NOTE 18 – SAFTI-CELL

On September 24, 2009, the Company entered into an Asset Purchase Agreement with Red Rock Investments, LLP ("Red Rock") to purchase the assets and rights related to Safti-Cell, Inc. ("Safti-Cell"), which was mainly cryogenic storage units, to cancel the Safti-Cell contract, as well as, to assume the remaining portion of Safti-Cell's building lease. Safti-Cell had provided back-up dual cryogenic storage of umbilical cord stem cells as part of the Company's service offering. The original twenty-year storage agreement required Cryo-Cell to pay fees to Safti-Cell for each specimen stored in the facility for Cryo-Cell customers. The Asset Purchase Agreement required the Company to pay $750,000 to Red Rock in installments of which $53,150 was allocated to the purchase of the cryogenic storage units and $696,850 was allocated to the cancellation of the contract and included in the consolidated statements of operations for the year ended November 30, 2009. The first installment of $375,000 was paid on September 24, 2009. The remaining $375,000, which had a stated interest rate of 3.25% and was collateralized by the assets and the rights to the Safti-Cell cryogenic storage units, was paid in full in equal quarterly installments of principal plus interest of approximately $95,000 during fiscal 2010. All of the specimens stored at Safti-Cell were moved to the Company's laboratory for continued storage. The twenty-year storage agreement entered into in October 2001 which required Cryo-Cell to pay fees to Safti-Cell for each specimen stored in the facility for Cryo-Cell customers was terminated as a result of the Asset Purchase Agreement. The Company's made no payments to Safti-Cell for storage for the fiscal years ended November 30, 2011 and 2010. Due to the cancellation of the contract with Safti-Cell, the Company will save approximately $3,300,000 over the next 12 years.