Document:

IPEX, Inc.

                                  July 25, 2005

Attn: Scott Goodwin, President and CEO
Vinculum Communications, Inc.
9255 Towne Centre Drive, Suite 925
San Diego, CA 92121

         RE:      Letter of Intent for IPEX, Inc., a Nevada corporation  (OTCBB:
                  IPEX) ("IPEX"),  to acquire (the "Acquisition") all the issued
                  and  outstanding  shares of stock of Vinculum  Communications,
                  Inc.,  a  Delaware  corporation   ("VINCULUM")  owned  by  the
                  stockholders of VINCULUM ("VINCULUM  Stockholders").  Dear Mr.
                  Goodwin:

      This Letter of Intent  ("LOI") will confirm the  following  general  terms
upon  which  our  respective  Board  of  Directors  or  similar  governing  body
(collectively  referred to as the "Parties") will adopt a definitive Acquisition
Agreement  (the  "Agreement"),  and  recommend  that the  VINCULUM  Stockholders
approve the Agreement whereby, subject to the approval of a sufficient number of
VINCULUM  Stockholders,  a  wholly-owned  subsidiary of IPEX will merge with and
into VINCULUM such that VINCULUM will become a wholly-owned  subsidiary of IPEX.
The Acquisition  consideration  will consist of shares of IPEX common stock (the
"IPEX Stock"), convertible debt and cash as set forth below.

      This LOI sets forth the basic  terms of the  Acquisition  transaction  and
reflects the current,  good faith  intentions  of IPEX and VINCULUM with respect
thereto.

1.    The Acquisition.

      (a)   At the closing (the  "Closing"),  a wholly-owned  subsidiary of IPEX
            will merge with and into  VINCULUM.  The existing  shares of capital
            stock of VINCULUM (the "Shares") will be converted into the right to
            receive the  Purchase  Price as  described  below.  The parties will
            cooperate to ensure that the Acquisition is structured in a way that
            allows the VINCULUM Stockholders to receive the IPEX Stock tax-free.

      (b)   The time of Closing shall be not later than  September 30, 2005 (the
            "Closing Date"), unless extended by mutual consent of the parties.
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            Notwithstanding  the  foregoing,  if the Closing  cannot occur on or
            before September 30, 2005 because information  required by SEC rules
            and  regulations  (including  for purposes of preparing and filing a
            Form 8-K and Form 8-K/A  reporting the  Acquisition and for purposes
            of preparing and filing the Registration  Statement (defined below))
            cannot be prepared and completed  before such date after  reasonably
            commercial efforts, the Closing Date shall be automatically extended
            to such date necessary to prepare and complete such information.

      (c)   IPEX  shall  pay  the  VINCULUM   Stockholders   $14.5   million  as
            compensation for their Shares (the "Purchase Price"), which Purchase
            Price shall be paid as follows:

            (i)   $1,000,000  in  cash  (the  "Cash   Consideration")   will  be
                  delivered to the VINCULUM Stockholders at the Closing.

            (ii)  $11,700,000  worth of IPEX Stock (the  "Stock  Consideration")
                  will be issued  and  delivered  to the  VINCULUM  Stockholders
                  within five business  days of the Closing Date.  The number of
                  shares  of IPEX  Stock to be issued  in  payment  of the Stock
                  Consideration  shall be determined by dividing  $11,700,000 by
                  the volume  weighted  average price per share ("VWAP") for the
                  IPEX Stock for the 90 trading days  immediately  preceding the
                  Closing Date.  Notwithstanding the foregoing,  if the VWAP for
                  the IPEX Stock for the 90 trading days  immediately  preceding
                  the  Closing  Date is higher  than  $4.10,  then the number of
                  shares  of IPEX  Stock to be issued  in  payment  of the Stock
                  Consideration  shall be determined by dividing  $11,700,000 by
                  $4.10.  Subject to  Section  1(c)(iv)  below,  all of the IPEX
                  Shares  to be  issued to the  VINCULUM  Stockholders  shall be
                  "unregistered" and "restricted"  shares and shall be issued in
                  accordance  with and  subject to  applicable  laws,  rules and
                  regulations,  and when issued for the consideration indicated,
                  shall be  deemed  fully  paid and  non-assessable.  The  Stock
                  Consideration shall be allocated to the VINCULUM  Stockholders
                  in accordance with Part I of Annex A.

            (iii) An aggregate  principal  amount of $1,800,000  of  convertible
                  notes  (the  "Notes")  will be  issued  and  delivered  to the
                  VINCULUM  Stockholders  at the  Closing.  The Notes  will bear
                  interest  at the rate of 4% per  annum  payable  quarterly  in
                  arrears,  beginning  on the first such date after the original
                  issue date and on the  maturity  date of the  Notes.  $900,000
                  principal  amount of the Notes  will have a  maturity  date 12
                  months from the  Closing.  The  remaining  $900,000  principal
                  amount of the Notes will have a maturity  date 18 months  from
                  the Closing.  The Notes shall be  convertible at the option of
                  the  holders  and shall have a  conversion  price equal to the
                  lower of:  (A) the VWAP for the IPEX  Stock for the 90 trading

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                  days immediately  preceding the Closing Date; or (B) $4.10. If
                  on the  maturity  date of the Notes,  the market price of IPEX
                  Stock is equal to or greater than the conversion  price of the
                  Notes,  then the conversion price shall be adjusted to a price
                  which is equal to 80% of the closing sales price of IPEX Stock
                  on the trading day immediately  preceding the maturity date of
                  the Notes, but no less than $1.50. Subject to Section 1(c)(iv)
                  below,  all of the IPEX Stock issuable upon  conversion of the
                  Notes  shall be  "unregistered"  and  "restricted"  shares and
                  shall be issued in  accordance  with and subject to applicable
                  laws,  rules  and   regulations,   and  when  issued  for  the
                  consideration  indicated,  shall  be  deemed  fully  paid  and
                  non-assessable.

            (iv)  IPEX will  undertake  to prepare and file with the  Securities
                  and Exchange Commission (the "SEC") no later than 90 days from
                  the Closing Date, a Registration  Statement (the "Registration
                  Statement")  on Form SB-2  pursuant to the  Securities  Act of
                  1933,  as amended  (the  "Securities  Act"),  registering  the
                  resale  of the  IPEX  Stock  to be  received  by the  VINCULUM
                  Stockholders  in connection with the  Acquisition.  IPEX shall
                  also  prepare  and  file  with  the SEC  such  amendments  and
                  supplements to such Registration Statement on Form SB-2 as may
                  be necessary and use commercially  reasonable efforts to cause
                  such  registration  statement to become  effective  and remain
                  effective  for the period of time  required to effect the sale
                  of such shares in accordance with the Securities Act.

2.    Definitive Agreement. The Agreement shall include, contain or provide:

      (a)   Representations and warranties.  Customary and usual representations
            and  warranties  and  covenants  by  the  parties,  and a  principal
            executive  officer or managing member of each party, as the case may
            be, shall certify that these representations and warranties are true
            as of the Closing Date.

            (i)   None of the Parties to the  Acquisition,  nor their  officers,
                  directors, members or affiliates,  promoter or control person,
                  nor  any  predecessor,   thereof  have  been  subject  to  the
                  following:

                  (A)   Any bankruptcy petition filed by or against any business
                        of which such person was a general  partner or executive
                        officer  either at the time of the  bankruptcy or within
                        two (2) years prior to that time;
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                  (B)   Any conviction in a criminal proceeding or being subject
                        to a  pending  criminal  proceeding  (excluding  traffic
                        violations  and other  minor  offenses)  within the past
                        five years;

                  (C)   Any  order,   judgment,   or  decree,  not  subsequently
                        reversed,   suspended  or  vacated,   of  any  court  of
                        competent   jurisdiction,   permanently  or  temporarily
                        enjoining, barring, suspending or otherwise limiting his
                        involvement  in any  type  of  business,  securities  or
                        banking activities; and

                  (D)   Any finding,  ruling or judgment by a court of competent
                        jurisdiction  (in  a  civil  action),  the  SEC  or  the
                        Commodity Futures Trading  Commission to have violated a
                        federal or state  securities or commodities law, and the
                        judgment has not been reversed, suspended, or vacated.

            (ii)  Each  party  shall  have good  title to all of its  respective
                  tangible and intangible assets including,  but not limited to,
                  intellectual  properties necessary or required to successfully
                  develop and  commercially  exploit its business  enterprise as
                  more fully described in its current business plan.

            (iii) The  VINCULUM   Stockholders   own  100%  of  the  issued  and
                  outstanding stock of VINCULUM.

