Document:

EXHIBIT 10.3

 

POCKET SHOT, INC.

 

AND

 

PS VENTURES, INC.

 

 LICENSE AGREEMENT

 

Pocket Shot Energy®

 

THIS AMENDED AND RESTATED AGREEMENT, is made and entered into this __ day
of ________________, 2015, between Pocket Shot, Inc. a Colorado corporation
with its principal office at 32573 Inverness Drive, Evergreen Colorado 80439
("Licensor"), and PS VENTURES, Inc., a Colorado corporation with its principal
office at __________________________, Arvada, Colorado 80___ (the "Licensee"). 

RECITALS

A.        Licensor and Licensee have heretofore entered into a license
agreement dated _______________________ (the "Original License") for the
trademark Pocket Shot Energy® (the "Trademark"). 

B.         The Original  License was entered into when the Licensor had
applied for registration of the Mark, and the Mark has since been registered
with the United States Office of Patents and Trademarks. 

C.        The parties desire to amend certain provisions of the Original
License and to amend and restate the Original License. 

NOW, THEREFORE, the parties, for good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, intending to be
legally bound hereby amend and restate the Original License to read as follows:

1.                 
Definitions. For purposes of this Agreement the following definitions
shall apply: 

(a)               
"Royalties" means royalties payable to Licensor by the Licensee
under this Agreement as a result of sales of the Licensed Products by the
Licensee. 

(b)              
"Advertising Materials" means all advertising and promotional
materials and all packaging, wrapping, and labeling materials for the Licensed
Products (including, by way of illustration but not limitation, catalogs, trade
advertisements, television advertisements, flyers, sales sheets, labels,
package inserts, hangtags, displays, and materials designed for dissemination
via the Internet or any other electronic form of dissemination) which are
produced by or for the Licensee and which make use of any of the Trademark.

-1- 

(c)               
"Licensed Products" means an energy drink enhanced with vitamins,
[Please provide details on what additional items are desired?] minerals,
nutrients and caffeine and contained in a stand up plastic pouch approved by
Licensor that conforms to the specifications for ingredients and the dimensions
and appearance of the plastic pouch set forth on the attached Exhibit B. Or any
other nutritional drink that is non-alcoholic

(d)              
"Net Sales Price" means the Licensee's invoiced net, direct, or
retail billing price to its customers or distributors for the Licensed
Products, less returns for damaged goods, which shall not exceed 5% of the
Licensee's total gross sales of the Licensed Products in any quarterly
accounting period. 

(e)               
"Territory" means the world. 

(f)                
"Trademark" means Pocket Shot Energy®, a registered
trademark held by Pocket Shot, Inc. 

2.                 
Grant of License; Restrictions on Grant of License. 

(a)               
Grant of License. Licensor grants to the Licensee, upon the terms
and conditions set forth in this Agreement, the exclusive right and license to
use the Trademark in connection with the manufacture, distribution, sale, and
advertising of the Licensed Products in the Territory. Simultaneously herewith,
Licensee has issued to Licensor 200,000 shares of Licensee's common stock. 

(b)              
Period of Agreement. The period of this Agreement shall commence
on the date hereof and be perpetual as long as the patents and copyrights are in good
standing and at least minimum royalties are being made, (b) such date as this
Agreement shall terminate as set forth in Section 6 of this Agreement or (c) on
such dates as a party shall terminate this Agreement as set forth in Section K
(1) of Exhibit A of this Agreement. Provided that Licensee is in full
compliance with the provisions of this Agreement, Licensee shall be entitled to
renew the term of this Agreement for successive seven year periods by giving at
least 45 days advance written notice of its election to so renew this Agreement
prior to the end of the then applicable term. 

(c)               
Royalties. In consideration for the rights granted to it under
this Agreement, the Licensee agrees to pay Licensor a percentage royalty as
follows:

                        1) 7% of
the Net Sales Price on all sales of the Licensed Products by the Licensee to
its customers or distributors up to the first 3 million in annual sales 

                        2)  5%
royalty on all sales greater than 3 million in any annual sales cycle and less
than 7 million in annual sales

                        3) 3%
royalty on all sales greater than 7 million in any annual sales cycle and less
than 10 million in annual sales

                        4) 1.5% royalty on all sales
greater than 10 million in any annual sales with no limit.

-2- 

All royalty computations shall be
made on the basis of the Net Sales Price charged by the Licensee, or, if the
Licensee sells a Licensed Product to a subsidiary or other party controlled by
the Licensee, on the basis of the Net Sales Price for such Licensed Product
charged by such subsidiary or controlled party on resale of the Licensed
Product.

(d)              
Marketing Plans. On execution of this Agreement, and on or before
each November 1 during the term of this Agreement, the Licensee shall provide
Licensor with a written marketing plan with respect to the Licensed Products.
Each such marketing plan shall include a marketing timetable, sales
projections, channels and methods of distribution, nature and amount of
advertising and advertising expenditures, and any other information which
Licensor reasonably may ask the Licensee to include. Each marketing plan shall
contain specific information for the one-year period immediately succeeding its
submission and general estimates or projections for subsequent periods during
which this Agreement remains in effect. 

3.                 
Marketing Commitments; Efforts to Sell Licensed Products; Advertising
Commitment. 

(a)               
Intentionally left blank. 

(b)              
Good Faith Effort to Exploit Rights. If within six months of the
execution of this Agreement the Licensee has failed to take any good faith
steps to exploit the rights granted to it by commencing to manufacture and sell
the Licensed Product), Licensor shall have the right to terminate this
Agreement immediately by giving written notice of termination to the Licensee. 

(c)               
Marketing Commitments. If within six months of the execution of
this Agreement the Licensee has failed to make the Licensed Products generally
available to wholesale customers in the Territory, Licensor shall have the
right to terminate this Agreement by providing the Licensee with written notice
of termination. If within twelve months of the execution of this Agreement, the
Licensed Products are not generally available to retail customers in the
Territory, Licensor shall have the right to terminate this Agreement by
providing the Licensee with written notice of termination. 

