Document:

FAIRCHILD INTERNATIONAL CORPORATION

FAIRCHILD INTERNATIONAL CORPORATION

595 Hornby Street, Suite 603

Vancouver, British Columbia V6C 1A4 Canada

604-646-5614

May 28, 2002

Praxis Pharmaceuticals Inc.

#100 - 856 Homer Street

Vancouver, BC V6B 2W5

Gentlemen:

This letter outlines our agreement pertaining to the Termination of License And Research & Development Agreement Dated the 28th day of February, 2001 (the "Termination Agreement") and the amendment to the Termination Agreement dated January 15, 2002 (the "First Amendment").

In the Termination Agreement, Fairchild and Praxis had agreed that Praxis would retain those common shares of Fairchild issued to Praxis under the terms of the original license agreement; and that Praxis would pay to Fairchild 30% of Net Revenues from sales of the agents in the arthritis and topical treatment of dermal wrinkles to a maximum of $250,000 over the first three years of sales (the "Royalty Obligation").

In the First Amendment Fairchild and Praxis agreed that (1) Praxis would place its Fairchild shares (the "Shares") in a voluntary pooling arrangement whereby an amount equal to 1% of the total number of Fairchild's outstanding shares would be released every three months to Praxis, and (2) so long as Praxis paid Fairchild 66.6% of the proceeds from the sale of the Shares until US$175,000 had been paid, Fairchild would deem that payment to be in full and complete satisfaction of the Royalty Obligation described above.

Fairchild and Praxis now further amend the Termination Agreement and the First Amendment as follows:

1. The Shares need not be placed in a voluntary pooling arrangement.

2. Praxis shall comply with all of the requirements for the resale of the Shares under Rule 144 of the United States Securities Act of 1933.

3. So long as Praxis has paid Fairchild a total of US$175,000 by May 31, 2003, such payment shall be deemed to be in full and complete satisfaction of the Royalty Obligation described above.

Please sign below to indicate your agreement and acceptance of this amendment to the Termination Agreement.

FAIRCHILD INTERNATIONAL CORPORATION

By: /s/ Byron Cox

_______________________________

Byron Cox, Secretary

Agreed to and accepted this 28th day of May, 2002.

PRAXIS PHARMACEUTICALS INC.

By: /s/ Robert Smith

_______________________________

Robert Smith, Secretary*

PARTICIPATION AGREEMENT

THIS AGREEMENT made the 25th day of June, 2002

BETWEEN:
PATCH ENERGY INC.

(herein called "Patch")

OF THE FIRST PART

AND:
FAIRCHILD INTERNATIONAL CORPORATION

(herein called "Fairchild")

OF THE SECOND PART

WHEREAS:

A.Pursuant to the terms of a farmout and joint operating agreement dated May 1, 2002 (the "Farmout Agreement") between Patch, True Energy Inc. and Arsenal Capital Inc., Patch has the right to earn a 12.5% interest (the "Initial Interest") in the Farmout Lands (as defined in the Farmout Agreement) by incurring 15.625% of the costs (the "Initial Costs") associated with the Test Wells (as defined in the Farmout Agreement);

B.Pursuant to the terms of a letter agreement dated June 19, 2002 (the "Amending Letter"), the parties to the Farmout Agreement acknowledged that Patch had the option (the "Patch Option") to earn a further 12.5% interest (the "Further Interest") in the Farmout Lands by incurring a further 15.625% of the costs (the "Further Costs") associated with the Test Wells;

C.Fairchild is desirous of earning the Further Interest in consideration of incurring the Further Costs.

THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties hereto agree as follows:

1.PARTICIPATION

1.1Patch hereby agrees to exercise the Patch Option and grants to Fairchild the right to earn the Further Interest.

1.2In order to earn the Further Interest Fairchild shall fund the Further Costs otherwise to be incurred by Patch pursuant to the terms of the Farmout Agreement, as amended by the Amending Letter and in this regard Fairchild shall pay such Further Costs as and when requested by Patch in order that Patch may fulfil its obligations under the Farmout Agreement in respect of the Further Costs provided that, if Fairchild fails to make any such payments, its right to earn the Further Interest shall cease and this Agreement shall be terminated.

1.3In circumstances where Fairchild incurs all the Further Costs, it shall have earned the right to the Further Interest and, in such instance, Patch shall use its reasonable best efforts to seek the consents necessary to assign the Further Interest to Fairchild provided that, if such consents are not obtained, Patch shall hold the Further Interest in trust for Fairchild.

1.4In circumstances where Patch elects to cease incurring the Initial Costs, it shall so advise Fairchild prior to Patch being in default of its obligations under the Farmout Agreement and Fairchild shall have the right, but not the obligation, upon reimbursing Patch for the Initial Costs incurred by it, to make all remaining Initial Costs and earn the Initial Interest, in which case the provisions of section 1.3 herein shall apply mutatis mutandis to the Initial Interest.

