Document:

Exhibit 10.4

 

Amendment
to Retention Agreement

 

THIS AGREEMENT (this “Agreement”) is made as of the 19th
day of August, 2005 (the “Effective Date”)
by and between MAXIM PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), and LARRY G. STAMBAUGH, an
individual (“Stambaugh”).

 

Background

 

A.                                   Stambaugh
is currently the Chairman, President and Chief Executive Officer of the
Company, and has served in these capacities since 1993.

 

B.                                     On
or about March 11, 2005, the Company and Stambaugh entered into a letter
agreement (the “Retention Agreement”)
providing for the potential payment of three separate bonus installments of
$225,000 each — the “Retention Bonus,” the “Transition Bonus” and the “Success
Bonus.”

 

C.                                     The
parties to this agreement have determined that it is in the best interests of
the Company and to its shareholders to modify the Retention Agreement as
follows:

 

Agreement

 

1.                                       The
Company and Stambaugh hereby acknowledge and agree that, effective on and after
the Effective Date, (i) Stambaugh shall have no entitlement to receive, or
to be considered for, all or any portion of the “Success Bonus” as provided in
the Retention Agreement, and (ii) the terms of the Retention Agreement are
hereby amended such that the potential $225,000 bonus attributable to the “Transition
Bonus” shall be deemed earned, due and payable upon the earlier of (y) March 31,
2006 if (but only if) Stambaugh has continuously been employed as a full-time
employee of the Company from the Effective Date through March 31, 2006, or
(z) the date, if ever, on which the Company terminates Stambaugh’s
employment other than for cause pursuant to Section 6.2 of the Employment
Agreement prior to March 31, 2006. 
In the event that Stambaugh has not been continuously employed by the
Company from the Effective Date through March 31, 2006 or has been
terminated by the Company with cause prior to March 31, 2006, Stambaugh
shall have no entitlement to, and the Company shall not be obligated to pay,
the $225,000 Transition Bonus (as amended pursuant to this Agreement). The
Retention Bonus remains unaffected by this Agreement.

 

2.                                       Stambaugh
hereby agrees that he shall make himself available at all times between the
Effective Date hereof and March 31, 2006 to serve on a full-time basis,
and to use his best efforts in serving, as the Company’s President and Chief
Executive Officer at his current annualized salary of $405,000 through September 30,
2005 and $450,000 thereafter and with his current bonus program
opportunities.  Stambaugh’s foregoing
agreement and commitment shall automatically terminate in the event that the
Company terminates Stambaugh’s employment with the Company other than for cause
pursuant to Section 6.2 of that certain Employment Agreement between
Stambaugh and the Company dated as of December 3, 2004, as amended by an
Amendment to Employment Agreement dated as of August 19, 2005, prior to March 31,
2006.

 

 

3.                                       Miscellaneous Provisions.

 

(a)                                  Construction.  The language of this Agreement has been
negotiated between the parties and shall be construed simply, according to its
plain meaning, and not strictly for or against either party regardless of the
source of draftsmanship.

 

(b)                                 Counterparts.  This Agreement may be executed in
counterparts, and each counterpart, once executed, shall have the efficacy of a
signed original.  True and correct copies
of signed counterparts may be used in place of originals for any purpose.  Signatures transmitted electronically or via
facsimile shall be deemed to be original signatures.

 

(c)                                  Attorneys’
Fees And Costs.  In the event of
future litigation in connection with or concerning the subject matter of this
Agreement or any breach of this Agreement, the prevailing party shall be
entitled to recover all costs and expenses incurred by that party, including
actual attorneys fees, expert and consultant fees, and costs in addition to any
other relief to which it may be entitled. 
The parties further agree that the prevailing party shall be entitled to
recover all costs, including actual attorney’s fees and costs, of collecting
any costs and expenses awarded pursuant to the prior provision.

