Document:

Exhibit 10.2

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”)
is made and entered into as of January 25, 2007, by and among CRDENTIA
CORP., a Delaware corporation (the “Company”), and the investors signatory hereto (each
an “Investor”
and collectively, the “Investors”).

This Agreement is
made pursuant to the Securities Purchase Agreement, dated as of the date hereof
among the Company and the Investors (the “Purchase
Agreement”).

The Company and
the Investors hereby agree as follows:

1.             Definitions. 
Capitalized terms used and not otherwise defined herein that are defined
in the Purchase Agreement will have the meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following terms have the respective
meanings set forth in this Section 1:

“Advice” has the meaning set forth in
Section 6(d).

“Effective Date” means, as to a
Registration Statement, the date on which such Registration Statement is first
declared effective by the Commission.

“Effectiveness Date” means (a) with respect
to the initial Registration Statement required to be filed under Section 2(a),
the earlier of: (a)(i) the 90th day following the Final Closing Date; provided, that, if the Commission reviews and has written
comments to the filed Registration Statement that would require the filing of a
pre-effective amendment thereto with the Commission, then the Effectiveness
Date under this clause (a)(i) shall be the 120th day following the Final Closing Date, and (ii)
the fifth Trading Day following the date on which the Company is notified by
the Commission that the initial Registration Statement will not be reviewed or
is no longer subject to further review and comments (provided
further, however, that the periods specified in clauses (a)(i) and
(a)(ii) shall be automatically stayed for such additional period of time as the
Registration Statement does not meet the requirements of Rule 3-01 of
Regulation S-X, provided that such automatic stay shall expire on April 2,
2007); and (b) with respect to any additional Registration Statements that may
be required pursuant to Section 2(b), the earlier of (i) the 90th day following (x) if such Registration
Statement is required because the Commission shall have notified the Company in
writing that certain Registrable Securities were not eligible for inclusion on
a previously filed Registration Statement, the date or time on which the
Commission shall indicate as being the first date or time that such Registrable
Securities may then be included in a Registration Statement, or (y) if such
Registration Statement is required for a reason other than as described in (x)
above, the date on which the Company first knows, or reasonably should have
known, that such additional Registration Statement(s) is required; provided, that, if the Commission
reviews and has written comments to a Registration Statement that would require
the filing of a pre-effective amendment thereto with the Commission, then the
Effectiveness Date under this clause (b)(i) for such Registration Statement
shall be the 120th day following the date that the Company first
knows, or reasonably should have known, that such additional Registration
Statement is required under such Section, and (ii) the fifth Trading Day
following the date on which the Company is notified by the Commission that such
additional 

Registration
Statement will not be reviewed or is no longer subject to further review and
comments.

“Effectiveness Period” has the meaning set
forth in Section 2(a).

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

“Filing Date” means (a) with respect to the
initial Registration Statement required to be filed under Section 2(a), the 30th day following the Final Closing Date; and (b)
with respect to any additional Registration Statements that may be required
pursuant to Section 2(b), the 30th day following (x) if such Registration
Statement is required because the Commission shall have notified the Company in
writing that certain Registrable Securities were not eligible for inclusion on
a previously filed Registration Statement, the date or time on which the
Commission shall indicate as being the first date or time that such Registrable
Securities may then be included in a Registration Statement, or (y) if such
Registration Statement is required for a reason other than as described in (x)
above, the date on which the Company first knows, or reasonably should have
known, that such additional Registration Statement(s) is required.

“Final
Closing Date” means that date which is 30 days after the
Initial Closing (as that term is defined in the Purchase Agreement).

“Holder” or “Holders” means the holder or holders, as the case
may be, from time to time of Registrable Securities.

“Indemnified Party” has the meaning set
forth in Section 5(c).

“Indemnifying Party” has the meaning set
forth in Section 5(c).

“Losses” has the meaning set forth in
Section 5(a).

“New York Courts”
means the state and federal courts sitting in the City of New York, Borough of
Manhattan.

 “Proceeding”
means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened.

“Prospectus” means the prospectus included
in a Registration Statement (including, without limitation, a prospectus that
includes any information previously omitted from a prospectus filed as part of
an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Registration Statement, and all other
amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

 2
 

 

“Registrable Securities” means: (i) the
Shares and (ii) any securities issued or issuable upon any stock split,
dividend or other distribution, recapitalization or similar event, or any
conversion price adjustment with respect to any of the securities referenced in
(i) above.

“Registration Statement” means the initial
registration statement required to be filed in accordance with Section 2(a) and
any additional registration statement(s) required to be filed under Section
2(b), including (in each case) the Prospectus, amendments and supplements to
such registration statements or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference therein.

“Rule 144” means Rule 144 promulgated by
the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

“Rule 415” means Rule 415 promulgated by
the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

“Rule 424” means Rule 424 promulgated by
the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

“Securities Act” means the Securities Act
of 1933, as amended.

“Shares” means the shares of Common Stock
issued or issuable to the Investors pursuant to the Purchase Agreement.

2.             Registration.

(a)           On or prior to each
Filing Date, the Company shall prepare and file with the Commission a
Registration Statement covering the resale of all Registrable Securities not
already covered by an existing and effective Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415, on Form S-1 (or
on such other form appropriate for such purpose). Such Registration Statement
shall contain (except if otherwise required pursuant to written comments received
from the Commission upon a review of such Registration Statement) the “Plan of
Distribution” attached hereto as Annex A. The Company shall cause such
Registration Statement to be declared effective under the Securities Act as
soon as possible but, in any event, no later than its Effectiveness Date, and
shall use its reasonable best efforts to keep the Registration Statement
continuously effective under the Securities Act until the date which is the
earlier of (i) five years after its Effective Date, (ii) such time as all
of the Registrable Securities covered by such Registration Statement have been
publicly sold by the Holders, or (iii) such time as all of the Registrable
Securities covered by such Registration Statement may be sold by the Holders
pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to
a written opinion letter to such effect, addressed and reasonably acceptable to
the Company’s transfer agent and the affected Holders (the “Effectiveness
Period”).

 3
 

 

(b)           If for any reason the
Commission does not permit all of the Registrable Securities to be included in
the Registration Statement filed pursuant to Section 2(a), or for any other
reason any outstanding Registrable Securities are not then covered by an
effective Registration Statement, then the Company shall prepare and file by
the Filing Date for such Registration Statement, an additional Registration
Statement covering the resale of all Registrable Securities not already covered
by an existing and effective Registration Statement for an offering to be made
on a continuous basis pursuant to Rule 415, on Form S-1 (or on such other form
appropriate for such purpose). Each such Registration Statement shall contain
(except if otherwise required pursuant to written comments received from the
Commission upon a review of such Registration Statement) the “Plan of
Distribution” attached hereto as Annex A. The Company shall cause each
such Registration Statement to be declared effective under the Securities Act
as soon as possible but, in any event, by its Effectiveness Date, and shall use
its reasonable best efforts to keep such Registration Statement continuously
effective under the Securities Act during the entire Effectiveness Period.

(c)           If: (i) a
Registration Statement is not filed on or prior to its Filing Date (if the
Company files a Registration Statement without affording the Holders the
opportunity to review and comment on the same as required by Section 3(a)
hereof, the Company shall not be deemed to have satisfied this clause (i)), or
(ii) a Registration Statement is not declared effective by the Commission on or
prior to its required Effectiveness Date, or (iii) after its Effective Date,
without regard for the reason thereunder or efforts therefore, such
Registration Statement ceases for any reason to be effective and available to
the Holders as to all Registrable Securities to which it is required to cover
at any time prior to the expiration of its Effectiveness Period for more than
an aggregate of 20 Trading Days (which need not be consecutive) (any such
failure or breach being referred to as an “Event,” and for purposes of
clauses (i) or (ii) the date on which such Event occurs, or for purposes of
clause (iii) the date which such 20 Trading Day-period is exceeded, being referred
to as “Event
Date”), then in addition to any other rights the Holders
may have hereunder or under applicable law: (x) on each such Event Date the
Company shall pay to each Holder an amount in cash, as partial liquidated
damages and not as a penalty, equal to 1.0% (subject to reduction as provided
in the following sentence) of the aggregate Investment Amount paid by such
Holder for Shares pursuant to the Purchase Agreement; and (y) on each monthly
anniversary of each such Event Date (if the applicable Event shall not have
been cured by such date) until the applicable Event is cured, the Company shall
pay to each Holder an amount in cash, as partial liquidated damages and not as
a penalty, equal to 1.0% (subject to reduction as provided in the following sentence)
of the aggregate Investment Amount paid by such Holder for Shares pursuant to
the Purchase Agreement. After such time as the Company shall have become
obligated pursuant to this Section 2(c) to any Holder to make payments in
aggregate of 4.0% of the aggregate Investment Amount paid by such Holder for
Shares pursuant to the Purchase Agreement, then the amount of liquidated
damages to be calculated in accordance with the preceding sentence shall
thereafter be reduced from 1.0% to 0.5% with respect to all damages accruing in
excess of 4.0% of the aggregate Investment Amount paid by such Holder for
Shares. Notwithstanding anything to the contrary in this Section 2(c), in no
event shall the Company be obligated to pay any liquidated damages to any Holder
pursuant to this Section 2(c) in an aggregate amount that exceeds 10% of
the aggregate Investment Amount paid by such Holder for Shares pursuant to the
Purchase Agreement. The parties agree that the Company will not be liable for
liquidated damages under this Section in respect of the aggregate Investment
Amount that is attributable to any Registrable Securities that are sold prior
to an 

 4
 

Event Date. If the Company fails to pay any partial liquidated damages
pursuant to this Section in full within seven days after the date payable, the
Company will pay interest thereon at a rate of 10% per annum (or such lesser
maximum amount that is permitted to be paid by applicable law) to the Holder,
accruing daily from the date such partial liquidated damages are due until such
amounts, plus all such interest thereon, are paid in full. The partial
liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata
basis for any portion of a month prior to the cure of an Event, except in the
case of the first Event Date.

