EXHIBIT 10.10

                              CRDENTIA CORP.

                        NOTICE OF STOCK OPTION AWARD
                        ----------------------------

Grantee's Name and Address:     Thomas H. Herman

                                436 14th Street, Suite 1005

                                Oakland, CA  94612

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

     Award Number                         1

     Date of Award                        December 16, 2003

     Vesting Commencement Date            September 9, 2003

     Exercise Price per Share             $0.96

     Total Number of Shares Subject
     to the Option (the "Shares")         100,000

     Total Exercise Price                 $96,000

     Type of Option 	                  Non-Qualified Stock Option

     Expiration Date:                     December 16, 2013

     Post-Termination Exercise Period:    Three (3) Months

Vesting Schedule:
-----------------

     Subject to the Grantee's Continuous Service and other limitations set
forth in this Notice and the Option Agreement, the Option may be exercised,
in whole or in part, in accordance with the following schedule:

     1/3rd of the Total Number of Shares Subject to the Option shall vest
upon the first anniversary of the Vesting Commencement Date, and 1/36th of
the Total Number of Shares Subject to the Option shall vest on each monthly
anniversary of the Vesting Commencement Date thereafter such that the
Option will be fully vested three years after the Vesting Commencement Date.

     During any authorized leave of absence, the vesting of the Option as
provided in this schedule shall be suspended after the leave of absence
exceeds a period of ninety (90) days.  Vesting of the Option 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
Option shall be extended by the length of the suspension.

<PAGE>

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

                                        Crdentia Corp.,
                                        a Delaware corporation
                                        By: /s/  James D. Durham
                                           ------------------------
                                        Title: CEO
                                              ---------------------

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION
SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE'S CONTINUOUS
SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR
ACQUIRING SHARES HEREUNDER).  THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES
THAT NOTHING IN THIS NOTICE OR THE OPTION AGREEMENT SHALL CONFER UPON THE
GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF THE
GRANTEE'S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE
GRANTEE'S RIGHT OR THE RIGHT OF THE COMPANY OR RELATED ENTITY TO WHICH THE
GRANTEE PROVIDES SERVICES TO TERMINATE THE GRANTEE'S CONTINUOUS SERVICE,
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.

     The Grantee acknowledges receipt of a copy of the Option Agreement, and
represents that he or she is familiar with the terms and provisions thereof,
and hereby accepts the Option subject to all of the terms and provisions
hereof and thereof.  The Grantee has reviewed this Notice and the Option
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 Option Agreement.  The Grantee hereby agrees that
all disputes arising out of or relating to this Notice and the Option
Agreement shall be resolved in accordance with Section 17 of the Option
Agreement.  The Grantee further agrees to notify the Company upon any
change in the residence address indicated in this Notice.

Dated: 12/16/2003		Signed: /s/ T H Herman
                                        --------------------
                                        Grantee

                                    2
<PAGE>

                                                          Award Number:  1

                              CRDENTIA CORP.

                       STOCK OPTION AWARD AGREEMENT
                       ----------------------------

     1. Grant of Option.  Crdentia Corp., a Delaware corporation (the
"Company"), hereby grants to the Grantee (the "Grantee") named in the
Notice of Stock Option Award (the "Notice"), an option (the "Option") to
purchase the Total Number of Shares of Common Stock subject to the Option
(the "Shares") set forth in the Notice, at the Exercise Price per Share set
forth in the Notice (the "Exercise Price") subject to the terms and
provisions of this Stock Option Award Agreement (the "Option Agreement") and
the Notice which are incorporated herein by reference.

     2. Exercise of Option.

       (a) Right to Exercise.  The Option shall be exercisable during its
term in accordance with the Vesting Schedule set out in the Notice and with
the applicable provisions of this Option Agreement.  The Option shall be
subject to the provisions of Section 20 of this Option Agreement relating
to the exercisability or termination of the Option in the event of a
Corporate Transaction.  The Grantee shall be subject to reasonable
limitations on the number of requested exercises during any monthly or
weekly period as determined by the Board.  In no event shall the Company
issue fractional Shares.

