Document:

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                              EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of the 1st day of
September, 1999, between First Colonial Securities Holding Corp., a Delaware
corporation ("Employer" or "The Company"), and Ben Lichtenberg, an individual
("Employee" or "You").

Employer is a corporation which, through its subsidiaries is engaged in the
securities and related businesses throughout the United States from its
principal office location at 1499 W. Palmetto Park Road, Suite 312, Boca Raton,
Florida 33486 (the "Office"). Employer wishes to employ Employee to provide
certain services to Employer and Employee is willing to be employed by Employer
to render such services, all in accordance with the terms and conditions
specified below and in accordance with all applicable federal and state
statutes, rules and regulations then in effect.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained, the parties hereto agree as follows:

1. Engagement. Employer does hereby employ and engage Employee as Vice Chairman
and Executive Vice President of Employer and Employee does hereby accept and
agree to such employment and engagement.

2. Term. Except as otherwise provided herein, the term of this Agreement shall
be for a period of three (3) years (the "Initial Term"), and thereafter eligible
for renewal in the sole discretion of Employer for an additional term of one (1)
year unless earlier terminated as provided for herein.

3. Compensation:

    3.1 Base Salary. Employer shall pay Employee, and Employee agrees to accept
    from Employer as payment in full for Employee's services hereunder, a base
    salary of $150,000 per year (the "Base Salary"), payable in accordance with
    the regular payroll of Employer during the term of this Agreement.

    3.2 Bonus. In addition to such Base Salary, Employee shall be entitled to
    participate in a bonus program established for senior executives of the
    firm. Such bonus shall be accrued throughout the Initial Term and each
    renewal term and shall be calculated and payable not less than 90 days after
    the end of Employer's fiscal year. A bonus pool will be based on attaining
    certain annual gross revenues levels starting for the year ending
    12/31/2000, pursuant to the following schedule:

                         Revenues                 Bonus as a
                         --------                % of Revenue*
                         (Millions)              --------------

       Year 2000          20-22                      1
                          22-25                      1 3/4
                          25-                        2 1/4
       Year 2001          25-32.5                    1 1/2
                          32.5-40                    2 1/2
                          40+                        3
       Year 2002          40-50                      1 1/2
                          50-60                      2 1/2
                          60+                        3 1/4
       *Not Retroactive

Employee shall be entitled to 30% of such bonus pool

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    3.3 Stock Options. Employee will be eligible for future option grants from
    any option program created for the benefit of its employees, in such amount
    as is determined by the Board of Directors or such committee appointed
    thereby.

4. Vacation. Employee shall be entitled to an annual vacation, without loss of
compensation, in accordance with Employer's existing vacation schedule. Vacation
scheduling shall be coordinated with Employer and in accordance with established
Office procedures so as not to disrupt the continuity of the business. Accrued
vacation not taken at the end of the year in which days have been accrued
automatically will be forfeited.

5. Health Benefits and Retirement Plans. Employee shall be entitled to
participate in such health benefits and retirement plans as are made available
by Employer to its employees on a usual and customary basis. See attachment.

6. Confidential Information. Employee acknowledges and agrees that he will have
access to certain confidential information of the Employer and that such
information constitutes valuable, special and unique property of Employer.
Employee further acknowledges and agrees that Employee will not, at any time
during or after the term hereof, in any fashion, form or manner, either directly
or indirectly, divulge, disclose or communicate to any person, firm, or
corporation, in any manner whatsoever, the terms and conditions of this
Agreement or any information of any kind, nature or description concerning any
matters affecting or relating to the business of the Employer ("Confidential
Information").

7. Client Information. Employee agrees that (i) all client names, addresses,
telephone numbers, files, and records (collectively, "Client Records") are and
shall remain in the custody and control of Employer, and, except as necessary
and permitted for purposes directly related to the operation of the Office or
proper client service, or as authorized and required by law or client consent,
Employee shall not remove, copy, transfer, or transmit to any person, natural or
corporate, any Client Records at any time; and (11) an actual or attempted
violation of any provision of this Section by Employee, either directly or
indirectly, shall be grounds for immediate termination of this Agreement.

