Document:

Exhibit 10.3

                           COLLATERAL AGENT AGREEMENT
                           --------------------------

         COLLATERAL AGENT AGREEMENT (this "Agreement") dated as of November 16,
2006, among Barbara R. Mittman (the "Collateral Agent"), and the parties
identified on Schedule A hereto (each, individually, a "Lender" and
collectively, the "Lenders"), who hold or will acquire promissory Notes issued
or to be issued by Stem Cell Innovations, Inc. ("Parent"), a Delaware
corporation, at or about the date of this Agreement as described in the Security
Agreement referred to in Section 1(a) below (collectively herein the "Notes").

         WHEREAS, the Lenders have made, are making and will be making loans to
Parent to be secured by certain collateral; and

         WHEREAS, it is desirable to provide for the orderly administration of
such collateral by requiring each Lender to appoint the Collateral Agent, and
the Collateral Agent has agreed to accept such appointment and to receive, hold
and deliver such collateral, all upon the terms and subject to the conditions
hereinafter set forth; and

         WHEREAS, it is desirable to allocate the enforcement of certain rights
of the Lenders under the Notes for the orderly administration thereof.

         NOW, THEREFORE, in consideration of the premises set forth herein and
for other good and valuable consideration, the parties hereto agree as follows:

         1.       Collateral.
                  ----------

                  (a)      Contemporaneously with the execution and delivery of
this Agreement by the Collateral Agent and the Lenders, (i) the Collateral Agent
has or will have entered into a Security Agreement among the Collateral Agent,
Parent and Stem Cell Innovations BV, a Netherlands corporation, Amphioxus Cell
Technologies, Inc., a Delaware corporation (each a "Guarantor" and together with
Parent, "Debtors") ("Security Agreement"), regarding the grant of a security
interest in assets owned by Debtors (such assets are referred to herein and in
the Security Agreement as the "Collateral") to the Collateral Agent, for the
benefit of the Lenders, (ii) Parent is issuing the Notes to the Lenders pursuant
to a "Subscription Agreement" dated at or about the date of this Agreement.
Collectively, the Security Agreement, the Notes and Subscription Agreement and
other agreements referred to therein are referred to herein as "Borrower
Documents".

                  (b)      The Collateral Agent hereby acknowledges that any
Collateral held by the Collateral Agent is held for the benefit of the Lenders
in accordance with this Agreement and the Borrower Documents. No reference to
the Borrower Documents or any other instrument or document shall be deemed to
incorporate any term or provision thereof into this Agreement unless expressly
so provided.

                  (c)      The Collateral Agent is to distribute in accordance
with the Borrower Documents any proceeds received from the Collateral which are
distributable to the Lenders in proportion to their respective interests in the
Obligations as defined in the Security Agreement.

         2.       Appointment of the Collateral Agent.
                  -----------------------------------

                  The Lenders hereby appoint the Collateral Agent (and the
Collateral Agent hereby accepts such appointment) to take any action including,
without limitation, the registration of any Collateral in the name of the
Collateral Agent or its nominees prior to or during the continuance of an Event
of Default (as defined in the Borrower Documents), the exercise of voting rights

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upon the occurrence and during the continuance of an Event of Default, the
application of any cash collateral received by the Collateral Agent to the
payment of the Obligations, the making of any demand under the Borrower
Documents, the exercise of any remedies given to the Collateral Agent pursuant
to the Borrower Documents and the exercise of any authority pursuant to the
appointment of the Collateral Agent as an attorney-in-fact pursuant to the
Security Agreement that the Collateral Agent deems necessary or proper for the
administration of the Collateral pursuant to the Security Agreements. Upon
disposition of the Collateral in accordance with the Borrower Documents, the
Collateral Agent shall promptly distribute any cash or Collateral in accordance
with Section 10.4 of the Security Agreement. Lenders must notify Collateral
Agent in writing of the issuance of Notes to Lenders by Debtor. The Collateral
Agent will not be required to act hereunder in connection with Notes the
issuance of which was not disclosed in writing to the Collateral Agent nor will
the Collateral Agent be required to act on behalf of any assignee of Notes
without the written consent of Collateral Agent.

