**Exhibit10.96**

**COMPROMISE,SETTLEMENT, AND RELEASE AGREEMENT**

This Compromise,Settlement, and Release Agreement (**“Agreement”**)is made and entered into by and among CRDENTIA CORP., a Delaware corporation (**“Crdentia”**); CRDE CORP, a Delawarecorporation (**“CRDE”**); ARIZONA HOMEHEALTH CARE/PRIVATE DUTY, INC., an Arizona corporation (**“Arizona Home Health”**); WILLIAM “BILL” W.CROCKER (**“B. Crocker”**); andWILLIAM “CAMP” C. CROCKER (**“C. Crocker”**)(B.Crocker and C. Crocker are sometimes collectively referred to herein as the **“Crockers”**)(Crdentia, CRDE, Arizona HomeHealth, B. Crocker, and C. Crocker are sometimes referred to hereincollectively as the **“Parties”** orsingularly as a **“Party”**), and iseffective as of March 29, 2007 (the **“EffectiveDate”**).

**I.**

**RECITALS**

**WHEREAS,**on or about August 26, 2004, Crdentia, CRDE, AHHC AcquisitionCorporation (a wholly-owned subsidiary of CRDE), Arizona Home Health, B.Crocker, and C. Crocker entered into an Agreement and Plan of Reorganization(the **“Acquisition Agreement”**) andrelated agreements, including a Receivables Allocation Agreement (the **“Allocation Agreement”**);

**WHEREAS,**pursuant to the Acquisition Agreement, AHHC AcquisitionCorporation merged with and into Arizona Home Health such that Arizona HomeHealth remained as the surviving corporation and became a wholly-ownedsubsidiary of CRDE and thus part of the corporate umbrella of Crdentia;

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**WHEREAS,**on or about February 23, 2006, B. Crocker instituted a legalproceeding styled *William C. Crocker v.**Crdentia Corp. and Arizona HomeHealthCare/Private Duty, Inc.*Civil Action No. 06C-02-226 SCD;pending in the Superior Court of the State of Delaware in and for New CastleCounty (the **“Lawsuit”**), whereinB. Crocker asserted claims against Crdentia and Arizona Home Health for,among other things, breach of contract, declaratory relief, and conversionarising out of the Acquisition Agreement and the Allocation Agreement;

**WHEREAS,**on or about May 8, 2006, Crdentia, Arizona Home Health, andCRDE (as intervenor) filed their counterclaim in the Lawsuit, asserting claimsagainst the Crockers for, among other things, fraud, indemnity, and declaratoryrelief arising out of the Acquisition Agreement and the Allocation Agreement;

**WHEREAS,**the Parties desire to avoid the additional cost, time, effort,and uncertainties that would result from litigating their respective positionsand desire to enter into a settlement and complete and final release regardingthe Lawsuit and all other matters between them;

**WHEREAS,**the Parties have agreed on all of the terms of this Agreementthrough extensive arms-length negotiations between the Parties and/or theircounsel; and

**NOWTHEREFORE,**in consideration of the mutual covenants,representations, warranties, and agreements undertaken herein, and other goodand valuable consideration, the sufficiency of which is hereby mutuallyacknowledged, the Parties agree as follows:

**II.**

**TRANSFEROF CRDENTIA COMMON STOCK TO THE CROCKERS**

1.         Within ten (10) days ofthe Effective Date, Crdentia shall issue the Crockers a total of 312,500 fullypaid, non-assessable shares (156,250 shares to each of B. Crocker and C.Crocker) of Crdentia common stock (the **“Shares”**).Crdentia represents and warrants to the

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Crockers that theissuance of such Shares has been duly authorized by all appropriate corporateaction of Crdentia.

2.         InvestmentRepresentations:

(a)                     ThisAgreement is made in reliance upon the Crockers’ representation to Crdentia,which by their acceptance hereof the Crockers hereby confirm, that the Shareswill be acquired for investment for their own account, not as a nominee oragent, and not with a view to the sale or distribution of any part thereof, andthat the Crockers have no present intention of selling, granting participationin, or otherwise distributing the same. The Crockers also represent and warrantthat they have sufficient business and financial experience to enable them toprotect their own interests in connection with the issuance of the Shareshereunder.

