Document:

NEITHER THIS SECURITY NOR THE SECURITIES
FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

COMMON STOCK PURCHASE WARRANT

 

CYTOMEDIX, INC.

 

	Warrant Shares: 1,079,137	Issue Date: February 19, 2013
	 	(the “Original Issue Date”)

 

This COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, MIDCAP FUNDING III, LLC, a Delaware limited liability
company, its successors and assigns (together, “Holder”) is entitled, at any time on or after the Issue Date
specified above and on or prior to the close of business on February 19, 2020 (the “Expiration Date”), to purchase
from CYTOMEDIX, INC., a Delaware corporation (the “Company”), up to ONE MILLION, SEVENTY-NINE THOUSAND, ONE
HUNDRED THIRTY-SEVEN (1,079,137) shares (the “Shares”) of the Common Stock, par value $0.0001 per share, of
the Company (the “Common Stock”) at a purchase price per share equal to $0.70 (the “Warrant Price”),
subject to the provisions and upon the terms and conditions set forth in this Warrant.

 

ARTICLE
1

EXERCISE.

 

1.1Method of
Exercise. Holder may exercise this Warrant in whole or in part by delivering to the Company a duly executed facsimile or electronic
(pdf) copy of a Notice of Exercise in substantially the form attached as Appendix 1 (or by delivery of an original or copy
of such Notice of Exercise by any other method permitted for providing notices under Article 5.4). Unless Holder is exercising
the cashless exercise right set forth in Article 1.2, Holder shall, within three (3) Trading Days following the date of exercise
as aforesaid, also deliver to the Company a certified or bank cashier’s check, wire transfer of immediately available funds
(to an account designated by the Company), or other form of payment acceptable to the Company, in the amount of the aggregate Warrant
Price for the Shares being purchased. As used herein, “Trading Day” means a day on which the principal Trading
Market is open for trading, and “Trading Market” means any of the following markets or exchanges on which the
Common Stock is or has most recently been listed or quoted for trading on the date in question: the NYSE Amex, the Nasdaq Capital
Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any
successors to any of the foregoing).

 

    	1

    	 

    
 

1.2Cashless
Exercise. This Warrant may be exercised, in whole or in part, by means of a "cashless exercise" in which the Holder
shall be entitled to receive a certificate for the number of the Shares equal to the quotient obtained by dividing [(A-B) (X)]
by (A), where:

 

(A) = the VWAP
on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a "cashless
exercise," as set forth in the applicable Notice of Exercise;

 

(B) = the Warrant
Price, as adjusted hereunder; and

 

(X) = the number
of the Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise
were by means of a cash exercise rather than a cashless exercise,

 

provided, however,
that if the Common Stock is not listed or quoted on a Trading Market, then (A), in the above formula, shall equal Fair Market Value.
“Fair Market Value” shall mean, with respect to one Share for any date, the price determined by the first of
the following clauses that applies: (a) if the Common Stock is listed or quoted on the National Association of Securities Dealers,
Inc. OTC Bulletin Board (the “OTC Bulletin Board”) but the OTC Bulletin Board is not a Trading Market, the average
of the daily volume weighted average trading price of the Common Stock for the ten (10) Trading Days immediately prior to such
date on the OTC Bulletin Board, (b) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and
if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock
so reported, or (c) as reasonably determined by the Board of Directors of the Company in good faith (provided, that in the event
Holder’s cashless exercise under Article 1.2 is exercised or deemed exercised in connection with an Acquisition, the Fair
Market Value shall be determined based upon the cash and fair market value of any securities and other consideration as would have
been paid for or in respect of each Share issuable (as of immediately prior to the closing of the Acquisition) upon exercise of
this Warrant as if such Share had been issued and outstanding on and as of the closing of such Acquisition).

 

1.3Delivery
of Certificate and New Warrant. Within three (3) Trading Days after Holder exercises this Warrant and, if applicable, the Company
receives payment of the aggregate Warrant Price, the Company shall deliver to Holder certificates for the Shares acquired and,
if this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the Shares not so acquired.
The Shares shall be deemed to have been issued, and Holder or any other person designated by Holder to be named therein shall be
deemed to have become a holder of record of such Shares for all purposes as of the date the Warrant shall have been exercised.
If the Company fails to deliver a certificate or certificates for the Shares as provided herein, in addition to any other remedy
available to Holder hereunder, at law or in equity, Holder will have the right to rescind the exercise of this Warrant.

 

    	2

    	 

    
 

1.4Replacement
of Warrants. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form
to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company shall execute and deliver,
in lieu of this Warrant, a new warrant of like tenor and amount.

 

1.5Treatment
of Warrant Upon Acquisition of Company.

 

1.5.1Certain
Definitions. For the purposes of this Warrant, “Acquisition” means (A) any sale or any other disposition
of all or substantially all of the assets of the Company, or (B) any reorganization, consolidation, or merger of the Company, or
(C) any sale of outstanding Company securities by holders thereof, whereby, in the case of (B) or (C) above, the holders of the
Company’s voting securities before the transaction beneficially own less than a majority of the outstanding voting securities
of the successor or surviving entity after the transaction (or, if the surviving entity is a wholly-owned subsidiary of another
corporation, such surviving entity’s parent). As used in this Article 1.5, “Marketable Securities” means
securities meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting requirements of Section
13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current
in its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares
or other security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this
Warrant on or prior to the closing thereof is then traded on a Trading Market, and (iii) Holder would not be restricted by contract
or by applicable federal and state securities laws from re-selling, within six (6) months and one day in compliance with the federal
securities laws, rules and regulations, following the closing of such Acquisition, all of the issuer’s shares and/or other
securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the
closing of such Acquisition. For purposes of this Article 1.6, “Affiliate” shall mean any person or entity that
owns or controls directly or indirectly ten percent (10%) or more of the voting capital stock of Company, any person or entity
that controls or is controlled by or is under common control with such persons or entities, and each of such person’s or
entity’s officers, directors, joint venturers or partners, as applicable.

 

    	3

    	 

    
 

1.5.2Treatment
of Warrant Upon Acquisition.

 

(A)Cash
or Marketable Securities Acquisition. In the event of an Acquisition (other than a True Asset Sale as defined in Section 1.5.2(B)
below) in which (1) the sole consideration is cash, Marketable Securities, or a combination thereof and (2) such consideration
is received by the Company’s stockholders in respect of their shares of the Company’s capital stock (including, without
limitation, pursuant to the dissolution and liquidation of the Company in connection with or as a result of such Acquisition),
Holder may exercise its cashless exercise or purchase right under this Warrant and such exercise will be deemed effective immediately
prior to the consummation of such Acquisition; provided, that if the Holder fails to make such election prior to the consummation
of the Acquisition, the Warrant will, subject to Article 5.7, expire upon the consummation of such Acquisition. The Company shall
provide Holder with written notice of any proposed Acquisition (which notice shall reasonably identify the parties thereto, the
proposed structure thereof, the amount and kind of consideration to be paid in connection therewith and the terms and conditions
of payment, the number of shares of capital stock outstanding or issuable upon the exercise of rights then outstanding, and facts
as shall be reasonably necessary to indicate the effect of the Acquisition on this Warrant), together with such reasonable information
as Holder may request in connection with such contemplated Acquisition giving rise to such notice, which shall be delivered to
Holder not less than ten (10) days prior to the closing of the proposed Acquisition. Any exercise of this Warrant after delivery
of such notice and prior to the consummation of the Acquisition described in such notice shall be deemed to be an exercise in connection
with such Acquisition for purposes of Article 1.2. If the Acquisition described in such notice is terminated or abandoned prior
to the consummation thereof, the Company shall provide prompt notice thereof and, unless Holder advises the Company in a written
notice that it elects to reaffirm the exercise, any purported exercise of this Warrant in connection with such proposed Acquisition
shall be null and void.

 

(B)Asset
Sale. In the event of an Acquisition that is an arm’s length sale of all or substantially all of the Company’s
assets (and only its assets) to a third party that is not an Affiliate of the Company and to which 1.5.2(A) above does not apply
(a “True Asset Sale”), Holder may, at its option, (1) exercise its rights under this Warrant and such exercise
will be deemed effective immediately prior to the consummation of such True Asset Sale, or (2) elect to have the terms of Section
1.5.2(C) below apply; provided, that if Holder fails to make such election prior to the consummation of the Acquisition the Warrant
will continue until the Expiration Date if the Company continues as a going concern following the closing of any such True Asset
Sale. The Company shall provide Holder with written notice of any proposed True Asset Sale (which notice shall identify
the parties thereto, the proposed structure thereof, the amount and kind of consideration to be paid in connection therewith and
the terms and conditions of payment, the number of shares of capital stock outstanding or issuable upon the exercise of rights
then outstanding, and facts as shall be reasonably necessary to indicate the effect of the True Asset Sale on this Warrant),
together with such reasonable information as Holder may request in connection with such True Asset Sale giving rise to such notice,
which shall be delivered to Holder not less than ten (10) days prior to the closing of the proposed True Asset Sale. Any exercise
of this Warrant after delivery of such notice and prior to the consummation of the True Asset Sale described in such notice shall
be deemed to be an exercise in connection with such True Asset Sale for purposes of Article 1.2. If the True Asset Sale
described in such notice is terminated or abandoned prior to the consummation thereof, the Company shall provide prompt notice
thereof and any purported exercise of this Warrant in connection with such proposed True Asset Sale shall be null and void.

