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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. THIS SECURITY AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

NEURALSTEM,
Inc.

 

 

	Warrant Shares: 150,000	Initial Exercise Date: June 1, 2013
	[*]	 

 

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, the [*]. (the
“Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close
of business on the five year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter,
to subscribe for and purchase from Neuralstem, Inc., a Delaware corporation (the “Company”), up to 150,000 shares
(the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall
be equal to the Exercise Price, as defined in Section 2(b).

 

		Section 1.	Definitions.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. With respect to a Holder,
any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Holder will
be deemed to be an Affiliate of such Holder.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

 

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“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed into.

 

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

 

“Market
Price” means: (a) the closing price reported on the Company’s Trading Market on the Trading Day immediately preceding
any applicable measuring date, (b) if no trading occurs on the Trading Day immediately preceding any applicable measurement date,
then the closing bid price reported on such Trading Market, (c) if the Company’s Common Shares are not then listed on a Trading
Market, the price offered by any acquirer in a Fundamental Transaction, or (d) in all other cases, the fair market value of
a share of Common Stock as determined in good faith by the Company’s Board of Directors at their sole and absolute discretion.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

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

 

“Trading
Day” means a day on which the New York Stock Exchange is open for trading.

 

“Trading
Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange, and the OTC Bulletin Board.

 

“Transfer
Agent” means American Stock Transfer and Trust Company, the current transfer agent of the Company with a mailing address
of 59 Maiden Lane, New York, New York 10038 and a facsimile number of (718) 921-8336, and any successor transfer agent of the Company.

 

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		Section 2.	Exercise.

 

a) Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or
agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto; and, within 3 Business
Days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate
Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the
Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the
Holder shall surrender this Warrant to the Company for cancellation within 3 Business Days of the date the final Notice of Exercise
is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in
an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of
Exercise Form within 1 Business Day of receipt of such notice. In the event of any dispute or discrepancy, the records of the Company
shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this
Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the
Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the
amount stated on the face hereof.

 

b) Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $1.52, subject to adjustment hereunder
(the “Exercise Price”).

 

c) Cashless
Exercise. If at any time after the six (6) month anniversary of the Initial Exercise Date, there is no effective registration
statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

		(A) = 	the Market Price on the Business Day immediately preceding
the date of such election;

 

		(B) = 	the Exercise Price of this Warrant, as adjusted; and

 

		(X) = 	the number of Warrant Shares issuable upon exercise
of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

 

Notwithstanding
anything herein to the contrary, and provided this Warrant is then in the money, on the Termination Date this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section 2(c).

 

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d) Exercise
Limitations.

 

i. The
Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant,
pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the
applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other person or entity acting as
a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially
owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates
and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without
limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by the Holder or any of its affiliates.  Except as set forth in the preceding sentence, for purposes
of this Section 2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(d) applies, the determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of
which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise
shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities
owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to
the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(d), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent periodic or annual report, as the case may be, (y) a more recent public announcement by
the Company or (z) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. 
Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder
the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder
or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’
prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(d), provided
that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions
of this Section 2(d) shall continue to apply. Any such increase or decrease will not be effective until the 61st day
after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 2(c) to correct this paragraph (or any portion hereof) which
may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Warrant.

 

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ii. The
Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant,
pursuant to Section 2 or otherwise, until such time as the Company receives approval from its primary Trading Market for the listing
of the Warrant Shares.

 

e) Mechanics
of Exercise.

 

i. Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be by physical delivery to the address specified
by the Holder in the Notice of Exercise within 15 Business Days from the delivery to the Company of the Notice of Exercise Form,
surrender of this Warrant (if required) and payment of the aggregate Exercise Price as set forth above (the “Warrant Share
Delivery Date”). This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the
Company. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated 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 has been exercised
by payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the
Holder, if any, pursuant to Section 2(e)(v) prior to the issuance of such shares, have been paid.

 

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ii. Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant
Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by
this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii. Rescission
Rights. If the Company fails to cause the transfer agent of the Company to transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to Section 2(e)(i) by the Warrant Share Delivery Date, then, the Holder will have the
right to rescind such exercise.

 

iv. No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which 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 Exercise Price or round up to the next whole share.

 

v. Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

 

vi. Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

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		Section 3.	Certain Adjustments.

 

a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b) Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

c) Notice
to Holder.

 

i. Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts
requiring such adjustment. Notwithstanding the forgoing, in the event the Company makes a public disclosure with regard to the
Exercise Price adjustment, such disclosure shall be deemed notice to the Holders.

 

ii. Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or
effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common
Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares
of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall
not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice. Notwithstanding
the forgoing, in the event the Company makes a public disclosure with regard to the subject matter of this Section 3(d)(ii), such
disclosure shall be deemed notice to the Holders.

 

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		Section 4.	Transfer of Warrant.

 

a) Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof, this Warrant and
all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion
of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned, may be exercised
by a new holder for the purchase of Warrant Shares without having a new Warrant issued. Notwithstanding the foregoing, upon request
by Holder, the Company will issue a new Warrant or Warrants in the names of any assignee(s) of Holder at no charge to Holder or
the assignee(s).  

 

b) New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a) and 4(d), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the original Issue Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

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c) Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

d) Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant,
the transfer of this Warrant shall not be eligible for resale without volume or manner-of-sale restrictions pursuant to Rule 144,
the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may
be, may be required by the Company to provide an opinion of counsel with regard to such assignment or transfer.

 

		Section 5.	Miscellaneous.

 

a) No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder
of the Company prior to the exercise hereof as set forth in Section 2(e)(i).

 

b) Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c) Saturdays,
Sundays, Holidays, etc. 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.

 

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d) Authorized
Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise
of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that
such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued
upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by
this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created
by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such
issue).

