Document:

EXHIBIT 10.16

                 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

      THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT - TERM LOAN (this
"Amendment") is entered into as of the 30th day of November, 2004, (the
"Amendment Date") by and between BRIDGE OPPORTUNITY FINANCE, LLC ("Lender"), and
Crdentia Corp. ("Crdentia"), Baker Anderson Christie, Inc. ("Baker"), Nurses
Network, Inc. ("Nurses Network"), New Age Staffing, Inc. ("New Age"), PSR
Nurses, Ltd. ("PSR Ltd."), PSR Nurse Recruiting, Inc. ("PSR Recruiting"), PSR
Nurses Holdings Corp. ("PSR Holding"; and together with Crdentia, Baker, Nurses
Network, New Age, PSR Ltd., and PSR Recruiting, each a "Crdentia Proper
Borrower"), CRDE Corp. ("Acquisition Subsidiary"), Arizona Home Health
Care/Private Duty, Inc. ("AHHC"), Care Pros Staffing, Inc. ("Care Pros"; and
together with Acquisition Subsidiary and AHHC, each a "New Borrower") (Crdentia
Proper Borrowers and New Borrowers are referred to individually and collectively
as "Borrower").

                              W I T N E S S E T H:

      WHEREAS, Lender and Borrower are parties to that certain Loan and Security
Agreement - Term Loan dated as of August 31, 2004 (as amended, restated,
supplemented or otherwise modified from time to time, the "Agreement");

      WHEREAS, pursuant to that certain Agreement and Plan of Reorganization
dated as of August 31, 2004 by and among Crdentia, Acquisition Subsidiary, AHHC
Acquisition Corporation ("AHHC Acquisition", a wholly owned subsidiary of
Acquisition Subsidiary), AHHC, and the former shareholders of AHHC, AHHC
Acquisition merged with and into AHHC with AHHC being the surviving entity;

      WHEREAS, pursuant to that certain Agreement and Plan of Reorganization
dated as of August 31, 2004, by and among Crdentia, Acquisition Subsidiary, CPS
Acquisition Corporation ("CPS Acquisition", a wholly owned subsidiary of
Acquisition Subsidiary), Care Pros and the former shareholders of Care Pros,
Care Pros merged with and into CPS Acquisition with CPS Acquisition being the
surviving entity and immediately upon such merger changed its name to "Care Pros
Staffing, Inc."; and

      WHEREAS, Lender and Borrower desire to amend certain provisions of the
Agreement in accordance with this Amendment.

      NOW, THEREFORE, for and in consideration of the premises and mutual
agreements herein contained and for the purposes of setting forth the terms and
conditions of this Amendment, the parties, intending to be bound, hereby agree
as follows:

      Section 1. Incorporation of the Agreement. All capitalized terms which are
not defined herein shall have the same meanings as set forth in the Agreement,
and the Agreement, to the extent not inconsistent with this Amendment, is
incorporated herein by this reference as though the same were set forth in its
entirety. To the extent any terms and provisions of the Agreement are
inconsistent with the amendments set forth in Section 2 below, such terms and
provisions shall be deemed superseded hereby. Except as specifically set forth
herein, the Agreement shall remain in full force and effect and its provisions
shall be binding on the parties hereto.
<PAGE>

      Section 2. Amendment of the Agreement. Borrower and Lender hereby agree to
amend the Agreement as of the Amendment Date as follows:

      (a) Section 2(b)(A) of the Agreement shall be amended and restated in its
entirety to read as follows:

      "(A) the Acquisition Subsidiary shall have, on a pro forma basis,
      independent and separate from the Crdentia Proper Borrowers hereunder: (x)
      a coverage ratio of Target Pro Forma EBITDA to Target Pro Forma Debt
      Service of at least 1.5 to 1.0, (y) a ratio of Target Pro Forma Senior
      Debt to Target Pro Forma EBITDA of not more than 4.0 to 1.0, and (z) a
      ratio of Target Pro Forma Term Loan Debt to Target Pro Forma EBITDA of not
      more than 2.5 to 1.0;"

      (b) Section 2(b)(E) of the Agreement shall be amended and restated in its
entirety to read as follows:

      "(E) Excess Availability of the Crdentia Proper Borrowers under the
      Revolving Loan Agreement or any Replacement Revolving Loan Agreement shall
      be an amount mutually agreed upon between Lender and Borrower but in no
      event less than $250,000 after giving effect to the proposed Acquisition;"

      (c) Section 2(b)(F) of the Agreement shall be amended and restated in its
entirety to read as follows:

      "(F) the amount of (i) the revolving borrowing base attributable to the
      Acquisition Subsidiary, as determined by the Lender in its good faith
      credit judgment, less (ii) the sum of the outstanding Revolving Loans
      attributable to Acquisition Subsidiary, shall be an amount mutually agreed
      upon between Lender and Borrower;"

