Document:

CRDENTIA CORP.

                     NOTICE OF RESTRICTED STOCK BONUS AWARD

      Grantee's Name and Address:                James D. Durham
                                                 14114 Dallas Parkway, Suite 600
                                                 Dallas, Texas  75254

      You (the  "Grantee")  have been  granted  shares  of  Common  Stock of the
Company (the  "Award"),  subject to the terms and  conditions  of this Notice of
Restricted Stock Bonus Award (the "Notice") and the Restricted Stock Bonus Award
Agreement  (the  "Agreement")  attached  hereto,  as follows.  Unless  otherwise
defined  herein,  the terms defined in the Agreement shall have the same defined
meanings in this Notice.

      Award Number                               1

      Date of Award                              May 31, 2005

      Vesting Commencement Date                  May 31, 2005

      Total Number of Shares
      of Common Stock Awarded
      (the "Shares")                             2,000,000

      Aggregate Fair Market
      Value of the Shares                        $3,400,000

Vesting Schedule:

      Subject to the  Grantee's  Continuous  Service and other  limitations  set
forth in this Notice and the  Agreement,  the Shares  will "vest" in  accordance
with the following schedule:

      In the event the average  daily trading  volume for the  Company's  Common
      Stock  over any  consecutive  thirty  (30) day  period  equals or  exceeds
      100,000 shares (the "Trading Volume Goal"),  then the Shares shall vest as
      follows:  50,000 Shares shall vest on Wednesday of each week following the
      achievement  of the  Trading  Volume Goal for a period of forty (40) weeks
      until the Shares are fully vested. In the event the Trading Volume Goal is
      achieved,  the  Shares  shall  continue  to vest in  accordance  with  the
      foregoing  schedule  even if the  average  daily  trading  volume  for the
      Company's  Common Stock over any consecutive  thirty (30) day period after
      the achievement of the Trading Volume Goal is less than 100,000 shares.

      Notwithstanding  the  foregoing,  100% of the Shares shall vest on the 5th
      anniversary of the Vesting  Commencement Date regardless of whether or not
      the Trading Volume Goal is achieved.

                                       1
<PAGE>

      In the event the Grantee's  Continuous  Service  terminates as a result of
his or her death or  Disability,  the Shares  automatically  shall  become fully
vested immediately prior to the date of such termination of Continuous Service.

      During  any  authorized  leave of  absence,  the  vesting of the Shares as
provided in this schedule shall be suspended  after the leave of absence exceeds
a period of three (3)  months.  Vesting  of the  Shares  shall  resume  upon the
Grantee's  termination  of the leave of  absence  and  return to  service to the
Company  or a Related  Entity.  The  Vesting  Schedule  of the  Shares  shall be
extended by the length of the suspension.

      In the event of the Grantee's change in status from Employee,  Director or
Consultant to any other status of Employee,  Director or Consultant,  the Shares
shall continue to vest in accordance with the Vesting Schedule set forth above.

      The  Award  shall  be  subject  to the  provisions  of  Section  14 of the
Agreement  relating  to the  vesting of the  Shares in the event of a  Corporate
Transaction.

      For purposes of this Notice and the Agreement, the term "vest" shall mean,
with respect to any Shares, that such Shares are no longer subject to forfeiture
to the Company.  Shares that have not vested are deemed "Restricted  Shares." If
the Grantee  would  become  vested in a fraction  of a  Restricted  Share,  such
Restricted  Share shall not vest until the Grantee  becomes vested in the entire
Share.

      Vesting  shall  cease  upon  the  date  of  termination  of the  Grantee's
Continuous Service for any reason, other than death or Disability.  In the event
the Grantee's  Continuous Service is terminated for any reason, other than death
or Disability,  any Restricted Shares held by the Grantee immediately  following
such termination of Continuous Service shall be deemed reconveyed to the Company
and the  Company  shall  thereafter  be the  legal and  beneficial  owner of the
Restricted  Shares and shall have all rights and interest in or related  thereto
without further action by the Grantee. The foregoing  forfeiture  provisions set
forth in this  Notice as to  Restricted  Shares  shall  apply to the new capital
stock or other  property  (including  cash paid  other  than as a  regular  cash
dividend) received in exchange for the Shares in consummation of any transaction
described  in Section 14 of the  Agreement  and such stock or property  shall be
deemed  Additional  Securities  for purposes of the  Agreement,  but only to the
extent the Shares are at the time covered by such forfeiture provisions.

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      IN WITNESS WHEREOF,  the Company and the Grantee have executed this Notice
and agree that the Award is to be governed by the terms and  conditions  of this
Notice and the Agreement.

                                              Crdentia Corp.,
                                              a Delaware corporation

                                              By: /s/ Pamela G. Atherton
                                                  ------------------------------
                                                  Pamela G. Atherton
                                                  President

THE GRANTEE  ACKNOWLEDGES AND AGREES THAT THE SHARES SHALL VEST, IF AT ALL, ONLY
DURING THE PERIOD OF THE  GRANTEE'S  CONTINUOUS  SERVICE (NOT THROUGH THE ACT OF
BEING  HIRED,  BEING  GRANTED  THIS AWARD OR ACQUIRING  SHARES  HEREUNDER).  THE
GRANTEE  FURTHER  ACKNOWLEDGES  AND AGREES  THAT  NOTHING IN THIS NOTICE NOR THE
AGREEMENT  SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO  CONTINUATION
OF THE GRANTEE'S  CONTINUOUS SERIVCE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE
GRANTEE'S  RIGHT OR THE COMPANY'S  RIGHT TO TERMINATE  THE GRANTEE'S  CONTINUOUS
SERIVCE AT ANY TIME,  WITH OR WITHOUT  CAUSE,  AND WITH OR WITHOUT  NOTICE.  THE
GRANTEE  ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT
WITH THE COMPANY TO THE CONTRARY, THE GRANTEE'S STATUS IS AT WILL.

      As a condition to receiving the Shares, the Grantee agrees to refrain from
making an  election  pursuant to Section  83(b) of the Code with  respect to the
Shares.

      The Grantee  acknowledges  receipt of the Agreement and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts the
Award subject to all of the terms and provisions hereof and thereof. The Grantee
has  reviewed  this  Notice  and the  Agreement  in their  entirety,  has had an
opportunity  to obtain the advice of counsel prior to executing  this Notice and
fully  understands all provisions of this Notice and the Agreement.  The Grantee
hereby agrees that all questions of interpretation and  administration  relating
to this Notice and the  Agreement  shall be resolved by the Board in  accordance
with  Section  11 of the  Agreement.  The  Grantee  further  agrees to the venue
selection  and  waiver of a jury  trial in  accordance  with  Section  12 of the
Agreement.  The Grantee  further agrees to notify the Company upon any change in
the residence address indicated in this Notice.

Dated: May 31, 2005                       Signed: /s/ James D. Durham
                                                  ------------------------------

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<PAGE>

                                                                 AWARD NUMBER: 1

                                 CRDENTIA CORP.

                     RESTRICTED STOCK BONUS AWARD AGREEMENT

      1. Issuance of Shares.  Crdentia,  a Delaware corporation (the "Company"),
hereby issues to the Grantee (the  "Grantee")  named in the Notice of Restricted
Stock Bonus Award (the  "Notice"),  the Total  Number of Shares of Common  Stock
Awarded set forth in the Notice (the  "Shares"),  subject to the Notice and this
Restricted  Stock Bonus Award  Agreement  (the  "Agreement").  All Shares issued
hereunder  will be deemed issued to the Grantee as fully paid and  nonassessable
shares,  and the  Grantee  will have the right to vote the Shares at meetings of
the Company's stockholders.  The Company shall pay any applicable stock transfer
taxes imposed upon the issuance of the Shares to the Grantee hereunder.

      2. Transfer  Restrictions.  The Shares issued to the Grantee hereunder may
not  be  sold,  transferred  by  gift,  pledged,   hypothecated,   or  otherwise
transferred  or  disposed  of by the  Grantee  prior to the date when the Shares
become  vested  pursuant to the Vesting  Schedule  set forth in the Notice.  Any
attempt to transfer  Restricted  Shares in  violation  of this Section 2 will be
null and void and will be disregarded.

