Document:

exv10w1

 

Exhibit 10.1

CONSULTING AGREEMENT

This Consulting Agreement is entered into by and between Connetics Corporation
and David Cohen, M.D. as of the Effective Date.

RECITALS

Connetics Corporation and David Cohen, M.D. were parties to a Consulting Agreement dated January 1,
2003, to an Amendment to Consulting Agreement dated December 8, 2003, and to a Second Amendment to
Consulting Agreement dated December 13, 2004;

The Consulting Agreement dated January 1, 2003, the Amendment to Consulting Agreement dated
December 8, 2003, and the Second Amendment to Consulting Agreement dated December 13, 2004 expired
on December 31, 2005; and

David Cohen, M.D. was appointed to Connetics Corporation’s Board of Directors on December 14, 2005.

David Cohen, M.D. and Connetics Corporation agree as follows.

AGREEMENT

Article 1. Definitions.

     (a) “Agreement” means this Consulting Agreement.

     (b) “Connetics” means Connetics Corporation, a Delaware corporation.

     (c) “Connetics Affiliate” means any company or other business entity in which Connetics has
either a direct or indirect beneficial ownership of fifty percent (50%) or more of the voting stock
or direct or indirect power to direct or cause the direction of the management and policies by any
means whatsoever.

     (d) “Connetics Proprietary Information” includes all Proprietary Information as defined in
Section 1(j) and any information, concepts or ideas used in, or reasonably related to, Connetics’
business, including information received by Connetics in confidence from another, that Connetics
discloses to Consultant, or that Consultant conceives or develops for Connetics individually or in
conjunction with others under the terms of this Agreement.

     (e) “Consultant” means David Cohen, M.D.

     (f) “Effective Date” means the later of the two dates identified within the signatory box at
the end of this Agreement.

     (g) “Intellectual Property” shall have the meaning set forth in Section 7(a).

     (h) “Parties” means Connetics and Consultant, collectively.

     (i) “Party” means Connetics and Consultant, individually.

     (j) “Proprietary Information” means any information of value, not generally known to the
public, including (but not limited to):

          (i) information relating to pharmaceuticals; processes for developing and evaluating
pharmaceuticals; the development status of pharmaceuticals; synthetic and manufacturing processes;
compounds; compositions of matter; formulations; medicaments and modes of their administration;
veterinary supplements; microorganisms; cells or parts thereof, cell lines and the progeny thereof,
technical information, such as clinical, biological, pharmaceutical and characterizing data;
clinical trial protocols, codes and status; computer programs; apparatus; devices; drawings;
designs; plans; and know-how; and

          (ii) business information, such as reports; records; employee information; customer lists;
supplier lists; marketing and sales plans; financial information; costs; and pricing information.

     (k) “Services” shall have the meaning set forth in Article 3.

     (l) “Term” shall mean the time period commencing on the Effective Date and ending on December
31, 2006.

Article 2. Term.  Connetics hereby retains Consultant, and Consultant herby accepts this
retainer as a consultant to Connetics for the Term. The Term may be extended if the Parties so
agree prior to the end of the Term. No agreement to renew shall be enforceable unless it is in
writing and is signed by the Parties. Either Party may terminate this Agreement before the
expiration of the Term by giving the other Party thirty (30) days prior written notice. In the

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event of termination pursuant to this provision, Connetics shall pay Consultant for Services
rendered prior to the date of such termination, provided such Services were rendered in accordance
with the terms of this Agreement.

Article 3. Area of Consultation. Consultant shall: (a) consult, advise, and provide
Connetics services related to the field of dermatology, including drug evaluation and development,
commercial activities and business strategies, (b) serve on Connetics’ Corporate Advisory Board,
and (c) serve as an ad hoc member of Connetics’ National Scientific Advisory Board (the
“Services”). Consultant shall perform the Services when reasonably requested to do so by
Connetics, with the days for conferences and consultations to be scheduled at such times and at
such places as mutually convenient to Connetics and Consultant.

Article 4. Consultant Other Employment.

     (a) Consultant shall promptly notify Connetics in writing if: (i) any actual or potential
conflict of interest arises during the Term, and (ii) Consultant enters into any consulting
arrangement(s) with another dermatology company(ies). In a separate letter dated contemporaneously
with this Agreement, Consultant has provided Connetics with a list of Consultant’s then current
consulting arrangements. In furtherance of this section, Connetics shall have the right to notify
Consultant if Connetics believes that a conflict of interest may have arisen based on information
known to Connetics. Notwithstanding the thirty (30) day notification requirement identified in
Article 2, the Parties agree that if Consultant agrees to perform activities for another entity
that Connetics, in its sole discretion, believes to be in competition with Connetics then Connetics
shall have the right to immediately terminate this Agreement.

     (b) Before Consultant enters into any specific time commitment project(s) (beyond brief
speaking arrangements) with any Connetics employee and/or agent, Consultant shall first discuss
such project(s) with Tom Wiggans.

