Document:

Terra Nova Financial Group, Inc. - Exhibit 10.3

EXHIBIT 10.3 
 

 
CONFIDENTIAL RESIGNATION AGREEMENT AND
  MUTUAL RELEASE 

   

 

                 This
Confidential Resignation Agreement and Mutual Release (the "Mutual Release") is
entered into between M. Patricia Kane ("you") and Terra Nova Financial Group,
Inc. (the "Company"). Because this is a legally binding document, you are advised
to consult with an attorney before signing it. 

                 You
and the Company have determined that it is in their respective best interests
for you to resign your employment and relinquish all positions and appointments
with the Company. You and the Company also wish to resolve any and all disputes
that do exist or may exist relating to your employment or resignation. 

                 In
consideration of the above statements and the promises and undertaking set forth
herein, you and the Company agree as follows: 

                 1.
            You agree
that you have resigned your employment and all positions and appointments with
the Company and with any affiliated or related entities effective November 19,
2007 (the "Resignation Date"). 

                 2.
            On your
own behalf and on behalf of anyone claiming through you, including your past,
present, and future spouses, family members, estate, heirs, agents, attorneys
or representatives, you hereby waive, release, and forever discharge the Company
and all of its parents, divisions, affiliates, related entities, and subsidiaries,
and their fiduciaries, administrators, members, directors, officers, agents, employees,
attorneys, predecessors, successors and assigns (all of the parties you waive,
release, and discharge by this Mutual Release will be referred to jointly as the
"Released Parties"), with respect to any and all claims or causes of action that
you now have, ever had, or will ever have or may allege to have, whether known
or unknown, arising on or before the date of this Mutual Release. Similarly, the
Company, on its own behalf and on behalf of anyone claiming through it, hereby
waives, releases, and forever discharges you with respect to any and all claims
or causes of action that the Company now has, ever had, or will ever have or may
allege to have, whether known or unknown, arising on or before the date of this
Mutual Release other than claims involving fraud or willful misconduct. 

                 3.
            This Mutual
Release includes any claims, demands, liabilities and causes of action that either
you or the Company may have against the other which arise from or relate to your
employment with or resignation of employment from the Company (other than, in
the case of the Company's release of you, any claims involving fraud or willful
misconduct, which are not included in this Mutual Release). You understand and
agree that the claims being waived, released, and discharged in this Mutual Release
include those arising under the Age Discrimination in Employment Act as amended
by the Older Workers Benefit Protection Act (the "ADEA"), Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1866, the Americans With Disabilities
Act, the Illinois Human Rights Act, the Cook County Human Rights Ordinance, the
City of Chicago Human Rights Ordinance, any other local, county, state or federal
fair employment law, the Fair Labor Standards Act, the Employee Retirement Income
Security Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification
Act, the Family and Medical Leave Act, and any other statute, regulation, executive
order or ordinance, and any and all claims based upon alleged wrongful or retaliatory
discharge, intentional infliction of emotional distress, defamation, invasion
of privacy, personal or business injury, negligence, breach of contract or any
other contract or tort claims under the common law. In the event of any future
proceedings based upon any matter released herein, it is agreed that you and the
Company are not entitled to and will not receive any further recovery. 

                 4.
            You represent
and warrant that you are the sole owner of the actual or alleged claims, demands,
rights, causes of action and other matters relating to your employment with the
Company or the cessation of your employment that are released herein; that the
same have not been assigned, transferred 

 

  

or disposed of by fact, by operation of law, or in any manner whatsoever; and
that you have the full right and power to grant, execute, and deliver the releases,
undertakings and agreements contained herein. You further represent and warrant
that you have not filed or initiated any legal, equitable, administrative or any
other proceedings against any of the Released Parties, and that no such proceeding
has been filed or initiated on your behalf. 

                 5.
            Notwithstanding
the foregoing, the release provided in Section 2 will not extend to the following:
(a) any right to continue your group health insurance coverage pursuant to applicable
law; (b) any benefits in which you have vested under any 401(k) plan; (c) any
salary payments owed to you through the Resignation Date; (d) any amounts owed
to you for accrued, but unused vacation,; (e) any claim for breach of this Mutual
Release; (f) any amounts due to you as business expenses (which will not exceed
$4,000.00 and which will only be reimbursed upon submission of appropriate supporting
documentation consistent with the terms of the Company's policies); and (g) any
claim that cannot be released by law. You and the Company agree that during your
employment you were issued a total of 360,000 warrants at an exercise price of
$2.50 (this is the adjusted number of warrants and exercise price following the
Company's reverse stock split) for the purchase of the common stock of the Company
pursuant to the Common Stock Purchase Warrant attached hereto as Exhibit A (the
"Warrant"). You and the Company agree simultaneous with the execution of this
Mutual Release to execute that certain amendment to the Warrant attached hereto
as Exhibit B. On and after the date hereof, your warrants will be governed by
the terms of the amended Warrant. Pursuant to the terms thereof, and in the absence
of a Change of Control as defined therein, the following vesting terms will apply:
90,000 warrants already have vested; an additional 90,000 warrants will vest on
August 4, 2008; and the remaining 180,000 will vest on August 4, 2009. It is understood
that the termination of your employment will not divest you of the aforesaid 360,000
warrants. 

                 6.
            In lieu
of and in full satisfaction of any and all amounts or other entitlements that
are or may be owed or alleged to be owed, now or in the future, under any agreement,
letter of agreement, bonus, benefit, or commission or other compensation plan,
program or arrangement between you and the Company (other than amounts described
in Section 5), any amounts due to you as business expenses other than as described
in Section 5(f), and in consideration for your representations, warranties, covenants,
and agreements herein, the Company agrees to provide the following (the "Separation
Payments and Benefits"): 

                 (a)
          the Company will provide
you with a lump sum payment in the amount Two Hundred Ninety Five Thousand Dollars
($295,000.00), less applicable deductions required by law. This lump sum payment
will be made within fourteen (14) days after the expiration of the revocation
period described in Section 22 below, provided that you have not revoked this
Mutual Release; 

                 (b)
          if you elect and are eligible
for continuation coverage under the Company's group health care plan in accordance
with the requirements of COBRA, the Company will pay the monthly premiums for
such coverage for six (6) months following the Resignation Date. After the end
of this six-month period, you will be solely responsible for your monthly premiums
to the extent you elect to continue your COBRA coverage; and 

                 (c)
          the Company will enter
into that amendment to your Stock Option Agreement (the "Stock Option Agreement")
attached hereto as Exhibit C. This amendment will be entered into immediately
upon the expiration of the revocation period described in Section 22 below, provided
that you have not revoked this Mutual Release, and will be deemed to be effective
retroactive to your Resignation Date.

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                 7.
            You represent
and warrant that, other than amounts described in Sections 5(c), (d), and (f),
you have received all wages, salary, commissions, bonuses, other compensation,
and benefits that may have been owed to you because of your employment. The Company
acknowledges that there are no moneys due the Company by you for unpaid credit
card balances, outstanding employee loans, or other debts to the Company. 

                 8.
            You agree
to cooperate with the Company in any current or future litigation or potential
litigation or other legal matters, including any arbitrations or regulatory inquiries
or investigations, in any reasonable manner as the Company may request, including
but not limited to meeting at times and dates reasonably requested by the Company,
and fully and truthfully answering the questions of the Company or its representatives
or agents, and testifying and preparing to testify at any deposition or trial,
subject to reimbursement for reasonable out of pocket expenses and lost wages
verified by your employer, incurred as a result of such cooperation. You also
agree to provide truthful and timely answers to any reasonable questions the Company
may have about the work you performed during your employment. 

                 9.
            You represent
and warrant that all property of the Company in your possession or control has
been returned to the Company. Such property will include, without limitation,
all office equipment, keys, computer software or hardware, documents, internal
memoranda and records of any nature, together with all copies thereof, which relate
in any way to the Company's business or operation. The Company agrees to return
your rolodex and books personally purchased by you. 

                 10.
          You acknowledge and
agree that you remain bound by any and all confidentiality, non-solicitation,
anti-raiding, and non-compete agreements previously executed by you during your
employment at the Company and further agree to keep confidential all proprietary
and confidential information of the Company. 

