Document:

exv10w1

 

Exhibit 10.1

OXFORD FINANCE CORPORATION

2002 STOCK OPTION PLAN

  
     1.     Purpose. The purpose of this Oxford Finance Corporation 2002 Stock
Option Plan (the “Plan”) is to further the long term stability and financial
success of Oxford Finance Corporation (the “Company”) by attracting and
retaining officers and directors of the Company through the use of stock
incentives. It is believed that ownership of Company Stock will stimulate the
efforts of those individuals upon whose judgment and interest the Company is
and will be largely dependent for the successful conduct of its business. It is
also believed that Options granted to individuals under this Plan will
strengthen their desire to remain with the Company and will further the
identification of their interests with those of the Company’s shareholders.

         2.     Definitions. As used in the Plan, the following terms have the
meanings indicated:

		
	 	        (a) “1934 Act” means the Securities Exchange Act of 1934, as
amended.

		
	 	        (b) “Act” means the Investment Company Act of 1940, as amended.

		
	 	        (c) “Applicable Withholding Taxes” means the minimum aggregate
amount of federal, state and local income and payroll taxes that the
Company is required by applicable law to withhold in connection with any
Option.

		
	 	        (d) “Board” means the Board of Directors of the Company.

		
	 	        (e) “Change of Control” means (1) the sale of substantially all of
the Company’s assets, (2) the acquisition, whether directly, indirectly,
beneficially (within the meaning of Rule 13d-3 of the 1934 Act), or of
record, of securities of the Company representing twenty-five percent
(25%) or more in the aggregate voting power of the Company’s
then-outstanding Company Stock by any “person” (within the meaning of
Sections 13(d) and 14(d) of the 1934 Act), including any corporation or
group of associated persons acting in concert, other than (A) the Company
or its Subsidiaries and/or (B) any employee pension benefit plan (within
the meaning of Section 3(2) of the Employee Retirement Income Security
Act of 1974) of the Company or its Subsidiaries, including a trust
established pursuant to any such plan, or (3) a merger or consolidation
of the Company with another entity unless the Company is the surviving
company in such merger or consolidation.

		
	 	        (f) “Code” means the Internal Revenue Code of 1986, as amended. A
reference to any provision of the Code shall include reference to any
successor or replacement provision of the Code.

		
	 	        (g) “Committee” means the committee appointed by the Board as
described under Section 12.

		
	 	        (h) “Company” means Oxford Finance Corporation, a Maryland
corporation.

 

		
	 	        (i) “Company Stock” means the common stock of the Company. In the
event of a change in the capital structure of the Company, the shares
resulting from such a change shall be deemed to be Company Stock within
the meaning of the Plan.

		
	 	        (j) “Date of Grant” means the date on which an Option is granted by
the Committee.

		
	 	        (k) “Disability” or “Disabled” means a Disability within the meaning
of Code section 22(e)(3).

		
	 	        (l) “Fair Market Value” means, for any given date, the fair market
value of the Company Stock as of such date, as determined by the
Committee, if the shares are not listed on ah exchange, or the closing
price of the shares on the New York Stock Exchange or other exchange in
which the shares are listed.

		
	 	        (m) “Incentive Stock Option” means an Option intended to meet the
requirements of, and qualify for favorable federal income tax treatment
under, Code section 422.

		
	 	        (n) “Insider” means a person subject to section 16(b) of the 1934
Act.

		
	 	        (o) “Mature Shares” means shares of Company Stock for which the
holder thereof has good title, free and clear of all liens and
encumbrances and which such holder either (1) has held for at least six
months or (2) has purchased on the open market.

		
	 	        (p) “Nonstatutory Stock Option” means an Option that does not meet
the requirements of Code section 422 or, even if meeting the requirements
of Code section 422, is not intended to be an Incentive Stock Option and
is so designated.

		
	 	        (q) “Option” means a right to purchase Company Stock granted under
the Plan, at a price determined in accordance with the Plan.

		
	 	        (r) “Parent” means, with respect to any corporation, a parent of
that corporation within the meaning of Code section 424(e).

		
	 	        (s) “Participant” means any officer or director of the Company who
receives an Option under the Plan.

		
	 	        (t) “Rule 16b-3” means Rule 16b-3 adopted pursuant to section 16(b)
of the 1934 Act. A reference in the Plan to Rule 16b-3 shall include a
reference to any corresponding rule (or number redesignation) of any
amendments to Rule 16b-3 adopted after the effective date of the Plan’s
adoption.

		
	 	        (u) “Subsidiary” means, with respect to any corporation, a
subsidiary of that corporation within the meaning of Code section 424(f).

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	 	        (v) “10% Shareholder” means a person who owns, directly or
indirectly, stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary
of the Company. Indirect ownership of stock shall be determined in
accordance with Code section 424(d).

  
     3.     General. Options granted under the Plan may be Incentive Stock Options
or Nonstatutory Stock Options. The provisions of the Plan referring to Insiders
or Rule 16b-3 shall apply only to Participants who are subject to section 16 of
the 1934 Act.

  
     4.     Stock. Subject to Section 11 of the Plan, there shall be reserved for
issuance under the Plan an aggregate of 676,000 shares of Company Stock,
which shall be authorized, but unissued shares. In the event any Option shall
cease to be exercisable in whole or in part for any reason, the shares which
were covered by such Option, but as to which Option had not been exercised,
shall again be available for issuance under this Plan. For purposes of
determining the number of shares of Company Stock that are available for
Options under the Plan, such number shall include the number of shares of
Company Stock under an Option surrendered by a Participant or retained by the
Company in payment of Applicable Withholding Taxes.

