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Exhibit
10.3
BONUS AND OTHER AGREEMENT
This
bonus and other agreement (the "Agreement") is entered into between
Crdentia
Corp., a Delaware corporation (the "Company") and James D. Durham
(the
"Executive") (together the "Parties") as of December 31,
2003.
The
Parties hereby agree as follows:
1. As part of the consideration for entering
into this Agreement and
as part
of the consideration for receipt of an option to purchase 7,000,000
shares
of Company common stock at an exercise price of $0.10 per share under
the
terms of a stock option plan and award agreement dated December 31, 2003
the
Executive hereby agrees to relinquish the Executive's right to purchase
additional
shares of common stock of the Company (the "Purchase Options")
that
accrue to the Executive after the date of this Agreement pursuant to
Section
1.3 of the Lifen, Inc. Common Stock Purchase Agreement dated May 15,
2002
(the "Stock Purchase Agreement") in connection with all Acquisitions
(as
defined in the Stock Purchase Agreement) that occur either before or
after
the date of this Agreement and such future Purchase Options shall be
terminated
and of no further force or effect as of the date of this
Agreement. The Executive shall retain all such Purchase
Options held by
the
Executive as of the date of this Agreement which shall be governed by
the
terms of the Stock Purchase Agreement as modified by this Agreement.
For
clarity, Executive shall have the right to exercise Purchase Options to
acquire
2,767,278 shares of Company common stock and no more.
2. The Executive shall be entitled to receive
bonus payments on
December
31, 2006 in the amount of $540,000 and on January 4, 2007 in the
amount
of $540,000. The payment of the bonuses
shall not be affected by
the
termination for any reason (including death or disability) of the
Executive's
employment or service to the Company prior to December 31, 2006
or
January 4, 2007.
3. The third sentence of Section 1.3 of the
Stock Purchase Agreement
provides
as follows:
"Each Investor's right to purchase
these additional shares of Common
Stock
shall expire one year after the Vesting Expiration Date (the
"Expiration
Date")."
As
applied to the Executive and not any other Investor (as defined in the
Stock Purchase
Agreement), the third sentence of Section 1.3 of the Stock
Purchase
Agreement shall be amended and restated as follows:






