Document:

Unassociated Document

    
      Exhibit
10.12

      

      ANNEX A

      

      EMPLOYMENT
AGREEMENT

      

      This
AGREEMENT (this “Agreement”) is made
and entered into as of the 29th day of January 2010, by and between Triangle
Petroleum Corporation, a Nevada corporation (the “Company”), and
Jonathan Samuels (“Employee”).

       

      W I T N E S S E T H :

      

      WHEREAS,
Employee has been employed by the Company as its Chief Financial Officer since
November 30th, 2009 (the “Effective Date”);
and

       

      WHEREAS,
the Company desires to enter into this Agreement embodying the terms of such
employment, and Employee desires to enter into this Agreement and to accept such
employment, subject to the terms and provisions of this Agreement.

       

      NOW,
THEREFORE, in consideration of the promises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are mutually acknowledged, the Company and Employee hereby
agree as follows:

       

      Section
1.                      Definitions.

       

      (a)           “Accrued Obligations”
shall mean (i) all accrued but unpaid Base Salary through the date of
termination of Employee’s employment, (ii) any unpaid or unreimbursed expenses
incurred in accordance with 0 below,
(iii) any benefits provided under the Company’s employee benefit plans upon a
termination of employment, in accordance with the terms contained therein, (iv)
reasonable relocation costs, to the extent unpaid or unreimbursed, and (v) any
allowance payable to Employee by the Company, in accordance with written Company
policy.

       

      (b)           “Agreement” shall have
the meaning set forth in the preamble hereto.

       

      (c)           
“Base Salary”
shall mean the salary provided for in 0 below or any increased salary granted to
Employee pursuant to 0.

       

      (d)           “Board” shall mean the
Board of Directors of the Company.

       

      (e)           “Cause” shall mean
(i) Employee’s act(s) of gross negligence or willful misconduct in the
course of Employee’s employment hereunder that is or could reasonably be
expected to be materially injurious to the Company or any other member of the
Company Group, (ii) willful failure or refusal by Employee to perform in
any material respect his duties or responsibilities, (iii) misappropriation
by Employee of any assets of the Company or any other member of the Company
Group, (iv) embezzlement or fraud committed by Employee, or at his
direction, (v) Employee’s conviction of, or pleading “guilty” or “ no
contest” to a felony under United States state or federal law. 

       

      (f)           “Change of Control”
shall mean the first to occur of any of the following:

       

      (i)           “change
of control event” within the meaning of Treas. Reg. 1.409A-3(i)(5);
or

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

       

      (ii)           
Any Person becomes the beneficial owner, directly or indirectly, of
securities of the Corporation representing fifty percent (50%) or more of
the combined voting power of the Corporation’s then outstanding securities;
or

       

      (iii)           During
any period of one (1) year, individuals who at the beginning of such period
constitute the Board (and any new Director whose election by the Corporation’s
stockholders was approved by a vote of at least two-thirds (2/3) of the
Directors then still in office who either were Directors at the beginning of the
period or whose election or nomination for election was so approved) cease for
any reason to constitute a majority thereof; or

       

      (iv)           (A)
The sale or disposition of all or substantially all the Corporation’s assets, or
(B) a merger, consolidation, or reorganization of the Corporation with or
involving any other entity, other than a merger, consolidation, or
reorganization that would result in the voting securities of the Corporation
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the combined voting power
of the securities of the Corporation (or such surviving entity) outstanding
immediately after such merger, consolidation, or reorganization.

       

      (g)            “Change of Control Severance
Term” shall mean the twenty-four (24) month period following Employee’s
termination pursuant to Section 8(g) below.

       

      (h)           “Code” shall mean the
Internal Revenue Code of 1986, as amended.

       

      (i)           “Common Shares” shall
mean all compensation awarded pursuant to Section 4(b) and Section 4(c)
below.

       

      (j)           “Company” shall have
the meaning set forth in the preamble hereto.

       

      (k)           “Company Group” shall
mean the Company together with any direct or indirect subsidiaries of the
Company.

       

      (l)           “Compensation
Committee” shall mean the Board or the committee of the Board designated
to make compensation decisions relating to senior executive officers of the
Company Group.

       

      (m)           “Competitive
Activities” shall mean any business activities in the same state or
geologic basin in which the Company or any other member of the Company Group
engages during the Term of Employment.

       

      (n)           
“Covered
Compensation” shall mean compensation paid or payable to Employee
pursuant to this Agreement as Base Salary, RSTI Award, STI Award, and any
allowances paid.

