Document:

jbc_ex10-2.htm

    Exhibit
10.2

     

    

    THIS
AGREEMENT ("Agreement") is made this 15h day of June,   2009, by
and between Entest BioMedical, Inc., whose address is 4700 Spring Street, Suite
203 La Mesa California , 91914 hereinafter referred to as "Entest", and
Bio-Matrix Scientific Group, Inc. , whose principal place of business is 8885
Rehco Road, San Diego, California 92121, hereinafter referred to as
"Company".

    

    WHEREAS,
the Company has entered into that agreement with Dr. Brian Koos (“Consultant”)
dated April 8, 2009 (“Koos Agreement”)(Exhibit A).

    

    WHEREAS,
the Koos Agreement permits the Company to assign its rights to the services of
the Consultant pursuant to the Koos Agreement to
Entest  ,

    

    WHEREAS,
Entest is desirous of having the Company to assign its rights to the services of
the Consultant pursuant to the Koos Agreement to Entest

    

    THEREFORE,
it is agreed as follows:

    

    
      	
               
      

            	
              1.

            	
              Assignment.
      The Company shall assign its rights to the services of the Consultant
      pursuant to the Koos Agreement to
Entest

            

    

    

    
      	
               
      

            	
              2.

            	
              Liability.
      The Company shall not be liable to Entest, or to anyone who may claim any
      right due to any relationship with Entest, for any acts or omissions in
      the performance of services on the part of the Consultant except when said
      acts or omissions of the Consultant are due to willful misconduct or gross
      negligence.  Entest shall indemnify, defend and hold the
      Company  free and harmless from and against any and all
      liabilities, costs and expenses (including reasonable attorneys’ fees)
      arising out of or in connection with the services rendered to Entest by
      Consultant  pursuant to the terms of this Agreement except to
      the extent that the same shall result from the willful misconduct or gross
      negligence of the Consultant or the Company  as determined by a
      court or arbitrator of competent
jurisdiction.

            

    

    

    
      	
               
      

            	
              3.

            	
              Company
      shall be compensated in accordance with the following
      schedule:

            

    

    

    $10,000

    

    
      	
               
      

            	
              4.

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

            

    

    

    
      	
               
      

            	
              5.

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

            

    

    
 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              6.

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

            

    

    

    
      	
               
      

            	
              7.

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

            

    

    

    
      	
               
      

            	
              8.

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

            

    

    

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

    

    

    
      	
              Bio-Matrix
      Scientific Group Inc.

            	 
      	
              Entest
      BioMedical, Inc.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By:
      /s/David  R.
      Koos

            	 
      	
              By:
      /s/David R. Koos

            
	
              David
      R. Koos 

            	 
      	
              David
      R. Koos

            
	
              Its:
      CEO

            	 
      	
              Its:
      CEO

            

    

    

    

    

    

     

     

    
 

    

    

    
      
         

      

      
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    Exhibit
A

     

     

    CONSULTING
AGREEMENT

    

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

    

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

    

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

    

    THEREFORE,
it is agreed as follows:

    

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

    

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

    

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

     

    3. 
Representations and Warranties

    

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

    

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

    

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

    

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

    

    
      
         

      

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

    

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

    

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

     

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

     

    (iii)         
Advise the Company in:

     

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

     

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

    

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

    

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

    

    CONSULTANT
shall be compensated in accordance with the following schedule:

    

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

    

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

    

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

    

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

     

    
      
         

      

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

     

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

     

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

     

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

    

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

    

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

    

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

     

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

    

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

    

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

    

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

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

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

     

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

     

    
 

    
      
         

      

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

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    

    
      
         

      

      
        7jbc_ex10-3.htm

    Exhibit
10.3

    

    

    SUBLEASE
AGREEMENT

    

    THIS
SUBLEASE AGREEMENT is entered into on June 15, by and between Bio-Matrix
Scientific Group, Inc.  ("SUBLESSOR”), with an address of 8885 Rio San
Diego Dr. #357, San Diego, CA 92108 and Entest BioMedical, Inc. Inc.,
("SUBLESSEE"), currently located at  4700 Spring Street, Suite 203, La
Mesa, CA 91941 (the “Parties”).

    

         FOR
VALUABLE CONSIDERATION, the Parties agree to the following terms and
conditions.

    

         1.
 Premises.  Sublessor hereby subleases to Sublessee and Sublessee
hereby subleases from Sublessor for the term specified below, and upon all of
the conditions set forth herein, that certain real property, including all
improvements thereon, commonly known by the street address of 4700 Spring
Street, Suite 203, La Mesa, CA 9194  (the “Premises”).

    

         2.
 Term.  The term of this Sublease shall be for  36 months
commencing on June 30, 2009 and ending on  June 30, 2012, unless sooner
terminated pursuant to any provision hereof.  Sublessor agrees to use its
best commercially reasonable efforts to deliver possession of the Premises by
the commencement date.  If, despite said efforts, Sublessor is unable to
deliver possession as agreed, the rights and obligations of Sublessor and
Sublessee shall be as set forth in the Master Lease.

    

         3.
 Base Rent.  Sublessee shall pay to Sublessor as Base Rent for the
Premises equal monthly payments of $ 4,100 on the 5th of each
month of the term hereof. Base Rent which is less than one month for any period
during the term hereof shall be calculated at a pro rata portion of the monthly
installment.

