Document:

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                                                                 Exhibit 10.36

                               SECURITY AGREEMENT

     THIS SECURITY AGREEMENT is executed effective as of the 23rd day April,
2001, by and between Cytomedix, Inc., a Delaware corporation ("Debtor"), and
First Security Bank, as Collateral Agent ("Collateral Agent"), under the terms
provided herein, for the benefit of the Holders of the Debtor's Series 2001 12%
Convertible Secured Promissory Notes (the "Notes"), all more particularly
described on EXHIBIT A attached hereto and made a part hereof (the "Lenders").

                              W I T N E S S E T H:

     WHEREAS, each Lender has advanced credit to Debtor as evidenced by a Series
2001 12% Convertible Secured Promissory Note of even date herewith naming Debtor
as "Company" and such Lender individually as a "Holder" and payable with
interest at the rate of twelve percent (12%) per annum as provided therein;

     WHEREAS, to secure payment of the Secured Debt (as defined below), Debtor
has agreed to grant to Collateral Agent, for the ratable benefit of itself and
the other Lenders pro rata to the amount of indebtedness under the Notes (less
amounts converted), a security interest in the collateral as hereinafter
described;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, and in exchange for the mutual
promises and covenants contained herein, the parties hereto, intending to be
legally bound, agree as follows:

     1. DEFINITIONS. For purposes of this Agreement, the capitalized terms used
herein shall have the following meanings, unless the context otherwise
specifically requires:

          (a) "COLLATERAL" shall mean and refer to all of the Debtor's personal
assets and personal property and rights in and to property of any nature
whatsoever, tangible and intangible, presently owned or hereafter acquired,
including without limitation the following:

               (i) all equipment, machinery, furniture, furnishings, fixtures,
     and any and all other tangible personal property, and all additions,
     accessions, replacements and substitutions with respect thereto, presently
     owned or hereafter acquired by Debtor (hereafter collectively referred to
     as the "Equipment") ;

               (ii) all accounts, accounts receivable, contracts and contract
     rights, chattel paper, documents, instruments, general intangibles, and
     other forms of obligation and rights to the payment of money or other
     property, presently owned or hereafter acquired by Debtor (hereinafter
     collectively referred to as the "Accounts");

               (iii) all of Debtor's inventory, including all goods,
     merchandise, materials, components, work in process, furnished goods, and
     other tangible personal property presently owned or hereafter acquired by
     Debtor and held for sale, lease, consumption, or other use in Debtor's
     business, and all additions, accessions, replacements and substitutions
     with respect thereto (hereinafter collectively referred to as "Inventory");

               (iv) all insurance proceeds, refunds, and premium rebates,
     whether or not any Lender or Collateral Agent is the loss payee thereof,
     including, without limitation, proceeds of fire and credit insurance, to
     the extent that any such proceeds, refunds and premiums are related to any
     of the foregoing;

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               (v) all claims for tax refund, whether now existing or hereafter
     arising, of such Debtor against any city, county, state or federal
     government or any agency or authority or other subdivision thereof, and the
     proceeds thereof;

               (vi) all contract rights, intellectual property, and general
     intangibles ("General Intangibles") of every kind, character and
     description, both now owned and hereafter acquired, including, without
     limitation, goodwill, trademarks, service marks, domain names, trade
     styles, trade names, patents, applications for any of the foregoing
     ("Intellectual Property") and deposit accounts;

               (vii) all liens, guaranties, rights, remedies, and privileges
     pertaining to any of the foregoing, including the rights of stoppage in
     transit;

               (viii) a pledge of all of Debtor's stock, ownership interest,
     partnership interest or other equity position whatsoever in any subsidiary
     corporation, limited liability company, partnership, joint venture,
     association, entity or other organization (domestic or foreign); and

               (ix) to the extent not otherwise included, all proceeds,
     products, substitutions, and accessions of or to any and all of the
     foregoing and all collateral security, indemnities, warranties and
     guaranties given by any Person with respect to any of the foregoing.
     (Although proceeds are covered, except as otherwise expressly provided
     herein or in the other Loan Documents, Collateral Agent does not authorize
     the sale or other transfer of any of the Collateral or the transfer of any
     interest in the Collateral, except for the sale of goods in the ordinary
     course of Debtor's business).

          (b) "DEBTOR" shall mean and refer to Cytomedix, Inc., a Delaware
corporation, and its successors in interest.

          (c) "PERMITTED LIENS" means:

               (i) liens for taxes not yet due or which are being contested in
     good faith by appropriate proceedings, PROVIDED that adequate reserves with
     respect thereto are maintained on the books of Debtor in conformity with
     generally accepted accounting principles;

               (ii) carriers', warehousemen's, mechanics', materialmen's,
     repairmen's or other like liens arising in the ordinary course of business
     which are not overdue for a period of more than 30 days or that are being
     contested in good faith by appropriate proceedings;

               (iii) pledges or deposits in connection with workers'
     compensation, unemployment insurance and other social security legislation;

               (iv) deposits by or on behalf of Debtor to secure the performance
     of bids, trade contracts (other than for borrowed money), leases, statutory
     obligations, surety and appeal bonds, performance bonds and other
     obligations of a like nature incurred in the ordinary course of business;

               (v) liens securing indebtedness of Debtor incurred to finance the
     acquisition of fixed or capital assets, PROVIDED that (i) such liens shall
     be created substantially simultaneously with the acquisition of such fixed
     or capital assets, (ii) such liens do not at any time encumber any property
     other than the property financed by such indebtedness and (iii) the amount
     of indebtedness secured thereby is not increased; and

               (vi) Liens created pursuant to this Agreement.

          (d) "PROMISSORY NOTE" shall mean and refer to each Series 2001 12%
Convertible Promissory

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Note of even date herewith naming Debtor as "Company" and a Lender as "Holder"
payable with interest at the rate of twelve percent (12%) per annum on April 1,
2005, all substantially in the form as EXHIBIT B, and any amendments,
modifications, extensions, renewals or refinancings thereof.

          (e) "SECURED DEBT" shall mean and refer to (i) all amounts payable
pursuant to a Promissory Note (including principal and interest) and pursuant to
any amendments, modifications, renewals, extensions or refinancings thereof;
(ii) all future advances from a Lender to Debtor under a Promissory Note; (iii)
any liabilities or obligations of Debtor arising under or in connection with
this Agreement or any other Loan Document, whether now existing or hereafter
arising, contingent or otherwise; (iv) any and all other obligations of Debtor
to a Lender under a Promissory Note of every kind and description, direct or
indirect, absolute or contingent, presently existing or hereafter arising; and
(v) all costs and expenses of collection of the foregoing, or in preserving,
protecting or realizing upon the Collateral, including, without limitation,
attorneys' fees and other legal expenses.

          (f) "SECURITIES PURCHASE AGREEMENT" shall mean and refer to each
Securities Purchase Agreement of even date herewith by and between Debtor as
"Company" and a Lender as "Buyer" with respect to the purchase of a Promissory
Note.

          (g) "UCC" shall mean and refer to the Uniform Commercial Code, as
amended, in effect under the laws of the State of Illinois, or such other state
as may be appropriate.

     2. GRANT OF SECURITY INTEREST. As security for the full and timely payment
of all of the Secured Debt, Debtor hereby assigns and grants to Collateral
Agent, ratably for the benefit of itself and the other Lenders, pro rata to the
amount of indebtedness under the Notes (less amounts converted), a continuing
first priority security interest (subject to the Permitted Liens) in and to all
Debtor's right, title, and interest in and to the Collateral; to have and to
hold unto the Collateral Agent, its successors in interest and assigns forever,
or until the earlier full payment, discharge and satisfaction of all of the
Secured Debt. Collateral Agent shall have all of the rights and remedies of a
secured party under the applicable UCC as non-exclusive rights and remedies.

     3. AGENCY.

          (a) APPOINTMENT. As evidenced by the Securities Purchase Agreement,
each Lender hereby irrevocably designates and appoints Collateral Agent as the
agent (in such capacity, the "Collateral Agent") of such Lender under this
Agreement and the other Loan Documents to hold all Collateral and act with
respect to all Collateral, and each such Lender irrevocably authorizes the
Collateral Agent, in such capacity, to take such action on its behalf in
connection with the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are delegated to the
Collateral Agent by the terms of this Agreement and the other Loan Documents,
together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Collateral Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Collateral Agent. Any reference to the Collateral
Agent in this Section 3 shall be deemed to refer to the Collateral Agent solely
in its capacity as a Lender.

          (b) DELEGATION OF DUTIES. The Collateral Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Collateral Agent shall not be responsible
for the negligence or misconduct of any agents or attorneys in-fact selected by
it with reasonable

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care.

          (c) EXCULPATORY PROVISIONS. Neither the Collateral Agent nor any of
its officers, directors, partners, employees, agents, attorneys and other
advisors, attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such person under or in
connection with this Agreement or any other Loan Document (except to the extent
that any of the foregoing are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from its or such person's own
gross negligence or willful misconduct) or (ii) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made
by Debtor or any officer thereof contained in this Agreement or any other Loan
Document or in any certificate, report, statement or other document referred to
or provided for in, or received by the Collateral Agent under or in connection
with, this Agreement or any other Loan Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document or for any failure of Debtor to perform its obligations
hereunder or thereunder. The Collateral Agent shall not be under any obligation
to any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement or any
other Loan Document, or to inspect the properties, books or records of the
Debtor.

          (d) RELIANCE BY COLLATERAL AGENT. The Collateral Agent shall be
entitled to rely, and shall be fully protected in relying, upon any instrument,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
telex or teletype message, statement, order or other document or conversation
believed by it to be genuine and correct and to have been signed, sent or made
by the proper person or persons and upon advice and statements of legal counsel
(including, without limitation, counsel to the Debtor), independent accountants
and other experts selected by the Collateral Agent. The Collateral Agent may
deem and treat the payee of any Promissory Note as the owner thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been filed with the Collateral Agent. The Collateral Agent shall be
fully justified in failing or refusing to take any action under this Agreement
or any other Loan Document unless it shall first receive such advice or
concurrence of a majority in interest of the Lenders (or such other proportion
as may be required herein) to authorize or require such action as it deems
appropriate or it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense that may be incurred by it by reason
of taking or continuing to take any such action. The Collateral Agent shall in
all cases be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of each of a
majority in interest of the Lenders (or such proportion as may be required
herein) to authorize or require such action, and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders
and all future holders of the Promissory Notes.

          (e) NON-RELIANCE ON COLLATERAL AGENT AND OTHER LENDERS. Each Lender
expressly acknowledges that neither the Collateral Agent nor any of its
officers, directors, employees, agents, attorneys and other advisors, partners,
attorneys-in-fact or affiliates have made any representations or warranties to
it and that no act by the Collateral Agent hereinafter taken, including any
review of the affairs of Debtor or any affiliate of Debtor, shall be deemed to
constitute any representation or warranty by the Collateral Agent to any Lender.
Each Lender represents to the Collateral Agent that it has, independently and
without reliance upon the Collateral Agent or any other Lender, and based on
such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition, prospects and creditworthiness of Debtor and its
affiliates and made its own decision to make its loans under its Promissory Note
and enter into this Agreement. Each Lender also represents that it will,
independently and without reliance upon the Collateral Agent or any other
Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit analysis, appraisals and decisions
in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigation as it deems necessary to inform itself
as to the business, operations, property, financial and other condition,
prospects and creditworthiness of Debtor and its affiliates. The Collateral
Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning

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the business, operations, property, condition (financial or otherwise),
prospects or creditworthiness of Debtor or any affiliate of Debtor that may come
into the possession of the Collateral Agent or any of its officers, directors,
employees, agents, attorneys and other advisors, partners, attorneys-in-fact or
affiliates.

