Document:

Exhibit
        10.31

      

      AGREEMENT

      

      THIS
        AGREEMENT (this “Agreement”) is made and effective as of March 17, 2008, by and
        between Cyberkinetics Neurotechnology Systems, Inc., a Delaware corporation
        (the
“Company”) and Mark A. Carney (“Mr. Carney”).

       

      RECITALS

      

      WHEREAS,
        the Company and Mr. Carney have agreed to terminate that certain Employment
        Agreement dated February 14, 2006 by and between the Company and Mr. Carney
        (the
“Employment Agreement”) and to modify the severance obligations of the Company
        pursuant to Section 5 of the Employment Agreement and enter a consulting
        arrangement as set forth herein;

       

      WHEREAS,
        the parties wish to memorialize their agreement pursuant to which the Employment
        Agreement shall be terminated and to which Mr. Carney shall receive certain
        consideration in receipt thereof, release the Company from its obligation
        to pay
        cash severance under the Employment Agreement, provide consulting services
        to
        the Company and otherwise to be obligated to the Company under the terms
        of this
        Agreement.

       

      NOW
        THEREFORE, in consideration of the mutual covenants herein contained, and
        other
        valuable consideration the receipt and sufficiency of which are hereby
        acknowledged, the parties hereto hereby agree as follows:

       

      1. TERMINATION
        OF EMPLOYMENT AGREEMENT. The Company and Mr. Carney hereby consent and agree
        that the Employment Agreement shall be terminated pursuant to Section 5(b)
        thereof as of the date hereof.

       

      2. SEVERANCE.
        The Company and Mr. Carney hereby consent and agree that the Company is hereby
        released of its obligation to pay any severance or benefits payable under
        the
        Employment Agreement in connection with its termination as set forth in Section
        1 above in exchange for the following:

       

      (a) The
        Company shall issue to Mr. Carney 650,000
        shares
        of the Company’s common stock, $0.001 par value per share (“Common Stock”),
        which
        shares
        of Common Stock which shall not be registered under the Securities Act of
        1933;

       

      (b) All
        outstanding unvested option shares held by Mr. Carney shall immediately vest
        upon the execution of this Agreement and such options shall be exercisable
        for a
        period of ninety (90) days following the termination of the Services Term
        (as
        defined below); 

       

      (c) The
        restrictions on all outstanding shares of restricted Common Stock issued
        to Mr.
        Carney on November 9, 2007 shall continue to lapse in accordance with their
        stated terms during the Services Term; 

       

      (d) During
        the Services Term, Mr. Carney shall continue to serve as a member of the
        board
        of directors of the Company and the Company’s steering committee representative
        to PNIR, LLC, subject to the Company’s, the board of director’s and the
        shareholders’ previously existing right and ability to remove Mr. Carney from
        such positions;

       

      (e) During
        the Services Term, the Company shall continue to pay Mr. Carney’s blackberry and
        phone card expenses consistent with past practice;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (f) For
        a
        period of twelve (12) months following the date of this Agreement, the Company
        shall pay Mr. Carney an amount in cash, in accordance with the payroll practices
        of the Company, equal to the amount expended by Mr. Carney in connection
        with
        (i) the purchase of life insurance equivalent to that provided by the Company
        during Mr. Carney’s employment and (ii) his election, to the extent allowed by
        law, to exercise applicable rights under the Consolidated Omnibus Budget
        Reconciliation Act of 1986 (“COBRA”) to maintain health and dental insurance
        coverage plus
        the
        amount of U.S. state and federal tax payable by Mr. Carney in connection
        with
        the receipt of such amount.

       

      3. TERMS
        OF
        ENGAGMENT. Subject to the terms and conditions set forth in this Agreement,
        the
        Company hereby offers and Mr. Carney hereby agrees to be engaged by the Company
        as a consultant as of the date hereof. Mr. Carney’s engagement, subject to
        earlier termination as hereafter provided, shall be for a term of six (6)
        months
        commencing on the date hereof (the “Services Term”). In the event that Mr.
        Carney and the Company wish to extend the Services Term, an amendment to
        this
        Agreement shall be executed in accordance with Section 20 hereof. 

       

      4. CAPACITY
        AND PERFORMANCE.

       

      (a) During
        the Services Term, Mr. Carney shall be engaged by the Company as in independent
        contractor and shall perform such duties and responsibilities on behalf of
        the
        Company as may reasonably be designated from time to time by the Company,
        consistent with Mr. Carney’s prior position of Executive Vice President
        (collectively, the “Services”).

       

      (b) During
        the Services Term, Mr. Carney shall devote no less than four, eight-hour
        days
        per month of his business time and his best efforts, business judgment, skill
        and knowledge to the advancement of the business and interests of the Company
        and to the discharge of his duties and responsibilities necessary to carry
        out
        the function of this engagement. 

       

      5. COMPENSATION
        AND EXPENSE REIMBURSEMENT. As compensation for all services performed by
        Mr.
        Carney under this Agreement and during the Services Term and
        subject
        to performance of Mr. Carney’s duties and obligations, pursuant to this
        Agreement or otherwise:

       

      (a) Compensation.
        During
        the Term hereof, the Company shall pay Mr. Carney SEVEN HUNDRED FIFTY DOLLARS
        ($750.00) per day, payable in accordance with the payroll practices of the
        Company, provided,
        however,
        that
        such amount shall increase to ONE THOUSAND FIVE HUNDRED DOLLARS ($1,500.00)
        per
        day if, during the Services Term, the Company receives a Humanitarian Device
        Exemption approval from the U.S. FDA for its Andara OFS device and successfully
        completes a financing that provides adequate financial reserves to operate
        the
        Company for a period of no less than twelve (12) months without the need
        for a
        subsequent financing. 