                 11.
          You agree not to sue
any of the Released Parties, and the Company agrees not to sue you, with respect
to any matter relating to your employment with or resignation of employment from
the Company, except that you may seek a determination of the validity of the waiver
of your rights under the ADEA and the Company may bring claims relating to fraud
or willful misconduct. If you violate this covenant not to sue, other than by
seeking a determination of the validity of the waiver of your rights under the
ADEA, you will be liable to the Released Party or Parties for its or their reasonable
attorneys' fees and other litigation costs incurred in defending against such
a suit. If the Company violates this covenant not to sue, other than by bringing
a claim for fraud or willful misconduct, the Company will be liable to you for
your reasonable attorneys' fees and other litigation costs incurred in defending
against such a suit. Nothing in this Mutual Release is intended to reflect any
party's belief that the waiver of your claims under the ADEA is invalid or unenforceable,
it being the intent of the parties that such claims are waived. 

                 12.
          You understand and
agree that the Separation Payments and Benefits are expressly conditioned upon
your representations and warranties in this Mutual Release and your compliance
with the terms hereof. If the representations and warranties in this Mutual Release
are inaccurate in any respect, you take any action inconsistent with those representations
and warranties, or you violate any of the terms of this Mutual Release, you will
not be paid, or you will be obligated to repay, as the case may be, the Separation
Payments and Benefits. This section will not limit either party's right to recover
damages, including attorney's fees, or obtain any other legal or equitable relief
to which it may be entitled by law. 

                 13.
          You agree that you
have no present or future right to, and will not apply for or accept, employment
with the Company or its affiliated or related entities. 

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                 14.
          This Mutual Release
does not constitute an admission by the Released Parties of any violation of any
law. The Released Parties expressly deny any such violation. This Mutual Release
is offered to you by the Company solely to avoid litigation. 

                 15.
          You understand and
agree that no promises or representations have been made by the Company respecting
the subject matter hereof other than those expressly set forth herein. Except
for the Warrant and the Stock Option Agreement (as both are amended hereby) and
as stated in Section 10, this Mutual Release constitutes the only agreement between
the parties respecting the subject matter hereof, and supersedes all prior agreements,
promises, representations and understandings, written or oral, between the parties
on such subject matter. Further, any modifications or amendments may be made only
in a written agreement between the parties. 

                 16.
          If any provision of
this Mutual Release is determined by a court of competent jurisdiction to be unenforceable
in any respect, then such provision will be deemed limited and restricted to the
maximum extent that the court will deem the provision to be enforceable, or, in
the event that this is not possible, the provision will be severed and all remaining
provisions will continue in full force and effect. However, in the event that
the waiver or release of any claim is found to be invalid or unenforceable and
cannot be modified as aforesaid, then you or the Company, as the case may be,
agrees that the other will promptly execute any appropriate documents that would
make the waiver or release valid and enforceable to the maximum extent permitted
by law. The invalidity or unenforceability of any provision of this Mutual Release
will not affect the validity or enforceability of any other provision hereof.

                 17.
          You and the Company
agree that the terms of this Mutual Release and any confidential matters concerning
your employment and resignation of employment with the Company will be kept confidential.
You and the Company agree not to reveal or engage in any conduct that might reveal
the terms of this Mutual Release to anyone except, in your case, members of your
immediate family, your attorneys, and your tax advisors, and, in the case of the
Company, its Board members and management with a need to know such information,
its attorneys, and its tax advisors and auditors (and, in the case of those individuals
to whom disclosures are made by either party, only after informing such individuals
of the confidential nature of the information being disclosed and obtaining the
agreement of those individuals to refrain from any further disclosures). You agree
not to make any oral or written statement to any third party that defames the
Company, including the Company's officers, employees or services. The Company
agrees that its senior management will not make any oral or written statements
to third parties that defame you. However, notwithstanding anything else in this
Section 17 or any other part of this Mutual Release, either party may make such
disclosures or statements as may be necessary for any regulatory disclosure, as
otherwise required by law, or as necessary for legitimate business purposes (and
in that case only if the party receiving the information is subject to confidentiality
obligations). 

                 18.
          You understand and
agree that this Mutual Release will be binding upon your heirs, assigns, administrators,
executors and legal representatives and will inure to the benefit of the Company,
its successors and assigns. In the event of your death, the Separation Payments
and Benefits will be paid to your heirs and/or estate in a manner as required
by law. 

                 19.
          The internal law (and
not the law of conflicts) of the State of Illinois will govern all questions concerning
the construction, validity, and interpretation of this Mutual Release. This Mutual
Release may be executed in multiple counterparts, each of which will constitute
an original. 

                 20.
          The Company agrees
that it will reimburse you for, or pay directly on your behalf, any fine assessed
against you by FINRA arising from or relating to your employment with the Company.
You agree that the Company will have the right, but not the obligation, to challenge
at its sole expense any finding, disciplinary action, sanction, or fine by FINRA
against you ("Regulatory Action"). If the 

  

  

4

Company elects to bring such a challenge, you agree that the Company will control
the legal defense, that you will cooperate fully with that defense, and that the
Company may reach whatever settlement or other resolution the Company deems to
be appropriate, subject to your right to reject such settlement or other resolution
as described below. If the Company does not challenge the Regulatory Action, you
may do so at your own risk and expense and the Company will be relieved of all
obligations to you under this Section 20. In addition, you may reject any settlement
or other resolution reached by the Company, in which case any further proceedings
relating to the Regulatory Action also will be at your own risk and expense and
the Company will be relieved of all obligations to you under this Section 20.

                 21.
          By signing this Mutual
Release, you and the Company acknowledge that: (a) you and the Company have thoroughly
read and understand this Mutual Release; (b) you have received at least 21 days
to consider the terms of this Mutual Release before signing it; (c) you have been
advised to seek legal counsel concerning the terms of this Mutual Release before
signing it and you in fact have received such legal counsel; (d) you have signed
this Mutual Release knowingly and voluntarily, without duress or reservation of
any kind; (e) neither you nor the Company is waiving any claims or rights that
may arise after execution of this Mutual Release; and (f) the Separation Payments
and Benefits promised to you in return for your execution of this Mutual Release
include payments you would not otherwise be entitled to receive. 

                 22.
          You have the right
to revoke this Mutual Release within 7 days of signing it by providing written
notice of such revocation to the Company, c/o Michael Nolan, President. Your revocation
must be received by the Company before the close of business on the last day of
the revocation period to be valid. This Mutual Release will not be valid or enforceable
until the revocation period has expired and then only if your signature has not
been revoked. 

5

  

  

So Agreed:

	________________________________________	________________________________________
	Employee [PRINT NAME] 	Date 
	 	 
	 	 
	________________________________________	 
	Employee [SIGNATURE] 	 
	 	 
	 	 
	TERRA NOVA FINANCIAL GROUP, INC.	 
	 	 
	 	 
	 	 
	By: ______________________________________	 
	 	 
	 	 
	Its: ______________________________________	________________________________________
	 	Date 
	 	 

 In order to receive the Separation Payments and Benefits offered
herein, you are required to sign and return this Mutual Release within twenty-one
(21) days of its receipt by you. Your Mutual Release may not be signed before
the Resignation Date. 

6

Exhibit A to Mutual Release 

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES. 

COMMON STOCK PURCHASE WARRANT 

  

  To Purchase 3,600,000 Shares of Common Stock of 

  

  RUSH FINANCIAL TECHNOLOGIES, INC. 

  

  August 4, 2006 

                 THIS
COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for value
received, M. Patricia Kane (the "Holder"), is entitled, upon the terms
and subject to the limitations on exercise and the conditions hereinafter set
forth, at any time on or after the date hereof (the "Initial Exercise Date")
and on or prior to the close of business on the fifth anniversary of the Initial
Exercise Date (the "Termination Date") but not thereafter, to subscribe
for and purchase from Rush Financial Technologies, Inc., a Texas corporation (the
"Company"), up to 3,600,000shares (the "Warrant Shares") of Common
Stock, par value $0.01 per share, of the Company (the "Common Stock").
The purchase price of one share of Common Stock under this Warrant shall be equal
to the Exercise Price, as defined in Section 1(c). 