      3. Escrow of Stock.  For purposes of  facilitating  the enforcement of the
provisions of this Agreement,  the Grantee agrees,  immediately  upon receipt of
the certificate(s)  for the Restricted  Shares, to deliver such  certificate(s),
together  with an  Assignment  Separate  from  Certificate  in the form attached
hereto as Exhibit A,  executed in blank by the Grantee with respect to each such
stock certificate,  to the Secretary or Assistant  Secretary of the Company,  or
their designee, to hold in escrow for so long as such Restricted Shares have not
vested  pursuant  to the  Vesting  Schedule  set forth in the  Notice,  with the
authority to take all such actions and to effectuate all such  transfers  and/or
releases as may be necessary or appropriate to accomplish the objectives of this
Agreement in accordance with the terms hereof.  The Grantee hereby  acknowledges
that the appointment of the Secretary or Assistant  Secretary of the Company (or
their designee) as the escrow holder hereunder with the stated  authorities is a
material  inducement  to the  Company  to make  this  Agreement  and  that  such
appointment  is coupled with an interest  and is  accordingly  irrevocable.  The
Grantee  agrees that such escrow  holder shall not be liable to any party hereto
(or to any other party) for any actions or omissions  unless such escrow  holder
is grossly  negligent  relative  thereto.  The  escrow  holder may rely upon any
letter,  notice or other  document  executed by any  signature  purported  to be
genuine and may resign at any time. Upon the vesting of Restricted  Shares,  the
escrow  holder  will,  without  further  order or  instruction,  transmit to the
Grantee the certificate evidencing such Shares.

                                       1
<PAGE>

      4. Additional Securities and Distributions.

            (a) Any  securities  or cash  received  (other  than a regular  cash
dividend) as the result of ownership of the Restricted  Shares (the  "Additional
Securities"),  including,  but not by way of limitation,  warrants,  options and
securities  received  as a stock  dividend or stock  split,  or as a result of a
recapitalization  or  reorganization  or other  similar  change in the Company's
capital structure, shall be retained in escrow in the same manner and subject to
the same conditions and  restrictions  as the Restricted  Shares with respect to
which they were issued, including,  without limitation, the Vesting Schedule set
forth in the  Notice.  The  Grantee  shall be  entitled to direct the Company to
exercise any warrant or option received as Additional  Securities upon supplying
the funds  necessary to do so, in which event the securities so purchased  shall
constitute Additional Securities,  but the Grantee may not direct the Company to
sell  any  such  warrant  or  option.  If  Additional  Securities  consist  of a
convertible  security,  the Grantee may exercise any conversion  right,  and any
securities so acquired shall constitute Additional  Securities.  In the event of
any change in certificates evidencing the Shares or the Additional Securities by
reason of any recapitalization, reorganization or other transaction that results
in the creation of  Additional  Securities,  the escrow  holder is authorized to
deliver to the issuer the  certificates  evidencing the Shares or the Additional
Securities in exchange for the certificates of the replacement securities.

            (b) The Company  shall  disburse  to the  Grantee  all regular  cash
dividends with respect to the Shares and Additional  Securities  (whether vested
or not), less any applicable withholding obligations.

      5. Taxes.

            (a) No Section  83(b)  Election.  As a condition  to  receiving  the
Shares,  the  Grantee  agrees to refrain  from  making an  election  pursuant to
Section 83(b) of the Code with respect to the Shares.

            (b) Tax Liability.  The Grantee is ultimately liable and responsible
for all taxes owed by the Grantee in  connection  with the Award,  regardless of
any  action the  Company or any  Related  Entity  takes with  respect to any tax
withholding  obligations  that arise in connection  with the Award.  Neither the
Company nor any Related Entity makes any representation or undertaking regarding
the treatment of any tax  withholding in connection with the grant or vesting of
the Award or the subsequent sale of Shares subject to the Award. The Company and
its Related  Entities do not commit and are under no obligation to structure the
Award to reduce or eliminate the Grantee's tax liability.

            (c) Payment of Withholding  Taxes.  Prior to any event in connection
with the Award (e.g., vesting) that the Company determines may result in any tax
withholding obligation, whether United States federal, state, local or non-U.S.,
including any employment tax obligation (the "Tax Withholding Obligation"),  the
Grantee  must  arrange for the  satisfaction  of the minimum  amount of such Tax
Withholding Obligation in a manner acceptable to the Company.

                                       2
<PAGE>

                  (i) By Share  Withholding.  The Grantee authorizes the Company
to,  upon the  exercise  of its sole  discretion,  withhold  from  those  Shares
issuable  to the Grantee the whole  number of Shares  sufficient  to satisfy the
minimum applicable Tax Withholding Obligation. The Grantee acknowledges that the
withheld  Shares may not be  sufficient  to satisfy  the  Grantee's  minimum Tax
Withholding Obligation. Accordingly, the Grantee agrees to pay to the Company or
any Related Entity as soon as practicable,  including through additional payroll
withholding,  any amount of the Tax Withholding Obligation that is not satisfied
by the withholding of Shares described above.

                  (ii) By Sale of  Shares.  Unless  the  Grantee  determines  to
satisfy the Tax  Withholding  Obligation by some other means in accordance  with
clause (iii) below,  the  Grantee's  acceptance  of this Award  constitutes  the
Grantee's  instruction and  authorization  to the Company and any brokerage firm
determined  acceptable  to the Company for such purpose to sell on the Grantee's
behalf a whole number of Shares from those Shares issuable to the Grantee as the
Company  determines to be  appropriate  to generate cash proceeds  sufficient to
satisfy the minimum applicable Tax Withholding  Obligation.  Such Shares will be
sold on the day such Tax Withholding Obligation arises (e.g., a vesting date) or
as soon  thereafter  as  practicable.  The Grantee will be  responsible  for all
broker's fees and other costs of sale,  and the Grantee  agrees to indemnify and
hold the Company harmless from any losses,  costs, damages, or expenses relating
to any such sale.  To the extent the proceeds of such sale exceed the  Grantee's
minimum Tax  Withholding  Obligation,  the Company  agrees to pay such excess in
cash to the Grantee.  The Grantee  acknowledges that the Company or its designee
is under no obligation  to arrange for such sale at any  particular  price,  and
that  the  proceeds  of any such  sale  may not be  sufficient  to  satisfy  the
Grantee's minimum Tax Withholding Obligation. Accordingly, the Grantee agrees to
pay to the  Company  or any  Related  Entity as soon as  practicable,  including
through  additional  payroll  withholding,  any  amount  of the Tax  Withholding
Obligation that is not satisfied by the sale of Shares described above.

                  (iii) By Check,  Wire Transfer or Other Means. At any time not
less than five (5)  business  days (or such  fewer  number of  business  days as
determined by the Board) before any Tax Withholding  Obligation  arises (e.g., a
vesting  date),  the Grantee may elect to satisfy the Grantee's Tax  Withholding
Obligation by delivering to the Company an amount that the Company determines is
sufficient  to satisfy the Tax  Withholding  Obligation  by (x) wire transfer to
such  account as the  Company  may direct,  (y)  delivery  of a certified  check
payable to the Company,  or (z) such other means as specified  from time to time
by the Board.

      6.  Stop-Transfer   Notices.  In  order  to  ensure  compliance  with  the
restrictions on transfer set forth in this Agreement or the Notice,  the Company
may issue  appropriate  "stop  transfer"  instructions to its transfer agent, if
any, and, if the Company  transfers its own securities,  it may make appropriate
notations to the same effect in its own records.

      7. Refusal to Transfer.  The Company shall not be required (i) to transfer
on its  books  any  Shares  that have  been  sold or  otherwise  transferred  in
violation of any of the  provisions of this  Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay  dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

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<PAGE>

      8.  Restrictive  Legends.  The  Grantee  understands  and agrees  that the
Company  shall  cause the  legends  set  forth  below or  legends  substantially
equivalent thereto, to be placed upon any certificate(s) evidencing ownership of
the Shares  together  with any other legends that may be required by the Company
or by state or federal securities laws:

            THE SHARES  REPRESENTED  BY THIS  CERTIFICATE  ARE RESTRICTED BY THE
            TERMS OF THAT CERTAIN RESTRICTED STOCK BONUS AWARD AGREEMENT BETWEEN
            THE COMPANY AND THE NAMED  STOCKHOLDERS.  THE SHARES  REPRESENTED BY
            THIS  CERTIFICATE  MAY BE TRANSFERRED  ONLY IN ACCORDANCE  WITH SUCH
            AGREEMENT,  A COPY OF WHICH IS ON FILE  WITH  THE  SECRETARY  OF THE
            COMPANY.