(d)           Each Holder agrees
to furnish to the Company a completed Questionnaire in the form attached to
this Agreement as Annex B (a “Selling Holder Questionnaire”).
The Company shall not be required to include the Registrable Securities of a
Holder in a Registration Statement and shall not be required to pay any
liquidated or other damages under Section 2(c) to any Holder who fails to
furnish to the Company a fully completed Selling Holder Questionnaire at least
two Trading Days prior to the Filing Date (subject to the requirements set
forth in Section 3(a)).

3.             Registration Procedures.

In connection with
the Company’s registration obligations hereunder, the Company shall:

(a)           Not less than two days prior to the
filing of a Registration Statement or any related Prospectus or any amendment
or supplement thereto, the Company shall furnish to each Holder copies of the “Selling
Stockholders” section of such document, the “Plan of Distribution” and any risk
factor contained in such document that addresses specifically this transaction
or the Selling Stockholders, as proposed to be filed which documents will be
subject to the review of such Holder. The Company shall not file a Registration
Statement, any Prospectus or any amendments or supplements thereto in which the
“Selling Stockholder” section thereof differs from the disclosure received from
a Holder in its Selling Holder Questionnaire (as amended or supplemented).

(b)           (i) 
Prepare and file with the Commission such amendments, including post-effective
amendments, to each Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep such Registration Statement
continuously effective as to the applicable Registrable Securities for its
Effectiveness Period and prepare and file with the Commission such additional
Registration Statements in order to register for resale under the Securities
Act all of the Registrable Securities; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement, and as so
supplemented or amended to be filed pursuant to Rule 424; provided,
however, that on the Business Day following the Effectiveness Date,
the Company shall file with the Commission in accordance with Rule 424 the
final prospectus to be used in connection with sales pursuant to the
Registration Statement (a “Final Prospectus Filing”);
provided, further, however, that any
advance notification provisions set forth in this Agreement, including without
limitation Sections 3(a) and 3(c), shall not apply to the extent that such
provisions would render impracticable the Final Prospectus Filing within the
period specified in this Section 3(b)(ii); (iii) respond as promptly as
reasonably possible to any comments received from the Commission with respect
to each Registration Statement or any amendment thereto and, as promptly as
reasonably possible 

 5
 

provide
the Holders true and complete copies of all correspondence from and to the
Commission relating to such Registration Statement that would not result in the
disclosure to the Holders of material and non-public information concerning the
Company; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the Registration
Statements, the delivery of the Prospectus or Prospectuses and the disposition
of all Registrable Securities covered by each Registration Statement.

(c)           Notify the Holders
as promptly as reasonably possible (and, in the case of (i)(A) below, not less
than three Trading Days prior to such filing) and (if requested by any such
Person) confirm such notice in writing as promptly as reasonably possible
(i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed; (B) when the
Commission notifies the Company whether there will be a “review” of such
Registration Statement and whenever the Commission comments in writing on such
Registration Statement (the Company shall provide true and complete copies
thereof and all written responses thereto to each of the Holders that pertain
to the Holders as a Selling Stockholder or to the Plan of Distribution, but not
information which the Company believes would constitute material and non-public
information); and (C) with respect to each Registration Statement or any post-effective
amendment, when the same has become effective; (ii) of any request by the
Commission or any other Federal or state governmental authority for amendments
or supplements to a Registration Statement or Prospectus or for additional
information; (iii) of the issuance by the Commission of any stop order
suspending the effectiveness of a Registration Statement covering any or all of
the Registrable Securities or the initiation of any Proceedings for that purpose;
(iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose; and (v) of the occurrence of
any event or passage of time that makes the financial statements included in a
Registration Statement ineligible for inclusion therein or any statement made
in such Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires any revisions to such Registration Statement, Prospectus or
other documents so that, in the case of such Registration Statement or the
Prospectus, as the case may be, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

(d)           Use its reasonable
best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of
(i) any order suspending the effectiveness of a Registration Statement, or (ii)
any suspension of the qualification (or exemption from qualification) of any of
the Registrable Securities for sale in any jurisdiction, at the earliest
practicable moment.

(e)           Furnish to each
Holder, without charge, at least one conformed copy of each Registration
Statement and each amendment thereto and all exhibits to the extent requested
by such Person (including those previously furnished) promptly after the filing
of such documents with the Commission.

(f)            Promptly deliver to
each Holder, without charge, as many copies of each Prospectus or Prospectuses
(including each form of prospectus) and each amendment or 

 6
 

supplement thereto as such Persons may reasonably request. The Company
hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale
of the Registrable Securities covered by such Prospectus and any amendment or
supplement thereto.

(g)           Prior to any public
offering of Registrable Securities, to register or qualify or cooperate with
the selling Holders in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of all
jurisdictions within the United States, to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness
Period and to do any and all other acts or things necessary or advisable to
enable the disposition in such jurisdictions of the Registrable Securities
covered by the Registration Statements.

(h)           Cooperate with the
Holders to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be delivered to a transferee pursuant to
the Registration Statements, which certificates shall be free, to the extent
permitted by the Purchase Agreement, of all restrictive legends, and to enable
such Registrable Securities to be in such denominations and registered in such
names as any such Holders may request.

(i)            Upon the occurrence
of any event contemplated by Section 3(c)(v), as promptly as reasonably
possible, prepare a supplement or amendment, including a post-effective
amendment, to the affected Registration Statements or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, no Registration Statement nor any Prospectus will contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.

4.             Registration Expenses.  All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a
Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing
fees (including, without limitation, fees and expenses (A) with respect to
filings required to be made with any Trading Market on which the Common Stock
is then listed for trading, and (B) in compliance with applicable state
securities or Blue Sky laws), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements
of counsel for the Company, (v) Securities Act liability insurance, if the
Company so desires such insurance, and (vi) fees and expenses of all other
Persons retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement. In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit and the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

 

 7

5.             Indemnification.

(a)           Indemnification
by the Company.  The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents, investment advisors, partners,
members and employees of each of them, each Person who controls any such Holder
(within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) and the officers, directors, agents and employees of each such
controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable costs of preparation and reasonable attorneys’
fees) and expenses (collectively, “Losses”) (Losses shall not include any
diminution in value of the Registrable Securities), as incurred, arising out of
or relating to any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, any Prospectus or any form of
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading, except to the extent, but only to the extent, that (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of Prospectus or in
any amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose) or (2) in the case of an occurrence
of an event of the type specified in Section 3(c)(ii)-(v), the use by such
Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior
to the receipt by such Holder of an Advice or an amended or supplemented
Prospectus, but only if and to the extent that following the receipt of the
Advice or the amended or supplemented Prospectus the misstatement or omission
giving rise to such Loss would have been corrected.  The Company shall notify the Holders promptly
of the institution, threat or assertion of any Proceeding of which the Company
is aware in connection with the transactions contemplated by this Agreement.

(b)           Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and
hold harmless the Company, its directors, officers, agents and employees, each
Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as incurred,
arising solely out of or based solely upon: (x) such Holder’s failure to comply
with the prospectus delivery requirements of the Securities Act or (y) any
untrue statement of a material fact contained in any Registration Statement,
any Prospectus, or any form of prospectus, or in any amendment or supplement
thereto, or arising solely out of or based solely upon any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading to the extent, but only to the extent that, (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of 

 8
 

Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in the Registration
Statement (it being understood that the Holder has approved Annex A hereto for
this purpose), such Prospectus or such form of Prospectus or in any amendment
or supplement thereto or (2) in the case of an occurrence of an event of the
type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated
or defective Prospectus after the Company has notified such Holder in writing
that the Prospectus is outdated or 
defective and prior to the receipt by such Holder of an Advice or an
amended or supplemented Prospectus, but only if and to the extent that
following the receipt of the Advice or the amended or supplemented Prospectus
the misstatement or omission giving rise to such Loss would have been
corrected.  In no event shall the
liability of any selling Holder hereunder be greater in amount than the dollar
amount of the net proceeds received by such Holder upon the sale of the
Registrable Securities giving rise to such indemnification obligation.

(c)           Conduct of
Indemnification Proceedings. If any Proceeding shall be brought or asserted
against any Person entitled to indemnity hereunder (an “Indemnified Party”),
such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall assume the
defense thereof, including the employment of counsel reasonably satisfactory to
the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that the failure of any Indemnified
Party to give such notice shall not relieve the Indemnifying Party of its
obligations or liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) that such
failure shall have proximately and materially adversely prejudiced the
Indemnifying Party.

An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or
(3) the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of
interest is likely to exist if the same counsel were to represent such
Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense thereof and
such counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld.  No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party
from all liability on claims that are the subject matter of such Proceeding.

All fees and
expenses of the Indemnified Party (including reasonable fees and expenses to the
extent incurred in connection with investigating or preparing to defend such 

 9
 

Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred, within ten
Trading Days of written notice thereof to the Indemnifying Party (regardless of
whether it is ultimately determined that an Indemnified Party is not entitled
to indemnification hereunder; provided, that the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to
the extent it is finally judicially determined that such Indemnified Party is
not entitled to indemnification hereunder).

(d)           Contribution.  If a claim for indemnification under Section
5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy
or otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable
considerations.  The relative fault of
such Indemnifying Party and Indemnified Party shall be determined by reference
to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission.  The
amount paid or payable by a party as a result of any Losses shall be deemed to
include, subject to the limitations set forth in Section 5(c), any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been
indemnified for such fees or expenses if the indemnification provided for in
this Section was available to such party in accordance with its terms.

