Document:

PURCHASE
AGREEMENT

    

    PURCHASE AGREEMENT (the
“Agreement”), dated as of October 6, 2010, by and between CYTOMEDIX, INC., a Delaware
corporation, (the “Company”), and LINCOLN PARK CAPITAL FUND,
LLC, an Illinois limited liability company (the “Investor”).

    

    WHEREAS:

     

    Subject
to the terms and conditions set forth in this Agreement, the Company wishes to
sell to the Investor, and the Investor wishes to buy from the Company, up to One
Million Five Hundred Thousand Dollars ($1,500,000) of  the Company's
common stock, $.0001 par value per share (the “Common Stock”). The shares of
Common Stock to be purchased hereunder are referred to herein as the “Purchase
Shares”

     

    NOW
THEREFORE, the Company and the Investor hereby agree as follows:

     

    1. 
          CERTAIN
DEFINITIONS.

    

    For
purposes of this Agreement, the following terms shall have the following
meanings:

    

    (a)           “Accelerated
Purchase Notice” shall mean an irrevocable written notice from the Company to
the Investor directing the Investor to buy such Accelerated Purchase Amount in
Purchase Shares as specified by the Company therein on the Purchase
Date.

    

    (b)           
“Available Amount” means initially One Million Five Hundred Thousand Dollars
($1,500,000) in the aggregate which amount shall be reduced by the Purchase
Amount each time the Investor purchases shares of Common Stock pursuant to
Section 2 hereof.

    

    (c)           “Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the
relief of debtors.

    

    (d)           “Business
Day” means any day on which the Principal Market is open for trading including
any day on which the Principal Market is open for trading for a period of time
less than the customary time.

    

    (e)           “Closing
Sale Price” means, for any security as of any date, the last closing sale price
for such security on the Principal Market as reported by the Principal Market,
or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing sale price of such security on the
principal securities exchange or trading market where such security is listed or
traded as reported by the Principal Market.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f)           “Confidential
Information” means any information disclosed by either party to the other party,
either directly or indirectly, in writing, orally or by inspection of tangible
objects (including, without limitation, documents, prototypes, samples, plant
and equipment), which is designated as "Confidential," "Proprietary" or some
similar designation. Information communicated orally shall be considered
Confidential Information if such information is confirmed in writing as being
Confidential Information within ten (10) Business Days after the initial
disclosure. Confidential Information may also include information disclosed to a
disclosing party by third parties. Confidential Information shall not, however,
include any information which (i) was publicly known and made generally
available in the public domain prior to the time of disclosure by the disclosing
party; (ii) becomes publicly known and made generally available after disclosure
by the disclosing party to the receiving party through no action or inaction of
the receiving party; (iii) is already in the possession of the receiving party
at the time of disclosure by the disclosing party as shown by the receiving
party’s files and records immediately prior to the time of disclosure; (iv) is
obtained by the receiving party from a third party without a breach of such
third party’s obligations of confidentiality; (v) is independently developed by
the receiving party without use of or reference to the disclosing party’s
Confidential Information, as shown by documents and other competent evidence in
the receiving party’s possession; or (vi) is required by law to be disclosed by
the receiving party, provided that the receiving party gives the disclosing
party prompt written notice of such requirement prior to such disclosure and
assistance in obtaining an order protecting the information from public
disclosure.

    

    (g)           “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

    

    (h)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

    

    (i)           “Maturity
Date” means the date that is 500 Business Days (25 Monthly Periods) from the
Commencement Date.

    

    (j)           “Monthly
Period” means each successive 20 Business Day period commencing with the
Commencement Date.

    

    (k)           “Person”
means an individual or entity including but not limited to any limited liability
company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency
thereof.

    

    (l)           “Principal
Market” means the NYSE Amex; provided however, that in the event the Company’s
Common Stock is ever listed or traded on the Nasdaq Global Market, the Nasdaq
Global Select Market, the Nasdaq Capital Market, the New York Stock Exchange, or
the OTC Bulletin Board, then the “Principal Market” shall mean such other market
or exchange on which the Company’s Common Stock is then listed or
traded.

    

    (m)           “Purchase
Amount” means, with respect to any particular purchase made hereunder, the
portion of the Available Amount to be purchased by the Investor pursuant to
Section 2 hereof.

    

    (n)           “Purchase
Date” means with respect to any particular purchase made hereunder, the Business
Day on which the Investor receives by 10:00 a.m. eastern time of such Business
Day a valid Regular Purchase Notice or a valid Accelerated Purchase Notice that
the Investor is to buy Purchase Shares pursuant to Section 2
hereof.

    

    (o)           
“Purchase Price” means the lower of the (A) the lowest Sale Price of the Common
Stock on the Purchase Date and (B) the arithmetic average of the three (3)
lowest Closing Sale Prices for the Common Stock during the twelve (12)
consecutive Business Days ending on the Business Day immediately preceding such
Purchase Date (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar
transaction).

    

    (p)           “Regular
Purchase Notice” shall mean an irrevocable written notice from the Company to
the Investor directing the Investor to buy such Regular Purchase Amount in
Purchase Shares as specified by the Company therein on the Purchase
Date.

    
      
         

      

      
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    (q)           “Sale
Price” means any sale price for the shares of Common Stock on the Principal
Market as reported by the Principal Market.

    

    (r)           “SEC”
means the United States Securities and Exchange Commission.

    

    (s)           “Securities
Act” means the Securities Act of 1933, as amended.

    

    (t)        
  “Transfer Agent” means the transfer agent of the Company as set
forth in Section 11(f) hereof or such other person who is then serving as the
transfer agent for the Company in respect of the Common Stock.

    

    2.  PURCHASE OF COMMON
STOCK.

     

    Subject
to the terms and conditions set forth in this Agreement, the Company has the
right to sell to the Investor, and the Investor has the obligation to purchase
from the Company, Purchase Shares as follows:

     

    (a)              Commencement of Regular
Sales of Common Stock.  Upon the satisfaction of the conditions set
forth in Sections 7 and 8 hereof (the “Commencement” and the date of
satisfaction of such conditions the “Commencement Date”) the Company shall have
the right but not the obligation to direct the Investor by its delivery to the
Investor of a Regular Purchase Notice from time to time to buy up to One Hundred
Fifty Thousand (150,000) Purchase Shares (each such purchase a “Regular
Purchase”) at the Purchase Price on the Purchase Date.  The Company may
deliver multiple Regular Purchase Notices to the Investor so long as at least
one (1) Business Day has passed since the most recent Regular Purchase was
completed.

    

    (b)              Accelerated
Purchases.   At any time on or after the Commencement Date, the
Company shall also have the right to direct the Investor to buy Purchase Shares
(each such purchase an “Accelerated Purchase”) in the amounts specified in this
Section 2(b) per Accelerated Purchase Notice at the Accelerated Purchase Price
on the Purchase Date by delivering to the Investor Accelerated Purchase Notices
as follows:  the Accelerated Purchase Amount may be up to One Hundred
Thousand Purchase Shares (100,000) per Accelerated Purchase Notice provided that
the Closing Sale Price of the Common Stock must not be below $0.75 per share
(subject to equitable adjustment for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction) on the Purchase
Date.  With respect to each such Accelerated Purchase, the Company must
deliver the Purchase Shares before 1:00 p.m. eastern time on the Business Day
following the Purchase Date.  As used herein, the term “Accelerated
Purchase Price” shall mean the lesser of (i) the lowest Sale Price of the Common
Stock on the Purchase Date or (ii) the lowest Purchase Price during the previous
ten (10) Business Days prior to the date that the valid Accelerated Purchase
Notice was received by the Investor.  However, if on any Purchase Date the
Closing Sale Price of the Common Stock is below the applicable Accelerated
Purchase threshold price, such Accelerated Purchase shall be void and the
Investor’s obligations to buy Purchase Shares in respect of that Accelerated
Purchase Notice shall be terminated.  Thereafter, the Company shall again
have the right to submit an Accelerated Purchase Notice as set forth herein by
delivery of a new Accelerated Purchase Notice only if the Closing Sale Price of
the Common Stock is at or above the applicable Accelerated Purchase Amount
threshold price on the date of the delivery of the Accelerated Purchase
Notice.  The Company may deliver Accelerated Purchase Notices to the
Investor every Business Day.

    
      
         

      

      
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    (c)               Payment for Purchase
Shares.   The Investor shall pay to the Company an amount equal
to the Purchase Amount multiplied by the Purchase Price with respect to such
Purchase Shares as full payment for such Purchase Shares via wire transfer of
immediately available funds on the same Business Day that the Investor receives
such Purchase Shares if they are received by the Investor before 1:00 p.m.
eastern time or if received by the Investor after 1:00 p.m. eastern time, the
next Business Day. The Company shall not issue any fraction of a share of Common
Stock upon any purchase. If the issuance would result in the issuance of a
fraction of a share of Common Stock, the Company shall round such fraction of a
share of Common Stock up or down to the nearest whole share. All payments made
under this Agreement shall be made in lawful money of the United States of
America or wire transfer of immediately available funds to such account as the
Company may from time to time designate by written notice in accordance with the
provisions of this Agreement. Whenever any amount expressed to be due by the
terms of this Agreement is due on any day that is not a Business Day, the same
shall instead be due on the next succeeding day that is a Business
Day.

     

    (d)              Purchase Price Floor. 
 The Company and the Investor shall not effect any sales and
purchases under this Agreement on any Purchase Date where the Purchase Price for
any purchases of Purchase Shares would be less than the Floor Price. “Floor
Price” means $0.30 per share of the Company’s Common Stock, which shall be
appropriately adjusted for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction.

     

    (e)              Compliance with Principal
Market Rules.  The Company shall not sell any shares of Common Stock
under this Agreement and the Investor shall not have the right or the obligation
to purchase shares of Common Stock under this Agreement to the extent that after
giving effect to such purchase the "Exchange Cap" shall be deemed to be reached
and, therefore, in the aggregate with any other issuance(s) by the Company, to
be in violation of the rules and regulations of the Principal Market.  The
"Exchange Cap" shall be deemed to have been reached if, at any time prior to the
shareholders of the Company approving the transaction contemplated by this
Agreement and additional issuances of Common Stock in excess of the Exchange
Cap, upon a purchase under this Agreement, the Purchase Shares and the
Commitment Shares issuable pursuant to such purchase would, together with all
Purchase Shares and Commitment Shares or any other issuances previously issued
by the Company, exceed 7,542,928 shares of Common Stock (or 19.99% of the
37,733,506 outstanding shares of Common Stock as of the date of this
Agreement).  Upon the Company obtaining requisite shareholder approval to
issue and sell any shares in excess of the Exchange Cap (or if the Company shall
not be obligated to obtain shareholder approval pursuant to the rules of the
principal market on which the securities are traded), the number of shares which
may be issued hereunder will be increased so that the total number of shares
issuable hereunder is at least that number of Purchase Shares reserved in
Section 4(d) of this Agreement.  The Company hereby covenants and agrees
that in the event it is required to get such shareholder approval in compliance
with the rules or regulations of the Principal Market on which the Company's
securities are then listed it shall use its
reasonable best efforts to get requisite shareholder approval for such
additional Purchase Shares and the entire transaction contained herein within
one hundred twenty (120) days from the date hereof.   The Company
shall not be required to issue any Purchase Shares under this Agreement
whatsoever if such issuance would breach the Company's obligations under the
rules or regulations of the Principal Market on which the Company’s securities
are then listed for trading and with which rules or regulations the Company is
then required to comply.