            (iv)  VINCULUM is an international Voice-over-Internet Protocol long
                  distance  communications  carrier and provides  services to no
                  less than 150 long distance carriers across the world.

            (v)   At Closing VINCULUM will have assets and liabilities  within a
                  range  of  25%,  plus or  minus,  of the  anticipated  amounts
                  outlined in Annex B attached hereto.

            (vi)  The Agreement will include representations and warranties with
                  respect to the absence of undisclosed  liabilities,  liens and
                  encumbrances  of the  assets  of  VINCULUM  and the  financial
                  condition  and  results of  operations  of  VINCULUM  and with
                  respect to the  absence  of any  material  adverse  changes in
                  VINCULUM's   financial  condition,   earnings,   and  business
                  operations  since  the  date  of  the  most  recent  unaudited
                  financial statements supplied by VINCULUM to IPEX.
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      (b)   Opinions of Counsel.  The delivery at Closing of favorable  opinions
            of legal  counsel for VINCULUM  regarding  the  customary  and usual
            matters  of law and fact  covered  under  similar  Acquisitions  and
            related agreements.

      (c)   Opinions of  Auditors.  For the delivery at the Closing of financial
            statements  reasonably acceptable to IPEX. VINCULUM shall deliver to
            IPEX audited financial  statements for the last two completed fiscal
            years as well as  unaudited  financial  statements  for the  interim
            period(s)  ended at the Closing  Date  prepared in  accordance  with
            Generally Accepted Accounting Principles.

      (d)   Conditions Precedent.  In addition,  the Agreement shall contain the
            following conditions precedent:

            (i)   IPEX shall have all SEC, state and federal filings and reports
                  current,  up to date,  in proper form,  and be, to the best of
                  management's  knowledge,  in  compliance  with all  state  and
                  federal regulations governing a public company.

            (ii)  For a period of at least  forty (45) days prior to the Closing
                  Date,  VINCULUM  will afford to the  officers  and  authorized
                  representatives  of IPEX full access to the properties,  books
                  and  records  of  VINCULUM  in order that IPEX may have a full
                  opportunity to make such reasonable  investigation as it shall
                  desire to make of the affairs of VINCULUM,  and VINCULUM  will
                  furnish IPEX with such additional financial and operating data
                  and other  information  as to the business and  properties  of
                  VINCULUM (the  confidentiality of which IPEX agrees to retain)
                  as IPEX shall  from time to time  reasonably  request.  To the
                  extent  the state  and  federal  filings  and  reports  do not
                  provide such  information,  VINCULUM shall have similar access
                  to the  properties,  books  and  records  of  IPEX.  Any  such
                  investigations   and   examinations   shall  be  conducted  at
                  reasonable times and under reasonable circumstances,  and each
                  party hereto shall cooperate fully therein.  No  investigation
                  by either party hereto  shall,  however,  diminish or waive in
                  any way any of the representations,  warranties,  covenants or
                  agreements of the other party under the Agreement.
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            (iii) IPEX  shall  enter  into an  employment  agreement  with Scott
                  Goodwin,  whereby Mr.  Goodwin will serve as the  President of
                  Telecommunications  for IPEX.  Mr.  Goodwin's  salary  will be
                  $240,000  per  year.  Mr.  Goodwin  will also be  eligible  to
                  participate  in  employee  benefit  plans  maintained  by  the
                  Company for the benefit of IPEX's executive officers.

            (iv)  VINCULUM  Stockholders  shall  have the right to  appoint  two
                  members to the Board of Directors of IPEX, which members shall
                  be in addition to the existing number of directors of IPEX.

            (v)   VINCULUM  Stockholders  owning  not less than  eighty  percent
                  (80%) of the  outstanding  securities  of VINCULUM  shall have
                  approved,  adopted,  and  ratified  the  Acquisition  and  the
                  Agreement.

            (vi)  VINCULUM  shall  have  obtained  and  delivered  to  IPEX  all
                  consents,  waivers  and  approvals  necessary  to  effect  the
                  Acquisition  from the  stockholders  and Board of Directors of
                  VINCULUM.

            (vii) There  shall  not  be any  pending  or  threatened  litigation
                  regarding  the  Acquisition  and the  Agreement or any related
                  transactions contemplated thereby or therein.

           (viii) Customary  legal  opinions,  closing  certificates  and other
                  documentation  in a form  satisfactory  to IPEX and  VINCULUM,
                  respectively, shall be delivered by the Parties.

            (ix)  There shall not be any  material  breach by the Parties of any
                  representation or warranty contained in the Agreement, and the
                  Parties shall be in compliance with each covenant contained in
                  the Agreement.

            (x)   IPEX shall have completed usual,  customary and reasonable due
                  diligence of VINCULUM to IPEX's satisfaction.

            (xi)  VINCULUM shall have completed usual,  customary and reasonable
                  due diligence of IPEX to VINCULUM's satisfaction.

            (xii) VINCULUM   shall  have  caused  an  audit  of  its   financial
                  statements to be completed in accordance  with the  Securities
                  Act,  the  Securities   Exchange  Act  of  1934,  as  amended,
                  Regulation  S-X  and  any  other   applicable   rules  of  the
                  Securities  and Exchange  Commission or of the Public  Company
                  Accounting Oversight Board.

           (xiii) All VINCULUM Stockholders who are accredited investors within
                  the  meaning  of  Rule  501(a)  of   Regulation  D  under  the
                  Securities  Act shall  complete and sign  accredited  investor
                  questionnaires attesting to such fact.
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            (xiv) VINCULUM  shall  provide to IPEX the  information  required by
                  Form  S-4  of  the  Securities  and  Exchange  Commission,  as
                  applicable to VINCULUM, by a commercially reasonable period of
                  time  prior  to the  Closing  so  IPEX  may  provide  complete
                  disclosure to the VINCULUM  Stockholders,  as required by Rule
                  502 under the Securities Act.

            (xv)  The Agreement  shall contain  additional  mutually  acceptable
                  closing conditions to be determined by the Parties.

      (e)   Conditions  Subsequent.  The  Acquisition  shall be  subject  to the
            occurrence  of the  following  term and  condition to occur within a
            reasonable time subsequent to the Closing:

            (i)   IPEX shall file a Form 8-K with the SEC within  four  business
                  days of entering  into the Agreement  disclosing  the material
                  terms of the Acquisition.

3.    Expenses.  Each  party  shall  pay its own  legal,  accounting  and  other
      expenses in connection with the Acquisition, including, but not limited to
      those  expenses  and/or  fees  of  Aegis  Equity,  LLC  and  Mark  Buckner
      referenced in Section 5(e).

4.    Conduct of Business of VINCULUM Pending Closing.

      (a)   Until  consummation or termination of the contemplated  Acquisition,
            VINCULUM will conduct  business  only in the ordinary  course and no
            material assets of VINCULUM shall be sold, encumbered,  hypothecated
            or disposed of except in the  ordinary  course of business  and only
            with the written  consent of the other party which  consent will not
            be unreasonably withheld.

      (b)   The Parties  agree that until  consummation  or  termination  of the
            Acquisition, VINCULUM, the Board of Directors of VINCULUM and/or the
            VINCULUM  Stockholders  shall not directly or indirectly:  (i) offer
            for  sale,  sell,  assign,  pledge,  distribute  or  enter  into any
            contract for the sale of or otherwise  dispose of the Shares without
            the express  written  consent of the current  Board of  Directors of
            VINCULUM  and  IPEX;  (ii)  issue or cause to be  issued  additional
            Shares,  options,  warrants or any other right to purchase Shares to
            any person,  entity or party (other than shares issued upon exercise
            of existing options);  (iii) offer for sale, sell,  assign,  pledge,
            distribute  or enter into any  contract for the sale of or otherwise
            dispose of all or  substantially  all of a  material  portion of the
            assets of VINCULUM;  or (iv) assume or incur a significant amount of
            liabilities or take any other actions outside the ordinary course of
            its business or other than in connection with the Acquisition.
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5.    Miscellaneous Provisions:

      (a)   On or  before  the  Closing  Date,  IPEX,  VINCULUM  and  all of the
            VINCULUM    Stockholders    will   have    received   all   permits,
            authorizations,   regulatory  approvals  and  third  party  consents
            necessary  for  the  consummation  of  the   Acquisition,   and  all
            applicable legal requirements shall have been satisfied.

      (b)   The  Acquisition  shall be  consummated  and the Agreement  shall be
            executed as soon as  practicable,  and IPEX shall instruct its legal
            counsel to  immediately  prepare all  necessary  documentation  upon
            execution of this LOI.