 

Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

e) Governing
Law and Venue. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be
governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles
of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Warrant (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the state
of Maryland. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the
state of Maryland for the adjudication of any dispute hereunder or in connection herewith 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 improper or is
an inconvenient venue for such proceeding. 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 via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices 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 other manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions
of this Warrant, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action
or proceedings or questions concerning the construction, validity, enforcement and interpretation of this Warrant.

 

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f) Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

 

g) Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that all rights
hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient
to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

h) Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via facsimile prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the date of transmission, if such notice or communication
is delivered via electronic mail prior to 5:30 p.m. (New York City time) on a Trading Day, (c) the next Trading Day after the date
of transmission, if such notice or communication is delivered via facsimile or electronic mail on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, the date of the public disclosure if such notice is communicated
via public disclosure (d) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (e) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be: (i) if to Holder, at its address of records as contained in the Warrant Register, and (ii) if to Company,
at its corporate headquarters.

 

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i) Limitation
of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for
the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

 

j) Remedies.
The 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. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

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

 

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

 

m) Severability.
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.

 

n) Headings.
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.

 

 

********************

 

 

(Signature Pages Follow)

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

	 	NEURALSTEM, INC.
	 	 
	 	 
	 	By: 	 
	 	 	Name:
Title:

 

    	13

    	 

    

 

NOTICE OF EXERCISE

 

		To:	NEURALSTEM, inc.

 

(1) The undersigned
hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

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

 

 ̈
in lawful money of the United States; or

 

 ̈
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless
exercise procedure set forth in subsection 2(c).

 

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

 

_______________________________

 

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

(4) [If required by
applicable regulations] Accredited Investor. The undersigned is an “accredited investor”
as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of
Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

    	14

    	 

    

 

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,
[____] all of 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:	_____________________________
		 	_____________________________

 

 

Signature Guaranteed: ___________________________________________

 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.

 

    	15Exhibit 10.1

 

FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT

 

This First Amendment
to that certain Employment Agreement ("Amended Agreement") between Campus Crest Communities, Inc. (the
"Company") and Ted W. Rollins, an individual ("Employee") (the Company and Employee are
hereinafter collectively referred to as the "Parties") is made and entered into as of the 5th day of August, 2013
(the "Effective Date").

 

RECITALS

 

A.           The
Parties previously executed that certain Employment Agreement dated October 19, 2010 (the "2010 Agreement"), a
copy of which is attached hereto as Exhibit A.

 

B.           The
Parties now mutually desire to amend and modify the 2010 Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements of the Parties hereinafter set forth, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound,
agree as follows:

 

1.          Effective
Date. The effective date of the 2010 Agreement is hereby amended to January 1, 2013.

 

2.          Employment.
Section 1 of the Agreement is hereby amended by adding the following new sentence to the end of such section: “Notwithstanding
the other provisions of this Section 1, Employee is authorized to make and manage personal business investments of his choice,
including, without limitation, the management of family-owned companies and investments, subject to the limitations set forth in
the Confidentiality and Noncompetition Agreement (as defined below) and provided that such activities do not materially interfere
with the performance of the Employee’s duties under the Amended Agreement.”

 

3.          Term.
Section 3 of the Agreement is hereby amended as follows: "This Agreement shall be for an initial term of three years,
expiring on the third anniversary of the date hereof; provided, however, it shall automatically renew for additional one year terms
on each anniversary date hereof unless notice of expiration is given in writing at least 90 days prior to expiration of the then
current term. For the sake of clarity, notification of a non-renewal by the Company within the prescribed 90 day period shall not
be considered a "termination" by the Company and as such, shall not invoke the Payment Upon Termination provisions described
in Section 3(B), below, which are only applicable for a termination of employment occurring during the term.

 

The Company may terminate this Agreement
at any time for Cause or without Cause (as defined below). Employee may terminate this Agreement at any time with or without Good
Reason (as defined below) upon delivery to the Company of thirty (30) days written notice. Termination of this Agreement shall
terminate completely Employee’s employment with the Company, including, but not limited to, his role as an officer. If Employee
is serving as a member of the Company’s Board, Employee agrees to resign from the Board effective immediately upon termination
of this Agreement."

 

    	 

    	 

    

 

4.          Section
3(B)(ii)(b) of the Agreement is hereby amended as follows:

 

(b)          Without
Cause. The Company may terminate this Agreement without Cause effective immediately upon notice to Employee. In the event the
Company terminates this Agreement without Cause, the Company shall pay to Employee in addition to the amounts under the first sentence
of Subsection B(i) above, a cash payment equal to two times the sum of: (i) Employee’s then current annual Base Salary,
as adjusted for any increase thereto and (ii) an amount equal to the bonus paid to Employee for the prior year (provided that,
if no incentive bonus was paid in the prior year the amount shall be 50% of the “target amount” as defined in the Company’s
Incentive Compensation Plan for the year in which notice is given). Any amounts payable under this subparagraph shall be paid in
equal monthly installments over a period of 24 months commencing no later than sixty (60) days following Employee’s Termination
Date, shall be subject to applicable withholdings and shall be subject to Employee signing a Release (as defined below) on or before
the sixtieth (60th) day following Employee’s Termination Date and all revocation periods applicable to such Release
having expired on or prior to the sixtieth (60th) day following Employee’s Termination Date. Such payments will
commence within sixty (60) days following Executive’s termination, with the exact commencement of payments to be determined
in the sole discretion of the Company, provided that if such sixty (60) day period commences in one calendar year and ends in the
next, the payments will commence in the second calendar year with the first payment to include all payment that would have otherwise
been made but for the provisions of this sentence. For the avoidance of doubt, Employee shall not be entitled to any severance
and bonus payments if the Employee has not signed the Release, and if all revocation period applicable to the Release have not
expired on or prior to the sixtieth (60th) day following Employee’s Termination Date. In addition, the severance
and bonus payments outlined in this Section are contingent on Employee fully complying with the terms of the Confidentiality and
Noncompetition Agreement signed contemporaneously herewith. If Employee fails to so comply, Employee agrees that the Company has
the right to cease making the payments described in this Section and that the Company is entitled to recover from Employee any
payments it has already made to Employee.