      9.  Entire  Agreement:  Governing  Law.  The  Notice  and  this  Agreement
constitute  the entire  agreement  of the  parties  with  respect to the subject
matter  hereof  and  supersede  in their  entirety  all prior  undertakings  and
agreements  of the Company and the Grantee  with  respect to the subject  matter
hereof,  and may not be modified  adversely to the Grantee's  interest except by
means of a writing signed by the Company and the Grantee.  These  agreements are
to be construed  in  accordance  with and  governed by the internal  laws of the
State of Texas without  giving effect to any choice of law rule that would cause
the application of the laws of any jurisdiction  other than the internal laws of
the State of Texas to the rights and duties of the parties. Should any provision
of the Notice or this  Agreement be determined  to be illegal or  unenforceable,
the other  provisions  shall  nevertheless  remain  effective  and shall  remain
enforceable.

      10.  Headings.  The  captions  used in this  Agreement  are  inserted  for
convenience and shall not be deemed a part of this Agreement for construction or
interpretation.

      11.  Administration and Interpretation.  Any question or dispute regarding
the  administration  or  interpretation of the Notice or this Agreement shall be
submitted by the Grantee or by the Company to the Board.  The resolution of such
question or dispute by the Board shall be final and binding on all persons.

      12.  Venue and  Waiver of Jury  Trial.  The  parties  agree that any suit,
action, or proceeding arising out of or relating to the Notice or this Agreement
shall be brought in the United States  District Court for the Northern  District
of Texas (or should such court lack  jurisdiction  to hear such action,  suit or
proceeding, in a Texas state court in the County of Dallas) and that the parties
shall submit to the jurisdiction of such court. The parties  irrevocably  waive,
to the fullest extent  permitted by law, any objection the party may have to the
laying of venue for any such suit,  action or proceeding  brought in such court.
THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL
OF ANY SUCH SUIT,  ACTION OR PROCEEDING.  If any one or more  provisions of this
Section 12 shall for any  reason be held  invalid  or  unenforceable,  it is the
specific  intent of the parties  that such  provisions  shall be modified to the
minimum extent necessary to make it or its application valid and enforceable.

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      13. Notices.  Any notice required or permitted hereunder shall be given in
writing  and shall be deemed  effectively  given upon  personal  delivery,  upon
deposit for  delivery by an  internationally  recognized  express  mail  courier
service or upon  deposit in the United  States  mail by  certified  mail (if the
parties are within the United States), with postage and fees prepaid,  addressed
to the other  party at its  address  as shown in these  instruments,  or to such
other  address as such party may  designate  in writing from time to time to the
other party.

      14. Corporate Transaction.

            (a) In the event of a Corporate  Transaction  and for the portion of
the Award that is neither  Assumed nor  Replaced,  (i) such portion of the Award
shall  automatically  become  fully  vested  for all of the  Shares  at the time
represented  by such portion of the Award,  immediately  prior to the  specified
effective  date of such  Corporate  Transaction,  provided  that  the  Grantee's
Continuous  Service  has not  terminated  prior to such  date and (ii) the Award
shall be  subject  to the  terms of the  agreement  implementing  the  Corporate
Transaction  between the Company and the successor  entity or Parent thereof and
the  Grantee  shall be  deemed to have  agreed  to the  terms of such  agreement
applicable to the Award.

            (b) In the event of a Corporate  Transaction  and for the portion of
the  Award  that is  Assumed  or  Replaced,  then the Award  (if  Assumed),  the
replacement  award (if Replaced),  or the cash  incentive  program (if Replaced)
automatically shall become fully vested,  exercisable and payable for all of the
Shares at the time represented by such Assumed or Replaced portion of the Award,
immediately  upon  termination  of the  Grantee's  Continuous  Service  if  such
Continuous  Service is  terminated,  within five (5) years  after the  Corporate
Transaction,  by the successor company,  the Company or a Related Entity without
Cause or  voluntarily  by the  Grantee  with Good  Reason.  Notwithstanding  the
foregoing,  if upon the  consummation  of a Corporate  Transaction  the Award is
Replaced,  the Award  shall  terminate  and any  Restricted  Shares  held by the
Grantee shall be deemed reconveyed to the Company as if the Grantee's Continuous
Service had terminated immediately prior to the effective date of such Corporate
Transaction.

      15. Definitions. As used herein, the following definitions shall apply:

            (a) "Applicable Laws" means the legal requirements applicable to the
issuance of Awards,  if any, under applicable  provisions of federal  securities
laws, state corporate and securities laws, the Code, the rules of any applicable
stock  exchange  or  national  market  system,  and the  rules  of any  non-U.S.
jurisdiction applicable to Awards granted to residents therein.

            (b) "Assumed" means that pursuant to a Corporate  Transaction either
(i) the Award is  expressly  affirmed  by the  Company  or (ii) the  contractual
rights and obligations  represented by the Award are expressly  assumed (and not
simply by operation of law) by the successor  entity or its Parent in connection
with the Corporate  Transaction with  appropriate  adjustments to the number and
type of securities of the  successor  entity or its Parent  subject to the Award
and the  exercise  or  purchase  price  thereof  which  at least  preserves  the
compensation  element  of the  Award  existing  at  the  time  of the  Corporate
Transaction  as determined in accordance  with the  instruments  evidencing  the
agreement to assume the Award.

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<PAGE>

            (c) "Award" means the sale of Restricted Shares hereunder.

            (d) "Board"  means the Board of  Directors  of the Company and shall
include any  committee of the Board or Officer of the Company to which the Board
has delegated its authority under this Agreement.

            (e) "Cause" means, with respect to the termination by the Company or
a Related Entity of the Grantee's  Continuous Service,  that such termination is
for  "Cause"  as such term is  expressly  defined  in a  then-effective  written
agreement  between the Grantee and the Company or such Related Entity, or in the
absence of such then-effective written agreement and definition, is based on, in
the  determination  of the Board,  the Grantee's:  (i) performance of any act or
failure to perform any act in bad faith and to the detriment of the Company or a
Related Entity;  (ii) dishonesty,  intentional  misconduct or material breach of
any agreement  with the Company or a Related  Entity;  or (iii)  commission of a
crime  involving  dishonesty,  breach of trust, or physical or emotional harm to
any person.

            (f) "Code" means the Internal Revenue Code of 1986, as amended.

            (g) "Common Stock" means the common stock of the Company.

            (h) "Company" means Crdentia Corp., a Delaware corporation.

            (i)  "Consultant"  means any person  (other  than an  Employee  or a
Director, solely with respect to rendering services in such person's capacity as
a  Director)  who is engaged  by the  Company  or any  Related  Entity to render
consulting or advisory services to the Company or such Related Entity.

            (j) "Continuous Service" means that the provision of services to the
Company or a Related Entity in any capacity of Employee, Director or Consultant,
is not interrupted or terminated.  In jurisdictions  requiring notice in advance
of an effective termination as an Employee,  Director or Consultant,  Continuous
Service  shall be deemed  terminated  upon the  actual  cessation  of  providing
services to the Company or a Related Entity  notwithstanding any required notice
period that must be fulfilled  before a termination as an Employee,  Director or
Consultant can be effective  under  Applicable  Laws.  The Grantee's  Continuous
Service shall be deemed to have terminated either upon an actual  termination of
Continuous  Service or upon the entity for which the Grantee  provides  services
ceasing  to be a Related  Entity.  Continuous  Service  shall not be  considered
interrupted  in the case of (i) any approved  leave of absence,  (ii)  transfers
among the Company,  any Related  Entity,  or any  successor,  in any capacity of
Employee,  Director or Consultant,  or (iii) any change in status as long as the
individual  remains  in the  service of the  Company or a Related  Entity in any
capacity of Employee,  Director or Consultant  (except as otherwise  provided in
the Award  Agreement).  An approved  leave of absence  shall include sick leave,
military leave, or any other authorized personal leave.