     (c) Consultant agrees that the duties required in connection with any employment or
independent contract will not prevent Consultant’s proper and full performance of the Services
under the terms of this Agreement.

     (d) Consultant represents that this Agreement does not conflict with Consultant’s duties or
obligations under any other agreement to which Consultant is a party, and that Consultant is free
to disclose any information that Consultant will furnish to Connetics in connection with this
Agreement.

     (e) Notwithstanding anything in this Agreement to the contrary, Consultant shall, at all time,
have the right to accept employment with a government agency, academic institution or non-profit
scientific association.

Article 5. Compensation.

     (a) Connetics shall pay Consultant, and Consultant shall accept for Consultant’s performance
of the Services in accordance with the terms of this Agreement, compensation of Twelve Thousand
Five Hundred Dollars ($12,500.00) per calendar quarter. The maximum compensation payable to
Consultant for the performance of the Services [except for travel expenses as specified below in
Section 5(b)] is Fifty Thousand Dollars ($50,000.00), unless the Parties otherwise agree in
writing. Speaking engagements supporting Connetics or its products that are arranged by a third
party independent contractor (e.g., ABcomm, Inc.) and performed by Consultant are not included
within the Services and Consultant shall be compensated separately by such third party. The
Parties anticipate that such third party arranged speaking engagements supporting Connetics or its
products may diminish over time.

     (b) Connetics shall reimburse Consultant for reasonable travel expenses (i.e., coach class air
fare, ground transportation, lodging and meals) incurred by Consultant within the continental
United States, provided such travel expenses were incurred at the request of Connetics, with the
prior written authorization of Connetics and as a result of rendering the Services pursuant to this
Agreement. Connetics shall reimburse Consultant within thirty (30) days after Connetics receives
copies of receipts or other appropriate evidence of expenditures by Consultant satisfactory to
Connetics. Connetics shall not reimburse Consultant for time spent traveling unless such expense
is specifically authorized in writing and in advance by Connetics.

[Remainder of column intentionally left blank.]

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     (c) Unless this Agreement is terminated in accordance with Articles 2, 4, or 10, Connetics
shall pay Consultant the quarterly compensation identified in Section 5(a) according to the
following schedule:

	 	 	 	 	 	 
	 
	 	Event/Date	 	 	Amount	 
	 	 	 	 	 	 
	 	Upon Connetics’ receipt of the fully executed original Agreement.
	 	 	$12,500.00	 
	 	April 1, 2006
	 	 	$12,500.00	 
	 	July 1, 2006
	 	 	$12,500.00	 
	 	October 1, 2006
	 	 	$12,500.00	 
	 

     (d) Consultant’s social security number is provided below (within the signatory box) solely
for the purpose of permitting Connetics to report payments made to Consultant under this Agreement,
as required by applicable federal, state or local tax laws or regulations. Consultant acknowledges
and agrees that it is exclusively Consultant’s obligation to report all compensation received by
Consultant from Connetics.

Article 6. Proprietary Information.

     (a) In order to facilitate Consultant’s performance of the Services under this Agreement, it
will be necessary for Connetics to disclose the Connetics Proprietary Information to Consultant.
Accordingly, the Parties agree as follows:

          (i) Consultant shall retain the Connetics Proprietary Information in strict confidence and not
disclose and/or transfer any of the Connetics Proprietary Information to any third party without
Connetics’ prior written authorization;

          (ii) Consultant shall not use any of the Connetics Proprietary Information for any other
reason except for providing Connetics the Services under this Agreement; and

          (iii) Consultant understands that the Connetics Proprietary Information can constitute “inside
information” for securities purposes and Consultant agrees to refrain from any unauthorized
disclosure, trading or other such use (a copy of Connetics’ Insider Trading Policy will be provided
upon Consultant’s request).

     (b) Notwithstanding the foregoing, Consultant shall not be prevented from using or disclosing
portions of the Connetics Proprietary Information that Consultant can prove by written records was:

          (i) lawfully known to Consultant before the date of disclosure under this Agreement and not
obtained or derived directly or indirectly from Connetics;

          (ii) as of the Effective Date or thereafter becomes public knowledge other than by the act or
default of Consultant;

          (iii) obtained from a source independent of Connetics who is in lawful possession of such
Connetics Proprietary Information and is not subject to an obligation of confidentiality or non-use
owed to Connetics; or

          (iv) to Connetics’ reasonable satisfaction, independently developed by Consultant without use
and knowledge of such Connetics Proprietary Information.

     (c) Consultant agrees that if any of the Connetics Proprietary Information becomes subject to
the exceptions set forth in Section 6(b), Consultant will not disclose that such Connetics
Proprietary Information was received from and/or is used by Connetics unless such fact also becomes
part of the public domain.