(d)              
General Obligation as to Manufacture and Sale of
Licensed Products. The Licensee agrees to manufacture the Licensed Products
at the Licensee's own expense in sufficient quantities to meet the reasonably
anticipated demand. The Licensee also agrees to exercise reasonable efforts to
advertise and promote the Licensed Products at its own expense and to use its
best efforts to sell the Licensed Products in the Territory. 

(e)               
Licensor Right to Eliminate Country from Territory. If after the
first anniversary of the date of this Agreement, the Licensee is not making
regular sales of more than a nominal nature of any of the Licensed Products in
a state within the Territory, as determined by Licensor, Licensor shall have
the right, upon giving 120 days prior written notice to the Licensee and the
failure of the Licensee to commence regular sales of more than $5,000 per month
in the USA within 120 days after receipt of such notice, to terminate the
Licensee's rights for all Licensed Products for such state. 

(f)                
Advertising Commitment. The Licensee agrees to spend during each
one-year period this Agreement remains in effect, on advertising and promotion
relating solely to Licensed Products bearing the Trademark, an amount equal to
5% of the Net Sales Price of all Licensed Products sold during such period. 

-3- 

(g)               
Minimum Royalty. Commencing with the calendar quarter ending
December 31st  2015, Licensor may terminate this Agreement if Licensee fails
for that calendar quarter and each succeeding calendar quarter (i) to realize
sales of the Licensed Products sufficient to generate a royalty of at least
$5,000 and (ii) to pay Licensor a minimum royalty of at least $5,000; provided,
however, that for the first three calendar quarters ending after the date of
this agreement, if sales are insufficient to generate such minimum royalty,
Licensee may continue this License in effect by paying to Licensor such minimum
royalty.  Thereafter, sales must be sufficient to generate the minimum royalty
or Licensor may terminate this Agreement. 

4.                 
Miscellaneous. 

(a)               
Restriction on Assignments. Without the prior written consent of
Licensor, the Licensee shall not directly or indirectly assign, transfer,
sublicense, or encumber any of its rights under this Agreement. The foregoing
provision shall apply to transfers of ownership interests in the Licensee
(including the stock of the Licensee) which would result in a change in control
of the Licensee. This Agreement shall be binding upon and inure to the benefit
of the successors and assigns of Licensor. [(There needs to have exception that
once this is in a public company the management of the company will change
(meaning a control change) or the company may be bought out by a larger company
(another form of control change). We can not have the license of the product
restricted because of such changes.)  Since this goes into effect when the
reverse merger occurs, no need to consent here to reverse merger.  As to other
please give us some proposed language.] 

(b)              
Parties Not Joint Venturers. Nothing contained in this Agreement
shall be construed so as to make the parties partners or joint venturers or to
permit the Licensee to bind Licensor to any agreement or purport to act on
behalf of Licensor in any respect. 

(c)               
Modifications of Agreement; Remedies. No waiver or modification
of any of the terms of this Agreement shall be valid unless in writing, signed
by both parties. Failure by either party to enforce any rights under this Agreement
shall not be construed as a waiver of such rights, and a waiver by either party
of a default in one or more instances shall not be construed as a continuing
waiver or as a waiver in other instances. 

(d)              
Invalidity of Separable Provisions. If any term or provision of
this Agreement is for any reason held to be invalid, such invalidity shall not
affect any other term or provision, and this Agreement shall be interpreted as
if such term or provision had never been contained in this Agreement. 

(e)               
Notices. All notices to be given under this Agreement (which
shall be in writing) shall be given at the respective addresses of the parties
as set forth on page 1, unless notification of a change of address is given in
writing. The date of mailing shall be deemed to be the date the notice is
given. 

(f)                
Headings. The paragraph and section headings of this Agreement
are inserted only for convenience and shall not be construed as a part of this
Agreement. 

-4- 

(g)               
Entire Understanding. Amendments. This Agreement contains the
entire understanding of the parties with respect to its subject matter. Any and
all representations or agreements by any agent or representative of either
party to the contrary shall be of no effect.  No amendment, modification or
change to this Agreement shall be effective unless it is in writing and signed
by both parties. 

(h)               
Choice of Law. This Agreement shall be construed and governed in
accordance with the laws of the State of Colorado, regardless of the place or
places of its physical execution and performance. 

(i)                 
Jurisdiction; No Injunctive Relief. Any actions brought by either
party based on or arising out of this Agreement shall be brought exclusively in
the United States District Court for the District of Colorado, or in a state
court located in said district. The Licensee acknowledges that no breach of
this Agreement by Licensor will result in irreparable harm to the Licensee, and
that the Licensee will be adequately compensated by monetary damages for any
breach of this Agreement by Licensor. 

(j)                
Standard Terms and Conditions. Exhibit A attached hereto contains
Standard Terms and Condition which are incorporated herein by reference. 

(k)              
Counterparts. This Agreement may be signed and executed in one
(1) or more counterparts, each of which shall be deemed an original and all of
which together shall constitute one Agreement. A facsimile signature or a copy
of this Agreement delivered in "pdf" format shall be deemed an original for
purposes of evidencing execution of this Agreement. 

[We don't
consider a force majeure clause to be appropriate.  If you think your ability
to perform the manufacturing and sales commitments may be subject to some
problem, please advise what that is and propose an extension if that should
occur,  But we do not consider appropriate a general "beyond our control"
standard. 

[We are not
enamored with arbitration, particularly where the arbitration clause basically
requires that all court procedures be followed]

(l)                 
Licensor's Representations and Warranties. 

(i)                 
Authority and Enforceability.  Licensor has the right, power and
authority required for the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby; all authorizations and
approvals have been secured by Licensor which are necessary to authorize the execution,
delivery and performance of this Agreement; and upon being duly executed this
Agreement constitutes a legal, valid and binding agreement of Licensor and is
enforceable against it in accordance with its terms. 

(ii)               
Compliance with the Law and Other Instruments.  The execution and
delivery of this Agreement, and the consummation of the transactions
contemplated hereby, will not result in the breach of any term or provision of,
or constitute a default under, the Articles of Organization or Operating Agreement
of Licensor, as amended to the date hereof, or any statute, order, judgment,
writ, injunction, decree, license, permit, rule or regulation of any
governmental or regulatory body or court, or any indenture, mortgage, deed of
trust or other agreement or instrument to which Licensor is a party or by which
it is bound. 

