Document:

<PAGE>
                                                                EXHIBIT 10.18(b)

                                PLEDGE AGREEMENT

         PLEDGE AGREEMENT (the "AGREEMENT"), dated as of the 5th day of July,
2002 between AspenBio, Inc., a Colorado corporation ("PLEDGOR"), and Michael S.
Smith ("PLEDGEE").

         WHEREAS, Pledgee has loaned to Pledgor $500,000 (the "LOAN") and
Pledgor has executed and delivered to Pledgee a Convertible Promissory Note for
the principal amount of $500,000, dated as of the date hereof (the "NOTE"); and

         WHEREAS, Pledgor is the record and beneficial owner of a liquid asset
account containing $350,000 (the "ACCOUNT") at FirstBank of Tech Center (the
"BANK");

         WHEREAS, the Account serves as first priority collateral for Pledgor's
construction loan in the principal amount of $3,250,000, loan number 8925542,
between Pledgor and the Bank (the "CONSTRUCTION LOAN"), which will be used for
the construction of a building located at the Southwest Terminus of South Perry
Street, Castle Rock, Colorado (the "PROJECT"); and

         WHEREAS, as an inducement to Pledgee to make the Loan, Pledgor has
agreed to execute this Pledge Agreement and, pursuant hereto, to pledge the
Pledged Collateral (as defined below) as security for the prompt payment and
performance of the Pledgor's obligations under the Note (the "OBLIGATIONS");

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

         Section 1. Definitions. Except as otherwise defined in this Agreement,
all capitalized terms used in his Agreement shall have the respective meanings
ascribed to them in the Note.

         Section 2. Pledge of the Pledged Collateral. As security for the due
and timely payment and performance of all of the Obligations, Pledgor hereby
pledges, assigns, hypothecates, delivers, sets over and grants to Pledgee a
second priority lien and security interest in the Account and all interest and
proceeds thereof (the "PLEDGED COLLATERAL") subordinate only to the rights of
the Bank in and to such funds in connection with the Construction Loan.

         Section 3. Delivery of Evidence of Pledge. On the date hereof or upon
the request of Pledgee, Pledgor shall deliver to Pledgee (i) such Uniform
Commercial Code (the "CODE") financing statements, executed by Pledgor and in a
form ready for filing, as may be necessary or desirable to perfect or evidence
the security interests in the Pledged Collateral granted to Pledgee pursuant to
this Agreement, and (ii) satisfactory evidence to Pledgee in its sole discretion
that all other filings, recordings, registrations and other actions Pledgee
deems necessary or desirable to establish, preserve and perfect the security
interests and other rights granted to Pledgee pursuant to this Agreement shall
have been made.

<PAGE>

         Section 4. Event of Default; Power of Attorney.

              a. The occurrence of an Event of Default under the Note or a
default or breach of this Agreement which is not cured within 5 days following
notice thereof to the Pledgor shall constitute an "EVENT OF DEFAULT" under this
Agreement.

              b. In furtherance of the foregoing powers of Pledgee, Pledgor
hereby authorizes and appoints Pledgee (and any officer or agent of Pledgee,
with full powers of substitution) as the true and lawful attorney-in-fact of
such Pledgor, in its name, place and stead to take any and all such action as
Pledgee, in its sole discretion, may deem necessary or appropriate in
furtherance of the exercise of the aforesaid powers. Nothing herein contained,
however, shall be deemed to require or impose any duty upon Pledgee to exercise
any of the rights or powers granted herein.

              c. If Pledgor fails to perform any agreement contained herein,
Pledgee may itself perform, or cause performance of, such agreement, and the
expenses of Pledgee incurred in connection therewith shall be payable by Pledgor
in accordance with Section 11 hereof.

              d. The foregoing rights and powers granted to Pledgee, and the
foregoing power of attorney, shall be fully binding upon any Person who shall
acquire any beneficial interest in any of the Pledged Interests.

         Section 7. Remedies Upon Default. Upon any Event of Default:

              a. Pledgee may, without any notice to Pledgor of the occurrence of
an Event of Default, exercise in respect of the Pledged Collateral, in addition
to the other rights and remedies provided for herein or otherwise available to
Pledgee, all the rights and remedies of a secured party under the Code in effect
at that time, and Pledgee may also, without notice except as specified below,
sell the Pledged Collateral or any part thereof in one or more parcels at public
or private sale, at any exchange, broker's board or at any of Pledgee's offices
or elsewhere, for cash, on credit or for future delivery, and upon such other
terms as Pledgee may deem commercially reasonable. Pledgor agree that, to the
extent notice of sale shall be required by law, at least five (5) business days
notice to Pledgor of the time and place of any public sale or the time after
which any private sale is to be made shall constitute reasonable notification.
Pledgee shall not be obligated to make any sale of Pledged Collateral regardless
of notice of sale having been given. Pledgee may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor, and
such sale may, without further notice, be made at the time and place to which it
was so adjourned.

