Document:

Exhibit 10.33

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THIS PROMISSORY NOTE
HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY, AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION
MAY BE EFFECTED UNLESS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT RELATED
THERETO, OR AN EXEMPTION FROM SUCH REGISTRATION STATEMENT REQUIREMENTS.

                             SECURED PROMISSORY NOTE

Principal Amount:  $400,000.00                   San Francisco, California
Interest Rate:  5.00% per annum                           February 2, 2005

            FOR  VALUE  RECEIVED,  the  undersigned,   Crdentia  Corp.,  a
Delaware  corporation  ("Crdentia"),  Baker  Anderson  Christie,  Inc.,  a
California  corporation,  Nurses Network, Inc., a California  corporation,
New Age  Staffing,  Inc.,  a Delaware  corporation,  PSR Nurses,  Ltd.,  a
Texas  limited   partnership,   PSR  Nurse   Recruiting,   Inc.,  a  Texas
corporation,  PSR Nurses Holdings Corp., a Texas corporation,  CRDE Corp.,
a Delaware  corporation,  Arizona Home Health  Care/Private Duty, Inc., an
Arizona  corporation,  and Care Pros  Staffing,  Inc, a Texas  corporation
(each  individually  and referred to  collectively  as "Issuer"),  jointly
and  severally  promise to pay to MedCap  Partners  L.P., or any assignees
of the Note  ("Holder"),  by wire  transfer to such  account as Holder may
from  time to time  designate  in  writing,  the  principal  amount of Two
Hundred Fifty Thousand  Dollars  ($400,000.00)  (the  "Principal  Amount")
payable at such times as  specified  in  paragraph  1 below.  Issuer  also
promises to pay interest on the unpaid  principal  amount from the date of
this Note  until  this Note is paid in full,  at the rate of five  percent
(5.00%) per annum,  at such times as  specified  in this  Agreement.  This
Note is executed  and  delivered  pursuant  to, and in  recognition  of, a
loan of $400,000 made by Holder to Issuer on the date hereof.

            1. Principal Payment. The Principal Amount shall be payable to
Holder on the earlier of (i) two business days (as defined below) following the
date of Crdentia's receipt of written demand by Holder requesting such payment
or (ii) the date on which Crdentia completes a private offering or offerings of
its equity securities (whether such offering or offerings consist of one or more
transactions) in an amount of not less than $5.0 million (the "Maturity Date").
All payments shall be made in immediately available funds in lawful currency of
the United States of America, without offset, deduction or counterclaim of any
kind. A "business day" shall mean any day except Saturday, Sunday or any day
that is a legal holiday in the State of California. Holder may make written
demand by facsimile, email or other usual means of communication between Holder
and Crdentia.

                                      -3-
<PAGE>

            2. Interest. Prior to the Maturity Date or the occurrence of an
Event of Default (as defined in paragraph 3 below), the unpaid Principal Amount
periodically outstanding under this Note shall bear simple interest at the rate
of five percent (5.00%) per annum, calculated on the basis of a 365-day year,
based on the actual number of days elapsed (including the first day, but
excluding the last day). All accrued and unpaid interest on this Note shall be
due and payable on the Maturity Date. After the Maturity Date or upon the
occurrence and during the continuation of any Event of Default, any unpaid
Principal Amount or accrued interest shall bear interest at the rate of ten
percent (10%) per annum until paid in full.

            3. Events of Default. The occurrence of any of the following events
shall constitute an event of default under this Note: (a) Issuer's failure to
pay the Principal Amount when due and payable; (b) any Issuer making an
assignment for the benefit of its creditors; (c) any Issuer filing (or
consenting to the filing of) any petition or complaint pursuant to federal or
state bankruptcy or insolvency laws, seeking the appointment of a receiver or
trustee for any of its assets, seeking the adjudication of such Issuer as
bankrupt or insolvent, seeking an "order for relief" under such statutes, or
seeking a reorganization of or a plan of arrangement for Issuer; or (d) any
default or breach by any Issuer of or under any agreement for borrowed money,
including loan agreements, or breach under any capital equipment lease
agreement, by which such Issuer is bound or obligated following the expiration
of any applicable grace period. Upon the occurrence of an Event of Default, the
entire Principal Amount then outstanding, together with accrued and unpaid
interest, shall become immediately due and payable.

