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<SEC-DOCUMENT>0001104659-08-013811.txt : 20080228
<SEC-HEADER>0001104659-08-013811.hdr.sgml : 20080228
<ACCEPTANCE-DATETIME>20080228161600
ACCESSION NUMBER:		0001104659-08-013811
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20080228
DATE AS OF CHANGE:		20080228

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CRDENTIA CORP
		CENTRAL INDEX KEY:			0001073857
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HELP SUPPLY SERVICES [7363]
		IRS NUMBER:				760585701
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-145837
		FILM NUMBER:		08650826

	BUSINESS ADDRESS:	
		STREET 1:		14114 DALLAS PARKWAY
		STREET 2:		SUITE 600
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75254
		BUSINESS PHONE:		972-850-0780

	MAIL ADDRESS:	
		STREET 1:		14114 DALLAS PARKWAY
		STREET 2:		SUITE 600
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75254

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LIFEN INC
		DATE OF NAME CHANGE:	20001115

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DIGIVISION INTERNATIONAL LTD
		DATE OF NAME CHANGE:	20001005
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>a08-6833_1424b3.htm
<DESCRIPTION>PROSPECTUS FILED PURSUANT TO RULE 424(B)(3)
<TEXT>

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<body lang="EN-US">

<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROSPECTUS
SUPPLEMENT <br>
(To Prospectus Dated August&nbsp;31, 2007)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed Pursuant to Rule&nbsp;424(b)(3)</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration File No.&nbsp;333-145837</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7,440,141 Shares</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman"><img width="383" height="115" src="g68331bai001.jpg"></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Common
Stock</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Prospectus
Supplement No.&nbsp;6 supplements our Prospectus dated August&nbsp;31, 2007
(which was contained in our Registration Statement on Form&nbsp;S-1 (File No.&nbsp;333-145837))
with the following attached documents:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Current Report on Form&nbsp;8-K dated February&nbsp;22,
2008.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The attached information
modifies and supersedes, in part, the information in the Prospectus.&#160; This Prospectus Supplement No.&nbsp;6 should
be read in conjunction with the Prospectus, as previously supplemented, which
is required to be delivered with this Prospectus Supplement.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common stock is
quoted on the OTC Bulletin Board under the symbol &#147;CRDT.&#148;&#160; On February&nbsp;27, 2008 the last reported
sale price of our common stock on the OTC Bulletin Board was $0.19 per share.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Investing in our common stock involves risks. See &#147;Risk
Factors&#148; beginning on page&nbsp;7 of our Annual Report on Form&nbsp;10-K for the
year ended December&nbsp;31, 2006, which is incorporated by reference into the Prospectus,
before deciding to invest in our common stock.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither the Securities
and Exchange Commission nor any state securities commission has approved or
disapproved of these securities or determined if this prospectus supplement or
the accompanying prospectus is truthful or complete. Any representation to the
contrary is a criminal offense.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The date of this Prospectus Supplement No.&nbsp;6 is February&nbsp;28,
2008</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INDEX TO FILINGS</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="93%" valign="bottom" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><strong><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Annex</font></b></strong></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Current Report on Form&nbsp;8-K dated
  February&nbsp;22, 2008</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Annex A</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-top:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington, DC&#160; 20549</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">

<hr size="1" width="25%" noshade color="black" align="center">

</font></b></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<h2 align="center" style="color:black;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" color="black" face="Times New Roman" style="color:windowtext;font-size:18.0pt;">FORM&nbsp;8-K</font></b></h2>

<h2 align="center" style="color:black;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT
REPORT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Pursuant to Section&nbsp;13 or 15(d)&nbsp;of<br>
the Securities Exchange Act of 1934</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of earliest event reported): February&nbsp;22,
2008</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">CRDENTIA CORP.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in its charter)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">000-31152</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">76-0585701</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or Other Jurisdiction of<br>
  Incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission<br>
  File Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer<br>
  Identification Number)</font></p>
  </td>
 </tr>
</table>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="center" style="color:black;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">5001 LBJ Freeway, Suite&nbsp;850<br>
Dallas, Texas 75244</font></b></h3>

<h3 align="center" style="color:black;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of Principal Executive Offices) (Zip Code)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(972) 850-0780</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number, including area code)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last report.)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check
the appropriate box below if the Form&nbsp;8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (<i>see</i> General
Instruction A.2. below):</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Written communications
pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Soliciting material
pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17
CFR 240.14d-2(b))</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
CFR 240.13e-4(c))</font></p>