              b. Pledgee may transfer all or any part of the Pledged Collateral
into Pledgee's name or the name of its nominee or nominees.

              c. Any Pledged Collateral or proceeds thereof held by Pledgee as
Pledged Collateral and all proceeds thereof received by Pledgee in respect of
any sale of, collection from or other realization upon all or any part of the
Pledged Collateral may, in the discretion of Pledgee, be held by Pledgee as
collateral for, or then or at any time thereafter, be applied (after payment of
any amounts payable to Pledgee pursuant to Section 11 hereof), in whole or in
part by Pledgee for the benefit of Pledgor, against all or any part of the
Obligations and in such order as Pledgee shall elect. Any surplus of such
Pledged Collateral or proceeds thereof held by Pledgee and remaining after
payment or satisfaction in full of all of the Obligations and the

                                       2
<PAGE>

expenses referred to in Section 11 hereof shall be delivered or paid over to
Pledgor or to whomsoever may be lawfully entitled to receive such surplus.

              d. Each right, power and remedy of Pledgee provided for in this
Agreement or the Note or now or hereafter existing at law or in equity or by
statute shall be cumulative and concurrent and shall be in addition to every
other such right, power or remedy. The exercise or beginning of the exercise by
Pledgee of any one or more of the rights, powers or remedies provided for in
this Agreement or the Note or now or hereafter existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise by
Pledgee of all such other rights, powers or remedies, and no failure or delay on
the part of Pledgee to exercise any such right, power or remedy shall operate as
a waiver thereof.

         Section 8. Covenants, Representations and Warranties. In connection
with the transactions contemplated by this Agreement, and knowing that Pledgee
is and shall be relying hereon, the Pledgor hereby covenants, represents and
warrants that:

              a. it is a duly formed corporation under the laws of the State of
Colorado, validly existing and in good standing under the laws of the State of
Colorado, and has full power and authority to execute this Agreement and to
perform the obligations and carry out the duties imposed upon it by this
Agreement.

              b. The execution and delivery of this Agreement by Pledgor, and
the performance and consummation of the transaction contemplated hereby on the
part of Pledgor (i) do not and will not conflict with, violate, or constitute a
default (or a condition or event which, after notice or lapse of time or both,
would constitute such a default) under any provision of the organizational
documents of Pledgor or any contractual obligation of Pledgor including, without
limitation, any obligations in connection with the Construction Loan; (ii) does
not and will not require the consent or approval of any governmental authority
or other person or entity except for consents and approvals already obtained.

              c. Pledgor is, and at all times will be, the only record and
beneficial owner of the Pledged Collateral, and Pledgor has not and shall not
assign or otherwise encumber any portion or all of the Pledged Collateral to or
for the benefit of any other party or consent or agree to the taking of any
action by any third party, other than the first priority pledge to the Bank
under the Construction Loan.

              d. Pledgor is not in default under the Construction Loan and
Pledgor is not aware of any event or circumstance which, with the passage of
time or delivery of notice, shall constitute a default under the Construction
Loan. Pledgor shall not create, permit or suffer to be created or permitted any
default under the Construction Loan and shall make all payments due thereunder,
whether at maturity or otherwise, in a timely manner.

              e. Pledgor shall not withdraw any funds from the Account prior to
payment in full of all Obligations or conversion of the Note as provided in the
Note and shall, in accordance with the terms of this Agreement and the terms of
the Construction Loan, maintain unrestricted cash deposits in the Account in the
name of Pledgor in an aggregate amount of not less than $350,000.00.

              f. If payment for a Cost Overrun (as defined below) will be
satisfied by withdrawal or use of funds from the Account, Pledgor shall obtain
the prior written approval from Pledgee before allowing or approving any such
Cost Overrun. A "COST OVERRUN" for purposes

                                       3
<PAGE>

of this Section 8.f. shall be defined as any change order or modification of the
construction contract(s) for the Project that would cause the cost of
construction of the Project to exceed the proceeds of the Construction Loan
(after deduction of all costs, fees and charges of any and all kinds in
connection with obtaining and continuing the Construction Loan). Pledgee agrees
to use commercially reasonable judgment with respect to his decision to approve
such Cost Overruns; provided, however, that if at anytime the Account has less
than $200,000, then Pledgee's decision to approve such Cost Overruns shall be in
his sole and absolute discretion.

              g. from time to time hereafter Pledgor shall take any and all such
further action, and shall execute and deliver any and all such further documents
or instruments, as Pledgee may request in order to accomplish the purposes of
this Agreement, in order to enable Pledgee to exercise any of its rights
hereunder; and

              h. Pledgor shall indemnify and hold harmless Pledgee from and
against any and all claims, damages, losses, liabilities, costs and expenses
(including reasonable attorneys' fees) incurred by or assessed against Pledgee
arising out of or in connection with any breach or violation of any of the
covenants, representations or warranties made by Pledgor in this Agreement.

