Document:

Employment Agreement

  EXHIBIT 10.3
  EMPLOYMENT AGREEMENT
 James K. Mitchell
 April 1, 1993
 As Extended
and Amended
 January 1, 2003
            This employment agreement (the “Agreement”) is between Detwiler Mitchell & Co.
(“Employer”) and James K. Mitchell (“Executive”). 
  RECITALS
            1.          On July 18, 1988, Executive sold his ownership in James Mitchell & Co. (“JMC”) to
Employer.  Employer purchased JMC for, among other reasons, its clients, its unique sales and business systems, its unique method of selling insurance through bank trust departments, and the outstanding and special skills and abilities of
Executive and other key employees;
            2.          Executive is and has been employed as
President of JMC and as Chairman and CEO of Employer since January 1, 1993.  Through such experience, he has acquired outstanding and special skills and abilities and an extensive background in and knowledge of Employer’s business and the
industry in which it is engaged;
            3.          Employer desires assurance of the continued
association and services of Executive in order to retain his experience, skills, abilities, background and knowledge and is therefore willing to engage his services on the terms and conditions set forth below;
           4.          Executive desires to continue in the employ of Employer and is willing to do so on these terms and
conditions;
            5.          In his capacity as an executive of Employer, Executive has
access to highly valuable and confidential trade secret information of Employer, including but not limited to information regarding the identity of key contact personnel and the contract terms with major clients and suppliers to Employer; the
identity and personnel information with regard to Employer’s personnel; and the terms, documents, methods and systems through which Employer engages in business; and
            6.          The execution of this Agreement has been authorized by Employer’s Board of Directors (the
“Board”).
            NOW THEREFORE, in consideration of the above recitals and of the mutual promises and conditions in this
Agreement, it is agreed as follows:
  1

   1.          Position.
               Employer shall employ Executive as Chief Executive Officer or Chairman of Employer with such executive capacity or capacities as the Board may from
time to time prescribe.
 2.          Sole Employment
               During his employment, Executive shall devote his full energies, interest, abilities and productive time to the performance of this Agreement and
shall not, without express written Board approval, render to others services of any kind for compensation, or engage in other business activity that would materially interfere with the performance of his duties under this Agreement. 
 
3.          Term of Employment

	  
 	  a.          This Agreement, as amended, takes effect on January 1, 2003 and shall have an initial term of three years.

	  
 	  
 
	  
 	  b.          Notwithstanding the foregoing, if the Board of Directors of the Employer should determine to liquidate the Employer,
other than as part of a business combination, the term of the Agreement shall end six months after such action by the Board.
 

  4.          Salary and Deferred Compensation
               a)          Salary.  Employer shall pay a base salary to Executive at the rate
of one hundred and seventy five thousand dollars ($175,000) per annum (“Base Salary”), payable in equal semi-monthly installments. 
              b)          Deferred Compensation.  In addition to Base Salary, Employer shall
defer compensation of Executive at a rate of $110,000 per annum during the term of his contract (“Deferred Compensation”).  Deferred Compensation shall become vested but not payable on a monthly pro-rated basis during each of 2003,
2004, and 2005.  Vested portions of Deferred Compensation (“Vested Deferred Compensation”) will become payable upon the termination of Executive, for whatever reason, on a monthly basis until such vested portions are exhausted. 
The schedule for payment of such monthly amounts will be determined within one month of termination but shall not be spread over less than two years nor more than five years.  Notwithstanding the foregoing, Executive may, on the Termination
Date and each subsequent anniversary of the Termination Date, choose to take the full balance of the Vested Deferred Compensation in one single payment.
               The Vested Deferred Compensation shall be increased on the anniversary dates of this Agreement based upon the most recent Consumer Price Index of
the Bureau of Labor Statistics of the Department of Labor for All Urban Consumers (1982-84=100), “All Items,” for Los Angeles-Long Beach-Anaheim, California (hereinafter the “CPI”).   The “Base CPI” shall be
the CPI for December 2002.   CPI Adjustments shall be calculated as follows:  the Deferred
  2