      (d) Section 5(c) of the Agreement shall be amended and restated in its
entirety to read as follows:

      "(c) Possessory Collateral. Immediately upon Borrower's receipt of any
      portion of the Collateral evidenced by an agreement, Instrument or
      Document, including, without limitation, any Tangible Chattel Paper and
      any Investment Property consisting of Certificated Securities, Borrower
      shall deliver the original thereof (i) to BHF, to hold pursuant to the
      terms of the Revolving Loan Agreement or any Replacement Revolving Loan
      Agreement (other than equity interests of any Borrower pledged by Crdentia
      to Lender under the Pledge Agreement, which shall be delivered to Lender
      pursuant to the terms of the Pledge Agreement), or (ii) to the extent both
      the Revolving Loan Agreement and Replacement Revolving Loan Agreement have
      been terminated, to Lender together with an appropriate endorsement or
      other specific evidence of assignment thereof to Lender (in form and
      substance acceptable to Lender). If an endorsement or assignment of any
      such items shall not be made for any reason, Lender is hereby irrevocably
      authorized, as Borrower's attorney and agent-in-fact, to endorse or assign
      the same on Borrower's behalf."

                                      -2-
<PAGE>

      (e) Section 9(c) of the Agreement shall be amended and restated in its
entirety to read as follows:

      "(c) Financial Statements. Borrower shall deliver to Lender the following
      financial information, all of which shall be prepared in accordance with
      GAAP consistently applied (except where such calculations otherwise
      require), and shall be accompanied by a certificate in the form of Exhibit
      A hereto, which compliance certificate shall include a calculation of all
      financial covenants contained in this Agreement, including the financial
      tests set forth in Section 13(j)(iii): (i) no later than fifteen (15) days
      after each calendar month, copies of internally prepared financial
      statements, including, without limitation, balance sheets and statements
      of income, retained earnings and cash flow of the Crdentia Proper
      Borrowers on a Crdentia Proper Consolidated Basis and of the Acquisition
      Subsidiary and its Subsidiaries on an Acquisition Subsidiary Consolidated
      Basis, certified by the Chief Financial Officer of Borrower; (ii) no later
      than forty-five (45) days after the end of each of the first three
      quarters of Borrower's Fiscal Year, copies of internally prepared
      financial statements, including, without limitation, balance sheets,
      statements of income, retained earnings, cash flows and reconciliation of
      surplus for the Crdentia Proper Borrowers on a Crdentia Proper
      Consolidated Basis and of the Acquisition Subsidiary and its Subsidiaries
      on an Acquisition Subsidiary Consolidated Basis, certified by the Chief
      Financial Officer of Borrower; and (iii) no later than ninety (90) days
      after the end of each of Borrower's Fiscal Years, audited annual financial
      statements of the Borrowers on a consolidated basis, and unaudited
      financial statements of the Crdentia Proper Borrowers on a Crdentia Proper
      Consolidated Basis and of the Acquisition Subsidiary and its Subsidiaries
      on an Acquisition Subsidiary Consolidated Basis, with an unqualified
      opinion as to the audited financial statements by independent certified
      public accountants selected by Borrower and reasonably satisfactory to
      Lender. The report of such accounts shall be accompanied by copies of any
      management letters sent to the Borrower by such accountants."

      (f) Section 12(m) of the Agreement shall be amended and restated in its
entirety to read as follows:

      "(m) Subordination Agreement. On or before November 30, 2004, Borrower
      shall use its commercially reasonable efforts to deliver to Lender a
      Subordination Agreement executed by Cindy Permenter, in form and substance
      acceptable to Lender, with respect to the Indebtedness (i) under that
      certain convertible subordinated promissory note dated December 2, 2003 in
      the original principal amount of $2,525,000 made payable to Professional
      Staffing Services, Inc. and (ii) under that certain convertible
      subordinated promissory note dated December 2, 2003 in the original
      principal amount of $200,000 made payable to Professional Staffing
      Services, Inc. and Nursing Services Registry of Savannah, Inc."

                                      -3-
<PAGE>

      (g) Section 14(a) of the Agreement shall be amended and restated in its
entirety to read as follows:

