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BONUS AND OTHER AGREEMENT

Employee Bonus Plan Agreement

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This Employee Bonus Plan Agreement involves

CRDENTIA CORP

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Title: BONUS AND OTHER AGREEMENT
Governing Law: Texas     Date: 1/12/2004

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Exhibit 10

 

Exhibit 10.3

 

                      BONUS AND OTHER AGREEMENT

 

This bonus and other agreement (the "Agreement") is entered into between

Crdentia Corp., a Delaware corporation (the "Company") and James D. Durham

(the "Executive") (together the "Parties") as of December 31, 2003.

The Parties hereby agree as follows:

 

1.    As part of the consideration for entering into this Agreement and

as part of the consideration for receipt of an option to purchase 7,000,000

shares of Company common stock at an exercise price of $0.10 per share under

the terms of a stock option plan and award agreement dated December 31, 2003

the Executive hereby agrees to relinquish the Executive's right to purchase

additional shares of common stock of the Company (the "Purchase Options")

that accrue to the Executive after the date of this Agreement pursuant to

Section 1.3 of the Lifen, Inc. Common Stock Purchase Agreement dated May 15,

2002 (the "Stock Purchase Agreement") in connection with all Acquisitions

(as defined in the Stock Purchase Agreement) that occur either before or

after the date of this Agreement and such future Purchase Options shall be

terminated and of no further force or effect as of the date of this

Agreement.  The Executive shall retain all such Purchase Options held by

the Executive as of the date of this Agreement which shall be governed by

the terms of the Stock Purchase Agreement as modified by this Agreement. 

For clarity, Executive shall have the right to exercise Purchase Options to

acquire 2,767,278 shares of Company common stock and no more.

 

2.    The Executive shall be entitled to receive bonus payments on

December 31, 2006 in the amount of $540,000 and on January 4, 2007 in the

amount of $540,000.  The payment of the bonuses shall not be affected by

the termination for any reason (including death or disability) of the

Executive's employment or service to the Company prior to December 31, 2006

or January 4, 2007. 

 

3.    The third sentence of Section 1.3 of the Stock Purchase Agreement

provides as follows: 

 

    "Each Investor's right to purchase these additional shares of Common

Stock shall expire one year after the Vesting Expiration Date (the

"Expiration Date")."

 

As applied to the Executive and not any other Investor (as defined in the

Stock Purchase Agreement), the third sentence of Section 1.3 of the Stock

Purchase Agreement shall be amended and restated as follows:

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