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this
Section 5(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this
Section 5(d), no Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the proceeds actually received by such
Holder from the sale of the Registrable Securities subject to the Proceeding
exceeds the amount of any damages that such Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission.

The indemnity and
contribution agreements contained in this Section are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties.

6.             Miscellaneous.

(a)           Remedies.  In the event of a breach by the Company or by
a Holder, of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this
Agreement.  The Company and each Holder
agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for 

 10
 

specific performance in respect of such breach, it
shall waive the defense that a remedy at law would be adequate.

(b)           [Reserved].

(c)           Compliance.  Each Holder covenants and agrees that it will
comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to
the Registration Statement.

(d)           Discontinued
Disposition.  Each Holder agrees by
its acquisition of such Registrable Securities that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in
Section 3(c), such Holder will forthwith discontinue disposition of such
Registrable Securities under the Registration Statement until such Holder’s
receipt of the copies of the supplemented Prospectus and/or amended
Registration Statement or until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus may be resumed, and,
in either case, has received copies of any additional or supplemental filings
that are incorporated or deemed to be incorporated by reference in such
Prospectus or Registration Statement. 
The Company may provide appropriate stop orders to enforce the
provisions of this paragraph.

(e)           [Reserved].

(f)            Amendments and
Waivers.  The provisions of this
Agreement, including the provisions of this Section 6(f), may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the same shall be in writing and
signed by the Company and the Holders of no less than a majority in interest of
the then outstanding Registrable Securities. 
Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of certain Holders and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of at least a majority of the
Registrable Securities to which such waiver or consent relates.

(g)           Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the date
of transmission, if such notice or communication is delivered via facsimile
(provided the sender receives a machine-generated confirmation of successful
transmission and reasonably promptly following such transmission sends such
notice or communication via U.S. mail or overnight courier) at the facsimile
number specified in this Section prior to 6:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section on a day that is not a Trading Day or later than 6:30
p.m. (New York City time) on any Trading Day, (c) the Trading Day following the
date of mailing, if sent by U.S. nationally recognized overnight courier
service, or (d) upon actual receipt by the party to whom such notice is
required to be given.  The address for
such notices and communications shall be as follows:

 11
 

 

	
   

  	
  If to the Company:

  	
  Crdentia Corp.

  
	
   

  	
  

  	
  5001 LBJ Freeway, Suite 850

  
	
   

  	
   

  	
  Dallas, Texas 75244

  
	
   

  	
   

  	
  Facsimile No.: (972) 850-0780

  
	
   

  	
   

  	
  Telephone No.: (972) 392-2722

  
	
   

  	
   

  	
  Attention: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  Morrison & Foerster LLP

  
	
   

  	
   

  	
  12531 High Bluff Drive, Suite 100

  
	
   

  	
   

  	
  San Diego, CA 92130

  
	
   

  	
   

  	
  Facsimile No.:  (858) 720-5125

  
	
   

  	
   

  	
  Attention:  Steven G. Rowles, Esq.

  
	
   

  	
   

  	
   

  
	
   

  	
  If to an
  Investor:

  	
  To the address set forth under such Investor’s name
  on the signature pages hereof

  
	
   

  	
   

  	
   

  
	
   

  	
  If to any other Person who is then the registered
  Holder:

  
	
   

  	
   

  
	
   

  	
  To the address of such Holder as it appears in the
  stock transfer books of the Company or such other address as may be
  designated in writing hereafter, in the same manner, by such Person.

  

 

(h)           Successors and
Assigns.  This Agreement shall inure
to the benefit of and be binding upon the successors and permitted assigns of
each of the parties and shall inure to the benefit of each Holder.  Other than in connection with a merger,
consolidation, sale of all or substantially all of the Company’s assets or
other similar change in control transaction, the Company may not assign this
Agreement or any rights or obligations hereunder without the prior written
consent of each Holder.  Each Holder may
assign their respective rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

(i)            Execution and
Counterparts.  This Agreement may be
executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and, all of which taken together shall constitute one
and the same Agreement.  In the event
that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf
such signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

(j)            Governing Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof.  Each party agrees that all Proceedings
concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement (whether brought against a party hereto or its
respective Affiliates, employees or agents) will be commenced in the New York
Courts.  Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the New York Courts for
the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any Proceeding, any claim that it is not
personally subject to the jurisdiction of any New York Court, or that such
Proceeding has been 

 12
 

commenced in an improper or inconvenient forum.  Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such
Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner
permitted by law.  Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any Proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby.  If either party shall commence a Proceeding
to enforce any provisions of this Agreement, then the prevailing party in such
Proceeding shall be reimbursed by the other party for its attorney’s fees and
other costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding.

(k)           Cumulative
Remedies.  The remedies provided
herein are cumulative and not exclusive of any remedies provided by law.

(l)            Severability.
If any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction.  It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

(m)          Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

(n)           Independent
Nature of Investors’ Obligations and Rights.  The obligations of each Investor under this
Agreement are several and not joint with the obligations of each other
Investor, and no Investor shall be responsible in any way for the performance
of the obligations of any other Investor under this Agreement.  The Company’s obligations to each Investor under this Agreement are
identical to its obligations to each other Investor other than such differences
resulting solely from the number of Securities purchased by each Investor, but
regardless of whether such obligations are memorialized herein or in another
agreement between the Company and an Investor. 
Nothing contained herein or in any Transaction Document, and no
action taken by any Investor pursuant thereto, shall be deemed to constitute
the Investors as a partnership, an association, a joint venture or any other
kind of entity, or create a presumption that the Investors are in any way
acting in concert or as a group with respect to such obligations or the
transactions contemplated by this Agreement or any other Transaction
Document.  Each Investor acknowledges
that no other Investor will be acting as agent of such Investor in enforcing
its rights under this Agreement.  Each
Investor shall be entitled to independently protect and enforce its rights,
including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Investor to be joined as an additional
party in any Proceeding for such purpose. 
The Company acknowledges that each of the Investors has been provided
with the 

 13
 

same Registration Rights Agreement for the purpose of
closing a transaction with multiple Investors and not because it was required
or requested to do so by any Investor.

[Remainder of
Page Intentionally Left Blank]

 

 14

In Witness Whereof, the
parties have executed this Registration Rights Agreement as of the date first
written above.

	
  

  	
   

  	
  CRDENTIA CORP.

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James D. Durham

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  

[Signature Pages of Investors to Follow]

 15
 

In Witness Whereof, the
parties have executed this Registration Rights Agreement as of the date first
written above.

	
   

  	
  NAME OF INVESTING ENTITY

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADDRESS FOR NOTICE

  
	
   

  	
  c/o:

  	
   

  
	
   

  	
  Street:

  	
   

  
	
   

  	
  City/State/Zip:

  	
   

  
	
   

  	
  Attention:

  	
   

  
	
   

  	
  Tel:

  	
   

  
	
   

  	
  Fax:

  	
   

  
	
   

  	
  Email:

  	
   

  
						

 

 16

Annex A

PLAN OF DISTRIBUTION

The
Selling Stockholders and any of their pledgees, donees, transferees, assignees
and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions.  These sales may be at fixed or negotiated
prices.  The Selling Stockholders may use
any one or more of the following methods when selling shares:

·                  ordinary
brokerage transactions and transactions in which the broker-dealer
solicits Investors;

·                  block
trades in which the broker-dealer will attempt to sell the shares as
agent but may position and resell a portion of the block as principal to
facilitate the transaction;

·                  purchases
by a broker-dealer as principal and resale by the broker-dealer for
its account;

·                  an
exchange distribution in accordance with the rules of the applicable exchange;

·                  privately
negotiated transactions;

·                  to
cover short sales made after the date that this Registration Statement is
declared effective by the Commission;

·                  broker-dealers
may agree with the Selling Stockholders to sell a specified number of such
shares at a stipulated price per share;

·                  a
combination of any such methods of sale; and

·                  any
other method permitted pursuant to applicable law.

The
Selling Stockholders may also sell shares under Rule 144 under the Securities
Act, if available, rather than under this prospectus.

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers
to participate in sales.  Broker-dealers
may receive commissions or discounts from the Selling Stockholders (or, if any
broker-dealer acts as agent for the purchaser of shares, from the
purchaser) in amounts to be negotiated. 
The Selling Stockholders do not expect these commissions and discounts
to exceed what is customary in the types of transactions involved.

The
Selling Stockholders may from time to time pledge or grant a security interest
in some or all of the Shares owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may
offer and sell shares of Common Stock from time to time under this prospectus,
or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act of 1933 amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this prospectus.

Upon
the Company being notified in writing by a Selling Stockholder that any
material arrangement has been entered into with a broker-dealer for the sale of
Common Stock through a block trade, special offering, exchange distribution or
secondary distribution or a purchase by a broker or dealer, a supplement to
this prospectus will be filed, if required, pursuant to Rule 424(b) under the
Securities Act,

disclosing (i) the name of each such Selling Stockholder and of the
participating broker-dealer(s), (ii) the number of shares involved, (iii) the
price at which such the shares of Common Stock were sold, (iv)the commissions
paid or discounts or concessions allowed to such broker-dealer(s), where
applicable, (v) that such broker-dealer(s) did not conduct any investigation to
verify the information set out or incorporated by reference in this prospectus,
and (vi) other facts material to the transaction.  In addition, upon the Company being notified
in writing by a Selling Stockholder that a donee or pledgee intends to sell
more than 500 shares of Common Stock, a supplement to this prospectus will be
filed if then required in accordance with applicable securities law.