          (f) INDEMNIFICATION. The Lenders agree to indemnify the Collateral
Agent in its capacity as such (to the extent not reimbursed by Debtor to the
extent it is required to do so under the Loan Documents and without limiting the
obligation of Debtor to do so), ratably according to their respective pro rata
shares of the principal amount of the loans outstanding under the Notes in
effect on the date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the loans under the Notes
shall have been paid in full, ratably in accordance with such respective pro
rata shares of the principal amount of the loans outstanding immediately prior
to such date), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever that may at any time (including, without limitation, at
any time following the payment of the loans under the Notes) be imposed on,
incurred by or asserted against the Collateral Agent in any way relating to or
arising out of, this Agreement or any of the other Loan Documents or any action
taken or omitted by the Collateral Agent under or in connection with any of the
foregoing; provided, that, no Lender shall be liable for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements that are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
solely from the Collateral Agent's gross negligence or willful misconduct.
Notwithstanding any other provisions of this Agreement, the agreements in this
Section shall survive the payment of such loans and all other amounts secured
hereunder.

          (g) COLLATERAL AGENT IN ITS INDIVIDUAL CAPACITY. The Collateral Agent
and its affiliates may make loans to, and generally engage in any kind of
business with the Debtor as though the Collateral Agent was not the Collateral
Agent. With respect to its loans made or renewed by it and any Promissory Note
issued to it, the Collateral Agent shall have the same rights and powers under
this Agreement and the other Loan Documents as any Lender and may exercise the
same as though it were not the Collateral Agent, and the terms "Lender" and
"Lenders" shall include the Collateral Agent in its individual capacity.

          (h) SUCCESSOR COLLATERAL AGENT. The Collateral Agent may resign as
Collateral Agent upon 30 days' notice to the Lenders and the Debtor. If the
Collateral Agent shall resign as Collateral Agent under this Agreement and the
other Loan Documents, then the Lenders shall appoint from among the Lenders a
successor agent for the Lenders, which successor agent shall be subject to
approval by the Debtor (which approval shall not be unreasonably withheld or
delayed), whereupon such successor agent shall succeed to and become vested with
the rights, powers and duties of the resigning Collateral Agent, and the term
"Collateral Agent" shall mean such successor agent effective upon such
appointment and approval, and the former Collateral Agent's rights, powers and
duties as Collateral Agent shall be terminated, without any other or further act
or deed on the part of such former Collateral Agent or any of the parties to
this Agreement or any holders of the loans made under the Promissory Notes. If
no successor agent has been appointed and accepted appointment as Collateral
Agent by the date that is 30 days following a retiring Collateral Agent's notice
of resignation, the retiring Collateral Agent's resignation shall nevertheless
thereupon become effective, and the Lenders shall assume and perform all of the
duties of the Collateral Agent hereunder until such time, if any, as the Lenders
appoint a successor agent as provided for above. After any retiring Collateral
Agent's resignation as Collateral Agent, the provisions of this Section shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Collateral Agent under this Agreement and the other Loan Documents.

          (i) AUTHORIZATION TO RELEASE LIENS. The Collateral Agent is hereby
irrevocably authorized by each of the Lenders to release any lien covering any
Collateral that is the subject of a sale or other disposition which is permitted
by this Agreement or the other Loan Documents.

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     4. REPRESENTATIONS AND WARRANTIES OF THE DEBTOR. The Debtor hereby
represents and warrants as follows and such representations and warranties shall
also be deemed to be made MUTATIS MUTANDIS with respect to each subsidiary of
the Debtor as if such subsidiary were the Debtor and with respect to Cytomedix,
N.V. at such time as it becomes a stockholder of Debtor:

          (a) ORGANIZATION AND GOOD STANDING. The Debtor is a corporation, duly
organized, validly existing, and in good standing under the laws of the state of
its jurisdiction of organization, with full corporate power and authority to
execute, deliver and perform this Agreement and to own and operate its
properties and to carry on its business as presently conducted and anticipated.
The Debtor is duly qualified as a foreign corporation to transact business, and
is in good standing and in every state or other jurisdiction where the character
of its properties owned or leased, or the nature of its activities, makes such
qualification necessary under applicable law, except where the failure to so
qualify would not have a Material Adverse Effect (as defined below) on the
Debtor.

          (b) AUTHORITY. Debtor has the requisite corporate power and authority
to enter into this Agreement, each Promissory Note and the agreements and
documents contemplated in connection herewith (collectively, the "Loan
Documents", to execute and deliver the Loan Documents and to perform its
obligations hereunder and thereunder. The execution and delivery of this
Agreement and the Loan Documents by the Debtor and the consummation by the
Debtor of the transactions contemplated hereby and thereby, have been duly
authorized by all requisite corporate action on the part of the Debtor and its
Board of Directors, and no other corporate proceedings on the part of the Debtor
are necessary to authorize the execution, delivery and performance of this
Agreement or the Loan Documents.

          (c) VALIDITY. This Agreement and the Loan Documents have been duly
executed and delivered by the Debtor and constitute the legal, valid, and
binding obligations of the Debtor, enforceable against the Debtor in accordance
with their respective terms, except to the extent such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, and other similar
laws affecting the enforcement of creditors' rights generally.

          (d) NO VIOLATIONS. Neither the execution and delivery of this
Agreement or the Loan Documents nor the consummation by the Debtor of the
transactions contemplated hereby or thereby, nor the compliance by the Debtor
with any of the provisions hereof or thereof, will (i) violate, conflict with,
or constitute a breach or default under (or an event which, with notice, lapse
of time or both, would constitute a breach or default), or give rise to any
right of termination or acceleration or result in the creation of any lien,
security interest, charge or encumbrance upon any property of the Debtor (other
than in favor of Collateral Agent) under (x) Debtor's charter (including any
certificate of designation), by-laws, or any voting agreement, stockholders'
agreement or similar document to which debtor is a party relating to the rights
of stockholders of Debtor, (y) any note, bond, mortgage, indenture, deed of
trust, license, lease, agreement or other instrument or obligation to which the
Debtor is a party or by which it or any of its respective properties or assets
may be bound or subject or (ii) violate any judgment, ruling, order, writ,
injunction, decree, statute, rule or regulation applicable to the Debtor or any
of its properties or assets.

          (e) NO CONSENT. Except for filings under applicable state and federal
securities laws, which will be timely made, no notice to, filing with, or
authorization, consent or approval of any governmental agency or authority, body
or agency is necessary or required in connection with the execution, delivery or
performance of this Agreement or the Loan Documents by the Debtor.

          (f) TITLE. Except for the security interest granted to Collateral
Agent hereunder and certain purchase money security interests in the Equipment,
Debtor is the sole owner (or, in the case of leases or licenses, the sole right
holder) of the Collateral and has good, valid and marketable title thereto, free
and clear of any and all liens, security interests, claims, encumbrances and
adverse rights or interests whatsoever (other

<PAGE>

than the Permitted Liens). Debtor has not executed any financing statement with
respect to all or any portion of the Collateral save and except the financing
statements executed in favor of Collateral Agent in connection with this
Agreement and in connection with the Permitted Liens. Set forth on EXHIBIT C is
a list of all Intellectual Property for which filings with governmental
authorities have been made by the Debtor or any of its subsidiaries (along with
the type of filing, the filing number and the authority with which it was
filed).

          (g) FIRST PRIORITY SECURITY INTEREST. The security interest granted to
Collateral Agent hereunder constitute and will constitute a valid and continuing
first priority lien and security interest in all Collateral as to which
perfection may be achieved by filing under the UCC in favor of Collateral Agent
(in each case, subject to Permitted Liens).

          (h) DEBTOR'S NAME AND ADDRESS. Debtor's current exact name and address
of its principal place of business is:

                                     Cytomedix, Inc.
                                     Three Parkway North, Suite 250 North
                                     Deerfield, IL  60015

                            and Debtor's previous address was:

                                     1523 Bowman Road, Suite A
                                     Little Rock, Arkansas 72211

Debtor has not previously had or transacted business under any other names or
addresses since December 31, 2000. Debtor agrees to give Collateral Agent prior
notice of any change in Debtor's name and/or address or any additional names
under which Debtor intends to transact business at least 30 days prior to any
such change or the use of any additional name(s).

          (i) POSSESSION AND LOCATION OF THE COLLATERAL. The Collateral is and
shall remain in the exclusive possession and control of Debtor, and Debtor shall
not transfer possession of or relocate all or any portion of the Collateral
without each Lender's prior written consent, unless Collateral Agent has
received 30 days' prior written notice of such relocation and determines that
its security interest is not adversely affected.

          (j) LITIGATION. There is no litigation, action, suit, proceeding,
claim or investigation pending, or to the knowledge or Debtor threatened,
against Debtor or with respect to all or any portion of the Collateral, or which
calls into question the validity or enforceability of this Agreement or any
Promissory Note or which, if adversely determined, could reasonably be expected
to have a Material Adverse Effect.

          (k) BOOKS AND RECORDS. All books, records and documents relating to
the Collateral are and shall continue to be true, correct and genuine in all
material respects.

          (l) PERMITS. Except for exceptions that would not have a Material
Adverse Effect, the Debtor is not in violation of or in default under any
applicable statute, rule, order, decree, writ, injunction or regulation of any
governmental body (including any court). Except for exceptions that would not
have a Material Adverse Effect, the Debtor has all permits and licenses to
operate its business.

          (m) TAXES. The Debtor is not delinquent in the payment of any taxes
which have been levied or assessed by any governmental authority against it or
its assets. The Debtor has timely filed all material tax returns which are
required by law to be filed, and has paid all material taxes and all other
assessments or fees levied upon the Debtor or upon its properties to the extent
that such taxes, assessments or fees have become

<PAGE>

due. Except for exceptions that would not have a Material Adverse Effect, no
controversy in respect of income taxes is pending or, to the knowledge of the
Debtor, threatened.

          (n) EVENT OF DEFAULT. No event has occurred and is continuing which
constitutes an Event of Default (as hereinafter defined) or would constitute
such an Event of Default after notice or lapse of time or both.

          (o) FULL DISCLOSURE. To the Debtor's knowledge, there is no fact which
the Debtor has not disclosed to each Lender in writing which materially affects
adversely or, to the Debtor's knowledge, will materially and adversely affect
the Collateral, the Collateral Agent's liens in the Collateral or the priority
thereof, the other assets, business, liabilities, operations, prospects, profits
or condition (financial or otherwise) of the Debtor or the ability of the Debtor
to perform its obligations under each Promissory Note or the other Loan
Documents (a "Material Adverse Effect").

          (p) COMPLIANCE WITH LAWS. Except for exceptions that would not have a
Material Adverse Effect, the Debtor has duly complied with, and the Collateral
and its business operations and leaseholds are in compliance in all material
respects with, the provisions of all federal, state and local laws, rules and
regulations applicable to the Debtor, the Collateral or the conduct of the
Debtor's business.

     5. COVENANTS OF DEBTOR. Debtor covenants and agrees that, from and after
the date of this Agreement until all of the Secured Debt shall have been paid in
full (it being understood, for purposes of this Section 5, that "Debtor" shall
also apply to each of its subsidiaries):

          (a) COVENANTS. Debtor shall take, or shall refrain from taking, as the
case may be, each action that is necessary to be taken or not taken, as the case
may be, so that no Event of Default is caused by the failure to take such action
or to refrain from taking such action by such Debtor.

          (b)  INSURANCE. Debtor shall cause the casualty insurance policy
maintained by it to (i) provide that no cancellation, reduction in amount or
change in coverage thereof shall be effective until at least 30 days after
receipt by Collateral Agent of written notice thereof, and (ii) name Collateral
Agent, for the benefit of the Lenders, as an additional insured party and as the
loss payee.

          (c) MAINTENANCE OF PERFECTED SECURITY INTEREST; FURTHER DOCUMENTATION.

               (i)  Debtor shall maintain the security interest created by this
     Agreement as a perfected security interest having the priority described
     herein and shall defend such security interest against the claims and
     demands of all Persons whomsoever.