<div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
1.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Entry into a Material
Definitive Agreement.</font></b></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On February&nbsp;22, 2008
Crdentia Corp. (&#147;Crdentia&#148;) replaced its existing credit facility by entering
into a $10.2 million debt refinancing (the &#147;Refinancing&#148;) with ComVest Capital,
LLC (&#147;ComVest&#148;) pursuant to a Revolving Credit and Term Loan Agreement (the &#147;Agreement&#148;).&#160; In addition to the Agreement, Crdentia also
executed the following documents in connection with the Refinancing, all dated
as of February&nbsp;22, 2008, including: (i)&nbsp;a Revolving Credit Note in
the amount of $5,200,000 (the &#147;Revolving Note&#148;), (ii)&nbsp;a Term Note (Tranche
A) of $2,500,000 (the &#147;Term Note A&#148;) and (iii)&nbsp;a Term Note (Tranche B) of
$2,500,000 (the &#147;Term Note B&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Revolving Note bears interest at the greater of (a)&nbsp;the prime
rate of interest publicly announced by Citibank, N.A. plus 2% or (b)&nbsp;8.5%.&#160; Term Note A bears interest at 12.5% annually
and requires that (a)&nbsp;interest payments be made on the first calendar day
of each month commencing on March&nbsp;1, 2008 and (b)&nbsp;principal payments
be made in twenty-three (23) equal monthly installments of $104,166.67
beginning on March&nbsp;1, 2009, with the final payment due on February&nbsp;28,
2011.&#160; Term Note B bears interest at
12.5% annually and requires that (a)&nbsp;interest payments be made on the
first calendar day of each month commencing on March&nbsp;1, 2008 and (b)&nbsp;that
the principal be paid in full on February&nbsp;28, 2011.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to the above and in connection with the Refinancing, on February&nbsp;22,
2008, Crdentia issued a Common Stock Purchase Warrant to ComVest to purchase up
to eight million (8,000,000) shares of Common Stock of Crdentia with an
exercise price of $0.001 per share (the &#147;Warrant&#148;).&#160; The Warrant is exercisable upon the earlier
of (a)&nbsp;August&nbsp;22, 2008, or (b)&nbsp;upon the occurrence of an event
causing the acceleration of Crdentia&#146;s obligations under the Agreement.&#160; The Warrant expires on February&nbsp;28,
2014.&#160; Crdentia has agreed to register
the shares issuable upon the exercise of the Warrant pursuant to a Registration
Rights Agreement dated as of February&nbsp;22, 2008 by and between Crdentia and
ComVest (the &#147;Registration Rights Agreement&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The description of the Refinancing set forth above is qualified in its
entirety by reference to the Agreement, the Revolving Note, Term Note A, Term
Note B, the Warrant and the Registration Rights Agreement, which are filed with
this current report as Exhibits 10.1 through 10.6, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Crdentia issued a
press release on February&nbsp;27, 2008 regarding the Refinancing, a copy of
which is attached as Exhibit&nbsp;99.1 to this Current Report on Form&nbsp;8-K.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
2.03&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Creation of a Direct
Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of
a Registrant</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The information set forth under
Item 1.01 of this Current Report on Form&nbsp;8-K is hereby incorporated by
reference into this Item 2.03.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 3.02&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Unregistered Sales of Equity
Securities</font></b></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information
set forth under Item 1.01 regarding the Warrant is hereby incorporated by
reference into this Item 3.02.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Financial Statements and
Exhibits.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp; <i>Exhibits.</i></font></p>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&nbsp;</font></i></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="88%" style="border-collapse:collapse;width:88.0%;">
 <tr>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
  No.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="90%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revolving
  Credit and Term Loan Agreement dated February&nbsp;22, 2008 by and between
  Crdentia Corp. and ComVest Capital, LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revolving Credit Note
  dated February&nbsp;22, 2008 by Crdentia Corp. in favor of ComVest Capital,
  LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Term Note (Tranche A)
  dated February&nbsp;22, 2008 by Crdentia Corp. in favor ComVest Capital, LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Term Note (Tranche B)
  dated February&nbsp;22, 2008 by Crdentia Corp. in favor of ComVest Capital,
  LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.5</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock Purchase
  Warrant of Crdentia Corp. issued to ComVest Capital, LLC as of
  February&nbsp;22, 2008.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.6</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration Rights
  Agreement dated February&nbsp;22, 2008 by and between Crdentia Corp. and
  ComVest Capital, LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press release of
  Crdentia Corp. issued on February&nbsp;27, 2008.</font></p>
  </td>
 </tr>
</table>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:41.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CRDENTIA CORP.</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">February&nbsp;27, 2008</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:37.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ James J. TerBeest</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:37.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James J. TerBeest</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
  No.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="89%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:89.7%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:89.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revolving
  Credit and Term Loan Agreement dated February&nbsp;22, 2008 by and between
  Crdentia Corp. and ComVest Capital, LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revolving Credit Note
  dated February&nbsp;22, 2008 by Crdentia Corp. in favor of ComVest Capital,
  LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Term Note (Tranche A)
  dated February&nbsp;22, 2008 by Crdentia Corp. in favor ComVest Capital, LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Term Note (Tranche B)
  dated February&nbsp;22, 2008 by Crdentia Corp. in favor of ComVest Capital,
  LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.5</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock Purchase
  Warrant of Crdentia Corp. issued to ComVest Capital, LLC as of
  February&nbsp;22, 2008.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.6</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration Rights
  Agreement dated February&nbsp;22, 2008 by and between Crdentia Corp. and
  ComVest Capital, LLC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press release of
  Crdentia Corp. issued on February&nbsp;27, 2008.</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.1</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">REVOLVING CREDIT AND TERM LOAN AGREEMENT</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THIS AGREEMENT</font></b><font size="2" style="font-size:10.0pt;"> (this &#147;<u>Agreement</u>&#148;)
is made and entered into as of the &nbsp;22 day of February, 2008, by and
between <b>COMVEST CAPITAL LLC</b>, a
Delaware limited liability company (the &#147;<u>Lender</u>&#148;), and <b>CRDENTIA CORP.</b>, a Delaware corporation (the
&#147;<u>Borrower</u>&#148;).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">W</font></u></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">  <u>I</u>  <u>T</u>  <u>N</u>  <u>E</u>
<u>S</u>  <u>S</u>  <u>E</u>  <u>T</u>  <u>H</u> :</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, the Borrower
and its Active Subsidiaries are engaged in the business of providing healthcare
staffing services to hospitals and other healthcare facilities throughout the
United States (the &#147;<u>Business Operations</u>&#148;); and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, in order to
enable the Borrower to repay certain outstanding Indebtedness and to finance
potential future business acquisitions, and for the Borrower&#146;s working capital
and other general corporate purposes, the Borrower has requested the Lender to
extend to the Borrower a revolving credit facility and term loans on the terms
and conditions of this Agreement; and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, the Lender is
willing and able to provide such revolving credit facility and make such term
loans to the Borrower on the terms and conditions of this Agreement;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW, THEREFORE</font></b><font size="2" style="font-size:10.0pt;">, in
consideration of the premises and the mutual covenants herein contained, the
parties hereby agree as follows:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">I.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>DEFINITIONS</u></font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1.01.&#160; Defined Terms</font></u><font size="2" style="font-size:10.0pt;">.&#160; In addition to the other terms defined
elsewhere in this Agreement, as used herein, the following terms shall have the
following meanings:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Accounts</u>&#148; shall mean
&#147;accounts&#148; (as defined in the UCC) of the Borrower and its Domestic
Subsidiaries from time to time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Account Debtor</u>&#148; shall mean any Person
who is obligated on an Account.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Act</u>&#148; shall mean the
Securities Act of 1933, as amended, and the rules&nbsp;and regulations
thereunder.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Active Subsidiaries</u>&#148;
shall mean those Subsidiaries listed as such on <u>Schedule 1.01</u> of the
Disclosure Schedule.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Advances</u>&#148; shall mean
the principal amounts loaned to the Borrower from time to time pursuant to Section&nbsp;2.01
below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Affiliate</u>&#148; shall
mean, with respect to any Person, any other Person in Control of, Controlled
by, or under common Control with the first Person, and any other Person who has
a substantial interest, direct or indirect, in the first Person or any of its
Affiliates, including, without limitation, any officer or director of the first
Person or any of its Affiliates; <u>provided</u>, </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">however</font></u><font size="2" style="font-size:10.0pt;">, that, except
as otherwise provided herein, neither the Lender nor any of its Affiliates
shall be deemed an &#147;Affiliate&#148; of the Borrower for any purposes of this
Agreement.&#160; For the purpose of this
definition, a &#147;substantial interest&#148; shall mean the direct or indirect legal or
beneficial ownership of more than ten (10%) percent of any class of stock or
similar interest.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Agreement</u>&#148; shall
mean this Revolving Credit and Term Loan Agreement as it may from time to time
be amended, modified, supplemented and/or restated.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Applicable Law</u>&#148;
shall mean all applicable provisions of all (a)&nbsp;constitutions, statutes,
ordinances, rules, regulations and orders of all governmental and/or
quasi-governmental bodies, (b)&nbsp;Government Approvals, and (c)&nbsp;order,
judgments and decrees of all courts and arbitrators.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Availability</u>&#148; shall
mean the amount (if any) by which, at the time of determination, (a)&nbsp;the
Revolving Credit Commitment exceeds (b)&nbsp;the outstanding principal amount
of Advances.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Borrowing Base</u>&#148;
shall mean an amount, determined in accordance with the most recent borrowing
base report provided to the Lender under Section&nbsp;5.04(e)&nbsp;hereof,
equal to the sum of (a)&nbsp;85% of Eligible Accounts, <u>plus</u> (b)&nbsp;the
lesser of (i)&nbsp;50% of Eligible Unbilled Accounts, or (ii)&nbsp;$500,000, <u>minus</u>
(c)&nbsp;such reserves as the Lender may establish from time to time in its
Permitted Discretion (including, without limitation, to account for
concentration and other risks of collection, and for payroll, taxes or other
liabilities).&#160; In the event that the
Borrower has not timely delivered a current Borrowing Base report in accordance
with Section&nbsp;5.04(e)&nbsp;below, then the applicable Borrowing Base shall
be such amount as is established by the Lender, until such time as the Borrower
has delivered a current Borrowing Base report.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Borrowing
Date</u>&#148; means the Business Day on which the Lender makes a Loan hereunder.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Business Day</u>&#148; shall
mean a day other than (a)&nbsp;a Saturday, (b)&nbsp;a Sunday, or (c)&nbsp; a
day on which banking institutions in either the State of Florida or the State
of Texas are authorized or required by law or executive order to close.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Capital Expenditures</u>&#148;
shall mean with respect to any Person, all expenditures of such Person for
tangible assets which are capitalized, and the fair value of any tangible
assets leased by such Person under any lease which would be a Capitalized
Lease, determined in accordance with GAAP, including all amounts paid or
accrued by such Person in connection with the purchase (whether on a cash or
deferred payment basis) or lease (including Capitalized Lease Obligations) of
any machinery, equipment, real property, improvements to real property
(including leasehold improvements), or any other tangible asset of such Person
which is required, in accordance with GAAP, to be treated as a fixed asset on
the consolidated balance sheet of such Person.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Capitalized Lease</u>&#148;
shall mean any lease which is or should be capitalized on the balance sheet of
the lessee thereunder in accordance with GAAP.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Capitalized Lease
Obligation</u>&#148; shall mean with respect to any Person, the amount of the
liability which reflects the amount of future payments under all Capitalized
Leases of such Person as at any date, determined in accordance with GAAP.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Cash Equivalents</u>&#148;
shall mean (a)&nbsp;marketable securities issued, or directly and fully
guaranteed or insured, by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof) having maturities of not more
than twelve (12) months from the date of acquisition; (b)&nbsp;time deposits,
demand deposits, certificates of deposit, acceptances or prime commercial paper
issued by, or repurchase obligations for underlying securities of the types
described in clause (a)&nbsp;entered into with any commercial bank having a
short-term deposit rating of at least A-2 or the equivalent thereof by Standard&nbsp;&amp;
Poor&#146;s Corporation or at least P-2 or the equivalent thereof by Moody&#146;s
Investors Service,&nbsp;Inc.; (c)&nbsp;commercial paper with a rating of A-I or
A-2 or the equivalent thereof by Standard&nbsp;&amp; Poor&#146;s Corporation or P-1
or P-2 or the equivalent thereof by Moody&#146;s Investors Service,&nbsp;Inc. and in
each case maturing within twelve (12) months after the date of acquisition; (d)&nbsp;marketable
direct obligations issued by any state in the United States or any agency or
instrumentality thereof maturing within twelve (12) months from the date of
acquisition thereof and, at the time of acquisition, have one of the two
highest ratings generally obtainable from either Standard&nbsp;&amp; Poor&#146;s
Corporation or Moody&#146;s Investors Services,&nbsp;Inc.; (e)&nbsp;tax-exempt
commercial paper of United States municipal, state or local governments rated
at least A-2 or the equivalent thereof by Standard&nbsp;&amp; Poor&#146;s
Corporation or at least P-2 or the equivalent thereof by Moody&#146;s Investors
Services,&nbsp;Inc. and maturing within twelve (12) months after the date of
acquisition thereof; (f)&nbsp;any other items selected by the Borrower and
approved by the Lender (which approval shall not be unreasonably withheld or
delayed); or (g)&nbsp;any mutual fund or other pooled investment vehicle which
invests principally in the foregoing obligations.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Closing Date</u>&#148; shall
mean the date of this Agreement, simultaneously with the funding of the Term
Loans.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Closing Fees</u>&#148; shall
mean, collectively, (a)&nbsp;a facility fee in the amount of $125,000 with
respect to the Revolving Credit Commitment, and (b)&nbsp;a closing fee in the
amount of $100,000 with respect to the Term Loans, both of which shall be
payable in accordance with Section&nbsp;2.03(a)&nbsp;below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Code</u>&#148; shall mean the
Internal Revenue Code of 1986, and the rules&nbsp;and regulations promulgated
thereunder, as in effect from time to time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Collateral</u>&#148; shall
mean all collateral pledged by the Borrower and/or any of the Subsidiaries as
security for the payment and performance of the Obligations, whether pursuant
to the Collateral Agreement or any other Security Document.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Collateral Agreement</u>&#148;
shall mean the Collateral Agreement, dated as of the Closing Date, by and among
the Borrower, the Active Subsidiaries and the Lender, as same may be amended,
modified, supplemented and/or restated from time to time.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Common Stock</u>&#148; shall
mean the authorized common stock of the Company, $.0001 par value per share.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Confidential Information</u>&#148;
shall mean information that the Borrower furnishes to the Lender pursuant to
any Loan Document, but does not include any such information once such
information has become, or if such information is, generally available to the
public or available to the Lender from a source other than the Borrower which
is not, to the Lender&#146;s knowledge, bound by any confidentiality agreement in
respect thereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Contract</u>&#148; shall mean
any indenture, agreement (other than this Agreement), other contractual
restriction, lease in which the Borrower or any Subsidiary is a lessor or
lessee, license or instrument.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Control</u>&#148; shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise, and the terms &#147;<u>Controlling</u>&#148;
and &#147;<u>Controlled</u>&#148; shall have meanings correlative thereto.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Control Agreement</u>&#148;
shall mean, with respect to each bank account (including lockbox service)
and/or securities account maintained by or in the name of the Borrower or any
Subsidiary (other than a Dissolving Subsidiary) from time to time, an agreement
executed and delivered by the Borrower (or the subject Subsidiary, as
applicable) and the account intermediary, whereby the account intermediary
acknowledges the Lender&#146;s Lien on such account and all funds or property
therein, and &#147;control&#148; (within the meaning of the UCC) over such account is
established in favor of the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Default</u>&#148; shall mean
any of the events specified in Article&nbsp;VII hereof, whether or not any
requirement for the giving of notice, the lapse of time, or both, or any other
condition, has been satisfied.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Disclosure Schedule</u>&#148;
shall mean the disclosure schedule, dated as of the Closing Date, executed and
delivered by the Borrower to the Lender, the section numbers of which
correspond to the Section&nbsp;numbers of this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Dissolving Subsidiaries</u>&#148;
shall mean those Subsidiaries listed as such on <u>Schedule 1.01</u> of the
Disclosure Schedule.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Dollars</u>&#148; or &#147;<u>$</u>&#148;
shall mean United States Dollars, lawful currency for the payment of public and
private debts.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Domestic Subsidiary</u>&#148;
shall mean any Subsidiary which is incorporated or formed under the laws of the
United States, any State or Commonwealth in the United States, or the District
of Columbia.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>EBITDA</u>&#148; shall mean,
for the subject period, for the Borrower and its Subsidiaries on a consolidated
basis, the sum of (a)&nbsp;Net Income, <u>plus</u> (b)&nbsp;Interest Expense
deducted in the calculation of such Net Income, <u>plus</u> (c)&nbsp;all income
taxes deducted in the </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">calculation
of such Net Income, <u>plus</u> (d)&nbsp;depreciation and amortization expense
deducted in the calculation of such Net Income, <u>plus</u> (e)&nbsp;other
non-cash charges and expenses deducted in the calculation of such Net Income,
excluding accruals for cash expenses made in the ordinary course of business, <u>minus</u>
(f) any and all dividends and distributions made by the Borrower to its
stockholders.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Eligible Account</u>&#148;
shall mean the face amount of each trade Account of the Borrower or a Domestic
Subsidiary (provided that such Domestic Subsidiary is a party to the Guaranty
Agreement and the Collateral Agreement) for services rendered or goods and
products sold in the ordinary course of the Business Operations which the
Lender, in its Permitted Discretion, deems to be an Eligible Account; <u>provided</u>,
<u>however</u>, that an Account shall not be deemed an Eligible Account unless
it meets all of the following conditions:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the subject services or products and goods have been
rendered, shipped or delivered on an absolute sale basis to an Account Debtor
which is not an Affiliate, vendor or supplier of the Borrower or a Subsidiary,
with an invoice date contemporaneous with or within ten (10)&nbsp;calendar days
after the date of shipment or service, and which does not constitute a
consignment sale, bill-and-hold sale, sale-and-return or other such arrangement
and is not subject to any other repurchase, return or offset agreement binding
upon the Borrower or a Subsidiary; the subject services or products and goods
have been rendered, shipped and delivered (or shipped f.o.b.) to such Account
Debtor on an open account basis (or with payment guaranteed by a domestic
letter of credit, drawn on or by a domestic financial institution, acceptable
to the Lender in all respects), and no part of the subject services, products
or goods has been returned, rejected, lost or damaged; the Account is not
evidenced by chattel paper or an instrument of any kind; and such Account
Debtor, unless pre-approved in writing by the Lender, is not insolvent or the
subject of any bankruptcy or insolvency proceeding of any kind in any
jurisdiction;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if the Account Debtor is located outside the continental
United States, payment for the subject services or goods shall be secured by an
irrevocable letter of credit, which letter of credit shall have been issued or
confirmed by a financial institutional reasonably acceptable to the Lender
payable in the full amount of the face value of the Account in lawful currency
of the United States;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; it is a valid, legally enforceable obligation of the
Account Debtor thereunder payable in Dollars and is not subject to any
recoupment, offset or other defense or any discount or chargeback on the part
of such Account Debtor (provided that prompt payment discounts granted in the
ordinary course of business shall not cause an Account to be disqualified
hereunder, so long as only the discounted amount of such Account, if not
otherwise disqualified, is included in the calculation of the Borrowing Base)
or to any claim on the part of such Account Debtor denying liability thereunder
(provided that the undisputed portion may be considered to be an Eligible
Account);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; it is subject to no Lien whatsoever except for the Lien of
the Lender, and the Lender has a perfected first priority Lien in such Account;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; it has not remained unpaid in whole or in part for a
period exceeding one hundred twenty (120) days after the invoice date;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; it does not arise out of a transaction (whether direct or
indirect) with an employee, officer, agent, director or Affiliate of the
Borrower or any Subsidiary or with any entity controlled by any employee,
officer, agent or director of the Borrower or any Subsidiary;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; it is not subject to any contract retainage or other
withholding of any portion of payments on amounts invoiced, whether to secure
the Borrower&#146;s or any Subsidiary&#146;s performance or otherwise;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; it does not represent the unpaid portion of an Account any
portion of which was previously paid or agreed to be paid through the issuance or
delivery of equity securities or other non-cash consideration;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if the Account Debtor is the United States, any State, or
any department, agency or instrumentality thereof, the Borrower or the
applicable Domestic Subsidiary has duly assigned its rights to payment of such
Account to the Lender pursuant to the federal Assignment of Claims Act and any
comparable state statutes;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; such Account is not payable by any person other than the
Account Debtor (such as a beneficiary, recipient or subscriber individually),
provided that the portion thereof which is payable by the Account Debtor may be
considered to be an Eligible Account;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; at least sixty (60%) percent in dollar amount of the total
Accounts owed by such Account Debtor and/or its Affiliates constitute Eligible
Accounts;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the total Accounts owed by the subject Account Debtor
and/or its Affiliates constitute less than ten (10%) percent of the net
collectible dollar value of all Eligible Accounts (provided that only the
excess over ten (10%) percent shall be disqualified under this clause (l),
unless the Lender has otherwise consented in writing to the inclusion of all or
any portion of such excess);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; such
Account is payable solely to the Borrower or a Domestic Subsidiary, and the
Borrower or such Domestic Subsidiary is not aware of any dispute by the Account
Debtor with respect to such Account (provided that (i)&nbsp;routine billing
questions by the Account Debtor, without denial of any payment obligation,
which are handled by the Borrower or the subject Domestic Subsidiary in the
ordinary course of business, shall not be deemed a disqualifying dispute
hereunder, and (ii)&nbsp;if the Account Debtor has affirmatively stated in
writing to the Borrower or the subject Domestic Subsidiary that the Account Debtor
will timely pay the undisputed portion of such Account, then the undisputed
portion of such Account will not be disqualified by reason of a dispute
relating to such Account); and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; it is not otherwise determined by the Lender, in the
Lender&#146;s Permitted Discretion, to be difficult to collect, uncollectible or
otherwise unacceptable for any reason.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Eligible Unbilled
Account</u>&#148; shall mean the amount that would then be billable by the Borrower
or a Domestic Subsidiary (provided that such Domestic Subsidiary is a party to
the Guaranty Agreement and the Collateral Agreement) for each unbilled Account
of the Borrower or such Domestic Subsidiary arising in the ordinary course of
the Business Operations for the </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">sale
of goods or rendering of services within the ten (10)&nbsp;calendar days
immediately preceding the calculation date of the subject Borrowing Base, and
which, other than being unbilled, satisfies all of the other conditions
contained in the definition of Eligible Account.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>ERISA</u>&#148; shall mean
the Employee Retirement Income Security Act of 1974, as in effect from time to
time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>ERISA Affiliate</u>&#148;
shall mean, with respect to any Person, any other Person which is under common
control with the first Person within the meaning of Section&nbsp;414(b)&nbsp;or
414(c)&nbsp;of the Code; <u>provided</u>, <u>however</u>, that with respect to
the Borrower, no Person which is an Affiliate of the Lender (other than the
Borrower and its Subsidiaries) shall be deemed an ERISA Affiliate for purposes
of this Agreement</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Event of Default</u>&#148;
has the meaning set forth in Article&nbsp;VII below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Exchange Act</u>&#148; shall
mean the Securities Exchange Act of 1934, as amended.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Financial Statements</u>&#148;
has the meaning set forth in Section&nbsp;3.01(a)&nbsp;below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Fiscal Year</u>&#148; shall
mean the fiscal year of the Borrower which ends on December&nbsp;31 of each
year.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Fixed Charges</u>&#148; shall
mean, for the period in question, the sum of (a)&nbsp;all principal payments
scheduled or required to be made during or with respect to such period in
respect of Indebtedness of the Borrower and its Subsidiaries, <u>plus</u> (b)&nbsp;all
Interest Expense of the Borrower and its Subsidiaries for such period, <u>plus</u>
(c)&nbsp;all income taxes paid or accrued for the Borrower and its Subsidiaries
for such period.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Foreign Subsidiary</u>&#148;
shall mean any Subsidiary which is not a Domestic Subsidiary.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>GAAP</u>&#148; shall mean
generally accepted accounting principles in the United States of America,
consistently applied, unless the context otherwise requires, with respect to
any financial terms contained herein, as then in effect with respect to the
preparation of financial statements.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Government Approval</u>&#148;
shall mean an authorization, consent, non-action, approval, license or
exemption of, registration or filing with, or report to, any governmental or
quasi-governmental department, agency, body or other unit.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Guaranty</u>&#148;, &#147;<u>Guaranteed</u>&#148;
or to &#147;<u>Guarantee</u>&#148;, as applied to any Indebtedness, liability or other
obligation, shall mean (a)&nbsp;a guaranty, directly or indirectly, in any
manner, including by way of endorsement (other than endorsements of negotiable
instruments for collection in the ordinary course of business), of any part or
all of such obligation, and (b)&nbsp;an agreement, contingent or otherwise, and
whether or not constituting a guaranty, assuring, or intended to assure, the
payment or performance (or payment of damages in the event of non-performance)
of any part or all of such obligation by any means (including, without
limitation, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
purchase of securities or obligations, the purchase or sale of property or
services, or the supplying of funds).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Guaranty Agreement</u>&#148;
shall mean the Guaranty Agreement, dated as of the Closing Date (and as same
may be amended, modified, supplemented and/or restated from time to time),
executed by each Active Subsidiary in favor of the Lender, pursuant to which
the Active Subsidiaries will guaranty the full and timely payment and
performance of all of the Obligations.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Indebtedness</u>&#148; shall
mean (without duplication), with respect
to any Person, (a)&nbsp;all obligations or liabilities, contingent or
otherwise, for borrowed money, (b)&nbsp;any and all obligations represented by
promissory notes, bonds, debentures or the like, or on which interest charges
are customarily paid, (c)&nbsp;any liability secured by any mortgage, pledge,
lien or security interest on property owned or acquired, whether or not such
liability shall have been assumed, (d)&nbsp;obligations of such Person under
conditional sale or other title retention agreements relating to property or
assets purchased by such Person, (e)&nbsp;all obligations of such Person issued
or assumed as the deferred purchase price of property or services (excluding
trade payables and accrued obligations incurred in the ordinary course of
business), (f)&nbsp;any obligations (contingent or otherwise) of such Person as
an account party or applicant in respect of letters of credit and/or bankers&#146;
acceptances, and (g)&nbsp;Guarantees, endorsements (other than for collection
in the ordinary course of business) and other contingent obligations in respect
of the obligations of others.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Interest
Expense</u>&#148; shall mean, for the relevant period, interest expense (including,
without limitation, interest attributable to Capitalized Leases in accordance
with GAAP) and fees with respect to Indebtedness.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Investment</u>&#148;, as
applied to the Borrower or any Subsidiary, shall mean: (a)&nbsp;any shares of
capital stock, evidence of Indebtedness or other security issued by any other
Person to the Borrower or any Subsidiary, (b)&nbsp;any loan, advance or
extension of credit to, or contribution to the capital of, any other Person,
other than credit terms extended to customers in the ordinary course of
business, (c)&nbsp;any other investment by the Borrower or any Subsidiary in
any assets or securities of any other Person, and (d)&nbsp;any commitment to
make any Investment.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Knowledge&#148; or &#147;Known</u>&#148;
or words of similar import shall mean, with respect to the Borrower and/or any
Subsidiary, the actual knowledge of John B. Kaiser and/or James J. TerBeest,
after reasonable inquiry of the appropriate managerial employees of the
Borrower and the Subsidiaries.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Landlord Waiver</u>&#148;
shall mean a landlord waiver, subordination and/or access agreement, in form
and substance reasonably satisfactory to the Lender, executed in favor of the
Lender by the landlord of a Real Property which is leased by the Borrower or a
Subsidiary as lessee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Liabilities and
Contingencies</u>&#148; has the meaning set forth in Section&nbsp;3.01(c)&nbsp;below.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 3.25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 3.25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Lien</u>&#148;, as applied to
the property or assets (or the income or profits therefrom) of the Borrower or
any Subsidiary, shall mean (in each case, whether the same is consensual or
nonconsensual or arises by contract, operation of law, legal process or otherwise):
(a)&nbsp;any mortgage, lien, pledge, hypothecation, attachment, assignment,
deposit arrangement, encumbrance, charge, lease constituting a Capitalized
Lease Obligation, conditional sale or other title retention agreement, or other
security interest or encumbrance of any kind in respect of any property
(including, without limitation, stock of any Subsidiary) of the Borrower or any
Subsidiary, or upon the income or profits therefrom; (b)&nbsp;any arrangement
under which any property of the Borrower or any Subsidiary is transferred,
sequestered or otherwise identified for the purpose of subjecting or making
available the same for the payment of Indebtedness or the performance of any
other liability in priority to the payment of the general, unsecured creditors
of the Borrower or any Subsidiary; (c)&nbsp;any Indebtedness or liability which
remains unpaid after the same shall become due and payable and which, if
unpaid, by law or otherwise is given any priority whatsoever over the general
unsecured creditors of the Borrower or any Subsidiary; and (d)&nbsp;any
agreement (other than this Agreement) or other arrangement which, directly or
indirectly, prohibits the Borrower or any Subsidiary from creating or incurring
any lien on any of its properties or assets or which conditions the ability to
do so on the security, on a <u>pro</u>  <u>rata</u> or other basis, of
Indebtedness other than Indebtedness outstanding under this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Loan Documents</u>&#148;
shall mean the collective reference to this Agreement, the Notes, the Security
Documents, the Warrant, the Registration Rights Agreement, and any and all
other agreements, instruments, certificates and other documents as may be
executed and delivered by the Borrower and/or any of the Subsidiaries pursuant
hereto or thereto.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Loans</u>&#148; shall mean, collectively, the
Advances and the Term Loans.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Material Adverse Effect</u>&#148;
shall mean any event, act, omission, condition or circumstance which has or
would reasonably be expected to have a material adverse effect on (a)&nbsp;the
business, operations, properties, assets or condition, financial or otherwise,
of the Borrower and the Subsidiaries, taken as a whole, (b)&nbsp;the ability of
the Borrower or any Subsidiary to pay or perform any of its obligations under
any of the Loan Documents, or (c)&nbsp;the validity or enforceability of, or
the Lender&#146;s rights and remedies under, any of the Loan Documents, other than
due to the acts or omissions of the Lender or any of its Affiliates.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Monitoring Fee</u>&#148;
shall mean the fees payable to the Lender pursuant to Section&nbsp;2.03(b)&nbsp;below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Net Income</u>&#148; shall
mean the consolidated net income (or loss) of the Borrower and its Subsidiaries
for the period in question, after giving effect to deduction of or provision
for all operating expenses, all taxes and reserves (including reserves for
deferred taxes) and all other proper deductions, all determined in accordance
with GAAP; <u>provided</u>, <u>however</u>, that for purposes of calculating
Net Income, there shall be excluded and no effect shall be given to (a)&nbsp;any
restoration of any contingency reserve, except to the extent that provision for
such reserve was made out of income for the subject period, and (b)&nbsp;any
Net Income attributable to any Subsidiary to the extent that the Borrower (or
any Subsidiary through which the Borrower owns the subject Subsidiary) is
prohibited (by law, Contract, minority ownership rights or otherwise) from
receiving a distribution of such Net Income from such Subsidiary.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Notes</u>&#148; shall mean,
collectively, the Revolving Credit Note and the Term Notes.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Obligations</u>&#148; shall
mean the collective reference to all Indebtedness and other liabilities and
obligations of every kind and description owed by the Borrower and/or any
Subsidiaries to the Lender from time to time under or pursuant to this
Agreement, the Notes, the Security Documents and the other Loan Documents
(excluding the Warrant and Registration Rights Agreement, other than amounts
payable from time to time pursuant to Section&nbsp;2(c)&nbsp;of the
Registration Rights Agreement), and/or otherwise in respect of the Loans,
however evidenced, created or incurred, fixed or contingent, now or hereafter
existing, due or to become due.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Organic Documents</u>&#148;
shall mean, with respect to any Person, the certificate of incorporation,
articles of incorporation, certificate of formation, certificate of limited
partnership, by-laws, operating agreement, limited partnership agreement or
other such document of such Person.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Permitted Discretion</u>&#148;
shall mean a determination or judgment made by the Lender in good faith in the
exercise of reasonable business judgment from the perspective of a secured
lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Permitted Indebtedness</u>&#148;
shall mean any and all Indebtedness expressly permitted pursuant to Section&nbsp;6.01
below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Permitted Liens</u>&#148;
shall mean those Liens expressly permitted pursuant to Section&nbsp;6.02 below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Person</u>&#148; shall mean
any individual, partnership, corporation, limited liability company, banking
association, business trust, joint stock company, trust, unincorporated
association, joint venture, governmental authority or other entity of whatever
nature.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Qualified Proceeds</u>&#148;
shall mean any and all net proceeds received by the Borrower (or any successor
entity) or any Subsidiary at any time and from time to time from any issuance
or sale of common stock, preferred stock or other equity securities (including
securities convertible into or exchangeable for capital stock of the Borrower),
except to the extent that such proceeds are, within sixty (60) days after the
receipt thereof, applied to pay the purchase price and/or directly associated
expenses of the Borrower&#146;s acquisition (directly or through a Wholly-Owned
Subsidiary) of another business, in each case subject to the requirements of
this Agreement and the Collateral Agreement.&#160;
In determining the amount of such net proceeds, (a)&nbsp;in the case of
an issuance or sale of common stock, preferred stock or other equity
securities, the gross proceeds of the subject offering, issuance or sale, net
of only those reasonable expenses incurred by the Borrower or the subject
Subsidiary directly related to the subject issuance or sale, exclusive of any
fees or commissions paid to any officer, director or other Affiliate of the
Borrower or any Affiliate of any of the foregoing, and (b)&nbsp;in the case of
any &#147;reverse merger,&#148; share exchange or other such transaction, the total
consolidated cash and cash equivalents of the other party or parties to such
transaction at the time of the consummation of such transaction, net of only
those reasonable expenses incurred by such other party or parties directly
related to such transaction, exclusive of any fees or commissions paid to any
officer, director or other Affiliate of the Borrower or such other party or
parties or any Affiliate of any of the foregoing.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Real Properties</u>&#148;
shall mean, collectively, any real properties (land, buildings and/or
improvements) now owned or leased or occupied by the Borrower or any of the
Subsidiaries, and, during the period of the Borrower&#146;s and/or Subsidiary&#146;s
occupancy thereof, any other real properties heretofore owned or leased by the
Borrower or any Subsidiary (provided that, with respect to leased properties,
the term &#147;Real Property&#148; shall refer only to the portion of the subject
property (excluding common areas) leased by the Borrower or a Subsidiary).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Registration Rights
Agreement</u>&#148; shall mean the Registration Rights Agreement, to be dated as of
the Closing Date, made by the Borrower for the benefit of the Lender and any
subsequent Holders (as such term is defined in the Registration Rights
Agreement), as same may be amended, modified, supplemented and/or restated from
time to time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Revolving Credit
Commitment</u>&#148; shall mean the Lender&#146;s agreement to make Advances to the
Borrower within the limitations set forth in Section&nbsp;2.01 below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Revolving Credit
Maturity Date</u>&#148; shall mean February&nbsp;28, 2010, subject to extension in
accordance with Section&nbsp;2.01(h)&nbsp;below; <u>provided</u>, <u>however</u>,
that in the event that the Term Loans are prepaid (or are, in accordance with
this Agreement or the Term Notes, required to be prepaid) in full, then the
Revolving Credit Maturity Date shall be deemed to have occurred simultaneously
with such prepayment or required prepayment.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Revolving Credit Note</u>&#148;
shall mean the promissory note of the Borrower issued to the Lender to
represent the Advances and interest thereon, as described in Section&nbsp;2.01(f)&nbsp;below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Sale</u>&#148; shall mean any
transaction or series of related transactions (a)&nbsp;whereby a majority of
the outstanding capital stock of the Borrower which ordinarily has voting power
for the election of directors (including preferred stock counted on an &#147;as
converted&#148; basis into common stock and common stock counted on a fully diluted
basis) is sold, assigned or transferred, (b)&nbsp;whereby the Borrower issues
shares of its capital stock which, after giving effect to such transaction or
transactions, constitute a majority of the outstanding capital stock of the
Borrower which ordinarily has voting power for the election of directors (including
preferred stock counted on an &#147;as converted&#148; basis into common stock and common
stock counted on a fully diluted basis), (c)&nbsp;whereby Control of the
Borrower is held by a Person (or group of Persons acting in concert) who does
not hold such Control on the date of this Agreement, (d)&nbsp; in which the
Borrower is a constituent party to any merger or consolidation and as a result
thereof (i)&nbsp;the holders of the outstanding capital stock of the Borrower
which ordinarily has voting power for the election of directors (including
preferred stock counted on an &#147;as converted&#148; basis into common stock)
immediately prior to such merger or consolidation cease to own a majority of
the outstanding capital stock of the Borrower which ordinarily has voting power
for the election of directors (including preferred stock counted on an &#147;as
converted&#148; basis into common stock), or (ii)&nbsp;the Borrower is not the
surviving corporation, or (e)&nbsp;whereby all or any material portion of the
assets of the Borrower or any Subsidiary are sold, assigned or transferred; <u>provided</u>,
<u>however</u>, that a &#147;Sale&#148; shall not be deemed to have occurred by reason of
any of the aforedescribed transactions (other than a sale of assets) if, after
giving effect to the consummation of the subject transaction, (A)&nbsp;the
Borrower or the surviving entity in such </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">transaction
shall be a corporation whose common stock is traded or listed on any national
securities exchange, the Nasdaq Global Market, or the Nasdaq Global Select
Market or is actively quoted on the OTC Bulletin Board, (B)&nbsp;if the
surviving entity is not the Borrower, then such surviving entity assumes all of
the Borrower&#146;s obligations under the Warrant (on the same exchange or
conversion basis as the outstanding Common Stock was treated in the subject
transaction) and the Registration Rights Agreement, (C)&nbsp;the Borrower or
other surviving entity is Controlled By one or more Persons of the Borrower on
the date of this Agreement, and (D)&nbsp;no Default or Event of Default
occurred in the performance of the subject transaction or exists upon the
consummation of the subject transaction.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>SEC</u>&#148; shall mean the
United States Securities and Exchange Commission, and any successor agency
performing the functions thereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>SEC Reports</u>&#148; shall
mean the periodic and current reports, registration statements, proxy
statements and other reports filed or required to be filed by the Borrower with
the SEC pursuant to the Act and/or the Exchange Act, and any amendments or
supplements thereto filed with the SEC.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Security Documents</u>&#148;
shall mean the Collateral Agreement, any collateral assignments, control
agreements, financing statements or other such agreements or documents pursuant
thereto, the Guaranty Agreement, the Validity Guaranties, and any other
agreements or instruments (including, without limitation, Control Agreements
and Landlord Waivers) securing or creating or evidencing Liens securing the
Obligations.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Subordinated Debt</u>&#148;
shall mean all Indebtedness for money borrowed and other liabilities of the
Borrower, whether or not evidenced by promissory notes, which is contractually
subordinated in right of payment, in a manner satisfactory to the Lender (as
evidenced by the Lender&#146;s prior written approval thereof), to all Obligations
of the Borrower to the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Subsidiary</u>&#148; or &#147;<u>Subsidiaries</u>&#148;
shall mean the individual or collective reference to any corporation, limited
liability company or other entity of which 50% or more of the outstanding
shares of stock or other equity interests of each class having ordinary voting
power and/or rights to profits (other than stock having such power only by
reason of the happening of a contingency) is at the time owned by the Borrower,
directly or indirectly through one or more Subsidiaries of the Borrower.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Term Loans</u>&#148; shall
mean the collective reference to the Tranche A Term Loan and the Tranche B Term
Loan.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Term Notes</u>&#148; shall
mean the promissory notes of the Borrower issued to the Lender as described in Section&nbsp;2.02(e)&nbsp;below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Term Notes Maturity Date</u>&#148;
shall mean February&nbsp;28, 2011.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Tranche A Term Loan</u>&#148;
shall mean the term loan in the principal amount of $2,500,000 to be made
pursuant to Section&nbsp;2.02(a)(i)&nbsp;below.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 3.25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 3.25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>
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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Tranche A Term Note</u>&#148;
shall mean the promissory note of the Borrower to be issued pursuant to Section&nbsp;2.02(e)&nbsp;below
to evidence the Tranche A Term Loan.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Tranche B Term Loan</u>&#148;
shall mean the term loan in the principal amount of $2,500,000 to be made pursuant
to Section&nbsp;2.02(a)(ii)&nbsp;below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Tranche B Term Note</u>&#148;
shall mean the promissory note of the Borrower to be issued pursuant to Section&nbsp;2.02(e)&nbsp;below
to evidence the Tranche B Term Loan.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>UCC</u>&#148; means the
Uniform Commercial Code as in effect in the State of New York on the date
hereof and hereafter from time to time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Validity Guaranties</u>&#148;
shall mean the collective reference to the Validity Guaranties, to be dated as
of the Closing Date, by and among the Lender, the Borrower and John B. Kaiser,
and by and among the Lender, the Borrower and the James J. TerBeest,
respectively.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Warrant</u>&#148; shall mean
the warrants to purchase shares of Common Stock (such warrant covering an
aggregate of 8,000,000 shares of Common Stock, subject to adjustment) to be
issued by the Borrower to the Lender on the Closing Date.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Wholly-Owned Subsidiary</u>&#148;
shall mean each Domestic Subsidiary of which all of the outstanding equity
securities (other than directors&#146; qualifying shares) are owned by the Borrower
or another such Wholly-Owned Subsidiary.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1.02.&#160; Use of Defined Terms</font></u><font size="2" style="font-size:10.0pt;">.&#160; All terms defined in this Agreement shall
have their defined meanings when used in the Notes, the Security Documents, the
other Loan Documents, and all certificates, reports or other documents made or
delivered pursuant to this Agreement, unless otherwise defined therein or
unless the specific context shall otherwise require.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1.03.&#160; Accounting Terms</font></u><font size="2" style="font-size:10.0pt;">.&#160; All accounting terms not specifically defined
herein shall be construed in accordance with GAAP.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1.04.&#160; Other Definitional Provisions</font></u><font size="2" style="font-size:10.0pt;">.&#160; The words &#147;hereof,&#148; &#147;herein&#148;, &#147;hereto&#148; and &#147;hereunder&#148;
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Section&nbsp;references are to this Agreement unless otherwise specified.&#160; The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.&#160; The word &#147;including&#148; and words of
similar import when used in this Agreement shall mean &#147;including, without
limitation,&#148; unless otherwise specified.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">II.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">GENERAL
TERMS</font></u></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.01.</font></u><u><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></u><u><font size="2" style="font-size:10.0pt;">Revolving Credit Loans</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Subject at all
times to all of the terms and conditions of this Agreement, the Lender hereby
agrees to extend to the Borrower a secured revolving credit facility, from the</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing
Date to the Revolving Credit Maturity Date, in an aggregate principal amount
not to exceed, at any time outstanding, the lesser of (i)&nbsp;the Borrowing
Base at the subject time, or (ii)&nbsp;$5,200,000 (the &#147;<u>Revolving Credit
Commitment</u>&#148;).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Such revolving
credit loans are herein sometimes referred to individually as an &#147;<u>Advance</u>&#148;
and collectively as the &#147;<u>Advances</u>.&#148;&#160;
Subject at all times to all of the terms and conditions of this
Agreement, from the Closing Date to the Revolving Credit Maturity Date and
within the limits of the Revolving Credit Commitment, the Lender shall lend,
and the Borrower may borrow, prepay (without premium or penalty) and reborrow
under this Section&nbsp;2.01.&#160; Each
request for an Advance (i)&nbsp;shall be irrevocable, (ii)&nbsp;shall be deemed
to constitute an express affirmation that all conditions precedent set forth in
part B of Article&nbsp;IV below are satisfied on the date of such request and
will be satisfied on the requested Borrowing Date, and (iii)&nbsp;shall be made
to the Lender in writing, not later than three (3)&nbsp;Business Days prior to
the requested Borrowing Date, by an authorized officer of the Borrower or by
telephonic communication by such authorized officer to the Lender, which shall
be confirmed by written notice to the Lender to be delivered to the Lender by
the Business Day next following the subject request.&#160; In no event shall the Borrower request, or
shall the Lender be required to honor, (A)&nbsp;any request for an Advance in
an amount greater than the Availability at such time, (B)&nbsp;any request for
an Advance in an amount less than $100,000, or (C)&nbsp;more than one request
for the borrowing of Advances in any seven (7)&nbsp;calendar day period.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Borrower
