with
Sellers, execute and deliver such other documents as Buyer or Sellers may
reasonably request to effectuate the transactions contemplated by this
Agreement.

         4. Deliveries of Sellers. At the Closing, Sellers shall (i) deliver a
duly executed stock powers transferring the Stock to the Buyer; (ii) Employment
Agreement in the form as attached hereto as Exhibit "B" duly executed by Kahn;
and (iii) together with Buyer, execute and deliver such other documents as Buyer
or Sellers may reasonably request to effectuate the transactions contemplated by
this Agreement.

         5. Reporting/Books and Records.

             a. Company's Books. Sellers have provided Buyer access to the
         Company's books and records, and copies as requested of, which Sellers
         believe are true and correct to the best of their knowledge in all
         material respects, which books and records contain all financial
         information necessary to ascertain the revenue generated by the Company
         through December 31, 1998, and for the interim period of January 1,
         1999 through July 31, 1999, and will, at or prior to Closing Date,
         provide to Buyer access to and copies as requested of such updated
         books and records up to and including the Closing Date.

             b. Buyer's Books. Buyer has provided Sellers access to its and its
         subsidiaries books and records which Buyer believes are true and
         correct in all material respects to the best of its knowledge,
         containing all financial information necessary to ascertain the revenue
         generated by the Buyer and its subsidiaries through December 31, 1998,
         and for the interim period of January 1, 1999 through July 31, 1999,
         and will, at or prior to Closing Date, have provided to Sellers access
         to such updated books and records up to and including the Closing Date.

             c. Future Revenues. Neither party makes any representation or
         guaranty as to future revenues.

         6. Representations and Warranties of Seller. Except as provided in
Schedule 2, the Sellers represent, warrant and agree that:

             a. Ownership of Business/Absence of Claims. Kahn and Waxman are the
         sole record and beneficial owners of the outstanding Stock of the
         Company and such Stock is fully paid for and non-assessable and is free
         and clear of any and all liens, pledges, security interests, options,
         encumbrances, charges, agreements or claims of any kind.

<PAGE>

             b. Authority. Sellers, jointly and severally, have the full right,
         power and authority to enter into and to perform this Agreement and all
         other agreements, certificates and documents executed or delivered, by
         Sellers in connection herewith. This Agreement has been duly
         authorized, executed and delivered by Sellers, and is a legal, valid
         and binding obligation of Sellers, enforceable in accordance with its
         terms.

             c. Organization and Standing. The Company is a corporation duly
         organized, validly existing, and in good standing under the laws of the
         State of Florida. The Company has no subsidiaries nor does it have any
         other interest of any kind in any corporation, partnership, joint
         venture, association or other entity.

             d. Capital Stock. The authorized capital stock of the Company
         consists of 200 shares of common stock, of which 20 are issued and
         outstanding. No person, firm or corporation has any agreement, option,
         right or privilege, whether preemptive or contractual, capable of
         becoming an agreement for the purchase or acquisition of any bonds,
         debentures, shares or other securities of the Company.

             e. Defaults. To the best of Seller's knowledge, the Company is not
         in default under or in violation of any contracts, leases, or
         agreements to which it is a party. All such contracts, leases, and
         agreements are now in full force and effect and neither the Company,
         Kahn nor Waxman is aware of any violation or notice of termination or
         intent to terminate, with respect to any contracts, leases or
         agreements to which the Company is a party.

             f. Litigation. To the best of their knowledge, neither the Company,
         Kahn nor Waxman is subject to any unsatisfied judgment, order, decree,
         stipulation, injunction, or charge and neither is a party nor is
         threatened to be made a party to any charge, complaint, action, suit,
         proceeding, hearing, or investigation of or in any court or
         quasi-judicial or administrative agency of any federal, state, local,
         or foreign jurisdiction or before any arbitrator.

             g. Taxes. The Company has filed all federal, state and local tax
         returns required to be filed by it as of the date of this Agreement and
         has paid, or made provision for payment, of all (i) taxes due for the
         periods covered by such returns, (ii) all payments of estimated taxes
         and (iii) all deficiencies assessed as a result of any examination of
         such returns. The Company has not been granted any extension of the
         limitation period applicable to any claim for taxes or assessments.

             h. Compliance with Laws. To the best of the Seller's knowledge, the
         Company always has conducted its business in compliance with all
         applicable laws and regulations and all orders of any governmental
         authority having jurisdiction over it. The Company has all licenses,
         permits and authorizations necessary to conduct its business.