Employee recognizes and agrees that a violation of any of the provisions
contained in this Section may cause irreparable damage to Employer, the exact
amount of which may be impossible to ascertain, and that, for such reason, among
others, Employer shall be entitled to any injunction without the necessity of
posting bond therefor in order to restrain any further violation of such
provision. Such right to an injunction shall be in addition to, and not in
limitation of, any other rights and remedies Employer may have against Employee,
including, but not limited to, the recovery of damages. The terms and conditions
of this Section shall survive termination of this Agreement.

8. Non-Competition Agreement. Employee agrees that during the term of this
Agreement and for a period of one (1) year thereafter, Employee shall not
directly or indirectly compete with the business of Employer, or own, directly
or indirectly, any part of or become the employee of, or otherwise render
services to, any enterprise which directly or indirectly competes with the
business of Employer.

9. Covenant Not To Solicit. Employee agrees that, during the term of this
Agreement and for a period of one (1) year thereafter, Employee shall not (i)
solicit, encourage or

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advise clients serviced during the term of this Agreement at the Office (any
other office location at which Employer operates during the term of this
Agreement) to obtain or seek service from any entity other than Employer, or
(ii) solicit, encourage or advise any employees of Employer to terminate
employment with Employer for any reason whatsoever. Employee recognizes and
agrees that the limitations set forth in this Section and Section 8 are
reasonable and necessary for the protection of the goodwill of the business of
Employer. Employee further recognizes and agrees that a violation of any of the
provisions contained in either section will cause irreparable damage to
Employer, the exact amount of which may be impossible to ascertain, and that,
for such reason, among others, Employers shall be entitled to an injunction
without the necessity of posting bond thereof in order to restrain any further
violations of such provision. Such right to any injunction shall be in addition
to, and not in limitation of, any other rights and remedies Employer may have
against Employee, including, but not limited to, the recovery of damages. As
used herein, the term "client" shall include any and all clients services at the
office, or any other office location at which Employer operates during the term
of this Agreement. The terms and conditions of this Section and Section 8 shall
survive termination of this Agreement.

10. Representations and Warranties. Employee represents and warrants that he (i)
is not subject to any restriction that would prohibit entering into this
Agreement, is fully able to perform each of the terms, conditions and covenants
hereof, and is not restricted or prohibited from entering into or performing any
of the terms or conditions hereof; and (ii) is able to execute and perform
under this Agreement without violating or breaching any agreement between
Employee and any other person or entity.

Employee acknowledges and agrees that the truth and accuracy of the
representations and warranties contained herein constitute a condition precedent
to Employer's obligation to provide compensation pursuant to the terms and
conditions of this Agreement.

11. Indemnity. Employee hereby agrees to indemnify, defend and hold Employer
harmless from and against any and all costs, losses, claims, demands and
liabilities, including reasonable attorneys' fees and costs, which arise out of
or relate to any breach by Employee of any of the terms or conditions of this
Agreement; any negligent or intentional wrongful act of Employee; any act or
omission of Employee which constitutes negligence; or any other act of Employee
not authorized under the terms of this Agreement. If Employer or any of its
shareholders or affiliates is made a party to any litigation or obligation or
otherwise incurs any loss or expense as a result of Employee's activities
unconnected with Employer's business at the Office, Employee shall forthwith
upon demand reimburse Employer or such individuals for any and all expenses
incurred as a result thereof The terms and conditions of this Section shall
survive termination of this Agreement.