            (k) "Corporate Transaction" means any of the following transactions,
provided,  however,  that the Board  shall  determine  under  parts (iv) and (v)
whether multiple transactions are related, and its determination shall be final,
binding and conclusive:

                                       6
<PAGE>

                  (i) a merger or  consolidation in which the Company is not the
surviving entity,  except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated;

                  (ii)  the  sale,  transfer  or  other  disposition  of  all or
substantially  all of the assets of the Company  (including the capital stock of
the Company's subsidiary corporations);

                  (iii) the complete liquidation or dissolution of the Company;

                  (iv) any  reverse  merger or series  of  related  transactions
culminating in a reverse merger  (including,  but not limited to, a tender offer
followed by a reverse  merger) in which the Company is the surviving  entity but
(A) the shares of Common Stock outstanding  immediately prior to such merger are
converted or exchanged by virtue of the merger into other  property,  whether in
the form of securities, cash or otherwise, or (B) in which securities possessing
more  than  fifty  percent  (50%)  of the  total  combined  voting  power of the
Company's  outstanding  securities  are  transferred  to  a  person  or  persons
different from those who held such securities  immediately  prior to such merger
or the initial  transaction  culminating in such merger,  but excluding any such
transaction or series of related  transactions  that the Board  determines shall
not be a Corporate Transaction; or

                  (v) acquisition in a single or series of related  transactions
by any  person or  related  group of  persons  (other  than the  Company or by a
Company-sponsored  employee  benefit plan) of beneficial  ownership  (within the
meaning of Rule 13d-3 of the Exchange  Act) of securities  possessing  more than
fifty  percent  (50%)  of the  total  combined  voting  power  of the  Company's
outstanding  securities but excluding any such  transaction or series of related
transactions that the Board determines shall not be a Corporate Transaction.

            (l) "Director" means a member of the Board or the board of directors
of any Related Entity.

            (m)  "Disability"  means  as such  term is  expressly  defined  in a
then-effective  written  agreement  between  the Grantee and the Company or such
Related Entity, or in the absence of such  then-effective  written agreement and
definition,  as defined under the long-term  disability policy of the Company or
the Related Entity to which the Grantee provides services  regardless of whether
the Grantee is covered by such  policy.  In the  absence of a written  agreement
containing a definition of disability  and if the Company or the Related  Entity
to which the Grantee provides service does not have a long-term  disability plan
in  place,  "Disability"  means  that a  Grantee  is  unable  to  carry  out the
responsibilities  and functions of the position held by the Grantee by reason of
any medically  determinable  physical or mental  impairment  for a period of not
less than ninety (90) consecutive days. A Grantee will not be considered to have
incurred  a  Disability  unless  he or she  furnishes  proof of such  impairment
sufficient to satisfy the Board in its discretion.

            (n) "Employee"  means any person,  including an Officer or Director,
who is in the  employ of the  Company  or any  Related  Entity,  subject  to the
control and  direction of the Company or any Related  Entity as to both the work
to be  performed  and the  manner and method of  performance.  The  payment of a
director's  fee by the Company or a Related  Entity shall not be  sufficient  to
constitute "employment" by the Company.

                                       7
<PAGE>

            (o)  "Exchange  Act" means the  Securities  Exchange Act of 1934, as
amended.

            (p) "Fair Market Value" means,  as of any date,  the value of Common
Stock determined as follows:

                  (i) If the Common  Stock is listed on one or more  established
stock  exchanges or national market systems,  including  without  limitation The
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market  Value  shall be the closing  sales price for such stock (or the
closing bid, if no sales were  reported) as quoted on the principal  exchange or
system on which the Common Stock is listed (as  determined  by the Board) on the
date of determination (or, if no closing sales price or closing bid was reported
on that date, as  applicable,  on the last trading date such closing sales price
or closing bid was  reported),  as  reported in The Wall Street  Journal or such
other source as the Board deems reliable;

                  (ii) If the Common Stock is  regularly  quoted on an automated
quotation  system  (including  the  OTC  Bulletin  Board)  or  by  a  recognized
securities  dealer,  its Fair Market Value shall be the closing  sales price for
such stock as quoted on such system or by such securities  dealer on the date of
determination,  but if selling prices are not reported, the Fair Market Value of
a share of Common  Stock  shall be the mean  between  the high bid and low asked
prices for the Common Stock on the date of determination  (or, if no such prices
were  reported on that date,  on the last date such prices  were  reported),  as
reported  in The Wall  Street  Journal or such other  source as the Board  deems
reliable; or

                  (iii) In the absence of an  established  market for the Common
Stock of the type  described  in (i) and  (ii),  above,  the Fair  Market  Value
thereof shall be determined by the Board in good faith.

            (q) "Good  Reason"  means  the  occurrence  of any of the  following
events or conditions  unless  consented to by the Grantee (and the Grantee shall
be deemed to have  consented to any such event or  condition  unless the Grantee
provides written notice of the Grantee's  non-acquiescence within 30 days of the
effective time of such event or condition):

                  (i) a reduction in the Grantee's  base salary to a level below
that in effect at any time within the preceding six (6) months; or

                  (ii)  requiring the Grantee to be based at any place outside a
45-mile radius from the Grantee's job location  except for  reasonably  required
travel on business.

            (r)  "Officer"  means a person who is an officer of the Company or a
Related  Entity  within the  meaning of Section 16 of the  Exchange  Act and the
rules and regulations promulgated thereunder.

            (s) "Parent" means a "parent  corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

                                       8
<PAGE>

            (t) "Related  Entity"  means any Parent or Subsidiary of the Company
and any business, corporation,  partnership,  limited liability company or other
entity in which the Company or a Parent or a Subsidiary  of the Company  holds a
substantial ownership interest, directly or indirectly.

            (u) "Replaced"  means that pursuant to a Corporate  Transaction  the
Award is replaced with a comparable  stock award or a cash incentive  program of
the Company,  the successor  entity (if  applicable) or Parent of either of them
which preserves the  compensation  element of such Award existing at the time of
the Corporate  Transaction and provides for subsequent payout in accordance with
the same (or a more favorable)  vesting  schedule  applicable to such Award. The
determination  of  Award  comparability  shall  be  made  by the  Board  and its
determination shall be final, binding and conclusive.

            (v) "Share" means a share of the Common Stock.

            (w) "Subsidiary"  means a "subsidiary  corporation,"  whether now or
hereafter existing, as defined in Section 424(f) of the Code.

                                END OF AGREEMENT

                                       9
<PAGE>

                                    EXHIBIT A

                   STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

            FOR VALUE  RECEIVED,  James D.  Durham  hereby  sells,  assigns  and
transfers unto _______________________,  _________ shares of the Common Stock of
Crdentia Corp., a Delaware corporation (the "Company"),  standing in his name on
the books of, the Company  represented by Certificate No. __ herewith,  and does
hereby irrevocably  constitute and appoint the Secretary of the Company attorney
to  transfer  the said  stock in the books of the  Company  with  full  power of
substitution.

DATED:
      ------------
                                                 /s/ James D. Durham
                                                 -------------------------------

[PLEASE SIGN THIS DOCUMENT BUT DO NOT DATE IT. THE DATE AND  INFORMATION  OF THE
TRANSFEREE WILL BE COMPLETED IF AND WHEN THE SHARES ARE ASSIGNED.]

                                       10CRDENTIA CORP.

                     NOTICE OF RESTRICTED STOCK BONUS AWARD

      Grantee's Name and Address:                Pamela G. Atherton
                                                 14114 Dallas Parkway, Suite 600
                                                 Dallas, Texas  75254

      You (the  "Grantee")  have been  granted  shares  of  Common  Stock of the
Company (the  "Award"),  subject to the terms and  conditions  of this Notice of
Restricted Stock Bonus Award (the "Notice") and the Restricted Stock Bonus Award
Agreement  (the  "Agreement")  attached  hereto,  as follows.  Unless  otherwise
defined  herein,  the terms defined in the Agreement shall have the same defined
meanings in this Notice.