(b)                    Each of theCrockers is an “accredited investor” as defined in Rule 501 under theSecurities Act of 1933, as amended (the “Act”). Each of the Crockers believesthat he has received all the information he considers necessary or appropriatefor deciding whether to accept the Shares. The Crockers further represent thatthey have had an opportunity to ask questions and receive answers from Crdentiaregarding the business, properties, prospects and financial condition ofCrdentia.

(c)                     The Crockersunderstand that the Shares they are accepting hereunder are characterized as “restrictedsecurities” under the federal securities laws inasmuch as they are beingacquired from Crdentia in a transaction not

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involving a publicoffering and that under such laws and applicable regulations such securitiesmay be resold without registration under the Act only in certain limitedcircumstances. In this connection, the Crockers represent that they arefamiliar with SEC Rule 144, as presently in effect, and understand the resalelimitations imposed thereby and by the Act. The Crockers understand that theShares have not been registered under the Act and have not been registered orqualified in any state in which they are offered, and thus the Crockers willnot be able to resell or otherwise transfer the Shares unless they are registeredunder the Act, or qualified under applicable state securities laws, or anexemption from such registration or qualification is available.

(d)                    Itis understood that the certificate(s) evidencing the Shares shall bear thefollowing legend:

**“THESESECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, ASAMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THEABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIESUNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCHREGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO SECURITIES AND EXCHANGECOMMISSION RULE 144 PROMULGATED UNDER SUCH ACT.”**

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3.         The Crockers representand warrant to Crdentia that, in electing to accept the Shares, they haverelied solely on publicly available information regarding Crdentia and thatCrdentia has not provided them with any non-public information or made anyrepresentations or warranties whatsoever regarding Crdentia’s business or thevalue of the Shares.

**III.**

**DESIGNATEDRECEIVABLES**

4.         The Crockers herebyassign to Crdentia and/or Arizona Home Health all of their right, title, andinterest, if any, in and to the Designated Receivables (as defined in theAllocation Agreement), including but not limited to any and all receivableslisted on the exhibit attached hereto as **Exhibit“A.”**

5.         The Crockers agree thatany monies previously collected by Crdentia and/or Arizona Home Health and notpreviously remitted to the Shareholder Representative (as defined in theAllocation Agreement) in respect of the Designated Receivables shall remain thesole property of Crdentia and/or Arizona Home Health, and the Crockers agreethat they shall have no rights whatsoever to such monies. Further, the Crockersagree that any monies collected by Crdentia and/or Arizona Home Health inrespect of the Designated Receivable in the future shall be the sole propertyof Crdentia and/or Arizona Home Health, and the Crockers agree that they shallhave no rights whatsoever to such monies.

6.         The Crockers agree thatCrdentia and/or Arizona Home Health shall have no further obligations to theCrockers under’ the Allocation Agreement.

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**IV.**

**MUTUALGENERAL RELEASES**

7.         For and in considerationof the terms set forth herein, B. Crocker and C. Crocker on behalf ofthemselves and their predecessors, successors, corporations, partners, jointventurers, partnerships, affiliates, representatives, agents, attorneys,employees, spouses, insurers, assigns, beneficiaries, and related entities, herebyfully and forever GENERALLY RELEASE, ACQUIT, DISCHARGE, DISCLAIM, and RENOUNCEany and all claims, demands, damages, actions, causes of action, and/or suitsof whatever nature, in law or equity, statutory, common law, or otherwise, thatthey have, might have, or ever had, known and realized or unknown and notrealized, that are based in whole or in part on any conduct, fact, matter, act,omission, cause, transaction, or thing whatsoever, occurring from the beginningof time through the Effective Date of this Agreement, against Crdentia, CRDE,and/or Arizona Home Health, and/or any of their past, present, and futureparent entities, affiliates, subsidiaries, shareholders, officers, directors,partners, partnerships, fiduciaries, trustees, employees, agents, insurers,predecessors, successors, assigns, attorneys, spouses, administrators, andrelated entities, including but not limited to any matters that are based on,arise out of, or are in any way related to or connected with the allegations inthe Lawsuit, the Acquisition Agreement, or the Allocation Agreement.Notwithstanding anything to the contrary herein, this release does not releasethe obligations of the Parties set forth in this Agreement.