       (b) Method of Exercise.  The Option shall be exercisable by delivery
of an exercise notice (a form of which is attached as Exhibit A) or by such
other procedure as specified from time to time by the Board which shall
state the election to exercise the Option, the whole number of Shares in
respect of which the Option is being exercised, and such other provisions
as may be required by the Board.  The exercise notice shall be delivered in
person, by certified mail, or by such other method (including electronic
transmission) as determined from time to time by the Board to the Company
accompanied by payment of the Exercise Price.  The Option shall be deemed
to be exercised upon receipt by the Company of such notice accompanied by
the Exercise Price, which, to the extent selected, shall be deemed to be
satisfied by use of the broker-dealer sale and remittance procedure to pay
the Exercise Price provided in Section 4(d), below.

       (c) Taxes.  No Shares will be delivered to the Grantee or other
person pursuant to the exercise of the Option until the Grantee or other
person has made arrangements acceptable to the Board for the satisfaction
of applicable income tax and employment tax withholding obligations,
including, without limitation, obligations incident to the receipt of
Shares.  Upon exercise of the Option, the Company or the Grantee's employer
may offset or withhold (from any amount owed by the Company or the Grantee's
employer to the Grantee) or collect from the Grantee or other person an
amount sufficient to satisfy such tax obligations and/or the employer's
withholding obligations.

     3. Grantee's Representations.  The Grantee understands that neither
the Option nor the Shares exercisable pursuant to the Option have been
registered under the Securities Act of 1933, as amended, or any United
States securities laws.  In the event the Shares purchasable

                                   1
<PAGE>

pursuant to the exercise of the Option have not been registered under the
Securities Act of 1933, as amended, at the time the Option is exercised,
the Grantee shall, if requested by the Company, concurrently with the
exercise of all or any portion of the Option, deliver to the Company his
or her Investment Representation Statement in the form attached hereto as
Exhibit B.

     4. Method of Payment.  Payment of the Exercise Price shall be made by
any of the following, or a combination thereof, at the election of the
Grantee; provided, however, that such exercise method does not then violate
any Applicable Law and, provided further, that the portion of the Exercise
Price equal to the par value of the Shares must be paid in cash or other
legal consideration permitted by the Delaware General Corporation Law:

       (a) cash;

       (b) check;

       (c) surrender of Shares or delivery of a properly executed form of
attestation of ownership of Shares as the Board may require which have a
Fair Market Value on the date of surrender or attestation equal to the
aggregate Exercise Price of the Shares as to which the Option is being
exercised, provided, however, that Shares acquired under the Option or any
other equity compensation plan or agreement of the Company must have been
held by the Grantee for a period of more than six (6) months; or

       (d) payment through a broker-dealer sale and remittance procedure
pursuant to which the Grantee (i) shall provide written instructions to a
Company-designated brokerage firm to effect the immediate sale of some or
all of the purchased Shares and remit to the Company sufficient funds to
cover the aggregate exercise price payable for the purchased Shares and
(ii) shall provide written directives to the Company to deliver the
certificates for the purchased Shares directly to such brokerage firm in
order to complete the sale transaction.

     5. Restrictions on Exercise.  The Option may not be exercised if the
issuance of the Shares subject to the Option upon such exercise would
constitute a violation of any Applicable Laws.

     6. Termination or Change of Continuous Service.  In the event the
Grantee's Continuous Service terminates, the Grantee may, but only during
the Post-Termination Exercise Period, exercise the portion of the Option
that was vested at the date of such termination (the "Termination Date").
In no event shall the Option be exercised later than the Expiration Date
set forth in the Notice.  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 Option shall remain in effect and vesting of
the Option shall continue only to the extent determined by the Board as of
such change in status.  Except as provided in Sections 7 and 8 below, to
the extent that the Option was unvested on the Termination Date, or if the
Grantee does not exercise the vested portion of the Option within the Post-
Termination Exercise Period, the Option shall terminate.

     7. Disability of Grantee.  In the event the Grantee's Continuous
Service terminates as a result of his or her Disability, the Grantee may,
but only within twelve (12) months from the Termination Date (and in no
event later than the Expiration Date), exercise the portion of the Option
that was vested on the Termination Date.  To the extent that the Option was
unvested on

                                    2
<PAGE>

the Termination Date, or if the Grantee does not exercise the vested portion
of the Option within the time specified herein, the Option shall terminate.

