Document:

NEURALSTEM
      INC

     

    NON
      EXCLUSIVE LIMITED LICENSE AND MATERIAL TRANSFER AGREEMENT

     

    This
      Non exclusive Limited License and Material Transfer Agreement ("Agreement")
      is
      entered into as of 12/22,
      2004 (the "Effective Date") by and among Neuralstem, Inc., ("Neuralstem"),
      a
      company incorporated under the laws of the State of Maryland, having an address
      at 9700 Great Seneca Highway, Suite 240, Rockville, Maryland 20850 on the one
      side, and A-T Children's Project  ("A-TCP"),  having an address at 668
      S. Military Trail, Deerfield Beach, Florida 33442 .

     

    Whereas,
      Neuralstem is the owner of certain patented and proprietary technology relating
      to production and use of human CNS stem cells, and has created a cerebellar
      stem
      cell line designated HCB576 (hereinafter the "cells");

     

    Whereas,
      Neuralstem desires to provide such cells to A-TCP for research purposes
      only;

     

    Whereas,
      A-TCP desires to use said cells in a research project to study
      Ataxia-Telangiectasia ("the disease"); and to develop suitable assay(s) for
      screening compounds to treat the disease. (`the research"); and

     

    The
      parties therefore agree as follows:

     

    Article
      1.0    Definitions 

     

    
      	
              1.1

            	
              "Research
                Materials" means
                the Materials, the know-how provided by Neuralstem to PI, and any
                Progeny
                and Unmodified or modified Derivative thereof "Materials"
                means
                the materials provided by Neuralstem to PT listed in Article 2 below.
                "Progeny" means an unmodified or modified descendant from the Materials,
                such as a virus from virus, cell from cell, or organism from
                organism.

            

    

     

    
      	
              1.2

            	
              "Research
                Uses" means
                experimental in vitro research conducted by A-TCP in its own laboratories
                and for its own internal use in the performance of the research program
                described in Article 2.1 (the "Research Program"). No other use of
                the
                cells by PI is anticipated or allowed under this
                agreement.

            

    

     

    
      	
              1.3

            	
              "Research
                Results" means
                the data or records, whether compiled in electronic, written or other
                form, arising from the use by A-TCP of Research Materials as Limited
                to
                the work product as result of the Research
                Program.

            

    

     

    
      	
              1.4

            	
              "Neuralstem
                Patents" means
                any patents or patent applications together with all patents resulting
                therefrom in any and all jurisdictions which cover the manufacture,
                use or
                sale of human CNS stem cells, and any progeny, derivative, improvement
                or
                modification thereof, which are owned or controlled by NeuralStem
                at the
                Effective Date, including all licensed patents or patent applications
                that
                Neuralstem has the right to sublicense at the Effective
                Date:

            

    

     

    Isolation,
      Propagation, and Directed Differentiation of Stem Cells from Embryonic and
      Adult
      Central Nervous System of Mammals (U.S. Patent 5,753,506 issued May 19, 1998,
      patents pending in Canada and Europe)

     

    In
      Vitro Generation of Differentiated Neurons from Cultures of Mammalian
      Multipotential CNS Stern Cells (U,S. Patent 6,040,180 issued March 21, 2000—
continuation-in-part of U,S, Patent 5,753,506, patents pending in Canada and
      Europe)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Stable
      Neural Stem Cell Lines (U.S. patent pending—continuation-in-part of U.S. Patent
      5,753,506, patents pending in Canada, Europe and Japan, patent issued in New
      Zealand)

     

    Article
      2. 0        Research Program

     

    
      	
              2.1

            	
              The
                Research Program shall involve the use of HCB576 cell line by A-TCP
                for
                the growth and use of the cell line to study the disease
                ataxia-telangiectasia and to create an assay suitable for screening
                compounds for treatment of the
                disease.