         3.       Action by the Majority in Interest.
                  ----------------------------------

                  (a)      Certain Actions. Each of the Lenders covenants and
agrees that only a Majority in Interest shall have the right, but not the
obligation, to undertake the following actions (it being expressly understood
that less than a Majority in Interest hereby expressly waive the following
rights that they may otherwise have under the Borrower Documents):

                           (i)      Acceleration. If an Event of Default occurs,
after the applicable cure period, if any, a Majority in Interest may, on behalf
of all the Lenders, instruct the Collateral Agent to provide to Debtors notice
to cure such default and/or declare the unpaid principal amount of the Notes to
be due and payable, together with any and all accrued interest thereon and all
costs payable pursuant to such Notes;

                           (ii)     Enforcement. Upon the occurrence of any
Event of Default after the applicable cure period, if any, a Majority in
Interest may instruct the Collateral Agent to proceed to protect, exercise and
enforce, on behalf of all the Lenders, their rights and remedies under the
Borrower Documents against Debtors, and such other rights and remedies as are
provided by law or equity; and

                           (iii)    Waiver of Past Defaults. A Majority in
Interest may instruct the Collateral Agent to waive any Event of Default by
written notice to Debtors, and the other Lenders.

                  (b)      Permitted Subordination. A Majority in Interest may
instruct the Collateral Agent to agree to subordinate any Collateral to any
claim and may enter into any agreement with Debtors to evidence such
subordination; provided, however, that subsequent to any such subordination,
each Note shall remain pari passu with the other Notes held by the Lenders.

                  (c)      Further Actions. A Majority in Interest may instruct
the Collateral Agent to take any action that it may take under this Agreement by
instructing the Collateral Agent in writing to take such action on behalf of all
the Lenders.

                  (d)      Majority in Interest. For so long as any obligations
remain outstanding on the Notes, Majority in Interest for the purposes of this
Agreement and the Security Agreement shall mean Lenders who hold not less than
sixty-five percent of the outstanding principal amount of the Notes.

         4.       Power of Attorney.
                  -----------------

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                  (a)      To effectuate the terms and provisions hereof, the
Lenders hereby appoint the Collateral Agent as their attorney-in-fact (and the
Collateral Agent hereby accepts such appointment) for the purpose of carrying
out the provisions of this Agreement including, without limitation, taking any
action on behalf of, or at the instruction of, the Majority in Interest at the
written direction of the Majority in Interest and executing any consent
authorized pursuant to this Agreement and taking any action and executing any
instrument that the Collateral Agent may deem necessary or advisable (and
lawful) to accomplish the purposes hereof.

                  (b)      All acts done under the foregoing authorization are
hereby ratified and approved and neither the Collateral Agent nor any designee
nor agent thereof shall be liable for any acts of commission or omission, for
any error of judgment, for any mistake of fact or law except for acts of gross
negligence or willful misconduct.

                  (c)      This power of attorney, being coupled with an
interest, is irrevocable while this Agreement remains in effect.

         5.       Expenses of the Collateral Agent. The Lenders shall pay any
and all reasonable costs and expenses incurred by the Collateral Agent,
including, without limitation, reasonable costs and expenses relating to all
waivers, releases, discharges, satisfactions, modifications and amendments of
this Agreement, the administration and holding of the Collateral, insurance
expenses, and the enforcement, protection and adjudication of the parties'
rights hereunder by the Collateral Agent, including, without limitation, the
reasonable disbursements, expenses and fees of the attorneys the Collateral
Agent may retain, if any, each of the foregoing in proportion to their holdings
of the Notes.

         6.       Reliance on Documents and Experts. The Collateral Agent shall
be entitled to rely upon any notice, consent, certificate, affidavit, statement,
paper, document, writing or communication (which may be by telegram, cable,
telex, telecopier, or telephone) reasonably believed by it to be genuine and to
have been signed, sent or made by the proper person or persons, and upon
opinions and advice of its own legal counsel, independent public accountants and
other experts selected by the Collateral Agent.

         7.       Duties of the Collateral Agent; Standard of Care.
                  ------------------------------------------------

                  (a)      The Collateral Agent's only duties are those
expressly set forth in this Agreement, and the Collateral Agent hereby is
authorized to perform those duties in accordance with commercially reasonable
practices. The Collateral Agent may exercise or otherwise enforce any of its
rights, powers, privileges, remedies and interests under this Agreement and
applicable law or perform any of its duties under this Agreement by or through
its officers, employees, attorneys, or agents.