     8. Death of Grantee.  In the event of the termination of the Grantee's
Continuous Service as a result of his or her death, or in the event of the
Grantee's death during the Post-Termination Exercise Period or during the
twelve (12) month period following the Grantee's termination of Continuous
Service as a result of his or her Disability, the Grantee's estate, or a
person who acquired the right to exercise the Option by bequest or
inheritance, may exercise the portion of the Option that was vested at the
date of termination within twelve (12) months from the date of death (but
in no event later than the Expiration Date).  To the extent that the Option
was unvested on the date of death, or if the vested portion of the Option
is not exercised within the time specified herein, the Option shall
terminate.

     9. Transferability of Option.  The Option may not be transferred in any
manner other than by will or by the laws of descent and distribution,
provided, however, that the Option may be transferred to members of the
Grantee's Immediate Family to the extent and in the manner authorized by
the Board.  Notwithstanding the foregoing, the Grantee may designate
members of the Grantee's Immediate Family as beneficiaries of the Grantee's
Option in the event of the Grantee's death on a beneficiary designation form
provided by the Board.  The terms of the Option shall be binding upon the
executors, administrators, heirs and successors of the Grantee.

     10. Term of Option.  The Option must be exercised no later than the
Expiration Date set forth in the Notice or such earlier date as otherwise
provided herein.  After the Expiration Date or such earlier date, the
Option shall be of no further force or effect and may not be exercised.

     11. Stop Transfer Notices.  In order to ensure compliance with the
restrictions on transfer set forth in this Option 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.

     12. 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 Option 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.

     13. Tax Consequences.  Set forth below is a brief summary as of the
date of this Option Agreement of some of the federal tax consequences of
exercise of the Option and disposition of the Shares.  THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE.  THE GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE
OPTION OR DISPOSING OF THE SHARES.

       (a) Exercise of Non-Qualified Stock Option.  On exercise of a Non-
Qualified Stock Option, the Grantee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair Market Value of the Shares on

                                    3

<PAGE>

the date of exercise over the Exercise Price.  If the Grantee is an
Employee or a former Employee, the Company will be required to withhold
from the Grantee's compensation or collect from the Grantee and pay to the
applicable taxing authorities an amount in cash equal to a percentage of
this compensation income at the time of exercise, and may refuse to honor
the exercise and refuse to deliver Shares if such withholding amounts are
not delivered at the time of exercise.

       (b) Disposition of Shares.  If Shares are held for more than one
year, any gain realized on disposition of the Shares will be treated as
long term capital gain for federal income tax purposes.

     14. Lock-Up Agreement.

       (a) Agreement.  The Grantee, if requested by the Company and the
lead underwriter of any public offering of the Common Stock (the "Lead
Underwriter"), hereby irrevocably agrees not to sell, contract to sell,
grant any option to purchase, transfer the economic risk of ownership in,
make any short sale of, pledge or otherwise transfer or dispose of any
interest in any Common Stock or any securities convertible into or
exchangeable or exercisable for or any other rights to purchase or acquire
Common Stock (except Common Stock included in such public offering or
acquired on the public market after such offering) during the 180 day
period following the effective date of a registration statement of the
Company filed under the Securities Act of 1933, as amended, or such shorter
period of time as the Lead Underwriter shall specify.  The Grantee further
agrees to sign such documents as may be requested by the Lead Underwriter
to effect the foregoing and agrees that the Company may impose stop-transfer
instructions with respect to such Common Stock subject to the lock-up
period until the end of such period.  The Company and the Grantee
acknowledge that each Lead Underwriter of a public offering of the Company's
stock, during the period of such offering and for the 180 day period
thereafter, is an intended beneficiary of this Section 14.

       (b) No Amendment Without Consent of Underwriter.  During the period
from identification of a Lead Underwriter in connection with any public
offering of the Company's Common Stock until the earlier of (i) the
expiration of the lock-up period specified in Section 14(a) in connection
with such offering or (ii) the abandonment of such offering by the Company
and the Lead Underwriter, the provisions of this Section 14 may not be
amended or waived except with the consent of the Lead Underwriter.

     15. Entire Agreement: Governing Law.  The Notice and this Option
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.  Nothing in the Notice and this Option Agreement (except as
expressly provided therein) is intended to confer any rights or remedies on
any persons other than the parties.  The Notice and this Option Agreement
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 Option Agreement be determined
by a

                                   4
<PAGE>

court of law to be illegal or unenforceable, such provision shall be
enforced to the fullest extent allowed by law and the other provisions shall
nevertheless remain effective and shall remain enforceable.