     (d) If Consultant becomes legally compelled (by deposition, interrogatory, subpoena, civil
investigative demand or similar judicial process) to disclose any of the Connetics Proprietary
Information, then Consultant shall provide Connetics with immediate written notice of such required
disclosure. Consultant shall cooperate with Connetics to minimize the extent of any such
disclosure and take all actions reasonably available to protect the confidentiality of the
Connetics Proprietary Information. Additionally, Consultant represents that any disclosure
Consultant is legally required to make pursuant to this Section 6(d) shall be limited to that
specific Connetics Proprietary Information that Consultant is legally compelled to disclose and no
additional Connetics Proprietary Information shall be disclosed by Consultant.

     (e) Within ten (10) days of Consultant’s receipt of Connetics’ written request, Consultant
shall: (i) destroy or return to Connetics all of the Connetics Proprietary Information, including
all

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physical copies, electronic copies and any samples (except that the Consultant shall have the
right to retain one (1) record physical copy of the Connetics Proprietary Information in
Consultant’s secured confidential files so as to ascertain Consultant’s continuing obligations to
Connetics under this Agreement), and (ii) provide Connetics written notice representing that
Consultant has destroyed or returned to Connetics all physical copies, electronic copies and any
samples of the Connetics Proprietary Information and that Consultant has retained only one (1)
record physical copy of the Connetics Proprietary Information in accordance with this Section 6(e).

Article 7. Assignment of Intellectual Property.

     (a) Any intellectual property, including ideas, concepts, inventions, discoveries and the
like, whether or not patentable, that Consultant develops or conceives, individually or in
conjunction with others, as a result of performing the Services under this Agreement or the
disclosure of any Connetics Proprietary Information (individually and collectively, “Intellectual
Property”), shall be and remain at all times the sole and exclusive property of Connetics and
Consultant hereby assigns, transfers and sets over to Connetics, its successors and assigns, all of
Consultant’s right, title and interest in and to any such Intellectual Property, without further
compensation, and such Intellectual Property is covered as Proprietary Information under Article 6.

     (b) In addition, Intellectual Property shall include all writings prepared by Consultant as a
result of Consultant’s performance of the Services or receipt of the Connetics Proprietary
Information; and Consultant agrees that all such writings are prepared as works for hire for the
benefit of Connetics. Consultant hereby assigns to Connetics any copyright to which Consultant is
entitled to for any writings prepared by Consultant in the course of consulting for Connetics.

     (c) Consultant shall promptly disclose to Connetics, in writing, any such Intellectual
Property, and shall make, execute and deliver any and all instruments and documents and perform any
and all acts, necessary to obtain, maintain and enforce patents, trademarks and copyrights for such
Intellectual Property as Connetics may desire in any and all countries. All costs and expenses of
application and prosecution of such patents, trademarks and copyrights shall be paid by Connetics.

     (d) Upon Connetics’ written request, Consultant shall make any assignment provided for in this
Article 7 directly to, or for the benefit of, a Connetics Affiliate or Connetics’ designee,
including Consultant’s performance of any related obligations under this Agreement.

Article 8. Notice.  All notices, requests, consents and other communications under this
Agreement shall be in English, in writing and shall be sent by prepaid registered or certified
mail, return receipt requested; by internationally recognized next business day courier; or by
personal delivery, in each case addressed to the other Party as follows:

If to Connetics:

Tom Wiggans

Chief Executive Officer

Connetics Corporation

3160 Porter Drive

Palo Alto, California 94304

United States of America

Tel. (650) 843-2800

Fax (650) 843-2899

If to Consultant:

David Cohen, M.D.

100 Hazel Court

Norwood, New Jersey 07648

United States of America

Tel. (201) 767-2144

Fax (201) 767-2161

Either Party may designate a different contact, address, telephone number or facsimile number by
giving notice to the other Party. Notice given pursuant to this Article 8 shall be deemed to have
been given: (a) three (3) business days after sent by prepaid registered or certified mail; (b) one
(1) business day after sent by internationally recognized next business day courier, or (c) when
received if by personal delivery.

Article 9. Assignment.

     (a) This Agreement is personal to Consultant, and Consultant shall have no right or authority
to assign the Agreement or any portion thereof, to subcontract in whole or in part, or otherwise
delegate Consultant’s performance under this Agreement, without Connetics’ prior written consent.

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     (b) Connetics may assign this Agreement. Consultant agrees that if this Agreement is assigned
to any third party or Connetics Affiliate, all the terms and conditions of this Agreement shall
obtain between such third party or Connetics Affiliate and Consultant with the same force and
effect as if said Agreement had been made with such third party or Connetics Affiliate in the first
instance.

Article 10. Breach. Notwithstanding the thirty (30) day notification requirement
identified in Article 2, if either Party breaches any of the terms or conditions of this Agreement,
the non-breaching Party shall have the option to terminate this Agreement immediately upon written
notice.

Article 11. Independent Contractor.

     (a) Notwithstanding anything in this Agreement to the contrary, Consultant’s status with
Connetics shall be, at all times during the Term of this Agreement, that of an independent
contractor. It is further understood that Consultant is not a Connetics employee and does not
participate in any Connetics benefit programs. Nothing in this Agreement shall be construed to
give Consultant the power or authority to act or make representations for, or on behalf of, or to
bind or commit Connetics.