                  (b)      The Collateral Agent shall act in good faith and with
that degree of care that an ordinarily prudent person in a like position would
use under similar circumstances.

                  (c)      Any funds held by the Collateral Agent hereunder need
not be segregated from other funds except to the extent required by law. The
Collateral Agent shall be under no liability for interest on any funds received
by it hereunder.

         8.       Resignation. The Collateral Agent may resign and be discharged
of its duties hereunder at any time by giving written notice of such resignation
to the other parties hereto, stating the date such resignation is to take
effect. Within five (5) days of the giving of such notice, a successor
collateral agent shall be appointed by the Majority in Interest; provided,
however, that if the Lenders are unable so to agree upon a successor within such
time period, and notify the Collateral Agent during such period of the identity

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of the successor collateral agent, the successor collateral agent may be a
person designated by the Collateral Agent, and any and all fees of such
successor collateral agent shall be the joint and several obligation of the
Lenders. The Collateral Agent shall continue to serve until the effective date
of the resignation or until its successor accepts the appointment and receives
the Collateral held by the Collateral Agent but shall not be obligated to take
any action hereunder. The Collateral Agent may deposit any Collateral with the
Supreme Court of the State of New York for New York County or any such other
court in New York State that accepts such Collateral.

         9.       Exculpation. The Collateral Agent and its officers, employees,
attorneys and agents, shall not incur any liability whatsoever for the holding
or delivery of documents or the taking of any other action in accordance with
the terms and provisions of this Agreement, for any mistake or error in
judgment, for compliance with any applicable law or any attachment, order or
other directive of any court or other authority (irrespective of any conflicting
term or provision of this Agreement), or for any act or omission of any other
person engaged by the Collateral Agent in connection with this Agreement, unless
occasioned by the exculpated person's own gross negligence or willful
misconduct; and each party hereto hereby waives any and all claims and actions
whatsoever against the Collateral Agent and its officers, employees, attorneys
and agents, arising out of or related directly or indirectly to any or all of
the foregoing acts, omissions and circumstances.

         10.      Indemnification. The Lenders hereby agree to indemnify,
reimburse and hold harmless the Collateral Agent and its directors, officers,
employees, attorneys and agents, jointly and severally, from and against any and
all claims, liabilities, losses and expenses that may be imposed upon, incurred
by, or asserted against any of them, arising out of or related directly or
indirectly to this Agreement or the Collateral, except such as are occasioned by
the indemnified person's own gross negligence or willful misconduct.

         11.      Miscellaneous.
                  -------------

                  (a)      Rights and Remedies Not Waived. No act, omission or
delay by the Collateral Agent shall constitute a waiver of the Collateral
Agent's rights and remedies hereunder or otherwise. No single or partial waiver
by the Collateral Agent of any default hereunder or right or remedy that it may
have shall operate as a waiver of any other default, right or remedy or of the
same default, right or remedy on a future occasion.

                  (b)      Governing Law. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York without
regard to conflicts of laws that would result in the application of the
substantive laws of another jurisdiction.

                  (c)      Waiver of Jury Trial and Setoff; Consent to
Jurisdiction; Etc.

                           (i)      In any litigation in any court with respect
to, in connection with, or arising out of this Agreement or any instrument or
document delivered pursuant to this Agreement, or the validity, protection,
interpretation, collection or enforcement hereof or thereof, or any other claim
or dispute howsoever arising, between the Collateral Agent and the Lenders or
any Lender, then each Lender, to the fullest extent it may legally do so, (A)
waives the right to interpose any setoff, recoupment, counterclaim or
cross-claim in connection with any such litigation, irrespective of the nature
of such setoff, recoupment, counterclaim or cross-claim, unless such setoff,
recoupment, counterclaim or cross-claim could not, by reason of any applicable
federal or state procedural laws, be interposed, pleaded or alleged in any other
action; and (B) WAIVES TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION AND
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL,

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EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN
ADDITION TO, ACTUAL DAMAGES. EACH LENDER AGREES THAT THIS SECTION 11(c) IS A
SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND ACKNOWLEDGE THAT THE
COLLATERAL AGENT WOULD NOT ENTER THIS AGREEMENT IF THIS SECTION 11(c) WERE NOT
PART OF THIS AGREEMENT.

                           (ii)     Each Lender irrevocably consents to the
exclusive jurisdiction of any State or Federal Court located within the County
of New York, State of New York, in connection with any action or proceeding
arising out of or relating to this Agreement or any document or instrument
delivered pursuant to this Agreement or otherwise. In any such litigation, each
Lender waives, to the fullest extent it may effectively do so, personal service
of any summons, complaint or other process and agree that the service thereof
may be made by certified or registered mail directed to such Lender at its
address for notice determined in accordance with Section 11(e) hereof. Each
Lender hereby waives, to the fullest extent it may effectively do so, the
defenses of forum non conveniens and improper venue.

                  (d)      Admissibility of this Agreement. Each of the Lenders
agrees that any copy of this Agreement signed by it and transmitted by
telecopier for delivery to the Collateral Agent shall be admissible in evidence
as the original itself in any judicial or administrative proceeding, whether or
not the original is in existence.

                  (e)      Address for Notices. Any notice or other
communication under the provisions of this Agreement shall be given in writing
and delivered in person, by reputable overnight courier or delivery service, by
facsimile machine (receipt confirmed) with a copy sent by first class mail on
the date of transmissions, or by registered or certified mail, return receipt
requested, directed to such party's addresses set forth below (or to any new
address of which any party hereto shall have informed the others by the giving
of notice in the manner provided herein):

                  In the case of the Collateral Agent, to:

                  Barbara R. Mittman
                  551 Fifth Avenue, Suite 1601
                  New York, NY 10176
                  Fax: (212) 697-3575

                  In the case of the Lenders, to:

                  To the address and telecopier number set forth on
                  Schedule A hereto.

                  In the case of Debtors, to:

                  Stem Cell Innovations, Inc.
                  1812 Front Street
                  Scotch Plains, New Jersey 07076
                  Attn: Dr. James H. Kelly, CEO
                  Fax: (908) 663-2152

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<PAGE>

                  With an additional copy by telecopier only to:

                  Greenberg & Kahr
                  230 Park Avenue, Suite 430
                  New York, NY 10169
                  Attn: Andrew J. Levinson, Esq.
                  Fax: (212) 953-7704

                  If to Debtor, Lender or Collateral Agent,
                  with a copy by telecopier only to:

                  Grushko & Mittman, P.C.
                  551 Fifth Avenue, Suite 1601
                  New York, New York 10176
                  Fax: (212) 697-3575

                  (f)      Amendments and Modification; Additional Lender. No
provision hereof shall be modified, altered, waived or limited except by written
instrument expressly referring to this Agreement and to such provision, and
executed by the parties hereto. Any transferee of a Note who acquires a Note
after the date hereof will become a party hereto by signing the signature page
and sending an executed copy of this Agreement to the Collateral Agent and
receiving a signed acknowledgement from the Collateral Agent.

                  (g)      Fee. Upon the occurrence of an Event of Default, the
Lenders collectively shall pay the Collateral Agent the sum of $10,000 on
account, to apply against an hourly fee of $350 to be paid to the Collateral
Agent by the Lenders for services rendered pursuant to this Agreement. All
payments due to the Collateral Agent under this Agreement including
reimbursements must be paid when billed. The Collateral Agent may refuse to act
on behalf of or make a distribution to any Lender who is not current in payments
to the Collateral Agent. Payments required pursuant to this Agreement shall be
pari passu to the Lenders' interests in the Notes. The Collateral Agent is
hereby authorized to deduct any sums due the Collateral Agent from Collateral in
the Collateral Agent's possession.

                  (h)      Counterparts/Execution. This Agreement may be
executed in any number of counterparts and by the different signatories hereto
on separate counterparts, each of which, when so executed, shall be deemed an
original, but all such counterparts shall constitute but one and the same
instrument. This Agreement may be executed by facsimile signature and delivered
by facsimile transmission.

