Document:

Unassociated Document

    [EXECUTION]

     

     

     

    SEVENTH
      AMENDMENT TO LOAN AND SECURITY AGREEMENT

     

    THIS
      SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (the "Seventh Amendment"),
      made
      and entered into as of the 26th day of September, 2006, by and among Streicher
      Mobile Fueling, Inc., a Florida corporation (hereinafter referred to as
      "Fueling"), SMF Services, Inc., a Delaware corporation (hereinafter referred
      to
      as "Services"), H & W Petroleum Company, Inc., a Texas corporation
      (hereinafter referred to as "H & W" and, collectively with Fueling and
      Services, as "Borrower") and Wachovia Bank, National Association, successor
      by
      merger to Congress Financial Corporation (Florida) (hereinafter referred to
      as
      "Lender").

     

    RECITALS

     

    A. On
      September 26, 2002, Fueling and Lender entered into a Loan and Security
      Agreement (the "Agreement"), establishing a revolving line of credit (the
      "Revolving Loans") by Lender in favor of Fueling.

     

    B. Fueling
      and Lender executed a Consent and First Amendment to Loan and Security Agreement
      dated as of March 31, 2003 (the "First Amendment"), consenting to certain
      subordinated debt of Fueling and modifying certain defined terms in the
      Agreement.

     

    C. Fueling
      and Lender executed a Second Amendment to Loan and Security Agreement dated
      as
      of August 29, 2003 (the “Second Amendment”), (1) permitting Fueling to incur
      certain additional secured Indebtedness, and (2) releasing Lender's security
      interest in the patents (including the related trade names utilized in such
      patents) constituting a portion of the Collateral, subject to the terms and
      conditions stated therein.

     

    D. Fueling
      and Lender executed a Third Amendment to Loan and Security Agreement dated
      as of
      August 30, 2003 (the "Third Amendment"), modifying certain terms of the
      Agreement in order to reflect that the amount of the additional secured
      Indebtedness contemplated by the Second Amendment exceeded the actual amount
      thereof.

     

    E. Fueling,
      Services and Lender executed a Fourth Amendment to Loan and Security Agreement
      dated as of February 18, 2005 (the "Fourth Amendment"), adding Services as
      an
      additional borrower under the Revolving Loans, extending the term of the
      Agreement, and modifying the applicable Interest Rate, the unused line fee
      and
      certain covenants of the Agreement.

     

    F. Fueling,
      Services, H & W and Lender executed a Fifth Amendment to Loan and Security
      Agreement dated as of October 1, 2005 (the "Fifth Amendment"), adding H & W
      as an additional borrower under the Revolving Loans, extending the term of
      the
      Agreement, increasing the Maximum Credit amount for the Revolving Loans, adding
      certain inventory to the Borrowing Base, decreasing the applicable Interest
      Rate, and modifying certain covenants and other terms of the
      Agreement.

     

    G. Borrower
      and Lender executed a Sixth Amendment to Loan and Security Agreement effective
      as of March 31, 2006 (the "Sixth Amendment"), (1) adding (a) an Interest Rate
      option based on the London interbank offered rate, and (b) certain leased
      Vehicles and Equipment to the Excluded Assets from the Collateral, and (2)
      amending the Capital Expenditures covenant of the Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    H. Borrower
      and Streicher Realty, Inc., a Florida corporation, have requested that Lender
      increase the Maximum Credit amount for the Revolving Loans and modify the
      covenant in the Agreement which limits Borrower's loans and advances to other
      persons, and Lender is agreeable to same, subject to the terms and conditions
      hereinafter set forth.

     

    NOW
      THEREFORE, in consideration of the mutual covenants of the parties hereto,
      and
      for other good and valuable consideration, it is agreed as follows:

     

    1. The
      foregoing statements are true and correct and are incorporated herein as if
      set
      forth in full.

     

    2. Unless
      otherwise defined herein, all terms used herein shall have the definitions
      specified in the Agreement, as modified by the First Amendment, the Second
      Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment and
      the Sixth Amendment; all references hereinafter made to the Agreement to include
      the modifications thereto effectuated pursuant to the First Amendment, the
      Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment
      and the Sixth Amendment.

     

    3. Borrower
      confirms and acknowledges that the balance due Lender under the Revolving Loans
      as of the close of business on September 21, 2006 was the principal amount
      of
      $13,608,844.46 plus accrued interest since the date last paid, all free and
      clear of any defense, set-off or counterclaim.

     

    4. The
      Agreement is hereby modified as follows (all references to Sections and
      Subsections being the applicable Sections and Subsections of the
      Agreement):

     

    
      	 	
              (a)

            	
              In
                Section 1.45, the amount "$25,000,000.00" is substituted in lieu
                of the
                amount "$20,000,000.00".

            

    

     

    
      	 	
              (b)

            	
              At
                the end of Section 9.10, a semi-colon is substituted in lieu of the
                period
                at the end of subsection (g), and subsection (h), reading as follows,
                is
                added immediately following such
                semi-colon:

            

    

     

    (h) loans
      and
      advances made to customers of Borrower for their purchases of certain
      ChevronTexaco equipment utilized with the ChevronTexaco products sold by
      Borrower and which qualify for ChevronTexaco's deferred revenue program;
      provided, however, that the aggregate outstanding amount of such loans and
      advances shall not, at any time, exceed $250,000.00.

     

    5. Each
      and
      every reference to the Agreement in the other Financing Agreements shall be
      deemed to refer to the Agreement, as modified by this Seventh
      Amendment.