shall pay the Lender interest on all Advances at the rate(s)&nbsp;per annum as
in effect from time to time in accordance with the Revolving Credit Note.&#160; Such interest shall be payable monthly in
arrears on the first day of each calendar month and on the Revolving Credit
Maturity Date, and shall be computed on the daily unpaid balance of all
Advances made under the Borrower&#146;s revolving credit loan accounts with the
Lender, based on a three hundred sixty (360) day year, counting the actual
number of days elapsed.&#160; The Borrower
hereby authorizes the Lender to charge the Borrower&#146;s revolving credit loan
accounts for all such interest; <u>provided</u>, <u>however</u>, that the
Lender shall be under no obligation to make any such charge to the Borrower&#146;s
revolving credit loan accounts (including, without limitation, if there is
insufficient Availability at the time such interest is due and payable).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event
and to the extent that, at any time, the outstanding principal amount of Advances
exceeds the Revolving Credit Commitment then in effect, then the Borrower
shall, within three (3)&nbsp;Business Days, without notice or demand, make a
payment to the Lender in respect of the Advances in an amount sufficient to
cause the outstanding principal amount of Advances to be equal to or less than
the Revolving Credit Commitment then in effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Unless sooner
due and payable by reason of an Event of Default hereunder having occurred, the
Borrower shall pay in full all of the Obligations to the Lender in respect of
all Advances on or prior to the Revolving Credit Maturity Date.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All Advances
shall be evidenced by a secured Revolving Credit Note of the Borrower payable
to the Lender or registered assigns.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Borrower
may, at its option, without payment of any premium or penalty, terminate the
Revolving Credit Commitment at any time by giving ten (10)&nbsp;Business</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Days&#146;
prior written notice thereof to the Lender, and paying to the Lender, on the
date fixed for termination, an amount equal to the sum of all outstanding
principal and accrued interest of the Advances.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Provided that
the Revolving Credit Commitment has not previously been terminated, the
Borrower may, at its option, by written notice to the Lender given not earlier
than December&nbsp;31, 2009 and not later than January&nbsp;31, 2010, elect to
extend the Revolving Credit Maturity Date to February&nbsp;28, 2011, provided
that, at the time of such notice and on the scheduled Revolving Credit Maturity
Date, no Default or Event of Default shall have occurred and be
continuing.&#160; The Borrower&#146;s extension
notice shall expressly certify to the satisfaction of such conditions, and once
given, any such notice shall be irrevocable.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.02.&#160; Term Loans</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Subject at all
times to all of the terms and conditions of this Agreement, the Lender hereby
agrees to extend to the Borrower (i)&nbsp;a Term Loan in the principal amount
of $2,500,000, and (ii)&nbsp;an additional Term Loan in the principal amount of
$2,500,000.&#160; Each of the Term Loans shall
be borrowed in a single borrowing on the Closing Date, and any principal
amounts repaid in respect of the Term Loans may not be reborrowed.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Term Loans
shall be repayable in accordance with the schedules of payments set forth in
the Term Notes.&#160; The Borrower shall be
required to prepay the Term Loans (i)&nbsp;in full upon the consummation of any
Sale, and (ii)&nbsp;in part from time to time in the event and to the extent of
33% of any and all Qualified Proceeds received by the Borrower or any
Subsidiary from time to time.&#160; With
respect to any prepayment under the foregoing clause (ii), same shall be due
and payable as and when the amount of Qualified Proceeds is determined (i.e.,
upon receipt of such Qualified Proceeds in the event that no acquisition
transaction is then pending, or sixty (60) days after receipt of such Qualified
Proceeds to the extent that such Qualified Proceeds have not been applied to
the purchase price and/or related expenses of a consummated business acquisition),
and shall be applied to the principal of the Term Notes ratably in proportion
to the respective principal balances thereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Borrower
shall pay the Lender interest on the principal balance of the Term Loans at the
rate(s)&nbsp;per annum as in effect from time to time in accordance with the
Term Notes.&#160; Such interest shall be
payable monthly in arrears on the first day of each calendar month and on the
Term Loans Maturity Date, and shall be computed on the daily unpaid balance of
each Term Loan, based on a three hundred sixty (360) day year, counting the
actual number of days elapsed.&#160; The
Borrower hereby authorizes the Lender to charge the Borrower&#146;s revolving credit
loan accounts for all such interest and/or for any or all principal amounts due
and payable in respect of the Term Loans; <u>provided</u>, <u>however</u>, that
the Lender shall be under no obligation to make any such charge to the Borrower&#146;s
revolving credit loan accounts (including, without limitation, if there is
insufficient Availability at the time such interest and/or principal is due and
payable).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Unless sooner
due and payable by reason of an Event of Default hereunder having occurred, the
Borrower shall pay to the Lender all of the then-outstanding Obligations in
respect of the Term Loans on the Term Loans Maturity Date.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Tranche A
Term Loan shall be evidenced by a secured Term Note of the Borrower payable to
the Lender or registered assigns, and the Tranche B Term Loan shall be
evidenced by a secured Term Note of the Borrower payable to the Lender or
registered assigns.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.03.&#160; Fees and Premiums</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Borrower
shall pay the Closing Fees to the Lender simultaneously with the funding of the
Term Loans on the Closing Date.&#160; The
Closing Fees shall be deemed fully earned on the Closing Date, and shall not be
refundable in whole or in part and shall not be subject to reduction or set-off
under any circumstances.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Borrower
shall further pay to the Lender, on the first (1<sup>st</sup>) day of each
calendar month prior to the Revolving Credit Maturity Date or the earlier
termination of the Revolving Credit Commitment and payment of the Obligations
in accordance with Section&nbsp;2.01(g)&nbsp;above, and upon the termination of
the Revolving Credit Commitment and payment of the Obligations thereon, a
collateral monitoring, availability and administrative fee in an amount equal
to one-tenth of one percent (0.10%) of the average daily outstanding principal
amount of Advances during the immediately preceding calendar month (which shall
be appropriately prorated, based on a 30-day month, for any partial calendar
month).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event of
any prepayment of all or any portion of the Tranche B Term Loan at any time
prior to the second (2<sup>nd</sup>) anniversary of the Closing Date, in
addition to the payment of the subject principal amount and all unpaid accrued
interest thereon, the Borrower shall be required to pay to the Lender a
prepayment premium in an amount equal to two (2%) percent of the principal amount
being prepaid; <u>provided</u>, <u>however</u>, that no such prepayment premium
shall be required in respect of any mandatory prepayment pursuant to Section&nbsp;2.02(b)(ii)&nbsp;above.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Payments
received in respect of the Obligations after 2:00&nbsp;p.m. Eastern time on any
day shall be deemed to be received on the next succeeding Business Day, and if
any payment is received other than by wire transfer of immediately available
funds, such payment shall be subject to three (3)&nbsp;Business Days&#146; clearance
prior to being credited to the Obligations for interest calculation purposes.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event
that the Lender notifies the Borrower that the Lender is ready, willing and
able to fund the Loans on substantially the terms of this Agreement and the
Closing Date has not occurred within ten (10)&nbsp;days thereafter other than
due to the fault of the Lender, then the Lender may, at any time thereafter
until the Closing Date, terminate this Agreement by written notice to the
Borrower, in which event the Borrower shall immediately pay to the Lender (i)&nbsp;an
amount equal to all out-of-pocket costs, charges and expenses incurred by the
Lender in respect of the transactions contemplated by this Agreement (over and
above the $30,000 deposit heretofore paid to the Lender by the Borrower), and (ii)&nbsp;an
additional fee in the amount of $100,000. This Section&nbsp;2.03(e)&nbsp;shall
survive any termination of this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.04.&#160; Use of Proceeds</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower shall utilize the proceeds of
the Loans (a)&nbsp;on the Closing Date, to repay all then-outstanding
Indebtedness owed by the Borrower to Textron Financial Corporation (assignee of
Systran Financial Services Corporation) and to</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Comerica
Bank, and up to
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
of principal Indebtedness owed by the Borrower to Fatboy Capital, L.P. [and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
and (b)&nbsp;from and after the Closing Date, to finance business acquisitions
and for working capital and other general corporate purposes of the Borrower.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.05.&#160; Further Obligations</font></u><font size="2" style="font-size:10.0pt;">.&#160; With respect to all Obligations for which the
interest rate is not otherwise specified herein or in the Term Notes or
applicable Loan Documents (whether such Obligations arise hereunder, pursuant
to the Notes or Security Documents, or otherwise), such Obligations shall bear
interest at the rate(s)&nbsp;in effect from time to time pursuant to the
Revolving Credit Note.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.06.&#160; Application of Payments</font></u><font size="2" style="font-size:10.0pt;">.&#160; All amounts paid to or received by the Lender
in respect of the Obligations from whatever source (whether from the Borrower,
any Subsidiary pursuant to the Guaranty Agreement, any realization upon any
Collateral, or otherwise) shall, unless otherwise specified in this Agreement
or otherwise directed by the Borrower with respect to any particular payment
(unless an Event of Default shall then be continuing, in which event the Lender
may disregard the Borrower&#146;s direction), be applied (a)&nbsp;first, to
reimburse the Lender for all out-of-pocket costs and expenses incurred by the
Lender which are reimbursable to the Lender in accordance with this Agreement,
the Notes and/or any of the other Loan Documents, (b)&nbsp;next, to any accrued
but unpaid fees or prepayment premiums, (c)&nbsp;next, to unpaid accrued
interest on the Tranche A Term Loan, (d)&nbsp;next, to unpaid accrued interest
on the Tranche B Term Loan, (e)&nbsp;next, to unpaid accrued interest on the
Advances, (f)&nbsp;next, to the outstanding principal of the Tranche A Term
Loan, to the extent then due and payable, (g)&nbsp;next, to the outstanding
principal of the Tranche B Term Loan, to the extent then due and payable, (h)&nbsp;next,
to the outstanding principal of the Advances, and (i)&nbsp;finally, to the
payment of any other outstanding Obligations; <u>provided</u>, <u>however</u>,
that during the continuance of an Event of Default, the Lender may apply any
and all such amounts to such of the Obligations as the Lender may determine in
its sole and absolute discretion.&#160; After
payment in full of the Obligations, any further amounts paid to or received by
the Lender in respect of the Obligations shall be paid over to the Borrower or
such other Person(s)&nbsp;as may be legally entitled thereto.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.07.&#160; Sale or Maturity Date</font></u><font size="2" style="font-size:10.0pt;">.&#160; Anything elsewhere contained in this
Agreement and/or the Notes to the contrary notwithstanding, (a)&nbsp;the Revolving
Credit Commitment shall terminate and all Obligations shall become immediately
due and payable, without requirement of notice or demand, upon the consummation
of any Sale, and (b)&nbsp;the Revolving Credit Commitment shall terminate and
all Obligations shall become immediately due and payable, without requirement
of notice or demand, on the Revolving Credit Maturity Date or sooner upon the
prepayment (or required prepayment) and/or conversion in full of the Term
Loans.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.08.&#160; Obligations Unconditional</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The payment and
performance of all Obligations shall constitute the absolute and unconditional
obligations of the Borrower, and shall be independent of any defense or rights
of set-off, recoupment or counterclaim which the Borrower might otherwise have
against the Lender.&#160; All payments
required by this Agreement and/or the Notes shall be paid free of any
deductions or withholdings for any taxes or other amounts and without
abatement, diminution or set-off.&#160; If the
Borrower is required by law to make such a deduction or withholding from a</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">payment
hereunder, the Borrower shall pay to the Lender such additional amount as is
necessary to ensure that, after the making of such deduction or withholding,
the Lender receives (free from any liability in respect of any such deduction
or withholding) a net sum equal to the sum which it would have received and so
retained had no such deduction or withholding been made or required to be made.&#160; The Borrower shall (i)&nbsp;pay the full
amount of any deduction or withholding, which it is required to make by-law, to
the relevant authority within the payment period set by the relevant law, and (ii)&nbsp;promptly
after any such payment, deliver to the Lender an original (or certified copy)
official receipt issued by the relevant authority in respect of the amount
withheld or deducted or, if the relevant authority does not issue such official
receipts, such other evidence of payment of the amount withheld or deducted as
is reasonably acceptable to the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If, at any time
and from time to time after the Closing Date, (i)&nbsp;any change in any
existing law, regulation, treaty or directive or in the interpretation or
application thereof, (ii)&nbsp;any new law, regulation, treaty or directive
enacted or application thereof, or (iii)&nbsp;compliance by the Lender with any
request or directive (whether or not having the force of law) from any
governmental authority (A)&nbsp;subjects the Lender to any tax, levy, impost,
deduction, assessment, charge or withholding of any kind whatsoever with
respect to any Loan Document, or changes the basis of taxation of payments to
the Lender of any amount payable thereunder (except for net income taxes, or
franchise taxes imposed in lieu of net income taxes, imposed generally by
federal, state or local taxing authorities with respect to interest or
commitment fees or other fees payable hereunder or changes in the rate of tax
on the overall net income of the Lender or its members), or (B)&nbsp;imposes on
the Lender any other condition or increased cost in connection with the
transactions contemplated thereby or participations therein, and the result of
any of the foregoing is to increase the cost to the Lender of making or
continuing any Loan or to reduce any amount receivable hereunder, then, in any
such case, the Borrower shall promptly pay to the Lender any additional amounts
necessary to compensate the Lender, on an after-tax basis, for such additional
cost or reduced amount as determined by the Lender.&#160; If the Lender becomes entitled to claim any
additional amounts pursuant to this Section&nbsp;2.08(b), the Lender shall
promptly notify the Borrower of the event by reason of which the Lender has
become so entitled, and each such notice of additional amounts payable pursuant
to this Section&nbsp;2.08(b)&nbsp;submitted by the Lender to the Borrower
shall, absent manifest error, be final, conclusive and binding for all
purposes.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.09.&#160; Reversal of Payments</font></u><font size="2" style="font-size:10.0pt;">.&#160; To the extent that any payment or payments
made to or received by the Lender pursuant to this Agreement or any other Loan
Document are subsequently invalidated, declared to be fraudulent or
preferential, set aside, or required to be repaid to any trustee, receiver or
other person under any state or federal bankruptcy or other such law, then, to
the extent thereof, such amounts shall be revived as Obligations and continue
in full force and effect hereunder as if such payment or payments had not been
received by the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">III.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">REPRESENTATIONS
AND WARRANTIES</font></u></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of the Closing Date and
on each Borrowing Date (unless the representation and warranty refers to a
specific date, in which case such representation and warranty shall continue to
relate to such specific date), the Borrower hereby makes the following
representations and</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">warranties
to the Lender, all of which representations and warranties shall survive the
Closing Date, the delivery of the Notes and the making of the Loans, shall be
continuing in nature so long as any Obligations are outstanding or the
Revolving Credit Commitment remains in effect, and are as follows:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.01.&#160; Financial Matters</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Borrower
has heretofore furnished to the Lender (i)&nbsp;the audited consolidated
financial statements (including balance sheets, statements of income and
statements of cash flows) of the Borrower and its Subsidiaries as at December&nbsp;31,
2004, 2005 and 2006, and for the Fiscal Years then ended, and (ii)&nbsp;the
unaudited consolidated financial statements of the Borrower and its
Subsidiaries as of December&nbsp;31, 2007 and for the twelve (12) months then
ended (collectively, the &#147;<u>Financial Statements</u>&#148;).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Financial
Statements (i)&nbsp;have been prepared in accordance with GAAP and Regulation
S-X promulgated under the Act on a consistent basis for all periods (subject,
in the case of unaudited statements, to the absence of full footnote
disclosures, and to normal non-material audit adjustments), (ii)&nbsp;are
complete and correct in all material respects, (iii)&nbsp;fairly present the consolidated
financial condition of the Borrower and its Subsidiaries as of said dates, and
the results of their operations for the periods stated, (iv)&nbsp;contain and
reflect all necessary adjustments and accruals for a fair presentation of the
Company&#146;s consolidated financial condition and the results of its consolidated
operations as of the dates of and for the periods covered by such Financial
Statements, and (v)&nbsp;make full and adequate provision, subject to and in
accordance with GAAP, for the various assets and liabilities (including,
without limitation, deferred revenues) of the Company and its Subsidiaries,
fixed or contingent, and the results of their operations and transactions in
their accounts, as of the dates and for the periods referred to therein.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Except as set
forth in <u>Schedule 3.01</u> of the Disclosure Schedule, the Borrower and its
Subsidiaries do not have any liabilities, obligations or commitments of any
kind or nature whatsoever, whether absolute, accrued, contingent or otherwise
(collectively &#147;<u>Liabilities and Contingencies</u>&#148;), including, without
limitation, Liabilities and Contingencies under employment agreements and with
respect to any &#147;earn-outs&#148;, stock appreciation rights, or related compensation
obligations, except: (i)&nbsp;Liabilities and Contingencies disclosed in the
Financial Statements or footnotes thereto, (ii)&nbsp;Liabilities and
Contingencies incurred in the ordinary course of business and consistent with
past practice since the date of the most recent Financial Statements, or (iii)&nbsp;those
Liabilities&#160; and Contingencies which are
not required to be disclosed under GAAP.&#160;
The reserves, if any, reflected on the consolidated balance sheet of the
Borrower and its Subsidiaries included in the most recent Financial Statements
are appropriate and reasonable.&#160; Neither
the Borrower nor any of its Subsidiaries has had or presently has any
Indebtedness for money borrowed, outstanding obligations for the purchase price
of property, contingent obligations or liabilities for taxes, or any unusual
forward or long-term commitments,&#160; except
as specifically set forth or provided for in the Financial Statements or in <u>Schedule
3.01</u> of the Disclosure Schedule.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Since the date
of the most recent Financial Statements, except for the transactions pursuant
to the Loan Documents and except as set forth in <u>Schedule 3.01</u> of the</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disclosure
Schedule, there has been no material adverse change in the working capital,
condition (financial or otherwise), assets, liabilities, reserves, business,
management or Business Operations of the Borrower or any of its Subsidiaries,
including, without limitation, the following:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">there has been no material
change in any assumptions underlying, or in any methods of calculating, any bad
debt, contingency or other reserve relating to the Borrower or any Subsidiary;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">there have been (A)&nbsp;no
write-downs in the value of any inventory of, and there have been no write-offs
as uncollectible of any notes, accounts receivable or other receivables of, the
Borrower or any Subsidiary other than write-offs of accounts receivable
reserved in full as of the date of the most recent financial statements
delivered to the Lender which would not have a Material Adverse Effect, and (B)&nbsp;no
reserves established for the uncollectibility of any notes, Accounts or other
receivables of the Borrower or any Subsidiary except to the extent that same
have been disclosed to the Lender in writing and would not, individually or in
the aggregate, cause the outstanding Advances to exceed the Revolving Credit
Commitment;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">no debts have been
cancelled, no claims or rights of substantial value have been waived and no
properties or assets (real, personal or mixed, tangible or intangible) have
been sold, transferred, or otherwise disposed of by the Borrower or any
Subsidiary except (A)&nbsp;dispositions of worn-out or obsolete personal
property, and (B)&nbsp;otherwise in the ordinary course of business and
consistent with past practice;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">there has been no change in
any method of accounting or accounting practice utilized by the Borrower or any
Subsidiary;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">no material casualty, loss
or damage has been suffered by the Borrower or any Subsidiary, regardless of
whether such casualty, loss or damage is or was covered by insurance;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">there have been no announced
changes in the policies or practices of any customer, supplier or referral
source which would reasonably be expected to have a Material Adverse Effect;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">there has been no incurrence
by the Company or any Subsidiary of (A)&nbsp;any liability or obligation
outside of the ordinary course of business, or (B)&nbsp;any Indebtedness other
than Permitted Indebtedness;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">there has been no
declaration, setting aside or payment of any dividend or distribution or any
other payment of any kind by the Borrower to or in respect of any equity
securities of the Borrower; and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No action described in this Section&nbsp;3.01(d)&nbsp;has
been agreed to be taken by the Borrower or any Subsidiary.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Borrower and its Subsidiaries have in place adequate
systems of internal controls and disclosure controls and procedures sufficient
to provide reasonable assurance that (i)&nbsp;transactions are executed in
accordance with management&#146;s general or specific authorizations, (ii)&nbsp;transactions
are recorded as necessary to permit preparation of financial statements in
accordance with GAAP and Regulation S-X and to maintain asset accountability, (iii)&nbsp;access
to assets is permitted only in accordance with management&#146;s general or specific
authorization, (iv)&nbsp;the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences, and (v)&nbsp;the Borrower and its
management are able to obtain timely and accurate information regarding the
Business Operations and all material transactions relating to the Borrower and
the Subsidiaries; and no material deficiency exists with respect to the
Borrower&#146;s or any Subsidiary&#146;s systems of internal controls.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All of the SEC Reports, as of the respective dates
thereof, complied in all material respects, as applicable, with the Act and the
Exchange Act.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.02.&#160; Organization; Corporate Existence</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Borrower (i)&nbsp;is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware, (ii)&nbsp;has
all requisite corporate power and authority to own its properties and to carry
on its business as now conducted and as proposed hereafter to be conducted, (iii)&nbsp;is
qualified to do business as a foreign corporation in each jurisdiction
(including, without limitation, the State of Texas) in which the failure of the
Borrower to be so qualified would have a Material Adverse Effect, and (iv)&nbsp;has
all requisite corporate power and authority to execute and deliver, and perform
all of its obligations under, the Loan Documents.&#160; True and complete copies of the Organic
Documents of the Borrower, together with all amendments thereto, have been
furnished to the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On the date of this Agreement, the outstanding capital
stock of the Company, and the number and amount of all outstanding options,
warrants, convertible securities, subscriptions and other rights to acquire
capital stock of the Company, are as set forth in <u>Schedule 3.02</u> of the
Disclosure Schedule.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Schedule 3.02</u> of the Disclosure Schedule further
sets forth, with respect to each Active Subsidiary on the date of this
Agreement, (i)&nbsp;its proper legal name, (ii)&nbsp;its jurisdiction of
incorporation or formation, (iii)&nbsp;the jurisdictions in which it is
qualified to do business as a foreign entity, (iv)&nbsp;the number of shares of
capital stock or ownership interests outstanding, and (v)&nbsp;the owner of
such outstanding capital stock or other ownership interests.&#160; Each of the Active Subsidiaries (A)&nbsp;is
an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or formation, (B)&nbsp;has all
requisite power and authority to own its properties and to carry on its
business as now conducted and as proposed hereafter to be conducted, and to
execute and deliver, and perform all of its obligations under, the Loan
Documents to which it is a party, and (C)&nbsp;is not required to be qualified
to do business as a foreign entity in any jurisdiction in which it is not so
qualified and the failure to be so qualified would reasonably be expected to
have a Material Adverse Effect.&#160; True and
complete copies of the Organic Documents of each Active Subsidiary, together
with all amendments thereto to the date hereof, have been furnished to the
Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On the date of this Agreement, the Borrower has no
Subsidiaries other than the Active Subsidiaries and the Dissolving Subsidiaries.&#160; Each of the Dissolving Subsidiaries (i)&nbsp;has
no material assets or liabilities, (ii)&nbsp;is not engaged in the conduct of
any active business operations, and (iii)&nbsp;is actively pursuing its
dissolution as a legal entity.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.03.&#160; Authorization</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The execution, delivery and performance by the Borrower
and the Subsidiaries of their respective obligations under the Loan Documents
have been duly authorized by all requisite corporate, company, partnership and
other action and will not, either prior to or as a result of the consummation
of the transactions contemplated by this Agreement: (i)&nbsp;violate any
provision of Applicable Law, any order of any court or other agency of
government, any provision of the Organic Documents of the Borrower or any Subsidiary,
or any Contract, indenture, agreement or other instrument to which the Borrower
or any of the Subsidiaries is a party, or by which the Borrower or any of the
Subsidiaries or any of its assets or properties are bound, or (ii)&nbsp;be in
conflict with, result in a breach of, or constitute (after the giving of notice
or lapse of time or both) a default under, or, except as may be provided in the
Loan Documents, result in the creation or imposition of any Lien of any nature
whatsoever upon any of the property or assets of the Borrower or any of the
Subsidiaries pursuant to, any such Contract, indenture, agreement or other
instrument.&#160; When executed and delivered,
each Loan Document to which the Borrower or any Subsidiary is a party will
constitute the valid and binding obligation of the Borrower or such Subsidiary
(as applicable), enforceable against the Borrower or such Subsidiary in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization or other laws affecting creditors&#146;
rights generally, and by general principles of equity.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Borrower nor any of the Subsidiaries is
required to obtain any Government Approval, consent or authorization from, or
to file any declaration or statement with, any governmental instrumentality or
agency in connection with or as a condition to the execution, delivery or
performance of any of the Loan Documents.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.04.&#160; Litigation</font></u><font size="2" style="font-size:10.0pt;">.&#160; Except as disclosed on <u>Schedule 3.04</u>
of the Disclosure Schedule, there is no action, suit or proceeding at law or in
equity or by or before any governmental instrumentality or other agency now
pending or, to the knowledge of the Borrower, threatened against or affecting
the Borrower or any of the Subsidiaries or any of their respective assets,
which, if adversely determined, would have a Material Adverse Effect.&#160; The Borrower has no Knowledge of any state of
facts, events, conditions or circumstances which would properly constitute
grounds for or the basis of any meritorious suit, action, arbitration,
proceeding or investigation (including, without limitation, any unfair labor
practice charges, interference with union organizing activities, or other labor
or employment claims) against or with respect to the Borrower or any Subsidiary
which, if adversely determined, would have a Material Adverse Effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.05.&#160; Material Contracts</font></u><font size="2" style="font-size:10.0pt;">.&#160; Except as disclosed on <u>Schedule 3.05</u>
of the Disclosure Schedule, neither the Borrower nor any of the Subsidiaries is
(a)&nbsp;a party to any Contract, agreement or instrument or subject to any
charter or other corporate or organizational restriction which has had or could
reasonably be expected to have a Material Adverse Effect, (b)&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a
party to any collective bargaining agreement, or (c)&nbsp;in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any Contract, agreement or instrument to which it is a
party or by which any of its assets or properties is bound, which default,
individually or in the aggregate, would have or could reasonably be expected to
have a Material Adverse Effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.06.&#160; Title to Properties</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower and each of the Subsidiaries has
good title to all of its properties and assets, free and clear of all
mortgages, security interests, restrictions, encumbrances or other Liens of any
kind, except for restrictions on the nature of use thereof imposed by
Applicable Law, and except for Permitted Liens, none of which materially
interfere with the use and enjoyment of such properties and assets in the
normal course of the Business Operations as presently conducted, or materially
impair the value of such properties and assets for the purpose of such
business.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.07.&#160; Real Property</font></u><font size="2" style="font-size:10.0pt;">.&#160; <u>Schedule 3.07</u> of the Disclosure
Schedule sets forth a correct and complete list of all Real Properties
currently leased or occupied by the Borrower and/or any of the
Subsidiaries.&#160; Neither the Borrower nor
any of the Subsidiaries owns any Real Properties.&#160; The Borrower and each Subsidiary has a valid
lessee&#146;s interest in each Real Property currently leased or occupied by the
Borrower or such Subsidiary.&#160; Neither the
Borrower, any Subsidiary, or, to the Borrower&#146;s Knowledge, any other party
thereto, is in material breach or violation of any requirements of any such
lease; and such Real Properties are in good condition (reasonable wear and tear
excepted) and are adequate for the current and proposed businesses of the
Borrower and the Subsidiaries.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.08.&#160; Machinery and Equipment</font></u><font size="2" style="font-size:10.0pt;">.&#160; The machinery and equipment owned and/or used
by the Borrower and the Subsidiaries is, as to each individual material item of
machinery and equipment, and in the aggregate as to all such equipment, in good
and usable condition and in a state of good maintenance and repair (reasonable
wear and tear excepted), and adequate for its use in the Business Operations.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.09.&#160; Capitalization</font></u><font size="2" style="font-size:10.0pt;">.&#160; Except as set forth in <u>Schedule 1.01</u>
or <u>Schedule 3.02</u> of the Disclosure Schedule and for new Subsidiaries
formed in accordance with Section&nbsp;5.11 below, the Borrower does not,
directly or indirectly, own any capital stock of or any form of equity interest
in any other Person.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.10.&#160; Solvency</font></u><font size="2" style="font-size:10.0pt;">.&#160; After giving effect to the Loans and the
other transactions contemplated hereby, the borrowings made and/or to be made
by the Borrower under this Agreement do not and will not render the Borrower
insolvent or with unreasonably small capital for its business; the fair saleable
value of all of the assets and properties of the Borrower does now, and will,
upon the funding of the Loans contemplated hereby, exceed the aggregate
liabilities and Indebtedness of the Borrower (including contingent
liabilities); the Borrower is not contemplating either the filing of a petition
under any state or federal bankruptcy or insolvency law, or the liquidation of
all or any substantial portion of its assets or property; the Borrower has no
knowledge of any Person contemplating the filing of any such petition against
the Borrower; and the Borrower reasonably anticipates that it will be able to
pay its debts as they mature.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.11.&#160; No Investment Company</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower is not an &#147;investment company&#148;
or a company &#147;controlled&#148; by an &#147;investment company&#148; as such terms are defined
in the Investment Company Act of 1940, as amended.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.12.&#160; Margin Securities</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower does not own or have any present
intention of acquiring any &#147;margin security&#148; or any &#147;margin stock&#148; within the
meaning of Regulations T, U or X of the Board of Governors of the Federal
Reserve System (herein called &#147;margin security&#148; and &#147;margin stock&#148;).&#160; None of the proceeds of the Loans will be
used, directly or indirectly, for the purpose of purchasing or carrying, or for
the purpose of reducing or retiring any Indebtedness which was originally
incurred to purchase or carry, any margin security or margin stock or for any
other purpose which might constitute the transactions contemplated hereby a &#147;purpose
credit&#148; within the meaning of said Regulations T, U or X, or cause this
Agreement to violate any other regulation of the Board of Governors of the
Federal Reserve System or the Exchange Act, or any rules&nbsp;or regulations
promulgated under such statutes.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.13.&#160; Taxes</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All federal, state and local tax returns and tax reports
required to be filed by the Borrower and/or any Subsidiary have been timely
filed with the appropriate governmental agencies in all jurisdictions in which
such returns and reports are required to be filed.&#160; All federal, state and local income,
franchise, sales, use, property, excise, ad valorem, value-added, payroll and
other taxes (including interest, penalties and additions to tax and including
estimated tax installments where required to be filed and paid) due from or
with respect to the Borrower and the Subsidiaries have been paid to the extent
due and payable, and appropriate accruals have been made on the Borrower&#146;s
books for taxes not yet due and payable.&#160;
All taxes and other assessments and levies which the Borrower and/or any
Subsidiary is required by law to withhold or to collect have been duly withheld
and collected, and have been paid over to the proper governmental authorities
to the extent due and payable.&#160; Except as
set forth in <u>Schedule 3.13</u> of the Disclosure Schedule, there are no
outstanding or pending material claims, deficiencies or assessments for taxes,
interest or penalties with respect to any taxable period of the Borrower or any
Subsidiary, and no outstanding tax Liens.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as disclosed in <u>Schedule 3.13</u> of the
Disclosure Schedule, the Borrower has no Knowledge and has not received notice
of any pending audit with respect to any federal, state or local tax returns of
the Borrower or any Subsidiary, and no waivers of statutes of limitations have
been given or requested with respect to any tax years or tax filings of the
Borrower or any Subsidiary.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.14.&#160; ERISA</font></u><font size="2" style="font-size:10.0pt;">.&#160; Except as set forth in <u>Schedule 3.14</u>
of the Disclosure Schedule, neither the Borrower nor any ERISA Affiliate of the
Borrower maintains or has any obligation to make any contributions to any
pension, profit sharing or other similar plan providing for deferred
compensation to any employee.&#160; With respect
to any such plan(s)&nbsp;as may now exist or may hereafter be established by
the Borrower or any ERISA Affiliate of the Borrower, and which constitutes an &#147;employee
pension benefit plan&#148; within the meaning of Section&nbsp;3(2)&nbsp;of ERISA,
except as set forth on <u>Schedule 3.14</u> of the Disclosure Schedule:&#160; (a)&nbsp;the Borrower or the subject ERISA
Affiliate has paid and shall cause to be paid when due all amounts necessary to
fund such plan(s)&nbsp;in accordance with its terms, (b)&nbsp;except for normal
premiums payable by the Borrower to </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
Pension Benefit Guaranty Corporation (&#147;<u>PBGC</u>&#148;), the Borrower or the
subject ERISA Affiliate has not taken and shall not take any action which could
result in any liability to the PBGC, or any of its successors or assigns, (c)&nbsp;the
present value of all accrued benefits thereunder shall not at any time exceed
the value of the assets of such plan(s)&nbsp;allocable to such accrued
benefits, (d)&nbsp;there have not been and there shall not be any transactions
such as would cause the imposition of any tax or penalty under Section&nbsp;4975
of the Code or under Section&nbsp;502 of ERISA, which would adversely affect
the funded benefits attributable to the Borrower or the subject ERISA
Affiliate, (e)&nbsp;there has not been and there shall not be any termination
or partial termination thereof (other than a partial termination resulting
solely from a reduction in the number of employees of the Borrower or an ERISA
Affiliate of the Borrower, which reduction is not anticipated by the Borrower),
and there has not been and there shall not be any &#147;reportable event&#148; (as such
term is defined in Section&nbsp;4043(b)&nbsp;of ERISA) on or after the
effective date of Section&nbsp;4043(b)&nbsp;of ERISA with respect to any such
plan(s)&nbsp;subject to Title IV of ERISA, (f)&nbsp;no &#147;accumulated funding
deficiency&#148; (as defined in Section&nbsp;412 of the Code) has been or shall be
incurred on or after the effective date of Section&nbsp;412 of the Code, (g)&nbsp;such
plan(s)&nbsp;have been and shall be determined to be &#147;qualified&#148; within the meaning
of Section&nbsp;401(a)&nbsp;of the Code, and have been and shall be duly
administered in compliance with ERISA and the Code, and (h)&nbsp;the Borrower
is not aware of any fact, event, condition or cause which might adversely
affect the qualified status thereof.&#160; As
respects any &#147;multi-employer plan&#148; (as such term is defined in Section&nbsp;3(37)
of ERISA) to which the Borrower or any ERISA Affiliate thereof has heretofore
been, is now, or may hereafter be required to make contributions, the Borrower
or such ERISA Affiliate has made and shall make all required contributions
thereto, and there has not been and shall not be any &#147;complete withdrawal&#148; or &#147;partial
withdrawal&#148; (as such terms are respectively defined in Sections 4203 and 4205
of ERISA) therefrom on the part of the Borrower or such ERISA Affiliate.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.15.&#160; Intellectual Property</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower and the Subsidiaries own or have
the valid right to use all material patents, trademarks, copyrights, software,
computer programs, equipment designs, network designs, equipment
configurations, technology and other intellectual property used, marketed and
sold in the Business Operations, and the Borrower and the Subsidiaries are in
compliance in all material respects with all licenses, user agreements and
other such agreements regarding the use of intellectual property used in the
Business Operations; and the Borrower has no Knowledge that or received notice
claiming that any of such intellectual property infringes upon or violates the
rights of any other Person.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.16.&#160; Compliance with Laws</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower and the Subsidiaries are in
compliance with all occupational safety, health, wage and hour, employment
discrimination, environmental, flammability, labeling and other Applicable Law
(including, without limitation, healthcare laws and regulations, and healthcare
reimbursement laws and regulations) which are material to the Business
Operations, except where such non-compliance would not, individually or in the
aggregate, have a Material Adverse Effect.&#160;
To the Borrower&#146;s Knowledge, there are no state or facts, events,
conditions or occurrences which may now or hereafter constitute or result in a
violation of any Applicable Law, or which may give rise to the assertion of any
such violation, which could have a Material Adverse Effect.&#160; Neither the Borrower nor any Subsidiary has
received written notice of default or violation, nor is the Borrower or any
Subsidiary in default or violation, with respect to any judgment, order, writ,
injunction, decree, demand or</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">assessment
issued by any court or any federal, state, local, municipal or other
governmental agency, board, commission, bureau, instrumentality or department,
domestic or foreign, relating to any aspect of the Borrower&#146;s or any
Subsidiaries&#146; business, affairs, properties or assets, which default(s)&nbsp;or
violation(s)&nbsp;would, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.&#160;
Neither the Borrower nor any Subsidiary has received written notice of
or been charged with, or is, to the Borrower&#146;s Knowledge, under investigation
with respect to, any violation(s)&nbsp;of any provision of any Applicable Law,
which violation(s)&nbsp;would, individually or in the aggregate, have a
Material Adverse Effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.17.&#160; Licenses and Permits</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower and each Subsidiary has all
federal, state and local licenses and permits required to be maintained in
connection with the Business Operations, except where the failure to maintain
any such license or permit would not, individually or in the aggregate, have a
Material Adverse Effect; and all such licenses and permits are valid and in
full force and effect.&#160; The Borrower and
each Subsidiary has complied with the requirements of such licenses and permits
in all material respects, and has received no notice of any pending or
threatened proceedings for the suspension, termination, revocation or
limitation thereof. There is no circumstance or condition Known to the Borrower
that would cause or permit any of such licenses or permits to be voided,
revoked or withdrawn.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.18.&#160; Insurance</font></u><font size="2" style="font-size:10.0pt;">.&#160; <u>Schedule 3.18</u> of the Disclosure
Schedule lists all insurance coverages maintained by the Borrower and the
Subsidiaries, including the names of insurers, policy limits and
deductibles.&#160; Neither the Borrower nor
any Subsidiary has received written notice of cancellation or intent not to
renew any of such policies, and to the Borrower&#146;s Knowledge, there has not
occurred, and there does not exist, any condition (other than general
industry-wide conditions) such as would cause any of such insurers to cancel
any of such insurance coverages, or would be reasonably likely to materially
increase the premiums charged to the Company and the Subsidiaries for coverages
consistent with the scope and amounts of coverages as in effect on the date of
this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.19.&#160; Environmental Laws</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Borrower and each Subsidiary has complied with all
Environmental Laws relating to its business and properties, except where non-compliance
would not, individually or in the aggregate, have a Material Adverse Effect;
and to the Borrower&#146;s Knowledge, there exist no Hazardous Substances in amounts
in violation of applicable Environmental Laws on any of the Real Properties the
existence of which would have a Material Adverse Effect, except those that are
stored and used in compliance with Applicable Laws.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Borrower nor any Subsidiary has received
notice of any pending or threatened litigation or administrative proceeding
which in any instance (i)&nbsp;asserts or alleges any violation of applicable
Environmental Laws on the part of the Borrower or any Subsidiary, (ii)&nbsp;asserts
or alleges that the Borrower or any Subsidiary is required to clean up, remove
or otherwise take remedial or other response action due to the disposal,
depositing, discharge, leaking or other release of any Hazardous Substances or
materials, or (iii)&nbsp;asserts or alleges that the Borrower or any Subsidiary
is required to pay all or any portion of the costs of any past, present or
future cleanup, removal or remedial or other response action which arises out
of or is related to the disposal, depositing, discharge, leaking or other
release of any hazardous </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">substances
or materials by the Borrower or any Subsidiary.&#160;
To the Borrower&#146;s Knowledge, neither the Borrower nor any Subsidiary is
subject to any judgment, decree, order or citation related to or arising out of
any Environmental Laws.&#160; To the Borrower&#146;s
Knowledge, neither the Borrower nor any Subsidiary has been named or listed as
a potentially responsible party by any governmental body or agency in any
matter arising under any Environmental Laws.&#160;
Neither the Borrower nor any Subsidiary is a participant in, nor does
the Borrower have Knowledge of, any governmental investigation involving any of
the Real Properties.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Borrower or any Subsidiary nor, to the
Borrower&#146;s Knowledge, any other person, firm, corporation or governmental
entity has caused or permitted any Hazardous Substances or other materials to
be stored, deposited, treated, recycled or disposed of on or at any of the Real
Properties which materials, if known to be present, would reasonably be
expected to require or authorize cleanup, removal or other remedial action
under any applicable Environmental Laws.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; As used in this Section&nbsp;3.19 and in Section&nbsp;5.08
below, the following terms have the following meanings:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Environmental Laws</u>&#148;
include all federal, state, and local laws, rules, regulations, ordinances,
permits, orders, and consent decrees agreed to by the Borrower or any
Subsidiary, relating to health, safety, and environmental matters applicable to
the business and property of the Borrower or any Subsidiary.&#160; Such laws and regulations include but are not
limited to the Resource Conservation and Recovery Act (&#147;<u>RCRA</u>&#148;), 42
U.S.C. &#167;6901 et seq., as amended; the Comprehensive Environmental Response,
Compensation and Liability Act (&#147;<u>CERCLA</u>&#148;), 42 U.S.C. &#167;9601 et seq., as
amended; the Toxic Substances Control Act (&#147;<u>TSCA</u>&#148;), 15 U.S.C. &#167;2601 et
seq., as amended; and the Clean Water Act, 33 U.S.C. &#167;1331 et seq., as amended.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Hazardous Substances</u>&#148;,
&#147;<u>Release</u>&#148;, &#147;<u>Respond</u>&#148; and &#147;<u>Response</u>&#148; shall have the
meanings assigned to them in CERCLA, 42 U.S.C. &#167;9601, as amended.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Notice</u>&#148; means any
actual summons, citation, directive, information request, notice of potential
responsibility, notice of violation or deficiency, order, claim, complaint,
investigation, proceeding, judgment, letter, or other written communication
from the United States Environmental Protection Agency or other federal, state,
or local agency or authority, or any other entity or individual, public or
private, concerning any intentional or unintentional act or omission which involves
management of Hazardous Substances in amounts in violation of Environmental
Laws on or transported off any Real Properties; the imposition of any liens
asserted by government entities in connection with any Borrower&#146;s or Subsidiary&#146;s
response to the presence or Release of Hazardous Substances in amounts in
violation of Environmental Laws; and any alleged violation of or responsibility
under any Environmental Laws.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.20.&#160; Sensitive Payments</font></u><font size="2" style="font-size:10.0pt;">.&#160; Neither the Borrower nor any Subsidiary has (a)&nbsp;made
any contributions, payments or gifts to or for the private use of any
governmental official, employee or agent where either the payment or the
purpose of such contribution, payment or gift is illegal under the laws of the
United States or the jurisdiction in which made, (b)&nbsp;established or
maintained any unrecorded fund or asset for any purpose or made any false or
artificial entries on its books, (c)&nbsp;made any payments to any person with
the intention that any part of such payment</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">was
to be used for any purpose other than that described in the documents
supporting the payment, or (d)&nbsp;done business with or proposes to do
business with any country, or any Person in any country, which is prohibited or
restricted under any Applicable Law of the United States, or engaged in or
proposes to engage in any &#147;trading with the enemy&#148; or other transactions
violating any rules&nbsp;or regulations of the Office of Foreign Assets Control
or any similar laws, rules&nbsp;or regulations of any federal, state, local or
foreign government or governmental agency.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.21.&#160; Full Disclosure</font></u><font size="2" style="font-size:10.0pt;">.&#160; No statement of fact made by the Borrower in
this Agreement or any other Loan Document, in any SEC Report, or in any
information memorandum, business summary, agreement, certificate, schedule or
other written statement furnished by the Borrower to the Lender pursuant
hereto, contains or will contain any untrue statement of a material fact, or
omits or will omit to state any material fact necessary to make any statements
contained herein or therein not misleading, in any manner or instance in which
the correction of such statement would indicate, result in or reflect a
Material Adverse Effect relative to the represented facts.&#160; Except for matters of a general economic or
political nature which do not affect the Borrower or any Subsidiary uniquely,
there is no fact presently known to the Borrower or any Subsidiary which has
not been disclosed to the Lender, which has had or would reasonably be expected
to have a Material Adverse Effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.22.&#160; Reaffirmation</font></u><font size="2" style="font-size:10.0pt;">.&#160; Each and every request by the Borrower for
Advances shall constitute a reaffirmation of the truth and accuracy of the
Borrowers&#146; representations and warranties made in this Agreement and the
Security Documents on and as of the date of such request.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IV.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>CONDITIONS OF
MAKING THE LOANS</u></font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The obligation of the Lender to make the initial Loans
hereunder and to consummate the other transactions contemplated hereby are
subject to the following conditions precedent:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.01.&#160; Representations and Warranties</font></u><font size="2" style="font-size:10.0pt;">.&#160; The representations and warranties set forth
in Article&nbsp;III hereof and in the other Loan Documents shall be true and
correct on and as of the Closing Date.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.02.&#160; Loan Documents</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower and the Active Subsidiaries (as
applicable) shall have duly executed and/or delivered to the Lender all of the
following:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Notes;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Guaranty Agreement, the Collateral Agreement, the
Validity Guaranties (which shall also have been executed and delivered by John
B. Kaiser and James J. TerBeest, respectively) and any and all other Security
Documents required by the Lender at the Closing Date (including, without
limitation, any Landlord Waivers or consents required by the Lender);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Warrant;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>