  
     5.     Eligibility.

		
	 	        (a) Officers. The Committee shall determine and designate from time
to time those key officers of the Company, who shall be eligible to
participate in this Plan. The Committee shall have the power and
complete discretion, as provided in Section 12, to select which officers
shall receive Options and to determine for each such officer the terms
and conditions, the nature of the award and the number of shares to be
allocated to each officer as part of the Option. The date on which the
Committee approves the grant of any Option to an officer of the Company
shall be the date of issuance of such Option; provided, however, that if
(1) any such action by the Committee does not constitute approval thereof
by both (A) a majority of the Company’s directors who have no financial
interest in such action and (B) a majority of the Company’s directors who
are not “interested persons” (as defined in Section 2(a)(19) of the Act)
of the Company and (2) such approval is at such time required by Section
61(a)(3)(B)(i)(I) or other applicable provision of the Act, then the
grant of any option by such action shall not be effective, and there
shall be no issuance of such option, until there has been approval of
such action by (A) a majority of the Company’s directors who have no
financial interest in such action and (B) a majority of the Company’s
directors who are not “interested persons” of the Company, on the basis
that such action is in the best interests of the Company and its
shareholders, and the last date on which such required approval is
obtained shall be the date of issuance of such option. The agreement
documenting the award of any Option granted pursuant to this paragraph
5(a) shall contain such terms and conditions as the Committee shall deem
advisable, including but not limited to being exercisable only in such
installments as the Committee may determine.

		
	 	        (b) Non-Officer Directors. If the Company elects to obtain and
receives an exemptive order from the Securities and Exchange Commission
(the “Commission”), non-officer directors will be eligible to participate
in the Plan. In the event that an order

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	 	is obtained from the Commission, Options will be granted to
non-officer directors in accordance with the following provisions: (1) a
one time grant of Options in accordance with the provisions of this
paragraph (b)(1) shall be made to each director of the Company who is not
an officer of the Company and who is serving on the date on which the
issuance of Options pursuant to this Plan to non-officer directors is
approved by order of the Commission pursuant to Section
61(a)(3)(B)(i)(II) of the Act. After such date, a one time grant of
Options in accordance with the provisions of this paragraph (b)(1) shall
be made to each new non-officer director other than any non-officer
director who received a grant pursuant to the first sentence of this
paragraph (b)(1) upon his or her initial election as a director of the
Company. Each grant pursuant to this paragraph (b)(1) shall award the
non-officer director an Option to purchase [10,000] shares at a price
equal to the Fair Market Value at the Date of Grant of such Option, and
the Options shall vest immediately. (2) A grant of Options in accordance
with the provisions of this paragraph (b)(2) shall be made to each
director of the Company who is not an officer of the Company and who is
serving as a director on the date of the annual meeting of stockholders
each year. Each grant pursuant to this paragraph (b)(2) shall award the
non-officer directors an Option to purchase [5,000] shares at a price
equal to the Fair Market Value at the Date of Grant of such Option, and
the Options shall vest immediately. (3) The agreement documenting the
award of any Option pursuant to this paragraph (b) shall contain the
terms and conditions, as the Committee shall deem advisable.

		
	 	        (c) Option Agreements. Agreements evidencing Options granted to
different Participants or at different times need not contain similar
provisions. Options that are intended to be Incentive Stock Options will
be designated as such; any Option not so designated will be treated as a
Nonstatutory Stock Option.

		
	 	        (d) The grant of an Option shall not obligate the Company or any
Parent or Subsidiary of the Company to pay a Participant any particular
amount of remuneration, to continue the employment or service of the
Participant after the grant or to make further grants to the Participant
at any time thereafter.

  
     6.     Stock Options.

		
	 	        (a) Whenever the Committee deems it appropriate to grant Options,
notice shall be given to the Participant stating the number of shares for
which Options are granted, the Option price per share, whether the
Options are Incentive Stock Options or Nonstatutory Stock Options, and
the conditions to which the grant and exercise of the Options are
subject. This notice, when duly accepted in writing by the Participant,
shall become a stock option agreement between the Company and the
Participant.

		
	 	        (b) The exercise price of shares of Company Stock covered by an
Incentive Stock Option shall be not less than 100% of the Fair Market
Value of such shares on the Date of Grant; provided that if an Incentive
Stock Option is granted to an employee who, at the time of the grant, is
a 10% Shareholder, then the exercise price of the shares covered by the
Incentive Stock Option shall be not less than 110% of the Fair Market
Value of such shares on the Date of Grant.

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	 	        (c) The exercise price of shares of Company Stock covered by a
Nonstatutory Stock Option shall be not less than 100% of the Fair Market
Value of such shares on the Date of Grant.

		
	 	        (d) Options may be exercised in whole or in part at such times as
may be specified by the Committee in the Participant’s Option agreement;
provided that the exercise provisions for Options shall in all events not
be more liberal than the following provisions:

		
	 	        (i) No Option may be exercised after the first to occur of:

		
	 	                (x) Ten years (or, in the case of an Incentive Stock
Option granted to a 10% Shareholder, five years) from the
Date of Grant,

		
	 	                (y) Sixty days following the date a Participant ceases
to be an officer or director of the Company and any Parent or
Subsidiary of the Company for reasons other than death or
Disability; or

		
	 	                (z) One year following the date a Participant ceases to
be an officer or director of the Company by reason of death
or Disability.