       

      (o)           “Disability” shall
mean any physical or mental disability or infirmity of the Employee that has
prevented the performance of Employee’s duties for a period of (i) ninety
(90) consecutive days or (ii) one hundred twenty (120) non-consecutive days
during any twelve (12) month period.  Any question as to the
existence, extent, or potentiality of Employee’s Disability upon which Employee
and the Company cannot agree shall be determined by a qualified, independent
physician selected by the Company and approved by Employee (which approval shall
not be unreasonably withheld).  The determination of any such
physician shall be final and conclusive for all purposes of this
Agreement.

       

      (p)           “Dispute” shall have
the meaning set forth in section 15 below.

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (q)           “Effective Date” shall
have the meaning set forth in the recitals above.

       

      (r)           “Employee” shall have
the meaning set forth in the preamble hereto.

       

      (s)           “Good Reason” shall
mean, without Employee’s consent, (i) a diminution in Employee’s title,
duties, or responsibilities, (ii) a reduction in the Covered Compensation,
(iii) the failure of the Company to pay any compensation hereunder when due or
to perform any other obligation of the Company hereunder, (iv) the
relocation of Employee’s principal place of employment to a country other than
the United States, or (v) failure of the Company to obtain a written agreement
from any successor or assign of the Company to assume the obligations of the
Company under this Agreement upon a Change of Control.

       

      (t)           
“Person” shall
mean any individual, corporation, partnership, limited liability company, joint
venture, association, joint-stock company, trust (charitable or non-charitable),
unincorporated organization, or other form of business entity.

       

      (u)           “Principal Place of
Employment” shall mean the Employee’s primary state of permanent
residence, currently the State of Florida, or any future state in which Employee
establishes residency in accordance with state law.

       

      (v)           “Release Expiration
Date” shall mean
the date that is twenty-one (21) days following the date upon which the Company
timely delivers Employee the release contemplated in Section 8(g) below, or in
the event that such termination of employment is “in connection with an exit
incentive or other employment termination program” (as such phrase is defined in
the Age Discrimination in Employment Act of 1967), the date that is forty-five
(45) days following such delivery date.

       

      (w)           “Restricted Period”
shall mean the period commencing on the Effective Date and extending to the nine
(9) month anniversary of Employee’s termination of employment for any
reason.

       

      (x)           “Restructuring STI
Award” shall have the meaning set forth in Section 4(c)(i)
below.

       

      (y)           “Severance Term” shall
mean the twelve (12) month period following Employee’s termination by the
Company without Cause (other than by reason of death or Disability) or by
Employee for Good Reason.

       

      (z)           
“STI Award”
shall have the meaning set forth in Section 4(c) below.

       

      (aa)           “Taxable Cost” shall
have the meaning set forth in 0 below.

       

      (bb)           “Term of Employment”
shall mean the period specified in 0 below.

       

      Section
2.                      Acceptance and Term of
Employment.

       

      The
Company agrees to employ Employee, and Employee agrees to serve the Company, on
the terms and conditions set forth herein.  The “Term of Employment”
shall mean the period commencing on the Effective Date and, unless terminated
sooner as provided in 0 hereof, continuing for a period of one (1) years from
the Effective Date; provided, however, that the Term of Employment shall be
extended automatically at the end of the initial one (1) year term for a one (1)
year term and thereafter for successive one (1) year terms if neither the
Company nor Employee has advised the other in writing in accordance with Section
19 at least ninety (90) days prior to the end of the then current term that such
term will not be extended for an additional one (1) year term.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

       

      Section
3.                      Position, Duties, and
Responsibilities; Place of Performance.

       

      (a)           During
the Term of Employment, Employee shall be employed and serve as the Chief
Financial Officer of the Company and shall have such duties and responsibilities
as are commensurate with such title.  The Employee shall report to the
Chief Executive Officer and shall carry out and perform all orders, directions
and policies given to him by the Board consistent with his position and
title.

       

      (b)           Employee
shall devote his best efforts to the performance of his duties under this
Agreement and shall not engage in any other business or occupation during the
Term of Employment that (x) interferes with Employee’s exercise of judgment in
the Company’s best interests.  Notwithstanding the foregoing, nothing
herein shall preclude Employee from (i) serving as a member of the boards
of directors or advisory boards (or their equivalents in the case of a
non-corporate entity) of non-competing businesses, (ii) engaging in
charitable activities and community affairs, and (iii) receiving
compensation for other
business
activities, including asset management and investment activities, which
do not constitute prohibited activities as set out in clause (x), (iv) from
managing his personal investments and affairs; provided, however, that the activities
set out in clauses (i), (ii), (iii), and (iv) shall be limited by Employee so as
not to materially interfere, individually or in the aggregate, with the
performance of his duties and responsibilities hereunder.