     

    3. 
         INVESTOR'S REPRESENTATIONS
AND WARRANTIES.

    

    The
Investor represents and warrants to the Company that as of the date hereof and
as of the Commencement Date:

    
      
         

      

      
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    (a)           Organization;
Authority.  Investor is an entity duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization with
full right, corporate or partnership power and authority to enter into and to
consummate the transactions contemplated by this Agreement and otherwise to
carry out its obligations hereunder and thereunder. The execution and delivery
of this Agreement and performance by such Purchaser of the transactions
contemplated by this Agreement have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as
applicable, on the part of Investor.  This Purchase Agreement and all
documents, agreements, consents, notices, and other instruments (collectively,
the “Transaction Documents”) to which it is a party has been duly executed by
Investor, and when delivered by Investor in accordance with the terms hereof,
will constitute the valid and legally binding obligation of Investor,
enforceable against it in accordance with its terms, except: (i) as limited by
general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     

    (b)           Own Account. 
Investor is acquiring the Purchase Shares as principal for its own account and
not with a view to or for distributing or reselling such Purchase Shares or any
part thereof in violation of the Securities Act or any applicable state
securities law, has no present intention of distributing any of such Purchase
Shares in violation of the Securities Act or any applicable state securities law
and has no direct or indirect arrangement or understandings with any other
persons to distribute or regarding the distribution of such Purchase Shares in
violation of the Securities Act or any applicable state securities law (this
representation and warranty not limiting Investor’s right to sell the Purchase
Shares pursuant to the Shelf Registration Statement or otherwise in compliance
with applicable federal and state securities laws).  Investor is acquiring
the Purchase Shares hereunder in the ordinary course of its
business.

     

    (c)           Investor
Status.  At the time Investor was or is offered the Purchase Shares,
it was, and as of the date hereof it is, and it will be either: (i) an
“accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or
(a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as
defined in Rule 144A(a) under the Securities Act.  Investor is not required
to be registered as a broker-dealer under Section 15 of the Exchange
Act. 

     

    (d)           Experience of
Investor.  Investor, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Purchase Shares, and has so evaluated the
merits and risks of such investment.  Investor is able to bear the economic
risk of an investment in the Purchase Shares and, at the present time, is able
to afford a complete loss of such investment.

     

    (e)           Certain Transactions and
Confidentiality. 
Other than consummating the transactions contemplated hereunder, Investor has
not, nor has any Person acting on behalf of or pursuant to any understanding
with Investor, directly or indirectly executed any purchases or sales, including
Short Sales, of the securities of the Company during the period commencing
as of the time that Investor first received a term sheet (written or oral) as of
the Company or any other Person representing the Company setting forth the
material terms of the transactions contemplated hereunder and ending immediately
prior to the execution hereof.  Other than to other Persons party to this
Agreement, Investor has maintained the confidentiality of all disclosures made
to it in connection with this transaction (including the existence and terms of
this transaction).

    

    (f)           Validity;
Enforcement.  This Agreement has been duly and validly authorized,
executed and delivered on behalf of the Investor and is a valid and binding
agreement of the Investor enforceable against the Investor in accordance with
its terms, subject as to enforceability to general principles of equity and to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of
applicable creditors' rights and remedies.

    
      
         

      

      
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    (g)           No Short
Selling.  The Investor represents and warrants to the Company that
at no time has any of the Investor, its agents, representatives or affiliates
engaged in or effected, in any manner whatsoever, directly or indirectly, any
(i) "short sale" (as such term is defined in Section 242.200 of Regulation SHO
of the Exchange Act) of the Common Stock or (ii) hedging transaction, which
establishes a net short position with respect to the Common Stock.

    

    The
Company acknowledges and agrees that the representations contained in this
Section 3 shall not modify, amend or affect Investor’s right to rely on the
Company’s representations and warranties contained in this Agreement or any
representations and warranties contained in any other Transaction Document or
any other document or instrument executed and/or delivered in connection with
this Agreement or the consummation of the transaction contemplated
hereby.

    

    4. 
         REPRESENTATIONS AND
WARRANTIES OF THE COMPANY.

    

    The
Company represents and warrants to the Investor that as of the date hereof and
as of the Commencement Date:

    

    (a)           Organization and
Qualification. The Company and each of the Subsidiaries (which for
purposes of this Agreement means any entity in which the Company, directly or
indirectly, owns 50% or more of the voting stock or capital stock or other
similar equity interests) is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation or organization, with the requisite corporate power and authority
to own and use its properties and assets and to carry on its business as
currently conducted.  Neither the Company nor any Subsidiary is in
violation nor default of any of the provisions of its respective certificate or
articles of incorporation, bylaws or other organizational or charter
documents.  Each of the Company and the Subsidiaries is duly qualified to
conduct business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, could not
have or reasonably be expected to result in: (i) a material adverse effect on
the legality, validity or enforceability of any Transaction Document; (ii) a
material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole, provided, however, that a Company Material
Adverse Effect shall not include facts, circumstances, events, changes, effects
or occurrences (a) generally affecting the economy or the financial, debt,
credit or securities markets in the United States, including as a result of
changes in geopolitical conditions, (b) generally affecting any of the
industries in which the Company or the Company Subsidiaries operate, (c)
resulting from the announcement of this Agreement, (d) resulting from changes in
any applicable laws or regulations or applicable accounting regulations or
principles or interpretations thereof, (e) resulting from any actions taken
pursuant to or in accordance with the terms of this Agreement, (f) resulting
from any outbreak or escalation of hostilities or war or any act of terrorism,
(g) resulting from any failure by the Company to meet its internal or published
projections, budgets, plans or forecasts of its revenues, earnings or other
financial performance or results of operations, in and of itself (it being
understood that the facts or occurrences giving rise or contributing to such
failure that are not otherwise excluded from the definition of a “Company
Material Adverse Effect” may be taken into account in determining whether there
has been a Company Material Adverse Effect), or (h) resulting from a decline in
the price of the Company Common Stock on its Principal Market (it being
understood that the facts or occurrences giving rise or contributing to such
decline that are not otherwise excluded from the definition of a “Company
Material Adverse Effect” may be taken into account in determining whether there
has been a Company Material Adverse Effect); or (iii) a material adverse effect
on the Company’s ability to perform in any material respect on a timely basis
its obligations under any Transaction Document (any of (i), (ii) or (iii), a
“Material Adverse
Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification.  The Company has no Subsidiaries
except as set forth on Schedule
4(a).

    
      
         

      

      
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    (b)           Authorization; Enforcement;
Validity.  (i) The Company has the requisite corporate power and
authority to enter into and perform its obligations under this Agreement, the
Registration Rights Agreement  and each of the other agreements
entered into by the parties on the Commencement Date and attached hereto as
exhibits to this Agreement (collectively, the “Transaction Documents”), and to
issue the Securities in accordance with the terms hereof and thereof, (ii) the
execution and delivery of the Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby,
including without limitation, the issuance of the Commitment Shares and the
reservation for issuance and the issuance of the Purchase Shares issuable under
this Agreement, have been duly authorized by the Company's Board of Directors
and no further consent or authorization is required by the Company, its Board of
Directors or its shareholders, (iii) this Agreement has been, and each other
Transaction Document shall be on the Commencement Date, duly executed and
delivered by the Company and (iv) this Agreement constitutes, and each other
Transaction Document upon its execution on behalf of the Company, shall
constitute, the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors' rights and remedies. 
The Board of Directors of the Company has approved the resolutions (the “Signing
Resolutions”) substantially in the form as set forth as Exhibit C attached
hereto to authorize this Agreement and the transactions contemplated
hereby.  The Signing Resolutions are valid, in full force and effect and
have not been modified or supplemented in any respect.  The Company has
delivered to the Investor a true and correct copy of such resolutions adopting
the Signing Resolutions executed by all of the members of the Board of Directors
of the Company.  Except as set forth in this Agreement, no other approvals
or consents of the Company’s Board of Directors and/or shareholders is necessary
under applicable laws and the Company’s Certificate of Incorporation and/or
Bylaws to authorize the execution and delivery of this Agreement or any of the
transactions contemplated hereby, including, but not limited to, the issuance of
the Commitment Shares and the issuance of the Purchase Shares.

    

    (c)           Capitalization. 
As of the date hereof, the authorized capital stock of the Company is set forth
on Schedule
4(c).  Except as disclosed in Schedule 4(c), (i) no
shares of the Company's capital stock are subject to preemptive rights or any
other similar rights or any liens or encumbrances suffered or permitted by the
Company, (ii) there are no outstanding debt securities, (iii) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
Subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries or
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, (iv) there
are no agreements or arrangements under which the Company or any of its
Subsidiaries is obligated to register the sale of any of their securities under
the Securities Act (except the Registration Rights Agreement), (v) there are no
outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or any of its
Subsidiaries is or may become bound to redeem a security of the Company or any
of its Subsidiaries, (vi) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of
the Securities as described in this Agreement and (vii) the Company does not
have any stock appreciation rights or "phantom stock" plans or agreements or any
similar plan or agreement.  The Company has furnished to the Investor true
and correct copies of the Company's Certificate of Incorporation, as amended and
as in effect on the date hereof (the “Certificate of Incorporation”), and the
Company's By-laws, as amended and as in effect on the date hereof (the
"By-laws"), and summaries of the terms of all securities convertible into or
exercisable for Common Stock, if any, and copies of any documents containing the
material rights of the holders thereof in respect thereto.

    
      
         

      

      
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    (d)           Issuance of
Securities.  Upon issuance and payment thereof in accordance with
the terms and conditions of this Agreement, the Purchase Shares, shall be
validly issued, fully paid and nonassessable and free from all taxes, liens and
charges with respect to the issue thereof, with the holders being entitled to
all rights accorded to a holder of Common Stock.  The Commitment Shares
have been duly authorized and, upon issuance in accordance with the terms
hereof, the Commitment Shares shall be (i) validly issued, fully paid and
non-assessable and (ii) free from all taxes, liens and charges with respect to
the issue thereof.   5,000,000 shares of Common Stock have been duly
authorized and reserved for issuance upon purchase under this Agreement as
Purchase Shares. When issued in accordance with this Agreement, the Purchase
Shares shall be validly issued, fully paid and non-assessable, to our knowledge,
free of all taxes, liens, charges, restrictions, rights of first refusal and
preemptive rights.    91,784 shares of Common Stock (subject to
equitable adjustment for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction) have been duly authorized
and reserved for issuance as Additional Commitment Shares in accordance with
this Agreement. When issued in accordance with this Agreement, the Additional
Commitment Shares shall be validly issued, fully paid and non-assessable, to our
knowledge, free of all taxes, liens, charges, restrictions, rights of first
refusal and preemptive rights.