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

     17. Dispute Resolution.  The provisions of this Section 17 shall be
the exclusive means of resolving disputes arising out of or relating to the
Notice and this Option Agreement.  The Company, the Grantee, and the
Grantee's assignees (the "parties") shall attempt in good faith to resolve
any disputes arising out of or relating to the Notice and this Option
Agreement by negotiation between individuals who have authority to settle
the controversy.  Negotiations shall be commenced by either party by notice
of a written statement of the party's position and the name and title of
the individual who will represent the party.  Within thirty (30) days of
the written notification, the parties shall meet at a mutually acceptable
time and place, and thereafter as often as they reasonably deem necessary,
to resolve the dispute.  If the dispute has not been resolved by
negotiation, the parties agree that any suit, action, or proceeding arising
out of or relating to the Notice or this Option 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 17 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.

     18. 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.

     19. Adjustments Upon Changes in Capitalization.  Subject to any
required action by the stockholders of the Company, the number of Shares
covered by the Option, the exercise price of the Option, as well as any
other terms that the Board determines require adjustment shall be
proportionately adjusted for (i) any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Shares, or similar
transaction affecting the Shares, (ii) any other increase or decrease in
the number of issued Shares effected without receipt of consideration by
the Company, or (iii) as the Board may determine in its discretion, any
other transaction with respect to Common Stock including a corporate merger,
consolidation, acquisition of property or stock, separation (including a
spin-off or other distribution of stock or property), reorganization,
liquidation (whether partial or complete) or any similar transaction;
provided, however that conversion of

                                    5
<PAGE>

any convertible securities of the Company shall not be deemed to have been
"effected without receipt of consideration."  Such adjustment shall be made
by the Board and its determination shall be final, binding and conclusive.
Except as the Board determines, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason hereof shall be made with
respect to, the number or price of Shares subject to the Option.

     20. Corporate Transactions.

       (a) Termination of Option to Extent Not Assumed in Corporate
Transaction.  Effective upon the consummation of a Corporate Transaction,
the Option shall terminate.  However, the Option shall not terminate to the
extent it is Assumed in connection with the Corporate Transaction.

       (b) Acceleration of Option Upon Corporate Transaction.  In the event
of a Corporate Transaction, for the portion of the Option that is neither
Assumed nor Replaced, such portion of the Option shall automatically become
fully vested and exercisable for all of the Shares at the time represented
by such portion of the Option, immediately prior to the specified effective
date of such Corporate Transaction.

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

       (a) "Applicable Laws" means the legal requirements applicable to the
Option 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 Options granted to residents therein.

       (b) "Assumed" means that pursuant to a Corporate Transaction either
(i) the Option is expressly affirmed by the Company or (ii) the contractual
obligations represented by the Option 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
Option and the exercise or purchase price thereof which at least preserves
the compensation element of the Option existing at the time of the
Corporate Transaction as determined in accordance with the instruments
evidencing the agreement to assume the Option.

       (c) "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.

       (d) "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

                                    6
<PAGE>

Company or a Related Entity; or (iii) commission of a crime involving
dishonesty, breach of trust, or physical or emotional harm to any person.

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

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

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

       (h) "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.

       (i) "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.  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 Option Agreement).  An approved leave of absence shall include sick
leave, military leave, or any other authorized personal leave.

       (j) "Corporate Transaction" means any of the following transactions:

         (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 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

                                   7
<PAGE>

          (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.

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

       (l) "Disability" shall have the same meaning 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.  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 the 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.  The 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.

       (m) "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.

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

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

          (i) If the Common Stock is listed on any established stock
exchange or a national market system, 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 such
exchange or system 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, but 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 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

                                      8
<PAGE>

          (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.

       (p) "Good Reason" means the occurrence after a Corporate Transaction
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 more than
fifteen  percent (15%) below that in effect at any time within six (6)
months preceding the consummation of a Corporate Transaction or at any time
thereafter (not including a similar reduction with respect to all of the
Company's management); or

          (ii) requiring the Grantee to be based at any place outside a
50-mile radius from the Grantee's job location prior to the Corporate
Transaction except for reasonably required travel on business which is not
materially greater than such travel requirements prior to the Corporate
Transaction

       (q) "Immediate Family" means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece,
nephew, mother-in-law, father-in-law, son-in law, daughter-in-law, brother-
in-law, or sister-in-law, including adoptive relationships, any person
sharing the Grantee's household (other than a tenant or employee), a trust
in which these persons (or the Grantee) have more than fifty percent (50%)
of the beneficial interest, a foundation in which these persons (or the
Grantee) control the management of assets, and any other entity in which
these persons (or the Grantee) own more than fifty percent (50%) of the
voting interests.