       

      Section
4.                      Compensation.  During
the Term of Employment, Employee shall be entitled to the following
compensation:

       

      (a)           Base
Salary.  Employee shall be paid an annualized Base Salary,
payable in accordance with the regular payroll practices of the Company, of not
less than USD $200,000, with increases, if any, as may be approved in writing by
the Compensation Committee.

       

      (b)           Initial Joining Stock
Award. Employee shall be granted an initial stock award of 1,550,000
shares upon joining.

       

      (i)           “Initial
Joining Stock Award” shall be granted to employee in one or more grants at a
future point in time mutually agreeable to both board and employee, although
award shall be granted on or before March 31st 2010. Future grants will be in
the form of restricted stock with a one year vesting period from date of issue,
but shall be net of option award dated 11/30/2009.

       

      (c)           Short-Term Incentive
Awards.  In his capacity as CFO of the Company, Employee shall
be eligible for an annual short-term incentive award determined by the
Compensation Committee in respect of each fiscal year (or partial fiscal year)
during the Term of Employment (the “STI Award”) in
accordance with this Section 4(c). The intended target “STI Award” shall be
up to 200%
of base salary, and shall be tied directly to performance.

       

      (i)           Employee
shall also be eligible to receive a one-time “Restructuring STI Award” (the
“RSTI Award”)
of 200% of base salary separate and independent of the STI Award. The RSTI Award
shall be made in the form of a grant of unrestricted stock on a shares for past
service basis, and shall be awarded upon satisfactory achievement of some or all
of the following short term goals, as determined in good faith by the
Compensation Committee, which are designed to recapitalize the company and
establish a new strategic direction in the best interests of
shareholders.

       

      
        	
                 
      

              	
                (A)

              	
                Find
      a strategic or financial partner for Windsor Block well, with board
      approved carry for TPLM.

              

      

       

      
        	
                 
      

              	
                (B)

              	
                Material
      acquisition of U.S. acreage in the Bakken or other play deemed a strategic
      priority by the board.

              

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

       

      
        	
                 
      

              	
                (C)

              	
                Completion
      of board approved restructuring/capital raise; sufficient for 2010
      development of core assets.

              

      

       

      
        	
                 
      

              	
                (D)

              	
                A
      50% increase in the 10-day average trailing share price, relative to the
      10-day average trailing share price as calculated on the date of execution
      of this Agreement.

              

      

       

      
        	
                 
      

              	
                (E)

              	
                Determination
      by board/compensation committee that overall performance of the Executive,
      including cost cutting, warrants full award of target RSTI
      Award.

              

      

       

      Section
5.                      Employee
Benefits.

       

      (a)           General.  During
the Term of Employment, Employee shall be entitled to participate in health
insurance, and other benefits provided to other senior executives of the
Company.

       

      (b)           Vacation and Time
Off.  During each calendar year of the Term of Employment,
Employee shall be eligible for twenty-five (25) days paid vacation, as well as
sick pay and other paid and unpaid time off in accordance with the policies and
practices of the Company.

       

      Section
6.                      Key-Man
Insurance.

       

      At any
time during the Term of Employment, the Company shall have the right to insure
the life of Employee for the sole benefit of the Company, in such amounts, and
with such terms, as it may determine.  All premiums payable thereon
shall be the obligation of the Company.  Employee shall have no
interest in any such policy, but agrees to cooperate with the Company in
procuring such insurance by submitting to physical examinations, supplying all
information required by the insurance company, and executing all necessary
documents, provided that no financial obligation is imposed on Employee by any
such documents.

       

      Section
7.                      Reimbursement of Business
Expenses.

       

      Employee
is authorized to incur reasonable business expenses in carrying out his duties
and responsibilities under this Agreement, and the Company shall promptly
reimburse him for all such reasonable business expenses, subject to
documentation in accordance with written Company policy, as in effect from time
to time.

       

      Section
8.                      Termination of
Employment.