     (b) Without prior written Connetics authorization, which shall not be unreasonably withheld,
Consultant agrees not to use or refer to the name of Connetics in any public statements, whether
verbal or written, including, but not limited to, shareholder reports, prospectuses, communications
with stock market analysts, press releases or other communications with the media.

Article 12. Applicable Law; Dispute Resolution.

     (a) The validity, interpretation and performance of this Agreement and any dispute arising or
connected with this Agreement shall be governed by, construed and enforced in accordance with the
laws of the State of California, USA, notwithstanding the actual residence of the Parties, the
choice of law principles of California or the choice of law principles of any other jurisdiction.
Consultant hereby submits to the jurisdiction of the U.S. District Court for the Northern District
of California and the California State Courts serving Santa Clara County, USA.

     (b) Any dispute, controversy or claim arising out of or relating to this Agreement, or the
breach or termination of this Agreement (excluding enforcement of Articles 6 and 7 as provided
below) shall be settled by arbitration in accordance with the rules of the American Arbitration
Association then in effect. Judgment upon the award rendered by the arbitrators may be entered in
any court having jurisdiction thereof. In any arbitration pursuant to this section, the award
shall be rendered by a majority of the members of a board of arbitration consisting of three
members, one being appointed by each Party and the third being appointed by mutual agreement of the
two arbitrators appointed by the Parties. The place of arbitration shall be Palo Alto, California,
USA.

     (c) The obligations provided under Articles 6 and 7 of this Agreement are acknowledged as
necessary and reasonable in order to protect Connetics and its business, and Consultant expressly
agrees that monetary damages would be inadequate to compensate Connetics for the breach thereof.
Accordingly, Consultant agrees and acknowledges that any such violation or threatened violation
will cause irreparable injury to Connetics and that, in addition to any other remedies that may be
available, in law, in equity or otherwise, Connetics shall be entitled to obtain injunctive relief
against the breach or threatened breach by Consultant of Articles 6 or 7, without the necessity of
proving actual damages.

Article 13. Indemnification. Connetics agrees to indemnify, defend and hold harmless
Consultant from all third party claims arising from the use of product(s) developed by Connetics
for which Consultant provides Services for under this Agreement, except Connetics shall have no
obligation to indemnify, defend and hold harmless Consultant for those claims that result from the
negligence, misconduct or omission of the Consultant.

Article 14. Survival.  The covenants and agreements set forth in Articles 6, 7, 11, 12,
13, 14 and 15 shall survive any termination or expiration of this Agreement and remain in full
force and effect regardless of the cause of termination.

Article 15. No Waiver. No failure or delay on the part of a Party in exercising any
right under this Agreement will operate as a waiver of, or impair, any such right. The failure of
either Party to enforce at any time any of the provisions of this Agreement, or the failure to
require at any time performance by the other Party of any of the provisions of this Agreement,
shall in no way be construed to be a present or future waiver of such provisions, nor in

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any way affect the validity of either Party to enforce each and every such provision thereafter.

Article 16. Headings.  Article headings contained in this Agreement are included for
convenience only and form no part of the agreement between the Parties.

Article 17. Partial Invalidity.  If any provision of this Agreement is held to be
invalid, illegal, or unenforceable by a court of competent jurisdiction: (a) such provision will be
deemed amended to conform to applicable laws of such jurisdiction so as to be valid and
enforceable, or, if it cannot be so amended without materially altering the intention of the
Parties, it will be stricken; (b) the remaining provisions shall remain in full force and effect;
(c) the validity, legality and enforceability of such provision will not in any way be affected or
impaired thereby in any other jurisdiction; and (d) the remainder of this Agreement will remain in
full force and effect. The Parties agree to renegotiate in good faith any term held invalid and to
be bound by the mutually agreed substitute provision in order to give the most approximate effect
intended by the Parties.

Article 18. No Rule Of Construction.  The Parties agree that this Agreement shall be
deemed to have been drafted by the Parties and the terms and provisions of this Agreement shall be
construed fairly as to each Party and not in favor of or against any Party regardless of which
Party was generally responsible for the preparation of this Agreement.

Article 19. Multiple Counterparts. This Agreement may be executed in a number of
identical counterparts, each of which will be deemed an original, but all of which together will
constitute one and the same instrument.

Article 20. Entire Agreement.  This Agreement sets forth the entire agreement and
understanding between Parties with respect to the subject matter of this Agreement and supersedes
all prior agreements, understandings and representations. No part of this Agreement may be amended
or modified without the express written authorization of the Parties.

[Remainder of column intentionally left blank.]

In Witness Whereof, the Parties have entered into this Agreement as of the Effective Date.

“Connetics”

CONNETICS CORPORATION

Signature: /s/ Thomas Wiggans

Print:
Thomas Wiggans

Title: Chief Executive Officer

Date: 1/31/06

“Consultant”

DAVID COHEN, M.D.