            4. Amended and Restated Security Agreement. This Note is executed
and delivered together with an Amended and Restated Security Agreement (the
"Security Agreement"), entered into as of November 29, 2004 and as amended and
restated on January 4, 2005 and February 2, 2005, between Holder and Issuer
(Issuer therein referred to as "Grantor") by which Grantor has granted Holder a
security interest in the right, title, and interest in and to all of Grantor's
Collateral (as defined in the Security Agreement), subject to the liens and
encumbrances on the Collateral existing as of the date hereof.

            5. Subordination. The indebtedness evidenced by this Note is
expressly junior and subordinate in right of payment to the prior payment in
full of all of Issuer's indebtedness under (i) that certain Loan and Security
Agreement, dated as of June 16, 2004, by and among Crdentia and its
subsidiaries, on the one hand, and Bridge Healthcare Finance, LLC, on the other
hand (the "Revolving Loan Agreement"), and (ii) that certain Loan and Security
Agreement, dated as of August 31, 2004, by and among Crdentia and its
subsidiaries, on the one hand, and Bridge Opportunity Finance, LLC, on the other
hand (the "Term Loan Agreement" and, together with the Revolving Loan Agreement,
the "Loan Agreement"). Notwithstanding anything herein to the contrary, no
payment of principal or interest shall be made on this Note if there exists any
default, or the existence of any event which, with the giving of notice, would
constitute a default, in the payment of any indebtedness under the Loan
Agreement, as determined by the terms of the Loan Agreement. Holder agrees to
execute all subordination documents reasonably required by Bridge Healthcare
Finance, LLC and/or Bridge Opportunity Finance, LLC.

                                      -4-
<PAGE>

            6. Prepayment. This Note may be prepaid, at the option of Issuer, in
whole or in part, at any time or from time to time, without penalty or premium;
provided, however, that any prepayment shall be applied first to the Principal
Amount then outstanding until paid in full and then to accrued and unpaid
interest as of the date of such prepayment. In the event that Issuer sells any
of the Collateral (as defined in the Security Agreement), the net proceeds from
such sale shall be applied as set forth in the Security Agreement and, to the
extent any proceeds are required to be applied to the payment of the Principal
Amount and interest hereunder, in accordance with the preceding sentence.

            7. Maximum Rate of Interest. In no event shall any interest rate
provided for hereunder exceed the maximum rate legally chargeable by Holder
under applicable law. If at any time such laws would render usurious any amount
due under this Note, then it is the express intention of Holder and Issuer that
Issuer not be required to pay interest on this Note at a rate in excess of the
maximum lawful rate, that the provisions of this paragraph 7 shall control over
all other provisions of this Note which may be in apparent conflict, that such
excess amount shall be immediately credited to the principal balance owing under
this Note (or, if this Note has been fully repaid, refunded by Holder to
Issuer), and the provisions hereof shall be immediately reformed and the amounts
thereafter decreased, so as to comply with the then applicable usury law, but so
as to permit the recovery of the fullest amount otherwise due under this Note.
Any credit or refund shall not cure or waive any default by Issuer under this
Note. For the purposes of this paragraph 7, the term "applicable law" means the
laws of the State of California, as such laws now exist or may be changed or
amended or come into effect in the future.

            8. Holder Representations.

                  (a) This Note is being acquired for Holder's own account, not
as a nominee or agent, and not with a view to the resale or distribution of any
part hereof in violation of the Securities Act of 1933, as amended (the "1933
Act"), and Holder has no present intention of selling, granting any
participation in, or otherwise distributing this Note in violation of the 1933
Act.

