Document:

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                                                                     Exhibit 4.8

                                                                20 November 2001

                     THE WILLIS GROUP HOLDINGS LIMITED 2001
                              BONUS AND STOCK PLAN

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1.       DEFINITIONS AND INTERPRETATION

1.1      In this Plan, unless the context otherwise requires:-

"ALLOCATION" means a conditional promise to deliver Shares for no payment upon
the terms set out in the Plan;

"AWARD DATE" in relation to an Allocation means the date on which the Board
awards the Allocation and in relation to an Option the date on which the Board
grants the Option;

"BOARD" means the board of directors of the Company or a committee appointed by
them;

"BONUS" means a cash bonus or other cash incentive for which an Employee may be
eligible in respect of a financial year of the Company;

"CHANGE IN CONTROL" means:

(i)      sale of all or substantially all of the assets of the Company or Willis
         Group to a Person or Group that is not Kohlberg Kravis Roberts & Co. or
         an affiliate thereof (collectively, the "KKR Partnerships"),

(ii)     a sale by any member of the KKR Partnerships resulting in more than 50%
         of the voting stock of the Company or Willis Group being held by a
         Person or Group that is not a member of the KKR Partnerships, or

(iii)    a merger, consolidation, recapitalisation or reorganisation of the
         Company or Willis Group with or into another Person which is not a
         member of the KKR Partnerships;

and following any of the foregoing events in (ii)-(iii), (x) the KKR
Partnerships no longer have the ability, without the approval of a Person or
Group who is not a member of the KKR Partnerships, to elect a majority of the
Board of Directors of the Company (or the resulting entity) and (y) a Person
or Group who is not a member of the KKR Partnerships is or becomes the
Beneficial Owner, directly or indirectly, in the aggregate, of a greater
percentage of the total voting power of the Company, or Willis Group than
that held, directly or indirectly, in the aggregate, by the KKR Partnerships.
For the purposes of this definition, "Beneficial Owner" shall have the same
meaning as defined in Rules 13d(3) and 13d(5) under the Exchange Act, which
shall in any event include having the power to vote (or cause to be voted)
pursuant to contract, irrevocable proxy or otherwise, and which, for purposes
of the calculation under clause (y), shall be deemed to include shares that
any such Person or Group has a right to acquire, whether such right is
exercisable immediately or only after the passage of time.

"COMPANY" means Willis Group Holdings Limited (a company incorporated in
Bermuda);

"EMPLOYEE" means an employee or director of a Participating Company;

"EXCHANGE ACT" means the Securities Exchange Act of 1934 of the United States,
as amended;

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"GROUP" means a "group" as such term is used in Sections 13(d) and 14(d) of the
Exchange Act;

"OPTION" means a right to acquire Shares upon payment of (pound)1 consideration
upon the terms set out in the Plan;

"PARTICIPANT" means a person who is awarded an RSU or acquires Bonus Investment
Shares pursuant to clause 5 of this Plan;

"PARTICIPATING COMPANY" means the Company or any Subsidiary;

"PERMANENT DISABILITY" means the Participant shall be deemed to have a
"Permanent Disability" if the Participant meets the requirements of the
definition of such term as defined in the Company's or Subsidiary's long-term
disability plan applicable to the Participant or, if no such plan is applicable,
in the event the Participant is unable by reason of physical or mental illness
or other similar disability, to perform the material duties and responsibilities
of his job for a period of 180 consecutive business days out of 270 business
days or as the Board may in its discretion determine;

"PERSON" means "person" as such term is used in Section 13(d) and 14(d) of the
Exchange Act;

"PLAN" means the Willis Group Holdings Limited 2001 Bonus and Stock Plan which
is a sub-plan of the Willis Group Holdings Limited 2001 Share Purchase and
Option Plan;

"RSU" means the Allocation or an Option determined by the Board pursuant to Rule
3.2 below and subject to the terms of the Plan;

"RSU SHARES" means any Shares which are subject to an RSU awarded under this
Plan and which have not been transferred or allotted or forfeited in accordance
with the Rules of the Plan;

"SHARES" means shares of common stock of US$0.00015 par value of the Company;

"SUBSIDIARY" means a body corporate which is a subsidiary of the Company (within
the meaning of section 86 of the Bermudan Companies Act 1981);

"VESTING DATE" means the third anniversary of the Award Date or such other date
as the Board may determine at the time of the award;

"WILLIS GROUP" means the Company and each of its subsidiaries.

1.2 Any reference in the Plan to any enactment includes a reference to that
enactment as from time to time modified extended or re-enacted.

2.       PURPOSE OF THE PLAN

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2.1      The Plan is designed to provide the Company with the ability to award
         RSUs to Employees in lieu of Bonuses and to allow Employees to acquire
         Shares using Bonuses in order to:-

         2.1.1    promote the long term financial interests and growth of the
                  Willis Group by attracting and retaining personnel with the
                  training, experience and ability to enable them to make a
                  substantial contribution to the success of Willis Group's
                  business;

         2.1.2    motivate management personnel by means of growth-related
                  incentives to achieve long range goals; and

         2.1.3    further the identity of interests of Participants with those
                  of the shareholders of the Company through opportunities for
                  increased share, or share-based, ownership in the Company.

3.       AWARDS UNDER THE PLAN

3.1      The Board may award RSUs to Employees or invite Employees to invest
         Bonuses in Shares in accordance with the terms of this Plan within the
         period during which awards may be granted under the Company's 2001
         Share Purchase and Option Plan, which expires on 3 May 2011.

3.2      When the Board awards an RSU, it shall decide whether the RSU shall
         take the form of an Allocation or an Option, and all RSUs awarded to
         Employees who are UK tax resident shall take the form of Options.

3.3      No payment for an RSU shall be made by a Participant.

3.4      The price at which all the RSU Shares may be acquired by the
         Participant on the exercise of an Option granted under the Plan shall
         be a total of (pound)1.

3.5      The Board may make such other type of award under this Plan as the
         Board may determine is appropriate for the purpose of taking account of
         a change in legislation, exchange control or regulatory treatment or to
         obtain or maintain tax or social security benefits for Participants or
         the Willis Group and the terms of any award granted under this Rule 3.5
         shall be set out in a schedule to the Plan.

4.       BONUS RSU AWARD

4.1      The Board may, in its absolute discretion, determine that a percentage
         of part of an Employee's Bonus, being such part and percentage as the
         Board may determine, shall be awarded as an RSU ("Bonus RSU") upon the
         terms set out in this Plan and upon such other terms as the Board may
         specify at the time of award.