         Section 9. Transfers and Other Liens; Additional Interests. Pledgor
agrees, so long as any of the Obligations are outstanding, not to:

              a. sell or otherwise dispose of, or grant any option or similar
right with respect to, the Pledged Collateral; or

              b. create or permit to exist any lien, security interest or other
charge or encumbrance, other than the first priority pledge to the Bank under
the Construction Loan, upon or with respect to the Pledged Collateral.

         Section 10. Return of Pledged Interests; Revival of Subject
Obligations. Pledgee shall release its security interest hereunder and return
the Pledged Collateral to the Pledgor at such time as all Obligations have been
paid in full in cash or converted as provided in the Note. If any payment
applied by the Pledgee to the Obligations is thereafter set aside, recovered,
rescinded or required to be returned for any reason (including, without
limitation, the bankruptcy, insolvency or reorganization of Pledgor), the
Obligations to which such payment was applied shall for the purposes of this
Agreement be deemed to have continued in existence, notwithstanding such
application, and this Agreement shall be enforceable as to such Obligations as
fully as if such application had never been made, notwithstanding the surrender
of any Note, the return of any of the Pledged Collateral or cancellation of any
instrument or document.

         Section 11. Fees and Expenses of Pledgee. All fees and expenses
incurred by Pledgee (including but not limited to reasonable attorneys' fees) in
connection with the preparation, performance and enforcement of this Agreement,
the receipt of the Pledged Collateral hereunder from time to time, and any
actual or attempted sale or other disposition of the Pledged Collateral
hereunder, shall be reimbursed to Pledgee by Pledgor on demand, or, at Pledgee's
option, such expenses may be added to the Obligations.

         Section 12. Jurisdiction, Venue, Service of Process. ANY LEGAL ACTION
OR PROCEEDING WITH RESPECT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN THE

                                       4
<PAGE>

COURTS OF THE STATE OF COLORADO, DENVER COUNTY OR OF THE UNITED STATES OF
AMERICA FOR THE DISTRICT OF COLORADO.

         Section 13. Jury Trial Waiver. PLEDGOR AND PLEDGEE HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF PLEDGOR OR PLEDGEE
RELATING TO THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR PLEDGEE
ENTERING INTO THIS AGREEMENT.

         Section 14. Notices. Any notice hereunder to the Pledgor may be given
in the manner and with the same effect as provided in Section 12.5 of the Note.
Any notice hereunder to the Pledgee shall also be given in the manner and with
the same effect as provided in said Section 12.5.

         Section 15. Survival. All warranties, representations and covenants
made by the Pledgor herein or in any certificate or other instrument delivered
by the Pledgor under this Agreement or under the Note shall be considered to
have been relied upon by Pledgee and shall survive the execution and delivery of
this Agreement. All statements in any such certificate or other instrument shall
constitute warranties and representations by the Pledgor hereunder.

         Section 16. Amendments and Waivers. Neither this Agreement nor any term
hereof may be changed, waived, discharged or terminated except by an instrument
in writing signed by the party against which enforcement of such change, waiver,
discharge or termination is sought.

         Section 17. Binding Effect. This Agreement shall (i) remain in full
force and effect until the indefeasible payment or satisfaction in full of the
Obligations, (ii) be binding upon Pledgor, its permitted transferees,
representatives, successors and assigns, and (iii) inure, together with the
rights and remedies of Pledgee hereunder, to the benefit of Pledgee and its
permitted transferees, representatives, successors and assigns. Without limiting
the generality of the foregoing clause (iii), Pledgee may assign or otherwise
transfer this Agreement together with the Note to any other persons, and such
other persons shall thereupon become vested with all the benefits in respect
thereof granted to Pledgee herein or otherwise. Upon the indefeasible payment or
satisfaction in full of the Obligations, (x) Pledgor shall be entitled to the
return, upon its request and at its expense, of such portion of the balance in
the Account as shall not have been required for the repayment of all the
Obligations in full, and (y) this Agreement shall terminate and be of no further
force or effect.

