Document:

Exhibit 10.4

    
      
        

      

    

    EXHIBIT
      NO. 10.4

    

    RESCISSION
      AND SETTLEMENT AGREEMENT

    

    THIS
      RESCISSION AND SETTLEMENT AGREEMENT (the "Agreement"), dated and effective
      as of
      May 5, 2006 (the "Effective Date"), is by and among Paragon Financial
      Corporation, a Delaware corporation ("PFC"), Shearson Home Loans, Inc. a Nevada
      corporation (the "Company"), and Consumer Direct of America, a Nevada
      corporation (the "Shareholder"; and collectively with the Company and PFC,
      the
      "Parties")

    

    RECITALS

    

    On
      or
      about February 7, 2006, the Parties entered into a Share Exchange Agreement
      (the
      "Exchange Agreement”), under which the following transactions took place or were
      ratified:

    

    A.   At
      the
      closing of the Exchange Agreement, the Shareholder sold, assigned, and
      transferred to PFC 1,000 shares of Company's common stock (the shares of Company
      common stock sold, assigned and transferred to PFC hereunder arc hereinafter
      referred to as the "Company Shares") to 6330 S. Sandhill Rd., Suite 8, Las
      Vegas, Nevada 89120; and

    

    B.    At
      the
      closing, PFC issued, sold and delivered to the Shareholder 149,558,791 shares
      of
      PFC’s common stock (the "PFC Common Stock") and 19 shares of PFC Series F
      Preferred Stock (referred to as the "PFC Series F Shares" and collectively
      with
      me PFC Common Stock referred to as the "PFC Shares").

    

    C.    Certain
      variances concerning the strategic direction of PFC have arisen between PFC,
      the
      Company and Shareholder, and the Parties have reached an agreement that it
      IS in
      the Parties respective best interests to rescind the Exchange Agreement and
      which Exchange Agreement and Exchange Documents shall be deemed void
ab
      initio
      and
      execute this Agreement to evidence such agreement.

    

    D.    In
      connection with such rescission, CDA shall transfer, assign and convey to PFC,
      free and clear of any and all liens and encumbrances, the PFC
      Shares.

    

    NOW,
      THEREFORE, in consideration of the foregoing recitals and the representations,
      warranties, covenants and agreements set forth herein, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereby agree as follows:

    

    AGREEMENT

    

    1.    
Exchange
      and Rescission.

    

    The
      Parties agree to rescind the Exchange Agreement. Accordingly, at the Closing
      (hereinafter defined):

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.1        
      Stock
      Certificates.
      Shareholder will return to PFC the certificates representing the PFC Common
      Stock and the PFC Series F Preferred Shares issued in the Exchange Transaction,
      with duly executed stock powers endorsing the certificates to PFC.

    

    1.2        
      Certificate.
      PFC
      will execute a certificate that represents that it disclaims ownership of the
      Company Shares received as part of the Exchange Agreement and provide an
      Affidavit of Lost Certificate in form and substance satisfactory to
      Shareholder.

    

    1.3        
      Payment
      for Certain Items.
      PFC
      agrees to reimburse all documented and reasonable out of pocket expenses paid
      (schedule 1) on behalf of and for the benefit of PFC by the
      Company.

    

    1.4        
      Resignation
      of Directors and Officers.
      The
      Shareholder nominees to PFC's Board of Directors shall resign (Schedule 2)
      their
      respective positions as directors and officers of PFC effective upon the
      Effective Date of this Rescission Agreement.

    

    1.5        
      Non-disparagement.
      From the
      date of this Agreement, the Parties shall not make any public disparaging
      statements concerning either company's officers, directors, employees,
      Attorneys, agent, or contracting parries, or its business or operations. This
      non-disparagement agreement shall not in any way prevent the parries from
      disclosing any information to their attorneys or in response to a lawful
      subpoena or court order requiring disclosure of information.