4.2      Unless otherwise determined by the Board at the time of award, the
         number of Shares subject to a Bonus RSU shall equal the number of
         Shares which could have been

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         acquired with the amount of the Bonus (before tax and other
         required witholdings which may be applicable) in respect of which the
         Bonus RSU is awarded at the price per Share equal to the average of the
         closing price of the Shares on each of the five trading days
         immediately preceding the Award Date on the New York Stock Exchange.

5.       BONUS INVESTMENT SHARES

5.1      The Board may in its absolute discretion invite an Employee who
         receives a Bonus to acquire Shares ("Bonus Investment Shares") in the
         Company with a percentage or a part of the proceeds of his or her Bonus
         (after tax and other required withholdings have been deducted) being
         such part and percentage as the Board may determine, on the terms set
         out in this Plan and such other terms as the Board may specify prior to
         the time of acquisition.

5.2      Unless otherwise determined by the Board, the price of the Bonus
         Investment Shares which the Employee may acquire under Rule 5.1 above
         shall be the closing price of a Share on the New York Stock Exchange on
         the last trading day immediately preceding to the payment of the Bonus.

5.3      A Participant who acquires Bonus Investment Shares in accordance with
         Rule 5.1 will be the legal and beneficial owner of those Shares and
         will not forfeit those Shares in any circumstances.

5.4      A Participant will not be permitted to sell his or her Bonus Investment
         Shares until the third anniversary of the date of their acquisition or
         such other date as the Board may determine prior to their acquisition
         (the "Acquisition Date") except for:

         5.4.1    transfers to the Participant's estate upon his death;

         5.4.2    transfers to the Participant's immediate family members, a
                  trust or other entity the primary beneficiary or holder of
                  which is for or by Participant's immediate family members; and

         5.4.3    other transfers permitted by the Company
                  (e.g. financial hardship).

5.5      The transfer restrictions in Rule 5.4 above expire upon the
         Participant's termination of employment with the Willis Group for any
         reason.

6.       MATCHING RSU AWARD

6.1      The Board shall award an RSU ("Matching RSU") to each Participant in
         respect of a Bonus RSU awarded under Rule 4.1 above and an acquisition
         of Bonus Investment Shares under Rule 5.1 above, on the terms set out
         in the Plan and such other terms as the Board may specify at the time
         of the award.

6.2      The number of Shares subject to a Matching RSU shall be equal to 25% of
         the number of Shares subject to the Bonus RSU granted or the number of
         Bonus Investment Shares

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         acquired and in respect of which the Matching
         RSU is awarded, or such other percentage as the Board may in its
         absolute discretion determine prior to the Award Date of the Matching
         RSUs.

7.       DELIVERY OF SHARES AND EXERCISE OF OPTION

7.1      The delivery of RSU Shares subject to an Allocation and the exercise of
         an Option shall be effected in such form and manner as the Board from
         time to time prescribe and may be subject to such conditions as the
         Board may in its absolute discretion determine at the time of award.

7.2      Subject to Rules 7.3, 7.4, 7.5, 7.7 and Rule 8, an Option granted under
         the Plan may not be exercised nor any RSU Shares subject to an
         Allocation be delivered prior to the Vesting Date.

7.3      If any Participant dies before the Vesting Date and at a time when he
         is an Employee (or entitled to exercise Options or receive RSU Shares
         subject to Allocations by virtue of Rule 7.4 below) the following
         provisions shall apply:

         7.3.1    in the case of any Bonus RSUs, an Option may (and must if at
                  all) be exercised by his personal representatives within the
                  period of 12 months following his death and RSU Shares subject
                  to any Allocation shall be delivered to his personal
                  representatives as soon as practicable following his death;

         7.3.2    in the case of any Matching RSUs, an Option may not be
                  exercisable at all and no RSU Shares subject to any Allocation
                  shall be delivered, unless the Board shall so permit in which
                  event the Board may in its absolute discretion determine the
                  number of RSU Shares which may be so acquired or delivered and
                  such period (not exceeding 12 months) within which the Option
                  may be exercised.

7.4      If any Participant ceases to be an Employee by reason of Permanent
         Disability before the Vesting Date the following provisions shall
         apply:-

         7.4.1    in the case of any Bonus RSUs, an Option may (and must if all)
                  be exercised within the period of 6 months following such
                  cessation and RSU Shares subject to any Allocation shall be
                  delivered to him as soon as is practicable following such
                  cessation;

         7.4.2    in the case of any Matching RSUs, an Option may not be
                  exercisable at all and no RSU Shares subject to any Allocation
                  shall be delivered, unless the Board shall so permit in which
                  event the Board may in its absolute discretion determine the
                  number of RSU Shares which may be so acquired or delivered and
                  such period (not exceeding 6 months) within which the Option
                  may be exercised.

7.5      If a Participant ceases to be an Employee otherwise than as mentioned
         in Rules 7.3 and 7.4 above, the Option may not be exercised at all and
         no RSU Shares shall be delivered to him or her, unless the Board shall
         so permit in which event the Board may in its absolute

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         discretion determine the number of RSU Shares which may be so acquired
         or delivered and such period (not exceeding 6 months) within which the
         Option may be exercised.

7.6      A Participant shall not be treated for the purposes of Rules 7.4 and
         7.5 as ceasing to be an Employee until such time as he or she is no
         longer a director or employee of any of the Participating Companies.

7.7      Subject to Rule 7.3, but notwithstanding any other provision of the
         Plan, an Option granted under the Plan may not be exercised after the
         expiration of 6 months beginning with the Vesting Date (or such other
         period, not to exceed 10 years from the Award Date, as the Board may
         have determined before its grant thereof).

7.8      The Company shall allot or procure the transfer to a Participant
         (or a nominee for him or her) of the RSU Shares to which he is
         entitled, provided that:-

         7.8.1    the Board considers that the allotment or transfer thereof
                  would be lawful in all relevant jurisdictions; or

         7.8.2    in any case where a Participating Company is obliged (or would
                  suffer disadvantage if it were not to) to account for any tax
                  (in any jurisdiction) for which the person in question is
                  liable by virtue of the receipt of shares and/or for any
                  social security contributions recoverable from the person in
                  question (together, the "Tax Liability"), that person has
                  either:

                  (a)      made a payment to the Participating Company of an
                           amount of equal to the Tax Liability; or

                  (b)      entered into arrangements acceptable to that or
                           another Participating Company to secure that such a
                           payment is made (whether by authorising the sale of
                           some or all of the Shares on his behalf and the
                           payment to the Participating Company of the relevant
                           amount out of the proceeds of sale or otherwise).

