Document:

MORTGAGE LOAN PURCHASE AGREEMENT

      THIS MORTGAGE LOAN PURCHASE AGREEMENT dated as of December 30, 2004 by and
between FIRST  TENNESSEE BANK NATIONAL  ASSOCIATION  (the  "Seller"),  and FIRST
HORIZON ASSET SECURITIES INC., a Delaware corporation (the "Purchaser").

      WHEREAS,  the Seller owns certain Mortgage Loans (as hereinafter  defined)
which  Mortgage Loans are more  particularly  listed and described in Schedule A
attached hereto and made a part hereof.

      WHEREAS, the Seller and the Purchaser wish to set forth the terms pursuant
to which the Mortgage Loans,  excluding the servicing rights thereto,  are to be
sold by the Seller to the Purchaser.

      WHEREAS,  First  Tennessee  Mortgage  Services,  Inc.  ("FTMSI")  owns the
servicing rights to the Mortgage Loans pursuant to the Servicing Rights Transfer
and Subservicing Agreement (Home Equity Loans) (as hereinafter defined).

      WHEREAS,  the  Seller has  engaged  FTMSI to service  the  mortgage  Loans
pursuant  to  the  Servicing  Agreement  (Home  Equity  Loans)  (as  hereinafter
defined).

      NOW, THEREFORE, in consideration of the foregoing, other good and valuable
consideration,  and the mutual terms and covenants contained herein, the parties
hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      Agreement:  This  Mortgage  Loan  Purchase  Agreement,  as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof.

      Closing Date: December 30, 2004.

      Cooperative Corporation: The entity that holds title (fee or an acceptable
leasehold  estate)  to the  real  property  and  improvements  constituting  the
Cooperative  Property  and  which  governs  the  Cooperative   Property,   which
Cooperative  Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

      Coop Shares: Shares issued by a Cooperative Corporation.

      Cooperative  Loan:  Any  Mortgage  Loan  secured  by  Coop  Shares  and  a
Proprietary Lease.

      Cooperative  Property:  The real  property and  improvements  owned by the
Cooperative  Corporation,  including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

      Cooperative  Unit:  A single  family  dwelling  located  in a  Cooperative
Property.

<PAGE>

      Custodian:  First Tennessee Bank National Association,  and its successors
and assigns, as custodian under the Custodial Agreement dated as of December 30,
2004 by and among The Bank of New York,  as  trustee,  First  Horizon  Home Loan
Corporation, as master servicer, and the Custodian.

      Cut-Off Date: December 1, 2004.

      Delay  Delivery  Mortgage  Loans:  The  Mortgage  Loans for which all or a
portion of a related  Mortgage  File is not  delivered  to the Trustee or to the
Custodian  on its  behalf on the  Closing  Date.  The  number of Delay  Delivery
Mortgage Loans shall not exceed 25% of the aggregate number of Mortgage Loans as
of the Closing Date.

      FHHLC: First Horizon Home Loan Corporation,  a Kansas corporation,  in its
capacity as the seller of the Mortgage Loans pursuant to MLPA I.

      GAAP:  Generally applied  accounting  principals as in effect from time to
time in the United States of America.

      MLPA I: The mortgage  loan  purchase  agreement,  dated as of December 30,
2004,  between  First  Horizon  Home  Loan  Corporation,  as  seller,  and First
Tennessee Bank National Association,  as purchaser,  as related to the transfer,
sale and conveyance of the Mortgage Loans.

      MERS:  Mortgage  Electronic  Registration  Systems,  Inc.,  a  corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

      MERS Mortgage  Loan:  Any Mortgage Loan  registered  with MERS on the MERS
System.

      MERS  (R)  System:   The  system  of  recording   transfers  of  mortgages
electronically maintained by MERS.

      MIN: The Mortgage Identification Number for any MERS Mortgage Loan.

      MOM Loan:  Any  Mortgage  Loan as to which  MERS is  acting as  mortgagee,
solely as nominee for the  originator of such  Mortgage Loan and its  successors
and assigns.

      Mortgage: The mortgage, deed of trust or other instrument creating a first
lien on the property securing a Mortgage Note.

      Mortgage File: The mortgage  documents listed in Section 3.1 pertaining to
a particular Mortgage Loan and any additional  documents required to be added to
the Mortgage File pursuant to this Agreement.

      Mortgage Loans: The mortgage loans  transferred,  sold and conveyed by the
Seller to the Purchaser, pursuant to this Agreement.

      Mortgage   Note:   The  original   executed  note  or  other  evidence  of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

                                       2
<PAGE>

      Mortgaged  Property:  The  underlying  property  securing a Mortgage Loan,
which,  with  respect to a  Cooperative  Loan,  is the  related  Coop Shares and
Proprietary Lease.

      Mortgagor: The obligor(s) on a Mortgage Note.

