Document:

Independent
Directors’ Compensation Agreement

 

This
agreement (this “Agreement”) is dated as of June 30, 2015 by and among each of George W. Bickerstaff (“Bickerstaff”)
and Terence A. Kelly, Ph.D. (“Kelly” and, together with Bickerstaff, each a “Director” and,
collectively, the “Directors”) and CARDAX, INC., a Delaware corporation (the “Company”).

 

WHEREAS,
each of the Directors is an independent director of the Company;

 

WHEREAS,
there are, as of the date of this Agreement, no other independent directors of the Company;

 

WHEREAS,
the Company desires to provide appropriate and fair compensation to each Director for providing services to the Company as a member
of the board of directors (the “Board”) of the Company or acting in a similar capacity for a subsidiary of
the Company and for service to committees of the Board;

 

WHEREAS,
the existing compensation for each Director was for the period that expired on May 31, 2015;

 

NOW
THEREFORE, for good and valuation consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this
Agreement (each, a “Party” and, collectively, the “Parties”) hereby agrees as follows:

 

1. Compensation
Amount. Each Director shall receive compensation at an annual rate equal to $100,000 for the period from June 30, 2015 to
and including June 30, 2016. The compensation shall accrue and be payable quarterly in arrears, as of the last day of each calendar
quarter, for so long as such Director serves in such capacity or, if earlier, until his earlier death or separation or removal
from the Board. Any compensation for any portion of a calendar quarter shall be paid on a pro rated basis based on the number
of days that such Director held such office. Any death or separation or removal of a Director from the Board shall not affect
the compensation or rights of the other Director.

 

2. Form
of Compensation. All such compensation shall be paid to each Director in equity of the Company in the form of a grant of shares
of common stock, par value $0.001 per share (“Common Stock”) or non-qualified stock options (“Options”)
under the Company’s 2014 Equity Compensation Plan, as amended or supplemented (the “Plan”) as follows:

 

2.1.
A Director shall provide a notice to the Company of his election to receive a grant of shares of Common Stock or Options not later
than the business day that is at the end of the applicable calendar quarter or such other time as mutually agreed by the Company
and such Director. If a notice is not duly and timely received from a Director, then such Director shall be deemed to have elected
to receive the compensation for such quarter in Options.

 

2.2.
If a Director elects to receive compensation for any quarterly period in a grant of Common Stock, then the number of shares that
shall be issued will equal the amount payable during such quarter (i.e., $25,000) divided by the volume weighted average closing
price of the Common Stock (“VWAP”) for the 20 trading days ending on the last trading day of such quarter.

 

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2.3.
If a Director elects (or is deemed to have elected) to receive compensation for any quarterly period by the grant of Options,
then

 

2.3.1.
The number of shares of Common Stock that may be purchased by such Option shall be determined so that the Quarterly Value as of
the end of such quarter of such Options is equal to the amount payable for such quarter (i.e., $25,000); and

 

2.3.2.
The initial exercise price for such Options will be the closing price of the Common Stock as of the end of the applicable quarter,
which shall be the date that any such Options are granted; provided, that if such closing price is 90% or less of the closing
price of the immediately prior trading date, then the initial exercise price shall be the greater of (x) the closing price as
of the end of such quarter or (y) the VWAP for the 5 trading days ending on the last trading day of such quarter.

 

2.4.
For the purposes of this Agreement, the term “Quarterly Value” shall mean the value as of the end of the applicable
quarter using the 20 day VWAP as of the end of such quarter. The value of the Options will be determined by the Company using
a Black Scholes model for such VWAP for the 20 trading days ending on the last trading day of the applicable quarter with such
other factors as are appropriate to accurately calculate the value of the Options as of the end of quarter.

 

2.5.
Options that are granted under this Section 2 shall be fully vested, have the same anti-dilution protection as provided in the
Company’s Class A Warrants and have a 5 year term from the last day of the applicable quarter.

 

3. Additional
Compensation.

 

3.1.
In addition to the compensation described in Section 2 of this Agreement, each Director shall receive 55,556 shares of Common
Stock for compensation during June, 2015.