		
	 	        (ii) Except as otherwise provided in this paragraph, no
Incentive Stock Option may be exercised unless the Participant is
employed by the Company or a Parent or Subsidiary of the Company at
the time of the exercise and has been so employed at all times
since the Date of Grant. If a Participant’s employment is
terminated other than by reason of death or Disability at a time
when the Participant holds an Incentive Stock Option that is
exercisable (in whole or in part), the Participant may exercise any
or all of the exercisable portion of the Incentive Stock Option (to
the extent exercisable on the date of termination) within sixty
days after the Participant’s termination of employment. If a
Participant’s employment is terminated by reason of his Disability
at a time when the Participant holds an Incentive Stock Option that
is exercisable (in whole or in part), the Participant may exercise
any or all of the exercisable portion of the Incentive Stock Option
(to the extent exercisable on the date of Disability) within one
year after the Participant’s termination of employment. If a
Participant’s employment is terminated by reason of his death at a
time when the Participant holds an Incentive Stock Option that is
exercisable (in whole or in part), the Incentive Stock Option may
be exercised (to the extent exercisable on the date of death)
within one year after the Participant’s death by the person to whom
the Participant’s rights under the Incentive Stock Option shall
have passed by will or by the laws of descent and distribution.

		
	 	        (iii) An Incentive Stock Option, by its terms, shall be
exercisable in any calendar year only to the extent that the
aggregate Fair Market Value (determined at the Date of Grant) of
the Company Stock with respect to which Incentive Stock

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	 	Options are exercisable for the first time during the calendar
year does not exceed $100,000 (the “Limitation Amount “). Incentive
Stock Options granted under the Plan and all other plans of the
Company and any Parent or Subsidiary of the Company shall be
aggregated for purposes of determining whether the Limitation
Amount has been exceeded. The Committee may impose such conditions
as it deems appropriate on an Incentive Stock Option to ensure that
the foregoing requirement is met. If Incentive Stock Options that
first become exercisable in a calendar year exceed the Limitation
Amount, the excess Options will be treated as Nonstatutory Stock
Options to the extent permitted by law.

		
	 	        (e) Notwithstanding the foregoing, no Option shall be exercisable by
an Insider within the first six months after it is granted; provided that
this restriction shall not apply if the Participant becomes Disabled or
dies during the six-month period.

		
	 	        (f) The Committee may, in its discretion, grant Options that by
their terms become fully exercisable upon a Change of Control
notwithstanding other conditions on exercisability in the Option
agreement, and, in such event, paragraph (e) shall not apply.

  
     7.     Method of Exercise of Options.

		
	 	        (a) Options may be exercised by the Participant by giving written
notice of the exercise to the Company, stating the number of shares the
Participant has elected to purchase under the Option. In the case of a
purchase of shares under an Option, such notice shall be effective only
if accompanied by the exercise price in full paid in cash; provided that,
if the terms of an Option so permit, or the Committee by separate action
so permits, the Participant may (1) deliver Mature Shares (valued at
their Fair Market Value on the date of exercise) in satisfaction of all
or any part of the exercise price, or (2) if authorized by the Company in
accordance with paragraph (d), deliver an interest bearing promissory
note, payable to the Company, in payment of all or part of the exercise
price. The Participant shall not be entitled to make payment of the
exercise price other than in cash unless provisions for an alternative
payment method are included in the Participant’s Option agreement or are
agreed to in writing by the Company with the approval of the Committee
prior to exercise of the Option.

		
	 	        (b) Each Participant shall agree as a condition of the exercise of
an Option to pay to the Company Applicable Withholding Taxes, or make
arrangements satisfactory to the Company regarding the payment to the
Company of such amounts. Until Applicable Withholding Taxes have been
paid or arrangements satisfactory to the Company have been made, no stock
certificate shall be issued upon the exercise of an Option.

		
	 	        (c) As an alternative to making a cash payment to the Company to
satisfy Applicable Withholding Taxes if the Option agreement so provides,
or the Committee by separate action so provides, a Participant may elect
to (1) deliver Mature Shares or (2) have the Company retain that number
of shares of Company Stock that would satisfy all or a specified portion
of the Applicable Withholding Taxes. Any such election shall be made only
in accordance with procedures established by the Committee.

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	 	        (d) A Participant who is an officer may request a loan from the
Company in an amount equal to all or any part of the exercise price of
such Option, subject to the approval of both (1) a majority of the
Company’s directors who each has no financial interest in such loan and
(2) a majority of the Company’s directors who each is not an “interested
person,” as defined in Section 2(a)(19) of the Act, of the Company on the
basis that such loan is in the best interest of the Company and its
shareholders (whether such approval is by the Committee or otherwise).
Any loan made to a Participant under this paragraph (i) shall have a term
of not more than ten years, (ii) shall become due within sixty days after
the Participant ceases to be an officer of the Company, (iii) shall bear
interest at a rate no less than the prevailing rate applicable to 90-day
United States Treasury bills at the time the loan is made, and (iv) shall
be fully collateralized at all times, which collateral may include
securities issued by the Company. Loan terms and conditions may be
changed by the Committee to comply with applicable Treasury and
Commission regulations.

		
	 	        (e) Notwithstanding anything herein to the contrary, if the Company
is subject to section 16 of the 1934 Act, Options shall always be granted
and exercised in such a manner as to conform to the provisions of Rule
16b-3.

  
     8.     Nontransferability of Options. Options shall not be transferable other
than by will or the laws of descent and distribution and pursuant to a
qualified domestic relations order. Options which are intended to be exempt
under Rule 16b-3 (to the extent required by Rule 16b-3 at the time of grant or
amendment of the Option agreement), by their terms, shall not be transferable
by the Participant except by will or by the laws of descent and distribution
and shall be exercisable, during the Participant’s lifetime, only by the
Participant or by his guardian or legal representative. Notwithstanding the
foregoing, the Committee, in its sole discretion, may provide for
transferability of Options to family members or entities established for the
benefit of family members in accordance with federal income tax laws.

  
     9.     Effective Date of the Plan. This Plan shall be effective upon the
latest to occur of (1) adoption by the Board and (2) approval of this Plan by
the shareholders of the Company.