      "(a) Tangible Net Worth. Borrower's Tangible Net Worth, on a Crdentia
      Proper Consolidated Basis, shall not at any time be less than the Minimum
      Tangible Net Worth; "Minimum Tangible Net Worth" being defined for
      purposes of this Subsection as (i) $(1,500,000) at all times from the
      Closing Date through September 30, 2004, (ii) $0 at all times from October
      1, 2004 through October 31, 2004, and (iii) thereafter, from the last day
      of each fiscal quarter of the Crdentia Proper Borrowers through the day
      prior to the last day of each immediately succeeding fiscal quarter of the
      Crdentia Proper Borrowers, the Minimum Tangible Net Worth during the
      immediately preceding period plus seventy-five percent (75%) of the
      Crdentia Proper Borrowers' net income (but without reduction for any net
      loss) for the Fiscal Year ending on the first day of such period as
      reflected on the Crdentia Proper Borrowers' audited year end financial
      statement; and "Tangible Net Worth" being defined for purposes of this
      Subsection as the Crdentia Proper Borrowers' shareholders' equity
      (including retained earnings) less the book value of all intangible assets
      of the Crdentia Proper Borrowers as determined solely by Lender on a
      consistent basis plus the amount of any Subordinated Debt of the Crdentia
      Proper Borrowers, all as determined under GAAP applied on a basis
      consistent with the financial statement dated March 31, 2004 except as set
      forth herein."

      (h) Section 14(h) of the Agreement shall be amended by deleting the amount
"$100,000" and inserting in place thereof the amount "$300,000"."

      (i) Annex I of the Agreement shall be amended by inserting the following
      new definitions in the appropriate alphabetical order to read as follows:

      "Acquisition Subsidiary Consolidated Basis" shall mean the financial
reporting by Acquisition Subsidiary and all of its direct or indirect
subsidiaries, on a consolidated basis.

      "Pledge Agreement" shall mean that certain Pledge Agreement dated as of
August 31 2004 between Crdentia and Lender, as amended, restated, supplemented
or otherwise modified from time to time.

      (j) Annex I of the Agreement shall be amended by amending and restating in
their entirety the following definitions:

      "Acquisition Subsidiary EBITDA" shall mean, with respect to any period,
Acquisition Subsidiary's, on an Acquisition Subsidiary Consolidated Basis, net
income after taxes for such period (excluding any after-tax gains or losses and
excluding other after-tax extraordinary gains or losses) plus interest expense,
income tax expense, depreciation and amortization for such period, plus or minus
any other non-cash charges or gains which have been subtracted or added in
calculating net income after taxes for such period. In the event that the period

                                      -5-
<PAGE>

of measurement is less than 12 months, the Acquisition Subsidiary EBITDA shall
be determined on an annualized basis. Upon each Permitted Acquisition and the
addition of a Target to the consolidated financial reporting of the Acquisition
Subsidiary, the portion of the Acquisition Subsidiary EBITDA attributable to the
Target shall be calculated on an annualized basis, until such Target has been a
part of the Acquisition Subsidiary for 12 months.

      "Capital Expenditures" shall mean with respect to any period, the
aggregate of all expenditures (whether paid in cash or accrued as liabilities
and including Capital Lease Obligations) by Borrowers during such period that
are required by GAAP, consistently applied, to be included in or reflected by
the property, plant and equipment or similar fixed asset accounts (or intangible
accounts subject to amortization) on the balance sheet of Borrowers, excluding
expenditures for any assets or equity interests acquired pursuant to a Permitted
Acquisition.

      "Crdentia Proper Borrowers" shall mean Crdentia and all of its
Subsidiaries, except for Acquisition Subsidiary and its Subsidiaries.

      "Crdentia Proper Consolidated Basis" shall mean the financial reporting by
the Borrowers of Crdentia all of their Subsidiaries, except for Acquisition
Subsidiary and its Subsidiaries, on a consolidated basis.

      "EBITDA" shall mean, with respect to any period, Crdentia Proper
Borrowers', on a Crdentia Proper Consolidated Basis, net income after taxes for
such period (excluding any after-tax gains or losses and excluding other
after-tax extraordinary gains or losses) plus interest expense, income tax
expense, depreciation and amortization for such period, plus or minus any other
non-cash charges or gains which have been subtracted or added in calculating net
income after taxes for such period.

      (k) Annex I of the Agreement shall be amended by deleting in its entirety
the definition "Revolving Pledge Agreement", and also deleting the reference to
"Revolving Pledge Agreement" from the definition of "Revolving Loan Documents".

      (l) Exhibit A of the Agreement shall be amended by amending and restating
paragraph 4a in its entirety to read as follows:

                  "a. Borrower shall maintain a Minimum Tangible Net Worth, on a
                  Crdentia Proper Consolidated Basis, of (i) $(1,500,000) at all
                  times from the Closing Date through September 30, 2004, (ii)
                  $0 at all time from October 1, 2004 through October 31, 2004,
                  and (iii) thereafter, from the last day of each fiscal quarter
                  of the Crdentia Proper Borrowers through the day prior to the
                  last day of each immediately succeeding fiscal quarter of the
                  Crdentia Proper Borrowers, the Minimum Tangible Net Worth

                                      -6-
<PAGE>

                  during the immediately preceding period plus seventy-five
                  percent (75%) of the Crdentia Proper Borrowers' net income
                  (but without reduction for any net loss) for the Fiscal Year
                  ending on the first day of such period as reflected on the
                  Crdentia Proper Borrowers' audited year end financial
                  statement. (See attached Schedule A for calculation of
                  Tangible Net Worth)"

      Section 3. Amendment Conditions. As a condition precedent to the
effectiveness of this Amendment, Borrower shall:

      (a) Execute and deliver to Lender this Amendment; and

      (b) Deliver to Lender such other documents as Lender shall request.