     

    6. The
      effectiveness of this Seventh Amendment is subject to satisfactory compliance
      with conditions precedent requiring that Lender shall have
      received:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              all
                requisite corporate action and proceedings in connection with this
                Seventh
                Amendment and the other Financing Agreements shall be satisfactory
                in form
                and substance to Lender, and Lender shall have received all information
                and copies of all documents, including records of requisite corporate
                action and proceedings which Lender may have requested in connection
                therewith, such documents where requested by Lender or its counsel
                to be
                certified by appropriate officers or governmental authorities;
                and

            

    

     

    
      	 	
              (b)

            	
              such
                additional documents, instruments and agreements as are required
                hereunder
                as well as those which Lender or its counsel may reasonably
                request.

            

    

     

    7. As
      partial consideration for Lender amending the Agreement as provided above,
      Lender has fully earned a nonrefundable facility fee in the amount of
      Twenty-Five Thousand Dollars ($25,000) which shall be paid to Lender
      simultaneously with the execution of this Seventh Amendment, irrespective of
      any
      actual further funding under the Revolving Loans.

     

    8. Borrower
      represents and warrants to Lender that, except as has been otherwise disclosed
      to Lender in writing, the representations and warranties contained in the
      Agreement and all related loan documentation are true and correct on and as
      of
      the date hereof (with the same force and effect as if made on and as of the
      date
      hereof, other than representations and warranties made as of a specific date
      which shall be deemed made as of such date) and with respect to this Seventh
      Amendment and the related documentation referenced herein, and that no Default
      or Event of Default shall have occurred and be continuing. Specifically, (a)
      Fueling represents and warrants that its Articles of Incorporation and Bylaws,
      certified on September 26, 2002 were not amended on or subsequent to their
      aforesaid certification date, other than the July 23, 2003 amendment to Articles
      of Incorporation increasing the number of authorized shares of common stock
      from
      20,000,000 to 50,000,000 shares, (b) Services represents and warrants that
      its
      Certificate of Incorporation and Bylaws, certified on February 18, 2005 were
      not
      amended on or subsequent to their aforesaid certification date, and (c) H &
W represents and warrants that its Articles of Incorporation and Bylaws,
      certified on October 1, 2005 were not amended on nor subsequent to their
      aforesaid certification date.

     

    9. Borrower
      acknowledges and confirms that all Collateral furnished in connection with
      the
      Agreement, except patents, continue to secure the Obligations and indebtedness
      thereunder, as hereby modified.

     

    10. Borrower
      and Obligor each hereby release and forever discharge Lender and each and every
      one of its directors, officers, employees, representatives, legal counsel,
      agents, parents, subsidiaries and affiliates, and persons employed or engaged
      by
      them, whether past or present (hereinafter collectively referred to as the
      "Lender Releasees"), of and from all actions, agreements, damages, judgments,
      claims, counterclaims, and demands whatsoever, liquidated or unliquidated,
      contingent or fixed, determined or undetermined, at law or in equity, which
      Borrower or Obligor, had, now has, or may have against the Lender Releasees,
      or
      any of them, for, upon or by reason of any matter, cause or thing whatsoever
      to
      the date of this Seventh Amendment, whether arising out of, related to or
      pertaining to the Obligations, the Financing Agreements, or otherwise,
      including, without limitation, the negotiation, closing, administration, and
      funding of the Obligations or the Financing Agreements. Borrower and Obligor
      each acknowledges that this provision is a material inducement for Lender
      entering into this Seventh Amendment and this provision shall survive payment
      in
      full of all Obligations and termination of all Financing
      Agreements.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    11. Borrower
      shall pay all out-of-pocket expenses incurred by Lender in connection with
      the
      preparation for and closing of the transaction contemplated under this Seventh
      Amendment, including, without limitation, the fees and expenses of special
      counsel for Lender. In addition, Borrower shall pay any and all taxes (together
      with interest and penalties, if any, applicable thereto) and fees, including,
      without limitation, documentary stamp taxes, now or hereafter required in
      connection with the execution and delivery of the Agreement, as hereby amended,
      and all related documents, instruments and agreements.

     

    12. Except
      as
      expressly modified herein, all terms and provisions of the Agreement, and all
      other documents, instruments and agreements executed and/or delivered in
      connection with the Agreement, shall remain unchanged and in full force and
      effect; provided,
      however,
      in the
      event of any inconsistency, incongruity or conflict between the terms of the
      Agreement and the terms of this Seventh Amendment, the terms of this Seventh
      Amendment shall govern and control. No consent of Lender hereunder shall operate
      as a waiver or continuing consent with respect to any instance or event other
      than those specified herein. Neither this Seventh Amendment nor
      any
      earlier waiver or amendment of the Agreement will constitute a novation or
      have
      the effect of discharging any liability or obligation evidenced by the Agreement
      or any related document. This Seventh Amendment shall not be deemed to prejudice
      any rights or remedies which Lender may now have or may have in the future
      under
      or in connection with the Agreement or the Financing Agreements or any of the
      instruments or agreements referred to therein, as the same may be amended,
      restated or otherwise modified. This Seventh Amendment is part of the Agreement
      and constitutes a Financing Agreement thereunder.

     

    13. All
      covenants, agreements, representations and warranties contained herein shall
      be
      binding upon and inure to the benefit of the parties hereto, their respective
      successors and assigns, except that Borrower shall not have the right to assign
      its rights hereunder or any interest herein without the prior written consent
      of
      Lender.

     

    14. This
      Seventh Amendment may be executed in any number of counterparts and by different
      parties hereto in separate counterparts, each of which, when so executed, shall
      be deemed to be an original and shall be binding upon all parties, their
      successors and assigns, and all of which taken together shall constitute one
      and
      the same agreement. 