<PAGE>

             i. Status of and Relationship with Clients. The Company has
         established oral and/or written relationships with each of the clients
         and third party administrators as described in the attached Schedule 3,
         each of whom has engaged in business with the Company within the last
         twenty four (24) months. To the best of Seller's knowledge, the
         Company's relationship with each client remains positive and there is
         no impediment to a continued relationship therewith and further,
         neither the Company, Kahn nor Waxman has actual notice of the intention
         of any client not to continue its relationship with the Company which
         would have a material financial impact on the Company.

             j. Maintenance of the Business. Sellers represent and warrant that
         from and after the execution of the Letter of Intent on August 4, 1999
         to the present, the Company has operated its business consistently and
         substantially in accordance with the operation thereof prior to such
         date and from August 4, 1999 to the present there have been no material
         changes thereto.

             k. Certain Obligations. Sellers represent that the Company
         currently has a sublease with Kahn and Waxman, P.A. attached hereto as
         Exhibit "B", an existing obligation to Iven R. Taub pursuant to the
         agreement attached hereto as Exhibit "C", which obligations together
         with those disclosed or otherwise incurred in the ordinary course will
         be the continuing obligations of the Company.

         7. Representations and Warranties of Buyer. Buyer represents, warrants
and agrees that:

             a. Authority. Buyer has the full right, power and authority to
         enter into and perform under and pursuant to this Agreement. This
         Agreement has been duly executed and delivered by Buyer and is a legal,
         valid and binding obligation of Buyer enforceable in accordance with
         its terms. Buyer has taken all the requisite corporate action necessary
         to effectuate the terms of this Agreement.

             b. Organization and Standing. The Buyer and each of its
         subsidiaries is a corporation duly organized, validly existing, and in
         good standing under the laws in which it was incorporated. Except as
         provided on Schedule 4, the Buyer has no other subsidiary corporations
         nor does it have any other interest of any kind in any corporation,
         partnership, joint venture, association or other entity.

             c. Defaults. To the best of Buyer's knowledge, neither the Buyer
         nor any of its subsidiaries is in default under or in violation of any
         contracts, leases, agreements to which any of them is a party. All such
         contracts, leases and agreements are now in full and effect and neither
         the Buyer nor any of its subsidiaries is aware of any violation or
         notice of termination or intent to terminate, with respect to any
         contracts, leases or agreements to which the Buyer or any of its
         subsidiaries is a party.

             d. Access to the Company by Buyer. Buyer has had free and full
         access during normal business hours to the Company's assets, premises,
         books and records, clients and key employees, and have had the
         opportunity to ask questions and receive answers about the past
         performance and current and future prospects of the Company's business
         and assets.

<PAGE>

             e. Litigation. Other than as disclosed in Schedule 5, neither Buyer
         nor any of its subsidiaries is subject to any unsatisfied judgment,
         order, decree, stipulation, injunction, or charge and, to the best of
         Buyer's knowledge is not a party nor is threatened to be made a party
         to any charge, complaint, action, suit, proceeding, hearing, or
         investigation of or in any court or quasi-judicial or administrative
         agency of any federal, state, local, or foreign jurisdiction or before
         any arbitrator.

             f. Taxes. The Buyer and each of its subsidiaries have filed all
         federal, state and local tax returns required to be filed by each of
         them as of the date of this Agreement, and has paid, or made provision
         for payment, of all (i) taxes due for the periods covered by such
         returns, (ii) all payments of estimated taxes, and (iii) all
         deficiencies assessed as a result of any examination of such returns.
         Neither the Buyer nor any of its subsidiaries has been granted any
         extension of the limitation period applicable to any claim for taxes or
         assessments.

             g. Compliance With the Laws. To the best of Buyer's knowledge, the
         Buyer and each of its subsidiaries has always conducted their
         respective businesses in compliance with all applicable laws and
         regulations, and all orders of any governmental authority having
         jurisdiction over any of them. The Buyer and each of its subsidiaries
         have all licenses, permits and authorizations necessary to conduct its
         business.

             h. Maintenance of the Business. Buyer represents and warrants that
         from and after the execution of the letter of intent on August 4, 1999
         to the present, the Buyer and each of its subsidiaries have operated
         their respective businesses consistently and substantially in
         accordance with the operation thereof prior to such date and from
         August 4, 1999 to the present there have been no material changes
         thereto.

