Document:

Exhibit 10.5

 

THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR UNDER THE SECURITIES LAWS OF ANY
STATE OR JURISDICTION AND MAY NOT BE SOLD, OFFERED FOR SALE OR OTHERWISE
TRANSFERRED UNLESS REGISTERED OR QUALIFIED UNDER THE ACT AND APPLICABLE STATE
SECURITIES LAWS OR UNLESS THE COMPANY RECEIVES AN OPINION, IN REASONABLY
ACCEPTABLE FORM AND SCOPE, OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY, THAT REGISTRATION, QUALIFICATION OR OTHER SUCH ACTIONS ARE NOT
REQUIRED UNDER ANY SUCH LAWS.

 

CRDENTIA
CORP.

 

WARRANT TO PURCHASE SHARES
OF COMMON STOCK

(Expires February 28, 2014)

 

	
  Warrant
  No. CV-1

  	
   

  	
  8,000,000 Shares of Common Stock

  

 

FOR VALUE RECEIVED, subject
to the provisions set forth below, the undersigned, CRDENTIA CORP., a Delaware
corporation (the “Company”),
hereby certifies that ComVest Capital, LLC, a Delaware limited liability
company, or its registered assigns (the “Holder”),
is entitled to purchase from the Company up to eight million (8,000,000) fully
paid and nonassessable shares (the “Warrant
Shares”) of the Company’s common stock, $.0001 par value per share
(the “Common Shares”), for cash at
a price of $.001 per share (the “Exercise Price”)
at any time and from time to time from and after the earlier of (a) August 22,
2008, or (b) any Event of Default or Sale (as such terms are defined in
the Revolving Credit and Term Loan Agreement dated as of February 22, 2008
by and between ComVest Capital, LLC and the Company) which causes the
acceleration or mandatory prepayment of all Obligations under and as defined in
such Revolving Credit and Term Loan Agreement (the “Commencement
Date”), and until 5:00 p.m. (Central time) on February 28,
2014 (the “Expiration Date”), upon
surrender to the Company at its principal office (or at such other location as
the Company may advise the Holder in writing) of this Warrant properly endorsed
with the Notice of Exercise attached hereto duly filled in and signed and, if
applicable, upon payment in cash or by check of the aggregate Exercise Price
for the number of shares for which this Warrant is being exercised determined
in accordance with the provisions hereof. 
The Exercise Price and the number of shares purchasable hereunder are subject
to adjustment as provided in Section 3 of this Warrant.

 

1.             Exercise of
Warrant.

 

1.1.         Exercise.  This Warrant shall be exercisable at any time
and from time to time from the Commencement Date until the Expiration Date, and
this Warrant shall expire on the Expiration Date.  Upon exercise of this Warrant, the Exercise
Price shall be payable in cash or by check. 
This Warrant may be exercised in whole or in part so long as any
exercise in part hereof would not involve the issuance of fractional Warrant Shares
or the payment of fractional cents.  If
exercised in part, the Company shall deliver to the Holder a new Warrant,
identical in form to this Warrant, in the name of the Holder, evidencing the
right to purchase the number of Warrant Shares as to which this Warrant has not
been exercised, which new Warrant shall be 

 

 

signed
by an appropriate officer of the Company. 
The term “Warrant” as used herein shall include any subsequent Warrant
issued as provided herein.

 

1.2.         Exercise Procedures; Delivery of
Certificate.  Upon
surrender of this Warrant with a duly executed Notice of Exercise in the form
of Annex A attached hereto, together with payment of the Exercise
Price for the Warrant Shares purchased, at the Company’s principal executive
offices (the “Designated Office”),
the Holder shall be entitled to receive a certificate or certificates for the
Warrant Shares so purchased.  The Company
agrees that the Warrant Shares shall be deemed to have been issued to the
Holder as of the close of business on the date on which this Warrant shall have
been surrendered together with the Notice of Exercise and payment for such
Warrant Shares.

 

1.3.         Cashless Exercise.  Anything elsewhere contained herein to the
contrary notwithstanding, in lieu of payment of the Exercise Price, a Holder
may exercise this Warrant, in whole or in part, by presentation and surrender
of this Warrant to the Company, together with a Cashless Exercise Form in
the form attached hereto as Annex B (or a reasonable facsimile
thereof) duly executed (a “Cashless Exercise”).  Such presentation and surrender shall be
deemed a waiver of the Holder’s obligation to pay all or any portion of the
Exercise Price, as the case may be.  In
the event of a Cashless Exercise, the Holder shall exchange this Warrant for
that number of Common Shares determined by multiplying the number of Common
Shares for which this Warrant is being exercised by a fraction, (a) the
numerator of which shall be the difference between (i) the then current
market price per Common Share, and (ii) the Exercise Price, and (b) the
denominator of which shall be the then current market price per Common
Share.  For purposes of any computation
under this Section l.3, the then current market price per Common Share at
any date shall be deemed to be the average of the daily trading price for the
ten (10) consecutive trading days immediately prior to the Cashless
Exercise.  If, during such measuring
period, there shall occur any event which gives rise to any adjustment of the
Exercise Price, then a corresponding adjustment shall be made with respect to
the closing prices of the Common Shares for the days prior to the Effective
Date of such adjustment event.  As used
herein, the term “trading price” on any relevant date means (A) if the
Common Stock is listed for trading on the New York Stock Exchange, the American
Stock Exchange, the NASDAQ Global Market, or the NASDAQ Global Select Market,
the closing sale price (or, if no closing sale price is reported, the last
reported sale price) of the Common Stock (regular way), or (B) if the
Common Stock is not so listed but quotations for the Common Stock are reported
on the OTC Bulletin Board, the most recent closing price as reported on the OTC
Bulletin Board.

 

2.             Transfer; Issuance
of Stock Certificates; Restrictive Legends.

 

2.1.         Transfer.  Each transfer of this Warrant and all rights
hereunder, in whole or in part, shall be registered on the books of the Company
to be maintained for such purpose, upon surrender of this Warrant at the
Designated Office, together with a written assignment of this Warrant in the
form of Annex C attached hereto duly executed by the Holder or its
agent or attorney.  Upon such surrender
and delivery, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees and in the denominations specified in
such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, if any.  A Warrant may be exercised by the new Holder
for the purchase of Warrant Shares without having a new Warrant issued.  Prior to due 

 

 

2

 

presentment
for registration of transfer thereof, the Company may deem and treat the
registered Holder of this Warrant as the absolute owner hereof (notwithstanding
any notations of ownership or writing thereon made by anyone other than a duly
authorized officer of the Company) for all purposes and shall not be affected
by any notice to the contrary.  All
Warrants issued upon any assignment of Warrants shall be the valid obligations
of the Company, evidencing the same rights and entitled to the same benefits as
the Warrants surrendered upon such registration of transfer or exchange.  The foregoing notwithstanding, no portion of
this Warrant shall be transferred or assigned (except to an affiliate of
ComVest Capital, LLC) prior to the Commencement Date.

 

2.2.         Stock Certificates.  Certificates for the Warrant Shares shall be
delivered to the Holder within five (5) business days after the rights
represented by this Warrant shall have been exercised pursuant to Section 1,
and a new Warrant representing the right to purchase the Common Shares, if any,
with respect to which this Warrant shall not then have been exercised shall
also be issued to the Holder within such time. 
The issuance of certificates for Warrant Shares upon the exercise of
this Warrant shall be made without charge to the Holder hereof including,
without limitation, any documentary, stamp or similar tax that may be payable
in respect thereof; provided, however, that the Company shall not
be required to pay any income tax to which the Holder hereof may be subject in
connection with the issuance of this Warrant or the Warrant Shares.

 

2.3.         Restrictive Legend. Except as
otherwise provided in this Section 2, each certificate for Warrant Shares
initially issued upon the exercise of this Warrant and each certificate for
Warrant Shares issued to any subsequent transferee of any such certificate,
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

 

“THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION IN FORM AND
FROM COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.”