-5- 

(iii)              
Intellectual Property Rights.  To Licensor's knowledge, the trademarks
are not subject to any encumbrance, lien or claim of ownership of any Third
Party.  The manufacture, use or sale of  the Licensed Products and trademarks
will not infringe any intellectual property rights of any Third Party. 
Licensor has not licensed the Licensed Products or trademarks to any Third
Party.   

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

POCKET SHOT,
INC.

By______________________________

Jarrold R.
Bachmann, President 

PS VENTURES,
INC. 

By______________________________

, President 

-6- 

EXHIBIT A

 

STANDARD TERMS AND CONDITIONS

 

SECTION A.  
QUALITY CONTROLS AND APPROVAL PROCEDURES FOR LICENSED PRODUCTS AND
ADVERTISING MATERIALS. 

1.                 
Warranty of Quality. The Licensee warrants that the Licensed
Products will be of very good quality in design, material, and workmanship and
suitable for their intended purpose; that no injurious, deleterious, or toxic
substances will be used in or on the Licensed Products; that the Licensed
Products will not cause harm when used as instructed and with ordinary care for
their intended purpose; that the Licensed Products will be manufactured,
tested, sold, and distributed in strict compliance with all applicable laws and
regulations (including, but not limited to, local labor laws); and that neither
the Licensee nor any manufacturers used by the Licensee use or will condone the
use of child labor or sweatshop practices. 

2.                 
Approval Procedures for Licensed Products and Advertising Materials;
Approval Standards; Time for Approval by Licensor. 

(a)               
General. The Licensee shall comply with all reasonable procedures
which Licensor may from time to time adopt regarding its approval of Licensed
Products and Advertising Materials which the Licensee proposes to manufacture,
sell, or use under this Agreement. These approval procedures shall be
implemented using prescribed forms to be supplied to the Licensee by Licensor,
and shall incorporate the basic approval requirements and steps outlined in the
following sections. The Licensee agrees to retain all materials relating to
approvals in its files while this Agreement remains in effect and for one year
thereafter. 

(b)              
Approval of Licensed Products. With respect to each different
Licensed Product which the Licensee proposes to manufacture and sell under this
Agreement, the Licensee shall submit to Licensor for its review and approval
the following materials in the order stated:  (i) a generic sample of the
type of Licensed Product in question (that is, a sample of the kind of
merchandise article to which the Licensee proposes to add the Trademark in
producing the Licensed Product, showing the general quality standard which will
be met by the Licensed Product);  (ii) a concept for the proposed Licensed
Product, showing by rough artwork and product designs the nature and appearance
of the proposed Licensed Product;  (iii) finished artwork for the Licensed
Product, showing the exact use of the Trademark on or in connection with the
proposed Licensed Product;  (iv) a preproduction prototype sample of the
Licensed Product, where appropriate, or a preproduction final sample of the
Licensed Product, showing in either case the exact form, finish, and quality the
Licensed Product will have when manufactured in production quantities; and  
(v) 15 identical production samples of the Licensed Product, to be submitted
immediately upon commencement of production. The Licensee shall comply with all
of the foregoing approval steps for each Licensed Product, obtaining Licensor's
written approval at each step of the procedure, unless 

-A-1- 

by prior written notice from
Licensor it is exempted from any such step with respect to a specific Licensed
Product. If the Licensee submits to Licensor for approval under this Section
A(2)(b) an item which is not contained in the definition of "Licensed Products"
set forth in paragraph 1 of this Agreement, and Licensor inadvertently approves
such item, such approval shall not be deemed to add such item to said
definition; in any such circumstance, the Licensee shall, upon receipt of
written notice from Licensor, immediately and permanently cease manufacturing,
distributing, selling, and advertising the item in question. 

(c)               
Approval of Advertising Materials. With respect to each different
item of Advertising Material which the Licensee (or any party acting on its
behalf) proposes to produce and use under this Agreement, the Licensee shall
submit to Licensor for its review and approval the following materials, in the
order stated:  (i) proposed written copy for the item of Advertising Material,
with attached rough art showing how the Trademark will be used in connection
with the copy;  (ii) final copy for the item, with finished "lift" art, showing
the use of the Trademark;  (iii) finished "mechanicals" for the item; and  (iv)
12 final printed samples of the item, where feasible (as, for example, in the
case of labels, hangtags, printed brochures, catalogs, and the like). The
Licensee shall comply with all of the foregoing approval steps for each item of
Advertising Material, obtaining Licensor's written approval at each step of the
procedure, unless by prior written notice from Licensor it is exempted from any
such step with respect to a specific item of Advertising Material. Licensor
shall have the right, in its discretion, to disapprove, on the basis of the
medium in which it is embodied or contained, any item of Advertising Materials
submitted by the Licensee for approval. 

(d)              
Approval Standards. Licensor shall have the right to disapprove
any materials submitted to it under Sections A(2)(b) or A(2)(c) if it
determines, in the exercise of its good faith judgment, that the materials in
question would impair the value and goodwill associated with the Trademark, or
Licensor's licensing program for the Trademark, by reason of (i) their failure
to satisfy the general quality standards set forth in Section A(1); (ii) their
use of materials which are unethical, immoral, or offensive to good taste or
would otherwise cause harm to the image or reputation of the Licensor; (iii)
their failure to carry proper trademark notices; or (iv) any other reasonable
cause. 

(e)               
Time for Approval by Licensor. Licensor agrees to use reasonable
efforts to notify the Licensee in writing of its approval or disapproval of any
materials submitted to it under Sections A(2)(b) and A(2)(c) within 20 business
days after its receipt of such materials, and agrees, in the case of its
disapproval, to notify the Licensee in writing of its reasons for disapproval. 