     

    15. This
      Seventh Amendment shall be governed by, and construed and interpreted in
      accordance with, the laws of the State of Florida, without giving effect to
      its
      conflict of law principles.

     

    16. LENDER,
      BORROWER AND OBLIGOR EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
      ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
      HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS SEVENTH AMENDMENT
      OR
      THE AGREEMENT AND ANY AGREEMENT, DOCUMENT OR INSTRUMENT EXECUTED IN CONJUNCTION
      HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
      ORAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO. THIS PROVISION IS A MATERIAL
      INDUCEMENT FOR LENDER ENTERING INTO THIS SEVENTH AMENDMENT.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      [EXECUTION]

    

     

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Seventh Amendment the
      day
      and year first above written.

     

    
      	 	 	 
	 	BORROWER:
	 	 
	 	STREICHER MOBILE FUELING, INC., a Florida
              corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              President and Chief Executive Officer

    

     

    
      	 	 	 
	 	SMF
              SERVICES,
              INC., a Delaware corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              President and Chief Executive Officer

    

     

    
      	 	 	 
	 	H
&
W
              PETROLEUM COMPANY, INC., a Texas corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              Chief Executive Officer

    
      	 	 	 
	 	LENDER:
	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,
              SUCCESSOR
              BY MERGER TO CONGRESS FINANCIAL CORPORATION (FLORIDA)
	 
 	 
 	 
 
	 	By:  	/s/ Pat
              Cloninger
	 	
              
Name:
              Pat Cloninger
	 	Title:
              Vice President

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

    
      [EXECUTION]

    

    
 

    JOINDER

    

    The
      undersigned: (1) acknowledges and confirms that Lender's loans, advances
      and credit to Borrower have been, are and will continue to be of direct economic
      benefit to the undersigned, (2) acknowledges that it has previously waived
      any right to consent to the foregoing or any future amendment to the Agreement
      but, nevertheless, consents to all terms and provisions of the Seventh Amendment
      which are applicable to it, and agrees to be bound by and comply with such
      terms
      and provisions, and (3) acknowledges and confirms that its guarantee in
      favor of Lender executed in connection with the Agreement is valid and binding
      and remains in full force and effect in accordance with its terms (without
      defense, setoff or counterclaim against enforcement thereof), which include,
      without limitation, its guarantee in connection with the Agreement, as modified
      by the Seventh Amendment.

     

    
      	 	 	 
	 	GUARANTOR:
	 	 
	 	STREICHER REALTY, INC., a Florida
              corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              President and Chief Executive OfficerUnassociated Document

    EMPLOYMENT
      AGREEMENT

     

    This
      AGREEMENT (the “Agreement”)
      is
      made this 28th
      day of
      September, 2006, by and between COUGAR BIOTECHNOLOGY, INC., a Delaware
      corporation with principal executive offices at 10990 Wilshire Boulevard, Suite
      1200, Los Angeles, CA 90024 (the “Company”),
      and
      ALAN H. AUERBACH (the “Executive”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Company currently employs Executive as its President and Chief Executive
      Officer of the Company; and

     

    WHEREAS,
      the Company desires to continue employing Executive, and Executive desires
      to
      continuing serving the Company, as its President and Chief Executive Officer,
      upon the terms and subject to the conditions contained in this
      Agreement;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements herein
      contained, the parties hereto hereby agree as follows:

     

    1. Employment.
      The
      Company agrees to employ the Executive, and the Executive agrees to be employed
      by the Company, upon the terms and subject to the conditions of this
      Agreement.

     

    2. Term.
      The
      employment of the Executive by the Company as provided in Section 1 shall be
      for
      a period of one year commencing on the date hereof, unless sooner terminated
      in
      accordance with the provisions of Section 9 below (the “Term”);
      provided, however, that the Term shall be extended automatically for additional
      one-year periods unless one party shall advise the other in writing at least
      60
      days before the initial expiration of the Term or an anniversary date thereof
      that this Agreement shall no longer be so extended. 

     

    3. Duties;
      Best Efforts; Place of Performance.

     

    (a) The
      Executive shall serve as President and Chief Executive Officer of the Company
      and shall perform, subject to the direction of the Board of Directors of the
      Company, such duties as are customarily performed by the President and Chief
      Executive Officer. The Executive shall also have such other powers and duties
      as
      may be from time to time directed by the Board of Directors of the Company,
      provided that the nature of the Executive’s powers and duties so prescribed
      shall not be inconsistent with the Executive’s position and duties
      hereunder.

     

    (b) The
      Executive shall devote substantially all of his business time, attention and
      energies to the business and affairs of the Company and
      shall
      use his best efforts to advance the best interests of the Company and shall
      not
      during the Term be actively engaged in any other business activity, whether
      or
      not such business activity is pursued for gain, profit or other pecuniary
      advantage, that will interfere with the performance by the Executive of his
      duties hereunder or the Executive’s availability to perform such duties or that
      will adversely affect, or negatively reflect upon, the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4. Directorship.
      The
      Company shall use its best efforts to cause the Executive to be elected as
      a
      member of its Board of Directors throughout the Term and shall include him
      in
      the management slate for election as a director at every stockholders meeting
      during the Term at which his term as a director would otherwise expire. The
      Executive agrees to accept election, and to serve during the Term, as director
      of the Company, without any compensation therefor other than as specified in
      this Agreement.

     

    5. Compensation.
      As full
      compensation for the performance by the Executive of his duties under this
      Agreement, the Company shall pay the Executive as follows:

     

    (a) Base
      Salary.
      The
      Company shall pay the Executive a base salary (the “Base
      Salary”)
      at a
      rate of $300,000 per annum, payable in equal semi-monthly installments during
      the Term, or otherwise in accordance with the Company’s regular payroll
      practices in effect from time to time; provided,
      however,
      that
      notwithstanding the foregoing, the Base
      Salary shall be retroactive to May 16, 2006. The
      Board
      of Directors of the Company shall annually review the Base Salary to determine
      whether an increase in the amount thereof is warranted. 