8.       MERGER, CONSOLIDATION, EXCHANGE, ACQUISITION, LIQUIDATION OR
         DISSOLUTION

8.1      In its absolute discretion, and on such terms and conditions as it
         deems appropriate, the Board may provide that any RSU (including a
         Matching RSU and a Bonus RSU) shall lapse on a Change in Control, a
         merger, amalgamation pursuant to Bermudan law, or other consolidation
         of the Company or the Willis Group with or into another company, the
         exchange or all or substantially all of the assets of the Company or
         the Willis Group for the securities of another company, the acquisition
         by another Person or Group of 80% or more of the Company or the Willis
         Group then outstanding shares of voting stock or the recapitalisation,
         reclassification, liquidation or dissolution of the Company or the
         Willis Group ("Event"), and if the Board so provides, it shall on such
         terms and conditions as it deems appropriate in its absolute
         discretion, determine that the Vesting Date for all RSUs awarded under
         the Plan shall be such date prior to the occurrence of such Event as it
         may decide and that upon the occurrence of such Event such RSU shall

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         terminate and be of no further force or effect; provided, however, that
         the Board may also provide, in its absolute discretion, that even if
         the RSUs shall continue in existence following the occurrence of such
         Event, any such RSUs shall constitute an Allocation or Option over the
         kind and amount of securities and/or other property, or the cash
         equivalent thereof, receivable as a result of such Event by the holder
         of a number of Shares in the Company which was subject to the RSUs
         prior to the occurrence of such Event.

9.       VARIATION OF CAPITAL

9.1      In the event of any variation of the share capital of the Company, the
         Board may adjust the number of RSU Shares subject to Options or
         Allocations as it considers appropriate.

9.2      As soon as reasonably practicable after making any adjustment under
         Rule 9.1, the Company shall give notice in writing thereof to any
         Participant affected thereby.

10.      ALTERATIONS

10.1     Subject to Rule 10.2 below, the Board may at any time alter any of the
         provisions of this Plan, or the terms of any RSU (including a Matching
         RSU and Bonus RSU) awarded under it, in any respect, provided that no
         alteration shall be made which conflicts with the terms of the
         Company's 2001 Share Purchase and Option Plan, of which this Plan forms
         a sub-plan.

10.2     No alteration to the disadvantage of any Participant shall be made
         under Rule 10.1 unless:

         10.2.1   the Company shall have invited every such Participant to give
                  an indication as to whether or not he approves the alteration;
                  and

         10.2.2   the alteration is approved by a majority of those Participants
                  who have given such an indication.

10.3     As soon as reasonably practicable after making any alteration under
         Rule 10.1, the Company shall give notice in writing thereof to any
         Participant affected thereby.

10.4     The Board may amend, suspend or terminate the Plan at any time.

11.      MISCELLANEOUS

11.1     The rights and obligations of any individual under the terms of his or
         her office or employment with any Participating Company shall not be
         affected by his or her participation in this Plan or any right which he
         or she may have to participate therein, and an individual who
         participates therein shall waive any and all rights to compensation or
         damages in consequence of the termination of his or her office or
         employment for any reason whatsoever insofar as those rights arise or
         may arise from his or her ceasing to have rights under any RSUs under
         this Plan as a result of such termination.

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11.2     In the event of any dispute or disagreement as to the interpretation of
         this Plan, or as to any question or right arising from or related to
         this Plan, the decision of the Board shall be final and binding upon
         all persons.

11.3     Any notice or other communication under or in connection with this Plan
         may be given either:

         11.3.1   by personal delivery or by sending the same by post, in the
                  case of a company to its registered office, and in the case of
                  an individual to his last known address, or, where he or she
                  is a director or employee of a Participating Company, either
                  to his last known address or to the address of the place of
                  business at which he or she performs the whole or
                  substantially the whole of the duties of his or her office or
                  employment; or

         11.3.2   in an electronic communication to an address for the time
                  being notified for that purpose to the person giving the
                  notice.

12.      GOVERNING LAW

         This Plan shall be governed by the laws of Bermuda, without regard to
         conflicts of laws.

         20 November 2001<Page>
                               PURCHASE AGREEMENT

         This PURCHASE AGREEMENT is dated as of November 7, 2001 (the
"AGREEMENT"), between Sands Brothers & Co., Ltd., a Delaware corporation ("SANDS
BROTHERS") and BlueStone Capital Corp., a New York corporation ("BLUESTONE").

                              W I T N E S S E T H :

         WHEREAS, Bluestone desires to transfer and assign to Sands Brothers,
and Sands Brothers desires to purchase from Bluestone, the Accounts (as
hereafter defined) the Bluestone Persons (as hereafter defined) and such other
assets as are fully set forth herein, upon the terms and conditions herein
contained;

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, and intending to be legally bound hereby, the parties hereto do
hereby agree as follows:

       1. CLOSING.

          The closing of the transactions set forth herein (the "CLOSING")
shall take place at the offices of Blank Rome Tenzer Greenblatt LLP, 405
Lexington Avenue, New York, NY 10017 at 10:00 A.M., local time, on November
7, 2001, or at such other time, date and/or place as may be agreed upon by
the parties hereto. The date on which the Closing occurs is hereinafter
referred to as the "CLOSING DATE."

       2. TRANSFER OF ACCOUNTS.

          2.1. At the Closing, BlueStone shall transfer all of its right,
title and interest in and to the Accounts, and all customer and operational
files, including, without limitation, customer account agreements,
arbitration agreements, option agreements and margin agreements relating to
the Accounts (the "TRANSFERRED FILES"); PROVIDED, HOWEVER, that Sands
Brothers acknowledges that certain files relating to the Shochet Accounts (as
hereafter defined) are currently held by Shochet Securities, Inc. and Shochet
Holding Corp. (collectively, "SHOCHET"), pursuant to that certain agreement
dated August 1, 2001, as amended on August 31, 2001, among Shochet, BlueStone
and Healthstar Corp. (the "SHOCHET AGREEMENT") and attached hereto as EXHIBIT
A, and, to the extent that Sands Brothers requires access to such files,
BlueStone shall, upon written request of Sands Brothers, invoke the rights
granted to it pursuant to Section 2.1 of the Agreement to enable Sands
Brothers to obtain access to any and all of such files. BlueStone shall be
entitled access to the Transferred Files during regular business hours and
upon reasonable notice to Sands Brothers. BlueStone shall retain all
corporate and accounting files relating to the Accounts, including files
relating to past trading history of the Accounts and files and agreements
relating to any other accounts that do not constitute the Accounts (the
"RETAINED FILES"). Conversely, Sands Brothers shall be entitled to access to
the Retained Files during regular business hours and upon reasonable notice
to Bluestone. At Sands Brothers' option, BlueStone shall cause The Bank of
New York to effect an electronic, negative transfer of the Accounts to Sands
Brothers on a tape-to-tape basis. In the event that either party requires
access to any such files retained by the other party in connection with an
audit by any regulatory

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authority, the other party shall accommodate the party seeking access to such
files to enable the requesting party to comply with such audit, without
material interference with the other party's operations.