3.                 
Maintenance of Quality of Licensed Products; Inspection of Production
Facilities. The Licensee agrees to maintain the quality of each Licensed
Product manufactured under this Agreement up to the specifications, quality,
and finish of the production sample of such Licensed Product approved by
Licensor under Section A(2)(b), and agrees not to change the Licensed Product
in any material respect without first submitting to Licensor samples showing
such proposed changes and obtaining Licensor's written approval of such
samples. From time to time after it has commenced manufacturing the Licensed
Products, the Licensee, upon request, shall furnish free of charge to Licensor
a reasonable number of random production samples of any Licensed Product
specified by Licensor. The Licensee shall also furnish to Licensor upon request
the addresses of the production facilities used by the Licensee for
manufacturing the Licensed Products, and shall make arrangements for Licensor
or its representatives to inspect such production facilities during reasonable
business hours. 

-A-2- 

4.                 
Use of Address of Licensor Site; Advertising on Licensor Site; Link
to Licensor Site. The Licensee shall place on all Licensed Products and on all
Advertising Materials the address of Licensor's web site (the "Licensor Site"),
as follows: "www.pocketshot.net". Licensor shall provide the Licensee free of
charge with advertising on the Licensor Site. 

5.                 
Miscellaneous. 

(a)               
Intentionally left blank. 

(b)              
Translations. All translations of written material used on or in
connection with the Licensed Products or Advertising Materials shall be
accurate, and the Licensee, when submitting the Licensed Products and the
Advertising Materials for approval, shall provide Licensor with English
translations of all such written materials in a language other than English.   

(c)               
Intentionally left blank. 

(d)              
Intentionally left blank. 

(e)               
Intentionally left blank. 

(f)                
Intentionally left blank. 

(g)               
Licensor Right to Purchase Licensed Products. In addition to the
random production samples of the Licensed Products to be supplied by the
Licensee to Licensor free of charge under Section A(3), Licensor shall be
entitled at any time while this Agreement remains in effect to purchase from
the Licensee, (i) at the Licensee's most favorable wholesale price, any
available quantity of the Licensed Products, which may be resold by Licensor
(the Licensee shall pay Licensor the percentage royalty due under paragraph 4
on such Licensed Products); or (ii) at the Licensee's cost of manufacture, plus
10%, any available quantity of the Licensed Products, for use for Licensor's
own purposes and not to be resold by Licensor (such Licensed Products shall be
royalty-free). 

(h)               
Intentionally left blank. 

(i)                 
Intentionally left blank. 

(j)                
Licensee Customer Information. If requested by Licensor to do so,
the Licensee shall provide Licensor, in a format specified by Licensor, with
customer lists, customer demographic information, and any other information
relating to all parties purchasing the Licensed Products from the Licensee. 

(k)              
Provisions on Web Sales and Web Advertising. The Licensee shall
have the right to market the Licensed Products to customers in the Territory
via the main web site of the Licensee (the "Licensee Site"), subject to the
following conditions and limitations:  (i) The Licensee Site shall not in
any manner, express or implied, be identified or promoted as an official
Licensor web site.  (ii) The Licensee Site shall offer a full range of
retail services for the Licensed Products offered on the Licensee Site,
including, but not limited to, automated order taking, credit card verification,
and customer service.  (iii) Any special promotions on the 

-A-3- 

Licensee Site with respect to the
Licensed Products shall be subject to Licensor's prior written approval, on a
case-by- case basis.  (iv) The Licensee shall be entitled to promote the
presence of the Licensed Products on the Licensee Site via print, on-line, and
other types of Advertising Materials; provided, however, that the use of the
Trademark in such Advertising Materials promoting the presence of the Licensed
Products on the Licensee Site shall be limited to depictions of the Licensed
Products themselves.  (v) The Licensee shall not place on the page or pages
of the Licensee Site on which the Licensed Products are offered any advertising
for the goods or services of any third party. 

(l)                 
Sales via Third Party Sites. The Licensee shall have the right to
sell the Licensed Products to customers in the Territory that intend to resell
the Licensed Products via such third parties' own web sites (the "Third Party
Sites"), excluding auction sites and discount sites, subject to the following
conditions and limitations:  (i) Licensor shall have the right to revoke at any
time the right of the Licensee granted by this Section A(5)(l) by providing the
Licensee with written notice of revocation. Any such notice of revocation shall
specify an effective date of revocation, which shall be at least 90 days from
the date of Licensor's notice.   (ii) The use of the Trademark on the Third
Party Sites shall be limited to depictions of the Licensed Products themselves,
and the Licensee shall have no right to authorize any other uses of the
Trademark on the Third Party Sites. 

SECTION
B.  RESTRICTIONS ON SALE OF LICENSED PRODUCTS; CONSEQUENCES OF VIOLATION OF
RESTRICTIONS. 

1.                 
Restrictions on Sale of Licensed Products. The Licensed Products
shall be sold to the public only in the manner in which merchandise articles of
the same general description are customarily merchandised to the public. The
Licensee shall not use or sell the Licensed Products as premiums, or distribute
the Licensed Products to parties which the Licensee has reason to believe
intend to use or sell the Licensed Products as premiums in an amount greater
than 10% of the total pouches sold during any calendar
year.   Use or sale of the Licensed Products as "premiums," for purposes of the
foregoing provisions, shall mean use or sale of the Licensed Products in
connection with the following kinds of promotional activities: self-liquidator
programs; joint merchandising programs; giveaways; sales incentive programs;
door openers; traffic builders; and any other kinds of promotional programs
designed to promote the sale of the Licensed Products or other goods or
services of the Licensee or a third party. 

2.                 
Intentionally left blank.

SECTION
C.  ROYALTIES; STATEMENTS.  

1.                 
Computation of Royalties. All royalties due to Licensor shall
accrue upon the collection of sales of the Licensed Products, regardless of the
time of sale by the Licensee. For purposes of this Agreement, a Licensed
Product shall be considered "sold" as of the date on which such Licensed
Product is paid for. If any Licensed Products are consigned to a distributor by
the Licensee, the Licensed Products shall be considered "sold" by the Licensee
upon the date on which such distributor pays the company its payment for any of
the Licensed Products. 
-A-4- 

2.                 
Time of Payment. The Licensee shall pay all royalties owing to
Licensor under this Agreement for any calendar month within 30 days following
the end of the calendar month in question. All royalty amounts in this
Agreement are stated in U.S. Dollars, and all royalty payments shall be made in
U.S. Dollars. All royalty statements required to be submitted by the Licensee
shall be submitted within 30 days following the end of the calendar month to
which they relate and shall accompany the royalty payments made to Licensor.
All royalty checks and accounting statements (as required by Section C(5)) shall
be sent by the Licensee to the following address: Pocket Shot, LLC 32950
Inverness Drive Evergreen, Colorado 80439. This address can be changed at any
time with a 30 day writen notice by the Licensor.