            

    

     

    
      	
              2.2

            	
              A-TCP
                will designate a principal investigator ("PI") to conduct the research.
                The designated P1 is Dr. Yosef Shiloh at Tel Aviv University. In
                the event
                that Dr. Shiloh is unwilling or unable to conduct the research, the
                A-TCP
                has the right to designate a different PI. A-TCP and PI collectively
                referred to herein as "Recipients".

            

    

     

    Article
      3. 0        Material Transfer and
Use
      Limitations

     

    
      	
              3.1

            	
              Upon
                the execution of this Agreement, Ncuralstem shall provide to A-TCP
                the
                cerebellar cell line licensed under this agreement, designated: "HCB576".
                NISI will transfer no less than 12 frozen vials, each containing
                approximately 2 million cells of passage 8 to PI in order to allow
                P1 to
                establish its own stock, and no more than 15 vials, at NS1 cost.
                NS1 will
                also provide necessary protocols and know-how, as deemed necessary
                by
                mutual agreement by the parties to expand and maintain the cell line.
                Neuralstem hereby grants to A-TCP a limited, non exclusive license
                to use
                the cells and related Neuralstem technology for the term of this
                license,
                for research uses, under the terms and conditions of this
                agreement.

            

    

     

    
      	
              3.2

            	
              The
                Recipients hereby agree that Research Materials will be used under
                suitable containment conditions in compliance with all government
                laws and
                regulations and for approved uses only and recipient agrees to the
                restrictions provided for in this
                agreement.

            

    

     

    
      	
              3.3

            	
              The
                Recipients agree that Research Materials will remain the sole property
                of
                Neuralstem.

            

    

     

    
      	
              3.4

            	
              The
                Recipients agree that they will retain control over and will assume
                all
                responsibility for the custody of Research Materials. The Recipients
                further agree that they will return any unused Research Materials
                to
                Neuralstem at Neuralstem's expense, should Neuralstem so request,
                along
                with a record of all used or spent Research Materials or will dispose
                of
                any unused Research Materials as otherwise directed by
                Neuralstem.

            

    

     

    
      	
              3.5

            	
              The
                Recipients agree they will not transfer, sell, give, or otherwise
                convey
                in any form whatsoever, Research Materials to any other person or
                entity,
                including without limitation any of PI's commercial, non-commercial,
                joint
                venture partners or aliases, without the prior, express written permission
                of Neuralstem. Recipient hereby assigns to Neuralstem any materials
                and
                inventions (as defined below) made outside of the permitted research
                uses.

            

    

     

    
      	
              3.6

            	
              Neuralstem
                agrees to render a reasonable amount of technical assistance as may
                be
                required by Pl. The determination of what constitutes a reasonable
                amount
                of technical assistance will he mutually agreed to by the
                Parties.

            

    

     

    
      	
              3.7

            	
              The
                parties agree that nothing in this Agreement shall be construed in
                any way
                as restricting or interfering with Neuralstem's right to distribute
                Research Materials to any other person or
                entity.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
      4.0        Payments 

     

    
      	
              4.1

            	
              In
                entire consideration for the delivery of the Materials and the License
                grant from Neuralstem to A-TCP, A-TCP shall pay a single fixed fee
                payment
                to Neuralstem in the amount of $37,500. This amount shall be payable
                within l5 days from the execution of this agreement by both
                Parties.

            

    

     

    Article
      5.0        Reports And
      Publication 

     

    
      	
              5.1

            	
              PI
                shall keep a record of its use of Research Materials and shall provide
                a
                copy of this record upon request to
                Neuralstem.

            

    

     

    
      	
              5.2

            	
              I
                will provide Neuralstem on a regular basis For the duration of the
                Research Program, but not less than semi-annually, the Research Results
                in
                the form of a written report. 

            

    

     

    Article
      6.0        Representations And
      Warranties

     

    
      	
              6.1

            	
              Neuralstem
                represents and warrants to the Recipients that, as of the Effective
                Date,
                it has the right to transfer Research Materials for the Research
                Uses to
                PI under this Agreement.