                  (b) Holder acknowledges that it can bear the economic risk of
complete loss of its investment in this Note and has such knowledge and
experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment in this Note. Holder acknowledges that there
are substantial risks incident to the ownership of this Note, and such
investment is speculative and involves a high degree of risk of loss by Holder
of Holder's entire investment in the Issuer

                  (c) Holder has had an opportunity to receive all information
related to Issuer requested and to ask questions of and receive answers from
Issuer regarding Issuer and its business. Holder has reviewed the reports and
other documents filed by Issuer with the Securities and Exchange Commission.

                  (d) Holder acknowledges and understands that this Note is a
"restricted security" under the 1933 Act.

                  (e) Holder is an "accredited investor" as defined by Rule 501
or Regulation D promulgated under the 1933 Act.

                                      -5-
<PAGE>

            9. No Waiver. No extension of time for payment of any amount owing
hereunder shall affect the liability of Issuer or any person or entity, now or
at any time hereafter, liable for payment of the indebtedness evidenced hereby.
No delay by Holder in exercising any power or right hereunder shall operate as a
waiver of any power or right hereunder.

            10. Attorneys' Fees. If any action or proceeding is brought by
Holder to enforce payment of this Note, then the prevailing party shall be
entitled to recover its reasonable costs and expenses (including without
limitation attorneys' fees, experts fees, etc.) associated therewith. In
addition, upon the payment in full of the Principal Amount, Issuer agrees to pay
to Holder the reasonable legal fees, not to exceed $15,000, incurred by MedCap
Partners L.P. in connection with the review and preparation of this Note and the
Security Agreement and any related filings to protect Holder's security
interests.

            11. Waiver of Presentment, etc. Each Issuer, for itself and its
respective successors and assigns, hereby expressly waive presentment, demand,
protest, notice of protest, dishonor, notice of dishonor and any other notice of
any type or nature. No waiver or modification of the terms of this Note shall be
valid unless in writing and signed by the holder hereof.

            12. Severability. If any provision of this Note is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of
this Note shall remain in full force and effect. Any provision of this Note held
invalid or unenforceable only in part or degree shall remain in full force and
effect to the extent not held invalid or unenforceable.

            13. Time of Essence. Time is of the essence with regard to all dates
set forth in this Note.

            14. Assignment and Transfer. No Issuer may assign or otherwise
transfer its rights or obligations under this Note without the prior written
consent of Holder. Any purported assignment or transfer in contravention of this
paragraph 14 shall be null and void. Subject to the foregoing, this Note shall
be binding upon the successors and assigns of Issuer, and shall inure to the
benefit of and be enforceable by the successors and assigns of Holder. Holder
agrees that it shall not transfer this Note (a) in violation of the 1933 Act or
any state securities laws and (b) unless pursuant to an effective registration
statement or an exemption from such registration statement requirements.

            15. Governing Law. This Note shall be construed in accordance with
and governed by the laws of the State of California, without regard to conflict
of laws principles.

                            [signature pages follow]

                                      -6-
<PAGE>

            IN WITNESS WHEREOF, the undersigned have executed this Note as of
the date first written above.

                                        CRDENTIA CORP.

                                        By: /s/ James D. Durham

                                        Name:________________________

                                        Title:__________________________

                                        BAKER ANDERSON CHRISTIE, INC.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                        NURSES NETWORK, INC.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                      -7-
<PAGE>

                                        NEW AGE STAFFING, INC.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                        PSR NURSES, LTD.

                                        By: /s/ James D. Durham

                                        Its:  General Partner

                                        By:_________________________________

                                        Name:_______________________________

                                        Title:________________________________

                                        PSR NURSE RECRUITING, INC.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                      -8-
<PAGE>

                                        PSR NURSES HOLDINGS CORP.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                        CRDE CORP.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                        ARIZONA HOME HEALTH CARE/PRIVATE DUTY,
                                        INC.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                        CARE PROS STAFFING, INC.