      (c)   Before  Closing,  the  Board  of  Directors  of IPEX,  the  Board of
            Directors  of  VINCULUM  and the  VINCULUM  Stockholders  shall have
            approved the Acquisition and the Agreement.

      (d)   All notices or other information  deemed required or necessary to be
            given  to  any  of the  parties  shall  be  given  at the  following
            addresses:

                      IPEX:            IPEX, Inc.
                                       Attn: Gerald Beckwith
                                       9255 Towne Centre
                                       Suite 235
                                       San Diego, CA 92121
                                       Facsimile: (310) 752-1486

                      With Copy to (which shall not constitute notice):

                                       Sichenzia Ross Friedman Ference LLP
                                       Attn: Marc J. Ross, Esq.
                                       1065 Avenue of the Americas
                                       21st Floor
                                       New York, NY 10018
                                       Facsimile: (212) 930-9725
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                      VINCULUM: Vinculum Communications, Inc.
                                       Attn: Scott Goodwin, President and CEO
                                       9255 Towne Centre Drive, Suite 925
                                       San Diego, CA 92121
                                       Facsimile: (858)546-8039

                      With Copy to (which shall not constitute notice):

                                       Allen Matkins Leck Gamble & Mallory LLP
                                       Attn: Peter N. Townshend, Esq.
                                       12348 High Bluff Drive, Suite 100
                                       San Diego, CA 92130
                                       Facsimile: (858) 481-5028

      (e)   With the exception of Aegis Equity,  LLC and its affiliates and Mark
            Buckner,  no agent,  broker,  investment  banker,  person or firm is
            acting on behalf of the Parties or under their  authority is or will
            be entitled to any broker's or finder's fee or any other  commission
            or similar fee,  directly or indirectly,  in connection  with any of
            the transactions contemplated herein.

      (f)   The  Agreement  shall contain  customary and usual  indemnification,
            hold harmless provisions and investment representation language.

      (g)   Except  where  the  laws of  another  jurisdiction  are  necessarily
            applicable,  the transactions which are contemplated  herein and the
            legal   relationships  among  the  parties  hereto,  to  the  extent
            permitted, shall be governed by and construed in accordance with the
            laws  (except  for  conflict  of law  provisions)  of the  State  of
            California.

      (h)   The substance of any press release or other public announcement with
            respect  to the  Acquisition,  the  Agreement  and the  transactions
            contemplated herein and therein, other than notices required by law,
            shall be  approved  in writing in advance by all  parties  and their
            respective legal counsel.

6.    Counterparts.  This LOI may be executed in any number of counterparts  and
      each such counterpart  shall be deemed to be an original  instrument,  but
      all of such counterparts together shall constitute but one agreement.

7.    Amendments. Subject to applicable law, this LOI and any attachments hereto
      may be amended only by an  instrument  in writing  signed by an officer or
      authorized representative of each of the parties hereto.
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8.    Headings. The descriptive headings of the sections and subsections of this
      LOI are inserted for convenience only and do not constitute a part of this
      LOI.

9.    Reliance Upon Representations and Warranties. Notwithstanding any right of
      any party hereto to fully  investigate the affairs of any other party, the
      parties hereto may rely upon the representations, warranties and covenants
      made to it in  this  LOI  and on the  accuracy  of any  exhibit  or  other
      document given or delivered to it pursuant to this LOI. Further, knowledge
      by an agent of any party  hereto of any facts not  otherwise  disclosed in
      this LOI or any other related document,  shall not constitute a defense to
      any claim for  misrepresentation,  breach of any warranty,  agreement,  or
      covenant under this LOI or any other related document.  No representations
      or  warranties  have been made by or on behalf of any person to induce any
      party to enter into this LOI or to abide by or consummate the transactions
      contemplated by this LOI, except  representations and warranties expressly
      set forth herein.

10.   Waiver. No purported waiver by any party of any default by any other party
      of any term,  covenant or condition contained herein shall be deemed to be
      waiver of such term, covenant or condition unless the waiver is in writing
      and signed by the  waiving  party.  No such  waiver  shall in any event be
      deemed a waiver  of any  subsequent  default  under  the same or any other
      term, covenant or condition contained herein.

11.   Entire Agreement.  This LOI, together with the exhibits or other documents
      given or delivered  pursuant hereto,  sets forth the entire  understanding
      among  the  parties   concerning  the  subject  matter  of  this  LOI  and
      incorporates  all  prior  negotiations  and  understandings.  There are no
      covenants, promises, agreements, conditions or understandings, either oral
      or written,  between them relating to the subject matter of this LOI other
      than those set forth herein. No alternation, amendment, change or addition
      to this LOI shall be binding  upon any party  unless in writing and signed
      by the party to be charged.

12.   No  Partnership.  Nothing  contained  in this  LOI  will be  deemed  to or
      construed  by the  parties  hereto  or by any third  person to create  the
      relationship of principal and agent or partnership or joint venture.

13.   Joint  Preparation.  This LOI has been negotiated and prepared  jointly by
      the parties hereto and any uncertainty or ambiguity  existing  herein,  if
      any, shall not be interpreted  against any party, but shall be interpreted
      according  to the  applicable  rules of  interpretation  for arm's  length
      agreements.

14.   Partial  Invalidation.  If any term,  covenant or condition in this LOI or
      the  application  thereof to any party,  person or  circumstance  shall be
      invalid or unenforceable,  the remainder of this LOI or the application of
      such term,  covenant or condition to persons or circumstances,  other than
      those as to which it is held invalid, shall be unaffected thereby and each
      term, covenant or condition of this LOI shall be valid and enforced to the
      fullest extent permitted by law.
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15.   Binding  Effect;  Break-up Fee. This LOI is binding on the parties hereto.
      In the  event  VINCULUM  terminates  this  LOI at any  time  prior  to the
      execution of a definitive Agreement,  VINCULUM shall pay a break-up fee to
      IPEX in the amount of $200,000 cash. In the event IPEX terminates this LOI
      at any time prior to the execution of a definitive  Agreement,  IPEX shall
      pay  a  break-up  fee  to  VINCULUM  in  the  amount  of  $200,000   cash.
      Notwithstanding  the  foregoing,  neither IPEX nor VINCULUM  shall pay any
      break-up  fee to the other  party if this LOI is  terminated  prior to the
      execution  of a  definitive  Agreement  due to a breach of this LOI by the
      other  party or any  reason(s)  beyond the  control  of either  respective
      party.

16.   Time is of the  Essence.  VINCULUM  shall sign this LOI no later than 3:00
      P.M., Eastern Standard Time, July 27, 2005, as time is of the essence.

17.   Lockup  Agreement.  Each holder of more than 10% of  VINCULUM  Stock shall
      enter into an agreement with IPEX whereby such VINCULUM Stockholder agrees
      not to sell more than 200,000 Shares of IPEX Stock in any calendar quarter
      during the one year period following the Closing.

18.   Currency.  All references to currencies  within this LOI are in US dollars
      except where otherwise specified.

19.   Public  Announcement.  IPEX and VINCULUM mutually agree that neither party
      shall  issue any press  release  or make any  public  announcement  of the
      Acquisition  or any other  matter  which is the subject of this LOI or any
      subsequent  definitive  Agreement  without the prior  consent of the other
      party, except where a public announcement is required by law as reasonably
      determined by such party or is in connection with such party's enforcement
      of its rights or remedies  hereunder or  thereunder  for any breach by the
      other party.  Notwithstanding  the foregoing,  VINCULUM  acknowledges that
      upon signing this LOI, IPEX is required and shall file a Form 8-K with the
      SEC describing the material terms of the LOI and VINCULUM  hereby consents
      to such filing.

20.   Consents.  IPEX and VINCULUM will  cooperate with one another and proceed,
      as promptly as is reasonably practicable,  to seek to obtain all necessary
      consents and  approvals  from lenders,  shareholders,  landlords and other
      third  parties  and  to  endeavor  to  comply  with  all  other  legal  or
      contractual  requirements  for  or  preconditions  to  the  execution  and
      consummation of the Acquisition and the Agreement.