 

5.          The
first paragraph of Section 3(B)(iii) of the Agreement is hereby amended as follows:

 

    	2

    	 

    

 

(iii)        Change
in Control. In the event, within 24 months following a Change in Control of the Company: (A) Employee is terminated without
Cause by the Company, or (B) Employee terminates his employment for Good Reason, in lieu of the severance payment outlined in (b)
above, Employee will receive, in addition to the amounts under the first sentence of Subsection B(i) above, a cash
payment equal to two times the sum of (i) Employee’s then current Base Salary, as adjusted for any increase thereto and (ii)
an amount equal to Employee’s previous year’s Incentive Compensation Plan payment. In the event Employee did not receive
an Incentive Compensation Plan payment the previous year, the incentive amount shall be 50% of the “target amount”
as defined in the Company’s Incentive Compensation Plan for the year in which termination occurs. Any amounts payable under
this subparagraph shall be paid in a lump sum within 60 days of the Termination Date subject to subsection 3(C) hereof, shall
be subject to applicable withholdings and shall be subject to Employee signing a Release on or before the sixtieth (60th)
day following Employee’s Termination Date and all revocation periods applicable to such Release having expired on or prior
to the sixtieth (60th) day following Employee’s Termination Date. Such payments will commence within sixty (60)
days following Executive’s termination, with the exact commencement of payments to be determined in the sole discretion of
the Company, provided that if such sixty (60) day period commences in one calendar year and ends in the next, the payments will
commence in the second calendar year with the first payment to include all payment that would have otherwise been made but for
the provisions of this sentence. For the avoidance of doubt, Employee shall not be entitled to any severance and bonus payments
if the Employee has not signed the Release, and if all revocation period applicable to the Release have not expired on or prior
to the sixtieth (60th) day following Employee’s Termination Date. “Change in Control” means
“a change in the ownership of the corporation,” “a change in effective control of the corporation,” or
“a change in the ownership of a substantial portion of the assets of the corporation” within the meaning of Section 1.409A-3(i)(5)
of the Treasury Regulations. The payments to Employee outlined in this Section are contingent on Employee fully complying with
the terms of the Confidentiality and Noncompetition Agreement signed contemporaneously herewith. If Employee fails to so comply,
Employee agrees that the Company has the right to cease making the payments described in this Section and that the Company is entitled
to recover from Employee any payments it has already made to Employee.

 

6.          Exhibit
A. Exhibit A is hereby amended as follows:

 

(i)          Section
(B) shall read, "Employee shall receive a base salary of $400,000 per year, which shall increase to $450,000 as of March
18, 2013 ("Base Salary"). Thereafter, Employee’s Base Salary shall be reviewed annually by the Company’s
Compensation Committee and the Board of the Company and may be adjusted upward in its sole discretion. The Base Salary shall be
paid during the period of employment, by direct deposit according to the Company’s current standard pay practice of 26 pay
periods per year (semi-monthly) or in accordance with the Company’s relevant policies and practices in effect from time to
time, including normal payroll practices, and shall be subject to all applicable employment and withholding taxes";

 

(ii)         Section
(C) shall read, "In addition to the Base Salary, Employee is eligible to participate in the Company’s Incentive Compensation
Plan (the “Plan”) with a target potential bonus equal to seventy five percent (75%) of his Base Salary, with the potential
to achieve one hundred percent (100%) of Base Salary if stretch performance targets are achieved. This plan shall be approved annually
by the Compensation Committee and approved by the Board of the Company. Employee’s eligibility for or entitlement to any
payments under the Plan shall be subject to the terms of the Plan."

 

(iii)        Section
(D) shall read, "In accordance with its terms, Employee is eligible to participate in the Company’s Equity Incentive
Compensation Plan (the “EICP”) with an annual target equity award with a value equal to seventy five percent (75%)
of his Base Salary, with the potential to achieve one hundred percent (100%) of Base Salary if stretch performance targets are
achieved. The annual target shall be adjusted annually by the Compensation Committee and approved by the Board of the Company.
Employee’s eligibility for or entitlement to any payments under the EICP shall be subject to the terms of the EICP."

 

    	3

    	 

    

 

(iv)        Section
(E) shall read, "Employee shall receive a monthly car allowance of $1,000 and shall be reimbursed for the costs of
reasonable repairs, operating expenses and gas.”

 

7.          Access
To Counsel. Employee acknowledges that he has had full opportunity to review this Amended Agreement and has had access
to independent legal counsel of his choice to the extent deemed necessary to interpret the legal effect hereof. The Parties represent
and acknowledge that they are knowingly and voluntarily entering into this Amended Agreement.

 

8.          Governing
Law. This Amended Agreement shall be interpreted, construed and governed according to the laws of the State of North Carolina.
For any claims for relief which are excepted from the arbitration provision as set out above, the Parties submit to the service
and exclusive personal jurisdiction of the federal or state courts of Charlotte, North Carolina and irrevocably waive all defenses
inconsistent with the terms of this Section.

 

9.          Fees
And Costs. If either Party initiates any action or proceeding (whether by arbitration or court proceeding) to enforce any
of its rights hereunder or to seek damages for any violation hereof, then, the Parties shall bear their respective costs and expenses
of any such action or proceeding; provided, that, in addition to all other remedies that may be granted, the prevailing Party shall
be entitled to recover its reasonable attorneys' fees and all other costs that it may sustain in connection with such action or
proceeding. If a dispute is arbitrated, all costs and fees of the arbitrator(s) shall be paid by the Company.