12. Termination by Employer. Employer, by a vote of not less than 75% of its
Board of Directors, shall have the right to terminate Employee's employment only
for cause, and except as provided below without notice, as follows: Cause shall
be defined as (i) the death of Employee, (ii) the material failure of Employee
to discharge his employment obligations as reasonably directed by Employer
(which direction shall be in writing and for which Employee shall have fourteen
(14) days to cure such material failure), (iii) conviction of Employee of a
non-traffic related felony or conduct which involves moral turpitude, or (iv)
fraud, embezzlement or theft by Employee of funds belonging to Employer or any
of its subsidiaries or their respective clients. In addition, Employer may

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terminate Employee's employment hereunder forthwith upon, or at any time after,
an event of material non-performance of his duties as an employee because of a
disability for which Employer can make no reasonable accommodation. The term
"disability" shall mean, for purposes of this Agreement, the inability of
Employee to perform full-time regular duties as contemplated hereunder on
account of a physical or mental condition for a period of 90 consecutive days,
but shall exclude infrequent and temporary incapacity due to ordinary illness.
With respect to subsections (ii), (iii) and (iv), above, prior to the effective
date of any termination, Employee shall have the opportunity to present a
defense thereto before a full meeting of Employer's Board of Directors, with
counsel of his own choosing.

    12.1 Severance. In the event the Term is not renewed, Employee shall be paid
    a severance payment amount equal to 200% of his then current Base Salary and
    his accrued but unpaid bonus over the one year period following such
    termination.

    12.2 Termination Following a Change in Control. If a Change in Control
    occurs and employee's employment is terminated by the Company without Cause
    other than for Disability or you voluntarily terminate employee's employment
    with the Company, during the period from the date of the Change in Control
    to two (2) years after date of such Change in Control, the employee shall be
    entitled to the amounts and benefits provided below upon such termination.

         12.2.1 Compensation on Termination. In the event of a Change in
         Control, the Company shall pay and provide to you:

         (a) (i) two (2) times your highest annual base salary in effect within
              one hundred and eighty (180) days prior to the Change in Control,
              (ii) two (2) times the highest annual bonus paid or payable to you
              for any of the last two (2) completed years by the Company or its
              predecessors, (iii) any un-reimbursed business expenses for the
              period prior to termination payable in accordance with Company's
              policies, and (iv) any base salary, bonus, vacation pay or other
              deferred compensation accrued or earned under law or in accordance
              with the Company's policies applicable to you but not yet paid;

         (b)  any other amounts or benefits due under the then applicable
              employee benefit, incentive or equity plans of the Company
              applicable to you as shall be determined and paid in accordance
              with such plans;

         (c)  two (2) years of additional service and compensation credit (at
              your highest compensation level in the one hundred and eighty
              (180) day period prior to the Change in Control) for pension
              purposes under any defined benefit type qualified or non-qualified
              pension plan or arrangement of the Company and its affiliates
              applicable to you, measured from the date of termination of
              employment and not credited to the extent that you are otherwise
              entitled to such credit during such two (2) year period, which
              payments shall be made through and

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              in accordance with the terms of the non-qualified defined benefit
              pension plan or arrangement if any then exists, or, if not, in an
              actuarially equivalent lump sum (using the actuarial factors then
              applying in the Company's or its affiliates' defined benefit plan
              covering you);

         (d)  an amount equal to two (2) years of the maximum Company
              contribution (assuming you deferred the maximum amount and
              continued to earn your then current salary) measured from the date
              of termination of your employment under any type of qualified or
              non-qualified 401(K) plan (payable at the end of each such year
              and not payable to the extent otherwise contributed to such plan);
              and

         (e)  payment by the Company of the premiums for you (except in the case
              of death) and your dependents' health coverage for two (2) years
              from the date of termination of your employment under the
              Company's health plans which cover the senior executives of the
              Company or materially similar benefits (to the extent not
              otherwise provided). Any amendment or termination of benefits,
              equity or incentive plans within one hundred and eighty (180) days
              prior to, or after, a Change in Control that is detrimental to you
              shall be ignored with respect to subsections (c), (d) and (e)
              above.