      Proprietary  Lease:  With  respect  to any  Cooperative  Unit,  a lease or
occupancy  agreement  between a Cooperative  Corporation and a holder of related
Coop Shares.

      Purchase Price: $235,257,077.58.

      Purchaser: First Horizon Asset Securities Inc., a Delaware corporation, in
its capacity as purchaser of the Mortgage Loans from the Seller pursuant to this
Agreement.

      Recognition Agreement:  With respect to any Cooperative Loan, an agreement
between the  Cooperative  Corporation  and the  originator of such Mortgage Loan
which establishes the rights of such originator in the Cooperative Property.

      Security  Agreement:  The security agreement with respect to a Cooperative
Loan.

      Seller: First Tennessee Bank National Association,  and its successors and
assigns,  in its  capacity  as seller of the  Mortgage  Loans  pursuant  to this
Agreement.

      Servicing  Agreement  (Home Equity Loans):  The servicing  agreement (home
equity loans),  dated as of December 1, 2004 by and between First Tennessee Bank
National  Association and its assigns,  as owner,  and First Tennessee  Mortgage
Services, Inc., as servicer.

      Servicing Rights Transfer and Subservicing  Agreement (Home Equity Loans):
The servicing  rights transfer and  subservicing  agreement (home equity loans),
dated as of December 1, 2004 by and between First Horizon Home Loan Corporation,
as transferor and subservicer,  and First Tennessee Mortgage Services,  Inc., as
transferee and servicer.

      Trustee:  The Bank of New  York and its  successors  and,  if a  successor
trustee is appointed hereunder, such successor.

                                   ARTICLE II
                                PURCHASE AND SALE

      Section 2.1 Purchase Price. In consideration  for the payment to it of the
Purchase Price on the Closing Date, pursuant to written  instructions  delivered
by the Seller to the  Purchaser  on the  Closing  Date,  the Seller  does hereby
transfer,  sell and convey to the Purchaser on the Closing Date, but with effect
from the Cut-off Date,  without recourse,  (i) all right,  title and interest of
the Seller in the Mortgage Loans,  excluding the servicing  rights thereto,  and
all property securing such Mortgage Loans,  including all interest and principal
received or  receivable  by the Seller with respect to the Mortgage  Loans on or
after the Cut-off Date and all interest and  principal  payments on the Mortgage
Loans  received on or prior to the Cut-off  Date in respect of  installments  of
interest and principal due thereafter,  but not including  payments of principal
and  interest  due and  payable on the  Mortgage  Loans on or before the Cut-off
Date,  (ii) all of the  Seller's  rights as  Purchaser  under MLPA I  including,
without  limitation,  the rights of the Seller to require FHHLC to cure breaches
of representations and warranties with respect to the Mortgage Loans as provided
thereunder,  (iii) all right,  title and interest of the Seller in, to and under
the Servicing  Agreement,  and (iv) all proceeds from the  foregoing.  Items (i)
through (iv) in the preceding  sentence are herein  referred to  collectively as
"Mortgage Assets."

                                       3
<PAGE>

      Section 2.2 Timing.  The sale of the Mortgage Assets  hereunder shall take
place on the Closing Date.

                                  ARTICLE III
                            CONVEYANCE AND DELIVERY

      Section 3.1 Delivery of Mortgage  Files.  In connection  with the transfer
and  assignment  set forth in Section  2.1 above,  the Seller has  delivered  or
caused to be delivered to the Trustee or to the  Custodian on its behalf (or, in
the case of the Delay  Delivery  Mortgage  Loans,  will  deliver  or cause to be
delivered to the Trustee or to the  Custodian on its behalf  within  thirty (30)
days  following the Closing Date) the following  documents or  instruments  with
respect to each Mortgage Loan so assigned (collectively, the "Mortgage Files"):

            (a)   (1) the original Mortgage Note endorsed by manual or facsimile
                  signature in blank in the following form: "Pay to the order of
                  ________________,  without  recourse,"  with  all  intervening
                  endorsements  showing a complete chain of endorsement from the
                  originator  to the Person  endorsing  the Mortgage  Note (each
                  such endorsement being sufficient to transfer all right, title
                  and  interest  of the party so  endorsing,  as  noteholder  or
                  assignee thereof, in and to that Mortgage Note); or

                  (2)  with  respect  to any Lost  Mortgage  Note,  a lost  note
                  affidavit from the Seller  stating that the original  Mortgage
                  Note  was  lost  or  destroyed,  together  with a copy of such
                  Mortgage Note;