               (ii) Debtor will furnish to each Lender from time to time
     statements and schedules further identifying and describing the Collateral
     and such other reports in connection with the Collateral as such Lender may
     reasonably request, all in such detail as such Lender may reasonably
     request.

               (iii) At any time and from time to time, upon the written request
     of any Lender, and at the sole expense of Debtor, Debtor will promptly and
     duly execute, deliver and/or have recorded with appropriate agencies such
     further instruments and documents and take such further actions as such
     Lender may reasonably request for the purpose of obtaining or preserving
     the full benefits of this Agreement and of the rights and powers herein
     granted, including, without limitation, the filing of any financing or
     continuation statements under the UCC (or other similar laws) in effect in
     any jurisdiction with respect to the security interests created hereby and
     to the filing of any documents necessary to obtain and preserve the rights
     and powers in the Intellectual Property.

<PAGE>

          (d) CHANGES IN LOCATIONS, NAME, ETC. Debtor will not, except upon
30 days' prior written notice to the each Lender and delivery to Collateral
Agent promptly thereafter of all additional executed financing statements and
other documents reasonably requested by any Lender to maintain the validity,
perfection and priority of the security interests provided for herein:

               (i) change the location of its chief executive office or
     principal place of business from that referred to in Section 4(h) above; or

               (ii) change its name, identity or corporate structure to
     such an extent that any financing statement filed by the Collateral Agent
     in connection with this Agreement would become seriously misleading.

          (e) NOTICES. Debtor will advise the each Lender promptly, in
reasonable detail, of any lien (other than security interests created hereby or
Permitted Liens) on any of the Collateral which would adversely affect the
ability of the Collateral Agent to exercise any of its remedies hereunder.

          (f) RECEIVABLES COLLATERAL.

               (i) Other than in the ordinary course of business consistent
     with past practices, Debtor will not (i) grant any extension of the time of
     payment of any receivables collateral, (ii) compromise or settle any
     receivables collateral for less than the full amount thereof, (iii)
     release, wholly or partially, any Person liable for the payment of any
     receivables collateral, (iv) allow any credit or discount whatsoever on any
     receivables accounts or accounts receivable, (v) except for Permitted
     Liens, sell or pledge any interest in any receivables, collateral, or (vi)
     amend, supplement or modify any receivables collateral in any manner that
     could adversely affect in any material respect the value thereof.

               (ii) If at any time the aggregate amount owing to the Debtor
     on all Accounts as to which a governmental authority is an obligor exceeds
     20% of the aggregate amount owing to the Debtor on all Accounts, Debtor
     shall so notify Collateral Agent and, if requested by any Lender, at the
     Debtor's sole cost and expense, from and after the date on which such
     aggregate amount first exceeds such percentage, deliver to Collateral Agent
     such assignments, notices of assignment and other documents or information
     as shall be necessary or otherwise reasonably requested by the Collateral
     Agent to permit the assignment hereunder of all Accounts as to which a
     Governmental Authority is an obligor pursuant to all applicable
     Governmental Requirements (including, without limitation, the Assignment of
     Claims Act of 1940, as amended).

          (g) INVENTORY.

               (i) Debtor shall not engage in any sale of the Inventory
     other than for fair consideration in the conduct of such Debtor's business
     in the ordinary course and shall not engage in sales or other dispositions
     to creditors (except for arms-length sales or disposition of finished goods
     to Curative Health Services, Inc. and CHS Services, Inc.); sales or other
     dispositions in bulk; and any use of any of the Inventory in breach of any
     provision of this Agreement.

               (ii) No sale of Inventory shall be on consignment, approval,
     or under any other circumstances such that, with the exception of the
     Debtor's customary return policy applicable to the return of inventory
     purchased by the Debtor's customers in the ordinary course, such Inventory
     may be returned to the Debtor without the consent of each Lender.

<PAGE>

               (iii) All Inventory now owned or hereafter acquired by such
     Debtor is and will be of good, and merchantable quality and free from
     defects (other than defects within customary trade tolerances).

          (h) ACCOUNTS.

               (i) The amount of each Account shown on the books, records,
     and invoices of Debtor represented as owing by each account debtor is and
     will be the correct amount actually owing by such account debtor and shall
     have been fully earned by performance by Debtor, except as otherwise
     permitted by generally accepted accounting principles.

               (ii) Debtor has no knowledge of any impairment of the validity or
     collectibility of any of the Accounts in an aggregate amount in excess of
     Debtor's reserve or allowance therefore on its regularly prepared balance
     sheet and shall notify each Lender of any such fact immediately after
     Debtor become aware of any such impairment.

               (iii) Other than Permitted Liens, Debtor shall not post any bond
     to secure its performance under any agreement to which Debtor is a party
     nor cause any surety, guarantor, or other third party obligee to become
     liable to perform any obligation of Debtor (other than to each Lender and
     Collateral Agent) in the event of the Debtor's failure so to perform.

          (i) NOTIFICATION TO ACCOUNT DEBTORS. Collateral Agent shall have the
right at any time following an Event of Default and at anytime thereafter) to
notify any of the Debtor's account debtors to make payment directly to
Collateral Agent and to collect all amounts due on account of the Collateral.

          (j) TRANSACTIONS WITH RELATED PERSONS Other than in connection with
the transactions contemplated hereby or as set forth on Schedule 5(j), the
Debtor shall not, directly or indirectly, make any loan or advance, purchase,
assume or guarantee any note to or from any of its officers, directors,
shareholders or Affiliates (as defined for purposes of the Securities Act of
1933, as amended) ("Securities Act"), or to or from any member of the
immediate family of any of its officers, directors, shareholders or
Affiliates, or subcontract any operations to any Affiliate; or enter into, or
be a party to, any transaction with any Affiliate or shareholder of the Debtor,
except in the ordinary course of and pursuant to the reasonable requirements of
the Debtor's business and upon fair and reasonable terms which are fully
disclosed to each Lender and are no less favorable to the Debtor than would
obtain in a comparable arm's length transaction with a Person not an Affiliate
or shareholder of the Debtor.

          (k) CORPORATE EXISTENCE AND MAINTENANCE OF PROPERTIES. The Debtor
shall maintain and preserve its corporate existence and all rights, privileges
and franchises now enjoyed; and the Debtor shall conduct its business in an
orderly, efficient and customary manner, keep its properties in good working
order and condition, and from time to time make all needed repairs to, renewals
of or replacements of its properties (except to the extent that any of such
properties is obsolete or is being replaced) so that the efficiency of such
property shall be maintained and preserved. The Debtor shall file or cause to be
filed in a timely manner all reports, applications, estimates and licenses which
shall be required by any governmental authority and which, if not timely filed,
would have a Material Adverse Effect.

          (l) MERGER AND DISSOLUTION. The Debtor shall not liquidate or
dissolve, or enter into any consolidation, merger, syndicate, share exchange or
other business combination or sell, lease or dispose of its business or assets
as a whole or such part as in the opinion of each Lender constitute a
substantial portion of its business or assets (except for transactions among the
Debtor and its subsidiaries); provided, however, that the foregoing shall be
inapplicable with respect to the proposed merger which is consummated in
accordance with the Agreement and Plan of Merger, to which Debtor and Cytomedix,
N.V. are to be parties ("Exchange

<PAGE>

Agreement") and subject to the following further conditions: (i) the majority
shareholder of Debtor after consummation thereof and all of its subsidiaries
shall have unconditionally guaranteed the Secured Debt in a manner, form and
substance acceptable to each Lender in its absolute discretion and Collateral
Agent (on behalf of the Lenders) shall have obtained a first perfected security
interest in all of such shareholder's and its subsidiaries' assets (subject only
to Permitted Liens), including, but not limited to, such shareholder's stock in
Debtor; (ii) upon consummation of the transactions contemplated by the Exchange
Agreement, the sale by each Lender of all of the securities issuable upon
conversion of its Promissory Note shall have been duly registered under the
Securities Act and such securities shall be freely tradable without any
restrictions except under the Securities Act and applicable securities laws;
(iii) the Exchange Agreement and the agreements referenced therein shall have
been consummated without modification; and (iv) there having occurred no Event
of Default and the Secured Debt having been repaid or converted in full.

          (m) INDEBTEDNESS. The Debtor shall not create, incur or suffer to
exist any indebtedness for money borrowed or capitalized lease obligations other
than in the ordinary course of business, except for (a) the Secured Obligations,
or (b) indebtedness secured by Permitted Liens.

          (n) DISPOSITION OF ASSETS . The Debtor shall not
sell, lease, transfer, convey or otherwise dispose of any of its assets or
property except for sales of inventory and licensing of intellectual property in
the ordinary course of business, disposition of worn out and obsolete assets and
sales of assets on an arm's-length basis not to exceed $100,000 in any year.

          (o) RESTRICTED INVESTMENTS. The Debtor shall not make any loans,
advances or extensions of credit to, or any investment in cash or by delivery of
property in, any Person, whether by acquisition of stock, indebtedness or other
obligation or security, or by loan, advance or capital contribution, or
otherwise, except for travel or other reasonable expense advances to employees
in the ordinary course of business, extensions of trade credit in the ordinary
course of business, investments in cash and cash equivalents, investments by the
Debtor in any entity a value (measured as of the date made), when aggregated
with all other investments made hereunder, that does not exceed $25,000, and
transfers of assets among Debtor and its subsidiaries.

          (p) RESTRICTIONS ON DISTRIBUTIONS AND OTHER PAYMENTS; CHARTER
AMENDMENTS. The Debtor shall not (a) declare any dividend on or incur any
liability to make any payment or distribution of cash or other property or
assets in respect of any of the Debtor's securities, or (b) make any payment on
account of the purchase, redemption or other retirement of any of the Debtor's
securities or any other payment or distribution made in respect thereof, either
directly or indirectly. The Debtor shall not modify its Certificate of
Incorporation or Bylaws without each Lender's prior written consent in a manner
that could reasonably be expected to be adverse to any Lender or which is
inconsistent with any Loan Document. Notwithstanding the foregoing, wholly-owned
subsidiaries of the Debtor may pay dividends or make other distributions on any
of such subsidiaries' equity interests owned by Debtor.

          (q) NEW BUSINESS. The Debtor shall not engage in any business other
than the business in which the Debtor is currently engaged or a business
reasonably related thereto or make any material change in any of its business
objectives, purposes and operations which might in any way adversely affect the
repayment of the Secured Debt.

          (r) SUBSIDIARIES. The Debtor shall cause each of its subsidiaries
(and, upon consummation of the Exchange Agreement, its sole shareholder and such
sole shareholder's subsidiaries) to execute a secured guaranty in favor of the
Collateral Agent (for the benefit of the Lenders) to secure the Secured Debt
with a first lien on all of its assets (subject only to Permitted Liens) and to
take such other actions in connection therewith as any Lender shall request.
Such secured guaranties shall contain representations, warranties and covenants
which are substantially similar (but with application to the guarantor) to those
set forth herein and such others

<PAGE>

as any Lender shall require in its sole and absolute discretion.

     6. EVENTS OF DEFAULT. The occurrence of any one or more of the following
shall constitute an "Event of Default" hereunder (it being understood that for
the purposes of this Section 6 "Debtor" shall also be a reference to each
subsidiary of Debtor (and to Cytomedix., N.V. after it becomes a shareholder of
Debtor) as well, so that if any of the following events occurs with respect to
any such subsidiary it would constitute an Event of Default):

          (a) nonpayment by the Debtor of any portion of the principal or
interest under any Promissory Note as and when due and the continued nonpayment
thereof for a period of ten (10) days; or

          (b) the occurrence of any event which would permit any Lender to
accelerate payment of its Promissory Note.