	 	Section 1.   Exercise. 

      

                       Exercise
      of Warrant. Exercise of the purchase rights represented by this Warrant
      may be made, in whole or in part, at any time or times on or after the Initial
      Exercise Date and on or before the Termination Date by delivery to the Company
      of a duly executed facsimile copy of the Notice of Exercise Form annexed
      hereto (or such other office or agency of the Company as it may designate
      by notice in writing to the registered Holder at the address of such Holder
      appearing on the books of the Company); provided, however, within 5 Trading
      Days of the date said Notice of Exercise is delivered to the Company, if
      this Warrant is exercised in full, the Holder shall have surrendered this

  

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	 	Warrant to the Company and the Company shall
      have received payment of the aggregate Exercise Price of the shares thereby
      purchased by wire transfer or cashier's check drawn on a United States bank.
      Notwithstanding anything herein to the contrary, the Holder shall not be
      required to physically surrender this Warrant to the Company until the Holder
      has purchased all of the Warrant Shares available hereunder and the Warrant
      has been exercised in full. Partial exercises of this Warrant resulting
      in purchases of a portion of the total number of Warrant Shares available
      hereunder shall have the effect of lowering the outstanding number of Warrant
      Shares purchasable hereunder in an amount equal to the applicable number
      of Warrant Shares purchased. The Holder and the Company shall maintain records
      showing the number of Warrant Shares purchased and the date of such purchases.
      The Company shall deliver any objection to any Notice of Exercise Form within
      1 Business Day of receipt of such notice. In the event of any dispute or
      discrepancy, the records of the Holder shall be controlling and determinative
      in the absence of manifest error. The Holder and any assignee, by acceptance
      of this Warrant, acknowledge and agree that, by reason of the provisions
      of this paragraph, following the purchase of a portion of the Warrant Shares
      hereunder, the number of Warrant Shares available for purchase hereunder
      at any given time may be less than the amount stated on the face hereof.
      

      

                       (b)
      Initial Exercise Date and Vesting Schedule. The Warrant Shares available
      hereunder shall vest and be exercisable at the following times: 
	 	 
	 	
      25% after 12 months; 

        

        another 25% after 24 months; and 

        

        the remaining 50% after 36 months. 

    
	 	 
	 	                 (c)
      Exercise Price. The exercise price of the Common Stock under this
      Warrant shall be $0.25, subject to adjustment hereunder (the "Exercise
      Price"). 

      

                       (d)
      Acceleration. This Warrant shall be immediately exercisable (i) upon
      the termination of employment of the Holder by the Company if such employment
      is terminated (A) without "Cause," or (B) with "Good Reason," or (ii) upon
      a "Change of Control," (as each such term in clauses (i) and (ii) is defined
      in that certain Employment Agreement, dated June __, 2006, by and between
      the Holder and the Company) and this Warrant will become exercisable for
      100% of the shares underlying this Warrant, whether or not such shares have
      vested pursuant to Section 1(b). 

      

                       (e)
      Cashless Exercise. At any time after one year from the date of issuance
      of this Warrant or at such earlier time as any portion of this Warrant may
      vest pursuant to Section 1(d), the vested portion of this Warrant
      may be exercised by payment of the Exercise Price in cash or by means of
      a "cashless exercise" in which the Holder shall be entitled to receive a
      certificate for the number of Warrant Shares equal to the quotient obtained
      by dividing [(A-B) (X)] by (A), where: 

8

	 	(A) = 	the Volume Waited Average Price of the Common
      Stock (the "VWAP") on the Trading Day immediately preceding the date of
      such election; 
	 	 	 
	 	(B) =	the Exercise Price of this Warrant, as adjusted;
      and 
	 	 	 
	 	(X) = 	the number of Warrant Shares issuable upon
      exercise of this Warrant in accordance with the terms of this Warrant by
      means of a cash exercise rather than a cashless exercise. 

                 Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section 1(e). 

	 	                 (f)
      Mechanics of Exercise. 

	 	 	i. Authorization of Warrant Shares.
      The Company covenants that all Warrant Shares which may be issued upon the
      exercise of the purchase rights represented by this Warrant will, upon exercise
      of the purchase rights represented by this Warrant, be duly authorized,
      validly issued, fully paid and nonassessable and free from all taxes, liens
      and charges in respect of the issue thereof (other than taxes in respect
      of any transfer occurring contemporaneously with such issue). 

      

      ii. Delivery of Certificates Upon Exercise. Certificates for shares
      purchased hereunder shall be transmitted by the transfer agent of the Company
      to the Holder by crediting the account of the Holder's prime broker with
      the Depository Trust Company through its Deposit Withdrawal Agent Commission
      ("DWAC") system if the Company is a participant in such system, and
      otherwise by physical delivery to the address specified by the Holder in
      the Notice of Exercise within 3 Trading Days from the delivery to the Company
      of the Notice of Exercise Form, surrender of this Warrant (if required)
      and payment of the aggregate Exercise Price as set forth above either in
      cash or through a cashless exercise ("Warrant Share Delivery Date").
      This Warrant shall be deemed to have been exercised on the date the Exercise
      Price is received by the Company. The Warrant Shares shall be deemed to
      have been issued, and Holder or any other person so designated to be named
      therein shall be deemed to have become a holder of record of such shares
      for all purposes, as of the date the Warrant has been exercised by payment
      to the Company of the Exercise Price and all taxes required to be paid by
      the Holder, if any, pursuant to Section 1(f)(vi) prior to the issuance of
      such shares, have been paid. 

      

      iii. Delivery of New Warrants Upon Exercise. If this Warrant shall
      have been exercised in part, the Company shall, at the request of a Holder
      and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver
      to Holder a 

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	 	 	new Warrant evidencing the rights of Holder
      to purchase the unpurchased Warrant Shares called for by this Warrant, which
      new Warrant shall in all other respects be identical with this Warrant.
      

      

      iv. Rescission Rights. If the Company fails to cause its transfer
      agent to transmit to the Holder a certificate or certificates representing
      the Warrant Shares pursuant to this Section 1(f)(iv) by the Warrant Share
      Delivery Date, then the Holder will have the right to rescind such exercise.
      

      

      v. No Fractional Shares or Scrip. No fractional shares or scrip representing
      fractional shares shall be issued upon the exercise of this Warrant. As
      to any fraction of a share which Holder would otherwise be entitled to purchase
      upon such exercise, the Company shall pay a cash adjustment in respect of
      such final fraction in an amount equal to such fraction multiplied by the
      Exercise Price. 

      

      vi. Charges, Taxes and Expenses. Issuance of certificates for Warrant
      Shares shall be made without charge to the Holder for any issue or transfer
      tax or other incidental expense in respect of the issuance of such certificate,
      all of which taxes and expenses shall be paid by the Company, and such certificates
      shall be issued in the name of the Holder or in such name or names as may
      be directed by the Holder; provided, however, that in the event certificates
      for Warrant Shares are to be issued in a name other than the name of the
      Holder, this Warrant when surrendered for exercise shall be accompanied
      by the Assignment Form attached hereto duly executed by the Holder; and
      the Company may require, as a condition thereto, the payment of a sum sufficient
      to reimburse it for any transfer tax incidental thereto. 

      

      vii. Closing of Books. The Company will not close its stockholder
      books or records in any manner which prevents the timely exercise of this
      Warrant, pursuant to the terms hereof. 

	 	                 (g)
      Conditions. This Warrant shall not be delivered to Holder and shall
      not be exercisable in whole or in part until the following conditions have
      been satisfied by the Company: 

	 	 	i. Amendment. The Company shall have
      amended its articles of incorporation to authorize additional shares of
      common stock, and 

      

      ii. Form S-8. The Company shall have filed a Form S-8 covering the
      registration for resale of the shares of common stock issuable upon exercise
      of this Warrant. 

                 Section
2.                      Certain
Adjustments. 