          2.2. The term "ACCOUNTS" means all of the securities brokerage
accounts of the retail and institutional clients of BlueStone as of the date
of this Agreement, including without limitation, all of the securities
brokerage accounts of retail and institutional clients (the "SHOCHET
ACCOUNTS") acquired by BlueStone from Shochet pursuant to the Shochet
Agreement. For purposes of this definition, Shochet Accounts includes any new
accounts opened on or after August 31, 2001 for which Shochet Persons (as
hereafter defined) are designated as account representatives. The terms
"BlueStone Accounts" means all Accounts which are not Shochet Accounts.
BlueStone represents that the list of all Bluestone Accounts and Shochet
Accounts previously delivered to Sands Brothers is the true, correct and
complete list of all such accounts as of the date of this Agreement,
provided, however, that the list contains duplicate accounts and inactive
accounts.

          2.3. As soon as practical, BlueStone and Sands Brothers shall
prepare a form of letter, which shall be in form and substance reasonably
satisfactory to Sands Brothers and include such information regarding
BlueStone and Sands Brothers as deemed reasonably necessary by BlueStone and
Sands Brothers, to be delivered to the holders of all Accounts advising such
holders of the transfer of the Accounts to Sands Brothers. The letter shall
be sent to all holders of the Accounts no later than five (5) calendar days
after the Closing Date (or such other number of days agreed to by Sands
Brothers and BlueStone, or such greater number as may be required by
regulatory authorities) so as to provide Account holders with notice of
account changes.

          2.4. Sands Brothers shall be under no obligation to accept any
Accounts which it believes to be unsuitable for any reason whatsoever,
including, without limitation, any margin account, any Account in a state in
which Sands Brothers is not registered or any Account with what Sands
Brothers deems to be an excessive debit balance. Sands Brothers shall not be
responsible for any margin or debit balances in any of the Accounts until the
Account is accepted by Sands Brothers.

          2.5. Notwithstanding anything herein to the contrary, Sands
Brothers shall have the right to return any of the Accounts to BlueStone (any
such Account is referred to as a "RETURNED ACCOUNT") on or prior to the 30th
day following the Closing Date, provided that Sands Brothers' reason for
returning the Account(s) relates to trades made or other events which
occurred prior to the Closing Date.

       3. TRANSFER OF REGISTERED REPRESENTATIVES AND OTHER PERSONNEL.

          3.1. BlueStone acknowledges and agrees that Sands Brothers shall be
permitted (but not obligated) to offer to hire some or all of BlueStone's
personnel (other than William Walters and Matthew Gohd) at the time of the
Closing, a list of which BlueStone personnel, including, but not limited, to
personnel currently employed by BlueStone which personnel formerly were
employed by Shochet (the "SHOCHET PERSONS" and collectively with the list of
all other BlueStone personnel, each, a "BLUESTONE PERSON" or collectively,
"BLUESTONE

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PERSONS") is set forth on Schedule 3 attached hereto. At Closing, BlueStone
shall terminate each Bluestone Person to be employed by Sands Brothers and
Sands Brothers shall have the right to offer to hire Bluestone Persons in
accordance with this Section 3.1. In accordance with its regular payroll
policies and procedures, BlueStone agrees that it shall be responsible for
all salaries, commissions and bonuses due to any BlueStone Person through the
date of termination of their employment with BlueStone. If and when such
Bluestone Persons are hired by Sands Brothers, the salary, commission, bonus
and compliance obligations of such Bluestone Persons from and after the
hiring date shall be the sole responsibility of Sands Brothers.

          3.2. BlueStone shall retain all rights it possesses under its
existing "Association Agreements" or other agreements (other than the right
to employ Bluestone Persons), including, without limitation, loans with
Bluestone Persons, rights of indemnification and non-solicitation; provided,
however, that BlueStone shall not be permitted to exercise any of such rights
(including, without limitation, the right to file claims or commence
arbitration proceedings or any other actions at law or in equity), other than
rights of indemnification and rights to collect under loans that are not
forgivable by their terms and for which repayment is not linked to continued
employment or employment performance, with respect to any Bluestone Person,
as long as such Bluestone Person remains an employee of Sands Brothers or an
affiliate or successor of Sands Brothers. True, correct and complete copies
of all "Association Agreements" and other employment and compensation
agreements between Bluestone and the Bluestone Persons have previously been
provided to Sands Brothers.

       4. TRADEMARKS AND OTHER INTELLECTUAL PROPERTY.

          At the Closing, BlueStone shall transfer and assign to Sands
Brothers all right, title and interest in and to all of trademarks,
tradenames, service marks and copyrights acquired by BlueStone pursuant to
the Shochet Agreement (including the rights to use all logos and letterhead,
the URL "Shochet.com" and any other URL's previously used by Shochet), a
complete list of which is set forth on Schedule 4 attached hereto (the
"INTANGIBLES"). BlueStone further agrees to promptly execute and file such
documents, certificates and notices reasonably requested by Sands Brothers to
effectuate such transfers, including, without limitation, with the United
States Patent and Trademark Office and with the National Association of
Securities Dealers (the "NASD"). Moreover, Bluestone shall use its
commercially reasonable efforts to cause any Shochet name changes to be
effectuated pursuant to the Shochet Agreement as soon as practicable.

       5. REAL PROPERTY AND EQUIPMENT.

          5.1. At Sands Brothers' specific request to be made at or following
the Closing, BlueStone will sublease or use commercially reasonable efforts
to assign (or cause to be subleased or assigned) to Sands Brothers all of
BlueStone's right, title and interest to any or all properties (other than
the lease relating to the officers occupied by BlueStone at 650 Fifth Avenue,
New York, New York 10019 (the "New York Lease") and those properties relating
to Shochet Leases (defined below)) where Bluestone Persons operate or conduct
retail or institutional brokerage business prior to the date hereof (the
"BLUESTONE LEASES"), at the same rent paid by BlueStone; provided, however,
that if Sands Brothers does not advise BlueStone that Sands Brothers requests
sublease or assignment of a BlueStone Lease on or before the forty-fifth
(45th) business day following the Closing, BlueStone may take such other
action as determines appropriate with respect to such BlueStone Lease(s). A
list of the Bluestone Leases is set forth

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on Schedule 5.1 attached hereto. BlueStone will use commercially reasonable
efforts, with respect to those properties, if any, requested by Sands
Brothers, to (i) assist Sands Brothers to obtain any and all applicable
consents necessary to sublease or assign the Bluestone Leases to Sands
Brothers promptly following the Closing, (ii) execute assignments of the
Bluestone Leases in substantially the form reasonably acceptable to Sands
Brothers, and (iii) assist Sands Brothers to obtain landlord estoppel
certificates relating to the Bluestone Leases in substantially the form
reasonably acceptable to Sands Brothers (the documents referred to in the
preceding clauses (i) (ii) and (iii) collectively referred to as the
"Landlord Documents"), and will assign to Sands Brothers its rights to the
security deposits relating to such Bluestone Leases.