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<div style="font-family:Times New Roman;">

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Registration Rights Agreement;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A certificate or certificates of insurance, with loss
payable endorsements, evidencing the insurance required by Section&nbsp;5.01(d)&nbsp;hereof;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A current Borrowing Base report in conformity with Section&nbsp;5.04(e)&nbsp;hereof,
and a written request for the borrowing of the Term Loans (and, if applicable,
the initial Advance);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A certificate of the Secretary or an Assistant Secretary
of the Borrower and each Active Subsidiary, certifying the votes of the Boards
of Directors or other applicable governing body of the Borrower and the Active
Subsidiaries, authorizing and directing the execution and delivery of the Loan
Documents to which they are a party and all further agreements, instruments,
certificates and other documents pursuant hereto and thereto;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A certificate of the Secretary or an Assistant Secretary
of the Borrower and each Active Subsidiary, certifying the names of the
officers of the Borrower and the Active Subsidiaries who are authorized to
execute and deliver the Loan Documents and all other agreements, instruments,
certificates and other documents to be delivered by the Borrower or such Active
Subsidiary pursuant hereto and thereto, together with the true signatures of
such officers.&#160; The Lender may conclusively
rely on such certificate until the Lender shall receive any further such
certificate canceling or amending the prior certificate and submitting the
signatures of the officers named in such further certificate;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Certified copies of the Organic Documents of the Borrower
and each Active Subsidiary, and a certificate of the Secretary of State or
other appropriate official of the jurisdiction of incorporation of the Borrower
and each Active Subsidiary (and, in the case of the Borrower, the State of Texas),
dated reasonably prior to the Closing Date, stating that the Borrower or the
subject Active Subsidiary is duly formed and in good standing in such
jurisdiction; and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Such other agreements, instruments, documents and
certificates (including, without limitation, satisfactory lien and judgment
searches respecting the Borrower and the Subsidiaries) as the Lender or its
counsel may reasonably request.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.03.&#160; Payoff and Release Letters</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower shall have received, and shall
have delivered to the Lender, a payoff and release letters signed by Textron
Financial Corporation (assignee of Systran Financial Services Corporation) and,
if available, Comerica Bank, respectively, in form and substance satisfactory
to the Lender, (a)&nbsp;confirming the amount required to be paid to each such
lender on the Closing Date in order to pay all of the Borrower&#146;s and its
Subsidiaries&#146; obligations to such lender, (b)&nbsp;affirming that, upon receipt
of such amount on the Closing Date, all liens, encumbrances and security
interests held by such lender shall be terminated and released, and all
collateral shall be released and retuned to the Borrower, and (c)&nbsp;authorizing
the filing, upon receipt of such amount on the Closing Date, of termination
statements in respect of all lien filings against the Borrower and/or the
Subsidiaries in respect of such liens, encumbrances and security interests of
such lender.&#160; The Borrower shall pay such</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">amounts
to such creditors on the Closing Date out of the proceeds of the Term Loans
and, if applicable, the initial Advance.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.04.&#160; Legal Opinion</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Lender shall have received the favorable
written opinions of Kane Russell Coleman&nbsp;&amp; Logan, P.C., Morrison&nbsp;&amp;
Foerster, and any local firm(s)&nbsp;as required, counsel for the Borrower and
the Active Subsidiaries, dated the Closing Date, reasonably satisfactory to the
Lender and its counsel in scope and substance.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.05.&#160; Interest, Fees and Reimbursements</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower shall have paid the Closing
Fees, and shall have paid or reimbursed the Lender for its reasonable
out-of-pocket costs, charges and expenses incurred to the Closing Date; and in
connection herewith, the Borrower hereby irrevocably authorizes the Lender to
charge such amounts as Advances to the Borrower&#146;s revolving credit loan
account.&#160; Failure of the Lender to effect
any such charge shall not excuse the Borrower from its obligation to pay such
amounts.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.06.&#160; Further Matters</font></u><font size="2" style="font-size:10.0pt;">.&#160; All legal matters, and the form and substance
of all documents, incident to the transactions contemplated hereby shall be
satisfactory to counsel for the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.07.&#160; No Default</font></u><font size="2" style="font-size:10.0pt;">.&#160; No Default or Event of Default shall have
occurred and be continuing.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The obligation of the Lender to make any Advances
subsequent to the Closing Date is subject to (a)&nbsp;the representations and
warranties set forth in Article&nbsp;III and in the other Loan Documents being
true and correct in all material respects (except that, to the extent that any
representation or warranty is already qualified by concepts of materiality
and/or Material Adverse Effect, then such representations and warranties shall
be true and correct in all respects while giving effect to the materiality
and/or Material Adverse Effect qualifiers therein) on and as of the subject
Borrowing Date, (b)&nbsp;the Lender&#146;s receipt of a current Borrowing Base
report in conformity with Section&nbsp;5.04(e)&nbsp;hereof, (c)&nbsp;the
execution and delivery of such further Security Documents as the Lender may have
reasonably requested pursuant to the Security Documents theretofore executed
and delivered, and (d)&nbsp;there being no continuing Default or Event of
Default.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">V.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>AFFIRMATIVE
COVENANTS</u></font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Borrower hereby
covenants and agrees that, from the date hereof and until all Obligations
(whether now existing or hereafter arising) have been paid in full and the
Revolving Credit Commitment has been terminated, unless the Lender shall
otherwise consent in writing, the Borrower shall, and shall cause each of its
Subsidiaries to:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.01.&#160; Corporate and Insurance</font></u><font size="2" style="font-size:10.0pt;">.&#160; Do or cause to be done all things necessary
to at all times (a)&nbsp;preserve, renew and keep in full force and effect its
corporate or other legal existence, rights, licenses, permits and franchises
(except that the Dissolving Subsidiaries shall continue diligently to pursue
and complete their dissolution), (b)&nbsp;comply with the Loan Documents and
any other agreements and instruments executed and delivered hereunder and
thereunder (to the extent a party thereto), (c)&nbsp;maintain, preserve and
protect all of its franchises</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and
material trade names, and preserve all of its material property used or useful
in the conduct of its business and keep the same in good repair, working order
and condition (reasonable wear and tear excepted), and from time to time make,
or cause to be made, all needed and proper repairs, renewals, replacements,
betterments and improvements thereto, so that the Business Operations carried
on in connection therewith may be properly and advantageously conducted at all
times, (d)&nbsp;maintain insurance in amounts, on such terms and against such
risks (including fire and other hazards insured against by extended coverage,
public liability insurance covering claims for personal injury, death or
property damage, and professional liability insurance) as are customary for
companies of similar size in the same or similar businesses and operating in
the same or similar locations, as well as all such other insurance as is
required by the Collateral Agreement, each of which policies (other than
workers compensation) shall be issued by a financially sound and reputable
insurer reasonably satisfactory to the Lender and shall name the Lender as loss
payee and additional insured as its interest appears and provide for the Lender
to receive written notice thereof at least thirty (30) days prior to any
cancellation of the subject policy, and (e)&nbsp;comply in all material
respects with all material Contracts and material obligations to which it is a
party or by which it is bound, all benefit plans which it maintains or is
required to contribute to, and all Applicable Law (including, without
limitation, Environmental Laws, healthcare laws and regulations and healthcare
reimbursement laws and regulations) material to its Business Operations, and
all requirements of its insurers, whether now in effect or hereafter enacted,
promulgated or issued.&#160; The Borrower will
provide to the Lender a certificate of the foregoing insurance, promptly upon
request.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.02.&#160; Payment of Taxes</font></u><font size="2" style="font-size:10.0pt;">.&#160; File, pay and discharge, or cause to be paid
and discharged, all material taxes, assessments and governmental charges or
levies imposed upon the Borrower and/or any Subsidiary or upon its income and profits
or upon any of its property (real, personal or mixed) or upon any part thereof,
before the same shall become in default, as well as all lawful claims for
labor, materials, supplies and otherwise, which, if unpaid when due, might
become a Lien or charge upon such property or any part thereof; <u>provided</u>,
<u>however</u>, that neither the Borrower nor any Subsidiary shall be required
to pay and discharge or cause to be paid and discharged any such tax,
assessment, charge, levy or claim so long as (a)&nbsp;the validity thereof
shall be contested in good faith by appropriate proceedings and the Borrower or
such Subsidiary shall have set aside on its books adequate reserves with
respect to any such tax, assessment, charge, levy or claim so contested, and (b)&nbsp;payment
with respect to any such tax, assessment, charge, levy or claim shall be made
before any of the Borrower&#146;s or such Subsidiary&#146;s property shall be seized or
sold in satisfaction thereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.03.&#160; Notices</font></u><font size="2" style="font-size:10.0pt;">.&#160; Give prompt written notice to the Lender of (a)&nbsp;the
filing by the Borrower of any SEC Reports, (b)&nbsp;any proceedings instituted
against the Borrower or any Subsidiary in any federal or state court or before
any commission or other regulatory body, whether federal, state or local,
which, if adversely determined, could reasonably be expected to have a Material
Adverse Effect, and (c)&nbsp;the occurrence of any material casualty to any
Collateral, any Material Adverse Effect, or any Default (if the Borrower knows
or reasonably should know of the existence thereof) or Event of Default, and
the action that the Borrower has taken, is taking, or proposes to take with
respect thereto.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.04.&#160; Periodic Reports</font></u><font size="2" style="font-size:10.0pt;">.&#160; Furnish to the Lender:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Within ninety (90) calendar days after the end of each
Fiscal Year, consolidated balance sheets, and consolidated and consolidating
statements of income, statements of stockholders&#146; equity, and statements of
cash flows of the Borrower and its Subsidiaries, together with footnotes and
supporting schedules thereto, certified (as to the consolidated statements) by
independent certified public accountants selected by the Borrower and
reasonably satisfactory to the Lender, showing the financial condition of the
Borrower and its Subsidiaries at the close of such Fiscal Year and the results
of operations of the Borrower and its Subsidiaries during such Fiscal Year;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Within thirty (30) calendar days after the end of each
calendar month (forty-five (45) calendar days in the case of the end of a
fiscal quarter), consolidated (and, if specifically requested by the Lender
reasonably in advance, but not more frequently than quarterly, consolidating)
unaudited balance sheets, statements of income and statements of cash flows of
the Borrower and its Subsidiaries, together with supporting schedules thereto,
prepared by the Borrower and certified by the Borrower&#146;s Chairman, President,
Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer,
such balance sheets to be as of the close of such calendar month and such
statements of income and statements of cash flows to be for the period from the
beginning of the then-current Fiscal Year to the end of such calendar month,
together with comparative statements of income and cash flows for the
corresponding period in the immediately preceding Fiscal Year, in each case
subject to normal audit and year-end adjustments;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Concurrently with the delivery of each of the financial
statements required by Sections 5.04(a)&nbsp;and 5.04(b)&nbsp;above, a
certificate on behalf of the Borrower (signed by the Chairman, President, Chief
Executive Officer, Chief Financial Officer or Chief Accounting Officer of the
Borrower), certifying that he has examined the provisions of this Agreement and
that no Default or Event of Default has occurred and/or is continuing;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Within fifteen (15) calendar days after the end of each
calendar month, an accounts receivable aging report and an accounts payable
aging report for the Borrower and the Subsidiaries (each on a consolidated and
consolidating basis);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On or prior to the fifteenth (15th) calendar day of each
calendar month, a detailed calculation of the Borrowing Base as of the close of
the immediately preceding calendar month (which shall include a roll-forward
from such month-end to as recent a day as practicable, reflecting sales and
collections (separately for billed Accounts and unbilled Accounts) since the
close-out of the preceding calendar month); and on or prior to the last
calendar day of each calendar month, a reasonably detailed calculation of the
Borrowing Base as of the fifteenth day of such calendar month (which shall
include a roll-forward to as recent a day as practicable, reflecting sales and
collections (separately for billed Accounts and unbilled Accounts) since the
fifteenth day of such calendar month); all such Borrowing Base reports to be in
form and substance, and with supporting documentation, reasonably satisfactory
to the Lender;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; As soon as approved by the Borrower&#146;s Board of Directors
(but in any event not later than after the beginning of each Fiscal Year), a
budget and operating plan (on a month-by-month basis) for such Fiscal Year, in
such detail as may reasonably be required by the Lender;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; As and when distributed to the Borrower&#146;s stockholders,
copies of all proxy materials, reports and other information which the Borrower
provides to its stockholders in their capacity as such; and as and when
distributed to any other holders of Indebtedness of the Borrower or the
Subsidiaries, copies of all reports, statements and other information provided
in writing to such lenders; and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Promptly, from time to time, such other information
regarding the Borrower&#146;s or any Subsidiary&#146;s operations, assets, business,
affairs and financial condition, as the Lender may reasonably request.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To
the extent that the financial statements required by Sections 5.04(a)&nbsp;and
5.04(b)&nbsp;are contained in any SEC Reports filed by the Borrower within the
required time period for the delivery of such financial statements, then the
Borrower shall be deemed to have complied with the subject financial statement
delivery by notifying the Lender of the filing of the subject SEC Report.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To
the extent that any report or other delivery required under this Section&nbsp;5.04
or elsewhere in this Agreement will, at the time of anticipated delivery to the
Lender, contain any material non-public information, the Borrower will notify
the Lender thereof as promptly as practicable prior to the delivery of such
report (but without disclosing the specific items of material non-public
information or the nature thereof), and if so requested by the Lender prior to
the required date of the information delivery hereunder, the Borrower shall (x)&nbsp;if
reasonably practicable, redact such material non-public information from the
subject report prior to the delivery thereof to the Lender, or (y)&nbsp;defer
delivery of such report until such time as the Borrower has made public
disclosure of the subject material information or the Lender has affirmatively
requested delivery of such report.&#160;
Absent timely request by the Lender as aforesaid, the Borrower shall
make the required delivery to the Lender on a timely basis.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.05.&#160; Books and Records; Inspection</font></u><font size="2" style="font-size:10.0pt;">.&#160; Maintain centralized books and records
regarding all of the Business Operations at the Borrower&#146;s principal place of
business, and permit agents or representatives of the Lender at reasonable
intervals to inspect, at any time during normal business hours, upon reasonable
notice, and without undue material disruption of the Business Operations, all
of the Borrower&#146;s and its Subsidiaries&#146; various facilities, books and records
(wherever located), to make copies, abstracts and/or reproductions thereof, and
to discuss the business and affairs of the Borrower and the Subsidiaries with
the management of the Borrower; and without limitation of the foregoing, the
Lender may engage an independent auditing firm to conduct an audit of the
Collateral and the Borrower&#146;s books and records on an annual basis.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.06.&#160; Accounting</font></u><font size="2" style="font-size:10.0pt;">.&#160; Maintain a standard system of accounting in
order to permit the preparation of financial statements in accordance with GAAP
and Regulation S-X promulgated under the Act.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.07.&#160; Reimbursements</font></u><font size="2" style="font-size:10.0pt;">.&#160; Pay or reimburse the Lender or other
appropriate Persons on demand for all reasonable costs, expenses and other
charges incurred or payable from time to time in connection with the
transactions contemplated by this Agreement, any routine SEC filings required
to report the Lender&#146;s and its Affiliates&#146; beneficial ownership of Common
Stock, any waivers or amendments in respect of any Loan Documents, any &#147;workout&#148;
or</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">enforcement
action, and any bankruptcy or insolvency proceedings relating to the Borrower
or any Subsidiary, including but not limited to any and all search fees,
recording fees, costs of inspections and legal and accounting fees; <u>provided</u>
that, except for any such audit conducted during the continuance of an Event of
Default, the Borrower shall not be obligated to pay or reimburse the Lender for
the cost of more than one audit performed by an independent auditing firm (as
contemplated by Section&nbsp;5.05 above) in any twelve (12) month period.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.08.&#160; Environmental Response</font></u><font size="2" style="font-size:10.0pt;">.&#160; In the event of any material discharge,
spill, injection, escape, emission, disposal, leak or other Release of
Hazardous Substances in amounts in violation of applicable Environmental Laws
by the Borrower or any Subsidiary on any Real Property owned or leased by the
Borrower or any Subsidiary, which is not authorized by a permit or other
approval issued by the appropriate governmental agencies and which requires
notification to or the filing of any report with any federal or state
governmental agency, the Borrower shall promptly: (a)&nbsp;notify the Lender;
and (b)&nbsp;comply with the notice requirements of the Environmental
Protection Agency and applicable state agencies, and take all steps necessary
to promptly clean up such discharge, spill, injection, escape, emission,
disposal, leak or other Release in accordance with all applicable Environmental
Laws and the Federal National Contingency Plan, and, if required by Applicable
Law, receive a certification from all applicable state agencies or the
Environmental Protection Agency, that such Real Property has been cleaned up to
the satisfaction of such agency(ies).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.09.&#160; Management</font></u><font size="2" style="font-size:10.0pt;">.&#160; Cause James B Kaiser to continue to be
employed or to function as the chief executive officer of the Borrower, and
James J. TerBeest to be employed or to function as the chief financial officer
of the Borrower, unless a successor is appointed within sixty (60) days after
the termination of such individual&#146;s employment, and such successor is
reasonably satisfactory to the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.10.&#160; Use of Proceeds</font></u><font size="2" style="font-size:10.0pt;">.&#160; Cause all proceeds of the Loans to be
utilized solely in the manner and for the purposes set forth in Section&nbsp;2.04
hereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.11.&#160; Future Subsidiaries</font></u><font size="2" style="font-size:10.0pt;">.&#160; At any time and from time to time when the
Borrower or any of its Subsidiaries proposes to form or acquire any Subsidiary
subsequent to the Closing Date, or in the event that and at such time as any of
the Dissolving Subsidiaries shall have or hold any material assets or shall
engage in active business operations, the Borrower shall give written notice
thereof to the Lender reasonably in advance of the formation or acquisition of
such Subsidiary or such change of status of a Dissolving Subsidiary, providing
information therefor of the type called for in <u>Schedule 3.02</u> of the
Disclosure Schedule; and contemporaneously with the formation or acquisition of
such new Subsidiary or such change of status of a Dissolving Subsidiary, the
Borrower shall cause such new Subsidiary or affected Dissolving Subsidiary to
execute and deliver (a)&nbsp;a guaranty agreement in substantially the form of
the Guaranty Agreement (or a joinder agreement with respect to the existing
Guaranty Agreement in form and substance reasonably satisfactory to the
Lender), and (b)&nbsp;a Collateral Agreement (with completed perfection
certificate and other appropriate Security Documents) in substantially the form
of the Collateral Agreement as currently in place (or a joinder agreement with
respect to the existing Collateral Agreement in form and substance reasonably
satisfactory to the Lender) and other Security Documents as reasonably
requested by the Lender.&#160; Nothing
contained in this Section</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.11
shall be deemed to constitute any waiver by the Lender of any consent otherwise
required under this Agreement or any other Loan Document with respect to the
formation or acquisition of any Subsidiary or any change in status of a
Dissolving Subsidiary.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.12.&#160; Landlord Waivers</font></u><font size="2" style="font-size:10.0pt;">.&#160; To the extent reasonably requested by the
Lender from time to time subsequent to the Closing Date, use commercially
reasonable efforts to obtain, within thirty (30) days after the Lender&#146;s
request therefor, in form and substance reasonably satisfactory to the Lender,
any and all bailee waivers, warehousemen&#146;s waivers, Landlord Waivers and/or
access agreements requested by the Lender in respect of locations where there
is stored or held any material books or records, or any other Collateral having
an aggregate fair market value in excess of $25,000 (including, without
limitation, existing offices in Dallas, Texas,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.13.&#160; Deposit Accounts</font></u><font size="2" style="font-size:10.0pt;">.&#160; Notify the Lender upon opening any new bank
account or securities account, and cause the subject bank or securities
intermediary promptly to execute and deliver to the Lender a Control Agreement
in respect of such bank account or securities account; and this Section&nbsp;5.13
shall also be applicable to any and all bank accounts for which Control
Agreements have not been entered into on the Closing Date if (a)&nbsp;the funds
in such bank account exceed $10,000, or (ii)&nbsp;the funds held in the Bank
Accounts for which Control Agreements are not in place exceed $25,000 in the
aggregate; and to the extent that a required Control Agreement is not entered
into within thirty (30) days after the Closing Date, then the subject bank
account(s)&nbsp;shall be promptly closed and the funds held therein shall be
transferred to one or more accounts at another banking institution which has
executed and delivered a Control Agreement in respect of such account(s)&nbsp;in
form and substance satisfactory to the Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">VI.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>NEGATIVE COVENANTS</u></font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Borrower hereby
covenants and agrees that, until all Obligations (whether now existing or
hereafter arising) have been paid in full and the Revolving Credit Commitment
has been terminated, unless the Lender shall otherwise consent in writing, the
Borrower shall not, and shall not permit any Subsidiary to, directly or
indirectly:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.01.&#160; Indebtedness</font></u><font size="2" style="font-size:10.0pt;">.&#160; Incur, create, assume, become or be liable in
any manner with respect to, or permit to exist, any Indebtedness, <u>other</u>  <u>than</u>:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Indebtedness
to the Lender pursuant to the Loan Documents;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; liabilities with respect to trade obligations, accounts
payable, or other similar payments, operating leases and other normal accruals
incurred in the ordinary course of business, or with respect to which the
Borrower or the subject Subsidiary is contesting in good faith the amount or
validity thereof by appropriate proceedings, and then only to the extent that
the Borrower or the subject Subsidiary has set aside on its books adequate
reserves therefor;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Indebtedness existing on the date of this Agreement owed
to those Persons, in those amounts and having those maturities as set forth in <u>Schedule
6.01</u> of the Disclosure Schedule;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Capitalized Leases reflected in the Financial Statements,
and Capitalized Leases hereafter entered into by the Borrower or its
Subsidiaries in the ordinary course of the Business Operations;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; purchase money Indebtedness incurred in connection with
the Borrower&#146;s or its Subsidiaries&#146; acquisition of capital assets in the
ordinary course of the Business Operations;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subordinated Debt in such amounts and upon such terms and
conditions as shall be acceptable to the Lender in its sole and absolute
discretion;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; intercompany Indebtedness between the Borrower and any
Wholly-Owned Subsidiary or between Wholly-Owned Subsidiaries; and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Guarantees
to the extent permitted pursuant to Section&nbsp;6.03 below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.02.&#160; Liens</font></u><font size="2" style="font-size:10.0pt;">.&#160; Create, incur, assume or suffer to exist any
Lien or other encumbrance of any nature whatsoever on any of its assets, now or
hereafter owned, other than:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; subject to Section&nbsp;5.02 above, Liens securing the
payment of taxes which are either not yet due or the validity of which is being
contested in good faith by appropriate proceedings, and as to which the
Borrower or the subject Subsidiary shall have set aside on its books adequate
reserves;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; deposits under workers&#146; compensation, unemployment
insurance and social security laws, or to secure the performance of bids,
tenders, contracts (other than for the repayment of money borrowed) or leases,
or to secure statutory obligations or surety or appeal bonds, or to secure
indemnity, performance or other similar bonds in the ordinary course of
business;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; statutory Liens of landlords and Liens imposed by law,
such as, carriers&#146;, warehousemen&#146;s, materialmen&#146;s or mechanics&#146; liens, incurred
by the Borrower or any Subsidiary in good faith in the ordinary course of
business and discharged promptly after same are incurred; fully bonded Liens
arising out of a judgment or award against the Borrower or any Subsidiary with
respect to which the Borrower or such Subsidiary shall currently be prosecuting
an appeal, a stay of execution pending such appeal having been secured; and
Liens arising out of a judgment or award against the Borrower or any Subsidiary
which are fully covered by insurance (subject to applicable deductibles) and
for which the relevant insurer has not denied or disclaimed coverage;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; other Liens incurred in connection with Indebtedness
expressly permitted pursuant to Section&nbsp;6.01(d)&nbsp;and/or Section&nbsp;6.01(e)&nbsp;above,
provided that such Liens do not extend to any assets or property other than the
specific assets or properties acquired pursuant to such permitted Indebtedness;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; encumbrances consisting of easements, rights-of-way,
survey exceptions and other similar restrictions on the use of Real Property,
or minor irregularities in title thereto which do not materially impair the use
of such property in the operation of the business of the Borrower and its
Subsidiaries (provided that the placement by the owner of any leased Real</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Property
of a mortgage or deed of trust on the subject land and/or building shall not be
deemed a Lien on the leasehold interest of the Borrower or the subject
Subsidiary);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Liens in existence on the date of this Agreement, as set
forth on <u>Schedule 6.02</u> of the Disclosure Schedule;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Liens arising out of judgments or awards (i)&nbsp;which
are fully covered by insurance (subject to applicable deductibles) and for
which the relevant insurer has not denied or disclaimed coverage, or (ii)&nbsp;with
respect to which the Borrower or the subject Subsidiary shall be prosecuting an
appeal in good faith and in respect of which a stay of execution shall have
been issued;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Liens
in favor of the Lender; and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; extensions, renewals or replacements of any Lien referred
to in clauses (a)&nbsp;through (g)&nbsp;above, provided that same shall not
effect any increase in any principal amount secured thereby.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.03.&#160; Guarantees</font></u><font size="2" style="font-size:10.0pt;">.&#160; Guarantee, endorse or otherwise in any manner
become or be responsible for obligations of any other Person, except (a)&nbsp;endorsements
of negotiable instruments for collection in the ordinary course of business,
and (b)&nbsp;guarantees by the Borrower of obligations of Wholly-Owned
Subsidiaries (other than Dissolving Subsidiaries) in the ordinary course of
business.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.04.&#160; Sales of Assets and Management</font></u><font size="2" style="font-size:10.0pt;">.&#160; (a)&nbsp;Sell, lease, transfer, encumber or
otherwise dispose of any of the Borrower&#146;s or any Subsidiary&#146;s properties,
assets, rights, licenses or franchises (including, without limitation, equity
interests in Subsidiaries) other than (i)&nbsp;sales of inventory in the
ordinary course of business, (ii)&nbsp;licenses, joint ventures and related
transactions entered into, modified or terminated in the ordinary course of
business, or (iii)&nbsp;the disposition of surplus or obsolete personal
properties in the ordinary course of business, or (b)&nbsp;permit any Affiliate
of the Borrower (other than a Domestic Subsidiary which is a party to the
Collateral Agreement) to own or obtain any patent, patent application,
copyright, copyright application, trademark, trademark application, license, or
other intangible asset relating to the Business Operations except in the normal
course of business on terms and conditions no less favorable to the Borrower or
any Subsidiary than those which could be obtained in an arms&#146; length
transaction with an unaffiliated third party.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.05.&#160; Sale-Leaseback</font></u><font size="2" style="font-size:10.0pt;">.&#160; Enter into any arrangement with any Person
whereby the Borrower or any Subsidiary shall sell or transfer any property
(real, personal or mixed) used or useful in the Business Operations, whether
now owned or hereafter acquired, and thereafter rent or lease such property.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.06.&#160; Investments; Acquisitions</font></u><font size="2" style="font-size:10.0pt;">.&#160; Make any Investment in, or otherwise acquire
or hold securities (including, without limitation, capital stock and evidences
of Indebtedness) of, or make loans or advances to, or enter into any arrangement
for the purpose of providing funds or credit to, any other Person (including
any Affiliate), <u>except</u>:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Investments in Wholly-Owned Subsidiaries which have
complied with the requirements of Section&nbsp;5.11 hereof;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; advances (to the extent permitted by Applicable Law,
including federal securities laws) to employees of the Borrower or any
Wholly-Owned Subsidiaries (other than Dissolving Subsidiaries) for normal
business expenses not to exceed at any time $25,000 in the aggregate;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Investments of excess cash generated in the Business
Operations in Cash Equivalents; and</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Investments of cash in overnight deposits or other
customary cash management Investments with commercial banks or in commercial
paper satisfying the criteria for such banks or commercial paper as set forth
in the definition of Cash Equivalents.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.07.&#160; Real Property; Corporate Form; Acquisitions</font></u><font size="2" style="font-size:10.0pt;">.&#160; Acquire or hold any fee interest in any Real
Property; or dissolve or liquidate, or consolidate or merge with or into, sell
all or substantially all of the assets of the Borrower or any Subsidiary to, or
acquire all or substantially all of the securities, assets or properties of,
any other Person, except for (a)&nbsp;consolidations of a Subsidiary with a
Wholly-Owned Subsidiary (other than a Dissolving Subsidiary); (b)&nbsp;mergers
of a Wholly-Owned Subsidiary into the Borrower or into a Wholly-Owned
Subsidiary (other than a Dissolving Subsidiary); (c)&nbsp;sales to the Borrower
or another Subsidiary&#160; for fair value; or
(d)&nbsp;the dissolution of the Dissolving Subsidiaries.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.08.&#160; Dividends and Redemptions</font></u><font size="2" style="font-size:10.0pt;">.&#160; Declare or pay any dividends, or make any
distribution of cash or property, or both, to any Person in respect of any of
the shares of the capital stock or other equity securities of the Borrower or
any other Person, or directly or indirectly redeem, purchase or otherwise
acquire for consideration any securities or shares of the capital stock or
other equity securities of the Borrower or any other Person; <u>provided</u>,
that this Section&nbsp;6.08 shall not be deemed to prohibit the payment of
dividends or distributions by any Subsidiary to the Borrower or to any other
direct or indirect Wholly-Owned Subsidiary.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.09.&#160; Compensation</font></u><font size="2" style="font-size:10.0pt;">.&#160; Pay any compensation of any types or in any
amounts to any executive officers of the Borrower except (a)&nbsp;in accordance
with the employment agreements between the Borrower and such executive officers
as in effect on the Closing Date, (b)&nbsp;in accordance with the compensation
levels disclosed in <u>Schedule 6.09</u> of the Disclosure Schedule, or (c)&nbsp;as
otherwise approved by the independent Compensation Committee of the Board of
Directors of the Borrower but in no case in any amount or amounts which would
cause or reasonably be expected to cause a Material Adverse Effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.10.&#160; Change of Business</font></u><font size="2" style="font-size:10.0pt;">.&#160; (a)&nbsp;Engage in a business materially
different from the general nature of the Business Operations (i)&nbsp;as now
being conducted, or (ii)&nbsp;as the same may hereafter be reasonably expanded
from time to time in like areas of business; (b)&nbsp;cause or permit any of
the Dissolving Subsidiaries to own or hold any material assets or engage in any
active business operations; (c)&nbsp;wind up the Business Operations or cease
substantially all of its normal Business </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operations
for a period in excess of ten (10)&nbsp;consecutive days; or (d)&nbsp;suffer
any material disruption, interruption or discontinuance of a material portion
of its normal Business Operations for a period in excess of ten (10)&nbsp;consecutive
days; <u>provided</u>, <u>however</u>, that the dissolution of the Dissolving
Subsidiaries shall not constitute a violation of this Section&nbsp;6.10.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.11.&#160; Receivables</font></u><font size="2" style="font-size:10.0pt;">.&#160; Sell or assign in any way any accounts
receivable, promissory notes or trade acceptances held by the Borrower or any
Subsidiary with or without recourse, except for (a)&nbsp;collections (including
endorsements) in the ordinary course of business, and (b)&nbsp;transfers to or
among the Borrower and Domestic Subsidiaries which are party to the Guaranty
Agreement and the Collateral Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.12.&#160; Certain Amendments</font></u><font size="2" style="font-size:10.0pt;">.&#160; Agree, consent, permit or otherwise undertake
to amend any of the terms or provisions of the Borrower&#146;s or any Subsidiary&#146;s
Organic Documents in a manner which may impair in any respect any of the Lender&#146;s
rights under any of the Loan Documents.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.13.&#160; Affiliate Transactions</font></u><font size="2" style="font-size:10.0pt;">.&#160; Enter into any Contract, agreement or
transaction with any Affiliate of the Borrower except (a)&nbsp;as disclosed in <u>Schedule
6.13</u> of the Disclosure Schedule, (b)&nbsp;for intercompany Indebtedness
between the Borrower and any Wholly-Owned Subsidiary (other than a Dissolving
Subsidiary) or between any Wholly-Owned Subsidiaries (other than Dissolving
Subsidiaries), or (c)&nbsp;in the normal course of business on terms and
conditions no less favorable to the Borrower or any Subsidiary than those which
could be obtained in an arms&#146; length transaction with an unaffiliated third
party.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.14.&#160; Fiscal Year</font></u><font size="2" style="font-size:10.0pt;">.&#160; Amend its Fiscal Year.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.15.&#160; Subordinated Debt</font></u><font size="2" style="font-size:10.0pt;">.&#160; Prepay, redeem or purchase any Subordinated
Debt.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.16.&#160; Capital Expenditures</font></u><font size="2" style="font-size:10.0pt;">.&#160; Make aggregate Capital Expenditures (whether
through cash purchase, principal payments under Capitalized Leases, or
otherwise), in the aggregate for the Borrower and all Subsidiaries, in excess
of $250,000 in any Fiscal Year.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.17.&#160; Coverage Test</font></u><font size="2" style="font-size:10.0pt;">.&#160; Permit the ratio of EBITDA to Fixed Charges
to be less than (a)&nbsp;0.85 to 1.00 for the six (6)&nbsp;months ending June&nbsp;30,
2008, (b)&nbsp;1.00 to 1.00 for the nine (9)&nbsp;months ending September&nbsp;30,
2008, (c)&nbsp;1.10 to 1.00 for the four (4)&nbsp;consecutive fiscal quarters
ending December&nbsp;31, 2008, and (d)&nbsp;1.25 to 1.00 for the four (4)&nbsp;consecutive
fiscal quarters ending as of the end of any quarter of any Fiscal Year
thereafter.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">VII.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>DEFAULTS</u></font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.01.&#160; Events of Default</font></u><font size="2" style="font-size:10.0pt;">.&#160; Each of the following events is herein, and
in the Notes, sometimes referred to as an Event of Default:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if any representation or warranty made herein or in any
other Loan Document, or in any certificate, financial statement, Borrowing Base
report, instrument or other written statement furnished by the Borrower or any
Subsidiary in connection with this Agreement or any of the borrowings
hereunder, shall be false, inaccurate or misleading in any material respect
when made or when deemed made hereunder if the correction of such
representation or warranty would indicate, result in or reflect a Material
Adverse Effect relative </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to
the representation or warranty as made; or if the Borrower or any Subsidiaries
repeatedly make false, inaccurate or misleading representations or warranties
in connection with this Agreement or any of the borrowings hereunder,
regardless of whether any such Material Adverse Effect is presented thereby;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any default in the payment of any principal or interest
under any of the Notes or any other Obligations when the same shall be due and
payable, whether at the due date thereof or at a date required for prepayment
or by acceleration or otherwise, and the continuance of any such non-payment
(in whole or in part) for a period of three (3)&nbsp;Business Days (provided
that such grace period shall not apply with respect to Section&nbsp;2.01(d)&nbsp;above,
as to which the grace period is as specified in Section&nbsp;2.01(d));</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any default in the due observance or performance of any
covenant, condition or agreement contained in any Section&nbsp;of Article&nbsp;VI
hereof, which, if capable of being cured, is not fully cured within thirty (30)
days after the occurrence thereof; <u>provided</u>, <u>however</u>, that if
such Default is capable of cure but is not capable of being cured with
reasonable diligence within such thirty (30) day period, then such cure period
shall be extended for up to an additional thirty (30) days provided that (i)&nbsp;the
Borrower or the subject Subsidiary commenced such cure promptly within the
original thirty (30) day cure period and thereafter continuously continues to
effect such cure with reasonable diligence (and in any event completes such
cure within the extended cure period provided herein), and (ii)&nbsp;no
Material Adverse Effect exists or arises in respect of such Default;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any default in the due observance or performance of any
covenant, condition or agreement to be observed or performed under Article&nbsp;V
hereof, or otherwise pursuant to the terms hereof or any other Loan Document
and not addressed in Sections 7.01(a), (b)&nbsp;or (c), and the continuance of
such default unremedied for a period of thirty (30) days (five (5)&nbsp;Business
Days in the case of Section&nbsp;5.01(d)&nbsp;hereof) after written notice
thereof to the Borrower, or such other cure period as may be provided in the
applicable Loan Document; <u>provided</u>, <u>however</u>, that if such Default
(other than in the case of Section&nbsp;5.01(d)&nbsp;above) is capable of cure
but is not capable of being cured with reasonable diligence within such thirty
(30) day period, then such cure period shall be extended for up to an
additional thirty (30) days provided that (i)&nbsp;the Borrower or the subject
Subsidiary commenced such cure promptly within the original thirty (30) day
cure period and thereafter continuously continues to effect such cure with
reasonable diligence (and in any event completes such cure within the extended
cure period provided herein), and (ii)&nbsp;no Material Adverse Effect exists
or arises in respect of such Default;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any default with respect to any Indebtedness for money borrowed
of the Borrower or any of the Subsidiaries (other than to the Lender) in an
amount in excess of $75,000, if the effect of such default is to permit the
holder, with or without notice or lapse of time or both, to accelerate the
maturity of any such Indebtedness for money borrowed or to cause such
Indebtedness for money borrowed to become due prior to the stated maturity
thereof;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if the Borrower or any Subsidiary shall: (i)&nbsp;apply
for or consent to the appointment of a receiver, trustee, custodian or
liquidator of it or any of its properties, (ii)&nbsp;admit in writing its
inability to pay its debts as they mature, (iii)&nbsp;make a general assignment
for the benefit of creditors, (iv)&nbsp;be adjudicated a bankrupt or insolvent
or be the subject of an order for </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">relief
under Title 11 of the United States Code, or (v)&nbsp;file a voluntary petition
in bankruptcy, or a petition or an answer seeking reorganization or an
arrangement with creditors or to take advantage or any bankruptcy,
reorganization, insolvency, readjustment of debt, dissolution or liquidation
law or statute, or an answer admitting the material allegations of a petition
filed against him or it in any proceeding under any such law, or (vi)&nbsp;take
or permit to be taken any action in furtherance of or for the purpose of
effecting any of the foregoing;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if any order, judgment or decree shall be entered, without
the application, approval or consent of the Borrower or any Subsidiary, by any
court of competent jurisdiction, approving a petition seeking reorganization of
the Borrower or any Subsidiary, or appointing a receiver, trustee, custodian or
liquidator of the Borrower or any Subsidiary, or of all or any substantial part
of its assets, and such order, judgment or decree shall continue unstayed and
in effect for any period of ninety (90) days;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if final judgment(s)&nbsp;for the payment of money in an
uninsured amount in excess of $75,000 individually or in the aggregate shall be
rendered against the Borrower and/or any Subsidiary, and the same shall remain
undischarged or unbonded for a period of thirty (30) consecutive days, during
which execution shall not be effectively stayed;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the occurrence of any levy upon or seizure or attachment
of, or any uninsured loss of or damage to, any property of the Borrower or any
Subsidiary having an aggregate fair value or repair cost (as the case may be)
in excess of $75,000 individually or in the aggregate, and any such levy,
seizure or attachment shall not be set aside, bonded or discharged within
thirty (30) days after the date thereof;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if any Lien purported to be created by any Security
Document shall cease to be a valid perfected first priority Lien (subject only
to any priority accorded by law to Permitted Liens) on the assets or properties
covered thereby (provided that if such condition is due to a change in
Applicable Law or any rectifiable event or occurrence which terminates the
ability to place a Lien on the subject asset, an Event of Default shall not be
deemed to exist by reason thereof unless the Borrower or the subject Subsidiary
fails, within ten (10)&nbsp;days after written notice from the Lender, to take
other lawful action which shall provide to the Lender substantially the same
benefit as the lost Lien), or the Borrower or any Subsidiary shall assert in
writing that any Lien purported to be created by any Security Document is not a
valid perfected first priority lien (subject only to any priority accorded by
law to Permitted Liens) on the assets or properties purported to be covered
thereby;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if (i)&nbsp;any of the Loan Documents shall cease to be in
full force and effect (other than as a result of the discharge thereof in
accordance with the terms thereof or by written agreement of all parties thereto),
<u>provided</u> that if such condition is due to a change in Applicable Law, an
Event of Default shall not be deemed to exist by reason thereof unless the
Borrower or the subject Subsidiary fails, within ten (10)&nbsp;days after
written notice from the Lender, to take other lawful action which shall provide
to the Lender substantially the same rights and benefits as were provided to
the Lender immediately prior to such change in Applicable Law, or (ii)&nbsp;the
Borrower or any Subsidiary shall disclaim or deny the validity of any Loan
Document or its obligations thereunder;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if the Common Stock (or the common stock of any surviving
entity described in the <u>proviso</u> to the definition of &#147;Sale&#148; above) shall
not be listed or traded on any national securities exchange, or shall cease to
be actively quoted on the OTC Bulletin Board, for any period in excess of
thirty (30) consecutive days; or</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if the Borrower or any Subsidiary shall be indicted for or
convicted of any felony or crime of moral turpitude.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.02.&#160; Remedies</font></u><font size="2" style="font-size:10.0pt;">.&#160; Upon the occurrence of any Event of Default,
and at all times thereafter during the continuance thereof: (a)&nbsp;the Notes,
and any and all other Obligations, shall, at the Lender&#146;s option (except in the
case of Sections 7.01(f)&nbsp;and 7.01(g)&nbsp;hereof, the occurrence of which
shall automatically effect acceleration, regardless of any action or
forbearance in respect of any prior or ongoing Default or Event of Default
which may be inconsistent with such automatic acceleration), become immediately
due and payable, both as to principal, interest and other charges, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the Notes or other evidence
of such Obligations to the contrary notwithstanding, (b)&nbsp;all outstanding
Obligations under the Notes, and all other outstanding Obligations, shall bear
interest at the default rate of interest provided in the Notes, (c)&nbsp;the
Lender may file suit against the Borrower on the Notes and against the Borrower
and the Subsidiaries under the other Loan Documents and/or seek specific
performance or injunctive relief thereunder (whether or not a remedy exists at
law or is adequate), (d)&nbsp;the Lender shall have the right, in accordance
with the Security Documents, to exercise any and all remedies in respect of
such or all of the Collateral as the Lender may determine in its discretion
(without any requirement of marshalling of assets, or other such requirement),
and (e)&nbsp;the Revolving Credit Commitment shall, at the Lender&#146;s option
(except in the case of Sections 7.01(f)&nbsp;and 7/01(g)&nbsp;hereof, the
occurrence of which shall automatically effect termination, regardless of any
action or forbearance in respect of any prior or ongoing Default or Event of
Default which may be inconsistent with such automatic termination), be
immediately terminated or reduced, and the Lender shall be under no further
obligation to consider making any further Advances.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">VIII.&#160;&#160;&#160;&#160;&#160; <u>PARTICIPATING LENDERS; ASSIGNMENT</u>.</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8.01.&#160; Participations</font></u><font size="2" style="font-size:10.0pt;">.&#160; Anything in this Agreement to the contrary
notwithstanding, the Lender may, at any time and from time to time, without in
any manner affecting or impairing the validity of any Obligations, transfer,
assign or grant participating interests in the Loans as the Lender shall in its
sole discretion determine, to such other Persons (the &#147;<u>Participants</u>&#148;) as
the Lender may determine.&#160; Upon any such
transfer, assignment or granting of participating interests, the Participants
shall be deemed to be included within the term &#147;Lender&#148; for all purposes of
this Agreement, subject to such agreements and arrangements as the Lender and
the Participants may agree upon. Notwithstanding the granting of any such
participating interests: (a)&nbsp;the Borrower shall look solely to the Lender
for all purposes of this Agreement and the transactions contemplated hereby, (b)&nbsp;the
Borrower shall at all times have the right to rely upon any waivers or consents
signed by the Lender as being binding upon all of the Participants, and (c)&nbsp;all
communications in respect of this Agreement and such transactions shall remain
solely between the Borrower and the Lender (exclusive of Participants)
hereunder.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 3.25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 3.25in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8.02.&#160; Transfer</font></u><font size="2" style="font-size:10.0pt;">.&#160; Anything in this Agreement to the contrary
notwithstanding, the Lender may, at any time and from time to time, without in
any manner affecting or impairing the validity of any Obligations, transfer and
assign all or any portion of its interest in this Agreement, the Notes and the
other Loan Documents to any Person (an &#147;<u>Assignee Lender</u>&#148;) as the Lender
may determine.&#160; Upon any such transfer or
assignment, the Assignee Lender shall be deemed to succeed (to the extent of
the interest assigned) to the rights and obligations of the Lender for all
purposes of this Agreement.&#160; In the event
of any transfer and assignment of the Lender&#146;s entire interest in this
Agreement, the Notes and the Security Documents, the Lender shall be replaced
by the Assignee Lender as &#147;Secured Party&#148; under the Collateral Agreement and
all other Security Documents.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8.03.&#160; Recordation of Assignment</font></u><font size="2" style="font-size:10.0pt;">.&#160; In respect of any negotiation, transfer or
assignment of all or any portion of any Lender&#146;s interest in this Agreement,
any Note and/or any other Loan Documents at any time and from time to time, the
following provisions shall be applicable:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Borrower, or any agent appointed by the Borrower,
shall maintain a register (the &#147;<u>Register</u>&#148;) in which there shall be
recorded the name and address of each Person holding any Note(s)&nbsp;hereunder
or any commitment to lend hereunder, and the principal amount payable to such
Person under such Person&#146;s Note(s)&nbsp;or committed by such Person under such
Person&#146;s lending commitment.&#160; The
Borrower hereby irrevocably appoints the Lender (and/or any subsequent Lender
appointed by the Lender then maintaining the Register) as the Borrower&#146;s agent
for the purpose of maintaining the Register.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In connection with any negotiation, transfer or assignment
as aforesaid, the transferor/assignor shall deliver to the Lender then
maintaining the Register an assignment and assumption agreement executed by the
