Document:

EX-4.61

Exhibit 4.61
English Translation

Strategic Cooperation Agreement

THIS STRATEGIC COOPERATION AGREEMENT (“this Agreement”) is made and entered into by the parties
below in Beijing, the People’s Republic of China (“PRC”) on March 12, 2009:

Party A: Beijing Keying & CCTV Culture Development Co., Ltd.

Legal address: No.74 Xinjiekou North Street, Xicheng District, Beijing

Legal representative: Xue Jijun

Party B: Beijing Linghang Dongli Advertising Co., Ltd.

Registered address: B186, No.18 Jianshe Road, Kaixuan Street, Liangxiang, Fangshan District,
Beijing

Legal representative: Ma Rui

Party C: Beijing Science & Education Film Studio

Address: No.74 Xinjiekou North Street, Xicheng District, Beijing

Legal representative: Xue Jijun

WHEREAS:

	(1)	 	Party C is China’s largest science film and TV program production base, holds the licenses
concerning film and TV productions in accordance with law and has an extensive influence in
film and TV industry. It has rich film and TV content resources. It is a major film and TV
producer and one of China’s independent film and TV libraries;
	 
	(2)	 	Party A is directly subordinated to Party C and possesses a powerful TV program planning and
production capability. It is granted by Party C with the rights to use and operate Party C’s
existing film and TV library resources, and also has the right to engage in the market
operations of the aforementioned resources;
	 
	(3)	 	Party B is a limited liability company incorporated in Beijing, PRC in accordance with the
PRC Laws and a content production and integration operator undertaking diverse operations in
media industry.

Now, Party A, Party B and Party C, after voluntary negotiations, hold the common view that they are
highly complementary in terms of resources and business operations and hope to strengthen
cooperation. The parties hereto, abiding by the principles of mutual benefit and common
development, hereby enter into this Agreement with respect to cooperation, upon the terms and
subject to the conditions as set forth below:

Article 1 Definitions

The following words and expressions shall have the following meanings as ascribed to

 

 

them, unless otherwise provided herein or otherwise required by the context:

	1.1	 	“Joint Venture” means a limited liability company to be established by Party A and Party B,
whose registered capital will be RMB20,000,000.00 (RMB twenty million), in which Party A will
contribute RMB9,800,000 (RMB nine million eight hundred thousand), accounting for 49% of
registered capital, and Party B will contribute RMB10,200,000 (RMB ten million two hundred
thousand), accounting for 51% of registered capital.
	 
	1.2	 	“Keying Products” means the film, TV and other works whose copyrights and Use Rights are
owned by Party C during the Use Period, including, but not limited to, any or all of the
following: written works; oral works; musical, dramatic, quyi, choreographic and acrobatic
works; cinematographic works and works created by virtue of an analogous method of film
production; sound recording works; video recording works; works created by Party C by means of
compilation, adaptation, translation, annotation or arrangement of the foregoing.
	 
	1.3	 	“New Works” has the meaning as ascribed to it in Article 3.3 below.
	 
	1.4	 	“Use Rights” means the use rights to the Keying Products, including, but not limited to,
right of operation, right of reproduction, right of distribution, right of rental, right of
exhibition, right of display, right of broadcasting, right of network dissemination, right of
adaptation, right of translation and right of compilation, neighboring rights (including, but
not limited to, rights of performers, sound recording or video recording producers,
broadcasting or cable distribution organizations and book and periodical publishers due to
their transmission activities) as well as right of use of other copyright-related interests in
connection with the Keying Products.
	 
	1.5	 	“Keying and CCTV Science & Education Program Production Center Names” means any trademark,
trade name, service mark and trade dress relating to Party C and CCTV Science & Education
Program Production Center or comprising of the words, marks or patterns of “Keying”, “CCTV
Science & Education Program Production Center” and “SAC” as well as all the goodwill
associated with trademarks, trade names, company names, business names, logos, brand names,
service marks, trade dresses and the foregoing. A name only related to Party C shall be
“Keying Name” and a name only related to CCTV Science & Education Program Production Center
shall be “CCTV Science & Education Program Production Center Name”.
	 
	1.6	 	“Production Activity” has the meaning as ascribed to it in Article 5.1 below.
	 
	1.7	 	“Use Period” means the period during which the Joint Venture is entitled to all the
contractual rights under this Agreement and the annexes hereto.
	 
	1.8	 	“Territory” means all the territories in which the Joint Venture is entitled to the rights
under this Agreement and the annexes hereto, but subject to the scope as determined in the
approval document issued by any administration authority in accordance with the stipulations
of laws or policies if the works of the Joint Venture in connection with Party A or Party C
are distributed outside of the PRC.