 

Notwithstanding the
foregoing, the legend requirements of this Section 2.3 shall terminate as
to any particular Warrant Shares when (i) such Warrant Shares are
transferred pursuant to an effective resale registration statement, as
contemplated in the Registration Rights Agreement between the Company and the
Holder dated as of February     , 2008, or (ii) the
Company shall have received from the Holder thereof an opinion of counsel in
form and substance reasonably acceptable to the Company that such legend is not
required in order to ensure compliance with the Securities Act.  Whenever the restrictions imposed by this Section 2.3
shall terminate, the Holder or subsequent transferee, as the case may be, shall
be entitled to receive from the Company without cost to such Holder or
transferee a certificate for the Warrant Shares without such restrictive
legend.

 

3.             Adjustment of
Number of Shares; Exercise Price; Nature of Securities Issuable Upon Exercise
of Warrants.

 

 

3

 

3.1.         Exercise Price; Adjustment of Number of
Shares.  The Exercise Price and the
number of shares purchasable hereunder shall be subject to adjustment from time
to time as hereinafter provided; provided, however, that,
notwithstanding the below, in no case shall the Exercise Price be reduced to
below the par value per share of the class of stock for which this Warrant is
exercisable at such time.

 

3.2.         Adjustments Upon Distribution,
Subdivision or Combination.  If the Company, at any time or from time to
time after the issuance of this Warrant, shall (a) make a dividend or
distribution on its Common Shares payable in Common Shares, (b) subdivide
or reclassify the outstanding Common Shares into a greater number of shares, or
(c) combine or reclassify the outstanding Common Shares into a smaller
number of shares, the Exercise Price in effect at that time and the number of
Warrant Shares into which the Warrant is exercisable at that time shall be
proportionately adjusted effective as of the record date for the dividend or
distribution or the effective date of the subdivision, combination or
reclassification.

 

3.3.         Adjustment Upon Other Distributions.  If the Company, at any time or from time to
time after the issuance of this Warrant, makes a distribution to the holders of
Common Shares which is payable in cash, securities of the Company other than
Common Shares or any other property, then, in each such event, provision shall
be made so that the Holder shall receive upon exercise of this Warrant, in
addition to the number of Warrant Shares, the amount of such cash, securities
or other property which would have been received if the portion of the Warrant
so exercised had been exercised for Warrant Shares on the date of such event,
subject to adjustments subsequent to the date of such event with respect to any
such distributed securities which shall be on terms as nearly equivalent as
practicable to the adjustments provided in this Section 3 and all other
adjustments under this Section 3.

 

3.4.         Adjustment Upon Merger, Consolidation
or Exchange.  If at any
time or from time to time after the issuance of this Warrant there occurs any
merger, consolidation, arrangement or statutory share exchange of the Company
with or into any other person or company, then, in each such event, provision
shall be made so that the Holder shall receive upon exercise of this Warrant
the kind and amount of shares and other securities and property (including
cash) which would have been received upon such merger, consolidation,
arrangement or statutory share exchange by the Holder if the portion of this
Warrant so exercised had been exercised for Warrant Shares immediately prior to
such merger, consolidation, arrangement or statutory share exchange, subject to
adjustments for events subsequent to the effective date of such merger,
consolidation, arrangement or statutory share exchange with respect to such
shares and other securities which shall be on terms as nearly equivalent as
practicable to the adjustments provided in this Section 3 and all other
adjustments under this Section 3.

 

3.5.         Adjustments for Recapitalization or
Reclassification.  If, at any time
or from time to time after the issuance of this Warrant, the Warrant Shares
issuable upon exercise of this Warrant are changed into the same or a different
number of securities of any class of the Company, whether by recapitalization,
reclassification or otherwise (other than a merger, consolidation, arrangement
or statutory share exchange provided for elsewhere in this Section 3),
then, in each such event, provision shall be made so that the Holder shall
receive upon exercise of this Warrant the kind and amount of securities or
other property which would have been received in connection with such
recapitalization, reclassification or other change by the Holder 

 

 

4

 

if
the portion of this Warrant so exercised had been exercised immediately prior
to such recapitalization, reclassification or change, subject to adjustments
for events subsequent to the effective date of such recapitalization,
reclassification or other change with respect to such securities which shall be
on terms as nearly equivalent as practicable to the adjustments provided in
this Section 3 and all other adjustments under this Section 3.

 

3.6          Adjustment Upon
Certain Issuances of Common Stock.

 

(a)           If the Company, at any time or from
time to time, issues or sells any Additional Shares of Common Stock (as defined
below), other than as provided in the foregoing subsections of this Section 3,
for a price per share (which, in the case of options, warrants, convertible
securities or other rights, includes the amounts paid therefor plus the
exercise price, conversion price or other such amounts payable thereunder) that
is less than the Exercise Price then in effect, then and in each such case, the
then applicable Exercise Price shall automatically be reduced as of the opening
of business on the date of such issue or sale, to a price determined by
multiplying the Exercise Price  then in
effect by a fraction (i) the numerator of which shall be (A) the
number of Common Shares deemed outstanding (as determined below) immediately
prior to such issue or sale, plus (B) the number of Common Shares which
the aggregate consideration received by the Company for the total number of
Additional Shares of Common Stock so issued would purchase at such Exercise
Price, and (ii) the denominator of which shall be the number of Common
Shares deemed outstanding (as defined below) immediately prior to such issue or
sale plus the total number of Additional Shares of Common Stock so issued; provided,
however, that upon the expiration or other termination of options,
warrants or other rights to purchase or acquire Common Shares which triggered
any adjustment under this Section 3.6, and upon the expiration or
termination of the right to convert or exchange convertible or exchangeable
securities (whether by reason of redemption or otherwise) which triggered any
adjustment under this Section 3.6, if any thereof shall not have been
exercised, converted or exchanged, as applicable, the number of Common Shares
deemed to be outstanding pursuant to this Section 3.6(a) shall be
reduced by the number of shares as to which options, warrants, and rights to
purchase or acquire Common Shares shall have expired or terminated unexercised,
and as to which conversion or exchange rights shall have expired or terminated
unexercised, and such number of shares shall no longer be deemed to be
outstanding; and the Exercise Price then in effect shall forthwith be
readjusted and thereafter be the price that it would have been had adjustment
been made on the basis of the issuance only of the Common Shares actually
issued.  For purposes of the preceding
sentence, the number of Common Shares deemed to be outstanding as of a given
date shall be the sum of (x) the number of Common Shares actually
outstanding, (y) the number of Common Shares for which this Warrant could
be exercised on the day immediately preceding the given date, and (z) the
number of Common Shares which could be obtained through the exercise or
conversion of all other rights, options and convertible securities outstanding
on the day immediately preceding the given date.  “Additional
Shares of Common Stock” shall mean all Common Shares, and all
options, warrants, convertible securities or other rights to purchase or
acquire Common Shares, issued by the Company other than (i) Common Shares
issued pursuant to the exercise of options, warrants or convertible securities
outstanding on February 22, 2008 (including, without limitation, this
Warrant), or hereafter issued from time to time pursuant to and in accordance
with stock purchase or stock option plans as in effect on February 22,
2008, and (ii) Common Shares and/or options, warrants or other Common
Share purchase rights for up to an aggregate of 5,000,000 

 

 

5

 

Common
Shares (such number to be subject to adjustment in accordance with Section 3.2
above), where such shares, options, warrants or other rights are issued both (A) at
prices or with exercise prices per Common Share at or above the then-current
fair market value of a Common Share, as determined in good faith by the Board
of Directors of the Company or the Compensation Committee thereof, and (B) to
employees, officers or directors of, or consultants to, or acquisition targets
of, the Company or any subsidiary pursuant to stock purchase or stock option
plans or other arrangements that are approved by the Company’s Board of
Directors or the Compensation Committee thereof, and/or by the Company’s
stockholders.