   Compensation shall be multiplied by a fraction the numerator of which shall be the CPI of the December immediately prior to the calculation date (i.e., December 2003 for the
January 1, 2004 calculation) and the denominator of which shall be the Base CPI.  The sum so calculated shall constitute the Executive’s Deferred Compensation until the next adjustment; provided, however that in no event shall the
Executive’s Deferred Compensation be reduced as a result of any such adjustment.  If the compilation and/or publication of the CPI shall be in some manner changed or discontinued, then Executive agrees that Employer may use an alternate
index which it reasonably believes reflects changes in the cost of living.
 5.          Incentive Compensation
               In addition to the Base Salary and Deferred Compensation provided for above, Employer shall, as an incentive compensation payment plan, pay
Executive an annual award bonus calculated in accordance with the method and policies Employer uses for its other senior executives.  
               Should Executive for any reason cease his employment prior to the end of any fiscal year, his incentive compensation for that year shall be
determined pursuant to the Section titled “Termination” below.  Should such section require that incentive compensation be “pro-rated” this means:

	  
 	  a.          The incentive compensation shall still be based in accordance with the method and policies Employer uses for its other
senior executives;
 
	  
 	  
 
	  
 	  b.          The percentage to be applied shall be pro-rated according to the length of Executive’s employment during the
year;
 
	  
 	  
 
	  
 	 c.          The date of payment will still be the same date as if Executive remained employed by Employer.
 

  6.          Benefits
               Executive shall be entitled to receive all other benefits of employment generally available to Employer’s senior executives, including
reimbursement for reasonable out-of-pocket expenses incurred in connection with Employer’s business, subject to such policies as Employer may from time to time reasonably establish for its senior executives.
  7.          Termination
               In the
absence of any other written agreement, should Employer continue to employ Executive after the initial term of this Agreement, such employment will continue at will and may be terminated for any reason, with or without cause, on the effective date
of any written termination  notice delivered by either party to the other.  Executive’s salary, Vested Deferred
  3

   Compensation, incentive compensation and benefits will continue as stated herein, with salary compensation continuing to be increased annually as herein described. 

              If the Executive and Employer choose not to renew this Agreement after the completion of its Term, Executive will continue to
receive all benefits currently received on December 31, 2005 for a period of five years following the Termination Date.
              Notwithstanding the stated term hereof, this Agreement may be terminated at any time on written notice by Executive or by Employer with or without
cause.  In such event, Employer’s obligations to pay salary, Vested Deferred Compensation, benefits and incentive compensation hereunder will vary depending upon the reason for termination, as described below:

	  
 	  a.
 	  RESIGNATION BY EXECUTIVE.
 
	  
 	  
 	  
 
	  
 	  
 	  Except as provided in Section 7d hereof, if Executive voluntarily terminates employment, then Employer shall pay salary, Vested Deferred Compensation, benefits and incentive
compensation pro-rated to the effective date of resignation.
 
	  
 	  
 	  
 
	  
 	  b.
 	  TERMINATION BY EMPLOYER WITHOUT CAUSE.  
 
	  
 	  
 	  
 
	  
 	  
 	 If Employer terminates Executive without cause, or because of incapacity from illness, accident or death, then Executive shall receive salary, Vested Deferred Compensation and
incentive compensation in the manner, timeframe and amount to which he would have been entitled should employment have continued through the stated term of this Agreement.  Benefits shall also be continued through the same term and five years
thereafter, to the extent the Company reasonably believes continuation is permitted by law and the Company’s insurance carriers, so long as Executive is not eligible to receive comparable benefits from another employer.
 
	  
 	  
 	  
 
	  
 	  c.
 	  TERMINATION BY EMPLOYER FOR CAUSE.
 
	  
 	  
 	  
 
	  
 	  
 	  If Employer terminates Executive for cause then Executive shall receive salary, Vested Deferred Compensation and incentive compensation pro-rated to the date three months following
termination.  Benefits shall also be continued through the same three month period, to the extent permitted by law and the Employer’s insurance carriers. “Termination for cause” shall be termination by reason of malfeasance or
misconduct which the Board of Directors reasonably believes violates legal or ethical responsibilities of the Executive, or by reason of gross negligence in the conduct of the Employer’s business.
 

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 	  d.
 	  TERMINATION BY EMPLOYEE FOR GOOD CAUSE.  
 