      Section 4. No Default. Borrower represents and warrants to Lender that no
Event of Default has occurred and is continuing (other than that certain Events
of Default specifically waived by Lender pursuant to the terms of that certain
Specific Waiver of Default to Loan and Security Agreement dated as of November
4, 2004), and no event has occurred and is continuing which, with the lapse of
time, the giving of notice, or both, would constitute such an Event of Default
under the Agreement as amended by this Amendment.

      Section 5. Fees and Expenses. Borrower agrees to pay on demand all
reasonable costs and expenses of or incurred by Lender, including but not
limited to, legal expenses and reasonable attorneys' fees and expenses, in
connection with the evaluation, negotiation, preparation, execution and delivery
of this Amendment.

      Section 6. Security. Borrower expressly acknowledges and agrees that all
collateral, security interests, liens, pledges and mortgages heretofore, under
this Amendment, or hereafter granted to Lender, including, without limitation,
such collateral, security interests, liens, pledges and mortgages granted under
the Agreement, and all other supplements to the Agreement, extend to and cover
all of the obligations of Borrower to Lenders, now existing or hereafter arising
including, without limitation, those arising in connection with the Agreement,
as amended by this Amendment, upon the terms set forth in such agreements, all
of which security interests, liens, pledges, and mortgages are hereby ratified,
reaffirmed, confirmed and approved.

      Section 7. Representations. Borrower represents and warrants to Lender
that (a) it has all necessary power and authority to execute and deliver this
Amendment and perform its obligations hereunder, (b) this Amendment and the
Agreement, as amended hereby, constitute the legal, valid and binding
obligations of Borrower and are enforceable against Borrower in accordance with
their terms, and (c) all representations, warranties and covenants of Borrower
contained in the Agreement, as amended, and all other agreements, instruments
and other writings relating thereto, are true, correct and complete as of the
date hereof.

      Section 8. Incorporation. The parties hereto acknowledge and agree that
the terms and provisions of this Amendment amend, add to and constitute a part
of the Agreement. Except as expressly modified and amended by the terms of this
Amendment, all of the other terms and conditions of the Agreement and all
documents executed in connection therewith or referred to or incorporated
therein remain in full force and effect and are hereby ratified, reaffirmed,
confirmed and approved.

                                      -7-
<PAGE>

      Section 9. Conflict. If there is an express conflict between the terms of
this Amendment and the terms of the Agreement, or any of the other agreements or
documents executed in connection therewith or referred to or incorporated
therein, the terms of this Amendment shall govern and control.

      Section 10. Governing Law. This Amendment was executed and delivered in
Chicago, Illinois and shall be governed by and construed in accordance with the
internal laws (as opposed to conflicts of law provisions) of the State of
Illinois.

      Section 11. Effectuation. The amendments to the Agreement contemplated by
this Amendment shall be deemed effective immediately upon the full execution of
this Amendment and without any further action required by the parties hereto.

      Section 12. Counterparts. This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                      -8-
<PAGE>

       (Signature Page to First Amendment to Loan and Security Agreement)

         IN WITNESS WHEREOF, the parties hereto have duly executed this First
Amendment to Loan and Security Agreement as of the date first above written.

                                             CRDENTIA CORP.,
                                             a Delaware corporation

                                             By: /s/ James D. Durham
                                                --------------------------------
                                                James D. Durham
                                                Chief Executive Officer

                                             BAKER ANDERSON CHRISTIE, INC.,
                                             a California corporation

                                             By: /s/ James D. Durham
                                                --------------------------------
                                                James D. Durham
                                                Chief Executive Officer

                                             NURSES NETWORK, INC.,
                                             a California corporation

                                             By: /s/ James D. Durham
                                                --------------------------------
                                                James D. Durham
                                                Chief Executive Officer

                                             NEW AGE STAFFING, INC.,
                                             a Delaware corporation

                                             By: /s/ James D. Durham
                                                --------------------------------
                                                James D. Durham
                                                Chief Executive Officer

                                      -9-
<PAGE>

       (Signature Page to First Amendment to Loan and Security Agreement)

                                             PSR NURSES, LTD.,
                                             a Texas limited partnership

                                             By:  PSR NURSE RECRUITING, INC.
                                             Its: General Partner

                                             By:  /s/ James D. Durham
                                                  James D. Durham
                                                --------------------------------
                                                  Chief Executive Officer