    

    (e)           No Conflicts. 
Except as disclosed in Schedule 4(e), the
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and
thereby (including, without limitation, the reservation for issuance and
issuance of the Purchase Shares) will not (i) result in a violation of the
Certificate of Incorporation, any Certificate of Designations, Preferences and
Rights of any outstanding series of preferred stock of the Company or the
By-laws or (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company or any of its
Subsidiaries is a party, or result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and
regulations and the rules and regulations of the Principal Market applicable to
the Company or any of its Subsidiaries) or by which any property or asset of the
Company or any of its Subsidiaries is bound or affected, except in the case of
conflicts, defaults, terminations, amendments, accelerations, cancellations and
violations under clause (ii), which could not reasonably be expected to result
in a Material Adverse Effect.  Except as disclosed in Schedule 4(e),
neither the Company nor its Subsidiaries is in violation of any term of or in
default under its Certificate of Incorporation, any Certificate of Designation,
Preferences and Rights of any outstanding series of preferred stock of the
Company or By-laws or their organizational charter or by-laws,
respectively.  Except as disclosed in Schedule 4(e),
neither the Company nor any of its Subsidiaries is in violation of any term of
or is in default under any material contract, agreement, mortgage, indebtedness,
indenture, instrument, judgment, decree or order or any statute, rule or
regulation applicable to the Company or its Subsidiaries, except for possible
conflicts, defaults, terminations or amendments which could not reasonably be
expected to have a Material Adverse Effect.  The business of the Company
and its Subsidiaries is not being conducted, and shall not be conducted, in
violation of any law, ordinance, regulation of any governmental entity, except
for possible violations, the sanctions for which either individually or in the
aggregate could not reasonably be expected to have a Material Adverse
Effect.  Except as specifically contemplated by this Agreement and as
required under the Securities Act or applicable state securities laws and the
rules and regulations of the Principal Market, the Company is not required to
obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency or any regulatory or
self-regulatory agency in order for it to execute, deliver or perform any of its
obligations under or contemplated by the Transaction Documents in accordance
with the terms hereof or thereof.  Except as disclosed in Schedule 4(e) and set forth
elsewhere in this agreement, all consents, authorizations, orders,
filings and registrations which the Company is required to obtain pursuant to
the preceding sentence shall be obtained or effected on or prior to the
Commencement Date.  Except as listed in Schedule 4(e), since
one year prior to the date hereof,  the Company has not received nor
delivered any notices or correspondence from or to the Principal Market. 
The Principal Market has not commenced any delisting proceedings against the
Company.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    (f)           SEC Documents; Financial
Statements. Except as disclosed in Schedule 4(f) the
Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years
preceding the date hereof (or such shorter period as the Company was required by
law or regulation to file such material) (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC Documents”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC
Documents prior to the expiration of any such extension.  As of their
respective dates and to the best of the Company’s knowledge, the SEC Documents
complied in all material respects with the requirements of the Securities Act
and the Exchange Act, as applicable.   None of the SEC Documents, when
filed, contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. The financial statements of the Company included in the
SEC Documents comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing.  Such financial statements have
been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes
thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.  Except as listed in Schedule 4(f), the
Company has received no notices or correspondence from the SEC for the one year
preceding the date hereof.  The SEC has not
commenced any enforcement proceedings against the Company or any of its
subsidiaries.

    

    (g)           Absence of Certain
Changes.  Except as disclosed in Schedule 4(g), since
June 30, 2010, there has been no material adverse change in the business,
properties, operations, financial condition or results of operations of the
Company or its Subsidiaries.  The Company has not taken any steps, and does
not currently expect to take any steps, to seek protection pursuant to any
Bankruptcy Law nor does the Company or any of its Subsidiaries have any
knowledge or reason to believe that its creditors intend to initiate involuntary
bankruptcy or
insolvency proceedings.  The Company is financially solvent and is
generally able to pay its debts as they become due.

    

    (h)           Absence of
Litigation. There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency,
self-regulatory organization or body pending or, to the knowledge of the Company
or any of its Subsidiaries, threatened against or affecting the Company, the
Common Stock or any of the Company's Subsidiaries or any of the Company's or the
Company's Subsidiaries' officers or directors in their capacities as such, which
could reasonably be expected to have a Material Adverse Effect.   A
description of each action, suit, proceeding, inquiry or investigation before or
by any court, public board, government agency, self-regulatory organization or
body which, as of the date of this Agreement, is pending or threatened in
writing against or affecting the Company, the Common Stock or any of the
Company's Subsidiaries or any of the Company's or the Company's Subsidiaries'
officers or directors in their capacities as such, is set forth in Schedule
4(h).

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    (i)           Acknowledgment Regarding
Investor's Status.  The Company acknowledges and agrees that the
Investor is acting solely in the capacity of arm's length purchaser with respect
to the Transaction Documents and the transactions contemplated hereby and
thereby.  The Company further acknowledges that the Investor is not acting
as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and any advice given by the Investor or any of its
representatives or agents in connection with the Transaction Documents and the
transactions contemplated hereby and thereby is merely incidental to the
Investor's purchase of the Securities.  The Company further represents to
the Investor that the Company's decision to enter into the Transaction Documents
has been based solely on the independent evaluation by the Company and its
representatives and advisors.

    

     (k)           Intellectual Property
Rights.  Except as set forth on Schedule 4(k), the
Company and its Subsidiaries own or possess adequate rights or licenses to use
all material trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to
conduct their respective businesses as now conducted.  Except as set forth
on Schedule
4(k), none of the Company's material trademarks, trade names, service
marks, service mark registrations, service names, patents, patent rights,
copyrights, inventions, licenses, approvals, government authorizations, trade
secrets or other intellectual property rights have expired or terminated, or, by
the terms and conditions thereof, could expire or terminate within two years
from the date of this Agreement.   Except as set forth on Schedule 4(k), the
Company and its Subsidiaries do not have any knowledge of any infringement by
the Company or its Subsidiaries of any material trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service
marks, service mark registrations, trade secret or other similar rights of
others, or of any such development of similar or identical trade secrets or
technical information by others and, except as set forth on Schedule 4(k), there
is no claim, action or proceeding being made or brought against, or to the
Company's knowledge, being threatened against, the Company or its Subsidiaries
regarding trademark, trade name, patents, patent rights, invention, copyright,
license, service names, service marks, service mark registrations, trade secret
or other infringement, which could reasonably be expected to have a Material
Adverse Effect.

    

    (l)           Environmental
Laws.  The Company and its Subsidiaries (i) are in compliance with
any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their
respective businesses and (iii) are in compliance with all terms and conditions
of any such permit, license or approval, except where, in each of the three
foregoing clauses, the failure to so comply could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse
Effect.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    (m)           Title.  The
Company and the Subsidiaries have good and marketable title in fee simple to all
real property owned by them and good and marketable title in all personal
property owned by them that is material to the business of the Company and the
Subsidiaries, in each case free and clear of all liens, encumbrances and defects
(“Liens”) and , except for Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be
made of such property by the Company and the Subsidiaries and Liens for the
payment of federal, state or other taxes, the payment of which is neither
delinquent nor subject to penalties.  Any real property and facilities held
under lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases with which the Company and the Subsidiaries
are in compliance with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such property and buildings by the
Company and its Subsidiaries. Any
real property and facilities held under lease by the Company and any of its
Subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as are not material and do not interfere with the use made
and proposed to be made of such property and buildings by the Company and its
Subsidiaries.

    

    (n)           Insurance.  The
Company and each of its Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as
management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged.  Neither the Company
nor any such Subsidiary has been refused any insurance coverage sought or
applied for and neither the Company nor any such Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not materially
and adversely affect the condition, financial or otherwise, or the earnings,
business or operations of the Company and its Subsidiaries, taken as a
whole.

    

    (o)           Regulatory
Permits.  The Company and its Subsidiaries possess all material
certificates, authorizations and permits issued by the appropriate federal,
state or foreign regulatory authorities necessary to conduct their respective
businesses, and neither the Company nor any such Subsidiary has received any
notice of proceedings relating to the revocation or modification of any such
certificate, authorization or permit.

    

    (p)           Tax Status.  The
Company and each of its Subsidiaries has made or filed all federal and state
income and all other material tax returns, reports and declarations required by
any jurisdiction to which it is subject (unless and only to the extent that the
Company and each of its Subsidiaries has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) and has
paid all taxes and other governmental assessments and charges that are material
in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has set aside on
its books provision reasonably adequate for the payment of all taxes for periods
subsequent to the periods to which such returns, reports or declarations
apply.  There are no unpaid taxes in any material amount claimed to be due
by the taxing authority of any jurisdiction, and the officers of the Company
know of no basis for any such claim.

    

    (q)           Transactions With
Affiliates.   Except
as set forth in the SEC Documents, none of the officers or directors of the
Company and, to the knowledge of the Company, none of the employees of the
Company is presently a party to any transaction with the Company or any
Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner, in each case in excess of $100,000
other than for (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii)
other employee benefits, including stock option agreements under any stock
option plan of the Company.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    (r)           Application of Takeover
Protections.  The Company and its board of directors have taken or
will take prior to the Commencement Date all necessary action, if any, in order
to render inapplicable any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Certificate of Incorporation or the
laws of the state of its incorporation which is or could become applicable to
the Investor as a result of the transactions contemplated by this Agreement,
including, without limitation, the Company's issuance of the Securities and the
Investor's ownership of the Securities.

    

    (s)            Disclosure. 
Except with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company confirms that neither it
nor any other Person acting on its behalf has provided the Investor or its
agents or counsel with any information that it believes constitutes or might
constitute material, non-public information which is not otherwise disclosed in
the Shelf Registration Statement or prospectus supplements thereto. 
 The Company understands and confirms that the Investor will rely on the
foregoing representation in effecting purchases and sales of securities of the
Company.  All of the disclosure furnished by or on behalf of the Company to
the Investor regarding the Company, its business and the transactions
contemplated hereby, including the disclosure schedules to this Agreement, is
true and correct and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not
misleading. The press releases disseminated by the Company during the twelve
months preceding the date of this Agreement taken as a whole do not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made and when made, not
misleading.  The Company acknowledges and agrees that the Investor neither
makes nor has made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in
Section 3 hereof.

    

    (t)           Foreign Corrupt
Practices.   Neither
the Company, nor to the knowledge of the Company, any agent or other person
acting on behalf of the Company, has (i) directly or indirectly, used any funds
for unlawful contributions, gifts, entertainment or other unlawful expenses
related to foreign or domestic political activity, (ii) made any unlawful
payment to foreign or domestic government officials or employees or to any
foreign or domestic political parties or campaigns from corporate funds, (iii)
failed to disclose fully any contribution made by the Company (or made by any
person acting on its behalf of which the Company is aware) which is in violation
of law, or (iv) violated in any material respect any provision of the Foreign
Corrupt Practices Act of 1977, as amended.

    

    (u)           Registration
Statements.  The Company’s shelf registration statement on Form S-3
(no. 333-147793) (the “Shelf Registration Statement”) has been declared
effective by the SEC and no stop order has been issued or is pending or
threatened with respect thereto.

    

    (v)           DTC Eligible. 
The Company through its transfer agent currently participates in the Depository
Trust Company Fast Automated Securities Transfer Program (“DTC FAST System”) and
the Company’s Common Stock can be transferred electronically to third parties
via the DTC FAST System.