     7. RIGHTS OF COLLATERAL AGENT UPON THE OCCURRENCE OF AN EVENT OF DEFAULT.
Upon the occurrence of an Event of Default and at any time thereafter and upon
the approval of the holders of a majority in interest of the unpaid principal
balance of the Notes, the Collateral Agent may exercise any rights under
applicable law or the Loan Documents, including, but not limited to, any one or
more of the following rights and remedies:

          (a) Upon the occurrence of an Event of Default, and at any time
thereafter, Collateral Agent may, at its option, declare all of the Secured Debt
immediately due and payable (and upon an Event of Default arising by virtue of
Debtor's bankruptcy all of the Secured Debt shall automatically and immediately
be deemed declared due and payable), notwithstanding any of the terms thereof
and exercise any rights and remedies available to a secured party under this
Agreement, under the UCC, or otherwise available at law or in equity, including
without limitation the right to enter upon any of the premises of the Debtor,
with or without process of law, and take immediate possession of and remove the
Collateral or any part thereof and collect and receive all income, revenues,
payments and proceeds therefrom. Debtor shall, upon Collateral Agent's request,
assemble the Collateral (and all records and documents relating thereto) and
make such items available to Collateral Agent at a place designated by
Collateral Agent which is reasonably convenient to the parties. Without removal,
Collateral Agent may render any Equipment unusable and may dispose of such items
of Collateral at the Debtor's business premises as provided under the UCC.

          (b) Collateral Agent may sell, lease, or otherwise dispose of all or
any portion of the Collateral in any commercially reasonable manner. Disposition
of the Collateral may be made by any one or more public or private proceedings
upon any one or more contracts. Any such sale or disposition may be made in
whole, in part, in units, or in parcels, and at any time and place designated by
Collateral Agent. Any such sale or disposition may be for cash, upon credit, or
upon such other terms and conditions as Collateral Agent may determine, in its
sole discretion.

          (c) Unless the Collateral is perishable or threatens to decline
speedily in value or is of a type customarily sold on a recognized market,
reasonable notification of the time and place of any public sale or reasonable
notification of the time after which any private sale or other intended
disposition is to be made shall be sent by the Collateral Agent to the Debtor
unless the Debtor after the occurrence of an Event of Default shall have signed
a statement renouncing or modifying its right to notification of sale. The
requirements of a reasonable notice hereunder shall be met if such notice is
mailed by ordinary mail, postage prepaid, addressed to Debtor at its business
address described herein, at least ten days before the time of such sale or
disposition.

          (d) Each Lender shall have the right to buy all of any portion of the
Collateral at any public or private sale.

<PAGE>

          (e) The Debtor acknowledges that when all or any portion of the
Collateral is disposed of by Collateral Agent after the occurrence of an Event
of Default, that such disposition shall transfer to any purchaser for value all
of the Debtor's rights and interests therein and any such purchaser shall take
free of all rights and interests of the Debtor in such property.

          (f) Upon the occurrence of an Event of Default, Collateral Agent shall
have the right to notify persons obligated to Debtor on any Accounts to make
payment thereof directly to Collateral Agent and Collateral Agent may take
control of all the proceeds of the Accounts. After the occurrence of an Event of
Default, the Debtor will not, without the prior written consent of Collateral
Agent, grant any extension of the time for payment of any of the Accounts,
compromise or settle any accounts for less than the full amount thereof, or
release wholly or partly any person liable for the payment thereof or allow any
credit or discount whatsoever thereon.

     8. APPLICATION OF PROCEEDS AND DEFICIENCY. The proceeds of any disposition
of all or any portion of the Collateral following an Event of Default shall be
applied in the following order:

          (a) First, to the payment of all reasonable expenses of retaking,
holding, preparing the Collateral for sale or lease, and selling, leasing, or
otherwise disposing of the Collateral, including without limitation reasonable
attorneys' fees and other costs incurred by the Lenders and the Collateral Agent
in connection therewith;

          (b) Second, to the full and complete satisfaction of all of the
Secured Debt; and

          (c) Third, any surplus shall be remitted by Collateral Agent to Debtor
promptly after payment of all of the foregoing. In the event there is a surplus
and any other person makes a claim to the surplus amount, the Lenders may hold
said sum (without liability for interest or otherwise) or institute an
interpleader action and deposit said sum with an appropriate court of competent
jurisdiction until such time as the rights in such surplus are fully and finally
determined by a final nonappealable decision of a court of competent
jurisdiction or by agreement of all interested parties.

     To the extent the proceeds from the disposition of the Collateral are
insufficient to satisfy items 8(a) and (b) above, Debtor shall remain liable to
the Lenders for the payment of such deficiency, with interest at the rate of
twelve percent (12%) per annum.

     9. POWER OF ATTORNEY. Debtor hereby makes, constitutes and appoints
Collateral Agent as its true and lawful agent and attorney in fact, with full
power of substitution, and in Debtor's name, place and stead after the
occurrence of an Event of Default (i) to collect, pursue collection of, and
receive payment for any and all income, proceeds or payments with respect to any
Collateral; (ii) to endorse the name of Debtor upon any notes, checks,
acceptances, drafts, money orders, instruments or other documents relating to
the Collateral, or the income, proceeds, or payments with respect thereto so as
to affect the deposit and collection thereof, (iii) to waive, sue for, settle,
adjust, or compromise any claims or right with respect to the Collateral; and
(iv) to take any action in the name and on behalf of the Debtor to fulfill any
representation, warranty, covenant or agreement of the Debtor contained herein
or as may be necessary or appropriate to carry out the purposes and intent of
this Agreement and to perfect and protect the Collateral Agent's security
interest in the Collateral and its rights therein. Debtor agrees that neither
Collateral Agent nor any of its agents, designees, officers or employees will be
liable for any acts of commission or omission, or for any error of judgment or
mistake of facts or law with respect to the exercise of said power of attorney
save and except fraud, gross misconduct, or a knowing violation of law. The
power of attorney granted hereunder is coupled with an interest and shall be
irrevocable during the term of this Agreement.

<PAGE>

     10. DURATION. This Agreement shall continue in full force and effect, and
the security interest granted hereby and the representations, warranties,
covenants and obligations of the Debtor hereunder and all the terms, conditions
and provisions hereof shall continue to be fully operative until the Debtor
shall have fully paid and discharged all of the Secured Debt. Debtor agrees that
to the extent a payment or payments to a Lender are subsequently invalidated,
set aside or otherwise required to be repaid, the obligation or part thereof
intended to be satisfied, and the security interest in the collateral granted
hereby, shall be revived and continued in full force and effect as if said
payment had not been made.

     11. MISCELLANEOUS.

          (a) ASSIGNMENT. This Agreement and the rights, obligations and duties
of the Debtor hereunder shall not be assignable or otherwise transferable by
Debtor. Any Lender may, upon notice to Debtor, transfer, participate or assign
any or all of its rights and obligations under this Agreement.

          (b) FEES OF LEGAL COUNSEL. In the event a Lender or Collateral Agent
shall employ legal counsel to protect its rights hereunder or to enforce any
term or provision hereof or to protect its interest in the Collateral, such
attorneys' fees and other legal expenses shall become part of the Secured Debt
and shall be payable by Debtor to a Lender and Collateral Agent upon demand. The
Debtor shall pay all fees and expenses of the Lenders and Collateral Agent in
connection with the negotiation, consummation and implementation of this
Agreement and the Loan Documents and the performance of its obligations
hereunder.

          (c) FURTHER ASSURANCES. Debtor agrees that from time to time
hereafter, upon request, it will, at its sole expense, execute, acknowledge and
deliver such other instruments and documents and take such further action as may
be reasonably necessary to carry out the intent of this Agreement and the Loan
Documents, specifically including, but not limited to the delivery of executed
stock powers and stock certificates or other evidences of ownership necessary to
perfect the pledge of any such securities granted hereunder and the execution
and delivery of patent and other intellectual property assignments. The Debtor
shall make appropriate entries upon its financial statements and its books and
records disclosing the Collateral Agent's liens and security interests in the
Collateral.

          (d) MODIFICATION. No term or provision contained herein may be
modified, amended or waived except by written agreement or consent signed by the
party to be bound thereby.

          (e) BINDING EFFECT AND BENEFIT. This Agreement shall inure to the
benefit of, and shall be binding upon, the parties hereto, their heirs,
executors, administrators, personal representatives, successors in interest and
permitted assigns.

          (f) HEADINGS AND CAPTIONS. Subject headings and captions are included
for convenience purposes only and shall not affect the interpretation of this
Agreement.

          (g) NOTICE. All notices, requests, demands and other communications
permitted or required hereunder shall be in writing, and either (i) delivered in
person, (ii) sent by express mail or other overnight delivery service providing
receipt of delivery, (iii) mailed by certified or registered mail, postage
prepaid, return receipt requested or (iv) sent by telex, telegraph or other
facsimile transmission as follows:

          If to Debtor, addressed or delivered in person to:

                   Cytomedix, Inc.
                   Three Parkway North, Suite 250 North
                   Deerfield, IL  60015
                   Attention:  President

<PAGE>

                   Fax: (847) 405-7801

          If to the Collateral Agent, on behalf of the Lenders:

                   First Security Bank
                   Attn: Trust Dept.
                   P. O. Box 1009
                   Searcy, AR  72145-1009
                   Fax: (501) 278-2184

          or to such other address as either party may designate by notice in
accordance with this Section.

          Any such notice or communication, if given or made by prepaid,
registered or certified mail or by recorded express delivery, shall be deemed to
have been made when actually received, but not later than three (3) business
days after the same was properly posted or given to such express delivery
service and if made properly by telex, telecopy or other facsimile transmission
such notice or communication shall be deemed to have been made at the time of
dispatch.

          (h) SEVERABILITY. If any portion of this Agreement is held invalid,
illegal or unenforceable, such determination shall not impair the enforceability
of the remaining terms and provisions herein, which may remain effective, and to
this end this Agreement is declared to be severable.

          (i) TIME FOR PERFORMANCE. Time is of the essence in this Agreement.

          (j) WAIVER. No waiver of a default, breach or other violation of any
provision of this Agreement shall operate or be construed as a waiver of any
subsequent default, breach or other violation or limit or restrict any right or
remedy otherwise available. No delay or omission on the part of any Lender or
Collateral Agent to exercise any right or power arising by reason of a default
shall impair any such right or power or prevent its exercise at any time during
the continuance thereof.

          (k) GENDER AND PRONOUNS. Throughout this Agreement, the masculine
shall include the feminine and neuter and the singular shall include the plural
and vice versa as the context requires.

          (l) ENTIRE AGREEMENT. This Agreement and each Note constitute the
entire agreement of the parties and supersedes any and all other prior
agreements, oral or written, with respect to the subject matter contained
herein.

          (m) GOVERNING LAW; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE
INTERPRETED, AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED, IN
ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAW PROVISIONS) OF
THE STATE OF ILLINOIS. AS PART OF THE CONSIDERATION FOR NEW VALUE THIS DAY
RECEIVED, THE DEBTOR HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED WITHIN CHICAGO, STATE OF ILLINOIS. EACH OF THE PARTIES HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY SUIT OR PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. THE
DEBTOR WAIVES ANY OBJECTION WHICH THE DEBTOR MAY HAVE BASED ON LACK OF
JURISDICTION OR IMPROPER VENUE OR FORUM NON CONVENIENS TO ANY SUIT OR PROCEEDING
INSTITUTED BY ANY LENDER OR COLLATERAL AGENT

<PAGE>

UNDER THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS IN ANY STATE OR FEDERAL COURT
LOCATED WITHIN CHICAGO, STATE OF ILLINOIS AND CONSENTS TO THE GRANTING OF SUCH
LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS
SECTION SHALL AFFECT THE RIGHT OF ANY LENDER OR COLLATERAL AGENT TO BRING ANY
ACTION OR PROCEEDING AGAINST THE DEBTOR OR ITS PROPERTY IN THE COURTS OF ANY
OTHER JURISDICTION WHICH HAS JURISDICTION OVER THE DEBTOR OR ITS PROPERTY. THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDERS AND COLLATERAL AGENT TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, MAKE THE LOANS AND EXTEND THE
OTHER FINANCIAL ACCOMMODATIONS CONTEMPLATED HEREUNDER AND THEREUNDER.