 

    	4

    	 

    
 

(C)Assumption
of Warrant. Upon the closing of any Acquisition other than as particularly described in subsection (A) or (B) above, the surviving
or successor entity shall assume this Warrant and the obligations of the Company hereunder, and this Warrant shall, from and after
such closing, be exercisable for the same class, number and kind of securities, cash and other property as would have been paid
for or in respect of the Shares issuable (as of immediately prior to such closing) upon exercise in full hereof as if such Shares
had been issued and outstanding on and as of such closing, at an aggregate Warrant Price equal to the aggregate Warrant Price in
effect as of immediately prior to such closing (with the Warrant Price being appropriately adjusted and apportioned based upon
such securities, cash and other property in order to protect the economic value of this Warrant immediately prior to the closing
of such Acquisition); and subject to further adjustment thereafter from time to time in accordance with the provisions of this
Warrant. The Company shall cause any surviving or successor entity in an Acquisition in which the Company is not the surviving
or successor entity to assume in writing all of the obligations of the Company under this Warrant prior to the closing of such
Acquisition, including agreements to deliver to Holder in exchange for this Warrant a security of such surviving or successor entity
evidenced by a written instrument issued by the surviving or successor entity substantially similar in form to this Warrant and
exercisable as provided herein (without regard to any limitations on the exercise of this Warrant). Upon the closing of such an
Acquisition, the surviving or successor entity shall succeed to, and be substituted for, and shall assume all of the obligations
of the Company under this Warrant.

 

(D)Conditional
Exercise. Notwithstanding any other provision hereof, if an exercise of this Warrant is to be made in connection with an Acquisition,
such exercise may at the election of Holder be conditioned upon the consummation of such transaction, in which case such exercise
shall not be deemed to be effective until immediately prior to the consummation of such transaction.

 

    	5

    	 

    
 

ARTICLE
2

ADJUSTMENTS TO THE SHARES.

 

2.1Stock Dividends,
Splits, Etc. If the Company declares or pays a dividend on the outstanding shares of the Common Stock payable in additional
shares of the Common Stock or other securities, then upon exercise of this Warrant, for each Share acquired, Holder shall receive,
without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares
of record as of the date the dividend occurred. If the Company subdivides the outstanding shares of the Common Stock by reclassification
or otherwise into a greater number of shares, the number of Shares purchasable hereunder shall be proportionately increased and
the Warrant Price shall be proportionately decreased. If the outstanding shares of the Common Stock are combined or consolidated,
by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased and the
number of Shares shall be proportionately decreased.

 

2.2Reclassification,
Exchange, Conversion or Substitution. Upon any reclassification, exchange, conversion, substitution or similar event affecting
the outstanding shares of the Common Stock, Holder shall be entitled to receive, upon exercise of this Warrant, the number and
kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised in full immediately
before such reclassification, exchange, conversion, substitution or similar event, at an aggregate Warrant Price not exceeding
the aggregate Warrant Price in effect as of immediately prior thereto. The Company or its successor shall promptly issue to Holder
a certificate pursuant to Article 2.6 hereof setting forth the number, class and series or other designation of such new securities
or other property issuable upon exercise of this Warrant as a result of such reclassification, exchange, conversion, substitution
or similar event. The provisions of this Article 2.2 shall similarly apply to successive reclassifications, exchanges, conversions,
substitutions, and similar events.

 

2.3Pro Rata
Distributions. In addition to any adjustments pursuant to Articles 2.1 and 2.2 above, the Holder, as the holder of this Warrant,
shall be entitled to receive such dividends paid and distributions of any kind made to the holders of Common Stock of the Company
to the same extent as if the Holder had exercised this Warrant into Common Stock (without regard to any limitations on exercise
herein or elsewhere and without regard to whether or not a sufficient number of shares are authorized and reserved to effect any
such exercise and issuance) and had held such shares of Common Stock on the record date for such dividends and distributions. Payments
under the preceding sentence shall be made concurrently with the dividend or distribution to the holders of Common Stock.

 

2.4No Impairment.
The Company shall not, by amendment of its Certificate of Incorporation or through any reorganization, recapitalization, transfer
of assets, consolidation, merger, share exchange, dissolution, issue, sale of securities, closing of its stockholder books and
records, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed
or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions
of this Article 2 and in taking all such actions as may be necessary or appropriate to protect Holder's rights under this Warrant
against impairment.

 

    	6

    	 

    
 

2.5Fractional
Shares. No fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder
would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by the Warrant Price or round up to the next whole
share.

 

2.6Certificate
as to Adjustments. Upon each adjustment of the Warrant Price, the Common Stock and/or number of Shares, or upon the occurrence
of any transaction or event described in this Article 2, the Company shall promptly notify Holder in writing, and, at the Company’s
expense, promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such
adjustment and the facts upon which such adjustment is based. The Company shall, upon written request, furnish Holder a certificate
setting forth the Warrant Price, Common Stock and number of Shares in effect upon the date thereof and the series of adjustments
leading to such Warrant Price, Common Stock and number of Shares.

 

ARTICLE
3

REPRESENTATIONS, WARRANTIES, AND COVENANTS OF THE COMPANY.

 

3.1Representations
and Warranties. The Company represents and warrants to, and agrees with, Holder as follows:

 

3.1.1Corporate
Existence. The Company is a corporation duly organized, validly existing and in good standing in its jurisdiction of incorporation,
has the corporate power and authority to own and operate its properties and to carry on its business as now conducted and as proposed
to be conducted, and is qualified as a foreign corporation in all jurisdictions where such qualification is required.

 

3.1.2Corporate
Authority. The Company has all requisite legal and corporate power and authority to execute, issue and deliver this Warrant,
to issue the Shares issuable upon exercise of this Warrant, and to carry out and perform its obligations under this Warrant.

 

3.1.3Corporate
Action. All corporate action on the part of the Company, ifs officers, directors and shareholders, necessary for the authorization,
execution, delivery and performance of its obligations under this Warrant and for the authorization, issuance and delivery of this
Warrant and the Shares issuable upon exercise hereof has been taken and this Warrant constitutes the legally binding and valid
obligation of the Company enforceable in accordance with its terms.

 

3.1.4No
Violation. The execution, delivery and performance of this Warrant will not result in (i) any violation of, be in conflict
with, or constitute a default under, with or without the passage of time or the giving of notice, any provision of the Company’s
Certificate of Incorporation or by-laws, as amended, any provision of any judgment, decree, or order to which the Company is a
party, by which it is bound, or to which any of its material assets are subject, any contract, obligation or commitment to which
the Company is a party or by which it is bound, or (ii) the creation of any lien, charge, encumbrance or restriction on any assets
of the Company.

 

    	7

    	 

    
 

3.1.5Authorized
Shares. The Company shall at all times during the term of this Warrant keep reserved out of its authorized and unissued capital
stock a sufficient number of shares of Common Stock to permit exercise in full of this Warrant. All Shares which may be issued
upon the exercise of this Warrant shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and
free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state
securities laws.

 

3.2Exchange
Act Reports; Legend.

 

3.2.1Reports.
With a view to making available to Holder the benefits of Securities and Exchange Commission (“SEC”) Rule 144
and any other rule or regulation of the SEC that may at any time permit Holder to sell securities of the Company to the public
without registration or pursuant to a registration on Form S-3 (or any other Form that may be available at the time of such proposed
sale), the Company shall, so long as it is subject to the reporting requirements of the Act (and the rules and regulations promulgated
thereunder) and the Exchange Act, (A) make and keep available adequate current public information, as those terms are understood
and defined in SEC Rule 144, at all times; (B) use commercially reasonable efforts to file with the SEC in a timely manner all
reports and other documents required of the Company under the Act and the Exchange Act; and (C) furnish to Holder, so long as Holder
owns the Warrant or Shares, forthwith upon request (1) a written statement by the Company that it has complied with the reporting
requirements of SEC Rule 144, the Act and the Exchange Act, or that it qualifies as a registrant whose securities may be resold
pursuant to Form S-3 (or any other Form that may be available at the time of such proposed sale), and (2) such other information
as may be reasonably requested in availing Holder of any rule or regulation of the SEC that permits the sale of any securities
without registration or pursuant to Form S-3 (or any other Form that may be available at the time of such proposed sale).

