Document:

Exhibit
10.2

 

EXHIBIT C

 

GENERAL
RELEASE OF CLAIMS

 

This General Release of Claims (hereinafter “Release”)
is entered into this 7th day of January, 2006, by and between Pamela
Atherton (hereinafter “Releasor”) and Crdentia Corp. (hereinafter “Releasee”).

 

RECITALS

 

A.                                   On December 16,
2003, Releasor became employed by Releasee according to the terms and
conditions of an employment agreement (“Employment Agreement”).

 

B.                                     On or about January 7,
2006, Releasee and Releasor mutually decided to end their employment
relationship.

 

C.                                     According to the
terms and conditions of the Employment Agreement, Releasor is entitled to
certain Severance Payments so long as Releasor executes this General Release of
any and all claims.  By execution hereof,
Releasor understands and agrees that this Release is a compromise of doubtful
and disputed claims, if any, which remain untested; that there has not been a
trial or adjudication of any issue of law or fact herein; that the terms and
conditions of this Release are in no way to be construed as an admission of
liability on the part of Releasee and that Releasee denies liability and
intends merely to avoid litigation with this Release.

 

AGREEMENT

 

NOW THEREFORE FOR MUTUAL CONSIDERATION, the receipt and sufficiency of
which the parties hereto acknowledge, the parties agree as follows:

 

1.                                       Except for
claims arising under any Stock Option Agreements between Releasor and Releasee
(“Stock Option Agreements”), Releasor does hereby unconditionally, irrevocably
and absolutely release and discharge Releasee, and its affiliates, owners,
directors, officers, employees, agents, attorneys, heir, representatives,
legatees, stockholders, insurers, divisions, successors and/or assigns and any
related holding, parent or subsidiary corporations, from any and all loss,
liability, claims, costs (including, without limitation, attorneys’ fees),
demands, causes of action, or suits of any type, whether in law and/or in
equity, related directly or indirectly or in any way connected with any
transaction, affairs or occurrences between them and arising on or prior to the
date hereof, including, but not limited to, Releasor’s employment with
Releasee, the termination of said employment and claims of emotional or
physical distress related to such employment or termination.  This Release specifically applies to any
claims for age discrimination in employment, including any claims arising under
the Age Discrimination In Employment Act or any other statutes or laws that
govern discrimination in employment.

 

2.                                       Releasor
irrevocably and absolutely agrees that she will not prosecute nor allow to be
prosecuted on her behalf in any administrative agency, whether federal or
state, or in any court, whether federal or state, any claim or demand of any
type related to the matter released above, it being an intention of the parties
that with the execution by Releasor of this Release, Releasee, its owners,
officers, directors, employees, agents, attorneys, heirs, representatives,

 

B-1

 

legatees, successors and/or assigns and any related holding, parent and
subsidiary corporations will be absolutely, unconditionally and forever
discharged of and from all obligations to or on behalf of Releasor related in
any way to the matter discharged herein.

 

3.                                       Releasor agrees
that all matters relative to this Release, the Separation Agreement and
compromise in relation thereto shall remain confidential.  Accordingly, Releasor hereby agrees that,
with the exception of Releasor’s counsel, spouse and tax advisor, Releasor
shall not discuss, disclose or reveal to any other persons, entities or
organizations, whether within or outside of the State of Texas, the fact of
settlement and/or terms and conditions of settlement and of this Release,
including the amount paid to settle Releasor’s claims.  Similarly, Releasor shall not make, issue,
disseminate, publish, print or announce any news release, public statement or
announcement with respect to these matters, or any aspect thereof, the reasons
therefore and the terms of this Release. 
Further, in keeping with the spirit of this Release, Releasor shall,
upon the execution of this Release, cease and desist from taking any further
action in opposition to Releasee, respecting its past employment policies and
practices and shall never reapply for employment with Releasor; provided,
however, that nothing herein shall be deemed to preclude Releasor from giving
statements, affidavits, depositions, testimony, declarations or other
disclosures required by or pursuant to legal process.

 

4.                                       Releasor does
expressly waive all of the benefits and rights granted to him pursuant to any
applicable law or regulation to the effect that:

 

A general release does not extend to claims
which the creditor does not know of or suspect to exist in his or her favor at
the time of executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.

 

5.                                       Releasor does
certify that she has read all of this Release, and that she fully understands
all of the same.  Except for claims under
the Stock Option Agreements, Releasor hereby expressly agrees that this Release
shall extend and apply to all unknown, unsuspected and unanticipated injuries
and damages, as well as those that are now known.