            (b)   except as provided  below and for each  Mortgage  Loan that is
                  not a MERS Mortgage Loan, the original  recorded Mortgage or a
                  copy of such Mortgage  certified by the Seller as being a true
                  and  complete  copy of the  Mortgage,  and in the case of each
                  MERS Mortgage Loan, the original Mortgage, noting the presence
                  of  the  MIN  of  the  Mortgage  Loans  and  either   language
                  indicating  that  the  Mortgage  Loan  is a MOM  Loan  if  the
                  Mortgage  Loan is a MOM Loan or if the Mortgage Loan was not a
                  MOM  Loan  at  origination,  the  original  Mortgage  and  the
                  assignment   thereof  to  MERS,  with  evidence  of  recording
                  indicated thereon,  or a copy of the Mortgage certified by the
                  public  recording  office  in  which  such  Mortgage  has been
                  recorded;

            (c)   in the case of a  Mortgage  Loan  that is not a MERS  Mortgage
                  Loan,  a duly  executed  assignment  of the  Mortgage in blank
                  (which   may  be   included   in  a  blanket   assignment   or
                  assignments),  together with,  except as provided  below,  all
                  interim  recorded  assignments  of such  mortgage  (each  such
                  assignment,   when  duly  and  validly  completed,  to  be  in
                  recordable form and sufficient to effect the assignment of and
                  transfer to the assignee thereof,  under the Mortgage to which
                  the  assignment  relates);   provided  that,  if  the  related
                  Mortgage  has not been  returned  from the  applicable  public
                  recording office,  such assignment of the Mortgage may exclude
                  the information to be provided by the recording office;

                                       4
<PAGE>

            (d)   the  original  or  copies  of each  assumption,  modification,
                  written assurance or substitution agreement, if any;

            (e)   for any Mortgage Loan other than a Combo Mortgage Loan, either
                  the original or duplicate original title policy (including all
                  riders   thereto)  with  respect  to  the  related   Mortgaged
                  Property,  if  available,   provided  that  the  title  policy
                  (including  all riders  thereto) for any  Mortgage  Loan other
                  than a Combo  Mortgage  Loan will be  delivered  as soon as it
                  becomes  available,  and if the title policy is not available,
                  and  to the  extent  required  pursuant  to  the  Pooling  and
                  Servicing Agreement, a written commitment or interim binder or
                  preliminary  report of the title issued by the title insurance
                  or escrow company with respect to the Mortgaged Property, and

            (f)   in the  case  of a  Cooperative  Loan,  the  originals  of the
                  following documents or instruments:

                  (1)   The Coop Shares, together with a stock power in blank;

                  (2)   The executed Security Agreement;

                  (3)   The executed Proprietary Lease;

                  (4)   The executed Recognition Agreement;

                  (5)   The executed UCC-1 financing  statement with evidence of
                        recording  thereon  which  have been filed in all places
                        required  to perfect the  Seller's  interest in the Coop
                        Shares and the Proprietary Lease; and

                  (6)   Executed UCC-3 financing statements or other appropriate
                        UCC   financing   statements   required  by  state  law,
                        evidencing  a  complete  and  unbroken   line  from  the
                        mortgagee  to the Trustee  with  evidence  of  recording
                        thereon (or in a form suitable for recordation).

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

      Section 4.1 Representations and Warranties of the Seller.

            (a) The Seller hereby represents and warrants to the Purchaser,  the
Trustee and the Insurer, as of the date of execution and delivery hereof, that:

                  (1)   The  Seller  is duly  organized  as a  national  banking
                        association  and is validly  existing  under the laws of
                        the United States of America and is duly  authorized and
                        qualified to transact any and all business  contemplated
                        by this  Agreement  to be conducted by the Seller in any
                        state in which a  Mortgaged  Property  is  located or is
                        otherwise not required  under  applicable  law to effect
                        such  qualification  and, in any event, is in compliance
                        with the doing  business laws of any such state,  to the
                        extent  necessary  to ensure its ability to enforce each
                        Mortgage   Loan  and  to   perform   any  of  its  other
                        obligations  under this Agreement in accordance with the
                        terms thereof.

                                       5
<PAGE>

                  (2)   The Seller has the requisite power and authority to sell
                        each Mortgage Loan, and to execute, deliver and perform,
                        and  to  enter  into  and  consummate  the  transactions
                        contemplated  by this Agreement and has duly  authorized
                        by all  necessary  action on the part of the  Seller the
                        execution,  delivery and  performance of this Agreement;
                        and  this  Agreement,  assuming  the due  authorization,
                        execution  and  delivery  thereof  by the other  parties
                        thereto,   constitutes   a  legal,   valid  and  binding
                        obligation of the Seller, enforceable against the Seller
                        in  accordance  with  its  terms,  except  that  (a) the
                        enforceability  thereof  may be limited  by  bankruptcy,
                        insolvency,  moratorium,  receivership and other similar
                        laws  relating  to  creditors'  rights  generally  or of
                        creditors of  depository  institutions,  the accounts of
                        which are  insured  by the FDIC,  and (b) the  remedy of
                        specific  performance  and injunctive and other forms of
                        equitable  relief may be subject to  equitable  defenses
                        and to the  discretion  of the  court  before  which any
                        proceeding therefor may be brought.