       

      (b) Expenses.
        The
        Company shall pay or reimburse Mr. Carney for all reasonable and necessary
        business expenses incurred or paid by Mr. Carney in the performance of his
        duties and responsibilities hereunder, subject to reasonable restrictions
        on
        such expenses set by the Company and to such reasonable substantiation and
        documentation in accordance with the policies and procedures of the
        Company.

       

      (c) Benefits;
        Expenses; Other Compensation. Except
        as
        expressly provided herein or required by law, the Company will not pay to
        Mr.
        Carney any benefits, expenses or other compensation.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6. RELATIONSHIP
        OF THE PARTIES.

       

      (a) Independent
        Contractor Status.
        Mr.
        Carney shall be an independent contractor. Mr. Carney shall act in accordance
        with this status and Mr. Carney shall not hold himself out as an officer
        or
        employee of the Company, nor shall Mr.
        Carney make any claim based on any right or privilege applicable to the
        Company’s employees. Under no circumstances shall Mr. Carney or Mr. Carney’s
        agents, if any, look to the Company as their employer, or as a partner, agent,
        or principal. 

       

      (b) Taxes.
        Mr.
        Carney shall pay, when and as due, any and all taxes incurred as a result
        of Mr.
        Carney’s compensation hereunder. Mr. Carney shall indemnify the Company for any
        claims, losses, costs, fees, liabilities, damages or injuries suffered by
        the
        Company arising out of Mr. Carney’s failure to pay any taxes due under this
        section.

       

      (c) Other
        Costs. Mr.
        Carney shall be directly responsible for all costs of self-employment, including
        social security liabilities, federal, state and local income tax payments
        for
        Mr. Carney. Mr. Carney also shall be directly responsible for all tax returns
        and reports required by any governmental body, including charges or premiums
        for
        F.I.C.A., unemployment insurance and other taxes (including penalties and
        interest).

       

      7. REPRESENTATIONS.

       

      (a) Capacity.
        Mr.
        Carney possesses the capacity to enter into this Agreement.

       

      (b) Compliance
        with Law; Company Policies.
        Mr.
        Carney will comply with all applicable federal and state laws and regulations,
        as well as all applicable policies of the Company, relating to the performance
        of the Services under this Agreement.

       

      (c) No
        Conflicts.
        Mr.
        Carney hereby represents and warrants that the execution of this Agreement
        and
        the performance of his obligations hereunder will not be in breach or be
        in
        conflict with any other agreement to which Mr. Carney is a party or is bound
        and
        that Mr. Carney is not subject to any covenants against competition or similar
        covenants that would affect the performance of his obligations hereunder.
        Mr.
        Carney will not disclose or use any proprietary information of a third party
        without such party's consent.

       

      8. OWNERSHIP
        OF WORK PRODUCT. Mr.
        Carney understands the Company does not desire to acquire from Mr. Carney
        any
        trade secrets, know-how or confidential information that Mr. Carney may have
        acquired from others or which may have been developed or acquired by Mr.
        Carney
        outside the scope of his prior employment by the Company. Mr. Carney expressly
        understands and agrees that any and all right or interest Mr. Carney obtains
        in
        any designs, trade secrets, technical specifications and technical data,
        know-how and show-how, customer and vendor lists, marketing plans, pricing
        policies, inventions, concepts, ideas, expressions, discoveries, improvements
        and patent or patent rights which are authored, conceived, devised, developed,
        reduced to practice, or otherwise obtained by Mr. Carney within the scope
        of his
        engagement with the Company and during Mr. Carney’s engagement with the Company
        which relate to, result from, and arise out of Mr. Carney’s relationship with
        the Company are expressly regarded as “works for hire”, as that term is defined
        in United States Copyright Act (17 U.S.C. Section 101) or works invented
        or
        authored within the scope of employment (the “Inventions”). Mr. Carney hereby
        assigns to the Company the sole and exclusive right to such Inventions. Mr.
        Carney agrees to promptly disclose to the Company any and all such Inventions,
        and that, upon request of the Company, Mr. Carney will execute and deliver
        any
        and all documents or instruments and take any other action which the Company
        shall deem necessary to assign to and vest completely in the Company, to
        perfect
        trademark, copyright and patent protection with respect to, or to otherwise
        protect the Company’s trade secrets and proprietary interest in such Inventions.
        The obligations of this Section shall continue beyond the termination of
        Mr.
        Carney’s relationship with respect to such Inventions conceived of, reduced to
        practice, or developed by Mr. Carney during the Services Term and within
        the
        scope of his prior employment by the Company. The Company agrees to pay any
        and
        all copyright, trademark and patent fees and expenses or other costs incurred
        by
        Mr. Carney for any assistance rendered to the Company pursuant to this Section.
        

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      9. NON-DISCLOSURE.

       

      (a) For
        purposes of this Section 9, “the
        Company”
shall
        include any affiliates of the Company.