	 	                 (a)
      Stock Dividends and Splits. If the Company, at any time while this
      Warrant is outstanding: (A) pays a stock dividend or otherwise make a distribution
      or distributions 

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	 	on shares of its Common Stock or any other
      equity or equity equivalent securities payable in shares of Common Stock
      (which, for avoidance of doubt, shall not include any shares of Common Stock
      issued by the Company pursuant to this Warrant), (B) subdivides outstanding
      shares of Common Stock into a larger number of shares, (C) combines (including
      by way of reverse stock split) outstanding shares of Common Stock into a
      smaller number of shares, or (D) issues by reclassification of shares of
      the Common Stock any shares of capital stock of the Company, then in each
      case the Exercise Price shall be multiplied by a fraction of which the numerator
      shall be the number of shares of Common Stock (excluding treasury shares,
      if any) outstanding immediately before such event and of which the denominator
      shall be the number of shares of Common Stock outstanding immediately after
      such event and the number of shares issuable upon exercise of this Warrant
      shall be proportionately adjusted. Any adjustment made pursuant to this
      Section 3(a) shall become effective immediately after the record date for
      the determination of stockholders entitled to receive such dividend or distribution
      and shall become effective immediately after the effective date in the case
      of a subdivision, combination or re classification. 

      

                       (b)
      Pro Rata Distributions. If the Company, at any time prior to the
      Termination Date, shall distribute to all holders of Common Stock (and not
      to Holders of the Warrants) evidences of its indebtedness or assets (including
      cash and cash dividends) or rights or warrants to subscribe for or purchase
      any security other than the Common Stock, then in each such case the Exercise
      Price shall be adjusted by multiplying the Exercise Price in effect immediately
      prior to the record date fixed for determination of stockholders entitled
      to receive such distribution by a fraction of which the denominator shall
      be the VWAP determined as of the record date mentioned above, and of which
      the numerator shall be such VWAP on such record date less the then per share
      fair market value at such record date of the portion of such assets or evidence
      of indebtedness so distributed applicable to one outstanding share of the
      Common Stock as determined by the Board of Directors in good faith. In either
      case the adjustments shall be described in a statement provided to the Holder
      of the portion of assets or evidences of indebtedness so distributed or
      such subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above. 

      

                       (c)
      Fundamental Transaction. If, at any time while this Warrant is outstanding,
      (A) the Company effects any merger or consolidation of the Company with
      or into another Person, (B) the Company effects any sale of all or substantially
      all of its assets in one or a series of related transactions, (C) any tender
      offer or exchange offer (whether by the Company or another Person) is completed
      pursuant to which holders of Common Stock are permitted to tender or exchange
      their shares for other securities, cash or property, or (D) the Company
      effects any reclassification of the Common Stock or any compulsory share
      exchange pursuant to which the Common Stock is effectively converted into
      or exchanged for other securities, cash or property (in any such case, a
      "Fundamental Transaction"), then, upon any subsequent exercise of
      this Warrant, the Holder shall have the right to receive, for each Warrant
      Share that would have been issuable upon such exercise immediately prior
      to the occurrence of such Fundamental Transaction, at the option of the
      Holder, (a) upon exercise of this Warrant, the number of 

11

	 	shares of Common Stock of the successor or
      acquiring corporation or of the Company, if it is the surviving corporation,
      and any additional consideration (the "Alternate Consideration")
      receivable upon or as a result of such reorganization, reclassification,
      merger, consolidation or disposition of assets by a Holder of the number
      of shares of Common Stock for which this Warrant is exercisable immediately
      prior to such event or (b) if the Company is acquired in an all cash transaction,
      cash equal to the value of this Warrant as determined in accordance with
      the Black-Scholes option pricing formula. For purposes of any such exercise,
      the determination of the Exercise Price shall be appropriately adjusted
      to apply to such Alternate Consideration based on the amount of Alternate
      Consideration issuable in respect of one share of Common Stock in such Fundamental
      Transaction, and the Company shall apportion the Exercise Price among the
      Alternate Consideration in a reasonable manner reflecting the relative value
      of any different components of the Alternate Consideration. If holders of
      Common Stock are given any choice as to the securities, cash or property
      to be received in a Fundamental Transaction, then the Holder shall be given
      the same choice as to the Alternate Consideration it receives upon any exercise
      of this Warrant following such Fundamental Transaction. To the extent necessary
      to effectuate the foregoing provisions, any successor to the Company or
      surviving entity in such Fundamental Transaction shall issue to the Holder
      a new warrant consistent with the foregoing provisions and evidencing the
      Holder's right to exercise such warrant into Alternate Consideration. The
      terms of any agreement pursuant to which a Fundamental Transaction is effected
      shall include terms requiring any such successor or surviving entity to
      comply with the provisions of this Section 2(c) and insuring that this Warrant
      (or any such replacement security) will be similarly adjusted upon any subsequent
      transaction analogous to a Fundamental Transaction. 

      

                       (d)
      Calculations. All calculations under this Section 2 shall be made
      to the nearest cent or the nearest 1/100th of a share, as the case may be.
      For purposes of this Section 2, the number of shares of Common Stock deemed
      to be issued and outstanding as of a given date shall be the sum of the
      number of shares of Common Stock (excluding treasury shares, if any) issued
      and outstanding. 

      

                       (e)
      Voluntary Adjustment By Company. The Company may at any time during
      the term of this Warrant reduce the then current Exercise Price to any amount
      and for any period of time deemed appropriate by the Board of Directors
      of the Company. 

      

                       (f)
      Notice to Holders. 

	 	 	i. Adjustment to Exercise Price. Whenever
      the Exercise Price is adjusted pursuant to this Section 2, the Company shall
      promptly mail to each Holder a notice setting forth the Exercise Price after
      such adjustment and setting forth a brief statement of the facts requiring
      such adjustment. 

      

      ii. Notice to Allow Exercise by Holder. If (A) the Company shall
      declare a dividend (or any other distribution) on the Common Stock; (B)
      the Company shall declare a special nonrecurring cash dividend on or a redemption
      of the Common Stock; (C) the Company shall authorize the 

12

	 	 	granting to all holders of the Common Stock
      rights or warrants to subscribe for or purchase any shares of capital stock
      of any class or of any rights; (D) the approval of any stockholders of the
      Company shall be required in connection with any reclassification of the
      Common Stock, any consolidation or merger to which the Company is a party,
      any sale or transfer of all or substantially all of the assets of the Company,
      of any compulsory share exchange whereby the Common Stock is converted into
      other securities, cash or property; (E) the Company shall authorize the
      voluntary or involuntary dissolution, liquidation or winding up of the affairs
      of the Company; then, in each case, the Company shall cause to be mailed
      to the Holder at its last address as it shall appear upon the Warrant Register
      of the Company, at least 20 calendar days prior to the applicable record
      or effective date hereinafter specified, a notice stating (x) the date on
      which a record is to be taken for the purpose of such dividend, distribution,
      redemption, rights or warrants, or if a record is not to be taken, the date
      as of which the holders of the Common Stock of record to be entitled to
      such dividend, distributions, redemption, rights or warrants are to be determined
      or (y) the date on which such reclassification, consolidation, merger, sale,
      transfer or share exchange is expected to become effective or close, and
      the date as of which it is expected that holders of the Common Stock of
      record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing on the date of such notice to the effective date
      of the event triggering such notice. 

                 Section
3.                  Transfer
of Warrant. 

	 	                 (a)
      Transferability. Subject to compliance with any applicable securities
      laws, this Warrant and all rights hereunder are transferable, in whole or
      in part, upon surrender of this Warrant at the principal office of the Company,
      together with a written assignment of this Warrant substantially in the
      form attached hereto duly executed by the Holder or its agent or attorney
      and funds sufficient to pay any transfer taxes payable upon the making of
      such transfer. Upon such surrender and, if required, such payment, the Company
      shall execute and deliver a new Warrant or Warrants in the name of the assignee
      or assignees and in the denomination or denominations specified in such
      instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, and this Warrant
      shall promptly be cancelled. A Warrant, if properly assigned, may be exercised
      by a new holder for the purchase of Warrant Shares without having a new
      Warrant issued. 