 

3.2.2Legend.
Neither this Warrant nor any certificate or instrument evidencing this Warrant or the Shares shall bear (and the Company hereby
agrees to remove or not to affix, as applicable and provided herein) any restrictive or other legend, notice or provision (including
without limitation the legend included on the first page of this Warrant as of the Issue Date or any similar legend) restricting
the sale or transfer of this Warrant or the Shares if (A) a transfer of this Warrant or the Shares is made or proposed to be made
pursuant to SEC Rule 144 or (B) such a legend, notice or provision is not required in order to establish compliance with any provisions
of the Act. Within three (3) Trading Days of (X) any written request by Holder indicating its intention to make a transfer of this
Warrant or all or a portion of the Shares pursuant to SEC Rule 144 or (Y) satisfaction of the registration and prospectus delivery
requirements of the Act, the Company shall remove any such legend, notice or provision restricting the sale or transfer of this
Warrant or the Shares, as applicable. Notwithstanding the foregoing or anything to the contrary contained in this Warrant, no certificate
or certificates for any Shares purchased hereunder shall bear any restrictive or other legend, notice or provision restricting
the sale or transfer of Shares if, as of the date of any exercise or conversion of this Warrant, the Shares may be transferred
pursuant to SEC Rule 144 and, if such sale or transfer cannot, as of such exercise or conversion date, be made, the Company shall
cause any such legend, notice or provision to be removed from all or any such certificates within three (3) Trading Days of the
first date on which such a transfer pursuant to SEC Rule 144 can be made. For all purposes of Article 1.3, the Company shall not
be deemed to have delivered to Holder Shares unless and until the Company shall have fully complied with all of the terms and conditions
of this Article 3.2.2.

 

    	8

    	 

    
 

3.3No Shareholder
Rights. Except as provided in this Warrant, Holder will not have any rights as a shareholder of the Company with respect to
the Shares issuable hereunder until the exercise of this Warrant.

 

ARTICLE
4

REPRESENTATIONS AND WARRANTIES OF HOLDER. 

 

4.1Holder represents
and warrants to the Company as follows:

 

4.1.1Purchase
for Own Account. This Warrant and the securities to be acquired upon exercise of this Warrant by Holder will be acquired for
investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within
the meaning of the Act, and has no present intention of distributing this Warrant and the securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to
distribute or regarding the distribution of such securities in violation of the Act or any applicable state securities law (this
representation and warranty not limiting the Investor’s right to sell such securities at any time pursuant to the registration
statement described herein or otherwise in compliance with applicable federal and state securities laws. Holder also represents
that it has not been formed for the specific purpose of acquiring this Warrant or the Shares.

 

4.1.2Disclosure
of Information. Holder has received or has had full access to all the information it considers necessary or appropriate to
make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. Holder further
has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering
of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information
or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which
Holder has access.

 

    	9

    	 

    
 

4.1.3Investment
Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk. Holder
has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic
risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial
or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying
securities and/or has a preexisting personal or business relationship with the Company and certain of its officers, directors or
controlling persons of a nature and duration that enables Holder to be aware of the character, business acumen and financial circumstances
of such persons.

 

4.1.4Accredited
Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated under the Act.

 

4.1.5The
Act. Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under the Act
in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the
Holder’s investment intent as expressed herein. Holder understands that this Warrant and the Shares issued upon any exercise
hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws,
or unless exemption from such registration and qualification are otherwise available.

 

4.1.6Reliance
on Exemptions. The Holders understands that this Warrant and the Shares issuable upon exercise hereof may be offered and sold
to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws
and that the Company is relying in part upon the truth and accuracy of, and the Investor's compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Holder set forth herein in order to determine the availability
of such exemptions and the eligibility of the Investor to acquire the Warrant and the Shares.

 

4.1.7No
Governmental Review. The Holder understands that no U.S. federal or state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement of this Warrant and the Shares or the fairness or suitability of an investment
in the such securities nor have such authorities passed upon or endorsed the merits of the offering of such securities.

 

4.1.8Validity;
Enforcement. This Warrant has been duly and validly authorized, executed and delivered on behalf of the Holder and is a valid
and binding agreement of the Holder enforceable against the Investor in accordance with its terms, subject as to enforceability
to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

 

    	10

    	 

    
 

4.1.9No
Short Selling. The Holder represents and warrants to the Company that at no time prior to the date of this Agreement has any
of the Holder, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) "short sale" (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Company’s
common stock or (ii) hedging transaction, which establishes a net short position with respect to the common stock.

 

ARTICLE
5

MISCELLANEOUS.

 

5.1Term.
This Warrant is exercisable in whole or in part at any time and from time to time on or before the Expiration Date. 

 

5.2Legend.
Subject to Article 3.2.2 above, each certificate representing Shares issued upon any exercise hereof shall be imprinted with a
legend in substantially the following form:

 

THE SHARES EVIDENCED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF
ANY STATE AND, EXCEPT AS PROVIDED IN THAT CERTAIN COMMON STOCK PURCHASE WARRANT ISSUED BY THE COMPANY TO MIDCAP FUNDING III, LLC
DATED AS OF FEBRUARY 19, 2013, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION IS PERMITTED UNDER RULE
144 OF THE ACT OR IS EXEMPT FROM SUCH REGISTRATION.

 

5.3Transfer
Procedure. Subject to compliance with any applicable securities laws and upon providing the Company with written notice in
substantially the form attached as Appendix 2, Holder may transfer all or part of this Warrant (and all rights hereunder)
or the Shares issuable upon exercise of this Warrant to any transferee, provided, however, in connection with any such transfer,
Holder will give the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification
number of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder
if applicable).

 

5.4Notices;
Business Day. Unless otherwise specifically provided herein, all notices, requests, documents or other communications (collectively,
“Communication”) by either the Company or Holder to the other must be in writing and shall be deemed to have
been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the
U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission,
when sent by electronic mail (if an email address is specified herein) or facsimile transmission; (c) one (1) Business Day after
deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all
of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below.
If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be
a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day. For purposes
of this Article 5.4, “Business Day” shall mean any day that is not a Saturday, Sunday or a day on which Holder is closed.
Company or Holder may change its mailing or electronic mail address or facsimile number by giving the other party written notice
thereof in accordance with the terms of this Article 5.4.

 

    	11

    	 

    
 

If to Company:

 

Cytomedix, Inc.

209 Perry Parkway, Suite 7

Gaithersburg, MD 20877

Attention: Martin Rosendale, CEO

Fax: (240) 499-2690

E-Mail: mrosendale@cytomedix.com

 

If to Holder:

 

MidCap Funding III, LLC

7255 Woodmont Avenue, Suite 200

Bethesda, Maryland 20814

Attention: Portfolio Management- Life Sciences

Fax: (301) 941-1450

E-Mail: lviera@midcapfinancial.com

 

with a copy to:

 

MC Serviceco, LLC

7255 Woodmont Avenue, Suite 200

Bethesda, Maryland 20814

Attention: General Counsel

Fax: (301) 941-1450

E-Mail: legalnotices@midcapfinancial.com

 

5.5Waiver.
This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination is sought.

 

    	12

    	 

    
 

5.6Attorneys’
Fees; Remedies. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party
prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable
attorneys’ fees and disbursements. Holder, in addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights under this Warrant.

 

5.7Automatic
Exercise upon Expiration. This Warrant shall, to the extent not previously exercised, automatically be deemed to have been
fully exercised pursuant to Article 1.2 above (even if not surrendered) as of immediately before any expiration, termination or
cancellation of this Warrant, and the Company shall promptly deliver a certificate representing the Shares (or such other securities)
issued upon such exercise or any consideration payable in respect of such Shares in connection with an Acquisition, if applicable,
to Holder or its successor or assigns.

 

5.8Counterparts.
This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement.

 

5.9Governing
Law. This Warrant and any dispute, disagreement, or issue of construction or interpretation arising hereunder, whether relating
to its execution, its validity, the obligations provided herein or performance, shall be governed or interpreted according to the
laws of the State of Delaware without regard for principles of conflicts of laws.

 

5.10Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced thereby shall inure
to the benefit of and be binding upon the successors and assigns of the Company and the successors and permitted assigns of Holder.
The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be
enforceable by the Holder or holder of Warrant Shares.

 

5.11Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

5.12Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

5.13Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

5.14No Strict
Construction. This Warrant shall be construed without regard to any presumption or rule requiring construction or interpretation
against the party drafting an instrument or causing any instrument to be drafted.

 

[Remainder of page left blank intentionally;
signature page follows]

 

    	13

    	 

    
 

IN WITNESS WHEREOF,
the parties have executed this Common Stock Purchase Warrant by their duly authorized representatives as of the date first above
written.

 

	COMPANY
	 
	CYTOMEDIX, INC.
	 	 	 
	 	 	 
	By:	/s/ Martin P. Rosendale	(SEAL)
	 	 	 
	Name:	Martin P. Rosendale	 
	 	(Print)	 
	Title:	Chief Executive Officer	 

 

 

	HOLDER
	 
	MIDCAP FUNDING III, LLC
	 	 	 
	 	 	 
	By:	/s/ Josh Groman	(SEAL)
	 	 	 
	Name:	Josh Groman	 
	 	(Print)	 
	Title:	Managing Director	 
	 	 	 

 

 

CYTOMEDIX, INC.

WARRANT

SIGNATURE PAGE

 

    	 

    	 	

    
  

APPENDIX 1

TO COMMON STOCK PURCHASE WARRANT

 

 

NOTICE OF EXERCISE

 

TO: CYTOMEDIX, INC.