 

6.                                       Releasor further
declares and represents that no promise, inducement or agreement not herein
expressed has been made to her and that this Release contains the full and
entire agreement between and among the parties, and that the terms of this
Release are contractual and not a mere recital.

 

7.                                       The validity,
interpretation, and performance of this Release shall be construed and
interpreted according to the laws of the State of Texas.

 

8.                                       This Release may
be pleaded as a full and complete defense and may be used as the basis for an
injunction against any action, suit or proceeding that may be prosecuted,
instituted or attempted by either party in breach thereof.

 

9.                                       If any provision
of this Release, or part thereof, is held invalid, void or voidable as against
the public policy or otherwise, the invalidity shall not affect other
provisions, or parts thereof, which may be given effect without the invalid
provision or part.  To this extent, the
provisions, and parts thereof, of this Release are declared to be severable.

 

B-2

 

10.                                 As part of this
Release, Releasor agrees to indemnify and hold harmless Releasee against any
claim by any state or the Internal Revenue Service for Releasor’s income and
other taxes payable as a result of the consideration being paid by Releasee
pursuant to this Release, the Separation Agreement or the Employment
Agreement.  It is understood that the
extent of Releasor’s obligation would be to pay all sums due to either agency
as income tax and his/her portion of social security taxes related to this
Release, plus any applicable penalty and/or interest relating to failure to
timely pay the tax.  It is the intention
of all parties to this Release that the Severance Payments made to Releasor are
proper and in accordance with all laws. 
However, should there be a different determination by any state or the
Internal Revenue Service, Releasor will be obligated based on the terms of this
paragraph.

 

11.                                 It is understood that
this Release is not an admission of any liability by any person, firm
association or corporation but is in compromise of any disputed claim.

 

12.                                 Releasor represents,
acknowledges and agrees that Releasee has advised her, in writing, to discuss
this Release with an attorney, and that to the extent, if any, that Releasor
has desired, Releasor has done so; that Releasee has given Releasor
twenty-one (21) days to review and consider this Release before signing
it, and Releasor understands that she may use as much of this twenty-one (21)
day period as she wishes prior to signing; that no promise, representation,
warranty or agreements not contained herein have been made by or with anyone to
cause her to sign this Release; that she has read this Release in its entirety,
and fully understands and is aware of its meaning, intent, contents and legal
effect; and that she is executing this Release voluntarily, and free of any
duress or coercion.

 

13.                                 The parties
acknowledge that for a period of seven (7) days following the
execution of this Release, Releasor may revoke the Release, and the Release
shall not become effective or enforceable until the revocation period has
expired.

 

14.                                 This Release shall
become effective eight (8) days after it is signed by Releasor and
Releasee, and in the event the parties do not sign on the same date, then this
Release shall become effective eight (8) days after the date it is
signed by Releasor.

 

15.                                 Releasor has read the
foregoing Release and knows its contents and fully understands it.  Releasor acknowledges that she has fully
discussed this Release with her attorney.

 

16.                                 Releasor has read the
foregoing Release and knows its contents and fully understands it.  Releasor further acknowledges that she has
been offered the opportunity to discuss this Release and its contents with her
attorney.  Releasor acknowledges that she
has fully discussed this Release with her attorney or has voluntarily chosen to
sign this Release without consulting her attorney, fully understanding the
consequences of this Release.

 

B-3

 

IN WITNESS WHEREOF,
the undersigned have executed this Release on the dates shown below at
14111 Dallas Parkway, Suite 600, Dallas, Texas 75240.

 

	
  RELEASOR:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Pamela Atherton

  	
   

  	
   

  
	
  Pamela Atherton

  	
   

  
	
   

  	
   

  
	
  Dated: January 7, 2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  RELEASEE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CRDENTIA CORP.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ James D. Durham

  	
   

  	
   

  
	
  By:

  	
  James D. Durham

  
	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
  Dated: January 7, 2006

  	
   

  
					

 

B-4Exhibit 10.3

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement (this “Agreement”) is made and entered into
between Crdentia Corp. (“Crdentia”), on the one hand, and Nick Liuzza, Jr.,
Nick Liuzza, Sr., Christopher Liuzza (collectively referred to as the “Liuzza
Parties”), and those other former shareholders of New Age Staffing, Inc.
who are signatories hereto (collectively with the Liuzza Parties, the “Former
New Age Shareholders”) on the other hand, as of January 9, 2006 (the “Effective
Date”) with reference to the following:

 

In order to avoid the expense of litigation, and with all parties
denying liability, the parties enter into this Agreement and by so doing intend
to fully, completely, and finally resolve, terminate, and settle all disputes,
claims, and actions between Crdentia and the Liuzza Parties, including, without
limitation, those claims which were actually asserted or which could have been
asserted in the litigation entitled Nick Liuzza Sr., et al. v.
Crdentia Corp., No. 05-3031, pending in the United States
District Court, Eastern District of Louisiana, (the “Action”), and to preclude
the possibility of further disputes between them.