The
Selling Stockholders also may transfer the shares of Common Stock in other
circumstances, in which case the transferees, pledgees or other successors in
interest will be the selling beneficial owners for purposes of this prospectus.

The
Selling Stockholders and any broker-dealers or agents that are involved
in selling the shares may be deemed to be “underwriters” within the meaning of
the Securities Act in connection with such sales.  In such event, any commissions received by
such broker-dealers or agents and any profit on the resale of the shares
purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act.  Discounts,
concessions, commissions and similar selling expenses, if any, that can be
attributed to the sale of Securities will be paid by the Selling Stockholder
and/or the purchasers.  Each Selling
Stockholder has represented and warranted to the Company that it acquired the
securities subject to this registration statement in the ordinary course of
such Selling Stockholder’s business and, at the time of its purchase of such
securities such Selling Stockholder had no agreements or understandings,
directly or indirectly, with any person to distribute any such securities.

The
Company has advised each Selling Stockholder that it may not use shares
registered on this Registration Statement to cover short sales of Common Stock
made prior to the date on which this Registration Statement shall have been
declared effective by the Commission.  In
addition, the Company has advised each Selling Stockholder that the Commission
currently takes the position that coverage of short sales “against the box”
prior to the effective date of the registration statement of which this
prospectus is a part would be a violation of Section 5 of the Securities Act,
as described in Item 65, Section A, of the Manual of Publicly Available
Telephone Interpretations, dated July 1997, compiled by the Office of Chief
Counsel, Division of Corporate Finance.

If
a Selling Stockholder uses this prospectus for any sale of the Common Stock, it
will be subject to the prospectus delivery requirements of the Securities
Act.  The Selling Stockholders will be
responsible to comply with the applicable provisions of the Securities Act and
Exchange Act, and the rules and regulations thereunder promulgated, including,
without limitation, Regulation M, as applicable to such Selling Stockholders in
connection with resales of their respective shares under this Registration
Statement.

The Company is required
to pay all fees and expenses incident to the registration of the shares, but
the Company will not receive any proceeds from the sale of the Common
Stock.  The Company has agreed to
indemnify the Selling Stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

 2

ANNEX B

CRDENTIA CORP.

SELLING SECURITYHOLDER
NOTICE AND QUESTIONNAIRE

The undersigned beneficial
owner of common stock (the “Common Stock”),
of Crdentia Corp. (the “Company”)
understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”)
a Registration Statement for the registration and resale of the Registrable
Securities, in accordance with the terms of the Registration Rights Agreement,
dated as of January __, 2007 (the “Registration
Rights Agreement”), among the Company and the Investors
named therein.  A copy of the
Registration Rights Agreement is available from the Company upon request at the
address set forth below.  All capitalized
terms used and not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

The undersigned hereby
provides the following information to the Company and represents and warrants
that such information is accurate:

QUESTIONNAIRE

	
  1.

  	
   

  	
  Name.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Full Legal Name of Selling Securityholder

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Full Legal Name of Registered Holder (if not the
  same as (a) above) through which Registrable Securities Listed in Item 3
  below are held:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Full Legal Name of Natural Control Person (which
  means a natural person who directly or indirectly alone or with others has
  power to vote or dispose of the securities covered by the questionnaire):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Address for Notices to Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Contact Person:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
													

 

 

	
  3.

  	
   

  	
  Beneficial Ownership of Registrable Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Type and Principal Amount of Registrable Securities
  beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Broker-Dealer Status:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Are you a broker-dealer?

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Yes o      No o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Note:

  	
   

  	
  If yes, the Commission’s staff has indicated that
  you should be identified as an underwriter in the Registration Statement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Are you an affiliate of a broker-dealer?

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Yes o      No o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  If you are an affiliate of a broker-dealer, do you
  certify that you bought the Registrable Securities in the ordinary course of
  business, and at the time of the purchase of the Registrable Securities to be
  resold, you had no agreements or understandings, directly or indirectly, with
  any person to distribute the Registrable Securities?

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Yes o      Noo

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Note:

  	
   

  	
  If no, the Commission’s staff has indicated that you
  should be identified as an underwriter in the Registration Statement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Beneficial Ownership of Other Securities of the
  Company Owned by the Selling Securityholder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except as set forth below in this Item 5, the
  undersigned is not the beneficial or registered owner of any securities of
  the Company other than the Registrable Securities listed above in Item 3.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Type and Amount of Other Securities beneficially owned
  by the Selling Securityholder:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 2
 

 

	
  6.

  	
   

  	
  Relationships with the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except as set forth below, neither the
  undersigned nor any of its affiliates, officers, directors or principal
  equity holders (owners of 5% of more of the equity securities of the
  undersigned) has held any position or office or has had any other material
  relationship with the Company (or its predecessors or affiliates) during the
  past three years.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State any exceptions here:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

The undersigned agrees to
promptly notify the Company of any inaccuracies or changes in the information
provided herein that may occur subsequent to the date hereof and prior to the
Effective Date for the Registration Statement.

By signing below, the
undersigned consents to the disclosure of the information contained herein in
its answers to Items 1 through 6 and the inclusion of such information in the
Registration Statement and the related prospectus.  The undersigned understands that such information
will be relied upon by the Company in connection with the preparation or
amendment of the Registration Statement and the related prospectus.

IN
WITNESS WHEREOF the undersigned, by authority duly given, has
caused this Notice and Questionnaire to be executed and delivered either in
person or by its duly authorized agent.

	
  Dated:

  	
   

  	
   

  	
   

  	
  Beneficial Owner:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

PLEASE FAX A COPY OF THE COMPLETED
AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT
MAIL, TO:

	
  

  	
   

  	
  Morrison & Foerster LLP

  
	
   

  	
   

  	
  12531 High Bluff Drive, Suite 100

  
	
   

  	
   

  	
  San Diego, CA 92130

  
	
   

  	
   

  	
  Facsimile No.:  (858) 523-2843

  
	
   

  	
   

  	
  Attention:  Benjamin J. Sowards, Esq.

  

 

 3Exhibit 10.1

ALLOS THERAPEUTICS, INC.

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of
this 12th day of December, 2006, by and among Allos
Therapeutics, Inc., a Delaware corporation (the “Company”), and Paul L.
Berns (“Employee”).

W I T N E S S E T H:

WHEREAS, the Company
wishes to continue to employ Employee and to assure itself of the continued
services of Employee on the terms set forth herein;

WHEREAS, Employee wishes
to be so employed under the terms set forth herein;

WHEREAS, Employee and the
Company are parties to the Employment Agreement dated March 9, 2006 (the “Original
Agreement”);

WHEREAS, the Company’s
Compensation Committee previously agreed to extend on a month-to-month basis
the period during which the Company will reimburse employee for certain
commuting and temporary living expenses, and the Compensation Committee has at
a meeting held on the date hereof approved an extension of such reimbursement
to June 30, 2007;

WHEREAS, the Company and
Employee desire to amend and restate the Original Agreement to reflect their
final agreement with respect to reimbursement of commuting and temporary living
expenses; and

WHEREAS, the Company and
Employee intend that this Agreement shall supersede and replace the Original
Agreement.

NOW, THEREFORE, in
consideration of the promises and mutual covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
mutually acknowledged, the Company and Employee hereby agree as follows:

Section 1.               Definitions.

(a)           “Accrued
Obligations” shall mean (i) any Base Salary and Annual Bonus earned but
unpaid prior to the date of a termination of Employee’s employment with the
Company pursuant to Section 8 below, (ii) all accrued but unused personal time,
(iii) any unreimbursed business expenses pursuant to Section 7 below and (iv)
other employee benefits to which Employee is entitled upon termination of
employment in accordance with the terms of the plans and programs of the
Company.

(b)           “Affiliate”
shall mean, as to any Person, any other Person that controls, is controlled by,
or is under common control with, such Person.

 

(c)           “Annual Bonus”
shall have the meaning set forth in Section 4(b) below.

(d)           “Base Salary”
shall mean the salary, and any increase thereof, provided for in Section 4(a)
below.

(e)           “Board” shall
mean the Board of Directors of the Company.

(f)            “Cause”
shall mean the occurrence of one or more of the following: (i) Employee’s
conviction of a felony involving moral turpitude or dishonesty; (ii) Employee’s
knowing and active participation in a fraud or significant act of dishonesty
against the Company; (iii) Employee’s intentional and material damage to the
Company’s property or (iv) Employee’s material breach of this Agreement, the
Company’s written policies, or the Proprietary Information Agreement that is
demonstrably willful and deliberate on Employee’s part is committed in bad
faith or without reasonable belief that such breach is in the best interest of
the Company, and is not remedied by Employee within thirty (30) days of written
notice of such breach from the Board, which written notice, to be effective,
must be provided to Employee within sixty (60) days after the date on which the
Company first becomes aware of the occurrence of such event.  Notwithstanding anything herein to the
contrary, Employee’s physical or mental Disability or death shall not
constitute Cause.