 

10.         Offset.
The Company shall have the right to offset against any sums payable to Employee, any amounts owing to the Company as a result of
expense account indebtedness, failure to return Company property, or other advances or debts due.

 

11.         Counterparts.
This Amended Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Execution and delivery by facsimile shall constitute good and valid execution
and delivery unless and until replaced or substituted by an original executed instrument.

 

12.         Interpretation.
The language used in this Amended Agreement shall not be construed in favor of or against either of the Parties, but shall be construed
as if both of the Parties prepared this Amended Agreement. The language used in this Amended Agreement shall be deemed to be the
language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any
such Party.

 

13.         Successors
and Assigns. This Amended Agreement shall inure to the benefit of and be binding upon the Company, its successors and assigns,
including, without limitation, any entity which may acquire all or substantially all of the Company's assets and business or into
which the Company may be consolidated or merged, and Employee, his heirs, executors, administrators and legal representatives.
Employee may not assign any of his obligations under this Amended Agreement.

 

14.         Compliance
with Section 409A of the Code. This Amended Agreement is intended to comply with, or otherwise be exempt from Section 409A
of the Code, and any regulations and Treasury guidance promulgated thereunder and all ambiguities shall be interpreted in a manner
consistent with such intent.

 

    	4

    	 

    

 

IN WITNESS WHEREOF,
each of the Parties has executed this Amended Agreement as of the date first above written.

 

	 	CAMPUS CREST COMMUNITIES, INC.
	 	 	 
	 	By: 	/s/ Donald L. Bobbitt, Jr.
	 	 	 
	 	Name:  Donald L. Bobbitt, Jr.
	 	 
	 	Title:  Chief Financial Officer
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	 /s/ Ted W. Rollins
	 	TED W. ROLLINS

 

    	5

    	 

    

 

Exhibit A

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”), is made and entered into as of the 19th day of October, 2010 (the “Effective
Date”), by and between Campus Crest Communities, Inc. (the “Company”), and Ted W. Rollins,
an individual (“Employee”) (the Company and Employee are hereinafter sometimes collectively referred to as the
“Parties”).

RECITALS

 

A.           The
Company desires to employ Employee as Chief Executive Officer of the Company on the terms and conditions hereinafter set forth.

 

B.           Employee
desires to accept such employment on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements of the Parties hereinafter set forth, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto, intending to be legally
bound, hereby agree as follows:

 

1.          Employment.
The Company hereby employs Employee as Chief Executive Officer of the Company, and Employee hereby accepts such employment, upon
the terms and conditions hereinafter set forth. Employee shall have such duties and authority as are customary for such position
and as shall from time to time be assigned to Employee by the Board of Directors (“Board”) of the Company in their
discretion. Employee shall faithfully and to the best of his ability fulfill such duties and shall devote his full business time,
attention, skill and efforts with undivided loyalty to the performance of such duties. Employee shall abide by all of the rules,
regulations and policies established or promulgated (whether communicated in writing, electronically or orally) by the Company
from time to time. Employee agrees that so long as he is an employee of the Company he shall not, without obtaining the express
prior approval in writing of the Board of the Company, engage in any employment, consulting activity or business other than for
the Company.

 

2.          Compensation
and Benefits. During his employment under this Agreement, Employee shall receive the compensation and benefits more particularly
described on Exhibit A attached hereto and made a part hereof. In the event the Company terminates the Incentive Compensation
Plan provided for in Exhibit A hereto, the Company shall establish a new plan or such other arrangement as shall be mutually
agreeable to the Company and Employee which shall provide Employee with substantially similar economic benefits to those provided
under the Incentive Compensation Plan. Furthermore, no amendment or modification to the Incentive Compensation Plan shall reduce
the benefits to be provided thereunder without the consent of Employee. Any payments referenced hereunder shall be subject to applicable
taxes and other withholdings.

 

    	A-1

    	 

    

 

3.          Termination.
This Agreement shall be for an initial term of three years, expiring on the third anniversary of the date hereof; provided, however,
it shall automatically renew for additional one year terms on each anniversary date hereof unless notice of termination is given
in writing at least 90 days prior to expiration of the initial term or the renewal term, as the case may be. The Company may terminate
this Agreement at any time for Cause or without Cause (as defined below). Employee may terminate this Agreement at any time with
or without Good Reason (as defined below) upon delivery to the Company of thirty (30) days written notice. Termination of this
Agreement shall terminate completely Employee’s employment with the Company, including, but not limited to, his role as an
officer. If Employee is serving as a member of the Company’s Board, Employee agrees to resign from the Board effective immediately
upon termination of this Agreement.

 

(A)         Termination
Date. The date which the Board of the Company designates as the termination date or, if Employee terminates this Agreement,
the date designated by Employee as stated in the written notice delivered to the Company, shall be referred to herein as the “Termination
Date.”

 

(B)         Payment
Upon Termination.