    

         4.  Rent
Defined.  All monetary obligations of Sublessee to Sublessor under the
terms of this Sublease are deemed to be rent (“Rent”).  Rent shall be
payable in lawful money of the United States to Sublessor at the address stated
herein or to such other persons or at such other places as Sublessor may
designate in writing.

    

        
5.   Use.

    

            (a)
Agreed Use.  The Premises shall be used and occupied only for the operation
of a cellular storage/ regenerative medical enterprise and for no other
purpose.

    

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

           (b)
Compliance.  Sublessor warrants that the improvements on the Premises
comply with all applicable covenants or restrictions of record and applicable
building codes, regulations and ordinances in effect on the commencement date.
 Said warranty does not apply to the use to which Sublessee will put the
Premises or to any alterations or utility installations made or to be made by
Sublessee.  NOTE:  Sublessee is responsible for determining whether or
not the zoning is appropriate for its intended use, and acknowledges that past
uses of the Premises may no longer be allowed.  If the Premises do not
comply with said warranty, or in the event that the applicable requirements are
hereafter changed, the rights and obligations of Sublessor and Sublessee shall
be as provided in the Master Lease (as modified in Paragraph 7 of this
Sublease).

    

           (c)
Acceptance of Premises and Lessee.  Sublessee acknowledges that (i) it has
been advised to satisfy itself with respect to the condition of the Premises
(including but not limited to the electrical, HVAC and fire sprinkler systems,
security, environmental aspects, and compliance with all applicable
requirements) and their suitability for Sublessee’s intended use; (ii) Sublessee
has made such investigation as it deems necessary with reference to such matters
and assumes all responsibility therefore as the same relate to its occupancy of
the Premises; and (iii) neither Sublessor, Sublessor’s agents, nor any broker
has made any oral or written representations or warranties with respect to said
matters other than as set forth in this Sublease.  In addition, Sublessor
acknowledges that it is Sublessor’s sole responsibility to investigate the
financial capability and/or suitability of all proposed tenants.

    

         6.   
Master Lease.

    

            (a)
Sublessor is the lessee of the Premises by virtue of a lease, (the “Master
Lease”), wherein CIF La Mesa LP is the lessor, (“Master Lessor”).

    

            (b)
This Sublease is and shall at all times be subject and subordinate to the Master
Lease.

    

            (c)
The terms, conditions and respective obligations of Sublessor and Sublessee to
each other under this Sublease shall be the terms and conditions of the Master
Lease except for those provisions of the Master Lease which are directly
contradicted by this Sublease in which event the terms of this Sublease shall
control over the Master Lease.  Therefore, for the purposes of this
Sublease, wherever in the Master Lease the word “Lessor” is used it shall be
deemed to mean the Sublessor herein and wherever in the Master Lease the word
“Lessee” is used it shall be deemed to mean the Sublessee herein.

    

           (d)
During the term of this Sublease and for all periods subsequent for obligations
which have arisen prior to the termination of this Sublease, Sublessee does
hereby expressly assume and agree to perform and comply with, for the benefit of
Sublessor and Master Lessor, each and every obligation of Sublessor under the
Master Lease (the “Sublessee’s Assumed Obligations”).  The obligations that
Sublessee has not assumed under this Paragraph 6 are hereinafter referred to as
the “Sublessor’s Remaining Obligations”.

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

            (e)
Sublessee shall hold Sublessor free and harmless from all liability, judgments,
costs, damages, claims or demands, including reasonable attorneys’ fees, arising
out of Sublessee’s failure to comply with or perform Sublessee’s Assumed
Obligations.

    

            (f)
Sublessor agrees to maintain the Master Lease during the entire term of this
Sublease, subject however, to any earlier termination of the Master Lease
without the fault of the Sublessor, and to comply with or perform Sublessor’s
Remaining Obligations and to hold Sublessee free and harmless from all
liability, judgments, costs, damages, claims or demands arising out of
Sublessor’s failure to comply with or perform Sublessor’s Remaining
Obligations.

    

            (g)
Sublessor represents to Sublessee that the Master Lease is in full force and
effect and that no default exists on the part of any party to the Master
Lease.

    

      7.
    Consent of Master Lessor.  

    

            (a)
In the event that the Master Lease requires that Sublessor obtain the consent of
Master Lessor to any subletting by Sublessor, then this Sublease shall not be
effective unless, within ten (10) days of the date hereof, Master Lessor signs
this Sublease thereby giving its consent to this subletting.

    

       8.
   Attorney’s Fees.  If any party or the Broker named herein
brings an action to enforce the terms hereof or to declare rights hereunder, the
prevailing party in any such action, on trial and appeal, shall be entitled to
his reasonable attorney’s fees to be paid by the losing party as fixed by the
Court.

    

       9.   
Governing Law.  This Sublease shall be governed by the laws of the State of
California.  Any disputes hereunder will be heard in the appropriate state
and federal courts located in the County of San Diego, CA.

    

    Sublessor:
Bio-Matrix Scientific
Group, Inc    Sublessee: Entest
BioMedical,
Inc.

    

    By:
/s/David R.
Koos                                          By:
/s/David R.
Koos

    

    Printed
Name: David R.
Koos                            Printed
Name: David R. Koos

    

    Title:
CEO                                                            
 Title: CEO

     

     

     

    

    
      
         

      

      
        3

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