    

    5. 
          COVENANTS.

    

    (a)           Filing of Form 8-K and
Prospectus Supplement.  The Company agrees that it shall, within the
time required under the Exchange Act file a Report on Form 8-K disclosing this
Agreement and the transaction contemplated hereby.  The Company shall also
file within two (2) Business Days from the date hereof a prospectus supplement
(“Prospectus Supplement”) to the Shelf Registration Statement (the date of such
filing, the “Prospectus Supplement Date”) covering the sale of the Purchase
Shares and Commitment Shares.  The Company shall use best efforts to keep
the Shelf Registration Statement effective pursuant to Rule 415 under the
Securities Act and available for sale of all of the Purchase Shares and
Commitment Shares.   Any securities issued under this Agreement that
have not been registered under the Securities Act shall bear the following
restrictive legend (the “Restrictive Legend”):

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL,
IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE STATE SECURITIES LAWS.  

    

    (c)           Listing/DTC. 
The Company shall promptly secure the listing of all of the Purchase Shares and
Commitment Shares upon each national securities exchange and automated quotation
system, if any, upon which shares of Common Stock are then listed (subject to
official notice of issuance) and shall maintain, so long as any other shares of
Common Stock shall be so listed, such listing of all such securities from time
to time issuable under the terms of the Transaction Documents.  The Company
shall maintain the Common Stock's authorization for quotation on the Principal
Market.  Neither the Company nor any of its Subsidiaries shall take any
action that would be reasonably expected to result in the delisting or
suspension of the Common Stock on the Principal Market.  The Company shall
promptly, and in no event later than the following Business Day, provide to the
Investor copies of any notices it receives from the Principal Market regarding
the continued eligibility of the Common Stock for listing on such automated
quotation system or securities exchange.  The Company shall pay all fees
and expenses in connection with satisfying its obligations under this
Section.  The Company shall take all action necessary to ensure that its
Common Stock can be transferred electronically via the DTC FAST
System.

    

    (d)           Limitation on Short Sales
and Hedging Transactions.  The Investor agrees that beginning on the
date of this Agreement and ending on the date of termination of this Agreement
as provided in Section 11, the Investor and its agents, representatives and
affiliates shall not in any manner whatsoever enter into or effect, directly or
indirectly, any (i) “short sale” (as such term is defined in Section 242.200 of
Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging
transaction, which establishes a net short position with respect to the Common
Stock.

    

    (e)           Issuance of Commitment
Shares.    In connection with each purchase of Purchase
Shares hereunder, the Company agrees to issue to the Investor a number of shares
of Common Stock (the “Additional Commitment Shares” or, the “Commitment Shares”)
equal to the product of (x) 91,784 and (y) the Purchase Amount Fraction. 
The “Purchase Amount Fraction” shall mean a fraction, the numerator of which is
the Purchase Amount purchased by the Investor with respect to such purchase of
Purchase Shares and the denominator of which is One Million Five Hundred
Thousand Dollars ($1,500,000).  The Additional Commitment Shares shall be
equitably adjusted for any reorganization, recapitalization, non-cash dividend,
stock split or other similar transaction.    The Investor agrees
that the Investor shall not pledge, transfer or sell the Additional Commitment
Shares until the earlier of (a) 500 Business Days (25 Monthly Periods) from the
date hereof or (b) the date on which this Agreement has been terminated,
provided, however, that such restrictions shall not apply: (i) in connection
with any transfers to or among affiliates (as defined in the Exchange Act), or
(ii) if an Event of Default has occurred, or any event which, after notice
and/or lapse of time, would become an Event of Default, including any failure by
the Company to timely issue Purchase Shares under this Agreement. 
Notwithstanding the forgoing, the Investor may transfer Commitment Shares to a
third party in order to settle a sale made by the Investor where the Investor
reasonably expects the Company to deliver additional Purchase Shares to the
Investor under this Agreement so long as the Investor maintains ownership of the
amount of Commitment Shares received up to that point by "replacing" such
Commitment Shares so transferred with new Purchase Shares when the new Purchase
Shares are actually issued by the Company to the Investor.

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    (f)           Due Diligence. 
The Investor shall have the right, from time to time as the Investor may
reasonably deem appropriate, to perform reasonable due diligence on the Company
during normal business hours until such time as the Prospectus Supplement is
filed.  The Company and its officers and employees shall provide
information and reasonably cooperate with the Investor in connection with any
reasonable request by the Investor related to the Investor's due diligence of
the Company.  Each party hereto agrees not to disclose any Confidential
Information of the other party to any third party and shall not use the
Confidential Information for any purpose other than in connection with, or in
furtherance of, the transactions contemplated hereby.  Each party hereto
acknowledges that the Confidential Information shall remain the property of the
disclosing party and agrees that it shall take all reasonable measures to
protect the secrecy of any Confidential Information disclosed by the other
party.  The Company confirms that neither it nor any other Person acting on
its behalf shall provide the Investor or its agents or counsel with any
information that it believes constitutes or might constitute material,
non-public information which is not otherwise disclosed in the Shelf
Registration Statement or prospectus supplements thereto.

     

    (g)          Purchase Records. The
Investor and the Company shall each maintain records showing the remaining
Available Amount at any given time and the dates and Purchase Amounts for each
purchase or shall use such other method, reasonably satisfactory to the Investor
and the Company.

     

    (h)          Taxes.  The Company
shall pay any and all transfer, stamp or similar taxes that may be payable with
respect to the issuance and delivery of any shares of Common Stock to the
Investor made under this Agreement.

    

    (i)         
No Variable Rate
Transactions.  From the date hereof until the Maturity Date, the
Company shall be prohibited from effecting or entering into an agreement to
effect any issuance by the Company or any of its Subsidiaries shares of Common
Stock or Common Stock Equivalents for cash consideration (or a combination of
units thereof) involving a Variable Rate Transaction other than in connection
with an Exempt Issuance.  “Variable Rate Transaction” means a transaction
in which the Company (i) issues or sells any debt or equity securities that are
convertible into, exchangeable or exercisable for, or include the right to
receive additional shares of Common Stock either (A) at a conversion price,
exercise price or exchange rate or other price that is based upon and/or varies
with the trading prices of or quotations for the shares of Common Stock at any
time after the initial issuance of such debt or equity securities, or (B) with a
conversion, exercise or exchange price that is subject to being reset upon the
occurrence of specified or contingent events directly or indirectly related to
the business of the Company or the market for the Common Stock or (ii) enters
into any agreement, including, but not limited to, an equity line of credit,
whereby the Company may sell securities at a future determined price. “Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees,
officers, directors, consultants, or vendors of the Company pursuant to any
stock or option plan or other agreement duly adopted for such purpose, by a
majority of the non-employee members of the Board of Directors or a majority of
the members of a committee of non-employee directors established for such
purpose, (b) securities upon the exercise or exchange of or conversion of any
Securities issued hereunder and/or other securities exercisable or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the
date of this Agreement, provided that such securities have not been amended
since the date of this Agreement to increase the number of such securities or to
decrease the exercise price, exchange price or conversion price of such
securities, and (c) securities issued pursuant to acquisitions or strategic
transactions approved by a majority of the disinterested directors of the
Company, which acquisitions or strategic transactions can have a Variable Rate
Transaction component,  provided that any such issuance shall only be
to a Person (or to the equity holders of a Person) which is, itself or through
its subsidiaries, an operating company or an asset in a business synergistic
with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include a
transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in
securities.

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    6. 
         TRANSFER AGENT
INSTRUCTIONS.

    

      The Company shall
cause any Purchase Shares and Commitment Shares to be issued under this
Agreement to be issued without any restrictive legend and via Deposit Withdrawal
At Custodian (“DWAC”) to
Purchaser’s account with DTC unless the Investor expressly consents
otherwise.  The Company shall issue irrevocable instructions to the
Transfer Agent, and any subsequent transfer agent, to issue Purchase Shares and
Additional Commitment Shares in the name of the Investor via DWAC to Purchaser’s
account with DTC (the “Irrevocable Transfer Agent Instructions”).  The
Company warrants to the Investor that no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section 6, will be given by the
Company to the Transfer Agent with respect to the Purchase Shares and that the
Purchase Shares and Additional Commitment Shares shall otherwise be freely
transferable on the books and records of the Company as and to the extent
provided in this Agreement.

    

    
      
        	 	
                7.

              	
                CONDITIONS
      TO THE COMPANY'S RIGHT TO COMMENCE SALES
      OF SHARES OF COMMON STOCK.

              

      

    

    

    The right
of the Company hereunder to commence sales of the Purchase Shares is subject to
the satisfaction of each of the following conditions:

    

    (a)           The
Investor shall have executed each of the Transaction Documents and delivered the
same to the Company; and

    

    (b)           No
stop order with respect to the Shelf Registration Statement shall be pending or
threatened by the SEC.

    

    
      	
               
      

            	
              8.

            	
              CONDITIONS
      TO THE INVESTOR'S OBLIGATION TO PURCHASE SHARES OF COMMON
      STOCK.

            

    

    

    The
obligation of the Investor to buy Purchase Shares under this Agreement is
subject to the satisfaction of each of the following conditions and once such
conditions have been initially satisfied, there shall not be any ongoing
obligation to satisfy such conditions after the Commencement has
occurred:

    

    (a)           The
Company shall have executed each of the Transaction Documents and delivered the
same to the Investor;

    

    (b)           Intentionally
Omitted.

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    
       

      (c)           The
Common Stock shall be authorized for quotation on the Principal Market, trading
in the Common Stock shall not have been within the last 365 days suspended by
the SEC or the Principal Market and the Company shall have filed for approval
for listing of the Purchase Shares and Commitment Shares
upon the Principal Market;

       

    

    (d)           The
Investor shall have received the opinions of the Company's legal counsel dated
as of the Commencement Date substantially in the form of Exhibit
A attached hereto;

    

    (e)           The
representations and warranties of the Company shall be true and correct in all
material respects (except to the extent that any of such representations and
warranties is already qualified as to materiality in Section 4 above, in which
case, such representations and warranties shall be true and correct without
further qualification) as of the date when made and as of the Commencement Date
as though made at that time (except for representations and warranties that
speak as of a specific date) and the Company shall have performed, satisfied and
complied with the covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company
at or prior to the Commencement Date.  The Investor shall have received a
certificate, executed by the CEO, President or CFO of the Company, dated as of
the Commencement Date, to the foregoing effect in the form attached hereto as
Exhibit
B;

    

    (f)           The
Board of Directors of the Company shall have adopted resolutions in the form
attached hereto as Exhibit
C which shall be in full force and effect without any amendment or
supplement thereto as of the Commencement Date;

    

    (g)           As
of the Commencement Date, the Company shall have reserved out of its authorized
and unissued Common Stock, (A) solely for the purpose
of effecting purchases of Purchase Shares hereunder, 5,000,000 shares of Common
Stock and (B) as Additional Commitment Shares in accordance with Section 5(e)
hereof, 91,784 shares of Common Stock;

    

    (h)           The
Irrevocable Transfer Agent Instructions, in form acceptable to the Investor
shall have been delivered to and acknowledged in writing by the Company and the
Company's Transfer Agent;

    

    (i)           The
Company shall have delivered to the Investor a certificate evidencing the
incorporation and good standing of the Company in the State of Delaware issued
by the Secretary of State of the State of Delaware as of a date within ten (10)
Business Days of the Commencement Date;

    

    (j)           The
Company shall have delivered to the Investor a certified copy of the Certificate
of Incorporation as certified by the Secretary of State of the State of Delaware
within ten (10) Business Days of the Commencement Date;

    

    (k)           The
Company shall have delivered to the Investor a secretary's certificate executed
by the Secretary of the Company, dated as of the Commencement Date, in the form
attached hereto as Exhibit
D;

    

    (l)           The
Shelf Registration Statement shall continue to be effective and the prospectus
supplement shall have been filed with the SEC covering the sale of all of the
Purchase Shares and  Commitment Shares and no stop order with respect
to the Shelf Registration Statement shall be pending or threatened by the SEC
..  The Company shall have prepared and delivered to the Investor a final
and complete form of prospectus supplement, dated and current as of the
Commencement Date, to be used by the Investor in connection with any sales of
any Purchase Shares or Commitment Shares, and to be filed by the Company. The
Company shall have made all filings under all applicable federal and state
securities laws necessary to consummate the issuance of the Commitment Shares
and Purchase Shares pursuant to this Agreement in compliance with such
laws;

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    (m)           No
Event of Default has occurred, or any event which, after notice and/or lapse of
time, would become an Event of Default has occurred;

    

    (n)           On
or prior to the Commencement Date, the Company shall take all necessary action,
if any, and such actions as reasonably requested by the Investor, in order to
render inapplicable any control share acquisition, business combination,
shareholder rights plan or poison pill (including any distribution under a
rights agreement) or other similar anti-takeover provision under the Certificate
of Incorporation or the laws of the state of its incorporation which is or could
become applicable to the Investor as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company's issuance of the
Securities and the Commitment Shares and the Investor's ownership of the
Securities and the Commitment Shares; and

    

    (o)           The
Company shall have provided the Investor with the information requested by the
Investor in connection with its due diligence requests in accordance with the
terms of Section 5(f) hereof.

