Document:

Exhibit 10.85

	
  

  	
  *** Certain confidential information contained in
  this document (indicated by asterisks) has been omitted and filed separately
  with the Securities and Exchange Commission pursuant to a request for
  Confidential Treatment under 17 C.F.R. Sections 200.80(b)(4), 200.83 and
  230.406.

  

 

SYSTRAN
FINANCIAL SERVICES CORPORATION FACTORING AGREEMENT

This Factoring
Agreement dated February 8, 2007 (the “Agreement”) is between SYSTRAN Financial
Services Corporation (“SYSTRAN”) and its successor or assigns and Arizona Home
Health Care/Private Duty, Inc., Care Pros Staffing, Inc., Baker Anderson
Christie, Inc., New Age Staffing, Inc., PSR Nurses, Ltd., and Nurses Network,
Inc. (individually and collectively the “Customer” or “Customers”), whose
addresses are set forth on the last page hereof.

1.                                      DEFINITIONS

All capitalized terms
used and not defined in this Agreement shall have the meaning in the Uniform
Commercial Code as in effect from time to time in Oregon (the “UCC”).  The following terms shall have the following
meaning.

(a)          “Bill(s)”
means any right to payment for services rendered or goods sold by Customer to a
Debtor evidenced by a writing which complies with the general requirements of
SYSTRAN as those may be set forth in the Customer Information Manual, as
described in Paragraph 2.5.

(b)         “Chargeback”
the debit of a Bill or a “Special Purchase Bill(s)” to a Customers’ account.

(c)          “Commencement Date”
means the date that the Customer first receives funds from SYSTRAN pursuant to
the terms of the Agreement.

(d)         “Commercial Account”
means any non “Transportation Account”.

(e)          “Debtor”
means a person or entity obligated to pay a Bill.

(f)            Material Adverse Effect” means, at any time, a material adverse
effect upon (i) the business, condition (financial or otherwise), operations,
performance, properties or prospects of Customer, (ii) the ability of Customer
to perform its respective obligations under this Agreement, any factoring
document or any document, agreement, guaranty, or instrument executed in
connection herewith, or (iii) the ability of SYSTRAN to enforce the terms of
this Agreement, or any document, agreement, guaranty, or instrument executed in
connection herewith.

(g)         “Maximum Approved Credit Line” means the amount
of credit that is approved for Customer by SYSTRAN inclusive of deposit and
advances against purchases of Bills that Customers’ total account is not to
exceed.

(h)         “Maximum Debtor Credit Limit” means the maximum
outstanding dollar amount and/or percentage concentration of Customers’ unpaid
Bills open with SYSTRAN owing by an individual Debtor and/or its affiliates at
any given time under the term of the Agreement.

(i)             “Minimum
Anticipated Volume” means the dollar amount of Bills funded by SYSTRAN that
Customer presents each month during the term of the Factoring Agreement for
purchase by SYSTRAN that meet the Maximum Approved Credit Line criteria and
Maximum Debtor Credit Limit(s) established from time to time at the sole
discretion of SYSTRAN in connection with Customers’ account.

(j)             “Obligation”
means all indebtedness, liabilities and obligations whatsoever and of whatever
nature owed by each Customer to SYSTRAN, or any of its affiliates, whether
direct or indirect, absolute or contingent, due or to become due, now existing
or hereafter arising and how ever evidenced or acquired, whether joint or
several or joint and several.

(k)          “Recourse”
means the right to Chargeback a Bill(s) or “Special Purchase Bill(s)” to
Customer.

(l)             “Special
Purchase Bill(s)” means the purchase by SYSTRAN of Customers’ outstanding
and unpaid Bills that have either been previously billed by Customer, financed
by a lender, or sold and assigned to another company who buys Bills.  Special Purchase Bills shall be subject to
all provisions of this Agreement.

(m)       “Transportation
Account” means any Debtor doing business primarily with any aspect of the
transportation industry such as freight carriers, brokers, forwarders,
consolidators, and rail agents with the exception of steamship companies.

2.                                      PURCHASE OF BILLS

2.1                                 Customer
agrees to present on a monthly basis, a Minimum Anticipated Volume of Bills for
SYSTRAN to purchase which shall be equal to ***.  SYSTRAN, at its sole discretion, may purchase
such Bills.  Bill(s) and or Special
Purchase Bill(s) shall herein collectively be referred to as “The Bill(s)”.  Customer shall
submit to SYSTRAN an original and one (1) copy, along with any document which
SYSTRAN deems necessary, of each Bill which shall be attached to a schedule
form provided by SYSTRAN.  Should
any Debtor require any additional documentation as a prerequisite to payment,
Customer will also provide such documentation with each Bill. For a
Transportation Account, Customer shall also submit one (1) copy of the
respective bill of lading. The bill of lading must be signed by the Customer,
the shipper, and the consignee if the consignee’s signature is necessary for
payment.

2.2                                 SYSTRAN
will settle with the Customer by providing to Customer by U.S. Mail, electronic
mail, or via facsimile a settlement statement setting forth The Bill(s) and/or
Special Purchase Bills purchased, the amount paid, and any deductions made for
fees, charges or the “Deposit” and deposit funds as follows: [Customer shall choose one option].  ̈
Deliver overnight funds due Customer via Federal Express next day service air.  ̈
Wire transfer funds due Customer into bank account specified by Customer on
wire authorization form.  ̈ ACH funds due
Customer.

2.3                                 Any
payment to Customer may be reduced by SYSTRAN by any amount due from Customer
to SYSTRAN, including but not limited to Chargebacks, fees and costs.

2.4                                 SYSTRAN
may give notice to the Debtors of the assignment of  The Bill(s) by placing a legend on The
Bill(s) stating The Bill(s) have been sold and assigned to SYSTRAN and are
payable to SYSTRAN at an address designated by SYSTRAN.  Customer will not attempt to direct payment
to any place other than to the SYSTRAN designated address.  Customer, jointly and severally, agrees to
pay all costs and expenses incurred by SYSTRAN in giving such notice.  All proceeds of The Bill(s) received by
Customer shall be delivered to SYSTRAN within two (2) business days of receipt in
the identical form of payment received by Customer, provided that Customer
shall be deemed to hold such proceeds in trust and for the benefit of SYSTRAN
until such delivery is made to SYSTRAN. 
In the event that Customer collects directly from the Debtor, The
Bill(s) which have been sold to SYSTRAN and Customer does not deliver
immediately to SYSTRAN the identical form of payment received by Customer,
Customer will be charged an administrative fee equal to *** of the face amount
of The Bill(s) collected directly. 
Customer agrees that any collection directly from the Debtor by Customer
of The Bill(s) which have been sold to SYSTRAN will be considered a default
under the terms of this Agreement.

2.5                                 SYSTRAN
has or will provide to Customer a Customer Information Manual, which is a guide
to policy and procedures concerning daily submission of The Bill(s), collection
efforts, and other matters.  The Customer
Information Manual (the “Manual”) is not part of this Agreement. The procedures
set forth in the Manual are only guidelines to ensure the efficient operation
of SYSTRAN’s purchase of The Bill(s). 
SYSTRAN may change any procedure in the Manual at any time, and may
choose not to follow procedures in the Manual at its discretion.

3.                                      FEE(S)

3.1                                 SERVICE
FEE(S).  Customer, jointly and severally,
shall pay a fee on the face amount of all of The Bill(s) purchased by SYSTRAN
as reflected on Exhibit A attached hereto (the “Service Fee(s)”).  The Service Fee(s) shall be payable upon the
purchase of any of The Bill (s) by SYSTRAN, and SYSTRAN may collect Service
Fee(s) either from payments owed to Customer or may bill the Customer periodically.  SYSTRAN may, upon prior notice to Customer,
change any fee and such change shall be effective upon receipt of the notice to
Customer; provided, that SYSTRAN may change the

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

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amount
of any fee caused by a change in SYSTRAN’s cost of funds without prior notice
to Customer, but must notify Customer of such change on Customers’ next settlement
statement.  A fee change due to a change
in cost of funds will be effective upon the date of the change which will be
reflected on Customers’ settlement statement. 
If, at any time during the term of this Agreement, there is an event of
default by Customer including, but not limited to, a Federal Tax Lien filed
against and attaching to the property of Customer or any of its principals, and
the tax lien is satisfied to allow continued funding pursuant to this
Agreement, until such time as such event of default is cured, SYSTRAN shall
increase all of Customers’ Service Fee(s) by no less than *** discount fee on
the face of The Bill(s).  Notwithstanding
the discretion granted to SYSTRAN under this Section 3.1 to increase fees upon
prior notice to Customer, any such fee increase shall not exceed *** of the
fees in effect at the time of such increase, provided that such restriction
shall not apply to or include: (i) any increase in the Services Fees that
results from an event of default, (ii) any increase in the Prime Plus Fee or
fees attributed to Clearance Days that occur strictly as a result of a change
in the Prime Rate (as defined in Exhibit A to this Agreement), or (iii) any
increase that results from an amendment or modification to the terms of this factoring
arrangement and evidenced in a writing signed by Customer.

3.2                                 MINIMUM
FEE. In the event that Customer fails to sell to SYSTRAN the Minimum
Anticipated Volume in any month, Customer, jointly and severally, shall pay a
minimum fee to SYSTRAN which shall be equal to the amount obtained when the
Minimum Anticipated Volume is multiplied by the current Service Fees reflected
on Exhibit “A” attached hereto and as referenced in section 3.1 above, or as
amended by SYSTRAN from time to time as reflected in Customers’ daily
settlement statement (the “Minimum Fee”). 
The Minimum Fee owing by Customer pursuant to this paragraph may be
deducted from Customers’ funding.  In the
event that Customer fails to sell the Minimum Anticipated Volume per month for
each of any two consecutive months (the “Low Volume Period”), Customers’
Service fee will be increased at the beginning of the month immediately
following the Low Volume Period at SYSTRAN’s discretion. At SYSTRAN’s
discretion, the Service Fee will be returned to the last fee in effect should Customers’
monthly purchase volume exceed the Minimum Anticipated Volume per month for
each of two consecutive months.

3.3                                 ADDITIONAL SERVICES and VALUE FEES.  From time to time during the term of
this Agreement, Customer may request SYSTRAN to provide additional services
and/or incur additional risk. Such additional services and/or additional risk
shall include but not be limited to advances to the Customer by SYSTRAN which
are not in conformity with the terms of the Agreement, extension of Customers’
contractual recourse under the Agreement, purchases by SYSTRAN of bills which
are outside of the formulas and calculations defined in the Agreement
(hereinafter such services shall be collectively referred to as the “Additional
Services”).  Customer, jointly and
severally, shall pay SYSTRAN the cost for added value for such Additional
Services (hereinafter referred to as the “Value Fee (s)”). The Values Fee(s)
will be reflected on Customers’ daily settlement statement.

4.                                      DEPOSIT

4.1                                 In
order to secure Customers’ Obligations hereunder, Customer shall deliver to
SYSTRAN a deposit equal to *** of Customers’ Bills that are ninety (90) days
old or less computed from date of purchase (“Deposit”).

4.2                                 ADJUSTMENT
OF DEPOSIT.  The amount of Customers’
Deposit will be reviewed and, if necessary, adjusted each day.  Increases in the amount of Customers’ Deposit
will be withheld by SYSTRAN from payments to Customer. If sufficient Bills are
not purchased to fund the increase, Customer, jointly and severally, will pay
the amount of the increase upon demand. 
Decreases will be repaid to Customer from Customers’ Deposit amount.

4.3                                 REPAYMENT OF DEPOSIT. Upon termination of
the Agreement, (a) SYSTRAN may increase the Deposit percentage to ***, in its
sole discretion, and (b) all other sums that may become due to Customer by
SYSTRAN will be included in the Deposit. Any shortfall in the Deposit shall
bear interest at the rate of ***.

5.                                      SECURITY INTEREST

5.1                                 The
purchase of The Bill(s) of Customer by SYSTRAN is absolute, subject to the
right to Chargeback.  In no event shall the purchase of
Bills hereunder be construed as a loan. 
In addition to the outright ownership of The Bill(s) purchased by
SYSTRAN, to secure the payment and performance of Customers’ Obligations to
SYSTRAN, Customer grants SYSTRAN a  security
interest in, and lien on, any and all now owned or hereafter acquired or
created assets of Customer, including without limitation all Customers’ present
and future Bill(s) and Special Purchase Bill(s), Accounts, Inventory, Deposit
Accounts, Chattel Paper, General Intangibles, Goods, Equipment, Instruments,
Investment Property, Documents, Letter-of-Credit-Rights, Commercial Tort
Claims, money, real estate and fixtures, and the Proceeds of the foregoing,
including Proceeds in the form of Inventory and/or Goods, whether tangible or
intangible, wherever located together with any and all cash and Noncash
Proceeds and products and Accessions of the forgoing (the “Collateral”).

5.2                                 FINANCING
STATEMENTS.  Customer shall not execute
or file any financing statement, supplements or amendments thereto, or any
other instruments or security agreement covering the Collateral described above
in favor of anyone other than SYSTRAN. 
Customer shall execute and deliver to SYSTRAN any financing statements,
title documents, supplements hereunder or the priority of such security
interest. CUSTOMER AUTHORIZES SYSTRAN TO SIGN ITS NAME TO ANY SUCH FINANCING
STATEMENT AND FILE SAME IN CUSTOMERS’ NAME COVERING THE COLLATERAL.  Customer, jointly and severally, shall pay all
costs of filing such statements or instruments with appropriate governmental
authorities together with the costs of all lien searches.  Customer agrees that either a carbon,
photocopy, or other reproduction of this Agreement is sufficient as a financing
statement under this Agreement.

5.3                                 SYSTRAN
may, in its sole discretion, elect to discharge any security interest, lien or
other encumbrance upon any of The Bill(s) for services rendered or goods sold
purchased by SYSTRAN.  Any such payments
and all expenses incurred in connection therewith shall be treated as a
Chargeback.  Notwithstanding the
foregoing, SYSTRAN shall have no obligation to discharge any such security
interest, lien or encumbrance.

6.                                      RECOURSE, DISPUTES AND CHARGEBACKS

6.1                                 All
of The Bill(s) are purchased by SYSTRAN from Customer with Recourse.  All of The Bill(s) may be Chargedback to
Customer at any time after ninety (90) days for a Commercial Account and
steamship companies, and sixty (60) days for Transportation Account(s) after
the purchase date of The Bill(s) if not collected from Debtor within such
period or at any time, if SYSTRAN determines, in its sole discretion, that The
Bill(s) is not collectible.  All of The
Bill(s) owing by Canadian Debtors or logistics companies are subject to
Chargeback sixty (60) days from the date of purchase by SYSTRAN. All Special Purchase Bills are subject to
Chargeback sixty (60) days from the date of purchase by SYSTRAN.   SYSTRAN shall not deem a disputed Bill or
Special Purchase Bill uncollectable without allowing Customer a reasonable time
to settle the dispute not to exceed fourteen (14) days from notice of
dispute.  It is within SYSTRAN’s
discretion as to when The Bill(s) over such time periods may be Chargedback to
Customer.