                  (i)      Successors and Assigns. Whenever in this Agreement
reference is made to any party, such reference shall be deemed to include the
successors, assigns, heirs and legal representatives of such party. No party
hereto may transfer any rights under this Agreement, unless the transferee
agrees to be bound by, and comply with all of the terms and provisions of this
Agreement, as if an original signatory hereto on the date hereof.

                  (j)      Captions: Certain Definitions. The captions of the
various sections and paragraphs of this Agreement have been inserted only for
the purposes of convenience; such captions are not a part of this Agreement and
shall not be deemed in any manner to modify, explain, enlarge or restrict any of
the provisions of this Agreement. As used in this Agreement the term "person"

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<PAGE>

shall mean and include an individual, a partnership, a joint venture, a
corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

                  (k)      Severability. In the event that any term or provision
of this Agreement shall be finally determined to be superseded, invalid, illegal
or otherwise unenforceable pursuant to applicable law by an authority having
jurisdiction and venue, that determination shall not impair or otherwise affect
the validity, legality or enforceability (i) by or before that authority of the
remaining terms and provisions of this Agreement, which shall be enforced as if
the unenforceable term or provision were deleted, or (ii) by or before any other
authority of any of the terms and provisions of this Agreement.

                  (l)      Entire Agreement. This Agreement contains the entire
agreement of the parties and supersedes all other agreements and understandings,
oral or written, with respect to the matters contained herein.

                  (m)      Schedules. The Collateral Agent is authorized to
annex hereto any schedules referred to herein.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Collateral
Agent Agreement to be signed, by their respective duly authorized officers or
directly, as of the date first written above.

                                    "LENDERS"
                                    ---------

ALPHA CAPITAL ANSTALT

By:_____________________________________

Print Name of Signator:_________________

                                           _____________________________________
                                           BARBARA R. MITTMAN - Collateral Agent

Acknowledged:

STEM CELL INNOVATIONS, INC.

By:__________________________________
   Name:
   Title:

"GUARANTOR"                                 "GUARANTOR"
STEM CELL INNOVATIONS BV                    AMPHIOXUS CELL TECHNOLOGIES
a Netherlands corporation                   INC.
                                            a Delaware corporation

By: __________________________________      By: ________________________________

Its: _________________________________      Its: _______________________________

           This Collateral Agent Agreement may be signed by facsimile
          signature and delivered by confirmed facsimile transmission.

                                       8
<PAGE>

                    SCHEDULE A TO COLLATERAL AGENT AGREEMENT
                    ----------------------------------------

--------------------------------------------------------------------------------
LENDER                                           PRINCIPAL AMOUNT OF NOTE TO BE
                                                 ISSUED ON CLOSING DATE
--------------------------------------------------------------------------------
ALPHA CAPITAL ANSTALT                            $1,000,000.00
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax: 011-42-32323196
--------------------------------------------------------------------------------

                                       9Exhibit 10.4

                                FORM OF GUARANTY
                                ----------------

1.       Identification.
         --------------

         This Guaranty (the "Guaranty"), dated as of November16, 2006, is
entered into by Stem Cell Innovations BV, a Netherlands corporation, Amphioxus
Cell Technologies, Inc., a Delaware corporation (each a "Guarantor"), for the
benefit of the parties identified on Schedule A hereto (each a "Lender" and
collectively, the "Lenders").

2.       Recitals.
         --------

         2.1      Guarantor is a direct or indirect subsidiary of Stem Cell
Innovations, Inc., a Delaware corporation ("Parent"). The Lenders have made, are
making and will be making loans to Parent (the "Loans"). Guarantor will obtain
substantial benefit from the proceeds of the Loans.

         2.2      The Loans are and will be evidenced by certain promissory
Notes (collectively, "Note" or "Notes") issued by Parent on, about or after the
date of this Guaranty pursuant to subscription agreements dated at or about the
date hereof ("Subscription Agreements"). The Notes are further identified on
Schedule A hereto and were and will be executed by Parent as "Borrower" or
"Debtor" for the benefit of each Lender as the "Holder" or "Lender" thereof.