                                        By: /s/ James D. Durham

                                        Name:_______________________________

                                        Title:________________________________

                                      -9-
<PAGE>

Acknowledged and Agreed to:

MEDCAP PARTNERS L.P.

By:  MedCap Management & Research LLC
Its: General Partner

By:  /s/ C. Fred Toney
     Name:  C. Fred Toney
     Title: Managing Member

                                      -10-CERTIFICATE OF DESIGNATION
                          OF RIGHTS AND PREFERENCES OF
                           SERIES A PREFERRED STOCK OF
                                 BIDVILLE, INC.

      Pursuant to N.R.S. 78.1955, Bidville, Inc. (the "Company") hereby amends
its Articles of Incorporation as follows:

      I. The Company's Articles of Incorporation shall be amended by adding the
following after the existing provisions of such article:

      1. DESIGNATION, AMOUNT, PAR VALUE, AND RANK. The Company hereby designates
the issuance of a series of Preferred Stock to be called the "Series A
Convertible Preferred Stock" (the "Series A Preferred Stock"). The total number
of shares of Series A Preferred Stock that the Company shall have the authority
to issue is Three Thousand Five Hundred (3,500). Each share of Series A
Preferred Stock shall have a par value of $.001 per share. The face amount shall
be One Thousand Dollars ($1,000.00) per share (the "Face Amount").

      2. VOTING RIGHTS. The Series A Preferred Stock shall not be entitled to
any voting rights. The holders of the Series A Preferred Stock shall have no
voting power whatsoever, except as otherwise provided by the Nevada Business
Corporations Act (the "NBCA"), and in this Certificate of Designation. To the
extent that under the NBCA the vote of the holders of the Series A Preferred
Stock, voting separately as a class or series, as applicable, is required to
authorize a given action of the Company, the affirmative vote or consent of the
holders of at least a majority of the then outstanding shares of the Series A
Preferred Stock represented at a duly held meeting at which a quorum is present
or by written consent of the holders of a majority of the shares of Series A
Preferred Stock (except as otherwise may be required under the NBCA) shall
constitute the approval of such action by the class. To the extent that under
the NBCA holders of the Series A Preferred Stock are entitled to vote on a
matter with holders of Common Stock, voting together as one class, each share of
Series A Preferred Stock shall be entitled to a number of votes equal to the
number of shares of Common Stock into which it is then convertible using the
record date for the taking of such vote of stockholders as the date as of which
the Conversion Price is calculated.

      3. DIVIDEND PROVISIONS. "Dividend" means initially an amount equal to
(Rate)x(N/365)x(Face Amount), where the "Rate" shall initially be equal to .06
(subject to adjustment as provided below) and "N" means the number of days from
the Dividend Commencement Date (as defined below) or the date that the last
payment of the Dividend was made in full, as applicable. Dividends on the
outstanding shares of Series A Preferred Stock shall accrue and shall be
cumulative from the date on which at least Two Thousand Five Hundred (2,500)
Shares of Series A Preferred Stock has been issued (the "Dividend Commencement
Date"). For each outstanding share of Series A Preferred Stock, Dividends shall
be payable cumulatively, at the applicable rate, (a) upon any conversion of each
share of Series A Preferred Stock, and (b) within ten (10) days following the
expiration of each calendar quarter after the date of issuance of such share of
Series A Preferred Stock (each, a "Dividend Payment Date"), and continuing until
such share is fully converted or fully redeemed, except that if any Dividend
Payment Date is not a business day, then such Dividend Payment Date shall be the
immediately following business day. Payment of the Dividend shall be made by the
Company in cash.