         Payments under (e) above may, at the discretion of the Company, be made
         by paying the applicable COBRA premium for you and your dependents, or
         by covering you and your dependents under substitute arrangements,
         provided that, to the extent you incur tax that you would not have
         incurred as an active employee as a result of the aforementioned
         coverage or the benefits provided thereunder, you shall receive from
         the Company an additional payment in the amount necessary so that you
         will have no additional cost for receiving such items or any
         additional payment.

         12.2.2 Change in Control. For purposes of this Agreement, the term
         "Change in Control" shall mean the sale or transfer, directly or
         indirectly, of substantially all of the Company's business and assets
         to an entity not affiliated with the Company, or the purchase, directly
         or indirectly, by an entity not affiliated with the Company, of more
         than 50% of the outstanding shares of the common stock of the Company.
         For the purpose of this definition, an affiliate of the Company refers
         to any person or business entity, directly or indirectly, controlling,
         controlled by, or under the common control with the Company, with the
         term "control" referring to any person or business entity owning,
         directly or indirectly, more than a 50% equity interest in the
         controlled entity or possessing the power to direct or cause the
         direction of the management or policies of the controlled entity. Only
         one (1) Change in Control may take place under this Agreement.

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         12.2.3 No Payment of Benefits Resulting in Golden Parachute Taxes under
         Section 280g of the Code. No payment shall be made to you pursuant to
         this Agreement to the extent that such payment when aggregated with all
         other payments considered for purposes of calculating a parachute
         payment results in an excess parachute payment as defined under Section
         280g of the Code. Furthermore to the extent that the Internal Revenue
         Service or other applicable governmental taxing authority determines
         that there has been an "excess parachute payment" and a notice of
         deficiency or similar notice has been issued, then the Company or its
         successor agrees to pay all expenses associated with professional fees
         (legal and tax accounting) in connection with the protest, challenge,
         and defense of any such notice and the appeal of any decision on such
         matter.

         The Company or its successor agrees not to settle the matter short of
         the appellate level without your written consent. In the event that the
         Internal Revenue Service or other applicable governmental taxing
         authority ultimately determines that, in fact, there has been an
         "excess parachute payment" by the Company, then the amount necessary to
         reduce the total payments such that there would be no "excess parachute
         payment" would be immediately and retroactively characterized as a loan
         from the Company or its successor to you with interest at a rate equal
         to the ten year Treasury Bond (or if the Company's successor is a bank
         subject to Regulation O then the loan shall be at substantially the
         same terms as credit underwriting procedures that are not less
         stringent than, those prevailing at the time the loan would have been
         made for comparable transactions of the Company or its successor and
         shall be subject to the other conditions of Regulation O). The loan
         shall be subject to repayment at the demand of the Company or its
         successor.

13. Termination By Employee. Employee may not terminate this Agreement prior to
the end of the Initial Term. Thereafter, Employee may terminate this Agreement
on thirty (30) days' prior written notice.

14. Entire Agreement; Amendment. Except as otherwise stated herein, this
Agreement sets forth the entire agreement of the parties hereto with respect to
the subject matter hereof, and supersedes all prior and contemporaneous
agreements, arrangements and understandings. This agreement may only be amended
by the mutual written consent of Employer and Employee.

15. Waiver. No waiver or modification of this Agreement or any covenant,
condition, or limitation herein shall be valid unless in writing and duly
executed by the parties hereto, and no evidence of any waiver or modification
shall affect this Agreement, or the rights or obligations of any party
hereunder, unless such waiver or modification is in writing and duly executed by
the parties hereto. The parties hereto further agree that the provisions of this
Section may not be waived except as herein set forth.

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16. Assignment. Employee may not assign or delegate any rights, duties or
obligations established herein without the prior written consent of Employer,
which consent may be withheld in Employer's sole and absolute discretion.
Employer may assign this Agreement, in whole or in part, in its sole and
absolute discretion without the consent of Employee.

17. Notices. All notices or other communications required or permitted hereunder
shall be sent in writing to the address as set forth herein.