       (r) "Non-Qualified Stock Option" means an Option not intended to
qualify as an incentive stock option within the meaning of Section 422 of
the Code.

       (s) "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.

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

       (u) "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.

       (v) "Replaced" means that pursuant to a Corporate Transaction the
Option 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 Option
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 Option.  The determination of Option
comparability shall be made by the Board and its determination shall be
final, binding and conclusive.

                                     9
<PAGE>

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

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

                                END OF AGREEMENT

                                      10
<PAGE>


                                   EXHIBIT A
                                   ---------

                                EXERCISE NOTICE
                                ---------------

Crdentia Corp.
14114 Dallas Parkway, Suite 600
Dallas, Texas  75254
Attention:  Secretary

     1. Effective as of today,               ,    the undersigned (the "
Grantee") hereby elects to exercise the Grantee's option to purchase
          shares of the Common Stock (the "Shares") of Crdentia Corp. (the
"Company") under and pursuant to the Stock Option Award Agreement (the
"Option Agreement") and Notice of Stock Option Award (the "Notice") dated
December 16, 2003.  Unless otherwise defined herein, the terms defined in
the Option Agreement shall have the same defined meanings in this Exercise
Notice.

     2. Representations of the Grantee.  The Grantee acknowledges that the
Grantee has received, read and understood the Notice and the Option
Agreement and agrees to abide by and be bound by their terms and conditions.

     3. Rights as Stockholder.  Until the stock certificate evidencing such
Shares is issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Shares, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such stock certificate
promptly after the Option is exercised.  No adjustment will be made for a
dividend or other right for which the record date is prior to the date the
stock certificate is issued, except as provided in Section 19 of the Option
Agreement.

     4. Delivery of Payment.  The Grantee herewith delivers to the Company
the full Exercise Price for the Shares, which, to the extent selected, shall
be deemed to be satisfied by use of the broker-dealer sale and remittance
procedure to pay the Exercise Price provided in Section 4(d) of the Option
Agreement.

     5. Tax Consultation.  The Grantee understands that the Grantee may
suffer adverse tax consequences as a result of the Grantee's purchase or
disposition of the Shares.  The Grantee represents that the Grantee has
consulted with any tax consultants the Grantee deems advisable in connection
with the purchase or disposition of the Shares and that the Grantee is not
relying on the Company for any tax advice.

     6. Taxes.  The Grantee agrees to satisfy all applicable non-U.S.,
federal, state and local income and employment tax withholding obligations
and herewith delivers to the Company the full amount of such obligations or
has made arrangements acceptable to the Company to satisfy such obligations.
If the Company is required to satisfy any non-U.S., federal, state or local
income or employment tax withholding obligations as a result of such an
early disposition, the Grantee agrees to satisfy the amount of such
withholding in a manner that the Board prescribes.

                                    1
<PAGE>

     7. Successors and Assigns.  The Company may assign any of its rights
under this Exercise Notice to single or multiple assignees, and this
agreement shall inure to the benefit of the successors and assigns of the
Company.  Subject to the restrictions on transfer herein set forth, this
Exercise Notice shall be binding upon the Grantee and his or her heirs,
executors, administrators, successors and assigns.

     8. Headings.  The captions used in this Exercise Notice are inserted
for convenience and shall not be deemed a part of this agreement for
construction or interpretation.

     9. Dispute Resolution.  The provisions of Section 17 of the Option
Agreement shall be the exclusive means of resolving disputes arising out of
or relating to this Exercise Notice.

     10. Governing Law; Severability.  This Exercise Notice is 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 this Exercise Notice be determined by a court of law to be
illegal or unenforceable, such provision shall be enforced to the fullest
extent allowed by law and the other provisions shall nevertheless remain
effective and shall remain enforceable.

     11. 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 below
beneath its signature, or to such other address as such party may
designate in writing from time to time to the other party.

     12. Further Instruments.  The parties agree to execute such further
instruments and to take such further action as may be reasonably necessary
to carry out the purposes and intent of this agreement.

     13. Entire Agreement.  The Notice and the Option Agreement are
incorporated herein by reference and together with this Exercise Notice
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.
Nothing in the Notice the Option Agreement and this Exercise Notice (except
as expressly provided therein) is intended to confer any rights or remedies
on any persons other than the parties.