    

    
      	
               
      

            	
              9.

            	
              INDEMNIFICATION.

            

    

    

    In
consideration of the Investor's execution and delivery of the Transaction
Documents and acquiring the Securities hereunder and in addition to all of the
Company's other obligations under the Transaction Documents, the Company shall
defend, protect, indemnify and hold harmless the Investor and all of its
affiliates, shareholders, officers, directors, employees and direct or indirect
investors and any of the foregoing person's agents or other representatives
(including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action
for which indemnification hereunder is sought), and including reasonable
attorneys' fees and disbursements (the “Indemnified Liabilities”), incurred by
any Indemnitee as a result of, or arising out of, or relating to (a) any
misrepresentation or breach of any representation or warranty made by the
Company in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby, or
(c) any cause of action, suit or claim brought or made against such Indemnitee
and arising out of or resulting from the execution, delivery, performance or
enforcement of the Transaction Documents or any other certificate, instrument
or  document contemplated hereby or thereby, other than with respect
to Indemnified Liabilities which directly and primarily result from the gross
negligence or willful misconduct of the Indemnitee.  To the extent that the
foregoing undertaking by the Company may be unenforceable for any reason, the
Company shall make the maximum contribution to the payment and satisfaction of
each of the Indemnified Liabilities which is permissible under applicable
law.  Payment under this indemnification shall be made within thirty (30)
days from the date Investor makes written request for it. A certificate
containing reasonable detail as to the amount of such indemnification submitted
to the Company by Investor shall be conclusive evidence, absent manifest error,
of the amount due from the Company to Investor.

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    10. 
        EVENTS OF DEFAULT.

    

    An “Event
of Default” shall be deemed to have occurred at any time as any of the following
events occurs:

    

    (a)           the
effectiveness of a registration statement registering the Purchase Shares
or  Commitment Shares lapses for any reason (including, without
limitation, the issuance of a stop order) or is unavailable to the Investor for
sale of any or all of the Purchase Shares or Commitment Shares (“Registrable
Securities”), and such lapse or unavailability continues for a period of ten
(10) consecutive Business Days or for more than an aggregate of thirty (30)
Business Days in any 365-day period;

    

    (b)           the
suspension from trading or failure of the Common Stock to be listed on the
Principal Market for a period of three (3) consecutive Business
Days;

    

    (c)           the
delisting of the Company’s Common Stock from the Principal Market, provided,
however, that the Common Stock is not immediately thereafter trading on the New
York Stock Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market,
the Nasdaq Capital Market, or the OTC Bulletin Board;

    

    (d)           the
failure for any reason by the Transfer Agent to issue Purchase Shares to the
Investor within five (5) Business Days after the applicable Purchase Date which
the Investor is entitled to receive;

    

    (e)           the
Company breaches any representation, warranty, covenant or other term or
condition under any Transaction Document if such breach could have a Material
Adverse Effect and except, in the case of a breach of a covenant which is
reasonably curable, only if such breach continues for a period of at least five
(5) Business Days;

    

    (f)           if
any Person commences a proceeding against the Company pursuant to or within the
meaning of any Bankruptcy Law which is not discharged within 30
days;

    

    (g)           if
the Company pursuant to or within the meaning of any Bankruptcy Law; (A)
commences a voluntary case, (B) consents to the entry of an order for relief
against it in an involuntary case, (C) consents to the appointment of a
Custodian of it or for all or substantially all of its property, (D) makes a
general assignment for the benefit of its creditors or is generally unable to
pay its debts as the same become due;

    

    (h)           a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (A) is for relief against the Company in an involuntary case, (B)
appoints a Custodian of the Company or for all or substantially all of its
property, or (C) orders the liquidation of the Company or any
Subsidiary.

    

    (i)           if
at any time the Company is not eligible to transfer its Common Stock
electronically via the DTC FAST System.

    

    (j)           a
material adverse change occurs in the Company, its business, financial
condition, operations or prospects; or

    

    (k)           if
at any time after the Commencement Date, the “Exchange Cap” is reached. The
“Exchange Cap” shall be deemed to be reached at such time if, upon the purchase
of Common Stock under this Agreement, the issuance of such shares of Common
Stock would exceed that number of shares of Common Stock which the Company may
issue under this Agreement without breaching the Company's obligations under the
rules or regulations of the Principal Market.

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    In
addition to any other rights and remedies under applicable law and this
Agreement, including the Investor termination rights under Section 11 hereof, so
long as an Event of Default has occurred and is continuing, or if any event
which, after notice and/or lapse of time, would become an Event of Default, has
occurred and is continuing, or so long as the Purchase Price is below the Floor
Price, the Investor shall not be permitted or obligated to purchase any shares
of Common Stock under this Agreement.  If pursuant to or within the meaning
of any Bankruptcy Law, the Company commences a voluntary case or any Person
commences a proceeding against the Company, a Custodian is appointed for the
Company or for all or substantially all of its property, or the Company makes a
general assignment for the benefit of its creditors, (any of which would be an
Event of Default as described in Sections 10(f), 10(g) and 10(h) hereof) this Agreement
shall automatically terminate without any liability or payment to the Company
without further action or notice by any Person.  No such termination of
this Agreement under Section 11(a) or 11(d) shall affect the Company's or the
Investor's obligations under this Agreement with respect to pending purchases
and the Company and the Investor shall complete their respective obligations
with respect to any pending purchases under this Agreement.

    

    11. 
        TERMINATION

    

    This
Agreement may be terminated only as follows:

    

    (a)           By
the Investor any time an Event of Default exists without any liability or
payment to the Company.  However, if pursuant to or within the meaning of
any Bankruptcy Law, the Company commences a voluntary case or any Person
commences a proceeding against the Company, a Custodian is appointed for the
Company or for all or substantially all of its property, or the Company makes a
general assignment for the benefit of its creditors, (any of which would be an
Event of Default as described in Sections 10(f), 10(g) and 10(h) hereof) this
Agreement shall automatically terminate without any liability or payment to the
Company without further action or notice by any Person.  No such
termination of this Agreement under this Section 11(a) shall affect the
Company's or the Investor's obligations under this Agreement with respect to
pending purchases and the Company and the Investor shall complete their
respective obligations with respect to any pending purchases under this
Agreement.

    

    (b)           In
the event that the Commencement shall not have occurred, the Company shall have
the option to terminate this Agreement for any reason or for no reason without
any liability whatsoever of any party to any other party under this
Agreement.

    

    (c)           In
the event that the Commencement shall not have occurred on or before November
15, 2010, due to the failure to satisfy the conditions set forth in Sections 7
and 8 above with respect to the Commencement, the non-breaching party shall have
the option to terminate this Agreement at the close of business on such date or
thereafter without liability of any party to any other party.

    

    (d)           
At any time after the Commencement Date, the Company shall have the option to
terminate this Agreement for any reason or for no reason by delivering notice (a
“Company Termination Notice”) to the Investor electing to terminate this
Agreement without any liability whatsoever of any party to any other party under
this Agreement.  The Company Termination Notice shall not be effective
until one (1) Business Day after it has been received by the Investor. No such
termination of this Agreement under this Section 11(d) shall affect the
Company's or the Investor's obligations under this Agreement with respect to
pending purchases and the Company and the Investor shall complete their
respective obligations with respect to any pending purchases under this
Agreement.

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    

    (e)          This
Agreement shall automatically terminate on the date that the Company sells and
the Investor purchases the full Available Amount as provided herein, without any
action or notice on the part of any party and without any liability whatsoever
of any party to any other party under this Agreement.

    

    (f)           If
by the Maturity Date for any reason or for no reason the full Available Amount
under this Agreement has not been purchased as provided for in Section 2 of this
Agreement, this Agreement shall automatically terminate on the Maturity Date,
without any action or notice on the part of any party and without any liability
whatsoever of any party to any other party under this Agreement.

    

    Except as
set forth in Sections 11(a) (in respect of an Event of Default under Sections
10(f), 10(g) and 10(h)) and 11(f), any termination of this Agreement pursuant to
this Section 11 shall be effected by written notice from the Company to the
Investor, or the Investor to the Company, as the case may be, setting forth the
basis for the termination hereof.  The representations and warranties
and covenants of the Company and the Investor contained in Sections 3, 4, 5, and
6 hereof, the indemnification provisions set forth in Section 9 hereof and the
agreements and covenants set forth in Sections 10 and 11, shall survive
the Commencement and any termination of this Agreement.  No
termination of this Agreement shall affect the Company's or the Investor's
rights or obligations (i) under the Registration Rights Agreement which shall
survive any such termination or (ii) under this Agreement with respect to
pending purchases and the Company and the Investor shall complete their
respective obligations with respect to any pending purchases under this
Agreement.

    

    12.   
      MISCELLANEOUS.

    

    (a)           Governing Law; Jurisdiction;
Jury Trial.  The corporate laws of the State of Delaware shall
govern all issues concerning the relative rights of the Company and its
shareholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the other Transaction
Documents shall be governed by the internal laws of the State of Illinois,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of
Illinois.  Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of Chicago, for
the adjudication of any dispute hereunder or under the other Transaction
Documents or in connection herewith or therewith, or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper.  Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT
OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

    

    (b)           Counterparts.  This
Agreement may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature or signature delivered by e-mail in a “.pdf”
format data file shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an
original, not a facsimile signature or a signature in a “.pdf” format data
file.

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    

    (c)          Headings.  The
headings of this Agreement are for convenience of reference and shall not form
part of, or affect the interpretation of, this Agreement.

    

    (d)          Severability.  If
any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.

    

    (e)          Entire
Agreement.  With the exception of the Mutual Nondisclosure
Agreement between the parties dated as of September 15, 2010, this Agreement
supersedes all other prior oral or written agreements between the Investor, the
Company, their affiliates and persons acting on their behalf with respect to the
matters discussed herein, and this Agreement, the other Transaction Documents
and the instruments referenced herein contain the entire understanding of the
parties with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor the Investor
makes any representation, warranty, covenant or undertaking with respect to such
matters.  The Company acknowledges and agrees that is has not relied
on, in any manner whatsoever, any representations or statements, written or
oral, other than as expressly set forth in this Agreement.

