Modification to Peter Lund Offer Letter – Deferred Bonus Agreement between Dreamlife, Inc. and Peter Lund

Summary

This agreement modifies the original offer letter between Dreamlife, Inc. and Peter Lund regarding a $3 million deferred bonus. The bonus is fully vested and will be paid in installments, with the payment schedule depending on whether Dreamlife raises $8 million in new capital. If the capital is raised, the bonus is paid over three years; if not, it is paid over five years, with possible acceleration if the capital is later raised. If Peter Lund is terminated without cause before full payment, the remaining bonus is paid within three months. The agreement is acknowledged by Dreamlife, Peter Lund, and Discovery Toys, Inc.

EX-10.1 8 a2055357zex-10_1.txt EXHIBIT 10.1 EXHIBIT 10.1 MODIFICATION TO PETER LUND OFFER LETTER DEFERRED BONUS Paragraph C ("Deferred Bonus") of the July 24, 2000 Offer Letter is deleted and replaced with the following: The three million dollar ($3,000,000) bonus called for in the Offer Letter is fully vested and will be paid as follows: 1. If Dreamlife is successful in raising $8 million in new capital (including, without limitation, convertible debt), the $3 million bonus payment will be made in three equal payments of $1 million each in July 2003, 2004 and 2005. 2. If Dreamlife is not successful in raising $8 million of new capital, the $3 million bonus payment will be made in 5 equal payments of $600,000 each in July 2003, 2004, 2005, 2006 and 2007; provided, however, that if Dreamlife is successful in raising $8 million of new capital after payments have begun to be made to you pursuant to this paragraph 2, payments will be accelerated to coincide with the schedule provided for in paragraph 1. 3. The unpaid portion of the Deferred Bonus will be paid within three months of your termination if you are terminated by the company other than for cause (as such term is defined in the Plan) prior to having received payments totaling $3 million. DREAMLIFE, INC. By: /s/ Peter A. Lund ---------------------------- Peter A. Lund Chief Executive Officer Agreed to and accepted by: /s/ Peter A. Lund July 18, 2001 - ---------------------------- ------------- Peter Lund date Chief Executive Officer Dreamlife, Inc. Acknowledged and accepted by: /s/ Julius Koppelman 7/17/01 - ---------------------------- ------------- Julius Koppelman date Chairman of the Board Discovery Toys, Inc.