                                             PSR NURSE RECRUITING, INC.,
                                             a Texas corporation

                                             By:  /s/ James D. Durham
                                                --------------------------------
                                                  James D. Durham
                                                  Chief Executive Officer

                                             PSR NURSES HOLDINGS CORP.,
                                             a Texas corporation

                                             By:  /s/ James D. Durham
                                                --------------------------------
                                                  James D. Durham
                                                  Chief Executive Officer

                                             CRDE CORP.,
                                             a Delaware corporation

                                             By:  /s/ James D. Durham
                                                --------------------------------
                                             Name:
                                                --------------------------------
                                             Title:
                                                --------------------------------

                                             ARIZONA HOME HEALTH CARE/PRIVATE
                                             DUTY, INC., an Arizona corporation

                                             By:  /s/ James D. Durham
                                                --------------------------------
                                             Name:
                                                --------------------------------
                                             Title:
                                                --------------------------------

                                      -10-
<PAGE>

                  Signature Page to Loan and Security Agreement

                                             CARE PROS STAFFING, INC.,
                                             a Texas corporation

                                             By:  /s/ James D. Durham
                                                --------------------------------
                                             Name:
                                                --------------------------------
                                             Title:
                                                --------------------------------

                                      -11-
<PAGE>

       (Signature Page to First Amendment to Loan and Security Agreement)

                                             BRIDGE OPPORTUNITY FINANCE, LLC, a
                                             Delaware limited
                                             liability company, as Lender

                                             By:/s/ Randy Abrahams
                                                --------------------------------
                                             Name:
                                                --------------------------------
                                             Title:
                                                --------------------------------

                                      -12-
<EXHIBIT 10.11
                            DEBT CONVERSION AGREEMENT

      This Debt Conversion Agreement (the "Agreement") is made as of 28th day of
December,  2004 by and between  iSecuretrac  Corp., a Delaware  corporation (the
"Company"), and Roger Kanne (the "Debt Holder").

                                    RECITALS

      A.  The  Debt  Holder  is  the  holder  of  one or  more  liabilities  and
obligations  of the  Company  which is  described  in  Schedule  1  hereto  (the
"Obligations").  The  outstanding  balance and  accrued  interest of each of the
Obligations is set forth in Schedule 1.

      B. In order to facilitate the Company's ability to raise additional equity
capital,  the Debt Holder and the Company desire to convert the entire principal
balance of the Obligations, but not the accrued interest thereon, into shares of
the Company's  Common Stock, par value ($0.01) per share (the "Common Stock") on
the terms and  conditions  set forth herein and, in connection  therewith to (i)
cancel and forgive the accrued  interest on the  Obligations,  (ii)  release all
claims held by the Debt Holder with respect to the  Obligations  and the payment
of  principal  and  interest  thereon,  and (iii) effect the release any and all
security  interests,  liens and other  encumbrances on the assets of the Company
held by the Debt Holder as security for the Obligations.

      NOW,  THEREFORE,  in consideration of the mutual promises set forth herein
and of other good and valuable  consideration,  the receipt and  sufficiency  of
which is hereby acknowledged,  the parties hereto, intending to be legally bound
hereby, do agree as follows:

                                    AGREEMENT

1. Conversion of Obligations, Forgiveness of Interest and Release of Security.

      1.1 Conversion of Obligations into Common Stock.  Subject to the terms and
conditions  of this  Agreement,  at the Closing (as defined  herein) Debt Holder
agrees to cancel  and  terminate  the  Obligations  and to  convert  the  entire
outstanding principal balance of the Obligations (which amounts are set forth in
Schedule  1  hereto)  into  shares  of  Common  Stock at a  conversion  price of
twenty-three  cents ($0.23) per share. In addition,  the Debt Holder agrees that
all accrued and unpaid interest on the Obligations  through the Closing shall be
cancelled and forgiven at the Closing. By converting the Obligations into Common
Stock,  and  cancelling  and  forgiving  the interest  thereon,  the Debt Holder
acknowledges and agrees that the Obligations will be cancelled and terminated in
all  respects  and for all  purposes  and that the Debt Holder will be deemed to
have released all claims held by the Debt Holder with respect to the Obligations
and the payment of principal and interest thereon.

      1.2 Release of Security  Interests.  As a condition to the issuance of the
shares of Common Stock in conversion of the Obligations at Closing,  Debt Holder
hereby cancels,  terminates and releases any and all security  interests,  liens
and  other  encumbrances  held by or for the  benefit  of the Debt  Holder  with
respect to the Obligations in or on the assets,  rights or other property of the
Company, including,  without limitation, all security interests, liens and other
encumbrances on the patents,  trademarks and other intellectual  property rights
of the Company (collectively,  the "Security Interests").  Debt Holder agrees to

<PAGE>

execute and deliver such instruments and documents (including UCC-3 filings) and
take such other action as may be necessary to affect the complete release of all
Security Interests.