(g)           “Change in
Control” means

(i)              a sale, lease, exchange or other
transfer in one transaction or a series of related transactions of all or
substantially all of the assets of the Company (other than the transfer of the
Company’s assets to a majority-owned subsidiary corporation);

(ii)             a merger or consolidation in which
the Company is not the surviving corporation (unless the holders of the Company’s
outstanding voting stock immediately prior to such transaction own, immediately
after such transaction, securities representing at least fifty percent (50%) of
the voting power of the corporation or other entity surviving such
transaction);

(iii)            a reverse merger in which the
Company is the surviving corporation but the shares of the Company’s common
stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or
otherwise (unless the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing at least fifty percent (50%) of the voting power of the
Company);

(iv)            the acquisition by any individual,
entity or group (a “Person”), including any “person” within the meaning
of Section 13(d) (3) or 14(d) (2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), of beneficial ownership within the meaning of
Rule 13d-3 promulgated under the Exchange Act, of 50% or more of either (1) the
then outstanding shares of common stock of the Company (the “Outstanding Common
Stock”) or (2) the combined voting power of the then outstanding securities of
the Company entitled to vote generally in the election of directors (the “Outstanding
Voting Securities”); excluding, however, the following: (A) any 

 2
 

 

acquisition
directly from the Company (excluding any acquisition resulting from the
exercise of an exercise, conversion or exchange privilege unless the security
being so exercised, converted or exchanged was acquired directly from the
Company), (B) any acquisition by the Company, (C) any acquisition by an
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company or (D) any acquisition by any
corporation if the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing at least fifty percent (50%) of the voting power of the
corporation or other entity surviving such transaction; provided further that,
for purposes of clause (B), if any Person (other than the Company or any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company) shall become the beneficial owner
of 50% or more of the Outstanding Common Stock or 50% or more of the
Outstanding Voting Securities by reason of an acquisition by the Company and
such Person shall, after such acquisition by the Company, become the beneficial
owner of any additional shares of the Outstanding Common Stock or any
additional Outstanding Voting Securities and such beneficial ownership is
publicly announced, such additional beneficial ownership shall constitute a
Change in Control; or

(v)             individuals who, as of the date
hereof, constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of such Board; provided, that any
individual who becomes a director of the Company subsequent to the date hereof
whose election, or nomination for election by the Company’s stockholders, was
approved by the vote of at least a majority of the directors then comprising
the Incumbent Board shall be deemed to have been a member of the Incumbent
Board; and provided further, that any individual who was initially elected as a
director of the Company as a result of an actual or threatened solicitation by
a Person other than the Company for the purpose of opposing a solicitation by
any other Person with respect to the election or removal of directors, or any
other actual or threatened solicitation of proxies or consents by or on behalf
of any Person other than the Board shall not be deemed a member of the
Incumbent Board.

(h)           “Code” shall
mean the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

(i)            “Commencement
Date” shall mean 5:00 p.m. Mountain Standard Time on  March 9, 2006.

(j)            “Company”
except as otherwise expressly set forth herein, shall have the meaning set
forth in the preamble hereto.

(k)           “Competitive
Activities” shall mean the research, development, marketing or sale of drug
and nondrug products which are competitive with (i) those products being
marketed by the Company at the time of Employee’s termination of employment
with the Company or (ii) those products that Employee was aware were under
development by the Company and consuming material resources of the Company.

 3
 

 

(l)            “Confidential
Information” shall mean confidential or proprietary trade secrets, client
lists, client identities and information, information regarding service
providers, investment methodologies, marketing data or plans, sales plans,
management organization information, operating policies or manuals, business
plans or operations or techniques, financial records or data, or other
financial, commercial, business or technical information (i) relating to the
Company or any of its subsidiaries, or (ii) that the Company or any of its
subsidiaries may receive belonging to suppliers, customers or others who do
business with the Company, but shall exclude any information that is in the
public domain or hereafter enters the public domain, in each case without the
breach by Employee of Section 10(a) below.

(m)          “Disability”
shall mean any physical or mental disability or infirmity that prevents the
performance of Employee’s duties for a period of (i) ninety (90) consecutive
days or (ii) one hundred twenty (120) non-consecutive days during any twelve
(12) month period and which entitles Employee to benefits under the long-term
disability plan maintained by the Company for its senior executives.  Any question as to the existence, extent or
potentiality of Employee’s Disability upon which Employee and the Company
cannot agree shall be determined by a qualified, independent physician selected
by the Company and approved by Employee (which approval shall not be unreasonably
withheld).  The determination of any such
physician shall be final and conclusive for all purposes of this Agreement.

(n)           “Employee”
shall have the meaning set forth in the preamble hereto.

(o)           “Good Reason”
shall mean any one of the following events which occurs on or after the
commencement of Employee’s employment without Employee’s written consent: (i)
any reduction of Employee’s then existing Base Salary or Target Bonus; (ii) any
request by the Company (or any surviving or acquiring corporation) that the
Employee relocate to a work site that would increase Employee’s one-way commute
distance by more than thirty-five (35) miles from his then principal residence,
(iii) any of a diminution in Employee’s duties or responsibilities with the
Company, a change in Employee’s titles or offices with the Company or any
removal or involuntary termination of Employee from the Company otherwise than
as expressly permitted by this Agreement, (iv) the failure of the Company to
obtain the assumption agreement from any successor as contemplated in Section
17(a) or (v) a material breach of this Agreement.

(p)           “Interfering
Activities” shall mean (i) encouraging, soliciting, or inducing, or in any manner
attempting to encourage, solicit, or induce, any Person employed by the Company
or any subsidiary thereof to terminate such Person’s employment with the
Company or such subsidiary; (ii) hiring
any Person who was employed by the Company or any subsidiary thereof within the
six (6) month period prior to the date of such hiring; or (iii) encouraging, soliciting or inducing,
or in any manner attempting to encourage, solicit or induce any client,
account, customer, licensee or other business relation of the Company or any
subsidiary thereof to cease doing business with or reduce the amount of
business conducted with (including by providing similar services or products to
any such Person) the Company or such subsidiary, or in any way interfere with
the relationship between any such client, account, customer, licensee or business
relation and the Company or such subsidiary.

(q)           “Options”
shall have the meaning set forth in Section 4(d) below.

 4
 

 

(r)            “Person”
shall mean any individual, corporation, partnership, limited liability company,
joint venture, association, joint-stock company, trust (charitable or
non-charitable), unincorporated organization or other form of business entity.

(s)           “Plan” shall
mean the Company’s 2000 Stock Incentive Compensation Plan.

(t)            “Proprietary
Information Agreement” shall mean the Proprietary Information, Inventions,
Non-Competition, and Non-Solicitation Agreement attached hereto as Exhibit A.

(u)           “Restricted Area”
means, during Employee’s employment hereunder, any State of the United States
of America or any other jurisdiction in which the Company or its subsidiaries
engage (or have committed plans to engage) in business or, following
termination of Employee’s employment, any jurisdiction in which the Company or
its subsidiaries were engaged in business at the time of such termination or in
which they have committed at the time of such termination to be actively
engaged within four years of such termination.

(v)           “Restricted
Period” shall mean the period commencing on the Commencement Date and
ending on the twelve (12) month anniversary of Employee’s termination of
employment hereunder for any reason.

(w)          “Restricted Stock”
shall have the meaning set forth in Section 4(e) below.

(x)            “Target
Bonus” shall have the meaning set forth in Section 4(b) below.

Section 2.               Acceptance and Term
of Employment.

The Company agrees to
employ Employee and Employee agrees to serve the Company on the terms and
conditions set forth herein.  It is
understood and agreed by the Company and Employee that this Agreement does not
contain any promise or representation concerning the duration of Employee’s
employment with the Company.  Employee
specifically acknowledges that his employment with the Company is “at-will” and
may be terminated by Employee or the Company at any time pursuant to Section 8
below.

Section 3.               Position,
Duties and Responsibilities; Place of Performance.

(a)           Employee shall be
employed and serve as the President and Chief Executive Officer of the Company
(together with such other position or positions consistent with Employee’s
title as the Board shall specify from time to time) and shall have such duties
typically associated with such title. 
Subject to the foregoing, Employee also agrees to serve as an officer
and/or director of the Company or any parent or subsidiary of the Company, as
specified by the Board, in each case without additional compensation.  Employee shall report directly and
exclusively to the Board.  In addition, the Company shall
promptly appoint Employee to the Board and thereafter nominate Employee as a
nominee for election to the Board and solicit proxies for his election for so
long as he continues to serve as President and Chief Executive Officer.

 5
 

 

(b)           Subject to the terms
and conditions set forth in this Agreement, Employee shall devote his full
business time, attention, and efforts to the performance of his duties under this Agreement
and shall not engage in any other business or occupation during his employment
with the Company pursuant to this Agreement, including, without limitation, any
activity that (x) conflicts with the interests of the Company or its
subsidiaries, (y) interferes with the proper and efficient performance of his
duties for the Company, or (z) interferes with the exercise of his judgment in
the Company’s best interests. 
Notwithstanding the foregoing, nothing herein shall preclude Employee
from (i) serving, with the prior written consent of the Board, as a member of
the board of directors or advisory boards (or their equivalents in the case of
a non-corporate entity) of non-competing businesses and charitable organizations,
(ii) engaging in charitable activities and community affairs, and (iii) subject
to the terms and conditions set forth in Section 10 hereof, managing his
personal investments and affairs; provided, however, that the
activities set out in clauses (i), (ii) and (iii) shall be limited by Employee
so as not to materially interfere, individually or in the aggregate, with the
performance of his duties and responsibilities hereunder.

Section 4.               Compensation.  Employee shall be entitled to the following
compensation:

(a)           Base Salary.  Employee shall be paid an annualized Base
Salary, payable in accordance with the regular payroll practices of the
Company, of not less than $450,000.  Such
Base Salary shall be reviewed annually, and shall be subject to such annual increases,
if any, as shall be determined by the Board.

(b)           Annual Bonus.  Employee shall be eligible for an annual
incentive bonus award determined by the Board in respect of each fiscal year
during which Employee remains employed by the Company pursuant to this
Agreement (the “Annual Bonus”). 
The target Annual Bonus for each fiscal year shall be not less than 50%
of Base Salary (the “Target Bonus”). 
Employee’s Annual Bonus for 2006 shall be $225,000, prorated based on
the number of days worked in that year. 
The Annual Bonus shall be paid to Employee at the same time as annual
bonuses are generally payable to other senior executives of the Company, but in
no event later than the date which is two and one-half (2 1⁄2) months following
the end of the fiscal year to which such Annual Bonus relates.