 

1.The undersigned hereby elects
to purchase 1,079,137 Shares of the Common Stock of the Company pursuant to the terms of the Common Stock Purchase Warrant between
the undersigned (or the undersigned’s predecessor or assignor), and shall tender payment of the exercise price in full, together
with all applicable transfer taxes, if any, in accordance with the terms of the Warrant.

 

2.Payment shall take the form of
(check applicable box):

 

 ̈     in lawful money of the United States; or

 

 ̈     the
cancellation of such number of Shares as is necessary, in accordance with the formula set forth in Article 1.2 of the Warrant,
to exercise this Warrant with respect to the maximum number of Shares purchasable pursuant to the cashless exercise procedure set
forth in Article 1.2 of the Warrant.

 

3.Please issue
a certificate or certificates representing said Shares in the name of the undersigned or in such other name as is specified below:

 

	 	 

 

The Shares shall be
delivered by physical delivery of a certificate to:

 

	 	 
	 	 
	 	 

 

[SIGNATURE OF HOLDER]

 

	Name of Holder: 	 

	Signature of Authorized
    Signatory of Holder: 	 

	Name of Authorized Signatory: 	 

	Title of Authorized Signatory: 	 

	Date: 	 

 

    	A-1-1

    	 

    
 

APPENDIX 2

TO COMMON STOCK PURCHASE WARRANT

 

 

ASSIGNMENT FORM

 

(To Assign the foregoing Warrant, execute

this form and supply required information.

Do not use this form to exercise the Warrant.)

 

 

FOR VALUE RECEIVED,

 

(check first box OR
fill in number of Shares in second box)

 

[___] all of the Warrant

 

OR

 

[__________]
shares of the foregoing Warrant

 

and all rights evidenced thereby are hereby
assigned to:

 

	 	 whose address is
	 	 

	 	.

 

Dated:____________________,
_________

 

Holder’s Signature:
_________________________

 

Holder’s Address:
__________________________

__________________________

 

 

    	A-2-1PURCHASE AGREEMENT

 

PURCHASE AGREEMENT
(the “Agreement”), dated as of February 18, 2013, by and between CYTOMEDIX, INC., a Delaware corporation,
(the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company (the “Investor”).

 

WHEREAS: 

 

Subject to the terms
and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to buy from the
Company, up to Fifteen Million Dollars ($15,000,000) of the Company's common stock, $.0001 par value (the “Common Stock”).
The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares.”

 

NOW THEREFORE, in consideration of the
mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.           CERTAIN
DEFINITIONS. 

 

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

 

(a)          “Accelerated
Purchase Share Amount” means, with respect to any particular Accelerated Purchase Confirmation (as defined in Section
2(b)), the lesser of (i) the amount of Purchase Shares directed by the Company on an Accelerated Purchase Notice or (ii) the Accelerated
Purchase Share Percentage multiplied by the trading volume of the Common Stock on the Principal Market on the Accelerated Purchase
Date during normal trading hours.

 

(b)          “Accelerated
Purchase Date” means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, the Business Day
immediately following the applicable Purchase Date with respect to the related Regular Purchase referred to in Section 2(b) hereof.

 

(c)          “Accelerated
Purchase Notice” means, with respect to any Accelerated Purchase pursuant to Section 2(b) hereof, an irrevocable written
notice from the Company to the Investor directing the Investor to buy an amount of Purchase Shares equal to the lesser of (i) the
amount specified by the Company therein or (ii) the Accelerated Purchase Share Percentage, on the Accelerated Purchase Date pursuant
to Section 2(b) hereof as specified by the Company therein at the applicable Accelerated Purchase Price.

 

(d)          “Accelerated
Purchase Share Percentage” means, with respect to any particular Accelerated Purchase Notice pursuant to Section 2(b)
hereof, a specified percentage as set forth in the Accelerated Purchase Notice, up to 30% of the aggregate shares of Common Stock
traded on the Principal Market during normal trading hours on the Accelerated Purchase Date.

 

(e)          “Accelerated
Purchase Price” means the lower of (i) ninety-five percent (95%) of the VWAP during (A) the entire trading day on the
Accelerated Purchase Date, if the volume of shares of Common Stock traded on the Principal Market on the Accelerated Purchase Date
has not exceeded the Accelerated Purchase Share Volume Maximum, or (B) the portion of the trading day of the Accelerated Purchase
Date (calculated starting at the beginning of normal trading hours) until such time at which the volume of shares of Common Stock
traded on the Principal Market has exceeded the Accelerated Purchase Share Volume Maximum or (ii) the Closing Sale Price on the
Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split,
reverse stock split or other similar transaction).

 

    	 

    	 

    

 

(f)          “Accelerated
Purchase Share Volume Maximum” means the number of shares of Common Stock traded on the Principal Market during normal
trading hours on the Accelerated Purchase Date equal to (i) the amount of shares of Common Stock properly directed by the Company
to be purchased on the Accelerated Purchase Notice, divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(g)          “Available Amount”
means initially Fifteen Million Dollars ($15,000,000) in the aggregate which amount shall be reduced by the Purchase Amount each
time the Investor purchases shares of Common Stock pursuant to Section 2 hereof.

 

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

 

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

 

(j)          “Closing
Sale Price” means, for any security as of any date, the last closing sale price for such security on the Principal Market
as reported by the Principal Market.

 

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

 

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

 

(m)         “DTC”
means The Depository Trust Company, or any successor performing substantially the same function for the Company.

 

    	-2-

    	 

    

 

(n)          “DWAC
Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and
without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified
Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program or any similar
program hereafter adopted by DTC performing substantially the same function.

 

(o)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(p)          “Material
Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document, (ii) the
results of operations, assets, business or financial condition of the Company and its Subsidiaries, taken as a whole, other than
any material adverse effect that resulted exclusively from (A) any change in the United States or foreign economies or securities
or financial markets in general that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole,
(B) any change that generally affects the industry in which the Company and its Subsidiaries operate that does not have a
disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C) any change arising in connection with earthquakes,
hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities,
acts of war, sabotage or terrorism or military actions existing as of the date hereof, (D) any action taken by the Investor,
its affiliates or its or their successors and assigns with respect to the transactions contemplated by this Agreement, (E) the
effect of any change in applicable laws or accounting rules that does not have a disproportionate effect on the Company and its
Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement or the consummation
of the transactions contemplated by this Agreement, or (iii) the Company’s ability to perform in any material respect
on a timely basis its obligations under any Transaction Document to be performed as of the date of determination.

 

(q)          “Maturity
Date” means the first day of the month immediately following the thirty (30) month anniversary of the Commencement Date.

 

(r)          “PEA
Period” means the period commencing at 9:30 a.m., Eastern time, on the tenth (10th) Business Day immediately
prior to, and ending at 9:30 a.m., Eastern time, on the Business Day immediately following, the effective date of any post-effective
amendment to the Registration Statement or New Registration Statement (as such terms are defined in the Registration Rights Agreement).

 

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

 

(t)          “Principal
Market” means the market or quotation system that the Common Stock is principally traded or quoted on (currently, the
OTC Bulletin Board) (it being understood that as used herein “OTC Bulletin Board” shall also mean any successor or
comparable market quotation system or exchange to the OTC Bulletin Board such as the OTCQB or OTCQX operated by the OTC Markets
Group, Inc.); provided however, that in the event the Company’s Common Stock is ever principally traded or quoted on The
NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE MKT or
the NYSE Arca, then the “Principal Market” shall mean such other market or exchange on which the Company’s Common
Stock is then principally quoted or traded.

 

    	-3-

    	 

    

 

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

 

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

 

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

 

(x)          “Regular
Purchase Notice” means, with respect to any Regular Purchase pursuant to Section 2(a) hereof, an irrevocable written
notice from the Company to the Investor directing the Investor to buy such applicable amount of Purchase Shares at the applicable
Purchase Price as specified by the Company therein on the Purchase Date.

 

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

 

(z)          “SEC”
means the U.S. Securities and Exchange Commission.

 

(aa)       “Securities”
means, collectively, the Purchase Shares and the Commitment Shares.

 

(bb)       “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(cc)        “Subsidiary”
means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting
stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated
under the Securities Act.

 

(dd)       “Transaction
Documents” means, collectively, this Agreement, the Registration Rights Agreement, the schedules and exhibits hereto
and thereto, and each of the other agreements, documents, certificates and instruments entered into or furnished by the parties
hereto in connection with the transactions contemplated hereby and thereby.

 

(ee)        “Transfer Agent”
means Broadridge, Inc., or such other Person who is then serving as the transfer agent for the Company in respect of the Common
Stock.

 

(ff)         “VWAP”
means in respect of an applicable Accelerated Purchase Date, the volume weighted average price of the Common Stock on the Principal
Market, as reported on the Principal Market.