 

 

	1.9	 	“Person” means any natural person, corporation, company, association, partnership,
organization, business, joint venture, trust, non-corporate or other entity or organization,
including any government authority.
	 
	1.10	 	“Third Party” means any person other than the parties to this Agreement.
	 
	1.11	 	“Government Approval” means any approval, reply, consent, filing certificate, permit or
license made or issued by any national, provincial or local government, administrative or
judicial authority of the PRC or any agency or instrumentality thereof authorized to
administrative or judicial rights.
	 
	1.12	 	“PRC Law” means any and all publicly available laws, regulations, ordinances, rules and
regulatory documents enacted by the PRC Government or legislative bodies or other supervisory
agencies, including amendments or supplements thereto or interpretations thereof.

Article 2 Establishment of Joint Venture

	2.1	 	Party A and Party B agree to jointly set up a Joint Venture within [ ] working days after
signing of this Agreement. The proposed name of the Joint Venture is Beijing Xinhua & CCTV
Culture Media Co., Ltd./Beijing CCTV & Xinhua Culture Media Co., Ltd. (finally subject to the
name approved by and registered with the industry and commerce administration). Its registered
capital will be RMB20,000,000.00 (RMB twenty million), in which Party A will contribute
RMB9,800,000 (RMB nine million eight hundred thousand), accounting for 49% of registered
capital, and Party B will contribute RMB10,200,000 (RMB ten million two hundred thousand),
accounting for 51% of registered capital.
	 
	2.2	 	The business scope of the Joint Venture shall include: production and distribution of TV
programs, production and distribution of AV products, shooting of films and TV programs and
advertising operation. Party A and Party C shall do their best to assist the Joint Venture in
obtaining the Government Approvals required for such business operations. Party A and Party B
shall do their best to set up the Joint Venture as promptly as possible. If the
above-mentioned business scope of the Joint Venture requires special Government Approvals and
as a result thereof, the Joint Venture’s operations may be delayed, the Joint Venture may be
set up as promptly as possible by adopting other suitable business scope, and its business
scope shall be changed to the above scope or the scope similar thereto as quickly as possible
after its establishment. The parties agree that during the period when the Joint Venture has
not obtained relevant qualification as stated above, the Joint Venture may cooperate with
Party A or Party B or any affiliate with appropriate qualification of Party A or Party B and
license part of the rights hereunder to the necessary extent to such company for the purpose
of operations.
	 
	2.3	 	Party A and Party B agree that within 1st-5th years following the
establishment of the Joint Venture, Party A will be entitled to dividends of 40% of the total
operating profits of the Joint Venture and Party B will be entitled to dividends of 60% of the
total operating profits; during 6th-10th years, Party A will be entitled
to dividends of 45% of

 

 

	 	 	the total operating profits of the Joint Venture and Party B will be entitled to dividends of
55% of the total operating profits; from the 11th year and on, Party A will be
entitled to dividends of 49% of the total operating profits of the Joint Venture and Party B
will be entitled to dividends of 51% of the total operating profits.
	 
	2.4	 	The Joint Venture shall have its general meeting of shareholders. Shareholders shall exercise
their shareholder rights in accordance with the Company Law of the PRC or the Joint Venture’s
Articles of Association. But Joint Venture’s major issues, such as amendment of the Articles
of Association, increase or decrease of registered capital, merger, division, dissolution,
change of form of organization and project investment exceeding RMB one million
(RMB1,000,000), must be approved by the shareholders representing above 2/3 voting rights.
	 
	2.5	 	The Joint Venture shall have its board of directors. The board of directors shall be composed
of five directors, among whom 2 ones are to be appointed by Party A and 3 to be appointed by
Party B. The Board Chairman shall be elected from the directors appointed by Party A. General
Manager of the Joint Venture shall be nominated by Party B and appointed by the Board of
Directors. Chief Financial Officer shall be appointed by Party B, cashier shall be appointed
by Party A and supervisor shall be appointed by Party A. Legal representative shall be elected
from the persons nominated or appointed by Party B.
	 
	2.6	 	When the Board of Directors of the Joint Venture exercises voting rights or makes board
decisions, general issues (including daily issues) shall be subject to the consent of above
1/2 of directors; the major issues as specified in the Articles of Association of the Joint
Venture or the project investment exceeding RMB one million (RMB1,000,000) shall be subject to
the consent of above 2/3 (2/3 excluded) of directors.
	 
	2.7	 	The operating term of the Joint Venture shall be fifty (50) years, finally subject to that as
indicated in approval or filing document issued by the industry and commerce administration.
	 
	2.8	 	The Parties agree that Party A and Party B shall sign the Joint Venture’s Articles of
Association in both substance and form as stated in Annex 1.