	  
 	  
 	  
 
	  
 	  
 	  The Employee shall be entitled to terminate the Agreement “for good cause” with the same effect as a termination by the Employer without cause, as set forth in
Section 7(b) hereof.  “Good cause” shall include the following events:
 
	  
 	  
 	  
 
	  
 	  
 	  1)          Employer’s breach of any material term of this Agreement, including, but not limited to, the
Company’s failure, within fifteen (15) days after written demand, to provide or pay Executive any Salary, Vested Deferred Compensation or Benefits under this Agreement.
 
	  
 	  
 	  
 
	  
 	  
 	 2)          The relocation of Executive’s full-time office to a location more than fifty (50) miles from
Employer’s present office at 9710 Scranton Rd. Ste. 100, San Diego, California 92121.  Notwithstanding the foregoing, the Executive may be asked to spend a considerable time in the Employer’s main corporate office at 225 Franklin
Street, 20th Floor, Boston, Massachusetts, 02110, up to 50% of each calendar year;
 
	  
 	  
 	  
 
	  
 	  
 	  3)          A material reduction in Executive’s duties, responsibilities or title except for such a reduction
arising from a change in the status of the Employer or the nature of the Employer’s business; or
 
	  
 	  
 	  
 
	  
 	  
 	  4)          A “Change in Control,” defined as:
 
	  
 	  
 	  
 
	  
 	  
 	  
 	 a)          The acquisition by any individual, entity, or group (within the meaning of Section 13 (d) (3) or 14 (d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of either (A) the then
outstanding shares of common stock of Employer (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then outstanding voting securities of Employer entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  b)          Individuals who, as of the date hereof, constitute the Board of Directors (the “Incumbent Board”) cease for
any reason to constitute at least two thirds of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by Employer’s stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the election or removal of 
 

 5

	  
 	  
 	  
 	  directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors; or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  c)          Consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of
the assets of Employer (a “Business Combination”) unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than sixty percent (60%) of, respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a
result of such transaction owns Employer or all or substantially all of Employer’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be (with respect to this subsection (A), such calculation shall be made with respect to all considerations received in exchange for, or as
a consequence of, a Business Combination); or (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of Employer or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, thirty percent (30%) or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination; and (C) at least two-thirds of the members of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 d)          Approval by the stockholders of Employer of a complete liquidation or dissolution of Employer; or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  e)          Occurrence of any of the events listed in 7d(4)(a) through 7d(4)(d) above in respect of any subsidiary (meaning any
entity over which Employer has voting control) of Employer that, immediately prior to the relevant event, constituted at least twenty percent (20%) of Employer’s consolidated assets or, for the fiscal year prior to the event, contributed at
least twenty percent (20%) or more of Employer’s consolidated revenues.
 

  6

	  
 	  
 	  
 	  f)          Notwithstanding the foregoing, for purposes of the foregoing provisions, a Change of Control shall not include any
transaction described above which has been previously approved by the Incumbent Board.
 

 8.          Payment
Limitations
               All payments to Executive hereunder shall be reduced by applicable local, state and federal
withholding requirements. Should any payments hereunder be determined by Employer’s independent public accounting firm to be in excess of federal or state Golden Parachute limitations (currently Internal Revenue Code Section 280G), then
Executive and Employer hereby agree that such payments shall be modified so as to be one dollar less than such Golden Parachute limitations.  If the determination is made after the payment(s) have been made by Employer, then Executive shall
promptly refund the overpayment to Employer.
               Employer shall not be obligated to reimburse Executive for his expenses
(such as COBRA payments) in maintaining benefits that Employer has discontinued hereunder.
               Employer shall have the right
to offset any debts or damages owed by Executive to Employer against salary or other payment owed to Executive.
  9.          Survival of this
Agreement
               Employer shall not engage in any voluntary or involuntary dissolution or any merger in which Employer
is not the surviving or resulting corporation, or any transfer of all or substantially all of Employer’s assets, or any similar change in ownership or control, unless the provisions of this Agreement shall be binding on and inure to the benefit
of the surviving business entity to which ownership or control has passed, or to which such assets were transferred.
 10.        Protection of Trade
Secrets; Confidential Information & Employee Relationships.
               Because of his employment by Employer, Executive
has access to trade secrets and confidential information of Employer, including but not limited to knowledge of and contact with key employees; financial records; contract terms; business plans, policies and procedures; cost information; customer
lists and client or acquisition opportunities; business and computer systems; management information and methods which are unique to Employer’s methods of business; and customer servicing techniques (all of the above trade secrets and
confidential information hereinafter referred to as “Confidential Information”).  In consideration hereof and in recognition of the fact that the Confidential Information constitutes a valuable trade secret or otherwise valuable asset
of Employer, Executive will not appropriate to his own use or benefit in anyway whatsoever, or disclose to any third parties, any Confidential Information during or after this Agreement. 
  7