          (n) INCORPORATION BY REFERENCE. All exhibits and documents referred to
in this Agreement shall be deemed incorporated herein by any reference thereto
as if fully set out.

          (o) COUNTERPARTS. This Agreement may be executed in one or more
counterparts (all counterparts together reflecting the signature of all parties)
each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument.

          (p) SERVICE OF PROCESS. Debtor hereby irrevocably consents that
service of legal process in any such action or proceeding may be made in any
manner permitted by the rules of practice and procedure applicable to such
courts.

          (q) DEBTOR'S FAILURE TO PAY COSTS OR EXPENSES. If the Debtor fails to
pay any cost or expense required hereunder to be paid by Debtor, (including,
without limitation, insurance and taxes) any Lender and/or Collateral Agent may,
at its option, pay such cost or expense on behalf of the Debtor, and in such
event the amount so paid by such party shall become part of the Secured Debt
hereunder and shall be payable by Debtor to such party upon demand.

          (r) INSPECTION. Any Lender and/or Collateral Agent (by any of its
respective officers, employees and agents) shall have the right, at any
reasonable time or times during the Debtor's usual business hours, to inspect
the Collateral, all records related thereto (and to make extracts from such
records), and the premises upon which any of the Collateral is located, after an
Event of Default, to request information relating to the Debtor from any Person
and to verify the amount, quality, quantity, value and condition of, or any
other matter relating to, the Collateral. Collateral Agent may, at any time upon
and after the occurrence of a default or an Event of Default and during the
continuance thereof, employ and maintain in the Debtor's premises custodians
selected by Collateral Agent who shall have full authority to do all acts
necessary to protect Collateral Agent's interest. All expenses incurred by
Collateral Agent by reason of the employment of such custodians shall be paid by
the Debtor, added to the Secured Debt and secured by the Collateral. The Debtor
irrevocably waives the right to direct the application of any and all payments
and collections at any time or times hereafter received by any Lender or the
Collateral Agent from or on behalf of the Debtor, and the Debtor does hereby
irrevocably agree that each Lender and the Collateral Agent shall have the
continuing exclusive right to apply and to reapply any and all such payments and
collections received at any time or times hereafter by such Lender and/or
Collateral Agent or its agents against the Secured Debt which are due and
payable at the time of such application, in such manner as provided herein.

          (s) NON-CUMULATIVE REMEDIES. The enumeration of the Lender's and
Collateral Agent's rights and remedies set forth in this Agreement is not
intended to be exhaustive and the exercise by them of any right or remedy shall
not preclude the exercise of any other rights or remedies, all of which shall be
cumulative, and shall be in addition to any other right or remedy given
hereunder, under the Loan Documents

<PAGE>

or under any other agreement to which the Debtor and any Lender or which may now
or hereafter exist in law or in equity or by suit or otherwise. No delay or
failure to take action on the part of any Lender or Collateral Agent in
exercising any right, power or privilege shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right, power or privilege
preclude other or further exercise thereof or the exercise of any other right,
power or privilege or shall be construed to be a waiver of any Event of Default.
No course of dealing between the Debtor and any other party hereto or its
employees shall be effective to change, modify or discharge any provision of
this Agreement or to constitute a waiver of any Event of Default. Neither any
Lender nor Collateral Agent shall not, under any circumstances or in any event
whatsoever, have any liability for any error, omission or delay of any kind
occurring in the liquidation of the Collateral or for any damages resulting
therefrom except damages directly attributable to such party's (or its
officers', employees' or agents') gross negligence or willful misconduct.

<PAGE>

          (t) SURVIVAL OF AGREEMENTS. All agreements, covenants,
representations and warranties contained herein or made in writing by or on
behalf of the Debtor in connection with the transactions contemplated hereby
shall survive the execution and delivery of this Agreement and the other Loan
Documents.

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as
of the day and year aforesaid.

                                  DEBTOR:

                                  CYTOMEDIX, INC.

                                  By:    /s/ Glenn M. Charlesworth
                                      ----------------------------------------
                                  Name:  Glenn M. Charlesworth
                                        --------------------------------------
                                  Title: Vice President for Finance and Chief
                                         Financial Officer
                                        --------------------------------------

                                  SECURED PARTY:

                                  By: COLLATERAL AGENT

                                      FIRST SECURITY BANK

                                     By:    /s/ Frank Faust
                                        --------------------------------------
                                     Name:  Frank Faust
                                            ----------------------------------
                                     Title: Vice President and Trust Officer
                                            ----------------------------------

<PAGE>

                                    EXHIBIT A

                                  Note Holders

<PAGE>

                                    Exhibit B

                                  Form of Note

<PAGE>

                                    Exhibit C

                                                                      SCHEDULE 1

                          U.S. TRADEMARK REGISTRATIONS
                            AND PENDING APPLICATIONS
<TABLE>
<CAPTION>

                                        REGISTERED U.S. TRADEMARKS
--------------------------------------------------------------------------------------------------------------------
MARK                                           REG. NO.                                 DATE OF ISSUE
-----                                          --------                                 -------------
<S>                                            <C>                                      <C>
Autologous                                     US 75/507,641                            6/23/98 Issued 4/11/00
Autologous Platelet Gel                        US 75/507,346                            6/23/98
Autologous Platelet Jel                        US 75/507,345                            6/23/98
Autolo-Gel                                     US 75/759,746                            7/26/99
Autolo                                         US 75/759,747                            7/26/99
Cytomedix
</TABLE>

<TABLE>
<CAPTION>
                                   PENDING U.S. TRADEMARK APPLICATIONS
-----------------------------------------------------------------------------------------------------
MARK                                             SERIAL NO.                              FILING DATE
----                                             ----------                              ------------
<S>                                              <C>                                     <C>

</TABLE>

<PAGE>

                         FOREIGN TRADEMARK REGISTRATIONS
                            AND PENDING APPLICATIONS

                          REGISTERED TRADEMARKS

<TABLE>
<CAPTION>

                                      REGISTERED FOREIGN  TRADEMARKS
--------------------------------------------------------------------------------------------------------------------
MARK                                           REG. NO.                                 DATE OF ISSUE
-----                                          --------                                 -------------
<S>                                            <C>                                      <C>
                                               Canada 512700                            7/07/99
                                               Japan 2400316                            4/30/92
                                               Sweden 220805                            2/01/99
                                               US 1,596,010                             5/15/90
</TABLE>

<TABLE>
<CAPTION>
                                 PENDING FOREIGN. TRADEMARK APPLICATIONS
-----------------------------------------------------------------------------------------------------
MARK                                           SERIAL NO.                                FILING DATE
----                                           ----------                                ------------
<S>                                            <C>                                       <C>
                                               Philippines App. No. 01601                2/16/99
</TABLE>

<PAGE>

                                                                      SCHEDULE 2

                    U.S. COPYRIGHTS, COPYRIGHT REGISTRATIONS
                            AND PENDING APPLICATIONS

                        NON-REGISTERED COPYRIGHTS CLAIMED

<TABLE>
<CAPTION>
                                  REGISTERED U.S. COPYRIGHTS
-----------------------------------------------------------------------------------------------------
COPYRIGHT                                      REG. NO.                                 DATE OF ISSUE
---------                                      --------                                 -------------
<S>                                            <C>                                      <C>

</TABLE>

<TABLE>
<CAPTION>
                               PENDING U.S. COPYRIGHT APPLICATIONS
---------------------------------------------------------------------------------------------------
COPYRIGHT                                      SERIAL NO.                               FILING DATE
---------                                      ----------                               -----------
<S>                                            <C>                                      <C>

</TABLE>

<PAGE>

                                                                      SCHEDULE 3

                       U.S. PATENTS, PATENT REGISTRATIONS
                            AND PENDING APPLICATIONS

<TABLE>
<CAPTION>
                             REGISTERED U.S. PATENTS
-------------------------------------------------------------------------------------------------------------------
PATENT                                                           REG. NO.                             DATE OF ISSUE
------                                                           --------                             -------------
<S>                                                              <C>                                  <C>

Improved Enriched Platelet Wound Healant                         PCT/US99/02981                       2/13/99
Improved Enriched Platelet Wound Healant                         US Patent (to be assigned)           7/19/00
                                                                 US 5,470,831                         11/28/95
                                                                 US 5,776,892                         7/07/98
Wound Healing Agents                                             US
Wound Healing Agents                                             US
Wound Healing Agents                                             US
Wound Healing Agents (Hair Growth)                               US 4,957,742                         9/18/90
Isolating Wound Capillary Endothelial Cells                      US
Wound Healing Agents                                             US
Wound Healing Agents                                             US
Wound Healing Agents                                             US
Virus Free Platelet Derivative                                   US
Method for Promoting Hair Growth                                 US 5,178,883                         1/12/93
Coating a Prosthetic Surface w/ Mammalian Cells                  US
Coating a Prosthetic Surface w/ Mammalian Cells                  US
Wound Healing Agents                                             US
Wound Healing Agents                                             US
Virus Free Platelet Derivative & Method of Making Same           US
Method & Assay Improved Specific Binding Reactivity              US
Method & Assay Improved Specific Binding Reactivity              US
Method & Assay Improved Specific Binding Reactivity              US
Platelet Releasale for Efficacious Treatment of Tissue           US 5,599,558                         2/04/97
</TABLE>

<TABLE>
<CAPTION>
                                PENDING U.S. PATENT APPLICATIONS
---------------------------------------------------------------------------------------------------
PATENT                                      SERIAL NO.                               FILING DATE
------                                      ----------                               -----------
<S>                                         <C>                                      <C>

</TABLE>

<PAGE>

                      FOREIGN PATENTS, PATENT REGISTRATIONS
                            AND PENDING APPLICATIONS

<TABLE>
<CAPTION>
                                                      REGISTERED FOREIGN PATENTS
-----------------------------------------------------------------------------------------------------------------------
PATENTS                                                          REG. NO.                             DATE OF ISSUE
<S>                                                              <C>                                  <C>
Improved Enriched Platelet Wound Healant                         Australia 53122/99                   2/29/00
Improved Enriched Platelet Wound Healant                         Brazil (TBA)                         1/31/00
Improved Enriched Platelet Wound Healant                         Canada 2,301,794                              2/18/00
Improved Enriched Platelet Wound Healant                         Japan 2000-555609                    1/31/00
Improved Enriched Platelet Wound Healant                         Mexico 000009                        1/03/00
Improved Enriched Platelet Wound Healant                         Great Britain 00024257               2/02/00
                                                                 Austria E 164 167                    3/18/98
                                                                 Belgium 0 562 329B                   3/18/98
                                                                 Canada 2,098,921                     Filing Date 12/20/91
                                                                 Switzerland 0 563 329B               3/18/98
                                                                 Germany 69129121                     3/18/98
                                                                 Denmark 0 563 329B                   3/18/98
                                                                 European 0 563 329B                  3/18/98
                                                                 Spain 2117045                        3/18/98
                                                                 France 0 563 329B                    3/18/98
                                                                 Great Britain 0 563 329B             3/18/98
                                                                 Italy 0 563 329B                     3/18/98
                                                                 Korea 204,400                        3/29/99
                                                                 Netherlands 0 563 329B               3/18/98
                                                                 Sweden 0 563 329B                    3/18/98
                                                                 WO PCT (US91/09813)                  12/20/91
                                                                 Europe (Published) 94921322.7        (6/17/94)
                                                                 WO PCT (US94/06888)                  (6/17/94)
Wound Healing Agents                                             AR 235,349                           8/31/87
Wound Healing Agents                                             CA 1,261,259                         9/26/89
Wound Healing Agents                                             lE 57,894                            5/05/98
Wound Healing Agents                                             IL 77,096                            11/19/85
Wound Healing Agents                                             WO
Wound Healing Agents                                             AU 596,954
Wound Healing Agents                                             BR
Wound Healing Agents                                             DK 165,168                           3/01/93
Wound Healing Agents                                             FI 85,219                            3/25/92
Wound Healing Agents                                             HU
Wound Healing Agents                                             JP 1,986,949                         11/08/95
Wound Healing Agents                                             NO 170,194                           9/23/92
Wound Healing Agents                                             RU
Wound Healing Agents                                             AT 202,298                           7/15/92
Wound Healing Agents                                             BE 202,298                           7/15/92
Wound Healing Agents                                             CH 202,298                           7/15/92
Wound Healing Agents                                             DE 202,298                           7/15/92