 

(b)           In the event that the exercise price,
conversion price, purchase price or other price at which Common Shares are
purchasable pursuant to any options, warrants, convertible securities or other
rights to purchase or acquire Common Shares is reduced at any time or from time
to time (other than under or by reason of provisions designed to protect
against dilution), then, upon such reduction becoming effective, the Exercise
Price then in effect hereunder shall forthwith be decreased to such Exercise
Price as would have been obtained had the adjustments made and required under
this Section 3.6 upon the issuance of such options, warrants, convertible
securities or other rights been made upon the basis of (and the total
consideration received therefor) (i) the issuance of the number of Common
Shares theretofore actually delivered upon the exercise, conversion or exchange
of such options, warrants, convertible securities or other rights, (ii) the
issuance of all of the Common Shares and all other options, warrants,
convertible securities and other rights to purchase or acquire Common Shares
issued after the issuance of the modified options, warrants, convertible
securities or other rights, and (iii) the original issuance at the time of
the reduction of any such options, warrants, convertible securities or other
rights then still outstanding.

 

(c)           In no event shall an adjustment under
this Section 3.6 be made if it would result in an increase in the then
applicable Exercise Price.

 

3.7.         Certificate of Adjustment.  Whenever the Exercise Price and/or the number
of Warrant Shares receivable upon exercise of this Warrant is adjusted, the
Company shall promptly deliver to the Holder a certificate of adjustment,
setting forth the Exercise Price and/or Warrant Shares issuable after
adjustment, a brief statement of the facts requiring the adjustment and the
computation by which the adjustment was made. 
The certificate of adjustment shall be prima facie evidence of the
correctness of the adjustment.

 

3.8.         Successive Adjustments.  The provisions of this Section 3 shall
be applicable successively to each event described herein which may occur
subsequent to the issuance of this Warrant and prior to the exercise in full of
this Warrant.

 

3.9.         No Impairment.  The Company will
not, by amendment of its incorporation documents or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder.  Without limitation of the foregoing, the
Company shall not take any action which would cause the par value of the Common
Shares to exceed the then-effective Exercise Price.

 

 

6

 

4.             Registration; Exchange and Replacement of Warrant;
Reservation of Shares.  The
Company shall keep at the Designated Office a register in which the Company
shall provide for the registration, transfer and exchange of this Warrant.  The Company shall not at any time, except upon
the dissolution, liquidation or winding-up of the Company, close such register
so as to result in preventing or delaying the exercise or transfer of this
Warrant.

 

The Company may deem and
treat the person in whose name this Warrant is registered as the Holder and
owner hereof for all purposes and shall not be affected by any notice to the
contrary, until presentation of this Warrant for registration or transfer as
provided in this Section 4.

 

Upon receipt by the Company
of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant and (in case of loss, theft or destruction) of the
Holder’s indemnity in form satisfactory to the Company, and (in the case of
mutilation) upon surrender and cancellation of this Warrant, the Company will
(in the absence of notice to the Company that the Warrant has been acquired by
a bona fide purchaser) make and deliver a new Warrant of like tenor in lieu of
this Warrant, without requiring the posting of any bond or the giving of any security.

 

The Company shall at all
times reserve and keep available out of its authorized shares of capital stock,
solely for the purpose of issuance upon the exercise of this Warrant, such
number of Common Shares as shall be issuable upon the exercise hereof.  The Company covenants and agrees that, upon
exercise of this Warrant and payment of the Exercise Price therefor, if
applicable, all Warrant Shares issuable upon such exercise shall be duly and
validly authorized and issued, fully paid and nonassessable.

 

5.             Investment Representations.  The Holder, by accepting this Warrant,
covenants and agrees that, at the time of exercise of this Warrant, if the
Warrant Shares shall not then be the subject of an effective registration
statement under the Act, the securities acquired by the Holder upon exercise
hereof are for the account of the Holder or are being acquired for its own
account for investment and are not acquired with a view to, or for sale in
connection with, any distribution thereof (or any portion thereof) and with no
present intention (at such time) of offering and distributing such securities
(or any portion thereof), except in compliance with applicable federal and
state securities laws.

 

6.             Fractional Warrants and Fractional Shares.  If the number of Warrant Shares purchasable
upon the exercise of this Warrant is adjusted pursuant to Section 3
hereof, the Company shall nevertheless not be required to issue fractions of
shares upon exercise of this Warrant or otherwise, or to distribute
certificates that evidence fractional shares. 
With respect to any fraction of a share called for upon any exercise
hereof, the Company shall pay to the Holder an amount in cash equal to such
fraction multiplied by the current market value of a Common Share (determined
in accordance with the last sentence of Section 1.3 above).

 

7.             Warrant Holders Not Deemed Stockholders.  No Holder of this Warrant shall, as such, be
entitled to vote or to receive dividends (except to the extent provided in Section 3.2
above) or be deemed the holder of Warrant Shares that may at any time be
issuable upon exercise of this Warrant, nor shall anything contained herein be
construed to confer upon the 

 

 

7

 

Holder
of this Warrant, as such, any of the rights of a stockholder of the Company or
any right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action (whether upon any recapitalization, issue or reclassification
of stock, change of par value or change of stock to no par value,
consolidation, merger or conveyance or otherwise), or to receive notice of
meetings, or subscription rights, until such Holder shall have exercised this
Warrant and been issued Warrant Shares or deemed to have been issued Warrant
Shares in accordance with the provisions hereof.

 

8.             Notices.  Any notice which is required to be given by
this Warrant must be in writing, and shall be given or served, unless otherwise
expressly provided herein, by depositing the same in the United States Mail,
postpaid and certified and addressed to the party to be notified, with return
receipt requested, or by delivering the same by courier or in person to such
party (or, if the party or parties to be notified be incorporated, to an
officer of such party).  Notice deposited
in the mail, postpaid and certified with return receipt requested, shall be
deemed received and effective upon the deposit in a proper United States
depository.  Notice given in any other
manner shall be effective only if and when received by the party to be
notified.  For the purposes of notice,
the addresses of the parties for the receipt of notice hereunder are:

 

If to the Company:

Crdentia Corp.

5001 LBJ Freeway, Suite 850

Dallas, TX  75244

Attention: James TerBeest

Telephone: (972)
850-0780

Fax
No.      (972) 392-2722

 

If to the Holder:

ComVest Capital, LLC

One North Clematis,
Suite 300

West Palm Beach, Florida  33401

Attention: Chief Financial Officer

Telephone: (561)
868-6074

Fax
No.:     (212) 829-5986

 

Any party shall have the
right from time to time, and at any time, to change its address for the receipt
of notice by giving at least five (5) days’ prior written notice of the
change of its address to the other parties in the manner specified herein.

 

9.             Successors.  All the covenants, agreements,
representations and warranties contained in this Warrant shall bind the parties
hereto and their respective heirs, executors, administrators, distributees,
successors, assigns and transferees.

 

10.          Law Governing.  THIS WARRANT SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
CONFLICTS OF LAW PRINCIPLES THEREOF.

 

 

8

 

11.          Entire Agreement; Amendments and Waivers.  This Warrant, together with the Registration
Rights Agreement of even date herewith executed by the Company for the benefit
of the Holder, sets forth the entire understanding of the parties with respect
to the subject matter hereof.  The
failure of any party to seek redress for the violation or to insist upon the
strict performance of any term of this Warrant shall not constitute a waiver of
such term and such party shall be entitled to enforce such term without regard
to such forbearance.  This Warrant may be
amended, and any breach of or compliance with any covenant, agreement, warranty
or representation may be waived, only if the Company has obtained the written
consent or written waiver of the Holder, and then such consent or waiver shall
be effective only in the specific instance and for the specific purpose for
which given.

 

12.          Severability; Headings.  If any term of this Warrant as applied to any
person or to any circumstance is prohibited, void, invalid or unenforceable in
any jurisdiction, such term shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or invalidity without in any way affecting any
other term of this Warrant or affecting the validity or enforceability of this Warrant
or of such provision in any other jurisdiction. 
The Section headings in this Warrant have been inserted for
purposes of convenience only and shall have no substantive effect.

 

[The remainder of this page is
intentionally blank]

 

 

9

 

                IN WITNESS WHEREOF, the Company has caused this
Warrant to be duly executed as of the 22 day of February, 2008.