6.2                                 SYSTRAN
reserves the right, however, from time to time and at its absolute discretion,
to Chargeback to Customer any of The Bill(s) which do not conform to the
representations and warranties set forth in the Agreement or are discovered not
to conform with the reasonable standards which SYSTRAN may set for The
Bill(s).  SYSTRAN shall have a continuing
security interest in any and all of The Bill(s) which are Chargedback to the
Customer. Chargeback of any of The Bill(s) does not authorize Customer to
collect any outstanding sum owing on The Bill(s) from a Debtor.

6.3                                 COLLECTION OF BILLS.  SYSTRAN may, but is not required to, commence
any action, including legal action, to collect The Bill(s).  All costs of collection, including attorney
fees, court fees, and costs of investigation, will be charged to the
Customer.  Prior to any event of default
by a Debtor, SYSTRAN will commence litigation only with Customers’
authorization.  Subsequent to an event of
default, SYSTRAN may file suit as it deems necessary without Customers’
authorization.  In the event of default,
Customer hereby grants authorization to SYSTRAN to settle or compromise any
freight bill dispute, including litigation, with any uncollected amount being
subject to Chargeback, together with all other amounts for which Customer is
obligated to SYSTRAN.

*** Certain confidential
information in this document has been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

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6.4                                 CLEARANCE DAYS.  Clearance Days shall mean (i) three (3)
business days for checks drawn on banks located within the United States and
for all electronic funds transfers, and (ii) three (3) business days for all
other payments.  For all purposes
and computations under this Agreement, Clearance Days will be based on the Prime
Plus Fee and added to the date on which any payment is received by SYSTRAN.

7.                                      WARRANTIES AND REPRESENTATIONS

7.1                                 Customer
warrants and represents with respect to all of The Bill(s) sold to SYSTRAN that
(a) The Bill(s) are genuine and in all respects what they purport to be; (b)
Customer has good title to The Bill(s) and The Bill(s) are free and clear of
all encumbrances, liens and prior claims, and that the Customer has the legal
right to sell The Bill(s); (c) Customer has no knowledge of any fact which may
impair the validity of The Bill(s) or make them uncollectible in accordance
with its terms and face amount; (d) for transportation Customers, The Bill(s)
were made in accordance with the laws and the regulations of the Federal
Highway Administration or other federal regulatory agency, and the appropriate
state regulatory commission or made according to lawful and valid contracts
which Customer has executed; (e) for transportation Customers, The Bill(s) are
supported by lawful, effective and complete bills of lading or other contract
of carriage together with bona fide, genuine, valid and signed delivery
receipts, and Customer will not modify or delete any of the terms of the
original Bills or Special Purchase Bills or bill of lading with respect to
same; (f) there are no counterclaims or setoffs or defenses existing in favor
of the Debtor, whether arising from the services provided or goods sold which
are the subject of The Bill(s) or otherwise and there has been no agreement as
to the issuance or granting of any discount on The Bill(s); (g) The Bill(s) are
not a duplicate of and do not cover the same services provided or goods sold as
a Bill or Special Purchase Bill previously purchased by SYSTRAN from the
Customer or billed directly by the Customer to the Debtor; (h) Customer does
not own, control, or exercise dominion over the business of any Debtor whose
Bills or Special Purchase Bills are factored by Customer to SYSTRAN,  Customer is not a subsidiary of any Debtor
and no Debtors control or exercise dominion over the business of Customer; (i)
Customer will not under any circumstances or in any manner whatsoever interfere
with any of SYSTRAN’s rights under this Agreement in connection with SYSTRAN’s
factoring of The Bill(s); (j) Customer has not and will not pledge the credit
of SYSTRAN to any person or business for any purpose whatsoever; (k) for
non-transportation Customers, until the sale
by Customer to Debtor of the goods described in The Bill(s), Customer had good
title to the goods sold, the goods were free of all encumbrances, liens and
prior claims, and Customer had the legal right to sell the goods.

7.2                                 If
the Customer is a corporation, partnership or limited liability company, it is
duly organized, existing, and in good standing under the laws of See Addendum, and its organization I.D. number is set forth
on the Addendum.  If Customer represents
him or herself to be a sole proprietorship or a partnership, such
representation shall be deemed conclusive and binding upon Customer.  Customer is duly qualified to do business and
is in good standing in every other state in which such qualification is
required except where failure to qualify in such jurisdictions will not result
in a Material Adverse Effect.  If
Customer is a corporation, partnership or limited liability company, execution,
delivery and performance hereof are within its corporate or entity powers, have
been duly authorized, and are not in contradiction of law or the terms of its
charter, by-laws, partnership agreement, operating agreement or other entity
papers, or any indenture, agreement or undertaking to which it is a party or by
which it is bound, except that Customer
makes no representation or warranty as to any consents that may be required
from the holders of Crdentia Corp.’s 8% Convertible Debentures Due January 6,
2009.  In addition, the Customer
has all licenses and certificates necessary for the operation of its business
and the issuance of The Bill(s). 
Customer represents and warrants that the information contained on
Schedule 1, the Corporate Structure Worksheet, is true and accurate and
Customer agrees to notify SYSTRAN in writing within five (5) business days, of
any change thereof.

8.                                      AUTHORITY

Customer
irrevocably authorizes SYSTRAN or any person designated by SYSTRAN to: bill,
receive and collect all amounts which may be due or become due to Customer from
Debtors and to use Customers’ name for purposes of billing and collection of
amounts due; delete Customers’ address on all invoices mailed to Debtor and
substitute SYSTRAN’s address; receive, open and dispose of all mail addressed
to Customer or Customers’ trade name at SYSTRAN’s address; negotiate checks
received in payment whether payable to Customer or to SYSTRAN, endorse the name
of Customer or Customers’ trade name on any checks or other evidences of
payment that may come into the possession of SYSTRAN on The Bill(s) purchased
by SYSTRAN and on any invoices or other document relating to any of The
Bill(s); in Customers’ name, or otherwise, demand, sue for, collect and get or
give releases for any and all monies due or to become due on The Bill(s);
compromise, prosecute, or defend any action, claim or proceeding as to The
Bill(s) purchased by SYSTRAN; take all steps necessary to ensure payment of
such amounts due and do any and all things in Customers’ name necessary and
proper to carry out the purpose intended by this Agreement.

9.                                      ADDITIONAL DOCUMENTS

The
Customer shall execute and deliver all such additional and further instruments
as may be reasonably requested by SYSTRAN in order to more completely vest in
and assure to SYSTRAN and make available to it, the property and rights
herewith or hereafter granted or assigned and transferred to SYSTRAN as
Collateral and to evidence the sale of The Bill(s) to SYSTRAN and to carry into
effect the provisions and intent of this Agreement.

10.                               LOCATION OF BOOKS AND RECORDS, PLACE OF BUSINESS

Customers’
place of business is the one set forth in this Agreement and all of its books,
accounts, correspondence, papers and records pertaining to the services
performed or sales of products are located there, and all such books, accounts,
correspondence, papers and records will be opened for SYSTRAN’s inspection at
all reasonable times.

11.                               INDEMNIFICATION OF SYSTRAN; SALES AND EXCISE TAXES

Customer
will indemnify and hold SYSTRAN harmless against any and all liability, loss or
expense, including attorney’s fees and costs, caused by or arising out of any
claims or alleged claims asserted relating in any manner to The Bill(s)
purchased by SYSTRAN hereunder or subject to SYSTRAN’s security interest,
including, but not limited to, claims asserted against SYSTRAN pursuant to
Chapter 5, Title 11 of the United States Code.  In the event any sales or excise taxes are
imposed by any state, federal or local authorities with respect to any of The
Bill(s) sold and assigned hereunder, where such taxes are required to be
withheld or paid by SYSTRAN, Customer shall also indemnify SYSTRAN and hold it
harmless with respect to all such taxes and hereby authorizes SYSTRAN to charge
to Customers’ account any such tax that is paid or withheld by SYSTRAN.  SYSTRAN may charge the Deposit or initiate
legal proceedings to collect any amount due under this paragraph.  This paragraph shall survive and remain
effective following the termination of the Factoring Agreement.

12.                               FINANCIAL INFORMATION

So
long as Customer factors or has any absolute or contingent obligation of any
kind owing to SYSTRAN, the Customer will provide information regarding the
business, affairs and financial condition of Customer and its subsidiaries as
SYSTRAN may reasonably request, including financial statements.

13.                               BANKRUPTCY

Customer
agrees to notify SYSTRAN of any voluntary or involuntary bankruptcy petition
filed by or against it or any guarantor within twenty-four (24) hours of such
filing.

***
Certain confidential information in this document has been omitted pursuant to
a request for Confidential Treatment and filed separately with the Commission.

 3
 

14.                               REORGANIZATION, ACQUISITIONS, CHANGE OF NAME OR
LOCATION

Customer
will not, and will not permit any subsidiary to merge or consolidate with or
into any corporation or other entity, or sell, lease, transfer, or otherwise
dispose of all or any substantial part of its assets, whether now owned or
hereafter acquired.  Customer shall
notify SYSTRAN in writing not less than thirty (30) days prior to (a) any
change of its name or use of any trade names; or (b) any change in the address
of the chief executive office and/or chief place of business of Customer or the
location of any records pertaining to The Bill(s).

15.                               LITIGATION

Except
as disclosed in writing, Customer represents and warrants to SYSTRAN as
follows: There are no suits or proceedings pending or to the knowledge of
Customer, threatened against or affecting Customer or any of its subsidiaries
which, if adversely determined, would have a material adverse effect on the
financial condition or business of Customer and its subsidiaries and there are
no proceedings by or before any governmental commission, board, bureau, or
other administrative agency pending or, to the knowledge of Customer,
threatened, against Customer or any of its subsidiaries.  Further, Customer represents and warrants there
is no claim, loss contingency, or proceeding, whether or not pending,
threatened or imminent, against or otherwise affecting Customer that involves
the possibility of any judgment or liability not fully covered by insurance or
that may result in a material adverse change in the business, properties, or
condition, financial or otherwise, of Customer.

16.                               TRADE NAMES

Customer
represents and warrants to SYSTRAN that it utilizes no trade names or assumed
business names in the conduct of its business except for the names listed in
Section 16 of the Addendum to the Factoring Agreement.

17.                               TAXES

Except
as disclosed in the Schedule of Outstanding Tax Returns attached to this
Agreement, Customer represents and warrants to SYSTRAN that: Customer has filed
all federal, state, and local tax returns and other reports it is required to
file and has paid or made adequate provision for payment of all such taxes,
assessments, and other governmental charges.

18.                               TERM AND TERMINATION

18.1                           This Agreement is for a term of forty-eight
(48) full months to begin on the Commencement Date as defined in paragraph 1(c)
herein.  The term of this Agreement shall
renew automatically for consecutive twelve (12) month terms unless sooner
terminated in accordance with the terms of the Agreement.  Customer may terminate this Agreement
effective at the end of any term by giving thirty (30) days prior written
notice to SYSTRAN at the address set forth in this Agreement.  Customer may continue to offer any of The
Bill(s) to SYSTRAN during such thirty (30) day period.  SYSTRAN may terminate this Agreement at any
time and for any reason by notifying Customer in writing of such termination.

18.2                           All of Customers’ representations,
warranties, and other provisions of this Agreement shall survive such
termination until SYSTRAN has been paid in full and Customer has fully
performed all of its obligations.  In
addition, should any transfer of money or property to SYSTRAN hereunder be
avoided in a bankruptcy proceeding involving Customer, any Debtor of Customer,
or otherwise, then Customers’ Obligations hereunder shall be reinstated and/or
supplemented to the extent of the avoided transfer, whether or not this
Agreement has otherwise been terminated.

18.3                           Notwithstanding the foregoing, Customer
has the option to terminate this Agreement prior to the end of any term by
giving SYSTRAN thirty (30) days prior written notice.  Customer may continue to offer any of The
Bill(s) to SYSTRAN during such thirty (30) day period.  Customer shall be deemed to have terminated
this Agreement prior to the end of any term on the date that Customer shall
have ceased presenting The Bill(s) to SYSTRAN in the normal course for an
uninterrupted period of thirty (30) days (“Deemed Termination”).  Upon notice of early termination, or the date
of a Deemed Termination by Customer, prior to the end of any term, whether or
not Customer continues to offer The Bill(s) to SYSTRAN during the thirty (30)
day notice period applicable to Customer, Customer, jointly and severally,
shall be obligated to pay to SYSTRAN, and Customers’ Deposit may be charged, an
early termination premium (“Early Termination Premium”) in an amount equal to the
following: (i) *** if the termination occurs prior to the first anniversary of
the Commencement Date, (ii) *** if the termination occurs on or after the first
anniversary of the Commencement Date and prior to the second anniversary of the
Commencement Date, and (iii) *** if the termination occurs on or after the
second anniversary of the Commencement Date and prior to the end of the initial
term or any renewal term.

18.4                           The termination date shall be thirty (30)
days after SYSTRAN’s receipt of the termination notice or on the Deemed
Termination date, unless a termination notice specifies a date that is more
than thirty (30) days but less than sixty (60) days after SYSTRAN’s receipt of
the termination notice.

18.5                           If SYSTRAN terminates this Agreement
prior to the end of any term upon any default in the performance of Customer
under this Agreement, in view of the impracticality and extreme difficulty in
ascertaining actual damages and by mutual agreement of the parties as to the
reasonable calculation of SYSTRAN’s lost profits as a result thereof, Customer,
jointly and severally, shall be obligated to pay SYSTRAN upon the effective
date of such termination, and Customers’ Deposit may be charged, a premium in
an amount equal to the Early Termination Premium as set forth above. If Customer terminates this Agreement pursuant to the
terms thereof, Customer shall immediately remit and pay to SYSTRAN, at the time
of termination, all Obligations due and owing to SYSTRAN and/or its affiliates
by Customer, under this and any other Agreement.