3.                 
Intentionally left blank.

4.                 
Deductions; Taxes; Remittance Controls. 

(a)               
Deductions. There shall be no deduction from the royalties owed
to Licensor for uncollectible accounts or for taxes, fees, assessments, or
other expenses of any kind which may be incurred or paid by the Licensee in
connection with: (i) royalty payments to Licensor; (ii) the manufacture, sale,
distribution, or advertising of the Licensed Products in the Territory; or
(iii) the transfer of funds or royalties or the conversion of any currency into
U.S. Dollars. It shall be the Licensee's sole responsibility at its expense to
obtain the approval of any foreign authorities; to take whatever steps may be
required to effect the payment of funds from abroad; to minimize or eliminate
the incidence of foreign taxes, fees, or assessments which may be imposed; to
protect its investments in foreign territories; to enable it to commence or
continue doing business in any foreign territory; and to comply in any and all
respects with all applicable laws and regulations. 

(b)              
Taxes. Notwithstanding the provisions of the preceding Section
C(4)(a), if (i) any country imposes a withholding tax against Licensor, as
licensor, with respect to the royalties payable to Licensor by the Licensee on
sales of the Licensed Products in such country, (ii) such tax is paid by the Licensee
on behalf of Licensor, and (iii) such tax is an income tax as to which a
foreign tax credit is allowable to Licensor under Section 901 of the Internal
Revenue Code of 1986, as amended, the Licensee may deduct the amount of such
withholding tax from the royalties owing to Licensor on the condition that the
Licensee furnishes to Licensor such information as Licensor requires to
evidence Licensor's right to credit such withholding tax against its federal
income tax liability in the United States. 

(c)               
Remittance Controls. If any payment required to be made to
Licensor pursuant to this Agreement cannot be made when due because of exchange
controls, and such payment remains unpaid for such reason for 180 days,
Licensor may, by written notice to the Licensee, elect either of the following
alternative methods of handling such payment: (i) if local currency can be
converted legally into currencies other than U.S. Dollars for purposes of
foreign remittances, Licensor may elect to receive such payment in any such currency
it may specify, and in such case the amount payable in the foreign currency so
selected shall be determined by reference to the then applicable rate of
exchange most favorable to Licensor; (ii) Licensor may elect to have payment
made to it in local currency deposited to the credit of Licensor in a bank
account in the foreign country in question designated by Licensor, in which
case the Licensee shall furnish to Licensor evidence of such deposit. 
-A-5- 

5.                 
Royalty Statements. The Licensee shall furnish to Licensor, at
the same time it makes payment of royalties, a full and complete statement,
duly certified by an officer of the Licensee to be true and accurate, showing
the number of each stock keeping unit ("sku") of the Licensed Products
manufactured during the calendar month in question, the number of each sku of
the Licensed Products sold during the calendar month in question (including a
separate listing for skus of the Licensed Products sold via the Internet or
other electronic sales channels), the total gross sales revenues for each sku
of the Licensed Products, an itemization of all allowable deductions, if any,
the Net Sales Price for each sku of the Licensed Products sold, the amount of
royalties due with respect to such sales, the names of the five customers that
purchased the highest wholesale value of the Licensed Products from the
Licensee during the calendar month in question along with the wholesale value
of the Licensed Products purchased by each such customer, and the amounts
expended by the Licensee during such calendar month on advertising and
promotion relating solely to Licensed Products bearing the Trademark, as
required by paragraph 6, together with such other pertinent information as
Licensor may reasonably request from time to time. If the Licensee's
accountings for any one-year period reveal that the Licensee has failed to
spend on advertising and promotion relating solely to Licensed Products bearing
the Trademark the amount required by paragraph 6 of this Agreement, the
Licensee will pay Licensor, at the same time it renders its accounting for the
final quarter of such one-year period, the difference between the amount
required to be spent under paragraph 6 and the amount actually spent. There
shall be a breakdown of sales of skus of the Licensed Products by country, and
all figures and monetary amounts shall first be stated in the currency in which
the sales were actually made. If several currencies are involved in any
reporting category, that category shall be broken down by each such currency.
Next to each currency amount shall be set forth the equivalent amount stated in
U.S. Dollars, and the rate of exchange used in making the required conversion
calculation. The rate of exchange shall be the actual rate of exchange obtained
by the Licensee on the date of payment. Licensor shall have the right, on
providing the Licensee with reasonable prior written notice, to modify the
elements of the information the Licensee is obligated to provide Licensor in
connection with its royalty accounting statements provided to Licensor under
this Section C(5). 

6.                 
Royalty Adjustments. The receipt or acceptance by Licensor of any
royalty statements furnished pursuant to this Agreement, or the receipt or
acceptance of any royalty payments made, or the fact that Licensor has
previously audited the periods covered by such royalty statements, shall not
preclude Licensor from questioning their accuracy at any time. If any
inconsistencies or mistakes are discovered in such statements or payments,
appropriate adjustments shall be made immediately by the parties. The Licensee
shall pay Licensor interest on a late royalty payment at a rate of 1.5% per
month. 

-A-6- 

SECTION
D.  BOOKS OF ACCOUNT AND OTHER RECORDS; AUDITS.  

1.                 
Retention of Records. While this Agreement remains in effect and
for two years thereafter, the Licensee shall keep full and accurate books of
account and copies of all documents and other material relating to this
Agreement at the Licensee's principal office. Licensor, by its duly authorized
agents and representatives, shall have the right on reasonable prior notice to
audit such books, documents, and other material, shall have access thereto
during ordinary business hours, and shall be at liberty to make copies of such
books, documents, and other material.  At Licensor's request, the Licensee
shall provide an authorized employee to assist in the examination of the
Licensee's records.  