       

      (a)           General.  The
Term of Employment shall terminate earlier than as provided in 0 hereof upon the
earliest to occur of (i) Employee’s death, (ii) a termination by
reason of a Disability, (iii) a termination by the Company with or without
Cause, and (iv) a termination by Employee with or without Good
Reason.  Notwithstanding anything herein to the contrary, the payment
(or commencement of a series of payments) hereunder shall occur within 15 days
of termination date. Termination Due to Death or
Disability.  Employee’s employment shall terminate
automatically upon his death.  The Company may terminate Employee’s
employment immediately upon the occurrence of a Disability, such termination to
be effective upon Employee’s receipt of written notice of such
termination.  In the event Employee’s employment is terminated due to
his death or Disability, Employee or his estate or his beneficiaries, as the
case may be, shall be entitled to:

       

      (i)           The
Accrued Obligations; and

       

      (ii)           Any
unpaid STI Award in
respect of any completed fiscal year that has ended prior to the date of
such termination, which amount shall be paid within sixty (60) days from the
date of such; and

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

       

      (iii)           
Any STI Award that would have been payable with respect to the year of
termination in the absence of the Employee’s death or Disability, pro-rated for
the period the Employee worked prior to his death or Disability;
and

       

      (iv)           Immediate
vesting of any and all Common Shares previously awarded to the Employee
irrespective of type of award; and

       

      (v)           The
rights to the same compensation and benefits as provided in Section 8(c) below,
in lieu of clauses (i) through (iv), if the termination of Employee’s employment
is by reason of death or Disability while the Employee is traveling on official
Company business.

       

      Following
such termination of Employee’s employment by reason of death or Disability,
except as set forth in this 0, Employee shall have no further rights to any
compensation or any other benefits under this Agreement.

       

      (b)           Termination by the Company
for Cause.

       

      (i)           The
Company may terminate Employee’s employment at any time for Cause, effective
upon Employee’s receipt of written notice of such termination; provided, however, that with respect to
any Cause of termination relying on clause (i) or (ii) of the definition of
Cause set forth in 0 hereof, to the extent such act or acts are curable,
Employee shall be given not less than twenty (20) days’ written notice by the
Board of the Company’s intention to terminate him for Cause, such notice to
state in detail the particular act or acts or failure or failures to act that
constitute the grounds on which the proposed termination for Cause is based, and
such termination shall be effective at the expiration of such twenty (20) day
notice period unless Employee has substantially cured such act or acts or
failure or failures to act that give rise to Cause during such
period.

       

      (ii)           In
the event the Company terminates Employee’s employment for Cause, he shall be
entitled only to the Accrued Obligations, and any previously awarded Common
Shares which are not vested as of the date of termination shall be
cancelled.  Following such termination of Employee’s employment for
Cause, except as set forth in this 0, Employee shall have no further rights to
any compensation or any other benefits under this Agreement.

       

      (c)           Termination by the Company
without Cause.  The Company may terminate Employee’s employment
at any time without Cause, effective upon Employee’s receipt of written notice
of such termination.  In the event Employee’s employment is terminated
by the Company without Cause (other than due to death or Disability), Employee
shall be entitled to:

       

      (i)           The
Accrued Obligations; and

       

      (ii)           Any
unpaid STI Award in respect of any completed fiscal year that has ended prior to
the date of such termination; and

       

      (iii)           The
target STI Award for the year in which termination occurs, pro-rated for the
period the Employee worked prior to such termination, which amount shall be paid
at such time STI Awards are paid to other senior executives of the Company, but
in no event later than one day prior to the date that is 2 1/2 months following
the last day of the fiscal year in which such termination occurs;
and

       

      (iv)           Immediate
vesting of any and all Common Shares previously awarded to the Employee
irrespective of type of award; and

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

       

      (v)           Continuation
of payment of Base Salary during the Severance Term, payable in accordance with
the Company’s regular payroll practices; and

       

      (vi)           Continuation,
during the Severance Term, of the health benefits provided to Employee and his
covered dependants under the Company’s health plans, it being understood and
agreed that the Company’s obligation to provide such continuation of benefits
shall terminate prior to the expiration of the Severance Term in the event that
Employee becomes eligible to receive any health benefits while employed by or
providing service to, in any capacity, any other business or entity during the
Severance Term; provided, however, that as a condition
of the Company’s providing the continuation of health benefits described herein,
the Company may require Employee to elect continuation coverage under
COBRA.  Notwithstanding the forgoing, if such health benefits are
provided to employees of the Company generally through a self-insured
arrangement, and Employee qualifies as a “highly compensated individual” (within
the meaning of Section 105(h) of the Code), (i) such continuation of
benefits shall be provided on a fully taxable basis, based on 100% of the
monthly premium cost of participation in the self-insured plan less any portion
required to be paid by Employee pursuant to clause (A) above (the “Taxable Cost”), and,
as such, Employee’s W-2 shall include the after-tax value of the Taxable Cost
for each month during the applicable benefit continuation period, and
(ii) on the last payroll date of each calendar month during which any
health benefits are provided pursuant to this 0, Employee shall receive an
additional payment, such that, after payment by the Employee of all federal,
state, local and employment taxes imposed on Employee as a result of the
inclusion of the portion of the Taxable Cost in income during such calendar
month, Employee retains (or has had paid to the Internal Revenue Service on his
behalf) an amount equal to such taxes as Employee is required to pay as a result
of the inclusion of the Taxable Cost in income during such calendar
month.