         Section 18. Severability. If for any reason any provision or provisions
hereof are determined to be invalid and contrary to any existing or future law,
such invalidity shall not impair the operation of or affect those portions of
this Agreement which are valid.

         Section 19. Governing Law; Terms. This Agreement shall be governed by,
and construed in accordance with, the internal laws of the State of Colorado
(without giving effect to principles of conflicts of law).

         Section 20. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall constitute an original, and together shall
constitute one and the same Agreement.

               [Remainder of this page intentionally left blank.]

                                       5
<PAGE>

         IN WITNESS WHEREOF, Pledgor has caused this Agreement to be executed
and delivered by it, personally, as of the date first set forth above.

                                    PLEDGEE:

                                    ------------------------------------
                                    Michael S. Smith, Individually

                                    PLEDGOR:

                                    AspenBio, Inc.,
                                    a Colorado corporation

                                    By:
                                         -----------------------------------
                                    Name:
                                          ----------------------------------
                                    Title:
                                           ---------------------------------

FirstBank of Tech Center hereby acknowledges receipt of this Pledge Agreement
and, subject to the rights of Bank to the Pledged Collateral pursuant to the
Construction Loan, agrees to hold the Pledged Collateral in accordance with the
terms of this Pledge Agreement and to comply with the instructions set forth in
this Pledge Agreement relating to disposition of the funds in the Account
without the necessity of further consent by Pledgor. Upon the release of Bank's
first priority lien and security interest in the Account pursuant to the
Construction Loan, Bank agrees to execute all necessary documents, recordings or
filings as may be necessary or desirable to release Bank's first priority lien
and security interests in the Account.

Dated:                              FirstBank of Tech Center
       ------------------------
                                    By:
                                        ---------------------------------------
                                    Name:
                                          -------------------------------------
                                    Title:
                                           ------------------------------------<PAGE>

                                                                EXHIBIT 10.18(c)

         The securities represented by this Warrant and issuable upon exercise
hereof have not been registered under the United States Securities Act of 1933,
as amended (the "1933 Act"), or under the provisions of any applicable state
securities laws, but have been acquired by the registered holder hereof for
purposes of investment and in reliance on statutory exemptions under the 1933
Act, and under any applicable state securities laws. These securities and the
securities issued upon exercise hereof may not be sold, pledged, transferred or
assigned, nor may this Warrant be exercised, except in a transaction which is
exempt under the provisions of the 1933 Act and any applicable state securities
laws or pursuant to an effective registration statement.

               VOID AFTER 5:00 P.M. MOUNTAIN TIME ON JULY 5, 2005

               WARRANT TO PURCHASE 275,000 SHARES OF COMMON STOCK

                                 ASPENBIO, INC.

No. W-17

         FOR VALUE RECEIVED, AspenBio, Inc. (the "Company"), a Colorado
corporation with its principal offices located at 8100 Southpark Way, Bldg. B-1,
Littleton, CO 80120, hereby certifies that Michael Smith, whose address is c/o
of The Kaitar Foundation, 1660 Lincoln Street, Suite 1420, Denver, CO 80264 (the
"Holder") is entitled, subject to the provisions of this Warrant, to purchase
from the Company, at any time, or from time to time during the period commencing
on the date hereof and expiring at 5:00 p.m. Mountain Time, on July 5, 2005 (the
"Expiration Date"), up to 275,000 fully paid and non-assessable shares of the
Company's Common Stock (the "Warrant Stock") at a price of $1.50 per share (the
"Exercise Price"). The number of shares of Warrant Stock and the Exercise Price
may be adjusted from time to time as hereinafter set forth.

         The Holder agrees with the Company that this Warrant is issued, and all
the rights hereunder shall be held subject to, all of the conditions,
limitations and provisions set forth herein.

         1. Exercise of Warrant.

                  1.1 Exercise Procedures. Subject to the limitations set forth
below in this Section 1 and in Section 6 hereof, this Warrant may be exercised
in whole or in part, during the period expiring at 5:00 p.m. Mountain Time on
the Expiration Date or, if such day is a day on which banking institutions in
Denver, Colorado are authorized by law to close, then on the next succeeding day
that shall not be such a day, by presentation and surrender of this Warrant to
the Company at its principal office, or at the office of its transfer agent, if
any, with the Warrant Exercise Form attached hereto duly executed and
accompanied by payment (either in cash or by certified or official bank check,
payable to the order of the Company) of the Exercise Price for