      

                       (b)
      New Warrants. This Warrant may be divided or combined with other
      Warrants upon presentation hereof at the aforesaid office of the Company,
      together with a  

13

	 	written notice specifying the names and denominations
      in which new Warrants are to be issued, signed by the Holder or its agent
      or attorney. Subject to compliance with Section 3(a), as to any transfer
      which may be involved in such division or combination, the Company shall
      execute and deliver a new Warrant or Warrants in exchange for the Warrant
      or Warrants to be divided or combined in accordance with such notice. 

      

                       (c)
      Warrant Register. The Company shall register this Warrant, upon records
      to be maintained by the Company for that purpose (the "Warrant Register"),
      in the name of the record Holder hereof from time to time. The Company may
      deem and treat the registered Holder of this Warrant as the absolute owner
      hereof for the purpose of any exercise hereof or any distribution to the
      Holder, and for all other purposes, absent actual notice to the contrary.
      

      

                       (d)
      Transfer Restrictions. If, at the time of the surrender of this Warrant
      in connection with any transfer of this Warrant, the transfer of this Warrant
      shall not be registered pursuant to an effective registration statement
      under the Securities Act and under applicable state securities or blue sky
      laws, the Company may require, as a condition of allowing such transfer
      (i) that the Holder or transferee of this Warrant, as the case may be, furnish
      to the Company a written opinion of counsel (which opinion shall be in form,
      substance and scope customary for opinions of counsel in comparable transactions)
      to the effect that such transfer may be made without registration under
      the Securities Act and under applicable state securities or blue sky laws,
      (ii) that the holder or transferee execute and deliver to the Company an
      investment letter in form and substance acceptable to the Company and (iii)
      that the transferee be an "accredited investor" as defined in Rule 501(a)(1),
      (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the Securities Act or
      a qualified institutional buyer as defined in Rule 144A(a) under the Securities
      Act. 

                 Section
4.                  Miscellaneous.

	 	                 (a)
      Title to Warrant. Prior to the Termination Date and subject to compliance
      with applicable laws and Section 3 of this Warrant, this Warrant and all
      rights hereunder are transferable, in whole or in part, at the office or
      agency of the Company by the Holder in person or by duly authorized attorney,
      upon surrender of this Warrant together with the Assignment Form annexed
      hereto properly endorsed. The transferee shall sign an investment letter
      in form and substance reasonably satisfactory to the Company. 

      

                       (b)
      No Rights as Shareholder Until Exercise. This Warrant does not entitle
      the Holder to any voting rights or other rights as a shareholder of the
      Company prior to the exercise hereof. Upon the surrender of this Warrant
      and the payment of the aggregate Exercise Price (or by means of a cashless
      exercise), the Warrant Shares so purchased shall be and be deemed to be
      issued to such Holder as the record owner of such shares as of the close
      of business on the later of the date of such surrender or payment. 

      

                       (c)
      Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants
      that upon receipt by the Company of evidence reasonably satisfactory to
      it of the loss, theft, destruction or mutilation of this Warrant or any
      stock certificate relating to the Warrant Shares, and in case of loss, theft
      or destruction, of indemnity or security

  

14

	 	reasonably satisfactory to it (which, in the
      case of the Warrant, shall not include the posting of any bond), and upon
      surrender and cancellation of such Warrant or stock certificate, if mutilated,
      the Company will make and deliver a new Warrant or stock certificate of
      like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate. 

      

                       (d)
      Saturdays, Sundays, Holidays, etc. If the last or appointed day for
      the taking of any action or the expiration of any right required or granted
      herein shall be a Saturday, Sunday or a legal holiday, then such action
      may be taken or such right may be exercised on the next succeeding day not
      a Saturday, Sunday or legal holiday. 

      

                       (e)
      Authorized Shares. 

      

                       Subject
      to receipt of Shareholder Approval, the Company covenants that during the
      period the Warrant is outstanding, it will reserve from its authorized and
      unissued Common Stock a sufficient number of shares to provide for the issuance
      of the Warrant Shares upon the exercise of any purchase rights under this
      Warrant. The Company further covenants that its issuance of this Warrant
      shall constitute full authority to its officers who are charged with the
      duty of executing stock certificates to execute and issue the necessary
      certificates for the Warrant Shares upon the exercise of the purchase rights
      under this Warrant. The Company will take all such reasonable action as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      

      

                       Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not by any action, including, without limitation, amending its certificate
      of incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary
      action, avoid or seek to avoid the observance or performance of any of the
      terms of this Warrant, but will at all times in good faith assist in the
      carrying out of all such terms and in the taking of all such actions as
      may be necessary or appropriate to protect the rights of Holder as set forth
      in this Warrant against impairment. Without limiting the generality of the
      foregoing, the Company will (a) not increase the par value of any Warrant
      Shares above the amount payable therefor upon such exercise immediately
      prior to such increase in par value, (b) take all such action as may be
      necessary or appropriate in order that the Company may validly and legally
      issue fully paid and nonassessable Warrant Shares upon the exercise of this
      Warrant, and (c) use commercially reasonable efforts to obtain all such
      authorizations, exemptions or consents from any public regulatory body having
      jurisdiction thereof as may be necessary to enable the Company to perform
      its obligations under this Warrant. 

      

                       Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof. 

15

	 	                 (f)
      Jurisdiction. All questions concerning the construction, validity,
      enforcement and interpretation of this Warrant shall be determined in accordance
      with the laws of the State of Texas. 

      

                       (g)
      Restrictions. The Holder acknowledges that the Warrant Shares acquired
      upon the exercise of this Warrant, if not registered, will have restrictions
      upon resale imposed by state and federal securities laws. 

      

                       (h)
      Nonwaiver and Expenses. No course of dealing or any delay or failure
      to exercise any right hereunder on the part of Holder shall operate as a
      waiver of such right or otherwise prejudice Holder's rights, powers or remedies,
      notwithstanding the fact that all rights hereunder terminate on the Termination
      Date. If the Company willfully and knowingly fails to comply with any provision
      of this Warrant, which results in any material damages to the Holder, the
      Company shall pay to Holder such amounts as shall be sufficient to cover
      any costs and expenses including, but not limited to, reasonable attorneys'
      fees, including those of appellate proceedings, incurred by Holder in collecting
      any amounts due pursuant hereto or in otherwise enforcing any of its rights,
      powers or remedies hereunder. 

      

                       (i)
      Notices. Any notice, request or other document required or permitted
      to be given or delivered to the Holder by the Company shall be delivered
      to the Holder's address on file with the Company. 

      

                       (j)
      Limitation of Liability. No provision hereof, in the absence of any
      affirmative action by Holder to exercise this Warrant or purchase Warrant
      Shares, and no enumeration herein of the rights or privileges of Holder,
      shall give rise to any liability of Holder for the purchase price of any
      Common Stock or as a stockholder of the Company, whether such liability
      is asserted by the Company or by creditors of the Company. 

      

                       (k)
      Remedies. Holder, in addition to being entitled to exercise all rights
      granted by law, including recovery of damages, will be entitled to specific
      performance of its rights under this Warrant. The Company agrees that monetary
      damages would not be adequate compensation for any loss incurred by reason
      of a breach by it of the provisions of this Warrant and hereby agrees to
      waive the defense in any action for specific performance that a remedy at
      law would be adequate. 

      

                       (l)
      Successors and Assigns. Subject to applicable securities laws, this
      Warrant and the rights and obligations evidenced hereby shall inure to the
      benefit of and be binding upon the successors of the Company and the successors
      and permitted assigns of Holder. The provisions of this Warrant are intended
      to be for the benefit of all Holders from time to time of this Warrant and
      shall be enforceable by any such Holder or holder of Warrant Shares. 

      

                       (m)
      Amendment. This Warrant may be modified or amended or the provisions
      hereof waived with the written consent of the Company and the Holder. 

      

                       (n)
      Severability. Wherever possible, each provision of this Warrant shall
      be interpreted in such manner as to be effective and valid under applicable
      law, but if any 

16

	 	provision of this Warrant shall be prohibited
      by or invalid under applicable law, such provision shall be ineffective
      to the extent of such prohibition or invalidity, without invalidating the
      remainder of such provisions or the remaining provisions of this Warrant.
      