                  (3)   The  execution  and  delivery of this  Agreement  by the
                        Seller,  the sale of the  Mortgage  Loans by the  Seller
                        under this Agreement,  the  consummation of any other of
                        the transactions contemplated by this Agreement, and the
                        fulfillment of or compliance  with the terms thereof are
                        in the  ordinary  course of  business  of the Seller and
                        will not (a) result in a material  breach of any term or
                        provision of the charter or by-laws of the Seller or (b)
                        materially  conflict with,  result in a material breach,
                        violation  or  acceleration  of, or result in a material
                        default  under,  the  terms of any  other  agreement  or
                        instrument to which the Seller is a party or by which it
                        may be bound, or (c) constitute a material  violation of
                        any  statute,  order  or  regulation  applicable  to the
                        Seller of any  court,  regulatory  body,  administrative
                        agency or governmental body having jurisdiction over the
                        Seller, other than such conflicts, breaches, violations,
                        accelerations  or defaults  which,  individually or on a
                        cumulative  basis,  would  not have a  material  adverse
                        effect on the  Seller and its  subsidiaries,  taken as a
                        whole,   or  the   consummation   of  the   transactions
                        contemplated by this Agreement; and the Seller is not in
                        breach or violation  of any material  indenture or other
                        material agreement or instrument, or in violation of any
                        statute,  order or regulation  of any court,  regulatory
                        body,  administrative agency or governmental body having
                        jurisdiction  over it  which  breach  or  violation  may
                        materially  impair  the  Seller's  ability to perform or
                        meet any of its obligations under this Agreement.

                  (4)   No litigation is pending or, to the best of the Seller's
                        knowledge,  threatened  against  the  Seller  that would
                        prohibit the  execution  or delivery of, or  performance
                        under, this Agreement by the Seller.

                  (b) The Seller  hereby  assigns,  transfers and conveys to the
                  Purchaser all of its rights with respect to the Mortgage Loans
                  including,   without   limitation,   the  representations  and
                  warranties of FHHLC made pursuant to MLPA I, together with all
                  rights  of the  Seller  to  require  FHHLC to cure any  breach
                  thereof  or to  repurchase  or  substitute  for  any  affected
                  Mortgage Loan in accordance with MLPA I.

                                       6
<PAGE>

      It is understood and agreed that the  obligation  under MLPA I of FHHLC to
cure,  repurchase or replace any Mortgage Loan as to which a breach has occurred
and is continuing shall constitute the sole remedy, which may be enforced solely
against  FHHLC and not the  Seller,  respecting  such  breach  available  to the
Purchaser on its behalf.

      The representations  and warranties  contained in this Agreement shall not
be construed  as a warranty or guaranty by the Seller as to the future  payments
by any Mortgagor.

      It is understood  and agreed that the  representations  and warranties set
forth in this Section 4.1 shall  survive the sale of the  Mortgage  Loans to the
Purchaser hereunder.

                                    ARTICLE V
                                  MISCELLANEOUS

      Section 5.1  Transfer  Intended as Sale.  It is the express  intent of the
parties  hereto that the  conveyance of the Mortgage  Loans by the Seller to the
Purchaser be, and be construed  as, an absolute sale thereof in accordance  with
GAAP and for  regulatory  purposes.  It is,  further,  not the  intention of the
parties that such  conveyances  be deemed a pledge  thereof by the Seller to the
Purchaser.  However,  in the  event  that,  notwithstanding  the  intent  of the
parties,  the  Mortgage  Loans are held to be the  property of the Seller or the
Purchaser,  respectively,  or if for any other reason this  Agreement is held or
deemed to create a security  interest in such  assets,  then (i) this  Agreement
shall be deemed to be a security  agreement  within the  meaning of the  Uniform
Commercial  Code of the State of Texas and (ii) the  conveyance  of the Mortgage
Loans provided for in this  Agreement  shall be deemed to be an assignment and a
grant by the  Seller  to the  Purchaser  of a  security  interest  in all of the
Mortgage Loans, whether now owned or hereafter acquired.

      The Seller and the Purchaser  shall,  to the extent  consistent  with this
Agreement,  take  such  actions  as may be  necessary  to ensure  that,  if this
Agreement were deemed to create a security  interest in the Mortgage Loans, such
security  interest would be deemed to be a perfected  security interest of first
priority under applicable law and will be maintained as such throughout the term
of the  Agreement.  The Seller and the  Purchaser  shall  arrange for filing any
Uniform Commercial Code continuation  statements in connection with any security
interest granted hereby.