Article 3 Keying Products and their Use Rights

	3.1	 	Party A undertakes and Party C acknowledges that Party A has been granted by Party C a
license to use the Use Rights of the Keying Products up to the signing date of this Agreement
and the list of the pre-existing Keying Products at the signing of this Agreement is given in
Annex 2 attached hereto. Furthermore, Party C acknowledges that it has licensed to Party A the
Use Rights over any Keying Product obtained by Party C during the Use Period.
	 
	3.2	 	Party A agrees, after the Joint Venture’s establishment, to license to the Joint Venture the
above Use Rights over all the Keying Products obtained by Party C during the Use Period, which
can be used by the Joint Venture in the Territory during the Use

 

 

	 	 	Period. Party C acknowledges that after its establishment, the Joint Venture is entitled to use
in the Territory and within the Use Period all the Use Rights over all the Keying Products
obtained by Party C during the Use Period.
	 
	3.3	 	Within the Use Period, the Joint Venture may use all or any portion of Keying Products or of
any single Keying Product in the Territory and create new works by means of adaptation,
translation, annotation and arrangement of all or any portion of Keying Products or of any
single Keying Product or develop derivative works based on the Keying Products (hereinafter
collectively referred to as “New Works”). If the materials or contents used by the New Works
do not exceed 60% of the Keying Products, then the Joint Venture is entitled to the copyright
of the New Works and also the complete right of earning. If the materials or contents used by
the New Works exceed 60% of the Keying Products, then the copyright shall be owned by Party A
or Party C, but the Joint Venture shall have the exclusive Use Rights, right of operation and
right of earning over the New Works.
	 
	3.4	 	The Parties acknowledge that Party B and any affiliate designated by Party B are entitled to
apply the Use Rights of Keying Products to Shaanxi Satellite TV platform without paying any
consideration within five (5) years following Joint Venture’s establishment.

Article 4 Use Rights of Keying and CCTV Science & Education Program Production Center

	4.1	 	Party C undertakes that within the Use Period, in the cooperation concerning the Joint
Venture’s involvement in Party C’s project, Keying Name may be used for the production,
operation and other aspects of such cooperation project.
	 
	4.2	 	Party A and Party C undertake that within the Use Period, if the Joint Venture is directly
involved in the project or film or TV works of CCTV Science & Education Program Production
Center, CCTV Science & Education Program Production Center Name may be used for the
production, operation and other aspects of such cooperation project or film or TV works.
	 
	4.3	 	If Party C agrees to participate in the joint production of Joint Venture’s project, Party C
shall issue a document authorizing Keying Name or CCTV Science & Education Program Production
Center Name to be used for the project.

Article 5 Right of Cooperation in Film & TV Production and Marketing Assistance

	5.1	 	Party C and Party A confirm that they hold at the signing of this Agreement and guarantee to
maintain within the Use Period all the necessary Government Approvals required for the
shooting, production and distribution of TV plays, films, animations or other broadcast and TV
programs or film and TV programs (“Production Activities”).
	 
	5.2	 	As for all the Production Activities of Party C or Party A soliciting the partners from the
society, if the Joint Venture puts forth the intent of cooperation, within the Use Period, the
Joint Venture shall have the right of priority over others under the same

 

 

	 	 	conditions to participate in cooperation and obtain proceeds in the way as specified by the PRC
Laws.
	 
	5.3	 	Within the operating term of the Joint Venture, if the Joint Venture intends to cooperate
with Party C or Party A in the Production Activities, it shall give written notice to Party C
or Party A and upon written consent of Party C or Party A, may participate in the Production
Activities of Party A or Party C.
	 
	5.4	 	Party C and Party A agree to do their best to assist the Joint Venture in applying for the
Government Approvals required for new production Activities.
	 
	5.5	 	Party C and Party A agree to offer marketing assistance for the Joint Venture. The Joint
Venture agrees to pay relevant fee pursuant to Article 6.1 (“Marketing Assistance Fee”).

Article 6 License Fee of Keying Products, Marketing Assistance Fee and Use Period

	6.1	 	In consideration of the licenses under Articles 3, 4 and 5 and the undertakings made by Party
A and Party C, the Joint Venture shall pay license fee and Marketing Assistance Fee of
RMB17,800,000 (RMB seventeen million eight hundred thousand) in total to Party A and Party C,
in which RMB9,800,000 (RMB nine million eight hundred thousand) shall be paid to Party A and
RMB8,000,000 (RMB eight million) shall be paid to Party B. Method of payment is to be agreed
by the parties.
	 