 

(i)          Termination
By Employee. In the event Employee terminates this Agreement, the Company shall be obligated to pay Employee that pro-rata
portion of his current semi-monthly Base Salary payment, as adjusted for any increase thereto, which is earned but unpaid as of
the Termination Date, any earned but unpaid incentive compensation, any accrued but unpaid paid time off (“PTO”)
due to him through the Termination Date and any unreimbursed expenses. Employee will not be entitled to, nor will he receive, any
type of severance payment, unless he has Good Reason, as defined below, to terminate this Agreement. If Employee has Good Reason
then he shall receive the severance outlined in subsection (B)(ii)(b) below addressing Termination by the Company without Cause,
subject to its requirements for receipt of such payment. If Employee terminates Employee’s employment pursuant to this subsection
(B)(i), then the Company, at its option, may require Employee to cease providing services during the thirty (30) day notice period
required therein; provided, however, for purposes of calculating payment upon termination under this Agreement, Employee shall
be treated as if he was employed during such thirty (30) day period. “Good Reason” shall mean (1) a material
involuntary reduction in Employee’s duties, authority, reporting responsibility or function by the Company, (2) a material
reduction in Employee’s compensation package other than as mutually agreed, (3) Employee’s involuntary relocation to
a principal place of work more than thirty (30) miles from Charlotte, North Carolina or (4) a material breach by the Company of
its obligations hereunder, provided that, upon the occurrence of any of these acts or omissions, Employee gives the Company notice
of his belief that he has Good Reason to terminate this Agreement and the Company fails to cure within thirty (30) business days
of receipt of Employee’s notice.

 

    	A-2

    	 

    

 

(ii)         Termination
By Company.

 

(a)          Cause.
The Company may terminate this Agreement for Cause effective immediately upon written notice to Employee
stating the facts constituting such Cause. If Employee is terminated for Cause, the Company shall be obligated to pay Employee
that pro-rata portion of his current semi-monthly Base Salary payment, as adjusted for any increase thereto, which is earned but
unpaid as of the Termination Date, any earned but unpaid incentive compensation, any accrued but unpaid PTO due to him through
the Termination Date and any unreimbursed expenses. Employee will not be entitled to, nor will he receive, any type of severance
payment. The term “Cause” shall mean: (1) Employee’s act of gross negligence or misconduct that has the
effect of injuring the business of the Company or its parent, subsidiaries or affiliates, taken as a whole, in any material respect,
(2) Employee’s conviction or plea of guilty or nolo contendere to the commission of a felony by Employee, (3) the
commission by Employee of an act of fraud or embezzlement against the Company, its parent, subsidiary or affiliates, or (4) Employee’s
willful breach of any material provision of this Agreement or that certain Confidentiality and Noncompetition Agreement between
Employee and the Company which shall be entered into contemporaneously with this Agreement (the “Confidentiality and Noncompetition
Agreement”).

 

(b)          Without
Cause. The Company may terminate this Agreement without Cause effective immediately upon notice to Employee. In the event the
Company terminates this Agreement without Cause, the Company shall pay to Employee in addition to the amounts under the first sentence
of Subsection B(i) above, a cash payment equal to two times the sum of: (i) Employee’s then current annual Base Salary,
as adjusted for any increase thereto and (ii) an amount equal to the bonus paid to Employee for the prior year (provided
that, if no incentive bonus was paid in the prior year the amount shall be 50% of the “target amount” as defined in
the Company’s Incentive Compensation Plan for the year in which notice is given). Any amounts payable under this subparagraph
shall be paid in equal monthly installments over a period of 24 months commencing no later than thirty (30) days following Employee’s
Termination Date, shall be subject to applicable withholdings. The
severance and bonus payments outlined in this Section are contingent on Employee fully complying with the terms of the Confidentiality
and Noncompetition Agreement signed contemporaneously herewith. If Employee fails to so comply, Employee agrees that the Company
has the right to cease making the payments described in this Section and that the Company is entitled to recover from Employee
any payments it has already made to Employee.

 

(iii)        Change
in Control.  In the event, within 24 months following a Change in Control of the Company: (A) Employee is terminated
without Cause by the Company, or (B) Employee terminates his employment for Good Reason, in lieu of the severance payment outlined
in (b) above, Employee will receive, in addition to the amounts under the first sentence of Subsection B(i) above,
a cash payment equal to three times the sum of: (i) Employee’s then current Base Salary, as adjusted for any increase thereto
and (ii) an amount equal to Employee’s previous year’s Incentive Compensation Plan payment. In the event Employee did
not receive an Incentive Compensation Plan payment the previous year, the incentive amount shall be 50% of the “target amount”
as defined in the Company’s Incentive Compensation Plan for the year in which termination occurs. Such amount shall be paid
in a lump sum within 60 days of the Termination Date subject to subsection 3(C) hereof. “Change in Control”
means “a change in the ownership of the corporation,” “a change in effective control of the corporation,”
or “a change in the ownership of a substantial portion of the assets of the corporation” within the meaning of Section 1.409A-3(i)(5)
of the Treasury Regulations. The payments to Employee outlined in this Section are contingent on Employee fully complying with
the terms of the Confidentiality and Noncompetition Agreement signed contemporaneously herewith. If Employee fails to so comply,
Employee agrees that the Company has the right to cease making the payments described in this Section and that the Company is entitled
to recover from Employee any payments it has already made to Employee.

 

    	A-3

    	 

    

 

In the event it shall
be determined that any payment or distribution to or for the benefit of Employee under this subsection (iii) or the acceleration
thereof (the "Triggering Payment") would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”), or any interest or penalties with respect to such excise tax
(collectively, such excise tax, together with any such interest or penalties, the "Excise Tax") (all such payments
and benefits, including any cash severance payments payable pursuant to any other plan, arrangement or agreement, hereinafter referred
to as the "Total Payments"), then, after taking into account any reduction in the Total Payments provided by reason
of Section 280G of the Code in such other plan, arrangement or agreement, the cash severance payments shall be reduced to the extent
necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (A) the net amount of such Total Payments,
as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and
after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments)
is greater than or equal to (B) the net amount of such Total Payments without such reduction (but after subtracting the net amount
of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which Employee would be subject
in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions
attributable to such unreduced Total Payments). All determinations required to be made under this subsection (iii) shall be
made in writing within ten (10) business days of the receipt of notice from Employee that there has been a Triggering Payment by
the independent accounting firm then retained by the Company in the ordinary course of business (which firm shall provide detailed
supporting calculations to the Company and Employee) and such determinations shall be final and binding on the Company and Employee.
Any fees incurred as a result of work performed by any independent accounting firm hereunder shall be paid by the Company.