(c)           Relocation.  Subject to the submission of properly
documented receipts and the terms of the Company’s relocation program, the
Company shall reimburse Employee for (i) customary closing costs incurred by
Employee in connection with the sale of his residence in Wisconsin (including
brokerage commissions) and his purchase of a new residence in Colorado, in each
case including reasonable attorneys’ fees, (ii) customary and reasonable costs
of moving Employee and his family, including their personal effects, to their
new residence in Colorado, and (iii) customary and reasonable commuting and
temporary living expenses for Employee and his family during the period
beginning on the Commencement Date and ending on June 30, 2007.  Also, to the extent that any payments or
reimbursements described in clauses (i), (ii) or (iii) of this Section 4(c)
cause Employee to incur additional taxes (“Additional Taxes”), upon
substantiation of the amount of such Additional Taxes, the Company shall pay
Employee an additional “gross-up” payment in an amount such that, after
reduction by all taxes imposed on such gross-up payment, Employee retains an
amount equal to the Additional Taxes.

 6
 

 

(d)           Options.  As of the Commencement Date, the Company
shall grant Employee options to purchase 700,000 shares of Common Stock of the
Company, at an exercise price equal to the Fair Market Value (as such term is
defined in the Plan) on the Commencement Date (the “Options”).  Provided that Employee is employed by the
Company on the applicable vesting date, the Options shall vest as to 25% on the
first anniversary and the remainder shall vest ratably over the thirty-six
month period thereafter, and shall otherwise be subject to the terms and
conditions of the Plan and a stock option agreement entered into between the
parties hereto, containing customary terms for similarly situated employees of
the Company.

(e)           Restricted
Stock.  As of the Commencement Date,
the Company shall grant Employee 300,000 shares of restricted stock of the
Company (the “Restricted Stock”). 
75,000 shares of Restricted Stock shall vest on each of the first four
anniversaries of the Commencement Date, subject to Employee’s continuous
employment through such vesting dates. 
The Restricted Stock shall be subject to the terms and conditions of the
Plan and a restricted stock agreement entered into between the parties hereto,
containing customary terms for similarly situated employees of the Company.

Section 5.               Employee Benefits.

During Employee’s
employment with the Company, Employee shall be entitled to participate in
health, insurance, retirement and other perquisites and benefits generally
provided to other senior executives of the Company that are made available from
time to time.  Employee shall also be
entitled to the same number of holidays and sick days as are generally allowed
to senior executives of the Company and to the maximum amount of vacation
allowed to executive officers of the Company, in accordance with Company
policies in effect from time to time. 
Employee shall also be eligible to receive disability insurance at the
expense of the Company.

Section 6.               “Key-Man”
Insurance.

At
any time during Employee’s employment with the Company, the Company shall have
the right to insure the life of Employee for the sole benefit of the Company,
in such amounts, and with such terms, as it may determine.  All premiums payable thereon shall be the
obligation of the Company.  Employee
shall have no interest in any such policy, but agrees to reasonably cooperate
with the Company in taking out such insurance by submitting to reasonable
physical examinations, supplying all information reasonably required by the
insurance company, and executing all necessary documents, provided that no
financial obligation or liability is imposed on Employee by any such documents.

Section 7.               Reimbursement of
Business Expenses.

Employee is authorized to incur reasonable business expenses in
carrying out his duties and responsibilities under this Agreement and the
Company shall promptly reimburse him for all such reasonable business expenses
incurred in connection with carrying out the business of the Company, subject
to documentation in accordance with the Company’s policy, as in effect from
time to time.

 7
 

 

Section 8.               Termination of
Employment.

(a)           General.  Employee’s employment with the Company shall
terminate upon the earliest to occur of (i) Employee’s death, (ii) a
termination by reason of a Disability, (iii) a termination by the Company with
or without Cause, or (iv) a termination by Employee with or without Good
Reason.  Upon any termination of Employee’s
employment for any reason, except as may otherwise be requested by the Company
in writing and agreed upon in writing by Employee, Employee shall resign from
any and all directorships, committee memberships or any other positions
Employee holds with the Company or any of its subsidiaries or Affiliates.

(b)           Termination
due to Death or Disability.  Employee’s
employment shall terminate automatically upon his death.  The Company may terminate Employee’s
employment immediately upon the occurrence of a Disability, such termination to
be effective upon Employee’s receipt of written notice of such
termination.  In the event Employee’s
employment is terminated due to his death or Disability, Employee or his estate
or his beneficiaries, as the case may be, shall be entitled to the Accrued
Obligations, which shall be paid within thirty (30) days after the date of such
termination.  Except as set forth in this
Section 8(b), following Employee’s termination by reason of his death or
Disability, Employee shall have no further rights to any compensation or any
other benefits under this Agreement; provided, that the Options and
Restricted Stock shall remain subject to the terms and conditions of the Plan
and the applicable stock option agreement or restricted stock agreement.

(c)           Termination by
the Company for Cause.  In the event
the Company terminates Employee’s employment for Cause, he shall be entitled
only to the Accrued Obligations, which shall be paid within thirty (30) days
after the date of such termination. 
Following such termination of Employee’s employment for Cause, except as
set forth in this Section 8(c), Employee shall have no further rights to any
compensation or any other benefits under this Agreement; provided, that
the Options and Restricted Stock shall remain subject to the terms and
conditions of the Plan and the applicable stock option agreement or restricted
stock agreement.

(d)           Termination by
the Company without Cause.  The
Company may terminate Employee’s employment at any time without Cause,
effective upon Employee’s receipt of written notice of such termination.  In the event Employee’s employment is
terminated by the Company without Cause (other than due to death or
Disability), Employee shall be entitled to:

(i)              the Accrued Obligations, which
shall be paid within thirty (30) days after the date of Employee’s termination
of employment;

(ii)             Employee’s Target Bonus for the
year in which Employee’s employment terminates, prorated through the date on
which Employee’s employment terminates;

(iii)            an amount equal to 1.5 times
Employee’s annual Base Salary then in effect, which, subject to Section 16,
shall be payable in monthly installments over the 18-month period following the
date of Employee’s termination of employment;

 8
 

 

(iv)            an amount equal to 1.5 times
Employee’s Annual Bonus, including any portion of such bonus deferred, for the
year preceding the year in which the termination of Employee’s employment
occurs (unless such termination occurs in 2006, in which case the Annual Bonus
used for such payment purposes will be equal to the Annual Bonus payable for
2006), which shall be payable in a lump sum within thirty (30) days after the
date of Employee’s termination of employment (or such later time as shall be
required under Section 16);

(v)             all vested Options and Restricted
Stock shall be treated in accordance with the terms of the Plan and the
applicable stock option agreement or restricted stock agreement;

(vi)            the Company shall pay the premiums
for Employee and his dependents of Employee’s group health insurance COBRA
continuation coverage for twelve months following the date of Employee’s
termination of employment, or, if earlier, until the date on which Employee
becomes eligible to receive comparable benefits from another employer; and

(vii)           for a period of twelve months
commencing on the date of termination of Employee’s employment, Employee shall
receive outplacement assistance services from an outplacement agency selected
by Employee and the Company shall pay all costs of such services; provided
that such costs shall not exceed $15,000 in the aggregate.

Notwithstanding the
foregoing, the payments and benefits described in subsections (ii) through
(vii) above shall immediately cease, and the Company shall have no further
obligations to Employee with respect thereto, in the event that Employee
breaches any provision of Section 10 or the Proprietary Information Agreement.

Following such
termination of Employee’s employment by the Company without Cause, except as
set forth in this Section 8(d), Employee shall have no further rights to any
compensation or any other benefits under this Agreement.

(e)           Termination
by Employee with Good Reason. 
Employee may terminate his employment with Good Reason by providing the
Company thirty (30) days’ written notice setting forth with reasonable
specificity the event that constitutes Good Reason, which written notice, to be
effective, must be provided to the Company within sixty (60) days after the
date on which Employee first becomes aware of the occurrence of such
event.  During such thirty (30) day
notice period, the Company shall have a cure right (if curable), and if not
cured within such period, Employee’s termination will be effective upon the
date immediately following the expiration of the thirty (30) day notice period,
and Employee shall be entitled to the same payments and benefits as provided in
Section 8(d) above for a termination without Cause, it being agreed that Employee’s
right to any such payments and benefits shall be subject to the same terms and
conditions as described in Section 8(d) above. 
Following such termination of Employee’s employment by Employee with
Good Reason, except as set forth in this Section 8(e), Employee shall have no
further rights to any compensation or any other benefits under this Agreement.

 9
 

 

(f)            Termination
by Employee without Good Reason. 
Employee may terminate his employment without Good Reason by providing
the Company thirty (30) days’ written notice of such termination.  In the event of a termination of employment
by Employee under this Section 8(f), Employee shall be entitled only to the
Accrued Obligations; provided, that the Options and Restricted Stock
shall remain subject to the terms and conditions of the Plan and the applicable
stock option agreement or restricted stock agreement.  In the event of termination of Employee’s
employment under this Section 8(f), the Company may, in its sole and absolute
discretion, by written notice accelerate such date of termination and still
have it treated as a termination without Good Reason.  Following such termination of Employee’s
employment by Employee without Good Reason, except as set forth in this Section
8(f), Employee shall have no further rights to any compensation or any other
benefits under this Agreement.