  
     10.     Termination, Modification, Change. If not sooner terminated by the
Board, this Plan shall terminate at the close of business ten years from the
earlier of the adoption of the Plan by the Board or approval by the
Shareholders of the Company. No Options shall be granted under the Plan after
its termination. The Board may terminate the Plan or may amend the Plan in such
respects as it shall deem advisable; provided that, if and to the extent
required by the Code or Rule 16b-3, no change shall be made that increases the
total number of shares of Company Stock reserved for issuance pursuant to
Options granted under the Plan (except pursuant to Section 11) or expands the
class of persons eligible to receive Options, unless such change is authorized
by the shareholders of the Company. Notwithstanding the foregoing, the Board
may unilaterally amend the Plan and Option agreements as it deems appropriate
to ensure compliance with Rule 16b-3 and to cause Option agreements to meet the
requirements of the Code, including Code sections 162(m) and 422, and
regulations thereunder. Except as provided in the preceding

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 sentence, a termination or amendment of the Plan shall not, without the
consent of the Participant, adversely affect a Participant’s rights under an
Option previously granted to him.

  
     11.     Change in Capital Structure.

		
	 	        (a) In the event of a stock dividend, stock split or combination of
shares, recapitalization, merger in which the Company is the surviving
corporation, reorganization, reincorporation, consolidation, or other
change in the Company’s capital stock without the receipt of
consideration by the Company (including, but not limited to, the creation
or issuance to shareholders generally of rights, options or warrants for
the purchase of common stock or preferred stock of the Company), the
number and kind of shares of stock or securities of the Company to be
subject to the Plan and to Options then outstanding or to be granted
thereunder, the maximum number of shares or securities which may be
delivered under the Plan pursuant to Section 4, and the exercise price
and other terms and relevant provisions of Options shall be appropriately
adjusted by the Committee, whose determination shall be binding on all
persons. If the adjustment would produce fractional shares with respect
to any unexercised Option, the Committee may adjust appropriately the
number of shares covered by the Option so as to eliminate the fractional
shares.

		
	 	        (b) If the Company is a party to a consolidation or merger in which
the Company is not the surviving corporation, a transaction that results
in the acquisition of substantially all of the Company’s outstanding
stock by a single person or entity, or a sale or transfer of
substantially all of the Company’s assets, the Committee may take such
actions with respect to outstanding Options as the Committee deems
appropriate.

		
	 	        (c) Any determination made or action taken under this Section 11 by
the Committee shall be final and conclusive and may be made or taken
without the consent of any Participant.

  
     12.     Administration Of The Plan. The Plan shall be administered by a
Committee, which shall be appointed by the Board, consisting of not less than
two members of the Board. Subject to paragraph (e) below, the Committee shall
be the Compensation Committee of the Board unless the Board shall appoint
another Committee to administer the Plan. The Committee shall have general
authority to impose any limitation or condition upon an Incentive Award that
the Committee deems appropriate to achieve the objectives of the Incentive
Award and the Plan and, without limitation and in addition to powers set forth
elsewhere in the Plan, shall have the following specific authority:

		
	 	        (a) The Committee shall have the power and complete discretion to
determine (1) which eligible officers and directors of the Company shall
receive Options, (2) the number of shares of Company Stock to be covered
by each Option, (3) whether Options shall be Incentive Stock Options or
Nonstatutory Stock Options, (4) the Fair Market Value of Company Stock,
(5) the time or times when an Option shall be granted, (6) whether an
Option shall become vested over a period of time and when it shall be
fully vested, (7) when Options may be exercised, (8) the manner in which
payment will be

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	 	made upon the exercise of Options, (9) conditions relating to the
length of time before disposition of Company Stock received upon the
exercise of Options is permitted, (10) whether to approve a Participant’s
election (A) to deliver Mature Shares to satisfy Applicable Withholding
Taxes or (B) to have the Company withhold from the shares to be issued
upon the exercise of a Nonstatutory Stock Option the number of shares
necessary to satisfy Applicable Withholding Taxes, and (11) any
additional requirements relating to Options that the Committee deems
appropriate. The Committee shall have the power to amend the terms of
previously granted Options so long as the terms as amended are consistent
with the terms of the Plan and provided that the consent of the
Participant is obtained with respect to any amendment that would be
detrimental to the Participant, except that such consent will not be
required if such amendment is for the purpose of complying with Rule
16b-3 or any requirement of the Code applicable to the Incentive Award.

		
	 	        (b) The Committee may adopt rules and regulations for carrying out
the Plan. The interpretation and construction of any provision of the
Plan by the Committee shall be final and conclusive. The Committee may
consult with counsel, who may be counsel to the Company, and shall not
incur any liability for any action taken in good faith in reliance upon
the advice of counsel.

		
	 	        (c) A majority of the members of the Committee shall constitute a
quorum, and all actions of the Committee shall be taken by a majority of
the members present. Any action may be taken by a written instrument
signed by all of the members, and any action so taken shall be fully
effective as if it had been taken at a meeting.

		
	 	        (d) The Board from time to time may appoint members previously
appointed and may fill vacancies, however caused, in the Committee. If a
Committee of the Board is appointed to serve as the Committee, such
Committee shall have, in connection with the administration of the Plan,
the powers possessed by the Board, including the power to delegate a
subcommittee of the administrative powers the Committee is authorized to
exercise, subject, however, to such resolutions, not inconsistent with
the provisions of the Plan, as may be adopted from time to time by the
Board.

		
	 	        (e) All members of the Committee must be “outside directors” as
described in Code section 162(m) and “non-employee directors” as defined
in Rule 16b-3, unless administration of the Plan by “non-employee
directors” is not then required for exemptions under Rule 16b-3 to apply
to transactions under the Plan. Members of the Committee must not be an
“interested person,” as defined in Section 2(a)(19) of the Act.