      Award Number                               3

      Date of Award                              May 31, 2005

      Vesting Commencement Date                  May 31, 2005

      Total Number of Shares
      of Common Stock Awarded
      (the "Shares")                             900,000

      Aggregate Fair Market
      Value of the Shares                        $1,530,000

Vesting Schedule:

      Subject to the  Grantee's  Continuous  Service and other  limitations  set
forth in this Notice and the  Agreement,  the Shares  will "vest" in  accordance
with the following schedule:

      In the event the average  daily trading  volume for the  Company's  Common
      Stock  over any  consecutive  thirty  (30) day  period  equals or  exceeds
      100,000 shares (the "Trading Volume Goal"),  then the Shares shall vest as
      follows:  22,500 Shares shall vest on Wednesday of each week following the
      achievement  of the  Trading  Volume Goal for a period of forty (40) weeks
      until the Shares are fully vested; provided,  however, that this number of
      Shares vesting each week shall be proportionally reduced in the event that
      Grantee  forfeits any of the Shares  pursuant to the  provisions set forth
      below under the heading "Clawback of Shares." Subject to the foregoing, in
      the event the Trading  Volume Goal is achieved,  the Shares shall continue
      to vest in  accordance  with the  foregoing  schedule  even if the average
      daily trading volume for the Company's  Common Stock over any  consecutive
      thirty (30) day period after the achievement of the Trading Volume Goal is
      less than 100,000 shares.

                                       1
<PAGE>

      Notwithstanding the foregoing,  100% of the Shares shall vest on the fifth
      (5th)  anniversary of the Vesting  Commencement Date regardless of whether
      or not the Trading Volume Goal is achieved.

Clawback of Shares:

      Subject to the  Grantee's  Continuous  Service and other  limitations  set
forth in this Notice and the  Agreement,  Grantee shall  forfeit  300,000 of the
Shares granted hereunder on each of June 30th,  September 30th and December 31st
of 2005 (a "Clawback"), unless the Company has achieved the following amounts of
both (i) revenue and (ii) earnings  before  interest,  taxes,  depreciation  and
amortization (and excluding stock  compensation  expense)  ("EBITDA") during the
three months ending on such dates:

      (a)   June 30, 2005: Revenues ($11,461,423) and EBITDA ($382,551);

      (b)   September 30, 2005:  Revenues  ($12,271,029) and EBITDA  ($514,406);
            and

      (c)   December 31, 2005: Revenues ($12,495,130) and EBITDA ($516,894).

      Notwithstanding  the  foregoing,  in the event that the  Company  does not
achieve a certain  revenue  or EBIDTA  threshold  during the end of the first or
second  quarterly  period  indicated  above but in the second or third quarterly
period achieves an aggregate, cumulative amount of revenue or EBIDTA during such
six (6) or nine (9) month  period (as the case may be) greater  than or equal to
the combined  quarterly  targets for such  periods,  then Grantee and the Shares
shall  not be  subject  to a  Clawback  with  respect  to such  prior  quarterly
period(s)  as if  the  thresholds  had  been  achieved  during  such  period(s).
Notwithstanding the foregoing,  however, such revenue and EBITDA targets must be
achieved no later than December 31, 2005.

Miscellaneous:

      In the event the Grantee's  Continuous  Service  terminates as a result of
his or her death or  Disability,  the Shares  automatically  shall  become fully
vested  immediately prior to the date of such termination of Continuous  Service
and also not be subject to any Clawback.

      During  any  authorized  leave of  absence,  the  vesting of the Shares as
provided in this schedule shall be suspended  after the leave of absence exceeds
a period of three (3)  months.  Vesting  of the  Shares  shall  resume  upon the
Grantee's  termination  of the leave of  absence  and  return to  service to the
Company  or a Related  Entity.  The  Vesting  Schedule  of the  Shares  shall be
extended by the length of the suspension.

      In the event of the Grantee's change in status from Employee,  Director or
Consultant to any other status of Employee,  Director or Consultant,  the Shares
shall continue to vest in accordance with the Vesting Schedule set forth above.

      The  Award  shall  be  subject  to the  provisions  of  Section  14 of the
Agreement  relating to the vesting of the Shares and the effect on any  Clawback
right in the event of a Corporate Transaction.

                                       2
<PAGE>

      For purposes of this Notice and the Agreement, the term "vest" shall mean,
with  respect to any Shares not  subject to  Clawback,  that such  Shares are no
longer  subject to  forfeiture  to the  Company.  Shares that have not vested or
which are or may be subject to a Clawback are deemed "Restricted Shares." If the
Grantee would become vested in a fraction of a Restricted Share, such Restricted
Share shall not vest until the Grantee becomes vested in the entire Share.

      Vesting  shall  cease  upon  the  date  of  termination  of the  Grantee's
Continuous Service for any reason, other than death or Disability.  In the event
the Grantee's  Continuous Service is terminated for any reason, other than death
or Disability,  any Restricted Shares held by the Grantee immediately  following
such termination of Continuous Service shall be deemed reconveyed to the Company
and the  Company  shall  thereafter  be the  legal and  beneficial  owner of the
Restricted  Shares and shall have all rights and interest in or related  thereto
without further action by the Grantee. The foregoing  forfeiture  provisions set
forth in this  Notice as to  Restricted  Shares  shall  apply to the new capital
stock or other  property  (including  cash paid  other  than as a  regular  cash
dividend) received in exchange for the Shares in consummation of any transaction
described  in Section 14 of the  Agreement  and such stock or property  shall be
deemed  Additional  Securities  for purposes of the  Agreement,  but only to the
extent the Shares are at the time covered by such forfeiture provisions.

                                       3
<PAGE>

      IN WITNESS WHEREOF,  the Company and the Grantee have executed this Notice
and agree that the Award is to be governed by the terms and  conditions  of this
Notice and the Agreement.

                                              Crdentia Corp.,
                                              a Delaware corporation

                                              By: /s/ James D. Durham
                                                  ------------------------------
                                                  James D. Durham
                                                  Chief Executive Officer

THE  GRANTEE  ACKNOWLEDGES  AND  AGREES  THAT THE SHARES  SHALL  VEST  AND/OR BE
RELEASED  FROM ANY  CLAWBACK  RIGHT,  IF AT ALL,  ONLY  DURING THE PERIOD OF THE
GRANTEE'S  CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED
THIS AWARD OR ACQUIRING SHARES HEREUNDER).  THE GRANTEE FURTHER ACKNOWLEDGES AND
AGREES  THAT  NOTHING IN THIS  NOTICE NOR THE  AGREEMENT  SHALL  CONFER UPON THE
GRANTEE  ANY RIGHT WITH  RESPECT TO  CONTINUATION  OF THE  GRANTEE'S  CONTINUOUS
SERVICE,  NOR  SHALL IT  INTERFERE  IN ANY WAY WITH THE  GRANTEE'S  RIGHT OR THE
COMPANY'S RIGHT TO TERMINATE THE GRANTEE'S  CONTINUOUS SERVICE AT ANY TIME, WITH
OR WITHOUT CAUSE,  AND WITH OR WITHOUT  NOTICE.  THE GRANTEE  ACKNOWLEDGES  THAT
UNLESS THE GRANTEE HAS A WRITTEN  EMPLOYMENT  AGREEMENT  WITH THE COMPANY TO THE
CONTRARY, THE GRANTEE'S STATUS IS AT WILL.

      As a condition to receiving the Shares, the Grantee agrees to refrain from
making an  election  pursuant to Section  83(b) of the Code with  respect to the
Shares.

      The Grantee  acknowledges  receipt of the Agreement and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts the
Award subject to all of the terms and provisions hereof and thereof. The Grantee
has  reviewed  this  Notice  and the  Agreement  in their  entirety,  has had an
opportunity  to obtain the advice of counsel prior to executing  this Notice and
fully  understands all provisions of this Notice and the Agreement.  The Grantee
hereby agrees that all questions of interpretation and  administration  relating
to this Notice and the  Agreement  shall be resolved by the Board in  accordance
with  Section  11 of the  Agreement.  The  Grantee  further  agrees to the venue
selection  and  waiver of a jury  trial in  accordance  with  Section  12 of the
Agreement.  The Grantee  further agrees to notify the Company upon any change in
the residence address indicated in this Notice.

Dated: May 31, 2005                       Signed: /s/ Pamela G. Atherton
                                                  ------------------------------

                                       4
<PAGE>

                                                                 AWARD NUMBER: 2

                                 CRDENTIA CORP.