    

    (f)           Notices.  Any
notices, consents or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt when delivered personally; (ii) upon receipt
when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (iii) one
Business Day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the same. The
addresses and facsimile numbers for such communications shall be:

    

    If to the
Company:

    Cytomedix,
Inc.

    209 Perry
Parkway, Suite 7

    Gaithersburg,
MD 20877

    
      	 	
              Telephone:

            	
              240-499-2680

            

    

    
      	 	
              Facsimile:

            	
              240-499-2690

            

    

    
      	 	
              Attention:

            	
              Martin
      P. Rosendale, CEO

            

    

     

    With a
copy to:

    

    Cozen
O’Connor

    1627 I
Street, NW, Suite 1100

    Washington,
D.C. 2006

    
      	 	
              Telephone:

            	
              202-912-4800

            

    

    
      	 	
              Facsimile:

            	
              202-912-4830

            

    

    
      	 	
              Attention:

            	
              Alec
      Orudjev, Esq.

            

    

     

    If to the
Investor:

    Lincoln
Park Capital Fund, LLC

    440 North
Wells, Suite 620

    Chicago,
IL 60654

    
      	 	
              Telephone:

            	
              312-822-9300

            

    

    
      	 	
              Facsimile:

            	
              312-822-9301

            

    

    
      	 	
              Attention:

            	
              Josh
      Scheinfeld/Jonathan Cope

            

    

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    If to the
Transfer Agent:

    StockTrans,
Inc.

    44 West
Lancaster Ave.

    Ardmore,
PA 19003

    Telephone:
610-649-7300

    Facsimile:  610-649-7302

    Attention:  Angela
Lamb

    

    or at
such other address and/or facsimile number and/or to the attention of such other
person as the recipient party has specified by written notice given to each
other party three (3) Business Days prior to the effectiveness of such
change.  Written confirmation of receipt (A) given by the recipient of
such notice, consent or other communication, (B) mechanically or electronically
generated by the sender's facsimile machine containing the time, date, and
recipient facsimile number or (C) provided by a nationally recognized overnight
delivery service, shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

    

    (g)          Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and
assigns.  The Company shall not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the Investor,
including by merger or consolidation.  The Investor may not assign its
rights or obligations under this Agreement.

    

    (h)          No Third Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other
person.

    

    (i)           Publicity.  The
Investor shall have the right to approve before issuance any press release, SEC
filing or any other public disclosure made by or on behalf of the Company
whatsoever with respect to, in any manner, the Investor, its purchases hereunder
or any aspect of this Agreement or the transactions contemplated hereby;
provided, however, that the Company shall be entitled, without the prior
approval of the Investor, to make any press release or other public disclosure
(including any filings with the SEC) with respect to such transactions as is
required by applicable law and regulations so long as the Company and its
counsel consult with the Investor in connection with any such press release or
other public disclosure prior to its release.  The Investor must be
provided with a copy thereof prior to any release or use by the Company
thereof.  The Company agrees and acknowledges that its failure to
fully comply with this provision constitutes a material adverse effect on its
ability to perform its obligations under this Agreement.

    

    (j)           Further
Assurances.  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.

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

    (k)          No Financial Advisor,
Placement Agent, Broker or Finder.    The Company
represents and warrants to the Investor that it has not engaged any financial
advisor, placement agent, broker or finder in connection with the transactions
contemplated hereby.  The Investor represents and warrants to the
Company that it has not engaged any financial advisor, placement agent, broker
or finder in connection with the transactions contemplated
hereby.  The Company shall be responsible for the payment of any fees
or commissions, if any, of any financial advisor, placement agent, broker or
finder relating to or arising out of the transactions contemplated
hereby.  The Company shall pay, and hold the Investor harmless
against, any liability, loss or expense (including, without limitation,
attorneys' fees and out of pocket expenses) arising in connection with any such
claim.

    

    (l)           No Strict
Construction.  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.

    

    (m)         Remedies, Other Obligations,
Breaches and Injunctive Relief.  The Investor’s remedies
provided in this Agreement shall be cumulative and in addition to all other
remedies available to the Investor under this Agreement, at law or in equity
(including a decree of specific performance and/or other injunctive relief), no
remedy of the Investor contained herein shall be deemed a waiver of compliance
with the provisions giving rise to such remedy and nothing herein shall limit
the Investor's right to pursue actual damages for any failure by the Company to
comply with the terms of this Agreement.  The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to
the Investor and that the remedy at law for any such breach may be
inadequate.  The Company therefore agrees that, in the event of any
such breach or threatened breach, the Investor shall be entitled, in addition to
all other available remedies, to an injunction restraining any breach, without
the necessity of showing economic loss and without any bond or other security
being required.

    

    (n)          Enforcement
Costs.  If: (i) this Agreement is placed by the Investor in the
hands of an attorney for enforcement or is enforced by the Investor through any
legal proceeding; or (ii) an attorney is retained to represent the Investor in
any bankruptcy, reorganization, receivership or other proceedings affecting
creditors' rights and involving a claim under this Agreement; or (iii) an
attorney is retained to represent the Investor in any other proceedings
whatsoever in connection with this Agreement, then the Company shall pay to the
Investor, as incurred by the Investor, all reasonable costs and expenses
including attorneys' fees incurred in connection therewith, in addition to all
other amounts due hereunder.

    

    (o)          Failure or Indulgence Not
Waiver.  No failure or delay in the exercise of any power,
right or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or
privilege.

     

    *     *     *     *     *

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Investor and the Company have caused this Purchase Agreement to be duly executed
as of the date first written above.

    

    
      
        
          	 
      	
                  THE COMPANY:

                
	 
      	 
      
	 
      	
                  CYTOMEDIX,
      INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                     

                
	 
      	
                  Name:
      Martin P. Rosendale

                
	 
      	
                  Title:
      Chief Executive Officer

                
	 
      	 
      
	 
      	
                  INVESTOR:

                
	 
      	 
      
	 
      	
                  LINCOLN
      PARK CAPITAL FUND, LLC

                
	 
      	
                  BY:
      LINCOLN PARK CAPITAL, LLC

                
	 
      	
                  BY:
      ALEX NOAH INVESTORS, INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                    

                
	 
      	
                  Name:
      Jonathan Cope

                
	 
      	
                  Title:
      President

                

        

      

    

     

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

    
 

    SCHEDULES

    

    
      
        	
                Schedule
      4(a)

              	
                Subsidiaries

              
	
                Schedule
      4(c)

              	
                Capitalization

              
	
                Schedule
      4(e)

              	
                Conflicts

              
	
                Schedule
      4(f)

              	
                Exchange
      Act Filings

              
	
                Schedule
      4(g)

              	
                Material
      Changes

              
	
                Schedule
      4(h)

              	
                Litigation

              
	
                Schedule
      4(k)

              	
                Intellectual
      Property

              

      

    

    

    EXHIBITS

    

    
      
        	
                Exhibit
      A

              	
                Form
      of Company Counsel Opinion

              
	
                Exhibit
      B

              	
                Form
      of Officer’s Certificate

              
	
                Exhibit
      C

              	
                Form
      of Resolutions of Board of Directors of the Company

              
	
                Exhibit
      D

              	
                Form
      of Secretary’s Certificate

              
	
                Exhibit
      E

              	
                Form
      of Letter to Transfer Agent

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    DISCLOSURE
SCHEDULES

    

    Schedule
4(a) – Subsidiaries

    

    Schedule
4(c) - Capitalization

    

    Schedule
4(e) - No Conflicts

    

    Schedule
4(f) - Exchange Act Filings

    

    Schedule
4(g) - Absence of Certain Changes

    

    Schedule
4(h) - Litigation

    

    Schedule
4(k) - Intellectual Property Rights

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    FORM
OF COMPANY COUNSEL OPINION

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    FORM
OF OFFICER’S CERTIFICATE

    

    This
Officer’s Certificate (“Certificate”) is being
delivered pursuant to Section 8(e) of that certain Purchase Agreement dated as
of _________, (“Purchase
Agreement”), by and between CYTOMEDIX, INC., a Delaware
corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC
(the “Investor”).  Terms
used herein and not otherwise defined shall have the meanings ascribed to them
in the Purchase Agreement.

    

    The
undersigned, ___________, ______________ of the Company, hereby certifies as
follows:

    

    1.           I
am the _____________ of the Company and make the statements contained in this
Certificate;

    

    2.           The
representations and warranties of the Company are true and correct in all
material respects (except to the extent that any of such representations and
warranties is already qualified as to materiality in Section 4 of the Purchase
Agreement, in which case, such representations and warranties are true and
correct without further qualification) as of the date when made and as of the
Commencement Date as though made at that time (except for representations and
warranties that speak as of a specific date);

    

    3.           The
Company has performed, satisfied and complied in all material respects with
covenants, agreements and conditions required by the Transaction Documents to be
performed, satisfied or complied with by the Company at or prior to the
Commencement Date.

    

    
      4.           The
Company has not taken any steps, and does not currently expect to take any
steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or
any of its Subsidiaries have any knowledge or reason to believe that its
creditors intend to initiate involuntary bankruptcy or insolvency proceedings.
The Company is financially solvent and is generally able to pay its debts as
they become due.

    

    

    IN
WITNESS WHEREOF, I have hereunder signed my name on this ___ day of
___________.

    

    
      	 
      	
                

            	 
      
	 
      	
                Name:

            	 
      
	 
      	
                Title:

            	 
      

    

    

    The
undersigned as Secretary of __________, a ______
corporation, hereby certifies that ___________ is the duly elected, appointed,
qualified and acting ________ of _________ and that the signature appearing
above is his genuine signature.

    

    
      	 
      	
                

            	 
      
	 
      	
              Secretary

            	 
      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    FORM
OF COMPANY RESOLUTIONS

    FOR
SIGNING PURCHASE AGREEMENT

    

    UNANIMOUS
WRITTEN CONSENT OF

    CYTOMEDIX,
INC.

    

    In
accordance with the corporate laws of the state of Delaware, the undersigned,
being all of the directors of CYTOMEDIX, INC., a Delaware
corporation (the “Corporation”) do hereby consent to and adopt the following
resolutions as the action of the Board of Directors for and on behalf of the
Corporation and hereby direct that this Consent be filed with the minutes of the
proceedings of the Board of Directors:

    

    WHEREAS, there has been presented to
the Board of Directors of the Corporation a draft of the Purchase Agreement (the
“Purchase Agreement”) by and between the Corporation and Lincoln Park Capital
Fund, LLC (“Lincoln Park”), providing for the purchase by Lincoln Park of up to
One Million Five Hundred Thousand Dollars ($1,500,000) of the Corporation’s
common stock, $.0001 par value per share (the “Common Stock”); and

    

    WHEREAS, after careful consideration of
the Purchase Agreement, the documents incident thereto and other factors deemed
relevant by the Board of Directors, the Board of Directors has determined that
it is advisable and in the best interests of the Corporation to engage in the
transactions contemplated by the Purchase Agreement, including, but not limited
to the sale of shares of Common Stock to Lincoln Park up to the available amount
under the Purchase Agreement (the "Purchase Shares").