 

(d)                                 Independent
Legal Advice.  The parties
acknowledge that they have been advised by their own independently selected
counsel and other advisors in connection with this Agreement and enter into
this Agreement solely on the basis of that advice and on the basis of their own
independent investigation of all of the facts, laws, and circumstances material
to this Agreement or any provision hereof and not in any manner or to any
degree based upon any statement or omission by any other party and/or their
counsel.

 

(e)                                  Authority
To Execute Agreement.  Each person
whose signature appears hereon represents, warrants and guarantees that he has
been duly authorized and has full authority to execute this Agreement on behalf
of the party on whose behalf this Agreement is executed.

 

(f)                                    Binding
Agreement.  This Agreement shall be
binding upon the parties and their successors in interest and assigns.

 

(g)                                 No
Modification.  No term of this Agreement
shall be modified, waived, or changed except by an instrument in writing signed
by both parties.

 

(h)                                 Severability.  If for any reason any clause or provision of
this Agreement should be held unenforceable, invalid or in violation of law by
any court or other tribunal, then the remaining clauses and provisions hereof
shall nevertheless remain in full force and effect.

 

2

 

BY
EXECUTING THIS AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES THAT IT OR HE HAS
READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ITS TERMS AND PROVISIONS.

 

IN WITNESS WHEREOF, the parties have entered
into and delivered this Agreement as of the Effective Date.

 

	
  MAXIM PHARMACEUTICALS, INC.

  	
  LARRY G. STAMBAUGH

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  ./s/ F. Duwaine
  Townsen

  	
   

  	
  By:

  	
  /s/ Larry G.
  Stambaugh

  	
   

  
	
   

  	
  F. Duwaine
  Townsen

  Lead Independent Director of

  the Board of Directors

  	
   

  	
  Larry G.
  Stambaugh

  
						

 

3SUBSCRIPTION AGREEMENT

                        RICKS CABARET INTERNATIONAL, INC.

Ricks Cabaret International, Inc.
10959 Cutten Road
Houston, Texas 77066

     The  undersigned,  Jay Teitelbaum (the "Subscriber") understands that Ricks
Cabaret International, Inc., a Texas Corporation (the "Company") is offering for
sale  to  the  undersigned  150,000  shares  of Common Stock (Common Stock) at a
purchase  price  of  $2.50  per  share,  for a total aggregate purchase price of
$375,000.00.  The  Subscriber  acknowledges and understands that the offering of
the  Common  Stock  (the  "Offering")  is being made without registration of the
Common  Stock  under  the Securities Act of 1933, as amended (the "Act"), or any
securities  "blue  sky"  or  other  similar laws of any state ("State Securities
Laws").

1.   SUBSCRIPTION.  Subject  to  the terms and conditions hereof, the Subscriber
     hereby subscribes for and agrees to purchase 150,000 shares of Common Stock
     for  the  aggregate  purchase  price of $375,000.00 upon acceptance of this
     Subscription  Agreement.

2.   PAYMENT FOR THE COMMON STOCK. The undersigned encloses herewith $375,000.00
     required  to  purchase  the  Common Stock subscribed for hereunder. If this
     subscription  is  not accepted by the Company for any reason, all documents
     will  be  returned  to  the  Subscriber.

3.   REPRESENTATIONS  AND  WARRANTIES  OF  THE SUBSCRIBER. The Subscriber hereby
     represents  and warrants to and covenants with the Company, as well as each
     officer,  director  and  agent  of  the  Company  as  follows:

          (a)  General
               -------

               (i)    The  Subscriber  has all requisite authority to enter into
          this  Subscription  Agreement  and  to  perform  all  the  obligations
          required  to  be  performed  by  the  Subscriber  hereunder.

               (ii)   The  Subscriber  is  the sole party in interest and is not
          acquiring  the  Common  Stock  as  an agent or otherwise for any other
          person.  The  Subscriber is a resident of the state set forth opposite
          its  name  on  the  signature  page  hereto  and (a) if a corporation,
          partnership,  trust or other form of business organization, it has its
          principal  office  within  such state; (b) if an individual, he or she
          has  his  or  her  principal  residence  in  such  state; and (c) if a
          corporation, partnership, trust or other form of business organization
          which  was  organized for the specific purpose or acquiring the Common
          Stock,  all  of  the  beneficial  owners  are residents of such state.