<PAGE>

      4. LIQUIDATION PREFERENCE.

            (a) In the event of any liquidation, dissolution or winding up of
the Company, either voluntary and involuntary, the holders of each share of the
Series A Preferred Stock shall be entitled to receive, prior and in preference
to any distribution of any of the assets or surplus funds of the Company to the
Common Stock holders, an amount equal to (i) all declared and unpaid dividends
on each such share; plus (ii) an amount per share equal to greater of (A) the
original Face Amount, as adjusted for any stock splits, stock dividends,
recapitalizations or similar occurrences, as set forth in Section 5(d) herein,
plus interest of 8% per annum on such original issue price (as adjusted)
accumulated, but not compounded, from the date of issuance to the date on which
the liquidation preference is paid or (B) the amount that would be receivable if
the Series A Preferred Stock had been converted into Common Stock immediately
prior to such liquidation distribution. In the event the assets and funds of the
Company are insufficient to pay the entire liquidation preference of the Series
A Preferred Stock, the holders thereof will share ratably in the assets and
funds of the Company in proportion to the preferential amount each such holder
is otherwise entitled to receive.

            (b) A consolidation or merger of the Company with or into any other
company or company's wherein the Company is not the surviving company or the
Company's shareholders do not constitute a majority of the shareholders of the
surviving company, or a sale of all or substantially all of the assets of the
Company to a company in which the Company's shareholders are not the majority
shareholders, shall be deemed to be a liquidation, dissolution or winding up for
purposes of this section, unless waived.

      5. CONVERSION RIGHTS.

            (a) Right to Convert. Each share of Series A Preferred Stock shall
be convertible, at the option of the holder thereof, at any time after the date
of issuance of such share at the office of the Company or any transfer agent for
such stock, into such number of fully paid and nonassessable shares of Common
Stock as is determined by dividing the Face Amount by $.60 (the "Series A
Conversion Price"), determined as hereinafter provided, in effect on the date
the certificate is surrendered for conversion. Such initial Series A Conversion
Price shall be adjusted as hereinafter provided.

            (b) Mechanics of Conversion. Before any holder of Series A Preferred
Stock shall be entitled to convert the same into full shares of Common Stock,
such holder shall surrender the original certificate or certificates therefor,
endorsed or accompanied by written instrument or instruments of transfer, in
form satisfactory to the Company, duly endorsed by the registered holder, at the
office of the Company or of any transfer agent for the Common Stock, and shall
give prior written notice to the Company at such office that such holder elects
to convert the same or such portion thereof as such holder elects to convert the
same via a signed copy of the "Notice of Conversion" annexed hereto. "Conversion
Date" means, for any Conversion, the date specified in the Notice of Conversion,
so long as a copy of the Notice of Conversion is faxed (or delivered by other
means resulting in notice) and such holder shall surrender the original

<PAGE>

certificate or certificates therefor, endorsed or accompanied by written
instrument or instruments of transfer, in form satisfactory to the Company, duly
endorsed by the registered holder to the Company before 11:59 p.m., time at the
location of the Company's executive offices, on the Conversion Date indicated in
the Notice of Conversion; provided, however, that if the Notice of Conversion is
not so faxed or otherwise delivered before such time, then the Conversion Date
shall be the date the holder faxes or otherwise delivers the Notice of
Conversion to the Corporation. The Company shall, as soon as practicable
thereafter, issue and deliver to such holder of Series A Preferred Stock, or to
such holder's nominee or nominees, a certificate or certificates for the number
of shares of Common Stock to which such holder shall be entitled as aforesaid.
Such conversion shall be deemed to have been made immediately prior to the close
of business on the date of such surrender of the shares of Series A Preferred
Stock to be converted, and the person or persons entitled to receive the shares
of Common Stock issuable upon conversion shall be treated for all purposes as
the record holder or holders of such shares of Common Stock on such date. From
and after such date, all rights of the holder with respect to the Series A
Preferred Stock so converted shall terminate, except only the right of such
holder, upon the surrender of his, her or its certificate or certificates
therefor, to receive certificates for the number of shares of Common Stock
issuable upon conversion thereof. Upon conversion of only a portion of the
number of shares covered by a certificate representing shares of Series A
Preferred Stock surrendered for conversion, the Company shall issue and deliver
to the holder of the certificate so surrendered for conversion, at the expense
of the Company, a new certificate covering the number of shares of the Series A
Preferred Stock representing the unconverted portion of the certificate so
surrendered, which new certificate shall entitle the record holder thereof to
all rights in respect of the shares of Series A Preferred Stock represented
thereby to the same extent as if the portion of the certificate theretofore
covering such unconverted shares had not been surrendered for conversion.