21.   Efforts.  IPEX and  VINCULUM  will  negotiate  in good faith and use their
      commercially  reasonable  efforts  to  arrive  at  a  mutually  acceptable
      definitive Agreement for approval,  execution and delivery on the earliest
      reasonably  practicable  date.  IPEX and VINCULUM will thereupon use their
      commercially  reasonable efforts to effect the Closing and to proceed with
      the  transactions  contemplated  by this LOI as promptly as is  reasonably
      practicable.
<PAGE>

Vinculum Communications, Inc.
July 25, 2005
Page 12 of 13

22.   Confidentiality.  IPEX and VINCULUM  agree that (except as may be required
      by law) it will not  disclose or use any  "Confidential  Information"  (as
      hereinafter  defined)  with  respect  to the  other,  furnished,  or to be
      furnished in connection herewith at any time or in any manner and will not
      use such  information  other than in connection with its evaluation of the
      Acquisition. For the purposes of this paragraph "Confidential Information"
      means any  information  identified as such in writing or, given the nature
      of the information or the circumstances surrounding its disclosure,  which
      reasonably  should be considered as confidential  or  proprietary.  If the
      Acquisition is not  consummated,  the receiving party will promptly return
      all documents to the party with provided such documents. The provisions of
      this paragraph shall survive the termination of this LOI.

                  [REMAINING OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

Vinculum Communications, Inc.
July 25, 2005
Page 13 of 13

      If the foregoing  correctly sets forth the substance of the  understanding
of the parties, please execute this LOI in triplicate,  retain one original copy
for your  records,  and  return the other  original  copy to Marc J. Ross at the
address listed above.

      Also, please fax a signed copy to IPEX, Inc. at (310) 752-1486.

                                                 Yours truly,

                                                 IPEX, INC.

                                                 /s/ Sothi Thillairajah
                                                 -------------------------------
                                                 Sothi Thillairajah
                                                 Chief Operating Officer
                                                 AUGUST 9, 2005

Accepted this 25th day of July 2005.

VINCULUM COMMUNICATIONS, INC.

/s/ Scott Goodwin
--------------------------
Scott Goodwin
President and CEO
<PAGE>

                                     ANNEX A

                       "VINCULUM Shareholder Distribution"

PART I:  "Share Compensation"

                                             Number of            Ownership
Name:                                        Shares               Percentage
----                                         ------               ----------
Goodwin, Scott                            1,500,000                   70.81%
Jones, Jayson                               500,000                   23.60%
Buckner, Mark                                67,916                    3.21%
Goodwin, Brad                                29,275                    1.38%
Kates, Desiree                               10,265                    0.48%
Koehler, Robert                               9,000                    0.42%
Fiddes, Michael                               2,000                    0.09%
                      Total:              2,118,456                  100.00%

PART II:  "Cash Compensation"

Name:                                                            Dollars:
----                                                             -------
Goodwin, Scott                                                $708,062.85
Jones, Jayson                                                 $236,020.95
Buckner, Mark                                                  $32,059.20
Goodwin, Brad                                                  $13,819.03
Kates, Desiree                                                  $4,845.51
Koehler, Robert                                                 $4,248.38
Fiddes, Michael                                                   $944.08
                                          Total:            $1,000,000.00

PART III:  "Notes"

                                                  Principal Dollar Amount
                                         12-Month                     18-Month
Name:                                    Maturity                     Maturity
----                                     --------                     --------
Goodwin, Scott                        $637,256.57                  $637,256.57
Jones, Jayson                         $212,418.86                  $212,418.86
Buckner, Mark                          $28,853.28                   $28,853.28
Goodwin, Brad                          $12,437.12                   $12,437.12
Kates, Desiree                          $4,360.96                    $4,360.96
Koehler, Robert                         $3,823.54                    $3,823.54
Fiddes, Michael                           $849.68                      $849.68
                    Total:            $900,000.00                  $900,000.00
<PAGE>

                                  "ANNEX B"

                        Vinculum Communications Inc.
                                Balance Sheet
                                  6/30/2005

Assets

Current Assets
Cash
   Cash - UBOC                                            $4,335.98
   Cash - Vincomm Inc                                    109,452.41
   Cash - CNB Outgoing                                    20,182.53
                                                      -------------
   Total Cash                                           $133,970.92

Accounts Receivable
   Accounts Receivables                                 $566,938.75
   Allowance For Bad Debt                               (69,629.22)
   Accounts Receivable - Employees                         9,268.22
                                                      -------------
   Total Accounts Receivable                            $506,577.75

Unbilled Revenue
   Other Current Assets                                 $598,219.69
                                                      -------------
   Total Unbilled Revenue                               $598,219.69

Other Current Assets
   Nextone Support                                        $9,961.00
   Colocation Deposit                                        500.00
   Office Deposit                                         11,235.36
                                                      -------------
   Total Other Current Assets                            $21,696.36
                                                      -------------
   Total Current Assets                               $1,260,464.72

Property, Plant and Equipment
   Sansay Gateway                                        $27,499.92
   Computer Equipment                                     85,517.43
   Office Furniture                                       20,512.59
   VOIP Routers                                           19,800.00
   Software                                              171,642.00
                                                      -------------
   Total Property, Plant and Equipment                  $324,971.94

Accumulated Depreciation
   Accum Depr - Computer                               ($59,713.77)
   Accum Depr - VOIP Routers                            (12,198.00)
   Accum Depr - Office Furniture                         (7,902.47)
   Accum Depr - Software                               (140,673.33)
                                                      -------------
   Total Accumulated Depreciation                     ($220,487.57)
                                                      -------------

Net Property, Plant and Equipment                       $104,484.37

Other Assets
   Other Assets                                          $40,000.00
                                                      -------------
   Total Other Assets                                    $40,000.00

Intangible Assets
Organizational Costs                                      $1,000.00
Accum Amort - Organizational                               (683.33)
CNB CEDLI Facility Cost                                   78,927.67
Facility Cost Amortization                               (8,769.76)
Goodwill                                                 118,907.20
                                                      -------------
Total Intangible Assets                                  189,381.78
                                                      -------------
   Total Assets                                       $1,594,330.87
                                                      =============
Liabilities

Current Liabilities
Accounts Payable
   Accounts Payable                                     $378,646.30
                                                      -------------
   Total Accounts Payable                               $378,646.30

Notes Payable
   Line Of Credit-Preferred Business Credit                  $54.51
   Line Of Credit-City National Bank                     239,861.85
   Due To Call Prints                                     68,029.62
                                                      -------------
   Total Notes Payable                                  $307,945.98

Taxes Payable
   Income Tax Payable                                   ($8,756.00)
   Provision for Deferred  Income Tax Liability            8,324.00
                                                      -------------
   Total Taxes Payable                                    ($432.00)
<PAGE>

Other Current Liabilities
   Customer Deposits                                      $1,192.27
   Schneider Rucinski Lease                               15,791.62
   Other Accruals                                        273,980.92
                                                      -------------
   Total Other Current Liabilities                      $290,964.81
                                                      -------------
   Total Current Liabilities                            $977,125.09

Long-Term Debt
   Line Of Credit - UBOC                                  $9,971.78
   Cedli Note                                            362,140.31
   Line of Credit - Wells Fargo                              (0.01)
                                                      -------------
   Total Long-Term Debt                                 $372,112.08
                                                      -------------
   Total Liabilities                                  $1,349,237.17

Capital

Common Stock
   Common Stock                                           $2,033.00
   Shareholder Note                                      162,459.01
                                                      -------------
   Total Common Stock                                   $164,492.01

Retained Earnings
   Paid In Capital                                       $99,967.00
   Retained Earnings                                      90,390.45
                                                      -------------
   Total Retained Earnings                              $190,357.45
   Net Profit/(Loss)                                  ($109,755.76)
                                                      -------------
   Total Equity                                         $245,093.70
                                                      -------------
   Total Liabilities and Equity                       $1,594,330.87
                                                      =============EXHIBIT 10.8

                        SETTLEMENT AND LICENSE AGREEMENT

                                     PARTIES

      This Settlement and License Agreement (the "Agreement"), entered into as
of this 26th day of June, 2005, is between CYTOMEDIX, INC. ("Cytomedix"), a
Delaware corporation, having a principal place of business at 416 Hungerford
Drive, Suite 300, Rockville, Maryland 20850; PERFUSION PARTNERS AND ASSOCIATES,
INC. ("PPAI"), a Florida corporation, having a principal place of business at
6227 Foxfire Lane, Fort Myers, Florida 33912; and Transcorporeal, Inc.
("Transcorporeal"), a Florida corporation having a principal place of business
at 6227 Foxfire Lane, Fort Meyers, Florida 33912. Each of Cytomedix, PPAI and
Transcorporeal are referred to in this Agreement as a "Party" and collectively
as the "Parties." Capitalized terms used herein and not otherwise defined shall
have the meaning set forth in Article 1 hereof.