      

                       (o)
      Headings. The headings used in this Warrant are for the convenience
      of reference only and shall not, for any purpose, be deemed a part of this
      Warrant. 
	 	 
	 	
      ********************

    
	 	 

17

                 IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized. 

	 	RUSH FINANCIAL TECHNOLOGIES, INC.
       
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name: Michael Nolan 
	 	 	Title:   President 

 

18

Exhibit A to Mutual Release 

NOTICE OF EXERCISE 

	 	TO: 	RUSH FINANCIAL TECHNOLOGIES, INC. 

                  (1)
           The undersigned
hereby elects to purchase ________ Warrant Shares of the Company pursuant to the
terms of the attached Warrant (only if exercised in full), and tenders herewith
payment of the exercise price in full, together with all applicable transfer taxes,
if any. 

                 (2)
           Payment shall
take the form of (check applicable box): 

	 	 	[ ] in lawful money of the United States; or
      

      

      [ ] the cancellation of such number of Warrant Shares as is necessary, in
      accordance with the formula set forth in subsection 2(d), to exercise this
      Warrant with respect to the maximum number of Warrant Shares purchasable
      pursuant to the cashless exercise procedure set forth in subsection 2(c).
      

 

                 (3)
           Please issue
a certificate or certificates representing said Warrant Shares in the name of
the undersigned or in such other name as is specified below:

_______________________________ 

                 The
Warrant Shares shall be delivered to the following: 

_______________________________ 

_______________________________ 

_______________________________ 

                 
[SIGNATURE OF HOLDER] 

Name of Employee: __________________________________________________________ 

Signature of Employee: ________________________________________________________

Date: _____________________________________________________________________

Exhibit A to Mutual Release 

ASSIGNMENT FORM 

  

  (To assign the foregoing warrant, execute 

  this form and supply required information. 

  Do not use this form to exercise the warrant.) 

                 
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are
hereby assigned to 

                 
_______________________________________________ whose address is 

                 
_______________________________________________________________. 

                 
_______________________________________________________________ 

	 	 	
      Dated: ______________, _______ 

    

	 	Holder's Signature: 	_____________________________ 
	 	 	 
	 	Holder's Address: 	_____________________________ 
	 	 	

      _____________________________ 

                 Signature
Guaranteed: ___________________________________________ 

	 	NOTE: The signature to this Assignment Form
      must correspond with the name as it appears on the face of the Warrant,
      without alteration or enlargement or any change whatsoever, and must be
      guaranteed by a bank or trust company. Officers of corporations and those
      acting in a fiduciary or other representative capacity should file proper
      evidence of authority to assign the foregoing Warrant.  

 

Exhibit B to Mutual Release

AGREEMENT AND AMENDMENT 

  TO COMMON STOCK PURCHASE WARRANT 

 

                 Pursuant
to the terms of the Resignation Agreement and General Release, by and between
the Terra Nova Financial Group, Inc. (the "Company") and M. Patricia Kane
(the "Holder"), and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereby enter into
the agreements set forth herein and agree to amend that certain Common Stock Purchase
Warrant, by and between the Company and the Holder, dated August 4, 2006 (the
"Warrant"), in each case in the manner set forth below. Capitalized terms not
otherwise defined herein will have the meanings ascribed to them in the Warrant.
Once executed by the parties, this Agreement and Amendment to Common Stock Purchase
Warrant shall be deemed to have been entered into and effective as of November
19, 2007 (the "Effective Date"). 

                 1.             
Amendments. Section 1(d) of the Warrant is hereby amended in its entirety
to read as follows: 

	"Upon a 'Change of Control,' as defined below, this
      Warrant shall be immediately exercisable for 100% of the shares underlying
      this Warrant, whether or not such shares have vested pursuant to Section
      1(b). For purposes of this Agreement, a Change of Control shall be deemed
      to have taken place if, after the date this Agreement was first amended:
      (i) there is a sale or transfer of all or substantially all of the assets
      of the Company; (ii) any person, including a 'group' as defined in Section
      13(d)(3) of the Securities Exchange Act of 1934, as amended, becomes the
      owner or beneficial owner of the Company's securities, having 50% or more
      of the combined voting power of the then outstanding securities of the Company
      that may be cast for the election of directors of the Company, (iii) the
      persons who were directors of the Company before any transaction or series
      of transactions cease to constitute a majority of the Board of Directors
      of the Company, or any successor to the Company, as the direct or indirect
      result of such transaction or series of transactions (including, but not
      limited to, any cash tender or exchange offer, merger or other business
      combination, or contested election, or any combination of the foregoing);
      or (iv) approval by the Company's stockholders of a complete liquidation
      or dissolution of the Company." 

                 2.             Effect
of Amendment. Except as amended hereby and set forth above, the Warrant shall
continue in full force and effect. 

                   
ACCEPTED AND AGREED by the parties below. 

	"The Company"

    	"Holder"
	 	 
	 	 
	Terra Nova Financial Group, Inc. 	M. Patricia Kane 
	By:       ____________________________

      	 
	Name:  ____________________________

      	 
	Title:    ____________________________	____________________________
	 	                        Name
      

 

Exhibit C to Mutual Release

 AGREEMENT AND AMENDMENT TO STOCK OPTION
  AGREEMENT 

 

                 Pursuant
to the terms of the Resignation Agreement and General Release, by and between
the Terra Nova Financial Group, Inc. (the "Company") and M. Patricia Kane
(the "Optionee") and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereby enter into
the agreements set forth herein and agree to amend that certain Stock Option Agreement,
by and between the Company and Optionee, dated December 31, 2006 (the "Option
Agreement"), in each case in the manner set forth below. Capitalized terms
not otherwise defined herein will have the meanings ascribed to them in the Option
Agreement. Once executed by the parties, this Agreement and Amendment to Stock
Option Agreement shall be deemed to have been entered into and effective as of
November 19, 2007 (the "Effective Date"). 

                 1.
             Amendments.
Section 3.5 of the Option Agreement is hereby amended in its entirety to read
as follows: 

	 	"Upon the termination of employment or service
      of the Optionee, other than as a result of her death or Disability, the
      Optionee may exercise the Option, subject to its terms as set forth in this
      Option Agreement, only within a period of one (1) year after the last date
      of service to the Company or termination of employment." 	 

 

                 2.
             Other
Agreements. Notwithstanding anything in the Option Agreement to the contrary,
Optionee acknowledges and agrees that (a) vesting with respect to 6,250 shares
represented by the Option, which would have vested on December 31, 2007, shall
accelerate and be exercisable on the Effective Date (but shall at all times otherwise
remain subject to the terms of the Option Agreement), and (b) all unvested Options
held by Optionee on the Effective Date shall become null and void and the Optionee
shall have no further rights thereto. 

                 3.
             Effect
of Amendment. Except as amended hereby and set forth above, the Option Agreement
shall continue in full force and effect. 

                   
ACCEPTED AND AGREED by the parties below. 

	"The Company"

    	"Optionee"
	 	 
	Terra Nova Financial Group, Inc.	M. Patricia Kane 
	 	 
	 	 
	By:       ____________________________

      	____________________________
	 	                        Signature
	Name:  ____________________________

      	 
	 	 
	Title:    ____________________________Terra Nova Financial Group, Inc. - Exhibit 10.4

EXHIBIT 10.4 
 

 
SERVICES AGREEMENT

  

                  This
Services Agreement (the "Agreement") is dated as of February 12, 2008 between
Bonanza Fund Management, Inc. ("BFM"), and Terra Nova Financial Group, Inc. ("Terra
Nova," and with BFM, collectively, the "parties" and each individually, a "party").

RECITALS

                 WHEREAS,
upon Terra Nova's request Murrey Wanstrath is currently serving on an interim
basis as Terra Nova's Chief Financial Officer ("CFO"), Secretary and Treasurer
and Mr. Wanstrath currently serves as a director of Terra Nova; 

                 WHEREAS,
Mr. Wanstrath is currently and will remain at all times during this Agreement
an employee of BFM; and 

                 WHEREAS,
BFM and Terra Nova wish to set forth their understanding of the terms under which
BFM agrees to provide Mr. Wanstrath's services to Terra Nova on the terms described
herein. 