            

    

     

    
      	
              6.2

            	
              While
                Neuralstem confirms that Research Materials are covered under Neuralstem
                Patents, A-TCP and Neuralstem agree that nothing hereunder shall
                be
                construed to represent any license or right under Neuralstem Patents
                to
                the Recipients, other than those rights expressly granted under this
                Agreement.

            

    

     

    
      	
              6.3

            	
              The
                Recipients represent to Neuralstem that they have the right to accept
                the
                terms and obligations of this Agreement and that they will maintain
                compliance with all applicable laws in carrying out their obligations
                under this Agreement.

            

    

     

    
      	
              6.4

            	
              Each
                party represents that it has the full right and authority to enter
                into
                this Agreement and that the individual executing this Agreement on
                its
                behalf has the authority to do so.

            

    

     

    
      	
              6.5

            	
              The
                Recipients represent to Neuralstem that they are acting on their
                own
                behalf under this Agreement and are not acting in their capacity
                as a
                contractor or agent of the United States
                Government.

            

    

     

    
      	
              6.6

            	
              THESE
                RESEARCH MATERIALS ARE PROVIDED "AS IS" WITHOUT WARRANTY OF
                MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR ANY OTHER WARRANTY
                EXPRESS OR IMPLIED. NEURALSTEM MAKES NO REPRESENTATION OR WARRANTY
                REGARDING THE VALIDITY OR SCOPE OF  NEURALSTEM PATENTS NOR THAT THE
                RESEARCH MATERIALS OR THEIR USE WILL NOT INFRINGE ANY PATENT OR ANY
                OTHER
                PROPRIETARY RIGHT OF ANY THIRD PARTY. IN NO EVENT, OTHER THAN BREACH
                OF
                ITS REPRESENTATIONS OR WARRANTIES IN THIS ARTICLE, WILL NEURALSTEM
                BE
                LIABLE FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING
                FROM
                THE EXERCISE OF THIS AGREEMENT OR THE USE OF RESEARCH
                MATERIALS.

            

    

     

    Article
      7.0        Confidentiality

     

    
      	
              7.1

            	
              As
                used herein, "Confidential Information" shall mean (a) all trade
                secrets
                or confidential or proprietary information which is designated in
                writing
                as confidential or proprietary by the disclosing party prior to or
                at the
                time of the disclosure thereof; (b) information without such designation
                if it would be apparent to a reasonable person, familiar with the
                disclosing party's business and the industry, that such information
                is of
                a confidential or proprietary nature; and (c) information disclosed
                without such designation, if the disclosing party, within thirty
                (30) days
                after such disclosure. informs the receiving party in writing of
                the
                confidential or proprietary nature of the disclosed information,
                describing such information and referencing the place and date of
                the
                oral, visual or written disclosure and the names of the employees
                or
                officers of the receiving party to whom such disclosure was
                made.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              7.2

            	
              During
                the term of this Agreement and for a period of five (5) years from
                any
                termination or expiration hereof, the parties agree to keep Confidential
                Information of the other party in confidence, not to disclose Confidential
                Information of the other party to any third party and not to use
                Confidential Information of the other party for any purpose, other
                than as
                permitted in this Agreement.

            

    

     

    
      	
              7.3

            	
              The
                restrictions on the disclosure and use of Confidential Information
                shall
                not apply to any Confidential Information which: (i) was known by
                the
                receiving party (as evidenced by the receiving party's written records)
                prior to disclosure by the disclosing party hereunder; (ii) is or
                becomes
                part of the public domain through no fault of the receiving party;
                (iii)
                is disclosed to the receiving party by a third party having a legal
                right
                to make such a disclosure; or (iv) is independently developed by
                employees
                or consultants of the receiving party without use or access to the
                Confidential Information of the disclosing
                party.