 

(iv)        Vesting.
In the event of: (i) a termination by the Company without Cause, (ii) a termination by Employee for Good Reason, (iii) a Change
in Control, or (iv) the voluntary retirement of the Employee subsequent to reaching the age of 63, occurring prior to Employee
fully vesting in any options or restricted equity, then the vesting schedule shall be accelerated so that Employee will be deemed
fully vested with respect to such options or restricted equity.

 

(v)         Disability.
The Company may terminate Employee’s employment upon Employee’s total disability. Employee shall be deemed to be totally
disabled for purposes of this Agreement if he is unable to perform his essential job duties under
this Agreement by reason of a mental or physical illness or condition lasting for a period of 120 consecutive days or more, taking
into consideration any reasonable accommodations under the Americans with Disabilities Act, if applicable. The determination as
to whether Employee is totally disabled shall be made by a licensed physician selected by the Company. Whether Employee is entitled
to receive his Base Salary during the period he is unable to work prior to termination hereunder is contingent on other Company
policies and the amount of leave Employee has available to him under those policies. Upon termination by reason of Employee’s
disability, the Company’s sole and exclusive obligation will be to pay Employee that pro-rata portion of his current semi-monthly
Base Salary payment, as adjusted for any increase thereto, which is earned but unpaid as of the Termination Date, any earned but
unpaid bonus and any accrued but unpaid PTO due to him through the Termination Date.

 

    	A-4

    	 

    

 

(vi)        Death.
This Agreement shall terminate immediately and without any action on the part of the Company if Employee dies. In such an event,
Employee’s estate shall receive from the Company, in a single lump sum, an amount equal to (i) that pro-rata portion
of his current semi-monthly Base Salary payment, as adjusted for any increase thereto, which is earned but unpaid as of the date
of Employee’s death unless earlier terminated due to disability as set forth in subsection 3(B)(v) above and (ii) any bonus
compensation earned by Employee but unpaid prior to Employee’s death, plus other death benefits, if any, generally applicable
to the Company’s employees.

 

(C)         The
following rules shall apply with respect to the distribution of payments and benefits, if any, to be provided to Employee under
Section 3(B) of this Agreement, as applicable:

 

(i)          Notwithstanding
anything to the contrary contained herein, no payments shall be made to Employee upon Employee’s termination of employment
from the Company under this Agreement unless such termination of employment is a “separation from service” within the
meaning of Section 409A of the Code. For purposes of determining the timing of payments under this Section 3 only, “Termination
Date” shall be deemed to mean the date on which Employee experiences a “separation from service” within the meaning
of Section 409A of the Code.

 

(ii)         It
is intended that each installment of the payments and benefits provided under this Section 3(B)(ii)(b), if any, shall be treated
as a separate “payment” for purposes of Section 409A of the Code.

 

(iii)        Notwithstanding
anything herein to the contrary, in the event that Employee is deemed to be a "specified employee" for purposes of Section
409A(a)(2)(B)(i) of the Code, any payments to Employee hereunder that are subject to the provisions of Section 409A of the Code
shall not be made prior to the six-month anniversary of Employee’s Termination Date.  Thereafter, any payment that would
otherwise have been made during the six-month period beginning on Employee’s Termination Date will be paid, together with
interest at an annual rate (compounded monthly) equal to the federal short-term rate (as in effect under Section 1274(d) of the
Code on the termination date), to Employee immediately following such six-month anniversary and no later than thirty (30) days
following such anniversary.

 

4.          Release.
Employee agrees that payment by the Company of the amounts set out above (in the event of a termination by the Company Without
Cause, termination by Employee for Good Reason or due to a Change in Control) is contingent
upon Employee executing a mutual release, acceptable to the Company and Employee which shall recite that such payment is in full
and final settlement of any and all actions, causes of actions, suits, claims, demands and entitlements whatsoever which Employee
has or may have against the Company or which the Company may have against Employee, their respective affiliates and any of their
respective directors, officers, employees, shareholders, representatives, successors and assigns arising out of Employee’s
hiring, his employment and the termination of his employment or this Agreement.

 

    	A-5

    	 

    

 

5.          Expenses.
The Company shall reimburse Employee for all necessary and reasonable out-of-pocket travel and other business expenses incurred
by Employee, which relate to Employee’s duties hereunder, in accordance with the Company’s relevant policies in effect
from time to time.

 

6.          Survival
Of Certain Provisions. Any provisions hereof that, by their nature, would survive the termination hereof shall not be discharged
or dissolved upon, but shall survive the termination of the employment of Employee with the Company.

 

7.          Representations
And Warranties Of Employee. As of the date hereof and at all times during the term hereof, Employee represents and warrants
to the Company that (a) Employee has not entered into and is not bound by any agreement, understanding or restriction (including,
without limitation, any covenant restricting competition or solicitation or agreement relating to trade secrets or confidential
information) with any third party that in any way limits, restricts or would prevent the employment of him by the Company under
this Agreement or the full and complete performance by him of all his duties and obligations hereunder; and (b) the execution of
this Agreement by him and the employment of him by the Company under this Agreement will not result in, or constitute a breach
of, any term or condition of any other agreement, instrument, arrangement or understanding between him and any third party, or
constitute (or, with notice or lapse of time, or both, would constitute) a default, breach or violation of any such agreement,
instrument, arrangement or understanding, or which would accelerate the maturity of any duty or obligation of him thereunder.