Signature: /s/ David Cohen

Print:
David E. Cohen, M.D.

Social Security No.: ________________________

Date: 1/28/06

Page 6 of 6ASSETS PURCHASE AGREEMENT

      1.    Introduction. This Assets Purchase Agreement (the "Agreement") is
made December 19, 2005, between PERMIAN DRILLING CORPORATION, a New Mexico
corporation ("Seller"), and MAVERICK OIL AND GAS, INC. a Nevada corporation or
its designated affiliate or subsidiary entity ("Buyer").

      2.    Sale and Purchase of Personal Property Assets. Seller owns and
operates Permian Drilling Corporation Rig #2, a Wilson 75, more completely
described upon Schedule "A" attached hereto and incorporated herein by reference
("Rig #2"). Seller hereby sells to Buyer and buyer hereby purchases from Seller
Rig #2 upon the terms and conditions set out in this Agreement.

      3.    Purchase Price. The purchase price (the "Purchase Price") shall be
Six Million Nine Hundred Thousand Dollars ($6,900,000.00) cash, to be paid as
follows: a) $690,000.00 earnest money (the "Deposit") shall be deposited into
the account of Seller at First National Bank of Hobbs, Account No. 260315210 by
electronic wire transfer no later than 11:59 A.M. MST on Wednesday December
21,2OO5; this Deposit shall be credited toward the purchase price BUT IS NOT
REFUNDABLE IN THE EVENT BUYER DOES NOT CLOSE THIS TRANSACTION AND IS IN BREACH
OF ITS OBLIGATIONS AS AGREED HEREIN; b) the $6,210,000.00 balance shall be sent
by electronic wire transfer to the escrow account of Elliott & Waldron Title &
Abstract Co., Inc., Hobbs, New Mexico, no later than the closing date of this
transaction, as described herein. If this transaction closes, Seller shall pay
the closing costs of Elliott & Waldron, up to but in no event exceeding
$5,000.00. Each party shall pay its own attorney fees and other costs. If this
transaction does not close on or before January 31, 2006, and Buyer is not in
breach of its

obligations as agreed herein, at Buyer's option and subject to Paragraph 13
below, the Deposit shall be immediately refunded to Buyer. If this transaction
does not close on or before January 31, 2006, and Buyer is in breach of its
obligations as agreed herein, the Deposit may be retained by Seller as its sole
remedy for Buyer's breach.

      4.    Time and Place of Closing. The closing shall take place at Elliott &
Waldron, 1819 N. Turner, Suite B, Hobbs, New Mexico 88240, on the Delivery Date
(defined below), at 1:00 P.M. MST, or such other place or time as may be
mutually agreed.

      5.    Adjournment of Closing. The closing may be adjourned to another time
but only upon Buyer's and Seller's mutual written consent.

      6.    Documents to be Delivered at Closing. At the closing the Seller
shall deliver to the Buyer a properly executed Bill of Sale with Warranties of
title transferring Rig #2 to Buyer, free and clear of liens and encumbrances. At
closing, Buyer shall deliver to Seller by electronic wire transfer into the
escrow account of Elliott & Waldron the balance of the purchase price as
described above.

      7.    Possession: No Warranties as to Condition, etc. Buyer shall take
possession of Rig #2 in Lea County, New Mexico upon the completion of Rig #2's
drilling project in Lea County, New Mexico, for [add name of Operator] which
shall be no later than January 15, 2006 (the "Delivery Date"). Rig #2 shall be
sold and transferred "AS IS, WHERE IS, WITH ALL FAULTS AND WITH NO WARRANTIES
EXPRESSED OR IMPLIED, AS TO RIG #2'S CONDITION, MAINTENANCE REQUIREMENTS,
MERCHANTABILITY, OR SUITABILITY FOR BUYER'S INTENDED USES". Provided, however,
that Rig #2 shall be delivered to Buyer in approximately the same condition as
it is in

as of Buyer's execution of this Agreement with no material adverse change other
than normal wear and tear.

      8.    When Title Passes. Upon the delivery to Buyer and to Seller at
closing of the documents and money described in Paragraph 6, this sale shall
close and Buyer shall thereupon have title to and possession of Rig #2 purchased
hereunder. The parties anticipate that closing shall occur on the Delivery Date
and that title shall pass on that date.

      9.    Seller's Representations. Seller represents and warrants the
following:

            (a)   Good Title. Seller has good and marketable title to all the
                  assets to be sold pursuant to this Agreement, and such assets
                  are free of any encumbrances or will be free of encumbrances
                  at closing.

            (b)   No Judgments, Liens, etc. No judgments, liens, security
                  interests, adverse claims, actions, or proceedings are
                  presently outstanding or pending against Rig #2 or any other
                  assets of the business or Seller and none will be outstanding
                  or pending when the sale closes.