8.         For and in considerationof the terms set forth herein, Crdentia, CRDE, and Arizona Home Health, onbehalf of themselves and their predecessors, successors, corporations, parents,subsidiaries, members, partners, joint venturers, partnerships, affiliates,representatives, agents, attorneys, employees, officers, directors, insurers,assigns, and beneficiaries, hereby fully

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and forever GENERALLYRELEASE, ACQUIT, DISCHARGE, DISCLAIM, and RENOUNCE any and all claims, demands,damages, actions, causes of action, and/or suits of whatever nature, in law orequity, statutory, common law, or otherwise, that they have, might have, orever had, known and realized or unknown and not realized, that are based inwhole or in part on any conduct, fact, matter, act, omission, cause,transaction, or thing whatsoever, occurring from the beginning of time throughthe Effective Date of this Agreement, against B. Crocker and/or C. Crockerand/or any of their past, present, and future predecessors, successors,corporations, partners, joint ventures, partnerships, affiliates, representatives,agents, attorneys, employees, spouses, insurers, assigns, beneficiaries, andrelated entities, including but not limited to any matters that are based on,arise out of, or are in any way related to or connected with the allegations inthe Lawsuit, Acquisition Agreement, or the Allocation Agreement.Notwithstanding anything to the contrary herein, this release does not releasethe obligations of the Parties set forth in this Agreement.

**V.**

**DISMISSALOF LAWSUIT**

9.         Upon receipt by theCrockers of the certificates representing the Shares, the Parties shallimmediately file a joint motion to dismiss the Lawsuit with prejudice andrequest the Court to execute an order regarding the same that provides that theLawsuit is dismissed with prejudice and that all costs of court shall be taxedagainst the party incurring same. Counsel for the Crockers will draft and filesuch the motion and order with the Court.

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**VI.**

**ADDITIONALPROVISIONS**

10.       The Parties represent andwarrant that they have been duly authorized by all requisite action (viashareholder, board and/or court approval or otherwise, as necessary) to executeand enter into this Agreement and that the persons executing this Agreementhave the full power, capacity, and authority to execute this Agreement on behalfof any Party so indicated.

11.       The Parties represent andwarrant that they have not assigned or transferred any of the rights, claims,or causes of action that are being released pursuant to this Agreement.

12.       This Agreement cannot berevised, extinguished, or otherwise amended orally. This Agreement may berevised, extinguished, or otherwise amended only by a writing signed by all ofthe Parties or their respective duly authorized representatives.

13.       No breach of any provisionof this Agreement can be waived by any Party unless it is done in writing andall of the Parties agree to the waiver in writing.  The waiver of any breach of a provision ofthis Agreement by a Party shall not be deemed to be a waiver of any otherbreach of the same or other provisions of the Agreement.

14.       The Parties and/or theircounsel have jointly reviewed and revised and otherwise contributed to thedrafting of this Agreement and, as a result, the Parties agree that any normalrule of construction to the effect that any ambiguities are to be resolvedagainst the drafting Party shall not be employed to the interpretation of thisAgreement.

15.       Any section headings havebeen inserted only for convenience of reference and shall not be afforded anyeffect in the construction or interpretation of this Agreement.

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16.       The Parties agree that thisAgreement constitutes the entire agreement between the Parties and supersedesall prior discussions, negotiations, understandings, and agreements, whetheroral or written, all of which are merged herein.

17.       Should any provision, term,or condition of this Agreement be declared or determined by any court ofcompetent jurisdiction to be illegal, unenforceable, or invalid, the validityor legality of the remaining parts, terms, or provisions shall not be affectedthereby and shall continue in full force and effect and said illegal or invalidprovision, term, or condition shall be deemed not to be part of this Agreement.

18.       Neither the negotiation,execution, or entry of this Agreement, nor any payment of any considerationcontemplated by this Agreement, shall constitute or shall be construed as anacknowledgment or admission of liability. This Agreement constitutes acompromise and settlement and shall not be deemed an admission by any Party ofliability to any other Party or to any person or entity, all liability beingexpressly denied by the Parties. Neither this Agreement, nor any of its terms,shall be offered or received in evidence in any proceeding or utilized in anymanner whatsoever as an admission of any wrongdoing of any nature or anyliability therefore on the part of the Parties.

19.       No Party shall be in breachof any covenant, agreement, or obligation hereunder unless such Party fails tocure any alleged breach within ten (10) days from the receipt of written noticespecifying the circumstances of such breach from any other Party.

20.       All notices andcommunications hereunder shall be in writing and shall be delivered viapersonal delivery, via certified mail, return receipt requested, or via areputable overnight delivery service to the Parties at the addresses indicatedin the Acquisition Agreement.

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21.       This Agreement shall begoverned by and interpreted according to the substantive laws of the State ofArizona, excluding its choice of law rules.