                     RESTRICTED STOCK BONUS AWARD AGREEMENT

      1.  Issuance  of  Shares.  Crdentia  Corp.,  a Delaware  corporation  (the
"Company"),  hereby issues to the Grantee (the "Grantee") named in the Notice of
Restricted  Stock  Bonus  Award (the  "Notice"),  the Total  Number of Shares of
Common  Stock  Awarded  set forth in the Notice (the  "Shares"),  subject to the
Notice and this Restricted  Stock Bonus Award Agreement (the  "Agreement").  All
Shares issued  hereunder  will be deemed issued to the Grantee as fully paid and
nonassessable  shares, and the Grantee will have the right to vote the Shares at
meetings of the Company's  stockholders.  The Company  shall pay any  applicable
stock  transfer  taxes  imposed  upon the  issuance of the Shares to the Grantee
hereunder.

      2. Transfer  Restrictions.  The Shares issued to the Grantee hereunder may
not  be  sold,  transferred  by  gift,  pledged,   hypothecated,   or  otherwise
transferred  or  disposed  of by the  Grantee  prior to the date when the Shares
become vested pursuant to the Vesting Schedule and released from any Clawback as
set forth in the Notice. Any attempt to transfer  Restricted Shares in violation
of this Section 2 will be null and void and will be disregarded.

      3. Escrow of Stock.  For purposes of  facilitating  the enforcement of the
provisions of this Agreement,  the Grantee agrees,  immediately  upon receipt of
the certificate(s)  for the Restricted  Shares, to deliver such  certificate(s),
together  with an  Assignment  Separate  from  Certificate  in the form attached
hereto as Exhibit A,  executed in blank by the Grantee with respect to each such
stock certificate,  to the Secretary or Assistant  Secretary of the Company,  or
their designee, to hold in escrow for so long as such Restricted Shares have not
vested  pursuant to the Vesting  Schedule or been released from any Clawback set
forth  in the  Notice,  with the  authority  to take  all  such  actions  and to
effectuate all such transfers and/or releases as may be necessary or appropriate
to  accomplish  the  objectives of this  Agreement in accordance  with the terms
hereof. The Grantee hereby acknowledges that the appointment of the Secretary or
Assistant  Secretary  of the Company (or their  designee)  as the escrow  holder
hereunder with the stated authorities is a material inducement to the Company to
make this Agreement and that such appointment is coupled with an interest and is
accordingly irrevocable. The Grantee agrees that such escrow holder shall not be
liable to any party  hereto (or to any other party) for any actions or omissions
unless such escrow  holder is grossly  negligent  relative  thereto.  The escrow
holder  may rely upon any  letter,  notice  or other  document  executed  by any
signature  purported to be genuine and may resign at any time.  Upon the vesting
of  Restricted  Shares and their  release from any  Clawback,  the escrow holder
will,  without  further  order  or  instruction,  transmit  to the  Grantee  the
certificate evidencing such Shares.

                                       1
<PAGE>

      4. Additional Securities and Distributions.

            (a) Any  securities  or cash  received  (other  than a regular  cash
dividend) as the result of ownership of the Restricted  Shares (the  "Additional
Securities"),  including,  but not by way of limitation,  warrants,  options and
securities  received  as a stock  dividend or stock  split,  or as a result of a
recapitalization  or  reorganization  or other  similar  change in the Company's
capital structure, shall be retained in escrow in the same manner and subject to
the same conditions and  restrictions  as the Restricted  Shares with respect to
which they were issued, including,  without limitation, the Vesting Schedule and
Clawback  set forth in the Notice.  The Grantee  shall be entitled to direct the
Company to exercise any warrant or option received as Additional Securities upon
supplying  the funds  necessary  to do so,  in which  event  the  securities  so
purchased shall constitute Additional Securities, but the Grantee may not direct
the Company to sell any such warrant or option. If Additional Securities consist
of a convertible  security,  the Grantee may exercise any conversion  right, and
any securities so acquired shall constitute Additional Securities.  In the event
of any change in certificates evidencing the Shares or the Additional Securities
by reason of any  recapitalization,  reorganization  or other  transaction  that
results  in  the  creation  of  Additional  Securities,  the  escrow  holder  is
authorized to deliver to the issuer the  certificates  evidencing  the Shares or
the Additional  Securities in exchange for the  certificates  of the replacement
securities.

            (b) The Company  shall  disburse  to the  Grantee  all regular  cash
dividends with respect to the Shares and Additional  Securities  (whether vested
or not), less any applicable withholding obligations.

      5. Taxes.

            (a) No Section  83(b)  Election.  As a condition  to  receiving  the
Shares,  the  Grantee  agrees to refrain  from  making an  election  pursuant to
Section 83(b) of the Code with respect to the Shares.

            (b) Tax Liability.  The Grantee is ultimately liable and responsible
for all taxes owed by the Grantee in  connection  with the Award,  regardless of
any  action the  Company or any  Related  Entity  takes with  respect to any tax
withholding  obligations  that arise in connection  with the Award.  Neither the
Company nor any Related Entity makes any representation or undertaking regarding
the treatment of any tax  withholding in connection with the grant or vesting of
the Award or the subsequent sale of Shares subject to the Award. The Company and
its Related  Entities do not commit and are under no obligation to structure the
Award to reduce or eliminate the Grantee's tax liability.

            (c) Payment of Withholding  Taxes.  Prior to any event in connection
with the Award  (e.g.,  vesting or release of shares from a  Clawback)  that the
Company determines may result in any tax withholding obligation,  whether United
States  federal,  state,  local  or  non-U.S.,   including  any  employment  tax
obligation (the "Tax Withholding Obligation"),  the Grantee must arrange for the
satisfaction  of the  minimum  amount of such Tax  Withholding  Obligation  in a
manner acceptable to the Company.

                                       2
<PAGE>

                  (i) By Share  Withholding.  The Grantee authorizes the Company
to,  upon the  exercise  of its sole  discretion,  withhold  from  those  Shares
issuable  to the Grantee the whole  number of Shares  sufficient  to satisfy the
minimum applicable Tax Withholding Obligation. The Grantee acknowledges that the
withheld  Shares may not be  sufficient  to satisfy  the  Grantee's  minimum Tax
Withholding Obligation. Accordingly, the Grantee agrees to pay to the Company or
any Related Entity as soon as practicable,  including through additional payroll
withholding,  any amount of the Tax Withholding Obligation that is not satisfied
by the withholding of Shares described above.

                  (ii) By Sale of  Shares.  Unless  the  Grantee  determines  to
satisfy the Tax  Withholding  Obligation by some other means in accordance  with
clause (iii) below,  the  Grantee's  acceptance  of this Award  constitutes  the
Grantee's  instruction and  authorization  to the Company and any brokerage firm
determined  acceptable  to the Company for such purpose to sell on the Grantee's
behalf a whole number of Shares from those Shares issuable to the Grantee as the
Company  determines to be  appropriate  to generate cash proceeds  sufficient to
satisfy the minimum applicable Tax Withholding  Obligation.  Such Shares will be
sold on the day such Tax Withholding  Obligation arises (e.g., a vesting date or
release from Clawback) or as soon thereafter as practicable. The Grantee will be
responsible  for all  broker's  fees and other  costs of sale,  and the  Grantee
agrees to  indemnify  and hold the  Company  harmless  from any  losses,  costs,
damages,  or expenses  relating to any such sale.  To the extent the proceeds of
such sale exceed the Grantee's minimum Tax Withholding  Obligation,  the Company
agrees to pay such excess in cash to the Grantee.  The Grantee acknowledges that
the Company or its designee is under no  obligation  to arrange for such sale at
any  particular  price,  and  that  the  proceeds  of any  such  sale may not be
sufficient  to  satisfy  the  Grantee's  minimum  Tax  Withholding   Obligation.
Accordingly,  the Grantee  agrees to pay to the Company or any Related Entity as
soon as practicable,  including  through  additional  payroll  withholding,  any
amount of the Tax  Withholding  Obligation  that is not satisfied by the sale of
Shares described above.

                  (iii) By Check,  Wire Transfer or Other Means. At any time not
less than five (5)  business  days (or such  fewer  number of  business  days as
determined by the Board) before any Tax Withholding  Obligation  arises (e.g., a
vesting  date),  the Grantee may elect to satisfy the Grantee's Tax  Withholding
Obligation by delivering to the Company an amount that the Company determines is
sufficient  to satisfy the Tax  Withholding  Obligation  by (x) wire transfer to
such  account as the  Company  may direct,  (y)  delivery  of a certified  check
payable to the Company,  or (z) such other means as specified  from time to time
by the Board.