                                    RECITALS

      WHEREAS, Cytomedix filed an action against PPAI (the "Illinois Action"),
Civil Action No. 02 C 4776, in the United States District Court for the Northern
District of Illinois, which included claims for infringement of U.S. Patent No.
5,165,938 ("the '938 Patent") based upon PPAI's manufacture, use, marketing,
offer to sell, and/or sale of products used to practice Platelet Therapies;

      WHEREAS, Transcorporeal and PPAI share common ownership and control and
PPAI is presently in the business of supplying products and services for
conducting Platelet Therapies;

      WHEREAS, PPAI is a debtor and debtor in possession in a chapter 11 case
(the "Chapter 11 Case") pending before the Bankruptcy Court for the Middle
District of Florida, Fort Myers Division (the "Bankruptcy Court");

      WHEREAS, PPAI and Transcorporeal desire to acquire from Cytomedix on the
terms and conditions contained herein the non-exclusive right under the Licensed
Patents to manufacture, use, market, offer to sell, and/or sell products for use
in practicing processes covered by one or more claims of the Licensed Patents
and to settle all disputes between and among the Parties;

      NOW, THEREFORE, in consideration of the following terms, covenants and
conditions, Cytomedix, PPAI and Transcorporeal hereby agree as follows:

                               TERMS OF AGREEMENT

1.    Definitions.

      1.1.  "Affiliate" shall mean:

            (a)   any individual who or Entity that, in whatever country
                  organized or resident, directly or indirectly through one or
                  more intermediaries, is controlled by, or is under common
                  control with, or controls, a Party or Entity; or

            (b)   any Entity in which any individual or Entity recited in the
                  preceding sub-paragraph (a) directly or indirectly through one
                  or more intermediaries has at least a forty percent (40%)
                  ownership or voting rights interest (whether through stock
                  ownership, stock power, voting proxy, or otherwise).

<PAGE>

      1.2.  "Disposable Kit" shall mean, collectively, the single-use disposable
            components, applicators, reagents and other items manufactured,
            marketed, promoted, offered to be sold, or sold by PPAI and/or
            Transcorporeal as a Platelet Product for use by others in practicing
            a single Platelet Therapy.

      1.3.  "Distributor" means an entity which contracts with PPAI and/or
            Transcorporeal to either a) provide promotion, sales and
            distribution services of PPAI Branded Platelet Products, or b) buy
            Platelet Products from PPAI and/or Transcorporeal for resale under a
            PPAI Brand.

      1.4.  "Entity" shall mean any corporation, firm, partnership,
            proprietorship, or other form of business organization.

      1.5.  "Gross Sales" means, applying generally accepted accounting
            principles, actual gross sales revenues earned by PPAI and/or
            Transcorporeal through sales of Platelet Services or PPAI Branded
            Platelet Products in each country in which a Licensed Patent is in
            force until the expiration of such Licensed Patent in such country.

      1.6.  "Licensees" means PPAI and Transcorporeal.

      1.7.  "Licensed Patents" means the patents and patent applications listed
            in Exhibit A and any related patent application (including, without
            limitation, any continuation, continued prosecution,
            continuation-in-part, divisional, foreign counterpart or
            substitution thereof) and any patent (including, without limitation,
            any reissue or reexamination thereof), in any country granted from,
            or claiming priority to, or for the benefit of any of the
            aforementioned patent applications or patents, as well as rights in
            any third-party patent acquired as a result of an interference
            action involving any of the foregoing.

      1.8.  "Platelet Products" shall mean all devices, kits, applicators,
            reagents or other items (regardless of whether in the nature of a
            capital product having more than a single use or a disposable
            product having only a single use) manufactured, marketed, promoted,
            used, offered to be sold, or sold by or for PPAI and/or
            Transcorporeal for use in practicing Platelet Therapies, including
            without limitation the items listed in the attached Exhibit B. The
            items listed in Exhibit B, and all successor equipment and products
            that are improvements to such scheduled equipment and products, will
            be considered Platelet Products for purposes of this Agreement. PPAI
            Branded Platelet Products shall be designed in such manner that a
            Disposable Kit is required for each Platelet Therapy administered.

      1.9.  "Platelet Services" means all services rendered by PPAI and/or
            Transcorporeal in practicing Platelet Therapies and/or assisting
            others to practice Platelet Therapies.

                                       2
<PAGE>

      1.10. "Platelet Therapies" refers to methods of treating damaged tissues
            and/or wounds using topical compositions containing platelets, or
            substances derived from platelets, regardless of whether the patient
            is a human or animal.

      1.11. "PPAI" means (i) Perfusion Partners & Associates, Inc. and its
            Affiliates, (ii) any Entity in which David Buzenius or Patrick Penne
            (whether individually or collectively), directly or indirectly own
            50% or more of the capital, assets, voting securities, partnership
            or other ownership interests, and (iii) all directors, officers,
            employees, Affiliates, agents, predecessors or successors to any
            Entity identified in subclauses (i) and (ii) hereof.

      1.12. "Transcorporeal" means (i) Transcorporeal, Inc. and its Affiliates,
            and (ii) all directors, officers, employees, Affiliates, agents,
            predecessors or successors thereof.

      1.13. "PPAI Brand" shall mean any trademark, trade name or brand name
            owned or licensed by PPAI and/or Transcorporeal (including, without
            limitation, the Secquire(TM) or Thrombograft(TM) brand names). "PPAI
            Branded" shall mean having or bearing a PPAI Brand.

      1.14. "Third Party Licensed Product" shall mean any medical device
            (whether a hardware or disposable device) that is covered by an
            existing license between Cytomedix and the seller or distributor of
            such device. Examples of current medical device that would be deemed
            "Third Party Licensed Products" for purposes of this Agreement are
            devices sold by Harvest Technologies, Inc., under the brand name
            SmartPReP(TM) and the devices sold by Medtronic, Inc., under the
            brand name Magellan(TM).

2.    License Grant.

      2.1.  Licensed Patent Rights. Cytomedix hereby grants to Licensees for the
            term specified in Section 5.1 hereof, a non-exclusive,
            royalty-bearing license to manufacture, have made, use, import,
            sell, promote, market offer for sale, or otherwise transfer PPAI
            Branded Platelet Products for use in practicing processes covered by
            one or more claims of the Licensed Patents in any field of use
            anywhere in the world. This grant includes the right for Licensees
            to grant sublicenses to Distributors, with the prior written consent
            of Cytomedix (which shall not be unreasonably withheld). This grant
            also includes the right for any customers (ultimate or in privity or
            otherwise) of Licensees or Distributors to use import, market, offer
            for sale, and/or sell (for further use or resale) PPAI Branded
            Platelet Products without payment of any additional royalty or
            amount to Cytomedix. This license grant "runs with the PPAI Branded
            Platelet Product sold (provided that a PPAI Branded Disposable Kit
            is used in each Platelet Therapy administered therewith)" and the
            Licensed Patents shall be exhausted with respect to every PPAI
            Branded Platelet Product as to which the required royalty hereunder
            is paid. For purposes of this Agreement, the limited license grant
            set forth in this Section 2.1 is hereinafter referred to as the
            "Licensed Patent Rights." Licensees shall have no right to perform a
            Platelet Service unless a single use PPAI Branded Disposable Kit is
            used in conjunction therewith.

                                       3
<PAGE>

      2.2.  Grant of Immunity. Cytomedix (for itself and on behalf of its
            predecessors, successors, assigns, and each of its and their
            respective Affiliates and sublicensees, officers, directors,
            employees and agents) (collectively, the "Cytomedix Parties") hereby
            irrevocably grants immunity to Licensees, their respective
            predecessors, successors and assigns, and each of their respective
            officers, directors, employees, agents, shareholders, partners,
            representatives, and all other persons acting by or on their behalf)
            (collectively, the "PPAI Releasees") against any and all actions for
            or claims of infringement (whether based on a direct or contributory
            infringement, inducement to infringe, or other theory) relating to
            the use of PPAI Branded Platelet Products before the Effective Date
            of this Agreement.

      2.3.  No Implied Licenses. No rights or licenses, other than those
            expressly granted herein with respect to the Licensed Patents or any
            other intellectual property owned or controlled by Cytomedix, are
            granted or shall be deemed granted to Licensees or any other Entity
            (including any purchaser of Platelet Services or PPAI Branded
            Products).

      2.4.  Taxes and Authorizations. Licensees shall be solely responsible for
            the payment and discharge of any taxes, duties, or withholdings
            relating to any transaction in connection with the manufacture, use,
            sale, or other commercialization of any of the Platelet Services or
            PPAI Branded Products. Licensees shall, at their own expense, be
            responsible for applying for and obtaining any approvals,
            authorizations, or validations relative to this Agreement under the
            appropriate federal, state, or local laws.