     

    (b) Discretionary
      Bonus.
      At the
      sole discretion of the Board of Directors of the Company, the Executive shall
      be
      eligible to receive an annual discretionary bonus (the “Discretionary
      Bonus”)
      in an
      amount up to $50,000, based upon his performance on behalf of the Company during
      the prior year. The Discretionary Bonus shall be payable either as a lump-sum
      payment or in installments as determined by the Board of Directors of the
      Company in its sole discretion. In addition, the Board of Directors of the
      Company shall annually review the Discretionary Bonus to determine whether
      an
      increase in the amount thereof is warranted.

     

    (c) Performance
      Bonus.
      The
      Company shall pay the Executive one-time milestone-based bonus payments (each
      a
“Milestone
      Bonus”
and
      collectively, the “Milestone
      Bonuses”),
      as
      follows:

     

    
      	 	
              (i)

            	
              One
                Hundred Thousand Dollars ($100,000) upon such time as the Market
                Capitalization (as defined below) is at least $150 million.
                

            

    

     

    
      	 	
              (ii)

            	
              Two
                Hundred Fifty Thousand Dollars ($250,000) upon such time as the Market
                Capitalization is at least $250
                million.

            

    

     

    
      	 	
              (iii)

            	
              One
                Million Dollars ($1,000,000) upon such time as the Market Capitalization
                is at least $500 million.

            

    

     

    
      	 	
              (iv)

            	
              Two
                Million Dollars ($2,000,000) upon such time as the Market Capitalization
                is at least $1 billion.

            

    

     

    “Market
      Capitalization”
means
      the aggregate value of the Company’s issued and outstanding capital stock, as
      determined by multiplying the closing sale price of the Company’s common stock
      as reported on the OTC Bulletin Board or such other exchange or automated
      quotation system as the common stock is then listed or quoted by the total
      number of issued and outstanding shares of the Company’s capital stock on a
      fully-diluted basis (i.e., assuming the issuance of all shares issuable upon
      the
      exercise of outstanding options, warrants and other convertible securities);
      provided,
      however,
      that in
      the event the Company has outstanding a class or series of capital stock that
      is
      convertible into common stock, the number of issued and outstanding shares
      of
      such convertible class or series of stock shall be deemed to be the number
      of
      shares of common stock issuable upon conversion thereof. Notwithstanding
      anything to the contrary contained in this Section 5(c), Executive shall be
      deemed to have earned the respective Milestone Bonuses only when the Market
      Capitalization amount applicable to each Milestone Bonus is either (A)
      maintained for a period of at least twenty (20) consecutive business days,
      or
      (B) averages such amount over a period of thirty (30) consecutive business
      days.

     

    
      
         

      

      
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    (d) Withholding.
      The
      Company shall withhold all applicable federal, state and local taxes and social
      security and such other amounts as may be required by law from all amounts
      payable to the Executive under this Section 5.

     

    (e) Stock
      Option Grant.
      The
      Company shall grant the Executive a stock option to purchase 336,139 shares
      of
      the Company’s common stock, par value $0.0001 per share (the “Common
      Stock”)
      at an
      exercise price of $4.50 per share (the “Option”).
      The
      Option
      shall be governed by the Company’s 2003 Stock Option Plan (the “Plan”).
      For
      so long as the Executive is an employee of the Company, the Option shall vest,
      if at all, in four (4) equal and annual installments beginning on May 16, 2007
      and each anniversary thereafter until fully vested. Upon termination of
      Executive’s employment with the Company, for any reason or no reason,
      Executive’s rights to any portion of the Option that has not yet vested as of
      the date of such termination shall not vest and all of Executive’s rights to
      such unvested portion of the Option shall terminate. In the event of a Change
      of
      Control (as such term is defined in the Plan), the entire Option shall vest
      and
      become immediately exercisable. The Option shall have a term of 10 years from
      date of grant and the vested Options shall remain exercisable for 90 days from
      the date that the Executive is no longer an employee of the Company. In
      connection with such grant, the Executive shall enter into the Company’s
      standard stock option agreement which will incorporate the foregoing vesting
      schedule and other terms described in this Section 5(e).
      The
      Board shall review the aggregate number of stock options granted to the
      Executive not less frequently than annually in order to determine whether an
      increase in the number thereof is warranted.

     

    (f) Expenses.
      The
      Company shall reimburse the Executive for all normal, usual and necessary
      expenses incurred by the Executive in furtherance of the business and affairs
      of
      the Company, including reasonable travel and entertainment, upon timely receipt
      by the Company of appropriate vouchers or other proof of the Executive’s
      expenditures and otherwise in accordance with any expense reimbursement policy
      as may from time to time be adopted by the Company.

     

    (g) Other
      Benefits.
      The
      Executive shall be entitled to all rights and benefits for which he shall be
      eligible under any benefit or other plans (including, without limitation,
      dental, medical, medical reimbursement and hospital plans, pension plans,
      employee stock purchase plans, profit sharing plans, bonus plans and other
      so-called “fringe” benefits) as the Company shall make available to its senior
      executives from time to time.