19.                               EVENTS OF DEFAULT

19.1                           The
following shall be events of default under the terms of this Agreement:  (a) default by Customer or any guarantor
in the payment and/or performance of any Obligation to SYSTRAN, (b) default by
Customer or any guarantor in the payment or performance of any obligation to
any financial institution (other than SYSTRAN) or bank, provided that such
aggregate obligations are *** or greater; (c) Customer or any guarantor agrees
to the appointment of a receiver for its assets, makes general assignment for
the benefit of creditors or declares that it is unable to pay its debts as they
mature; (d) Customer or any guarantor files a proceeding under any law for the
relief of Debtors, including but not limited to, Title 11 of the United States Code, referred to as “The
Bankruptcy Code” or any other similar law which may exist; (e) any
involuntary petition under the Bankruptcy Code
or similar statute has been filed against the Customer or any guarantor and not
dismissed within sixty (60) days after filing without the entry of an order for
relief; (f) the entry of any judgment(s) against Customer that in the aggregate
are *** or greater, (g) the issuance of an attachment, execution, tax
assessment or similar process against the Customer or its property  or any guarantor (or its property) which is
not released within ten (10) days of its attachment; (h) any guaranty from any
Customer guarantor shall cease to be in full force and effect for any reason
other than the dissolution of a corporate guarantor that does not result in a
Material Adverse Effect or, with respect to a validity guaranty from any
Customer employee, the revocation of such guaranty so long as SYSTRAN receives
a replacement guaranty satisfactory to SYSTRAN in its sole discretion within 30
days of such revocation; (i)SYSTRAN,
in its sole discretion, determines that a Material Adverse Effect has occurred
with respect to Customer or any guarantor or that a material adverse change has
occurred in the in the value of the Collateral or in SYSTRAN’s interest in the
Collateral.

19.2                           In
addition to all other remedies provided by law, upon the occurrence of an event
of default, SYSTRAN may immediately, and without notice to the Customer,
increase the amount of the Deposit required under Section 4 of this Agreement
to *** of the outstanding amount of Bills purchased from the Customer (“***
Deposit”), and the Customer shall immediately deliver to SYSTRAN funds
sufficient to create this *** Deposit.

19.3                             SYSTRAN may, upon default under the Agreement
or any of the agreements, collect any Obligation owing to SYSTRAN or any of its
affiliates by debiting Customers’ account, attach any funds owing to Customer
by SYSTRAN or its affiliates, and exercise any other remedy available to

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 4
 

SYSTRAN
under the Agreements or at law. Any deficiency arising under this Agreement
shall accrue interest at the annual rate of *** or the highest amount allowed
by law, whichever is higher, from the date the deficiency is incurred.

20.                               EXPENSES

20.1                           Customer shall reimburse SYSTRAN for all reasonable
fees, costs and expenses incurred by SYSTRAN in relation to this
Agreement.  SYSTRAN may, at any time, and
without regard to any remedy listed above, demand from Customer payment of the
outstanding fees, costs and expenses.

20.2                           ATTORNEYS’
FEES. With respect to any default under this Agreement, Customer shall
reimburse SYSTRAN for all costs and expenses incurred by attorneys, including
both SYSTRAN’s in-house attorneys and outside attorneys’ and paralegals’
whether or not a lawsuit or other court action is actually filed in connection
with the event of default.  In the event
that a suit, action, arbitration, or other proceeding of any nature, including,
without limitation, any proceeding under The Bankruptcy Code,
any action seeking a declaration of rights or an action for rescission is
instituted to interpret or enforce this Agreement, including, but not limited
to such fees and costs associated with trial and appeals, Customer, jointly and
severally, agrees to pay the reasonable attorneys’ fees incurred in connection
with any such proceeding as awarded by the court.

20.3                           OTHER
PROFESSIONALS AND EXPERTS.  With respect
to any event of default under this Agreement, SYSTRAN in its sole discretion
may retain accountants, auditors, appraisers and other experts and the Customer,
jointly and severally, agrees to pay the professional fees, expert fees and all
other fees and costs reasonably and actually incurred in connection with the
services provided.

20.4                           NO
LIEN TERMINATION WITHOUT RELEASE.  In recognition of SYSTRAN’s right to have its
attorneys’ fees and other expenses incurred in connection with this Agreement
secured by the Collateral, notwithstanding payment in full of all Obligations
by Customer, SYSTRAN shall not be required to record any terminations or
satisfactions of any of SYSTRAN’s liens on the Collateral unless and until
Customer has executed and delivered to SYSTRAN a general release in a form reasonably
satisfactory to SYSTRAN.  Customer understands that this provision constitutes a waiver of its
rights under 9-513 of the UCC.

20.5                        JURY TRIAL WAIVER.  IN
RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM A JURY TRIAL,
THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (A) ARISING HEREUNDER, OR (B) IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH
RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY FURTHER
WAIVES ANY RIGHT TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN
WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
WAIVED; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND
THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO
TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

21.                               JURISDICTION AND VENUE

This
Agreement shall be deemed to be a contract under the laws of the State of
Oregon and for all purposes shall be governed by and construed in accordance
with the laws of that state.  Customer
irrevocably agrees that any legal action or proceeding brought by or against
Customer with respect to the Agreement shall be brought in the courts of the
State of Oregon or in the U.S. District Court for the District of Oregon.  Customer consents to the jurisdiction of such
courts and that the venue for any such action shall be the County of
Multnomah.  This provision shall not
limit the right of SYSTRAN to bring such actions or proceedings against
Customer in the court of such other states or jurisdictions where Customer may
be subject to jurisdiction.  Customer
expressly authorizes service of process in any such suit or action on its
behalf upon Registered Agent: See Addendum at (address) See Addendum or
upon such other agent as SYSTRAN may approve in writing, as its agent for such
purposes and that service may be deemed complete upon delivery via expedited
national overnight delivery service.

22.                               WAIVER, NOTICE

The
waiver by SYSTRAN of the breach of any term of this Agreement or of the
compliance therewith shall not be construed as a waiver of any other breach or
compliance.  Notices from either party to
the other shall be given in writing and mailed postage prepaid, registered or certified
mail, or placed in the hands of a national overnight delivery service,
addressed to the addresses set forth opposite each party’s name below, or at
such other address as either party may hereafter advise the other in writing.

23.                               ASSIGNMENT

Customer
may not assign any of its rights or obligations hereunder.  SYSTRAN may assign or grant a security
interest in this Agreement or in any of The Bill(s) purchased by SYSTRAN.  SYSTRAN may assign any of its rights and
remedies with respect to The Bill(s) including the right to notify Debtors to
make payment to SYSTRAN’s assignee.

24.                               SEVERABILITY

The
provisions of this Agreement are severable and if any of these provisions shall
be held by any court of competent jurisdiction to be unenforceable such holding
shall not affect or impair any other provisions hereof.

25.                               COMPLETE UNDERSTANDING

This
Agreement comprises the complete understanding among the parties and may only
be varied by a writing executed by the parties hereto.  Paragraph headings are for convenience only.

26.                               THIRD PARTY CONSULTATION

Customer
hereby agrees and acknowledges that it has had the opportunity to seek out and
consult with legal counsel and/or independent business advisors of its own
choosing in connection with the negotiation, execution and delivery of this
Agreement.  This Agreement shall be
construed without regard to any presumption or rule requiring that it be
construed against the party causing this Agreement, or any part hereof to be
drafted.

27.                               NO OFFER/COMMITMENT

The
presentation of this Agreement to Customer does not constitute either an offer
or commitment to purchase The Bill(s) or to extend credit to Customer.

28.                               MULTIPLE CUSTOMERS/JOINT AND SEVERAL LIABILITY

If
more than one Customer executes this Agreement, the following provision apply: (a) Each Customer agrees that it is
jointly and severally, directly, and primarily liable to SYSTRAN for payment in
full of all the Obligations and that such liability is independent of the
duties, obligations, and liability of each and all of the other joint and
several Customers.  SYSTRAN may bring a
separate action or actions on the Obligations against each, any or

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 5
 

all Customers, whether an action is brought
against any other or all of such Customers or any one or more of Customers is
or is not joined therein.  (b) Each Customer agrees that any
release that may be given by SYSTRAN to any one or more of Customers or any
guarantor of the Obligations shall not release any other Customer from its
obligations hereunder.  (c) Each Customer hereby waives
any right to assert against SYSTRAN any defense (legal or equitable), setoff,
counterclaim or claims that such Customer individually may now or any time
hereafter have against another Customer or any other person liable to SYSTRAN
in any manner or way whatsoever.  (d) Any and all present and future
debt and other obligations of any Customer to any other Customer are hereby
subordinated to the full payment and performance of the Obligations; provided,
however, such debt and other obligations may be incurred and repaid, subject to
the terms of this Agreement, as long as no event of default shall have occurred
and not have been waived.  (e) Each Customer is presently
informed as to the financial condition of each of the other Customers and of
all other circumstances that a diligent inquiry would reveal and that bear upon
the risk of nonpayment of the Obligations. 
Each Customer hereby covenants that it will continue to keep itself
informed as to the financial condition of all other Customers, the status of
all other Customers, and of all circumstances that bear upon the risk of
nonpayment.  Absent a written request
from any Customer to SYSTRAN for information, each Customer hereby waives any
and all rights it may have to require SYSTRAN to disclose to such Customer any
information that SYSTRAN may now or hereafter acquire concerning the condition
or circumstances of any Customer.  (f) Each Customer waives all
rights to notices of default, existence, creation, or incurring of new or
additional indebtedness and all other notices of formalities to which such
Customer may, as a joint and several Customer hereunder, be entitled.  (g) Each Customer
hereby irrevocably appoints Crdentia Corp. (the “Agent”), and each of its
officers and employees, as agents for its behalf to request, receive, and
direct the manner of disbursement of purchase proceeds; to execute and deliver
certificates, reports, instructions, agreements and other documents; to furnish
information; to make elections as to fess and other matters; to give and
receive notices and communications; and to take any and all other actions of every
nature in connection with this Agreement and Purchase and the Obligations.  SYSTRAN may rely on any such actions of Agent
and its officers and employees as fully as if such actions had been taken
directly by each such Customer, and SYSTRAN shall be fully protected in doing
so.  Each Customer hereby authorizes
SYSTRAN to wire funds into a common bank account controlled by Agent or to make
the disbursement check payable to Agent or such other person or persons designated
by Agent.  Each Customer hereby represents
to SYSTRAN that this common bank account is being maintained for each Customers’
convenience and that a portion of funds paid or otherwise disbursed by SYSTRAN
pursuant to this Agreement will be held for the benefit of each Customer in
proportion to the amount of Bills Purchased or Collateral.

29.                               CREDIT INFORMATION

Customer
authorizes SYSTRAN or any of its affiliates to obtain credit bureau reports,
and make other credit inquiries that it determines are necessary.  On Customers’ written request, SYSTRAN will
inform Customer whether SYSTRAN has requested a consumer credit report and the
name and address of any consumer credit reporting agency that published a
report.  Customer acknowledges that
without further notice SYSTRAN may use or request additional credit bureau
reports to update its information so long as Customer obligations to SYSTRAN
are outstanding.

30.                               GUARANTORS

The parties acknowledge
that Crdentia Corp., Health Industry Professionals, L.L.C., Mint Medical
Staffing Odessa, LP, Prime Staff, LP, and Staff Search Acquisition Corp., have
executed Collateralized Guaranties for the Obligations of Customer arising
hereunder, and that SYSTRAN would not enter into this Factoring Agreement
without said guaranties.

SYSTRAN FINANCIAL
SERVICES CORPORATION

	
  By:

  	
       /s/
  Illegible

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  
	
  Address:

  	
  4949 SW Meadows
  Drive

  	
   

  	
   

  
	
   

  	
  Suite 500

  	
   

  	
   

  
	
   

  	
  Lake Oswego,
  Oregon 97035

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Arizona Home Health Care/Private Duty, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
  WITNESS:

  
	
  By:

  	
        /s/
  James J. TerBeest

  	
   

  	
  By:

  	
  /s/ Shirley
  Prichard

  	
   

  
	
  Print Name:

  	
  James J.
  TerBeest

  	
   

  	
  Print Name:

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  5001 LBJ
  Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
   

  	
  Dallas, TX  75244

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Care
  Pros Staffing, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  WITNESS:

  
	
  By:

  	
       /s/
  James J. TerBeest

  	
   

  	
  By:

  	
  /s/ Shirley
  Prichard

  	
   

  
	
  Print Name:

  	
  James J.
  TerBeest

  	
   

  	
  Print Name:

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  5001 LBJ
  Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
   

  	
  Dallas, TX  75244

  	
   

  	
   

  
												

 

(Signatures
continued on next page)

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 6
 

 

	
  

  	
  Baker Anderson Christie, Inc.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WITNESS:

  
	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Shirley Prichard

  	
   

  
	
  Print Name:

  	
   

  	
  James J. TerBeest

  	
   

  	
   

  	
  Print Name:

  	
   

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  5001 LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  	
   

  
	
   

  	
  Dallas, TX 75244

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New Age Staffing, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WITNESS:

  
	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Shirley Prichard

  	
   

  
	
  Print Name:

  	
   

  	
  James J. TerBeest

  	
   

  	
   

  	
  Print Name:

  	
   

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  5001 LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
   

  	
  Dallas, TX 75244

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PSR Nurses, Ltd.

  	
   

  	
   

  
	
  By PSR Nurse Recruiting, Inc., its General Partner

  	
   

  	
  WITNESS:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Shirley Prichard

  	
   

  
	
  Print Name:

  	
   

  	
  James J. TerBeest

  	
   

  	
   

  	
  Print Name:

  	
   

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  5001 LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
   

  	
  Dallas, TX 75244

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Nurses Network, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
  WITNESS:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Shirley Prichard

  	
   

  
	
  Print Name:

  	
   

  	
  James J. TerBeest

  	
   

  	
   

  	
  Print Name:

  	
   

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial Officer Address:

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  5001 LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
   

  	
  Dallas, TX 75244

  	
   

  	
   

  
																																

 

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 7
 

Exhibit A

To
Factoring Agreement Dated February 8, 2007

The terms used in this Exhibit A have the same definitions as those used
in the Factoring Agreement.  In case of
conflict of definition, the definitions in this Exhibit “A” shall prevail.

All fees referred to below shall collectively be
referred to as “Service Fees.”

Funds
Employed:

Customer
 will pay a fee at an annual rate equal
to *** per annum of all funds employed to purchase Bills (the “Prime Plus Fee”).  “Prime” means the greater of: (i) the Prime
Rate or (ii) ***.  The Prime Plus Fee
shall be calculated on the basis of a 360-day year and the actual number of
days elapsed in each month.  Funds employed shall be calculated by SYSTRAN on
a daily basis based upon bills unpaid and outstanding, less the Deposit.  A change in the Prime Plus Fee due to a Prime
Rate change will be effective upon the date of the change (subject to any
maximum or minimum limitation on fees specified by applicable law), which will
be indicated on the settlement statement. 
“Prime Rate” means the prime commercial rate of interest per
annum as announced from time to time by the Wall Street Journal as the
prevailing “Prime Rate,” from time to time in effect.  If the Prime Rate is reflected as a range,
then the Prime Rate as defined herein shall be the highest amount in said
range.  SYSTRAN shall have the right,
from time to time, to designate any other reference source as the reference for
determining the Prime Rate under this Agreement.