3.    Royalties, Reports and Payments.

      3.1.  Royalty. Licensees shall pay monthly royalties to Cytomedix for the
            Licensed Patent Rights in an amount equal to ten percent (10%) of
            monthly Gross Sales (as defined in Section 1.3 hereof) in each
            country in which a Licensed Patent is in force until the expiration
            of such Licensed Patent in such country. Notwithstanding anything
            herein to the contrary, Licensees shall pay minimum royalties as
            follows: (i) $40 for each Platelet Service provided by Licensees
            (excluding Platelet Services provided using Third Party Licensed
            Products); (ii) $30 for each PPAI Branded Disposable Kit sold by
            Licensees prior to January 1, 2006 (whether to or through a
            Distributor, other intermediary, or end-user) for use by any Entity
            other than Licensees in providing Platelet Therapies; (iii) $35 for
            each PPAI Branded Disposable Kit sold by Licensees between (and
            including) January 1 and June 30, 2006; and (iv) $40 for each PPAI
            Branded Disposable Kit sold by Licensees between (and including)
            July 1, 2006 and November 24, 2009.

      3.2.  Notwithstanding anything in Section 3.1, when a Platelet Service is
            provided by a Licensee, the Licensee shall become obligated to pay a
            royalty equal to ten percent (10%) of Gross Sale revenue earned for
            the Platelet Service and for any PPAI Branded Platelet Product used
            in providing that service, regardless of whether PPAI separately
            invoices the customer for the sale or use of the PPAI Branded
            Platelet Product in connection with that service; provided, however,
            that the Licensee shall not be required to pay Cytomedix an
            additional minimum royalty for having used a PPAI Branded Platelet
            Product in providing that service as long as the Gross Sale revenue
            earned from which the royalty is paid shall include both the charge
            for providing a Platelet Service and the charge for using a PPAI
            Branded Platelet Product. Thus, by way of example, if PPAI invoices
            a customer a total of $500.00 for having provided a Platelet Service
            using a PPAI Branded Product (whether as a single charge or as
            separate charges for the service and the product), then the royalty
            to be paid by PPAI shall be $50 (or 10% of the Gross Sale associated
            with the Platelet Service) and there shall be no additional royalty
            payable by PPAI for having used a PPAI Branded Platelet Product. By
            way of further example, if PPAI invoices a customer a total of
            $300.00 for having provided a Platelet Service using a PPAI Branded
            Product (whether as a single charge or as separate charges for the
            service and the product), then the royalty to be paid by PPAI shall
            be $40 and there shall be no additional royalty payable by PPAI for
            having used a PPAI Branded Platelet Product.

                                       4
<PAGE>

      3.3.  Royalty Reports and Records. Within ten (10) days following the end
            of each calendar month of this Agreement, Licensees shall each
            deliver to Cytomedix a written report showing in reasonably specific
            detail the number of Platelet Therapies provided, the sales of each
            Platelet Product sold (whether of PPAI Branded Platelet Product or
            Third Party Licensed Product), sales of any Platelet Services sold,
            the aggregate Gross Sales proceeds received in respect of such
            sales, and the aggregate royalties owing in respect thereof (the
            "Royalty Report"). Such report shall separately identify sales and
            royalties owing for Platelet Products sold through Distributors. The
            Licensees shall maintain for a period of three years following
            delivery of a Royalty Report complete and accurate records in
            sufficient detail to enable the royalty payable thereunder to be
            determined. Licensees shall keep accurate records of all operations
            affecting payments hereunder.

      3.4.  Audits. Licensees shall permit Cytomedix or its duly authorized
            agent to inspect all records required to be maintained under this
            Agreement and to make copies of or extracts from such records during
            regular business hours throughout the term of this Agreement and for
            a period of three (3) years thereafter. Additionally, upon the
            written request of Cytomedix, but not more than twice during each
            annual period of this Agreement, Licensees shall permit an
            independent audit of their performance hereunder, which audit shall
            be conducted by a party selected by Cytomedix. Licensees shall
            provide Cytomedix's auditors with access during normal business
            hours to such of the records of each Licensee as are reasonably
            necessary to verify the accuracy of any Royalty Report delivered by
            each Licensee. Licensees further shall use their best efforts, as
            reasonably required by Cytomedix, to cause any supplier or
            Distributor of Platelet Products (whether PPAI Branded Platelet
            Product or Third Party Licensed Product) to provide Cytomedix with
            copies of records reasonably necessary to verify the Platelet
            Products sold to Licensees for any period covered by this Agreement.
            If Cytomedix's auditor demonstrates by way of written report that
            additional royalties were owed during an audited period, the
            Licensee shall pay said additional royalties due within ten (10)
            days of the date Cytomedix delivers such report to the Licensee. The
            fees charged by such accountant shall be paid by Cytomedix, unless
            the report concludes that the royalties payable by the Licensee for
            the audited period are more than one hundred five percent (105%) of
            the royalties actually paid for such audited period, in which case
            the Licensee shall pay all fees charged by such accountant.

      3.5.  Payment Terms. Royalties shown to be owing in any Royalty Report
            shall be paid on or before the tenth (10th) day following the close
            of each calendar month, and shall be submitted to Cytomedix
            contemporaneous with the submission of each monthly Royalty Report
            required to be submitted by each Licensee. If the royalty payable
            remains unpaid at the time due, then interest shall accrue on such
            unpaid amount, until paid, at twenty percent (20%) per annum.

                                       5
<PAGE>

      3.6.  Lump-Sum Payment. In addition to the payment of royalties specified
            in Section 3.1, on the date that the Bankruptcy Court enters an
            order approving this Agreement, PPAI and Transcorporeal shall become
            absolutely and unconditionally liable to Cytomedix in the amount of
            Two Hundred Fifty Thousand Dollars ($250,000). The liability created
            under this Section 3.6 shall be paid as follows:

            (i)   PPAI shall immediately, upon executing this agreement, deliver
                  to Cytomedix's counsel the Nine Thousand Five Hundred Dollars
                  ($9,500) "adequate protection" payment currently due under the
                  order of the Bankruptcy Court, thereby bringing the principal
                  balance of the "adequate protection" funds in escrow to
                  Fifty-Seven Thousand Dollars ($57,000).

            (ii)  On the date that the Bankruptcy Court enters an order
                  approving this Agreement, Cytomedix's counsel shall be
                  authorized to distribute the entirety of the escrowed
                  "adequate protection" funds, including accrued interest earned
                  thereon, to Cytomedix.

            (iii) On the date that the Bankruptcy Court enters and order
                  approving this Agreement, Licensees shall by wire transfer
                  deliver an additional Forty-Three Thousand Dollars ($43,000)
                  to Cytomedix's account in accordance with the prior written
                  instructions of Cytomedix.

            (iv)  The remaining liability created under this Section 3.6 shall
                  be reflected in a promissory note bearing a principal amount
                  of One Hundred Fifty Thousand Dollars ($150,000), executed by
                  PPAI and Transcorporeal, jointly and severally, and dated as
                  of June 30, 2005. The promissory note shall bear an eight
                  percent (8.0%) annual rate of interest. Payments on the note
                  in the amount of $3,041.46 shall be made monthly, with the
                  first payment to be made on July 1, 2005. A balloon payment in
                  the amount of $67,248.31 shall be made to Cytomedix on June
                  30, 2008.

      This Agreement shall not become effective unless and until Cytomedix shall
      have received the lump-sum payments from Licensees specified in
      subparagraphs (ii) and (iii) hereof, and the date of receipt of such
      payment shall be the "Effective Date" of this Agreement. Cytomedix shall
      not be bound by any terms of this Agreement if, on or before August 15,
      2005, this Agreement shall not have been approved by the Bankruptcy Court
      and the lump-sum payments shall not have been received.

4.    Representations and Warranties.

      4.1.  Authorization. Each party hereby represents and warrants that it (a)
            has the power and authority and the legal right to enter into this
            Agreement on behalf of itself and all affiliated entities and to
            perform its obligations hereunder, and (b) has taken all necessary
            action on its part to authorize the execution and delivery of this
            Agreement and the performance of its obligations hereunder. This
            Agreement has been duly executed and delivered on behalf of such
            party, and constitutes a legal, valid, binding obligation,
            enforceable against such party in accordance with its terms.

                                      6
<PAGE>

      4.2.  Limitation of Warranties. Nothing in this Agreement shall be
            construed as: (a) a warranty or representation by Cytomedix as to
            the validity or scope of any Licensed Patent Rights; (b) a warranty
            or representation that anything made, used, sold, or otherwise
            disposed of under any license granted in this Agreement is or will
            be free from infringement of patent or from suits by third parties
            for infringement of patent; (c) conferring the right to use in
            advertising, publicity or otherwise any trademark, trade name, or
            names, or any contraction, abbreviation, simulation or adaptation
            thereof, of either party; or (d) an obligation to furnish any
            know-how associated with the Patents.