<PAGE>

the number of shares specified in such form and instruments of transfer, if
appropriate, duly executed by the Holder or his or her duly authorized attorney.
As soon as practicable after each such exercise of the Warrants the Company
shall issue and deliver to the Holder a certificate or certificates for the
Warrant Stock, registered in the name of the Holder. If this Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder thereof to purchase the balance of the shares purchasable hereunder. Upon
receipt by the Company of this Warrant, together with the Exercise Price, at its
office, or by the transfer agent of the Company, if any, at its office, in
proper form for exercise, the Holder shall be deemed to be the holder of record
of the shares of Warrant Stock issuable upon such exercise, notwithstanding that
the stock transfer books of the Company shall then be closed or that
certificates representing such shares of Warrant Stock shall not then be
actually delivered to the Holder. The Holder shall pay any and all documentary,
stamp or similar issue or transfer taxes and fees payable in respect of the
issue or delivery of shares of Warrant Stock on exercise of this Warrant.

         1.2 Conversion Right.

         The Holder shall have the right (the "Conversion Right") to convert
this Warrant into shares of the Company's Common Stock as provided in this
Section 1.2 at any time or from time to time prior to the Expiration Date.

                  a. Upon exercise of the Conversion Right with respect to a
particular number of shares of Warrant Stock (the "Conversion Shares"), the
Company shall deliver to the Holder, without payment by the Holder of any
Exercise Price or any cash or other consideration, that number of shares equal
to the quotient obtained by dividing the Net Value (as hereinafter defined) of
the Conversion Shares by the Current Market Price (as hereinafter defined) of a
single Share, determined in each case as of the close of business on the
Conversion Date (as hereinafter defined). The "Net Value" of the Conversion
Shares shall be determined by subtracting the Exercise Price of one share from
the Current Market Price of one share and multiplying the remainder by the
number of Warrants being converted. No fractional shares shall be issuable upon
exercise of the Conversion Right, and if the number of shares to be issued in
accordance with the foregoing formula is other than a whole number, the Company
shall pay to the Holder the net amount in cash equal to the Current Market Price
of the resulting fractional share.

                  b. The Conversion Right may be exercised by the Holder by the
surrender of the Warrant at the principal office of the Company or at the office
of the Company's transfer agent, if any, together with a written statement
specifying that the Holder thereby intends to exercise the Conversion Right and
indicating the number of shares of Warrant Stock subject to the Warrant which
are being surrendered (referred to in subparagraph 1.2(a) above as the
Conversion Shares) in exercise of the Conversion Right. Such conversion shall be
effective upon receipt by the Company of the Warrant, or on such later date as
is specified therein (the "Conversion Date"), but not later than the Expiration
Date. Certificates for the shares issuable upon exercise of the Conversion
Right, together with a check in payment of any fractional amount and, in the
case of a partial exercise a new Warrant evidencing the Warrant Stock

                                       2
<PAGE>

remaining subject to the Warrant, shall be issued as of the Conversion Date and
shall be delivered to the Holder within seven days following the Conversion
Date.

                  c. The "Current Market Price" shall be determined as follows:

                           (1) If the Common Stock is listed on a national
securities exchange or admitted to unlisted trading privileges on such an
exchange or quoted on either the National Market System or the Small Cap Market
of the automated quotation service operated by The Nasdaq Stock Market, Inc.
("Nasdaq"), the current value shall be the last reported sale price of that
security on such exchange or system on the day for which the current market
price is to be determined or, if no such sale is made on such day, the average
of the highest closing bid and lowest asked price for such day on such exchange
or system; or

                           (2) If the Common Stock is not so listed or quoted or
admitted to unlisted trading privileges, the Current Market Value shall be the
average of the last reported highest bid and lowest asked prices quoted on the
Nasdaq Electronic Bulletin Board, or, if not so quoted, then by the National
Quotation Bureau, Inc. on the last business day prior to the day for which the
Current Market Price is to be determined; or

                           (3) If the Common Stock is not so listed or quoted or
admitted to unlisted trading privileges and bid and asked prices are not
reported, the Current Market Price shall be determined in such reasonable manner
as may be prescribed in good faith from time to time by the Board of Directors
of the Company.

         2. Fractional Shares. The Company shall not be required to issue a
fractional share upon the exercise of this Warrant, and except as provided in
Section 1.2, the aggregate number of shares issuable will be rounded up or down
to the nearest full share.

         3. Limitation on Transfer. Subject to the provisions of Sections 6 and
7 hereof, any assignment or transfer of this Warrant shall be made by
presentation and surrender of this Warrant to the Company at its principal
office or at the office of its transfer agent, if any, accompanied by a duly
executed Assignment Form, provided that the transfer complies with Section 7 of
this Agreement. Upon the presentation and surrender of these items to the
Company, the Company, at its sole expense, shall execute and deliver to the new
Holder a new Warrant, in the name of the new Holder as named in the Assignment
Form, and the Warrant presented or surrendered shall at that time be cancelled.