Managed Account:

A managed account shall also be created for all Bills that SYSTRAN does
not purchase and all Bills which Customer does not factor (the “Managed Account”).  The Deposit on the Managed Account is ***.

The
above Service Fees may be deducted from Customers’ funding pursuant to the
Factoring Agreement or SYSTRAN may bill Customer.

	
  SYSTRAN FINANCIAL SERVICES
  CORPORATION

  	
   

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
  /s/ Illegible

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Vice President

  	
   

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  Arizona
  Home Health Care/Private Duty, Inc.

  	
  New Age Staffing, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James J.
  TerBeest

  	
   

  	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial
  Officer

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Care Pros Staffing, Inc.

  	
  PSR Nurses, Ltd.

  	
   

  
	
   

  	
  By PSR Nurse Recruiting, Inc., its General Partner

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James J.
  TerBeest

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial
  Officer

  	
   

  	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  
	
   

  	
   

  	
   

  
	
  Baker Anderson Christie, Inc.

  	
   

  	
   

  
	
   

  	
  Nurses Network, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James J.
  TerBeest

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial
  Officer

  	
   

  	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  
																			

 

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 8
 

 

Addendum

To Factoring Agreement

The terms used in this Addendum have the same definitions as those used
in the Factoring Agreement.  In case of
conflict of definition, the definitions in this Addendum shall prevail.

Customer and Systran agree to modify Section 2, “PURCHASE OF BILLS”,
Paragraph 2.1 of the Agreement is hereby amended to the following:

Customer
may submit for purchase to SYSTRAN accounts for which a Bill/invoice has not
yet been created (the “Unbilled Invoices”) so long as (i) customer delivers a
detailed schedule of all unbilled amounts to SYSTRAN in connection with each
Purchase request, which includes a unique tracking number assigned to each such
unbilled Invoice that shall correspond to the Bill that Customer creates for
each such account, and (ii) the aggregate total amount of outstanding unbilled
Invoices at any time does not exceed *** of Customers’ regular Bills.  Invoices purchased that are ninety (90) days
old or less as computed from the date of purchase Customer shall have fourteen
(14) days to present an original and one (1) copy of all Bills related to the
Unbilled Invoices, along with the proof of delivery or service for each Bill
presented, each document which shall be attached to a schedule form provided by
SYSTRAN.  SYSTRAN may purchase Bills that arise from Customers’
permanent placement services so long as the aggregate outstanding amount of
such Bills does not exceed *** of the Bills purchases that are: (i) ninety (90)
days old or less as computed from the date of purchase and (ii) for staffing
services other than permanent placement services.

Except as noted below, the remainder of Section 2 shall remain as
originally written.

Customer and Systran agree to modify Section 2, “PURCHASE OF BILLS”,
Paragraph 2.4 of the Agreement to include the following:

Customer may mail all Bills
directly to account debtors.  All Bills
so directly mailed by Customer must be stamped with SYSTRAN’s notice of
assignment attached as noted below. 
Customer will provide copies of all Bills, together with signed copies
of the respective proof of delivery prior to SYSTRAN considering them for
purchase.  Nothing in the Addendum shall
obligate SYSTRAN to purchase any Bill owing by the account debtors, listed
above.  Customer must obtain SYSTRAN’s
written consent prior to adding any account debtors to the list of direct
mailed parties.

Remit
Only To:

SYSTRAN
Financial Services Corp.

P.O.
Box 730653

Dallas,
TX  75373-0653

This account is sold, assigned and payable to SYSTRAN

The
remainder of Section 2 shall remain as originally written.

Customer and Systran agree to modify Section 3, “FEE(S)” by adding a
new paragraph 3.4 to the Agreement as follows:

3.4         SYSTRAN may in its sole
discretion extend the Chargeback period that applies to any Bill provided that
the Deposit for such Bill shall increase and Customer shall pay a fee to
SYSTRAN as follows:

	
  

  	
   

  	
   

  	
   

  	
  Account Debtor Type

  	
   

  	
   

  	
   

  	
   

  
	
  Transportation/Broker

  	
   

  	
  Commercial

  
	
  Fee

  	
   

  	
  Deposit

  	
   

  	
  Chargeback Period/Recourse

  	
   

  	
  Fee

  	
   

  	
  Deposit

  	
   

  	
  Extension Period/Eligibility

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

The fee
provided above shall be fully earned and immediately due and payable upon
SYSTRAN’s agreement to extend the Chargeback period for such Bill.

The remainder of Section 3 shall remain as
originally written.

Customer and Systran agree to modify Section 4, “DEPOSIT”, Paragraph
4.1, by amending the following particulars only:

In order to secure Customers’
Obligations hereunder, Customer shall deliver to SYSTRAN a deposit equal to ***
of Customers’ Unbilled Invoices (“Deposit A”) and Customer shall deliver to
SYSTRAN a deposit equal to *** of Customers’ regular Bills that are ninety (90)
days old or less computed from the date of purchase (“Deposit B”).  Deposit A shall be repaid to Customer upon
receipt of the copy of the regular Bill/invoice by SYSTRAN, whether in the form
of a photocopy, a facsimile copy or a scanned copy via Electronic Data
Interchange. Both Deposit A and Deposit B shall be collectively known as “Deposit”
for the purposes of the remaining sections of this

The
remainder of Section 4 shall remain as originally written.

*** Certain confidential
information in this document has been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

 9
 

 

Customer and Systran agree to modify Section 7, “WARRANTIES AND
REPRESENTATIONS”, by adding language to Paragraph 7.2 as follows:

	
  Customer:

  	
   

  	
  Organized under the laws of:

  	
   

  	
  Organizational I.D. #

  
	
  Arizona Home
  Health Care/Private Duty, Inc.

  	
   

  	
  Arizona

  	
   

  	
  09402900

  
	
  Care Pros
  Staffing, Inc.

  	
   

  	
  Texas

  	
   

  	
  800000407

  
	
  Baker Anderson
  Christie, Inc.

  	
   

  	
  California

  	
   

  	
  1966662

  
	
  New Age
  Staffing, Inc.

  	
   

  	
  Delaware

  	
   

  	
  3696669

  
	
  PSR Nurses, Ltd.

  	
   

  	
  Texas

  	
   

  	
  15413710

  
	
  Nurses Network,
  Inc.

  	
   

  	
  California

  	
   

  	
  2061673

  

 

The
remainder of Section 7 shall remain as originally written.

Customer
and SYSTRAN agree to modify Section 12 “FINANCIAL INFORMATION” of the Agreement
to include the following:

Customer shall deliver to
SYSTRAN within 120 days following the end of each of its fiscal years, audited
financial statements certified as having been prepared in accordance with
generally accepted accounting principles (“GAAP”) and as presenting fairly the
financial condition of Customer as of the date thereof and for the period then
ended (and including any management letter to Customer from such accountants).
Customer shall deliver to SYSTRAN such financial information as SYSTRAN shall
request, including, (a) within 45 days after the end of each quarter,
reasonably detailed financial statements prepared in accordance with past
practices that are consistently applied, certified by the chief financial
officer or chief operating officer of Customer as presenting fairly the
financial condition of Customer , (b) within 15 days of each quarter end
accounts receivable and accounts payable agings, in a format satisfactory to
SYSTRAN and any other reports reasonably requested by SYSTRAN, (c) quarterly
evidence of 940 payments and (d) monthly evidence of 941 payments. Customer
hereby irrevocably authorizes all accountants and third parties to disclose and
deliver to SYSTRAN at Customers’ expense all financial information, books and
records, work papers, management reports and other information in their
possession relating to Customer. 
Customer shall not change its fiscal year for accounting or tax purposes
from a period consisting of the twelve (12) month period ending on December 31 of
each calendar year, and shall not make any change in accounting treatment and
reporting practices or tax reporting treatment except as required by GAAP or
law and disclosed in writing to SYSTRAN at the address set forth herein.

The
remainder of Section 12 shall remain as originally written.

Section 16, “TRADE NAMES”.  Customer represents and warrants to SYSTRAN
that Customers’ trade names or assumed business names are limited to the
following:

All Trade Names and Assumed Business Names

	
  AHHC Acquisition Corporation

  	
   

  	
  Mint Medical Staffing Odessa, LP

  
	
  Arizona Home
  & Healthcare

  	
   

  	
  NAS Acquisition Corporation

  
	
  Arizona Home
  & Healthcare (AHHC)

  	
   

  	
  New Age Nurses

  
	
  Arizona Home
  Health Care

  	
   

  	
  New Age Staffing, Inc.

  
	
  Arizona Home
  Health Care/Private Duty, Inc.

  	
   

  	
  NNI Acquisition Corporation

  
	
  BAC Acquisition
  Corporation

  	
   

  	
  Nurses Network, Inc.

  
	
  Baker Anderson
  Christie, Inc.

  	
   

  	
  Prime Staff

  
	
  Care Pros
  Staffing, Inc.

  	
   

  	
  Prime Staff LP

  
	
  CPS Acquisition
  Corp.

  	
   

  	
  Prime Staff of Texas, LP

  
	
  CRDE Corp.

  	
   

  	
  Prime Staff/Mint Medical, Inc.

  
	
  Crdentia

  	
   

  	
  PSR Nurse Recruiting, Inc.

  
	
  Crdentia Company

  	
   

  	
  PSR Nurses Holdings Corp.

  
	
  Crdentia Corp.

  	
   

  	
  PSR Nurses, Ltd.

  
	
  Crdentia Corporation

  	
   

  	
  Staff Search

  
	
  GHS Acquisition
  Corporation

  	
   

  	
  Staff Search Acquisition Corp.

  
	
  Health Industry
  Professionals

  	
   

  	
  Staff Search Healthcare

  
	
  Health Industry
  Professionals, L.L.C.

  	
   

  	
  Staff Search Healthcare, Inc.

  
	
  HIP Acquistion
  Corporation

  	
   

  	
  Staff Search, Inc.

  
	
  HIP Holding Inc.

  	
   

  	
  Travmed USA

  
	
  iVOW Acquisition
  Corporation

  	
   

  	
   

  

 

The remainder of Section 16
shall remain as originally written.

Customer and Systran agree to modify Section 18, “TERM AND TERMINATION”,
by adding language to Paragraph 18.1 as follows:

Customer
may request that SYSTRAN perform the necessary due diligence in order to
consider the Customer as a candidate for conversion to an Asset Based Loan (“ABL”).  Any costs or expenses that SYSTRAN incurs in
connection with any conversion request are included in the Customer
Obligations.  In the event SYSTRAN
approves a conversion request in its sole discretion, the Early Termination
Premium (defined below) will be waived upon funding the ABL.

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 10
 

Customer and Systran agree to further modify Section 18, “TERM AND
TERMINATION”, by adding language to Paragraph 18.3 as follows:

Notwithstanding
the foregoing, in the event of an early termination of this Agreement, the
Early Termination Premium shall not apply to the extent that SYSTRAN maintains
a factoring agreement with the ultimate parent company of the Customer and an
event of default has not occurred under such factoring agreement.

The remainder of Section 18 shall remain as
originally written.

Customer and SYSTRAN agree to
modify Section 20, “EXPENSES,” by adding a new Paragraph 20.6 to the Agreement
as follows:

One or more employees or
agents of SYSTRAN may perform field examinations of the books, records and other
assets of Customer.  SYSTRAN may perform
such field examinations every 120 days (3 times each year), unless Customer
shall default under the terms of the Factoring Agreement.  After a default, no limit shall apply to the
number of field examinations that SYSTRAN may perform. Customer shall pay to
SYSTRAN a field examination fee (the “Field Examination Fee”) at the standard
rate established by SYSTRAN from time to time (which standard rate is currently
in an amount equal to *** for each day spent by each such employee or agent in
performing and/or summarizing the results of such examination, including all
necessary travel time) plus all “out of pocket” expenses.  Each Field Examination Fee shall be payable
by Customer to SYSTRAN, in whole or in part, as appropriate, on the date(s) on
which such field examination was performed.

The
remainder of Section 20 shall remain as originally written.

Customer and Systran agree to modify Section 21, “JURISDICTION AND
VENUE”, by adding language as follows:

	
  Customer:

  	
   

  	
  Registered Agent:

  
	
  Arizona Home
  Health Care/Private Duty, Inc.

  	
   

  	
  National Corporate Research, 815 N First Avenue,
  Suite 4, Phoenix, AZ 85003

  
	
  Care Pros
  Staffing, Inc.

  	
   

  	
  Dan Ross, 837 Parkview Circle, Allen, TX 75002

  
	
  Baker Anderson
  Christie, Inc.

  	
   

  	
  Robin Minor, 2124 Union St., Suite D, San Francisco,
  CA 94123

  
	
  New Age
  Staffing, Inc.

  	
   

  	
  Corporation Service Company, 2711 Centerville Road,
  Suite 400, Wilmington, DE 19808

  
	
  PSR Nurses, Ltd.

  	
   

  	
  Robin Riddle, 14114 Dallas Parkway, Suite 600,
  Dallas, TX 75254

  
	
  Nurses Network,
  Inc.

  	
   

  	
  Capitol Corporate Services, Inc., 455 Capitol Mall,
  Suite 27, Sacramento, CA 95814

  

 

The
remainder of Section 21 shall remain as originally written.

The parties acknowledge and agree to the terms of this Addendum and
incorporate the terms of this Addendum into the Agreement.  All defined terms appearing in the Agreement
shall have the same meaning when used in this Addendum.

	
  SYSTRAN FINANCIAL SERVICES CORPORATION

  	
   

  	
   

  
	
   

  
	
  By:

  	
   

  	
  /s/ Illegible

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Vice President

  	
   

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
   

  
	
   

  
	
  Arizona
  Home Health Care/Private Duty, Inc.

  	
  New Age Staffing, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ James J.
  TerBeest

  	
   

  	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial
  Officer

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  
	
   

  	
   

  	
   

  
	
  Care Pros Staffing, Inc.

  	
  PSR Nurses, Ltd.

  	
   

  
	
   

  	
  By PSR Nurse Recruiting, Inc., its General Partner

  
	
  By:

  	
   

  	
  /s/ James J.
  TerBeest

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial
  Officer

  	
   

  	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  
	
   

  	
   

  	
   

  
	
  Baker Anderson Christie, Inc.

  	
   

  	
   

  
	
   

  	
  Nurses Network, Inc.

  	
   

  
	
  By:

  	
   

  	
  /s/ James J.
  TerBeest

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Chief Financial
  Officer

  	
   

  	
  By:

  	
   

  	
  /s/ James J. TerBeest

  	
   

  
	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
  February 8, 2007

  	
   

  
																			

 

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 11Exhibit 10.86

	
  

  	
  *** Certain
  confidential information contained in this document (indicated by asterisks)
  has been omitted and filed separately with the Securities and Exchange
  Commission pursuant to a request for Confidential Treatment under 17 C.F.R.
  Sections 200.80(b)(4), 200.83 and 230.406.