transferor/assignor and the transferee/assignee, setting forth the specifics of
the subject transaction, including but not limited to the amount and nature of
Obligations and/or lending commitments being transferred or assigned (and being
assumed, as applicable), and the proposed effective date of such transfer or
assignment and the related assumption (if applicable).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject to receipt of completed tax forms (indicating
withholding status, or exemption from withholding, as applicable, of the
transferee/assignee) reasonably required by the Person then maintaining the
Register, and (if required by such Person) surrender of the negotiated,
transferred or assigned Note(s)&nbsp;for reissuance by the Borrower, such
Person shall record the subject transfer, assignment and assumption in the
Register.&#160; Anything contained in any Note
or other Loan Document to the contrary notwithstanding, no negotiation,
transfer or assignment shall be effective until it is recorded in the Register
pursuant to this Section&nbsp;8.03(c).&#160;
The entries in the Register shall be conclusive and binding for all
purposes, absent manifest error; and the Borrower and each Lender shall treat
each Person whose name is recorded in the Register as a Lender hereunder for
all purposes of this Agreement.&#160; The
Register shall be available for inspection by the Borrower and each Lender at
any reasonable time and from time to time upon reasonable prior notice.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IX.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>MISCELLANEOUS</u></font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.01.&#160; Survival</font></u><font size="2" style="font-size:10.0pt;">.&#160; This Agreement and all covenants, agreements,
representations and warranties made herein and in the certificates delivered
pursuant hereto, shall survive the making by the Lender of the Loans and the
execution and delivery to the Lender of the Notes, and shall continue in full
force and effect for so long as the Notes or any other Obligations are
outstanding and unpaid or the Revolving Credit Commitment remains
outstanding.&#160; Whenever in this Agreement
any of the parties hereto is referred to, such reference shall be deemed to
include the successors and permitted assigns of such party; and all covenants,
promises and agreements in this Agreement contained, by or on behalf of the
Borrower shall inure to the benefit of the successors and assigns of the
Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.02.&#160; Indemnification</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower shall indemnify the Lender and
its managers, directors, officers, employees, attorneys and agents against, and
shall hold the Lender and such Persons harmless from, any and all losses,
claims, damages and liabilities and related expenses, including reasonable
counsel fees and expenses, incurred by the Lender or any such Person arising
out of, in any way connected with, or as a result of: (a)&nbsp;the use of any
of the proceeds of the Loans made by the Lender to the Borrower; (b)&nbsp;this
Agreement, the ownership and operation of the Borrower&#146;s and any Subsidiary&#146;s
assets, including all Real Properties and improvements or any Contract, the
performance by the Borrower or any other Person of their respective obligations
thereunder, and the consummation of the transactions contemplated by this
Agreement; (c)&nbsp;any finder&#146;s fee, brokerage commission of other such
obligation payable or alleged to be payable in respect of the transactions
contemplated by this Agreement which arises or is alleged to arise from any
agreement, action or conduct of the Borrower or any of its Affiliates, and/or (d)&nbsp;any
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not the Lender or its managers, directors, officers,
employees, attorneys or agents are a party thereto; <u>provided</u> that such
indemnity shall not apply to any such losses, claims, damages, liabilities or
related expenses arising from (i)&nbsp;any unexcused breach by the Lender of
any of its obligations under this Agreement, (ii)&nbsp;the willful misconduct
or gross negligence of the Lender as determined by a final, non-appealable
judgment of a court of competent jurisdiction, or (iii)&nbsp;the breach of any
commitment or legal obligation of the Lender to any Person other than the
Borrower or its Affiliates, <u>provided</u> that such breach is determined
pursuant to a final and nonappealable decision of a court of competent
jurisdiction.&#160; The foregoing indemnity
shall remain operative and in full force and effect regardless of the
expiration or any termination of this Agreement, the consummation of the
transactions contemplated by this Agreement, the repayment of the Loans, the
invalidity or unenforceability of any term or provision of any Loan Document,
any investigation made by or on behalf of the Lender, and the content or
accuracy of any representation or warranty made by the Borrower or any
Subsidiary in any Loan Document.&#160; All
amounts due under this Section&nbsp;9.02 shall be payable on written demand
therefor.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.03.&#160; Governing Law</font></u><font size="2" style="font-size:10.0pt;">.&#160; This Agreement and the other Loan Documents
shall (irrespective of where same are executed and delivered) be governed by
and construed in accordance with the laws of the State of New York (without
giving effect to principles of conflicts of laws).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.04.&#160; Waiver and Amendment</font></u><font size="2" style="font-size:10.0pt;">.&#160; Neither any modification or waiver of any
provision of this Agreement, the Notes, or any other Loan Document, nor any
consent to any departure by the Borrower or any Subsidiary therefrom, shall in
any event be effective unless the same shall be set forth in writing duly
signed or acknowledged by the Lender and all parties to such Loan Document, and
then such waiver or consent shall be effective only in the specific instance,
and for the specific purpose, for which given.&#160;
No notice to or demand on the Borrower in any instance shall entitle the
Borrower to any other or future notice or demand in the same, similar or other
circumstances.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.05.&#160; Reservation of Remedies</font></u><font size="2" style="font-size:10.0pt;">.&#160; Neither any failure nor any delay on the part
of the Lender in exercising any right, power or privilege hereunder or under
the Notes or any other Loan Document shall operate as a waiver thereof, nor
shall a single or partial exercise thereof preclude any other or future
exercise, or the exercise of any other right, power or privilege.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.06.&#160; Notices</font></u><font size="2" style="font-size:10.0pt;">.&#160; All notices, requests, demands and other
communications under or in respect of this Agreement or any transactions
hereunder shall be in writing (which may include telegraphic or telecopied
communication) and shall be personally delivered or mailed (by prepaid
registered or certified mail, return receipt requested), sent by prepaid
recognized overnight courier service, or telegraphed or telecopied by facsimile
transmission to the applicable party at its address or telecopier number
indicated below.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Lender:</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ComVest Capital, LLC</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One North Clematis, Suite&nbsp;300</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">West Palm Beach, FL 33401</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Chief Financial Officer</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier: (212) 829-5986</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy to:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Greenberg Traurig, LLP</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">200 Park Avenue</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New York&#160; 10166</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;
Shahe Sinanian,&nbsp;Esq.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier: (212) 801-6400</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Borrower:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Crdentia Corp.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5001 LBJ Freeway, Suite&nbsp;850</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dallas, Texas 75244</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;
James TerBeest</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier: (972) 392-2722</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy to:</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kane Russell Coleman&nbsp;&amp;
Logan, P.C.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1601 Elm Street, Suite&nbsp;3700</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dallas, Texas&#160;
75201</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Patrick V. Stark,&nbsp;Esq.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier: (214) 777-4299</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or, as to each party, at
such other address or telecopier number as shall be designated by such party in
a written notice to the other party delivered as aforesaid.&#160; All such notices, requests, demands and other
communications shall be deemed given (a)&nbsp;when personally delivered, (b)&nbsp;three
(3)&nbsp;Business Days after being deposited in the mails with postage prepaid
(by registered or certified mail, return receipt requested), (c)&nbsp;one (1)&nbsp;Business
Day after being delivered to the telegraph company or overnight courier
service, if prepaid and sent overnight delivery, addressed as aforesaid and
with all charges prepaid or billed to the account of the sender, or (d)&nbsp;when
sent by facsimile transmission to a telecopier number designated by such
addressee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.07.&#160; Binding Effect</font></u><font size="2" style="font-size:10.0pt;">.&#160; This Agreement shall be binding upon and
inure to the benefit of the Borrower and the Lender and their respective
successors and assigns, except that the Borrower shall not assign any of its
rights or obligations hereunder without the prior written consent of the
Lender.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.08.&#160; Consent to Jurisdiction; Waiver of Jury Trial</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower hereby consents to the
jurisdiction of all courts of the State of New York and the United States
District Court for the Southern District of New York, as well as to the
jurisdiction of all courts from which an appeal may be taken from such courts,
for the purpose of any suit, action or other proceeding arising out of or with
respect to this Agreement, any other Loan Document, any other agreements,
instruments, certificates or other documents executed in connection herewith or
therewith, or any of the transactions contemplated hereby or thereby, or any of
the Borrower&#146;s or any Subsidiary&#146;s obligations hereunder or thereunder.&#160; The Borrower hereby waives the right to
interpose any counterclaims (other than compulsory counterclaims) in any action
brought by the Lender hereunder or in respect of any other Loan Document,
provided that this waiver shall not preclude the Borrower from pursuing any
such claims by means of separate proceedings.&#160;
THE BORROWER HEREBY EXPRESSLY WAIVES ANY AND ALL OBJECTIONS WHICH IT MAY&nbsp;HAVE
AS TO VENUE IN ANY OF SUCH COURTS, AND ALSO WAIVES TRIAL BY JURY IN ANY SUCH
SUIT, ACTION OR PROCEEDING.&#160; The Lender
may file a copy of this Agreement as evidence of the foregoing waiver of right
to jury trial.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.09.&#160; Certain Waivers</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Borrower and the Lender each hereby
waives any claims for special, consequential or punitive damages in any way
arising out of or relating to this Agreement, any of the other Loan Documents,
or any breach hereof or thereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.10.&#160; Severability</font></u><font size="2" style="font-size:10.0pt;">.&#160; If any provision of this Agreement is held by
a court of competent jurisdiction to be invalid or unenforceable, either in its
entirety or by virtue of its scope or application to given circumstances, such
provision shall thereupon be deemed modified only to the extent necessary to
render same valid, or not applicable to given circumstances, or excised from
this Agreement, as the situation may require, and this Agreement shall be
construed </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and
enforced as if such provision had been included herein as so modified in scope
or application, or had not been included herein, as the case may be.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.11.&#160; Captions</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Article&nbsp;and Section&nbsp;headings in
this Agreement are included herein for convenience of reference only, and shall
not affect the construction or interpretation of any provision of this
Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.12.&#160; Sole and Entire Agreement</font></u><font size="2" style="font-size:10.0pt;">.&#160; This Agreement, the Notes, the other Loan
Documents, and the other agreements, instruments, certificates and documents
referred to or described herein and therein constitute the sole and entire
agreement and understanding between the parties hereto as to the subject matter
hereof, and supersede all prior discussions, agreements and understandings of
every kind and nature between the parties as to such subject matter.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.13.&#160; Confidentiality</font></u><font size="2" style="font-size:10.0pt;">.&#160; The Lender shall not disclose any
Confidential Information to any Person without the prior consent of the
Borrower; <u>provided</u>, <u>however</u>, that nothing herein contained shall
limit any disclosure of the tax structure of the transactions contemplated
hereby, or the disclosure of any information (a)&nbsp;to the extent required by
statute, rule, regulation or judicial process, (b)&nbsp;to counsel, accountants
and other professional advisors for the Lender, (c)&nbsp;to bank examiners,
auditors, accountants or, if required by law, any regulatory authority, (d)&nbsp;to
the officers, partners, managers, directors, employees, agents and advisors
(including independent auditors and counsel) of the Lender, (e)&nbsp;in
connection with any litigation which relates to this Agreement to which the
Lender is a party, (f)&nbsp;to a subsidiary or Affiliate of the Lender, or (g)&nbsp;to
any assignee or participant (or prospective assignee or participant) which
agrees to be bound by this Section&nbsp;9.13, <u>and</u>  <u>further</u>  <u>provided</u>,
that in no event shall the Lender be obligated or required to return any
materials furnished by the Borrower.&#160; The
obligations of the Lender under this Section&nbsp;9.13 shall supersede and
replace the obligations of the Lender under any confidentiality letter in
respect of this financing previously signed and delivered by the Lender to the
Borrower.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.14.&#160; Counterparts; Fax Signatures</font></u><font size="2" style="font-size:10.0pt;">.&#160; This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same agreement.&#160; This Agreement may be executed by fax
signatures, each of which shall be fully binding on the signing party.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;9.15.&#160; Short Selling</font></u><font size="2" style="font-size:10.0pt;">.&#160; Until the earlier of (a)&nbsp;the Term Loans
Maturity Date, or (b)&nbsp;the repayment in full of the Term Loans, ComVest
Capital, LLC and its Affiliates shall not engage in any uncovered short sales
of Common Stock (provided that, for purposes of this Section&nbsp;9.15, the
sale of or commitment to sell shares which may be acquired by ComVest Capital,
LLC from the exercise of the Warrant shall not be deemed to be an uncovered
short sale).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">47</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b><font size="2" style="font-size:10.0pt;">, the parties
hereto have caused this Agreement to be duly executed by their duly authorized
officer as of the day and year first written above.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMVEST CAPITAL, LLC</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Gary E. Jaggard</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Managing Director</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CRDENTIA CORP.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">48</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>
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<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.2</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">REVOLVING CREDIT NOTE</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.4%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$5,200,000</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.04%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in .7pt 0in .7pt;width:53.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">February 22, 2008</font></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FOR VALUE RECEIVED</font></b><font size="2" style="font-size:10.0pt;">, the
undersigned, <b>CRDENTIA CORP., </b>a Delaware<b>  </b>corporation (the &#147;<u>Maker</u>&#148;), hereby promises to pay to
<b>COMVEST CAPITAL, LLC, </b>a Delaware limited liability company (&#147;<u>ComVest</u>&#148;),
or registered assigns (hereinafter, collectively with ComVest, referred to as
the &#147;<u>Payee</u>&#148;), on February&nbsp;28, 2010 (subject to extension pursuant
to Section&nbsp;2.01(h)&nbsp;of the Loan Agreement hereinafter described, or
sooner by reason of an Event of Default or other mandatory prepayment event in
accordance with the Loan Agreement hereinafter described), the principal sum of
Five Million Two Hundred Thousand ($5,200,000) Dollars or, if less, the
aggregate unpaid principal amount of all Advances made by the Payee to the
Maker pursuant to that certain Revolving Credit and Term Loan Agreement of even
date herewith by and between ComVest and the Maker (as same may be amended,
modified, supplemented and/or restated from time to time, the &#147;<u>Loan
Agreement</u>&#148;), together with interest (computed as hereinafter provided) on
any and all principal amounts outstanding hereunder from time to time from the
date hereof until payment in full hereof, at a rate per annum equal to the
greater of (a)&nbsp;the Prime Rate (as such term is hereinafter defined) as in
effect from time to time plus two (2%) percent, or (b)&nbsp;eight and one-half
(8.5%) percent; <u>provided</u>, <u>however</u>, that during the continuance of
any Event of Default under the Loan Agreement, the interest rate otherwise
applicable hereunder shall be increased by five hundred (500) basis
points.&#160; All interest shall be computed
on the daily unpaid principal balance hereof based on a three hundred sixty
(360) day year, and shall be payable monthly in arrears on the first day of
each calendar month commencing March&nbsp;1, 2008, and upon maturity or
acceleration hereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As used herein, the term &#147;Prime
Rate&#148; shall mean the &#147;prime rate&#148; or &#147;base rate&#148; of interest publicly announced
by Citibank, N.A. (or any successor thereto, or in the event that such bank
shall cease to exist and shall have no successor, any other domestic commercial
bank selected by the Payee in good faith) from time to time, which is merely a
reference rate for determining the interest rate to be charged on loans or
other financial transactions, and may or may not be the best rate offered by
such bank for commercial loans; and upon each announced change of the Prime
Rate by such bank, the interest rate hereunder shall be correspondingly
adjusted.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Maker shall have the
right, at any time and from time to time, without preimum or penalty, to prepay
all or any portion of the principal balance of this Note upon written notice to
the Payee, stating the amount of the prepayment.&#160; In addition, the Maker shall be required to
make principal payments hereunder, without requirement of notice or demand, as
and to the extent provided in Sections 2.01(d)&nbsp;and 2.07 of the Loan
Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless the Maker shall be
otherwise notified in writing by ComVest, all principal and interest hereunder
are payable in lawful money of the United States of America at the office of
ComVest set forth in the Loan Agreement in immediately available funds.&#160; Payments of principal and/or interest
hereunder shall be made, at the Payee&#146;s option, by debiting any demand deposit
account(s)&nbsp;in the name of the Maker at the Payee (or any agent of the
Payee) or in such other reasonable manner as may be designated by the Payee in
writing to the Maker and in any event </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">shall
be made in immediately available funds.&#160;
The Maker hereby irrevocably authorizes the Payee to so debit any and
all such demand deposit accounts.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Maker hereby waives
presentment, demand, dishonor, protest, notice of protest, diligence and any
other notice or action otherwise required to be given or taken under the law in
connection with the delivery, acceptance, performance, default, enforcement or
collection of this Note, and expressly agrees that this Note, or any payment
hereunder, may be extended, modified or subordinated (by forbearance or otherwise)
from time to time, without in any way affecting the liability of the
Maker.&#160; The Maker hereby further waives
the benefit of any exemption under the homestead exemption laws, if any, or any
other exemption, appraisal or insolvency laws, and consents that the Payee may
release or surrender, exchange or substitute any personal property or other
collateral security now held or which may hereafter be held as security for the
payment of this Note.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Note is the Revolving
Credit Note issued pursuant to the terms of the Loan Agreement and is secured
pursuant to the provisions of certain &#147;Security Documents&#148; referred to in the
Loan Agreement.&#160; This Note is entitled to
all of the benefits of the Loan Agreement and said Security Documents,
including provisions governing the payment and the acceleration of maturity
hereof, which agreements and instruments are hereby incorporated by reference
herein and made a part hereof.&#160; The
occurrence and continuance of an Event of Default thereunder shall constitute a
default under this Note and shall entitle the Payee to accelerate the entire
indebtedness hereunder and take such other action as may be provided for in the
Loan Agreement and/or any and all other instruments evidencing and/or securing
the indebtedness under this Note, or as may be provided under the law.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that any holder
of this Note shall, during the continuance of any Event of Default, exercise or
endeavor to exercise any of its remedies hereunder or under the Loan Agreement
or any of the Security Documents, the Maker shall pay all costs and expenses
incurred in connection therewith, including, without limitation, reasonable
attorneys&#146; fees, all of which costs and expenses shall be obligations under and
part of this Note; and the holder hereof may take judgment for all such amounts
in addition to all other sums due hereunder.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No consent or waiver by the
holder hereof with respect to any action or failure to act which, without such
consent or waiver, would constitute a breach of any provision of this Note
shall be valid and binding unless in writing and signed by the Maker and by the
holder hereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All agreements between the
Maker and the Payee are hereby expressly limited to provide that in no
contingency or event whatsoever, whether by reason of acceleration of maturity
of the indebtedness evidenced hereby or otherwise, shall the amount paid or
agreed to be paid to the Payee for the use, forbearance or detention of the
indebtedness evidenced hereby exceed the maximum amount which the Payee is
permitted to receive under applicable law.&#160;
If, from any circumstances whatsoever, fulfillment of any provision
hereof or of any of the Security Documents or the Loan Agreement, at the time
performance of such provision shall be due, shall involve transcending the
limit of validity prescribed by law, then, <u>ipso</u>  <u>facto</u>, the
obligation to be fulfilled shall automatically be reduced to the limit of such
validity, and if from any circumstance the Payee shall ever receive as interest
an amount which would exceed the highest lawful rate, such amount which would
be excessive interest shall be applied to the reduction of the principal </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">balance
of any of the Maker&#146;s Obligations (as such term is defined in the Loan Agreement)
to the Payee, and not to the payment of interest hereunder.&#160; To the extent permitted by applicable law,
all sums paid or agreed to be paid for the use, forbearance or detention of the
indebtedness evidenced by this Note shall be amortized, prorated, allocated and
spread throughout the full term of such indebtedness until payment in full, to
the end that the rate or amount of interest on account of such indebtedness
does not exceed any applicable usury ceiling.&#160;
As used herein, the term &#147;applicable law&#148; shall mean the law in effect
as of the date hereof, <u>provided</u>, <u>however</u>, that in the event there
is a change in the law which results in a higher permissible rate of interest,
then this Note shall be governed by such new law as of its effective date.&#160; This provision shall control every other
provision of all agreements between the Maker and the Payee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Note shall be governed by and construed
in accordance with the laws of the State of New York, except to the extent that
such laws are superseded by Federal enactments.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Maker hereby consents to the jurisdiction
of all courts of the State of New York and the United States District Court for
the Southern District of New York, as well as to the jurisdiction of all courts
from which an appeal may be taken from such courts, for the purpose of any
suit, action or other proceeding arising out of or with respect to this
Note.&#160; The Maker hereby waives the right
to interpose any counterclaims (other than compulsory counterclaims) in any
action brought by the Payee hereunder, provided that this waiver shall not
preclude the Maker from pursuing any such claims by means of separate
proceedings.&#160; THE MAKER HEREBY EXPRESSLY
WAIVES ANY AND ALL OBJECTIONS WHICH IT MAY&nbsp;HAVE AS TO VENUE IN ANY OF SUCH
COURTS, AND ALSO WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR
PROCEEDING.&#160; The Payee may file a copy of
this Note as evidence of the foregoing waiver of right to jury trial.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that the Payee shall place this
Note in the hands of an attorney for collection during the continuance of any
Event of Default, the Maker shall further be liable to the Payee for all costs
and expenses (including reasonable attorneys fees) which may be incurred by the
Payee in enforcing this Note, all of which costs and expenses shall be
obligations under and part of this Note; and the Payee may take judgment for
all such amounts in addition to all other sums due hereunder.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b><font size="2" style="font-size:10.0pt;">, the Maker has
caused this Note to be executed by its duly authorized officer as of the date
first set forth above.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="50%" style="border-collapse:collapse;margin-left:269.8pt;width:50.16%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CRDENTIA
  CORP.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.92%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">By:</font></b></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.08%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Exective Officer</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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</div>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.3</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$2,500,000</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in .7pt 0in .7pt;width:53.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">February&nbsp;22, 2008</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">TERM NOTE</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Tranche A)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FOR VALUE RECEIVED, the
undersigned, CRDENTIA CORP., a Delaware corporation (the &#147;<b>Maker</b>&#148;), hereby promises to pay to ComVest
Capital, LLC, a Delaware limited liability company (&#147;<b>ComVest</b>),
or registered assigns (hereinafter, collectively with ComVest, the &#147;<b>Payee</b>&#148;), the sum of Two Million Five
Hundred Thousand ($2,500,000) Dollars (the &#147;<b>Principal</b>&#148;),
with interest thereon, on the terms and conditions set forth herein and in the
Revolving Credit and Term Loan Agreement of even date herewith by and between
the Maker and ComVest (the &#147;<b>Loan Agreement</b>&#148;).&#160; Terms
defined in the Loan Agreement and not otherwise defined herein shall have the
meanings assigned thereto in the Loan Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payments of principal of,
interest on and any other amounts with respect to this Term Note (this &#147;<b>Note</b>&#148;) are to be made in lawful money of
the United States of America.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payments</u>.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="2" style="font-size:10.0pt;"> &nbsp;&nbsp;</font><font size="2" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;<u>Interest</u>.&#160; This Note shall bear interest (&#147;<b>Interest</b>&#148;) on Principal amounts outstanding from time to
time from the date hereof at the rate of twelve and one-half (12.5%) percent
per annum; <u>provided</u>, <u>however</u>, that during the continuance of any
Event of Default under the Loan Agreement, the interest rate hereunder shall be
seventeen and one-half (17.5%) percent per annum.&#160; All Interest shall be computed on the daily
unpaid Principal balance of this Note based on a three hundred sixty (360) day
year, and shall be payable monthly in arrears on the first day of each calendar
month commencing March&nbsp;1, 2008, and upon the maturity hereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b) &nbsp;&nbsp;</font><font size="2" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;<u>Principal</u>.&#160; The outstanding Principal of this Note shall
be payable (i)&nbsp;in twenty-three (23) equal monthly installments of
$104,166.67 each, due and payable on the first day of each calendar month
commencing March&nbsp;1, 2009 and continuing through and including January&nbsp;1,
2011, and (ii)&nbsp;a final installment due and payable on February&nbsp;28,
2011, in an amount equal to the entire remaining Principal balance of this
Note.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Non-Business Day</u>.&#160; If any scheduled payment date as aforesaid is
not a business day in the State of Texas or the State of Florida, then the
payment to be made on such scheduled payment date shall be due and payable on
the next succeeding business day, with additional interest on any Principal
amount so delayed for the period of such delay.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prepayment</u>.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Optional Prepayment of Principal</u>.&#160; All or any portion of the unpaid Principal
balance of this Note, together with all accrued and unpaid Interest on the
Principal amount being prepaid, may at the Maker&#146;s option be prepaid in whole
or in part, at any time or from time to time, without premium or penalty, upon
ten (10)&nbsp;days&#146; prior written notice to the Payee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Prepayments of Principal</u>.&#160; The entire Principal balance of this Note,
and all accrued and unpaid Interest hereunder, (i)&nbsp;shall be required to be
prepaid upon the consummation of any Sale, and (ii)&nbsp;may be required to be
prepaid upon the occurrence of any Event of Default.&#160; In addition, all or a portion of the
Principal of this Note shall be required to be prepaid as and to the extent
provided in Section&nbsp;2.02(b)&nbsp;of the Loan Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Application of Payments</u>.&#160; Any and all prepayments hereunder shall be
applied first to unpaid accrued Interest on the Principal amount being prepaid,
and then to Principal.&#160; Any and all
prepayments of Principal hereunder shall be applied to the installments under Section&nbsp;1(b)&nbsp;above
in the inverse order of their maturity.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Events of Default</u>.&#160; The occurrence or existence of an Event of
Default under the Loan Agreement shall constitute a default under this Note and
shall entitle the Payee to accelerate the entire indebtedness hereunder and
take such other action as may be provided for in the Loan Agreement and/or in
any and all other instruments evidencing and/or securing the indebtedness under
this Note, or as may be provided under the law.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment</u>.&#160; This Note shall be binding upon and shall
inure to the benefit of the respective successors and permitted assigns of the
parties hereto, provided that the Maker may not assign any of its rights or
obligations hereunder without the prior written consent of the Payee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver and Amendment</u>.&#160; No waiver of a right in any instance shall
constitute a continuing waiver of successive rights, and any one waiver shall
govern only the particular matters waived.&#160;
Neither any provision of this Note nor any performance hereunder may be
amended or waived except pursuant to an agreement in writing signed by the
party against whom enforcement thereof is sought.&#160; Except as otherwise expressly provided in
this Note, the Maker hereby waives diligence, demand, presentment for payment,
protest, dishonor, nonpayment, default, notice of any and all of the foregoing,
and any other notice or action otherwise required to be given or taken under
the law in connection with the delivery, acceptance, performance, default,
enforcement or collection of this Note, and expressly agrees that this Note, or
any payment hereunder, may be extended, modified or subordinated (by
forbearance or otherwise) from time to time, without in any way affecting the
liability of the Maker.&#160; The Maker
further waives the benefit of any exemption under the homestead exemption laws,
if any, or any other exemption, appraisal or insolvency laws, and consents that
the Payee may release or surrender, exchange or substitute any personal
property or other collateral security now held or which may hereafter be held
as security for the payment of this Note.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.&#160; This Note shall be construed in accordance
with and governed by<b>  </b>the laws of
the State of New York, except to the extent superseded by Federal enactments.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Consent to Jurisdiction; Waiver of
Jury Trial</u>.&#160; The Maker hereby
consents to the jurisdiction of all courts of the State of New York and the
United States District Court for the Southern District of New York, as well as
to the jurisdiction of all courts from which an appeal may be taken from such
courts, for the purpose of any suit, action or other proceeding arising out of
or with respect to this Note.&#160; The Maker
hereby waives the right to interpose any counterclaims (other than compulsory
counterclaims) in any action brought by the Payee hereunder, provided that this
waiver shall not preclude the Maker from pursuing any such claims by means of
separate proceedings.&#160; THE MAKER HEREBY
EXPRESSLY WAIVES ANY AND ALL OBJECTIONS WHICH IT MAY&nbsp;HAVE AS TO VENUE IN
ANY OF SUCH COURTS, AND ALSO WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY SUCH
SUIT, ACTION OR PROCEEDING.&#160; The Payee
may file a copy of this Note as evidence of the foregoing waiver of right to
jury trial.</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Usury Savings Clause</u>.&#160; All agreements between the Maker and the
Payee are hereby expressly limited to provide that in no contingency or event
whatsoever, whether by reason of acceleration of maturity of the indebtedness
evidenced hereby or otherwise, shall the amount paid or agreed to be paid to
the Payee for the use, forbearance or detention of the indebtedness evidenced
hereby exceed the maximum amount which the Payee is permitted to receive under
applicable law.&#160; If, from any
circumstances whatsoever, fulfillment of any provision hereof or of the Loan
Agreement or any Loan Document thereunder, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
prescribed by law, then, ipso facto, the obligation to be fulfilled shall
automatically be reduced to the limit of such validity, and if from any
circumstance the Payee shall ever receive as interest an amount which would
exceed the highest lawful rate, such amount which would be excessive interest
shall be applied to the reduction of the principal balance of any of the Maker&#146;s
Obligations (as such term is defined in the Loan Agreement) to the Payee, and
not to the payment of interest hereunder.&#160;
To the extent permitted by applicable law, all sums paid or agreed to be
paid for the use, forbearance or detention of the indebtedness evidenced by
this Note shall be amortized, prorated, allocated and spread throughout the
full term of such indebtedness until payment in full, to the end that the rate
or amount of interest on account of such indebtedness does not exceed any applicable
usury ceiling.&#160; As used herein, the term &#147;applicable
law&#148; shall mean the law in effect as of the date hereof, provided, however,
that in the event there is a change in the law which results in a higher
permissible rate of interest, then this Note shall be governed by such new law
as of its effective date.&#160; This provision
shall control every other provision of all agreements between the Maker and the
Payee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Collection Costs</u>.&#160; In the event that the Payee shall place this
Note in the hands of an attorney for collection during the continuance of any
Event of Default, the Maker shall further be liable to the Payee for all costs
and expenses (including reasonable attorneys&#146; fees) which may be incurred by
the Payee in enforcing this Note, all of which costs and expenses shall be
obligations under and part of this Note; and the Payee may take judgment for
all such amounts in addition to all other sums due hereunder.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
Maker has executed this Note on the date first above written.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="50%" style="border-collapse:collapse;margin-left:269.35pt;width:50.24%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CRDENTIA CORP.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="91%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:91.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  John B Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:
  John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:
  Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.4</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="34%" valign="top" style="padding:0in .7pt 0in .7pt;width:34.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$2,500,000</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0in .7pt 0in .7pt;width:53.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">February&nbsp;22, 2008</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">TERM NOTE</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Tranche B)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FOR VALUE RECEIVED, the
undersigned, CRDENTIA CORP., a Delaware corporation (the &#147;<b>Maker</b>&#148;), hereby promises to pay to ComVest
Capital, LLC, a Delaware limited liability company (&#147;<b>ComVest</b>),
or registered assigns (hereinafter, collectively with ComVest, the &#147;<b>Payee</b>&#148;), the sum of Two Million Five
Hundred Thousand ($2,500,000) Dollars (the &#147;<b>Principal</b>&#148;),
with interest thereon, on the terms and conditions set forth herein and in the
Revolving Credit and Term Loan Agreement of even date herewith by and between
the Maker and ComVest (the &#147;<b>Loan Agreement</b>&#148;).&#160; Terms
defined in the Loan Agreement and not otherwise defined herein shall have the
meanings assigned thereto in the Loan Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payments of principal of,
interest on and any other amounts with respect to this Term Note (this &#147;<b>Note</b>&#148;) are to be made in lawful money of
the United States of America.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Payments</u>.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Interest</u>.&#160; This Note shall bear interest (&#147;<b>Interest</b>&#148;) on Principal amounts outstanding from time to
time from the date hereof at the rate of twelve and one-half (12.5%) percent
per annum; <u>provided</u>, <u>however</u>, that during the continuance of any
Event of Default under the Loan Agreement, the interest rate hereunder shall be
seventeen and one-half (17.5%) percent per annum.&#160; All Interest shall be computed on the daily
unpaid Principal balance of this Note based on a three hundred sixty (360) day
year, and shall be payable monthly in arrears on the first day of each calendar
month commencing March&nbsp;1, 2008, and upon the maturity hereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Principal</u>.&#160; The outstanding Principal of this Note shall
be due and payable in full on February&nbsp;28, 2011.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Non-Business Da</u>y.&#160; If any scheduled payment date as aforesaid is
not a business day in the State of Texas or the State of Florida, then the
payment to be made on such scheduled payment date shall be due and payable on
the next succeeding business day, with additional interest on any Principal
amount so delayed for the period of such delay.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prepayment</u>.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Optional Prepayment of Principa</u>l.&#160; All or any portion of the unpaid Principal
balance of this Note, together with all accrued and unpaid Interest on the
Principal amount being prepaid, may at the Maker&#146;s option be prepaid in whole
or in part, at any time or from time to time, upon ten (10)&nbsp;days&#146; prior
written notice to the Payee.&#160; Any option
prepayment of Principal hereunder paid on or prior to the second (2<sup>nd</sup>
) anniversary of the date hereof shall require the simultaneous payment of a
prepayment premium in an amount equal to two (2%) percent of the Principal
amount being prepaid; any optional prepayment made after the second (2<sup>nd</sup>)
anniversary of the date hereof may be made without premium or penalty.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Prepayments of Principa</u>l.&#160; The entire Principal balance of this Note,
and all accrued and unpaid Interest hereunder, (i)&nbsp;shall be required to be
prepaid upon the consummation of any Sale, and (ii)&nbsp;may be required to be
prepaid upon the occurrence of any Event of Default.&#160; In addition, all or a portion of the
Principal of this Note shall be required to be prepaid as and to the extent
provided in Section&nbsp;2.02(b)&nbsp;of the Loan Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Application of Payments</u>.&#160; Any and all prepayments hereunder shall be
applied first to any prepayment premium required under Section&nbsp;2(a)&nbsp;above,
then to unpaid accrued Interest on the Principal amount being prepaid, and then
to Principal.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Events
of Default</u>.&#160; The occurrence or
existence of an Event of Default under the Loan Agreement shall constitute a
default under this Note and shall entitle the Payee to accelerate the entire
indebtedness hereunder and take such other action as may be provided for in the
Loan Agreement and/or in any and all other instruments evidencing and/or
securing the indebtedness under this Note, or as may be provided under the law.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignmen</u>t.&#160; This Note shall be binding upon and shall
inure to the benefit of the respective successors and permitted assigns of the
parties hereto, provided that the Maker may not assign any of its rights or
obligations hereunder without the prior written consent of the Payee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver and Amendment</u>.&#160; No waiver of a right in any instance shall
constitute a continuing waiver of successive rights, and any one waiver shall
govern only the particular matters waived.&#160;
Neither any provision of this Note nor any performance hereunder may be
amended or waived except pursuant to an agreement in writing signed by the
party against whom enforcement thereof is sought.&#160; Except as otherwise expressly provided in
this Note, the Maker hereby waives diligence, demand, presentment for payment,
protest, dishonor, nonpayment, default, notice of any and all of the foregoing,
and any other notice or action otherwise required to be given or taken under
the law in connection with the delivery, acceptance, performance, default,
enforcement or collection of this Note, and expressly agrees that this Note, or
any payment hereunder, may be extended, modified or subordinated (by
forbearance or otherwise) from time to time, without in any way affecting the
liability of the Maker.&#160; The Maker
further waives the benefit of any exemption under the homestead exemption laws,
if any, or any other exemption, appraisal or insolvency laws, and consents that
the Payee may release or surrender, exchange or substitute any personal
property or other collateral security now held or which may hereafter be held
as security for the payment of this Note.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.&#160; This Note shall be construed in accordance
with and governed by<b>  </b>the laws of
the State of New York, except to the extent superseded by Federal enactments.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Consent to Jurisdiction; Waiver of Jury
Trial</u>.&#160; The Maker hereby consents to
the jurisdiction of all courts of the State of New York and the United States
District Court for the Southern District of New York, as well as to the
jurisdiction of all courts from which an appeal may be taken from such courts,
for the purpose of any suit, action or other proceeding arising out of or with
respect to this Note.&#160; The Maker hereby
waives the right to interpose any counterclaims (other than compulsory
counterclaims) in any action brought by the Payee hereunder, provided that this
waiver shall not preclude the Maker from pursuing any such claims by means of
separate proceedings.&#160; THE MAKER HEREBY
EXPRESSLY WAIVES ANY AND ALL OBJECTIONS WHICH IT MAY&nbsp;HAVE AS TO VENUE IN
ANY OF SUCH COURTS, AND ALSO WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY SUCH
SUIT, ACTION OR PROCEEDING.&#160; The Payee
may file a copy of this Note as evidence of the foregoing waiver of right to
jury trial.</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Usury Savings Clause</u>.&#160; All agreements between the Maker and the
Payee are hereby expressly limited to provide that in no contingency or event
whatsoever, whether by reason of acceleration of maturity of the indebtedness
evidenced hereby or otherwise, shall the amount paid or agreed to be paid to
the Payee for the use, forbearance or detention of the indebtedness evidenced
hereby exceed the maximum amount which the Payee is permitted to receive under
applicable law.&#160; If, from any
circumstances whatsoever, fulfillment of any provision hereof or of the Loan
Agreement or any Loan Document thereunder, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
prescribed by law, then, ipso facto, the obligation to be fulfilled shall
automatically be reduced to the limit of such validity, and if from any
circumstance the Payee shall ever receive as interest an amount which would
exceed the highest lawful rate, such amount which would be excessive interest
shall be applied to the reduction of the principal balance of any of the Maker&#146;s
Obligations (as such term is defined in the Loan Agreement) to the Payee, and
not to the payment of interest hereunder.&#160;
To the extent permitted by applicable law, all sums paid or agreed to be
paid for the use, forbearance or detention of the indebtedness evidenced by
this Note shall be amortized, prorated, allocated and spread throughout the
full term of such indebtedness until payment in full, to the end that the rate
or amount of interest on account of such indebtedness does not exceed any
applicable usury ceiling.&#160; As used
herein, the term &#147;applicable law&#148; shall mean the law in effect as of the date
hereof, provided, however, that in the event there is a change in the law which
results in a higher permissible rate of interest, then this Note shall be
governed by such new law as of its effective date.&#160; This provision shall control every other
provision of all agreements between the Maker and the Payee.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Collection Costs</u>.&#160; In the event that the Payee shall place this
Note in the hands of an attorney for collection during the continuance of any
Event of Default, the Maker shall further be liable to the Payee for all costs
and expenses (including reasonable attorneys&#146; fees) which may be incurred by
the Payee in enforcing this Note, all of which costs and expenses shall be
obligations under and part of this Note; and the Payee may take judgment for
all such amounts in addition to all other sums due hereunder.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
Maker has executed this Note on the date first above written.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="50%" style="border-collapse:collapse;margin-left:270.7pt;width:50.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CRDENTIA CORP.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="91%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:91.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp; John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp; Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.5</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &#147;<b>ACT</b>&#148;) OR UNDER THE SECURITIES LAWS OF ANY
STATE OR JURISDICTION AND MAY&nbsp;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&nbsp;AND SCOPE, OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY, THAT REGISTRATION, QUALIFICATION OR OTHER SUCH ACTIONS ARE NOT
REQUIRED UNDER ANY SUCH LAWS.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">CRDENTIA
CORP.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WARRANT TO PURCHASE SHARES
OF COMMON STOCK<br>
<b>(Expires February&nbsp;28, 2014)</b></font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.38%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Warrant
  No.&nbsp;CV-1</font></u></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:7.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0in .7pt 0in .7pt;width:60.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,000,000 Shares of Common Stock</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FOR VALUE RECEIVED, subject
to the provisions set forth below, the undersigned, CRDENTIA CORP., a Delaware
corporation (the &#147;<b>Company</b>&#148;),
hereby certifies that ComVest Capital, LLC, a Delaware limited liability
company, or its registered assigns (the &#147;<b>Holder</b>&#148;),
is entitled to purchase from the Company up to eight million (8,000,000) fully
paid and nonassessable shares (the &#147;<b>Warrant
Shares</b>&#148;) of the Company&#146;s common stock, $.0001 par value per share
(the &#147;<b>Common Shares</b>&#148;), for cash at
a price of $.001 per share (the &#147;<b>Exercise Price</b>&#148;)
at any time and from time to time from and after the earlier of (a)&nbsp;August&nbsp;22,
2008, or (b)&nbsp;any Event of Default or Sale (as such terms are defined in
the Revolving Credit and Term Loan Agreement dated as of February&nbsp;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 &#147;<b>Commencement
Date</b>&#148;), and until 5:00&nbsp;p.m. (Central time) on February&nbsp;28,
2014 (the &#147;<b>Expiration Date</b>&#148;), 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.&#160;
The Exercise Price and the number of shares purchasable hereunder are subject
to adjustment as provided in Section&nbsp;3 of this Warrant.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exercise of
Warrant.</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exercise</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.&#160; Upon exercise of this Warrant, the Exercise
Price shall be payable in cash or by check.&#160;
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.&#160; 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 </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">signed
by an appropriate officer of the Company.&#160;
The term &#147;Warrant&#148; as used herein shall include any subsequent Warrant
issued as provided herein.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exercise Procedures; Delivery of
Certificate</font></b><font size="2" style="font-size:10.0pt;">.&#160; Upon
surrender of this Warrant with a duly executed Notice of Exercise in the form
of <u>Annex&nbsp;A</u> attached hereto, together with payment of the Exercise
Price for the Warrant Shares purchased, at the Company&#146;s principal executive
offices (the &#147;<b>Designated Office</b>&#148;),
the Holder shall be entitled to receive a certificate or certificates for the
Warrant Shares so purchased.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Cashless Exercise</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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&nbsp;in
the form attached hereto as <u>Annex&nbsp;B</u> (or a reasonable facsimile
thereof) duly executed (a &#147;<b>Cashless Exercise</b>&#148;).&#160; Such presentation and surrender shall be
deemed a waiver of the Holder&#146;s obligation to pay all or any portion of the
Exercise Price, as the case may be.&#160; 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)&nbsp;the
numerator of which shall be the difference between (i)&nbsp;the then current
market price per Common Share, and (ii)&nbsp;the Exercise Price, and (b)&nbsp;the
denominator of which shall be the then current market price per Common
Share.&#160; For purposes of any computation
under this Section&nbsp;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)&nbsp;consecutive trading days immediately prior to the Cashless
Exercise.&#160; 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.&#160; As used
herein, the term &#147;trading price&#148; on any relevant date means (A)&nbsp;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)&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Transfer; Issuance
of Stock Certificates; Restrictive Legends</font></b><font size="2" style="font-size:10.0pt;">.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Transfer</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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 <u>Annex&nbsp;C</u> attached hereto duly executed by the Holder or its
agent or attorney.&#160; 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.&#160; A Warrant may be exercised by the new Holder
for the purchase of Warrant Shares without having a new Warrant issued.&#160; Prior to due </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.&#160; 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.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Stock Certificates</font></b><font size="2" style="font-size:10.0pt;">.&#160; Certificates for the Warrant Shares shall be
delivered to the Holder within five (5)&nbsp;business days after the rights
represented by this Warrant shall have been exercised pursuant to Section&nbsp;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.&#160;
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; <u>provided</u>, <u>however</u>, 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Restrictive Legend</font></b><font size="2" style="font-size:10.0pt;">. Except as
otherwise provided in this Section&nbsp;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:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in .5in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.&#160; THEY MAY&nbsp;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&nbsp;AND
FROM COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.&#148;</font></p>