       

      (b) As
        used
        herein, “Company
        Confidential Information”
shall
        mean all intellectual property and other proprietary information of the Company,
        including without limitation:

       

      
        	 	
                (i)

              	
                the
                  Company’s business methods and
                  practices;

              

      

       

      
        	 	
                (ii)

              	
                databases
                  and information used in the Company’s
                  business;

              

      

       

      
        	 	
                (iii)

              	
                the
                  names
                  of
                  the Company’s suppliers and customers and the nature of their relationship
                  with the Company;

              

      

       

      
        	 	
                (iv)

              	
                the
                  business information and requirements of the Company’s
                  customers;

              

      

       

      
        	 	
                (v)

              	
                confidential,
                  proprietary or trade secret information submitted to the Company
                  by the
                  Company’s customers,
                  suppliers, employees, consultants or co-venturers;
                  and

              

      

       

      
        	 	
                (vi)

              	
                any
                  other information including, but not limited to, trade secrets
                  or
                  confidential information
                  with respect
                  to
                  inventions, products, designs, methods, know-how, techniques,
                  systems, processes, software programs, works of authorship, customer
                  lists, projects, plans, pricing and
                  proposals;

              

      

       

      (c) Mr.
        Carney will not at any time, whether during or after the termination of his
        relationship, for any reason whatsoever, reveal to any person or entity (both
        commercial and non-commercial) any of the trade secrets or Company Confidential
        Information, without limitation, its research and development activities;
        inventions, processes, formulae, data, chemical composition, chemical or
        natural
        compounds now existing or under development, improvements, discoveries,
        developments, product designs, prototypes and technical specifications;
        algorithms, trade secrets or technical data; show-how and know-how; marketing
        plans and strategies; pricing and costing policies; customer and supplier
        lists
        and accounts; or nonpublic financial information of the Company so far as
        they
        have come or may come to Mr. Carney’s knowledge, except as may be required in
        the ordinary course of performing his duties as an employee or consultant
        of the
        Company. This restriction shall not
        apply
        to: (i) information that is in the public domain through no fault of Mr.
        Carney;
        (ii) information received from a third party outside the Company that was
        disclosed without a breach of any confidentiality obligation; (iii) information
        approved for release by written authorization of the Company; or (iv)
        information that may be required by law or an order of any court, agency
        or
        proceeding to be disclosed. Mr. Carney shall keep secret all matters of such
        nature entrusted to Mr. Carney and shall not use or disclose any such
        information for the benefit of any third party in any manner which may injure
        or
        cause loss to the Company, whether directly or indirectly.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      10. NONCOMPETITION
        AND NONSOLICITATION.

       

      During
        the Services Term and for a period equal to twelve (12) months following
        termination of this Agreement, however caused, Mr. Carney shall not, without
        the
        prior written consent of the Company, which consent will not be unreasonably
        withheld or delayed:

       

      (a) For
        himself or on behalf of any other person or entity, directly or indirectly,
        either as principal, agent, stockholder, employee, consultant, representative
        or
        in any other capacity, own, manage, operate or control, or be connected or
        employed by, or otherwise associate in any manner with, engage in or have
        a
        financial interest in any business which is directly or indirectly competitive
        with the Company’s Business (as defined below), or any of its affiliates, except
        that nothing contained herein shall preclude Mr. Carney from
        (i)
        purchasing or owning stock in any such business if such stock is publicly
        traded,
        or (ii)
        acting as a partner, principal, member, shareholder, officer, director or
        employee of one or more venture capital or private equity funds(or its general
        partner, managing member or management company)
        regardless of the investments of any such venture capital or private equity
        funds.

       

      (b) Either
        individually or on behalf of or through any third party, solicit, divert
        or
        appropriate or attempt to solicit, divert or appropriate, for the purpose
        of
        competing with the Company or any present or future parent, subsidiary or
        other
        affiliate of the Company which is engaged in a similar business as the Company’s
        Business, any customers or patrons of the Company, or any prospective customers
        or patrons with respect to which the Company has developed or made a sales
        presentation (or similar offering of services).

       

      (c) Either
        individually or on behalf of or through any third party, directly or indirectly,
        solicit, entice or persuade or attempt to solicit, entice or persuade any
        other
        employees of or consultants to the Company within the immediately preceding
        twelve (12) month period or any affiliate of the Company to leave the services
        of the Company or any affiliate for any reason.

       

      (d) For
        purposes of this Section 10, the Company’s business (“Business”) shall mean
        researching, developing or commercializing therapeutic and diagnostic devices
        and drugs for the diagnosis and treatment of nervous system injury and disease;
        provided,
        however,
        that the
        term “Business” shall be deemed amended to reflect any change in the Company’s
        Business after the date of this Agreement but prior to the termination of
        Mr.
        Carney’s engagement with the Company. A business will be deemed to be
        competitive with the Company if it is engaged in a business substantially
        similar, in whole or in part, to the Company’s Business.

       

      11. ASSIGNMENT/SUBCONTRACT.
        Mr.
        Carney may not assign or subcontract his obligations under this Agreement.
        

       

      12. TERMINATION

       

      (a) The
        Company may terminate Mr. Carney’s service under this Agreement with Cause (as
        defined below) at any time during the Services Term.

       

      (b) For
        purposes of this Agreement, the Company shall have Cause to terminate Mr.
        Carney’s service under this Agreement if Mr. Carney:

       

      
        	 	
                (i)

              	
                is
                  convicted of any crime or offense;

              

      

       

      
        	 	
                (ii)

              	
                fails
                  or refuses to comply with the written policies or reasonable directives
                  of
                  the Company after notice from the Company and a reasonable opportunity
                  to
                  cure the failure or refusal;

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	 	
                (iii)

              	
                commits
                  any act of willful dishonesty, or breach of fiduciary duty with
                  respect to
                  any aspect of the Company’s or any affiliate’s
                  business;

              

      

       

      
        	 	
                (iv)

              	
                is
                  guilty of misconduct in connection with his performance hereunder;
                  or

              

      

       

      
        	 	
                (v)

              	
                materially
                  breaches this Agreement and fails to cure such breach in a reasonable
                  period of time after written notice of such breach from the
                  Company.