 

8.          Indemnity.
Employee acknowledges that the Company has relied upon the representations contained in Section 7 hereof. Employee agrees
to indemnify and hold the Company, its directors, officers, employees, agents, representatives, affiliates, parent, subsidiary
and related companies, representatives and consultants and their insurers and attorneys harmless against any and all claims, liabilities,
losses, damages, costs, fees or expenses including, without limitation, reasonable legal fees and costs incurred by the Company,
its directors, officers, employees, agents, representatives, affiliates, parent, subsidiary and related companies, representatives
and consultants and their insurers by reason of an alleged violation by Employee of any of the representations contained in Section
7 hereof.

 

9.          Notices.
All notices and other communications under this Agreement shall be in writing and shall be deemed given upon receipt if delivered
personally, or when sent if mailed by registered or certified mail (return receipt requested) to the Parties at the following addresses
(or at such other address for a party as shall be specified by like notice):

 

		If to the Company	Campus Crest Communities, Inc.

2100 Rexford Road, Suite
414

Charlotte, NC 28211

Attention: Donald L.
Bobbitt, Jr.

 

    	A-6

    	 

    

 

		With copy to	Dawn H. Sharff, Esq.

Bradley Arant Boult
Cummings LLP

One Federal Place

1819 Fifth Avenue
North

Birmingham, AL
35203

 

		If to Employee	Ted W. Rollins

416 Audubon Road

Greenville, SC
29609

 

10.         Enforceability
and Reformation; Severability. The Parties intend for all provisions of this Agreement to be enforced to the fullest extent
permitted by law. Accordingly, in the event that any provision or portion of this Agreement is held to be illegal, invalid or unenforceable,
in whole or in part, for any reason, under present or future law, such provision shall be severable and the remainder thereof shall
not be invalidated or rendered unenforceable or otherwise adversely affected. Without limiting the generality of the foregoing,
if a court or arbitrator should deem any provision of this Agreement to create a restriction that is unreasonable as to scope,
duration or geographical area, the Parties agree that the provisions of this Agreement shall be enforceable in such scope, for
such duration and in such geographic area as such court or arbitrator may determine to be reasonable.

 

11.         Benefit.
The rights, obligations and interests of Employee hereunder may not be sold, assigned, transferred, pledged or hypothecated. Employee
shall have no right to commute, encumber or dispose of the right to receive payments hereunder, which payments and the right thereto
are non-assignable and non-transferable, and any attempted assignment or transfer shall be null and void and without effect. This
Agreement and its obligations shall inure to the benefit of and be binding and enforceable by the successors and assigns of the
Company, including, without limitation, any purchaser of the Company, regardless of whether such purchase takes the form of a merger,
a purchase of all or substantially all of the Company’s assets or a purchase of a majority of the outstanding capital stock
of the Company.

 

12.         Dispute
Resolution. All controversies, claims, issues and other disputes (collectively, “Disputes”) arising out
of or relating to this Agreement or Employee’s employment hereunder shall be subject to the applicable provisions of this
Section.

 

(A)         Arbitration.
Except for actions seeking relief for violations of the Confidentiality and Noncompetition Agreement, all Disputes shall be settled
exclusively by final and binding arbitration in Charlotte, North Carolina, before a neutral arbitrator in an arbitration proceeding
administered by the American Arbitration Association (“AAA”) according to the National Rules for the Resolution
of Employment Disputes of AAA or, alternatively, upon mutual agreement, to an arbitrator selected by Employee and the Company.
Any dispute regarding whether a Dispute is subject to arbitration shall be resolved by arbitration.

 

    	A-7

    	 

    

 

(B)         Interstate
Commerce. The Parties hereto acknowledge that (i) they have read and understood the provisions of this Section regarding arbitration
and (ii) performance of this Agreement will be in interstate commerce as that term is used in the Federal Arbitration Act, 9 U.S.C.
§ 1 et seq., and the parties contemplate substantial interstate activity in the performance of this Agreement including,
without limitation, interstate travel, the use of interstate phone lines, the use of the U.S. mail services and other interstate
courier services.

 

(C)         Waiver
of Jury Trial. If any Dispute is not arbitrated for any reason, the Parties desire to avoid the time and expense relating to
a jury trial of such Dispute. Accordingly, the Parties, for themselves and their successors and assigns, hereby waive trial by
jury of any Dispute. The Parties acknowledge that this waiver is knowingly, freely, and voluntarily given, is desired by all Parties
and is in the best interests of all Parties.

 

13.         Amendment.
This Agreement may not be amended, modified or changed, in whole or in part, except by a written instrument signed by a duly authorized
officer of the Company and by Employee.

 

14.         Waiver.
No failure or delay by either of the Parties in exercising any right, power, or privilege under this Agreement shall operate as
a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power, or privilege.

 

15.         Access
To Counsel. Employee acknowledges that he has had full opportunity to review this Agreement and has had access to independent
legal counsel of his choice to the extent deemed necessary to interpret the legal effect hereof.

 

16.         Governing
Law. This Agreement shall be interpreted, construed and governed according to the laws of the State of North Carolina. For
any claims for relief which are excepted from the arbitration provision as set out above, the Parties submit to the service and
exclusive personal jurisdiction of the federal or state courts of Charlotte, North Carolina and irrevocably waive all defenses
inconsistent with the terms of this Section.

 

17.         Fees
And Costs. If either Party initiates any action or proceeding (whether by arbitration or court proceeding) to enforce any of
its rights hereunder or to seek damages for any violation hereof, then, the Parties shall bear their respective costs and expenses
of any such action or proceeding; provided, that, in addition to all other remedies that may be granted, the prevailing
Party shall be entitled to recover its reasonable attorneys’ fees and all other costs that it may sustain in connection with
such action or proceeding. If a dispute is arbitrated, all costs and fees of the arbitrator(s) shall be paid by the Company.