      Section 5.2 Seller's Consent to Assignment. The Seller hereby acknowledges
the  Purchaser's  right to assign,  transfer  and convey all of the  Purchaser's
rights under this  Agreement to a third party and that the  representations  and
warranties  made by FHHLC to the Seller  pursuant to MLPA I will, in the case of
such  assignment,  transfer  and  conveyance,  be for the  benefit of such third
party. The Seller hereby consents to such assignment, transfer and conveyance.

      Section  5.3  Specific  Performance.  Either  party or its  assignees  may
enforce specific performance of this Agreement.

                                       7
<PAGE>

      Section 5.4 Notices.  All notices,  demands and requests that may be given
or that are  required  to be given  hereunder  shall  be sent by  United  States
certified mail,  postage prepaid,  return receipt  requested,  to the parties at
their respective addresses as follows:

                           If to the Purchaser:    4000 Horizon Way
                                                   Irving, Texas 75063
                                                   Attn: Larry P. Cole

                           If to the Seller:       165 Madison Avenue
                                                   Memphis, Tennessee 38103
                                                   Attn: Clyde A. Billings, Jr.

      Section 5.5 Choice of Law. This Agreement shall be construed in accordance
with and governed by the  substantive  laws of the State of Texas  applicable to
agreements  made and to be performed in the State of Texas and the  obligations,
rights and remedies of the parties hereto shall be determined in accordance with
such laws.

      Section  5.6  Acknowledgment  of  FHHLC.  FHHLC  hereby  acknowledges  the
provisions of this  Agreement,  including the duties of FHHLC created  hereunder
and the assignment of the  representations  and warranties  made by FHHLC to the
Seller pursuant to MLPA I.

      Section  5.7 Third Party  Beneficiaries.  The  benefits of this  Agreement
shall inure to the Insurer and the  Trustee,  their  respective  successors  and
assigns. The Insurer and the Trustee,  their respective  successors and assigns,
each in its own name and for its own interest and benefit,  shall be entitled to
enforce this Agreement, and each part and aspect hereof.

                                       8
<PAGE>

      IN WITNESS  WHEREOF,  the Purchaser and the Seller have caused their names
to be signed hereto by their respective officers thereunto duly authorized as of
the 30th day of December, 2004.

                             FIRST TENNESSEE BANK NATIONAL
                             ASSOCIATION, as Seller

                             By:
                                ---------------------------------------
                                Wade Walker
                                Senior Vice President

                             FIRST HORIZON ASSET SECURITIES INC., as Purchaser

                             By:
                                ---------------------------------------
                                Alfred Chang
                                Vice President

The foregoing agreement is hereby acknowledged and accepted as of the date first
above written.

FIRST HORIZON HOME LOAN CORPORATION, in its capacity as the seller pursuant to
MLPA I

By:___________________________________
   Terry McCoy
   Senior Vice President

<PAGE>

                                   SCHEDULE A

                              [BEGINS ON NEXT PAGE]

                      [Available Upon Request From Trustee]Exhibit 4.12  

THIS SENIOR SECURED PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAW, AND MAY BE OFFERED AND SOLD
ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE ACT OR THOSE LAWS OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 
 

SENIOR SECURED PROMISSORY NOTE    
    

	Principal Amount:	 	$635,342	 	June 4, 2004

        FOR
VALUE RECEIVED, IMCOR PHARMACEUTICAL CO., a Nevada corporation (hereinafter called "Issuer"), hereby promises to pay to the order of Xmark Fund, L.P. and its successors and assigns
(hereinafter called the "Holder"), at such address as the Holder may designate in writing to Issuer, the aggregate principal sum of SIX HUNDRED THIRTY FIVE THOUSAND THREE HUNDRED FORTY TWO DOLLARS
($635,342) in lawful money of the United States, without interest other than as specified in Section 6 below. 

        This
Senior Secured Promissory Note (the "Note") is one of the secured promissory notes referred to in that certain Exchange Agreement, dated as of even date hereof, by and among Issuer,
the Holder and Xmark Fund, Ltd. 

        1.    Payment of Principal. Prior to the Maturity Date (as defined below), subject to Section 5 below, the principal
amount of this Note shall be payable in installments (each an "Installment Date") as follows: (i) on the date of closing of the Financing (as defined below), Issuer shall pay One Hundred Forty
Nine Thousand Two Hundred Fifty Dollars ($149,250) of the principal amount of this Note to the Holder (the "Initial Installment Date") and (ii) on each Installment Date set forth below, Issuer
shall pay to the Holder the principal amount of this Note set forth opposite such Installment Date: 

	Installment Date
 
	 	Installment Amount

	August 2, 2004	 	$	14,925
	September 1, 2004	 	$	117,792
	October 1, 2004	 	$	117,792
	November 1, 2004	 	$	117,792
	December 1, 2004	 	$	117,791