              

      

       

      (c) If
        Mr.
        Carney’s services under this Agreement is terminated by the Company for Cause,
        then (i) the Company shall have no further obligations hereunder with respect
        to
        payment for services accruing from and after the effective date of termination
        and shall have all other rights and remedies available under this or any
        other
        agreement and at law or in equity;
        and
        (ii) any
        restricted stock held by Mr. Carney
        (for
        which all restrictions have not lapsed)
        shall be
        repurchased by the Company at par value. Notwithstanding the foregoing, the
        Company shall promptly pay to the Mr. Carney on the effective termination
        date
        any and all amounts then owed to Mr. Carney pursuant to this Agreement. In
        addition, Mr. Carney shall also be entitled to reimbursement of any reimbursable
        business expenses which were incurred by Mr. Carney through and including
        the
        date of termination, which shall be paid by the Company in accordance with
        the
        Company’s expense reimbursement policy. The Executive shall be entitled to
        convert the Life Insurance into an individual policy.

       

      (d) Mr.
        Carney’s services under this Agreement will terminate automatically on the
        occurrence of the death
        or
        disability of Mr. Carney.

       

      (e) Upon
        termination of Mr. Carney’s services under this Agreement, Mr. Carney will
        immediately deliver to the Company all records, notes, data, memoranda, work
        product and equipment in his possession that are the property of the Company,
        including any documentation relating to the Services.

       

      13. ENTIRE
        AGREEMENT. This
        Agreement constitutes the entire understanding between the parties hereto
        with
        reference to the subject matter of this Agreement and shall not be changed
        or
        modified except by a written instrument signed by both parties. The parties
        agree that all other non competition, confidentiality, non solicitation and
        other similar agreements between the Company (or any of its affiliates) and
        Mr.
        Carney are hereby terminated and shall not be of any further force and effect.
        This Agreement may be executed in any number of counterparts which together
        shall constitute one instrument.

       

      14. SEVERABILITY.
        If
        any
        provision in this Agreement is found by a court of competent jurisdiction
        to be
        invalid or unenforceable, the remaining provisions in this Agreement shall
        continue in full force and effect.

       

      15. EQUITABLE
        REMEDIES.
        Mr.
        Carney acknowledges that the Services are personal and unique to Mr. Carney
        and
        that any breach of this agreement by Mr. Carney will cause irreparable harm
        to
        the Company. Accordingly, the Company shall have the right to enforce this
        Agreement and any of its provisions by injunction or other equitable relief,
        without bond and without prejudice to any other rights and remedies that
        the
        Company may have for a breach of this Agreement.

       

      16. INTERPRETATION.
        Captions
        of the sections of this Agreement are for reference purpose only and do not
        constitute terms or conditions hereof. The parties acknowledge that they
        have
        thoroughly reviewed this Agreement and bargained over its terms. Accordingly,
        neither party shall be considered responsible for the preparation of this
        Agreement, which shall be deemed to have been prepared jointly by both parties.
        The provisions of the Agreement allocate the risks between the parties. The
        terms and conditions included herein reflect this allocation of risk, and
        each
        provision herein is part of the bargained-for consideration of this
        Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      17. WAIVER.
        No waiver of any provision hereof shall be effective unless made in writing
        and
        signed by the waiving party. The failure of either party to require the
        performance of any term or obligation of this Agreement, or the waiver by
        either
        party of any breach of this Agreement, shall not prevent any subsequent
        enforcement of such term or obligation or be deemed a waiver of any subsequent
        breach.

       

      18. NOTICES.
        Any and all notices, requests, demands and other communications provided
        for by
        this Agreement shall be in writing and shall be effective when delivered
        in
        person or deposited in the United States mail, postage prepaid, registered
        or
        certified, and addressed to Mr. Carney at his last known address on the records
        of the Company or, in the case of the Company, at the Company's principal
        place
        of business, to the attention of the Chief Executive Officer, or to such
        other
        address as either party may specify by notice to the other actually
        received.

       

      19. AMENDMENT.
        This Agreement may be amended or modified only by a written instrument signed
        by
        Mr. Carney and by an expressly authorized representative of the
        Company.

       

      20. COUNTERPARTS.
        This Agreement may be executed in two or more counterparts, each of which
        shall
        be an original and all of which together shall constitute one and the same
        instrument.

       

      21. GOVERNING
        LAW / CONSENT TO JURISDCTION. This Agreement shall be governed by and construed
        under the laws of the Commonwealth
        of Massachusetts without regard to the conflicts of laws principles
        thereof.
        

       

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

      
        	 	 	 
	 	
                CYBERKINETICS
                  NEUROTECHNOLOGY SYSTEMS, INC.

              
	 
 	 
 	 
 
	
              	By:  	/s/
                Timothy R. Surgenor 
	 	
                
Name:
                Timothy R. Surgenor  
	 	
                Its:
                   President
                  and Chief Executive
                  Officer

              

      

       

      
        	 	 	 
	
              	
              	/s/
                Mark
                A. Carney  
	 	
                
Name:
Mark
                A. CarneyExhibit
      10.32

     

    AGREEMENT

    

    THIS
      AGREEMENT ( “Agreement”) is made and effective as of March 17, 2008, by and
      between Cyberkinetics Neurotechnology Systems, Inc., a Delaware corporation
      (the
“Company”) and Kurt H. Kruger (“Mr. Kruger”).