                 NOW,
THEREFORE, in consideration of the premises above, the mutual promises contained
herein, and for other good and valuable consideration, the parties agree as follows:

1.             TERM

                 The
terms of this Agreement will be effective as of November 19, 2007, the date Mr.
Wanstrath began serving as CFO (the "Effective Date") and will continue in effect
until terminated in accordance with Section 6 (the "Term"). 

2.             SERVICES,
OFFICER STATUS 

                 2.1
            BFM
Obligations. During the Term, BFM agrees to make Mr. Wanstrath available to
provide the services contemplated in this Section 2.1 to Terra Nova. Mr. Wanstrath
will serve as Terra Nova's CFO, Secretary and Treasurer, fulfilling the customary
duties, obligations, and responsibilities of such offices (the "Services"), subject
to the instructions with regard thereto by the President or Chief Executive Officer
of Terra Nova and the direction of the Board of Directors. BFM shall not have
the authority to direct Mr. Wanstrath's action on behalf of Terra Nova, nor shall
it be responsible for the performance of, or causing the performance of, his duties
to Terra Nova. 

                 2.2
            Facilities.
Terra Nova will provide Mr. Wanstrath with access to, and use of, appropriate
office space at Terra Nova's offices for performing the Services. 

                 2.3
            Independent
Contractors. The parties do not intend for this Agreement to create an agency
relationship between Terra Nova and BFM, and BFM shall not have and shall not
represent that it has the authority to bind Terra Nova as a result of this agreement
or Mr. Wanstrath's service to Terra Nova. BFM shall not have the authority to
direct any management action or policy of Terra Nova, including the time, place
or manner in which Mr. Wanstrath performs the Services or his duties to Terra
Nova. Notwithstanding Mr. Wanstrath's status as an employee of BFM during the
term of this agreement, he shall also be an officer and agent of Terra Nova and
shall have duties consistent therewith. 

                 2.4
            Office
Status. Terra Nova will assure that Mr. Wanstrath is appointed to the offices
of Chief Financial Officer, Secretary and Treasurer of Terra Nova, and consistent
therewith is entitled to the same indemnity and exculpation as that available
to officers of Terra Nova under Terra Nova's articles of incorporation and bylaws,
and that Mr. Wanstrath is an "Insured Person" under the directors and officers
liability policies maintained by or for the benefit of Terra Nova or its officers.

 

  1

                 2.5
            Securities
Filings. Terra Nova will provide Mr. Wanstrath access to and services of its
counsel in connection with the preparation and filing of reports required pursuant
to Section 16 of the Securities Exchange Act of 1934. 

                 2.6
            No
Investment Authority. Mr. Wanstrath will not have investment authority on
behalf of BFM with respect to any Terra Nova securities, nor will he have the
authority to direct the vote thereof during the term of this agreement. 

3.             CHARGES
AND PAYMENTS 

                 3.1
            Charges.
During the Term, Terra Nova will pay BFM the amount of Four Thousand Three Hundred
Thirty Dollars ($4,330.00) per week and will reimburse BFM for Mr. Wanstrath's
reasonable travel and temporary housing costs incurred in connection with providing
the Services (the "Charges"). 

                 3.2
            Payment
Terms. On the first day of each month during the Term, BFM will issue an invoice
to Terra Nova for amounts owed under Section 3.1, including appropriate detail
of travel and temporary housing costs. All invoices submitted by BFM to Terra
Nova will be due and payable within thirty (30) days of the date of the invoice.

4.             PROPRIETARY
RIGHTS 

                 4.1
            Confidential
Information. Mr. Wanstrath shall execute a confidentiality and non-solicitation
agreement in form and substance substantially similar as those entered into by
other executive officers of Terra Nova. The parties do not intend that BFM should
become aware of any material non-public information concerning Terra Nova as a
result of Mr. Wanstrath's service hereunder. Nevertheless if BFM does become aware
of such material non-public information, BFM shall not trade any securities of
Terra Nova until such information is publicly available or no longer material.

                 4.2
            Terra
Nova's Intellectual Property. The Parties acknowledge that Terra Nova is the
owner of any intellectual property rights created by Mr. Wanstrath during the
Term and relating to Terra Nova's business, including inventions, patents, copyrights
and trade secrets. 

                 4.3
            Mr.
Wanstrath's Duty. Nothing herein, nor any service by Mr. Wanstrath as an employee,
officer or agent of Terra Nova or BFM, shall obligate him to disclose any information
about Terra Nova or BFM, as the case may be, to the other to the extent that Mr.
Wanstrath determines such disclosure is prohibited or limited by his fiduciary
duty as an officer, director or otherwise to the party from whom the information
was obtained. 

5.             QUALITY
OF WORK; LEGAL COMPLIANCE 

                 5.1
            Quality
of Work. BFM will instruct Mr. Wanstrath to perform the Services in a professional
manner, to the best of his ability. BFM makes no warranty regarding Mr. Wanstrath's
performance of the Services and none shall be implied. The parties recognize
and agree that BFM is not in the business of providing accounting or any other
service to third parties, and that BFM will not supervise Mr. Wanstrath's work
or be responsible therefor in any way. 

                 5.2
            Compliance
with Law. Subject to the foregoing, BFM will instruct Mr. Wanstrath to perform
the Services in a manner that complies with applicable laws in all material respects.
Terra Nova will similarly instruct Mr. Wanstrath that it expects the Services
to be performed in a manner that complies with applicable laws in all material
respects. 

6.             TERMINATION

                 6.1
            Termination
at Will. At any time, either party may deliver written notice of its intent
to terminate this Agreement for any reason or no reason. The termination notice
will specify a termination 

  2 

date no less than one (1) week after the date of such notice; provided,
however, that if Mr. Wanstrath terminates his employment with BFM, this Agreement
will terminate immediately upon notice from BFM to Terra Nova. 

                 6.2
            Rights
on Termination. BFM, upon termination of this Agreement, will use its best
efforts to cause Mr. Wanstrath to deliver, as Terra Nova may direct, all books
of account, registers, correspondence and records of all and every description
relating to the affairs of Terra Nova which are in BFM's or Mr. Wanstrath's possession
as a result of the Services. In addition, BFM will reasonably cooperate in assuring
a transition of any open work-related matters from Mr. Wanstrath to such person
or persons as may be designated by Terra Nova to succeed him in those responsibilities.

7.             INDEMNIFICATION,
LIMITATION OF LIABILITY 

                 7.1
            General
Provisions. Each party agrees to notify promptly the other of any claim or
judgment to which these indemnifications provisions may apply. Further, the parties
agree not to settle any claim to which these indemnity provisions may apply or
in which the parties are both named, or are reasonably threatened to be named,
without the prior written consent of the other party, which consent will not be
unreasonably withheld. Neither party will be liable to the other party for special,
incidental, consequential or punitive damages. Each party's indemnification provision
survives the termination or expiration of this Agreement. 

                 7.2
            BFM's
Indemnification. BFM agrees to indemnify, protect, defend, release and hold
harmless Terra Nova, any affiliated or related entities, and their directors,
officers, employees and agents (the "Terra Nova Parties") from and against any
and all liability expenses, losses, and claims for damages, including reasonable
legal fees, arising from or in connection, to the extent so arising or connected,
with any claim by Mr. Wanstrath against any of the Terra Nova Parties and arising
out of or relating to, to the extent so arising or relating, the Services, other
than claims for indemnification or exculpation under Terra Nova's articles of
incorporation or bylaws (all claims for which indemnification by BFM is required
shall be referred to collectively as "BFM Indemnified Claims"). BFM further agrees
to advance all reasonable expenses (including reasonable counsel fees and expenses)
as they are incurred by Terra Nova Party in connection with the investigation
of, preparation for, or defense of any pending or threatened BFM Indemnified Claim
or any action or proceeding arising therefrom, to the extent the Terra Nova Party
is a party, witness or other participant or is threatened to be made a party,
witness, or other participant to such Indemnified Claim or proceeding. BFM may
require a commitment from the Terra Nova Party to repay such expenses, and Terra
Nova hereby guarantees such repayment, which commitment shall be applicable in
the event the BFM Indemnified Claim or proceeding is subsequently determined not
to be subject to indemnification. 