            (c)   No warranties. There are no warranties as to Rig #2's
                  condition, maintenance requirements, merchantability, or
                  suitability for Buyer's intended uses.

      10.   Buyer's Representations. Buyer represents and warrants that
Buyer has had an opportunity to inspect Rig #2 sold hereunder, and Buyer knows
the physical condition of Rig #2 as of its execution of this Agreement. Buyer
represents and warrants that Buyer has not relied upon any representations by
Seller or others as to the past or present earnings or the prospects of future
earnings to be derived from Rig #2. BUYER ACKNOWLEDGES AND AGREES THAT RIG #2 IS
SOLD AND TRANSFERRED "AS IS, WHERE IS, WITH ALL FAULTS AND WITH NO WARRANTIES,
EXPRESSED OR IMPLIED, AS TO RIG #2'S CONDITION, MAINTENANCE REQUIREMENTS,
MERCHANTABILITY, OR SUITABILITY FOR BUYER'S INTENDED USES".

      11.   Risk of Loss or Destruction. Seller assumes all risk of loss or
damage caused by tire, wind, persons or other casualty up to the delivery of
possession to Buyer as provided herein.

      12.   Agreement Binding. This Agreement is binding upon and shall
inure to the benefit of the parties' successors and assigns. This Agreement
constitutes the entire agreement between Buyer and Seller and supercedes all
prior agreements and understandings, both written and oral, with respect to the
subject matter hereof, and can be amended only by written document signed by
both parties.

      13.   Delay in Delivery. Should Seller fail to Deliver Rig #2 on or
before January 15, 2006, Buyer shall have the option to terminate this Agreement
by giving written notice to Seller and Buyer shall be entitled to an immediate
refund of the Purchase Price and any closing costs of Elliott & Waldron paid by
Buyer. If Buyer elects not to terminate this Agreement pursuant to the preceding
sentence and closing occurs, the Purchase Price shall be reduced by $5,000 for
each day after January 15, 2006 on which Seller fails to deliver Rig #2 as
contemplated herein.

      14.   Applicable law. This Agreement shall be construed in accordance
with the laws of the State of New Mexico.

      15.   Counterparts: Facsimile Signatures. This Agreement can be signed
in counterparts, which together shall constitute an original document, and by
facsimile signature, which shall be treated as original signatures of all
purposes.

      EXECUTED BY SELLER THIS 19th DAY OF DECEMBER, 2005, AND BY BUYER THIS
___________ DAY OF DECEMBER, 2005.

PERMIAN DRILLING CORPORATION            MAVERICK OIL AND GAS, INC.

By: /s/ Robert C. Brown                 By: /s/ V. Ray Harlow
   -----------------------------           -------------------------
      ROBERT C. BROWN, President              V. RAY HARLOW, CEO
      814 West Marland                        888 E. Las Olas Blvd., Suite 400
      Hobbs, New Mexico 88240                 Fort Lauderdale, FL 33301

                  SELLER                                    BUYER

      [LOGO] MAVERICK
      OIL AND GAS, INC.

                               December 19, 2005

Mr. Randy Ford
RK Ford and Associates

VIA FACSIMILE

Re:  Permian Drilling Corporation Rig #2

CC:  Johnny Cope --   Permian Drilling Corporation
                      P.O. Box 726
                      Hobbs, NM 88241

Dear Randy,

Pursuant to our discussions earlier today, attached is the final version of the
Sale and Purchase Agreement between Maverick Oil and Gas, Inc. and Permian
Drilling Corporation for the acquisition of Permian Rig #2.

For the avoidance of confusion, I wish to reiterate that we have today agreed
that (1) Maverick will cause the initial payment of $690,000.00 to be
electronically transferred to the designated Permian bank account within 48
hours of the SPA being executed by both parties and (2) that Maverick will cause
the transaction to be concluded on or about January 3,2006 and that Maverick
will pay to Permian the rate of $14,000.00 per day for each day that elapses
between the earliest date that the subject rig is available for delivery
following the completion of its current well (estimated to be approximately
December 27, 2005) and the date that the transaction is finally closed during
January, 2006.

If you are in agreement with the above and the Sale and Purchase Agreement is
acceptable, please so designate by signing in the space provided below and
returning to me via return facsimile.

          888 East Las Olas Blvd., Suite 400; Fort Lauderdale, FL 33301
                      Tel: 954-463-5707; Fax: 954-463-6260

We appreciate your cooperation in this matter and look forward to concluding
this transaction shortly.

Sincerely,

/s/ V. Ray Harlow
--------------------------
V. Ray Harlow
Chief Executive Officer

Agreed and Accepted

/s/ Robert Brown
--------------------------
Permian Drilling Corporation
By:  Robert Brown
Its: President

          888 East Las Olas Blvd., Suite 400; Fort Lauderdale, FL 33301
                      Tel: 954-463-5707; Fax: 954-463-6260

                  AGREEMENT REGARDING ASSIGNMENT AND ASSUMPTION
                         OF RIGHTS AND OBLIGATIONS UNDER
                            ASSETS PURCHASE AGREEMENT

            THIS AGREEMENT ("Agreement") is executed and delivered on the 30th
day of January, 2006, by Maverick Oil and Gas, Inc., a Nevada corporation, as
assignor ("Assignor" or the "Purchaser"), and Thornton Drilling Company, a
Delaware corporation, as assignee ("Assignee").