  
     13.     Notice. All notices and other communications required or permitted to
be given under this Plan shall be in writing and shall be deemed to have been
duly given if delivered personally or mailed first class, postage prepaid, as
follows:

		
	 	        (a) if to the Company — at its principal business address to the
attention of the Secretary;

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	 	        (b) if to any Participant — at the last address of the Participant
known to the sender at the time the notice or other communication is
sent.

  
     14.     Shareholder Rights. No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Company Stock subject to an Option unless and until such Participation has
satisfied all requirements under the terms of the Option.

  
     15.     General Restriction. Each Option shall be subject to the requirement
that, if at any time the Board shall determine, at its direction, that the
listing, registration or qualification of the shares subject to such Option
upon any securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory body, is necessary or desirable as a
condition of, or in connection with, the granting of such Option or the issue
or purchase of the shares thereunder, such Option may not be exercised in whole
or in part unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not
acceptable to the Company. Subject to the limitations of Section 6, no Option
shall expire during any period when exercise of such Option has been prohibited
by the Board, but shall be extended for such further period so as to afford the
Participant a reasonable opportunity to exercise his Option.

  
     16.     No Employment or Other Service Rights. Nothing in the Plan or any
instrument executed or Option granted under the Plan shall confer upon any
Participant any right to continue to serve the Company (or a Parent or
Subsidiary of the Company) in the capacity in effect at the time the Option was
granted or shall affect the right of the Company (or a Parent or Subsidiary of
the Company) to terminate (a) the employment of an officer with or without
notice and with or without cause or (b) the service of a non-officer Director
pursuant to the bylaws of the Company (or a Parent or Subsidiary of the
Company), and any applicable provisions of the corporate law of the state in
which the Company (or a Parent or Subsidiary of the Company) is incorporated,
as the case may be.

  
     17.     Interpretation. The terms of the Plan shall be governed by the laws of
the Commonwealth of Maryland, without regard to conflict of law provisions at
any jurisdiction. The terms of this Plan are subject to all present and future
regulations and rulings of the Secretary of the Treasury or his delegate
relating to the qualification of Incentive Stock Options under the Code. If any
provision of the Plan conflicts with any such regulation or ruling, then that
provision of the Plan shall be void and of no effect. As to all Incentive Stock
Options and all Nonstatutory Stock Options with an exercise price of at least
100% of Fair Market Value of the Company Stock on the Date of Grant, this Plan
shall be interpreted for such Options to be excluded from applicable employee
remuneration for purposes of Code section 162(m).

  
     IN WITNESS HEREOF, this instrument has been executed this ______day
of ______, 2002.

	 	 	 
	 	OXFORD FINANCE CORPORATION	 
	 
	 	By:
     /s/ J. Alden Philbrick,
IV          
	 

10exv10w2

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”), dated as of March 26, 2002,
between J. Alden Philbrick, IV (the “Executive”) and Oxford Finance
Corporation, a Maryland corporation (the “Company”), recites and provides as
follows:

     WHEREAS, the Board of Directors of the Company (the “Board”) expects that
the Executive will make substantial contributions to the growth and prospects
of the Company; and

     WHEREAS, the Board desires that the Company employ the services of the
Executive, and the Executive is willing to provide such services to the
Company, both on the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein contained, the Company and the Executive agree as follows:

     1.     Employment Period. The Company hereby agrees to employ the Executive,
and the Executive hereby agrees to work for the Company, in accordance with the
terms and provisions of this Agreement, for the period commencing on the date
of this Agreement (the “Effective Date”) and ending on December 31, 2003 (the
“Employment Period”). The Executive’s Employment Period may thereafter be
extended by mutual agreement.

     2.     Terms of Employment.

		
	 	        (a) Position and Duties.

                            (i) During

the Employment Period, (A) the Executive shall serve as the
Chairman of the Board of Directors and Chief Executive Officer and shall have
the duties and responsibilities that are normally associated with that office
and such other powers and duties as may, from time to time, be prescribed by
the Board of Directors of the Company, provided that such duties are generally
consistent with the duties described above and applicable law and (B) the
Executive’s services shall be performed at the Company’s headquarters in
Alexandria, Virginia or at any office designated by the Board of Directors that
is less than thirty-five (35) miles from such location.

                            (ii) During

the Employment Period, and excluding any periods of vacation
and leave to which the Executive is entitled, the Executive agrees to devote
substantially all of his business attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the duties assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to (A) serve on corporate, civic, charitable
or professional association boards of committees (provided the Executive
obtains prior approval from the Board of Directors of the Company), (B) deliver
lectures, fulfill speaking engagements or teach at educational institutions and
(C) manage personal investments, so long as such activities do not unreasonably
interfere with the performance of the Executive’s responsibilities as an
employee of the Company in accordance with this Agreement.

1

 

     (b) 
Compensation.

                            (i)

Base Salary. During the Employment Period, the Executive shall
receive an annual base salary (“Annual Base Salary”), which shall be paid in
equal installments in accordance with the Company’s payroll schedule, as in
effect during the term, but not less frequently than on a monthly basis, at the
annual rate of not less than Three Hundred Thousand Dollars ($300,000) per
year. During the Employment Period, the Annual Base salary shall be reviewed
at least annually and shall be increased at any time and from time to time as
shall be substantially consistent with increases in base salary generally
awarded in the ordinary course of business to other senior executives of the
Company and its affiliated companies. Any increase in Annual Base Salary shall
not serve to limit or reduce any other obligation to the Executive under this
Agreement. Annual Base Salary shall not be reduced at any time during the
Employment Period or after any such increase, and the term “Annual Base Salary”
as utilized in this Agreement shall refer to Annual Base Salary as so
increased. As used in this Agreement, the term “affiliated companies” shall
include any company controlled by, controlling or under common control with the
Company.