    

    1.6        
      Rescission.
      Upon
      the Closing, the Exchange Agreement and the Exchange documents shall be void
      ab
      initio,
      and
      neither party thereto shall have any right or obligation of whatsoever nature
      or
      kind there under or with respect thereto.

    

    1.7        
      Closing.
      Subject
      to the terms and conditions of this Agreement, the closing of the transactions
      contemplated herein (the '"Closing") shall take place on May 15, 2006 (but
      in
      any event upon, delivery and receipt of the deliverables referred to in Section
      6) or on such other date as the Shareholders and the Company shall agree in
      writing (the "Closing Date'1). The Closing shall take place at 10:00 a.m.
      California time on the Closing Date at 6330 S. Sandhill Rd. Suite # 6 Las Vegas,
      Nevada 85120, or at such other time or place as the Shareholders and the Company
      shall agree. At the Closing, the Shareholders, Company and PFC shall deliver
      to
      each other the documents, instruments and other items described m Section 6
      of
      this Agreement. At the election of the Shareholders and 1he Company, (the
      Closing may take place through an exchange of documents using overnight courier
      service or facsimile. Form 8K shall not be filed by PFC before May 19,
      2006.

    

    1.8        
      Existing Contracts.
      PFC
      disclaims any interest whatsoever in two existing agreements i.e. eHome Credit
      and Real Property Technologies to include any subsidiaries of either entity.
      Additionally the pending transaction with Barron Partners is for the sole
      Benefit of the
      Company and the Shareholder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.    Representations
      and Warranties of the Company and Shareholder.
      The
      Company and the Shareholder hereby represent and warrant to PFC as
      follows:

    

    2.1        
      Valid
      Title.
      Shareholder owns and holds good and valid title to the PFC Shares held by the
      Shareholder. The Shareholder has not granted any option, wan-ant, or interests
      any of the PFC Shares of any sort or any right to acquire any of the PFC Shores
      other than as contemplated hereby.

    

    2.2        
      Authority.
      Shareholder has the foil and unrestricted right, power, capacity and authority
      to enter into, execute and deliver this Agreement; to transfer, assign and
      convey good and valid title to the PFC Shares free and dear of any mortgages,
      pledges, liens, security interests, encumbrances, restrictions or charges of
      any
      kind, except for restrictions on transfer pursuant to applicable state and
      federal securities laws.

    

    2.3        Compliance.
      Shareholder's compliance with the respective obligations hereunder will not
      violate, conflict with or constitute a breach of any agreement, arrangement,
      commitment or understanding to which Shareholder is a party,

    

    2.4        
      No
      Consent.
      No
      consent, approval or authorization of, or designation, declaration or tiling
      with, any governmental authority or agency is required on the part of
      Shareholder in connection with the valid execution and delivery of this
      Agreement, or the transfer, assignment or conveyance of the PFC
      Shares.

    

    2.5        
      Disclosure.
      No
      representations or warranties by the Shareholder in this Agreement and no
      statement contained in any document (including, without limitation, financial
      statements and the Disclosure Schedule), certificate, or oilier writing
      furnished or to be furnished by the Shareholder to PFC pursuant to the
      provisions hereof or in connection with the transactions contemplated hereby,
      contain or will contain any untrue statement of material fact or omit or will
      omit to state any material fact necessary in order to make the Statements herein
      or therein, in light of the circumstances under which they were made, not
      misleading.

    

    2.6        
      Absence
      of Agreements.
      Neither
      the Company, Shareholder nor Shareholder’s nominees to PFC's Board of Directors
      have caused, in their capacity as officers or directors of PFC, the execution
      of
      any agreements binding PFC or PFC's subsidiary Paragon Homefunding, Inc. to
      obligations which inure to the detriment of PFC or Paragon Homefunding, prior
      to
      or subsequent to the date of this agreement

    