 

2. PURCHASE OF COMMON STOCK. 

 

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

 

    	-4-

    	 

    

 

(a)          Commencement of Regular
Sales of Common Stock. Upon the satisfaction of the conditions set forth in Sections 7 and 8 hereof (the “Commencement”
and the date of satisfaction of such conditions the “Commencement Date”), the Company shall have the right,
but not the obligation, to direct the Investor, by its delivery to the Investor of a Regular Purchase Notice from time to time,
to buy up to One Hundred Fifty Thousand (150,000) Purchase Shares (each such purchase a “Regular Purchase”),
at the Purchase Price on the Purchase Date. The Regular Purchase may be increased to up to Two Hundred Thousand (200,000) Purchase
Shares, provided that the Closing Sale Price of the Common Stock is not below $1.00 on the Purchase Date. The Regular Purchase
may be increased to up to Two Hundred Fifty Thousand (250,000) Purchase Shares, provided that the Closing Sale Price of the Common
Stock is not below $1.50 on the Purchase Date. Each such amount of Purchase Shares in a Regular Purchase is subject to equitable
adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction.
The Company may deliver multiple Regular Purchase Notices to the Investor so long as at least one (1) Business Day has passed since
the most recent Regular Purchase was completed. Notwithstanding the foregoing, the Company shall not deliver any Purchase Notices
during the PEA Period.

 

(b)          Accelerated Purchases.
Subject to the terms and conditions of this Agreement, in addition to purchases of Purchase Shares as described in Section 2(a)
above, with one Business Day’s prior written notice to the Investor, the Company shall also have the right, but not the obligation,
to direct the Investor by the Company’s delivery to the Investor of an Accelerated Purchase Notice from time to time, and
the Investor thereupon shall have the obligation, to buy Purchase Shares at the Accelerated Purchase Price on the Accelerated Purchase
Date in an amount equal to the Accelerated Purchase Share Amount (each such purchase, an “Accelerated Purchase”).
The Company may deliver an Accelerated Purchase Notice to the Investor only on a date on which the Company also properly submitted
a Regular Purchase Notice for a Regular Purchase and the Closing Sale Price is not below $1.00 and executed such Regular Purchase
pursuant to and in accordance with Section 2(a) hereof, and such Accelerated Purchase Notice may only be for Purchase Shares
not to exceed the lesser of (i) the maximum percentage of the Accelerated Purchase Share Percentage and (ii) two (2) times the
number of Purchase Shares purchased pursuant to the corresponding Regular Purchase. Upon completion of each Accelerated Purchase
Date, the Accelerated Purchase Share Amount and the applicable Accelerated Purchase Price shall be set forth on a confirmation
of the Accelerated Purchase (an “Accelerated Purchase Confirmation”).

 

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

 

    	-5-

    	 

    

 

(d)         Purchase Price Floor.
The Company and the Investor shall not effect any purchases under this Agreement on any Purchase Date that the Closing Sale Price
is less than the Floor Price. "Floor Price" means $.45, which shall be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such
reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Floor Price shall mean the lower
of (i) the adjusted price and (ii) $1.50.         

 

(e)          Beneficial
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not issue
or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when
aggregated with all other shares of Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant
to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) would result in the beneficial ownership by the Investor
and its affiliates of more than 9.99% of the then issued and outstanding shares of Common Stock (the “Beneficial
Ownership Limitation”). Upon the written or oral request of the Investor, the Company shall promptly (but not later than
one (1) Business Day) confirm orally or in writing to the Investor the number of shares of Common Stock then outstanding. The Investor
and the Company shall each cooperate in good faith in the determinations required hereby and the application hereof. The Investor’s
written certification to the Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof
hereunder at any time, shall be conclusive with respect to the applicability thereof and such result absent manifest error.

 

3.          INVESTOR'S
REPRESENTATIONS AND WARRANTIES.

 

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

 

(a)          Investment
Purpose.  The Investor is acquiring the Securities as principal for its own account and not with a view to or for distributing
or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has
no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities
law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution
of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty
not limiting the Investor’s right to sell the Securities at any time pursuant to the registration statement described herein
or otherwise in compliance with applicable federal and state securities laws and with respect to the Commitment Shares (as defined
below in Section 5(e)), subject to Section 5(e) hereof).  The Investor is acquiring the Securities hereunder in the ordinary
course of its business.

 

(b)          Accredited
Investor Status. The Investor is an "accredited investor" as that term is defined in Rule 501(a)(3) of Regulation
D promulgated under the Securities Act.

 

(c)          Reliance
on Exemptions. The Investor understands that the Securities may be offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and the Investor's compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility of
the Investor to acquire the Securities.

 

    	-6-

    	 

    

 

(d)          Information.
The Investor understands that its investment in the Securities involves a high degree of risk. The Investor (i) is able to bear
the economic risk of an investment in the Securities including a total loss thereof, (ii) has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and risks of the proposed investment in the Securities
and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial
condition and business of the Company and others matters related to an investment in the Securities. Neither such inquiries nor
any other due diligence investigations conducted by the Investor or its representatives shall modify, amend or affect the Investor's
right to rely on the Company's representations and warranties contained in Section 4 below. The Investor has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Securities.

 

(e)          No
Governmental Review. The Investor understands that no U.S. federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of an investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)          Transfer
or Sale. The Investor understands that (i) the Securities may not be offered for sale, sold, assigned or transferred unless
(A) registered pursuant to the Securities Act or (B) an exemption exists permitting such Securities to be sold, assigned or transferred
without such registration; (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the
terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller
(or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act)
may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder.

 

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

 

(h)          Residency.
The Investor is a resident of the State of Illinois.

 

(i)          No
Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of this Agreement has
any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) "short sale" (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock
or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock.

 

4.          REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

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

 

(a)          Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite corporate
power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Neither
the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of
formation or incorporation, bylaws or other organizational or charter documents.  Each of the Company and the Subsidiaries
is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in
which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure
to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse
Effect, and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit
or curtail such power and authority or qualification. The Company has no Subsidiaries except as set forth on Schedule 4(a).

 

    	-7-

    	 

    

 

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

 

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

 

    	-8-

    	 

    

 

(d)          Issuance
of Securities. Upon issuance and payment thereof in accordance with the terms and conditions of this Agreement, the Purchase
Shares shall be validly issued, fully paid and nonassessable and free from all taxes, liens, charges, restrictions, rights of first
refusal and preemptive rights with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder
of Common Stock. 5,000,000 shares of Common Stock have been duly authorized and reserved for issuance upon purchase under this
Agreement as Purchase Shares. 375,000 shares of Common Stock (subject to equitable adjustment for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction) have been duly authorized and reserved for issuance as Additional
Commitment Shares (as defined below in Section 5(e)) in accordance with this Agreement. When issued in accordance with this Agreement,
the Commitment Shares shall be validly issued, fully paid and nonassessable and free from all taxes, liens, charges, restrictions,
rights of first refusal and preemptive rights with respect to the issue thereof, with the holders being entitled to all rights
accorded to a holder of Common Stock.

 

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

 

    	-9-

    	 

    

 

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

 

(g)          Absence
of Certain Changes. Except as disclosed in Schedule 4(g), since September 30, 2012, there has been no Material Adverse
Change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries.
The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy
Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts
as they become due.

 

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

 

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

 

    	-10-

    	 

    

 

(j)          No
General Solicitation; No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its
or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under
the Securities Act) in connection with the offer or sale of the Securities. Neither the Company, nor any of its affiliates, nor
any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any
offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings
by the Company in a manner that would require stockholder approval pursuant to the rules of the Principal Market on which any of
the securities of the Company are listed or designated. The issuance and sale of the Securities hereunder does not contravene the
rules and regulations of the Principal Market.

 

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

 

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

 

    	-11-

    	 

    

 

(m)          Title.
Except as disclosed on Schedule 4(m), the Company and the Subsidiaries have good and marketable title in fee simple to all real
property owned by them and good and marketable title in all personal property owned by them that is material to the business of
the Company and the Subsidiaries, in each case free and clear of all liens, encumbrances and defects (“Liens”)
and, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made
and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other
taxes, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company
and the Subsidiaries are in compliance with such exceptions as are not material and do not interfere with the use made and proposed
to be made of such property and buildings by the Company and its Subsidiaries. Any
real property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting
and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made
of such property and buildings by the Company and its Subsidiaries.

 

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

 

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

 

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

 

(q)          Transactions
With Affiliates.  Except as set forth in the SEC Documents,
none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is
presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or,
to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting
fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits,
including stock option agreements under any stock option plan of the Company.

 

    	-12-

    	 

    

 

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

 

(s)           Disclosure.  Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents and as may be set
forth in Schedule 4(s) hereof that will be timely publicly disclosed by the Company, in each case, the Company confirms that neither
it nor any other Person acting on its behalf has provided the Investor or its agents or counsel with any information that it believes
constitutes or might constitute material, non-public information which is not otherwise disclosed in the Registration Statement
or the SEC Documents.   The Company understands and confirms that the Investor will rely on the foregoing representation
in effecting purchases and sales of securities of the Company.  All of the disclosure furnished by or on behalf of the
Company to the Investor regarding the Company, its business and the transactions contemplated hereby, including the disclosure
schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made,
not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken
as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made and when made, not
misleading.  The Company acknowledges and agrees that the Investor neither makes nor has made any representations or
warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3 hereof.