      4.3.  Disclaimer. Cytomedix makes no representations other than those
            expressly set forth in this Article 4. Cytomedix expressly disclaims
            all other representations, warranties and conditions, express,
            implied, statutory, or otherwise, regarding the Licensed Patent
            Rights and the confidential information, including without
            limitation, any warranty of merchantability, fitness or a particular
            purpose, or non-infringement.

      4.4.  No Challenge to Patents. Licensees agree not to challenge or cause
            to be challenged, directly or indirectly, the validity and/or
            enforceability of the Licensed Patents in any court or other
            tribunal, including the United States Patent and Trademark Office.
            Notwithstanding the foregoing, if a court of competent jurisdiction
            enters judgment from which no appeal can be taken declaring each of
            the claims of the Licensed Patents to be invalid, then the
            obligations of Licensees to make any further payments to Cytomedix
            shall cease, but Licensees shall not be entitled to recover any
            payments made prior to entry of said final, non-appealable judgment.

      4.5.  Advertising. PPAI owns and develops various internet sites and
            domains, including The Platelet Gel Network and website
            http://www.plateletgel.net (collectively, whether now existing or
            hereinafter designed or created, the "Websites"). PPAI also owns,
            operates, or manages, in whole or in part, various educational and
            training facilities and programs, including The Florida Platelet Gel
            Symposium (collectively, whether now existing or hereinafter
            designed or created, the "Symposia"). Cytomedix will be invited to
            participate in all future Symposia as a presenter and/or exhibitor
            for wound care products and topics. At no time shall PPAI permit
            parties to advertise, promote, market, or sell their products or
            services on or in any of the Websites or Symposia unless said
            parties are authorized licensees, distributors, or sales
            representatives of Cytomedix.

      4.6.  Representation regarding Platelet Products, Platelet Services,
            Websites, Distributors, and Related Financial Data. Licensees
            represent that (a) all products currently marketed or promoted by
            Licensees that constitute PPAI Branded Platelet Products are listed
            on Exhibit B, (b) all contracts for the providing of Platelet
            Services, along with a listing of Platelet Services provided by
            PPAI, are listed on Exhibit C, (c) all Websites or internet domain
            sites in which either Licensee has an ownership, controlling, or
            equitable interest are listed on Exhibit D, and (d) all financial
            data regarding sales of Platelet Products provided to Cytomedix
            before or after the Effective Date are and shall be true and
            accurate representations of such data in all material respects as
            reflected on Licensees' financial statements and in Licensees'
            financial sales records. PPAI Branded Platelet Products shall
            hereinafter through expiration be designed in such manner that a
            Disposable Kit is required for each Platelet Therapy administered.
            Licensees shall update and keep Exhibits B, C, and D current after
            the Effective Date within 10 business days of any change in
            Licensees' business or operations that would require the addition or
            deletion of items listed on such Exhibits.

                                       7
<PAGE>

5.    Termination.

      5.1.  Expiration/Termination. This Agreement shall commence on the
            Effective Date and shall expire on the earlier of (i) November 24,
            2009, (ii) if there has been a breach of any material provision of
            this Agreement, thirty (30) days following the sending of written
            notice of such breach by Cytomedix if such breach has not been
            completely cured within said thirty (30) days, and (iii) the
            occurrence of a "Change-of-Control Event," as hereinafter defined.
            For purposes of this Agreement, a "Change-of-Control Event" means
            any transaction or any series of transactions aggregated together
            (regardless of whether those transactions are in any way related or
            integrated to one another) in any three-year rolling period that
            results in a change in ownership or voting control of more than 50%
            of the outstanding equity or voting securities or membership or
            controlling interests of Representative.

      5.2.  Termination If Agreement Not Approved by Bankruptcy Court Before
            8/15/2005. PPAI shall use its best efforts to obtain an order from
            the court in the Bankruptcy Action approving this Settlement
            Agreement, and shall file a Section 9019 motion for that purpose
            within five (5) business days of execution of this Agreement. This
            Agreement shall terminate automatically and be of no force and
            effect if an order approving this Agreement is not entered by the
            Bankruptcy Court on or before August 15, 2005.

      5.3.  Effect of Expiration or Termination. Expiration or termination of
            this Agreement shall not relieve Licensees of any obligation
            accruing prior to such expiration or termination. Notwithstanding
            the foregoing, all rights and licenses granted to Licensees
            hereunder shall terminate upon any termination or expiration of this
            Agreement. Unless termination shall be based on Section 5.2 hereof,
            the provisions of Articles 3, 4, 6, 7, 8, and 9, and Sections 2.2
            and 5.3 hereof shall survive the expiration or termination of this
            Agreement. Termination of this Agreement shall not limit any party
            from pursuing any other remedies otherwise available to it,
            including without limitation, injunctive relief.

6.    Indemnification and Insurance.

      6.1.  Indemnification by Licensee. Licensees shall defend, indemnify, and
            hold Cytomedix, its directors, officers, employees, and agents
            harmless from and against all losses, liabilities, damages and
            expenses (including attorneys' fees and costs), including those for
            death, personal injury, illness, or property damage, arising from
            any use of the Licensed Patent Rights.

      6.2.  Insurance. During the term of this Agreement, Licensees shall
            maintain liability insurance in the minimum amount of $3 million in
            the aggregate and $1 million per occurrence.

                                       8
<PAGE>

7.    Releases.

      7.1.  With the exception of the obligations and promises of the parties to
            each other under this Agreement, and subject to Section 7.2 hereof,
            Cytomedix, on behalf of itself, its predecessors and successors, and
            each of their affiliates, officers, directors, employees and agents,
            hereby irrevocably and unconditionally release and forever discharge
            Licensees, and each of their officers, directors, employees, agents,
            shareholders, representatives, parent companies, subsidiaries,
            Affiliates, partners, predecessors, and all other persons acting by
            or on their behalf (collectively, the "PPAI Releasees"), of and from
            any claims that Cytomedix has ever had or may now have against the
            PPAI Releasees related to the claims that were asserted in the
            Illinois Action.

      7.2.  Notwithstanding the terms of Section 7.1, Cytomedix does not release
            customers or agents of Licensees or suppliers of any processes or
            products that are covered by the claims of the Licensed Patents;
            provided, however, that such customers, agents, or suppliers shall
            be released from any claims that Cytomedix has ever had or may now
            have against them based on their practice, performance, manufacture,
            use, or sale of Platelet Therapies using Platelet Services supplied
            by Licensees or PPAI Branded Platelet Products.

      7.3.  With the exception of the obligations and promises of the parties to
            each other under this Agreement, Licensees, on behalf of themselves
            and all other PPAI Releasees, and all predecessors and successors,
            and each of their shareholders, affiliates, members, officers,
            directors, employees and agents, hereby irrevocably and
            unconditionally release and forever discharge Cytomedix, its
            officers, directors, employees, agents, shareholders,
            representatives, parent companies, subsidiaries, affiliated
            companies, predecessors, and all other persons acting by or on
            behalf of Cytomedix (collectively, the "Cytomedix Releasees"), of
            and from any claims that either Licensee has ever had or may now
            have against Cytomedix or any of the other Cytomedix Releasees
            related to the counterclaims and affirmative defenses that were
            asserted in the Illinois Action.

8.    Disputes and Dispute Resolution.

      8.1.  Except as specified elsewhere in the Agreement, any dispute arising
            out of or relating to the formation or performance of this Agreement
            (including, without limitation, the breach, termination, or validity
            of this Agreement, or the determination of whether a product is a
            Platelet Product) which has not been resolved by good faith
            negotiation between representatives of Licensees and Cytomedix who
            have authority to fully and finally resolve the dispute within
            thirty (30) days after the delivery of a dispute notice by one Party
            to the other, shall be finally resolved by binding arbitration in
            Chicago, Illinois by three arbitrators in accordance with the
            American Arbitration Association ("AAA") Commercial Arbitration
            Rules then currently in effect (the "Rules"); provided, however,
            that if one Party fails to participate in the negotiation as agreed
            herein, the other Party can commence binding arbitration prior to
            the expiration of the time period set forth above. The three
            arbitrators' award shall be binding on the Parties. One arbitrator
            shall be selected by each Party. The third arbitrator shall be
            chosen by agreement of the Parties. If, within thirty (30) days
            after a Party notifies the other that arbitration must be commenced,
            either Party has not selected its arbitrator or if the Parties fail
            within such time to agree upon the third arbitrator, such
            arbitrator(s) shall be appointed by AAA in accordance with its
            Rules. The arbitrators shall have no jurisdiction or authority to
            award treble, punitive or exemplary damages against either Party.
            The prevailing Party in any arbitration hereunder shall be awarded
            its reasonable attorneys fees and costs in addition to any other
            relief to which it may be entitled under this Agreement, but such
            attorney fees and costs shall not exceed fifty percent (50%) of the
            amount in dispute. The binding arbitration shall be governed by the
            Federal Arbitration Act, 9 U.S.C. ss.ss.1-16, and judgment upon the
            award rendered by the arbitrators, or a majority thereof, may be
            entered by any court having jurisdiction thereof. If a Party is
            forced into court to enforce an arbitration award, it shall be
            entitled to recover its reasonable attorney fees and costs. In any
            arbitration, the parties shall be entitled following initiation of
            the action to the same discovery that they would be allowed under
            the Federal Rules of Civil Procedure; provided, however, that the
            parties shall cooperate in good faith to cause such discovery to be
            completed within ninety (90) days following initiation of the
            arbitration action.