<p align="left" style="margin:0in .5in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the
foregoing, the legend requirements of this Section&nbsp;2.3 shall terminate as
to any particular Warrant Shares when (i)&nbsp;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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2008, or (ii)&nbsp;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.&#160; Whenever the restrictions imposed by this Section&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Adjustment of
Number of Shares; Exercise Price; Nature of Securities Issuable Upon Exercise
of Warrants.</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exercise Price; Adjustment of Number of
Shares</font></b><font size="2" style="font-size:10.0pt;">.&#160; The Exercise Price and the
number of shares purchasable hereunder shall be subject to adjustment from time
to time as hereinafter provided; <u>provided</u>, <u>however</u>, 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Adjustments Upon Distribution,
Subdivision or Combination</font></b><font size="2" style="font-size:10.0pt;">.&#160; If the Company, at any time or from time to
time after the issuance of this Warrant, shall (a)&nbsp;make a dividend or
distribution on its Common Shares payable in Common Shares, (b)&nbsp;subdivide
or reclassify the outstanding Common Shares into a greater number of shares, or
(c)&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Adjustment Upon Other Distributions</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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&nbsp;3 and all other
adjustments under this Section&nbsp;3.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Adjustment Upon Merger, Consolidation
or Exchange</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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&nbsp;3 and all other
adjustments under this Section&nbsp;3.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Adjustments for Recapitalization or
Reclassification</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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&nbsp;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 </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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&nbsp;3 and all other adjustments under this Section&nbsp;3.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Adjustment Upon
Certain Issuances of Common Stock.</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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&nbsp;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&#160; then in
effect by a fraction (i)&nbsp;the numerator of which shall be (A)&nbsp;the
number of Common Shares deemed outstanding (as determined below) immediately
prior to such issue or sale, plus (B)&nbsp;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)&nbsp;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; <u>provided</u>,
<u>however</u>, 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&nbsp;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&nbsp;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&nbsp;3.6(a)&nbsp;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.&#160; 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)&nbsp;the number of Common Shares actually
outstanding, (y)&nbsp;the number of Common Shares for which this Warrant could
be exercised on the day immediately preceding the given date, and (z)&nbsp;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.&#160; &#147;<b>Additional
Shares of Common Stock</b>&#148; 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)&nbsp;Common Shares
issued pursuant to the exercise of options, warrants or convertible securities
outstanding on February&nbsp;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&nbsp;22,
2008, and (ii)&nbsp;Common Shares and/or options, warrants or other Common
Share purchase rights for up to an aggregate of 5,000,000 </font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common
Shares (such number to be subject to adjustment in accordance with Section&nbsp;3.2
above), where such shares, options, warrants or other rights are issued both (A)&nbsp;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)&nbsp;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&#146;s Board of
Directors or the Compensation Committee thereof, and/or by the Company&#146;s
stockholders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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&nbsp;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)&nbsp;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)&nbsp;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)&nbsp;the original issuance at the time of
the reduction of any such options, warrants, convertible securities or other
rights then still outstanding.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In no event shall an adjustment under
this Section&nbsp;3.6 be made if it would result in an increase in the then
applicable Exercise Price.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Certificate of Adjustment</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.&#160;
The certificate of adjustment shall be prima facie evidence of the
correctness of the adjustment.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Successive Adjustments</font></b><font size="2" style="font-size:10.0pt;">.&#160; The provisions of this Section&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No Impairment</font></b><font size="2" style="font-size:10.0pt;">.<b>&#160; </b>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.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Registration; Exchange and Replacement of Warrant;
Reservation of Shares</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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&nbsp;4.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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&#146;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Investment Representations</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Fractional Warrants and Fractional Shares</font></b><font size="2" style="font-size:10.0pt;">.&#160; If the number of Warrant Shares purchasable
upon the exercise of this Warrant is adjusted pursuant to Section&nbsp;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.&#160;
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&nbsp;1.3 above).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Warrant Holders Not Deemed Stockholders</font></b><font size="2" style="font-size:10.0pt;">.&#160; No Holder of this Warrant shall, as such, be
entitled to vote or to receive dividends (except to the extent provided in Section&nbsp;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 </font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Notices</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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).&#160; 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.&#160; Notice given in any other
manner shall be effective only if and when received by the party to be
notified.&#160; For the purposes of notice,
the addresses of the parties for the receipt of notice hereunder are:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Company:</font></u></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Crdentia Corp.</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5001 LBJ Freeway, Suite&nbsp;850</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dallas, TX&#160; 75244</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: James TerBeest</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:&nbsp;(972)
850-0780</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax
No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(972) 392-2722</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Holder:</font></u></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ComVest Capital, LLC</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One North Clematis,
Suite&nbsp;300<br>
West Palm Beach, Florida&#160; 33401<br>
Attention: Chief Financial Officer</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:&nbsp;(561)
868-6074</font></p>