     

    (h) Vacation.
      Executive shall, during the Term, be entitled to a vacation of four (4) weeks
      per annum,
      in
      addition to holidays observed by the Company;
      provided,
      however,
      that
Executive
      shall not be entitled to accrue more than six (6) weeks of accrued vacation
      time
      at any given time. In the event that Executive has accrued the maximum of six
      (6) weeks accrued and unused vacation time, Executive shall cease accruing
      further vacation time until such time as Executive’s accrued and unused vacation
      time is less than such maximum amount. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    6. Confidential
      Information and Inventions.

     

    (a) The
      Executive recognizes and acknowledges that in the course of his duties he is
      likely to receive confidential or proprietary information owned by the Company,
      its affiliates or third parties with whom the Company or any such affiliates
      has
      an obligation of confidentiality. Accordingly, during and after the Term, the
      Executive agrees to keep confidential and not disclose or make accessible to
      any
      other person or use for any other purpose other than in connection with the
      fulfillment of his duties under this Agreement, any Confidential and Proprietary
      Information (as defined below) owned by, or received by or on behalf of, the
      Company or any of its affiliates. “Confidential
      and Proprietary Information”
shall
      include, but shall not be limited to, confidential or proprietary scientific
      or
      technical information, data, formulas and related concepts, business plans
      (both
      current and under development), client lists, promotion and marketing programs,
      trade secrets, or any other confidential or proprietary business information
      relating to development programs, costs, revenues, marketing, investments,
      sales
      activities, promotions, credit and financial data, manufacturing processes,
      financing methods, plans or the business and affairs of the Company or of any
      affiliate or client of the Company. The Executive expressly acknowledges the
      trade secret status of the Confidential and Proprietary Information and that
      the
      Confidential and Proprietary Information constitutes a protectable business
      interest of the Company. The Executive agrees: (i) not to use any such
      Confidential and Proprietary Information for himself or others; and (ii) not
      to
      take any Company material or reproductions (including but not limited to
      writings, correspondence, notes, drafts, records, invoices, technical and
      business policies, computer programs or disks) thereof from the Company’s
      offices at any time during his employment by the Company, except as required
      in
      the execution of the Executive’s duties to the Company. The Executive agrees to
      return immediately all Company material and reproductions (including but not
      limited, to writings, correspondence, notes, drafts, records, invoices,
      technical and business policies, computer programs or disks) thereof in his
      possession to the Company upon request and in any event immediately upon
      termination of employment.

     

    (b) Except
      with prior written authorization by the Company, the Executive agrees not to
      disclose or publish any of the Confidential and Proprietary Information, or
      any
      confidential, scientific, technical or business information of any other party
      to whom the Company or any of its affiliates owes an obligation of confidence,
      at any time during or after his employment with the Company.

     

    (c) The
      Executive agrees that all inventions, discoveries, improvements and patentable
      or copyrightable works (“Inventions”)
      initiated, conceived or made by him, either alone or in conjunction with others,
      during the Term
      shall be
      the sole property of the Company to the maximum extent permitted by applicable
      law and, to the extent permitted by law, shall be “works made for hire” as that
      term is defined in the United States Copyright Act (17 U.S.C.A., Section 101).
      The Company shall be the sole owner of all patents, copyrights, trade secret
      rights, and other intellectual property or other rights in connection therewith.
      The Executive hereby assigns to the Company all right, title and interest he
      may
      have or acquire in all such Inventions; provided, however, that the Board of
      Directors of the Company may in its sole discretion agree to waive the Company’s
      rights pursuant to this Section 6(c) with respect to any Invention that is
      not
      directly or indirectly related to the Company’s business. The Executive further
      agrees to assist the Company in every proper way (but at the Company’s expense)
      to obtain and from time to time enforce patents, copyrights or other rights
      on
      such Inventions in any and all countries, and to that end the Executive will
      execute all documents necessary:

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (i) to
      apply
      for, obtain and vest in the name of the Company alone (unless the Company
      otherwise directs) letters patent, copyrights or other analogous protection
      in
      any country throughout the world and when so obtained or vested to renew and
      restore the same; and

     

    (ii) to
      defend
      any opposition proceedings in respect of such applications and any opposition
      proceedings or petitions or applications for revocation of such letters patent,
      copyright or other analogous protection.

     

    (d) The
      Executive acknowledges that while performing the services under this Agreement
      the Executive may locate, identify and/or evaluate patented or patentable
      inventions having commercial potential in the fields of pharmacy,
      pharmaceutical, biotechnology, healthcare, technology and other fields which
      may
      be of potential interest to the Company or one of its affiliates (the
“Third
      Party Inventions”).
      The
      Executive understands, acknowledges and agrees that all rights to, interests
      in
      or opportunities regarding, all Third-Party Inventions identified by the
      Company, any of its affiliates or either of the foregoing persons’ officers,
      directors, employees (including the Executive), agents or consultants during
      the
      Employment Term shall be and remain the sole and exclusive property of the
      Company or such affiliate and the Executive shall have no rights whatsoever
      to
      such Third-Party Inventions and will not pursue for himself or for others any
      transaction relating to the Third-Party Inventions which is not on behalf of
      the
      Company.

     

    (e) The
      provisions of this Section 6 shall survive any termination of this
      Agreement.