                Executive agrees that solicitation of Employer’s customers and personnel would constitute a
misappropriation of Employer’s Confidential Information. In recognition thereof, Executive will not during his employment, and for one year thereafter, solicit, hire, contract with or otherwise take away any customer or employee of Employer or
participate in any such solicitation, hiring, contracting or otherwise taking away.  In addition, all information about such customers and employees which becomes known to Executive during the course of this Agreement and which is not otherwise
known to the public is a trade secret of the Employer and shall not be used in soliciting or taking away customers or employees of the Employer at any time.
              Executive acknowledges that any breach of this Section will result in irreparable damage to the Employer, for which Executive further acknowledges
that Employer shall be entitled to injunctive relief hereunder.  The parties hereby consent to an injunction in favor of Employer, without bond, enjoining any breach of this Agreement by any court of competent jurisdiction, without prejudice to
any other right or remedy to which Employer may be entitled.
               Executive’s obligations hereunder shall survive the
termination of this Agreement.
  11.        Entire Agreement
               Except for an indemnification agreement between Employer and Executive, this Agreement contains the entire agreement between the parties and
supersedes all prior oral and written agreements, understandings, commitments, and practices between the parties.  No waiver or modification to this Agreement may be made except by a writing signed by the party against whom it is
enforced.
  12.        Choice of Law; Interpretation of Agreement
               The formation, construction, and performance of this Agreement shall be construed in accordance with the laws of the State of California.  This
Agreement shall not be interpreted for or against either party on the ground that such party or its representative drafted the agreement or any portion thereof.
 13.        Arbitration
               Any claim for
monetary damages hereunder shall be subject to binding arbitration by the National Association of Securities Dealers or other mutually agreeable arbitration or alternative dispute resolution forum. 
  8

   14.        Notices
               Any notice required or permitted under this Agreement shall be given in writing, either by personal delivery or by registered, overnight or
certified mail, postage prepaid, to the following addresses:  Executive - then current home address as shown on Employer’s files; Employer - the CFO at the Employer’s then current place of business.
  15.        Severability
               If any portion of
this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect.  If any provision is held invalid or unenforceable with respect to particular circumstances, it shall
nevertheless remain in full force and effect in all other circumstances.
  16.        Acknowledgment
               Executive acknowledges that he has had the opportunity to consult with independent counsel of his own choice concerning this Agreement and has been
advised to do so by Employer, and Executive has read and understands this Agreement, and is fully aware of its legal effect, and has entered into it freely based on Executive’s own judgment.
 17.        Headings
               Section headings in
this Agreement have been inserted for convenience and reference only and shall not be construed to affect the meaning, construction or effect of this Agreement.
  Executed by the parties as of the day
and year first above written.

	  AGREED AND ACCEPTED:
 DETWILER, MITCHELL
& CO.
 	  
 
	  
 	  
 
	  By:
 	  
 
	  
 	 
	  
 
	 James H. Graves
 Vice Chairman of the Board of Directors
 of Detwiler, Mitchell & Co.
 	  
 
	  
 	  
 
	  
 	 AGREED AND ACCEPTED:
 
	  
 	  
 
	 By:
 	  
 
	  
 	 
	  
 
	 James K. MitchellStock Option Agreement

  EXHIBIT 10.12
  DETWILER, MITCHELL & CO.
 STOCK OPTION AGREEMENT
 
                  (NOTE: The options granted hereunder are subject to approval by the stockholders of the
Company)
                   This certifies that, for value received, James K. Mitchell (“Option
Holder”) shall have the right set forth herein (the “Option”), subject to the terms and conditions set forth below, to purchase from DETWILER, MITCHELL & CO. (“DMC”), in whole or in part that number of fully paid and
nonassessable shares (the “Shares”) of Common Stock of DMC set forth in Section I below and at a purchase price per share (the “Exercise Price”) set forth in Section I below.  The number, character and Exercise Price of such
Shares are subject to adjustment as provided in Section II(11) below and all references to “Shares” and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments.
  I.               GRANT INFORMATION.