<p style="margin:0in 0in .0001pt 60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax
No.:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(212) 829-5986</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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)&nbsp;days&#146; prior written notice of the
change of its address to the other parties in the manner specified herein.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Successors</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Law Governing</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Entire Agreement; Amendments and Waivers</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.&#160; 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.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Severability; Headings</font></b><font size="2" style="font-size:10.0pt;">.&#160; 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.&#160;
The Section&nbsp;headings in this Warrant have been inserted for
purposes of convenience only and shall have no substantive effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[The remainder of this page&nbsp;is
intentionally blank]</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; IN WITNESS WHEREOF, the Company has caused this
Warrant to be duly executed as of the 22 day of February, 2008.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="42%" style="border-collapse:collapse;margin-left:310.3pt;width:42.68%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CRDENTIA CORP.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:
  John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:
  Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 3.0in;text-indent:31.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">ANNEX&nbsp;A</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">NOTICE
OF EXERCISE</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(To be executed upon partial
or full<br>
exercise of the within Warrant)</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned hereby irrevocably elects to
exercise the right to purchase
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:57.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="38%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:38.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:57.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:38.8%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Signature of Registered Holder)</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:57.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:57.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:</font></p>
  </td>
  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:25.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in .7pt 0in .7pt;width:25.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="49" style="border:none;"></td>
  <td width="189" style="border:none;"></td>
  <td width="189" style="border:none;"></td>
  <td width="31" style="border:none;"></td>
  <td width="290" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">ANNEX B</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">CASHLESS
EXERCISE FORM</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(To be executed upon partial or full</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">exercise of Warrants
pursuant to Section&nbsp;1.3 of the Warrant)</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned hereby irrevocably elects to
surrender
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shares of Common Stock of Crdentia Corp. purchasable under the Warrant for
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shares of Common Stock issuable in exchange therefor pursuant to the Cashless
Exercise provisions of the within Warrant, as provided for in Section&nbsp;1.3
of such Warrant.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please issue a certificate or certificates for such
Common Stock in the name of, and pay cash for fractional shares in the name of:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Please print name, address, and social security number/tax
identification number:)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:</font></p>
  </td>
  <td width="25%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:25.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:62.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:62.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name
  of Warrant Holder</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:11.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or
  transferee:</font></p>
  </td>
  <td width="88%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:88.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:11.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="88%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:88.48%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Please print)</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:62.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in .7pt 0in .7pt;width:37.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:9.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
  <td width="90%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:9.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:90.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:9.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature:</font></p>
  </td>
  <td width="90%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="43" style="border:none;"></td>
  <td width="26" style="border:none;"></td>
  <td width="17" style="border:none;"></td>
  <td width="148" style="border:none;"></td>
  <td width="234" style="border:none;"></td>
  <td width="280" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOTICE:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ANNEX&nbsp;C</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">ASSIGNMENT
FORM</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="45%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:45.52%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="46%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:46.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">No.&nbsp;of Shares of</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:45.52%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Name and Address of Assignee</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="46%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Common Stock</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:45.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:46.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and does hereby irrevocably
constitute and appoint
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:</font></p>
  </td>
  <td width="26%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:26.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print
  Name:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:42.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:42.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:42.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:42.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:46.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Witness:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:42.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOTICE:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0in .7pt 0in .7pt;width:87.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.6</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">REGISTRATION RIGHTS AGREEMENT</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Registration Rights
Agreement (this &#147;Agreement&#148;) is made as of February&nbsp;22, 2008 by Crdentia
Corp., a Delaware corporation (the &#147;<u>Company</u>&#148;), for the benefit of the
Holders (as such term is hereinafter defined).&#160;
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).&#160; 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&#146;s agreement to comply with the
applicable provisions of this Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, the Company
hereby agrees, in favor of the Holders, as follows:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Definitions</font></u><font size="2" style="font-size:10.0pt;">.&#160; In addition to those terms defined elsewhere
in this Agreement, the following terms shall have the following meanings
wherever used in this Agreement:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Act</u>&#148; shall mean the
Securities Act of 1933, as amended, and any successor statute from time to
time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Affiliate</u>&#148; shall
mean, with respect to any person, any other person controlling, controlled by
or under common control with the first person.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Board</u>&#148; shall mean the Board of
Directors of the Company.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Common Stock</u>&#148; shall mean the
authorized common stock of the Company.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Company</u>&#148; shall mean Crdentia Corp.,
and shall include any successor(s)&nbsp;thereto.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Costs and Expenses</u>&#148;
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; <u>provided</u>, <u>however</u>, 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Exchange Act</u>&#148; shall
mean the Securities Exchange Act of 1934, as amended, and any successor statute
from time to time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Holders</u>&#148; shall mean,
collectively, all Persons holding Registrable Shares from time to time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Loan Agreement</u>&#148;
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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Loans</u>&#148; shall mean
the loans extended to the Company from time to time under and pursuant to the
Loan Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Person</u>&#148; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Registrable Shares</u>&#148;
shall mean all Shares, excluding any Shares which may then be sold by the
Holder thereof pursuant to Rule&nbsp;144(k)&nbsp;promulgated under the Act.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Registration</u>&#148; 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, <u>other</u>
<u>than</u> 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&nbsp;S-4, Form&nbsp;S-8 or any
equivalent form of registration then in effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Registration Period</u>&#148;
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)&nbsp;the date on which all of the Registrable Securities covered
by such Registration Statement shall have been sold to the public, or (b)&nbsp;the
date on which the Warrant Shares issued or issuable upon cashless exercise of
the Warrant in accordance with Section&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Registration Statement</u>&#148;
shall mean any registration statement filed or to be filed by the Company in
respect of any Registration.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>SEC</u>&#148; shall mean the
United States Securities and Exchange Commission, or any successor agency or
agencies performing the functions thereof.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Shares</u>&#148; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Tranche B Term Note</u>&#148;
shall have the meaning ascribed thereto in the Loan Agreement, and shall
include any replacement promissory note(s)&nbsp;therefor.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Warrants</u>&#148; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Warrant Shares</u>&#148;
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.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Shelf </font></u><u><font size="2" style="font-size:10.0pt;">Registration</font></u><font size="2" style="font-size:10.0pt;">.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall
prepare and file with the SEC (i)&nbsp;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&nbsp;415 promulgated under the Act), covering the resale of
all of the Registrable Securities; <u>provided</u>, that if the SEC refuses to
declare the Registration Statement filed pursuant to this Section&nbsp;2(a)&nbsp;effective
as a valid secondary offering under Rule&nbsp;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)&nbsp;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&nbsp;415, and (ii)&nbsp;the Company shall file, as soon as
practicable thereafter and in accordance with the Act and the SEC&#146;s rules&nbsp;and
regulations, a Registration Statement (or Registration Statement(s)&nbsp;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)&nbsp;through 2(i)&nbsp;below shall apply to such Registration
Statement or Registration Statements once the filing thereof is permitted.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall
use all commercially reasonable efforts to cause the Registration Statement(s)&nbsp;required
by this Section&nbsp;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&nbsp;2(a)&nbsp;above).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If (i)&nbsp;any
Registration Statement required by this Section&nbsp;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&nbsp;2(a)&nbsp;above),
or (ii)&nbsp;the Registration Statement required by this Section&nbsp;2 shall
cease to be available for use by the Holders as selling stockholders (A)&nbsp;as
provided under Section&nbsp;2(f)&nbsp;below where such unavailability continues
for a period in excess of five (5)&nbsp;days beyond the allowed time period, or
(B)&nbsp;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)&nbsp;or (ii)&nbsp;above occurs and is
continuing (the &#147;<u>Blackout Period</u>&#148;); <u>provided</u>, <u>however</u>,
that the aggregate such fees payable under this Section&nbsp;2(c)&nbsp;shall
not exceed $700,000.&#160; Each such payment
shall be due within five (5)&nbsp;days after the end of each 30-day period of
the Blackout Period until the termination of the Blackout Period and within
five (5)&nbsp;days after such termination.&#160;
The Blackout Period shall terminate upon the effectiveness of the
Registration Statement in the case of clause (i)&nbsp;above and upon notice
from the Company that the Registration Statement is again available in the case
of clause (ii)&nbsp;above.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall
use all commercially reasonable efforts to keep each Registration Statement
under this Section&nbsp;2 effective at all times during the applicable
Registration Period.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the Holders
(acting by a majority in interest) determine that any offering pursuant to a
Registration Statement pursuant to this Section&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; for a period of up
to six (6)&nbsp;months if (A)&nbsp;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&#146;s Board of Directors, would materially
interfere with such transaction or negotiations, or (B)&nbsp;such distribution
would otherwise require premature disclosure of information that, in the
reasonable judgment of the Company&#146;s Board of Directors, would adversely affect
or otherwise be detrimental to the Company; <u>provided</u> that the Company
shall not invoke this clause (i)&nbsp;more than once in any twelve (12) month
period or for more than six (6)&nbsp;months in any such twelve (12) month
period;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; for a period of up to sixty (60) days after the filing of
the Company&#146;s annual report on Form&nbsp;10-K or Form&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall promptly
notify the Holders in writing at such time as (x)&nbsp;such transactions or
negotiations have been otherwise publicly disclosed or terminated, or (y)&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall (i)&nbsp;permit
the Holders&#146; counsel to review (A)&nbsp;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&#146; beneficial
ownership of </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">securities
of the Company, and their intended method of disposition of Registrable
Securities, and (B)&nbsp;all requests for acceleration or effectiveness thereof
and any correspondence between the Company and the SEC relating to the
Registration Statement (collectively, the &#147;<u>Registration Documents</u>&#148;), for
a reasonable period of time prior to their filing with the SEC, (ii)&nbsp;not
file (or send) any Registration Documents in a form to which such counsel
reasonably objects, and (iii)&nbsp;not request acceleration of such
Registration Statement without prior notice to such counsel.&#160; The sections of such Registration Statement
covering information with respect to the Holders, their and their Affiliates&#146;
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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Registration
Statement pursuant to this Section&nbsp;2 shall not include any securities
other than Registrable Shares.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall bear all of the Costs and Expenses of
the Registration pursuant to this Section&nbsp;2.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Piggyback
Registration</font></u><font size="2" style="font-size:10.0pt;">.&#160; In the
event that the Company shall propose a Registration at any time when a
Registration Statement is not effective pursuant to Section&nbsp;2 above, then
the Company shall give to each Holder written notice (the &#147;<u>Registration
Notice</u>&#148;) 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&nbsp;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)&nbsp;days after the Company&#146;s giving of the Registration
Notice.&#160; 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.&#160;
The Company shall bear all of the Costs and Expenses of any Registration
described in this Section&nbsp;3; <u>provided</u>, <u>however</u>, that each
Holder shall pay, <u>pro</u>  <u>rata</u> based upon the number of its
Registrable Shares included therein, the underwriters&#146; 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&#146;s obligation to include a Holder&#146;s Registrable Shares
in any such Registration Statement shall be subject, at the option of the
Company, to the following further conditions:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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&#146; Registrable Shares in connection
with such Registration;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In connection with
an underwritten public offering pursuant to a Registration Statement under this
Section&nbsp;3, if and only if the managing underwriter(s)&nbsp;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 &#147;cutback&#148;
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</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Registration Procedures</font></u><font size="2" style="font-size:10.0pt;">. In the case of each Registration
effected by the Company in which Registrable Shares are to be sold for the
account of </font><font size="2" style="font-size:10.0pt;">any</font><font size="2" style="font-size:10.0pt;"> Holder,
the Company, at its sole cost and expense (exclusive of items excluded in the
proviso to the definition of &#147;Costs and Expenses&#148; above), will use all
commercially reasonable efforts to:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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&nbsp;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;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; provide (i)&nbsp;the
Holders of the Registrable Shares to be included in such Registration
Statement, (ii)&nbsp;the underwriters (which term, for purposes of this
Agreement, shall include a person deemed to be an underwriter within the
meaning of Section&nbsp;2(11) of the Act, if any, thereof, (iii)&nbsp;the sales
or placement agent, if any, therefor, (iv)&nbsp;one counsel for such
underwriters or agent, and (v)&nbsp;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&#146; beneficial </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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&nbsp;4(b)&nbsp;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&nbsp;4(b), to conduct a reasonable investigation within the
meaning of the Act; <u>provided</u>, <u>however</u>, 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)&nbsp;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)&nbsp;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)&nbsp;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; <u>and</u></font><font size="2" style="font-size:10.0pt;">  </font><u><font size="2" style="font-size:10.0pt;">further provided</font></u><font size="2" style="font-size:10.0pt;">, 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&#146;s
request, executes and delivers to the Company a specific undertaking to
substantially the same effect contained in the preceding <u>proviso</u>;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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)&nbsp;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)&nbsp;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)&nbsp;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)&nbsp;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)&nbsp;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;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">obtain the
withdrawal of any order suspending the effectiveness of such Registration
Statement or any post-effective amendment thereto at the earliest practicable
date;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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&nbsp;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;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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&nbsp;4(b)&nbsp;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;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">timely (i)&nbsp;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)&nbsp;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)&nbsp;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; <u>provided</u>, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">however</font></u><font size="2" style="font-size:10.0pt;">, that the
Company shall not be required for any such purpose to (A)&nbsp;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&nbsp;4(h), (B)&nbsp;subject itself to taxation in
any such jurisdiction, or (C)&nbsp;consent to general service of process in any
such jurisdiction;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">cooperate with
the Holders of the Registrable Shares to be included in a Registration
Statement hereunder and the managing underwriter(s)&nbsp;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&#146;s transfer agent; and enable such
Registrable Shares to be in such denominations and registered in such names as
the managing underwriter(s)&nbsp;may request at least two (2)&nbsp;business
days prior to any sale of the Registrable Shares;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">provide a CUSIP
number for all Shares, not later than the effective date of the Registration
Statement;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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)&nbsp;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)&nbsp;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)&nbsp;if so
requested by any such underwriter or placement or sales agent, obtain a &#147;cold
comfort&#148; 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)&nbsp;the effective
date of such Registration Statement, and (B)&nbsp;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)&nbsp;deliver
such documents and certificates, including officers&#146; </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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)&nbsp;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)&nbsp;undertake such obligations relating to expense
reimbursement, indemnification and contribution as are provided in Sections 2,
3 and 5 hereof;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">otherwise
comply with all applicable rules&nbsp;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&nbsp;6(a)&nbsp;of the Act (including pursuant
to Rule&nbsp;158 thereunder).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Indemnification by the Company.</font></u></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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&#146; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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&nbsp;or
regulation thereunder or otherwise, insofar as such losses, expenses, claims,
damages or liabilities (or actions in respect thereof) (i)&nbsp;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)&nbsp;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 </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;arise
out of any violation by the Company of the Act or any rule&nbsp;or regulation
thereunder applicable to the Company and relating to actions or omissions
otherwise required of the Company in connection with such registration.&#160; 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,&#160; defending or settling any
such loss, claim, damage, liability or action; <u>provided</u>, <u>however</u>,
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.&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Further Obligations of Holders</font></u><font size="2" style="font-size:10.0pt;">. The obligations of the Company with
respect to any particular Holder are subject to such Holder&#146;s agreement to the
following (which such Holder shall specifically confirm in writing to the
Company upon the Company&#146;s request in connection with any Registration
Statement):</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Such Holder
shall furnish in writing to the Company all information concerning such Holder
and its and its Affiliates&#146; 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&#146;s Registrable Shares.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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&nbsp;or
regulation thereunder or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) (i)&nbsp;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&#146;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)&nbsp;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.&#160; In no event shall
any Holder be required to pay indemnification hereunder (or contribution under Section&nbsp;7(d)&nbsp;below)
in an aggregate amount in excess of the net proceeds received by such Holder in
the subject offering.&#160; This indemnity
shall not apply to amounts paid in settlement of any such loss, claim, damage, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">liability
or action if such settlement is effected without the consent of the subject
Holder, which consent shall not be unreasonably withheld or delayed.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Additional
Provisions.</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Each Holder and
each other Person indemnified pursuant to Section&nbsp;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&#146;s having to indemnify it pursuant to Section&nbsp;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; <u>provided</u>, <u>however</u>, 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).&#160; 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&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company and
each other Person indemnified pursuant to Section&nbsp;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&nbsp;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; <u>provided</u>, <u>however</u>, that the Company
or other indemnified person shall be entitled to retain its own counsel at the
Company&#146;s expense.&#160; 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&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">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.&#160; 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.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the
indemnification provided for in Section&nbsp;5 and 6 is unavailable or
insufficient to hold harmless an indemnified party, then, subject to the limits
set forth in Section&nbsp;6(b)&nbsp;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&nbsp;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.&#160;
The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement&#160; 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&#146; relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission.&#160; The Company and
the Holders agree that it would not be just and equitable if contributions
pursuant to this Section&nbsp;7(d)&nbsp;were to be determined by pro rata
allocation (even if&#160; 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.&#160; 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&nbsp;7(d)&nbsp;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&nbsp;7(d).&#160; No person guilty of fraudulent
misrepresentation (within the meaning of Section&nbsp;11(f)&nbsp;of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.&#160; The
obligations of sellers of Shares to contribute pursuant to this Section&nbsp;7(d)&nbsp;shall
be several in proportion to the respective amounts of Shares sold by them
pursuant to a Registration Statement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Rule&nbsp;144
Information</font></u><font size="2" style="font-size:10.0pt;">. 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&nbsp;144(c)&nbsp;promulgated
under the Act.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Limitations on
Subsequent Registration Rights</font></u><font size="2" style="font-size:10.0pt;">.&nbsp;&nbsp;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&nbsp;2 above.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Notices</font></u><font size="2" style="font-size:10.0pt;">. 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)&nbsp;if to the Company, at its office at 5001 LBJ
Parkway, Suite&nbsp;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)&nbsp;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</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Waiver and Amendment</font></u><font size="2" style="font-size:10.0pt;">. 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Governing Law</font></u><font size="2" style="font-size:10.0pt;">. 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Binding Effect</font></u><font size="2" style="font-size:10.0pt;">. 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Captions</font></u><font size="2" style="font-size:10.0pt;">. The captions and Section&nbsp;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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Gender</font></u><font size="2" style="font-size:10.0pt;">. 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Entire Agreement</font></u><font size="2" style="font-size:10.0pt;">. 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Reliance and Benefit</font></u><font size="2" style="font-size:10.0pt;">. 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[The
remainder of this page&nbsp;is intentionally blank]</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b><font size="2" style="font-size:10.0pt;">, the Company
has executed this Agreement as of the date first set forth above.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CRDENTIA CORP.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt 30.0pt;text-align:left;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt 30.0pt;text-align:left;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: John B. Kaiser</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.32%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p align="left" style="margin:0in 0in .0001pt 30.0pt;text-align:left;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Chief Executive
  Officer</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;99.1</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="102%" style="border-collapse:collapse;width:102.3%;">
 <tr>
  <td width="220" valign="top" style="padding:0in 0in 0in 0in;width:164.65pt;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For Immediate Release</font></p><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Contact Crdentia Corp.</font></b></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">John Kaiser, CEO</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phone: 972.850.0780</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 972.392.2722</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">jkaiser@crdentia.com</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jim TerBeest, CFO</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phone: 972.850.0780</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 972.392.2722</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">jterbeest@crdentia.com</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width="419" valign="top" style="padding:0in 0in 0in 0in;width:314.15pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><img width="404" height="122" src="g68331cgi001.jpg"></font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="center" style="color:#293743;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Crdentia Announces
Completion of $10.2 Million Long-Term Debt Financing</font></b></h2>