         4. Rights of the Holder. The Holder shall not, by virtue hereof, be
entitled to any rights of a shareholder in the Company, either at law or in
equity, and the rights of the Holder are limited to those expressed in this
Warrant.

         5. Anti-Dilution Provisions.

                  5.1 Adjustment for Recapitalization. If the Company shall at
any time subdivide all its outstanding shares of Common Stock (or other
securities at the time receivable

                                       3
<PAGE>

upon the exercise of the Warrant) by recapitalization, reclassification or
split-up thereof, or if the Company shall declare a stock dividend or distribute
shares of Common Stock to all of its stockholders without receipt of cash
payment or other valid consideration, the number of shares of Common Stock
subject to this Warrant immediately prior to such subdivision, dividend or
distribution shall be proportionately increased, and if the Company shall at any
time combine the outstanding shares of Common Stock by recapitalization,
reclassification or combination thereof, the number of shares of Common Stock
subject to this Warrant immediately prior to such combination shall be
proportionately decreased. Any such adjustment and adjustment to the Exercise
Price pursuant to this Section 5.1 shall be effective at the close of business
on the effective date of such subdivision or combination or if any adjustment is
the result of a stock dividend or distribution then the effective date for such
adjustment based thereon shall be the record date therefor.

                           Whenever the number of shares of Warrant Stock
purchasable upon the exercise of this Warrant is adjusted, as provided in this
Section 5.1, the Exercise Price shall be adjusted to the nearest cent by
multiplying such Exercise Price immediately prior to such adjustment by a
fraction (x) the numerator of which shall be the number of shares of Warrant
Stock purchasable upon the exercise immediately prior to such adjustment, and
(y) the denominator of which shall be the number of shares of Warrant Stock so
purchasable immediately thereafter.

                  5.2 Adjustment for Reorganization, Consolidation, Merger, Etc.
In case of any reorganization of the Company (or any other corporation, the
securities of which are at the time receivable on the exercise of this Warrant)
or if the Company (or any such other corporation) shall consolidate with or
merge into another corporation or convey all or substantially all of its assets
to another corporation, then, and in each such case, the Holder of this Warrant
upon the exercise thereof as provided in Section 1 at any time after the
consummation of such reorganization, consolidation, merger or conveyance, shall
be entitled to receive, in lieu of the securities and property receivable upon
the exercise of this Warrant prior to such consummation, the securities or
property to which such Holder would have been entitled upon such consummation if
such Holder had exercised this Warrant immediately prior thereto; in each such
case, the terms of this Warrant shall be applicable to the securities or
property receivable upon the exercise of this Warrant after such consummation.

                  5.3 Adjustment for Issuances Below the Exercise Price. If the
Company shall issue any additional shares of Common Stock without consideration
or for a consideration per share less than $1.50 per share (as appropriately
adjusted for any combinations or divisions or recapitalizations affecting the
Common Stock after issuance of this Warrant), on such date, the Exercise Price
in effect immediately prior to each such issuance shall forthwith be adjusted,
as follows: (i) if such issuance occurs before December 31, 2002, to a price
equal to the issuance price (and if the issuance is without consideration, then
to $.01 per share); and (ii) if the issuance occurs during the period commencing
after December 31, 2002 and ending on the Expiration Date, to a price equal to a
price determined by multiplying the Exercise Price by a fraction, the numerator
of which shall be the sum of (w) the number of shares of Common Stock
outstanding immediately prior to such issuance and (x) the number of shares of
Common Stock that the