       

      Following
such termination of Employee’s employment by the Company without Cause, except
as set forth in this 0, Employee shall have no further rights to any
compensation or any other benefits under this Agreement.

       

      (d)           Termination by Employee with
Good Reason.  Employee may terminate his employment with Good
Reason by providing the Company twenty (20) days’ written notice setting forth
in reasonable specificity the event that constitutes Good
Reason.  During such twenty (20) day notice period, the Company shall
have a cure right (if curable), and if not cured within such period, Employee’s
termination will be effective upon the expiration of such cure period, and
Employee shall be entitled to the same payments and benefits as provided in 0
above for a termination by the Company without Cause, subject to the same
conditions on payment and benefits as described in 0 above.  Following
such termination of Employee’s employment by Employee with Good Reason, except
as set forth in this 0, Employee shall have no further rights to any
compensation or any other benefits under this Agreement.

       

      (e)           Termination by Employee
without Good Reason.  Employee may terminate his employment
without Good Reason by providing the Company thirty (30) days’ written notice of
such termination.  In the event of a termination of employment by
Employee under this 0, except as provided in Section 8(g), Employee shall be
entitled only to the Accrued Obligations, and any previously awarded Common
Shares which are not vested as of the date of termination shall be
cancelled.  In the event of termination of Employee’s employment under
this 0, the Company may, in its sole and absolute discretion, by written notice
accelerate such date of termination without changing the characterization of
such termination as a termination by Employee without Good
Reason.  Following such termination of Employee’s employment by
Employee without Good Reason, except as set forth in this 0 or Section 8(g),
Employee shall have no further rights to any compensation or any other benefits
under this Agreement.

       

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

       

      (f)           Non-Extension of the Term of
Employment.  Employee’s employment hereunder shall terminate
upon the close of business of the last day of the then current term if either
the Company or Employee gives timely notice of its intention not to extend the
then current term of employment, as provided in Section 2.  Upon such
termination of the Term of Employment, Employee shall be entitled
to:

       

      (i)           The
Accrued Obligations; and

       

      (ii)           Any
unpaid STI Award in respect of any completed fiscal year that has ended prior to
the date of such termination; and

       

      In the
event that Employee’s employment hereunder is terminated by reason of the
Company giving notice of its intention not to extend any Term of Employment
under Section 2, in addition to the above, Employee shall be entitled to the
following benefits:

       

      (iii)           Any
STI Award that would have been payable with respect to the year of termination
in the absence of the Employee’s termination, pro-rated for the period the
Employee worked prior to such termination, which amount shall be paid at such
time STI Awards are paid to other senior executives of the Company, but in no
event later than one day prior to the date that is 21⁄2 months following the last
day of the fiscal year in which such termination occurred; and

       

      (iv)           Immediate
vesting of any and all Common Shares previously awarded to the Employee;
and

       

      (v)           Continuation
of payment of Base Salary for a period of twelve (12) months, payable in
accordance with the Company’s regular payroll practices; and

       

      (vi)           Continuation,
for a period of twelve (12) months, of the health benefits provided to Employee
and his covered dependants under the Company’s health plans, subject to the
terms and conditions set forth in Section 8(c)(vi) above.

       

      Following
such termination of Employee’s employment pursuant to Section 2, except as set
forth in this 0, Employee shall have no further rights to any compensation or
any other benefits under this Agreement.  In the event that Employee’s
employment hereunder is terminated by reason of the Employee giving notice of
his intention not to extend any Term of Employment under Section 2, then any
previously awarded Common Shares which are not vested as of the date of
termination shall be cancelled.