         2.3      In consideration of the Loans made and to be made by Lenders
to Parent and for other good and valuable consideration, and as security for the
performance by Parent of its obligations under the Notes and as security for the
repayment of the Loans and all other sums due from Debtor to Lenders arising
under the Notes, Subscription Agreements and any other agreement between or
among them relating to the foregoing (collectively, the "Obligations"),
Guarantor, for good and valuable consideration, receipt of which is
acknowledged, has agreed to enter into this Guaranty. Obligations include all
future advances by Lenders to Parent made by Lenders pursuant to the
Subscription Agreement.

         2.4      The Lenders have appointed Barbara R. Mittman as Collateral
Agent pursuant to that certain Collateral Agent Agreement dated at or about the
date of this Agreement ("Collateral Agent Agreement"), among the Lenders and
Collateral Agent.

3.       Guaranty.
         --------

         3.1      Guaranty. Guarantor hereby unconditionally and irrevocably
guarantees, jointly and severally with any other Guarantor, the punctual
payment, performance and observance when due, whether at stated maturity, by
acceleration or otherwise, of all of the Obligations now or hereafter existing,
whether for principal, interest (including, without limitation, all interest
that accrues after the commencement of any insolvency, bankruptcy or
reorganization of Parent, whether or not constituting an allowed claim in such
proceeding), fees, commissions, expense reimbursements, liquidated damages,
indemnifications or otherwise (such obligations, to the extent not paid by
Parent being the "Guaranteed Obligations"), and agrees to pay any and all
reasonable costs, fees and expenses (including reasonable counsel fees and
expenses) incurred by Collateral Agent and the Lenders in enforcing any rights
under the guaranty set forth herein. Without limiting the generality of the
foregoing, Guarantor's liability shall extend to all amounts that constitute
part of the Guaranteed Obligations and would be owed by Parent to Collateral
Agent and the Lenders, but for the fact that they are unenforceable or not
allowable due to the existence of an insolvency, bankruptcy or reorganization
involving Parent.

         3.2      Guaranty Absolute. Guarantor guarantees that the Guaranteed
Obligations will be paid strictly in accordance with the terms of the Notes,
regardless of any law, regulation or order now or hereafter in effect in any

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jurisdiction affecting any of such terms or the rights of Collateral Agent or
the Lenders with respect thereto. The obligations of Guarantor under this
Guaranty are independent of the Guaranteed Obligations, and a separate action or
actions may be brought and prosecuted against Guarantor to enforce such
obligations, irrespective of whether any action is brought against Parent or any
other Guarantor or whether Parent or any other Guarantor is joined in any such
action or actions. The liability of Guarantor under this Guaranty constitutes a
primary obligation, and not a contract of surety, and to the extent permitted by
law, shall be irrevocable, absolute and unconditional irrespective of, and
Guarantor hereby irrevocably waives any defenses it may now or hereafter have in
any way relating to, any or all of the following:

                  (a) any lack of validity or enforceability of the Notes or any
agreement or instrument relating thereto;

                  (b) any change in the time, manner or place of payment of, or
in any other term of, all or any of the Guaranteed Obligations, or any other
amendment or waiver of or any consent to departure from the Notes, including,
without limitation, any increase in the Guaranteed Obligations resulting from
the extension of additional credit to Parent or otherwise;

                  (c) any taking, exchange, release, subordination or
non-perfection of any Collateral, or any taking, release or amendment or waiver
of or consent to departure from any other guaranty, for all or any of the
Guaranteed Obligations;

                  (d) any change, restructuring or termination of the corporate,
limited liability company or partnership structure or existence of Parent; or

                  (e) any other circumstance (including, without limitation, any
statute of limitations) or any existence of or reliance on any representation by
Collateral Agent or the Lenders that might otherwise constitute a defense
available to, or a discharge of, Parent or any other guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by Collateral Agent, the Lenders or any other
entity upon the insolvency, bankruptcy or reorganization of the Parent or
otherwise (and whether as a result of any demand, settlement, litigation or
otherwise), all as though such payment had not been made.

         3.3      Waiver. Guarantor hereby waives promptness, diligence, notice
of acceptance and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that Collateral Agent or the
Lenders or exhaust any right or take any action against any Borrower or any
other person or entity or any Collateral. Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated herein and that the waiver set forth in this Section 3.3 is
knowingly made in contemplation of such benefits. Guarantor hereby waives any
right to revoke this Guaranty, and acknowledges that this Guaranty is continuing
in nature and applies to all Guaranteed Obligations, whether existing now or in
the future.