 

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

 

(u)          DTC
Eligible. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities Transfer (FAST)
Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer
(FAST) Program.

 

(v)         Sarbanes-Oxley.
The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002, as amended, which are applicable to
it as of the date hereof, except where the failure to be in compliance is not reasonably likely to result in a Material Adverse
Effect.

 

(w)          Certain
Fees. Except as disclosed on Schedule 4(w), no brokerage or finder’s fees or commissions are or will be payable
by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by the Transaction Documents. Except as disclosed on Schedule 4(w), the Investor
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this Section 4(w) that may be due in connection with the transactions contemplated by the Transaction
Documents.

 

    	-13-

    	 

    

 

(x)          Investment
Company. The Company is not, and immediately after receipt of payment for the Securities will not be, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

(y)          Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and
the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock pursuant to the Exchange Act nor has the Company received any notification that the SEC is currently contemplating
terminating such registration. Except as set forth on Schedule 4(e): (i) the Company has not, in the twelve (12) months
preceding the date hereof, received any notice from any Person to the effect that the Company is not in compliance with the listing
or maintenance requirements of the Principal Market; and (ii) the Company is, and has no reason to believe that it will not in
the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

(z)          Accountants.
The Company’s accountants are set forth in the SEC Documents and, to the knowledge of the Company, such accountants are an
independent registered public accounting firm as required by the Securities Act.

 

(aa)        Regulation
M Compliance. The Company has not, and to its knowledge no Person acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company.

 

(bb)       Shell
Company Status. The Company is not currently, and within the past three years has not been, an issuer identified in Rule 144(i)(1)
under the Securities Act.

 

5.           COVENANTS.

 

(a)          Filing
of Form 8-K and Registration Statement. The Company agrees that it shall, within the time required under the Exchange Act file
a Report on Form 8-K disclosing this Agreement and the transaction contemplated hereby. The Company shall also file within seventy-five
(75) days from the date hereof a new registration statement (the “Registration Statement”) covering only the
resale of the Purchase Shares and the Commitment Shares, in accordance with the terms of the Registration Rights Agreement between
the Company and the Investor, dated as of the date hereof (“Registration Rights Agreement”). The Company shall
permit the Investor to review and comment upon the Current Report at least two (2) Business Days prior to its filing with the SEC,
the Company shall give due consideration to all such comments, and the Company shall not file the Current Report with the SEC in
a form to which the Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Current
Report within one (1) Business Day from the date the Investor receives the final pre-filing draft version thereof from the Company.

 

(b)          Blue
Sky. The Company shall take such action, if any, as is reasonably necessary in order to obtain an exemption for or to qualify
(i) the issuance of the Commitment Shares and the sale of the Purchase Shares to the Investor under this Agreement and (ii) any
subsequent resale of the Commitment Shares and all Purchase Shares by the Investor, in each case, under applicable securities or
“Blue Sky” laws of the states of the United States in such states as is reasonably requested by the Investor from time
to time, and shall provide evidence of any such action so taken to the Investor.

 

    	-14-

    	 

    

  

(c)          Listing/DTC.
The Company shall promptly secure the listing of all of the Purchase Shares and Commitment Shares to be issued to the Investor
hereunder on the Principal Market (subject to official notice of issuance). The Company shall use reasonable best efforts to maintain,
so long as any shares of Common Stock shall be listed on the Principal Market, such listing of all such Securities from time to
time issuable hereunder. The Company shall use commercially reasonable efforts to maintain the listing of the Common Stock on the
Principal Market and shall comply in all respects with the Company’s reporting, filing and other obligations under the bylaws
or rules and regulations of the Principal Market. Neither the Company nor any of its Subsidiaries shall take any action that would
reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal Market. The Company shall
promptly, and in no event later than the following Business Day, provide to the Investor copies of any notices it receives from
the Principal Market regarding the continued eligibility of the Common Stock for listing on the Principal Market; provided, however,
that the Company shall not be required to provide the Investor copies of any such notice that the Company reasonably believes constitutes
material non-public information and the Company would not be required to publicly disclose such notice in any report or statement
filed with the SEC under the Exchange Act (including on Form 8-K) or the Securities Act. The Company shall pay all fees and expenses
in connection with satisfying its obligations under this Section. The Company shall take all action necessary to ensure that its
Common Stock can be transferred electronically as DWAC Shares.

 

(d)          Limitation
on Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and ending on the
date of termination of this Agreement as provided in Section 11, the Investor and its agents, representatives and affiliates shall
not in any manner whatsoever enter into or effect, directly or indirectly, any (i) "short sale" (as such term is defined
in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short
position with respect to the Common Stock.

 

(e)          Issuance
of Commitment Shares. In consideration for the Investor’s execution and delivery of this Agreement, the Company shall
cause the Transfer Agent to issue, on the date of this Agreement, 375,000 shares of Common Stock (the “Initial Commitment
Shares”) directly to the Investor and shall deliver to the Transfer Agent the Irrevocable Transfer Agent Instructions
with respect to the issuance of the Initial Commitment Shares in the form as set forth in Exhibit E attached hereto. For the avoidance
of doubt, all of the Initial Commitment Shares shall be fully earned as of the date of this Agreement, whether or not the Commencement
shall occur or any Purchase Shares are purchased by the Investor under this Agreement and irrespective of any termination of this
Agreement. In connection with each Regular Purchase and each Accelerated Purchase of Purchase Shares hereunder, the Company shall
issue to the Investor a number of shares of Common Stock (the “Additional Commitment Shares” and, together with
the Initial Commitment Shares, the “Commitment Shares”) equal to the product of (x) 375,000 and (y) the Purchase
Amount Fraction. The “Purchase Amount Fraction” shall mean a fraction, the numerator of which is the Purchase
Amount purchased by the Investor with respect to such Regular Purchase and Accelerated Purchase (as applicable) of Purchase Shares
and the denominator of which is Fifteen Million Dollars ($15,000,000). The Additional Commitment Shares shall be issued to the
Investor on the same Business Day as Purchase Shares are issued to the Investor in connection with the applicable Regular Purchase
and Accelerated Purchase (as applicable) in accordance with Section 2(c). In no event shall the amount of the Additional Commitment
Shares to be issued under this Agreement exceed 375,000 shares of Common Stock, provided that such Additional Commitment Shares
shall be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction.

 

    	-15-

    	 

    

 

(f)           Due Diligence;
Non-Public Information. The Investor shall have the right, from time to time as the Investor may reasonably deem appropriate,
to perform reasonable due diligence on the Company during normal business hours. The Company and its officers and employees shall
provide information and reasonably cooperate with the Investor in connection with any reasonable request by the Investor related
to the Investor's due diligence of the Company. Each party hereto agrees not to disclose any Confidential Information of the other
party to any third party and shall not use the Confidential Information for any purpose other than in connection with, or in furtherance
of, the transactions contemplated hereby. Each party hereto acknowledges that the Confidential Information shall remain the property
of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information
disclosed by the other party. The Company confirms that neither it nor any other Person acting on its behalf shall provide the
Investor or its agents or counsel with any information that constitutes or might constitute material, non-public information, unless
a simultaneous public announcement thereof is made by the Company in the manner contemplated by Regulation FD. In the event of
a breach of the foregoing covenant by the Company or any Person acting on its behalf (as determined in the reasonable good faith
judgment of the Investor), in addition to any other remedy provided herein or in the other Transaction Documents, the Investor
shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material,
non-public information without the prior approval by the Company; provided the Investor shall have first provided notice to the
Company that it believes it has received information that constitutes material, non-public information and the Company shall have
at least 24 hours to respond to such notice, and thereafter the Investor shall have provided a draft final version of such press
release, public advertisement or otherwise at least 24 hours prior to the Investor’s intended public disclosure, and the
Investor shall have incorporated any reasonable comments made by the Company on such draft press release, and the Company shall
have failed to publicly disclose such material, non-public information prior to such disclosure by the Investor. The Investor shall
not have any liability to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders
or agents, for any such disclosure. The Company understands and confirms that the Investor shall be relying on the foregoing covenants
in effecting transactions in securities of the Company.

 

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

 

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

 

(i)           Use of Proceeds.
The Company will use the net proceeds from the offering as described in the Registration Statement or the SEC Documents.

 

(j)           Other Transactions.
The Company shall not enter into, announce or recommend to its stockholders any agreement, plan, arrangement or transaction in
or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right of the Company to
perform its obligations under the Transaction Documents, including, without limitation, the obligation of the Company to deliver
the Purchase Shares and the Commitment Shares to the Investor in accordance with the terms of the Transaction Documents.