2.                 
Audits by Licensor. If any audit of the Licensee's books and
records reveals that the royalties actually accounted for and paid to Licensor
with respect to any period were underpaid by 5% or more, the Licensee shall, in
addition to paying Licensor any underpaid royalties, reimburse Licensor for
professional fees and direct out-of-pocket expenses incurred in conducting such
audit, together with interest on the underpaid royalty amount at a rate of 1.5%
per month. 

3.                 
Failure to Provide Adequate Accountings or Maintain Adequate Records.
If the royalty accountings submitted by the Licensee to Licensor under Section
C(5) do not contain all information required by the provisions of Section C(5),
or if Licensor schedules a review of the Licensee's books and records and finds
that the Licensee's books and records cannot be audited, the Licensee shall
reimburse Licensor within 15 days of its receipt of notice from Licensor
invoking the provisions of this Section D(3), for all costs of such review up
to $4,000 with respect to the periods as to which the Licensee has provided
inadequate information or Licensor was unable to audit. 

SECTION
E.  TRADEMARK PROVISIONS.  

1.                 
Trademark Uses Inure to Licensor's Benefit. All trademark uses of
the Trademark by the Licensee shall inure to the benefit of Licensor, which
shall own all Trademark and trademark rights created by such uses. The Licensee
assigns and transfers to Licensor all Trademark and trademark rights created by
such uses of the Trademark, together with the goodwill of the business in
connection with which such Trademark are used. 

2.                 
Trademark Registrations. Licensor shall have the right, but not
the obligation, to file in the appropriate offices of countries of the
Territory, at the Licensee's expense, trademark applications relating to the
use or proposed use by the Licensee of any of the Trademark in connection with
the Licensed Products, such filings to be made in the name of Licensor or in
the name of any third party selected by Licensor. 

3.                 
Records Relative to Trademark Uses. The Licensee shall keep
appropriate records (including copies of pertinent invoices and correspondence)
relating to the dates when each of the Licensed Products is first placed on
sale or sold in each country of the Territory, and the dates of first use in
each country of each different Trademark on the Licensed Products and
Advertising Materials. If requested to do so by Licensor, the Licensee agrees
to supply Licensor with samples of the trademark usages in question and other
information which will enable Licensor to complete and obtain trademark
applications or registrations, or to evaluate or oppose any trademark applications,
registrations, or uses of other parties. 

-A-7- 

4.                 
Registered User Laws. As to those countries which require
applications to register the Licensee as a registered user of a Trademark or
Trademark used on or in connection with the Licensed Products or which require
the recordation of this Agreement, the Licensee agrees to execute and deliver
to Licensor such documents as may be reasonably necessary and as are furnished
by Licensor for such purposes. 

5.                 
Trademark Notices. The Licensee agrees to affix or to cause its authorized
manufacturing sources to affix to the Licensed Products and to the Advertising
Materials such trademark notices as may be supplied by Licensor. When one of
the Trademarks is used as a trademark for any Licensed Product, the name shall
be properly used as a trademark in a larger or bolder type than the Licensed
Product, and shall not be used as the generic name of the Licensed Product. 

6.                 
Restrictions on Uses of Trademark. The Licensee shall not make
any trademark usage of any Trademark other than the Trademark POCKET SHOT
ENERGYTM without the prior written consent of Licensor. Trademark usage of a
Trademark means use of such Trademark as a designation of origin of a Licensed
Product. 

7.                 
No Assertion of Rights. The Licensee shall not, during the period
of this Agreement or thereafter, directly or indirectly: (a) assert any
interest or property rights in any of the Trademark or any word or phrase
confusingly similar with any of the Trademark; or (b) register, attempt to
register, or adopt any of the Trademark, or any word or phrase confusingly
similar with any of the Trademark, as a trademark, service mark, trade name,
corporate name, or Internet domain name; or (c) challenge or deny the validity
of the Trademark or Licensor's ownership of the Trademark; or (d) permit or
acquiesce in any of the foregoing activities by any of the Licensee's
subsidiaries, manufacturers, distributors, shareholders or other owners of an
equity interest, or the agents or employees of any of the foregoing, or of the
Licensee. 

SECTION
F.  Intentionally left blank. 

SECTION
G.  INDEMNIFICATIONS; PRODUCT LIABILITY INSURANCE. 

 

1.                 
Licensee's Indemnification. The Licensee agrees to indemnify and
hold Licensor harmless from any and all claims (and liabilities, judgments,
penalties, losses, costs, damages, and expenses resulting therefrom, including
reasonable attorneys' fees but excluding lost profits) (a) made by third
parties against Licensor or suffered or incurred by Licensor by reason of or in
connection with any act under or in violation of this Agreement by the
Licensee, its subsidiaries, manufacturers, distributors, or other persons, or
the employees or agents of any of the foregoing or of the Licensee, including,
but not limited to, the manufacture, distribution, exploitation, advertising,
sale, or use of the Licensed Products by any of them, but excluding any claims
based solely upon the use of the Trademark by the Licensee in strict accordance
with the terms of this Agreement; or (b) suffered or incurred by Licensor as a
result of sales of the Licensed Products outside the Territory by the Licensee
or any third party. 

-A-8- 

2.                 
Licensor's Indemnification. Licensor agrees to indemnify and hold
the Licensee harmless from any and all claims (and liabilities, judgments,
penalties, losses, costs, damages, and expenses resulting therefrom, including
reasonable attorneys' fees, but excluding lost profits) made by third parties
against the Licensee asserting rights in one or more of the Trademark POCKET
SHOT ENERGY and based solely upon the use of the Trademark POCKET SHOT ENERGY
by the Licensee in strict accordance with the terms of this Agreement. 