                            (ii)

Annual Bonus. In addition to Annual Base Salary, the Executive shall
participate in, for each fiscal year ending during the Employment Period, the
Company’s Annual Performance-Based Bonus Plan or, if more favorable to the
Executive, under any plans, practices, programs and policies of the Company and
its affiliates in effect generally at any time after the Effective Date with
respect to other senior executives of the Company. The bonus paid to the
Executive under this paragraph shall be the “Annual Bonus” for purposes of this
Agreement.

                            (iii)

Incentive, Savings and Retirement Plans. During the Employment
Period, the Executive shall be entitled to participate in all incentive
(including, without limitation, stock incentive), savings and retirement plans,
practices, policies and programs applicable generally to other senior
executives of the Company, including without limitation the 2002 Equity
Incentive Plan, approved and adopted by the Board of Directors and by the
Shareholders on March 25, 2002, but in no event shall such plans, practices,
policies and programs provide the Executive with incentive opportunities
(measured with respect to both regular and special incentive opportunities, to
the extent, if any, that such distinction is applicable), savings opportunities
and retirement benefit opportunities, in each case, that are less favorable, in
the aggregate, than those provided generally from time to time after the
Effective Date to other senior executives of the Company.

                            (iv)

Welfare Benefit Plans. During the Employment Period, the Executive
and/or the Executive’s family, as the case may be, shall be eligible for
participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company (including, without
limitation, medical, prescription, dental, disability, salary continuance,
employee life, group life, accidental death and travel accident insurance plans
and programs) (collectively, the “Other Benefits”) to the extent applicable
generally to other senior executives of the Company, and under terms generally
applicable to other senior executivex of the Company, but in no event shall
such plans, practices, policies and programs provide the Executive with
benefits that are less favorable, in the aggregate, than

2

 

 those provided generally from time to time after the Effective Date to
other senior executives of the Company.

                            (v)

Expenses. During the Employment Period, the Executive shall be
entitled to receive prompt reimbursement for all reasonable employment expenses
incurred by the Executive in accordance with the most favorable policies,
practices and procedures of the Company, as in effect generally from time to
time after the Effective Date with respect to other senior executives of the
Company.

                            (vi)

Fringe Benefits. During the Employment Period, the Executive shall
be entitled to fringe benefits in accordance with the most favorable plans,
practices, programs and policies of the Company, as in effect generally from
time to time after the Effective Date with respect to other senior executives
of the Company.

                            (vii)

Office and Support Staff. During the Employment Period, the
Executive shall be entitled to an office or offices of a size and with
furnishings and other appointments, and to exclusive personal secretarial and
other assistance, at least equal to the most favorable of the foregoing
provided generally from time to time after the Effective Date with respect to
other senior executives of the Company.

                            (viii)

Vacation. During the Employment Period, the Executive shall be
entitled to paid vacation in accordance with the most favorable plans,
policies, programs and practices of the Company, as in effect generally from
time to time after the Effective Date with respect to other senior executives
of the Company.

     3.     Termination of Employment.

                     (a)

Death or Disability. The Executive’s employment shall terminate
automatically upon the Executive’s death during the Employment Period. If the
Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Executive written notice in accordance
with Section 11(b) of its intention to terminate the Executive’s employment.
In such event, the Executive’s employment with the Company shall terminate
effective on the thirtieth (30th) day after receipt of such notice by the
Executive (the “Disability Effective Date”), provided that, within the thirty
(30) days after such receipt, the Executive shall not have returned to
full-time performance of the Executive’s duties. For purposes of this
Agreement, “Disability” shall mean the absence of the Executive from the
Executive’s duties with the Company on a full-time basis for 180 consecutive
business days as a result of incapacity due to mental or physical illness that
is determined to be total and permanent by a physician selected by the Company
or its insurers and acceptable to the Executive or the Executive’s legal
representative (such agreement as to acceptability not to be withheld
unreasonably).

                     (b)

Cause. The Company may terminate the Executive’s employment during
the Employment Period for Cause. For purposes of this Agreement, “Cause” shall
mean (i) a material breach by the Executive of the Executive’s obligations
under Section 2(a) (other than as a result of incapacity due to physical or
mental illness) which is grossly negligent or

3

 

 willful on the Executive’s part or which is committed in bad faith or
without reasonable belief by the Executive, that such breach is in the best
interests of the Company, and which is not remedied in a reasonable period of
time after receipt of written notice from the Company specifying such breach or
(ii) the conviction of the Executive of a felony involving moral turpitude or
the guilty or nolo contendere plea of the Executive to such a felony. Any act,
or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of a senior officer of the
Company or based upon the advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company.

                     (c)

Termination Other Than for Cause. The Company may terminate the
Executive’s employment during the Employment Period for other than Cause, Death
or Disability.

                     (d)

Good Reason. The Executive’s employment may be terminated by the
Executive for Good Reason. For purposes of this Agreement, “Good Reason” shall
mean in the absence of a written consent of the Executive:

                            (i) the

assignment to the Executive of any duties inconsistent in any
material respect with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as
contemplated by Section 2(a) of this Agreement, or any other action by the
Company which results in a material diminution in such position, authority,
duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

                            (ii) any

material failure by the Company to comply with any of the
provisions of Section 2(b) of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

                            (iii) the

Company’s requiring the Executive to be based at any office or
location more than thirty-five (35) miles from that provided in Section 2(a)
hereof;

                            (iv) any

purported termination by the Company of the Executive’s
employment otherwise than as expressly permitted by this Agreement; or

                            (v) any

failure by the Company to comply with and satisfy Section 10(c) of
this Agreement.

     For purposes of this Section 3(c), any good faith determination of “Good
Reason” made by the Executive shall be conclusive.

                     (e)

Notice of Termination. Any termination by the Company for Cause, or
by the Executive, shall be communicated by Notice of Termination to the other
party hereto given in accordance with Section 11(b). For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts

4

 

 and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) if the Date
of Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than
fifteen (15) days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance shall not waive any right of the Executive or the Company
hereunder or preclude the Executive or the Company from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights hereunder,
except to the extent that the Executive or the Company, as the case may be,
demonstrates that it is prejudiced by such failure.

