Document:

PRIVATE
      AND CONFIDENTIAL

     

    October
      15, 2005

    

    J.D.
      Group, LLC

    1259
      Western Avenue

    Westfield,
      MA 01085

     

    Re:
      Business
      Advisory Services

    

    Dear
      Mr.
      Davies:

    

    This
      letter agreement (“Agreement”) confirms the terms upon which Neuralstem, Inc.
      (the “Company”), engages The J.D. Group, LLC (“Consultant”), to provide business
      advisory services to the Company.

    

    This
      Agreement will be deemed to be effective as of October 15, 2005.

     

    1. Scope
      of Engagement.
      The
      Company hereby engages (the “Engagement”) Consultant as its non-exclusive
      business advisor to provide advisory services regarding strategic business
      development, the identification and recruiting of perspective board members,
      and
      the identification of strategic partners and related services (collectively,
      “services”). The Company has the unequivocal right to engage other companies to
      provide similar and other advisory services.

    

    2. Scope
      of Work.
      In
      connection with the Engagement, Consultant will: (i) familiarize itself to
      the
      extent it deems appropriate, or as otherwise reasonably requested by the
      Company, with the business, operations, financial condition and prospects of
      the
      Company; (ii) identify possible board candidates; (iii) identify possible
      strategic partners or acquisition targets and (iv) perform such other advisory
      services within the scope of this engagement as the Company or its board of
      directors shall reasonably request.

    

    3. Company
      Responsibilities, Representations and Warranties.
      

    

    (a)
      In
      connection with the Engagement:

    

    (i) The
      Company agrees to use commercially reasonable efforts to cooperate with
      Consultant and will furnish to Consultant all information and data concerning
      the Company (the “Information”) which Consultant and the Company reasonably deem
      appropriate for purposes of Consultant’s rendering of its services hereunder,
      and will provide Consultant reasonable access to the Company’s officers,
      directors, employees, contractors, consultants, representatives and advisors
      during normal business hours of operation applicable to such persons and subject
      to all applicable confidentiality restrictions;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (ii) The
      Company represents and warrants to Consultant that all information included
      or
      incorporated by reference in any documents or otherwise made available to
      Consultant by the Company to be communicated to possible candidates in which
      Consultant is involved: (i) will be complete and correct to the best of the
      Company’s knowledge and will not contain any untrue statement of a material fact
      or omit to state a material fact necessary in order to make the statements
      made,
      in light of the circumstances under which they were made, not misleading; and
      (ii) any projected financial information or other forward-looking information
      that the Company provides to Consultant will be made by the Company in good
      faith based on management estimates, facts and assumptions that the Company
      believes are reasonable; and

    

    (iii) The
      Company agrees to promptly notify Consultant if the Company believes that any
      information that was previously provided to Consultant has become materially
      misleading.

    

    (b) Any
      advice rendered by Consultant during the Engagement or in meetings with the
      Company and/ or its Board of Directors, as well as any written materials
      provided by Consultant, are intended solely for the benefit and confidential
      use
      of the Company and will not be reproduced, summarized, described or referred
      to
      or given to any other person for any purpose without Consultant’s prior written
      consent (except for the Company’s accountants, attorneys and similarly employed
      and/or engaged persons). 

    