                                       4
<PAGE>

aggregate consideration received by the Company for such issuance would purchase
at $1.50 per share; and the denominator of which shall be the sum of (y) the
number of shares of Common Stock outstanding immediately prior to such issuance
and (z) the number of additional shares of such Common Stock. For purposes of
this Section 5.3, if any securities are issued by the Company which are
convertible into Common Stock or which may be exercised to acquire Common Stock,
then the aggregate maximum number of shares of Common Stock deliverable upon
conversion or exercise of the securities assuming the satisfaction of any
conditions to convertibility or exercisability, shall be deemed to have been
issued at the time such securities were issued. Upon the termination or
expiration of the convertibility or exercisability of any such securities, the
Exercise Price, to the extent in any way affected by or computed using such
securities, shall be recomputed to reflect the issuance of only the number of
shares of Common Stock actually issued upon the conversion or exercise of such
securities. Notwithstanding anything herein to the contrary, any shares of
Common Stock issued by the Company after the date hereof pursuant to: (i) the
exercise of options outstanding on the date hereof to purchase 200,000 shares of
Common Stock at an exercise price of $1.00 per share; (ii) the exercise of
options issued under the 2002 Stock Incentive Plan outstanding on the date
hereof to purchase 400,000 shares of Common Stock at an exercise price of $1.25
per share; (iii) the exercise of warrants outstanding on the date hereof to
purchase 830,000 shares of Common Stock at an exercise price of $1.00 per share;
or (iv) an agreement approved by the Company's Board of Directors between the
Company and a third party regarding such third party's development for or
together with or sale to Company of technology, know-how or intellectual
property which provides for the issuance of up to 5% of the issued and
outstanding Common Stock as of the date hereof, shall not result in any
adjustment of the Exercise Price pursuant to this Section 5.3.

         6. Restrictions on Exercise Imposed by Federal and State Securities
Laws. Holder hereby acknowledges that neither this Warrant nor any of the
securities that may be acquired upon exercise of this Warrant have been
registered under the 1933 Act or under the securities laws of any state. The
Holder acknowledges that, upon exercise of this Warrant, the securities to be
issued upon such exercise may come under applicable federal and state securities
(or other) laws requiring registration, qualification or approval of
governmental authorities before such securities may be validly issued or
delivered upon notice of such exercise. With respect to any such securities,
this Warrant may not be exercised by, and securities shall not be issued to, any
Holder in which such exercise would be unlawful. As a condition to exercise, the
Company may require the Holder to sign a representation letter confirming
compliance with this Agreement and applicable federal and state securities laws
and other applicable laws.

         7. Transfer to Comply With the 1933 Act. This Warrant and any Warrant
Stock may not be sold, transferred, pledged, hypothecated or otherwise disposed
of except as follows:

                  (1) To a person who, in the opinion of counsel to the Company,
is a person to whom this Warrant or the Warrant Stock may legally be transferred
without registration and without delivery of a current prospectus under the 1933
Act with respect thereto and then only against receipt of an agreement of such
person to comply with the provisions of this Section 7 with respect to any
resale or other disposition of such securities, or

                                       5
<PAGE>

                  (2) To any person upon delivery of a prospectus then meeting
the requirements of the 1933 Act relating to such securities and the offering
thereof for such sale or disposition, and thereafter to all successive
assignees.

         8. Legend. Unless the shares of Warrant Stock have been registered
under the 1933 Act, upon exercise of any of the Warrants and the issuance of any
of the shares of Warrant Stock, all certificates representing shares shall bear
on the face thereof substantially the following legend, as well as any other
legends necessary to comply with applicable state and federal laws for the
issuance of such shares:

                  The shares represented by this Certificate have not been
         registered under the United States Securities Act of 1933, as amended
         ("the 1933 Act") or any state securities laws and are "restricted
         securities" as that term is defined in Rule 144 under the 1933 Act. The
         shares may not be offered for sale, sold, pledged, hypothecated or
         otherwise transferred except pursuant to an effective registration
         statement under the 1933 Act or pursuant to an exemption from
         registration under the 1933 Act the availability of which is to be
         established to the satisfaction of the Company.

         9. Registration Rights. The Holder shall be entitled to certain
registration rights as set forth in the Investor Rights Agreement between the
Company and the Holder, dated as of the date hereof.

         10. Representations and Warranties of the Company.

                  a. Due Incorporation and Good Standing. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Colorado, with full and adequate power to carry on and conduct
its business as presently conducted, and is duly licensed or qualified in all
foreign jurisdictions wherein the failure to be so qualified or licensed would
reasonably be expected to have a material adverse effect on the business of the
Company.

                  b. Due Authorization. The Company has full right, power and
authority to enter into, execute and deliver this Warrant and to perform all of
its duties and obligations under this Warrant. The execution and delivery of
this Warrant will not, nor will the observance or performance of any of the
matters and things herein or therein set forth, violate or contravene any
provision of the law or the Company's bylaws or articles of incorporation. All
necessary and appropriate corporate action on the part of the Company has been
taken to authorize the execution and delivery of this Warrant.

                  c. Enforceability. This Warrant has been validly executed and
delivered by the Company and constitutes the legal, valid and binding obligation
of the Company enforceable against it in accordance with its respective terms,
subject to applicable bankruptcy, insolvency, reorganization or similar laws
relating to or affecting the enforcement of creditors' right and to the
availability of the remedy of specific performance.