                     (f)

Date of Termination. “Date of Termination” means (i) if the
Executive’s employment is terminated by the Company for Cause, or by the
Executive, the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be, (ii) if the Executive’s employment is
terminated by the Company other than for Cause or Disability, the Date of
Termination shall be the date on which the Company notifies the Executive of
such termination, or (iii) if the Executive’s employment is terminated by
reason of death or Disability, the Date of Termination shall be the date of
death of the Executive or the Disability Effective Date, as the case may be.

     4.     Obligations of the Company upon Termination.

                     (a)

Good Reason; Other Than for Cause, Death or Disability. If, during
the Employment Period, the Company shall terminate the Executive’s employment
other than for Cause, Death or Disability, or the Executive shall terminate
employment for Good Reason, then the Company shall: (1) continue to pay the
Executive’s Annual Base Salary, payable in accordance with the Company’s normal
payroll policies during the Employment Period; (2) be obligated to pay the
Executive, to the extent not theretofore paid, an amount equal to the Annual
Bonus paid or payable, including by reason of any deferral, to the Executive
for the most recently completed fiscal year during the Employment Period, if
any; (3) pay the Executive any compensation previously deferred by the
Executive (together with any accrued interest or earnings thereon) to the
extent not therefore paid; and (4) any accrued vacation pay, to the extent not
therefore paid (the sum of the amounts described in clauses (1), (2), (3) and
(4) shall be hereinafter referred to as the “Accrued Obligations”). All
Accrued Obligations referred to in clauses (2), (3) and (4) above shall be paid
to the Executive in a lump sum payment in cash within thirty (30) days of the
Date of Termination. All of the Executive’s unvested stock options will vest as
of the Date of Termination.

                     (b)

Death. If the Executive’s employment is terminated by reason of the
Executive’s death during the Employment Period, this Agreement shall terminate
without further obligations to the Executive’s legal representatives under this
Agreement, other than for payment of Accrued Obligations (which shall be paid
to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash
within thirty (30) days of the Date of Termination). All of the Executive’s
options that would have vested within one (1) year from the date of death will
vest, but Executive will forfeit any unvested options scheduled to vest after
one (1) year from the date of death. All vested options will expire unless
exercised (and all outstanding loans resulting from the prior exercise of any
options must be repaid) within eighteen (18) months of the Date of Termination.

5

 

                     (c)

Cause, Other Than for Good Reason. If the Executive’s employment
shall be terminated for Cause or the Executive terminates his employment
without Good Reason during the Employment Period, this Agreement shall
terminate without further obligations to the Executive other than the
obligation to pay to the Executive his Annual Base Salary through the Date of
Termination plus Other Benefits and the amount of any compensation previously
deferred by the Executive, in each case to the extent theretofore unpaid. All
of the Executive’s unvested stock options will be forfeited and the Executive
must exercise any vested but unexercised options and repay any outstanding
loans resulting from the prior exercise of any options within ninety (90) days
(unless a longer period is designated).

                     (d)

Disability. If the Executive’s employment shall be terminated by
reason of the Executive’s Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits. Accrued Obligations shall be paid to the Executive in a lump
sum in cash within thirty (30) days of the Date of Termination. The Executive
shall be entitled after the Disability Effective Date to receive, disability
and other benefits as in effect at any time thereafter generally with respect
to other senior executives of the Company. All of the Executive’s options that
would have vested within two (2) years of the Date of Termination will
immediately vest. All vested options will expire unless exercised (and all
outstanding loans resulting from the prior exercise of any options must be
repaid) within eighteen (18) months of the Date of Termination.

                     (e)

Time of Payment. The Company shall make all payments required by this
Section 4 within the time periods provided in Sections 4(a), 4(b) and 4(c);
provided, however, that in the event that any such payments would be
non-deductible to the Company under the provisions of Section 162(m) of the
Internal Revenue Code of 1986, as amended (the “Code”), and the Executive is a
“covered employee” as defined in Treas. Reg. Section 1.162-27(c)(2) for the
taxable year of the Company during which the Date of Termination occurred or
for the immediately preceding year, the Company shall make any such payment not
earlier than ninety (90) days following the end of the Company’s taxable year
during which the Executive last was a “covered employee.”

                     (f)

Nondisclosure to Media. After the Date of Termination or the end of
Employment Period, the Executive agrees that he will not discuss his employment
and resignation or termination (including the terms of this Agreement) with any
representatives of the media, either directly or indirectly, without the
written consent and approval of the Company.

     5. Nonexclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any plan, program,
policy or practice provided by the Company and for which the Executive may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Executive may have under any contract or agreement with the Company. Amounts
which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any contract or
agreement with the Company at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

6

 

     6.     Full Settlement; Resolution or Disputes.

                     (a) The

Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against the Executive or others. In
no event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and, except as provided in Section 8(a)
with respect to non-competition, such amounts shall not be reduced whether or
not the Executive obtains other employment. The Company agrees to pay promptly
as incurred, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof unless a court of competent jurisdiction determines that
the Executive acted in Bad Faith in initiating the contest) by the Company, the
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive about the amount of any
payment pursuant to this Agreement), plus in each case interest on any delayed
payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of
the Code; provided however, that the reasonableness of the fees and expenses
must be determined by an independent arbitrator, using standard legal
principles, mutually agreed upon by the Company and the Executive in accordance
with rules set forth by the American Arbitration Association.