  

 

SYSTRAN
FINANCIAL SERVICES CORPORATION FACTORING AGREEMENT

This Factoring
Agreement dated February 8, 2007 (the “Agreement”) is between SYSTRAN Financial
Services Corporation (“SYSTRAN”) and its successor or assigns and Crdentia
Corp., Health Industry Professionals, L.L.C., Mint Medical Staffing Odessa, LP,
Prime Staff LP, and Staff Search Acquisition Corp. (individually and
collectively the “Customer” or “Customers”), whose addresses are set forth on
the last page hereof.

1.                                      DEFINITIONS

All capitalized terms
used and not defined in this Agreement shall have the meaning in the Uniform
Commercial Code as in effect from time to time in Oregon (the “UCC”).  The following terms shall have the following
meaning.

(a)          “Bill(s)”
means any right to payment for services rendered or goods sold by Customer to a
Debtor evidenced by a writing which complies with the general requirements of
SYSTRAN as those may be set forth in the Customer Information Manual, as
described in Paragraph 2.5.

(b)         “Chargeback”
the debit of a Bill or a “Special Purchase Bill(s)” to a Customers’ account.

(c)          “Commencement Date”
means the date that the Customer first receives funds from SYSTRAN pursuant to
the terms of the Agreement.

(d)         “Commercial Account”
means any non “Transportation Account”.

(e)          “Debtor”
means a person or entity obligated to pay a Bill.

(f)            Material Adverse Effect” means, at any time, a material adverse
effect upon (i) the business, condition (financial or otherwise), operations,
performance, properties or prospects of Customer, (ii) the ability of Customer
to perform its respective obligations under this Agreement, any factoring
document or any document, agreement, guaranty, or instrument executed in
connection herewith, or (iii) the ability of SYSTRAN to enforce the terms of
this Agreement, or any document, agreement, guaranty, or instrument executed in
connection herewith.

(g)         “Maximum Approved Credit Line” means the amount
of credit that is approved for Customer by SYSTRAN inclusive of deposit and
advances against purchases of Bills that Customers’ total account is not to
exceed.

(h)         “Maximum Debtor Credit Limit” means the maximum
outstanding dollar amount and/or percentage concentration of Customers’ unpaid
Bills open with SYSTRAN owing by an individual Debtor and/or its affiliates at
any given time under the term of the Agreement.

(i)             “Minimum
Anticipated Volume” means the dollar amount of Bills funded by SYSTRAN that
Customer presents each month during the term of the Factoring Agreement for
purchase by SYSTRAN  that meet the
Maximum Approved Credit Line criteria and Maximum Debtor Credit Limit(s)
established from time to time at the sole discretion of SYSTRAN in connection
with Customers’ account.

(j)             “Obligation”
means all indebtedness, liabilities and obligations whatsoever and of whatever
nature owed by each Customer to SYSTRAN, or any of its affiliates, whether
direct or indirect, absolute or contingent, due or to become due, now existing
or hereafter arising and how ever evidenced or acquired, whether joint or
several or joint and several.

(k)          “Recourse”
means the right to Chargeback a Bill(s) or “Special Purchase Bill(s)” to
Customer.

(l)             “Special
Purchase Bill(s)” means the purchase by SYSTRAN of Customers’ outstanding
and unpaid Bills that have either been previously billed by Customer, financed
by a lender, or sold and assigned to another company who buys Bills.  Special Purchase Bills shall be subject to
all provisions of this Agreement.

(m)       “Transportation
Account” means any Debtor doing business primarily with any aspect of the
transportation industry such as freight carriers, brokers, forwarders,
consolidators, and rail agents with the exception of steamship companies.

2.                                      PURCHASE OF BILLS

2.1                                 Customer
agrees to present on a monthly basis, a Minimum Anticipated Volume of Bills for
SYSTRAN to purchase which shall be equal to ***.  SYSTRAN, at its sole discretion, may purchase
such Bills.  Bill(s) and or Special
Purchase Bill(s) shall herein collectively be referred to as “The
Bill(s)”.  Customer shall submit to SYSTRAN an original and one (1)
copy, along with any document which SYSTRAN deems necessary, of each Bill which
shall be attached to a schedule form provided by SYSTRAN.  Should any Debtor require any
additional documentation as a prerequisite to payment, Customer will also
provide such documentation with each Bill. For a Transportation Account,
Customer shall also submit one (1) copy of the respective bill of lading. The bill
of lading must be signed by the Customer, the shipper, and the consignee if the
consignee’s signature is necessary for payment.

2.2                                 SYSTRAN
will settle with the Customer by providing to Customer by U.S. Mail, electronic
mail, or via facsimile a settlement statement setting forth The Bill(s) and/or
Special Purchase Bills purchased, the amount paid, and any deductions made for
fees, charges or the “Deposit” and deposit funds as follows: [Customer shall choose one option].  ̈
Deliver overnight funds due Customer via Federal Express next day service air.  ̈
Wire transfer funds due Customer into bank account specified by Customer on
wire authorization form.  ̈ ACH funds due
Customer.

2.3                                 Any
payment to Customer may be reduced by SYSTRAN by any amount due from Customer
to SYSTRAN, including but not limited to Chargebacks, fees and costs.

2.4                                 SYSTRAN
may give notice to the Debtors of the assignment of  The Bill(s) by placing a legend on The
Bill(s) stating The Bill(s) have been sold and assigned to SYSTRAN and are payable
to SYSTRAN at an address designated by SYSTRAN. 
Customer will not attempt to direct payment to any place other than to
the SYSTRAN designated address. 
Customer, jointly and severally, agrees to pay all costs and expenses
incurred by SYSTRAN in giving such notice. 
All proceeds of The Bill(s) received by Customer shall be delivered to
SYSTRAN within two (2) business days of receipt in the identical form of
payment received by Customer, provided that Customer shall be deemed to hold
such proceeds in trust and for the benefit of SYSTRAN until such delivery is
made to SYSTRAN.  In the event that
Customer collects directly from the Debtor, The Bill(s) which have been sold to
SYSTRAN and Customer does not deliver immediately to SYSTRAN the identical form
of payment received by Customer, Customer will be charged an administrative fee
equal to *** of the face amount of The Bill(s) collected directly.  Customer agrees that any collection directly
from the Debtor by Customer of The Bill(s) which have been sold to SYSTRAN will
be considered a default under the terms of this Agreement.

2.5                                 SYSTRAN
has or will provide to Customer a Customer Information Manual, which is a guide
to policy and procedures concerning daily submission of The Bill(s), collection
efforts, and other matters.  The Customer
Information Manual (the “Manual”) is not part of this Agreement. The procedures
set forth in the Manual are only guidelines to ensure the efficient operation
of SYSTRAN’s purchase of The Bill(s). 
SYSTRAN may change any procedure in the Manual at any time, and may
choose not to follow procedures in the Manual at its discretion.

3.                                      FEE(S)

3.1                                 SERVICE
FEE(S).  Customer, jointly and severally,
shall pay a fee on the face amount of all of The Bill(s) purchased by SYSTRAN
as reflected on Exhibit A attached hereto (the “Service Fee(s)”).  The Service Fee(s) shall be payable upon the
purchase of any of The Bill (s) by SYSTRAN, and SYSTRAN may collect Service
Fee(s) either from payments owed to Customer or may bill the Customer periodically.  SYSTRAN may, upon prior notice to Customer,
change any fee and such change shall be effective upon receipt of the notice to
Customer; provided, that SYSTRAN may change the

***
Certain confidential information in this document has been omitted pursuant to
a request for Confidential Treatment and filed separately with the Commission.

 1
 

amount
of any fee caused by a change in SYSTRAN’s cost of funds without prior notice
to Customer, but must notify Customer of such change on Customers’ next settlement
statement.  A fee change due to a change
in cost of funds will be effective upon the date of the change which will be
reflected on Customers’ settlement statement. 
If, at any time during the term of this Agreement, there is an event of
default by Customer including, but not limited to, a Federal Tax Lien filed
against and attaching to the property of Customer or any of its principals, and
the tax lien is satisfied to allow continued funding pursuant to this
Agreement, until such time as such event of default is cured, SYSTRAN shall
increase all of Customers’ Service Fee(s) by no less than *** discount fee on
the face of The Bill(s).  Notwithstanding
the discretion granted to SYSTRAN under this Section 3.1 to increase fees upon
prior notice to Customer, any such fee increase shall not exceed *** of the
fees in effect at the time of such increase, provided that such restriction
shall not apply to or include: (i) any increase in the Services Fees that
results from an event of default, (ii) any increase in the Prime Plus Fee or
fees attributed to Clearance Days that occur strictly as a result of a change
in the Prime Rate (as defined in Exhibit A to this Agreement), or (iii) any
increase that results from an amendment or modification to the terms of this factoring
arrangement and evidenced in a writing signed by Customer.

3.2                                 MINIMUM
FEE. In the event that Customer fails to sell to SYSTRAN the Minimum
Anticipated Volume in any month, Customer, jointly and severally, shall pay a
minimum fee to SYSTRAN which shall be equal to the amount obtained when the
Minimum Anticipated Volume is multiplied by the current Service Fees reflected
on Exhibit “A” attached hereto and as referenced in section 3.1 above, or as
amended by SYSTRAN from time to time as reflected in Customers’ daily
settlement statement (the “Minimum Fee”). 
The Minimum Fee owing by Customer pursuant to this paragraph may be
deducted from Customers’ funding.  In the
event that Customer fails to sell the Minimum Anticipated Volume per month for
each of any two consecutive months (the “Low Volume Period”), Customers’
Service fee will be increased at the beginning of the month immediately
following the Low Volume Period at SYSTRAN’s discretion. At SYSTRAN’s
discretion, the Service Fee will be returned to the last fee in effect should
Customers’ monthly purchase volume exceed the Minimum Anticipated Volume per
month for each of two consecutive months.

3.3                                 ADDITIONAL SERVICES and VALUE FEES.  From time to time during the term of
this Agreement, Customer may request SYSTRAN to provide additional services
and/or incur additional risk. Such additional services and/or additional risk
shall include but not be limited to advances to the Customer by SYSTRAN which
are not in conformity with the terms of the Agreement, extension of Customers’
contractual recourse under the Agreement, purchases by SYSTRAN of bills which
are outside of the formulas and calculations defined in the Agreement
(hereinafter such services shall be collectively referred to as the “Additional
Services”).  Customer, jointly and
severally, shall pay SYSTRAN the cost for added value for such Additional
Services (hereinafter referred to as the “Value Fee (s)”). The Values Fee(s)
will be reflected on Customers’ daily settlement statement.

4.                                      DEPOSIT

4.1                                 In
order to secure Customers’ Obligations hereunder, Customer shall deliver to
SYSTRAN a deposit equal to *** of Customers’ Bills that are ninety (90) days
old or less computed from date of purchase (“Deposit”).

4.2                                 ADJUSTMENT
OF DEPOSIT.  The amount of Customers’
Deposit will be reviewed and, if necessary, adjusted each day.  Increases in the amount of Customers’ Deposit
will be withheld by SYSTRAN from payments to Customer. If sufficient Bills are
not purchased to fund the increase, Customer, jointly and severally, will pay
the amount of the increase upon demand. 
Decreases will be repaid to Customer from Customers’ Deposit amount.

4.3                                 REPAYMENT OF DEPOSIT. Upon termination of
the Agreement, (a) SYSTRAN may increase the Deposit percentage to ***, in its
sole discretion, and (b) all other sums that may become due to Customer by
SYSTRAN will be included in the Deposit. Any shortfall in the Deposit shall
bear interest at the rate of  ***.

5.                                      SECURITY INTEREST

5.1                                 The
purchase of The Bill(s) of Customer by SYSTRAN is absolute, subject to the
right to Chargeback.  In no event shall the purchase of
Bills hereunder be construed as a loan. 
In addition to the outright ownership of The Bill(s) purchased by
SYSTRAN, to secure the payment and performance of Customers’ Obligations to
SYSTRAN, Customer grants SYSTRAN a  security
interest in, and lien on, any and all now owned or hereafter acquired or
created assets of Customer, including without limitation all Customers’ present
and future Bill(s) and Special Purchase Bill(s), Accounts, Inventory, Deposit
Accounts, Chattel Paper, General Intangibles, Goods, Equipment, Instruments,
Investment Property, Documents, Letter-of-Credit-Rights, Commercial Tort
Claims, money, real estate and fixtures, and the Proceeds of the foregoing,
including Proceeds in the form of Inventory and/or Goods, whether tangible or
intangible, wherever located together with any and all cash and Noncash
Proceeds and products and Accessions of the forgoing (the “Collateral”).

5.2                                 FINANCING
STATEMENTS.  Customer shall not execute
or file any financing statement, supplements or amendments thereto, or any
other instruments or security agreement covering the Collateral described above
in favor of anyone other than SYSTRAN. 
Customer shall execute and deliver to SYSTRAN any financing statements,
title documents, supplements hereunder or the priority of such security
interest. CUSTOMER AUTHORIZES SYSTRAN TO SIGN ITS NAME TO ANY SUCH FINANCING
STATEMENT AND FILE SAME IN CUSTOMERS’ NAME COVERING THE COLLATERAL.  Customer, jointly and severally, shall pay
all costs of filing such statements or instruments with appropriate
governmental authorities together with the costs of all lien searches.  Customer agrees that either a carbon,
photocopy, or other reproduction of this Agreement is sufficient as a financing
statement under this Agreement.

5.3                                 SYSTRAN
may, in its sole discretion, elect to discharge any security interest, lien or
other encumbrance upon any of The Bill(s) for services rendered or goods sold
purchased by SYSTRAN.  Any such payments
and all expenses incurred in connection therewith shall be treated as a
Chargeback.  Notwithstanding the
foregoing, SYSTRAN shall have no obligation to discharge any such security
interest, lien or encumbrance.

6.                                      RECOURSE, DISPUTES AND CHARGEBACKS

6.1                                 All
of The Bill(s) are purchased by SYSTRAN from Customer with Recourse.  All of The Bill(s) may be Chargedback to
Customer at any time after ninety (90) days for a Commercial Account and
steamship companies, and sixty (60) days for Transportation Account(s) after
the purchase date of The Bill(s) if not collected from Debtor within such
period or at any time, if SYSTRAN determines, in its sole discretion, that The
Bill(s) is not collectible.  All of The
Bill(s) owing by Canadian Debtors or logistics companies are subject to
Chargeback sixty (60) days from the date of purchase by SYSTRAN. All Special Purchase Bills are subject to
Chargeback sixty (60) days from the date of purchase by SYSTRAN.  SYSTRAN shall not deem a disputed Bill or
Special Purchase Bill uncollectable without allowing Customer a reasonable time
to settle the dispute not to exceed fourteen (14) days from notice of
dispute.  It is within SYSTRAN’s
discretion as to when The Bill(s) over such time periods may be Chargedback to
Customer.

