Document:

exv10w1

 

	 	 	 	 	 

Exhibit 10.1

THIRD AMENDMENT

TO

EMPLOYMENT AGREEMENT

THIS THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (this “ Amendment ”) is executed and delivered
effective February 28, 2008, by and between Endocare, Inc., a Delaware corporation (the“ Company ”), and Craig T. Davenport, an individual resident of the State of California
(“ Employee ”).

RECITALS

     WHEREAS, the Company and Employee previously executed and delivered an Employment Agreement,
dated December 15, 2003 (the “ Original Agreement ”); and

     WHEREAS, the Original Agreement was subsequently amended by the First Amendment, dated April
28, 2005, and the Second Amendment, dated September 19, 2007 (collectively, the “ Prior
Amendments ,” and together with the Original Agreement, the “ Employment Agreement ”); and

     WHEREAS, the Company and Employee now wish to amend the Employment Agreement as described
below;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Company and
Employee, intending to be legally bound, hereby agree as follows:

     1. Section 2(c) of the Employment Agreement is hereby amended to change the definition of
“Target Bonus” from eighty-five percent (85%) of the Base Salary to sixty-five percent (65%) of the
Base Salary.

     2. Except as provided above in this Amendment, all terms, covenants and conditions in the
Employment Agreement shall remain in full force and effect and shall not be affected by this
Amendment.

     3. This Amendment may be executed in one or more counterparts, each of which shall be deemed
an original and all of which shall be taken together shall deemed to be one instrument.

     IN WITNESS WHEREOF, the parties hereby execute and deliver this Third Amendment to Employment
Agreement as of the date first above written.

	 	 	 	 	 	 	 
	ENDOCARE, INC.	 	 	 	EMPLOYEE:
	 
	 	 	 	 
	By:

	 	/s/ Eric S. Kentor
	 	 	 	/s/ Craig T. Davenport
	 

	 	 
	 	 	 	 
	 

	 	Eric S. Kentor
	 	 	 	Craig T. Davenport
	 

	 	Compensation Committee Chairmanexv10w2

 

Exhibit 10.2

SUMMARY DESCRIPTION OF 2008 MICP

Purpose

Endocare’s 2008 Management Incentive Compensation Program (the “Program”) is a variable cash
incentive program designed to motivate participants to achieve specific annual performance
objectives and to reward them for their achievements when those objectives are met. Employees may
elect to receive all or a portion of their incentive awards in the form of deferred stock units,
instead of cash, under Endocare’s Employee Deferred Stock Unit Program.

Eligibility

Participants are approved solely at the discretion of the Compensation Committee of Endocare’s
Board of Directors (the “Compensation Committee”). Executive officers, vice presidents and
department directors are eligible to be considered for participation in 2008. The Compensation
Committee in its sole discretion may permit other employees to participate.

Administration

The Compensation Committee is ultimately responsible for administering the Program. The
Compensation Committee has all powers and discretion necessary or appropriate to review and approve
the Program and its operation, including, but not limited to, the power to (a) determine which
eligible participants shall be granted incentive awards, (b) prescribe the terms and conditions of
incentive awards, (c) interpret the Program, (d) adopt rules for the administration, interpretation
and application of the Program, and (e) interpret, amend or revoke any such rules. All
determinations and decisions made by the Compensation Committee and any delegate of the
Compensation Committee shall be final, conclusive and binding on all persons, and shall be given
the maximum deference permitted by law. The Compensation Committee, in its sole discretion and on
such terms and conditions as it may provide, may delegate all or part of its authority and powers
under the Program to one or more directors and/or officers. The Compensation Committee in its sole
discretion may amend or terminate the Program, or any part thereof, at any time and for any reason.

Award Determination

Incentives will be calculated using a formula based on (a) the participant’s salary, (b) the
participant’s target incentive, and (c) the aggregate percentage achievement relative to the
performance objectives.