     

    7. Non-Competition,
      Non-Solicitation and Non-Disparagement.

     

    (a) The
      Executive understands and recognizes that his services to the Company are
      special and unique and that in the course of performing such services the
      Executive will have access to and knowledge of Confidential and Proprietary
      Information (as defined in Section 6) and the Executive agrees that, during
      the
      Term and for a period of eighteen
      (18)
      months
      thereafter, he shall not in any manner, directly or indirectly, on behalf of
      himself or any person, firm, partnership, joint venture, corporation or other
      business entity (“Person”),
      enter
      into or engage in any business which is engaged in any business directly or
      indirectly competitive with the business of the Company, either as an individual
      for his own account, or as a partner, joint venturer, owner, executive,
      employee, independent contractor, principal, agent, consultant, salesperson,
      officer, director or shareholder of a Person in a business competitive with
      the
      Company within the geographic area of the Company’s business, which is deemed by
      the parties hereto to be worldwide. The Executive acknowledges that, due to
      the
      unique nature of the Company’s business, the loss of any of its clients or
      business flow or the improper use of its Confidential and Proprietary
      Information could create significant instability and cause substantial damage
      to
      the Company and its affiliates and therefore the Company has a strong legitimate
      business interest in protecting the continuity of its business interests and
      the
      restriction herein agreed to by the Executive narrowly and fairly serves such
      an
      important and critical business interest of the Company. For purposes of this
      Agreement, the Company shall be deemed to be actively engaged on the date hereof
      in the development of novel application drug delivery systems for presently
      marketed prescription and over-the-counter drugs and providing consulting
      services in connection therewith, and in the future in any other business in
      which it actually devotes substantive resources to study, develop or pursue.
      Notwithstanding the foregoing, nothing contained in this Section 7(a) shall
      be
      deemed to prohibit the Executive from (i) acquiring or holding, solely for
      investment, publicly traded securities of any corporation, some or all of the
      activities of which are competitive with the business of the Company so long
      as
      such securities do not, in the aggregate, constitute more than three percent
      (3%) of any class or series of outstanding securities of such
      corporation.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b) During
      the Term and for a period of 18 months thereafter, the Executive shall not,
      directly or indirectly, without the prior written consent of the
      Company:

     

    (i) solicit
      or induce any employee of the Company or any of its affiliates to leave the
      employ of the Company or any such affiliate; or hire for any purpose any
      employee of the Company or any affiliate or any employee who has left the
      employment of the Company or any affiliate within one year of the termination
      of
      such employee’s employment with the Company or any such affiliate or at any time
      in violation of such employee’s non-competition agreement with the Company or
      any such affiliate; or

     

    (ii) solicit
      or accept employment or be retained by any Person who, at any time during the
      term of this Agreement, was an agent, client or customer of the Company or
      any
      of its affiliates where his position will be related to the business of the
      Company or any such affiliate; or

     

    (iii) solicit
      or accept the business of any agent, client or customer of the Company or any
      of
      its affiliates with respect to products, services or investments similar to
      those provided or supplied by the Company or any of its affiliates.

     

    (c) The
      Executive agrees that both during the Term and at all times thereafter, he
      shall
      not directly or indirectly disparage, whether or not true, the name or
      reputation of the Company or any of its affiliates, including but not limited
      to, any officer, director, employee or shareholder of the Company or any of
      its
      affiliates.

     

    (d) In
      the
      event that the Executive breaches any provisions of Section 6 or this Section
      7
      or there is a threatened breach, then, in addition to any other rights which
      the
      Company may have, the Company shall (i) be entitled, without the posting of
      a
      bond or other security, to injunctive relief to enforce the restrictions
      contained in such Sections and (ii) have the right to require the Executive
      to
      account for and pay over to the Company all compensation, profits, monies,
      accruals, increments and other benefits (collectively “Benefits”)
      derived or received by the Executive as a result of any transaction constituting
      a breach of any of the provisions of Sections 6 or 7 and the Executive hereby
      agrees to account for and pay over such Benefits to the Company.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (e) Each
      of
      the rights and remedies enumerated in Section 7(d) shall be independent of
      the
      others and shall be in addition to and not in lieu of any other rights and
      remedies available to the Company at law or in equity. If any of the covenants
      contained in this Section 7, or any part of any of them, is hereafter construed
      or adjudicated to be invalid or unenforceable, the same shall not affect the
      remainder of the covenant or covenants or rights or remedies which shall be
      given full effect without regard to the invalid portions. If any of the
      covenants contained in this Section 7 is held to be invalid or unenforceable
      because of the duration of such provision or the area covered thereby, the
      parties agree that the court making such determination shall have the power
      to
      reduce the duration and/or area of such provision and in its reduced form such
      provision shall then be enforceable. No such holding of invalidity or
      unenforceability in one jurisdiction shall bar or in any way affect the
      Company’s right to the relief provided in this Section 7 or otherwise in the
      courts of any other state or jurisdiction within the geographical scope of
      such
      covenants as to breaches of such covenants in such other respective states
      or
      jurisdictions, such covenants being, for this purpose, severable into diverse
      and independent covenants.

     

    (f) In
      the
      event that an actual proceeding is brought in equity to enforce the provisions
      of Section 6 or this Section 7, the Executive shall not urge as a defense that
      there is an adequate remedy at law nor shall the Company be prevented from
      seeking any other remedies which may be available. The Executive agrees that
      he
      shall not raise in any proceeding brought to enforce the provisions of Section
      6
      or this Section 7 that the covenants contained in such Sections limit his
      ability to earn a living.

     

    (g) The
      provisions of this Section 7 shall survive any termination of this
      Agreement.

     

    8. Representations
      and Warranties by the Executive.
      The
      Executive hereby represents and warrants to the Company as follows:

     

    (a) Neither
      the execution or delivery of this Agreement nor the performance by the Executive
      of his duties and other obligations hereunder violate or will violate any
      statute, law, determination or award, or conflict with or constitute a default
      or breach of any covenant or obligation under (whether immediately, upon the
      giving of notice or lapse of time or both) any prior employment agreement,
      contract, or other instrument to which the Executive is a party or by which
      he
      is bound.