         8. Condition Subsequent/Completion of Initial Public Offering. As a
condition subsequent, Buyer shall complete an initial public offering ("IPO") of
its Common Stock in an amount not less than $10,000,000 within eighteen months
of the Closing Date; provided, however that in the event an IPO is not completed
prior to such eighteen month period, Buyer shall at Sellers option (exercised
within a reasonable period of time), promptly unwind this exchange, and all of
the shares exchanged hereby shall be returned to the original owners, as
appropriate and all confidential information relative to the Company shall be
returned to the Company shall not be used by the Buyer for any purpose except
with the written consent of the Sellers.

         In order to facilitate an unwinding if required, after the Closing Date
until said condition subsequent is satisfied or waived by the Sellers, the Buyer
agrees to maintain the Company as a separate subsidiary entity and will maintain
in it all assets required with respect to business operations, including all
intangible such as names (i.e. "KWT Consultants") and phone numbers, and
otherwise operate the business as historically operated. The Buyer shall,
however, be permitted to use its name in connection with the Company during this
time period.

<PAGE>

         In the event the Sellers elect to unwind the transaction, all
Agreements between the parties, including the Employment Agreement between Kahn
and the Buyer, including all restrictive covenants, shall be of no further force
and effect as to the Sellers, it being the intention of the parties to put
Sellers and the Company in their original positions.

         During the pre-IPO period, each of the Sellers, as stockholders of the
Buyer, shall be entitled to registration rights or otherwise cause their shares
in Buyer to be registered on substantially the same basis (but adjusted for
relative stock holdings) as afforded any other stockholder of the Buyer.

         9. Survival of Representations and Warranties. All representations and
warranties made herein shall be true and correct at and as of the Closing and
shall survive the consummation of the transactions provided for in this
Agreement.

         10. Employment Agreement. Kahn shall enter into an Employment Agreement
with the Buyer, in substantially the form attached hereto at Exhibit "B".

         11. Non-Compete Agreement. Provided Buyer timely tenders all payments
due hereunder each of the Sellers agrees that from and after the Closing and for
a period ending three (3) years after the Closing Date, the Sellers shall not
(i) directly or indirectly, individually or through family members, or as a
partner, employee or shareholder of any person or entity engage in the employee
benefits consulting and administration business ("Business") within the area of
100 miles of Boca Raton; (ii) solicit, serve, direct or disseminate information
concerning the Business; (iii) solicit, encourage or advise clients of the
Company who were clients during the two (2) year period prior to the Closing
Date, to cease doing business therewith or otherwise engage in such Business
with any other individual or entity; (iv) induce or attempt to induce any other
employee of the Company or any other person to refrain from doing business with
the Buyer or with any entity operated by Buyer; or (v) solicit, encourage or
advise any employees of Buyer to terminate employment with Buyer for any reason
whatsoever. The Sellers recognize and agree that the limitations set forth
herein are reasonable and necessary for the protection of the goodwill of the
business of Buyer. Notwithstanding the foregoing, the Sellers reserve the right
to provide services defined in the Business to the clients set forth on Schedule
6. In the event Buyer materially breaches this Agreement, including specifically
the failure to timely complete a public offering as provided in Section 8, or
the Employment Agreement (including a termination without cause) Sellers shall
not be subject to this Non-Compete Agreement.

         Notwithstanding anything set forth herein to the contrary, the Buyer
acknowledges that each of the Sellers is engaged and will continue to engage in
the practice of law, including in the employee benefits area, and nothing in
this Agreement or the Employment Agreement shall be construed to limit or
restrict service within the scope that legal practice as reasonably determined
by the Sellers which services may include incidental benefit services not
exclusively within the practice of law. Furthermore, nothing herein shall
require either of Sellers to take or fail to take any action which violates any
rule applicable to them as attorneys, including rules regarding fee splitting,
exclusive referrals, and/or referrals to an entity in which Sellers' have an
economic interest.

         12. Brokers. Each of the parties acknowledges that he or it has not
dealt with a broker or any other person entitled to a fee or commission with
respect to the transaction contemplated by this Agreement. In the event either
party breaches this Section, said party shall satisfy that obligation or
otherwise indemnify and hold harmless the other party(ies) for any liability to
said person.

<PAGE>

         13. Further Assurances. The parties shall cooperate and take such
actions, and execute such documents, as either may reasonably request in order
to carry out the provisions or purposes of this Agreement.