               (iii)   The  Subscriber recognizes that the total amount of funds
          tendered  to  purchase  the  Common Stock is placed at the risk of the
          business  and  may  be

                                        1
<PAGE>
          completely lost. The purchase of the Common Stock of the Company as an
          investment  involves  extreme  risk.

               (iv)   The  Subscriber  realizes  that  the  Common  Stock cannot
          readily  be  sold  as  the  shares  of  Common  Stock  are  restricted
          securities,  that  it  may  not  be possible to sell or dispose of the
          Common  Stock  and  therefore  the  Common Stock must not be purchased
          unless the Subscriber has liquid assets sufficient to assure that such
          purchase will cause no undue financial difficulties and the Subscriber
          can  provide  for  current  needs  and  personal  contingencies.

               (v)   The  Subscriber confirms and represents that he is able (a)
          to  bear  the  economic  risk  of  his  investment,  (b)  to  hold the
          securities  for  an  indefinite  period  of  time, and (c) to afford a
          complete  loss  of his investment. The Subscriber also represents that
          he  has  (x)  adequate  means  of  providing for his current needs and
          personal  contingencies,  and  (y)  has  no need for liquidity in this
          particular  investment.

               (vi)   The  Subscriber  has  not  become aware of the offering of
          Common  Stock  of  the  Company by any form of general solicitation or
          advertising,  including,  but not limited to advertisements, articles,
          notices  or  other communications published in any newspaper, magazine
          or  other  similar  media or broadcast over television or radio or any
          seminar  or  meeting  where  those individuals that have attended have
          been  invited  by any such or similar means of general solicitation or
          advertising.

          (b)  Information Concerning the Company.
               ----------------------------------

               (i)   The  Subscriber  acknowledges  that  he  has  received  all
          current information about the Company including the Company's (A) Form
          10-KSB  for  the fiscal year ended September 30, 2004, (B) Form 10-QSB
          for the Company's quarter ended December 31, 2004; and (C) Form 8-K of
          the  Company  filed  September  17,  2004 and January 24, 2005 ("Filed
          Documents").

               (ii)   The  Subscriber  or  his  representative  is familiar with
          the  business  and  financial  condition,  properties,  operations and
          prospects  of  the  Company,  and,  at  a reasonable time prior to the
          execution  of  this  Subscription  Agreement,  that  he  and  his
          representative  have been afforded the opportunity to ask questions of
          and  receive  satisfactory  answers  from  the  Company's officers and
          directors, or other persons acting on the Company's behalf, concerning
          the  business  and  financial  condition,  properties,  operations and
          prospects  of  the  Company and concerning the terms and conditions of
          the offering of the Common Stock and has asked such questions as he or
          his  representative  desires  to  ask and all such questions have been
          answered  to  the  full  satisfaction  of  the  Subscriber.

               (iii)   The  Subscriber  has  been furnished, has carefully read,
          and  has  relied  solely  (except for information obtained pursuant to
          (iv)  below,  on the information contained in the Filed Documents, and
          Subscriber  has  not  received  any  other  offering  literature  or
          prospectus,  and  no  verbal  or written representations or warranties
          have  been  made  to  Subscriber  by  the Company, or its employees or
          agents, other than the representations of the Company set forth herein
          and  in  the  Filed  Documents.

                                        2
<PAGE>
               (iv)   The Subscriber has had an unrestricted opportunity to: (i)
          obtain additional information concerning the offering of Common Stocks
          (the  "Offering"), the Common Stock, the Company and any other matters
          relating directly or indirectly to Subscriber's purchase of the Common
          Stock; and (ii) ask questions of, and receive answers from the Company
          concerning the terms and conditions of the Offering and to obtain such
          additional  information  as  may  have  been  necessary  to verify the
          accuracy  of  the  information  contained  in  the  Filed  Documents.