    

    Transaction
Documents

     

    NOW,
THEREFORE, BE IT RESOLVED, that the transactions described in the Purchase
Agreement are hereby approved and ________________________________________ (the
“Authorized Officers”) are severally authorized to execute and deliver the
Purchase Agreement, and any other agreements or documents contemplated thereby
including, without limitation, a registration rights agreement (the
“Registration Rights Agreement”) providing for the registration of the shares of
the Company’s Common Stock issuable in respect of the Purchase Agreement on
behalf of the Corporation, with such amendments, changes, additions and
deletions as the Authorized Officers may deem to be appropriate and approve on
behalf of, the Corporation, such approval to be conclusively evidenced by the
signature of an Authorized Officer thereon; and

     

    FURTHER
RESOLVED, that the terms and provisions of the Registration Rights Agreement by
and among the Corporation and Lincoln Park are hereby approved and the
Authorized Officers are authorized to execute and deliver the Registration
Rights Agreement (pursuant to the terms of the Purchase Agreement), with such
amendments, changes, additions and deletions as the Authorized Officer may deem
appropriate and approve on behalf of, the Corporation, such approval to be
conclusively evidenced by the signature of an Authorized Officer thereon;
and

     

    FURTHER
RESOLVED, that the terms and provisions of the Form of Transfer Agent
Instructions (the “Instructions”) are hereby approved and the Authorized
Officers are authorized to execute and deliver the Instructions (pursuant to the
terms of the Purchase Agreement), with such amendments, changes, additions and
deletions as the Authorized Officers may deem appropriate and approve on behalf
of, the Corporation, such approval to be conclusively evidenced by the signature
of an Authorized Officer thereon; and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Execution of Purchase
Agreement

     

    FURTHER
RESOLVED, that the Corporation be and it hereby is authorized to execute the
Purchase Agreement providing for the purchase of up to One Million Five Hundred
Thousand Dollars ($1,500,000) of the Corporation’s common stock;
and

     

    Issuance of Common
Stock

     

    FURTHER
RESOLVED, that the Corporation is hereby authorized to issue shares of Common
Stock upon the purchase of Purchase Shares up to the Available Amount under the
Purchase Agreement in accordance with the terms of the Purchase Agreement and
that, upon issuance of the Purchase Shares pursuant to the Purchase Agreement,
the Purchase Shares will be duly authorized, validly issued, fully paid and
nonassessable with no personal liability attaching to the ownership thereof;
and

     

    FURTHER
RESOLVED, that the Corporation shall initially reserve 5,000,000 shares of
Common Stock for issuance as Purchase Shares under the Purchase
Agreement.

     

    FURTHER
RESOLVED, that the Corporation is hereby authorized to issue 91,784 shares of
Common Stock (subject to equitable adjustment for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction)
in connection with the purchase of Purchase Shares (the “Additional Commitment
Shares”) in accordance with the terms of the Purchase Agreement and that, upon
issuance of the Additional Commitment Shares pursuant to the Purchase Agreement,
the Additional Commitment Shares will be duly authorized, validly issued, fully
paid and nonassessable with no personal liability attaching to the ownership
thereof; and

     

    FURTHER
RESOLVED, that the Corporation shall initially reserve 91,784 shares of Common
Stock (subject to equitable adjustment for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction) for issuance as
Additional Commitment Shares under the Purchase Agreement.

     

    Approval of
Actions

     

    FURTHER
RESOLVED, that, without limiting the foregoing, the Authorized Officers are, and
each of them hereby is, authorized and directed to proceed on behalf of the
Corporation and to take all such steps as deemed necessary or appropriate, with
the advice and assistance of counsel, to cause the Corporation to consummate the
agreements referred to herein and to perform its obligations under such
agreements; and

     

    FURTHER RESOLVED, that the Authorized
Officers be, and each of them hereby is, authorized, empowered and directed on
behalf of and in the name of the Corporation, to take or cause to be taken all
such further actions and to execute and deliver or cause to be executed and
delivered all such further agreements, amendments, documents, certificates,
reports, schedules, applications, notices, letters and undertakings and to incur
and pay all such fees and expenses as in their judgment shall be necessary,
proper or desirable to carry into effect the purpose and intent of any and all
of the foregoing resolutions, and that all actions heretofore taken by any
officer or director of the Corporation in connection with the transactions
contemplated by the agreements described herein are hereby approved, ratified
and confirmed in all respects.

    

    IN WITNESS WHEREOF, the Board of
Directors has executed and delivered this Consent effective as of __________,
2010.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                   

              	 
      
	 
      	 
      
	
                  

              	 
      
	 
      	 
      
	
                  

              	 
      
	 
      	 
      
	
                being
      all of the directors of CYTOMEDIX,
INC.

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    

    FORM
OF SECRETARY’S CERTIFICATE

    

    This Secretary’s Certificate
(“Certificate”) is being delivered pursuant to Section 7(k) of that certain
Purchase Agreement dated as of __________, (“Purchase Agreement”), by and
between CYTOMEDIX, INC.,
a Delaware corporation (the “Company”) and LINCOLN PARK CAPITAL FUND, LLC
(the “Investor”), pursuant to which the Company may sell to the Investor up to
One Million Five Hundred Thousand Dollars ($1,500,000) of the Company's Common
Stock, $.0001 par value per share (the "Common Stock").  Terms used
herein and not otherwise defined shall have the meanings ascribed to them in the
Purchase Agreement.

    

    The undersigned, ____________,
Secretary of the Company, hereby certifies as follows:

    

    1.           I
am the Secretary of the Company and make the statements contained in this
Secretary’s Certificate.

    

    2.           Attached
hereto as Exhibit
A and Exhibit
B are true, correct and complete copies of the Company’s bylaws
(“Bylaws”) and Certificate of Incorporation (“Articles”), in each case, as
amended through the date hereof, and no action has been taken by the Company,
its directors, officers or shareholders, in contemplation of the filing of any
further amendment relating to or affecting the Bylaws or Articles.

    

    3.           Attached
hereto as Exhibit
C are true, correct and complete copies of the resolutions duly adopted
by the Board of Directors of the Company on _____________, at which a quorum was
present and acting throughout.  Such resolutions have not been
amended, modified or rescinded and remain in full force and effect and such
resolutions are the only resolutions adopted by the Company’s Board of
Directors, or any committee thereof, or the shareholders of the Company relating
to or affecting (i) the entering into and performance of the Purchase Agreement,
or the issuance, offering and sale of the Purchase Shares and the Commitment
Shares and (ii) and the performance of the Company of its obligation under the
Transaction Documents as contemplated therein.

    

    4.           As
of the date hereof, the authorized, issued and reserved capital stock of the
Company is as set forth on Exhibit D
hereto.

    

    IN WITNESS WHEREOF, I have
hereunder signed my name on this ___ day of ____________.

    

    
      	 
      	
                

            	 
      
	 
      	
              Secretary

            	 
      

    

    

    The
undersigned as ___________ of _______, a _______ corporation, hereby certifies
that ____________ is the duly elected, appointed, qualified and acting Secretary
of _________, and that the signature appearing above is his genuine
signature.Unassociated Document

    Exhibit 10.1

    

    ASSET
PURCHASE AGREEMENT

    

    This Agreement executed this 4th day of
October 2010 and effective October 4, 2010 (the “Closing Date”) between Ferrara
International Logistics, Inc., a New Jersey corporation with its principal place
of business at 1319 North Broad Street, Hillside, New Jersey 07205 (hereinafter
“FIL”) and Janel World Trade, Ltd., a Nevada corporation with its principal
place of business at 150-14 132nd Avenue,
Jamaica, New York 11434 (hereinafter “Janel”).

    WHEREAS, FIL is the owner of, among
other businesses, an International Freight Forwarding  business
consisting of warehousing (handling and storage), customs container freight
station, trucking and cross-docking, stuffing of export containers (full and
consolidation), ocean export business, air export business, ocean import
business (forwarding and brokerage), and air import business (forwarding and
brokerage) located at FIL’s 1319 North Broad Street, Hillside, New Jersey 07205
and 469 Atlantic Avenue, East Rockaway, NY 11518 premises (hereinafter
collectively referred to as the “Business”).

    WHEREAS, FIL desires to sell certain
specified assets as listed on the Schedule of Assets as set forth on Exhibit A
which are substantially all of the assets of the Business other than FIL’s
accounts receivable (the “Assets”), and Janel wishes to acquire the Assets, but
no liabilities, claims or debts, of the  Business, and integrate the
Assets into Janel's operations.

    THEREFORE, in consideration of the
premises and the covenants contained herein, the Parties agree as
follows:

    PURCHASE
AND SALE OF ASSETS

    1.  FIL agrees to sell,
assign, transfer and deliver to Janel on the Closing Date all the Assets,
including but not limited to all of the books, records, forms, manuals, internet
access codes, goodwill, customer lists and customer contact information,
telephone, yellow page, trade journal listings pertaining to the
Business.

    2.  The amounts allocated
among the Asset as set forth on Exhibit B, all of which are included in the
Purchase Price, shall be used by all of the Parties for reporting for federal
tax purposes.  The necessary tax filings in order to comply with
Internal Revenue Code Section 1060 is attached as Exhibit C.  Janel’s
accountant shall complete such form.

    3.  Janel does not assume any
liabilities or obligations of FIL or the Business, known, unknown, contingent or
otherwise including any and all obligations arising prior to the date of this
Agreement to any suppliers to the Business or under any of the agreements
included in the Assets (collectively, the “Liabilities”).  Janel is
purchasing the Assets free and clear of all liens and
encumbrances.  The transaction described in this section is referred
to as the “Sale”.  FIL expressly acknowledges that Janel has no
responsibility for any Liabilities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    4.  FIL agrees to indemnify
and hold Janel harmless from any cost or expense arising from any claim asserted
against Janel with respect to any Liabilities, including without limitation any
New Jersey state tax liability, and to pay all costs of investigation and
defense in connection with any such claim.

    PURCHASE
PRICE

    5.  FIL represents its good
faith belief that the Earnings before Interest, Taxes, Depreciation and
Amortization (“EBITDA”) of the Business for fiscal year 2011 will meet or exceed
$667,000.

    6.  The purchase price for
the Assets shall be as follows:

    a)
Restricted shares of common stock of Janel World Trade, Ltd. (“Janel Shares”) in
an amount which have a market value of $600,000 based on the closing market
price of the stock on the Friday immediately prior to the Closing Date (the
“Stock Allocation”), subject to adjustment as provided in Paragraphs 7 and 8
hereof.

    b) Cash
(the “Earn-Out Payment”) in an amount determined as follows:  70% of
the annual actual EBITDA achieved over the three 12-month periods following the
Closing Date (the “Earn-Out Period”) from revenues generated from the customers
included in the Assets (“Earn-Out EBITDA”).

    c)  Subject
to the provisions of Paragraphs 7 and 8 hereof, the Earn-Out Payment will be
paid as follows:  An amount equal to seventy percent (70%) of the
Earn-Out EBITDA achieved for each three-month period following the Closing Date
(“Quarter”) during the Earn-Out Period will be paid in cash following the end of
such Quarter.  Each Earn-Out Payment will be made thirty (30) days
following the end of such Quarter, beginning with the Quarter ending March 31,
2011 and ending with the Quarter ending September 30, 2013.  To the
extent the Earn-Out EBITDA with respect to any Quarter is less than zero, such
amount shall be deducted from subsequent Earn-Out Payments until deducted in
full.  Any amounts otherwise owed by FIL or its affiliates to Janel
may also be deducted from the Earn-Out Payments in Janel’s sole
discretion.