 

    	-16-

    	 

    

 

(k)          No Variable
Rate Transactions. From the date hereof until the Maturity Date, the Company shall be prohibited from effecting or entering
into an agreement to effect any issuance by the Company or any of its Subsidiaries of shares of Common Stock or Common Stock Equivalents
for cash consideration (or a combination of units thereof) involving a Variable Rate Transaction, provided that the Company shall
be permitted to effect an Exempt Issuance.  “Common Stock Equivalents” means any securities of the
Company or its Subsidiaries which entitle the holder thereof to acquire at any time shares of Common Stock, including, without
limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, shares of Common Stock. “Variable Rate Transaction”
means a transaction in which the Company enters into, or issues securities under, any “at-the-market” or similar agreement,
including, but not limited to, an equity line of credit (other than any transaction between the Company and the Investor), whereby
the Company may sell securities at a future determined price. “Exempt Issuance” means only the following: (i)
the issuance of shares of Common Stock under the “at-the market” agreement in effect as of the date hereof or within
60 days of the date hereof, as it may be amended from time to time, with a third party registered broker-dealer so long as, for
the 150 (150) day period following the date hereof, no issuances under any such agreement aggregate in excess of $1.5 million worth
of Common Stock during any consecutive thirty (30) Business Day period; and (ii) the issuance of Common Stock Equivalents with
conversion or exercise prices which may adjust (or where the amount of Common Stock Equivalents issuable may adjust) based upon
future events (including, without limitation, in instances involving the issuance of securities for a purchase price which is less
than any such conversion or exercise price prior to adjustment).

 

(l)           Integration.
From and after the date of this Agreement, the Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate
in respect of any security (as defined in Section 2 of the Securities Act) of the Company that would be integrated with the
offer or sale of the Securities such that the rules or regulations of the Principal Market would require stockholder approval of
this transaction prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such
subsequent transaction.

 

6.           TRANSFER AGENT
INSTRUCTIONS.

 

(a)          On the
date of this Agreement, the Company shall issue irrevocable instructions to the Transfer Agent substantially in the form attached
hereto as Exhibit E to issue the Initial Commitment Shares in accordance with the terms of this Agreement (the “Initial
Irrevocable Transfer Agent Instructions”). The certificate(s) representing the Initial Commitment Shares, except as set
forth below, shall bear the following restrictive legend (the “Restrictive Legend”):

 

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

 

    	-17-

    	 

    

 

(b)          On the earlier
of (i) the Commencement Date and (ii) such time that the Investor shall request, provided all conditions of Rule 144 under the
Securities Act are met, the Company shall, no later than one (1) Business Day following the delivery by the Investor to the Company
or the Transfer Agent of one or more legended certificates representing the Initial Commitment Shares (which certificates the Investor
shall promptly deliver on or prior to the first to occur of the events described in clauses (i) and (ii) of this sentence), as
directed by the Investor, issue and deliver (or cause to be issued and delivered) to the Investor, as requested by the Investor,
either: (A) a certificate representing such Initial Commitment Shares that is free from all restrictive and other legends or (B)
a number of shares of Common Stock equal to the number of Initial Commitment Shares represented by the certificate(s) so delivered
by the Investor as DWAC Shares. The Company shall take all actions to carry out the intent and accomplish the purposes of the immediately
preceding sentence, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and
instructions to the Transfer Agent, and any successor transfer agent of the Company, as may be requested from time to time by the
Investor or necessary or desirable to carry out the intent and accomplish the purposes of the immediately preceding sentence. On
the Commencement Date, the Company shall issue to the Transfer Agent, and any subsequent transfer agent, (i) irrevocable instructions
in the form substantially similar to those used by the Investor in substantially similar transactions (the “Commencement
Irrevocable Transfer Agent Instructions”) and (ii) the notice of effectiveness of the Registration Statement in the form
attached as an exhibit to the Registration Rights Agreement (the “Notice of Effectiveness of Registration Statement”),
in each case to issue the Commitment Shares and the Purchase Shares in accordance with the terms of this Agreement and the Registration
Rights Agreement. All Purchase Shares and Commitment Shares to be issued from and after Commencement to or for the benefit of the
Investor pursuant to this Agreement shall be issued only as DWAC Shares. The Company represents and warrants to the Investor that,
while this Agreement is effective, no instruction other than the Commencement Irrevocable Transfer Agent Instructions and the Notice
of Effectiveness of Registration Statement referred to in this Section 6(b) will be given by the Company to the Transfer
Agent with respect to the Commitment Shares or the Purchase Shares from and after Commencement, and the Commitment Shares and the
Purchase Shares shall otherwise be freely transferable on the books and records of the Company. The Company agrees that if the
Company fails to fully comply with the provisions of this Section 6(b) within five (5) Business Days of the Investor providing
the deliveries referred to above, the Company shall, at the Investor’s written instruction, purchase such shares of Common
Stock containing the Restrictive Legend from the Investor at the greater of the (i) Purchase Price or Accelerated Purchase Price
paid for such shares of Common Stock (as applicable) and (ii) the Closing Sale Price of the Common Stock on the date of the Investor’s
written instruction.

 

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

 

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

 

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

 

(b)          A registration
statement covering the resale of the Commitment Shares and Purchase Shares shall have been declared effective under the
Securities Act by the SEC and no stop order with respect to the Registration Statement shall be pending or threatened by the SEC;
and

 

(c)          The representations
and warranties of the Investor shall be true and correct in all material respects as of the date hereof and as of the Commencement
Date as though made at that time.

 

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

 

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

 

    	-18-

    	 

    

 

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

 

(b)          The Company
shall have issued or caused to be issued to the Investor (i) one or more certificates representing the Initial Commitment Shares
free from all restrictive and other legends or (ii) a number of shares of common stock equal to the number of Initial Commitment
Shares as DWAC Shares, in each case in accordance with Section 6(b);

 

(c)           The Common
Stock shall be listed on the Principal Market, trading in the Common Stock shall not have been within the last 365 days suspended
by the SEC or the Principal Market and all Securities to be issued by the Company to the Investor pursuant to this Agreement shall
have been approved for listing on the Principal Market in accordance with the applicable rules and regulations of the Principal
Market, subject only to official notice of issuance;

 

(d)          The Investor
shall have received the opinion of the Company's legal counsel dated as of the Commencement Date substantially in the form agreed
to prior to the date of this Agreement by the Company’s legal counsel and the Investor’s legal counsel;

 

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

 

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

 

(g)          As of the Commencement
Date, the Company shall have reserved out of its authorized and unissued Common Stock, (A) solely for the purpose of effecting
purchases of Purchase Shares hereunder, 5,000,000 shares of Common Stock and (B) as Additional Commitment Shares in accordance
with Section 5(e) hereof, 375,000 shares of Common Stock;

 

(h)          The Commencement
Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of Registration Statement each shall have been delivered
to and acknowledged in writing by the Company and the Company's Transfer Agent (or any successor transfer agent);

 

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

 

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

 

    	-19-

    	 

    

 

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

 

(l)           The Registration
Statement covering the resale of all of the Commitment Shares and Purchase Shares shall have been declared effective under
the Securities Act by the SEC and no stop order with respect to the Registration Statement shall be pending or threatened by the
SEC. The Company shall have prepared and filed with the SEC, not later than one (1) Business Day after the effective date of the
Registration Statement, a final and complete prospectus (the preliminary form of which shall be included in the Registration Statement)
and shall have delivered to the Investor a true and complete copy thereof. Such prospectus shall be current and available for the
resale of all of the Securities by the Investor. The Current Report shall have been filed with the SEC, as required pursuant to
Section 5(a). All reports, schedules, registrations, forms, statements, information and other documents required to have
been filed by the Company with the SEC at or prior to the Commencement Date pursuant to the reporting requirements of the Exchange
Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the Exchange Act;

 

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

 

(n)          All federal,
state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction Documents
and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions
contemplated thereby in accordance with the terms thereof shall have been complied with, and all consents, authorizations and orders
of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal, state
and local regulatory or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction Documents
and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained or
made, including, without limitation, in each case those required under the Securities Act, the Exchange Act, applicable state securities
or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required by the SEC, the
Principal Market or any state securities regulators;

 

(o)          No statute,
regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or endorsed by
any federal, state, local or foreign court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents;

 

(p)          No action, suit
or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of competent jurisdiction
shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or foreign governmental authority
of competent jurisdiction shall have been commenced or threatened, against the Company, or any of the officers, directors or affiliates
of the Company, seeking to restrain, prevent or change the transactions contemplated by the Transaction Documents, or seeking material
damages in connection with such transactions; and

 

    	-20-

    	 

    

 

		9.	INDEMNIFICATION. 

 

In consideration of
the Investor's execution and delivery of the Transaction Documents and acquiring the Securities hereunder and in addition to all
of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless
the Investor and all of its affiliates, shareholders, officers, directors, employees and direct or indirect investors and any of
the foregoing Person's agents or other representatives (including, without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes
of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective
of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable
attorneys' fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of,
or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in
the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any
covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made against such Indemnitee and
arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, other than with respect to Indemnified Liabilities which directly
and primarily result from the gross negligence or willful misconduct of any Indemnitee. To the extent that the foregoing undertaking
by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable law. Payment under this indemnification shall be made
within thirty (30) days from the date Investor makes written request for it. A certificate containing reasonable detail as to the
amount of such indemnification submitted to the Company by Investor shall be conclusive evidence, absent manifest error, of the
amount due from the Company to Investor. If any action shall be brought against any Indemnitee in respect of which indemnity may
be sought pursuant to this Agreement, such Indemnitee shall promptly notify the Company in writing, and the Company shall have
the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Indemnitee. Any Indemnitee
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnitee, except to the extent that (i) the employment thereof has been
specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a
material conflict on any material issue between the position of the Company and the position of such Indemnitee, in which case
the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.