<PAGE>

Wound Healing Agents                                             EP 202,298                           7/15/92
Wound Healing Agents                                             EP
Wound Heeling Agents                                             FR 202,298                           7/15/92
Wound Healing Agents                                             GB 202,298                           7/15/92
Wound Healing Agents                                             IT 202,298                           7/15/92
Wound Healing Agents                                             LU 202,298                           7/15/92
Wound Healing Agents                                             NL 202,298                           7/15/92
Wound Healing Agents                                             SE 202,298                           7/15/92
Wound Healing Agents                                             AT
Wound Healing Agents                                             DE
Wound Healing Agents                                             GB 2,248,777
Wound Healing Agents                                             8,603,122
Wound Healing Agents                                             NL
Wound Healing Agents                                             SE
Wound Healing Agents                                             CH 310,686                           4/12/89
Wound Healing Agents (Hair Growth)                               AU
Wound Healing Agents (Hair Growth)                               CA
Wound Healing Agents (Hair Growth)                               EP
Wound Healing Agents (Hair Growth)                               JP
Wound Healing Agents (Hair Growth)                               WO
Isolating Wound Capillary Endothelia Cells                       WO
Platelet Releasale for Efficacious Treatment of Tissue           AU 659,405                           9/05/95
Platelet Releasale for Efficacious Treatment of Tissue           CA
Platelet Releasale for Efficacious Treatment of Tissue           DE 417,818                           11/29/95
Platelet Releasale for Efficacious Treatment of Tissue           EP 417,818                           11/29/95
Platelet Rcleasale for Efficacious Treatment of Tissue           FR 9,011,398                         6/16/95
Platelet Releasale for Efficacious Treatment of Tissue           FR 417,818                           11/29/95
Platelet Releasale for Efficacious Treatment of Tissue           GB 417,818                           11/29/95
Platelet Releasale for Efficacious Treatment of Tissue           IL
Platelet Releasale for Efficacious Treatment of Tissue           IT 417, 818                          11/29/95
Platelet Releasale for Efficacious Treatment of Tissue           JP
Platelet Releasale for Efficacious Treatment of Tissue           KR
Platelet Releasale for Efficacious Treatment of Tissue           NL 417,818                           11/29/95
Platelet Releasale for Efficacious Treatment of Tissue           NO
Platelet Releasale for Efficacious Treatment of Tissue           NZ 235,326                           9/20/93
Platelet Releasale for Efficacious Treatment of Tissue                    US
Platelet Reteasale for Efficacious Treatment of Tissue           WO
Platelet Releasale for Efficacious Treatment of Tissue           ZA 907, 276                          5/27/92
Virus Free Platelet Derivative                                   IL
Virus Free Platelet Derivative                                   NZ
Virus Free Platelet Derivative                                   WO
Virus Free Platelet Derivative                                   ZA 911,652                           3/25/92
Coating a Prosthetic Surface w/ Mammalian Cells                  AU
Coating a Prosthetic Surface w/ Mammalian Cells                  CA
Coating a Prosthetic Surface w/ Mammalian Cells                  EP

<PAGE>

Coating a Prosthetic Surface w/ Mammalian Cells                  FI
Coating a Prosthetic Surface w/ Mammalian Cells                  IL 97,896                            8/27/95
Coating a Prosthetic Surface w/ Mammalian Cells                  NO
Coating a Prosthetic Surface w/ Mammalian Cells                  NZ
Coating a Prosthetic Surface w/ Mammalian Cells                  US
Coating a Prosthetic Surface w/ Mammalian Cells                  WO
Coating a Prosthetic Surface w/ Mammalian Cells                  ZA 912,882                           1/29/92
Method & Assay Improved Specific Binding Reactivity              AU
Method & Assay Improved Specific Binding Reactivity              CA
Method & Assay Improved Specific Binding Reactivity              EP
Method & Assay Improved Specific Binding Reactivity              JP
Method & Assay Improved Specific Binding Reactivity              NZ
</TABLE>

<TABLE>
<CAPTION>
                       PENDING FOREIGN PATENT APPLICATIONS
---------------------------------------------------------------------------------------------------
PATENT                                      SERIAL NO.                               FILING DATE
------                                      ----------                               -----------
<S>                                         <C>                                      <C>
                                            Canada (Pending) Appl. No. 2,165,418     6/17/94
                                            Japan (Pending) Appl. No. 4-505279       12/20/91
                                            Japan (Pending) Appl. No. 07-502990      6/17/94
</TABLE>

<PAGE>

                                                                      SCHEDULE 4

                    TRADEMARK, COPYRIGHT AND PATENT LICENSES

Trademark, Copyright and Patent Licenses with respect to which Grantor is a
licensor:

<TABLE>
<CAPTION>
                                                                                            Trademark, Copyright or
                                                                                            Patent Registration or
Grantor                         Licensee                      Date of License               Serial Number
-------                         --------                      ---------------               -----------------------
<S>                             <C>                           <C>                           <C>

</TABLE>

Trademarks, Copyrights and Patents with respect to which Grantor is a licensee:

<TABLE>
<CAPTION>
                                                                                            Trademark, Copyright or
                                                                                            Patent Registration or
Grantor                         Licensee                      Date of License               Serial Number
-------                         --------                      ---------------               -----------------------
<S>                             <C>                           <C>                           <C>
BTG USA Inc                     Cytomedix, Inc.               1/19/98                       All patients transferred to
                                                                                            Cytomedix, Inc. under
                                                                                            Asset Purchase
                                                                                            Agreement with Curative

University of Minnesota         Cytomedix, Inc.               12/31/86                      U.S. Patents No. 5,165,938

University of Minnesota         Cytomedix, Inc.               9/30/88                       U.S. Patents 4,957,742
                                                                                            and 5,178,883

</TABLE><PAGE>

                                                                   EXHIBIT 10.37

                          REGISTRATION RIGHTS AGREEMENT
                 (Series 2001 12% Convertible Promissory Notes)

     REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of April 23,
2001, by CYTOMEDIX, INC., a Delaware corporation, with its headquarters located
at Three Parkway North, Deerfield, Illinois 60015 (the "COMPANY"), for the
benefit of the purchasers of the Company's Series 2001 12% Convertible
Promissory Notes described on EXHIBIT "A" attached hereto and made a part hereof
(together with any assignee or transferee of all of their respective
registration rights hereunder, the "NOTE INVESTORS").

     WHEREAS:

     A. In connection with the Investors' acquisition of Securities Purchase
Agreement by and among the parties hereto of even date herewith (the "SECURITIES
PURCHASE AGREEMENT"), the Company has agreed, upon the terms and subject to the
conditions contained therein, to issue and sell to the Note Investors Series
2001 12% Convertible Promissory Notes in the aggregate principal amount of
$1,807,500 (the "NOTES") that are convertible into shares of the Company's
common stock (the "COMMON STOCK"), upon the terms and subject to the limitations
and conditions set forth in such Notes; and

     B. To induce the Note Investors to execute and deliver the Securities
Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the
"1933 ACT"), and applicable state securities laws;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and each of the Note
Investors hereby agree as follows:

     1.   DEFINITIONS.

          a.   As used in this Agreement, the following terms shall have the
following meanings:

               (i)  "INVESTORS" means the Note Investors and any
transferee or assignee who agrees to become bound by the provisions of this
Agreement in accordance with Section 9 hereof.

               (ii) "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing a Registration Statement or
Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
1933 Act or any successor rule providing for offering securities on a continuous
basis ("RULE 415"), and the declaration or ordering of effectiveness of such
Registration Statement by the United States Securities and Exchange Commission
(the "SEC").

<PAGE>

               (iii) "REGISTRABLE SECURITIES" means the Conversion Shares issued
or issuable upon conversion or otherwise pursuant to the Notes (as defined in
the Note)issued or issuable and shares of Common Stock issued or issuable in
respect of interest or in redemption of the Notes in accordance with the terms
thereof and any shares of Common Stock issued or issuable as a dividend on or in
exchange for or otherwise with respect to any of the foregoing, PROVIDED, that
any shares of Common Stock which have been sold pursuant to a Registration
Statement or which may be sold without registration or restriction (including
volume limitations) shall cease to be Registrable Securities hereunder.

               (iv) "REGISTRATION STATEMENT" means a registration statement of
the Company under the 1933 Act.

          b.   Capitalized terms used herein and not otherwise defined herein
shall have the respective meanings set forth in the Securities Purchase
Agreement or Note.

     2.   REGISTRATION.

          a.   MANDATORY REGISTRATION. The Company shall prepare, and, on or
prior to the date which is prior to the first anniversary of the Closing Date
(the "FILING DATE"), file with the SEC a Registration Statement on Form S-3 (or,
if Form S-3 is not then available, on such form of Registration Statement as is
then available to effect a registration of the Registrable Securities, subject
to the consent of the Note Investors, which consent will not be unreasonably
withheld) covering the resale of the Registrable Securities underlying the Notes
issued or issuable pursuant to the Securities Purchase Agreement, which
Registration Statement, to the extent allowable under the 1933 Act and the rules
and regulations promulgated thereunder (including Rule 416), shall state that
such Registration Statement also covers such indeterminate number of additional
shares of Common Stock as may become issuable upon conversion of the Notes (i)
to prevent dilution resulting from stock splits, stock dividends or similar
transactions or (ii) by reason of changes in the Conversion Price of the Notes
in accordance with the terms thereof. The number of shares of Common Stock
initially included in such Registration Statement shall be no less than two (2)
times the sum of the number of Conversion Shares that are then issuable upon
conversion of the Notes, without regard to any limitation on the Investor's
ability to convert the Notes. The Company acknowledges that the number of shares
initially included in the Registration Statement represents a good faith
estimate of the maximum number of shares issuable upon conversion of the Notes.

          b.   UNDERWRITTEN OFFERING. If any offering pursuant to a Registration
Statement pursuant to Section 2(a) hereof involves an underwritten offering, the
Investors who hold a majority in interest of the Registrable Securities subject
to such underwritten offering, with the consent of at least seventy-five percent
(75%) of the Note Investors, shall have the right to select one legal counsel
and, subject to the approval of the Company, not to be unreasonably withheld, an
investment banker or bankers and manager or managers to administer the offering.