	6.2	 	The Parties agree that the Joint Venture will, free of charge and as per Party B’s
instructions, provide the TV play or TV program (as instructed by Party B) produced with a
production fee of RMB2,200,000 (RMB two million two hundred thousand) to Shaaxi TV or other TV
institution designated by Party B for broadcasting purpose. The copyright of such TV play or
TV program shall be owned by the Joint Venture. The Use Rights, right of operation and right
of earning other than the broadcasting rights owned by the TV institution designated by Party
B shall be owned by the Joint Venture.
	 
	6.3	 	As for the license fee stated under Article 6.1, Party A and Party C shall notify the Joint
Venture in writing of the bank accounts designated by them five (5) working days in advance.
	 
	6.4	 	The Use Period of all the licenses granted to the Joint Venture under this Agreement is
twenty (20) years, counted from the date of establishment of the Joint Venture.
	 
	6.5	 	Immediately after the Joint Venture’s establishment, Party A and Party B shall supervise and
urge the Joint Venture to issue a written letter of consent to the parties hereto to confirm
and accept all the rights and obligations for the Joint Venture under this Agreement.
	 
	6.6	 	The Parties agree that as from the date of issue of the written letter of consent, the Joint
Venture is deemed as if it is a party to this Agreement, enjoys all its rights hereunder and
undertakes all its obligations hereunder.

 

 

Article 7 Representations and Warranties

	7.1	 	Party A and Party C hereby represent and warrant that:
	 
	7.1.1	 	Party A and Party C have the power and authority to execute and perform this Agreement and
there are no conflicts with any representations, statements, undertakings or warranties made
by them to other third parties.
	 
	7.1.2	 	The execution and performance by Party A or Party C of this Agreement do not violate its
articles of association or the contracts and all other legal instruments to which it is a
party and by which it is bound.
	 
	7.1.3	 	Party A and Party C have lawfully obtained the Use Rights and operation rights of the Keying
Products, which are free of any claim of infringement or threatened infringement made by any
third party.
	 
	7.2	 	Party B hereby represents and warrants that:
	 
	7.2.1	 	Party B has the power and authority to execute and perform this Agreement and there are no
conflicts with any representations, statements, undertakings or warranties made by it to other
third parties.
	 
	7.2.2	 	The execution and performance by Party B of this Agreement do not violate its articles of
association or the contracts and all other legal instruments to which it is a party and by
which it is bound.
	 
	7.2.3	 	Party B guarantees to pay the fees to Party A and Party C in time.

Article 8 Confidentiality

The parties hereto agree and acknowledge that any and all oral or written information exchanged
among them in connection with this Agreement is of a confidential nature. Any party shall keep all
such information confidential and shall not disclose any such information to any third party
without the prior written consent of the other party, but the above confidentiality obligation
shall not apply to the information which: (a) is or becomes or publicly available (through no fault
of the recipient); (b) is disclosed under requirement of applicable laws or stock exchange’s rules
or regulations; or (c) is disclosed by any party to its legal or financial consultant with respect
to the transaction contemplated by this Agreement, which shall be bound by a confidentiality
liability similar hereto. Any breach of confidentiality obligation by any of the personnel of any
party or by any institution engaged by such party shall be deemed as a breach hereof by such party,
and such party shall undertake the defaulting liability hereunder.

Article 9 Defaulting Liability

Where any party defaults under the provisions of this Agreement for any cause not constituting
force majeure, thus resulting in losses to the other party, the non-defaulting party is entitled to
claim its losses thus incurred against the defaulting party.

Force majeure means any objective circumstance that is unforeseeable, unavoidable and
insurmountable, mainly including the following categories: (1) natural disasters, e.g.

 

 

typhoon, flood and hailstorm; (2) government acts; (3) social abnormal events, e.g. war, etc.

Article 10 Dispute Resolution

In the event that during the performance of this Agreement, any party hereto has any objection with
respect to the provisions of this Agreement, the parties shall resolve such objection by
consultation. If no agreement can be reached by consultation, any party may refer such objection to
the Beijing Arbitration Commission for arbitration in accordance with its arbitration rules then in
effect. The arbitral proceedings shall be conducted in English. The arbitral award shall be final
and binding upon the parties hereto.

Article 11 Miscellaneous

	11.1	 	This Agreement shall become effective immediately upon signing by the parties hereto under
their respective corporate seals. This Agreement constitutes the entire understanding among
the Parties with respect to the subject matter hereof and supersedes all prior warranties,
understandings, contracts or other oral or written undertakings among them.
	 
	11.2	 	This Agreement shall be governed by and interpreted in accordance with the PRC Laws.
	 
	11.3	 	This Agreement is executed in four (4) copies, with each of the parties hereto holding one
(1) copy and the Joint Venture (after its establishment) holding one (1) copy. All the copies
thereof shall have the same legal effect.