18. Jurisdiction/Governing Law. The parties hereto submit to the jurisdiction of
the courts of the State of Florida for the purpose of resolution of any and all
disputes which arise out of, or are related to, this Agreement of an alleged
breach thereof. This Agreement and performance hereunder shall be construed and
enforced, and all actions or proceedings arising out of or related hereto shall
be conducted in accordance with the laws of the State in which such services are
rendered.

19. Survival. The provision set forth in Sections 6, 7, 8, 9, 10, and 11 of this
Agreement shall survive expiration or termination of this instrument.

IN WITNESS WHEREOF, the parties hereto have executed this instrument, or caused
its execution by a duly authorized officer, all as of the day and year first
above written.

"EMPLOYER"
First Colonial Securities Holding Corp.

By:      /s/ Michael Golden
         -----------------------------
Name:    Michael Golden
Title:   Chairman CEO
Address: 1499 W. Palmetto Park
         Boca Raton, FL

"EMPLOYEE"

Name:      /s/ Ben Lichtenberg
           --------------------------
Signature: Ben Lichtenberg
Address:   575 Jefferson Dr.
           Deerfield Beach, FL
SS#:       ###-##-####

                                       7<PAGE>
                          FORM OF EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of the
8th day of November, 1999, between Colonial Direct Financial Group, Inc., a
Delaware corporation ("Employer"), and Jeffrey S. Kahn, an individual
("Employee").

         Employer is a corporation which is engaged in the securities and
related businesses throughout the United States from its principal office
location at 1499 W. Palmetto Park Road, Suite 312, Boca Raton, Florida 33486
(the "Office"). Employer wishes to employ Employee to provide certain services
related to employee benefits consulting and administration to Employer and
Employee is willing to be employed by Employer to render such services, all in
accordance with the terms and conditions specified below and in accordance with
the all applicable federal and state statutes, rules and regulations then in
effect.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the parties hereto agree as follows:

1. Engagement. Employer does hereby employ and engage Employee as Chief,
Executivc Officer of Colonial Direct Financial Group, Inc., a wholly-owned
subsidiary of Employer, at 2101 Corporate Boulevard, Suite 220, Boca Raton,
Florida ("Office") and as a member of Employer's Board of Directors, and
Employee does hereby accept and agree to such employment and engagement. In
connection herewith, Employee shall dedicate such time and resources as are
commensurate, with his responsibilities, it being acknowledged that the
Employee's primary commitment is to the practice of law and his engagement
hereunder will be part-time. Employer acknowledges that since the Employee is
engaged in the practice of law in performing legal services certain of those
services may include services offered by the Employer or its affiliates. Nothing
herein, including Sections 6 through 9, shall be construed to limit Employee's
right to perform legal and related incidental services, including employee
benefit services, or require him to take any action or fail to take any action
which he deems would or may be in violation of any professional or other rules
applicable to Employee as an attorney.

2. Term. Except as otherwise provided herein, the term of this Agreement shall
be for a period of two (2) years from the date of this Agreement (the "Initial
Term"), and thereafter automatically shall renew for three successive one-year
terms, at the option of Employee, unless earlier terminated as provided for
herein.

3. Compensation:

         3.1 Base Salary. Employer shall pay Employee, and Employee agrees to
accept from Employer as payment in full for Employee's services hereunder, a
base salary of $150,000 per year (the "Base Salary"), payable in accordance with
the payroll of Employer during the term of this Agreement. The Base Salary shall
be subject to an adjustment twelve months from the date of this Agreement, in
Employer's sole discretion, based on, among other things, Employee's
contribution to the net profitability of Employer and its subsidiaries.