<PAGE>

          c.   PIGGY-BACK REGISTRATIONS. If at any time prior to the expiration
of the Registration Period (as hereinafter defined) the Company shall determine
to file with the SEC a Registration Statement relating to an offering for its
own account or the account of others under the 1933 Act of any of its equity
securities (other than on Form S-4 or Form S-8 or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business, a corporate reorganization or other
transaction on Form S-4, a registration on any form that does not permit
secondary sales or equity securities issuable in connection with stock option or
other employee benefit plans), the Company shall send to each Investor who is
entitled to registration rights under this Section 2(c) written notice of such
determination and, if within ten (10) business days after the effective date of
such notice, such Investor shall so request in writing, the Company shall
include in such Registration Statement all or any part of the Registrable
Securities such Investor requests to be registered. No right to registration of
Registrable Securities under this Section 2(c) shall be construed to limit any
registration required under Section 2(a) hereof. If an offering in connection
with which an Investor is entitled to registration under this Section 2(c) is an
underwritten offering, then each Investor whose Registrable Securities are
included in such Registration Statement shall, unless otherwise agreed by the
Company, offer and sell such Registrable Securities in an underwritten offering
using the same underwriter or underwriters and, subject to the provisions of
this Agreement, on the same terms and conditions as other shares of Common Stock
included in such underwritten offering.

          d.   ELIGIBILITY FOR FORM SB-2 OR FORM S-1: CONVERSION TO FORM S-3.
The Company represents and warrants that it meets the requirements for the use
of Form SB-2 or Form S-1 for registration of the sale by the Note Investors and
any other Investors of the Registrable Securities. The Company agrees to file
all reports required to be filed by the Company with the SEC in a timely manner
so as to become eligible, and thereafter to maintain its eligibility, for the
use of Form S-3. Not later than ten (10) business days after the Company first
meets the registration eligibility and transaction requirements for the use of
Form S-3 (or any successor form) for registration of the offer and sale by the
Note Investors and any other Investors of Registrable Securities, the Company
shall file a Registration Statement on Form S-3 (or such successor form) with
respect to the Registrable Securities covered by the Registration Statement on
Form SB-2 or Form S-1, whichever is applicable, filed pursuant to Section 2(a)
(and include in such Registration Statement on Form S-3 the information required
by Rule 429 under the 1933 Act) or convert the Registration Statement on Form
SB-2 or Form S-1, whichever is applicable, filed pursuant to Section 2(a) to a
Form S-3 pursuant to Rule 429 under the 1933 Act and use its best efforts to
have such Registration Statement (or such amendment) declared effective as soon
as reasonably practicable thereafter.

     3.   OBLIGATIONS OF THE COMPANY. In connection with the registration of the
Registrable Securities, the Company shall have the following obligations:

          a.   The Company shall prepare promptly, and file with the SEC not
later than the Filing Date, a Registration Statement with respect to the number
of Registrable Securities provided in Section 2(a), and thereafter use its best
efforts to cause such Registration Statement relating to Registrable Securities
to become effective as soon as possible after such filing but in

<PAGE>

no event later than the first anniversary of the Closing Date), and keep the
Registration Statement effective pursuant to Rule 415 at all times until such
date as is the earlier of (i) the date on which all of the Registrable
Securities have been sold and (ii) the date on which the Registrable Securities
(in the opinion of counsel to the Note Investors) may be immediately sold to the
public without registration or restriction (including without limitation as to
volume by each holder thereof) under the 1933 Act (the "REGISTRATION PERIOD"),
which Registration Statement (including any amendments or supplements thereto
and prospectuses contained therein) shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein, or
necessary to make the statements therein, in light of the circumstances, under
which they were made, not misleading.

          b.   The Company shall prepare and file with the SEC such amendments
(including post-effective amendments) and supplements to the Registration
Statements and the prospectus used in connection with the Registration
Statements as may be necessary to keep the Registration Statements effective at
all times during the Registration Period, and, during such period, comply with
the provisions of the 1933 Act with respect to the disposition of all
Registrable Securities of the Company covered by the Registration Statements
until such time as all of such Registrable Securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in the Registration Statements. In the event the number of
shares available under a Registration Statement filed pursuant to this Agreement
is insufficient to cover all of the Registrable Securities issued or issuable
upon conversion of the Notes, the Company shall amend the Registration
Statement, or file a new Registration Statement (on the short form available
therefore, if applicable), or both, so as to cover all of the Registrable
Securities, in each case, as soon as practicable, but in any event within twenty
(20) business days after the necessity therefor arises (based on the market
price of the Common Stock and other relevant factors on which the Company
reasonably elects to rely). The Company shall use its best efforts to cause such
amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof. The provisions of Section 2(c) above
shall be applicable with respect to such obligation, with the one hundred twenty
(120) days running from the day after the date on which the Company reasonably
first determines (or reasonably should have determined) the need therefor.

          c.   The Company shall furnish to each Investor whose Registrable
Securities are included in a Registration Statement and its legal counsel (i)
promptly (but in no event more than three (3) business days) after the same is
prepared and publicly distributed, filed with the SEC, or received by the
Company, one copy of each Registration Statement and any amendment thereto, each
preliminary prospectus and prospectus and each amendment or supplement thereto,
and, in the case of the Registration Statement referred to in Section 2(a), each
letter written by or on behalf of the Company to the SEC or the staff of the
SEC, and each item of correspondence from the SEC or the staff of the SEC, in
each case relating to such Registration Statement (other than any portion of any
thereof which contains information for which the Company has sought confidential
treatment), and (ii) such number of copies of a prospectus, including a
preliminary prospectus, and all amendments and supplements thereto and such
other documents as such Investor may reasonably request in order to facilitate
the disposition of the Registrable Securities

<PAGE>

owned by such Investor in accordance with the Registration Statement. The
Company will promptly notify each Investor by facsimile of the effectiveness of
each Registration Statement or any post-effective amendment. The Company will
promptly respond to any and all comments received from the SEC (which comments
shall promptly be made available to the Investors upon request, unless they
relate to information for which the Company has sought confidential treatment),
with a view towards causing each Registration Statement or any amendment thereto
to be declared effective by the SEC as soon as practicable, shall promptly file
an acceleration request as soon as practicable (but in no event more than two
(2) business days) following the resolution or clearance of all SEC comments or,
if applicable, following notification by the SEC that any such Registration
Statement or any amendment thereto will not be subject to review and shall
promptly file with the SEC a final prospectus as soon as practicable (but in no
event more than two (2) business days) following receipt by the Company from the
SEC of an order declaring the Registration Statement effective.

          d.   The Company shall use reasonable efforts to (i) register and
qualify the Registrable Securities covered by the Registration Statements under
such other securities or "blue sky" laws of such jurisdictions in the United
States as the Investors who hold at least seventy-five percent (75%) of the
Registrable Securities being offered reasonably request, (ii) prepare and file
in those jurisdictions such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations and
qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the
Registrable Securities for sale in such jurisdictions; PROVIDED, HOWEVER, that
the Company shall not be required in connection therewith or as a condition
thereto to (a) qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(d), (b) subject itself
to general taxation in any such jurisdiction, (c) file a general consent to
service of process in any such jurisdiction, (d) provide any undertakings that
cause the Company undue expense or burden, or (e) make any change in its charter
or bylaws, which in each case the Board of Directors of the Company determines
to be contrary to the best interests of the Company and its stockholders.

          e.   In the event the requisite number of Investors (with the approval
of the requisite Note Investors) select underwriters for the offering, subject
to the Company's approval rights pursuant to Section 1(c), the Company shall
enter into and perform its obligations under an underwriting agreement, in usual
and customary form, including, without limitation, customary indemnification and
contribution obligations, with the underwriters of such offering.

          f.   As promptly as practicable after becoming aware of such event,
the Company shall notify each Investor of the happening of any event, of which
the Company has knowledge, as a result of which the prospectus included in any
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and use its best efforts promptly to
prepare a supplement or amendment to any Registration Statement to correct such
untrue statement or

<PAGE>

omission, and deliver such number of copies of such supplement or amendment to
each Investor as such Investor may reasonably request.

          g.   The Company shall use its reasonable best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of any
Registration Statement, and, if such an order is issued, to obtain the
withdrawal of such order at the earliest possible moment and to notify each
Investor who holds Registrable Securities being sold (or, in the event of an
underwritten offering, the managing underwriters) of the issuance of such order
and the resolution thereof.

          h.   The Company shall permit a single firm of counsel designated by
the Note Investors to review such Registration Statement and all amendments and
supplements thereto (as well as all requests for acceleration or effectiveness
thereof) a reasonable period of time prior to their filing with the SEC, and not
file any document in a form to which such counsel reasonably objects and will
not request acceleration of such Registration Statement without prior notice to
such counsel. The sections of such Registration Statement covering information
with respect to the Investors, the Investor's beneficial ownership of securities
of the Company or the Investors intended method of disposition of Registrable
Securities shall conform to the information provided to the Company by each of
the Investors, except to the extent violative of applicable law.

          i.   The Company shall hold in confidence and not make any disclosure
of information concerning an Investor provided to the Company unless (i)
disclosure of such information is necessary to comply with federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other order
from a court or governmental body of competent jurisdiction, or (iv) such
information has been made generally available to the public other than by
disclosure in violation of this or any other agreement. The Company agrees that
it shall, upon learning that disclosure of such information concerning an
Investor is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to such Investor prior
to making such disclosure, and allow the Investor, at its expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
for, such information.

          j.   The Company shall (i) cause all the Registrable Securities
covered by the Registration Statement to be listed on each national securities
exchange on which securities of the same class or series issued by the Company
are then listed, if any, if the listing of such Registrable Securities is then
permitted under the rules of such exchange, or (ii) to the extent the securities
of the same class or series are not then listed on a national securities
exchange, secure the designation and quotation, of all the Registrable
Securities covered by the Registration Statement on Nasdaq or, if not eligible
for Nasdaq, on Nasdaq SmallCap or, if not eligible for Nasdaq or Nasdaq
SmallCap, on the OTC BB and, without limiting the generality of the foregoing,
to arrange for at least two market makers to register with the National
Association of Securities Dealers, Inc. ("NASD") as such with respect to such
Registrable Securities.

<PAGE>

          k.   The Company shall provide a transfer agent and registrar, which
may be a single entity, for the Registrable Securities not later than the
effective date of the Registration Statement.

          l.   At the request of the holders of at least seventy-five percent
(75%) of the Registrable Securities, the Company shall prepare and file with the
SEC such amendments (including post-effective amendments) and supplements to a
Registration Statement and any prospectus used in connection with the
Registration Statement as may be necessary in order to change the plan of
distribution set forth in such Registration Statement.

     4.   OBLIGATIONS OF THE INVESTORS. In connection with the registration of
the Registrable Securities, the Investors shall have the following obligations:

          a.   It shall be a condition precedent to the obligations of the
Company to complete the registration pursuant to this Agreement with respect to
the Registrable Securities of a particular Investor that such Investor shall
furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request. At least three (3)
business days prior to the first anticipated filing date of the Registration
Statement, the Company shall notify each Investor of the information the Company
requires from each such Investor.

          b.   Each Investor, by such Investor's acceptance of the Registrable
Securities, agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of the Registration
Statements hereunder, unless such Investor has notified the Company in writing
of such Investor's election to exclude all of such Investor's Registrable
Securities from the Registration Statements, except to the extent any such
requested information is required by the SEC or by applicable law to be included
in any such Registration Statement.

          c.   In the event Investors (with the approval of the Note Investors
and the Company in accordance with Section 1(c)) determine to engage the
services of an underwriter, each Investor agrees to enter into and perform such
Investor's obligations under an underwriting agreement, in usual and customary
form, including, without limitation, customary indemnification and contribution
obligations, with the managing underwriter of such offering and take such other
actions as are reasonably required in order to expedite or facilitate the
disposition of the Registrable Securities, unless such Investor has notified the
Company in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from such Registration Statement.

          d.   Each Investor agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3(g),
such Investor will immediately discontinue disposition of Registrable Securities
pursuant to the Registration Statement covering

<PAGE>

such Registrable Securities until such Investor's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(g) and, if so
directed by the Company, such Investor shall deliver to the Company (at the
expense of the Company) or destroy (and deliver to the Company a certificate of
destruction) all copies in such Investor's possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice.

          e.   No Investor may participate in any underwritten registration
hereunder unless such Investor (i) agrees to sell such Investor's Registrable
Securities on the basis provided in any underwriting arrangements in usual and
customary form entered into by the Company, (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements, and (iii) agrees to pay its pro rata share of all underwriting
discounts and commissions and any expenses in excess of those payable by the
Company pursuant to Section 5 below.