     

    RECITALS

    

    WHEREAS,
      the Company and Mr. Kruger have agreed to terminate that certain Employment
      Agreement dated September 18, 2006 by and between the Company and Mr. Kruger
      (the “Employment Agreement”) and to modify the severance obligations of the
      Company pursuant to Section 5 of the Employment Agreement and enter a consulting
      arrangement as set forth herein;

     

    WHEREAS,
      the parties wish to memorialize their agreement pursuant to which the Employment
      Agreement shall be terminated and to which Mr. Kruger shall receive certain
      consideration in receipt thereof, release the Company from its obligation to
      pay
      cash severance under the Employment Agreement, provide consulting services
      to
      the Company and otherwise to be obligated to the Company under the terms of
      this
      Agreement.

     

    NOW
      THEREFORE, in consideration of the mutual covenants herein contained, and other
      valuable consideration the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    1. TERMINATION
      OF EMPLOYMENT AGREEMENT. The Company and Mr. Kruger hereby consent and agree
      that the Employment Agreement shall be terminated pursuant to Section 5(b)
      thereof as of the date hereof.

     

    2. SEVERANCE.
      The Company and Mr. Kruger hereby consent and agree that the Company is hereby
      released of its obligation to pay any severance or benefits payable under the
      Employment Agreement in connection with its termination as set forth in Section
      1 above in exchange for the following:

     

    (a) The
      Company shall issue to Mr. Kruger 325,000 shares of the Company’s common stock,
      $0.001 par value per share (“Common Stock”), which shares shall not be
      registered under the Securities Act of 1933, as amended. 

     

    (b) The
      Company shall issue to Mr. Kruger 325,000 restricted shares of Common Stock,
      which restricted shares shall not be registered under the Securities Act of
      1933, as amended, and which restricted shares shall vest and the restrictions
      thereon shall lapse upon the earlier to occur of (i) any sale, merger or other
      transaction resulting in a change in control of the Company; or (ii) the date
      on
      which the U.S. Food and Drug Administration (FDA) approves, conditionally
      approves or makes known its intent to approve or conditionally approve the
      Company’s application for humanitarian device exemption (HDE) for its Andara OFS
      Therapy for spinal cord injury, as long as Mr. Kruger continues to be engaged
      by
      the Company on such vesting date under the terms and conditions of this
      Agreement (or another agreement mutually agreed upon);

     

    (c) All
      outstanding unvested option shares held by Mr. Kruger shall immediately vest
      upon the execution of this Agreement and such options shall be exerciseable
      for
      a period of ninety (90) days following the termination of the Services Term
      (as
      defined below); 

     

    (d) The
      restrictions on all outstanding shares of restricted Common Stock issued to
      Mr.
      Kruger on September 18, 2006 shall immediately lapse on the execution of this
      Agreement; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) For
      a
      period of twelve (12) months following the date of this Agreement, the Company
      shall pay Mr. Kruger an amount in cash, in accordance with the payroll practices
      of the Company, equal to the amount expended by Mr. Kruger in connection with
      (i) the purchase of life insurance equivalent to that provided by the Company
      during Mr. Kruger’s employment and (ii) his election, to the extent allowed by
      law, to exercise applicable rights under the Consolidated Omnibus Budget
      Reconciliation Act of 1986 (“COBRA”) to maintain health and dental insurance
      coverage plus
      the
      amount of U.S. state and federal tax payable by Mr. Kruger in connection with
      the receipt of such amount. 

     

    3. TERMS
      OF
      ENGAGMENT. Subject to the terms and conditions set forth in this Agreement,
      the
      Company hereby offers and Mr. Kruger hereby agrees to be engaged by the Company
      as a consultant as of the date hereof. Mr. Kruger’s engagement, subject to
      earlier termination as hereafter provided, shall be for a term of seven (7)
      months commencing on the date hereof (the “Services Term”). In the event that
      Mr. Kruger and the Company wish to extend the Services Term, an amendment to
      this Agreement shall be executed in accordance with Section 20
      hereof.

     

    4. CAPACITY
      AND PERFORMANCE.

     

    (a) During
      the Services Term, Mr. Kruger shall be engaged by the Company as in independent
      contractor and shall perform such duties and responsibilities on behalf of
      the
      Company as may reasonably be designated from time to time by the Company,
      consistent with Mr. Kruger’s prior position of Chief Financial Officer
      (collectively, the “Services”).

     

    (b) During
      the Services Term, Mr. Kruger shall devote no less than sixty-four hours per
      month during the first month, no less than thirty-two hours per month during
      the
      second month, and thereafter on an as-needed basis, of his business time and
      his
      best efforts, business judgment, skill and knowledge to the advancement of
      the
      business and interests of the Company and to the discharge of his duties and
      responsibilities necessary to carry out the function of this engagement.

     

    5. COMPENSATION
      AND EXPENSE REIMBURSEMENT. As compensation for all services performed by Mr.
      Kruger under this Agreement and during the Services Term and
      subject
      to performance of Mr. Kruger’s duties and obligations, pursuant to this
      Agreement or otherwise:

     

    (a) Compensation.
      During
      the Term hereof, the Company shall pay Mr. Kruger NINETY-FIVE DOLLARS ($95.00)
      per hour, payable in accordance with the payroll practices of the Company;
      and

     

    (b) Expenses.
      The
      Company shall pay or reimburse Mr. Kruger for all reasonable and necessary
      business expenses incurred or paid by Mr. Kruger in the performance of his
      duties and responsibilities hereunder, subject to prior written approval and
      any
      other reasonable restrictions on such expenses set by the Company and to such
      reasonable substantiation and documentation in accordance with the policies
      and
      procedures of the Company.