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         3.2 Additional Compensation. In addition to such Base Salary, Employee
shall be entitled to Additional Compensation which shall be based upon
Employee's success in introducing new business to Employer, its divisions or
subsidiaries with (i) existing clients of Employer or such divisions or
subsidiaries; or (ii) third parties introduced thereto by Employee. Such
Additional Compensation shall be based on a equal division of net profitability
of such new business between Employer, Employee and such division or subsidiary,
as appropriate. The Additional Compensation shall be calculated and payable not
less than 90 days after the end of Employer's fiscal year or at more frequent
intervals if calculated and payable to any other executive of the Employer on a
more frequent basis.

         3.3 Stock Options. Employee will be eligible for and be entitled to
participate in any stock option program created for the benefit of any of its
employees at a comparable executive level as Employee, in such amount as is
reasonably determined by Employer's Board of Directors or such committee
appointed thereby as is reasonably commensurate with his position and
compensation.

4. Vacation. Employee shall be entitled to an annual vacation of six (6) weeks,
without loss of compensation. Vacation scheduling shall be made by Employee so
as not to materially disrupt the continuity of the business of Employer. Accrued
vacation not taken at the end of the year in which days have been accrued
automatically will be forfeited.

5. Health and Fringe Benefits. Employee shall be entitled to participate in such
health benefits and plans, and other fringe benefits as are made available by
Employer (or its affiliates) to its employees at Employee's level on a usual and
customary basis.

6. Confidential Information. Employee acknowledges and agrees that he will have
access to certain confidential information of the Employer and that such
information constitutes valuable, special and unique property of Employer.
Subject to Employee's use of information reasonably required in the practice of
law and Employee's right to divulge such information to partners, associates and
other persons in connection with that practice, Employee further acknowledges
and agrees that Employee will not, at any time during or after the term hereof,
in any fashion, form, or manner, either directly or indirectly, divulge,
disclose or communicate to any person, firm, or corporation, in any manner
whatsoever, the terms and conditions of this Agreement or any information of any
kind, nature or description concerning any matters affecting or relating to the
business of the Employer ("Confidential Information").

7. Client Information. Except as to such information related to Employee's
practice of law to which Employee, his partners and associates shall also be
entitled to retain for that purpose, Employee agrees that (i) all client names,
addresses, telephone numbers, files, and records (collectively, "Client
Records") are and shall remain in the custody and control of Employer, and,
except as necessary and permitted for purposes directly related to the operation
of the Office or proper client service, or as authorized and required by law or
client consent, Employee shall not remove, copy, transfer, or transmit to any
person, natural or corporate, any Client Records at any time; and (ii) an actual
or attempted violation of any provision of this Section by Employee, either
directly or indirectly, shall be grounds for immediate termination of this
Agreement.

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         Employee recognizes and agrees that a violation of any of the
provisions contained in this Section may cause irreparable damage to Employer,
the exact amount of which may be impossible to ascertain, and that, for such
reason, among others, Employer shall be entitled to an injunction without the
necessity of posting bond therefor in order to restrain any further violation of
such provisions. Such right to an injunction shall be in addition to, and not in
limitation of, any other rights and remedies Employer may have against Employee,
including, but not limited to, the recovery of damages. Except as provided
herein, the terms and conditions of this Section shall survive termination of
this Agreement.

8. Non-Competition Agreement. Subject to Section 1 as it relates to the practice
of law, Employee agrees that during the term of this Agreement and for a period
of three (3) years thereafter, Employee shall not directly or indirectly compete
with the benefit consulting and administration business of Employer, or own,
directly or indirectly, any part of or become the employee of, or otherwise
render services to, any enterprise which directly or indirectly competes with
the benefits consulting and administration business of Employer. Employer
acknowledges that certain of the services provided by Employee in the practice
of law or incidental to that practice, may overlap with the employee benefits
consulting and administration business of Employer. Sections 8 and 9 will not
apply to the extent of such overlap.