IN WITNESS WHEREOF, Party A, Party B and Party C have executed this Agreement under their
respective corporate seals and by the hands of their respective representatives as of the day first
above written.

(No text below)

 

 

Signature Page

	 	 	 	 	 
	Party A: Beijing Keying & CCTV Culture Development Co., Ltd. (corporate seal)

	  
	        /s/	 	 
	Authorized representative (signature)	 	 
	  
	  
	  
	Party B: Beijing Linghang Dongli Advertising Co., Ltd. (corporate seal)

	  
	        /s/	 	 
	Authorized representative (signature)	 	 
	  
	  
	  
	Party C: Beijing Science & Education Film Studio (corporate seal)

	  
	        /s/	 	 
	Authorized representative (signature)a5952468ex10-1.htm

    Exhibit
10.1

     

     

    CONSULTING
AGREEMENT

    

    THIS CONSULTING AGREEMENT ("Agreement")
is made this 8th day
of April,   2009, by and between Brian Koos, whose address
is 27-139 CHS, 10833 Le Conte Avenue, Los Angeles, CA  90025-1740,
hereinafter referred to as "CONSULTANT", and Bio-Matrix Scientific Group, Inc. ,
whose principal place of business is 8885 Rehco Road, San Diego, California
92121, hereinafter referred to as "Company".

    

    WHEREAS,
the Company desires to engage CONSULTANT, as an independent contractor and not
as an employee, to provide services to the Company in accordance with the terms
and conditions of this Agreement

    

    WHEREAS,
CONSULTANT desires to provide services to the Company in accordance with the
terms and conditions of this Agreement

    

    THEREFORE,
it is agreed as follows:

    

    1. 
Term.  The term of this Agreement shall be for a period of five years
commencing on the date hereof (“Contract Period”) and thereafter shall be
renewable only by mutual written agreement of the parties.

    

    2. 
Liability. The CONSULTANT shall not be liable to the Company, or to anyone who
may claim any right due to any relationship with the Company, for any acts or
omissions in the performance of services on the part of the CONSULTANT except
when said acts or omissions of the CONSULTANT are due to willful misconduct or
gross negligence.  The Company shall indemnify, defend and hold the
CONSULTANT free and harmless from and against any and all liabilities, costs and
expenses (including reasonable attorneys’ fees) arising out of or in connection
with the services rendered to the Company by CONSULTANT (whether pursuant to the
terms of this Agreement or otherwise) or in any way relating to the Company's
operation of its business, except to the extent that the same shall result from
the willful misconduct or gross negligence of the CONSULTANT as determined by a
court or arbitrator of competent jurisdiction. The CONSULTANT shall promptly
notify the Company in writing of any such third party claim or suit and the
Company shall have the right to fully control the defense and settlement thereof
provided that any settlement shall include a general release of the CONSULTANT
and shall not include any admission of liability by the
CONSULTANT.  The Company agrees that during the Contract Period and
for a period of five years thereafter, it will maintain clinical trials
insurance (if the Company directly or indirectly conducts clinical trials
involving the Technology, as defined below) and other liability insurance in
amounts consistent with best practices in the industry and will list the
CONSULTANT as an additional insured on all such insurance
policies.  The Company shall furnish the CONSULTANT with certificates
of insurance evidencing such coverage upon the CONSULTANT'S
request.

    

    IN NO
EVENT WILL CONSULTANT BE LIABLE TO COMPANY FOR ANY SPECIAL, INCIDENTAL,
INDIRECT, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND IN CONNECTION
WITH THIS AGREEMENT, EVEN IF CONSULTANT HAS BEEN INFORMED IN ADVANCE OF THE
POSSIBILITY OF SUCH DAMAGES.  WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, IN NO EVENT SHALL CONSULTANT’S LIABILITY TO COMPANY WITH RESPECT TO
ANY SERVICES PERFORMED UNDER THIS AGREEMENT EXCEED THE AMOUNT OF ALL CONSULTING
FEES OR OTHER COMPENSATION PAID TO CONSULTANT BY COMPANY IN CONNECTION WITH SUCH
SERVICES, AND CONSULTANT SHALL HAVE THE RIGHT, IN HIS SOLE DISCRETION, TO OFFSET
ANY SUCH LIABILITY BY RETURNING ANY STOCK COMPENSATION ISSUED HEREUNDER, AT ITS
FAIR MARKET VALUE MEASURED AS OF THE DATE OF GRANT.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
3. 
Representations and Warranties

    

    (a)
Company hereby represents and warrants to CONSULTANT as follows:

    

    (i)
Corporate Existence of Company. Company (a) is a corporation duly formed,
validly existing and in good standing under the laws of the State of
Delaware  and (b) has all requisite power and authority, and has all
governmental licenses, authorizations, consents and approvals necessary to
execute and deliver this Agreement and to consummate the transactions
contemplated by this Agreement.