     

    (c) Benefits;
      Expenses; Other Compensation. Except
      as
      expressly provided herein, the Company will not pay to Mr. Kruger any benefits,
      expenses or other compensation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6. RELATIONSHIP
      OF THE PARTIES.

     

    (a) Independent
      Contractor Status.
      Mr.
      Kruger shall be an independent contractor. Mr. Kruger shall act in accordance
      with this status and Mr. Kruger shall not hold himself out as an officer or
      employee of the Company, nor shall Mr.
      Kruger make any claim based on any right or privilege applicable to the
      Company’s employees. Under no circumstances shall Mr. Kruger or Mr. Kruger’s
      agents, if any, look to the Company as their employer, or as a partner, agent,
      or principal. 

     

    (b) Taxes.
      Mr.
      Kruger shall pay, when and as due, any and all taxes incurred as a result of
      Mr.
      Kruger’s compensation hereunder. Mr. Kruger shall indemnify the Company for any
      claims, losses, costs, fees, liabilities, damages or injuries suffered by the
      Company arising out of Mr. Kruger’s failure to pay any taxes due under this
      section.

     

    (c) Other
      Costs. Mr.
      Kruger shall be directly responsible for all costs of self-employment, including
      social security liabilities, federal, state and local income tax payments for
      Mr. Kruger. Mr. Kruger also shall be directly responsible for all tax returns
      and reports required by any governmental body, including charges or premiums
      for
      F.I.C.A., unemployment insurance and other taxes (including penalties and
      interest).

     

    7. REPRESENTATIONS.

     

    (a) Capacity.
      Mr.
      Kruger possesses the capacity to enter into this Agreement.

     

    (b) Compliance
      with Law; Company Policies.
      Mr.
      Kruger will comply with all applicable federal and state laws and regulations,
      as well as all applicable policies of the Company, relating to the performance
      of the Services under this Agreement and will hold the Company harmless from
      any
      loss or damage caused by his breach of such requirements.

     

    (c) No
      Conflicts.
      Mr.
      Kruger hereby represents and warrants that the execution of this Agreement
      and
      the performance of his obligations hereunder will not be in breach or be in
      conflict with any other agreement to which Mr. Kruger is a party or is bound
      and
      that Mr. Kruger is not subject to any covenants against competition or similar
      covenants that would affect the performance of his obligations hereunder. Mr.
      Kruger will not disclose or use any proprietary information of a third party
      without such party's consent.

     

    8. OWNERSHIP
      OF WORK PRODUCT. Mr.
      Kruger understands the Company does not desire to acquire from Mr. Kruger any
      trade secrets, know-how or confidential information that Mr. Kruger may have
      acquired from others or which may have been developed or acquired by Mr. Kruger
      outside the scope of his prior employment by the Company. Mr. Kruger expressly
      understands and agrees that any and all right or interest Mr. Kruger obtains
      in
      any designs, trade secrets, technical specifications and technical data,
      know-how and show-how, customer and vendor lists, marketing plans, pricing
      policies, inventions, concepts, ideas, expressions, discoveries, improvements
      and patent or patent rights which are authored, conceived, devised, developed,
      reduced to practice, or otherwise obtained by Mr. Kruger within the scope of
      his
      engagement with the Company and during Mr. Kruger’s engagement with the Company
      which relate to, result from, and arise out of Mr. Kruger’s relationship with
      the Company are expressly regarded as “works for hire”, as that term is defined
      in United States Copyright Act (17 U.S.C. Section 101) or works invented or
      authored within the scope of employment (the “Inventions”). Mr. Kruger hereby
      assigns to the Company the sole and exclusive right to such Inventions. Mr.
      Kruger agrees to promptly disclose to the Company any and all such Inventions,
      and that, upon request of the Company, Mr. Kruger will execute and deliver
      any
      and all documents or instruments and take any other action which the Company
      shall deem necessary to assign to and vest completely in the Company, to perfect
      trademark, copyright and patent protection with respect to, or to otherwise
      protect the Company’s trade secrets and proprietary interest in such Inventions.
      The obligations of this Section shall continue beyond the termination of Mr.
      Kruger’s relationship with respect to such Inventions conceived of, reduced to
      practice, or developed by Mr. Kruger during the term of this Agreement and
      within the scope of employment by the Company. The Company agrees to pay any
      and
      all copyright, trademark and patent fees and expenses or other costs incurred
      by
      Mr. Kruger for any assistance rendered to the Company pursuant to this Section.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.
      NON-DISCLOSURE.

     

    (a) For
      purposes of this Section 9,
      “the
      Company”
shall
      include any affiliates of the Company.

     

    (b) As
      used
      herein, “Company
      Confidential Information”
shall
      mean all intellectual property and other proprietary information of the Company,
      including without limitation:

     

    
      	 	
              (i)

            	
              the
                Company’s business methods and
                practices;

            

    

     

    
      	 	
              (ii)

            	
              databases
                and information used in the Company’s
                business;

            

    

     

    
      	 	
              (iii)

            	
              the
                names
                of
                the Company’s suppliers and customers and the nature of their relationship
                with the Company;

            

    

     

    
      	 	
              (iv)

            	
              the
                business information and requirements of the Company’s
                customers;

            

    

     

    
      	 	
              (v)

            	
              confidential,
                proprietary or trade secret information submitted to the Company
                by the
                Company’s customers,
                suppliers, employees, consultants or co-venturers;
                and

            

    

     

    
      	 	
              (vi)