9. Covenant Not To Solicit. Subject to Section 1 as to the Employee's right to
practice law and subject to the rules he believes are applicable to him,
Employee agrees that, during the term of this Agreement and for a period of
three (3) years thereafter, Employee shall not (i) solicit, encourage or advise
clients serviced during the term of this Agreement, at the Office (or any other
office location at which Employer operates during the term of this Agreement) to
obtain or seek employee benefit consulting and administration services from any
entity other than Employer, or (ii) solicit, encourage or advise any employees
of Employer to terminate employment with Employer for any reason whatsoever.
Employee recognizes and agrees that the limitations set forth in this Section
and Section 8 are reasonable and necessary for the protection of the goodwill of
the business of Employer. Employee further recognizes and agrees that a
violation of any of the provisions contained in either section will cause
irreparable damage to Employer, the exact amount of which may be impossible to
ascertain, and that, for such reason, among others, Employer shall be entitled
to an injunction without the necessity of posting bond therefor in order to
restrain any further violation of such provisions. Such right to any injunction
shall be in addition to, and not in limitation of, any other rights and remedies
Employer may have against Employee, including, but not limited to, the recovery
of damages. As used herein, the term "client" shall include any and all clients
serviced at the Office, or any other office location at which Employer operates
during the term of this Agreement. Except as provided herein, the terms and
conditions of this Section and Section 8 shall survive termination of this
Agreement.

10. Representations and Warranties. Each party represents and warrants that he
or it (i) is not subject to any restriction that would prohibit entering into
this Agreement, is fully able to perform each of the terms, conditions and
covenants hereof, and is not restricted or prohibited from entering into or
performing any of the terms or conditions hereof; and (ii) is able to execute
and perform under this Agreement without violating or breaching any agreement
between said party and any other person or entity.

                                      - 3 -

<PAGE>

         Employee acknowledges and agrees that the truth and accuracy of the
representations and warranties contained herein constitute a condition precedent
to Employer's obligation to provide compensation pursuant to the terms and
conditions of this Agreement.

11. Indemnity. Each party hereby agrees to indemnify, defend and hold the other
harmless from and against any and all costs, losses, claims, demands and
liabilities, including reasonable attorneys' fees and costs, which arise out of
or relate to any material breach by such party of any of the terms or conditions
of this Agreement and as provided in the remainder of this Section. Employee
shall indemnify Employer (only to the extent not covered by insurance) for his
acts or omissions which constitute gross negligence or an intentional wrongful
act of Employee which was not authorized by the Employer. If Employer, any of
its shareholders or affiliates is made a party to any litigation or obligation
or otherwise incurs any loss or expense as a result of Employee's activities
unconnected with Employer's business at the Office, Employee shall forthwith
upon demand reimburse Employer or such individuals for any and all expenses
incurred as a result thereof Employer shall indemnify, defend and hold Employee
harmless with respect to or any actions taken by the course of his employment
except for gross negligence or an international wrongful act not authorized by
the Employer. Employer shall provide directors/officers/employees errors and
ommissions or similar insurance on substantially the same basis provided any
other executive, officer or director of the Employer. The terms and conditions
of this Section shall survive termination of this Agreement.

12. Termination By Employer. Subject to the terms hereof, Employer shall have
the right to terminate Employee's employment at any time, for any reason, with
or without cause, on thirty (30) days prior written notice. Cause shall be
strictly defined as (i) the death of Employee, (ii) a material failure of
Employee to discharge his employment obligations as reasonably directed by
Employer, (iii) conduct by Employee which is violative of law which constitutes
a felony or which involves moral turpitude and conviction of the same, (iv)
fraud, embezzlement or theft by Employee of funds belonging to Employer or its
subsidiaries, or (v) Employee's disability for which Employer can make no
reasonable accommodation. The term "disability" shall mean, for purposes of this
Agreement, the inability of Employee to perform part-time duties as contemplated
hereunder on account of a physical or mental condition for a period of 90
consecutive days, but shall exclude infrequent and temporary incapacity due to
ordinary illness. All other terminations by Employer shall be without cause and
which shall include the resignation by the Employee (unless otherwise waived by
Employer or cured within a reasonable period of time by Employee) based on: (i)
a material breach by Employer of its agreements or obligations hereunder or
under the Stock Exchange Agreement dated 11/8/99; (ii) any non-consensual
reduction (including after the Initial Term) in annual compensation payable to
Employee which reduction is in excess of $15,000; (iii) any non-consensual
material reduction in Employee's scope of authority; (iv) non-consensual change
in the business location of Employee's services to a location outside of Broward
or Palm Beach counties; or (v) any action or inaction by Employer which
materially interferes or frustrates Employee's ability to perform his
obligations hereunder.