6.2                                 SYSTRAN
reserves the right, however, from time to time and at its absolute discretion,
to Chargeback to Customer any of The Bill(s) which do not conform to the
representations and warranties set forth in the Agreement or are discovered not
to conform with the reasonable standards which SYSTRAN may set for The
Bill(s).  SYSTRAN shall have a continuing
security interest in any and all of The Bill(s) which are Chargedback to the
Customer. Chargeback of any of The Bill(s) does not authorize Customer to
collect any outstanding sum owing on The Bill(s) from a Debtor.

6.3                                 COLLECTION OF BILLS.  SYSTRAN may, but is not required to, commence
any action, including legal action, to collect The Bill(s).  All costs of collection, including attorney fees,
court fees, and costs of investigation, will be charged to the Customer.  Prior to any event of default by a Debtor,
SYSTRAN will commence litigation only with Customers’ authorization.  Subsequent to an event of default, SYSTRAN
may file suit as it deems necessary without Customers’ authorization.  In the event of default, Customer hereby
grants authorization to SYSTRAN to settle or compromise any freight bill
dispute, including litigation, with any uncollected amount being subject to
Chargeback, together with all other amounts for which Customer is obligated to
SYSTRAN.

*** Certain confidential information in this document
has been omitted pursuant to a request for Confidential Treatment and filed
separately with the Commission.

 2
 

6.4                                 CLEARANCE DAYS.  Clearance Days shall mean (i) three (3)
business days for checks drawn on banks located within the United States and
for all electronic funds transfers, and (ii) three (3) business days for all
other payments.  For all purposes
and computations under this Agreement, Clearance Days will be based on the
Prime Plus Fee and added to the date on which any payment is received by
SYSTRAN.

7.                                      WARRANTIES AND REPRESENTATIONS

7.1                                 Customer
warrants and represents with respect to all of The Bill(s) sold to SYSTRAN that
(a) The Bill(s) are genuine and in all respects what they purport to be; (b)
Customer has good title to The Bill(s) and The Bill(s) are free and clear of
all encumbrances, liens and prior claims, and that the Customer has the legal
right to sell The Bill(s); (c) Customer has no knowledge of any fact which may
impair the validity of The Bill(s) or make them uncollectible in accordance
with its terms and face amount; (d) for transportation Customers, The Bill(s)
were made in accordance with the laws and the regulations of the Federal
Highway Administration or other federal regulatory agency, and the appropriate
state regulatory commission or made according to lawful and valid contracts
which Customer has executed; (e) for transportation Customers, The Bill(s) are
supported by lawful, effective and complete bills of lading or other contract
of carriage together with bona fide, genuine, valid and signed delivery
receipts, and Customer will not modify or delete any of the terms of the
original Bills or Special Purchase Bills or bill of lading with respect to
same; (f) there are no counterclaims or setoffs or defenses existing in favor
of the Debtor, whether arising from the services provided or goods sold which
are the subject of The Bill(s) or otherwise and there has been no agreement as
to the issuance or granting of any discount on The Bill(s); (g) The Bill(s) are
not a duplicate of and do not cover the same services provided or goods sold as
a Bill or Special Purchase Bill previously purchased by SYSTRAN from the
Customer or billed directly by the Customer to the Debtor; (h) Customer does
not own, control, or exercise dominion over the business of any Debtor whose
Bills or Special Purchase Bills are factored by Customer to SYSTRAN, Customer
is not a subsidiary of any Debtor and no Debtors control or exercise dominion
over the business of Customer; (i) Customer will not under any circumstances or
in any manner whatsoever interfere with any of SYSTRAN’s rights under this
Agreement in connection with SYSTRAN’s factoring of The Bill(s); (j) Customer
has not and will not pledge the credit of SYSTRAN to any person or business for
any purpose whatsoever; (k) for non-transportation Customers, until the sale by Customer to Debtor of the goods
described in The Bill(s), Customer had good title to the goods sold, the goods
were free of all encumbrances, liens and prior claims, and Customer had the
legal right to sell the goods.

7.2                                 If
the Customer is a corporation, partnership or limited liability company, it is
duly organized, existing, and in good standing under the laws of See Addendum, and its organization I.D. number is set forth
on the Addendum.  If Customer represents
him or herself to be a sole proprietorship or a partnership, such
representation shall be deemed conclusive and binding upon Customer.  Customer is duly qualified to do business and
is in good standing in every other state in which such qualification is
required except where failure to qualify in such jurisdictions will not result
in a Material Adverse Effect.  If
Customer is a corporation, partnership or limited liability company, execution,
delivery and performance hereof are within its corporate or entity powers, have
been duly authorized, and are not in contradiction of law or the terms of its
charter, by-laws, partnership agreement, operating agreement or other entity
papers, or any indenture, agreement or undertaking to which it is a party or by
which it is bound, except that Customer
makes no representation or warranty as to any consents that may be required
from the holders of Crdentia Corp.’s 8% Convertible Debentures Due January 6,
2009.  In addition, the Customer
has all licenses and certificates necessary for the operation of its business
and the issuance of The Bill(s). 
Customer represents and warrants that the information contained on
Schedule 1, the Corporate Structure Worksheet, is true and accurate and
Customer agrees to notify SYSTRAN in writing within five (5) business days, of
any change thereof.

8.                                      AUTHORITY

Customer
irrevocably authorizes SYSTRAN or any person designated by SYSTRAN to: bill,
receive and collect all amounts which may be due or become due to Customer from
Debtors and to use Customers’ name for purposes of billing and collection of
amounts due; delete Customers’ address on all invoices mailed to Debtor and
substitute SYSTRAN’s address; receive, open and dispose of all mail addressed
to Customer or Customers’ trade name at SYSTRAN’s address; negotiate checks
received in payment whether payable to Customer or to SYSTRAN, endorse the name
of Customer or Customers’ trade name on any checks or other evidences of
payment that may come into the possession of SYSTRAN on The Bill(s) purchased
by SYSTRAN and on any invoices or other document relating to any of The
Bill(s); in Customers’ name, or otherwise, demand, sue for, collect and get or
give releases for any and all monies due or to become due on The Bill(s);
compromise, prosecute, or defend any action, claim or proceeding as to The
Bill(s) purchased by SYSTRAN; take all steps necessary to ensure payment of
such amounts due and do any and all things in Customers’ name necessary and
proper to carry out the purpose intended by this Agreement.

9.                                     ADDITIONAL DOCUMENTS

The
Customer shall execute and deliver all such additional and further instruments
as may be reasonably requested by SYSTRAN in order to more completely vest in
and assure to SYSTRAN and make available to it, the property and rights
herewith or hereafter granted or assigned and transferred to SYSTRAN as
Collateral and to evidence the sale of The Bill(s) to SYSTRAN and to carry into
effect the provisions and intent of this Agreement.

10.                               LOCATION OF BOOKS AND RECORDS, PLACE OF BUSINESS

Customers’
place of business is the one set forth in this Agreement and all of its books,
accounts, correspondence, papers and records pertaining to the services
performed or sales of products are located there, and all such books, accounts,
correspondence, papers and records will be opened for SYSTRAN’s inspection at
all reasonable times.

11.                               INDEMNIFICATION OF SYSTRAN; SALES AND EXCISE TAXES

Customer
will indemnify and hold SYSTRAN harmless against any and all liability, loss or
expense, including attorney’s fees and costs, caused by or arising out of any
claims or alleged claims asserted relating in any manner to The Bill(s)
purchased by SYSTRAN hereunder or subject to SYSTRAN’s security interest,
including, but not limited to, claims asserted against SYSTRAN pursuant to
Chapter 5, Title 11 of the United States Code.  In the event any sales or excise taxes are
imposed by any state, federal or local authorities with respect to any of The
Bill(s) sold and assigned hereunder, where such taxes are required to be
withheld or paid by SYSTRAN, Customer shall also indemnify SYSTRAN and hold it
harmless with respect to all such taxes and hereby authorizes SYSTRAN to charge
to Customers’ account any such tax that is paid or withheld by SYSTRAN.  SYSTRAN may charge the Deposit or initiate
legal proceedings to collect any amount due under this paragraph.  This paragraph shall survive and remain
effective following the termination of the Factoring Agreement.

12.                               FINANCIAL INFORMATION

So
long as Customer factors or has any absolute or contingent obligation of any
kind owing to SYSTRAN, the Customer will provide information regarding the
business, affairs and financial condition of Customer and its subsidiaries as
SYSTRAN may reasonably request, including financial statements.

13.                               BANKRUPTCY

Customer
agrees to notify SYSTRAN of any voluntary or involuntary bankruptcy petition
filed by or against it or any guarantor within twenty-four (24) hours of such
filing.

***
Certain confidential information in this document has been omitted pursuant to
a request for Confidential Treatment and filed separately with the Commission.

 3
 

14.                               REORGANIZATION, ACQUISITIONS, CHANGE OF NAME OR
LOCATION

Customer
will not, and will not permit any subsidiary to merge or consolidate with or
into any corporation or other entity, or sell, lease, transfer, or otherwise
dispose of all or any substantial part of its assets, whether now owned or
hereafter acquired.  Customer shall
notify SYSTRAN in writing not less than thirty (30) days prior to (a) any
change of its name or use of any trade names; or (b) any change in the address
of the chief executive office and/or chief place of business of Customer or the
location of any records pertaining to The Bill(s).

15.                               LITIGATION

Except
as disclosed in writing, Customer represents and warrants to SYSTRAN as
follows: There are no suits or proceedings pending or to the knowledge of
Customer, threatened against or affecting Customer or any of its subsidiaries
which, if adversely determined, would have a Material Adverse Effect on the
financial condition or business of Customer and its subsidiaries and there are
no proceedings by or before any governmental commission, board, bureau, or
other administrative agency pending or, to the knowledge of Customer,
threatened, against Customer or any of its subsidiaries.  Further, Customer represents and warrants
there is no claim, loss contingency, or proceeding, whether or not pending,
threatened or imminent, against or otherwise affecting Customer that involves
the possibility of any judgment or liability not fully covered by insurance or
that may result in a material adverse change in the business, properties, or
condition, financial or otherwise, of Customer.

16.                               TRADE NAMES

Customer
represents and warrants to SYSTRAN that it utilizes no trade names or assumed
business names in the conduct of its business except for the names listed in
Section 16 of the Addendum to the Factoring Agreement.

17.                               TAXES

Except
as disclosed in the Schedule of Outstanding Tax Returns attached to this
Agreement, Customer represents and warrants to SYSTRAN that: Customer has filed
all federal, state, and local tax returns and other reports it is required to
file and has paid or made adequate provision for payment of all such taxes,
assessments, and other governmental charges.

18.                               TERM AND TERMINATION

18.1                           This Agreement is for a term of forty-eight
(48) full months to begin on the Commencement Date as defined in paragraph 1(c)
herein.  The term of this Agreement shall
renew automatically for consecutive twelve (12) month terms unless sooner
terminated in accordance with the terms of the Agreement.  Customer may terminate this Agreement
effective at the end of any term by giving thirty (30) days prior written
notice to SYSTRAN at the address set forth in this Agreement.  Customer may continue to offer any of The
Bill(s) to SYSTRAN during such thirty (30) day period.  SYSTRAN may terminate this Agreement at any
time and for any reason by notifying Customer in writing of such termination.

18.2                           All of Customers’ representations,
warranties, and other provisions of this Agreement shall survive such termination
until SYSTRAN has been paid in full and Customer has fully performed all of its
obligations.  In addition, should any
transfer of money or property to SYSTRAN hereunder be avoided in a bankruptcy
proceeding involving Customer, any Debtor of Customer, or otherwise, then
Customers’ Obligations hereunder shall be reinstated and/or supplemented to the
extent of the avoided transfer, whether or not this Agreement has otherwise
been terminated.

18.3                           Notwithstanding the foregoing, Customer
has the option to terminate this Agreement prior to the end of any term by
giving SYSTRAN thirty (30) days prior written notice.  Customer may continue to offer any of The
Bill(s) to SYSTRAN during such thirty (30) day period.  Customer shall be deemed to have terminated
this Agreement prior to the end of any term on the date that Customer shall
have ceased presenting The Bill(s) to SYSTRAN in the normal course for an
uninterrupted period of thirty (30) days (“Deemed Termination”).  Upon notice of early termination, or the date
of a Deemed Termination by Customer, prior to the end of any term, whether or
not Customer continues to offer The Bill(s) to SYSTRAN during the thirty (30)
day notice period applicable to Customer, Customer, jointly and severally,
shall be obligated to pay to SYSTRAN, and Customers’ Deposit may be charged, an
early termination premium (“Early Termination Premium”) in an amount equal to
the following: (i) *** if the termination occurs prior to the first anniversary
of the Commencement Date, (ii) *** if the termination occurs on or after the
first anniversary of the Commencement Date and prior to the second anniversary
of the Commencement Date, and (iii) *** if the termination occurs on or after
the second anniversary of the Commencement Date and prior to the end of the
initial term or any renewal term.

18.4                           The termination date shall be thirty (30)
days after SYSTRAN’s receipt of the termination notice or on the Deemed
Termination date, unless a termination notice specifies a date that is more
than thirty (30) days but less than sixty (60) days after SYSTRAN’s receipt of
the termination notice.

18.5                           If SYSTRAN terminates this Agreement
prior to the end of any term upon any default in the performance of Customer
under this Agreement, in view of the impracticality and extreme difficulty in
ascertaining actual damages and by mutual agreement of the parties as to the
reasonable calculation of SYSTRAN’s lost profits as a result thereof, Customer,
jointly and severally, shall be obligated to pay SYSTRAN upon the effective
date of such termination, and Customers’ Deposit may be charged, a premium in
an amount equal to the Early Termination Premium as set forth above. If Customer terminates this Agreement pursuant to the
terms thereof, Customer shall immediately remit and pay to SYSTRAN, at the time
of termination, all Obligations due and owing to SYSTRAN and/or its affiliates
by Customer, under this and any other Agreement.