22.       Any legal proceedingsarising out of the formation, execution, or performance of this Agreement, orany of the Parties’ rights or remedies hereunder, shall be brought solely inthe state or federal courts in Maricopa County, Arizona.

23.       This Agreement may beexecuted in any number of counterparts, each of which shall be deemed anoriginal, but all of which shall constitute one and the same instrument.

**-END OF TEXT OF AGREEMENT -**

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| **WILLIAM W. CROCKER,**  Individually |   |   |   |
|---------------------------------------|--------|--------|--------|
| ** **                            |   |   |   |
| /s/ William W. Crocker                |   |   |   |   |
|                                       |        |        |        |  |  |  |  |

 
| **THE STATE OF****ARIZONA** | **§** |
|-----------------------------|------------|
|                        | **§** |
| **COUNTY OF****MARICOPA**   | **§** |

 

This instrument wasacknowledged before me on this      day of April,2007, by William B.Crocker, for the purposes and consideration set forth herein.
|   |   |   | /s/ Ivette Torres           |
|--------|--------|--------|-----------------------------|
|   |   |   | Notary  Public, State of    |   |
|   |   |   | Notary’s  Printed Name |   |
|   |   |   |                        |   |
|   |   |   | [SEAL]                      |

 

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| **WILLIAM C. CROCKER,**  Individually |   |   |   |
|---------------------------------------|--------|--------|--------|
| ** **                            |   |   |   |
| /s/ William C. Crocker                |   |   |   |   |
|                                       |        |        |        |  |

 
| **THE STATE OF****ARIZONA** | **§** |
|-----------------------------|------------|
|                        | **§** |
| **COUNTY OF****MARICOPA**   | **§** |

 

This instrument wasacknowledged before me on this 6 day of April, 2007, by William B. Crocker, for the purposes andconsideration set forth herein.
|   |   |   | /s/ Ivette Torres           |
|--------|--------|--------|-----------------------------|
|   |   |   | Notary  Public, State of    |   |
|   |   |   | Notary’s  Printed Name |   |
|   |   |   |                        |
|   |   |   | [SEAL]                      |

 

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| **CRDENTIA  CROP.** |              |   |
|---------------------|-------------------|--------|
| ** **          |              |   |
| By:            | /s/ C. Fred Toney |   |   |   |
| Name:          | C. Fred Toney     |   |   |   |
| Title:         | Chairman          |   |   |   |

 
| **THE STATE OF CALIFORNIA** | **§** |
|-----------------------------|------------|
| ** **                  | **§** |
| **COUNTY OF SAN FRANCISCO** | **§** |

 

This instrumentwas acknowledged before me on this 9th dayof April, 2007, by C. Fred Toney, as the Chairman of Crdentia Corp., for thepurposes and consideration set forth herein.
|   |   |   | /s/ Janna G. Warren                 |
|--------|--------|--------|-------------------------------------|
| [SEAL] |   |   | Notary Public, State of  California |
|   |   |   | Notary’s Printed Name     | Janna G. Warren |

 

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| **CRDE  CORP.** | ** **        | ** ** |
|-----------------|-------------------|------------|
| ** **      | ** **        | ** ** |
| By:        | /s/ C. Fred Toney |       |   |   |
| Name:           | C. Fred Toney     |       |   |   |
| Title:          | Chairman          |       |   |   |

 
| **THE STATE OF CALIFORNIA** | **§** |
|-----------------------------|------------|
| ** **                  | **§** |
| **COUNTY OF SAN FRANCISCO** | **§** |

 

Thisinstrument was acknowledged before me on this 9th dayof April, 2007, by C. Fred Toney, as the Chairman of CRDE Corp., for thepurposes and consideration set forth herein.
| [SEAL] |   |   | /s/ Janna G. Warren                 |
|--------|--------|--------|-------------------------------------|
|   |   |   | Notary Public, State of  California |
|   |   |   | Notary’s Printed Name          | Janna G. Warren |

 

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| **ARIZONA HOME HEALTH CARE/PRIVATE DUTY, INC.,** |
|--------------------------------------------------|
| ** **                                       |
| By:                                         | /s/ C. Fred Toney |   |   |   |
| Name:                                            | C. Fred Toney |   |   |   |
| Title:                                           | Chairman |   |   |   |

 
| **THE STATE OF CALIFORNIA** | **§** |
|-----------------------------|------------|
| ** **                  | **§** |
| **COUNTY OF SAN FRANCISCO** | **§** |