          5.2. With respect to Shochet Leases (as defined in the Shochet
Agreement) in which (i) BlueStone is currently paying (or has the right to
pay) the monthly rental payments provided thereunder as set forth in Section
7 of the Amendment and Supplement to the Shochet Agreement dated as of August
31, 2001 (the "Shochet Amendment") and (ii) Sands Brothers desires to occupy
such property following the Closing, BlueStone agrees (to the extent it has
the right to do so) to permit Sands Brothers to use the properties under such
Shochet Leases and Sands Brothers agrees to (i) pay the monthly rental
payments provided for under such Shochet Leases directly to the lessor for as
long as Sands Brothers occupies such property and (ii) send confirmation to
Shochet of each such payment within five (5) business days of each such
payment.

          5.3. At Sands Brothers' specific request to be made at or within
forty-five (45) business days following the Closing, BlueStone will transfer
or assign to Sands Brothers any or all of the specific furniture, fixtures
and telephone and computer equipment relating to the properties covered by
the Bluestone Leases (the "BLUESTONE EQUIPMENT") which is so requested by
Sands Brothers and all rights relating to the Bluestone Equipment in
accordance with this Section 5. A list of the Bluestone Equipment and leases
pertaining to any Bluestone Equipment ("BLUESTONE EQUIPMENT LEASES") is set
forth on Schedule 5.3 attached hereto.

          5.4. With respect to Shochet Equipment Leases (as defined in the
Shochet Agreement) in which (i) BlueStone is currently paying (or has the right
to pay) the monthly rental payments provided thereunder as provided in Section 9
of the Shochet Amendment and (ii) Sands Brothers desires to use the equipment
subject to said leases, BlueStone agrees (to the extent it has the right to do
so) to permit Sands Brothers to use the equipment under such Shochet Equipment
Leases and Sands Brothers agrees to pay the monthly rental payments provided for
under such Shochet Equipment Leases directly to the lessor for as long as Sands
Brothers uses such property.

          5.5. To the extent requests are made by Sands Brothers respecting
assignments or subleases of Bluestone Leases, BlueStone and Sands Brothers will
allocate rent and utility charges relating to such properties as of the date of
that Sands commences occupying such properties ("OCCUPANCY DATE") and will remit
any amounts due as a result of such allocation at such time. On the applicable
Occupancy Dates, if any, Sands Brothers shall pay to BlueStone an amount equal
to the security deposits held by the landlords of the properties assigned or
sublet to Sands Brothers under Section 5.1.

       6. INDEMNIFICATION AGREEMENT.  Upon the Closing, all of BlueStone's
rights to

                                       -4-
<Page>

indemnification against Shochet pursuant to Section 22(a) of the Shochet
Agreement shall be assigned to Sands Brothers.

       7. CONSIDERATION.  As consideration for the transactions described in
Sections 2 through 5 of this Agreement (the "TRANSACTION"):

          7.1. Sands Brothers shall pay BlueStone a sum of One Million Seventy
Five Thousand Dollars ($1,075,000) in immediately available funds (the "PURCHASE
PRICE").

       8. NO ASSUMPTION OF LIABILITIES; EXCLUDED ASSETS.  BlueStone
acknowledges that, except with respect to assuming and performing (i) Sands
Brothers' obligations, if any, after the Closing under the Bluestone Leases
and the Bluestone Equipment Leases set forth on Schedules 5.1 and 5.3
attached hereto and (ii) the obligations set forth in Section 8, Sands
Brothers shall not assume any liabilities, expenses, debts or obligations of
BlueStone, contingent or absolute, known or unknown, including, without
limitation, any Litigation Liabilities. "LITIGATION LIABILITIES" means any
debts, obligations or liabilities arising from or relating to pending,
threatened and unasserted claims (including, without limitation, customer
complaints), litigation, legal actions, counterclaims, suits or arbitration
or other legal, administrative or tax proceedings against BlueStone or
Shochet. BlueStone further acknowledges that Sands Brothers shall not acquire
any assets of BlueStone (other than the Accounts, Bluestone Persons, and, if
acquired, Bluestone Equipment, Bluestone Leases and Bluestone Equipment
Leases), including, without limitation, BlueStone's cash, securities
(including marketable securities, options, warrants and other derivative
securities), goodwill and litigation rights (the "EXCLUDED ASSETS").

       9. RESTRICTIONS ON TRANSFER OF SHOCHET ACCOUNTS BY SANDS BROTHERS.
Sands Brothers agrees that it shall not transfer any of the Shochet Accounts
(unless directed by the client or required by law, rule, regulation, consent,
order or decree or any government agency or regulatory authority), in
connection with a sale of all or substantially all of its assets or otherwise
until September 1, 2004 unless the party to which the Accounts and the New
Accounts are transferred assumes Sands Brothers' obligations under this
Section 8 and the obligations of BlueStone under Section 10 of the Shochet
Agreement which are expressly assumed by Sands Brothers.

      10. NON-SOLICITATION.  BlueStone covenants and agrees to and shall
cause each of its affiliates, subsidiaries, officers, directors,
shareholders, control persons, employees, agents and representatives not to
solicit, employ or otherwise entice away from Sands Brothers or any of Sands
Brothers' affiliates or subsidiaries any Bluestone Persons or any Accounts or
New Accounts for a three (3)-year period following the Closing Date;
PROVIDED, HOWEVER, that this Section 10 shall not apply to solicitation by
William Walters and Matthew Gohd of those accounts for which William Walters
or Matthew Gohd are the designated account representative (which accounts are
set forth on Schedule 10 annexed hereto).

      11. ANNOUNCEMENTS.  Upon the signing of this Agreement, the parties
hereto shall issue a joint press release announcing the Transaction.

      12. NO FINDER'S FEE.  Each party hereto represents and warrants that it
has done nothing to incur any obligation or liability for a finder's fee,
commission, brokerage fee or like

                                       -5-
<Page>

payment in connection with the Transaction that is the responsibility of the
other party.