    (c)
       Consultant
      understands that the Company possesses and will possess Proprietary Information
      which is important to its business. For purposes of this Agreement, "Proprietary
      Information" is information that was or will be developed, created, or
      discovered by or on behalf of the Company, or which became or will become known
      by, or was or is conveyed to the Company (including, without limitation,
      "Results" as defined below), which has commercial value in the Company's
      business. "Proprietary Information" includes, but is not limited to, information
      about trade secrets, cell lines, reagents, antibodies, computer programs,
      designs, technology, ideas, know-how, processes, formulas, compositions, data,
      techniques, improvements, inventions (whether patentable or not), works of
      authorship, business and product development plans, customers and other
      information concerning the Company's actual or anticipated business, research
      or
      development, or which is received in confidence by or for the Company from
      any
      other person, but excludes any information that Consultant can document (i)
      is,
      or through no improper action or inaction by Consultant or any affiliate or
      agent, becomes generally known to the public, (ii) was in Consultant’s
      possession or known by Consultant prior to using it in performing the Services,
      (iii) was rightfully disclosed to Consultant by a third party without
      restriction, or (iv) is required to be disclosed by law, government regulation,
      or court order. In addition, Proprietary Information does not include
      information (including "Results") generated by the Consultant unless the
      information is generated as a direct result of the performance of Services.
      Consultant understands that the Services arrangement creates a relationship
      of
      confidence and trust between Consultant and the Company with regard to
      Proprietary Information. All Proprietary Information and all title, patents,
      patent rights, copyrights, trade secret rights, and other intellectual property
      and rights anywhere in the world in connection therewith (collectively "Rights")
      shall be the sole property of the Company. Consultant hereby assigns to the
      Company any Rights Consultant may have or acquire in such Proprietary
      Information. At all times, both during the term of this Agreement and after
      its
      termination, Consultant will keep in confidence and trust and will not use
      or
      disclose any Proprietary Information without the prior written consent of an
      officer of the Company. Consultant acknowledges that any unauthorized disclosure
      or unauthorized use of Proprietary Information will constitute a material breach
      of this Agreement and cause substantial harm to the Company for which damages
      would not be a fully adequate remedy, and, therefore, in the event of any such
      breach, in addition to other available remedies, the Company shall have the
      right to obtain injunctive relief without the need to post bond or other
      security.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    4. Fees.
      As
      compensation for its services, the Company agrees to issue Consultant upon
      execution of this agreement, a warrant to purchase One-Million (1,000,000)
      shares of the Company’s common stock for $.50 per share. If not exercised, this
      warrant shall expire nine-months after the Company’s stock begins trading on a
      national exchange or over the counter. The warrant shall be in substantially
      the
      same form as attached hereto as Exhibit
      A.
      

     

    5.
       Expenses.
      The
      Company will reimburse Consultant for expenses which the Company has
      pre-approved in writing whether or not any financing is consummated.

    

    6.
       Indemnification.
      The
      Company agrees to indemnify and hold harmless Consultant and its affiliates
      (and
      their respective control persons, directors, officers, employees and agents)
      to
      the full extent lawful against any and all claims, losses, damages, liabilities,
      costs and expenses as incurred (including all reasonable fees and disbursements
      of counsel and all reasonable travel and other out-of-pocket expenses incurred
      in connection with investigation of, preparation for and defense of any pending
      or threatened claim and any litigation or other proceeding arising therefrom)
      arising out of or related to Consultant’s Engagement hereunder (a “Consultant
      Claim”), except that the Company shall not be obligated to indemnify, hold
      harmless and/or pay any fees or expenses to any person for a Consultant Claim
      if
      such Consultant Claim arises out of or is based upon any action or failure
      to
      act by Consultant, that is found in a judicial determination to constitute
      bad
      faith, willful misconduct or gross negligence on the part of Consultant. The
      Company will not, without the prior written consent of Consultant, settle any
      litigation relating to Consultant’s Engagement hereunder unless such settlement
      includes an express, complete and unconditional release of Consultant and its
      affiliates (and their respective control persons, directors, officers, employees
      and agents) with respect to all claims asserted in such litigation or relating
      to Consultant’s Engagement hereunder. 

    

    7.
       Term
      and Termination.
      Consultant’s Engagement hereunder may be terminated, with or without cause, by
      either the Company or Consultant upon 30 days’ prior written notice to the other
      party at any time. However, no termination will affect Consultant’s right to (a)
      expense reimbursement under Section 5 herein, (b) receipt of payment of the
      fees
      pursuant to Section 4 herein and (c) the indemnification contained in Section
      7
      herein.