                                      2
<PAGE>

Submitted by:	                      Accepted by:

GRANTEE:	                      CRDENTIA CORP.

                                      By:
                                         ---------------------------
-----------------------------
(Signature)	                      Title:
                                             -----------------------
Address:	                      Address:

436 14th Street, Suite 1005
Oakland, CA  94612	              14114 Dallas Parkway, Suite 600
                                      Dallas, Texas  75254


                                     3
<PAGE>


                                 EXHIBIT B
                                 ---------

                    INVESTMENT REPRESENTATION STATEMENT
                    -----------------------------------

GRANTEE:                        Thomas F. Herman

COMPANY:                        CRDENTIA CORP.

SECURITY:                       COMMON STOCK

AMOUNT:
                                -------------------------
DATE:
                                -------------------------

In connection with the purchase of the above listed Securities, the
undersigned Grantee represents to the Company the following:

     (a) Grantee is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to
reach an informed and knowledgeable decision to acquire the Securities.
Grantee is acquiring these Securities for investment for Grantee's own
account only and not with a view to, or for resale in connection with, any
"distribution" thereof within the meaning of the Securities Act of 1933, as
amended (the "Securities Act").

     (b) Grantee acknowledges and understands that the Securities
constitute "restricted securities" under the Securities Act and have not
been registered under the Securities Act in reliance upon a specific
exemption therefrom, which exemption depends upon among other things, the
bona fide nature of Grantee's investment intent as expressed herein.
Grantee further understands that the Securities must be held indefinitely
unless they are subsequently registered under the Securities Act or an
exemption from such registration is available.  Grantee further
acknowledges and understands that the Company is under no obligation to
register the Securities.  Grantee understands that the certificate
evidencing the Securities will be imprinted with a legend which prohibits
the transfer of the Securities unless they are registered or such
registration is not required in the opinion of counsel satisfactory to the
Company.

     (c) Grantee is familiar with the provisions of Rule 701 and Rule 144,
each promulgated under the Securities Act, which, in substance, permit
limited public resale of "restricted securities" acquired, directly or
indirectly from the issuer thereof, in a non public offering subject to the
satisfaction of certain conditions.  Rule 701 provides that if the issuer
qualifies under Rule 701 at the time of the grant of the Option to the
Grantee, the exercise will be exempt from registration under the Securities
Act.  In the event the Company becomes subject to the reporting requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90)
days thereafter (or such longer period as any market stand off agreement may
require) the Securities exempt under Rule 701 may be resold, subject to the
satisfaction of certain of the conditions specified by Rule 144, including:
(1) the resale being made through a broker in an unsolicited "broker's
transaction" or in transactions directly with a market maker (as said term
is defined under the Securities Exchange Act of 1934); and, in the case of
an affiliate, (2) the availability of certain public information about the
Company, (3) the amount of Securities being

                                     1
<PAGE>

sold during any three month period not exceeding the limitations specified
in Rule 144(e), and (4) the timely filing of a Form 144, if applicable.

     In the event that the Company does not qualify under Rule 701 at the
time of grant of the Option, then the Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which requires
the resale to occur not less than one year after the later of the date the
Securities were sold by the Company or the date the Securities were sold by
an affiliate of the Company, within the meaning of Rule 144; and, in the
case of acquisition of the Securities by an affiliate, or by a non
affiliate who subsequently holds the Securities less than two years, the
satisfaction of the conditions set forth in sections (1), (2), (3) and (4)
of the paragraph immediately above.

     (d) Grantee further understands that in the event all of the applicable
requirements of Rule 701 or 144 are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rules
144 and 701 are not exclusive, the Staff of the Securities and Exchange
Commission has expressed its opinion that persons proposing to sell private
placement securities other than in a registered offering and otherwise than
pursuant to Rules 144 or 701 will have a substantial burden of proof in
establishing that an exemption from registration is available for such
offers or sales, and that such persons and their respective brokers who
participate in such transactions do so at their own risk.  Grantee
understands that no assurances can be given that any such other registration
exemption will be available in such event.

     (e) Grantee represents that he or she is a resident of the state of
                      .
----------------------

                                      Signature of Grantee:

                                      -----------------------------

                                      Date: 	          ,
                                           ---------------  -------

                                       2