 

4. Withholding
Obligations. The Company may deduct from amounts otherwise owed to a Director any amounts that the Company is required to
withhold under applicable income tax laws.

 

5. Entire
Agreement; Non-Waiver. 

 

5.1.
This Agreement supersedes and terminates all prior agreements between any of the parties hereto with respect to the subject matter
contained in this Agreement, and this Agreement embodies the entire understanding between the parties relating to such subject
matter, and any and all prior correspondence, conversations and memoranda are merged in this Agreement and shall be without effect
hereon. This Agreement is solely with respect to the compensation for the annual period ending June 30, 2016 and no other right
or obligation of any of the Parties with respect to a Director’s service to the Company or any other capacity is affected
by this Agreement.

 

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5.2.
No delay on the part of any party in exercising any right under this Agreement shall operate as a waiver thereof, nor shall any
waiver, express or implied, by any party of any right under this Agreement or of any failure to perform or breach of this Agreement
by any other party constitute or be deemed a waiver of any other right under this Agreement or of any other failure to perform
or breach of this Agreement by the same or any other Party, whether of a similar or dissimilar nature thereof.

 

6. Governing
Law. This Agreement shall be governed by and construed in accordance with the substantive laws of the State of Delaware governing
agreements made wholly within the State of Delaware.

 

7. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which shall together
constitute one agreement.

 

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

 

	 	COMPANY:
	 	 
	 	Cardax,
    Inc.
	 	 
	 	By:	/s/
    Nicholas Mitsakos
	 	Name:	Nicholas Mitsakos
	 	Title:	Executive Chairman

 

	 	THE
    DIRECTORS:
	 	 
	 	/s/
    George W. Bickerstaff
	 	George W. Bickerstaff,
    Individually
	 	 
	 	/s/ Terence A. Kelly
	 	Terence A. Kelly, Ph.D., Individually

 

    	4EXHIBIT 10.3

 

Supplement
to Senior Executive Employment Agreement

David
G. Watumull

 

This
supplement (this “Supplement”) is dated as of June 30, 2015.

 

Reference
is hereby made to that certain EMPLOYMENT AGREEMENT (the “Agreement”) that was made as of February 7, 2014
by and between CARDAX, INC., a Delaware corporation (the “Company”), and David G. Watumull, an individual (the
“Employee”). Capitalized terms used in this Supplement that are not otherwise defined in this Supplement shall
have the respective meanings ascribed thereto in the Agreement.

 

For
good and valuable consideration, the receipt and sufficiency is hereby acknowledged, the parties to the Agreement hereby agree
to amend and supplement the Agreement as provided in this Supplement.

 

1.
Cash Compensation.

 

1.1
Effective April 1, 2015, Section 2.1 of the Agreement is amended to reduce the Annual Payment (which is the annual cash compensation)
from $450,000 to $225,000 and shall read in its entirety as follows:

 

2.1
Annual Compensation. From and after April 1, 2015 until termination of the Employee’s employment hereunder in accordance
with Section 3, the Company shall pay to the Employee a fixed base salary at an annual rate of $225,000 (the “Annual
Payment”). Subject to Section 2.8, the Annual Payment shall be paid to the Employee in accordance with the normal payroll
practices of the Company as in effect from time to time. The amount of the Annual Payment may be increased, in the sole discretion
of the Company, to be effective upon any renewal of the term of this Agreement.

 

1.2
Section 2.2 is amended to provide a targeted annual bonus and the following shall be added at the end of such provision:

 

The
Employee will be entitled to receive a targeted annual cash bonus equal to 50% of the then effective Annual Payment if the Company
has earned operating revenues for the 12 month period ending March 31, 2016 of at least $100,000 as conclusively evidenced by
the Company’s financial statements that the Board determines, in good faith, as likely to be normal recurring operating
revenues. Such targeted annual cash bonus would be paid in a lump sum in the month following such annual period.

 

1.3
Effective April 1, 2015, the following shall be added to the end of Section 2 as a new Section 2.8:

 

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2.8
Payment in Stock or Grant of Options.