      1.3  General  Release.  It is the  intention  of  the  parties  hereto  in
executing this  instrument that the same shall be effective as a bar to each and
every claim, demand and cause of action, known or unknown as of the date hereof,
relating to the Obligations.  The Debt Holder expressly  consents that the above
release  shall be given full force and effect  according  to each and all of its
express terms and  provisions,  including as well those  relating to the unknown
and unsuspected claims, demands and causes of action hereinabove specified.

      1.4 Closing; Deliveries.

      (a) The conversion of the  Obligations  into Common Stock shall take place
at a closing  (the  "Closing")  to be held in the offices of the  Company,  5078
South 111th Street,  Omaha,  Nebraska,  at 10:00 a.m. local time on December 31,
2004.

      (b) At the  Closing,  the  Company  shall  deliver  to the  Debt  Holder a
certificate  representing  the shares of Common Stock being issued in conversion
of the Obligations.

      (c) At the Closing, Debt Holder shall deliver to the Company:

            (i) each of the notes or other documents  evidencing the Obligations
      listed in Schedule 1 which shall be marked as "Cancelled"; and

            (ii) such  instruments and documents  (including  UCC-3 filings) and
      take such other action as may be necessary to effect the full and complete
      release of all Security Interests.

2.  Representations and Warranties of the Company. The Company hereby represents
and warrants to Debt Holder that:

      2.1  Organization,  Good  Standing  and  Qualification.  The  Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite  corporate power and authority to
carry on its business. The Company is duly qualified to transact business and is
in good standing in each  jurisdiction  in which the failure so to qualify would
have a material adverse effect on its business or properties.

      2.2  Authorization.  All corporate action on the part of the Company,  its
officers, directors and shareholders necessary for the authorization,  execution
and  delivery of this  Agreement,  the  performance  of all  obligations  of the
Company hereunder and thereunder and the authorization, issuance and delivery of
the shares of Common  Stock at Closing  has been taken or will be taken prior to
the Closing.

      2.3 Valid  Issuance of Shares.  The shares of Common  Stock,  when issued,
sold and  delivered in  accordance  with the terms hereof for the  consideration
expressed herein, will be duly and validly issued,  fully paid and nonassessable
and free of restrictions  on transfer other than  restrictions on transfer under
Section 3.5 and applicable federal and state securities laws. Based in part upon
the representations of the Debt Holder in this Agreement,  the Common Stock will
be issued in compliance with all applicable federal and state securities laws.

                                       2
<PAGE>

3.  Representations  and  Warranties  of the Debt  Holder.  Debt  Holder  hereby
represents and warrants to the Company that:

      3.1  Authorization.  The Debt Holder has full power and authority to enter
into  this  Agreement.  All  corporate  or other  action on the part of the Debt
Holder, and if applicable, its officers, directors, shareholders and/or partners
necessary for the authorization,  execution and delivery of this Agreement,  and
the  performance of all  obligations of Debt Holder  hereunder has been taken or
will be taken prior to the Closing. This Agreement,  when executed and delivered
by Debt Holder,  will constitute  valid and legally binding  obligations of Debt
Holder,  enforceable  in  accordance  with  their  terms,  except as  limited by
applicable  bankruptcy,  insolvency,   reorganization,   moratorium,  fraudulent
conveyance,  or any other laws of general application  affecting  enforcement of
creditors rights generally,  and as limited by laws relating to the availability
of specific performance, injunctive relief, or other equitable remedies.

      3.2  Acquiring  Shares  Entirely  for  Own  Account.  Debt  Holder  hereby
represents that the shares of Common Stock to be issued to Debt Holder hereunder
will be acquired for investment for Debt Holder's own account,  not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof,
and that Debt Holder has no present  intention of selling the same. By executing
this  Agreement,  Debt  Holder  further  represents  that Debt  Holder  does not
presently  have any contract,  undertaking,  agreement or  arrangement  with any
person to sell to any of the shares of Common Stock to be issued hereunder.

      3.3 Accredited Investor.  Debt Holder is an accredited investor as defined
in Rule 501(a) of Regulation D promulgated under the Securities Act and has such
knowledge  and  experience  in financial  and business  matters to be capable of
evaluating the risks and merits of the shares of Common Stock.

      3.4 Disclosure of Information.  The Debt Holder,  if not an officer of the
Company,  has  (i)  had  an  opportunity  to  discuss  the  Company's  business,
management,  financial  affairs and the terms and  conditions of the issuance of
the shares of Common Stock  hereunder  with the Company's  management;  (ii) not
been  offered  shares  of  Common  Stock by any form of  advertisement,  notice,
article or other solicitation, whether broadcast over television, radio, seminar
or Internet,  and (iii) relied in making its investment decision exclusively the
foregoing  investigation and on the representations and warranties  contained in
this Agreement.