	  Date of Grant:
 	  November 6, 2002
 
	  
 	  
 
	 Name of Option Holder:
 	  James K. Mitchell
 
	  
 	  
 
	  Social Security Number:
 	  On File
 
	  
 	  
 
	  Type of Option:
 	  Nonstatutory (“NSO”)
 
	  
 	  
 
	  Number of Shares of Common Stock Covered by the Option:
 	  300,000
 
	  
 	  
 
	  Exercise Price per Share:
 	  1.00
 
	  
 	  
 
	 Vesting Start Date:
 	  November 6, 2003
 
	  
 	  
 
	  Vesting Schedule:
 	  
 
	  
 	  Number of and Date Shares Vested:
 	  50,000 Shares on November 6, 2003
 
	  
 	  Number of and Date Shares Vested:
 	  100,000 Shares on November 6, 2004
 
	  
 	  Number of and Date Shares Vested:
 	  100,000 Shares on November 6, 2005
 
	  
 	  Number of and Date Shares Vested:
 	  50,000 Shares on November 6, 2005
 
	  
 	  
 	  
 
	 Expiration Date:
 	  Five Years After Date of Grant
 
	  
 	  
 

  - 1 -
  

   I.                 TERMS AND CONDITIONS
                      1.  Stockholder Approval.  Your Option is effective immediately subject, however, to
the approval of the Option, the issuance of the shares underlying the Option and this Agreement by the stockholders of DMC at or prior to the next Annual Meeting of Stockholders. 
                      2.  Vesting.  Your Option vests during your Service on the dates specified in the
vesting schedule on the first page of this Stock Option Agreement.  Vesting will cease if your Service terminates for any reason.
                      3.  Service; Leaves of Absence.  Your Service shall cease when you cease to be
actively employed by, or a consultant or adviser to DMC (or any subsidiary) (the “Company”), as determined in the sole discretion of the DMC Board.  For purposes of your Option, your Service does not terminate when you go on a bona
fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or when continued service crediting is required by applicable law. Your Service terminates in any event when
the approved leave ends, unless you immediately return to active work.  The Company determines which leaves count toward Service, and when your Service terminates for all purposes under this Agreement.
                     4.  Term of Option.  Your Option expires on the fifth anniversary of the Date of
Grant, and will expire earlier if your Service terminates as follows:

	  
 	                      (a)  Regular Termination.  If
your Service terminates for any reason except death or Disability, then your Option will expire at the close of business at Company headquarters on the date 30 days after your termination date.  During that 30-day period, you may exercise that
portion of your Option that was vested on the date that your Service terminated.
 
	  
 	  
 
	  
 	                      (b)  Cause.  If your Service
terminates for Cause or if you resign from your employment, your Option will expire immediately.
 
	  
 	  
 
	  
 	            For purposes of this Section, “Cause” means (i) your continued failure to perform substantially your duties
as set by the Company at the date of this Agreement (other than as a result of sickness, accident or similar cause beyond your reasonable control) after your receipt of a written warning and have been given thirty (30) days to improve; (ii) willful
and material misconduct, which is demonstrably and materially injurious to the Company or any of its subsidiaries, including willful and material failure to perform your duties as an officer or employee of the Company or any of its subsidiaries or a
material breach of this Agreement; (iii) conviction of or plea of nolo contendere to a felony; and (iv) conviction of an act of fraud against, or the misappropriation of property belonging to, the Company or any of its subsidiaries, or any
employee, customer, or supplier of the Company or any of its subsidiaries.
 
	  
 	  
 
	  
 	                     (c)  Death.  If you die while in
Service, then your Option will expire at the close of business at Company headquarters on the date six (6) months after the date of
 
	  
 	  
 

  - 2 -
  

	  
 	  death.  During that six-month period, your estate or heirs may exercise that portion of your Option that was vested on the date of death.
 