            WHEREAS, Assignor has the right to purchase a Wilson 75 drilling rig
known as the Permian Drilling Corporation Rig #2 from Permian Drilling
Corporation, a New Mexico corporation (the "Seller"), pursuant to the terms and
conditions of that certain Assets Purchase Agreement dated December 19, 2005
(the "Purchase Agreement"), by and between the Seller and the Purchaser.

            WHEREAS, (i) Assignor wishes to assign its rights under the Purchase
Agreement to Assignee, including without limitation its right to purchase Rig #2
and the right to apply the Deposit made by Assignor against the Purchase Price
for Rig #2 (the "Assigned Rights"), and (ii) Assignee wishes to accept the
Assigned Rights and, subject to the terms hereof, assume the related obligations
of the Purchaser under the Purchase Agreement (the "Assumed Obligations");

            WHEREAS, capitalized terms used herein without definition shall have
the respective meanings ascribed to them in the Purchase Agreement;

            NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, Assignee and Assignor, with the consent and
agreement of the Seller, hereby undertake, covenant and agree as follows:

            Section 1.   Transfer of Assigned Rights. Assignor hereby assigns,
transfers and sets over to Assignee the Assigned Rights, subject only to the
assumption by Assignee of the Assumed Obligations, to have and to hold the same
unto Assignee and Assignee's successors and assigns forever, and Assignee hereby
accepts such assignment of the Assigned Rights. Assignor hereby constitutes and
appoints Assignee, its successors and assigns, the true and lawful attorneys of
Assignor, with full power of substitution in the name, place and stead of
Assignor or otherwise, but on behalf and for the benefit of Assignee, its
successors and assigns, to enforce the terms of the Purchase Agreement and from
time to time to institute and prosecute, in the name of Assignor or otherwise,
any and all proceedings at law, in equity or otherwise, which Assignee, its
successors and assigns may deem proper in order to assert or enforce any claim
or right arising out of the Purchase Agreement, and to do any and all acts and
things in relation to the Purchase Agreement that Assignee, its successors and
assigns shall deem advisable, Assignor hereby declaring that the foregoing
powers are coupled with an interest and are and shall be irrevocable and
perpetual and shall not be terminated by any act of Assignor, or by operation of
law, or in any other manner or for any reason whatsoever.

            Section 2.   Assumption of Assumed Obligations.

            (a)   In consideration of the assignment provided for in Section 1
hereof and the payment by Assignor to Assignee provided for in paragraph 2 (b)
below, and conditioned upon such payment, Assignee hereby assumes the Assumed
Obligations. The Assignee does hereby expressly acknowledge and agree that it
will be fully bound by the terms of the Purchase Agreement to the same extent as
if it were an original party thereto, and that except as expressly provided for
herein, Assignee shall indemnify and hold harmless Assignor from any liability
or obligation arising out of the Assumed Obligations.

            (b)   As partial consideration for the assumption of the Assumed
Obligations, Assignor agrees to pay to Assignee the Assignment Consideration,
defined below. The "Assignment Consideration" is the sum of the (i) Purchase
Price of $6,900,000, plus (ii) any amounts due to the Seller pursuant to the
letter agreement dated December 19, 2005, between Assignor and Seller providing
for a payment of $14,000 per day in certain circumstances, plus (iii) to the
extent that there are any sales taxes payable as a consequence of the sale and
purchase of Rig #2 and the Seller is not responsible for such taxes, the amount
of such taxes, less (iv) the $3,646,500 appraised value of Rig #2, less (v) the
$690,000 Deposit previously paid by Assignor. The Assignment Consideration shall
be paid by Assignor to Assignee simultaneously with Assignee's payment to Seller
of all sums due at the closing of the Purchase Agreement. The Assignment
Consideration shall be applied by the Assignee towards the remaining Purchase
Price for Rig #2 at the closing of the Purchase Agreement. If for any reason the
Purchase Agreement does not close and the Assignment Consideration has been paid
to Assignee, and if Assignee does not have any continuing liability under the
Purchase Agreement, the Assignment Consideration shall be repaid by Assignee to
Assignor. Notwithstanding anything to the contrary contained herein, if the
Purchase Agreement does not close as a result of default by Assignee to fully
perform the Assumed Obligations, the Assignment Consideration shall be repaid to
Seller regardless of whether Assignor has continuing liability under the
Purchase Agreement.

            Section 3.   Consent of Seller. This Agreement is conditioned upon
and subject to the consent by the Seller to the assignment of the Assigned
Rights and to the assumption of the Assumed Obligations.