If
any Installment Date is not a Business Day (as defined below), then such amount shall be due and payable on the Business Day next succeeding the original payment date and interest shall continue to
accrue on such amount until paid. As used herein, (i) "Financing" shall mean the financing described in the preliminary proxy statement Issuer filed with the Securities and Exchange Commission
(the "SEC") on April 30, 2004 pursuant to which Issuer proposes to raise up to a minimum of $10,000,000 (including the $1,987,505 of gross proceeds received by Issuer as of the date hereof in
connection with the closing of the first tranche of the Financing) and a maximum of $17,250,000 through the issuance and sale of its common stock, par value $0.001 per share, (ii) "Business
Day" shall mean a day, other than a Saturday or Sunday, on which commercial banks in New York are open for the general transaction of business and (iii) "Maturity Date" shall mean the earliest
to occur of: (A) December 1, 2004; (B) Issuer's receipt of an Acceleration Notice (as defined in Section 5) from Holder in accordance with Section 5 of this Note; or
(iii) an Event of Default (as defined in Section 5) specified in clauses (a), (b), (d), (e), (f) or (g) of Section 5 of this Note. 

Notwithstanding
anything contained in this Note to the contrary, the unpaid principal amount of this Note shall be due and payable in full on the Maturity Date. 

        2.    Prepayment; Reduction of Principal Amount of this Note.    Issuer may prepay this Note at any time in whole but
not in part; provided, however, Issuer shall give the Holder written notice at least five 

(5) days
prior to such prepayment (the date of prepayment is referred to herein as the "Prepayment Date"). Prior to the Maturity Date, Issuer shall be entitled to receive an aggregate
prepayment discount (the "Prepayment Discount") equal to $14,925 for each whole calendar month between the Prepayment Date and December 1, 2004. For the avoidance of doubt, Issuer shall not be
entitled to receive a Prepayment Discount if the Financing has not been fully consummated and Issuer has not received at least $10,000,000 in gross proceeds therefrom (including the $1,987,505 of
gross proceeds received by Issuer as of the date hereof in connection with the closing of the first tranche of the Financing) prior to July 19, 2004. For example, if Issuer provides the Holder
with at least five (5) days prior written notice that it is electing to prepay this Note in full on September 15, 2004, Issuer shall be obligated to pay the Holder the then outstanding
principal amount of this Note less the Prepayment Discount in an amount equal to $29,850. All payments made on account of this Note shall be applied first to the payment of any costs of enforcement
then due hereunder, second to the payment of accrued and unpaid interest then due hereunder, and the remainder, if any, shall be applied to the unpaid principal balance of this Note. 

        3.    Secured Obligation; Affirmation of Collateral    This Note and the indebtedness evidenced hereby are Obligations
(as defined in each of the Security Agreement, dated as of June 18, 2003 (the "General Security Agreement"), by and among Issuer, the Holder and Xmark Fund, Ltd. and the Patent and
Trademark Security Agreement, dated as of June 18, 2003 (the "IP Security Agreement" and together with the General Security Agreement, the "Security Agreements"), by and among Issuer, the
Holder and Xmark Fund, Ltd.) secured by the Security Agreements. Issuer hereby warrants and agrees that the liens granted under the Security Agreements are validly perfected first priority
liens securing all of the existing and future Obligations owing by Issuer to the Holder, whether direct or indirect, including without limitation Issuer's obligations under this Note. Issuer
acknowledges and agrees that the Security Agreements remain in full force and effect and that the Holder's rights and remedies thereunder are not intended to be limited by, and are not limited by,
this Note. 

        4.    Covenants.    Issuer agrees that, so long as any amount payable under this Note is outstanding, it shall: 

        (a)   not,
without the prior written consent of the Holder, create, incur, guarantee, issue, assume or in any manner become liable in respect of, any obligation (i) for
borrowed money, (ii) evidenced by bonds, debentures, notes, or other similar instruments, (iii) in respect of letters of credit or other similar instruments (or reimbursement obligations
with respect thereto), (iv) to pay the deferred purchase price of property or services, except trade payables arising in the ordinary course of business consistent with past practices,
(v) as lessee under capitalized leases, (vi) secured by a Lien (as defined in the Security Agreements) on any asset of Issuer, whether or not such obligation is assumed by Issuer and
(vii) of any other person or entity, other than indebtedness for borrowed money existing on the date of this Note ("Existing Indebtedness"); provided, however, Issuer shall not refinance,
re-borrow, modify, exchange, reclassify or otherwise amend any Existing Indebtedness without the prior written consent of the Holder; and 

        (b)   (i) furnish
to the Holder and its legal counsel with copies of all correspondence (within two (2) Business Days after sending or receiving any such
correspondence) from Issuer to the SEC or the staff of the SEC or from the SEC or the staff of the SEC to Issuer, in each case, concerning the Financing; and (ii) consult with the Holder and
its legal counsel prior to responding to any such correspondence from the SEC or the staff of the SEC concerning the Financing. 