    2.7        
      No
      Violation.
      Neither
      the execution and delivery of this Agreement nor its performance and the
      consummation of the transactions contemplated hereby will (a) violate any
      provision of the Articles of Incorporation or Bylaws of Shareholder or the
      Company, (b) violate, or be in conflict with, or constitute a default (or an
      event which, with or without dub notice or lapse of time, or both, would
      constitute a default) under, or result in the modification or termination of,
      or
      cause or permit the acceleration of the maturity of any debt, obligation,
      contract, commitment or other agreement to which the Company or Shareholder
      is a
      party or by which it or its property may be bound, (c) result in the creation
      or
      imposition of any mortgage, pledge, Han, security interest, encumbrance,
      restriction, charge or limitation of any kind, upon any property or assets
      of
      the Company or Shareholder, or (d) violate any statute or law or any judgment,
      decree, order, regulation or rule of any court or governmental
      authority.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.8        Cease
      Representation.
      Subsequent to the date of this agreement, the Company and Shareholder shell
      not
      represent or hold themselves out as representing PFC's management, PFC's Board
      of Directors or are currently connected to PFC in any way or manner that could
      convey that this rescission has not or might not occur.

    

    3.    Representations
      and Warranties of PFC.
      PFC
      represents and warrants to the Shareholder and to the Company that:

    

    3.1        
      Valid
      Title.
      PFC
      owns and holds good and valid title to the Company Shares held by the PFC.
      PFC
      has not granted any option, warrant, or interest any of the Company Shares
      of
      any sort or any right to acquire any of the Company Shares other man as
      contemplated hereby.

    

    3.2        
      Authority.
      PFC has
      the full and unrestricted right, power, capacity and authority to enter into,
      execute and deliver this Agreement; to transfer, assign and convoy good and
      valid title to the Company Shares free and clear of any mortgages, pledges,
      liens, security interests, encumbrances, restrictions or charges of any kind,
      except for restrictions on transfer pursuant to applicable state and federal
      securities laws.

    

    3.3        
      Compliance.
      PFC's
      compliance with the respective obligations hereunder will not violate conflict
      with or constitute a breach of any agreement, arrangement, commitment or
      understanding to which PFC is a party.

    

    3.4        
      No
      Consent.
      No
      consent, approval or authorization of, or designation, declaration or riling
      with, any governmental authority or agency is required on the part of PFC in
      connection with the valid execution and delivery of this Agreement, or the
      transfer, assignment or conveyance of the Company Shares.

    

    3.5        
      Disclosure.
      No
      representations or warranties by PFC in this Agreement and no statement
      contained in any document (including, without limitation, financial statements
      and the Disclosure Schedule), certificate, or other writing furnished or to
      be
      furnished by PJFC to the Shareholder or the Company pursuant to the provisions
      hereof or in connection with the transactions contemplated hereby, contain
      or
      will contain any untrue statement of material feet or omit or will omit to
      state
      any material fact necessary in order to make the statements herein or therein,
      in light of the circumstances under which they were made, not
      misleading.

    

    3.6        
      Absence
      of Agreements.
      Neither
      PFC or PFC's subsidiary Paragon Homefunding, Inc. have caused to be executed
      any
      agreements binding the Company or Shareholder to obligations which inure to
      the
      detriment of the Company or Shareholder prior to or subsequent to the date
      of
      this agreement

    

    3.7        
      No
      Violation.
      Neither
      the execution and delivery of this agreement nor its performance and the
      consummation of the transactions contemplated hereby will (a) violate any
      provision of the Articles of Incorporation or Bylaws of PFC, (b) violate, or
      be
      in conflict with, or constitute a default (or an event which, with or without
      due notice or lapse of time, or both, would
      constitute a default) under, or result in the modification or termination of,
      or
      cause or permit the acceleration of the maturity of any debt, obligation,
      contract, commitment or other agreement to which PFC is a party or by which
      it
      or its property maybe bound, (c) result in the creation or imposition of any
      mortgage, pledge, lien, security interest, encumbrance, restriction, charge
      or
      limitation of any kind, upon any property or assets of PFC, or (d) violate
      any
      statute or law or any judgment, decree, Order, regulation or rule of any court
      or governmental authority.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.8        
      Cease Representation.
      Subsequent to the date of this agreement, PFC shall not represent or hold itself
      out as representing the Company or Shareholder or as currently connected to
      the
      Company or Shareholder in any way or manner that could convey that this
      rescission baa not or might not occur.