	  
 	  
 
	  
 	                      (d)  Disability.  If your Service
terminates because of your Disability, then your Option will expire at the close of business at Company headquarters on the date six (6) months after your termination date.  During that six-month period, you may exercise that portion of
your Option that was vested on the date of your Disability.
 
	  
 	  
 
	  
 	           “Disability” means that you are unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment.
 
	  
 	  
 

                      5.  Exercise of Option.

	  
 	                      (a)  Legal
Restrictions.  By signing this Agreement, you agree not to exercise this Option or sell any Common Stock acquired upon exercise of this Option at a time when applicable laws, regulations or Company or underwriter trading policies
prohibit exercise or sale and to comply with any such laws, regulations or policies deemed applicable to such exercise or sale by counsel to the Company.  In particular, the Company shall have the right to designate one or more periods of time,
each of which shall not exceed 180 days in length, during which this Option shall not be exercisable if the Company determines (in its sole discretion) that such limitation on exercise could in any way facilitate a lessening of any restriction on
transfer pursuant to the Securities Act with respect to any issuance of securities by the Company, facilitate the registration or qualification of any securities by the Company under the Securities Act or any state securities laws, or facilitate the
perfection of any exemption from the registration or qualification requirements of the Securities Act for the issuance or transfer of any securities.  Such limitation on exercise shall not alter the vesting schedule set forth in this Agreement
other than to limit the periods during which this Option shall be exercisable.  Notwithstanding the foregoing, if a limitation is imposed and such limitation would cause a forfeiture of your exercise right because your option would expire
during such limitation period, then the vesting schedule and expiration date of your option shall be extended 30 days beyond the limitation period to allow for exercise of your option.
 
	  
 	  
 
	  
 	                     (b)  Method of Exercise. 
To exercise your Option, you must execute the Notice of Exercise, attached hereto as Exhibit A.  You must submit this form, together with full payment, at the address given on the form.  Your Notice of Exercise must specify how
many shares you wish to purchase.  Your Notice of Exercise will be effective when it is received by the Company.  If someone else wants to exercise your Option after your death, that person must prove to the Company’s satisfaction
that he or she is entitled to do so.
 
	  
 	  
 
	  
 	                      (c)  Form of Payment. 
When you submit Exhibit A, you must include payment of the aggregate Exercise Price for the Common Stock you are purchasing.  Payment may be made in one (or a combination) of the following forms.
 
	  
 	  
 
	  
 	  •
 	  Your personal cheque, a cashier’s cheque or a money order.
 
	  
 	  
 	  
 
				

 - 3 -
  

	  
 	  •
 	  Shares of Common Stock which you have owned for six months and which are surrendered to the Company.  The value of such Common Stock, determined as of the effective date of
the Option exercise, will be applied to the Exercise Price.
 
	  
 	  
 	  
 
	  
 	  •
 	  To the extent that a public market for Common Stock exists as determined by the Company, by delivery (on a form approved by the Company) of an irrevocable direction to a
securities broker to sell Common Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price.
 
	  
 	  
 	  
 
	  
 	 •
 	  To the extent that a public market for Common Stock exists as determined by the Company, by delivery (on a form approved by the Company) of an irrevocable direction to a
securities broker or lender to pledge Common Stock, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of the aggregate Exercise Price.
 
	  
 	  
 	  
 
	  
 	  •
 	  Any other form of legal consideration approved by the Board.
 
	  
 	  
 
	  
 	                      (d)  Withholding Taxes. 
You will not be allowed to exercise your Option unless you make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the exercise of, or other dealing in, the Option or the sale of Common Stock acquired upon
exercise of your Option.
 