     5.   EXPENSES OF REGISTRATION. All reasonable expenses, other than
underwriting discounts and commissions and stock transfer taxes, if any,
incurred in connection with registrations, filings or qualifications pursuant to
Sections 2 and 3, including, without limitation, all registration, listing and
qualification fees, printers and accounting fees, the fees and disbursements of
counsel for the Company, and the reasonable fees and disbursements of one
counsel selected by the Note Investors pursuant to Sections 2(b) and 3(h) hereof
shall be borne by the Company.

     6.   INDEMNIFICATION. In the event any Registrable Securities are included
in a Registration Statement under this Agreement:

          a.   To the extent permitted by law, the Company will indemnify, hold
harmless and defend (i) each Investor who holds such Registrable Securities,
(ii) the directors, officers, partners and each person who controls any Investor
within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as
amended (the "1934 ACT"), if any, (iii) any underwriter (as defined in the 1933
Act) for the Investors, and (iv) the directors, officers, partners, employees
and each person who controls any such underwriter within the meaning of the 1933
Act or the 1934 Act, if any (each, an "INDEMNIFIED PERSON"), against any joint
or several losses, claims, damages, liabilities or expenses (collectively,
together with actions, proceedings or inquiries by any regulatory or
self-regulatory organization, whether commenced or threatened, in respect
thereof, "CLAIMS") to which any of them may become subject insofar as such
Claims arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement or the omission
or alleged omission to state therein a material fact required to be stated or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; (ii) any untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus if
used prior to the effective date of such Registration Statement, or contained in
the final prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission or alleged
omission to state therein any material fact necessary to make the

<PAGE>

statements made therein, in light of the circumstances under which the
statements therein were made, not misleading; or (iii) any violation or alleged
violation by the Company of the 1933 Act, the 1934 Act, any other law,
including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable
Securities (the matters in the foregoing clauses (i) through (iii) being,
collectively, "VIOLATIONS"). Subject to the restrictions set forth in Section
6(c) with respect to the number of legal counsel, the Company shall reimburse
the Indemnified Person for any reasonable legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such
Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim arising out of or based upon a Violation which occurs in reliance upon
and in conformity with information furnished in writing to the Company by any
Indemnified Person or underwriter for such Indemnified Person expressly for use
in connection with the preparation of such Registration Statement or any such
amendment thereof or supplement thereto, if such prospectus was timely made
available by the Company pursuant to Section 3(c) hereof; (ii) shall not apply
to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld; (iii) with respect to any preliminary prospectus, shall
not inure to the benefit of any Indemnified Person if the untrue statement or
omission of material fact contained in the preliminary prospectus was corrected
on a timely basis in the prospectus, as then amended or supplemented, such
corrected prospectus was timely made available by the Company pursuant to
Section 3(c) hereof, and the Indemnified Person was promptly advised in writing
not to use the incorrect prospectus prior to the use giving rise to a Violation
and such Indemnified Person, notwithstanding such advice, used it, and (iv) in
the case of gross negligence or willful misconduct by such Investor. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the transfer of
the Registrable Securities by the Investors pursuant to Section 9.

          b.   In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees severally and not jointly
to indemnify, hold harmless and defend, to the same extent and in the same
manner set forth in Section 6(a), the Company, each of its directors, each of
its officers who signs the Registration Statement, each person, if any, who
controls the Company within the meaning of the 1933 Act or the 1934 Act, any
underwriter and any other stockholder selling securities pursuant to the
Registration Statement or any of its directors or officers or any person who
controls such stockholder or underwriter within the meaning of the 1933 Act or
the 1934 Act (collectively and together with an Indemnified Person, an
"INDEMNIFIED PARTY"), against any Claim to which any of them may become subject,
under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim arises out
of or is based upon any Violation by such Investor, in each case to the extent
(and only to the extent) that such Violation occurs in reliance upon and in
conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement (or prospectus
forming a part thereof); and subject to Section 6(c) such Investor will
reimburse any legal or other expenses incurred by them in connection with
investigating or defending any such Claim; PROVIDED, HOWEVER, that the indemnity
agreement contained in this Section 6(b) shall not apply (i) to amounts paid in
settlement of any Claim if such settlement is effected without the prior

<PAGE>

written consent of such Investor, which consent shall not be unreasonably
withheld and (ii) in the case of gross negligence or willful misconduct by the
Company; PROVIDED, FURTHER, HOWEVER, that the Investor shall be liable under
this Agreement (including this Section 6(b) and Section 7) for only that amount
as does not exceed the net proceeds to such Investor as a result of the sale of
Registrable Securities pursuant to such Registration Statement. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(b) with respect to any preliminary prospectus shall
not inure to the benefit of any Indemnified Party if the untrue statement or
omission of material fact contained in the preliminary prospectus was corrected
on a timely basis in the prospectus, as then amended or supplemented.

          c.   Promptly after receipt by an Indemnified Person or Indemnified
Party under this Section 6 of notice of the commencement of any action
(including any governmental action), such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any
indemnifying party under this Section 6, deliver to the indemnifying party a
written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; PROVIDED, HOWEVER, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses to be
paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The indemnifying party shall pay for only one
separate legal counsel for the Indemnified Persons or the Indemnified Parties,
as applicable, and such legal counsel shall be selected by Investors holding at
least seventy-five percent (75%) of the Registrable Securities included in the
Registration Statement to which the Claim relates (with the approval of at least
seventy-five percent (75%) of the Note Investors), if the Investors are entitled
to indemnification hereunder, or the Company, if the Company is entitled to
indemnification hereunder, as applicable. The failure to deliver written notice
to the indemnifying party within a reasonable time of the commencement of any
such action shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6, except to the
extent that the indemnifying party is actually prejudiced in its ability to
defend such action. The indemnification required by this Section 6 shall be made
by periodic payments of the amount thereof during the course of the
investigation or defense, as such expense, loss, damage or liability is incurred
and is due and payable.

     7.   CONTRIBUTION. To the extent any indemnification by an indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable under Section 6 to the fullest

<PAGE>

extent permitted by law; PROVIDED, HOWEVER, that (i) no contribution shall be
made under circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in Section 6, (ii) no seller
of Registrable Securities guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from
any seller of Registrable Securities who was not guilty of such fraudulent
misrepresentation, and (iii) contribution (together with any indemnification or
other obligations under this Agreement) by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities.

     8.   REPORTS UNDER THE 1934 ACT. With a view to making available to the
Investors the benefits of Rule 144 promulgated under the 1933 Act or any other
similar rule or regulation of the SEC that may at any time permit the investors
to sell Registrable Securities to the public without registration ("RULE 144"),
the Company agrees to:

          a.   make and keep public information available, as those terms are
understood and defined in Rule 144;

          b.   file with the SEC in a timely manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company remains subject to such requirements (it being understood that
nothing herein shall limit the Company's obligations under Section 4(c) of the
Securities Purchase Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

          c.   furnish to each Investor so long as such Investor owns
Registrable Securities, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting requirements of Rule 144, the
1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably requested to
permit the Investors to sell such securities pursuant to Rule 144 without
registration.

     9.   ASSIGNMENT OF REGISTRATION RIGHTS. The rights under this Agreement
shall be automatically assignable by the Investors to any transferee of
Registrable Securities having a value of at least $50,000 if: (i) the Investor
agrees in writing with the transferee or assignee to assign such rights, and a
copy of such agreement is furnished to the Company within a reasonable time
after such assignment, (ii) the Company is, within a reasonable time after such
transfer or assignment, furnished with written notice of (a) the name and
address of such transferee or assignee and the circumstances in which such
Registrable Securities are being transferred, and (b) the securities with
respect to which such registration rights are being transferred or assigned,
(iii) following such transfer or assignment, the further disposition of such
securities by the transferee or assignee is restricted under the 1933 Act and
applicable state securities laws, (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this sentence, the
transferee or assignee agrees in writing with the Company to be bound by all of
the provisions contained herein, (v) such transfer shall have been made in
accordance with the applicable requirements of the Securities Purchase Agreement
and

<PAGE>

applicable securities laws, and (vi) such transferee shall be an "ACCREDITED
INVESTOR" as that term defined in Rule 501 of Regulation D promulgated under the
1933 Act.

     10.  AMENDMENT OF REGISTRATION RIGHTS. Provisions of this Agreement may be
amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with
written consent of the Company, each of the Note Investors (to the extent such
Note Investor still owns Registrable Securities) and Investors who hold at least
seventy-five percent (75%) of the Registrable Securities. Any amendment or
waiver effected in accordance with this Section 10 shall be binding upon each
Investor and the Company.

     11.  MISCELLANEOUS.

          a.   A person or entity is deemed to be a holder of Registrable
Securities whenever such person or entity owns of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more persons or entities with respect to the same
Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from the registered owner of such Registrable
Securities.

          b.   Any notices required or permitted to be given under the terms
hereof shall be sent by certified or registered mail (return receipt requested)
or delivered personally or by courier (including a recognized overnight delivery
service) or by facsimile and shall be effective five days after being placed in
the mail, if mailed by regular United States mail, or upon receipt, if delivered
personally or by courier (including a recognized overnight delivery service) or
by facsimile, in each case addressed to a party. The addresses for such
communications shall be:

                            If to the Company:

                            Cytomedix, Inc.
                            Three Parkway North
                            Deerfield, Illinois 60015
                            Attention:  President and Chief Executive Officer
                            Telephone:     847-405-7800
                            Facsimile:     847-405-7801

If to an Investor: to the address set forth immediately below such Investor's
name on the signature pages to the Securities Purchase Agreement.

          c.   Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

          d.   THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN

<PAGE>

SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES
HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL
COURTS LOCATED IN CHICAGO, ILLINOIS WITH RESPECT TO ANY DISPUTE ARISING UNDER
THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.
BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST
CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON
THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT ANY
PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. ALL PARTIES
AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH
JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY
DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY IN
CONNECTION WITH SUCH DISPUTE.

          e.   In the event that any provision of this Agreement is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any
provision hereof which may prove invalid or unenforceable under any law shall
not affect the validity or enforceability of any other provision hereof.

          f.   This Agreement, the Securities Purchase Agreement (including all
schedules and exhibits thereto) and the Loan Documents (as defined in the Notes)
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement and the Securities Purchase Agreement supersede all
prior agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.

          g.   Subject to the requirements of Section 9 hereof, this Agreement
shall be binding upon and inure to the benefit of the parties and their
successors and assigns.

          h.   The headings in this Agreement are for convenience of reference
only and shall not form part of, or affect the interpretation of, this
Agreement.

          i.   This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original but all of which shall constitute one and
the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party. This Agreement, once executed by
a party, may be delivered to the other party

<PAGE>

hereto by facsimile transmission of a copy of this Agreement bearing the
signature of the party so delivering this Agreement.

          j.   Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

          k.   Except as otherwise provided herein, all consents and other
determinations to be made by the Investors pursuant to this Agreement shall be
made by Investors at least seventy-five percent (75%) of the Registrable
Securities, determined as if all of the Notes then outstanding have been
converted into Registrable Securities.

          l.   The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to each Investor by vitiating the intent
and purpose of the transactions contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for breach of its obligations under this
Agreement will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of any of the provisions under this Agreement, that each
Investor shall be entitled, in addition to all other available remedies in law
or in equity, and in addition to the penalties assessable herein, to an
injunction or injunctions restraining, preventing or curing any breach of this
Agreement and to enforce specifically the terms and provisions hereof, without
the necessity of showing economic loss and without any bond or other security
being required.

          m.   The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed for the benefit of the Note Investors as of the date first above
written.

                                 CYTOMEDIX, INC.

                                  By: /s/ JAMES A. COUR
                                      ------------------------------------

                                  Title: Chief Executive Officer
                                         ------------------------------------

<PAGE>

                                   EXHIBIT "A"

                    List of Note Investors and Beneficiaries

<TABLE>
<CAPTION>
NAME                                                   PRINCIPAL AMOUNT OF NOTES
----                                                   -------------------------
<S>                                                    <C>

</TABLE>

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