 

WHEREFORE, in consideration of the promises, covenants, warranties, and
representations set forth below, the parties agree as follows:

 

1.                                       Return of Shares by Nick Liuzza, Jr.

 

Nick Liuzza Jr. owns 684,137 shares of common stock in Crdentia.  Crdentia is further presently obligated to
deliver 498,855 additional shares of common stock in Crdentia to Nick Liuzza
Jr. as (i) dividends payable but not yet paid on the shares of Crdentia’s Class B-1
Preferred Stock (the “B-1 Preferred”) formerly owned by Nick Liuzza Jr. and (ii) consideration

 

 

payable by Crdentia to Nick Liuzza Jr. upon the
conversion of his former shares of B-1 Preferred into Crdentia’s common stock
on March 29, 2005 (collectively, the “Nick Liuzza Jr. Dividend/Conversion
Shares”).

 

Within 15 calendar days following the Effective Date, (i) Crdentia
shall deliver to Nick Liuzza Jr. stock certificates evidencing the Nick Liuzza
Jr. Dividend/Conversion Shares, and (ii) Nick Liuzza Jr. shall deliver to
Crdentia certificates representing 591,496 shares of common stock originally
issued to Nick Liuzza Jr. on September 22, 2003, free and clear of all
encumbrances imposed by Nick Liuzza Jr. and accompanied by signed blank stock
powers and such other documentation as is reasonably requested by Crdentia’s
transfer agent (other than an opinion of counsel with respect to compliance
with federal and state securities laws which, if required, shall be delivered
by Crdentia’s counsel).  Crdentia
acknowledges and agrees that Nick Liuzza Jr. will continue to own 591,496 of
shares of common stock in Crdentia following this Agreement.

 

2.                                       Extension of Lock-Up Agreement

 

By execution of this Agreement, Crdentia and Nick Liuzza Jr. are hereby
amending that certain Lock-Up Agreement between Crdentia and Nick Liuzza Jr.
dated September 13, 2003 (the “Lock-Up Agreement”) (i) subject to
clause (iii) immediately below, to extend the term thereof for a period
expiring on the one (1) year anniversary of its original expiration date,
with such extension to be effective retroactively to the original expiration
date, (ii) to include all Crdentia common stock owned by Nick Liuzza Jr.
within the definition of “Restricted Shares” thereunder, regardless of whether
such shares were received in the Merger (as defined in the Lock-Up Agreement)
or thereafter, and (iii) to terminate the Lock-Up Agreement, other than

 

 

Section 3 thereof,
ninety (90) days following the occurrence of a Qualified Secondary Offering.  A
“Qualified Secondary Offering” means a secondary offering of Crdentia common
stock raising $20,000,000 or more in gross proceeds.

 

3.                                       Sales and Transfers of Stock by Former
New Age Shareholders

 

Crdentia covenants that: (i) Crdentia will immediately rescind any
and all stop-transfer orders placed with its transfer agent affecting the
Former New Age Shareholders; (ii) upon expiration or early termination of
the Lock-Up Agreement, Crdentia will immediately rescind any and all
stop-transfer orders placed with its transfer agent affecting Nick Liuzza Jr.; (iii) Crdentia
will not take any action to impair the right or ability of the Former New Age
Shareholders to sell or transfer their Crdentia common stock unless the sale or
transfer is prohibited by applicable securities laws or, in the case of Nick
Liuzza Jr., the Lock-Up Agreement; and (iv) upon receipt from the Former
New Age Shareholders of customary documentation, Crdentia will perform all
ministerial acts necessary, including the issuance of appropriate and customary
opinions by company counsel without charge to the selling party, to authorize
and effect the sale and transfer of common stock sold by the Former New Age
Shareholders unless the sale or transfer is prohibited by applicable securities
laws or, in the case of Nick Liuzza Jr., the Lock-Up Agreement.  Without limiting the foregoing, Crdentia
acknowledges that Chris Liuzza intends to sell 30,000 shares of Crdentia common
stock immediately following the Effective Date, and Crdentia agrees to comply
with its obligations under this Section within time frames customary in
the securities industry.