            	
              any
                other information including, but not limited to, trade secrets or
                confidential information
                with respect
                to
                inventions, products, designs, methods, know-how, techniques,
                systems, processes, software programs, works of authorship, customer
                lists, projects, plans, pricing and
                proposals;

            

    

     

    (c) Mr.
      Kruger will not at any time, whether during or after the termination of its
      relationship, for any reason whatsoever, reveal to any person or entity (both
      commercial and non-commercial) any of the trade secrets or Company Confidential
      Information, without limitation, its research and development activities;
      inventions, processes, formulae, data, chemical composition, chemical or natural
      compounds now existing or under development, improvements, discoveries,
      developments, product designs, prototypes and technical specifications;
      algorithms, trade secrets or technical data; show-how and know-how; marketing
      plans and strategies; pricing and costing policies; customer and supplier lists
      and accounts; or nonpublic financial information of the Company so far as they
      have come or may come to Mr. Kruger’s knowledge, except as may be required in
      the ordinary course of performing his duties as an employee or consultant of
      the
      Company. This restriction shall not
      apply
      to: (i) information that is in the public domain through no fault of Mr. Kruger;
      (ii) information received from a third party outside the Company that was
      disclosed without a breach of any confidentiality obligation; (iii) information
      approved for release by written authorization of the Company; or (iv)
      information that may be required by law or an order of any court, agency or
      proceeding to be disclosed. Mr. Kruger shall keep secret all matters of such
      nature entrusted to Mr. Kruger and shall not use or disclose any such
      information for the benefit of any third party in any manner which may injure
      or
      cause loss to the Company, whether directly or indirectly.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10. NONCOMPETITION
      AND NONSOLICITATION.

     

    During
      the Services Term and for a period equal to twelve (12) months following
      termination of this Agreement, however caused, Mr. Kruger shall not, without
      the
      prior written consent of the Company,
      which
      consent will not be unreasonably withheld or delayed:

     

    (a) For
      himself or on behalf of any other person or entity, directly or indirectly,
      either as principal, agent, stockholder, employee, consultant, representative
      or
      in any other capacity, own, manage, operate or control, or be connected or
      employed by, or otherwise associate in any manner with, engage in or have a
      financial interest in any business which is directly or indirectly competitive
      with the Company’s Business (as defined below), or any of its affiliates, except
      that nothing contained herein shall preclude Mr. Kruger from (i) purchasing
      or
      owning stock in any such business if such stock is publicly traded
      or (ii)
      acting as a partner, principal, member, shareholder, officer, director or
      employee of one or more venture capital or private equity funds(or its general
      partner, managing member or management company) regardless of the investments
      of
      any such venture capital or private equity funds.

     

    (b) Either
      individually or on behalf of or through any third party, solicit, divert or
      appropriate or attempt to solicit, divert or appropriate, for the purpose of
      competing with the Company or any present or future parent, subsidiary or other
      affiliate of the Company which is engaged in a similar business as the Company’s
      Business, any customers or patrons of the Company, or any prospective customers
      or patrons with respect to which the Company has developed or made a sales
      presentation (or similar offering of services).

     

    (c) Either
      individually or on behalf of or through any third party, directly or indirectly,
      solicit, entice or persuade or attempt to solicit, entice or persuade any other
      employees of or consultants to the Company within the immediately preceding
      twelve (12) month period or any affiliate of the Company to leave the services
      of the Company or any affiliate for any reason.

     

    (d) For
      purposes of this Section 10,
      the
      Company’s business (“Business”) shall mean researching, developing or
      commercializing therapeutic and diagnostic devices and drugs for the diagnosis
      and treatment of nervous system injury and disease; provided,
      however,
      that the
      term “Business” shall be deemed amended to reflect any change in the Company’s
      Business after the date of this Agreement but prior to the termination of Mr.
      Kruger’s engagement with the Company. A business will be deemed to be
      competitive with the Company if it is engaged in a business substantially
      similar, in whole or in part, to the Company’s Business.

     

    11. INDEMNIFICATION.
      Mr.
      Kruger will indemnify and hold the Company harmless from all claims, losses,
      expenses, fees (including, without limitation, attorneys’ fees), costs and
      judgments that may be asserted against the Company as a result of any act or
      omission of Mr. Kruger in the performance by him of the Services under this
      Agreement, unless said act or omission was authorized by the Company or resulted
      directly or indirectly from any cause beyond the reasonable control of Mr.
      Kruger. 

     

    12. ASSIGNMENT/SUBCONTRACT.
      Mr.
      Kruger may not assign or subcontract his obligations under this Agreement.
      

     

    13. TERMINATION

     

    (a) The
      Company may terminate Mr. Kruger’s service under this Agreement with Cause (as
      defined below) at any time during the Services Term.

     

    (b) For
      purposes of this Agreement, the Company shall have Cause to terminate Mr.
      Kruger’s service under this Agreement if Mr. Kruger:

     

    
      	 	
              (i)

            	
              is
                convicted of any crime or offense;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              fails
                or refuses to comply with the written policies or reasonable directives
                of
                the Company;

            

    

     

    
      	 	
              (iii)

            	
              commits
                any act of willful disloyalty, dishonesty, or breach of fiduciary
                duty
                with respect to any aspect of the Company’s or any affiliate’s
                business;

            

    

     

    
      	 	
              (iv)

            	
              is
                guilty of misconduct in connection with his performance hereunder;
                or

            

    

     

    
      	 	
              (v)

            	
              materially
                breaches this Agreement.