      6.  Stop-Transfer   Notices.  In  order  to  ensure  compliance  with  the
restrictions on transfer set forth in this Agreement or the Notice,  the Company
may issue  appropriate  "stop  transfer"  instructions to its transfer agent, if
any, and, if the Company  transfers its own securities,  it may make appropriate
notations to the same effect in its own records.

      7. Refusal to Transfer.  The Company shall not be required (i) to transfer
on its  books  any  Shares  that have  been  sold or  otherwise  transferred  in
violation of any of the  provisions of this  Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay  dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

                                       3
<PAGE>

      8.  Restrictive  Legends.  The  Grantee  understands  and agrees  that the
Company  shall  cause the  legends  set  forth  below or  legends  substantially
equivalent thereto, to be placed upon any certificate(s) evidencing ownership of
the Shares  together  with any other legends that may be required by the Company
or by state or federal securities laws:

            THE SHARES  REPRESENTED  BY THIS  CERTIFICATE  ARE RESTRICTED BY THE
            TERMS OF THAT CERTAIN RESTRICTED STOCK BONUS AWARD AGREEMENT BETWEEN
            THE COMPANY AND THE NAMED  STOCKHOLDERS.  THE SHARES  REPRESENTED BY
            THIS  CERTIFICATE  MAY BE TRANSFERRED  ONLY IN ACCORDANCE  WITH SUCH
            AGREEMENT,  A COPY OF WHICH IS ON FILE  WITH  THE  SECRETARY  OF THE
            COMPANY.

      9.  Entire  Agreement:  Governing  Law.  The  Notice  and  this  Agreement
constitute  the entire  agreement  of the  parties  with  respect to the subject
matter  hereof  and  supersede  in their  entirety  all prior  undertakings  and
agreements  of the Company and the Grantee  with  respect to the subject  matter
hereof,  and may not be modified  adversely to the Grantee's  interest except by
means of a writing signed by the Company and the Grantee.  These  agreements are
to be construed  in  accordance  with and  governed by the internal  laws of the
State of Texas without  giving effect to any choice of law rule that would cause
the application of the laws of any jurisdiction  other than the internal laws of
the State of Texas to the rights and duties of the parties. Should any provision
of the Notice or this  Agreement be determined  to be illegal or  unenforceable,
the other  provisions  shall  nevertheless  remain  effective  and shall  remain
enforceable.

      10.  Headings.  The  captions  used in this  Agreement  are  inserted  for
convenience and shall not be deemed a part of this Agreement for construction or
interpretation.

      11.  Administration and Interpretation.  Any question or dispute regarding
the  administration  or  interpretation of the Notice or this Agreement shall be
submitted by the Grantee or by the Company to the Board.  The resolution of such
question or dispute by the Board shall be final and binding on all persons.

      12.  Venue and  Waiver of Jury  Trial.  The  parties  agree that any suit,
action, or proceeding arising out of or relating to the Notice or this Agreement
shall be brought in the United States  District Court for the Northern  District
of Texas (or should such court lack  jurisdiction  to hear such action,  suit or
proceeding, in a Texas state court in the County of Dallas) and that the parties
shall submit to the jurisdiction of such court. The parties  irrevocably  waive,
to the fullest extent  permitted by law, any objection the party may have to the
laying of venue for any such suit,  action or proceeding  brought in such court.
THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL
OF ANY SUCH SUIT,  ACTION OR PROCEEDING.  If any one or more  provisions of this
Section 12 shall for any  reason be held  invalid  or  unenforceable,  it is the
specific  intent of the parties  that such  provisions  shall be modified to the
minimum extent necessary to make it or its application valid and enforceable.

                                       4
<PAGE>

      13. Notices.  Any notice required or permitted hereunder shall be given in
writing  and shall be deemed  effectively  given upon  personal  delivery,  upon
deposit for  delivery by an  internationally  recognized  express  mail  courier
service or upon  deposit in the United  States  mail by  certified  mail (if the
parties are within the United States), with postage and fees prepaid,  addressed
to the other  party at its  address  as shown in these  instruments,  or to such
other  address as such party may  designate  in writing from time to time to the
other party.

      14. Corporate Transaction.

            (a) In the event of a Corporate  Transaction  and for the portion of
the Award that is neither  Assumed nor  Replaced,  (i) such portion of the Award
shall  automatically  become  fully  vested  for all of the  Shares  at the time
represented  by such  portion  of the  Award  and  released  from any  Clawback,
immediately prior to the specified effective date of such Corporate Transaction,
provided that the Grantee's  Continuous Service has not terminated prior to such
date  and  (ii)  the  Award  shall be  subject  to the  terms  of the  agreement
implementing  the  Corporate  Transaction  between the Company and the successor
entity or Parent  thereof and the Grantee  shall be deemed to have agreed to the
terms of such agreement applicable to the Award.

            (b) In the event of a Corporate  Transaction  and for the portion of
the  Award  that is  Assumed  or  Replaced,  then the Award  (if  Assumed),  the
replacement  award (if Replaced),  or the cash  incentive  program (if Replaced)
automatically  shall  become  fully  vested  and  released  from  any  Clawback,
exercisable  and payable for all of the Shares at the time  represented  by such
Assumed or Replaced  portion of the Award,  immediately  upon termination of the
Grantee's  Continuous Service if such Continuous  Service is terminated,  within
five (5) years after the Corporate  Transaction,  by the successor company,  the
Company or a Related  Entity  without Cause or  voluntarily  by the Grantee with
Good  Reason.  Notwithstanding  the  foregoing,  if upon the  consummation  of a
Corporate  Transaction the Award is Replaced,  the Award shall terminate and any
Restricted  Shares held by the Grantee shall be deemed reconveyed to the Company
as if the Grantee's  Continuous Service had terminated  immediately prior to the
effective date of such Corporate Transaction.

      15. Definitions. As used herein, the following definitions shall apply:

            (a) "Applicable Laws" means the legal requirements applicable to the
issuance of Awards,  if any, under applicable  provisions of federal  securities
laws, state corporate and securities laws, the Code, the rules of any applicable
stock  exchange  or  national  market  system,  and the  rules  of any  non-U.S.
jurisdiction applicable to Awards granted to residents therein.

            (b) "Assumed" means that pursuant to a Corporate  Transaction either
(i) the Award is  expressly  affirmed  by the  Company  or (ii) the  contractual
rights and obligations  represented by the Award are expressly  assumed (and not
simply by operation of law) by the successor  entity or its Parent in connection
with the Corporate  Transaction with  appropriate  adjustments to the number and
type of securities of the  successor  entity or its Parent  subject to the Award
and the  exercise  or  purchase  price  thereof  which  at least  preserves  the
compensation  element  of the  Award  existing  at  the  time  of the  Corporate
Transaction  as determined in accordance  with the  instruments  evidencing  the
agreement to assume the Award.

                                       5
<PAGE>

            (c) "Award" means the sale of Restricted Shares hereunder.

            (d) "Board"  means the Board of  Directors  of the Company and shall
include any  committee of the Board or Officer of the Company to which the Board
has delegated its authority under this Agreement.

            (e) "Cause" means, with respect to the termination by the Company or
a Related Entity of the Grantee's  Continuous Service,  that such termination is
for  "Cause"  as such term is  expressly  defined  in a  then-effective  written
agreement  between the Grantee and the Company or such Related Entity, or in the
absence of such then-effective written agreement and definition, is based on, in
the  determination  of the Board,  the Grantee's:  (i) performance of any act or
failure to perform any act in bad faith and to the detriment of the Company or a
Related Entity;  (ii) dishonesty,  intentional  misconduct or material breach of
any agreement  with the Company or a Related  Entity;  or (iii)  commission of a
crime  involving  dishonesty,  breach of trust, or physical or emotional harm to
any person.

            (f) "Code" means the Internal Revenue Code of 1986, as amended.

            (g) "Common Stock" means the common stock of the Company.

            (h) "Company" means Crdentia Corp., a Delaware corporation.

            (i)  "Consultant"  means any person  (other  than an  Employee  or a
Director, solely with respect to rendering services in such person's capacity as
a  Director)  who is engaged  by the  Company  or any  Related  Entity to render
consulting or advisory services to the Company or such Related Entity.