      3.5 Restricted Stock.

      (a) The Debt  Holder  understands  that  issuance  of the shares of Common
Stock to the Debt Holder has not been  registered  under the  Securities  Act of
1933, as amended (the "Securities  Act"), by reason of a specific exemption from
the  registration  provisions of the  Securities  Act which depends upon,  among
other things,  the bona fide nature of the investment intent and the accuracy of
the  Debt  Holder's   representations  as  expressed  herein.  The  Debt  Holder
understands  that the shares of Common Stock are "restricted  securities"  under
applicable U.S.  federal and state  securities laws and that,  pursuant to these
laws, Debt Holder must hold the shares of Common Stock indefinitely  unless they
are  registered  with the  Securities  and Exchange  Commission and qualified by
state  authorities,  or an exemption from such  registration  and  qualification
requirements  is  available.  The Debt Holder  further  acknowledges  that if an
exemption from registration or qualification is available, it may be conditioned
on various  requirements  including,  but not limited to, the time and manner of
sale,  the holding  period for the shares of Common Stock,  and on  requirements

                                       3
<PAGE>

relating to the Company  which are outside of such Debt  Holder's  control,  and
which the Company is under no obligation and may not be able to satisfy.

      (b)  Notwithstanding  the  paragraph  (a) of this Section 3.5, the Company
will enter into a registration  rights agreement relating to the registration of
the shares of its Common Stock issued to the Debt Holder under which the Company
will agree to register,  at the Company's  expense,  such Common Stock under the
Securities Act for resale by the Debt Holder.

      3.6 Legend.  The Debt Holder  understands  that the shares of Common Stock
will bear a legend required by the Securities Act or by the Blue Sky laws of any
state to the extent such laws are  applicable to the shares  represented  by the
certificate  so legended.  The Company may  instruct  its transfer  agent not to
register  the  transfer  of any  shares of Common  Stock  until and  unless  the
conditions specified in the legend is satisfied.

4.  Conditions of the Debt Holder's  Obligations at Closing.  The obligations of
Debt Holder to the Company under this Agreement are subject to the fulfilment on
or before the  Closing of each of the  following  conditions,  unless  otherwise
waived:

      4.1 Representations and Warranties.  The representations and warranties of
the Company  contained  in Section 2 shall be true and  correct in all  material
respects  on  and as of  the  Closing  with  the  same  effect  as  though  such
representations  and  warranties  had  been  made  on and as of the  date of the
Closing.

      4.2  Performance.  The Company  shall have  performed  and complied in all
material  respects with all covenants,  agreements,  obligations  and conditions
contained in this  Agreement  that are required to be performed or complied with
by it on or before the Closing.

      4.3 Qualifications.  All authorizations,  approvals or permits, if any, of
any  governmental  authority or  regulatory  body of the United States or of any
state that are required in connection  with the lawful issuance of the shares of
Common Stock  pursuant to this  Agreement  shall be obtained and effective as of
the Closing.

5.  Conditions of the Company's  Obligations at Closing.  The obligations of the
Company to Debt Holder under this  Agreement are subject to the fulfilment on or
before the Closing of each of the following conditions, unless otherwise waived:

      5.1 Representations and Warranties.  The representations and warranties of
the Debt  Holder  contained  in Section 3 shall be true and correct on and as of
the Closing with the same effect as though such  representations  and warranties
had been made on and as of the Closing.

      5.2  Performance.  All covenants,  agreements and conditions  contained in
this  Agreement to be performed by Debt Holder on or prior to the Closing  shall
have been performed or complied with in all material respects.

      5.3 Qualifications.  All authorizations,  approvals or permits, if any, of
any  governmental  authority or  regulatory  body of the United States or of any
state that are required in connection  with the lawful  issuance and sale of the
shares  of  Common  Stock  pursuant  to this  Agreement  shall be  obtained  and
effective as of the Closing.

6. Miscellaneous.

                                       4
<PAGE>

      6.1 Further Actions. The Company and Debt Holder agree that in case at any
time after the Closing any further action is necessary or desirable to carry out
the  purposes  of this  Agreement,  each of the  parties  hereto  will take such
further action (including without limitation, the execution and delivery of such
further  instruments  and  documents)  as any other party hereto may  reasonably
request.

      6.2 Survival of Warranties.  Unless otherwise set forth in this Agreement,
the  warranties,  representations  and  covenants of the Company and Debt Holder
contained in or made pursuant to this Agreement  shall survive the execution and
delivery  of this  Agreement  and  the  Closing  for a  period  of one (1)  year
following the Closing.