         3.4      Continuing Guaranty; Assignments. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
later of the indefeasible cash payment in full of the Guaranteed Obligations and
all other amounts payable under this Guaranty, the Subscription Agreements and
Notes, (b) be binding upon Guarantor, its successors and assigns and (c) inure
to the benefit of and be enforceable by the Lenders and their successors,
pledgees, transferees and assigns. Without limiting the generality of the
foregoing clause (c), any Lender may pledge, assign or otherwise transfer all or
any portion of its rights and obligations under this Guaranty (including,
without limitation, all or any portion of its Notes owing to it) to any other

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Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted such Collateral Agent or Lender herein or
otherwise.

         3.5      Subrogation. No Guarantor will exercise any rights that it may
now or hereafter acquire against the Collateral Agent or any Lender or other
Guarantor (if any) that arise from the existence, payment, performance or
enforcement of such Guarantor's obligations under this Guaranty, including,
without limitation, any right of subrogation, reimbursement, exoneration,
contribution or indemnification, whether or not such claim, remedy or right
arises in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from the Collateral Agent or any Lender
or other Guarantor (if any), directly or indirectly, in cash or other property
or by set-off or in any other manner, payment or security solely on account of
such claim, remedy or right, unless and until all of the Guaranteed Obligations
and all other amounts payable under this Guaranty shall have been indefeasibly
paid in full in cash.

         3.6      Maximum Obligations. Notwithstanding any provision herein
contained to the contrary, Guarantor's liability with respect to the Obligations
shall be limited to an amount not to exceed, as of any date of determination,
the amount that could be claimed by Lenders from Guarantor without rendering
such claim voidable or avoidable under Section 548 of the Bankruptcy Code or
under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law.

4.       Miscellaneous.
         -------------

         4.1      Expenses. Guarantor shall pay to the Lenders, on demand, the
amount of any and all reasonable expenses, including, without limitation,
attorneys' fees, legal expenses and brokers' fees, which the Lenders may incur
in connection with exercise or enforcement of any the rights, remedies or powers
of the Lenders hereunder or with respect to any or all of the Obligations.

         4.2      Waivers, Amendment and Remedies. No course of dealing by the
Lenders and no failure by the Lenders to exercise, or delay by the Lender in
exercising, any right, remedy or power hereunder shall operate as a waiver
thereof, and no single or partial exercise thereof shall preclude any other or
further exercise thereof or the exercise of any other right, remedy or power of
the Lenders. No amendment, modification or waiver of any provision of this
Guaranty and no consent to any departure by Guarantor therefrom, shall, in any
event, be effective unless contained in a writing signed by the Majority in
Interest (as such term is defined in the Collateral Agent Agreement) or the
Lender or Lenders against whom such amendment, modification or waiver is sought,
and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. The rights, remedies and powers of
the Lenders, not only hereunder, but also under any instruments and agreements
evidencing or securing the Obligations and under applicable law are cumulative,
and may be exercised by the Lenders from time to time in such order as the
Lenders may elect.

         4.3      Notices. All notices or other communications given or made
hereunder shall be in writing and shall be personally delivered or deemed
delivered the first business day after being faxed (provided that a copy is
delivered by first class mail) to the party to receive the same at its address
set forth below or to such other address as either party shall hereafter give to
the other by notice duly made under this Section:

                  To Parent and
                  Guarantor, to:                 Stem Cell Innovations, Inc.
                                                 1812 Front Street
                                                 Scotch Plains, New Jersey 07076
                                                 Attn: Dr. James H. Kelly, CEO
                                                 Fax: (908) 663-2152

                                       3
<PAGE>

                  With an additional copy by
                  telecopier only to:            Greenberg & Kahr
                                                 230 Park Avenue, Suite 430
                                                 New York, NY 10169
                                                 Attn: Andrew J. Levinson, Esq.
                                                 Fax: (212) 953-7704

                  To Lenders:                    To the addresses and telecopier
                                                 numbers set forth on Schedule A

                  To the Collateral Agent:       Barbara R. Mittman
                                                 551 Fifth Avenue, Suite 1601
                                                 New York, New York 10176
                                                 Fax: (212) 697-357

                  If to Parent, Guarantor, Lender or
                  Collateral Agent, with a copy by telecopier only to:

                                                 Grushko & Mittman, P.C.
                                                 551 Fifth Avenue, Suite 1601
                                                 New York, New York 10176
                                                 Fax: (212) 697-3575

Any party may change its address by written notice in accordance with this
paragraph.