      13. REPRESENTATIONS AND WARRANTIES OF BLUESTONE.  BlueStone represents
and warrants to Sands Brothers as follows:

          13.1. BlueStone is a corporation duly organized, validly existing
and in good standing under the laws of the State of New York, with full
corporate power and corporate authority to (i) own, lease and operate its
properties, (ii) carry on its business as currently conducted and (iii)
execute and deliver, and perform under this Agreement and each other
agreement and instrument to be executed and delivered by it pursuant hereto.

          13.2. The execution and delivery by BlueStone of this Agreement,
the performance by BlueStone of its obligations hereunder, and the
consummation of the transactions contemplated hereby have been duly and
validly authorized by all necessary corporate action on the part of BlueStone
(including, but not limited to, the approval of the Board of Directors of
BlueStone) and BlueStone has all necessary corporate power and corporate
authority with respect thereto. This Agreement constitutes the valid and
binding obligation of BlueStone in accordance with its terms, except as the
same may be limited by bankruptcy, insolvency, reorganization, moratorium or
other laws affecting the rights of creditors generally and subject to the
rules of law governing (and all limitations on) specific performance,
injunctive relief, and other equitable remedies.

          13.3. Except as set forth on Schedule 13.3 attached hereto, the
execution, delivery and performance of this Agreement and compliance with the
provisions hereof and the consummation of the transactions contemplated
hereby by BlueStone, do not and will not, with or without the passage of time
or the giving of notice or both, conflict with or result in any breach of any
of the terms, conditions or provisions of, or constitute a default (or give
rise to any right of termination, cancellation or acceleration) under, or
result in the creation of any lien, security interest, charge or encumbrance
upon any of the properties or assets of BlueStone under its Certificate of
Incorporation or By-laws or any other agreement to which it is a party or any
law, order, rule, regulation, order or judgment of any governmental authority.

          13.4. BlueStone has good and marketable title to all of the
BlueStone Equipment, free and clear of all liens, claims, security interests,
pledges, mortgages, charges and encumbrances of any nature whatsoever, except
to the extent that certain of the BlueStone Equipment is subject to the
Bluestone Equipment Leases or Shochet Equipment Leases and except where the
failure to have such title would not have a material effect on the value or
intended use by Sands Brothers of the Bluestone Equipment, if so acquired.
All Bluestone Equipment is being sold "as is."

          13.5. Except (i) filings of form U-4s by Sands Brothers and U-5's
by BlueStone relating to the BlueStone Persons, (ii) any consents required
under the BlueStone Leases, Shochet Leases, Bluestone Equipment Leases and
Shochet Equipment Leases, and (iii) any notice or filing required to be given
to the NASD for the transfer of the Accounts and/or Shochets Persons, no
consent, approval, notice, qualification, order or authentication of, or
filing with, any governmental authority or self-regulatory organization or
any of BlueStone's stockholders, lenders or other creditors is required in
connection with BlueStone's valid

                                       -6-
<Page>

execution, delivery and performance of this Agreement and all other documents
in connection herewith, except which has been received.

          13.6. Except as set forth on Schedule 13.6 attached hereto,
BlueStone represents that it retains all liabilities and obligations, whether
contingent, fixed or potential, relating to (i) the Accounts, Bluestone
Persons, Intangibles, properties relating to the Bluestone Leases or the
Bluestone Equipment, including, without limitation, Litigation Liabilities,
through the Closing Date (other than margin balances) (ii) the Returned
Accounts through the Closing Date and after such Accounts are returned and
(iii) any other liabilities and obligations of BlueStone not related to the
matters covered by clauses (i) and (ii) above, whether before or after the
Closing Date.

          13.7. BlueStone has not received any notice that it has or may have
infringed or is infringing upon the rights of others with respect to the
Intangibles. BlueStone has not received any notice of conflict with the
asserted rights of others with respect to the Intangibles (and BlueStone
knows of no basis therefor), and, except that Shochet has not satisfied its
obligations with respect to the Intangibles (as defined in the Shochet
Agreement), to BlueStone's knowledge, no others have infringed upon the
Intangibles.

      14. REPRESENTATIONS AND WARRANTIES OF SANDS BROTHERS.  Sands Brothers
represents and warrants to BlueStone as follows:

          14.1. Sands Brothers is a corporation duly organized validly
existing and in good standing under the laws of the State of Delaware with
full corporate power and corporate authority to (i) own, lease and operate
its properties, (ii) carry on its business as currently conducted by it and
(iii) execute and deliver, and perform under this Agreement and each other
agreement and instrument to be executed and delivered by it pursuant hereto.

          14.2. The execution and delivery by Sands Brothers of this
Agreement, the performance by Sands Brothers of its obligations hereunder,
and the consummation of the transactions contemplated hereby, have been duly
and validly authorized by all necessary corporate action on the part of Sands
Brothers, and Sands Brothers has all necessary corporate power and corporate
authority with respect thereto. This Agreement constitutes the valid and
binding obligation of Sands Brothers in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency, reorganization, moratorium
or other laws affecting the rights of creditors generally and subject to the
rules of law governing (and all limitations on) specific performance,
injunctive relief, and other equitable remedies.

      15. INDEMNIFICATION.

              (a) BlueStone hereby indemnifies and agrees to defend and hold
harmless Sands Brothers and its respective officers, directors and employees
from and against any and all losses, obligations, deficiencies, liabilities,
claims, damages, costs and expenses (including, without limitation, the
amount of any settlement entered into pursuant hereto, and all reasonable
legal and other expenses incurred in connection with the investigation,
prosecution or defense of any matter indemnified pursuant hereto) which it
may sustain, suffer or incur and which arise out of, are caused by, relate
to, or result or occur from or in connection with: (i) the Accounts, with
respect to activity occurring prior to the date such Accounts are transferred
by BlueStone's

                                       -7-
<Page>

clearing agent and accepted by Sands Brothers in accordance with Section 19
below, and the Returned Accounts, with respect to activity from and after the
date such Accounts are returned to BlueStone in accordance with Section 2.5;
(ii) supervisory obligations with respect to any Bluestone Persons relating
to activity of such Bluestone Persons prior to the date such Bluestone Person
is transferred on the books of the NASD in accordance with Section 19 below;
(iii) any misrepresentation or omission of a material fact contained in any
representation or warranty of BlueStone contained herein; (iv) any breach or
failure by BlueStone to comply with, perform or discharge any obligation,
agreement or covenant contained in this Agreement; (v) any securities
brokerage accounts of the retail and institutional clients of BlueStone not
constituting Accounts; and (vi) any and all liabilities of BlueStone (whether
absolute or contingent, known or unknown), other than those liabilities
expressly assumed by Sands Brothers herein.