            (c) Adjustments to Series A Conversion Price for Price Protection.
If the Company, at any time as long as Series A Preferred Stock are outstanding,
issues shares of common stock, warrants or instruments that are convertible into
shares of the Company's Common Stock at a price per share below the then current
Conversion Price of the outstanding Series A Preferred Stock then the conversion
price of the Series A Preferred Stock shall be adjusted to the price that the
shares or warrants or instruments that are convertible into common stock are
issued at. If the Company issues any shares, warrants or instruments that are
convertible into shares of Company Common Stock at a price less than 1 cent,
then the Conversion Price shall be lowered to one cent ($0.01). Notwithstanding
the foregoing, there shall be no adjustment for any options to purchase shares
of Common Stock granted by the Company under the Company option plan then in
effect.

            (d) Adjustments to Series A Conversion Price for Combinations or
Subdivisions of Common Stock. In the event that the Company at any time or from
time to time after the Original Issue Date shall declare or pay any dividend on
the Common Stock payable in Common Stock or in any right to acquire Common
Stock, or shall effect a subdivision of the outstanding shares of Common Stock
into a greater number of shares of Common Stock (by stock split,
reclassification or otherwise than by payment of a dividend in Common Stock or
in any right to acquire Common Stock), or in the event the outstanding shares of
Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Common Stock, then the Series A
Conversion Price in effect immediately prior to such event shall, concurrently
with the effectiveness of such event, be proportionately decreased or increased,
as appropriate. In the event that the Company shall declare or pay, without
consideration, any dividend on the Common Stock payable in any right to acquire
Common Stock for no consideration then the Company shall be deemed to have made
a dividend payable in Common Stock in an amount of shares equal to the maximum
number of shares issuable upon exercises of such rights to acquire Common Stock.

            (e) Adjustments for Reclassifications and Reorganizations. If the
Common Stock issuable upon conversion of the Series A Preferred Stock shall be
changed into the same or a different number of shares of any other class or
classes of stock, whether by capital reorganization, reclassification or
otherwise (other than a subdivision or combination of shares provided for in
Section 5(d) above or a merger or other reorganization referred to in Section
4(b) above), the Series A Conversion Price then in effect shall, concurrently
with the effectiveness of such reorganization or reclassification, be
proportionately adjusted so that the Series A Preferred Stock shall be
convertible into, in lieu of the number of shares of Common Stock which the
holders would otherwise have been entitled to receive, a number of shares of
such other class or classes of stock equivalent to the number of shares of
Common Stock that would have been subject to receipt by the holders upon
conversion of the Series A Preferred Stock immediately before that change.

            (f) Adjustment for Late Payment of Dividends. In the event the
Company fails to pay the Dividends within twenty one (21) calendar days after
the Dividend Payment Date, and for so long as such payment remains overdue and
unpaid, the Series A Conversion Price shall be equal to the lesser of the
following: (1) the then existing Series A Conversion Price; or (2) Seventy
percent (70%) of the average Closing Bid Price of the Company's Common Stock on
the five trading days immediately preceding a Conversion Date. "Closing Bid
Price" means, for any security as of any date, the last bid price of such
security on the principal trading market where such security is listed or traded
as reported by Bloomberg Financial Markets (or a comparable reporting service of
national reputation selected by the Company and reasonably acceptable to the