         12.1 Severance. In the event the Term is not renewed, or Employee is
terminated for any reason other than cause as defined herein, Employee shall be
paid a severance payment equal to 100% of his then current annual Base Salary
over the one year period following such termination

                                      - 4 -

<PAGE>

and all accrued but unpaid Additional Compensation due him. If, however,
Employee voluntary terminates this Agreement in accordance with Section 13
(unless such resignation constitutes a termination without cause in Section 12
which shall then be governed by the prior sentence), or is otherwise terminated
for cause, he shall receive no severance benefits but shall be paid his accrued
but unpaid Additional Compensation. A termination without cause or an unwinding
under Section 8 of the Stock Exchange Agreement, shall automatically extinguish
the non-compete and non-solicitation provisions of Sections 8 and 9, above.

13. Termination By Employee. Employee may not terminate this Agreement prior to
the end of the Initial Term. Thereafter, Employee may terminate this Agreement
on thirty (30) days' prior written notice.

14. Entire Agreement, Amendment. Except as otherwise stated herein, this
Agreement sets forth the entire agreement of the parties hereto with respect to
the subject matter hereof, and supersedes all prior and contemporaneous
agreements, arrangements and understandings. This Agreement may only be amended
by the mutual written consent of Employer and Employee.

15. Waiver. No waiver or modification of this Agreement or any covenant,
condition, or limitation herein shall be valid unless in writing and duly
executed by the parties hereto, and no evidence of any waiver or modification
shall affect this Agreement, or the rights or obligations of any party
hereunder, unless such waiver or modification is in writing and duly executed by
the parties hereto. The parties hereto further agree that the provisions of this
Section may not be waived except as herein set forth.

16. Assignment. Neither party may assign his or its rights or obligations
hereunder provided, however, Employee is specifically authorized to delegate
certain of his duties to Richard Waxman. Richard Waxman shall be entitled to all
information regarding the Employer that is within Employee's knowledge.

17. Notices. All notices or other communications required or permitted hereunder
shall be sent in writing to the address as set forth herein.

18. Jurisdiction/Governing Law. The parties hereto submit to the jurisdiction of
the courts of the State of Florida for the purpose of resolution of any and all
disputes which arise out of, or are related to, this Agreement or an alleged
breach thereof. This Agreement and performance hereunder shall be construed and
enforced, and all actions or proceedings arising out of or related hereto shall
be conducted in accordance with the laws of the State in which such services are
rendered.

19. Survival. Subject to Section 12, the provisions set forth in Sections 6, 7,
8, 9, 10, and 11 of this Agreement shall survive expiration or termination of
this instrument.

                                      - 5 -

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this instrument,
or caused its execution by a duly authorized officer, all as of the day and year
first above written.

                                "EMPLOYER"

                                COLONIAL DIRECT FINANCIAL GROUP, INC.,
                                a Delaware corporation

                                By: /s/ Rodney G. Smith
                                   -------------------------------
                                Name: Rodney G. Smith
                                Title: President
                                Address: 1499 W. Palmetto Park Rd.
                                         Suite 312
                                         Boca Raton, FL 33486

                               "EMPLOYEE"

                               /s/ Jeffrey S. Kahn
                               ---------------------------------
                                        [Signature]
                                     JEFREY S. KAHN

                               Address: 7101 Corp Blvd #226
                                        Boca Raton, FL 33431

                               SS#:     ###-##-####

                                      - 6 -

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