 

 

 

 

	
  CRDENTIA CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John B. Kaiser

  
	
   

  	
  Name:
  John B. Kaiser

  
	
   

  	
  Title:
  Chief Executive Officer

  

 

 

10

 

ANNEX A

 

NOTICE
OF EXERCISE

 

(To be executed upon partial
or full

exercise of the within Warrant)

 

The undersigned hereby irrevocably elects to
exercise the right to purchase
                    
shares of Common Stock of Crdentia Corp. covered by the within Warrant
according to the conditions hereof and herewith makes payment of the Exercise
Price of such shares in full in the amount of
$                            .

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Signature of Registered Holder)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

 

 

 

ANNEX B

 

CASHLESS
EXERCISE FORM

 

(To be executed upon partial or full

exercise of Warrants
pursuant to Section 1.3 of the Warrant)

 

The undersigned hereby irrevocably elects to
surrender
                        
shares of Common Stock of Crdentia Corp. purchasable under the Warrant for
                  
shares of Common Stock issuable in exchange therefor pursuant to the Cashless
Exercise provisions of the within Warrant, as provided for in Section 1.3
of such Warrant.

 

Please issue a certificate or certificates for such
Common Stock in the name of, and pay cash for fractional shares in the name of:

 

(Please print name, address, and social security number/tax
identification number:)

 

 

 

and, if said number of shares of Common Stock shall
not be all the shares of Common Stock purchasable thereunder, that a new
Warrant for the balance remaining of the shares of Common Stock purchasable
under the within Warrants be registered in the name of the undersigned Holder
or its transferee as below indicated and delivered to the address stated below.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name
  of Warrant Holder

  	
   

  
	
  or
  transferee:

  	
   

  
	
   

  	
  (Please print)

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  
						

 

	
  NOTICE:

  	
   

  	
  The
  signature on this form must correspond with the name as written upon the face
  of this Warrant in every particular, without alteration or enlargement or any
  change whatsoever.

  

 

 

 

ANNEX C

 

ASSIGNMENT
FORM

 

FOR VALUE RECEIVED the
undersigned registered owner of this Warrant hereby sells, assigns and
transfers unto the Assignee named below all of the rights of the undersigned
under this Warrant, with respect to the number of shares of Common Stock set
forth below:

 

	
   

  	
   

  	
  No. of Shares of

  	
   

  
	
  Name and Address of Assignee

  	
   

  	
  Common Stock

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

 

and does hereby irrevocably
constitute and appoint
                                              
attorney-in-fact to register such transfer onto the books of Crdentia Corp.
maintained for the purpose, with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  Print
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Witness:

  	
   

  

 

 

	
  NOTICE:

  	
   

  	
  The
  signature on this assignment must correspond with the name as written upon
  the face of this Warrant in every particular, without alteration or
  enlargement or any change whatsoever.Exhibit 10.6

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made as of February 22, 2008 by Crdentia
Corp., a Delaware corporation (the “Company”), for the benefit of the
Holders (as such term is hereinafter defined). 
The Company hereby confirms that the rights granted under this Agreement
constitute a material inducement to the Holders to enter into the Loan
Agreement, make Loans from time to time thereunder, and/or acquire or hold
Warrant Shares (as such term is hereinafter defined).  Each Holder, by its participation or request
to participate in any Registration effected pursuant to this Agreement, shall
be deemed to have confirmed such Holder’s agreement to comply with the
applicable provisions of this Agreement.

 

NOW, THEREFORE, the Company
hereby agrees, in favor of the Holders, as follows:

 

1.                                       Definitions.  In addition to those terms defined elsewhere
in this Agreement, the following terms shall have the following meanings
wherever used in this Agreement:

 

“Act” shall mean the
Securities Act of 1933, as amended, and any successor statute from time to
time.

 

“Affiliate” shall
mean, with respect to any person, any other person controlling, controlled by
or under common control with the first person.

 

“Board” shall mean the Board of
Directors of the Company.

 

“Common Stock” shall mean the
authorized common stock of the Company.

 

“Company” shall mean Crdentia Corp.,
and shall include any successor(s) thereto.

 

“Costs and Expenses”
shall mean all of the costs and expenses relating to any subject Registration
Statement, including but not limited to registration, filing and qualification
fees, blue sky expenses, costs of listing any Shares on any exchange or other
trading media, and printing expenses, fees and disbursements of counsel and
accountants to the Company, and reasonable fees and disbursements of a single
counsel to the Holders; provided, however, that underwriting
discounts and commissions attributable solely to the securities registered for
the benefit of Holders, fees and disbursements of any additional counsel to
Holders, and all other expenses attributable solely to Holders shall be borne
by each subject Holder.

 

“Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended, and any successor statute
from time to time.

 

“Holders” shall mean,
collectively, all Persons holding Registrable Shares from time to time.

 

“Loan Agreement”
shall mean the Revolving Credit and Term Note Agreement of even date herewith
by and between ComVest Capital, LLC and the Company, as the same may be
amended, modified, supplemented and/or restated from time to time in accordance
with the provisions thereof.

 

 

“Loans” shall mean
the loans extended to the Company from time to time under and pursuant to the
Loan Agreement.

 

“Person” shall mean
any individual, corporation, partnership, limited partnership, limited
liability company, trust, or other entity of any kind ,and any government or
department or agency thereof.

 

“Registrable Shares”
shall mean all Shares, excluding any Shares which may then be sold by the
Holder thereof pursuant to Rule 144(k) promulgated under the Act.

 

“Registration” shall
mean any registration of Common Stock pursuant to a registration statement
filed by the Company with the SEC in respect of any class of Common Stock, other
than a registration statement in respect of employee stock options or
other employee benefit plans or in respect of any merger, consolidation,
acquisition or like combination, whether on Form S-4, Form S-8 or any
equivalent form of registration then in effect.

 

“Registration Period”
shall mean, with respect to a Registration Statement, the period of time from
the effective date of such Registration Statement until such date as is the
earlier of (a) the date on which all of the Registrable Securities covered
by such Registration Statement shall have been sold to the public, or (b) the
date on which the Warrant Shares issued or issuable upon cashless exercise of
the Warrant in accordance with Section 1.3 of the Warrant (in the opinion
of counsel to the Company evidenced by a written opinion issued to the Holders
in form and substance reasonably acceptable to the Holders) may be immediately
sold without restriction (including, without limitation, as to volume
restrictions) by each Holder thereof without registration under the Act.

 

“Registration Statement”
shall mean any registration statement filed or to be filed by the Company in
respect of any Registration.

 

“SEC” shall mean the
United States Securities and Exchange Commission, or any successor agency or
agencies performing the functions thereof.

 

“Shares” shall mean
the Warrant Shares issued and/or issuable from time to time, and any additional
or other shares of common stock of the Company issued in respect of any of the
Warrant Shares by reason of any stock split, stock dividend, merger, share
exchange, recapitalization or other such event.

 

“Tranche B Term Note”
shall have the meaning ascribed thereto in the Loan Agreement, and shall
include any replacement promissory note(s) therefor.

 

“Warrants” shall mean
the warrant to purchase Shares, issued by the Company pursuant to the Loan
Agreement, including any and all warrants issued in replacement of the original
such warrants.

 

“Warrant Shares”
shall mean the Common Stock and/or other securities issued and/or issuable from
time to time upon exercise of any of the Warrants, and any additional or other
Shares issued in respect of any of the foregoing Shares by reason of any stock
split, stock dividend, merger, share exchange, recapitalization or other such
event.

 

2

 

2.                                       Shelf Registration.

 

(a)           The Company shall
prepare and file with the SEC (i) not later than sixty (60) days after the
date of this Agreement, a Registration Statement or Registration Statements (as
necessary) on a form that is appropriate under the Act (and, if available,
pursuant to Rule 415 promulgated under the Act), covering the resale of
all of the Registrable Securities; provided, that if the SEC refuses to
declare the Registration Statement filed pursuant to this Section 2(a) effective
as a valid secondary offering under Rule 415 due to the number of
Registrable Shares included in such Registration Statement relative to the
number of outstanding shares of Common Stock, then (i) the Company shall
be permitted to reduce the number of Registrable Shares included in such
Registration Statement to an amount that does not exceed the amount that the
SEC allows for the offering thereunder to qualify as a valid secondary offering
under Rule 415, and (ii) the Company shall file, as soon as
practicable thereafter and in accordance with the Act and the SEC’s rules and
regulations, a Registration Statement (or Registration Statement(s) if
required by the SEC) to register the Registrable Securities excluded from the
initial Registration Statement filed hereunder, provided that the terms of
Sections 2(b) through 2(i) below shall apply to such Registration
Statement or Registration Statements once the filing thereof is permitted.