    

    (ii) No
Conflicts. None of the execution, delivery and performance of this Agreement by
Company, nor the consummation of the transactions contemplated hereby (a)
constitutes or will constitute a violation of the organizational documents of
Company, (b) constitutes or will constitute a breach or violation of, or a
default (or an event which, with notice or lapse of time or both, would
constitute such a default) under, any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which Company is a party or
by which Company or any of its properties may be bound, (c) violates or will
violate any statute, law or regulation or any order, judgment, decree or
injunction of any court or governmental authority directed to Company or any of
its properties in a proceeding to which its property is or was a
party.

    

    (b)
CONSULTANT hereby represents and warrant to Company as follows:

    

    (i) No
Conflicts. Subject to Section 7 of this Agreement, none of the execution,
delivery and performance of this Agreement by CONSULTANT, or the consummation of
the transactions contemplated hereby and thereby (a) constitutes or will
constitute a breach or violation of, or a default (or an event which, with
notice or lapse of time or both, would constitute such a default) under, any
indenture, mortgage, deed of trust, loan agreement, lease or other agreement or
instrument to which  CONSULTANT is a party or by
which  CONSULTANT may be bound, or (b) violates or will violate any
statute, law or regulation or any order, judgment, decree or injunction of any
court or governmental authority directed to  CONSULTANT

    

    4. Scope
of Services. CONSULTANT shall perform the following tasks, as directed by the
Company’s Chief Executive Officer (“CEO”) and /or Board of Directors
(“Board”):

    

     

    
      (i)    Advise the
Company in determining specific studies and time-lines that are needed (a) to
establish the clinical usefulness of a Screening Test for Gestational Diabetes
(licensed by the Company from the Regents of the University of California
pursuant to that certain license agreement dated September 26, 2008 (the
"Screening Test") and (b) to create a new rapid analysis method for screening
large populations (collectively, the "Technology").

    

     

    
      (ii)   Serve on the
Company’s Medical Advisory Board ("MAB") in order to provide advice to the
Company regarding the Technology and other related technologies or approaches as
the Company may from time to time reasonably request.  The
Company  anticipates that the MAB shall meet at least four (4) times each
year, at times and locations to be determined by the Company in consultation
with MAB members.

    

     

    
      (iii)         
Advise the Company in:

    

    
 

    (a) the
design and completion of the specific studies that demonstrate the clinical
usefulness of the Screening Test. The parties anticipate that this will require
the Company, with the CONSULTANT'S advice, to 1) determine the screening values
for normal pregnant women in the first 20 weeks of pregnancy and establish the
potential usefulness of the Technology to detect gestational diabetes in early
pregnancy, and 2) complete a large prospective study that determines the value
of the Technology in identifying gestational diabetes in subpopulations that
include race/ethnicity, age, and gestational age; and

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (b)
establishing and validating a new method for rapid screening of large
populations.

    

    Notwithstanding
anything to the contrary set forth in this Agreement, the parties hereby
acknowledge and agree that (a) the CONSULTANT is subject to certain limitations
on the time he may devote to consulting pursuant to the relevant polices and
guidelines of the University of California, (b) the CONSULTANT shall not be
required to devote more than 100 hours per year to the rendering of services to
the Company under this Agreement or otherwise and (c) CONSULTANT is being
engaged on a non-exclusive basis and may render professional consulting services
to other clients, including, without limitation, clients who may compete with
the Company’s business.

    

    5. 
Consideration. As consideration for entering into this Agreement and performing
services hereunder, Company agrees that:

    

    CONSULTANT
shall be compensated in accordance with the following schedule:

    

    Upon
execution of this Agreement, CONSULTANT shall be granted Three Hundred
Twenty-Five Thousand (325,000) shares of the Company's common stock (the
"Shares").  CONSULTANT shall have full voting, dividend and other
rights with respect to all of the Shares from the date of grant, provided,
however, that  CONSULTANT agrees to the following restrictions on
transfer on the following number of Shares (“Share Restrictions”):

    

    (a)           50,000  of
the Shares (“50K Shares”) may not be sold, transferred, assigned, pledged or
 otherwise encumbered or disposed of by the CONSULTANT (“50K Transfer
Restriction”). In the event of completion of the tasks in Section 4(i) of this
Agreement on or before the fifth anniversary of this Agreement; the 50K Transfer
Restriction shall no longer apply to the 50K Shares as of the date of completion
of those tasks.  In the event that the tasks in Section 4(i) of this
Agreement are not completed by the fifth anniversary of this Agreement, the 50K
Shares shall be forfeited by the CONSULTANT, and ownership of the 50K
Shares transferred back to the Company.

