Execution Copy
 
PATENT SECURITY AGREEMENT
 
WHEREAS, FORTICELL BIOSCIENCE, INC., a Delaware corporation ("Grantor"), owns
the Patents and Patent Applications listed on Schedule 1 annexed hereto, and is
a party to the Patent Licenses listed on Schedule l annexed hereto; and
 
WHEREAS, Grantor and Paul Royalty Fund, L.P., a Delaware limited partnership
("Grantee"), are parties to an Agreement dated as of September 22, 2008 (the
"Sale Agreement"), pursuant to which, among other things, Grantee is selling,
assigning, transferring and conveying to Grantor, and Grantor is purchasing from
Grantee, all of Grantee's Securities (as defined in the Sale Agreement);
 
WHEREAS, pursuant to the terms of the Security Agreement dated as of September
22, 2008 (the "Security Agreement;" all capitalized terms defined in the Sale
Agreement or the Security Agreement and not otherwise defined herein have the
respective meanings provided for in the Sale Agreement or the Security
Agreement), between Grantor and Grantee, Grantor has granted to Grantee a
security interest as contemplated by the Security Agreement, including, without
limitation, all right, title and interest of Grantor in, to and under all now
owned and hereafter acquired Patents, Patent applications and Patent Licenses,
and all products and proceeds thereof (to the extent granted therein), to secure
payment and performance of Grantor's obligations under the Sale Agreement and
the other Obligations;
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Grantor does hereby grant to Grantee a
continuing security interest in all of Grantor's right, title and interest in,
to and under the following (all of the following items or types of property
being herein collectively referred to as the "Patent Collateral"), whether
presently existing or hereafter created or acquired:
 
(1) each U.S. Patent and Patent application included in the Intellectual
Property, including, without limitation, each Patent and Patent application
referred to in Schedule l annexed hereto, together with any reissues,
continuations or extensions thereof, and all of the goodwill of the business
conducted in the U.S. connected with the use of, and symbolized by, each such
Patent and Patent application;
 
(2) each Patent License, including, without limitation, each Patent License
listed on Schedule 1 annexed hereto; and
 
(3) all products and proceeds of the foregoing, including, without limitation,
any claim by Grantor against third parties for past, present or future
infringement of any such Patent, including, without limitation, any Patent
referred to in Schedule 1 annexed hereto, any Patent issued pursuant to a Patent
Application referred to in Schedule l and any patent licensed under any Patent
License listed on Schedule 1 annexed hereto.

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This security interest is granted in conjunction with the security interests
granted to Grantee pursuant to the Security Agreement. Grantor hereby
acknowledges and affirms that the rights and remedies of Grantee with respect to
the security interest in the Patent Collateral made and granted hereby are more
fully set forth in the Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein.
 
[Signature page follows]

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IN WITNESS WHEREOF, Grantor has caused this Patent Security Agreement to be duly
executed by its duly authorized officer thereunto as of the 22nd day of
September, 2008.
 
FORTICELL BIOSCIENCE, INC.
   
By:
/s/ Alan W. Schoenbart
 
Name:  Alan W. Schoenbart
 
Title:    Chief Executive Officer

 
Agreed and Accepted as of the
22nd day of September, 2008
 

PAUL ROYALTY FUND, L.P.
       
By:
Paul Capital Management, LLC,
 
its General Partner
         
By:
Paul Capital Advisors, L.L.C.
   
Its Manager
           
By:
/s/ Lionel Leventhal
     
Name:  Lionel Leventhal
     
Title:  Manager

 
[SIGNATURE PAGE TO PATENT SECURITY AGREEMENT]

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ACKNOWLEDGEMENT
 
STATE OF NEW YORK
)
 
) ss.:
COUNTY OF NEW YORK
)

On the 22nd day of September, 2008 before me personally appeared Alan
Schoenbart, to me personally known or proved to me on the basis of satisfactory
evidence to be the person described in and who executed the foregoing instrument
as the _________ of Forticell Bioscience Inc., who being by me duly sworn, did
depose and say that he is the __________ of Forticell Bioscience, Inc., the
corporation described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said corporation by
order of its secretary; that he signed his name thereto by like order; and that
he acknowledged said instrument to be the free act and deed of said corporation.
 
__________________________________                                              
Notary Public

 
(Seal)
 
My commission expires:
 
                                                               

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Schedule I to Patent Security Agreement
 
PATENTS
 
OrCel® U.S. Patents
 
Title
 
Expiration
         
5282859/Re. 35399
 
Composite Living Skin Equivalent
 
02/01/11
6039760
 
Composite Living Skin Equivalent
 
02/01/11
6500464B2
 
Trilayered Collagen Construct
 
12/28/20
6638709
 
Processes for Making Cryopreserved Composite Living Constructs
 
10/28/21

 
PATENT APPLICATIONS
 
U.S. Patent Application Serial No. 09/749,226
 
Filing Date – December 27, 2000
     
U.S. Patent Application Serial No. 10/032,925
 
Filing Date – December 26, 2001
     
U.S. Patent Application Serial No. 10/032,929
 
Filing Date – December 26, 2001

 
PATENT LICENSES
 
None.

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