            Section 4.   Drilling Contract. Assignor and Assignee agree, upon
the purchase of Rig #2 by Assignee pursuant to the Purchase Agreement and this
Agreement, to enter into a drilling services contract in the form attached to
this Agreement as Exhibit A.

            Section 5.   Further Assurances. Each party, for itself and its
successors and assigns, hereby covenants and agrees that, at any time and from
time to time after delivery of this Agreement, another party's request and
expense but without

further consideration, it will do, execute, acknowledge or deliver, or will
cause to be done, execute, acknowledged or delivered, all such further
acknowledgments, deeds, conveyances, transfers, and similar instruments of
assignment or assumption as may be reasonable and necessary for the conveying,
assigning, transferring, assuming, confirming or vesting in such party, any
documents or instruments intended to be conveyed hereby.

            Section 6.   Successors and Assigns. This Agreement shall be binding
upon the parties and their respective successors and assigns, for the uses and
purposes above set forth and referred to and shall inure to the benefit of the
parties hereto and their respective successors and assigns.

            Section 7.   Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws (other than those governing
conflict of law questions) of the State of New Mexico.

            IN WITNESS WHEREOF, Assignor and Assignee have caused this Agreement
to be duly executed.

                                       ASSIGNOR:

                                       Maverick Oil and Gas, Inc.

                                       By________________________________
                                       Name:
                                       Title:

                                       ASSIGNEE:

                                       Thornton Drilling Company

                                       By________________________________
                                       Name:
                                       Title:

                      ADDENDUM TO ASSETS PURCHASE AGREEMENT
                              AND LETTER AGREEMENT

      The Parties to that certain Assets Purchase Agreement dated December 19,
2005 ("Purchase Agreement") and letter dated December 19, 2005 ("Letter
Agreement"), copies of which are attached hereto and incorporated herein by
reference, hereby modify the Purchase Agreement and Letter Agreement only as
follows:

      A.    Thornton Drilling Company, a Delaware corporation, is added as an
additional Buyer. Upon the delivery at closing of all monies owing to Seller by
Buyers, the Buyers shall designate the name of the Buyer to whom the Bill of
Sale will be issued and delivered by Seller.

      B.    The Parties reaffirm the continuing obligation of Maverick and
Thornton as Buyers to pay to Seller at closing the unpaid Purchase Price and the
additional sum of $14,000.00 per day for each day that elapses between the
earliest date that the subject rig was available for delivery following the
completion of its then-current well and the date that the transaction is finally
closed during January 2006. This day rate began December 28, 2005 at 2:00 a.m.,
and will continue through January 30, 2006, the current anticipated day of
closing. If the closing is completed before or after January 30, 2006, the sum
of $14,000.00 per day will be deducted or added as applicable through the date
of closing. The Buyer shall pay Seller at the time of closing the following
amount:

            $6,900,000.00 (original sale price)
            -$690,000.00 (already received)
            +$476,000.00 (day rate 12/28/05 through 1/30/06 (34 days)
            +$32,833.00 (gross receipts tax)
            TOTAL OWED AT CLOSING - $6,717,833

All funds are to be wire-transferred into the trust account of Elliott & Waldron
on the date of closing by 11:59 a.m. New Mexico time before closing is
completed. Elliott & Waldron's wiring instructions are attached hereto as
Exhibit A and made a part hereof.

      C.    This Addendum can be signed in counterparts, which together shall
constitute an original document, and by facsimile signatures, which shall be
treated as original signatures for all purposes.

      D.    Except as expressly modified herein, all provisions of the Purchase
Agreement and Letter Agreement remain unchanged and in full force and effect.

      EXECUTED by Seller this 30th day of January, 2006, by Maverick this 30th
day of January, 2006, and by Thornton this 30th day of January, 2006.

PERMIAN DRILLING CORPORATION          MAVERICK OIL AND GAS, INC.

By:______________________________     By:_____________________________________
      ROBERT C. BROWN, President            V. RAY HARLOW, CEO
      814 West Marland                      888 East Las Olas Blvd., Suite 400
      Hobbs, New Mexico 88240               Fort Lauderdale, FL 33301
                         SELLER                                   BUYER

AGREED AND ACCEPTED

THORNTON DRILLING COMPANY

By:_______________________________
Name:_____________________________
Title:____________________________

            ADDITIONAL BUYER

                                       -2-

                                    EXHIBIT A

                               WIRING INSTRUCTIONS

WELLS FARGO BANK NEW MEXICO - ALBUQUERQUE
200 EAST LOMAS
ALBUQUERQUE, NM 87103

ABA #121000248

CREDIT TO: WELLS FARGO BANK - HOBBS-ABQ. PLEASE PHONE ADVISE HOBBS

FOR FURTHER CREDIT: ELLIOTT & WALDRON TRUST ACCOUNT

ACCOUNT NUMBER:     1100225525

NOTIFY DAVID WHEN RECEIVED     505-393-7706

REFERENCE PERMIAN DRILLING

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