    

    8.
       Governing Law;
      Jurisdiction; Waiver of Jury Trial; Optional Arbitration.
      This
      Agreement will be deemed made in Massachusetts and will be exclusively governed
      by the laws of the State of Massachusetts with regards to the conflict of law
      principles contained therein. Any dispute arising hereunder, if not settled
      by
      mutual agreement, shall be settled by arbitration. The arbitration shall be
      conducted in accordance with the rules then obtaining of the American
      Arbitration Association by a single arbitrator appointed in accordance with
      such
      rules. Arbitration shall take place in Massachusetts. The Company irrevocably
      submits to the jurisdiction of any court of the State of Massachusetts, for
      the
      purpose of any suit, action or other proceeding arising out of this Agreement,
      or any of the agreements or transactions contemplated hereby, which is brought
      by or against the Company. Each of the Company and Consultant hereby knowingly,
      voluntarily and irrevocably waive any right it may have to a trial by jury
      in
      respect of any claim based upon, arising out of or in connection with this
      Agreement and the transactions contemplated hereby.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    9.
       Independent
      Contractor.
      The
      Company acknowledges and agrees that (a) Consultant will act as an independent
      contractor and is being retained solely to assist the Company in corporate
      finance and merger and acquisition matters, and that Consultant is not being
      retained to advise the Company on, or to express any opinion as to, the wisdom,
      desirability or prudence of consummating any financing; and (b) Consultant
      is
      not and will not be construed as a fiduciary of the Company or any affiliate
      thereof and will have no duties or liabilities to the equity holders or
      creditors of the Company, and affiliates of the Company or any other person
      by
      virtue of this Agreement and the retention of Consultant hereunder, all of
      which
      duties and liabilities are hereby expressly waived. Neither equity holders
      nor
      creditors of the Company are intended beneficiaries hereunder. The Company
      confirms that it will rely on its own counsel, accountants and other similar
      expert advisors for legal, accounting, tax and other similar advice. Consultant
      agrees to be solely responsible for paying all of its own taxes that accrue
      from
      the receipt of compensation from the Company.

    

    10.
       Miscellaneous.
      This
      Letter Agreement may not be modified or amended except in writing executed
      in
      counterparts, each of which will be deemed an original and all of which will
      constitute one and the same instrument. 

    

    If
      the
      foregoing correctly sets forth our agreement, please so indicate by signing
      below and returning an executed copy to Consultant. This Agreement may be
      executed by the exchange by facsimile/telecopy or e-mail/electronic signature
      between the parties of signed counterparts of this Agreement. We look forward
      to
      working with you and the rest of the management team in a long-term relationship
      that assists the Company in achieving its business goals.

     

      	 J.D.
              GROUP,
              LLC	 	 	 NEURALSTEM,
              INC.
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 By:	 
	 	
              Name:
                John Davies     

              Title: 
                Manager

            	 	 	 	Name: I. Richard
              Garr
Title: CEOPERRY
        SCIENTIFIC INC

      COMMERCIAL
        LEASE OF VIVARIUM ROOM

       

      This
        lease is
        made
        between Perry Scientific Inc., a Nevada corporation located at 7901 Vickers
        Street, San Diego California 92111 herein called Lessor, and Neuralstem,
        Inc.
        9700 Great Seneca Highway Rockville, MI) 20850 herein called
        Lessee.

       

      Lessee
        hereby leases from Lessor portions of the premises situated in the City of
        San
        Diego, County of San Diego, Stale of California, de-scribed as a vivarium
        room
        at 7901 Vickers Street, San Diego California 92111 ("premises"), upon the
        following terms and conditions;

       

      Term
        and Rent. Lessor
        agrees to rent to the Lessee a vivarium room for its exclusive use for a
        term of
 12
        months commencing
        on or about March
        2006, at
        a
        monthly rental of $5,500 This rent is payable in equal installments in advance
        on the 1st
        day
        of
        each month for that months rental, during the term of this lease. All rental
        payments shall be made (without invoice) to the Lessor, at the address specified
        above.

       

      Research
        Use. The
        Lessee shall use and occupy the premises for the use of laboratory animals
        and
        research. The premises shall be used for no other purpose. This lease is
        a
        commercial lease
        for
        space
        within Perry Scientific's vivarium.