 

(b)           The Company shall
use all commercially reasonable efforts to cause the Registration Statement(s) required
by this Section 2 to be declared effective under the Act as promptly as
possible after the filing thereof, but in any event not later than one hundred
eighty (180) days after the date of this Agreement (or any later filing date
permitted in accordance with Section 2(a) above).

 

(c)           If (i) any
Registration Statement required by this Section 2 is not declared
effective within one hundred eighty (180) days after the date of this Agreement
(or any later filing date permitted in accordance with Section 2(a) above),
or (ii) the Registration Statement required by this Section 2 shall
cease to be available for use by the Holders as selling stockholders (A) as
provided under Section 2(f) below where such unavailability continues
for a period in excess of five (5) days beyond the allowed time period, or
(B) for any other reason including, without limitation, by reason of a
stop order, a material misstatement or omission in such Registration Statement
or the information contained in such Registration Statement having become
outdated and continues to be unavailable for a period in excess of thirty (30)
days (which need not be consecutive days) in any twelve (12) month period, and
no Holder is in material breach of its obligations under this Agreement, then
the Company shall pay to the Holders, ratably in proportion to the number of
Registrable Shares held by the respective Holders, a cash fee equal to the
product of $1,000 multiplied by the number of calendar days during which any of
the events described in clauses (i) or (ii) above occurs and is
continuing (the “Blackout Period”); provided, however,
that the aggregate such fees payable under this Section 2(c) shall
not exceed $700,000.  Each such payment
shall be due within five (5) days after the end of each 30-day period of
the Blackout Period until the termination of the Blackout Period and within
five (5) days after such termination. 
The Blackout Period shall terminate upon the effectiveness of the
Registration Statement in the case of clause (i) above and upon notice
from the Company that the Registration Statement is again available in the case
of clause (ii) above.

 

3

 

(d)           The Company shall
use all commercially reasonable efforts to keep each Registration Statement
under this Section 2 effective at all times during the applicable
Registration Period.

 

(e)           If the Holders
(acting by a majority in interest) determine that any offering pursuant to a
Registration Statement pursuant to this Section 2 shall involve an
underwritten offering (which may only be with the consent of the Company, which
shall not be unreasonably withheld or delayed), the Holders (acting by a majority
in interest) shall have the right to select an investment banker or bankers and
manager or managers to administer to the offering, which investment banker or
bankers or manager or managers shall be reasonably satisfactory to the Company.

 

(f)            If the Registrable
Securities are registered for resale under an effective Registration Statement,
the Holders shall cease any distribution of such Shares under such Registration
Statement:

 

(i)            for a period of up
to six (6) months if (A) such distribution would require the public
disclosure of material non-public information concerning any transaction or
negotiations involving the Company or any of its Affiliates that, in the
reasonable judgment of the Company’s Board of Directors, would materially
interfere with such transaction or negotiations, or (B) such distribution
would otherwise require premature disclosure of information that, in the
reasonable judgment of the Company’s Board of Directors, would adversely affect
or otherwise be detrimental to the Company; provided that the Company
shall not invoke this clause (i) more than once in any twelve (12) month
period or for more than six (6) months in any such twelve (12) month
period;

 

(ii)           not more than once
in any twelve (12) month period, for up to 30 days, upon the request of the
Company if the Company proposes to file a Registration Statement under the Act
for the offering and sale of securities for its own account in an underwritten
offering and the managing underwriter therefor shall advise the Company in writing
that in its opinion the continued distribution of the Registrable Securities
would adversely affect the offering of the securities proposed to be registered
for the account of the Company; and

 

(iii)          for a period of up to sixty (60) days after the filing of
the Company’s annual report on Form 10-K or Form 10-KSB or other
event that requires the filing of a post-effective amendment to any
Registration Statement hereunder, so long as the Company has filed and is
during such period actively pursuing effectiveness of such post-effective
amendment with the staff of the SEC.

 

The Company shall promptly
notify the Holders in writing at such time as (x) such transactions or
negotiations have been otherwise publicly disclosed or terminated, or (y) such
non-public information has been publicly disclosed or counsel to the Company
has determined that such disclosure is not required due to subsequent events.

 

(g)           The Company shall (i) permit
the Holders’ counsel to review (A) such Registration Statement, and all
amendments and supplements thereto, in each case to the extent of any
information with respect to the Holders, their and their Affiliates’ beneficial
ownership of 

 

4

 

securities
of the Company, and their intended method of disposition of Registrable
Securities, and (B) all requests for acceleration or effectiveness thereof
and any correspondence between the Company and the SEC relating to the
Registration Statement (collectively, the “Registration Documents”), for
a reasonable period of time prior to their filing with the SEC, (ii) not
file (or send) any Registration Documents in a form to which such counsel
reasonably objects, and (iii) not request acceleration of such
Registration Statement without prior notice to such counsel.  The sections of such Registration Statement
covering information with respect to the Holders, their and their Affiliates’
beneficial ownership of securities of the Company, and their intended method of
disposition of Registrable Securities shall conform to the information provided
to the Company by the Holders.

 

(h)           The Registration
Statement pursuant to this Section 2 shall not include any securities
other than Registrable Shares.

 

(i)            The Company shall bear all of the Costs and Expenses of
the Registration pursuant to this Section 2.

 

3.                                       Piggyback
Registration.  In the
event that the Company shall propose a Registration at any time when a
Registration Statement is not effective pursuant to Section 2 above, then
the Company shall give to each Holder written notice (the “Registration
Notice”) of such proposed Registration (which notice shall include a
statement of the proposed filing date thereof, the underwriters and/or managing
underwriters of the subject offering, and any other known material information
relating to the proposed Registration) not less than twenty (20) or more than
sixty (60) days prior to the filing of the subject Registration Statement, and
shall, subject to the limitations provided in this Section 3, include in
such Registration Statement all or a portion of the Registrable Shares owned by
and/or issuable to each Holder, as and to the extent that such Holder may
request same to be so included by means of written notice given to the Company
within ten (10) days after the Company’s giving of the Registration
Notice.  Each Holder shall be permitted
to withdraw all or any part of its Registrable Shares from a Registration
Statement by written notice to the Company given at any time prior to the
effective date of the Registration Statement. 
The Company shall bear all of the Costs and Expenses of any Registration
described in this Section 3; provided, however, that each
Holder shall pay, pro  rata based upon the number of its
Registrable Shares included therein, the underwriters’ discounts, commissions
and compensation attributable solely to the inclusion of such Registrable
Shares in the overall public offering. Notwithstanding anything to the contrary
contained herein, the Company’s obligation to include a Holder’s Registrable Shares
in any such Registration Statement shall be subject, at the option of the
Company, to the following further conditions:

 

(a)           The distribution for
the account of such Holder shall be underwritten by the same underwriters (if
any) who are underwriting the distribution of the securities for the account of
the Company and/or any other persons whose securities are covered by such
Registration Statement, and shall be made at the same underwriter discount or
commission applicable to the distribution of the securities for the account of
the Company and/or any other persons whose securities are covered by such
Registration Statement; and such Holder shall enter into an agreement with such
underwriters containing customary indemnification and other provisions;

 

5

 

(b)           If at any time after
giving the Registration Notice, and prior to the effective date of the
Registration Statement filed in connection with such Registration Notice, the
Company shall determine for any reason not to proceed with the subject
Registration, the Company may, at its election, give written notice of such
determination to the Holders and, thereupon, shall be relieved of its
obligation to register any of the Holders’ Registrable Shares in connection
with such Registration;

 

(c)           In connection with
an underwritten public offering pursuant to a Registration Statement under this
Section 3, if and only if the managing underwriter(s) thereof shall
advise the Company in writing that, due to adverse market conditions or the
potential adverse impact on the offering to be made for the account of the
Company, the securities to be included in such Registration will not include
all of the Registrable Shares requested to be so included by the Holders, then
the Company will promptly furnish each such Holder with a copy of such written
statement and may require, by written notice to each such Holder accompanying
such written statement, that the distribution of all or a specified portion of
such Registrable Shares be excluded from such distribution (with any such “cutback”
to be allocated among the subject Holders (and, if applicable, any other
holders of Common Stock to be included in such Registration) in proportion to
the relative number of shares of Common Stock requested by such Persons to be
included in such Registration); and

 

(d)           The Company shall
not be obligated to effect any registration of Shares incidental to the
registration of any of its securities in connection with mergers, acquisitions,
exchange offers, dividend reinvestment plans or stock option or other employee
benefit plans.