2.REPRESENTATIONS AND WARRANTIES OF PATCH

2.1Patch represents and warrants to Fairchild in order to induce Fairchild to enter into this Agreement, as follows:

(a)the Farmout Agreement, as amended by the Amending Letter, is in good standing, not in default and enforceable by Patch in accordance with its terms;

(b)Patch has not assigned, transferred, optioned or otherwise encumbered the Initial Interest or the Further Interest except as provided for herein; and

(c)Patch has all corporate authority and has obtained any and all consents required to enter into this Agreement.

3.REPRESENTATIONS AND WARRANTIES OF FAIRCHILD

3.1Fairchild represents and warrants to Patch in order to induce Patch to enter into this Agreement that Fairchild has all corporate authority and has obtained any and all consents required to enter into this Agreement.

4.COVENANTS OF PATCH

4.1Patch covenants with Fairchild that it shall:

(a)upon receipt of any payments from Fairchild pursuant to section 1.2 hereof, advance those payments to True in accordance with the terms of the Farmout Agreement; and

(b)keep Fairchild informed in a timely manner of the operations under the Farmout Agreement and shall provide Fairchild with copies of any data it shall receive of the Test Wells.

5.GENERAL

5.1Time shall be of the essence in this Agreement.

5.2This Agreement may be executed in counterpart and delivered by facsimile transmission and each counterpart, once so delivered to the other party, shall be binding on the parties.

5.3This Agreement shall be subject to, interpreted, construed and enforced in accordance with the laws in effect in the Province of British Columbia. Each party accepts the jurisdiction of the courts of the Province of British Columbia.

5.4This Agreement supersedes and replaces all other agreements, documents, discussions and verbal understandings between the parties with respect to the Alborada Contract and contains the entire agreement between the parties.

5.5The address for service of notices for each party is:

	
To Patch:

Patch Energy Inc.

100 - 856 Homer Street

Vancouver, BC V6B 2W5

Attention: George Tsafalas

	
 

	
To Fairchild:

Fairchild International Corporation

100 - 856 Homer Street

Vancouver, BC V6B 2W5

Attention: George Tsafalas

5.6This Agreement shall enure to the benefit of and be binding upon the parties hereto and each of their respective successors and assigns.

5.7Each of the parties covenant and agree to do such further acts and execute and deliver all such further documents, conveyance and transfers as may be reasonably requested or required by one of the parties, in order to fully perform and carry out the terms of this Agreement.

IN WITNESS WHEREOF the parties have executed this Agreement as of the date first set out above.

 

PATCH ENERGY INC.

/s/ George Tsafalas

Per:

Authorized Signatory

 

FAIRCHILD INTERNATIONAL CORPORATION

/s/ George Tsafalas

Per:

Authorized SignatoryExhibit

10.72

 

DEFERRED COMPENSATION

TERMINATION AGREEMENT

 

                This Deferred Compensation

Termination Agreement, dated as of June 30, 2002, is by and between Vari-Lite

International, Inc. (the “Company”) and H.R. Brutsché III (the “Director”).

 

W I T N E S S E T H:

                WHEREAS, the Company (formerly

known as Vari-Lite Holdings, Inc.) and the Director entered into a Deferred

Compensation Agreement, dated July 1, 1995, as amended by Amendment No. 1 to

the Deferred Compensation Agreement, dated November 2, 1998 and Amendment No. 2

to the Deferred Compensation Agreement, dated December 28, 2001 (as amended,

the “Deferred Compensation Agreement”); and

 

                WHEREAS,

the Company has suffered a decline in its financial performance and management

and the Board of Directors of the Company have reviewed and made

recommendations for reducing expenses of the Company in order to improve the

Company’s financial performance; and

 

                WHEREAS,

the Compensation Committee of the Board of Directors of the Company (the

“Compensation Committee”) has determined that it is in the best financial

interest of the Company to terminate the Deferred Compensation Agreement

effective June 30, 2002; and

 

                WHEREAS,

the Director is a significant stockholder of the Company and agrees that it is

in the best financial interest of the Company to consent to the termination of

the Deferred Compensation Agreement as proposed by the Compensation Committee;

 

                NOW, THEREFORE, in consideration

of the foregoing and other good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged, the parties hereto hereby agree

that the Deferred Compensation Agreement is cancelled and terminated and shall

be of no further force or effect.

 

                IN

WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date

first above written.

 

 

	

   

  	

  VARI-LITE INTERNATIONAL,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  T. Clay Powers, President

  
	

   

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  H.R. Brutsché III

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