                                       9
<PAGE>

      8.2.  Damages. Licensees and Cytomedix each agree to waive any right to
            receive treble, punitive, consequential, special or indirect damages
            relating in any way to this Agreement.

9.    Miscellaneous.

      9.1.  Confidentiality. Licensees may disclose the terms of this Agreement
            to Bank of America and to the U.S. Trustee in connection with the
            Bankruptcy Action. Licensees agree to otherwise keep the terms of
            this Agreement confidential and shall not disclose them without the
            express written permission of Cytomedix, except in response to a
            Court order (for which Cytomedix received reasonable advance
            notice), or in any action concerning the enforcement of this
            Agreement, or as otherwise required by law. Cytomedix may disclose
            any aspect or part of this Agreement as it deems necessary or
            appropriate to its business affairs.

      9.2.  Notices. Any consent, notice or report required or permitted to be
            given or made under this Agreement by one of the parties hereto to
            the other party shall be in writing and delivered to such other
            party at its address indicated below, or to such other address as
            the addressee shall have last furnished in writing to the addressor.
            Said notice shall be deemed to have been given on the date of its
            receipt by the addressee.

                  If to PPAI:           Perfusion Partners & Associates, Inc.
                                        6227 Foxfire Lane
                                        Fort Myers, Florida 33912
                                        Attention: David Buzenius, President

                  If to Cytomedix:      Cytomedix, Inc.
                                        416 Hungerford Drive, Suite 300
                                        Rockville, Maryland 20850
                                        Attention: Dr. Kshitij Mohan, CEO

                  If to Transcorporeal: Transcorporeal, Inc.
                                        6227 Foxfire Lane
                                        Fort Meyers, Florida 33912
                                        Attention: David Buzenius, President

      9.3.  Governing Law. This Agreement shall be governed by and construed in
            accordance with the laws of the State of Illinois, without regard to
            the conflicts of law principles thereof. In the event legal action
            is brought by any party to enforce its rights under this Agreement,
            the losing party shall pay all of the prevailing party's reasonable
            attorneys' fees and legal fees incurred in such matter. The parties
            hereto agree that the District Court for the Northern District of
            Illinois shall be the exclusive venue in which any litigation
            arising under or related to this Agreement may proceed.

                                       10
<PAGE>

      9.4.  Assignment. Licensees may not assign any of their respective rights
            or obligations under this Agreement to any person or entity without
            prior written consent of Cytomedix. Cytomedix may assign its rights
            under this Agreement in its sole and absolute discretion.

      9.5.  Waiver. Failure by any party to insist upon strict compliance with
            any of the terms, covenants, or conditions of this Agreement shall
            not be deemed a continuing waiver of such term, covenant, or
            condition, nor shall any waiver or relinquishment of any right or
            power herein at any time be deemed a waiver or relinquishment of the
            same or any other right or power, whether or not similar. Waiver of
            a breach hereunder may be effected only by a writing signed by the
            waiving party and shall not constitute a waiver of any other breach.

      9.6.  Entire Agreement. This Agreement embodies the entire agreement
            between the parties and supersedes any prior representations,
            understandings and agreements between the parties regarding the
            subject matter hereof. There are no representation, understandings
            or agreements, oral or written, between the parties regarding the
            subject matter hereof that are not fully expressed herein.

      9.7.  Severability. The parties agree that if any part, term, or provision
            of this Agreement shall be found illegal or in conflict with any
            valid controlling law, the validity of the remaining provisions
            shall not be affected thereby. Additionally, in the event the
            legality of any provision of this Agreement is brought into question
            because of a decision by a court of competent jurisdiction,
            Cytomedix may, by written notice to Licensees, revise the provision
            in question or may delete it entirely so as to comply with the
            decision of said court.

      9.8.  Independence of the Parties. This Agreement shall not constitute the
            designation of any party as the representative or agent of the
            other, nor shall any party by this Agreement have the right or
            authority to make any promise, guarantee, warranty, or
            representation, or to assume, create, or incur any liability or
            other obligation of any kind, express or implied, against or in the
            name of, or on behalf of, the other, except as expressly provided
            herein.

      9.9.  Counterparts. This Agreement may be executed in two or more
            counterparts, each of which shall be deemed an original, but all of
            which together shall constitute one and the same instrument.

                                       11
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Agreement on the date
indicated below.

Cytomedix, Inc.                        Transcorporeal, Inc.
                                       Perfusion Partners & Associates, Inc.

By:/s/Kshitij Mohan                    By: /s/David Buzenius
      Dr. Kshitij Mohan, CEO               David Buzenius, Individually and as
                                           President of PPAI and Transcorporeal

Date: June 26, 2005                    Date:  June 23, 2005

                                       By:/s/Patrick Penne
                                             Patrick Penne, Individually and as
                                             Vice-President of PPAI and
                                             Transcorporeal

                                       Date: June 23, 2005

                                       12
<PAGE>

                                    EXHIBIT A

                                Licensed Patents

U.S. Patent No. 5,165,938 entitled "Wound Healing Agents"

Australia Patent No. 596, 954 entitled "Wound Healing Agents"

Canada Patent No. 1,261,259 entitled "Wound Healing Agents"

Europe Patent No. 202,298 entitled "Wound Healing Agents" (validated in
Belgium, France, Germany, Great Britain, Netherlands, and Sweden)

Israel Patent No. 77,096 entitled "Wound Healing Agents"

Ireland Patent No. 57,894 entitled "Wound Healing Agents"

Japan Patent No. 1,986,949 entitled "Wound Healing Agents"

                                       13
<PAGE>

                                    EXHIBIT B

                   Schedule of PPAI Branded Platelet Products

Item Description               Manufacturer Number:
----------------               -------------------
Secquire Kit (15 Kits/case)           SK50-20
Secquire Limited (24/case)            SK50-LI     DT-8405
Secquire Centrifuge Machine           CL05-1017
Secquire Centrifuge Machine           CL05-1017-220
Four Place Rotor Systems              R-52151
(20-40 ml Change Over Kit)
Aero Carrier Bucket (10-20 ml)        AC-5101
Two Place Rotor System (10-20 ml)     R-52152
Change Over Kit)
Four Place Swinging Bucket Rotor      BR-05-103B
Shield Bucket                         SB-05-170
Dual Tip Applicator 26 ga x 3"        SA-0105
Dual Tip Applicator 26 ga x 4"        SA-0106
Dual Tip Applicator 26 ga x 7"        SA-3612
Dual Tip Applicator 20 ga x 2.5"      SA-0205
Dual Tip Applicator 20 ga x 4"        SA-3618
Dual Tip Applicator 20 ga x 7"        SA-3619
Dual Tip Applicator 20 ga x 10.25"    SA-3620
Dual Tip Applicator Endoscopic        SA-3650
Dual Spray Tip Applicator             SA-3660
Ratio Applicator Procedural Kit       SA-4400
11:1 Ratio (No Tips)
Aerosol Applicator, 11:1 Ratio        SA-6111
Aerosol Regulator                     SA-6030
Table Ratio Kit                       TRK-11

                                       14
<PAGE>

                                    EXHIBIT C

     Schedule of Platelet Services (including Contracts to Provide Platelet
                                    Services)

                 Platelet Service Contracts

Lee Memorial Health Systems, Fort Myers, FL
Florida Hospital, Sebring, FL
Winter Haven Hospital, Winter Haven, FL

                                       15
<PAGE>

                                    EXHIBIT D

                      Schedule of Websites or Domain Names

www.plateletgel.net

                                       16

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