 

4.                                       Registration Procedures. In the case of each Registration
effected by the Company in which Registrable Shares are to be sold for the
account of any Holder,
the Company, at its sole cost and expense (exclusive of items excluded in the
proviso to the definition of “Costs and Expenses” above), will use all
commercially reasonable efforts to:

 

(a)           prepare and file
with the SEC such amendments and supplements to such Registration Statement and
the prospectus included therein as may be necessary to effect and maintain the
effectiveness of such Registration Statement, until the completion of the
distribution of the Registrable Shares included therein, as may be required by
the applicable rules and regulations of the SEC and the instructions
applicable to the form of such Registration Statement, and furnish to the
Holders of the Registrable Shares covered thereby copies of any such supplement
or amendment not less than three Business Days prior to the date first used
and/or filed with the SEC; and comply with the provisions of the Act with
respect to the disposition of all the Shares to be included in such
Registration Statement;

 

(b)           provide (i) the
Holders of the Registrable Shares to be included in such Registration
Statement, (ii) the underwriters (which term, for purposes of this
Agreement, shall include a person deemed to be an underwriter within the
meaning of Section 2(11) of the Act, if any, thereof, (iii) the sales
or placement agent, if any, therefor, (iv) one counsel for such
underwriters or agent, and (v) not more than one counsel for all the
Holders of such Registrable Shares, the reasonable opportunity to review such
Registration Statement, each prospectus included therein or filed with the SEC,
and each amendment or supplement thereto, in each case to the extent of any
disclosures regarding the Holders, their and their Affiliates’ beneficial 

 

6

 

ownership
of securities of the Company, and their intended method of disposition of the
Registrable Shares included in such Registration Statement (or any amendment to
any such information previously included in such Registration Statement
(including any amendment or supplement thereto) or any prospectus included
therein);

 

(c)           for a reasonable
period prior to the filing of such Registration Statement, and not more than
once in any calendar quarter throughout the period specified above, make
available for inspection by the Persons referred to in Section 4(b) above
such financial and other information and books and records of the Company, and
cause the officers, directors, employees, counsel and independent certified
public accountants of the Company to respond to such inquiries, as shall be
reasonably necessary, in the judgment of the respective counsel referred to in
such Section 4(b), to conduct a reasonable investigation within the
meaning of the Act; provided, however, that each such party shall
be required to maintain in confidence and not disclose to any other person or
entity any information or records reasonably designated by the Company in
writing as being confidential, until such time as and to the extent that (i) such
information becomes a matter of public record or generally available to the
public (whether by virtue of its inclusion in such Registration Statement or
otherwise, other than by reason of a breach hereof), (ii) such party shall
be required to disclose such information pursuant to the subpoena or order of
any court or other governmental agency or body having jurisdiction over the
matter, or (iii) such information is required to be set forth in such
Registration Statement or the prospectus included therein or in an amendment to
such Registration Statement or an amendment or supplement to such prospectus in
order that such Registration Statement, prospectus, amendment or supplement, as
the case may be, does not include an untrue statement of a material fact or
omit to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading; and  further provided, that the Company need not
make such information available, nor need it cause any officer, director or
employee to respond to such inquiry, unless each such Holder of Registrable
Shares to be included in a Registration Statement hereunder, upon the Company’s
request, executes and delivers to the Company a specific undertaking to
substantially the same effect contained in the preceding proviso;

 

(d)           promptly notify in writing
the Holders of Registrable Shares to be included in a Registration Statement
hereunder, the sales or placement agent, if any, therefor and the managing
underwriter of the securities being sold, (i) when such Registration
Statement or the prospectus included therein or any prospectus amendment or
supplement or post-effective amendment has been filed, and, with respect to
such registration statement or any post-effective amendment, when the same has
become effective, (ii) of any comments by the SEC and by the blue sky or
securities commission or regulator of any state with respect thereto or any
request by the SEC for amendments or supplements to such Registration Statement
or the prospectus or for additional information, (iii) of the issuance by
the SEC of any stop order suspending the effectiveness of such registration
statement or the initiation of any proceedings for that purpose, (iv) of
the receipt by the Company of any notification with respect to the suspension
of the qualification of any Shares for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, or (v) if it
shall be the case, at any time when a prospectus is required to be delivered
under the Act, that such Registration Statement, prospectus, or any document
incorporated by reference in any of the foregoing contains an untrue statement
of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in light of
the circumstances then existing;

 

7

 

(e)                                  obtain the
withdrawal of any order suspending the effectiveness of such Registration
Statement or any post-effective amendment thereto at the earliest practicable
date;

 

(f)                                    if requested by
any managing underwriter or underwriter, any placement or sales agent or any
Holder of Registrable Shares to be included in a Registration Statement,
promptly incorporate in a prospectus, prospectus supplement or post-effective
amendment such information as is required by the applicable rules and
regulations of the SEC and as such managing underwriter or underwriters, such
agent or such Holder may reasonably specify should be included therein relating
to the terms of the sale of the Registrable Shares included thereunder,
including, without limitation, information with respect to the number of
Registrable Shares being sold by such Holder or agent or to such underwriters,
the name and description of such Holder, the offering price of such Registrable
Shares and any discount, commission or other compensation payable in respect
thereof, the purchase price being paid therefor by such underwriters and with
respect to any other terms of the offering of the Registrable Shares to be sold
in such offering; and make all required filings of such prospectus, prospectus
supplement or post-effective amendment promptly after notification of the
matters to be incorporated in such prospectus, prospectus supplement or
post-effective amendment;

 

(g)                                 furnish to each
Holder of Registrable Shares to be included in such Registration Statement
hereunder, each placement or sales agent, if any, therefor, each underwriter,
if any, thereof and the counsel referred to in Section 4(b) an
executed copy of such Registration Statement, each such amendment and
supplement thereto (in each case excluding all exhibits and documents
incorporated by reference) and such number of copies of the Registration
Statement (excluding exhibits thereto and documents incorporated by reference
therein unless specifically so requested by such Holder, agent or underwriter, as
the case may be) and the prospectus included in such Registration Statement
(including each preliminary prospectus and any summary prospectus), in
conformity with the requirements of the Act, as such Holder, agent, if any, and
underwriter, if any, may reasonably request in order to facilitate the
disposition of the Shares owned by such Holder, sold by such agent or
underwritten by such underwriter and to permit such Holder, agent and
underwriter to satisfy the prospectus delivery requirements of the Act; and the
Company hereby consents to the use of such prospectus and any amendment or
supplement thereto by each such Holder and by any such agent and underwriter,
in each case in the form most recently provided to such person by the Company,
in connection with the offering and sale of the Shares covered by the
prospectus (including such preliminary and summary prospectus) or any
supplement or amendment thereto;

 

(h)                                 timely (i) register
or qualify (to the extent legally required) the Shares to be included in such
registration statement under such other securities laws or blue sky laws of
such jurisdictions to be designated by the Holders of a majority of such Shares
participating in such registration and each placement or sales agent, if any,
therefor and underwriter, if any, thereof, as any Holder and each underwriter,
if any, of the securities being sold shall reasonably request, (ii) keep
such registrations or qualifications in effect and comply with such laws so as
to permit the continuance of offers, sales and dealings therein in such
jurisdictions for so long as may be necessary to enable such Holder, agent or
underwriter to complete its distribution of the Registrable Shares pursuant to
such Registration Statement, and (iii) take any and all such actions as
may be reasonably necessary or advisable to enable such Holder, agent, if any,
and underwriter to consummate the disposition in such jurisdictions of such
Shares; provided, 