        5.    Event of Default Defined; Acceleration of Maturity.    Any one or more of the following events shall constitute
an "Events of Default" (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order
of any court or any order, rule or regulation of any administrative or governmental body): 

        (a)   a
default in the payment of all or any part of the principal due under this Note, or the other secured promissory note issued pursuant to the Exchange Agreement, as and
when the same shall become due and payable, whether on an Installment Date, at maturity, by declaration as permitted 

hereunder,
upon acceleration or otherwise; provided, however, with respect to payments of principal due on the Installment Dates (other than the Initial Installment Date), Issuer shall be entitled to
one 10-day cure period to cure a payment default (for the avoidance of doubt, Issuer is not entitled to a 10-day cure period for each payment default on an Installment Date;
rather Issuer is entitled to only one 10-day cure period under this Note); 

        (b)   the
Financing shall not have been fully consummated and Issuer shall not have received gross proceeds therefrom of at least $10,000,000 (including the $1,987,505 of
gross proceeds received by Issuer as of the date hereof in connection with the closing of the first tranche of the Financing) prior to July 19, 2004; 

        (c)   any
Event of Default (as defined in the Security Agreements) shall have occurred under the Security Agreements; or 

        (d)   Issuer
shall have applied for or consented to the appointment of a custodian, receiver, trustee or liquidator, or other court-appointed fiduciary of all or a substantial
part of its properties; or a custodian, receiver, trustee or liquidator or other court appointed fiduciary shall have been appointed with or without the consent of Issuer; or Issuer is generally not
paying its debts as they become due by means of available assets or is insolvent, or has made a general assignment for the benefit of creditors; or Issuer files a voluntary petition in bankruptcy, or
a petition or an answer seeking reorganization or an arrangement with creditors or seeking to take advantage of any insolvency law, or an answer admitting the material allegations of a petition in any
bankruptcy, reorganization or insolvency proceeding or has taken action for the purpose of effecting any of the foregoing; or if, within sixty (60) days after the commencement of any proceeding
against Issuer seeking any reorganization, rehabilitation, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the Federal bankruptcy code or similar order under
future similar legislation, the appointment of any trustee, receiver, custodian, liquidator, or other court-appointed fiduciary of Issuer or of all or any substantial part of its properties, such
order or appointment shall not have been vacated or stayed on appeal or otherwise or if, within sixty (60) days after the expiration of any such stay, such order or appointment shall not have
been vacated; 

        (e)   Issuer
shall merge or consolidate with or into any other person or entity, sell, transfer, lease or otherwise dispose of all or any substantial portion of its assets in
one transaction or a series of related transactions, participate in any share exchange, consummate any recapitalization, reclassification, reorganization or other business combination transaction or
adopt a plan of liquidation or dissolution or agree to do any of the foregoing; 

        (f)    One
or more judgments in an aggregate amount in excess of Fifty Thousand Dollars ($50,000) shall have been rendered against Issuer and such judgment or judgments remain
undischarged or unstayed for a period of sixty (60) days after such judgment or judgments become or became, as the case may be, final and unappealable; 

        (g)   Issuer
shall fail to observe or perform any other covenant or agreement contained in this Note; 

        Upon
the occurrence of any Event of Default specified in clause (c), the Holder may, at its option, by notice in writing to Issuer (the "Acceleration Notice"), declare all amounts
due hereunder to be due and payable immediately and, upon any delivery of such Acceleration Notice, the same shall become and be immediately due and payable. If an Event of Default specified in
clauses (a), (b), (d), (e), (f) or (g) occurs, then all amounts due hereunder shall become immediately due and payable without any declaration or other act on the part of the Holder.
Upon the occurrence of any Event of Default, the Holder may, in addition to declaring all amounts due hereunder to be immediately due and payable, pursue any available remedy, whether at law or in
equity, including any and all remedies under the Security Agreements. If an Event of Default occurs, Issuer shall pay to the Holder the reasonable attorneys' fees and disbursements and all other
out-of-pocket costs incurred by the Holder in order to collect amounts due and owing under this Note or otherwise to enforce the Holder's rights and remedies hereunder. 

        6.    Interest Upon an Event of Default.    From and after the occurrence of an Event of Default, interest shall
accrue on the outstanding principal amount of this Note at the rate of ten percent (10%) per annum until such time as this Note, including all accrued but unpaid interest, has been indefeasibly paid
in full. Interest shall be computed on the basis of a 360 day year for the actual number of days elapsed. 

        7.    Reimbursement of Expenses.    In addition to its other obligations hereunder, not later than the close of
business on the date hereof or one (1) Business Day after receipt of an invoice therefor, Issuer shall reimburse the Holder for the fees and disbursements incurred by the Holder's counsel in
connection with the preparation, negotiation, execution and enforcement of this Note and the Exchange Agreement. 