    

    4.    Mutual
      Releases.

    

    4.1        
      Release by the Company and the Shareholder.
      For
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Company and the Shareholder hereby fully and forever releases
      and discharges PFC and its directors, partners, members, managers, officers,
      employees, agents, heirs, attorneys, executors, administrators, predecessors,
      successors and assigns (each, a "PFC Party" and, collectively, the "PFC
      Parties”), of and from any and all claims, demands, agreements, contracts,
      covenants, suits, actions, caused of action, obligations, controversies, debts,
      costs, expenses, accounts, damages, judgments, losses and liabilities, of
      whatever kind or nature, in law, equity or otherwise, whether known pr unknown,
      concealed or hidden (collectively, "Claims"), which any Party has had, may
      have
      had or now has, to and including the date of this Agreement, against any of
      the
      PFC Parties, arising out of or in connection with the Exchange or the Exchange
      Documents.

    

    4.2        
      Release by PFC.
      For
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, PFC hereby folly and forever releases and discharges the Company
      and me Shareholder and their respective directors, partners, members, managers,
      officers, employees, agents, heirs, attorneys, executors, administrators,
      predecessors, successors and assigns (each, a "Company and shareholder Party"
      and, collectively, the "Company and Shareholder Parties"), of and from any
      and
      all Claims which any Party has had, may have had or now has, to and including
      the date of this Agreement, against any Parties, including without limitation
      any Claims arising out of or in connection with allegations, facts and/or
      circumstances referred to in the Exchange or the Exchange Documents. 

    

    4.3        
      Acknowledgements.
      All
      Parties intend for their respective releases to be effective as a bar to all
      actions, causes of action, suits, claims or demands of every tend, nature or
      character whatsoever, known or unknown, suspected or unsuspected, fixed or
      contingent, except to the extent arising out of, in connection with or resulting
      from any breach of this Agreement. ALL PARTIES ACKNOWLEDGES THAT IT HAS BEEN
      ADVISED BY LEGAL COUNSEL AND IS FAMILIAR. WITH CALIFORNIA CIVIL CODE SECTION
      1542, WHICH PROVIDES AS FOLLOWS:

    

    "A
      general release does not extend to claims which the creditor does not know
      or
      suspect to exist in his favor at the time of executing the release, which if
      known by him must have materially affected his settlement with the
      debtor.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THE
      PARTIES EXPRESSLY WAIVE AMD RELINQUISH ANY AND ALL: RIGHTS OR BENEFITS HE,
      SHE
      OR IT MAY HAVE UNDER, OR WHICH MAY BE CONFERRED UPON HIM BY, THE PROVISIONS
      OF
      SECTION 1542 OP THE CALIFORNIA; CIVIL CODE TO THE FULLEST EXTENT THAT IT MAY
      LAWFULLY WAIVE SUCH RIGHTS OR BENEFITS PERTAINING TO THE SUBJECT MATTER OF
      THESE
      RELEASES, to connection with such waiver and relinquishment, the Parties hereby
      acknowledge that he, she or it is aware that he, his, she, her or it or its
      attorneys may hereafter discover claims or facts in addition to, or different
      from, those which they now know or believe to exist with respect to the subject
      matter of this release, but that the Parties nonetheless intend hereby to fully,
      finally and forever release all disputes and differences, known or unknown,
      suspected or unsuspected, which do now exist as to the released
      matters.

    

    5.    Insurance.    PFC
      does not
      have one or more E&O, general liability, workers' compensation and health
      insurance policies (each, a "Policy" and collectively, the "Policies") in fall
      force and effect for claims arising during the period from February 7, 2006
      and
      through the Closing Date (the "Coverage Period"). PFC will procure such policies
      prior to Closing Date.