(g)           Change
in Control.  Notwithstanding anything
herein to the contrary, if the Company terminates Employee’s employment without
Cause or Employee resigns for Good Reason within one (1) month prior to or two
(2) years following a Change in Control, in lieu of any payments that Employee
would have been entitled to receive pursuant to Section 8(d) or Section 8(e)
herein, Employee shall be entitled to receive:

(i)            the Accrued Obligations, which shall
be paid within thirty (30) days after the date of Employee’s termination of
employment;

(ii)             Employee’s Target Bonus for the
year in which Employee’s employment terminates, prorated through the date on
which Employee’s employment terminates;

(iii)            a lump-sum cash payment in an amount
equal to (A) two (2) times Employee’s highest annual Base Salary in effect
during the 12-month period prior to the date of termination, plus (B) two (2)
times Employee’s highest annualized (for any fiscal year consisting of less
than 12 full months or with respect to which Employee has been employed by the
Company for less than 12 full months) Annual Bonus, paid or payable, including
by reason of any deferral, to Employee in respect of the five fiscal years of the
Company (or such portion thereof during which Employee performed services for
the Company if Employee shall have been employed by the Company for less than
such five fiscal year period) immediately preceding the fiscal year in which
the Change in Control occurs;

(iv)          immediate vesting of all outstanding
Options and Restricted Stock, and the extension of the option exercise period
for twenty-four (24) months;

(v)           for a period of eighteen (18) months,
commencing on the date of Employee’s termination of employment, the Company
shall continue to keep in full force and effect all policies of medical,
accident, disability and life insurance with respect to Employee and his
dependents with the same level of coverage, upon the same terms and otherwise
to the same extent as such policies shall have been in effect immediately prior
to the date of such termination and the Company shall pay all costs of the
continuation of such insurance coverage; and

 10
 

 

(vi)            for a period of twelve months
commencing on the date of termination of Employee’s employment, Employee shall
receive outplacement assistance services from an outplacement agency selected
by Employee and the Company shall pay all costs of such services; provided
that such costs shall not exceed $15,000 in the aggregate.

Following such
termination of Employee’s employment by the Company without Cause or by
Employee for Good Reason within one (1) month prior to or two years following a
Change in Control, except as set forth in this Section 8(g), Employee shall
have no further rights to any compensation or any other benefits under this
Agreement.

(h)           Release.  Notwithstanding any provision herein to the
contrary, the Company may require that, prior to payment of any amount or
provision of any benefit pursuant to subsections (d), (e) or (g) of this
Section 8 (other than the Accrued Obligations), Employee shall have executed a
general release in favor of the Company and its subsidiaries and related
parties in the form attached hereto as Exhibit B, and any waiting periods contained
in such release shall have expired.

Section 9.               Certain Additional
Payments by the Company.

(a)           Anything
in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company to or for the
benefit of Employee (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 9) (a “Payment”)
would be subject to the excise tax imposed by Section 4999 of the Code, or any
interest or penalties are incurred by Employee with respect to such excise tax
(such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then Employee
shall be entitled to receive an additional payment (a “Gross-Up Payment”)
in an amount such that after payment by Employee of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Employee
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments.  Notwithstanding the
foregoing provisions of this Section 9(a), if it shall be determined that
Employee is entitled to a Gross-Up Payment, but that Employee, after taking
into account the Payments and the Gross-Up Payment, would not receive a net
after-tax benefit (taking into account both income taxes and any Excise Tax)
which is at least ten percent (10%) greater than the net after-tax proceeds to
Employee resulting from an elimination of the Gross-Up Payment and a reduction
of the Payments, in the aggregate, to an amount (the “Reduced Amount”)
that is one dollar less than the smallest amount that would give rise to any
Excise Tax, then no Gross-Up Payment shall be made to Employee and the
Payments, in the aggregate, shall be reduced to the Reduced Amount.

(b)           Subject to the
provisions of Section 9(c), all determinations required to be made under this
Section 9, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving
at such determination, shall be made by the Company’s public accounting firm
(the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and Employee within 

 11
 

 

15 business
days of the receipt of notice from Employee that there has been a Payment, or
such earlier time as is requested by the Company.  In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change in Control, the Company and Employee shall jointly appoint another
nationally recognized public accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder).  All fees and
expenses of the Accounting Firm shall be borne solely by the Company.  Any Gross-Up Payment, as determined pursuant
to this Section 9, shall be paid by the Company to Employee within five days of
the receipt of the Accounting Firm’s determination.  If the Accounting Firm determines that no
Excise Tax is payable by Employee, it shall furnish Employee with a written
opinion that failure to report the Excise Tax on Employee’s applicable federal
income tax return would not result in the imposition of a negligence or similar
penalty.  Any determination by the
Accounting Firm shall be binding upon the Company and Employee.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder.  In the event that the Company exhausts its
remedies pursuant to Section 9(c) and Employee thereafter is required to make a
payment of any Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment shall be promptly
paid by the Company to or for the benefit of Employee.

(c)           Employee shall
notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of the Gross-Up
Payment.  Such notification shall be
given as soon as practicable but no later than 10 business days after Employee
is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be
paid.  Employee shall not pay such claim
prior to the expiration of the 30-day period following the date on which Employee
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If the Company notifies Employee in writing
prior to the expiration of such period that it desires to contest such claim,
Employee shall:

(i)            give the Company any information
reasonably requested by the Company relating to such claim,

(ii)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

(iii)          cooperate with the Company in good
faith in order effectively to contest such claim, and

(iv)          permit the Company to participate in
any proceedings relating to such claim;

 12
 

 

provided,
however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without
limitation on the foregoing provisions of this Section 9(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forgo any and all administrative appeals, proceedings,
hearings and conferences with the taxing authority in respect of such claim and
may, at its sole option, either direct Employee to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and Employee
agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided further, that if
the Company directs Employee to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to Employee on an
interest-free basis and shall indemnify and hold Employee harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with respect
to any imputed income with respect to such advance; and provided further,
that any extension of the statute of limitations relating to payment of taxes
for the taxable year of Employee with respect to which such contested amount is
claimed to be due is limited solely to such contested amount.  Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and Employee shall be entitled to settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority.

(d)           If,
after the receipt by Employee of an amount advanced by the Company pursuant to
Section 9(c), Employee becomes entitled to receive, and receives, any refund
with respect to such claim, Employee shall (subject to the Company’s complying
with the requirements of Section 9(c)) promptly pay to the Company the amount
of such refund (together with any interest paid or credited thereon after taxes
applicable thereto).  If, after the
receipt by Employee of an amount advanced by the Company pursuant to Section
9(c), a determination is made that Employee shall not be entitled to any refund
with respect to such claim and the Company does not notify Employee in writing of
its intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

(e)           If
the Excise Tax is ultimately determined by the Internal Revenue Service or the
Accounting Firm to be less than the amount taken into account in determining
the Gross-Up Payment paid pursuant to Section 9(a), Employee shall repay to the Company,
within thirty (30) days after the time that the amount of the reduction in
Excise Tax is so determined, the
portion of the Gross-Up Payment attributable to such reduction.

Section 10.             Restrictive Covenants.

Employee acknowledges and
agrees that (A) the agreements and covenants contained in this Section 10 are
(i) reasonable and valid in geographical and temporal scope and in all other
respects, and (ii) essential to protect the value of the Company’s business and
assets, 

 13
 

 

and (B) by his employment with the Company, Employee
will obtain knowledge, contacts, know-how, training and experience and there is
a substantial probability that such knowledge, know-how, contacts, training and
experience could be used to the substantial advantage of a competitor of the
Company and to the Company’s substantial detriment.  For purposes of this Section 10, references
to the Company shall be deemed to include its subsidiaries.

(a)           Confidential
Information.  At any time during and
after the end of Employee’s employment with the Company, without the prior
written consent of the Board, except to the extent required by an order of a
court having jurisdiction or under subpoena from an appropriate government
agency, in which event, Employee shall, to the extent legally permitted,
consult with the Board prior to responding to any such order or subpoena, and
except as he in good faith believes necessary or desirable in the performance
of his duties hereunder, Employee shall not disclose to or use for the benefit
of any third party any Confidential Information.

(b)           Non-Competition.  Employee covenants
and agrees that during the Restricted Period, Employee shall not, directly or
indirectly, individually or jointly, own any interest in, operate, join,
control or participate as a partner, director, principal, officer, or agent of,
enter into the employment of, act as a consultant to, or perform any services
for any Person (other than the Company), that engages in any Competitive
Activities within the Restricted Area. 
Notwithstanding anything herein to the contrary, this Section 10(b)
shall not prevent Employee from acquiring as an investment securities
representing not more than three percent (3%) of the outstanding voting
securities of any publicly-held corporation or from being a passive investor in
any mutual fund, hedge fund, private equity fund or similar pooled account so
long as Employee’s interest therein is less than three percent (3%) and he has
no role in selecting or managing investments thereof.

(c)           Non-Interference.  During the Restricted Period, Employee shall
not, directly or indirectly, for his own account or for the account of any
other Person, engage in Interfering Activities.

(d)           Return
of Documents.  In the event of the
termination of Employee’s employment for any reason, Employee shall deliver to
the Company all of (i) the property of the Company, and (ii) the documents and
data of any nature and in whatever medium of the Company, and he shall not take
with him any such property, documents or data or any reproduction thereof, or
any documents containing or pertaining to any Confidential Information.

(e)           Proprietary
Information Agreement. Immediately following the execution of this
Agreement, Employee shall execute the Proprietary Information Agreement.