               (v)   The  Subscriber  understands  that,  unless  the Subscriber
          notifies  the  Company  in  writing  to  the  contrary,  all  the
          representations  and  warranties  contained  in  this  Subscription
          Agreement will be deemed to have been reaffirmed and confirmed, taking
          into  account  all  information  received  by  the  Subscriber.

               (vi)   The Subscriber understands that the purchase of the Common
          Stock  involves  various  risks,  including, but not limited to, those
          outlined  in  this  Subscription  Agreement.

               (vii)   The  Subscriber  acknowledges  that no representations or
          warranties  have  been made to the Subscriber by the Company as to the
          tax  consequences of this investment, or as to profits, losses or cash
          flow  which  may  be  received  or  sustained  as  a  result  of  this
          investment.

               (viii)   All  documents,  records  and  books  pertaining  to  a
          proposed  investment  in  the Common Stock which the Subscriber or his
          representative  has  requested  have  been  made  available  to  the
          Subscriber.

               (ix)  The  Subscriber  or  his  representative  has been provided
          access  to all information requested in evaluating his purchase of the
          Common  Stock.

     (c)  Status of the Subscriber
          ------------------------

               (i)   The  Subscriber  represents  that  the  Subscriber  is  an
          Accredited Investor as that term is defined in the Act as that term is
          defined in the Act (check each category of "Accredited Investor" below
          which  is  applicable  to  the  Subscriber):

               (   )     (A)     a natural person whose individual net worth, or
          joint net worth with that person's spouse, at the time of his purchase
          exceeds  $1,000,000;  or

               (   )     (B)     a  natural  person who had an individual income
          in  excess  of  $200,000 in each of the two most recent years or joint
          income  with  that  person's  spouse  in excess of $300,000 in each of
          those  years  and  has  a  reasonable expectation of reaching the same
          income  level  in  the  current  year.

               (ii)  The Subscriber agrees to furnish any additional information
          requested  to  assure  compliance  with  applicable  Federal and State
          Securities Laws in connection with the purchase and sale of the Common
          Stock.

     (d)  Restrictions on Transfer or Sale of the Common Stock
          ----------------------------------------------------

                                        3
<PAGE>
          (i)  The  Subscriber  is  acquiring the Common Stock subscribed solely
          for  the Subscriber's own beneficial account, for investment purposes,
          and  not  with  view  to,  or  for  resale  in  connection  with,  any
          distribution  of the Common Stock. The Subscriber understands that the
          offer  and  the sale of the Common Stock has not been registered under
          the  Act or any State Securities Laws by reason of specific exemptions
          under  the provisions thereof which depend in part upon the investment
          intent  of the Subscriber and of the other representations made by the
          Subscriber  in this Subscription Agreement. The Subscriber understands
          that  the  Company  is relying upon the representations, covenants and
          agreements  contained  in  this  Subscription  Agreement  (and  any
          supplemental information) for the purposes of determining whether this
          transaction  meets  the  requirements  for  such  exemptions.

          (ii)  The  Subscriber  understands that the shares of Common Stock are
          "restricted  securities"  under applicable federal securities laws and
          that  the  Act and the rules of the Securities and Exchange Commission
          (the  "Commission")  provide  in  substance  that  the  Subscriber may
          dispose of the Common Stock only pursuant to an effective registration
          statement  under  the Act or an exemption therefrom. While the Company
          has  agreed  to  grant  "piggy-back" registration rights to the Holder
          hereof,  the  Subscriber  acknowledges that the Company may not file a
          Registration  Statement  with  the  Commission  and  that if filed, no
          representation is made as to when such Registration Statement would be
          declared  effective by the Commission. The certificates evidencing the
          shares of Common stock offered hereby will bear a legend which clearly
          sets  forth  this  restriction.  The  Subscriber  understands that the
          Subscriber  may  not at any time demand the purchase by the Company of
          the  Subscriber's  Common  Stock.