              (b) Sands Brothers hereby indemnifies and agrees to defend and
hold harmless BlueStone and its officers, directors and employees from and
against any and all losses, obligations, deficiencies, liabilities, claims,
damages, costs and expenses (including, without limitation, the amount of any
settlement entered into pursuant hereto, and all reasonable legal and other
expenses incurred in connection with the investigation, prosecution or
defense of any matter indemnified pursuant hereto), which it may sustain,
suffer or incur and which arise out of, are caused by, relate to, or result
or occur from or in connection with: (i) the Accounts, with respect to
activity occurring from and after the date such Accounts are transferred by
BlueStone's clearing agent and accepted by Sands Brothers in accordance with
Section 19 below; (ii) supervisory obligations with respect to any Bluestone
Persons relating to activity of such Bluestone Persons after the date such
Bluestone Person is transferred on the books of the NASD in accordance with
Section 19 below; (iii) any misrepresentation or omission of a material fact
contained in any representation or warranty of Sands Brothers contained
herein; or (iv) any breach or failure by Sands Brothers to comply with,
perform or discharge any obligation, agreement or covenant contained in this
Agreement.

               (c) If a claim by a third party is made against any party or
parties hereto and the party or parties against whom said claim is made
intends to seek indemnification with respect thereto under Sections 14(a) or
14(b), the party or parties seeking such indemnification shall promptly
notify the indemnifying party or parties, in writing, of such claim;
provided, however, that the failure to give such notice shall not affect the
rights of the indemnified party or parties hereunder except to the extent
that such failure materially and adversely affects the indemnifying party or
parties due to the inability to timely defend such action. The indemnifying
party or parties shall have ten (10) business days after said notice is given
to elect, by written notice given to the indemnified party or parties, to
undertake, conduct and control, through counsel of their own choosing
(subject to the consent of the indemnified party or parties, such consent not
to be unreasonably withheld) and at their sole risk and expense, the good
faith settlement or defense of such claim, and the indemnified party or
parties shall cooperate with the indemnifying parties in connection
therewith; provided that all settlements require the prior reasonable
consultation with the indemnified party and the prior written consent of the
indemnified party (unless it contains a general release of the indemnified
party), which consent shall not be unreasonably withheld. Notwithstanding the
indemnifying party's election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ
separate counsel (including one local counsel), and the indemnifying party
shall bear the reasonable fees, costs and expenses of such separate counsel
(and one local counsel) if (i) the use of counsel

                                       -8-
<Page>

chosen by the indemnifying party to represent the indemnified party would, in
the indemnified party's reasonable judgment, present such counsel with a
conflict of interest, (ii) the actual or potential defendants in, or targets
of, any such action include both the indemnified party and the indemnifying
party and the indemnified party shall have reasonably concluded that there
may be legal defenses available to it and/or other indemnified parties which
are different from or additional to those available to the indemnifying
party, (iii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of the institution of such action or
(iv) the indemnifying party shall authorize the indemnified party to employ
separate counsel at the expense of the indemnifying party. So long as the
indemnifying party or parties are contesting any such claim in good faith,
the indemnified party or parties shall not pay or settle any such claim;
provided, however, that notwithstanding the foregoing, the indemnified party
or parties shall have the right to pay or settle any such claim at any time,
provided that in such event they shall waive any right of indemnification
therefor by the indemnifying party or parties. If the indemnifying party or
parties do not make a timely election to undertake the good faith defense or
settlement of the claim as aforesaid, or if the indemnifying parties fail to
proceed with the good faith defense or settlement of the matter after making
such election, then, in either such event, the indemnified party or parties
shall have the right to contest, settle or compromise the claim.

              (d) Regardless of which party is controlling the defense of any
claim, each party shall act in good faith and shall provide reasonable
documents and cooperation to the party handling the defense.

               (e) Notwithstanding anything herein to the contrary in this
Section 15, in no event shall (x) the indemnification by BlueStone under
clauses (iii) and (iv) of Section 15(a) or (y) the indemnification of Sands
Brothers under clause (iii) of Section 15(b) exceed $1,325,000.

      16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.  Each of the parties
hereto hereby agrees that the representations and warranties made by or on
behalf of each party in this Agreement or in any document or instrument
delivered pursuant hereto shall survive the execution hereof for a period of
one (1) year.

      17. CONDUCT OF BUSINESS.  Prior to the Closing Date, (i) BlueStone
shall conduct its business only in the ordinary course, (ii) BlueStone shall
use its best efforts to maintain the value of its business as a going
concern, (iii) BlueStone shall not sell, transfer or otherwise dispose of any
of the assets without the prior written consent of Sands Brothers, (iv)
BlueStone shall not transfer any of the Accounts without the prior written
consent of Sands Brothers, except upon receipt of instructions from a client,
and (v) BlueStone shall not terminate any of the BlueStone Leases set forth
on Schedule 5.1 attached hereto without the prior written consent of Sands
Brothers.

      18. CONDITIONS TO OBLIGATIONS OF SANDS BROTHERS.   The obligations of
Sands Brothers shall be subject to the satisfaction of each of the following
conditions, or written waiver by Sands Brothers thereof:

                                       -9-
<Page>

          18.1. BlueStone shall have performed in all material respects each of
the agreements and covenants made by them in this Agreement and required to be
performed on or prior to the Closing Date;

          18.2. The representations and warranties of BlueStone contained herein
shall be true, complete and correct in all material respects at and as of the
Closing Date, as if made at such date, except for the passage of time;

          18.3. There exists no order, judgment, decree, injunction,
consents, citations, rulings, determinations, verdicts (the "ORDER") entered,
issued or made, to which the Accounts, Bluestone Persons, Intangibles,
properties relating to the Bluestone Leases or the Bluestone Equipment are
subject or which restrains or prohibits the Transaction, and no claim, suit,
action, inquiry, investigation or proceeding in which it shall be, or it is,
sought to restrain, prohibit or change the terms of or obtain damages or
other relief in connection with this Agreement or the Transaction, has been
instituted or threatened by any person or entity, and which, in the
reasonable judgment of Sands Brothers (based on the likelihood of success and
material consequences of such claim, suit, action, inquiry or proceeding),
makes it impossible to proceed with the consummation of the Transaction in
all material respects;

          18.4. Sands Brothers shall have received an opinion of Blank Rome
Tenzer Greenblatt LLP, counsel to Bluestone, in substantially the form of
EXHIBIT B attached hereto;

          18.5. BlueStone shall have provided Sands Brothers with such other
documents as Sands Brothers may reasonably request and which are customarily
reviewed in connection with transactions of this type;

          18.6. All regulatory approvals necessary to consummate the Transaction
shall have been obtained by the Closing Date; and

          18.7. BlueStone shall have provided Sands Brothers with an
agreement, in the form attached as Exhibit D hereto, dated as of the Closing
Date by and among BlueStone, BlueStone Holdings Corp., Sands Brothers and
Shochet (the "FEE AGREEMENT") evidencing settlement of payment of the Fee (as
defined in and under the terms of the Shochet Agreement), which agreement,
among other things, (i) shall release Sands Brothers from payment of the Fee
and assumption of any and all liabilities relating to payment of the Fee,
(ii) shall release Sands Brothers from the transfer restrictions in Section
11 of the Shochet Agreement relating to the Fee and (iii) shall, at Sands'
option, sublease or assign (or cause to be subleased or assigned) to Sands,
all of Shochet's right, title and interest under certain leases set forth on
a schedule attached thereto.