     

    (b) The
      Executive has the full right, power and legal capacity to enter and deliver
      this
      Agreement and to perform his duties and other obligations hereunder. This
      Agreement constitutes the legal, valid and binding obligation of the Executive
      enforceable against him in accordance with its terms. No approvals or consents
      of any persons or entities are required for the Executive to execute and deliver
      this Agreement or perform his duties and other obligations
      hereunder.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    9. Termination.
      The Executive’s employment hereunder shall be terminated upon the Executive’s
      death and may be terminated as follows:

     

    (a) The
      Executive’s employment hereunder may be terminated by the Board of Directors of
      the Company for Cause. Any of the following actions by the Executive shall
      constitute “Cause”:

     

    (i) The
      willful failure, disregard or refusal by the Executive to perform his duties
      hereunder;

     

    (ii) Any
      willful, intentional or grossly negligent act by the Executive having the effect
      of injuring, in a material way (whether financial or otherwise and as determined
      in good-faith by a majority of the Board of Directors of the Company), the
      business or reputation of the Company or any of its affiliates, including but
      not limited to, any officer, director, executive or shareholder of the Company
      or any of its affiliates; 

     

    (iii) Willful
      misconduct by the Executive
      in
      respect of the duties or obligations of the Executive under this
      Agreement,
      including, without limitation, insubordination with respect to directions
      received by the Executive from the Board of Directors of the Company;

     

    (iv) The
      Executive’s indictment of any felony or a misdemeanor involving moral turpitude
      (including entry of a nolo contendere plea);

     

    (v) The
      determination by the Company, after a reasonable and good-faith investigation
      by
      the Company following a written allegation by another employee of the Company,
      that the Executive engaged in some form of harassment prohibited
      by law
      (including, without limitation, age, sex or race discrimination),
      unless
      the Executive’s actions were specifically directed by the Board of Directors of
      the Company;

     

    (vi) Any
      misappropriation or embezzlement of the property of the Company or its
      affiliates (whether or not a misdemeanor or felony);

     

    (vii) Breach
      by
      the Executive of any of the provisions of Sections
      6, 7
      or
8
      of this
      Agreement; and

     

    (viii) Breach
      by
      the Executive of any provision of this Agreement other than those contained
      in
Sections
      6, 7
      or
8
      which is
      not cured by the Executive within thirty (30) days after notice thereof is
      given
      to the Executive by the Company.

     

    (b) The
      Executive’s employment hereunder may be terminated by the Board of Directors of
      the Company due to the Executive’s Disability. For purposes of this Agreement, a
      termination for “Disability”
shall
      occur (i) when the Board of Directors of the Company has provided a written
      termination notice to the Executive supported by a written statement from a
      reputable independent physician to the effect that the Executive shall have
      become so physically or mentally incapacitated as to be unable to resume, within
      the ensuing twelve (12) months, his employment hereunder by reason of physical
      or mental illness or injury, or (ii) upon rendering of a written termination
      notice by the Board of Directors of the Company after the Executive has been
      unable to substantially perform his duties hereunder for 90 or more consecutive
      days, or more than 120 days in any consecutive twelve month period, by reason
      of
      any physical or mental illness or injury. For purposes of this Section 9(b),
      the
      Executive agrees to make himself available and to cooperate in any reasonable
      examination by a reputable independent physician retained by the
      Company.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (c) The
      Executive’s employment hereunder may be terminated by the Board of Directors of
      the Company (or its successor) upon the occurrence of a Change of Control.
      For
      purposes of this Agreement, “Change
      of Control”
means
      (i) the acquisition, directly or indirectly, following the date hereof by any
      person (as such term is defined in Section 13(d) and 14(d)(2) of the Securities
      Exchange Act of 1934, as amended), in one transaction or a series of related
      transactions, of securities of the Company representing in excess of fifty
      percent (50%) or more of the combined voting power of the Company’s then
      outstanding securities if such person or his or its affiliate(s) do not own
      in
      excess of 50% of such voting power on the date of this Agreement, or (ii) the
      future disposition by the Company (whether direct or indirect, by sale of assets
      or stock, merger, consolidation or otherwise) of all or substantially all of
      its
      business and/or assets in one transaction or series of related transactions
      (other than a merger effected exclusively for the purpose of changing the
      domicile of the Company).

     

    10. Compensation
      upon Termination.

     

    (a) If
      the
      Executive’s employment is terminated as a result of his death or Disability, the
      Company shall pay to the Executive or to the Executive’s estate, as applicable,
his
      Base
      Salary and any earned and unpaid Discretionary or Milestone Bonus and expense
      reimbursement amounts through the date of his Death or Disability. 

     

    (b) If
      the
      Executive’s employment is terminated by the Board of Directors of the Company
      for Cause, then the Company shall pay to the Executive his Base Salary through
      the date of his termination and the Executive shall have no further entitlement
      to any other compensation or benefits from the Company.

     

    (c) If
      the
      Executive’s employment is terminated by the Company (or its successor) upon the
      occurrence of a Change of Control, the Company (or its successor, as applicable)
      shall continue to pay to the Executive his Base Salary through the date of
      termination and for a period of one year following such termination.
      Notwithstanding anything to the contrary contained herein, in the event it
      is
      determined that any payment or other distribution by the Company to or for
      the
      benefit of Executive would constitute an “excess parachute provision” within the
      meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the
      “Code”),
      such
      payment or distribution shall be reduced as necessary to (1) avoid the
      imposition of any excise tax liability on Executive under Section 4999 of the
      Code and (2) allow the entire amount of such payment or distribution to be
      deductible by the Company.