       

      Vivarium
        Services. Exhibit
        A, which is attached hereto and incorporated herein by this reference, outlines
        Lessor's and Lessees responsibilities for the care of animals housed in the
        premises.

       

      Care
        and Maintenance of
        Premises.
        Lessee
        shall he responsible for any damage caused by Lessee and repairs required
        to
        repair any such damage. Lessee shall not, without first obtaining written
        consent of the Lessor, make any alterations to the premises.

       

      Employees.
        During
        the period of the lease, and for two years afterwards, Lessee agrees riot
        to
        hire, or attempt to hire, any employee of the Lessor.

       

      Ordinances
        and Statutes. Lessee
        shall comply with all statutes, ordinances and requirements of all municipal,
        state and federal authorities now in force, pertaining to the premises,
        occasioned by or affecting the use thereof by Lessee.

       

      Assignment
        and Subletting. Lessee
        shall not assign this lease or sublet any portion of the premises without
        prior
        written consent of the Lessor. Any such assignment or subletting without
        consent
        shall be void and, at the option of the Lessor, may terminate this
        lease.

       

      Indemnification.
        Lessee
        will indemnify and hold harmless Lessor from any claims arising out of Lessee's
        use of the premises or breach by Lessee of this Lease, except to the extent
        such
        churns result from the negligence or willful misconduct of Lessor Lessor
        will
        indemnify and hold harmless Lessees from any claims arising out of Lessor's
        use
        of the premises or breach by Lessor of this Lease, except to the extent such
        claims result from The negligence or willful misconduct of Lessee.

       

      Lessor's
        Remedies on Default. If
        Lessee
        defaults in the payment of rent, or defaults in the performance of any of
        the
        other covenants or conditions hereof, Lessor may give Lessee notice of such
        default and if Lessee does not cure any such within 7 days, after the giving
        of
        such notice, Lessor miry terminate this lease in not less than 7 days notice
        to
        Lessee.  On the date specified in such notice the term of this lease shall
        terminal; and Lessee shall then quit and surrender the premises to Lessor,
        but
        Lessee shall remain liable for all rent and other terms and conditions as
        herein
        provided. If this lease shall have been so terminated by Lessor, Lessor may
        at
        any rim.;
        thereafter resume possession of the premises by any lawful means and remove
        Lessee or other occupants and their effects.  No failure to enforce any
        term shall be deemed a waver.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Security
        Deposit. Lessee
        shall deposit with Lessor on the signing of this lease a sum equal to one
        month's rent as security for the performance of Lessee's obligations under
        this
        lease. It is understood that the security deposit shall not be considered
        an
        advance payment of rental or a measure of Lessor's damages In case of default
        by
        Lessee. If Lessee is not in default at the termination of this Lease, the
        Security Deposit shall be returned by Lessor to Lessee.

       

      Attorney's
        Fees.
        In case
        suit should be brought for recovery of the premises, or for any sum due
        hereunder, or because of any act which may arise out of possession of the
        premises, by either party, the prevailing party shall be entitled to all
        costs
        incurred in connection with such action, including a reasonable attorney's
        fee.

       

      Notices.  Any
        notice that either parry is required to give, shall ho given by
        certified
        mail
        to the Lessee at the address noted above, or b certified mail to the Lessor
        at
        the address above, addressed to Andrew Perry, President.

       

      Confidentiality.  The
        parties agree that all data created, collected and in any way
        related to the studies carried out by Lessor under this agreement belongs
        entirely to Lessee, and is confidential and shall treated as such by
        lessor.

       

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

       

      
        
          	
                  LESSEE

                	
                  LESSOR

                
	
                  By:
                    /s/
                    I. Richard Garr

                	
                  By:
                    /s/
                    Andrew Perry

                
	
                  Name: 
                    I.
                    Richard Garr

                	
                  Name:
                    Andrew
                    Perry M.D. Ph.D.

                
	
                  Title:
                    Pres
                    & CEO 

                	
                  Title:
                    President

                
	
                  Date:
                    2-14-06

                	
                  Date:
                    2/14/06

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