	  
 	  
 
				

                     6.  Market Stand-Off. In connection
with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the US Securities Act of 1933, you shall not, directly or indirectly, engage in any transaction prohibited by
the underwriter, nor shall you sell, make any short sale of, contract to sell, transfer the economic risk of ownership in, loan, charge, pledge, grant any option for the purchase of, or otherwise dispose of or transfer for value or agree to engage
in any of the foregoing transactions with respect to any Shares without the prior written consent of the Company or its underwriters, for such period of time after the effective date of such registration statement as may be requested by the Company
or such underwriters.  Such period of time shall not exceed one hundred eighty (180) days and may be required by the underwriter as a condition of the offering.  By signing this Stock Option Agreement you agree to execute and deliver such
other agreements as may be reasonably requested by the Company or the underwriter which are consistent with the foregoing or which are necessary to give further effect thereto.  To enforce the provisions of this Section 5, the Company may
impose stop-transfer instructions with respect to the Shares until the end of the applicable stand-off period.
                      7.  Only Vested Shares Purchasable.  You may not exercise your Option as to any
share before such share it is vested as provided in Section I above. 
                     8.  Transfer of Option.  Prior to your death, only you may exercise your
Option.  You cannot transfer or assign your Option.  For instance, you may not sell your Option or use it as security for a loan.  If you attempt to do any of these things, your Option will immediately become invalid.  You may,
however, dispose of your Option in your will. 
  - 4 -
  

                       Regardless of any marital property settlement
agreement, the Company is not obligated to honor a notice of exercise from your spouse or former spouse, nor is the Company obligated to recognize such individual’s interest in your Option in any other way.
                      9.  No Retention Rights.  Your Option does not give you the right to be retained by
the Company (or any subsidiaries) in any capacity.  The Company reserves the right to terminate your Service at any time and for any reason.
                      10.  Stockholder Rights.  You, or your estate or heirs, have no rights as a
Stockholder of the Company until a certificate for your Common Stock has been issued.  No adjustments are made for dividends or other rights if the applicable record date occurs before your stock certificate is issued.
                     11.  Adjustments to Common Stock.

	  
 	                      (a)  Adjustments. In the event of a
subdivision of the outstanding Shares, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of
the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or
more of:
 
	  
 	  
 
	  
 	                      (1)          The number of shares subject to the
Option; or
 
	  
 	  
 
	  
 	                      (2)          The Exercise Price under the
outstanding Option.
 
	  
 	  
 

 Except as provided in this Section 11, you shall have no rights whatsoever as a result of any
issue by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of
shares of stock of any class.

	  
 	                      (b)  Dissolution or Liquidation.  To
the extent not previously exercised, your Option shall terminate immediately prior to the dissolution or liquidation of the Company.
 
	  
 	  
 
	  
 	                      (c)  Reorganizations.  If the Company
is a party to a merger or other reorganization, your Option shall be subject to the agreement of merger or reorganization.  Such agreement shall provide for one or more of the following, in all cases without your consent being
required:
 
	  
 	  
 
	                                     
     (1)          The continuation of the Option, if the Company is a surviving corporation;
 
	  
 	  
 
	                                      
     (2)          The assumption of the outstanding Option by the surviving corporation or its parent or subsidiary;
 
	  
 	  
 

  - 5 -
  

	                                      
     (3)          The substitution by the surviving corporation or its parent or subsidiary of its own awards for the Option; or
 
	  
 	  
 
	                                     
     (4)          Full exercisability and/or vesting and/or accelerated expiration of the Option.
 
	  
 	  
 
	  
 	                      (d)  Reservation of Rights.  Except
as provided in this Section 11, you shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number of shares of stock of any
class.  Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of
Shares subject to your Option.  The grant of your Option shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to issue or sell any
shares of stock of any class, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.
 
	  
 	  
 

                     12.  Applicable Law.  This Agreement will be interpreted and enforced under the laws
of the state of Delaware.
                      This Agreement and your Employment Agreement
constitute the entire understanding between you and the Company regarding your Option.  Any prior agreements, commitments or negotiations concerning your Option are superseded.

	  
 	  By signing below, you agree to all of the terms and conditions described in this Stock Option Agreement, including the attached Notice of Exercise.
 

   

	  Option Holder:
 	  /s/ JAMES K. MITCHELL
 
	  
 	 
 
	   
 	  (Signature)
 
	  
 	  
 
	 Company:
 	 /s/ ROBERT SHARP
 
	  
 	 
 
	  
 	 (Signature)
 
	  
 	  
 
	 Title:
 	 Chairman of the Compensation Committee of Detwiler Mitchell & Co.
 
	  
 	  
 

 - 6 -

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