 

2.8.1
Notwithstanding the obligations under Section 2.1, the Company shall have the right and option to pay and discharge its obligations
for the Annual Payment that accrues during any fiscal quarter commencing after June 30, 2015 that has not been paid
by cash if, in the determination of the Board, the Company does not have sufficient cash resources to pay such amounts in cash
when due. The amount that as of the end of any fiscal quarter is due and payable and has not been paid in cash shall be paid by
the Company issuing common stock, par value $0.001 per share (“Common Stock”) at the Quarterly Value or granting
incentive stock options to purchase Common Stock or, in the discretion of the Employee, nonqualified stock options to purchase
Common Stock so that the number of shares or options, valued at the Quarterly Value, is equal to the unpaid cash amount as of
such quarter.

 

2.8.2.
The initial exercise price for such options will be the closing price of the Common Stock as of the end of the applicable quarter,
which shall be the date that any such options are granted; provided, that if such closing price is 90% or less of the closing
price of the immediately prior trading date, then the initial exercise price shall be the greater of (x) the closing price as
of the end of such quarter or (y) the 5 day volume weighted average closing price (“VWAP”) for the 5 trading days
ending on the last trading day of such quarter.

 

2.8.3
For the purposes of this Agreement, the term “Quarterly Value” shall mean the value as of the end of the applicable
quarter using the 20 day VWAP as of the end of such quarter. The value of stock options will be determined by the Company using
a Black Scholes model for such 20 day VWAP with such other factors as are appropriate to accurately calculate the value of the
stock options as of the end of quarter.

 

2.8.4
Stock options that are granted under this Section 2.8 shall be fully vested, have the same anti-dilution protection as provided
in the Company’s Class A Warrants and have a 5 year term; provided that if the employment of the Employee is separated,
then right of the Employee to exercise all incentive stock options shall expire within 90 days of such separation if, and to the
extent that, such accelerated exercise period is required to maintain incentive stock option treatment of such options.

 

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2.
Payment of 2015 Arrears.

 

2.1
The amount of the accrued and unpaid Annual Amount of the Employee for the first quarter of 2015 is equal to $98,385. Such amount
shall be discharged in full by the Company granting the Employee an incentive stock option to purchase 468,498 shares of Common
Stock with an initial exercise price equal to $0.32 per share. Such option shall be fully vested, have the same anti-dilution
protection as provided in the Company’s Class A Warrants and have a 5 year term; provided that if the employment
of the Employee is separated, then right of the Employee to exercise all incentive stock options shall expire within 90 days of
such separation if, and to the extent that, such accelerated exercise period is required to maintain incentive stock option treatment
of such options.

 

2.2
The amount of the accrued and unpaid Annual Amount of the Employee for the second quarter of 2015 is equal to $50,789. Such amount
shall be discharged in full by the Company granting the Employee an incentive stock option to purchase 390,686 shares of Common
Stock with an initial exercise price equal to $0.20 per share. Such option shall be fully vested, have the same anti-dilution
protection as provided in the Company’s Class A Warrants and have a 5 year term; provided that if the employment
of the Employee is separated, then right of the Employee to exercise all incentive stock options shall expire within 90 days of
such separation if, and to the extent that, such accelerated exercise period is required to maintain incentive stock option treatment
of such options.

 

3.
Ratification and Release.

 

3.1
The terms and conditions of the Agreement as modified by this Supplement are acknowledged and agreed to be in full force and effect.

 

3.2
Employee hereby waives all payment defaults that are the subject of this Agreement, and any rights related thereto.

 

4.
Certain Other Provisions.

 

4.1
The provisions of Sections 18, 19, 20, 21, 22, and 23 of the Agreement are hereby incorporated into this Supplement as if fully
stated herein.

 

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IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Supplement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	Cardax,
    Inc., a Delaware corporation
	 	 
	 	By:	/s/
    Nicholas Mitsakos
	 	Name:	Nicholas Mitsakos
	 	Title:	Executive Chairman

 

	 	EMPLOYEE:
	 	 
	 	/s/
    David G. Watumull
	 	David G. Watumull,
    Individually

 

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