<PAGE>

holders of a majority of the Series A Preferred Stock then outstanding if
Bloomberg Financial Markets is not then reporting closing sales prices of such
security) (collectively, "Bloomberg"), or if the foregoing does not apply, the
last reported bid price of such security on a national exchange or in the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg, or, if no such price is reported for such security by
Bloomberg, the average of the bid prices of all market makers for such security
as reported in the "pink sheets" by the National Quotation Bureau, Inc., in each
case for such date or, if such date was not a trading day for such security, on
the next preceding date that was a trading day. If the Closing Bid Price cannot
be calculated for such security as of either of such dates on any of the
foregoing bases, the Closing Bid Price of such security on such date shall be
the fair market value as reasonably determined by an investment banking firm
selected by the Company and reasonably acceptable to the holders of a majority
of the Series A Preferred Stock then outstanding, with the costs of such
appraisal to be borne by the Company.

      6. AMENDMENT. Any term relating to the Series A Preferred Stock may be
amended and the observance of any term relating to the Series A Preferred Stock
may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the vote or written consent of holders
of at least fifty-one percent (51%) of all Series A Preferred Stock then
outstanding; provided, however, that in determining whether the holders of the
requisite shares of Series A Preferred Stock have given any vote, consent or
other authorization, shares of Series A Preferred Stock owned by the Company or
any subsidiary thereof shall be disregarded and not be deemed to be outstanding.
Any amendment or waiver so effected shall be binding upon the Company and all
holders of Series A Preferred Stock.

      7. NO REISSUANCE OF SERIES A PREFERRED STOCK. No share or shares of Series
A Preferred Stock acquired by the Company by reason of conversion or otherwise
shall be reissued, and all such shares shall be canceled, retired and eliminated
from the shares which the Company shall be authorized to issue.

      8. REDEMPTION RIGHTS.

            (a) Redemption. Unless all of the Series A Preferred Stock has been
converted to Common Stock pursuant to Section 5, the Company may, but is not
obligated to, redeem any or all shares of then outstanding Series A Preferred
Stock. Any holder of shares of Series A Preferred Stock may, in its sole
discretion, (a) accept or reject any redemption offer, provided however, in the
event that the holder of a Series A Preferred Stock rejects the redemption
offer, such holder must convert their Series A Preferred Stock into Common Stock
at the Conversion Rate within fourteen (14) days after receipt of the Redemption
Notice. The redemption price (the "Redemption Price") of the Series A Preferred
Stock shall be equal to the Face Amount per share.

            (b) Redemption Notice. If the Company elects to redeem the shares of
Series A Preferred Stock, then the Company shall, not less than fourteen (14)
days prior to the date fixed for redemption ("Redemption Date"), mail written
notice ("Redemption Notice"), postage prepaid, to each holder of shares of
record of Series A Preferred Stock to be redeemed, at such holder's post office
address last shown on the records of the Company. The Redemption Notice shall:
state the total number of shares of Series A Preferred Stock which the Company
is offering to redeem; state the number of shares of Series A Preferred Stock
held by the holder which the Company is offering to redeem; confirm the
Redemption Date and Redemption Price; and state the time, place and manner in
which the holder may elect to surrender to the Company the certificate or
certificates representing the shares of Series A Preferred Stock to be redeemed.

            (c) Surrender of Stock. On or before the Redemption Date, each
holder of Series A Preferred Stock electing to be redeemed shall surrender the
certificate or certificates representing such shares to the Company, in the
manner and at the place designated in the Redemption Notice, and thereupon the
Redemption Price for such shares shall be payable to the order of the person
whose name appears on such certificate or certificates as the owner thereof, and
each surrendered certificate shall be canceled and retired.