      19. CONDITIONS TO OBLIGATIONS OF BLUESTONE.  The obligations of
BlueStone shall be the subject of the satisfaction of each of the following
conditions, or written waiver by BlueStone thereof:

          19.1. Sands Brothers shall have performed in all material respects
each of the agreements and covenants made by it in this Agreement and
required to be performed on or prior to the Closing Date;

                                       -10-
<Page>

          19.2. The representations and warranties of Sands Brothers
contained herein shall be true, complete and correct in all material respects
at and as of the Closing Date, as if made at such date, except for the
passage of time;

          19.3. There exists no Order entered, issued or made, which
restrains or prohibits the Transaction, and no claim, suit, action, inquiry,
investigation or proceeding in which it shall be, or it is, sought to
restrain, prohibit or change the terms of or obtain damages or other relief
in connection with this Agreement or the Transaction, has been instituted or
threatened by any person or entity, and which, in the reasonable judgment of
BlueStone (based on the likelihood of success and material consequences of
such claim, suit, action, inquiry or proceeding), makes it impossible to
proceed with the consummation of the Transaction in all material respects; and

          19.4. Bluestone shall have received an opinion of Littman Krooks &
Roth P.C., counsel to Sands Brothers, in substantially the form of EXHIBIT C
attached hereto;

          19.5. All regulatory approvals necessary to consummate the
Transaction shall have been obtained by the Closing Date; and

          19.6.    Sands Brothers shall execute the Fee Agreement.

      20. EFFECTIVENESS OF AGREEMENT.  This Agreement shall be effective as
of the date hereof. It is recognized that no more than ninety (90) days shall
be required for the Bluestone Persons to be transferred on the books of the
NASD and the Accounts to be transferred by BlueStone's clearing agent and
accepted by Sands Brothers. Accordingly, BlueStone agrees that Sands Brothers
shall have no supervisory responsibility over such Bluestone Persons or any
liability with respect to such Accounts, including, without limitation, for
margin or debit balances in such Accounts, until they are so transferred and
accepted by Sands Brothers.

      21. NECESSARY ACTION.  Each party hereto agrees to use all reasonable
efforts to take or cause to be taken all actions, and to do or cause to be
done, and to assist and cooperate with the other parties in doing, all things
necessary, proper or advisable to expeditiously consummate and make effective
the transactions contemplated by this Agreement, including, without
limitation, the making of any filings with, and the procurement of any
authorizations and consents from, regulatory agencies or other persons or
entities.

      22. GENERAL PROVISIONS.

          22.1. All notices and other communications given or made pursuant
hereto shall be in writing and shall be deemed to have been duly given or
made upon receipt if delivered personally, by overnight courier or mailed by
overnight express mail, (postage prepaid) or by facsimile transmittal,
confirmed by express mail or overnight courier, to the parties at the
following addresses (or at such other address for a party as shall be
specified by like notice, except that notices of changes of address shall be
effective upon receipt):

        If to Sands Brothers:            Sands Brothers & Co., Ltd.
                                         90 Park Avenue, 39th Floor
                                         New York, New York 10016
                                         Attn.: Steven B. Sands, Co-Chairman

                                       -11-
<Page>

                                         with a copy to:

                                         Littman Krooks & Roth P.C.
                                         655 Third Avenue, 20th Floor
                                         New York, New York 10017
                                         Attn.: Mitchell C. Littman, Esq.

        If to BlueStone:                 BlueStone Capital Corp.
                                         650 Fifth Avenue
                                         New York, New York 10019
                                         Attn:  William G. Walters, Co-Chairman

                                         with a copy to:

                                         Blank Rome Tenzer Greenblatt LLP
                                         405 Lexington Avenue
                                         New York, New York 10174
                                         Attn:  Brad L. Shiffman, Esq.

          22.2. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law, or public policy,
all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner adverse to
any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the
end that transactions contemplated hereby are fulfilled to the greatest
extent possible.

          22.3. This Agreement constitutes the entire agreement, and
supersedes all prior agreements and undertakings, both written and oral,
among the parties, or any of them, with respect to the subject matter hereof,
except for the last two sentences of Section 3 of the letter of intent
between Sands Brothers and BlueStone dated October 31, 2001 which shall
survive until the Closing and remain in full force and effect.

          22.4. This Agreement may not be amended except by an instrument in
writing signed by each of the parties hereto.

          22.5. This Agreement shall not be assigned by operation of law or
otherwise, and any assignment shall be null and void.

          22.6. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to its
choice of law principles. Any disputes, claims or controversies arising out
of this Agreement or any breach thereof shall be submitted to final and
binding arbitration in New York, New York, and be determined in accordance
with the

                                       -12-
<Page>

rules of the NASD then in effect in the City of New York. Judgment
upon the decision reached by the arbitrator may be entered in any court
having jurisdiction.

          22.7. Headings in this Agreement are included herein for
convenience of reference only and shall not constitute part of this Agreement
for any other purpose.

          22.8. This Agreement may be executed in one or more counterparts
and by facsimile transmission and by the different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an
original, but all of which taken together shall constitute one and the same
agreement.

                                       -13-
<Page>

         IN WITNESS WHEREOF, Sands Brothers and BlueStone have each caused this
Agreement to be executed as of the date first written above.

                                            SANDS BROTHERS AND CO., LTD.

                                            By: /s/ STEVEN B. SANDS
                                               ---------------------------------
                                                    Steven B. Sands
                                                    Co-Chairman and Co-CEO

                                            By: /s/ MARTIN S. SANDS
                                               ---------------------------------
                                                    Martin S. Sands
                                                    Co-Chairman and Co-CEO

                                            BLUESTONE CAPITAL CORP.

                                            By: /s/ WILLIAM G. WALTERS
                                               ---------------------------------
                                                    William G. Walters
                                                    Co-Chairman

                                            By: /s/ MATTHEW GOHD
                                               ---------------------------------
                                                    Matthew Gohd
                                                    Co-Chairman

                                       -14-

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