         14. Assignment and Delegation. Neither of the parties may assign this
Agreement or any of their rights and obligations hereunder.

         15. Notices. All notices or other communications provided for herein
and all legal process in regard hereto shall be in writing and shall be deemed
to have been duly given: the second business day after being sent via a
nationally recognized overnight delivery service, to the addresses set forth
above, or such other address as any party hereto may from time to time designate
in a writing delivered pursuant hereto.

         16. Entire Agreement/Integration. This Agreement sets forth the
parties' final and entire agreement with respect to its subject matter and
supersedes any and all prior understandings and agreements. This Agreement can
be amended, supplemented or changed, and any provision hereof may be waived,
only by a written instrument making specific reference to this Agreement signed
by the party against whom enforcement of any such amendment, supplement, change
or waiver is sought.

         17. Company Property. On the Closing Date of this transaction, Sellers
shall provide to Buyer all documents, books, records, inventory, materials, keys
and personal property in Sellers' possession used in the operation of the
Business.

         18. Use of Corporate Name. Subject to an unwinding as provided in
Section 8, it is expressly understood and agreed that from and after the Closing
hereof, Buyer shall have the absolute right to use and ownership of the name
"KWT Consultants".

         19. Mutual Indemnity. The Buyer on the one hand and the Sellers on the
other hereto hereby mutually agree to indemnify, defend and hold the other
harmless from and against (i) in the case of the Sellers, any and all costs,
losses, claims, demands and liabilities, including reasonable attorneys' fees
and costs, which arise out of or relate to any breach by the other of any of the
terms or conditions of this Agreement; or any other act of the other not
authorized under the terms of this Agreement which arose prior to the Closing
Date unless disclosed to Buyer or which occurred in the ordinary course of
business, and (ii) in the case of the Buyer, any and all costs, losses, claims,
demands and liabilities, including reasonable attorneys' fees and costs, which
arise out of or relate to any breach by Buyer of any of the terms or conditions
of this Agreement; or any other act of the other not authorized under the terms
of this Agreement whether any such act of the other is in connection with
Buyer's or any of its subsidiaries' business, or is not so connected, which
arose prior to the Closing Date, but as to the Company as it relates to the
period after the Closing Date. The terms and conditions of this Section 19 shall
survive termination of this Agreement. At the option of Sellers, if
indemnification is required by either of them under this Agreement, said
obligation may be satisfied in Buyer's Common Stock received by the Sellers
hereunder at a value of no less than $9.00 per Share and the Sellers shall not
be subject to indemnification for an amount greater than the number of Buyer's
Common Stock received by each of them hereunder.

<PAGE>

         20. Governing Law. This Agreement shall be governed by and construed
and interpreted in accordance with the internal law of the State of Florida,
without reference to its rules as to conflicts of law.

         21. Jurisdiction and Venue. The parties acknowledge that a substantial
portion of negotiations, anticipated performance and execution of this Agreement
occurred or shall occur in Palm Beach County, Florida, and that therefore,
without limiting the jurisdiction or venue of any other federal or state courts,
each of the parties irrevocably and unconditionally (a) agree that any suit,
action or legal proceeding arising out of or relating to this Agreement may be
brought in the courts of record of the State of Florida or the District Court of
the United States, Southern District of Florida; (b) consents to the
jurisdiction of each such court in any suit, action or proceeding; (c) waives
any objection which it may have to the laying of venue of any such suit, action
or proceeding in any of such courts; and (d) agrees that service of any court
paper may be effected on such party by mail, as provided in this Agreement, or
in such other manner as may be provided under applicable law or court rules in
said state.

         22. Expenses. Unless provided herein to the contrary, each party is
responsible for its or his own expenses, including attorneys' fees and costs,
associated with this transaction.

         23. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument.

                           [signature page to follow]

<PAGE>

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

                                       BUYER:

                                       COLONIAL DIRECT FINANCIAL
                                       GROUP, INC., a Delaware corporation

                                       By:    /s/ Rodney G. Smith
                                              ---------------------------
                                       Name:  Rodney G. Smith
                                       Title: President

                                       SELLERS:

                                       /s/ Jeffrey S. Kahn
                                       ----------------------------------
                                       Jeffrey S. Kahn

                                       /s/ Richard H. Waxman
                                       ----------------------------------
                                       Richard H. Waxman

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