 

Thisinstrument was acknowledged before me on this 9th dayof April, 2007, by C. Fred Toney, as the Chairman of Arizona Home HealthCare/Private Duty, Inc., for the purposes and consideration set forth herein.
| [SEAL] |   |   | /s/ Janna G. Warren                 |
|--------|--------|--------|-------------------------------------|
|   |   |   | Notary Public, State of  California |
|   |   |   | Notary’s Printed Name          | Janna G. Warren |

 

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**CrdentiaCorp**
| **Client**                    | ** ** | **Status**              | ** ** | **Amount** |
|-------------------------------|------------|-------------------------|------------|------------|
|                          |       |                    |       |       |
| Alex Zdrale-MD Home Health    |       | Possibly collectible    |       | 1,440 00   |
| Dustee Parrish                |       | Possibly collectible    |       | 640 00     |
| Dennis Weaver                 |       | Possibly collectible    |       | 1,220 00   |
| Kevin Stoker                  |       | Possibly collectible    |       | 450 00     |
| Saguaro Horizons              |       | Possibly collectible    |       | 3,964 50   |
| Arizona Surgical Hospital     |       | Pymts Located           |       | 1,114 50   |
| Jesse Schifo                  |       | Pymts Located           |       | 1,288 00   |
| Kevin Stoker                  |       | Pymts Located           |       | 2,175 50   |
| Kevin Stoker                  |       | Pymts Located           |       | 3,094 75   |
| Northwest Hospital            |       | Pymts Located           |       | 2,252 00   |
| Palo Verde Hospital           |       | Pymts Located           |       | 1,332 25   |
| Posada Del Sol                |       | Pymts Located           |       | 7,603 14   |
| Sonora                        |       | Pymts Located           |       | 1,225 50   |
| Tuscon Medical Center         |       | Pymts Located           |       | 843 38     |
| Casa Grande Regional          |       | Short Paid/Adj          |       | -1,741 01  |
| Casa Grande Regional          |       | Short Paid/Adj          |       | -2,335 50  |
| Casa Grande Regional          |       | Short Paid/Adj          |       | 193 00     |
| Gerald Johnson                |       | Short Paid/Adj          |       | 69 00      |
| Kino Community Hospital       |       | Short Paid/Adj          |       | 28,497 37  |
| MIHS Health                   |       | Short Paid/Adj          |       | -356 50    |
| MIHS Health                   |       | Short Paid/Adj          |       | 11 40      |
| Roger Lyftogt                 |       | Short Paid/Adj          |       | 0 50       |
| St Joseph’s Hospital     |       | Short Paid/Adj          |       | -53 44     |
| Tuscon Medical Center         |       | Short Paid/Adj          |       | -16 00     |
| University Physicans Hospital |       | Short Paid/Adj          |       | 861 50     |
| University Physicans Hospital |       | Short Paid/Adj          |       | 822 50     |
| University Physicans Hospital |       | Short Paid/Adj          |       | 108 00     |
| University Physicans Hospital |       | Short Paid/Adj          |       | -7,448 88  |
| University Physicans Hospital |       | Short Paid/Adj          |       | 212 00     |
| Posada Del Sol                |       | Cr Adj due Client       |       | 4,176 13   |
| Arizona State Prison Wilmot   |       | no invoice copy located |       | 14,056 00  |
| Arizona State Prison Wilmot   |       | no invoice copy located |       | 45 00      |
| Central Arizona Detention Ctr |       | no invoice copy located |       | 15,327 00  |
| Debbie Weaver                 |       | no invoice copy located |       | 13,605 00  |
| Desert Samaritan              |       | no invoice copy located |       | 218 25     |
| Eldorado Hospital             |       | no invoice copy located |       | 2,264 75   |
| Florence Correctional         |       | no invoice copy located |       | 5,633 75   |
| Kevin Stoker                  |       | no invoice copy located |       | 2,669 75   |
| Robert Dean                   |       | no invoice copy located |       | 3,047 50   |
| Roger Lyftogt                 |       | no invoice copy located |       | 5,133 50   |
| Seaohf                        |       | no invoice copy located |       | 628 00     |
| Jack Daer-Mercy Care          |       | Possibly collectible    |       | 57,142 03  |
|                          |       |                    |       |       |
|                          |       |                    |       | 171,414.12 |

 

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