      6.3 Transfer;  Successors  and Assigns.  The terms and  conditions of this
Agreement  shall  inure to the  benefit  of and be binding  upon the  respective
successors  and assigns of the parties.  Nothing in this  Agreement,  express or
implied,  is intended to confer upon any party other than the parties  hereto or
their respective successors and assigns any rights,  remedies,  obligations,  or
liabilities under or by reason of this Agreement,  except as expressly  provided
in this Agreement.

      6.4 Governing Law. This Agreement and all acts and  transactions  pursuant
hereto and the rights and  obligations  of the parties hereto shall be governed,
construed and  interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflicts of law.

      6.5  Counterparts.   This  Agreement  may  be  executed  in  two  or  more
counterparts,  each of  which  shall  be  deemed  an  original  and all of which
together shall constitute one instrument.

      6.6 Titles and Subtitles.  The titles and subtitles used in this Agreement
are used for  convenience  only and are not to be  considered  in  construing or
interpreting this Agreement.

      6.7 Notices.  Any notice  required or permitted by this Agreement shall be
in  writing  and  shall be  deemed  sufficient  upon  delivery,  when  delivered
personally  or by overnight  courier or sent by telegram or fax, or  forty-eight
(48) hours after being  deposited in the U.S.  mail,  as certified or registered
mail,  with  postage  prepaid,  addressed  to the party to be  notified  at such
party's address as set forth on the signature page, or as subsequently  modified
by written  notice,  and if to the  Company,  5078 South  111th  Street,  Omaha,
Nebraska, 68137.

      6.8  Attorney's  Fees.  If  any  action  at law  or in  equity  (including
arbitration)  is  necessary  to  enforce or  interpret  the terms of any of this
Agreement, the prevailing party shall be entitled to reasonable attorney's fees,
costs and necessary  disbursements in addition to any other relief to which such
party may be entitled.

      6.09 Amendments and Waivers.  Any term of this Agreement may be amended or
waived only with the written  consent of the  Company and the Debt  Holder.  Any
amendment  or waiver  affected in  accordance  with this  Section  6.09 shall be
binding  upon the Debt  Holder and each  transferee  of the Common  Stock,  each
future holder of all such securities, and the Company.

      6.10 Severability. If one or more provisions of this Agreement are held to
be  unenforceable  under  applicable law, the parties agree to renegotiate  such
provision in good faith.  In the event that the parties  cannot reach a mutually

                                       5
<PAGE>

agreeable  and  enforceable  replacement  for  such  provision,  then  (a)  such
provision  shall  be  excluded  from  this  Agreement,  (b) the  balance  of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.

      6.11 Delays or  Omissions.  No delay or  omission  to exercise  any right,
power or remedy accruing to any party under this  Agreement,  upon any breach or
default of any other party under this  Agreement,  shall  impair any such right,
power or remedy of such  non-breaching or  non-defaulting  party nor shall it be
construed  to be a waiver of any such  breach  or  default,  or an  acquiescence
therein,  or of or in any similar breach or default  thereafter  occurring;  nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default  theretofore  or  thereafter  occurring.  Any waiver,  permit,
consent or  approval  of any kind or  character  on the part of any party of any
breach or default under this  Agreement,  or any waiver on the part of any party
of any provisions or conditions of this Agreement,  must be in writing and shall
be effective  only to the extent  specifically  set forth in such  writing.  All
remedies,  either under this  Agreement  or by law or otherwise  afforded to any
party, shall be cumulative and not alternative.

      6.12 Entire  Agreement.  This Agreement  constitutes the entire  agreement
between the parties hereto pertaining to the subject matter hereof,  and any and
all other  written or oral  agreements  relating  to the subject  matter  hereof
existing between the parties hereto are expressly cancelled.

      6.13  Third  Party  Beneficiaries.  Except  as  specifically  provided  in
Sections 6.3 and 6.09 hereof, no provision of this Agreement is intended for the
benefit of any party other than the parties hereto.

      IN  WITNESS  WHEREOF,  the  parties  have  executed  this Debt  Conversion
Agreement as of the date first written above.

                                       DEBT HOLDER

                                       /s/ Roger Kanne
                                       -----------------------------------------
                                       Roger Kanne

                                       ISECURETRAC CORP.

                                       /s/ David G. Vana
                                       -----------------------------------------
                                       David G. Vana
                                       Chief Financial Officer

                                       6
<PAGE>

                                   Schedule 1
                                   ----------

<TABLE>
<CAPTION>
                               Principal     Interest      Origination       Maturity        Accrued
      Account Name            at 12/28/04      Rate            Date            Date         Interest
--------------------------------------------------------------------------------------------------------
<S>                             <C>            <C>         <C>              <C>               <C>
Note Payable - Roger Kanne      $576,388       10.00%      06/02 - 12/02    06/03 - 12/03     $14,048
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]