                 7.3
            Terra
Nova's Indemnification. Terra Nova agrees to indemnify BFM and its affiliates
and their respective directors, officers, employees, agents and controlling persons
(BFM and each such other person being referred to herein as an "Indemnified Party"),
but not including Mr. Wanstrath (who shall be subject to indemnification solely
in his capacity as an officer as provided for in Section 2.4), on a current basis
from and against any and all losses, claims damages, and liabilities (including
amounts paid for attorneys fees or in settlement), whether joint or several, to
which such Indemnified Party may become subject, that arise out of or relate,
to the extent so arising or related, this Agreement, the engagement of BFM, or
the performance of the Services contemplated by this Agreement (whether performed
or occurring before or after the date of the Agreement), INCLUDING THOSE LOSSES,
CLAIMS, DAMAGES AND LIABILITIES ARISING FROM THE SOLE, CONTRIBUTORY OR CONCURRENT
NEGLIGENCE OR STRICT LIABILITY of such Indemnified Party, but not including
claims brought by BFM itself, claims by Mr. Wanstrath, claims by Terra Nova for
a breach of this Agreement, claims for which BFM is fully and finally adjudged
to have engaged in fraud or criminal conduct, gross negligence or willful misconduct,
and claims for which indemnification prohibited by applicable law (all claims
for which indemnification by Terra Nova is required shall be referred to collectively
as "Claims"). Terra Nova further agrees to advance all reasonable expenses (including
reasonable counsel fees and expenses) as they are incurred by an Indemnified Party
in connection with the investigation of, preparation for, or defense of any pending
or threatened Claim or any action or proceeding arising therefrom, to the extent
the 

3

Indemnified Party is a party, witness or other participant or is
threatened to be made a party, witness, or other participant to such Claim or
proceeding. Terra Nova may require a commitment from the Indemnified Party to
repay such expenses, and BFM hereby guarantees such repayment, which commitment
shall be applicable in the event the Claim or proceeding is subsequently determined
not to be subject to indemnification. Terra Nova also agrees that, to the fullest
extent permitted by law, no Indemnified Party shall have any liability (whether
direct or indirect, in contract or tort or otherwise) to Terra Nova or its security
holders or creditors in connection with any Claim. 

                 If
the indemnification of an Indemnified Party provided for in this Agreement is
for any reason held unenforceable and Terra Nova is deemed to be jointly liable
with the Indemnified Party for the losses, claims, damages, or liabilities for
which indemnification is unenforceable, Terra Nova agrees to contribute to the
payment of such losses, claims or liabilities (i) in such proportion as is appropriate
to reflect the relative benefits to Terra Nova, on the one hand, and BFM, on the
other hand, of the transactions described in this Agreement (whether or not any
such transactions are consummated) or (ii) if (but only if) the allocation provided
for in clause (i) is for any reason held unenforceable, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause
(i) but also the relative fault of Terra Nova, on the one hand, and BFM, on the
other hand, as well as any other relevant equitable considerations. 

                 7.4
            Assumption
of Defense. In the event a party shall be obligated to advance the expenses
for any proceeding to a Terra Nova Party or Indemnified Party (each a "Covered
Party"), the party shall be entitled to assume the defense of such proceeding,
with counsel approved by the Covered Party (which approval shall not be unreasonably
withheld), upon the delivery of written notice to the Covered Party of its election
to do so. After delivery of such notice, approval of counsel by the Covered Party,
and the retention of such counsel, the party required to advance expenses will
not be liable under this Agreement for any fees of counsel subsequently incurred
by the Covered Party with respect to the same proceeding, provided that: (a) the
Covered Party shall have the right to employ his, her or its own counsel in any
such proceeding at the Covered Party's expense; and (b) if (i) the employment
of counsel by the Covered Party has been previously authorized by the party required
to advance expenses, (ii) the Covered Party shall have reasonably concluded that
there may be a conflict of interest between the party required to advance expenses
and the Covered Party in the conduct of any such defense or (iii) the party required
to advance expenses shall not, in fact, have employed counsel to assume the defense
of such proceeding, then the fees and expenses of the Covered Party's counsel
shall continue to be at the expense of the party required advance expenses. 

8.             Miscellaneous

                 8.1
            Force
Majeure. Neither party will be liable for any delay or failure of performance
(except for the payment of money) affecting such party or its contractors arising
from any cause, circumstance or contingency beyond the reasonable control of such
party, including acts of God, acts of terrorism, governmental acts, accidents,
wars, riots or civil unrest, labor disputes, fires, storms, earthquakes, floods
and latent defects which are not reasonably discoverable and cannot be reasonably
remedied. 

                 8.2
            Entire
Agreement. Except as otherwise provided herein, this Agreement represents
the entire understanding and agreement between the parties, and supersedes any
prior agreement, understanding or communication between the parties, with respect
to the subject matter hereof. This Agreement may only be amended by a writing
executed by both parties. 

                 8.3
            Counterparts.
This Agreement may be executed in counterparts, each of which will be deemed an
original, and all of which taken together will constitute a single instrument.

                 
8.4             Construction.
The parties have participated jointly in the negotiation and drafting of this
Agreement. In the event of an ambiguity or question of intent or interpretation
arises, this Agreement will be construed as if drafted jointly by the parties
and no presumption or burden of proof will arise favoring or disfavoring any party
by virtue of the authorship of any of the provisions of this Agreement. 

4

                  
8.5             Assignment.
This Agreement will be binding on the parties and their respective successors
and permitted assigns. Neither party may, nor either party have the power to,
assign this Agreement or any of its rights and obligations under this Agreement
without the prior written consent of the other party, except that either party
may assign, upon written notice to the other party, its rights and obligations
under this Agreement, in whole or in part, without the approval of the other party
to any successor in a merger or acquisition of such party, or an entity that acquires
all or substantially all of the assets of such party; provided that in either
case the assignee or successor has sufficient resources and ability to perform
the assigned obligations. In no event will any assignment relieve the assigning
party of its obligations under this Agreement. Any attempted assignment, delegation,
or subcontracting in contravention of this Section will be void and ineffective.

                 
8.6             Survival.
To the extent a provision of this Agreement provides for rights, interest, duties,
claims, undertakings and obligations subsequent to the termination or expiration
of this Agreement, such provision of this Agreement will survive such termination
or expiration. 

                 
8.7             Waiver.
The failure of either party to insist upon the strict and punctual performance
of any provision hereof will not constitute a waiver of, or estoppel against asserting
the right to require such performance, nor should a waiver or estoppel in one
case constitute a waiver or estoppel with respect to a later breach whether of
a similar nature or otherwise. 

                 
8.8             Governing
Law. All rights and obligations of the parties relating to this Agreement
will be governed by and construed in accordance with the law of the State of Illinois,
without giving effect to any choice-of-law provision or rule (whether of the State
of Illinois or any other jurisdiction) that would cause the application of the
laws of any other jurisdiction.

                 
8.9             No
Third Party Beneficiary Status. Except that Mr. Wanstrath shall be a third
party beneficiary of Sections 2.4 and 4.3, the terms and provisions of this Agreement
are intended solely for the benefit of each party hereto and their respective
successors or permitted assigns, and it is not the intention of the parties to
confer third-party beneficiary rights upon any other party, including employees.

                 
IN WITNESS WHEREOF, each of the parties hereto, by its duly authorized representative,
has hereby executed this Services Agreement. 

	BONANZA FUND MANAGEMENT, INC. 	TERRA NOVA FINANCIAL GROUP, INC  
	 	 
	By: ________________________________ 	By: ________________________________ 
	 	  
	Position: ____________________________ 	Position: ____________________________ 
	 	 
	 	 
	 	 
	 	 
	 	 

5

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