 

18.         Offset.
The Company shall have the right to offset against any sums payable to Employee, any amounts owing to the Company as a result of
expense account indebtedness, failure to return Company property, or other advances or debts due.

 

19.         Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Execution and delivery by facsimile shall constitute good and valid execution and
delivery unless and until replaced or substituted by an original executed instrument.

 

    	A-8

    	 

    

 

20.         Interpretation.
The language used in this Agreement shall not be construed in favor of or against either of the Parties, but shall be construed
as if both of the Parties prepared this Agreement. The language used in this Agreement shall be deemed to be the language chosen
by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any such Party.

 

21.         Execution
of Further Documents. The Parties covenant and agree that they shall, from time to time and at all times, do all such further
acts and execute and deliver all such further documents and assurances as shall be reasonably required in order to fully perform
and carry out the terms of this Agreement.

 

22.         Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company, its successors and assigns, including,
without limitation, any entity which may acquire all or substantially all of the Company’s assets and business or into which
the Company may be consolidated or merged, and Employee, his heirs, executors, administrators and legal representatives. Employee
may not assign any of his obligations under this Agreement.

 

23.         Entire
Agreement. This Agreement and the Exhibit attached hereto represent the entire understanding and agreement between the Parties
with respect to the subject matter hereof and shall supersede any prior agreements and understanding between the Parties with respect
to that subject matter.

 

24.         Compliance
with Section 409A of the Code. This Agreement is intended to comply with, or otherwise be exempt from Section 409A of the Code,
and any regulations and Treasury guidance promulgated thereunder and all ambiguities shall be interpreted in a manner consistent
with such intent.

 

IN WITNESS WHEREOF,
each of the Parties has executed this Agreement as of the date first above written.

 

	 	CAMPUS CREST COMMUNITIES, INC.
	 	 	 
	 	By:	                       
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	 	 
	 	TED W. ROLLINS

 

    	A-9

    	 

    

 

Exhibit A – Employment Agreement
with Ted W. Rollins

 

Compensation and Benefits

 

(A)         Employee’s
employment with the Company shall become effective on October ___, 2010. On the date Employee’s employment commences,
unless voted otherwise by the Company’s Board of Directors, Employee will be granted a seat on the Company’s Board
of Directors.

 

(B)         Employee
shall receive a base salary of $300,000 per year, which will increase to $360,000 per year effective on January 1, 2012 (as such
base salary may hereafter from time to time be adjusted as provided herein, the “Base Salary”). Thereafter,
Employee’s Base Salary shall be reviewed annually by the Company’s Compensation Committee and the Board of the Company
and may be adjusted upward in its sole discretion. The Base Salary shall be paid during the period of employment, by direct deposit
according to the Company’s current standard pay practice of 26 pay periods per year (semi-monthly) or in accordance with
the Company’s relevant policies and practices in effect from time to time, including normal payroll practices, and shall
be subject to all applicable employment and withholding taxes.

 

(C)         In
addition to the Base Salary, Employee is eligible to participate in the Company’s Incentive Compensation Plan (the “Plan”)
with a target potential bonus equal to fifty percent (50%) of his Base Salary, with the potential to achieve one hundred percent
(100%) of Base Salary if stretch performance targets are achieved. This plan shall be approved annually by the Compensation Committee
and approved by the Board of the Company. Employee’s eligibility for or entitlement to any payments under the Plan shall
be subject to the terms of the Plan.

 

(D)         In
accordance with its terms, Employee is eligible to participate in the Company’s Equity Incentive Compensation Plan (the “EICP”).
The Employee will receive a grant of 99,078 shares of restricted common stock of the Company on January 1, 2012 and a grant of
99,078 shares of restricted common stock of the Company on January 1, 2013, which grants of shares will vest ratably on each of
the first, second and third anniversaries of the date of grant. Employee's rights and entitlements with respect to any such benefits
shall be subject to the provisions of the EICP, which Employee acknowledges.

 

(E)         Employee
shall receive a car allowance of $1,000 per month.

 

    	A-10

    	 

    

 

(F)         Subject
to, and in accordance with, their terms, Employee shall be entitled to participate in any plans, insurance policies or contracts
maintained by the Company relating to retirement, health, disability, vacation, auto, and other related benefits. These currently
include health, dental and life insurance, and 401K. Employee is eligible to accrue compensated business days of PTO each year,
initially accruing at the rate of one and 83/1000ths (1.083) days per month of service, beginning with the completion of Employee’s
first month of service. After the completion of Employee’s first year of employment, for each additional year employed thereafter,
Employee shall accrue one additional day of PTO. By way of example only, Employee shall accrue PTO at a rate of one and 167/1000ths
(1.167) days per month beginning the first day of his second year of employment. PTO is accrued on a calendar year basis with a
total maximum accrual of twenty-one (21) days per year. Up to five (5) days of unused PTO may be carried over from one year to
the following year, but carried-over PTO must be used within the year following its accrual. Upon Employee’s termination
from the Company, current year accrued but unused PTO will be considered for payment to Employee, but carried-over PTO will not
be paid to Employee. PTO generally may not be used in advance of its accrual, but any unaccrued but used PTO will be considered
an advance and will be deducted from Employee’s final paycheck upon termination. Employee is also eligible for eight (8)
paid holidays per year as designated by the Company. Employee’s rights and entitlements with respect to any such benefits
shall be subject to the provisions of the relevant plans, contracts or policies providing such benefits. Nothing contained herein
or in any employment offer shall be deemed to impose any obligation on the Company to maintain or adopt any such plans, policies
or contracts or to limit the Company’s right to modify or eliminate such plans, policies or contracts in its sole discretion.

 

(G)         Employee
hereby acknowledges and agrees that, except as set forth in this Exhibit, he shall not be entitled to receive any other compensation,
payments or benefits in connection with his employment under this Agreement.

 

    	A-11

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