(f)            Blue
Pencil.  If any court of competent
jurisdiction shall at any time deem the duration or the geographic scope of any
of the provisions of this Section 10 unenforceable, the other provisions of
this Section 10 shall nevertheless stand and the duration and/or geographic
scope set forth herein shall be deemed to be the longest period and/or greatest
size permissible by law under the circumstances, and the parties hereto agree
that such court shall reduce the time period and/or geographic scope to
permissible duration or size.

 14
 

 

(g)           Termination
of Non-Competition Covenant.  Section
10(b) of this Agreement shall terminate upon a Change in Control.

Section 11.             Breach of Restrictive
Covenants.

Without limiting the remedies available to the Company, Employee
acknowledges that a breach of any of the covenants contained in Section 10
hereof may result in material irreparable injury to the Company or its
subsidiaries for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of such a breach or threat thereof, the Company (or any subsidiary thereof, as
applicable) shall be entitled to obtain a temporary restraining order and/or a
preliminary or permanent injunction, without the necessity of proving
irreparable harm or injury as a result of such breach or threatened breach of
Section 10 hereof, restraining Employee from engaging in activities prohibited
by Section 10 hereof or such other relief as may be required specifically to
enforce any of the covenants in Section 10 hereof.  Notwithstanding any other provision to the
contrary, the Restricted Period shall be tolled during any period of violation
of any of the covenants in Section 10(b) or 10(c) hereof and during any other
period required for litigation during which the Company seeks to enforce such
covenants against Employee or another Person with whom Employee is affiliated
if it is ultimately determined that Employee was in breach of such covenants.

Section 12.             Representations and
Warranties of Employee.

Employee represents and
warrants to the Company that:

(a)           Employee’s
employment will not conflict with or result in his breach of any agreement to
which he is a party or otherwise may be bound;

(b)           Employee has not
violated, and in connection with his employment with the Company will not
violate, any non-solicitation, non-competition or other similar covenant or
agreement of a prior employer by which he is or may be bound; and

(c)           In connection with
Employee’s employment with the Company, he will not use any confidential or
proprietary information that he may have obtained in connection with employment
with any prior employer.

Section 13.             Taxes.

The Company may withhold
from any payments made under this Agreement all applicable taxes, including but
not limited to income, employment and social insurance taxes, as shall be
required by law.  Employee acknowledges
and represents that the Company has not provided any tax advice to him in
connection with this Agreement and that he has been advised by the Company to
seek tax advice from his own tax advisors regarding this Agreement and
payments that may be made to him pursuant to this Agreement,
including specifically, the application of the provisions of Section 409A of
the Code to such payments.

 15
 

 

Section 14.             Indemnification.

The Company covenants and
agrees that, to the fullest extent permitted by Delaware law, or the Company’s
Certificate of Incorporation or By-laws, it will indemnify and hold Employee
harmless from any and all liability, loss, damage, cost and expense (including
reasonable attorneys’ fees) which Employee may incur, suffer or be required to
pay.

Section 15.             Mitigation;
Set Off.  

The Company’s obligation
to pay Employee the amounts provided and to make the arrangements provided
hereunder shall not be subject to set-off, counterclaim or recoupment of
amounts owed by Employee to the Company or its Affiliates.  Employee shall not be required to mitigate
the amount of any payment provided for pursuant to this Agreement by seeking
other employment or otherwise and the amount of any payment provided for
pursuant to this Agreement shall not be reduced by any compensation earned as a
result of Employee’s other employment or otherwise.

Section 16.             Delay in Payment.

Notwithstanding any
provision in this Agreement to the contrary, any payment otherwise required to
be made hereunder to Employee at any date as a result of the termination of
Employee’s employment shall be delayed for such period of time as may be necessary
to meet the requirements of Section 409A(a)(2)(B)(i) of the Code.  On the earliest date on which such payments
can be made without violating the requirements of Section 409A(a)(2)(B)(i) of
the Code, there shall be paid to Employee, in a single cash lump sum, an amount
equal to the aggregate amount of all payments delayed pursuant to the preceding
sentence.

Section 17.             Successors
and Assigns; No Third-Party Beneficiaries.

(a)           The Company.
This Agreement shall inure to the benefit of and be enforceable by, and may be
assigned by the Company to, any purchaser of all or substantially all of the
Company’s business or assets or any successor to the Company (whether direct or
indirect, by purchase, merger, consolidation or otherwise).  The Company will require in a writing
delivered to Employee any such purchaser, successor or assignee to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such purchase,
succession or assignment had taken place. 
The Company may make no other assignment of this Agreement or its
obligations hereunder.

(b)           Employee.  Employee’s rights and obligations under this
Agreement shall not be transferable by Employee by assignment or otherwise,
without the prior written consent of the Company; provided, however,
that if Employee shall die, all amounts then payable to Employee hereunder
shall be paid in accordance with the terms of this Agreement to Employee’s
devisee, legatee or other designee or, if there be no such designee, to
Employee’s estate.

(c)           No Third-Party Beneficiaries.  Except as otherwise set forth in Section 8(b)
or Section 17(b) hereof, nothing expressed or referred to in this Agreement
will be construed to give any Person other than the Company and Employee any
legal or equitable right, remedy or claim under or with respect to this
Agreement or any provision of this Agreement.

 16
 

 

Section 18.             Waiver and
Amendments.

Any waiver, alteration,
amendment or modification of any of the terms of this Agreement shall be valid
only if made in writing and signed by each of the parties hereto; provided,
however, that any such waiver, alteration, amendment or modification is
consented to on the Company’s behalf by the Board.  No waiver by either of the parties hereto of
their rights hereunder shall be deemed to constitute a waiver with respect to
any subsequent occurrences or transactions hereunder unless such waiver
specifically states that it is to be construed as a continuing waiver.

Section 19.             Severability.

If any covenants or other
provisions of this Agreement are found to be invalid or unenforceable by a
final determination of a court of competent jurisdiction: (a) the remaining
terms and provisions hereof shall be unimpaired, and (b) the invalid or
unenforceable term or provision hereof shall be deemed replaced by a term or
provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision hereof.

Section 20.             Governing
Law, Personal Jurisdiction and Venue

THIS AGREEMENT AND ALL
DISPUTES RELATING TO THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS BY THE
LAWS OF THE STATE OF COLORADO AS SUCH LAWS ARE APPLIED TO AGREEMENTS BETWEEN
COLORADO RESIDENTS ENTERED INTO AND PERFORMED ENTIRELY IN COLORADO.  THE COMPANY AND EMPLOYEE AGREE THAT THIS
AGREEMENT CONSTITUTES THE MINIMUM CONTACTS TO ESTABLISH PERSONAL JURISDICTION
IN COLORADO AND AGREE TO COLORADO COURT’S EXERCISE OF PERSONAL JURISDICTION.  THE COMPANY AND EMPLOYEE FURTHER AGREE THAT
ANY DISPUTES RELATING TO THIS AGREEMENT SHALL BE BROUGHT IN THE COURTS LOCATED
IN THE STATE OF COLORADO.

Section 21.             Legal Fees.  Employee acknowledges that the Company has
paid the reasonable legal fees incurred by Employee in connection with the
negotiation of the terms of the Original Agreement to the extent required
pursuant to Section 21 of the Original Agreement.

Section 22.             Costs of
Enforcement.  If any contest
or dispute shall arise under this Agreement, each party hereto shall bear its
own legal fees and expenses, provided, however, that in the event
the Employee prevails with respect to a substantial aspect  of such contest or dispute, the Company shall
be required to reimburse the Employee for reasonable legal fees and expenses incurred
by him in connection therewith.

Section 23.             Notices.

(a)           Every notice or
other communication relating to this Agreement shall be in writing, and shall
be mailed to or delivered to the party for whom it is intended at such address
as may from time to time be designated by it in a notice mailed or delivered to
the other party as herein provided, provided that, unless and until some other
address be so designated, all notices 

 17
 

 

or
communications by Employee to the Company shall be mailed or delivered to the
Company at its principal executive office, and all notices or communications by
the Company to Employee may be given to Employee personally or may be mailed to
Employee at Employee’s last known address, as reflected in the Company’s
records.

(b)           Any notice so
addressed shall be deemed to be given: 
(i) if delivered by hand, on the date of such delivery; (ii) if mailed
by courier or by overnight mail, on the first business day following the date
of such mailing; and (iii) if mailed by registered or certified mail, on the
third business day after the date of such mailing.

Section 24.             Section
Headings.

The headings of the
sections and subsections of this Agreement are inserted for convenience only
and shall not be deemed to constitute a part thereof, affect the meaning or
interpretation of this Agreement or of any term or provision hereof.

Section 25.             Entire
Agreement.

This Agreement
constitutes the entire understanding and agreement of the parties hereto
regarding the employment of Employee. 
This Agreement supersedes all prior negotiations, discussions,
correspondence, communications, understandings and agreements between the
parties relating to the subject matter of this Agreement, including, without
limitation, the Original Agreement.

Section 26.             Survival of
Operative Sections.

Upon any termination of
Employee’s employment, the provisions of Section 8 through Section 27 of this
Agreement (together with any related definitions set forth in Section 1 hereof)
shall survive to the extent necessary to give effect to the provisions thereof.

Section 27.             Counterparts.

This Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an
original but all of which together shall constitute one and the same
instrument.  The execution of this
Agreement may be by actual or facsimile signature.

*              *              *

[Signatures to appear on the following page.]

 18
 

 

IN WITNESS WHEREOF, the
undersigned have executed this Amended and Restated Employment Agreement as of
the date first above written.

	
  

  	
  ALLOS THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Marc H. Graboyes

  
	
   

  	
  By:

  	
  Marc H. Graboyes

  
	
   

  	
  Title:

  	
  Vice President, General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  PAUL L. BERNS

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Paul L. Berns

  

 

 19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]