       

      (g)           Termination Following Change
of Control.  If, upon a Change of Control of the Company or
during the one (1) year period following such Change of Control, Employee is
terminated by the Company without Cause or Employee terminates his employment
with or without Good Reason, in lieu of the benefits payable pursuant to
Sections 8(d) or 8(e) or 8(f) hereof, as applicable, Employee shall be entitled
to:

       

      (i)           The
Accrued Obligations; and

       

      (ii)           Any
unpaid STI Award in respect of any completed fiscal year that has ended prior to
the date of such termination; and

       

      (iii)           The
target STI Award for the year in which termination occurs, pro-rated for the
period the Employee worked prior to such termination, which amount shall be paid
at such time STI Awards are paid to other senior executives of the Company, but
in no event later than one day prior to the date that is 2 1/2 months following
the last day of the fiscal year in which such termination occurs;
and

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

       

      (iv)           A
lump-sum cash payment equal to two (2) times Base Salary , which amount shall be
paid in a lump sum within ten (10) business days following the closing of such
Change of Control; and

       

      (v)           Immediate
vesting of any and all Common Shares previously awarded to the Employee
irrespective of type of award; and

       

      (vi)           Continuation,
during the Change of Control Severance Term, of the health benefits provided to
Employee and his covered dependants under the Company’s health plans, subject to
the terms and conditions set forth in Section 8(c)(vi) above.

       

      Following
such termination of Employee’s employment following a Change of Control, except
as set forth in this 0, Employee shall have no further rights to any
compensation or any other benefits under this Agreement.

       

      (h)           Release.  Notwithstanding
any provision herein to the contrary, the Company may require that, prior to
payment of any amount or provision of any benefit pursuant to subsection 0, 0,
or (f) or pursuant to clauses (iii) through (v) of subsection (g) of this 0
(other than the Accrued Obligations), Employee shall have executed, on or prior
to the Release Expiration Date, a customary general release in favor of the
Company Group in such form as is reasonably required by the Company, and any
waiting periods contained in such release shall have expired.  To the
extent that the Company requires execution of such release, the Company shall
deliver such release to Employee within ten (10) business days following the
termination of Employee’s employment hereunder, and the Company’s failure to
deliver such release prior to the expiration of such ten (10) business day
period shall constitute a waiver of any requirement to execute such
release.  

       

      Section
9.                      Representations and Warranties of
Employee.

       

      Employee
represents and warrants to the Company that—

       

      (a)           Employee
is entering into this Agreement voluntarily and that his employment hereunder
and compliance with the terms and conditions hereof will not conflict with or
result in the breach by him of any agreement to which he is a party or by which
he may be bound;

       

      (b)           Employee
has not violated, and in connection with his employment with the Company will
not violate, any non-solicitation, non-competition, or other similar covenant or
agreement of a prior employer by which he is or may be bound; and

       

      (c)           in
connection with his employment with the Company, Employee will not use any
confidential or proprietary information he may have obtained in connection with
employment with any prior employer.

       

      Section
10.                                Taxes.

       

      (a)           Withholding.  The
Company may withhold from any payments made under this Agreement all applicable
taxes, including but not limited to income, employment, and social security
taxes, as shall be required by applicable law.  Employee acknowledges
and represents that the Company has not provided any tax advice to him in
connection with this Agreement and that he has been advised by the Company to
seek tax advice from his own tax advisors regarding this Agreement and payments
that may be made to him pursuant to this Agreement, including specifically, the
application of the provisions of Section 409A of the Code to such
payments.

       

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      Section
11.                                Set Off;
Mitigation.

       

      The
Company’s obligation to pay Employee the amounts provided and to make the
arrangements provided hereunder shall be subject to set-off, counterclaim, or
recoupment of amounts owed by Employee to the Company or its affiliates; provided, however, that to the extent
any amount so subject to set-off, counterclaim, or recoupment is payable in
installments hereunder, such set-off, counterclaim, or recoupment shall not
modify the applicable payment date of any installment, and to the extent an
obligation cannot be satisfied by reduction of a single installment payment, any
portion not satisfied shall remain an outstanding obligation of Employee and
shall be applied to the next installment only at such time the installment is
otherwise payable pursuant to the specified payment
schedule.  Employee shall not be required to mitigate the amount of
any payment provided for pursuant to this Agreement by seeking other employment
or otherwise, and except as provided in 0 hereof, the amount of any payment
provided for pursuant to this Agreement shall not be reduced by any compensation
earned as a result of Employee’s other employment or otherwise.

       

      Section
12.                                Successors and Assigns; No
Third-Party Beneficiaries.