<h2 align="center" style="color:#293743;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></b></h2>

<p style="color:black;margin:0in 0in .0001pt;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">DALLAS, February&nbsp;27,
2008 </font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">&#151; Crdentia Corp. (OTCBB:CRDT), a leading healthcare staffing
company, today announced it has completed a $10.2 million long-term debt
financing with ComVest Capital LLC, based in Palm Beach, Florida.&#160; Proceeds will be used to replace Crdentia&#146;s
existing credit facility and for general working capital purposes.</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">The
$10.2 million financing is comprised of a two-year $5.2 million Revolving
Credit Note, bearing interest at the greater of the Prime Rate plus 2% or 8.5%,
and two separate two-year term loans, each amounting to $2.5 million and
bearing annual interest of 12.5%.</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">John
Kaiser, CEO of Crdentia said, &#147;We are pleased to have completed this long-term
financing that reduces Crdentia&#146;s overall borrowing costs while enhancing our
financial flexibility with the addition of substantial working capital.&#160; Crdentia is now on a much stronger financial
footing as we move forward with our objectives of achieving profitability
through improved operating performance and executing our growth initiatives to
bolster our presence in key Sun Belt markets.&#148;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About Crdentia Corp.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Crdentia Corp., one of
the nation&#146;s leading providers of healthcare staffing solutions, is focused on
recruiting talented national and international healthcare professionals to meet
the ever-increasing employment needs of over 2,300 clients. Crdentia is one of
the few companies that can provide quality temporary staff for all healthcare
industry positions including local nurses, travel nurses, allied health, locum
tenens and home care professionals. For more information, visit
http://www.crdentia.com.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Forward
Looking Statements</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Statements
contained in this release that are not historical facts are forward-looking
statements that involve risks and uncertainties.&#160; Among the important factors which could cause
actual results to differ materially from those in the forward-looking
statements include, but are not limited to, those discussed in &#147;Risk Factors&#148;
in the Company&#146;s Forms 10-K, Forms 10-Q, and other filings with the Securities
and Exchange Commission.&#160; Such risk
factors include, but are not limited to, a limited operating history with no
earnings; reliance on the Company&#146;s management team, members of which have
other business</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">interests; the
ability to successfully implement the Company&#146;s business plan; the ability to
continue as a going concern; the ability to fund the Company&#146;s business and
acquisition strategy; the growth of the temporary healthcare professional
staffing business; difficulty in managing operations of acquired businesses;
uncertainty in government regulation of the healthcare industry; and the
limited public market for the Company&#146;s common stock.&#160; The actual results that the Company achieves
may differ materially from any forward-looking statements due to such risks and
uncertainties.&#160; Crdentia undertakes no
obligation to revise or update publicly any forward-looking statements for any
reason.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