 

 

4.                                       Shares Deliverable Pursuant to B-1
Preferred Conversion and Accrued Dividends

 

Promptly following delivery to Crdentia of the certificates
representing the B-1 Preferred shares currently held by the Former New Age
Shareholders, Crdentia shall deliver all shares (together with any and all
certificates representing the shares) due to the Former New Age Shareholders as
a result of the conversion of the B-1 Preferred shares held thereby and accrued
dividends payable in stock on the B-1 Preferred prior to its conversion to
Crdentia common stock.

 

Crdentia agrees and acknowledges that 525,210 additional shares of
Crdentia common stock are deliverable under this Section to Nick Liuzza
Sr.

 

5.                                       Release of Claims by the Former New Age
Shareholders

 

Reserving the rights of Nick Liuzza Sr. and Nick Liuzza Jr. under that
certain Registration Rights Agreement, dated September 22, 2003, with
Credentia (the “2003 Registration Rights Agreement”), the Former New Age
Shareholders, on behalf of themselves and their spouses, heirs, successors,
administrators, successors, and assigns, absolutely and forever releases and
discharges Crdentia, together with its assigns, insurers, subrogees,
predecessors-in-interest, successors-in-interest, divisions, all affiliated,
parent or subsidiary corporations or entities, officers, directors, employees,
members, managers, supervisors, shareholders, and attorneys, from any and all
claims, rights, demands, covenants, agreements, contracts, invoices, duties,
obligations, responsibilities, representations, warranties, promises, liens,
accounts, debts, liabilities, damages, expenses, attorneys’ fees, costs and
causes of action, known or unknown of whatever kind and howsoever arising,
which each now has, ever has had,

 

 

or may have had against Crdentia up to and until the
Effective Date, whether in law or equity, including without limitation, all
claims which were asserted or could have been asserted in the Action, all
claims related to, based upon, or arising out of that certain Agreement and
Plan of Reorganization by and among Crdentia Corp., NAS Acquisition
Corporation, New Age Staffing, Inc., and the Shareholders of New Age
Staffing, Inc., all claims arising out of Crdentia’s employment of Nick
Liuzza, Jr., all rights to require registration of any shares of Crdentia
common stock received in the conversion of the B-1 Preferred (except to the
extent that the Former New Age Shareholders may hereafter be entitled to demand
registration thereof under the Registration Rights Agreement), and all claims
of fraudulent conduct.

 

6.                                       Release of Claims by Crdentia

 

Reserving its rights against Nick Liuzza Jr. under the Lock-Up
Agreement, Crdentia, on behalf of itself, its assigns, insurers, subrogees,
predecessors-in-interest, successors-in-interest, divisions, all affiliated,
parent or subsidiary corporations or entities, officers, directors, employees,
members, managers, supervisors, shareholders, and attorneys, absolutely and
forever releases and discharges the Former New Age Shareholders, together with
their spouses, heirs, successors, administrators, successors, and assigns, from
any and all claims, rights, demands, covenants, agreements, contracts,
invoices, duties, obligations, responsibilities, representations, warranties,
promises, liens, accounts, debts, liabilities, damages, expenses, attorneys’
fees, costs and causes of action, known or unknown of whatever kind and
howsoever arising, which each now has, ever has had, or may have had against
the Former New Age Shareholders up to and until the Effective Date, whether in
law or equity, including without limitation, all claims asserted in any action
against the Former New Age Shareholders, all claims related to, based

 

 

upon, or arising out of that certain Agreement and
Plan of Reorganization by and among Crdentia Corp., NAS Acquisition
Corporation, New Age Staffing, Inc., and the Shareholders of New Age
Staffing, Inc. or its employment of Nick Liuzza Jr., and all claims of
fraudulent conduct.

 

7.                                       No Liability

 

It is understood and agreed that this Agreement does not constitute an
admission of liability on the part of any party or parties released
herein.  Each party denies liability as
to all claims or causes of action but agrees to settle this dispute merely to
buy their peace.

 

8.                                       Covenant Not to Sue

 

The parties represent and warrant that they will not bring, commence,
maintain, support or prosecute, directly or indirectly, any action at law or
proceeding in equity or any legal or administrative proceeding or assert a
claim for damages or other relief based in whole or in part upon any claim,
demand, debt or liability which is released herein.