3.                 
Claims Procedures. With respect to any claims falling within the
scope of the foregoing indemnifications: (a) each party agrees promptly to
notify the other of and keep the other fully advised with respect to such
claims and the progress of any suits in which the other party is not
participating; (b) each party shall have the right to assume, at its sole
expense, the defense of a claim or suit made or filed against the other party;
(c) each party shall have the right to participate, at its sole expense, in any
suit instituted against it and to approve any attorneys selected by the other
party to defend it, which approval shall not be unreasonably withheld or
delayed; and (d) a party assuming the defense of a claim or suit against the
other party shall not settle such claim or suit without the prior written
approval of the other party, which approval shall not be unreasonably withheld
or delayed. 

4.                 
Product Liability Insurance. The Licensee agrees to obtain and
maintain during the term of this Agreement, at its own expense, product
liability insurance providing protection (at a minimum, in the amount of
$1,500,000 per occurrence/$3,000,000 annual aggregate) applicable to any
claims, liabilities, damages, costs, or expenses arising out of any defects or
alleged defects in the Licensed Products. Such insurance shall include coverage
of Licensor, its directors, officers, agents, employees, assignees, and successors.
Within 30 days after execution of this Agreement by Licensor, the Licensee
shall cause the insurance company issuing such policy to issue a certificate to
Licensor, to the attention of Licensor's Contracts Administrator, confirming
that such policy has been issued and is in full force and effect and provides
coverage of Licensor as required by this Section G(4), and also confirming that
before any cancellation, modification, or reduction in coverage of such policy,
the insurance company shall give Licensor 30 days prior written notice of such
proposed cancellation, modification, or reduction. 

SECTION
H.  RESERVATION OF RIGHTS.  

All rights in and to the Trademark (including premium rights
in the Licensed Products) are retained by Licensor for its own use, except for
the specific rights which are granted to the Licensee under this Agreement. If
Licensor offers to the Licensee the opportunity to participate in a
cross-licensing program, under which the Licensee would be entitled to combine
the Trademark on the Licensed Products with intellectual property rights held
by a third party (such as a professional sports licensing organization), and
the Licensee elects not to participate in such program, Licensor shall be
entitled to grant to another licensee the right to manufacture, distribute,
sell, and advertise the Licensed Products in connection with such cross
licensing program. 

-A-9- 

SECTION
I.  INFRINGEMENTS.  

When the
Licensee learns that a party is making unauthorized uses of the Trademark, the
Licensee agrees promptly to give Licensor written notice giving full
information with respect to the actions of such party. The Licensee agrees not
to make any demands or claims, bring suit, effect any settlements, or take any
other action against such party without the prior written consent of Licensor.
The Licensee agrees to cooperate with Licensor, at no out-of pocket expense to
the Licensee, in connection with any action taken by Licensor to terminate
infringements. Licensor shall retain 100% of all net amounts recovered from
infringers. 

SECTION
J.  NO SUBLICENSING; AGREEMENTS WITH MANUFACTURERS.  

1.                 
No Sublicensing. The Licensee shall not have the right to
sublicense any of the rights granted to it under this Agreement. For purposes
of this Agreement, "sublicense" means authorizing a third party to use the
Trademark in connection with the manufacture, distribution, sale, and
advertising, for such third party's own account, of the Licensed Products. 

2.                 
Manufacturers. The Licensee shall have the right, but only with
the prior written approval of Licensor on a case-by-case basis, to arrange with
another party to manufacture the Licensed Products or components of the
Licensed Products for exclusive sale, use, and distribution by the Licensee.
The Licensee agrees to enter into a written agreement with all such
manufacturers, and agrees to incorporate into such written agreements all of
the provisions, for the protection of the rights of Licensor, which are
contained in the form manufacturer agreement which has been prepared by
Licensor for such purpose, and which is available from Licensor. The Licensee
further agrees to furnish Licensor within 30 days of their execution copies of
all agreements with such manufacturers. 

3.                 
Enforcement of Manufacturer Agreements. The Licensee agrees
strictly to enforce against its manufacturers all of the provisions which are
required to be included in such agreements for the protection of Licensor, as
provided in Section J(2); to advise Licensor of any violations thereof by
manufacturers, and of corrective actions taken by the Licensee and the results
thereof; and at the request of Licensor to terminate such an agreement with any
manufacturer which violates any of such provisions for the protection of
Licensor.  If the Licensee fails to exercise such termination rights by giving
written notice to the manufacturer in question within 20 days after being
requested to do so in writing by Licensor, the Licensee appoints Licensor its
irrevocable attorney-in-fact to send a notice of termination in the name of the
Licensee to such manufacturer for the purpose of terminating the agreement or
any specific rights of the party under such agreement. 

SECTION
K.  BREACH AND TERMINATION.  

1.                 
Immediate Right of Termination. Licensor shall have the right to
terminate this Agreement immediately, by giving written notice to the Licensee,
in any of the following situations: (a) If the Licensee makes, sells, offers
for sale, or distributes or uses any Licensed Product or Advertising Material
without having the prior written approval of Licensor, as required by Section
A, or makes any uses of the Trademark not authorized under this Agreement. (b)
If the Licensee fails to make any Royalty payment by the date such payment is
required under the provisions of paragraph 4, or if the Licensee fails to
submit royalty statements and/or royalty payments to Licensor during the time
period specified in Section C(2) and fails to cure such failure within 15 days
after notice from Licensor. (c) If the 

-A-10- 

Licensee becomes subject to any voluntary
or involuntary order of any governmental agency involving the recall of any of
the Licensed Products because of safety, health, or other hazards or risks to
the public. (d) If, other than under Title 11 of the United States Code, the
Licensee becomes subject to any voluntary or involuntary insolvency, cession,
bankruptcy, or similar proceedings, or an assignment for the benefit of
creditors is made by the Licensee, or an agreement between the Licensee and its
creditors generally is entered into providing for extension or composition of
debt, or a receiver is appointed to administer the assets of the Licensee, or
the assets of the Licensee are liquidated, or any distress, execution, or
attachment is levied on such of its manufacturing or other equipment as is used
in the production and distribution of the Licensed Products and remains undischarged for a period of 30 days. (e) If the Licensee breaches any of the
provisions of Section J. (f) If the Licensee breaches any of the provisions of
Section L(1). 