    

    6.    Closing
      Deliverables.

    

    6.1        
      By
      the Company and Shareholder.
      At the
      Closing, the Parties, as the case may be, shall deliver (i) to PFC the
      certificates being held by the Shareholder accompanied by duly executed blank
      stock powers,

    

    6.2        
      By
      PFC.
      At the
      Closing, PFC cause to deliver a certificate that represents that it disclaims
      ownership of the Company Shares received as part of the Exchange Agreement
      and
      provide an Affidavit of Lost Certificate in form and substance satisfactory
      to
      Shareholder.

    

    7.    Indemnification.

    

    7.1        
      By
      PFC.
      PFC
      shall indemnify, defend and hold harmless the Company and the Shareholder,
      and
      their respective directors, officers, employees, agents, heirs, attorneys,
      executors, administrators, successors and assigns (each, an "Indemnified
      Party"), from and against any and all Damages incurred or suffered by any
      Indemnified Party arising put of, in connection with or resulting from any
      breach of any representation, warranty, covenant or obligation hereunder by
      PFC.

    

    7.2        
      By
      the Company and the Shareholder.
      The
      Company and the Shareholder shall indemnify, defend and hold harmless PFC and
      its directors, officers, employees, agents, attorneys, successors and assigns
      (each, an "Indemnified Party”), from and against any and all Damages incurred or
      suffered by any Indemnified Party arising out of, in connection with or
      resulting from any breach of any representation, warranty, covenant or
      obligation hereunder by the Company and the Shareholder.

    

    7.3        
      Indemnification
      Procedure.
      If
      there is asserted any claim or allegation that in the judgment of an Indemnified
      Party may give rise to any Damages, or if an Indemnified Party determines the
      existence of a potential claim or allegation whether or not the same
&&11 have been asserted, such Indemnified Party shall notify the
      Indemnifying Party within fifteen (15) business days of receipt or determination
      of such actual or potential claim or allegation; provided, however, that failure
      of the Indemnified Party to provide such timely notice to die Indemnifying
      Party
      shall not relieve the indemnifying Party of its obligations hereunder, except
      to
      the extent the Indemnifying Party is actually prejudiced by such
      failure.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    7.4        
      Definition
      of Damages.
      The
      term "Damages" as used in this Section 7 means all demands, claims, actions
      or
      causes of action, assessments, losses, damages, costs, expenses, liabilities,
      judgments, awards, fines, sanctions, penalties, charges, and amounts agreed
      by
      the Indemnifying Party to be paid in settlement, including, without limitation,
      cost6, fees and expenses of investigating and/or defending any claim or
      allegation, attorneys, experts, accountants, appraisers, consultants, witnesses,
      investigators and any other agents, The Indemnifying Party shall have the right
      to assume the sole defense of any claim or allegation as

    

    8.    
      Miscellaneous.

    

    Notices.
      All
      notices required or permitted hereunder, and under any instrument delivered
      pursuant hereto, shall be given in writing, and shall be deemed to have been
      given and received upon the earlier to occur of. (a) the actual receipt of
      any
      such notice by the intended recipient; and (b) the third business day following
      deposit of any such notice enclosed in a wrapper with postage prepaid, properly
      addressed to the intended recipient at its address set forth below, as a
      certified item, return receipt requested, in an official depository of and
      tinder the care and custody of the United States Postal Service. The parties
      address or notice shall be as follows:

    

    
      	 	
              If
                to PFC:

            	
              830-13
                A1A North, #414

            

    

    
      	 	 	
              Ponte
                Vedra Beach, FL 32082 

            

    

    
      	 	 	
              Attn:
                Paul Danner 

            

    

    
      	 	 	
              Fax:
                904-285-0606

            

    

    

    
      	 	
              If
                to the Shareholder:

            	
              6330
                S. Sandhill Rd, Suite 8

            

    

    
      	 	 	
              Las
                Vegas, Nevada 89120 

            

    

    
      	 	 	
              Attn:
                Michael Barron

            

    

    

    
      	 	
              If
                to Company:

            	
              6330
                S. Sandhill Rd., Suite 8

            

    

    
      	 	 	
              Las
                Vegas, Nevada 89120 

            

    

    
      	 	 	
              Attn:
                Michael Barron

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.1        
      Successors
      and Assigns.
      The
      terms and conditions of this Agreement shall inure to the benefit of and be
      binding upon the respective successors and assigns of the parties.