       

      (a)           The
Company.  This Agreement shall inure to the benefit of the
Company and its respective successors and assigns.  Neither this
Agreement nor any of the rights, obligations, or interests arising hereunder may
be assigned by the Company to a Person (other than another member of the Company
Group, or its or their respective successors) without Employee’s prior written
consent; provided,
however, that in the
event of the merger or consolidation, or transfer or sale of all or
substantially all of the assets, of the Company with or to any other individual
or entity, this Agreement shall, subject to the provisions hereof, be binding
upon and inure to the benefit of such successor, and such successor shall
discharge and perform all the promises, covenants, duties, and obligations of
the Company hereunder, it being agreed that in such circumstances, the consent
of Employee shall not be required in connection therewith.

       

      (b)           Employee.  Employee’s
rights and obligations under this Agreement shall not be transferable by
Employee by assignment or otherwise, without the prior written consent of the
Company; provided,
however, that if
Employee shall die, all amounts then payable to Employee hereunder shall be paid
in accordance with the terms of this Agreement to Employee’s devisee, legatee,
or other designee, or if there be no such designee, to Employee’s
estate.

       

      (c)           No Third-Party
Beneficiaries.  Except as otherwise set forth in 0 or 0 hereof,
nothing expressed or referred to in this Agreement will be construed to give any
Person other than the Company, the other members of the Company Group, and
Employee any legal or equitable right, remedy, or claim under or with respect to
this Agreement or any provision of this Agreement.

       

      Section
13.                                Waiver and
Amendments.

       

      Any
waiver, alteration, amendment, or modification of any of the terms of this
Agreement shall be valid only if made in writing and signed by each of the
parties hereto; provided, however, that any such
waiver, alteration, amendment, or modification is consented to on the Company’s
behalf by the Board.  No waiver by either of the parties hereto of
their rights hereunder shall be deemed to constitute a waiver with respect to
any subsequent occurrences or transactions hereunder unless such waiver
specifically states that it is to be construed as a continuing
waiver.

       

      Section
14.                                Severability.

       

      If any
covenants or such other provisions of this Agreement are found to be invalid or
unenforceable by a final determination of a court of competent jurisdiction,
(a) the remaining terms and provisions hereof shall be unimpaired, and
(b) the invalid or unenforceable term or provision hereof shall be deemed
replaced by a term or provision that is valid and enforceable and that comes
closest to expressing the intention of the invalid or unenforceable term or
provision hereof.

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      Section
15.                                Governing Law and
Jurisdiction.

       

      In the
event of any dispute under this Agreement, or relating or arising under the
employment relationship (a “Dispute”), this
Agreement shall be governed by the laws of the State of Nevada. Each party shall
bear its own costs, including attorneys’ fees, and share all costs of the
Dispute equally, subject to the following:  (i) nothing provided
herein shall interfere with either party’s right to seek or receive damages or
costs as may be allowed by applicable statutory law (such as, but not
necessarily limited to, reasonable attorneys’ fees and dispute resolution
related costs and expenses, if allowed by applicable statutory
law).

       

      Section
16.                                Notices.

       

      (a)           Every
notice or other communication relating to this Agreement shall be in writing,
and shall be mailed to or delivered to the party for whom or which it is
intended at such address as may from time to time be designated by it in a
notice mailed or delivered to the other party as herein provided; provided, that unless and
until some other address be so designated, all notices and communications by
Employee to the Company shall be mailed or delivered to the Company at its
principal executive office, and all notices and communications by the Company to
Employee may be given to Employee personally or may be mailed to Employee at
Employee’s last known address, as reflected in the Company’s
records.

       

      (b)           Any
notice so addressed shall be deemed to be given (i) if delivered by hand,
on the date of such delivery, (ii) if mailed by courier or by overnight
mail, on the first business day following the date of such mailing, and
(iii) if mailed by registered or certified mail, on the third business day
after the date of such mailing.

       

      Section
17.                                Section Headings; Mutual
Drafting.

       

      (a)           The
headings of the sections and subsections of this Agreement are inserted for
convenience only and shall not be deemed to constitute a part thereof or affect
the meaning or interpretation of this Agreement or of any term or provision
hereof.

       

      (b)       The
parties are sophisticated and have been represented (or have had the opportunity
to be represented) by their separate attorneys throughout the transactions
contemplated by this Agreement in connection with the negotiation and drafting
of this Agreement and any agreements and instruments executed in connection
herewith.  As a consequence, the parties do not intend that the
presumptions of laws or rules relating to the interpretation of contracts
against the drafter of any particular clause should be applied to this Agreement
or any document or instrument executed in connection herewith, and therefore
waive their effects.

       

      Section
18.                                Entire Agreement.