    

    (b)           100,000
of the Shares (“100K Shares”) may not be sold, transferred, assigned,
pledged or  otherwise encumbered or disposed of by the CONSULTANT (“100K
Transfer Restriction”). In the event of completion of the tasks in Section
4(iii)(a) of this Agreement on or before the fifth anniversary of this
Agreement; the 100K Transfer Restriction shall no longer apply to the 100K
Shares as of the date of completion of those tasks.  In the event that the
tasks in Section 4(iii)(a) of this Agreement are not completed by the fifth
anniversary of this Agreement, the 100K Shares shall be forfeited by the
CONSULTANT, and ownership of the 100K Shares transferred back to the
Company.

    

    (c)           Another
100,000 of the Shares (“Second 100K Shares”) may not be sold, transferred,
assigned, pledged or  otherwise encumbered or disposed of by the CONSULTANT
(“Second 100K Transfer Restriction”). In the event of completion of the tasks in
Section 4(iii)(b) of this Agreement on or before the fifth anniversary of this
Agreement; the Second 100K Transfer Restriction shall no longer apply to
the Second 100K Shares as of the date of completion of those tasks.  In the
event that the tasks in Section 4(iii)(b) of this Agreement are not completed by
the fifth anniversary of this Agreement, the Second 100K Shares shall be
forfeited by the CONSULTANT, and ownership of the Second 100K Shares transferred
back to the Company.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    In the
event that, prior to the expiration of the Consulting Period, the Company
terminates this Agreement without cause, all of the Share Restrictions pursuant
to this Section 5 shall be null, void, and of no force and effect.

     

    CONSULTANT
understands that under section 83 of the Internal Revenue Code of 1986, as
amended (the “Code”), the fair market value of any Shares at the first time the
rights of the CONSULTANT’s beneficial interest in such Shares are transferable
or are not subject to a substantial risk of forfeiture, whichever occurs
earlier, will be reportable as ordinary income at that time. CONSULTANT
understands that he may elect to be taxed at the time the Shares are acquired
hereunder to the extent of the fair market value of the Shares as of the date of
grant rather than when such Shares cease to be subject to the abovementioned
restrictions by filing an election under section 83(b) of the Code with the
I.R.S. within thirty (30) days after the date of the granting of the Shares.
 CONSULTANT ACKNOWLEDGES THAT IT IS CONSULTANT’S SOLE RESPONSIBILITY, AND
NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b) OF THE
CODE. CONSULTANT
IS RELYING SOLELY ON HIS ADVISORS WITH RESPECT TO THE DECISION AS TO WHETHER OR
NOT TO FILE AN 83(b) ELECTION.

     

    CONSULTANT
represents that he has been made aware that any and all  Common Shares
of the Company to be  issued pursuant to this Agreement shall
not  be registered under the Securities Act of 1933, as amended, or
the Securities Laws of any State. Notwithstanding the foregoing, the parties
acknowledge that the capital stock of the Company is publicly traded and, for so
long as the Company is subject to the reporting requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), the Company hereby agrees
to make and keep public information available, as those terms are understood and
defined in Rule 144 under the Securities Act of 1933, as amended (the
"Securities Act"), at all times, and use reasonable, diligent efforts to file
with the U.S. Securities and Exchange Commission in a timely manner all reports
and other documents required of the Company under the Securities Act and the
Exchange Act.

     

    CONSULTANT
agrees that any securities to be issued pursuant to this Agreement shall contain
the following, or a substantially similar, restrictive legend:

    

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD,
ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT OR
SUCH LAWS  AND, IF REQUESTED BY THE COMPANY, UPON DELIVERY OF AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED
TRANSFER IS EXEMPT FROM THE ACT OR SUCH LAWS.

    

    6.
Expenses. The Company shall reimburse CONSULTANT for all expenses necessarily
and reasonably incurred by CONSULTANT in connection with the services rendered
hereunder and the business of the Company against presentation of proper
receipts or other proof of expenditure, and subject to such written guidelines
or limitations as are provided to CONSULTANT in advance by the CEO or the
Board.