    

    8.2        
      Governing
      Law.
      This
      Agreement shall be governed by and construed under the laws
      of
      the State of Nevada without regard to its roles regarding choice of
      law.

    

    8.3        
      Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement and the
      balance of this Agreement shall be interpreted as if such provision were so
      excluded and shall be enforced in accordance with its terms.

    

    8.4        
      Survival.
      The
      representations and warranties set forth in Sections 2, and 3, and Sections
      4, 5, 7, 8.1, 8.2, 8.4, 8.5, and 8.6 shall survive the Closing
      Date.

    

    8.5        
      Entire
      Agreement.
      This
      Agreement reflects the entire agreement among the parties
      with respect to the matters set forth herein and supersedes any prior
      agreements, commitments, discussions and understandings, oral or written, with
      respect thereto.

    

    8.6        
      Attorneys'
      Fees.
      In the
      event of any action arising out of this Agreement, the prevailing
      party shall be entitled to reimbursement for its costs and expenses, including
      reasonable attorneys' fees, in connection therewith.

    

    8.7        
      Counterparts.
      This
      Agreement may be executed in multiple counterparts, each of
      which
      shall be deemed an original, but all of which together shall constitute one
      and
      the same instrument.

    

    

    [THE
      NEXT
      PAGE IS THE SIGNATURE PAGE]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed or caused their duty authorized
      representatives
      to execute this Rescission and Settlement Agreement as of the date first written
      above.

    

    
      	 	 	
              CONSUMER
                DIRECT OF AMERICA INC.

            	 
	 	 	 	 
	 	 	
              By:

            	
               /s/
                Michael Barron

            	 
	 	 	
              Name:
                Michael Barron

            	 
	 	 	
              Title:
                CEO

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
              SHEARSON
                HOME LOANS

            	 
	 	 	 	 	 
	 	 	
              By:

            	
               /s/
                Michael Barron

            	 
	 	 	
              Name:
                Michael Barron

            	 
	 	 	
              Title:
                CEO

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
              PARAGON
                FINANCIAL CORPORATION

            	 
	 	 	 	 	 
	 	 	
              By:
                

            	
              Resigned

            	 
	 	 	
              Chief
                Executive Officer and Chairman

            	 
	 	 	 	 	 
	 	 	
              By:

            	
              /s/
                Paul Danner

            	 
	 	 	
              Paul
                Danner

            	 
	 	 	
              For
                the Independent members of the Board of Directors (excludes the resigning
                members)

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1

    

    
      	
              Date

            	 	
              Description

            	 	
              Amount

            	 	
              Balance

            	 
	 	 	 	 	 	 	 	 
	
              3/16/2006

            	 	PR
              check to Scott Vininq	 	
              $

            	
              4,592.19

            	 	
              $

            	
              4,592.19

            	 
	
              3/16/2006

            	 	PR
              check to Matthew Robinson	 	 	
              2,651.48

            	 	 	
              7,243.67

            	 
	
              4/1/2006

            	 	Set
              up payroll and bank account	 	 	
              1,025.20

            	 	 	
              8,268.87

            	 
	
              2/06
                -3/06

            	 	Prime
              Zone	 	 	
              4,815.00

            	 	 	
              13,083.87

            	 
	
              3/7/2006

            	 	Travel
              expense for Scott Vining	 	 	
              557.40

            	 	 	
              13,641.27

            	 
	
              3/14/2006

            	 	Travel
              expense for Matthew Robin	 	 	
              791.70

            	 	 	
              14,432.97

            	 
	