Each participant’s target incentive is a percentage of the participant’s base salary earned in
2008. This percentage is determined by the Compensation Committee in its sole discretion based on
each participant’s position and related responsibilities, except where a participant’s employment
agreement or offer letter specifies such percentage (in which case such specified percentage is
used, unless otherwise determined by the Compensation Committee in its sole discretion).

All participants have the same two performance objectives under the Program, consisting of one
corporate objective relating to revenues (weighted 50%) and one corporate objective relating to
profitability (weighted 50%), in each case as approved by the Compensation Committee in its sole
discretion.

The 2008 MICP caps the amount that may be earned through overachievement of the revenue objective
by establishing a maximum achievement percentage of 125% for the revenue objective. The 2008 MICP
does not permit any additional amounts to be earned by overachieving the profitability objective.

For purposes of determining achievement under the 2008 MICP, the Compensation Committee has the
authority to exclude the financial effects of any of the following transactions (proposed or
consummated) that the Compensation Committee determines should be so excluded: (a) any acquisitions
by Endocare of

 

other companies or product lines; (b) any arrangements involving license grants by or to Endocare
that are outside of the ordinary course of business; and (c) any other transactions that are
outside of the ordinary course of business.

Award Payouts

Unless otherwise determined by the Compensation Committee in its sole discretion, award payouts
will occur in the first quarter of 2009. Actual incentives payable, if any, depend on the amount
by which each performance objective is exceeded or missed and will be determined by the
Compensation Committee in its sole discretion. A participant shall have no right to any award
until that award is actually paid to such participant.

General Provisions

Awards are subject to all withholding taxes and other required deductions. The Program does not
constitute a guarantee of employment nor does it restrict Endocare’s right to terminate any
participant’s employment at any time for any reason. The Compensation Committee in its sole
discretion may modify or terminate the Program at any time, prospectively or retroactively, without
notice or obligation. In addition, there is no obligation to extend the Program or establish a
replacement program in subsequent years. The Program shall not be funded in any way. Endocare
shall not be required to establish any special or separate fund or to make any other segregation of
assets to assure the payment of awards. To the extent any person acquires a right to receive
payment under the Program, such right will be no greater than the right of a general unsecured
creditor of Endocare. To the extent not preempted by federal law, the Program shall be construed
in accordance with, and governed by, the laws of the State of California without giving effect to
any conflict of laws principles that would apply the laws of any other jurisdiction.exv10w3

 

Exhibit 10.3

AMENDMENT NO. 1

TO

AMENDED AND RESTATED BYLAWS

OF

ENDOCARE, INC.

     Pursuant to a resolution of the Board of Directors of Endocare, Inc., a Delaware corporation
(the “Corporation”), adopted at a meeting duly called and held on February 28, 2008,
Article VI of the Bylaws of the Corporation was amended and restated, to read as follows:

ARTICLE VI

CERTIFICATES OF STOCK

     Section 1. Certificates of Stock; Uncertificated Shares. The shares of the
corporation shall be represented by a certificate, provided that the board of directors of the
corporation may provide by resolution or resolutions that some or all of any or all classes or
series of the corporation’s stock shall be uncertificated shares. Every holder of stock in the
corporation represented by certificates shall be entitled to have a certificate, signed by, or in
the name of the corporation by, the Chairman or Vice Chairman of the Board of Directors, or the
Chief Executive Officer or the President or a Vice President and the Chief Financial Officer or an
Assistant Chief Financial Officer, or the Secretary or an Assistant Secretary of the corporation,
certifying the number of shares owned by him or her in the corporation.

     Certificates may be issued for partly paid shares and in such case upon the face or back of
the certificates issued to represent any such partly paid shares, the total amount of the
consideration to be paid therefor, and the amount paid thereon shall be specified. In the case of
uncertificated partly paid shares, such amounts shall be recorded upon the books and records of the
corporation.