19.                               EVENTS OF DEFAULT

19.1                           The
following shall be events of default under the terms of this Agreement:  (a) default by Customer or any guarantor
in the payment and/or performance of any Obligation to SYSTRAN, (b) default by
Customer or any guarantor in the payment or performance of any obligation to
any financial institution (other than SYSTRAN), or bank, provided that such
aggregate obligations are *** or greater; (c) Customer or any guarantor agrees
to the appointment of a receiver for its assets, makes general assignment for
the benefit of creditors or declares that it is unable to pay its debts as they
mature; (d) Customer or any guarantor files a proceeding under any law for the
relief of Debtors, including but not limited to, Title 11 of the United States Code, referred to as “The
Bankruptcy Code” or any other similar law which may exist; (e) any
involuntary petition under the Bankruptcy Code
or similar statute has been filed against the Customer or any guarantor and not
dismissed within sixty (60) days after filing without the entry of an order for
relief; (f) the entry of any judgment(s) against Customer that in the aggregate
are *** or greater, (g) the issuance of an attachment, execution, tax
assessment or similar process against the Customer or its property  or any guarantor (or its property) which is
not released within ten (10) days of its attachment; (h) any guaranty from any
Customer guarantor shall cease to be in full force and effect for any reason
other than the dissolution of a corporate guarantor that does not result in a
Material Adverse Effect or, with respect to a validity guaranty from any
Customer employee, the revocation of such guaranty so long as SYSTRAN receives
a replacement guaranty satisfactory to SYSTRAN in its sole discretion within 30
days of such revocation; (i)
SYSTRAN, in its sole discretion, determines that a Material Adverse Effect has
occurred with respect to Customer or any guarantor or that a material adverse
change has occurred in the in the value of the Collateral or in SYSTRAN’s
interest in the Collateral.

19.2                           In
addition to all other remedies provided by law, upon the occurrence of an event
of default, SYSTRAN may immediately, and without notice to the Customer,
increase the amount of the Deposit required under Section 4 of this Agreement
to *** of the outstanding amount of Bills purchased from the Customer (“***
Deposit”), and the Customer shall immediately deliver to SYSTRAN funds
sufficient to create this *** Deposit.

19.3                             SYSTRAN may, upon default under the Agreement
or any of the agreements, collect any Obligation owing to SYSTRAN or any of its
affiliates by debiting Customers’ account, attach any funds owing to Customer
by SYSTRAN or its affiliates, and exercise any other remedy available to

***
Certain confidential information in this document has been omitted pursuant to
a request for Confidential Treatment and filed separately with the Commission.

 4
 

SYSTRAN
under the Agreements or at law. Any deficiency arising under this Agreement
shall accrue interest at the annual rate of *** or the highest amount allowed
by law, whichever is higher, from the date the deficiency is incurred.

20.                               EXPENSES

20.1                           Customer shall reimburse SYSTRAN for all
reasonable fees, costs and expenses incurred by SYSTRAN in relation to this
Agreement.  SYSTRAN may, at any time, and
without regard to any remedy listed above, demand from Customer payment of the
outstanding fees, costs and expenses.

20.2                           ATTORNEYS’
FEES. With respect to any default under this Agreement, Customer shall
reimburse SYSTRAN for all costs and expenses incurred by attorneys, including
both SYSTRAN’s in-house attorneys and outside attorneys’ and paralegals’
whether or not a lawsuit or other court action is actually filed in connection
with the event of default.  In the event
that a suit, action, arbitration, or other proceeding of any nature, including,
without limitation, any proceeding under The Bankruptcy Code,
any action seeking a declaration of rights or an action for rescission is
instituted to interpret or enforce this Agreement, including, but not limited
to such fees and costs associated with trial and appeals, Customer, jointly and
severally, agrees to pay the reasonable attorneys’ fees incurred in connection
with any such proceeding as awarded by the court.

20.3                           OTHER
PROFESSIONALS AND EXPERTS.  With respect
to any event of default under this Agreement, SYSTRAN in its sole discretion
may retain accountants, auditors, appraisers and other experts and the
Customer, jointly and severally, agrees to pay the professional fees, expert
fees and all other fees and costs reasonably and actually incurred in connection
with the services provided.

20.4                           NO
LIEN TERMINATION WITHOUT RELEASE.  In recognition of SYSTRAN’s right to have its
attorneys’ fees and other expenses incurred in connection with this Agreement
secured by the Collateral, notwithstanding payment in full of all Obligations
by Customer, SYSTRAN shall not be required to record any terminations or
satisfactions of any of SYSTRAN’s liens on the Collateral unless and until
Customer has executed and delivered to SYSTRAN a general release in a form
reasonably satisfactory to SYSTRAN.  Customer understands that this provision constitutes a waiver of its
rights under 9-513 of the UCC.

20.5                        JURY TRIAL WAIVER.  IN
RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM A JURY TRIAL,
THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (A) ARISING HEREUNDER, OR (B) IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH
RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY FURTHER
WAIVES ANY RIGHT TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN
WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
WAIVED; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND
THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO
TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

21.                               JURISDICTION AND VENUE

This
Agreement shall be deemed to be a contract under the laws of the State of
Oregon and for all purposes shall be governed by and construed in accordance
with the laws of that state.  Customer
irrevocably agrees that any legal action or proceeding brought by or against
Customer with respect to the Agreement shall be brought in the courts of the
State of Oregon or in the U.S. District Court for the District of Oregon.  Customer consents to the jurisdiction of such
courts and that the venue for any such action shall be the County of
Multnomah.  This provision shall not
limit the right of SYSTRAN to bring such actions or proceedings against
Customer in the court of such other states or jurisdictions where Customer may
be subject to jurisdiction.  Customer
expressly authorizes service of process in any such suit or action on its
behalf upon Registered Agent:     See Addendum at (address)
See Addendum or upon such other agent as SYSTRAN may approve in writing,
as its agent for such purposes and that service may be deemed complete upon
delivery via expedited national overnight delivery service.

22.                               WAIVER, NOTICE

The
waiver by SYSTRAN of the breach of any term of this Agreement or of the
compliance therewith shall not be construed as a waiver of any other breach or
compliance.  Notices from either party to
the other shall be given in writing and mailed postage prepaid, registered or certified
mail, or placed in the hands of a national overnight delivery service,
addressed to the addresses set forth opposite each party’s name below, or at
such other address as either party may hereafter advise the other in writing.

23.                               ASSIGNMENT

Customer
may not assign any of its rights or obligations hereunder.  SYSTRAN may assign or grant a security
interest in this Agreement or in any of The Bill(s) purchased by SYSTRAN.  SYSTRAN may assign any of its rights and
remedies with respect to The Bill(s) including the right to notify Debtors to
make payment to SYSTRAN’s assignee.

24.                               SEVERABILITY

The
provisions of this Agreement are severable and if any of these provisions shall
be held by any court of competent jurisdiction to be unenforceable such holding
shall not affect or impair any other provisions hereof.

25.                               COMPLETE UNDERSTANDING

This
Agreement comprises the complete understanding among the parties and may only
be varied by a writing executed by the parties hereto.  Paragraph headings are for convenience only.

26.                               THIRD PARTY CONSULTATION

Customer
hereby agrees and acknowledges that it has had the opportunity to seek out and
consult with legal counsel and/or independent business advisors of its own
choosing in connection with the negotiation, execution and delivery of this
Agreement.  This Agreement shall be
construed without regard to any presumption or rule requiring that it be
construed against the party causing this Agreement, or any part hereof to be
drafted.

27.                               NO OFFER/COMMITMENT

The
presentation of this Agreement to Customer does not constitute either an offer
or commitment to purchase The Bill(s) or to extend credit to Customer.

28.                               MULTIPLE CUSTOMERS/JOINT AND SEVERAL LIABILITY

If
more than one Customer executes this Agreement, the following provision apply: (a) Each Customer agrees that it is
jointly and severally, directly, and primarily liable to SYSTRAN for payment in
full of all the Obligations and that such liability is independent of the
duties, obligations, and liability of each and all of the other joint and
several Customers.  SYSTRAN may bring a
separate action or actions on the Obligations against each, any or

***
Certain confidential information in this document has been omitted pursuant to
a request for Confidential Treatment and filed separately with the Commission.

 5
 

all Customers, whether an action is brought
against any other or all of such Customers or any one or more of Customers is
or is not joined therein.  (b) Each Customer agrees that any
release that may be given by SYSTRAN to any one or more of Customers or any
guarantor of the Obligations shall not release any other Customer from its
obligations hereunder.  (c) Each Customer hereby waives
any right to assert against SYSTRAN any defense (legal or equitable), setoff, counterclaim
or claims that such Customer individually may now or any time hereafter have
against another Customer or any other person liable to SYSTRAN in any manner or
way whatsoever.  (d)
Any and all present and future debt and other obligations of any Customer to
any other Customer are hereby subordinated to the full payment and performance
of the Obligations; provided, however, such debt and other obligations may be
incurred and repaid, subject to the terms of this Agreement, as long as no
event of default shall have occurred and not have been waived.  (e) Each Customer is
presently informed as to the financial condition of each of the other Customers
and of all other circumstances that a diligent inquiry would reveal and that
bear upon the risk of nonpayment of the Obligations.  Each Customer hereby covenants that it will
continue to keep itself informed as to the financial condition of all other
Customers, the status of all other Customers, and of all circumstances that
bear upon the risk of nonpayment.  Absent
a written request from any Customer to SYSTRAN for information, each Customer
hereby waives any and all rights it may have to require SYSTRAN to disclose to
such Customer any information that SYSTRAN may now or hereafter acquire
concerning the condition or circumstances of any Customer.  (f) Each Customer waives all
rights to notices of default, existence, creation, or incurring of new or
additional indebtedness and all other notices of formalities to which such
Customer may, as a joint and several Customer hereunder, be entitled.  (g) Each Customer
hereby irrevocably appoints Crdentia Corp. (the “Agent”), and each of its
officers and employees, as agents for its behalf to request, receive, and
direct the manner of disbursement of purchase proceeds; to execute and deliver
certificates, reports, instructions, agreements and other documents; to furnish
information; to make elections as to fess and other matters; to give and
receive notices and communications; and to take any and all other actions of every
nature in connection with this Agreement and Purchase and the Obligations.  SYSTRAN may rely on any such actions of Agent
and its officers and employees as fully as if such actions had been taken
directly by each such Customer, and SYSTRAN shall be fully protected in doing
so.  Each Customer hereby authorizes
SYSTRAN to wire funds into a common bank account controlled by Agent or to make
the disbursement check payable to Agent or such other person or persons designated
by Agent.  Each Customer hereby represents
to SYSTRAN that this common bank account is being maintained for each
Customers’ convenience and that a portion of funds paid or otherwise disbursed
by SYSTRAN pursuant to this Agreement will be held for the benefit of each
Customer in proportion to the amount of Bills Purchased or Collateral.

29.                               CREDIT INFORMATION

Customer
authorizes SYSTRAN or any of its affiliates to obtain credit bureau reports,
and make other credit inquiries that it determines are necessary.  On Customers’ written request, SYSTRAN will
inform Customer whether SYSTRAN has requested a consumer credit report and the
name and address of any consumer credit reporting agency that published a
report.  Customer acknowledges that
without further notice SYSTRAN may use or request additional credit bureau
reports to update its information so long as Customer obligations to SYSTRAN
are outstanding.

30.                               GUARANTORS

The parties acknowledge
that James Durham, James TerBeest, AHHC
Acquisition Corporation, Arizona Home Health Care/Private Duty, Inc., Baker
Anderson Christie, Inc., BAC Acquisition Corporation, Care Pros Staffing, Inc.,
CPS Acquisition Corp., CRDE Corp., GHS Acquisition Corporation, HIP Acquisition
Corporation, HIP Holding Inc., iVOW Acquisition Corporation, NAS Acquisition
Corporation, New Age Staffing, Inc., NNI Acquisition Corporation, Nurses
Network, Inc., PSR Nurses, Ltd., Prime Staff LP, PSR Nurse Recruiting, Inc.,
and PSR Nurses Holdings Corp.  have
executed Validity Guaranties and/or Collateralized Guaranties for the Obligations
of Customer arising hereunder, and that SYSTRAN would not enter into this
Factoring Agreement without said guaranties.

SYSTRAN FINANCIAL
SERVICES CORPORATION

	
  By:

  	
      /s/
  Illegible

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  
	
  Address: 4949 SW
  Meadows Drive

  	
   

  	
   

  
	
  Suite 500

  	
   

  	
   

  
	
  Lake Oswego, Oregon 97035

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

	
  Crdentia Corp.

  	
   

  	
   

  
	
   

  	
   

  	
  WITNESS:

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
     /s/
  James J. TerBeest

  	
   

  	
  By:

  	
  /s/ Shirley
  Prichard

  	
   

  
	
  Print Name:

  	
  James J. TerBeest

  	
   

  	
  Print Name:

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  
	
  Address: 5001
  LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
  Dallas, TX 
  75244

  	
   

  	
   

  
											

 

	
  Health Industry Professionals, L.L.C.

  	
   

  	
   

  
	
   

  	
   

  	
  WITNESS:

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
     /s/
  James J. TerBeest

  	
   

  	
  By:

  	
  /s/ Shirley
  Prichard

  	
   

  
	
  Print Name:

  	
  James J. TerBeest

  	
   

  	
  Print Name:

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  
	
  Address: 5001
  LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
  Dallas, TX 
  75244

  	
   

  	
   

  
											

 

(Signatures
continued on next page)

***
Certain confidential information in this document has been omitted pursuant to
a request for Confidential Treatment and filed separately with the Commission.

 6
 

 

	
  Mint Medical Staffing Odessa, LP

  	
   

  	
   

  
	
  By CRDE Corp.,
  its General Partner

  	
   

  	
  WITNESS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
      /s/
  James J. TerBeest

  	
   

  	
  By:

  	
  /s/ Shirley
  Prichard

  	
   

  
	
  Print Name:

  	
  James J. TerBeest

  	
   

  	
  Print Name:

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  
	
  Address: 5001 LBJ
  Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
  Dallas, TX 
  75244

  	
   

  	
   

  
	
   

  	
   

  	
   

  
											

 

	
  Prime Staff LP

  	
   

  	
   

  
	
  By CRDE, Corp.,
  its General Partner

  	
   

  	
  WITNESS:

  
	
   

  	
   

  	
   

  
	
  By:

  	
      /s/
  James J. TerBeest

  	
   

  	
  By:

  	
  /s/ Shirley
  Prichard

  	
   

  
	
  Print Name:

  	
  James J. TerBeest

  	
   

  	
  Print Name:

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  
	
  Address: 5001
  LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
  Dallas, TX 
  75244

  	
   

  	
   

  
	
   

  	
   

  	
   

  
											

 

	
  Staff Search Acquisition Corp.

  	
   

  	
   

  
	
   

  	
   

  	
  WITNESS:

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
      /s/
  James J. TerBeest

  	
   

  	
  By:

  	
  /s/ Shirley
  Prichard

  	
   

  
	
  Print Name:

  	
  James J. TerBeest

  	
   

  	
  Print Name:

  	
  Shirley Prichard

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Address:

  	
   

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  	
   

  	
   

  	
   

  
	
  Address: 5001
  LBJ Freeway, Suite 850

  	
   

  	
  Phone:

  	
   

  	
   

  
	
  Dallas, TX 
  75244

  	
   

  	
   

  
											

 

*** Certain
confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission.

 7
 

Exhibit A

To
Factoring Agreement Dated February 8, 2007

The terms used in this Exhibit A have the same definitions as those used
in the Factoring Agreement.  In case of
conflict of definition, the definitions in this Exhibit “A” shall prevail.