    

    7.  Notwithstanding
anything to the contrary in this Agreement, the Company hereby acknowledges and
agrees that (a) CONSULTANT is an employee of the University of California with
pre-existing obligations to disclose and to assign patent rights to the Regents
consistent with the Patent Agreement, dated July 25, 1988, by and between the
CONSULTANT and the University of California, and the guidelines and policies of
the University of California in effect from time to time (collectively, the
“UCLA Patent Agreement”); (b) the obligations of the CONSULTANT under this
Agreement are subject and subordinate to all rights of and obligations to the
University of California under the UCLA Patent Agreement; (c) in the event of
any conflict between this Agreement and the UCLA Patent Agreement, the UCLA
Patent Agreement shall control; and (d) the CONSULTANT'S compliance with his
obligations under the UCLA Patent Agreement shall not be deemed a breach of this
Agreement.  Nothing in this Agreement shall apply to the University of
California, or impose any obligations or restrictions on the University of
California.  A copy of the UCLA Patent Agreement is attached to this
Agreement as Exhibit A and made a part hereof.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
8.
Termination.  Either party may terminate this Agreement at any time
without cause by giving the other party thirty (30) days prior written
notice.  In the event of any material breach of this Agreement that is
not cured within ten (10) days after receipt of written notice from the
non-breaching party, the non-breaching party may terminate this Agreement by
giving written notice to the breaching party.  Any liabilities accrued
through the date of termination shall survive termination.

    

    9.  Independent Contractor.  CONSULTANT
is an independent contractor and is not an agent or employee of, and has no
authority to bind, the Company by contract or otherwise.  CONSULTANT
will perform services hereunder under the general direction of Company, but
CONSULTANT will determine, in CONSULTANT'S sole discretion, the manner and means
by which such services are accomplished, subject to the requirement that
CONSULTANT shall at all times comply with applicable law.

    

    10.  Binding
Effect and Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and
assigns.

    

    (a)    This
Agreement shall not be assignable by Company, in whole or in part, without
CONSULTANT's prior consent in his sole discretion  except as
follows:

     

    The
Company may assign its rights to the services of the CONSULTANT pursuant to this
Agreement to Entest Biomedical, Inc., a California corporation which is
currently a wholly owned subsidiary of the Company, in its sole discretion
(“Entest Assignment”). In the event of an Entest Assignment, Share Restrictions
(as defined in Section 5) shall expire upon completion of the applicable tasks
specified in Section 5 of this Agreement completed on behalf of Entest
BioMedical, Inc. as if they were completed on behalf of the Company. In the
event that CONSULTANT is paid a dividend in kind of the securities of Entest
BioMedical, Inc. by the Company on Shares ( “Entest Dividend Shares” ), then the
CONSULTANT agrees that the Entest Dividend Shares will be subject to transfer
and forfeiture restrictions identical to and in the same proportion as the Share
Restrictions on the Shares described in Section 5 of this
Agreement.

    

    (b)    This
Agreement shall not be assignable by CONSULTANT, in whole or in part, without
Company's consent in its sole discretion.

    

    11. Entire
Agreement. This Agreement represents the full and complete agreement between the
parties with respect to the subject matter hereof and supersedes all previous
agreements between the parties with respect to the subject matter hereof. Any
supplemental amendments to this Agreement shall not be binding upon either party
unless executed in writing by the parties hereto.

    

    12.  Governing
Law.  This Agreement will be governed by and construed in accordance
with the laws of the State of California excluding that body of law pertaining
to conflict of laws.

    

    13.
Invalid by Operation of Law.  If any section or part of this Agreement
is held to be invalid by operation of law or by any tribunal of competent
jurisdiction, or if compliance with or enforcement of any section or part should
be restrained by such tribunal, the remainder of the Agreement shall not be
affected thereby and the parties shall enter into immediate negotiations for the
purpose of arriving at a mutually satisfactory replacement for such section or
part.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    14. 
Arbitration.  Any controversy or claim arising out of or relating to
this contract, or the breach thereof, shall be settled by arbitration in
accordance of the rules of the American Arbitration Association, and judgment
upon the award rendered by the arbitrator(s) shall be entered in any court
having jurisdiction thereof.  For that purpose, the parties hereto
consent to the non-exclusive jurisdiction and venue of an appropriate court
located in San Diego County, State of California.  In the event
that litigation results from or arises out of this Agreement or the performance
thereof, the parties agree to reimburse the prevailing party's reasonable
attorney's fees, court costs, and all other expenses, whether or not taxable by
the court as costs, in addition to any other relief to which the prevailing
party may be entitled.

    

    

    IN WITNESS
WHEREOF, the parties have hereunto executed this Agreement as of the date first
set forth above.

    

    

    Bio-Matrix
Scientific Group Inc.

    

    

    By:
/s/David R.
Koos                                                                           /s/Brian
Koos
____________________                                                                   __________________

    David R.
Koos                                                                     Brian
Koos, M.D.

    Chairman &
CEO                                                                Consultant

    

 

     

     

    12

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