            

    

     

    
      	
              7.4

            	
              This
                Agreement shall supersede any other prior agreements regarding the
                protection of confidential information, and any confidential information
                disclosed to the other party under such other prior agreements shall
                be
                subject to the terms of this Section
                7.

            

    

     

    Article
      8.0    Intellectual Property

     

    
      	
              8.1

            	
              "Inventions"
                shall mean Sole Inventions and Joint Inventions based on US patent
                law.
                "Sole
                Invention(s)"
                shall mean any new and useful invention or discovery conceived by
                employees or consultants of the Recipients alone in the course of
                performing the Research Program. "Joint
                Invention(s)"
                shall mean any new or useful invention or discovery conceived jointly
                by
                an employee or consultant of a Recipient and an employee or consultant
                of
                Neuralstem in the course of performing the Research Program. All
                Inventions shall be owned by A-TCP. Neuralstem shall assign and does
                hereby assign to A-TCP all right, title and interest in its Sole
                and Joint
                Inventions. Neuralstem shall reasonably cooperate in perfecting and
                enforcing Such rights at A-TCP's expense, including without limitation,
                by
                executing any documents necessary for Neuralstem to support the Filing
                of
                patent applications.

            

    

     

    
      	
              8.2

            	
               A-TCP
                hereby grants to Neuralstem the tight to negotiate within a 60-day
                period
                a non-exclusive, perpetual license to Recipients' Sole Inventions
                and the
                Recipients' interest in Joint Inventions that are conceived during
                the
                performance of the Research Program. In addition the Recipients hereby
                grant to Neuralstem the first right to negotiate an exclusive license
                to
                Recipients' Sole Inventions and Recipients' rights in any Joint Inventions
                for which Neuralstem has paid and/or has agreed to pay patent expenses.
                Such licenses shall be negotiated in good faith with terms considered
                reasonable and customary in the field for like inventions. Such license
                shall also provide for the reimbursement by Neuralstem
                of
                any future patent expenses incurred by Recipients. The rights to
                negotiate
                granted pursuant to this paragraph 8.2 shall be exercisable for a
                period
                of thirty (30) days from the date of A-TCP' s notification to Neuralstem
                of such Sole or Joint Invention. The parties shall enter into a written
                agreement for each license within sixty (60) days following the
                notification from Neuralstem to A-TCP of its interest in obtaining
                the
                license to the Invention(s). If the parties are unable to agree to
                terms
                for the licenses within the stipulated time period, or if Neuralstem
                ceases to pay patent expenses, A-TCP shall be free to license to
                others
                and shall have no further obligations to Neuralstem with respect
                to such
                inventions. Invention disclosures and related correspondence shall
                be
                directed to the following
                people:

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	 	 	 
	
              For
                PI:

              Yosef
                Shiloh, PhD Tel Aviv University

               

              For
                Recipient:

              Jennifer
                Thornton Executive Director

            	 	
              For
                Neuralstem: 

              Richard
                Garr

            

    

     

    Article
      9    Term and Termination

     

    
      	
              9.1

            	
              The
                term of this Agreement shall go into effect on the date the last
                party
                hereto executes this Agreement and shall continue until ten years
                from the
                effective date. The terms of Articles 7, 8 and 10 shall survive the
                termination of this Agreement.

            

    

     

    Article
      10.0     Miscellaneous Provisions

     

    
      	
              10.1

            	
              The
                Recipients shall be excused for failure or delay in performing any
                of
                their respective obligations under this Agreement if failure or delay
                is
                caused by force majeure, to the extent such failure or delay is caused
                by
                said force majeure.

            

    

     

    
      	
              10.2

            	
              All
                notices, requests and other communications regarding the terms or
                performance of this Agreement shall be in writing, shall refer
                specifically to this Agreement and shall be. personally delivered
                or sent
                by registered mail, overnight courier or certified mail, return receipt
                requested, postage prepaid, or by facsimile or electronic mail, in
                each
                case to the address specified below, or as to other such address
                as may be
                specified in writing to the other
                party.