                     (b) If

there shall be any dispute between the Company and the Executive in
the event of any termination of the Executive’s employment by the Company or by
the Executive, then, unless and until there is a final, nonappealable judgment
by a court of competent jurisdiction declaring that such termination was for
Cause, the Company shall pay all amounts, and provide all benefits, to the
Executive and/or the Executive’s family or other beneficiaries, as the case may
be, that the Company would be required to pay or provide pursuant to Section
4(a) as though such termination were by the Company without Cause or by the
Executive for Good Reason; provided, however, that the Company shall not be
required to pay any disputed amounts pursuant to this paragraph except upon
receipt of an undertaking (which may be unsecured) by or on behalf of the
Executive to repay all such amounts to which the Executive is ultimately
adjudged by such court not to be entitled.

     7.     Confidential Information.

                     (a) The

Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data relating
to the Company or any of its affiliated companies, and their respective
businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement).
After termination of the Executive’s employment with the Company, the Executive
shall not, without the prior written consent of the Company or except as may
otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 7 constitute a basis for deferring or withholding any amounts

7

 

 otherwise payable to the Executive under this Agreement.

                     (b) In

the event of a breach or threatened breach of this Section 7, the
Executive agrees that the Company shall be entitled to injunctive relief in a
court of appropriate jurisdiction to remedy any such breach or threatened
breach, and the Executive acknowledges that damages would be inadequate and
insufficient.

                     (c) Any

termination of the Executive’s employment or of this Agreement
shall have no effect on the continuing operation of this Section 7.

     8.     Non-Compete; Non-Solicitation.

                     (a) For

the period commencing on the date hereof and ending on the earlier
of (i) the date that is twenty-four (24) months after the Executive ceases to
be employed by the Company, or (ii) the first date on which the Company fails
to punctually make any payment(s) that it is required to make under Section
4(a) without any set-off or deduction other than as required by applicable
Federal, state or local law or with respect to any employee benefit plan in
which the Executive continues to participate (the “Non-Competition Period”),
the Executive shall not in the United States of America, directly or
indirectly, either for himself or any other person, own, manage, control,
materially participate in, invest in, permit his name to be used by, act as
consultant or advisor to, render material services for (alone or in association
with any person, firm, corporation or other business organization) or otherwise
assist in any manner any entity that engages in or owns, invests in, manages or
controls any venture or enterprise engaged in the business of making loans or
leases secured by equipment to private equity-backed companies in the life
science industry (or any other business of the type that constitutes a
substantial portion of the Company’s business at the date the Executive ceases
to be employed by the Company) (collectively, a “Competitor”). Nothing herein
shall prohibit the Executive from being a passive owner of not more than 4.99%
of the equity securities of a corporation engaged in such business which is
publicly traded, so long as he has no active participation in the business of
such corporation.

                     (b) During

the Non-Competition Period, the Executive shall not, directly
or indirectly, (i) induce or attempt to induce or aid others in inducing an
employee of the Company to leave the employ of the Company, or in any way
interfere with the relationship between the Company and an employee of the
Company except in the proper exercise of the Executive’s authority, or (ii)
induce or attempt to induce any customer to cease doing business with the
Company or not to obtain funding from the Company, or in any way interfere with
the relationship between the Company and any customer or other business
relation of the Company.

                     (c) If,

at the time of enforcement of this Section 8, a court shall hold
that the duration, scope, area or other restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope, area or other restrictions reasonable under such
circumstances shall be substituted for the stated duration, scope, area or
other restrictions.

                     (d) The

covenants made in this Section 8 shall be construed as an
agreement

8

 

 independent of any other provisions of this Agreement, and shall survive
the termination of this Agreement. Moreover, the existence of any claim or
cause of action of the Executive against the Company or any of its affiliates,
whether or not predicated upon the terms of this Agreement, shall not
constitute a defense to the enforcement of these covenants.

     9.     Indemnity. The Company will indemnify the Executive, in his capacity
as an officer and director of the Company, to the fullest extent permitted by
the Company’s Articles of Incorporation and Bylaws.

     10.     Successors.

                     (a) This

Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and shall be enforceable by the Executive’s legal
representatives.

                     (b) This

Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

                     (c) The

Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
As used in this Agreement, “Company” shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

     11.     Miscellaneous.

                     (a) This

Agreement shall be governed by and construed in accordance with
the laws of the Commonwealth of Virginia, without reference to principles of
conflict of laws. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

                     (b) All

notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 
	If to the Executive to:	 	
If to the Company to:
	 
	J. Alden Philbrick, IV

Orchard Lane

Alexandria, Virginia 22302	 	
Oxford Finance Corporation

133 North Fairfax Street

Alexandria, Virginia 22314.

Attention: Corporate Secretary

     or to such other address as either party shall have furnished to the other in
writing in

9

 

accordance herewith. Notice and communications shall be effective when
actually received by the addressee.

                     (c) The

invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

                     (d) The

Company may withhold from any amounts payable under this Agreement
such Federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

                     (e) The

Executive’s or the Company’s failure to insist upon strict
compliance with any provision hereof or any other provision of this Agreement
or the failure to assert any right the Executive or the Company may have
hereunder, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                     (f) Any

entitlements to the Executive created under Section 2(b) shall be
contract rights to the extent not prohibited by law. However, the Company
shall not be required to amend, or refrain from amending, any of its plans,
practices, policies and programs to so provide the contract rights.

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement as
of the day and year first above written.

	 	 	 
	 	COMPANY:	 
	 
	 	OXFORD FINANCE CORPORATION,

a Maryland corporation	 
	 
	 	By: /s/ J. ALDEN PHILBRICK, IV	 
	 	

Name: J. Alden Philbrick, IV	 
	 	

Title: President, Chief Executive Officer

          and Chairman of the Board	 
	 	
	 
	 
	 	EMPLOYEE:	 
	 
	 	J. ALDEN PHILBRICK, IV	 
	 	 
	 	/s/ J. ALDEN PHILBRICK, IV
	 	

	 

10

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