              3/14/2006

            	 	Hampton
              Inn Hotel - Matthew Robi	 	 	
              140.61

            	 	 	
              14,573.58

            	 
	
              3/16/2006

            	 	13
              Dell Computers plus shipping	 	 	
              6,500.00

            	 	 	
              21,073.58

            	 
	 	 	 	 	 	 	 	 	 	 	 
	
               

            	 	TOTAL	 	 	 	 	
              $

            	
              21,073.58

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2

     

    

    May
      3,
      2006

    

    To
      the
      Board of Directors of Paragon Financial Corporation:

    

    Please
      accept this letter of my resignation as Chief Executive Officer and Chairman
      of
      the Board of Directors of Paragon Financial Corporation, effective upon the
      execution of the Rescission Agreement between Consumer Direct of America,
      Shearson Home Loans and Paragon Financial Corporation. My resignation is not
      the
      result of a disagreement with management or fellow members of the Board of
      Directors over any matter relating to the operations, policies or practices
      of
      Paragon.

    

    Sincerely,

    

    

    /s/
      Michael Barron

    Michael
      Barron

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    May
      3,
      2006

    

    To
      the
      Board of Directors of Paragon Financial Corporation:

    

    Please
      accept this letter of my resignation as President, In-house Counsel and a member
      of the Board of Directors of Paragon Financial Corporation, effective upon
      the
      execution of the Rescission Agreement between Consumer Direct of America,
      Shearson Home Loans and Paragon Financial Corporation. My resignation is not
      the
      result of a disagreement with management or fellow members of the Board of
      Directors over any matter relating to the operations, policies or practices
      of
      Paragon.

    

    Sincerely,

    

    

    /s/
      Joseph Cosio-Barron

    Joseph
      Cosio-Barron

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    May
      3,
      2006

    

    To
      the
      Board of Directors of Paragon Financial Corporation:

    

    Please
      accept this letter of my resignation as a member of the Board of Directors
      of
      Paragon Financial Corporation, effective upon the execution of the Rescission
      Agreement between Consumer Direct of America, Shearson Home Loans and Paragon
      Financial Corporation. My resignation is not the result of a disagreement with
      management or fellow members of the Board of Directors over any matter relating
      to the operations, policies or practices of Paragon.

    

    Sincerely,

    

    

    /s/
      Ed
      Hollander

    Ed
      Hollander

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed or caused fhear duly authorized
      representatives
      to execute this Rescission and Settlement Agreement as of the date first written
      above,

     

    
      	 	 	
              CONSUMER.
                DIRECT OF AMERICA INC.

            	 
	 	 	 	 	 
	 	 	
              SHEARSON
                HOME LOANS

            	 
	 	 	 	 
	 	 	
              By:

            	
              /s/
                Michael Barron

            	 
	 	 	
              Name:

            	
              Michael
                Barron

            	 
	 	 	
              Title:

            	CEO	 
	 	 	 	 	 
	 	 	
              PARAGON
                FINANCIAL CORPORATION

            	 
	 	 	 	 	 
	 	 	
              By:

            	 	 
	 	 	 	Chief
              Executive Officer and Chairman	 
	 	 	 	 	 
	 	 	
              By:

            	
              /s/
                Paul Danner

            	 
	 	 	 	Paul
              Danner	 
	 	 	 	For
              the Independent members of the Board of DirectorsExhibit
      10.2

    

    Form
      of Consent of Independent Registered Accounting Firm

    

    

    We
      consent to the incorporation by reference in registration Statement Nos.
      333-5932, 333-68700, 333-107537, 333-123353 and 333-136288 on Form S-8 of our
      reports issued under the firm name of Aubrey, Dixon, Riley & Turgeon, LLC
      dated February 25, 2004 relating to the financial statements of Blackstone
      Medical, Inc.

    

    

    /s/
      Aubrey,
      Dixon & Turgeon LLC

    December
      4, 2006

    Holyoke,
      Massachusetts

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]