            

    

     

    Neuralstem:

     

    Neuralstem,
      Inc.

    9700
      Great Seneca Highway, Suite 240 Rockville, Maryland 20850

    e-mail:
      irgarr@neuralstem.com

    Attention:Richard
      Garr

     

    Recipients:

     

    A-T
      Children's Project

    668
      S. Military Trail

    Deerfield
      Beach, FL 33442

    e-mail:
       jennifer@atcp.org

    Attention:
      Jennifer Thornton

     

    Such
      notices shall be deemed received on the next business day after dispatched
      in
      the case of overnight courier or live (5) business days after deposit in the
      U.S. mail.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              10.3

            	
              The
                rights and obligations under this Agreement are not assignable by
                A-TCP
                without the prior written consent of
                Neuralstem.

            

    

     

    
      	
              10.4

            	
              This
                Agreement constitutes the entire agreement between the parties and
                no
                provision of this Agreement shall be varied or contradicted by any
                oral
                agreement. All prior or contemporaneous
                understandings or agreements, whether written or oral, between the
                parties
                with respect to the subject matter herein are hereby superseded in
                their
                entirety by this Agreement. No amendment shall be effective unless
                made in
                writing specifically identifying this Agreement and the provision
                to be
                amended and signed by the parties.

            

    

     

    
      	
              10.5

            	
              This
                Agreement shall be construed and enforced in accordance with the
                laws
                of
                the State of Delaware and all parties
                hereto,
                specifically including
                P1
                agree to such jurisdiction.

            

    

     

    
      	
              10.6

            	
              If
                any
                provision
                of this Agreement is held unenforceable in any jurisdiction, all
                other
                provisions shall remain in full force and effect in such jurisdictions
                and
                such unenforceability will not affect the enforceability of the provision
                in other jurisdictions. To the extent permitted
                by
                applicable law, the parties hereby waive
                any
                provision of law that would render
                any provision hereof prohibited or unenforceable in any respect.

            

    

     

    
      	
              10.7

            	
              This
                Agreement may be executed in
                counterparts.

            

    

     

    Neither
      party shall use the name of the other or any contraction or
      derivative thereof
      or the
      name(s)
      of the other party's faculty members, employees,
      or
      students,
      as applicable, in any advertising,
      promotional, or sales literature without prior written consent
      from
      the other party.

    
 

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement effective as of the
      date first stated above.

     

     

    
      	
              Neuralstem,
                Inc.

            	
              A-TCP

            
	
               

            	 
	
              By:
                /s/
                I. Richard Garr

            	
              By:
                /s/
                Jennifer Thornton

            
	
              I.
                Richard Garr

            	
              Jennifer
                Thornton

            
	
              President
                & CEO

            	
              Executive
                DirectorLimited
        Exclusive License

      

      Made
        this 7th day of July, 2005 between Neuralstem, Inc. (NS) and High Med
        Technologies, Inc. (HM).

      

      Whereas
        NS is the owner of certain neural stem cell technology, described more fully
        on
        exhibit A attached hereto and incorporated by reference herein,
        and;

      

      Whereas
        NS desires to contract with HM for services relating to sales, distribution
        and
        marketing of its cells for limited purposes, and;

      

      Whereas
        HM desires to provide these services under the terms and conditions of this
        agreement, now therefore;

      

      For
        good and valuable consideration exchanged between the parties, the Parties
        agree
        as follows:

      

      Term:
        The term of the agreement shall be for 5 years. The term of the agreement
        shall
        be extended automatically to the life of the patent(s) shown in Exhibit A
        when
        the Annual Revenue Target for Year 5 set forth in Exhibit B has been
        met.