         4.4      Term; Binding Effect. This Guaranty shall (a) remain in full
force and effect until payment and satisfaction in full of all of the
Obligations; (b) be binding upon Guarantor and its successors and permitted
assigns; and (c) inure to the benefit of the Lenders and their respective
successors and assigns. All the rights and benefits granted by Guarantor to the
Collateral Agent and Lenders hereunder and other agreements and documents
delivered in connection therewith are deemed granted to both the Collateral
Agent and Lenders. Upon the payment in full of the Obligations, (i) this
Guaranty shall terminate and (ii) the Lenders will, upon Guarantor's request and
at Guarantor's expense, execute and deliver to Guarantor such documents as
Guarantor shall reasonably request to evidence such termination, all without any
representation, warranty or recourse whatsoever.

         4.5      Captions. The captions of Paragraphs, Articles and Sections in
this Guaranty have been included for convenience of reference only, and shall
not define or limit the provisions hereof and have no legal or other
significance whatsoever.

         4.6      Governing Law; Venue; Severability. This Guaranty shall be
governed by and construed in accordance with the laws of the State of New York
without regard to principles of conflicts or choice of law. Any legal action or
proceeding against Guarantor with respect to this Guaranty may be brought in the
courts of the State of New York or of the United States for the Southern
District of New York, and, by execution and delivery of this Guaranty, Guarantor
hereby irrevocably accepts for itself and in respect of its property, generally
and unconditionally, the jurisdiction of the aforesaid courts. Guarantor hereby
irrevocably waives any objection which they may now or hereafter have to the
laying of venue of any of the aforesaid actions or proceedings arising out of or
in connection with this Guaranty brought in the aforesaid courts and hereby
further irrevocably waives and agrees not to plead or claim in any such court
that any such action or proceeding brought in any such court has been brought in

                                       4
<PAGE>

an inconvenient forum. If any provision of this Guaranty, or the application
thereof to any person or circumstance, is held invalid, such invalidity shall
not affect any other provisions which can be given effect without the invalid
provision or application, and to this end the provisions hereof shall be
severable and the remaining, valid provisions shall remain of full force and
effect.

         4.7      Satisfaction of Obligations. For all purposes of this
Guaranty, the payment in full of the Obligations shall be conclusively deemed to
have occurred when either the Obligations have been indefeasibly paid in cash or
all outstanding Notes have been converted to common stock pursuant to the terms
of the Notes and the Subscription Agreements.

         4.8      Counterparts/Execution. This Agreement may be executed in any
number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument. This
Agreement may be executed by facsimile signature and delivered by facsimile
transmission.

          [THE BALANCE OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                       5
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed and delivered this
Guaranty, as of the date first written above.

"GUARANTOR"                               "GUARANTOR"
STEM CELL INNOVATIONS BV                  AMPHIOXUS CELL TECHNOLOGIES
a Netherlands corporation                 INC.
                                          a Delaware corporation

By: _________________________________     By: __________________________________

Its: _________________________________    Its: _________________________________

                             APPROVED BY "LENDERS":
                             ----------------------

ALPHA CAPITAL ANSTALT

By:____________________________________

Print Name of Signator:________________

               This Guaranty Agreement may be signed by facsimile
          signature and delivered by confirmed facsimile transmission.

                                       6
<PAGE>

                             SCHEDULE A TO GUARANTY
                             ----------------------

--------------------------------------------------------------------------------
LENDER                                           PRINCIPAL AMOUNT OF NOTE TO BE
                                                 ISSUED ON CLOSING DATE
--------------------------------------------------------------------------------
ALPHA CAPITAL ANSTALT                            $1,000,000.00
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax: 011-42-32323196
--------------------------------------------------------------------------------

                                       7

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