All fees referred to below shall collectively be
referred to as “Service Fees.”

Funds
Employed:

Customer  will pay a fee at an annual rate equal to ***
of all funds employed to purchase Bills (the “Prime Plus Fee”).  “Prime” means the greater of: (i) the Prime
Rate or (ii) ***.  The Prime Plus Fee
shall be calculated on the basis of a 360-day year and the actual number of
days elapsed in each month, provided however the Prime Plus Fee for any month
shall not be less than *** (“Minimum Prime Plus Fee”).  Funds
employed shall be calculated by SYSTRAN on a daily basis based upon bills
unpaid and outstanding, less the Deposit. 
A change in the Prime Plus Fee due to a Prime Rate change will be
effective upon the date of the change (subject to any maximum or minimum
limitation on fees specified by applicable law), which will be indicated on the
settlement statement.  “Prime Rate”
means the prime commercial rate of interest per annum as announced from time to
time by the Wall Street Journal as the prevailing “Prime Rate,” from time to
time in effect.  If the Prime Rate is
reflected as a range, then the Prime Rate as defined herein shall be the
highest amount in said range.  SYSTRAN
shall have the right, from time to time, to designate any other reference
source as the reference for determining the Prime Rate under this Agreement.

Managed
Account:

A managed account shall also be created for all Bills that SYSTRAN does
not purchase and all Bills which Customer does not factor (the “Managed
Account”).  The Deposit on the Managed
Account is ***.

The
above Service Fees may be deducted from Customers’ funding pursuant to the
Factoring Agreement or SYSTRAN may bill Customer.

	
  SYSTRAN FINANCIAL SERVICES CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Illegible

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Crdentia Corp.

  
	
   

  
	
  By:

  	
  /s/ James J.
  TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Health Industry Professionals, L.L.C.

  
	
   

  
	
  By:

  	
  /s/ James J.
  TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Mint Medical Staffing Odessa, LP

  
	
  By CRDE, Corp., its General Partner

  
	
  By:

  	
  /s/ James J.
  TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Prime Staff LP

  
	
  By CRDE, Corp., its General Partner

  
	
  By:

  	
  /s/ James J.
  TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Staff Search Acquisition Corp.

  
	
   

  
	
  By:

  	
  /s/ James J.
  TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
					

 

*** Certain
confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission.

 8
 

Addendum

To Factoring Agreement

The terms used in this Addendum have the same definitions as those used
in the Factoring Agreement.  In case of
conflict of definition, the definitions in this Addendum shall prevail.

Customer and Systran agree to modify Section 2, “PURCHASE OF BILLS”,
Paragraph 2.1 of the Agreement is hereby amended to the following:

Customer
may submit for purchase to SYSTRAN accounts for which a Bill/invoice has not
yet been created (the “Unbilled Invoices”) so long as (i) customer delivers a
detailed schedule of all unbilled amounts to SYSTRAN in connection with each
Purchase request, which includes a unique tracking number assigned to each such
unbilled Invoice that shall correspond to the Bill that Customer creates for
each such account, and (ii) the aggregate total amount of outstanding unbilled
Invoices at any time does not exceed *** percent of Customers’ regular
Bills.  Invoices purchased that are
ninety (90) days old or less as computed from the date of purchase Customer
shall have fourteen (14) days to present an original and one (1) copy of all
Bills related to the Unbilled Invoices, along with the proof of delivery or
service for each Bill presented, each document which shall be attached to a
schedule form provided by SYSTRAN.  SYSTRAN may purchase Bills that arise from
Customers’ permanent placement services so long as the aggregate outstanding
amount of such Bills does not exceed *** of the Bills purchases that are: (i)
ninety (90) days old or less as computed from the date of purchase and (ii) for
staffing services other than permanent placement services.

Except as noted below, the remainder of Section 2 shall remain as
originally written.

Customer and Systran agree to modify Section 2, “PURCHASE OF BILLS”,
Paragraph 2.4 of the Agreement to include the following:

Customer may mail all Bills
directly to account debtors.  All Bills
so directly mailed by Customer must be stamped with SYSTRAN’s notice of
assignment attached as noted below.  Customer
will provide copies of all Bills, together with signed copies of the respective
proof of delivery prior to SYSTRAN considering them for purchase.  Nothing in the Addendum shall obligate
SYSTRAN to purchase any Bill owing by the account debtors, listed above.  Customer must obtain SYSTRAN’s written
consent prior to adding any account debtors to the list of direct mailed
parties.

Remit
Only To:

SYSTRAN
Financial Services Corp.

P.O.
Box 730653

Dallas,
TX  75373-0653

This account is sold, assigned and payable to SYSTRAN

The
remainder of Section 2 shall remain as originally written.

Customer and Systran agree to modify Section 3, “FEE(S)” by adding a
new paragraph 3.4 to the Agreement as follows:

3.4   SYSTRAN
may in its sole discretion extend the Chargeback period that applies to any
Bill provided that the Deposit for such Bill shall increase and Customer shall
pay a fee to SYSTRAN as follows:

	
  

  	
   

  	
   

  	
   

  	
  Account Debtor Type

  	
   

  	
   

  	
   

  	
   

  
	
  Transportation/Broker

  	
   

  	
  Commercial

  
	
  Fee

  	
   

  	
  Deposit

  	
   

  	
  Chargeback Period/Recourse

  	
   

  	
  Fee

  	
   

  	
  Deposit

  	
   

  	
  Extension Period/Eligibility

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

The fee
provided above shall be fully earned and immediately due and payable upon
SYSTRAN’s agreement to extend the Chargeback period for such Bill.

The remainder of Section 3 shall remain as
originally written.

Customer and Systran agree to modify Section 4, “DEPOSIT”, Paragraph
4.1, by amending the following particulars only:

In order to secure Customers’
Obligations hereunder, Customer shall deliver to SYSTRAN a deposit equal to ***
of Customers’ Unbilled Invoices (“Deposit A”) and Customer shall deliver to
SYSTRAN a deposit equal to *** of Customers’ regular Bills that are ninety (90)
days old or less computed from the date of purchase (“Deposit B”).  Deposit A shall be repaid to Customer upon
receipt of the copy of the regular Bill/invoice by SYSTRAN, whether in the form
of a photocopy, a facsimile copy or a scanned copy via Electronic Data
Interchange. Both Deposit A and Deposit B shall be collectively known as
“Deposit” for the purposes of the remaining sections of this

The
remainder of Section 4 shall remain as originally written.

*** Certain confidential
information in this document has been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

 9
 

Customer and Systran agree to modify Section 7, “WARRANTIES AND
REPRESENTATIONS”, by adding language to Paragraph 7.2 as follows:

	
  Customer:

  	
   

  	
  Organized under the laws of:

  	
   

  	
  Organizational I.D. #

  
	
  Crdentia Corp.

  	
   

  	
  Delaware

  	
   

  	
  2811491

  
	
  Health Industry
  Professionals, L.L.C.

  	
   

  	
  Michigan

  	
   

  	
  B15096

  
	
  Prime Staff LP

  	
   

  	
  Texas

  	
   

  	
  80005911

  
	
  Staff Search
  Acquisition Corp.

  	
   

  	
  Texas

  	
   

  	
  800632536

  

 

The
remainder of Section 7 shall remain as originally written.

Customer
and SYSTRAN agree to modify Section 12 “FINANCIAL INFORMATION” of the Agreement
to include the following:

Customer shall deliver to
SYSTRAN within 120 days following the end of each of its fiscal years, audited
financial statements certified as having been prepared in accordance with
generally accepted accounting principles (“GAAP”) and as presenting fairly the
financial condition of Customer as of the date thereof and for the period then
ended (and including any management letter to Customer from such accountants).
Customer shall deliver to SYSTRAN such financial information as SYSTRAN shall
request, including, (a) within 45 days after the end of each quarter,
reasonably detailed financial statements prepared in accordance with past
practices that are consistently applied, certified by the chief financial
officer or chief operating officer of Customer as presenting fairly the
financial condition of Customer, (b) within 15 days of each quarter end
accounts receivable and accounts payable agings, in a format satisfactory to
SYSTRAN and any other reports reasonably requested by SYSTRAN, (c) quarterly
evidence of 940 payments and (d) monthly evidence of 941 payments. Customer
hereby irrevocably authorizes all accountants and third parties to disclose and
deliver to SYSTRAN at Customers’ expense all financial information, books and
records, work papers, management reports and other information in their
possession relating to Customer.  Customer
shall not change its fiscal year for accounting or tax purposes from a period
consisting of the twelve (12) month period ending on December 31 of each
calendar year, and shall not make any change in accounting treatment and
reporting practices or tax reporting treatment except as required by GAAP or
law and disclosed in writing to SYSTRAN at the address set forth herein.

The
remainder of Section 12 shall remain as originally written.

Section 16, “TRADE NAMES”.  Customer represents and warrants to SYSTRAN
that Customers’ trade names or assumed business names are limited to the
following:

All Trade Names and Assumed Business Names

	
  AHHC Acquisition Corporation

  	
  Mint Medical Staffing Odessa, LP

  
	
  Arizona Home
  & Healthcare

  	
  NAS Acquisition Corporation

  
	
  Arizona Home
  & Healthcare (AHHC)

  	
  New Age Nurses

  
	
  Arizona Home
  Health Care

  	
  New Age Staffing, Inc.

  
	
  Arizona Home
  Health Care/Private Duty, Inc.

  	
  NNI Acquisition Corporation

  
	
  BAC Acquisition
  Corporation

  	
  Nurses Network, Inc.

  
	
  Baker Anderson
  Christie, Inc.

  	
  Prime Staff

  
	
  Care Pros
  Staffing, Inc.

  	
  Prime Staff LP

  
	
  CPS Acquisition
  Corp.

  	
  Prime Staff of Texas, LP

  
	
  CRDE Corp.

  	
  Prime Staff/Mint Medical, Inc.

  
	
  Crdentia

  	
  PSR Nurse Recruiting, Inc.

  
	
  Crdentia Company

  	
  PSR Nurses Holdings Corp.

  
	
  Crdentia Corp.

  	
  PSR Nurses, Ltd.

  
	
  Crdentia
  Corporation

  	
  Staff Search

  
	
  GHS Acquisition
  Corporation

  	
  Staff Search Acquisition Corp.

  
	
  Health Industry
  Professionals

  	
  Staff Search Healthcare

  
	
  Health Industry
  Professionals, L.L.C.

  	
  Staff Search Healthcare, Inc.

  
	
  HIP Acquistion
  Corporation

  	
  Staff Search, Inc.

  
	
  HIP Holding Inc.

  	
  Travmed USA

  
	
  iVOW Acquisition
  Corporation

  	
   

  

 

The remainder of Section 16 shall remain as
originally written.

Customer and Systran agree to modify Section 18, “TERM AND
TERMINATION”, by adding language to Paragraph 18.1 as follows:

Customer
may request that SYSTRAN perform the necessary due diligence in order to
consider the Customer as a candidate for conversion to an Asset Based Loan
(“ABL”).  Any costs or expenses that
SYSTRAN incurs in connection with any conversion request are included in the
Customer

*** Certain confidential
information in this document has been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

 10
 

Obligations.  In the event SYSTRAN approves a conversion
request in its sole discretion, the Early Termination Premium (defined below)
will be waived upon funding the ABL.

The remainder of Section 18 shall remain as
originally written.

Customer and SYSTRAN agree to
modify Section 20, “EXPENSES,” by adding a new Paragraph 20.6 to the Agreement
as follows:

One or more employees or
agents of SYSTRAN may perform field examinations of the books, records and
other assets of Customer.  SYSTRAN may
perform such field examinations every 120 days (3 times each year), unless Customer
shall default under the terms of the Factoring Agreement.  After a default, no limit shall apply to the
number of field examinations that SYSTRAN may perform. Customer shall pay to
SYSTRAN a field examination fee (the “Field Examination Fee”) at the standard
rate established by SYSTRAN from time to time (which standard rate is currently
in an amount equal to *** for each day spent by each such employee or agent in
performing and/or summarizing the results of such examination, including all
necessary travel time) plus all “out of pocket” expenses.  Each Field Examination Fee shall be payable
by Customer to SYSTRAN, in whole or in part, as appropriate, on the date(s) on
which such field examination was performed.

The
remainder of Section 20 shall remain as originally written.

Customer and Systran agree to modify Section 21, “JURISDICTION AND
VENUE”, by adding language as follows:

	
  Customer:

  	
   

  	
  Registered Agent:

  
	
  Crdentia Corp.

  	
   

  	
  CorpAmerica, Inc./CSC Corporation, 2711 Centerville
  Rd, Suite 400, Wilmington, DE 19808

  
	
  Health Industry
  Professionals, L.L.C.

  	
   

  	
  Matthew J. Cahallane, 2011 Oak Street, Wyandotte, MI
  48192

  
	
  Prime Staff LP

  	
   

  	
  CRDE Corp., 14114 Dallas Parkway, Suite 600, Dallas,
  TX 75254

  
	
  Staff Search
  Acquisition Corp.

  	
   

  	
  James TerBeest, 14114 Dallas Parkway, Suite 600,
  Dallas, TX 75254

  

 

The
remainder of Section 21 shall remain as originally written.

The parties acknowledge and agree to the terms of this Addendum and
incorporate the terms of this Addendum into the Agreement.  All defined terms appearing in the Agreement
shall have the same meaning when used in this Addendum.

	
  SYSTRAN FINANCIAL SERVICES CORPORATION

  
	
  By:

  	
   /s/
  Illegible

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Crdentia Corp.

  
	
  By:

  	
   /s/ James
  J. TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Health Industry Professionals, L.L.C.

  
	
  By:

  	
   /s/ James
  J. TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Mint Medical Staffing Odessa, LP

  
	
  By CRDE, Corp., its General Partner

  
	
  By:

  	
   /s/ James
  J. TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
	
   

  
	
  Prime Staff LP

  
	
  By CRDE, Corp., its General Partner

  
	
  By:

  	
   /s/ James
  J. TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
					

 

*** Certain confidential information in this document has been omitted
pursuant to a request for Confidential Treatment and filed separately with the
Commission.

 11
 

 

	
  Staff Search Acquisition Corp.

  
	
  By:

  	
   /s/ James
  J. TerBeest

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
  Date:

  	
  February 8, 2007

  	
   

  
				

 

*** Certain
confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission.

 12

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