     If the corporation shall be authorized to issue more than one class of stock or more than one
series of any class, the powers, designations, preferences and relative, participating, optional or
other special rights of each class of stock or series thereof and the qualifications, limitations
or restrictions of such preferences and/or rights shall be set forth in full or summarized on the
face or back of the certificate which the corporation shall issue to represent such class or series
of stock, provided that, except as otherwise provided in Section 202 of the General Corporation Law
of Delaware, in lieu of the foregoing requirements, there may be set forth on the face or back of
the certificate which the corporation shall issue to represent such class or series of stock, a
statement that the corporation will furnish without charge to each stockholder who so requests the
powers, designations, preferences and relative, participating, optional or other special rights of
each class of stock or series thereof and the qualifications, limitations or restrictions of such
preferences and/or rights. Upon the issuance of uncertificated shares, within a reasonable time
after the issuance or transfer of uncertificated shares, the corporation shall send to the
registered owner thereof a written notice containing the information required to be set forth or
stated on certificates pursuant to this Section 1 or as otherwise provided in the General
Corporation Law of Delaware. Except as otherwise expressly provided by law, the rights and
obligations of the holders of uncertificated shares and the rights and obligations of the holders
of certificates representing stock of the same class and series shall be identical.

     Section 2. Execution of Certificates. Any or all of the signatures on the
certificate may be facsimile. In case any officer, transfer agent or registrar who has signed or
whose facsimile signature has been placed upon a certificate shall have ceased to be such officer,
transfer agent or registrar before such certificate is issued, it may be issued by the corporation
with the same effect as if he or she were such officer, transfer agent or registrar at the date of
issue.

 

     Section 3. Lost Certificates. The Board of Directors may direct a new certificate or
certificates or uncertificated shares to be issued in place of any certificate or certificates
theretofore issued by the corporation alleged to have been lost, stolen or destroyed, upon the
making of an affidavit of that fact by the person claiming the certificate of stock to be lost,
stolen or destroyed. When authorizing such issue of a new certificate or certificates or
uncertificated shares, the Board of Directors may, in its discretion and as a condition precedent
to the issuance thereof, require the owner of such lost, stolen or destroyed certificate or
certificates, or the owner’s legal representative, to advertise the same in such manner as it shall
require and/or to give the corporation a bond in such sum as it may direct as indemnity against any
claim that may be made against the corporation with respect to the certificate alleged to have been
lost, stolen or destroyed.

     Section 4. Transfer of Stock. Upon surrender to the corporation or the transfer
agent of the corporation of a certificate for shares duly endorsed or accompanied by proper
evidence of succession, assignation or authority to transfer, it shall be the duty of the
corporation to issue a new certificate or uncertificated shares to the person entitled thereto,
cancel the old certificate and record the transaction upon its books. Upon the receipt of proper
transfer instructions from the registered owner of uncertificated shares, such uncertificated
shares shall be cancelled, issuance of new equivalent uncertificated shares or certificated shares
shall be made to the stockholder entitled thereto, and the transaction shall be recorded upon the
books of the corporation.

     Section 5. Fixing Record Date. In order that the corporation may determine the
stockholders entitled to notice of or to vote at any meeting of stockholder or any adjournment
thereof, or entitled to receive payment of any dividend or other distribution or allotment of any
rights, or entitled to exercise any rights in respect of any change, conversion or exchange of
stock or for the purpose of any other lawful action, the Board of Directors may fix, in advance, a
record date, which shall not be more than sixty (60) nor less than ten (10) days before the date of
such meeting, nor more than sixty (60) days prior to any other action. A determination of
stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to
any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record
date for the adjourned meeting.

     Section 6. Registered Stockholders. The corporation shall be entitled to recognize
the exclusive right of a person registered on its books as the owner of shares to receive
dividends, and to vote as such owner, and to hold liable for calls and assessments a person
registered on its books as the owner of shares and shall not be bound to recognize any equitable or
other claim to or interest in such share or shares on the part of any other person, whether or not
it shall have express or other notice thereof, except as otherwise provided by the laws of
Delaware.

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