<PAGE>

            (d) Termination of Rights. If the Redemption Notice is duly given,
and if, on or prior to the Redemption Date, a holder of the Series A Preferred
Stock elects to have her, his or its shares redeemed and the Redemption Price is
either paid or made available for payment, then notwithstanding that the
certificates evidencing any of the shares of Series A Preferred Stock so called
for redemption have not been surrendered, all rights with respect to such shares
shall forthwith after the Redemption Date cease except only (i) the right of the
holders to receive the Redemption Price without interest upon surrender of their
certificates therefor, or (ii) the right to receive Common Stock upon exercise
of the conversion rights as provided in Section 5 hereof on or prior to the
Redemption Date.

            (e) No Redemption. The shares of Series A Preferred Stock shall not
be redeemable under any circumstances whatsoever, except as provided in this
Section 8 or to the extent otherwise agreed to in writing by the Company and the
holders of any such shares.

            (f) Adjustment for Certain Dividends and Distributions. If the
Company, at any time or from time to time, makes or issues or fixes a record
date for the determination of holders of shares of the Series A Preferred Stock
entitled to receive a dividend or other distribution payable in additional
shares of such Series A Preferred Stock, then and in each such event the
Redemption Price for the Series A Preferred Stock then in effect shall be
decreased as of the time of such issuances or, in the event such record date is
fixed, as of the close of business on such record date, by multiplying the
Redemption Price for the Series A Preferred Stock then in effect by a fraction
(a) the numerator of which is the total number of shares of Series A Preferred
Stock issued and outstanding immediately prior to the time of such issuance or
the close of business on such record date, and (b) the denominator of which
shall be the total number of shares of the Series A Preferred Stock issued and
outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Series A Preferred
Stock issuable in payment of such dividend or distribution; provided, however,
that if such record date is fixed and such dividend is not fully paid or if such
distribution is not fully made on the date fixed therefor, the Redemption Price
for the Series A Preferred Stock shall be recomputed accordingly as of the close
of business on such record date and thereafter the Redemption Price for the
Series A Preferred Stock shall be adjusted pursuant to this Section 8(f) as of
the time of actual payment of such dividends or distributions.

      9. MISCELLANEOUS PROVISIONS.

            (a) The Company shall not engage in a transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, in order to avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed hereunder by the
Company and will at all times in good faith assist in the carrying out of all
the provisions of and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the holders of the
Series A Preferred Stock against impairment.

            (b) The Company shall at all times reserve and keep available out of
its authorized but unissued shares of Common Stock, solely for the purpose of
effecting the conversion of the shares of the Series A Preferred Stock, such
number of its shares of Common Stock as shall from time to time be sufficient to
effect the conversion of all outstanding shares of the Series A Preferred Stock;
and if at any time the number of authorized but unissued shares of Common Stock
shall not be sufficient to effect the conversion of all then outstanding shares
of the Series A Preferred Stock, the Company will take such corporate action as
may, in the opinion of its counsel, be necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient
for such purpose, including, without limitation, engaging in best efforts to
obtain the requisite shareholder approval of any necessary amendment to its
Articles of Incorporation.

<PAGE>

            (c) No fractional share shall be issued upon the conversion of any
share or shares of Series A Preferred Stock. All shares of Common Stock
(including fractions thereof) issuable upon conversion of more than one share of
Series A Preferred Stock by a holder thereof shall be aggregated for purposes of
determining whether the conversion would result in the issuance of any
fractional share. If, after the aforementioned aggregation, the conversion would
result in the issuance of a fraction of a share of Common Stock, the Company
shall, round the number of shares to be issued upon conversion up to the next
whole number.

            (d) Any notices required or permitted to be given under the terms
hereof shall be sent by certified or registered mail (return receipt requested)
or delivered personally, by nationally recognized overnight carrier or by
confirmed facsimile transmission, and shall be effective five days after being
placed in the mail, if mailed, or upon receipt or refusal of receipt, if
delivered personally or by nationally recognized overnight carrier or confirmed
facsimile transmission, in each case addressed to a party.

         IN WITNESS WHEREOF, the undersigned, being the President of the
Company, has executed this Certificate of Designation this 9th day of May, 2005.

-----------------------
Name:  Michael Palandro
Title: President

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