      

      Scope:
        HM shall,
        during the term of the agreement, have the exclusive right (outside of
        Neuralstem itself) to create, manufacture, develop, sublicense, or offer
        for
        sale the Neuralstem Technology, described more specifically on exhibit A,
        or
        products created using Neuralstem Technology, solely for the purpose(s) of
        research, and further limited to in vitro research that do not involve injection
        of the cells or cell-derived materials into live animals or human beings.
        It is
        the express intent of the parties that HM may NOT knowingly create, manufacture,
        develop, sublicense or offer for sale the Neuralstem Technology or products
        created using Neuralstem Technology for research or research purposes where
        the
        cells and cell-derived materials will be used in whole or in part as a
        therapeutics to treat a disease. HM shall promptly report to Neuralstem any
        knowledge of a breach of this license limitation by a HM customer.

      

      Limited
        Exclusivity: During
        the term of the agreement Neuralstem shall not enter into an agreement with
        any
        other entity which would allow the other entity to offer the technology
        described in exhibit A, for the purposes covered by the scope of this agreement,
        The parties acknowledge and agree that nothing in this agreement is meant
        to
keep
        Neuralstem itself, from making any kind of deal with any individual outside.
        party for any use of any Neuralstem Technology. Neuralstem acknowledges that
        it
        has no current plans to establish a similar business "in house", nor to compete
        with MI in this area during the term of the agreement.

      

      Compensation:
        During
        the term of the agreement HM shall pay to Neuralstem the following:

      

      80%
        of any revenue obtained by HM from a license or other supply deal where HM
        does
        not have to manufacture and supply the product to the customer, where revenue
        means the net proceeds received by HM from the sale of a license or a product
        minus applicable sales tax, returns, discounts, third party sales commissions,
        stacking royalties, and third party OEM supplies;

      

      20%
        of any revenue obtained by HM
        from
        a license or other supply deal where HM does have to manufacture and supply
        the
        product to the customer, where revenue means the net proceeds received by
        HM
        from the sale of a license or a product minus applicable sales tax, returns,
        discounts, third party sales commissions, stacking royalties, and third party
        OEM supplies;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      In
        cases where Neuralstem licenses or sells Neuralstem Technology within the
        scope
        of this agreement to a buyer who is or has been a customer of HM, Neuralstem
        shall pay to HM 20% of any revenue obtained from the buyer.

      

      Neuralstem
        makes no representations or warranties with respect to the product, or
        intellectual property related to the product and or its use. HM senior
        management is fully aware of and informed on any and all intellectual property
        issues surrounding the technology and assumes any risk related thereto, HM
        shall
        bear it's own legal costs with respect to any patent related litigation or
        other
        proceedings brought against HM.

      

      Revenue
        Targets: The
        parties agree that in order for HM to maintain its limited exclusive license,
        it
        shall meet or exceed the revenue targets contained on Exhibit B hereto ("Annual
        Revenue Targets") and incorporated by reference herein.

      

      In
        the event that HM does not meet Annual Revenue Target, Neuralstem shall have
        15
        days in which to notify HM that the exclusivity of its license is revoked.
        Then
        and in that event, HM shall continue to have a non exclusive license to provide
        the same services and products, for the same scope of work, as contained
        in this
        license, for the remainder of the term.

      

      In
        the event that Neuralstem does NOT so notify HM, the exclusivity shall continue
        and the next annual target year shall be assessed independently, not
        cumulatively.

      

      Sale
        of HM: In
        the event of a sale or other disposition of all or substantially all of the
        assets of HM, or an event in which control of more than 50% of HM's voting
        stock
        changes hands, Neuralstem shall have the option of converting the license
        to a
non
        exclusive
        license, or of taking a percentage of the sales proceeds as outlined on Exhibit
        C hereto and incorporated by reference herein,

      

      /s/
        I. Richard Garr

      Neuralstem
        Representative

       

      I.
        Richard Garr President & CEO
Name
        and Title

      

      July
        8, 2005

      

      Date

      

      /s/
        Karl K. Johe

      High
        Med Technologies Representative

      

      Karl
        K, Johe President  & CEO

      Name
        and Title

       

      July
        7, 2005

      Date

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