            

    

     

    (c) If
      this
      Agreement is terminated by the Company for Cause, then (i) the Company shall
      have no further obligations hereunder accruing from and after the effective
      date
      of termination and shall have all other rights and remedies available under
      this
      or any other agreement and at law or in equity; and (ii) any unvested options
      held by Mr. Kruger shall immediately expire and any restricted stock held (for
      which all restrictions have not lapsed) by Mr. Kruger shall be repurchased
      by
      the Company at par value. Notwithstanding the foregoing, the Company shall
      promptly pay to the Mr. Kruger on the effective termination date any and all
      amounts then owed to Mr. Kruger pursuant to this Agreement. In addition, Mr.
      Kruger shall also be entitled to reimbursement of any reimbursable business
      expenses which were incurred by Mr. Kruger through and including the date of
      termination, which shall be paid by the Company in accordance with the Company’s
      expense reimbursement policy. The Executive shall be entitled to convert the
      Life Insurance into an individual policy.

     

    (d) This
      Agreement will terminate automatically on the occurrence of the death
      or
      disability of Mr. Kruger.

     

    (e) Upon
      termination of this Agreement, Mr. Kruger will immediately deliver to the
      Company all records, notes, data, memoranda, work product and equipment in
      his
      possession that are the property of the Company, including any documentation
      relating to the Services.

     

    14. ENTIRE
      AGREEMENT. This
      Agreement constitutes the entire understanding between the parties hereto with
      reference to the subject matter of this Agreement and shall not be changed
      or
      modified except by a written instrument signed by both parties. This Agreement
      may be executed in any number of counterparts which together shall constitute
      one instrument.

     

    15. SEVERABILITY.
      If
      any
      provision in this Agreement is found by a court of competent jurisdiction to
      be
      invalid or unenforceable, the remaining provisions in this Agreement shall
      continue in full force and effect.

     

    16. EQUITABLE
      REMEDIES.
      Mr.
      Kruger acknowledges that the Services are personal and unique to Mr. Kruger
      and
      that any breach of this agreement by Mr. Kruger will cause irreparable harm
      to
      the Company. Accordingly, the Company shall have the right to enforce this
      Agreement and any of its provisions by injunction or other equitable relief,
      without bond and without prejudice to any other rights and remedies that the
      Company may have for a breach of this Agreement.

     

    17. INTERPRETATION. Captions
      of the sections of this Agreement are for reference purpose only and do not
      constitute terms or conditions hereof. The parties acknowledge that they have
      thoroughly reviewed this Agreement and bargained over its terms. Accordingly,
      neither party shall be considered responsible for the preparation of this
      Agreement, which shall be deemed to have been prepared jointly by both parties.
      The provisions of the Agreement allocate the risks between the parties. The
      terms and conditions included herein reflect this allocation of risk, and each
      provision herein is part of the bargained-for consideration of this
      Agreement.

     

    18. WAIVER.
      No waiver of any provision hereof shall be effective unless made in writing
      and
      signed by the waiving party. The failure of either party to require the
      performance of any term or obligation of this Agreement, or the waiver by either
      party of any breach of this Agreement, shall not prevent any subsequent
      enforcement of such term or obligation or be deemed a waiver of any subsequent
      breach.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    19. NOTICES.
      Any and all notices, requests, demands and other communications provided for
      by
      this Agreement shall be in writing and shall be effective when delivered in
      person or deposited in the United States mail, postage prepaid, registered
      or
      certified, and addressed to Mr. Kruger at his last known address on the records
      of the Company or, in the case of the Company, at the Company's principal place
      of business, to the attention of the Chief Executive Officer, or to such other
      address as either party may specify by notice to the other actually
      received.

     

    20. AMENDMENT.
      This Agreement may be amended or modified only by a written instrument signed
      by
      Mr. Kruger and by an expressly authorized representative of the
      Company.

     

    21. COUNTERPARTS.
      This Agreement may be executed in two or more counterparts, each of which shall
      be an original and all of which together shall constitute one and the same
      instrument.

     

    22. GOVERNING
      LAW / CONSENT TO
      JURISDCTION. This Agreement shall be governed by and construed under the laws
      of
      the Commonwealth
      of Massachusetts without regard to the conflicts of laws principles
      thereof.
      Each
      party hereto irrevocably and unconditionally consents to submit to the
      jurisdiction and venue of the state and federal courts of Norfolk
      County Massachusetts
      with
      respect to any litigation arising out of, or related to, this agreement and
      the
      transactions contemplated hereby, and agrees not to commence any litigation
      relating thereto except in the state and federal courts of Norfolk
      County,
Massachusetts,
      and
      further agrees that service of any process, summons, notice or document by
      U.S.
      mail, first-class, postage prepaid, shall be effective service of process for
      any litigation brought against it in said court. Each of the parties hereby
      irrevocably and unconditionally waives any objection to the laying of venue
      of
      any litigation arising out of this agreement or the transactions contemplated
      hereby, in the state and federal courts of Norfolk
      County,
      Massachusetts,
      and
      hereby further irrevocably and unconditionally waives and agrees not to plead
      or
      claim in any such court that any such litigation brought in any such court
      has
      been brought in an inconvenient forum.

    

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

     

    
      	 	 	 
	 	CYBERKINETICS
              NEUROTECHNOLOGY SYSTEMS, INC.
	 
 	 
 	 
 
	
            	By:  	/s/
              Timothy R. Surgenor
	 	
              
Name:
Timothy
              R. Surgenor
	 	Its:
              President
              and Chief Executive Officer

    

     

    
      	 	 	 	 
	
            	 	 	/s/
              Kurt H.
              Kruger
	
            	 	 	
              
Name:
Kurt
              H. Kruger

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