 

8

 

however, that the
Company shall not be required for any such purpose to (A) qualify
generally to do business as a foreign corporation or a broker-dealer in any
jurisdiction wherein it would not otherwise be required to qualify but for the
requirements of this Section 4(h), (B) subject itself to taxation in
any such jurisdiction, or (C) consent to general service of process in any
such jurisdiction;

 

(i)                                     cooperate with
the Holders of the Registrable Shares to be included in a Registration
Statement hereunder and the managing underwriter(s) to facilitate the
timely preparation and delivery of certificates representing Registrable Shares
to be sold, which certificates shall be printed, lithographed or engraved, or
produced by any combination of such methods, in customary form to permit the
transfer thereof through the Company’s transfer agent; and enable such
Registrable Shares to be in such denominations and registered in such names as
the managing underwriter(s) may request at least two (2) business
days prior to any sale of the Registrable Shares;

 

(j)                                     provide a CUSIP
number for all Shares, not later than the effective date of the Registration
Statement;

 

(k)                                  in the event
that Registrable Securities included in any Registration Statement are to be
sold to or through any underwriter or placement or sales agent, (i) make
such representations and warranties to the Holders of such Registrable Shares
and the placement or sales agent, if any, therefor and the underwriters, if
any, thereof in form, substance and scope as are customarily made in connection
with any offering of equity securities pursuant to any appropriate agreement
and/or in a registration statement filed on the form applicable to such
Registration Statement; (ii) if so requested by any such underwriter or
placement or sales agent, obtain an opinion of counsel to the Company in
customary form and covering such matters, of the type customarily covered by
such an opinion, as the managing underwriters, if any, and/or the placement or
sales agent may reasonably request, addressed to such Holders and the placement
or sales agent, if any, therefor and the underwriters, if any, thereof and
dated the effective date of such Registration Statement (and if such
Registration Statement contemplates an underwritten offering of a part or of all
of the Shares included in such Registration Statement, dated the date of the
closing under the underwriting agreement relating thereto); (iii) if so
requested by any such underwriter or placement or sales agent, obtain a “cold
comfort” letter or letters from the independent certified public accountants of
the Company addressed to the Holders and the placement or sales agent, if any,
therefor and the underwriters, if any, thereof, dated (A) the effective
date of such Registration Statement, and (B) the effective date of the
most recent (or, if so stated in the request therefor, the next) prospectus
supplement to the prospectus included in such Registration Statement or
post-effective amendment to such Registration Statement which includes
unaudited or audited financial statements as of a date or for a period
subsequent to that of the latest such statements included in such prospectus
(and, if such Registration Statement contemplates an underwritten offering
pursuant to any prospectus supplement to the prospectus included in such
Registration Statement or post-effective amendment to such Registration
Statement which includes unaudited or audited financial statements as of a date
or for a period subsequent to that of the latest such statements included in
such prospectus, dated the date of the closing under the underwriting agreement
relating thereto), such letter or letters to be in customary form and covering
such matters of the type customarily covered by letters of such type; (iv) deliver
such documents and certificates, including officers’ 

 

9

 

certificates,
as may be customary and reasonably requested by Holders of at least a majority
of the Registrable Shares being sold and the placement or sales agent, if any,
therefor and the managing underwriters, if any, thereof to evidence the
accuracy of the representations and warranties made pursuant to clause (i) above
and the compliance with or satisfaction of any agreements or conditions
contained in the underwriting agreement or other agreement entered into by the
Company; and (v) undertake such obligations relating to expense
reimbursement, indemnification and contribution as are provided in Sections 2,
3 and 5 hereof;

 

(l)                                     notify in
writing each Holder of Registrable Shares of any proposal by the Company to
amend or waive any provision of this Agreement and of any amendment or waiver
effected pursuant thereto, each of which notices shall contain the text of the
amendment or waiver proposed or effected, as the case may be;

 

(m)                               engage to act
on behalf of the Company, with respect to the Registrable Shares to be so
registered, a registrar and transfer agent having such duties and
responsibilities (including, without limitation, registration of transfers and
maintenance of stock registers) as are customarily discharged by such an agent,
and to enter into such agreements and to offer such indemnities as are
customary in respect thereof; and

 

(n)                                 otherwise
comply with all applicable rules and regulations of the SEC, and make
available to the Holders, as soon as practicable, but in any event not later
than 18 months after the effective date of such Registration Statement, an
earnings statement covering a period of at least twelve months which shall
satisfy the provisions of Section 6(a) of the Act (including pursuant
to Rule 158 thereunder).

 

5.                                       Indemnification by the Company.

 

(a)                                  The Company
shall indemnify each Holder and its Affiliates from and against any claim,
loss, cost, charge or liability of any kind, including amounts paid in
settlement and reasonable attorneys’ fees, which may be incurred by the Holder
or Affiliate as a result of any breach of any representation or warranty or
covenant of the Company contained in this Agreement or in any certificate
delivered on the closing date of any public offering of Shares.

 

(b)                                 The Company
shall indemnify and hold harmless each Holder and its Affiliates, any
underwriter (as defined in the Act) for any Holder, each officer and director
of a Holder, legal counsel and accountants for a Holder, and each person, if
any, who controls a Holder or such underwriter within the meaning of the Act,
against any losses, expenses, claims, damages or liabilities, joint or several,
to which such Holder or any such Affiliate, underwriter, officer, director or
controlling person becomes subject, under the Act or any rule or
regulation thereunder or otherwise, insofar as such losses, expenses, claims,
damages or liabilities (or actions in respect thereof) (i) are caused by
any untrue statement or alleged untrue statement of any material fact contained
in any preliminary prospectus (if used prior to the effective date of the
Registration Statement), or contained, on the effective date thereof, in any
Registration Statement in which Registrable Shares were included, the
prospectus contained therein, any amendment or supplement thereto, or any other
document related to such Registration Statement, or (ii) arise out of or
are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, or 

 

10

 

(iii) arise
out of any violation by the Company of the Act or any rule or regulation
thereunder applicable to the Company and relating to actions or omissions
otherwise required of the Company in connection with such registration.  The Company shall reimburse each Holder and
any such Affiliate, underwriter, officer, director or controlling person for
any legal or other expenses reasonably incurred by such Holder, or any such
officer, director, underwriter or controlling person in connection with
investigating,  defending or settling any
such loss, claim, damage, liability or action; provided, however,
that the Company shall not be liable to any such persons in any such case to
the extent that any such loss, claim, damage, liability or action arises out of
or is based upon any untrue statement or alleged untrue statement or omission
or alleged omission made in reliance upon and in conformity with information
furnished to the Company in writing by such Person expressly for inclusion in
any of the foregoing documents.  This
indemnity shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the
consent of the Company, which consent shall not be unreasonably withheld or
delayed.

 

6.                                       Further Obligations of Holders. The obligations of the Company with
respect to any particular Holder are subject to such Holder’s agreement to the
following (which such Holder shall specifically confirm in writing to the
Company upon the Company’s request in connection with any Registration
Statement):

 

(a)                                  Such Holder
shall furnish in writing to the Company all information concerning such Holder
and its and its Affiliates’ holdings of securities of the Company and its
Affiliates, and the intended method of disposition of the Registrable
Securities included in such Registration Statement, as shall be reasonably
required in connection with the preparation and filing of any Registration
Statement covering any of such Holder’s Registrable Shares.