    7.  In the event the total
EBITDA of the Business for the Earn-Out Period fails to equal $2,000,000 (the
“Estimated EBITDA”), Janel shall be entitled to a corresponding percentage
reduction of the number of Janel Shares of the Stock Allocation (the “Shortfall
Reduction”).  For purposes of illustration, if the actual EBITDA
achieved is ten percent (10%) less than the Estimated EBITDA, the Stock
Allocation will be reduced by ten percent (10%).

     

    
      
        
        

      

      
        - 5
-

        
          

        

      

      
        
        

      

       

    

    8.  The percentage of the
Stock Allocation equal to the percentage of the Estimated EBITDA achieved in the
preceding 12 months (less any reduction pursuant to Paragraph 7 hereof), will be
delivered to FIL within forty (40) days following the first, second, and third
anniversary dates of the Closing Date.  If, at the end of the Earn-Out
Period, the Shortfall Reduction exceeds the number of Janel Shares of the Stock
Allocation delivered to FIL, FIL shall immediately surrender such excess to
Janel.

    9.  It is understood between
the parties that the persons presently employed by FIL listed on the Schedule of
Hired Employees attached as Exhibit D hereto will become employed by Janel on or
after the closing date in the operation of the Business.

    10.  It is further understood
that following the Earn-Out Period, a commission will be paid
to  Nicholas V. Ferrara in an amount equal to forty percent (40%) of
the actual EBITDA achieved in excess of $850,000 from customers included in the
Assets.  The payments will be made within thirty (30) days following
the completion of Janel’s annual audited financial statements.

    11.  In addition to any
remuneration due to FIL pursuant to this Agreement, Nicholas V. Ferrara shall
receive, as an employee of Janel, the same salary as he currently receives as an
employee of FIL, and he shall be entitled to receive the same benefits as other
executive officers of Janel receive from time to time.

    12.  Representations,
Warranties and Covenants of Janel

    Janel represents, warrants, covenants
and agrees with FIL as follows:

    (a)  Janel is a corporation
duly organized, validly existing and in good standing under the laws of Nevada,
with full power and authority to enter into this Agreement and perform its
obligations;

    (b)  This Agreement has been
duly and validly authorized, executed and delivered on behalf of Janel and is
the valid, binding and enforceable obligation of Janel in according with its
terms.

    (c)  Janel will reserve at
all times a sufficient number of Janel Shares to satisfy the Stock
Allocation.

    (d)  Following the Closing
Date, Nicholas V. Ferrara will become a member of the Board of Directors of
Janel.

    13.  Representations,
Warranties and Covenants of FIL

    FIL represents, warrants, covenants and
agrees with Janel as follows:

    (a)  FIL is a corporation
duly organized, validly existing and in good standing under the laws of New
Jersey, with full power and authority to enter into this Agreement and perform
its obligations.

     

    
      
        
        

      

      
        - 6
-

        
          

        

      

      
        
        

      

       

    

    (b)  This Agreement has been
validly and duly authorized, executed and delivered by FIL and is a valid,
binding and enforceable obligation upon it in accordance with its
terms.

    (c)  FIL shall at all times
comply with all applicable federal and state laws in connection with its
activities pursuant to this Agreement, in particular the rules and regulations
of the SEC under the Securities Act of 1933 and the Securities Exchange Act of
1934.

    (d)  On the date hereof, FIL
has, and on the Closing Date will have, good and marketable title to all of the
Assets, free and clear of any liens or encum­brances, and all of the Assets
are reflected on FIL’s latest bal­ance sheet (subject to dispositions or
replacements prior to the Closing Date in the ordinary course of
business).  The Assets constitute all of the assets and properties
used in the Business of any kind or character as heretofore
conducted.

    (e)  FIL
is an “accredited investor” as defined in Rule 501 promulgated under the
Securities Act of 1933 (the “Securities Act”).  FIL has had a
reasonable opportunity to ask questions of and receive answers from
representatives of Janel concerning Janel and its operations, and all such
questions have been answered to FIL’s full satisfaction, and has relied solely
upon FIL’s own investigation in making a decision to invest in the
Janel.  FIL has such knowledge and experience in financial, tax, and
business matters to enable it  evaluate the merits and risks of
acquiring the Janel Shares.  FIL fully understands that the investment
in Janel Shares is speculative and involves a high degree of risk of loss of the
entire investment.  FIL fully understands the nature of the risks
involved in acquiring the Janel Shares and the Holder is qualified by knowledge
and experience to evaluate investments of this type.

    (f)  FIL
is acquiring the Janel Shares solely for FIL’s account and not for the account
of any other person or for or with a view to distribution, assignment, or resale
to others.

    (g)  FIL
understands and agrees that: (i) FIL may not transfer any of the Janel Shares
other than in compliance with the Securities Act and other applicable securities
laws; (ii) the Janel Shares have not been registered under the Securities Act or
the securities laws of any state (the “State Acts”) in reliance upon the
exemption from registration contained in Sections 4(2) of the Securities Act and
Regulation D promulgated thereunder, and applicable provisions of the State Acts
and regulations promulgated thereunder, and may not be transferred or assigned
without an effective registration under the Securities Act and applicable State
Acts; (iii) neither Janel nor any affiliate thereof is under any obligation, and
neither intends, to file any such registration statement at any time in the
future; (iv) neither Janel nor any affiliate thereof has agreed to assist FIL in
complying with any exemption under the Securities Act or applicable State Acts
for the transfer of the Janel Shares.

     

    
      
        
        

      

      
        - 7
-

        
          

        

      

      
        
        

      

       

    

    (h)  Prior to the Closing
Date, FIL will make available its sales journal, sales by customer and the
associated accounts receivable for such customers for inspection by
Janel.

    14.  No Other
Representations

    None of Janel, its affilitates, or
their directors, officers, or employees, or any other person or entity has made
any representations or warranties to FIL other than as expressly set forth and
designated in this Agreement as such.

    15.  Assignment

    FIL shall not assign this Agreement or
any rights or obligations hereunder without the prior written consent of Janel,
which consent shall not be unreasonably withheld.

    16.  Binding
Effect

    This Agreement shall inure solely to
the benefit of, and shall be binding upon, the parties and their respective
successors and assigns and, except as otherwise specifically provided for
herein, no other person shall have or be construed to have any legal or
equitable right, remedy or claim under or in respect of or by virtue of this
Agreement or any provisions herein contained.

    17.  Entire Agreement; Waiver;
Severability

    This Agreement contains the entire
understanding of the parties and no waiver or modification of any provision of
this Agreement shall be valid unless in writing and signed by the party to be
charged with such waiver.  No waiver of any breach shall be deemed a
waiver of any subsequent breach or of a breach of any other provision of this
Agreement.  If any provision of this Agreement is held to be invalid
or unenforceable, the remaining provisions shall not be affected.

    18.  Headings

    The headings of the paragraphs herein
are inserted for convenience of reference only and shall not affect any
interpretation of this Agreement.

    19.  Construction and
Jurisdiction

    This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of New York
without giving effect to choice of law or conflicts of laws
principles.  The New York state and federal courts in Nassau County,
New York, and any arbitration or other alternative dispute resolution forum in
Nassau County, New York, mutually selected by the parties, shall have
jurisdiction over any and all disputes arising out of or related to this
Agreement.

     

    
      
        
        

      

      
        - 8
-

        
          

        

      

      
        
        

      

       

    

    20.  Notices

    All notices and communications
hereunder, except as herein otherwise specifically provided, shall be in writing
and shall be deemed to have been duly given, effective upon receipt, if mailed
or transmitted by any confirmed standard form of personal delivery, mail,
courier, fax or e-mail to the parties at their respective addresses as set forth
in this Agreement or as subsequently designated by them in writing.

    21. Counterparts

    This Agreement may be executed in any
number of counterparts, including confirmed fax transmission, each of which
shall be deemed to be an original, and all of which taken together shall be
deemed to be one and the same instrument.

    IN WITNESS WHERE­OF, the parties
have executed this Agreement as of the day and year first above
written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	Janel
      World Trade, Ltd. 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By: 	
                                /s/

                              	 	 	 	
                                 

                              	 
	 	
                                James
      N. Jannello

                              	 	 	 	
                                 

                              	 
	 	
                                Executive
      Vice President

                              	 	 	 	
                                 

                              	 

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	Ferrara
      International Logistics, Inc.	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By: 	
                                    /s/

                                  	 	 	 	
                                     

                                  	 
	 	
                                    Nicholas
      V. Ferrara, CEO

                                  	 	 	 	
                                     

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

        

      
        
          
          

        

        
          - 9
-

          
            

          

        

        
          
          

        

      

    

     

    ASSET
PURCHASE AGREEMENT

    

    EXHIBIT
A

    SCHEDULE OF
ASSETS

    

    

    FIL is the owner of, among other
businesses, an International Freight Forwarding business; located at FIL’s 1319
North Broad Street, Hillside, New Jersey premises; consisting of the following
elements and their respective revenue streams:

    

    
      	 	
              -  

            	
              Warehousing
      (handling and storage)

            

    

    
      
        	 	
                -  

              	
                      
                  Customs
      container freight
station

                

              

      

    

    
      	 	
              -  

            	
              Trucking
      and cross-docking

            

    

    
      	 	
              -  

            	
              Stuffing
      of export containers (full and
consolidation)

            

    

    
      	 	
              -  

            	
              Ocean
      export business

            

    

    
      	 	
              -  

            	
              Air
      export business

            

    

    
      	 	
              -  

            	
              Ocean
      import business (forwarding and
brokerage)

            

    

    
      	 	
              -  

            	
              Air
      import business (forwarding and
brokerage)

            

    

    

    These elements and their respective
revenue streams are the assets being sold under the Asset Purchase
Agreement.

    

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

       

    

    ASSET
PURCHASE AGREEMENT

    

    EXHIBIT
B

    PURCHASE PRICE
ALLOCATION

    

    

    

    The up-to-date, full and complete,
customer list of the assets being purchased on Exhibit A from Ferrara
International Logistics, Inc. and all materials appurtenant to the customer
list:  $2,000,000

     

    
      
        
        

      

      
        - 11
-

        
          

        

      

      
        
        

      

    

    

    ASSET
PURCHASE AGREEMENT

    

    EXHIBIT
C

    TAX FILINGS IN ORDER TO
COMPLY WITH

    INTERNAL REVENUE CODE
1060

    

    

    

    To be completed by the
Accountants

     

    
      
        
        

      

      
        - 12
-

        
          

        

      

      
        
        

      

    

    

    ASSET
PURCHASE AGREEMENT

    

    EXHIBIT
D

    SCHEDULE OF HIRED
EMPLOYEES

    

    

    

    Teresa
Giannetti

    Sahjjad
Mazhar

    Frank
Alcantara

    Jayne
Tompos

    Joseph
Costanzo

    Tammy
Lewis

    Virginia
Quiroz

    Rober
Rindos

    Nicholas
A. Ferrara

    Nicholas
V. Ferrara

    

    
      
        
        

      

      
        - 13
-

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