                                       6
<PAGE>

                  d. Absence of Conflicts. The execution, delivery and
performance by the Company of this Warrant, and the transactions contemplated
hereby, do not constitute a breach or default, or require consents under, any
agreement, permit, contract or other instrument to which the Company is a party,
or by which the Company is bound, or to which any Company assets are subject, or
any judgment, order, writ, decree, authorization or license to which the
Company, or the assets of the Company are bound or subject to, or any rule,
regulations or statues and will not result in the creation of any lien upon any
of the assets of the Company.

                  e. Issuance Upon Exercise. The Company shall reserve an
adequate number of shares of Common Stock for exercise of this Warrant. Upon
exercise of this Warrant upon the terms and conditions of this Warrant, the
Warrant Stock shall be validly issued, fully paid and nonassessable.

         11. Notices. All notices required hereunder shall be in writing and
shall be deemed given when sent by facsimile (receipt confirmed electronically),
delivered personally, within three days after mailing when mailed by certified
or registered mail, return receipt requested or within one day after sent by a
reputable overnight carrier, at the address of such party as set forth on the
first page, or at such other address of which the Company or Holder has been
advised by notice hereunder.

         12. Applicable Law. This Warrant is issued under and shall for all
purposes be governed by and construed in accordance with the laws of the State
of Colorado.

                                       7
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed on
its behalf, in its corporate name, by its duly authorized officer, all as of the
day and year first above written.

                                    ASPENBIO, INC., a Colorado corporation

Dated:                              By:
       --------------                  -----------------------------------------
                                                   Authorized Officer

<PAGE>

                              WARRANT EXERCISE FORM

         The undersigned hereby irrevocably elects to exercise the within
Warrant to the extent of purchasing _________ shares of AspenBio, Inc., a
Colorado corporation, and hereby makes payment of $__________ in payment
therefor. The undersigned understands that exercise of the within Warrant is
subject to, among other things, the limitations provided in Section 1 and
compliance with Section 6 of the within Warrant.

                                    ------------------------------
                                    Signature

                                    ------------------------------
                                    Social Security or Taxpayer
                                    Identification Number

                                    ------------------------------
                                    Date

<PAGE>

                                 ASSIGNMENT FORM

         FOR VALUE RECEIVED, _______________________, hereby sells, assigns and
transfers unto

         Name:
              -----------------------------------------------------------
                           (Please type or print in block letters)

         Address:
                  -------------------------------------------------------

the right to purchase Common Stock of AspenBio, Inc. represented by this Warrant
to the extent of ____ Shares as to which such right is exercisable and does
hereby irrevocably constitute and appoint _________________________ Attorney to
transfer the same on the books of the Company with full power of substitution in
the premises. The undersigned understands that assignment of this Warrant is
subject to compliance with Section 7 of the Warrant and the Assignee's
acknowledgement of the provisions and restrictions of the Warrant.

         Signature:                                 Dated:
                    ------------------------------         ---------------------

Notice:           The signature on this Assignment must correspond with the name
                  as it appears upon the face of this Warrant in every
                  particular, without alteration or enlargement or any change
                  whatever.

<PAGE>

                        WARRANT CONVERSION EXERCISE FORM

TO:      AspenBio, Inc.

         Pursuant to Section 1.2 of the Warrant Agreement, the Holder hereby
         irrevocably elects to convert Warrants into shares of the Company's
         Common Stock. The undersigned understands that exercise of the Warrant
         is subject to, among other things, the limitations provided in Section
         1 and compliance with Section 6 of the Warrant. A conversion
         calculation is attached hereto.

         The undersigned requests that certificates for such shares be issued as
         follows:

         Name:
              ------------------------------------------------------------------

         Address:
                     -----------------------------------------------------------

         Deliver to:
                     -----------------------------------------------------------

         and that a new Warrant Certificate for the balance remaining of the
         Warrants, if any, subject to the Warrant be registered in the name of,
         and delivered to, the undersigned at the address stated above.

         Signature:                                        Date:
                    ------------------------------------         ---------------

<PAGE>

                        CALCULATION OF WARRANT CONVERSION

                       Net Value of the Conversion Shares
                              Current Market Price

Current Market Price Per Share      $
                                     -------------------------

Net Value of the Conversion Shares (Current Market Price Per Share - Exercise
         Price) Number of Shares of Warrant Stock

                                    $                  - $              =
                                     -----------------    -------------   ------

                                                       x                =
                                    ------------------    -------------   ------

Shares to be Issued
                                    ----------------------------

Cash in Lieu of Fractional Shares   $                           (1)
                                     ---------------------------

(1)      AspenBio, Inc. to pay for fractional shares in cash @ Current Market
         Price Per Share.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]