 

(b)                                 Such Holder
shall indemnify and hold harmless the Company, each of its directors, each of
its officers who has signed a Registration Statement, each person (if any) who
controls the Company within the meaning of the Act, and any underwriter (as
defined in the Act) for the Company, against any losses, claims, damages or
liabilities to which the Company or any such director, officer, controlling
person or underwriter may become subject under the Act or any rule or
regulation thereunder or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) (i) are caused by any untrue
statement or alleged untrue statement of any material fact contained in any
preliminary prospectus (if used prior to the effective date of the Registration
Statement), or contained, on the effective date thereof, in any Registration
Statement in which such Holder’s Registrable Shares were included, the
prospectus contained therein, any amendment or supplement thereto, or any other
document related to such Registration Statement, or (ii) arise out of or
are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with information furnished to the
Company by such Holder in writing expressly for inclusion in any of the
foregoing documents.  In no event shall
any Holder be required to pay indemnification hereunder (or contribution under Section 7(d) below)
in an aggregate amount in excess of the net proceeds received by such Holder in
the subject offering.  This indemnity
shall not apply to amounts paid in settlement of any such loss, claim, damage, 

 

11

 

liability
or action if such settlement is effected without the consent of the subject
Holder, which consent shall not be unreasonably withheld or delayed.

 

7.                                       Additional
Provisions.

 

(a)                                  Each Holder and
each other Person indemnified pursuant to Section 5 above shall, in the
event that it receives notice of the commencement of any action against it
which is based upon an alleged act or omission which, if proven, would result
in the Company’s having to indemnify it pursuant to Section 5 above, promptly
notify the Company, in writing, of the commencement of such action and permit
the Company, if the Company so notifies such Holder within twenty (20) days
after receipt by the Company of notice of the commencement of the action, to
participate in and to assume the defense of such action with counsel reasonably
satisfactory to such Holder; provided, however, that such Holder
or other indemnified person shall be entitled to retain its own counsel at its
own expense (except that the indemnifying party shall bear the expense of such
separate counsel if representation of both parties by the same counsel would be
inappropriate due to actual or potential conflicts of interest).  The failure to notify the Company promptly of
the commencement of any such action shall not relieve the Company of any
liability to indemnify such Holder or such other indemnified person, as the
case may be, under Section 5 above, except to the extent that the Company
shall be actually prejudiced or shall suffer any loss by reason of such failure
to give notice, and shall not relieve the Company of any other liabilities
which it may have under this or any other agreement.

 

(b)                                 The Company and
each other Person indemnified pursuant to Section 6 above shall, in the
event that it receives notice of the commencement of any action against it
which is based upon an alleged act or omission which, if proven, would result
in any Holder having to indemnify it pursuant to Section 6 above, promptly
notify such Holder, in writing, of the commencement of such action and permit
such Holder, if such Holder so notifies the Company within twenty (20) days
after receipt by such Holder of notice of the commencement of the action, to
participate in and to assume the defense of such action with counsel reasonably
satisfactory to the Company; provided, however, that the Company
or other indemnified person shall be entitled to retain its own counsel at the
Company’s expense.  The failure to notify
any Holder promptly of the commencement of any such action shall not relieve
such Holder of liability to indemnify the Company or such other indemnified
person, as the case may be, under Section 6 above, except to the extent
that the subject Holder shall be actually prejudiced or shall suffer any loss
by reason of such failure to give notice, and shall not relieve such Holder of
any other liabilities which it may have under this or any other agreement.

 

(c)                                  No indemnifying
party, in the defense of any such claim or litigation, shall, except with the
consent of each indemnified person who is party to such claim or litigation,
consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified person of a release from all liability in respect
to such claim or litigation.  Each such
indemnified person shall furnish such information regarding itself or the claim
in question as an indemnifying party may reasonably request in writing and as
shall be reasonably required in connection with defense of such claim and
litigation resulting therefrom.

 

12

 

(d)                                 If the
indemnification provided for in Section 5 and 6 is unavailable or
insufficient to hold harmless an indemnified party, then, subject to the limits
set forth in Section 6(b) above, each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of the expenses, claims, losses, damages or liabilities (or actions or
proceedings in respect thereof) referred to in Section 5 and 6, in such
proportion as is appropriate to reflect the relative fault of the Company on
the one hand and the sellers of Shares on the other hand in connection with
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) or expenses, as well
as any other relevant equitable considerations. 
The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement  of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the
Company or the sellers of Shares and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission.  The Company and
the Holders agree that it would not be just and equitable if contributions
pursuant to this Section 7(d) were to be determined by pro rata
allocation (even if  all sellers of Shares
were treated as one entity for such purpose) or by another method of allocation
which does not take account of the equitable considerations referred to in the
first sentence of this Section.  The
amount paid by an indemnified person as a result of the expenses, claims,
losses, damages or liabilities (or actions or proceedings in respect thereof)
referred to in the first sentence of this Section 7(d) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified person in connection with investigating or defending any claim,
action or proceeding which is the subject of this Section 7(d).  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  The
obligations of sellers of Shares to contribute pursuant to this Section 7(d) shall
be several in proportion to the respective amounts of Shares sold by them
pursuant to a Registration Statement.

 

8.                                       Rule 144
Information. For so long as the Company shall remain a
reporting company under the Exchange Act, the Company will at all times keep
publicly available adequate current public information with respect to the
Company of the type and in the manner specified in Rule 144(c) promulgated
under the Act.

 

9.                                       Limitations on
Subsequent Registration Rights.  From and after
the date of this Agreement, the Company shall not, without the prior written
consent of the Holders of a majority of the Registrable Shares then outstanding
and/or issuable, enter into any agreement with any holder or prospective holder
of any securities of the Company which would require the Company to include
such securities in any Registration filed under Section 2 above.

 

10.                                 Notices. All notices,
requests, demands and other communications required or permitted under this
Agreement shall be in writing and shall be given by personal delivery, by
telecopier (with confirmation of receipt), by recognized overnight courier
service (with all charges prepaid or billed to the account of the sender), or
by certified or registered mail, return receipt requested, and with postage
prepaid, addressed (a) if to the Company, at its office at 5001 LBJ
Parkway, Suite 850, Dallas, Texas 75244, Attention: Chief Financial
Officer, Telecopier: (972) 392-2722, or such other address or telecopier number
as shall have been specified by the Company to the Holders by written notice,
or (b) if to any Holder, at his, her or its address or telecopier number
as same appears on the records of the Company. All notices shall be deemed

 

13

 

to
have been given either at the time of the delivery or telecopy (with
confirmation of receipt) thereof, or, if sent by overnight courier, on the next
business day following delivery thereof to the overnight courier service, or,
if mailed, at the completion of the third business day following the time of
such mailing.

 

11.                                 Waiver and Amendment. No waiver, amendment or modification of
this Agreement or of any provision hereof shall be valid unless evidenced by a
writing duly executed by the Company and Holders holding, in the aggregate, a
majority of the Registrable Shares then outstanding and/or issuable. No waiver
of any default hereunder shall be deemed a waiver of any other, prior or
subsequent default hereunder.

 

12.                                 Governing Law. This Agreement shall (irrespective of
the place where it is executed and delivered) be governed, construed and
controlled by and under the substantive laws of the State of New York, without
regard to conflicts of law principles.

 

13.                                 Binding Effect. This Agreement shall binding upon and
shall inure to benefit of the Company and the Holders and their respective
successors in interest from time to time.

 

14.                                 Captions. The captions and Section headings used in this
Agreement are for convenience only, and shall not affect the construction or
interpretation of this Agreement or any of the provisions hereof.

 

15.                                 Gender. All pronouns used in this Agreement in the
masculine, feminine or neuter gender shall, as the context may allow, also
refer to each other gender.

 

16.                                 Entire Agreement. This Agreement constitutes the sole and
entire agreement and understanding between the parties hereto as to the subject
matter hereof, and supersedes all prior discussions, agreements and
understandings of every kind and nature between them as to such subject matter.

 

17.                                 Reliance and Benefit. This Agreement is intended to benefit,
and may be relied upon by, all Holders from time to time, as if such Holders
were expressly named herein, party hereto and signatory hereon.

 

[The
remainder of this page is intentionally blank]

 

14

 

IN WITNESS WHEREOF, the Company
has executed this Agreement as of the date first set forth above.

 

	
   

  	
  CRDENTIA CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John B. Kaiser

  
	
   

  	
   

  	
  Name: John B. Kaiser

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]