            (j) "Continuous Service" means that the provision of services to the
Company or a Related Entity in any capacity of Employee, Director or Consultant,
is not interrupted or terminated.  In jurisdictions  requiring notice in advance
of an effective termination as an Employee,  Director or Consultant,  Continuous
Service  shall be deemed  terminated  upon the  actual  cessation  of  providing
services to the Company or a Related Entity  notwithstanding any required notice
period that must be fulfilled  before a termination as an Employee,  Director or
Consultant can be effective  under  Applicable  Laws.  The Grantee's  Continuous
Service shall be deemed to have terminated either upon an actual  termination of
Continuous  Service or upon the entity for which the Grantee  provides  services
ceasing  to be a Related  Entity.  Continuous  Service  shall not be  considered
interrupted  in the case of (i) any approved  leave of absence,  (ii)  transfers
among the Company,  any Related  Entity,  or any  successor,  in any capacity of
Employee,  Director or Consultant,  or (iii) any change in status as long as the
individual  remains  in the  service of the  Company or a Related  Entity in any
capacity of Employee,  Director or Consultant  (except as otherwise  provided in
the Award  Agreement).  An approved  leave of absence  shall include sick leave,
military leave, or any other authorized personal leave.

                                       6
<PAGE>

            (k) "Corporate Transaction" means any of the following transactions,
provided,  however,  that the Board  shall  determine  under  parts (iv) and (v)
whether multiple transactions are related, and its determination shall be final,
binding and conclusive:

                  (i) a merger or  consolidation in which the Company is not the
surviving entity,  except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated;

                  (ii)  the  sale,  transfer  or  other  disposition  of  all or
substantially  all of the assets of the Company  (including the capital stock of
the Company's subsidiary corporations);

                  (iii) the complete liquidation or dissolution of the Company;

                  (iv) any  reverse  merger or series  of  related  transactions
culminating in a reverse merger  (including,  but not limited to, a tender offer
followed by a reverse  merger) in which the Company is the surviving  entity but
(A) the shares of Common Stock outstanding  immediately prior to such merger are
converted or exchanged by virtue of the merger into other  property,  whether in
the form of securities, cash or otherwise, or (B) in which securities possessing
more  than  fifty  percent  (50%)  of the  total  combined  voting  power of the
Company's  outstanding  securities  are  transferred  to  a  person  or  persons
different from those who held such securities  immediately  prior to such merger
or the initial  transaction  culminating in such merger,  but excluding any such
transaction or series of related  transactions  that the Board  determines shall
not be a Corporate Transaction; or

                  (v) acquisition in a single or series of related  transactions
by any  person or  related  group of  persons  (other  than the  Company or by a
Company-sponsored  employee  benefit plan) of beneficial  ownership  (within the
meaning of Rule 13d-3 of the Exchange  Act) of securities  possessing  more than
fifty  percent  (50%)  of the  total  combined  voting  power  of the  Company's
outstanding  securities but excluding any such  transaction or series of related
transactions that the Board determines shall not be a Corporate Transaction.

            (l) "Director" means a member of the Board or the board of directors
of any Related Entity.

            (m)  "Disability"  means  as such  term is  expressly  defined  in a
then-effective  written  agreement  between  the Grantee and the Company or such
Related Entity, or in the absence of such  then-effective  written agreement and
definition,  as defined under the long-term  disability policy of the Company or
the Related Entity to which the Grantee provides services  regardless of whether
the Grantee is covered by such  policy.  In the  absence of a written  agreement
containing a definition of disability  and if the Company or the Related  Entity
to which the Grantee provides service does not have a long-term  disability plan
in  place,  "Disability"  means  that a  Grantee  is  unable  to  carry  out the
responsibilities  and functions of the position held by the Grantee by reason of
any medically  determinable  physical or mental  impairment  for a period of not
less than ninety (90) consecutive days. A Grantee will not be considered to have
incurred  a  Disability  unless  he or she  furnishes  proof of such  impairment
sufficient to satisfy the Board in its discretion.

                                       7
<PAGE>

            (n) "Employee"  means any person,  including an Officer or Director,
who is in the  employ of the  Company  or any  Related  Entity,  subject  to the
control and  direction of the Company or any Related  Entity as to both the work
to be  performed  and the  manner and method of  performance.  The  payment of a
director's  fee by the Company or a Related  Entity shall not be  sufficient  to
constitute "employment" by the Company.

            (o)  "Exchange  Act" means the  Securities  Exchange Act of 1934, as
amended.

            (p) "Fair Market Value" means,  as of any date,  the value of Common
Stock determined as follows:

                  (i) If the Common  Stock is listed on one or more  established
stock  exchanges or national market systems,  including  without  limitation The
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market  Value  shall be the closing  sales price for such stock (or the
closing bid, if no sales were  reported) as quoted on the principal  exchange or
system on which the Common Stock is listed (as  determined  by the Board) on the
date of determination (or, if no closing sales price or closing bid was reported
on that date, as  applicable,  on the last trading date such closing sales price
or closing bid was  reported),  as  reported in The Wall Street  Journal or such
other source as the Board deems reliable;

                  (ii) If the Common Stock is  regularly  quoted on an automated
quotation  system  (including  the  OTC  Bulletin  Board)  or  by  a  recognized
securities  dealer,  its Fair Market Value shall be the closing  sales price for
such stock as quoted on such system or by such securities  dealer on the date of
determination,  but if selling prices are not reported, the Fair Market Value of
a share of Common  Stock  shall be the mean  between  the high bid and low asked
prices for the Common Stock on the date of determination  (or, if no such prices
were  reported on that date,  on the last date such prices  were  reported),  as
reported  in The Wall  Street  Journal or such other  source as the Board  deems
reliable; or

                  (iii) In the absence of an  established  market for the Common
Stock of the type  described  in (i) and  (ii),  above,  the Fair  Market  Value
thereof shall be determined by the Board in good faith.

            (q) "Good  Reason"  means  the  occurrence  of any of the  following
events or conditions  unless  consented to by the Grantee (and the Grantee shall
be deemed to have  consented to any such event or  condition  unless the Grantee
provides written notice of the Grantee's  non-acquiescence within 30 days of the
effective time of such event or condition):

                  (i) a reduction in the Grantee's  base salary to a level below
that in effect at any time within the preceding six (6) months; or

                  (ii)  requiring the Grantee to be based at any place outside a
45-mile radius from the Grantee's job location  except for  reasonably  required
travel on business.

            (r)  "Officer"  means a person who is an officer of the Company or a
Related  Entity  within the  meaning of Section 16 of the  Exchange  Act and the
rules and regulations promulgated thereunder.

                                       8
<PAGE>

            (s) "Parent" means a "parent  corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

            (t) "Related  Entity"  means any Parent or Subsidiary of the Company
and any business, corporation,  partnership,  limited liability company or other
entity in which the Company or a Parent or a Subsidiary  of the Company  holds a
substantial ownership interest, directly or indirectly.

            (u) "Replaced"  means that pursuant to a Corporate  Transaction  the
Award is replaced with a comparable  stock award or a cash incentive  program of
the Company,  the successor  entity (if  applicable) or Parent of either of them
which preserves the  compensation  element of such Award existing at the time of
the Corporate  Transaction and provides for subsequent payout in accordance with
the same (or a more favorable)  vesting  schedule  applicable to such Award. The
determination  of  Award  comparability  shall  be  made  by the  Board  and its
determination shall be final, binding and conclusive.

            (v) "Share" means a share of the Common Stock.

            (w) "Subsidiary"  means a "subsidiary  corporation,"  whether now or
hereafter existing, as defined in Section 424(f) of the Code.

                                END OF AGREEMENT

                                       9
<PAGE>

                                    EXHIBIT A

                   STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

            FOR VALUE  RECEIVED,  Pamela G. Atherton  hereby sells,  assigns and
transfers  unto  _______________________,  _______ shares of the Common Stock of
Crdentia Corp., a Delaware corporation (the "Company"),  standing in his name on
the books of, the Company  represented by Certificate No. __ herewith,  and does
hereby irrevocably  constitute and appoint the Secretary of the Company attorney
to  transfer  the said  stock in the books of the  Company  with  full  power of
substitution.

DATED:
      ------------
                                                 /s/ Pamela G. Atherton
                                                 -------------------------------

[PLEASE SIGN THIS DOCUMENT BUT DO NOT DATE IT. THE DATE AND  INFORMATION  OF THE
TRANSFEREE WILL BE COMPLETED IF AND WHEN THE SHARES ARE ASSIGNED.]

                                       10

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