     

    (d) If
      the
      Executive’s employment is terminated by the Company other than as a result of
      the Executive’s death or Disability and other than for reasons specified in
      Sections 10(b) or (c), then the Company shall continue to pay to the Executive
      his Base Salary for a period of one year following such termination, and (ii)
      pay the Executive any earned and unpaid Discretionary or Milestone Bonus and
      expense reimbursement amounts owed through the date of termination. The
      Company’s obligation under clauses (i) and (ii) in the preceding sentence shall
      be subject to offset by any amounts otherwise received by the Executive from
      any
      employment during the one year period following the termination of his
      employment.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (e) This
      Section 10 sets forth the only obligations of the Company with respect to the
      termination of the Executive’s employment with the Company, and the Executive
      acknowledges that, upon the termination of his employment, he shall not be
      entitled to any payments or benefits which are not explicitly provided in
      Section 10. Further, notwithstanding anything to the contrary contained in
      this
      Section 10, the Company shall have no obligation to pay, and Executive shall
      have no obligation to receive, any compensation, benefits or other consideration
      provided for in this Section 10 following termination of Executive’s employment
      unless Executive executes a separate agreement releasing the Company from any
      and all liability in connection with the termination of Executive’s employment.

     

    (f) Upon
      termination of the Executive’s employment hereunder for any reason, the
      Executive shall be deemed to have resigned as director of the Company, effective
      as of the date of such termination.

     

    (g) The
      provisions of this Section 10 shall survive any termination of this
      Agreement.

     

    11. Miscellaneous.

     

    (a) This
      Agreement shall be governed by, and construed and interpreted in accordance
      with, the laws of the State of New York, without giving effect to its principles
      of conflicts of laws.

     

    (b) Any
      dispute arising out of, or relating to, this Agreement or the breach thereof
      (other than Sections 6 or 7 hereof), or regarding the interpretation thereof,
      shall be finally settled by arbitration conducted in New York City in accordance
      with the rules of the American Arbitration Association then in effect before
      a
      single arbitrator appointed in accordance with such rules. Judgment upon any
      award rendered therein may be entered and enforcement obtained thereon in any
      court having jurisdiction. The arbitrator shall have authority to grant any
      form
      of appropriate relief, whether legal or equitable in nature, including specific
      performance. For the purpose of any judicial proceeding to enforce such award
      or
      incidental to such arbitration or to compel arbitration and for purposes of
      Sections 6 and 7 hereof, the parties hereby submit to the non-exclusive
      jurisdiction of the Supreme Court of the State of New York, New York County,
      or
      the United States District Court for the Southern District of New York, and
      agree that service of process in such arbitration or court proceedings shall
      be
      satisfactorily made upon it if sent by registered mail addressed to it at the
      address referred to in paragraph (g) below. The
      costs
      of such arbitration shall be borne proportionate to the finding of fault as
      determined by the arbitrator. Judgment on the arbitration award may be entered
      by any court of competent jurisdiction.

     

    (c) This
      Agreement shall be binding upon and inure to the benefit of the parties hereto,
      and their respective heirs, legal representatives, successors and
      assigns.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (d) This
      Agreement, and the Executive’s rights and obligations hereunder, may not be
      assigned by the Executive. The Company may assign its rights, together with
      its
      obligations, hereunder in connection with any sale, transfer or other
      disposition of all or substantially all of its business or assets.

     

    (e) This
      Agreement cannot be amended orally, or by any course of conduct or dealing,
      but
      only by a written agreement signed by the parties hereto.

     

    (f) The
      failure of either party to insist upon the strict performance of any of the
      terms, conditions and provisions of this Agreement shall not be construed as
      a
      waiver or relinquishment of future compliance therewith, and such terms,
      conditions and provisions shall remain in full force and effect. No waiver
      of
      any term or condition of this Agreement on the part of either party shall be
      effective for any purpose whatsoever unless such waiver is in writing and signed
      by such party.

     

    (g) All
      notices, requests, consents and other communications, required or permitted
      to
      be given hereunder, shall be in writing and shall be delivered personally or
      by
      an overnight courier service or sent by registered or certified mail, postage
      prepaid, return receipt requested, to the parties at the addresses set forth
      on
      the first page of this Agreement, and shall be deemed given when so delivered
      personally or by overnight courier, or, if mailed, five days after the date
      of
      deposit in the United States mails. Either party may designate another address,
      for receipt of notices hereunder by giving notice to the other party in
      accordance with this paragraph (g).

     

    (h) This
      Agreement sets forth the entire agreement and understanding of the parties
      relating to the subject matter hereof, and supersedes all prior agreements,
      arrangements and understandings, written or oral, relating to the subject matter
      hereof, including without limitation, that certain Employment Agreement between
      the Company and Executive dated May 16, 2003. No representation, promise or
      inducement has been made by either party that is not embodied in this Agreement,
      and neither party shall be bound by or liable for any alleged representation,
      promise or inducement not so set forth.

     

    (i) As
      used
      in this Agreement, “affiliate” of a specified Person shall mean and include any
      Person controlling, controlled by or under common control with the specified
      Person.

     

    (j) The
      section headings contained herein are for reference purposes only and shall
      not
      in any way affect the meaning or interpretation of this Agreement.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (k) This
      Agreement may be executed in any number of counterparts, each of which shall
      constitute an original, but all of which together shall constitute one and
      the
      same instrument.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first above written.

     

    
      	 	 	 
	 	COUGAR
              BIOTECHNOLOGY, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Arie
              S.
              Belldegrun  
	 	
              
Name:
              Aries S. Belldegrun 
	 	Title: Director

    

    
      	 	 	 
	 	EXECUTIVE
	 
 	 
 	 
 
	 	By:  	/s/ Alan
              H.
              Auerbach
	 	
              
Name: Alan
              H. Auerbach

    

     

    
      
         

      

        12

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