        8.    Waiver of Presentment, Demand and Dishonor.    

        (a)   Issuer
hereby waives presentment for payment, protest, demand, notice of protest, notice of non-payment and diligence with respect to this Note, and waives
and renounces all rights to the benefit of any statute of limitations or any moratorium, appraisement, exemption or homestead now provided or that hereafter may be provided by any federal or
applicable state statute, including but not limited to exemptions provided by or allowed under the Federal bankruptcy code, both as to itself and as to all of its property, whether real or personal,
against the enforcement and collection of the obligations evidenced by this Note and any and all extensions, renewals and modifications hereof. 

        (b)   No
failure on the part of the Holder hereof to exercise any right or remedy hereunder with respect to Issuer, whether before or after the happening of an Event of
Default, shall constitute a waiver of any future Event of Default or of any other Event of Default. No failure to accelerate the debt of Issuer evidenced hereby by reason of an Event of Default or
indulgence granted from time to time shall be construed to be a waiver of the right to insist upon prompt payment thereafter; or shall be deemed to be a novation of this Note or a reinstatement of
such debt evidenced hereby or a waiver of such right of acceleration or any other right, or be construed so as to preclude the exercise of any right the Holder may have, whether by the laws of the
state governing this Note, by agreement or otherwise; and Issuer hereby expressly waives the benefit of any statute or rule of law or equity that would produce a result contrary to or in conflict with
the foregoing. Issuer shall not have the right to set off or otherwise deduct from amounts payable by it hereunder any amounts whether liquidated or unliquidated, which the Holder or any of its
affiliates may owe to Issuer, which right is hereby expressly waived to the maximum extent permitted by applicable law. 

        9.    Notices.    Except as otherwise permitted herein, any notice required or permitted hereunder shall be in writing
and shall be deemed to have been duly given when received if delivered personally against receipt; when transmitted if transmitted during regular business hours on a Business Day by telecopy,
electronic or digital transmission method (or on the next succeeding Business Day if transmitted during other than regular business hours on a Business Day) or the next Business Day if sent for next
Business Day delivery by a nationally recognized overnight courier service. In each case, notice shall be sent as follows: (i) in the case of Issuer, to IMCOR Pharmaceutical Co., 6175 Lusk
Boulevard, San Diego, California 92121, facsimile (858) 410-5161, attention: Chief Executive Officer; with a copy (that shall be required for any such notice to be effective) to
Grippo & Elden, 227 W. Monroe Street, Suite 3600, Chicago, IL 60606, facsimile (312) 558-1195, Attention: Matthew I. Hafter, Esq., or (ii) in the case of the Holder,
to Xmark Fund, L.P., 152 West 57th Street, 21st Floor, New York, New York 10019, facsimile (212) 247-1329, attention: Mitchell D. Kaye; with a copy (that
shall be required for any such notice to be effective) to Lowenstein Sandler PC, 65 Livingston Avenue, Roseland, New Jersey 07068, facsimile (973) 597-2507, attention: Steven
Siesser, Esq., or to such other address or addresses as Issuer or the Holder, as the case may be, may notify the other party in writing in accordance with this Section 9. 

        10.    Amendments; Waivers.    No modification, alteration, waiver or change of any of the provisions hereof shall be
effective unless in writing and signed by Issuer and the Holder and, then, only to the extent set forth in such writing. 

        11.    Binding Effect; Assignability    This Note shall be binding upon Issuer, its successors and its assigns, and
shall inure to the benefit of Holder, its successors and its assigns. This Note is freely transferable or assignable by the Holder or any transferee of the Holder; provided that such transfer or
assignment is made in compliance with the Act and any applicable state and foreign securities laws. 

        12.    Governing Law; Jurisdiction.    This Note shall be binding upon the Issuer and Holder and their respective
successors, assigns and legal representatives. The validity, construction and interpretation of this Note will be governed, and construed in accordance with, the laws of the State of New York.  EACH OF ISSUER AND THE HOLDER
HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS NOTE AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

        Issuer
and the Holder irrevocably submit to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the
Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Note and the transactions contemplated hereby. Service of process in
connection with any such suit, action or proceeding may be served on Issuer anywhere in the world by any method authorized by law. Each of Issuer and the Holder irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each of Issuer and the Holder irrevocably waives any objection to the laying of venue of
any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. 

        [remainder
of page intentionally left blank] 

        IN
WITNESS WHEREOF, Issuer and the Holder have caused this instrument to be duly executed as of the date first written above. 

	 	 	IMCOR PHARMACEUTICAL CO.
	

 	
 	

By:	

 Name:

Title:
	

 	
 	

XMARK FUND, LTD.
	

 	
 	

By:	

 Name:

Title:

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