 

9.                                       Dismissal of Action

 

The Liuzza Parties further agree that this Agreement expresses a full
and complete compromise and settlement of all claims asserted in the Action,
regardless of the adequacy of the aforesaid consideration, and DIRECTS AND AUTHORIZES
their counsel to DISMISS THE ACTION WITH PREJUDICE, each party to bear its own
costs and attorneys’ fees.

 

 

10.                                 Applicable Law and Venue

 

This Agreement and the rights, duties, and obligations of the Parties
to this Agreement shall be interpreted, construed, performed, and enforced in
accordance with and governed by the internal law, and not the law of conflicts,
of the State of Louisiana.  Crdentia
acknowledges and agrees that the Liuzza Parties may seek to enforce this
Agreement in any state or federal court of competent jurisdiction in Louisiana,
and Crdentia hereby waives any objections to the jurisdiction of those courts
based on personal jurisdiction or forum non conveniens.

 

11.                                 Differences in Fact

 

The Parties fully understand and agree that the assumptions and
perceived circumstances upon which this Agreement is executed may be mistaken
or otherwise in error. With such understanding and agreement, the Parties
expressly accept and assume the risk of facts being other than or different
from its or their assumptions or perceptions as of any date prior to and
including the date hereof; the Parties fully agree that this Agreement shall be
in all respects effective, and shall not be subject to termination, rescission,
or modification by reason of any mistaken or erroneous assumption of perceived
circumstances.

 

12.                                 No Representation

 

The Parties acknowledge to one another that no promise, inducement or
agreement not contained herein has been expressed or made to any of them in
connection with this Agreement.

 

 

13.                                 Complete Agreement

 

This Agreement is intended by the Parties as a final and complete
expression of their agreement and understanding with respect to its subject
manner. The terms of this Agreement are contractual, and may not be changed,
modified, altered, interlineated, or supplemented, nor may any covenant,
representation, warranty, or other provisions hereof be waived, except by
agreement in writing signed by the party against whom enforcement of the
change, modification, alteration, interlineation, waiver or supplementation is
sought.

 

14.                                 General Provisions

 

(a)                                  This Agreement may be executed in
counterparts each of which shall be deemed to be an original, but all of which
taken together will constitute but one agreement.

 

(b)                                 In the event any provision of the
Agreement is found to be unenforceable, that finding shall not affect the
enforceability of any other provision hereof.

 

(c)                                  This Agreement confers no rights upon any
party, person and/or entity that is not a signatory
hereto.

 

(d)                                 This Agreement shall not be construed for
or against any of the parties on the basis of the extent to which that party
participated in drafting it.

 

(e)                                  Each party shall bear its own attorneys’
fees or costs incurred in connection with this Action.  However, in the event any party to this
Agreement is required to file an action in order to enforce the provisions of
this Agreement, the prevailing party in such action shall be entitled to
recover their reasonable attorneys’ fees and costs incurred in such action.

 

 

(f)                                    This Agreement constitutes a single,
integrated contract expressing the entire agreement of the Parties concerning
its subject matter. All prior discussions and negotiations have been merged and
integrated into, and are superseded by, this Agreement.

 

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

 

 

	
  DATED: January 9,
  2006

  	
  /s/ Nick Liuzza, Jr.

  	
   

  
	
   

  	
  NICK LIUZZA JR.

  
	
   

  	
   

  
	
  DATED: January 8,
  2006

  	
  /s/ Nick Liuzza, Sr.

  	
   

  
	
   

  	
  NICK LIUZZA SR.

  
	
   

  	
   

  
	
  DATED: January 9,
  2006

  	
  /s/ Christopher Liuzza

  	
   

  
	
   

  	
  CHRISTOPHER LIUZZA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CRDENTIA CORP.

  
	
   

  	
   

  
	
  DATED: January 11,
  2006

  	
  /s/ James J. TerBeest,
  Chief Financial Officer

  	
   

  
	
   

  	
  By Its Duly Authorized
  Representative

  
						

 

 

JOINDER

 

IN WITNESS WHEREOF, the
undersigned former shareholder of New Age Staffing, Inc. has executed this
Agreement effective as of January 9, 2006.

 

 

	
  DATED:

  	
   

  	
   , 2006

  	
   

  	
   

  
	
   

  	
  Name:

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