 

10.          EVENTS OF
DEFAULT. 

 

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

 

(a)          the effectiveness
of a registration statement registering the Purchase Shares and Commitment Shares lapses for any reason (including, without limitation,
the issuance of a stop order) or such registration statement or the prospectus forming a part thereof is unavailable to the Investor
for resale of any or all of the Purchase Shares and Commitment Shares, and such lapse or unavailability continues for a period
of ten (10) consecutive Business Days or for more than an aggregate of thirty (30) Business Days in any 365-day period, but excluding
a lapse or unavailability where (i) the Company terminates a registration statement after the Investor has confirmed in writing
that all of the Purchase Shares and Commitment Shares covered thereby have been resold or (ii) the Company supersedes one registration
statement with another registration statement, including (without limitation) by terminating a prior registration statement when
it is effectively replaced with a new registration statement covering Purchase Shares and Commitment Shares (provided in the case
of this clause (ii) that all of the Purchase Shares and Commitment Shares covered by the superseded (or terminated) registration
statement that have not theretofore been resold are included in the superseding (or new) registration statement);

 

    	-21-

    	 

    

 

(b)          the suspension
of the Common Stock from trading for a period of one (1) Business Day;

 

(c)          the failure
for any reason by the Transfer Agent to issue Purchase Shares or Additional Commitment Shares to the Investor within five (5) Business
Days after the applicable Purchase Date or Accelerated Purchase Date (as applicable) which the Investor is entitled to receive
such Securities;

 

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

 

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

 

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

 

(g)          a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case,
(ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders the liquidation of the
Company or any Subsidiary; or

 

(h)          if at any time the Company is
not eligible or able to transfer its Common Stock electronically as DWAC Shares.

 

In addition to any
other rights and remedies under applicable law and this Agreement, so long as an Event of Default has occurred and is continuing,
or if any event which, after notice and/or lapse of time, would become an Event of Default, has occurred and is continuing, or
so long as the Purchase Price is below the Floor Price, the Company shall not deliver to the Investor any Regular Purchase Notice.
No Event of Default shall affect the Company’s or the Investor’s right or obligations under this Agreement with respect
to pending purchases, and the Company and the Investor shall complete their respective obligations with respect any pending purchases
under this Agreement.

 

11.         TERMINATION

 

This Agreement may
be terminated only as follows:

 

(a)          If pursuant
to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against
the Company which is not discharged within 90 days, a Custodian is appointed for the Company or for all or substantially all of
its property, or the Company makes a general assignment for the benefit of its creditors (any of which would be an Event of Default
as described in Sections 10(f), 10(g) and 10(h) hereof), this Agreement shall automatically terminate without any liability or
payment to the Company (except as set forth below) without further action or notice by any Person.

 

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

 

    	-22-

    	 

    

 

(c)          In the event
that the Commencement shall not have occurred on or before [June 30], 2013, due to the failure to satisfy the conditions set forth
in Sections 7 and 8 above with respect to the Commencement, the non-breaching party shall have the option to terminate this Agreement
at the close of business on such date or thereafter without liability of any party to any other party (except as set forth below).

 

(d)          At any time
after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no reason by delivering
notice (a “Company Termination Notice”) to the Investor electing to terminate this Agreement without any liability
whatsoever of any party to any other party under this Agreement (except as set forth below). The Company Termination Notice shall
not be effective until one (1) Business Day after it has been received by the Investor.

 

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

 

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

 

Except as set forth
in Sections 11(a) (in respect of an Event of Default under Sections 10(f), 10(g) and 10(h)) 11(e) and 11(f), any termination of
this Agreement pursuant to this Section 11 shall be effected by written notice from the Company to the Investor, or the Investor
to the Company, as the case may be, setting forth the basis for the termination hereof. The representations and warranties and
covenants of the Company and the Investor contained in Sections 3, 4, 5, and 6 hereof, the indemnification provisions set forth
in Section 9 hereof and the agreements and covenants set forth in Sections 10, 11 and 12, shall survive the Commencement
and any termination of this Agreement. No termination of this Agreement shall (i) affect the Company's or the Investor's rights
or obligations (A) under this Agreement with respect to pending Regular Purchases and Accelerated Purchases, and the Company and
the Investor shall complete their respective obligations with respect to any pending Regular Purchases and Accelerated Purchases
under this Agreement, and (B) under the Registration Rights Agreement, which shall survive any such termination, or (ii) be deemed
to release the Company or the Investor from any liability for intentional misrepresentation or willful breach of any of the Transaction
Documents.

 

12.          MISCELLANEOUS.

 

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

 

    	-23-

    	 

    

 

(b)          Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature or signature delivered by e-mail in a “.pdf” format data file shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

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

 

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

 

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

 

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

 

If to the Company:

Cytomedix, Inc.

209 Perry Parkway, Suite 7

Gaithersburg, MD 20877

Telephone:
       240-499-2680

Facsimile:
         240-499-2690

Attention:          CEO

 

    	-24-

    	 

    

 

With a copy to:

Cozen O’Connor

1627 I Street, NW, Suite 1100

Washington, DC 20006

Telephone:         202-912-4800

Attention:          Alec Orudjev, Esq.

 

If to the Investor:

Lincoln Park Capital Fund, LLC

440 North Wells, Suite 410

Chicago, IL 60654

Telephone:       312-822-9300

Facsimile:         312-822-9301

Attention:         Josh Scheinfeld/Jonathan
Cope

 

With a copy to:

Greenberg Traurig, LLP

The MetLife Building

200 Park Avenue

New York, NY 10166

Telephone:        (212) 801-9200

Facsimile:          (212) 801-6400

Attention:          Anthony J. Marsico,
Esq.

 

If to the Transfer
Agent:

Broadridge Financial Solutions

51 Mercedes Way

Edgewood, New York, 11717

Telephone:          (631) 254-7067

Facsimile:           (631) 254-7622

 

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

 

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

 

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

 

    	-25-

    	 

    

 

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

 

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

 

(k)          No Financial
Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor that, except as disclosed in
Schedule 4(w), it has not engaged any financial advisor, placement agent, broker or finder in connection with the transactions
contemplated hereby. The Investor represents and warrants to the Company that it has not engaged any financial advisor, placement
agent, broker or finder in connection with the transactions contemplated hereby. The Company shall be responsible for the payment
of any fees or commissions, if any, of any financial advisor, placement agent, broker or finder relating to or arising out of the
transactions contemplated hereby. The Company shall pay, and hold the Investor harmless against, any liability, loss or expense
(including, without limitation, attorneys' fees and out of pocket expenses) arising in connection with any such claim.

 

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

 

(m)         Remedies,
Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies provided in this Agreement, including, without
limitation, the Investor’s remedies provided in Section 9, shall be cumulative and in addition to all other remedies available
to the Investor under this Agreement, at law or in equity (including a decree of specific performance and/or other injunctive relief),
no remedy of the Investor contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy
and nothing herein shall limit the Investor's right to pursue actual damages for any failure by the Company to comply with the
terms of this Agreement. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm
to the Investor and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event
of any such breach or threatened breach, the Investor shall be entitled, in addition to all other available remedies, to an injunction
restraining any breach, without the necessity of showing economic loss and without any bond or other security being required.

 

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

 

    	-26-

    	 

    

 

(o)          Amendment and Waiver; Failure
or Indulgence Not Waiver. No provision of this Agreement may be amended or waived by the parties from and after the date that
is one (1) Business Day immediately preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately
preceding sentence, (i) no provision of this Agreement may be amended other than by a written instrument signed by both parties
hereto and (ii) no provision of this Agreement may be waived other than in a written instrument signed by the party against whom
enforcement of such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise
thereof or of any other right, power or privilege.

 

(p)          Prior Agreements. For
the avoidance of doubt, the parties to this Agreement understand and agree that all prior rights, obligations and covenants of
such parties as set forth in that certain Purchase Agreement dated as of October 5, 2010 are hereby terminated and of no legal
force or effect, other than such rights, obligations and covenants that survive any termination of that Purchase Agreement.

 

 

*      *      *      *      *

 

    	-27-

    	 

    

 

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

 

	 	THE COMPANY:
	 	 
	 	CYTOMEDIX, INC.
	 	 
	 	By:	 /s/ Martin P. Rosendale
	 	Name: Martin P. Rosendale
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	INVESTOR:
	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY: LINCOLN PARK CAPITAL, LLC
	 	BY: ALEX NOAH INVESTORS, INC. 
	 	 
	 	By:	 /s/ Jonathan Cope
	 	Name: Jonathan Cope
	 	Title: President

 

    	-28-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]