          (iii)  The  Subscriber  agrees: (A) that the Subscriber will not sell,
          assign,  pledge,  give,  transfer  or  otherwise dispose of the Common
          Stock  or any interest therein, or make any offer or attempt to do any
          of  the  foregoing,  except  pursuant  to a registration of the Common
          Stock  under  the Act and all applicable State Securities Laws or in a
          transaction  which  is  exempt from the registration provisions of the
          Act and all applicable State Securities Laws; (B) that the Company and
          any  transfer agent for the Common Stock shall not be required to give
          effect  to  any  purported  transfer of any of the Common Stock except
          upon  compliance  with  the  foregoing  restrictions;  and  (C) that a
          restrictive legend will be placed on the certificates representing the
          Common  Stock.

          (iv)  The  Subscriber  has  not  offered  or  sold  any portion of the
          subscribed  for  Common Stock and has no present intention of dividing
          such  Common  Stock with others or of reselling or otherwise disposing
          of  any  portion  of  such  Common Stock either currently or after the
          passage  of  a  fixed  or  determinable  period  of  time  or upon the
          occurrence  or  nonoccurrence  of  any  predetermined  event  or
          circumstance.

4.   SURVIVAL AND INDEMNIFICATION. All representations, warranties and covenants
     contained  in  this  Agreement  and  the  indemnification contained in this
     Paragraph  4 shall survive (i) the acceptance of the Subscription Agreement
     by  the  Company  and  (ii)  the death or disability of the Subscriber. The
     Subscriber  acknowledges  the  meaning  and  legal  consequences  of  the
     representations,  warranties  and  covenants in Paragraph 3 hereof and that
     the  Company has relied upon such representations, warranties and covenants

                                        4
<PAGE>
     in  determining  the Subscriber's qualification and suitability to purchase
     the  Common  Stock.  The  Subscriber hereby agrees to indemnify, defend and
     hold  harmless  the Company, and its officers, directors, employees, agents
     and  controlling  persons,  from  and  against  any and all losses, claims,
     damages,  liabilities,  expenses  (including  attorneys'  fees  and
     disbursements),  judgment  or amounts paid in settlement of actions arising
     out  of  or  resulting from the untruth of any representation herein or the
     breach  of  any warranty or covenant herein. Notwithstanding the foregoing,
     however,  no  representation,  warranty,  covenant  or  acknowledgment made
     herein  by  the  Subscriber  shall  in any manner be deemed to constitute a
     waiver of any rights granted to it under the Securities or State Securities
     laws.

5.   NOTICES.  All notices and other communications provided for herein shall be
     in  writing  and  shall  be  deemed  to  have  been duly given if delivered
     personally  or  sent  by  registered  or  certified  mail,  return  receipt
     requested,  postage prepaid, or overnight air courier guaranteeing next day
     delivery:

     (a)  if to the Company, to it at the following address:

                    RICKS CABARET INTERNATIONAL, INC.
                    10959 Cutten Road
                    Houston, Texas 77066
                    Attn: Eric Langan

                    Telephone No. (281) 397 6730
                    Facsimile No: (281) 397 6765

     (b)  if to the Subscriber, at the address set forth on the last page hereof
          or  directly  to  the  Subscriber  at  the  address  set  forth on the
          signature  page hereto, or at such other address as either party shall
          have  specified  by  notice  in  writing  to  the  other.

     All  notice  and communications shall be deemed to have been duly given: at
     the  time  delivered by hand, if personally delivered; two days after being
     deposited  in  the mail, postage prepaid, if mailed; and the next day after
     timely  delivery  to  the  courier,  if  sent  by  overnight  air  courier
     guaranteeing  next  day  delivery.

     If  a notice or communication is mailed in the manner provided above within
     the  time  prescribed,  it  is  duly  given,  whether  or not the addressee
     receives  it.

6.   ASSIGNABILITY.  This  Subscription  Agreement  is  not  assignable  by  the
     Subscriber,  and  may  not  be  modified, waived or terminated except by an
     instrument  in  writing  signed  by  each  of  the  parties  hereto.