       

      This
Agreement, together with any exhibits attached hereto, constitutes the entire
understanding and agreement of the parties hereto regarding the employment of
Employee.  This Agreement supersedes all prior negotiations,
discussions, correspondence, communications, understandings, and agreements
between the parties relating to the subject matter of this
Agreement.

       

      Section
19.                                Survival of Operative
Sections.

       

      Upon any
termination of Employee’s employment, the provisions of 0 through 20 of this
Agreement (together with any related definitions set forth in Section 1 hereof)
shall survive to the extent necessary to give effect to the provisions
thereof.

       

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

       

      Section
20.                                Counterparts.

       

      This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.  The execution of this Agreement may be by actual or
facsimile signature.

       

      

       

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

       

      

      
        	 
      	
                TRIANGLE
      PETROLEUM CORPORATION

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                __________________________

              
	 
      	
                By:

              	
                DR.
      PETER HILL

              
	 
      	
                Title:

              	
                CHIEF
      EXECUTIVE OFFICER

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                EMPLOYEE

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                __________________________

              
	 
      	
                JONATHAN
      SAMUELS

              

      

      

      
 

       

       

       

       

       

       

       

       

       

       

       

       

      
        
           

        

        
          12NEITHER
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:
96,000                                                                                     Initial
Exercise Date: March 30, 2009

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, Steven Chizzik (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
96,000 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.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    “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.

     

    “Commission” means the
Securities and Exchange Commission.

     

    “Common Stock” means
the common stock of the Company, par value $0.01 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 bid price reported on the Company’s Trading Market on the
Trading Day immediately preceding any applicable measuring date, (b) 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 (b) in all other
cases, the fair market value of a share of Common Stock as determined by the
Company’s Board of Directors.

     

    “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: the American Stock Exchange, the Nasdaq
Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board, and the “Pink
Sheets”.

     

    “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.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    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 Holder 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 $1.25,
subject to adjustment hereunder (the “Exercise
Price”).

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    c)           Exercise Limitations.
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(c), 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(c) 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(c), 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 five 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(c), 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(c) 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.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    d)           Mechanics of
Exercise.

     

    i.      
Delivery of
Certificates Upon Exercise.  Certificates for shares purchased
hereunder shall be transmitted by the transfer agent by physical delivery to the
address specified by the Holder in the Notice of Exercise within 5 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 and all taxes required to be
paid by the Holder, if any, pursuant to Section 2(d)(v) prior to the issuance of
such shares, have been paid.

     

    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(d)(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.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    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.

     

    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 make 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.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    b)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company effects any merger or consolidation of the Company with or into another
Person, (ii) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (iii) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property or (iv) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (each “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate
Consideration”) receivable as a result of such merger, consolidation or
disposition of assets by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event. For purposes
of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration.  If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental
Transaction.  To the extent necessary to effectuate the foregoing
provisions, any successor to the Company or surviving entity in such Fundamental
Transaction shall issue to the Holder a new warrant consistent with the
foregoing provisions and evidencing the Holder’s right to exercise such warrant
into Alternate Consideration. The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such
successor or surviving entity to comply with the provisions of this Section 3(b)
and insuring that this Warrant (or any such replacement security) will be
similarly adjusted upon any subsequent transaction analogous to a Fundamental
Transaction. Notwithstanding anything to the contrary, in the event of a
Fundamental Transaction that is (1) an all cash transaction, or (2) a “Rule
13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, the Company
or any successor entity shall pay at the Holder’s option, exercisable at any
time concurrently with or within 30 days after the consummation of the
Fundamental Transaction, an amount of cash, per share, equal to the (A) Exercise
Price, less (B) the Market Price, on the date the Fundamental Transaction is
consummated.  In the event the product of the forgoing is negative, no
payment by the Company shall be required.

     

    c)           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.

     

    d)           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 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. Any public statement or filing made by the
Company referencing the adjustment shall serve as notice.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    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.

     

    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.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    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), 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.

     

    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(d)(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.

     

    d)           Authorized
Shares.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    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.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    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 U.S.
District Court for the District of Maryland.  Each party hereby
irrevocably submits to the exclusive jurisdiction of the U.S. District Court for
the District 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.

     

    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 at the facsimile number set forth on
the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second
Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) 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.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    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 lawful money of the United States.

     

    (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 physical delivered to:

    
      
        
          
            
              
                
                  	 
      	
                           

                        	 
      
	 
      	
                           

                        	 
      
	 
      	
                           

                        	 
      

                

              

            

          

        

      

    

    

    (4)   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:

              	
                   

              

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]