7.   BINDING  EFFECT.  Except  as  otherwise  provided herein, this Subscription
     Agreement shall be binding upon and inure to the benefit of the parties and
     their  heirs,  executors, administrators, successors, legal representatives
     and  assigns,  and  the  agreements,  representations,  warranties  and
     acknowledgments  contained  herein  shall  be  deemed  to be made by and be
     binding  upon  such  heirs,  executors,  administrators,  successors, legal
     representatives and assigns. If the Subscriber is more than one person, the
     obligation of the Subscriber shall be joint and several and the agreements,
     representations,  warranties  and acknowledgments contained herein shall be
     deemed  to

                                        5
<PAGE>
     be  made  by and be binding upon each such person and his heirs, executors,
     administrators  and  successors.

8.   ENTIRE  AGREEMENT.  This  Subscription  Agreement  constitutes  the  entire
     agreement  of  the  Subscriber  and  the  Company  relating  to the matters
     contained  herein,  superseding  all prior contracts or agreements, whether
     oral  or  written.

9.   GOVERNING LAW. This Subscription Agreement shall be governed and controlled
     as  to  the validity, enforcement, interpretations, construction and effect
     and  in all other aspects by the substantive laws of the State of Texas. In
     any action between or among any of the parties, whether arising out of this
     Agreement  or  otherwise,  each  of the parties irrevocably consents to the
     exclusive jurisdiction and venue of the federal and state courts located in
     Harris  County,  Texas.

10.  SEVERABILITY.  If  any  provision  of  this  Subscription  Agreement or the
     application thereof to any Subscriber or circumstance shall be held invalid
     or  unenforceable  to  any  extent,  the  remainder  of  this  Subscription
     Agreement  and  the application of such provision to other subscriptions or
     circumstances  shall  not  be affected thereby and shall be enforced to the
     greatest  extent  permitted  by  law.

11.  HEADINGS.  The  headings  in  this  Subscription Agreement are inserted for
     convenience  and  identification  only  and  are  not intended to describe,
     interpret,  define,  or  limit  the  scope,  extent  or  intent  of  this
     Subscription  Agreement  or  any  provision  hereof.

12.  AMOUNT  OF COMMON STOCK SUBSCRIBED FOR. The Subscriber hereby subscribes to
     purchase  150,000  shares of Common Stock of the Company at $2.50 per share
     for  a  total  consideration  of  $375,000.00.

13.  COUNTERPARTS AND FACSIMILES. This Subscription Agreement may be executed in
     multiple  counterparts  and  in  any  number of counterparts, each of which
     shall  be  deemed  an  original  but  all  of  which  taken  together shall
     constitute  and  be  deemed  to  be one and the same instrument and each of
     which  shall  be  considered  and deemed an original for all purposes. This
     Agreement  shall  be  effective  with the facsimile signature of any of the
     parties  set  forth below and the facsimile signature shall be deemed as an
     original signature for all purposes and the Agreement shall be deemed as an
     original  for  all  purposes.

     IN  WITNESS  WHEREOF,  the  undersigned  Subscriber  has  executed  this
Subscription  Agreement  this  ____  day  of  February,  2005.

                         [SIGNATURES ON FOLLOWING PAGE]

                                        6
<PAGE>
                              /s/ Jay Teitelbaum
                              -------------------------------------------
                              Signature of Investor

                              Jay Teitelbaum
                              -------------------------------------------
                              Name (Please type or print)

                              Signature of Spouse or Co-Owner if funds are to be
                              invested  as  joint  tenants  by  the  entirety or
                              community  property.

                              -------------------------------------------
                              Name (Please type or print)

                              -------------------------------------------
                                   Street  Address

                              -------------------------------------------
                              City               State          Zip

================================================================================

     ACCEPTED by the Company this the ____ day of February, 2005.

Ricks Cabaret International, Inc.

By:/s/  Eric Langan
   __________________________________
   Eric Langan, President

                                        7

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