2.                 
Assumption and Rejection Under U.S. Bankruptcy Code. After any
order for relief under the Bankruptcy Code is entered against the Licensee, the
Licensee must assume or reject this Agreement within 60 days after the order
for relief is entered. If the Licensee does not assume this Agreement within
such 60-day period, Licensor may, at its sole option, terminate this Agreement
immediately by giving written notice to the Licensee, without further liability
on the part of Licensor. The Licensee agrees that any payments due Licensor
under this Agreement after any order for relief under the Bankruptcy Code is
entered against the Licensee shall be entitled to treatment as administrative
expenses under Section 503 of the Bankruptcy Code, and shall be immediately paid
when due to Licensor, without the need for Licensor to file an application or
motion in the Licensee's bankruptcy case for payment of such administrative
expenses. 

3.                 
Curable Breaches. If either party breaches any of the terms and
provisions of this Agreement, other than those specified in Section K(1), and
the party involved fails to cure the breach within 30 days after receiving
written notice by certified or registered mail from the other party specifying
the particulars of the breach, the nondefaulting party shall have the right to
terminate this Agreement by giving written notice to the defaulting party by
registered or certified mail. 

4.                 
Effect of Termination. Termination of this Agreement under the
provisions of this Section K or the provisions set forth elsewhere in this
Agreement shall be without prejudice to any rights or claims which Licensor may
otherwise have against the Licensee. Upon the termination of this Agreement,
all royalties on sales previously made and all Guaranteed Advance Royalty Amount
payments that would have been payable by the Licensee following termination
shall become immediately due and payable to Licensor. Upon the termination of
this Agreement under the provisions of Section K(1)(e) or K(2) of this
Agreement, the Licensee, its receivers, trustees, assignees, or other
representatives shall have no right to sell, exploit, or in any way deal with
the Licensed Products, the Advertising Materials or the Trademark, except with
the special written consent and instructions of Licensor. 

-A-11- 

5.                 
Discontinuance of Use of Trademark, Etc. Subject to the
provisions of Section K(6), upon the expiration or earlier termination of this
Agreement, the Licensee agrees immediately and permanently to discontinue
manufacturing, selling, advertising, distributing, and using the Licensed
Products and Advertising Materials; immediately and permanently to discontinue
using the Trademark; at Licensor's option, immediately to destroy, in the
presence of Licensor's designated representative, any films, molds, dies,
patterns, or similar items from which the Licensed Products and Advertising
Materials were made, where any Trademark is an integral part thereof, or,
alternatively, deliver such films, molds, dies, patterns, or similar items to
Licensor's designated representative; immediately deliver to Licensor or its
designated representative; and immediately to terminate all agreements with
manufacturers, distributors, and others which relate to the manufacture, sale,
distribution, and use of the Licensed Products. On termination of this
Agreement by Licensor for cause, the Licensee shall, at Licensor's option and
at the Licensee's expense, either deliver its inventory of the Licensed
Products to Licensor or Licensor's designated representative, or destroy its
inventory of the Licensed Products and supply Licensor with a notarized
certificate of destruction.   

6.                 
Disposition of Inventory upon Expiration. Notwithstanding the
provisions of Section K(5), if this Agreement expires in accordance with its
terms, and is not terminated for cause by Licensor, the provisions of this
Section K(6) shall apply. If the Licensee delivers to Licensor on or before the
date 30 days prior to the expiration of this Agreement a written inventory
listing, on a Licensed Product-by-Licensed Product basis, all Licensed Products
in the Licensee's possession, custody, or control as of the date of such
inventory, the Licensee shall have the non-exclusive right to sell any Licensed
Products listed on such inventory for a period of 90 days immediately following
such expiration, subject to the payment of royalties to Licensor on any such
sales in accordance with the terms of this Agreement. The Licensee shall pay
percentage royalties on all Licensed Products sold by the Licensee during said
sell-off period. Licensor shall have the right (but not the obligation) to buy
any or all of the Licensed Products listed on such inventory at the Licensee's
cost of manufacture. The sell-off right granted the Licensee under this Section
K(6) shall in no event apply to a quantity of any Licensed Product exceeding
50% of the Licensee's average quarterly unit sales of such Licensed Product
during the one-year period immediately preceding the expiration of this
Agreement. 

SECTION
L.  MISCELLANEOUS PROVISIONS.  

1.                 
Restriction on Assignments. Without the prior written consent of
Licensor, the Licensee shall not directly or indirectly assign, transfer,
sublicense, or encumber any of its rights under this Agreement. The foregoing
provision shall apply to transfers of ownership interests in the Licensee
(including the stock of the Licensee) which would result in a change in control
of the Licensee. This Agreement shall be binding upon and inure to the benefit
of the successors and assigns of Licensor. 

2.                 
Parties Not Joint Ventures. Nothing contained in this Agreement
shall be construed so as to make the parties partners or joint ventures or to
permit the Licensee to bind Licensor to any agreement or purport to act on
behalf of Licensor in any respect. 

-A-12- 

3.                 
Modifications of Agreement; Remedies. No waiver or modification
of any of the terms of this Agreement shall be valid unless in writing, signed
by both parties. Failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of such rights, and a waiver by
either party of a default in one or more instances shall not be construed as a
continuing waiver or as a waiver in other instances. 

4.                 
Invalidity of Separable Provisions. If any term or provision of
this Agreement is for any reason held to be invalid, such invalidity shall not
affect any other term or provision, and this Agreement shall be interpreted as
if such term or provision had never been contained in this Agreement.  

5.                 
Notices. All notices to be given under this Agreement (which
shall be in writing) shall be given at the respective addresses of the parties
as set forth on page 1, unless notification of a change of address is given in
writing. The date of mailing shall be deemed to be the date the notice is
given. 

6.                 
Headings. The paragraph and section headings of this Agreement
are inserted only for convenience and shall not be construed as a part of this
Agreement. 

7.                 
Entire Understanding. This Agreement contains the entire
understanding of the parties with respect to its subject matter. Any and all representations
or agreements by any agent or representative of either party to the contrary
shall be of no effect. 

8.                 
Choice of Law. This Agreement shall be construed and governed in
accordance with the laws of the State of Colorado, regardless of the place or
places of its physical execution and performance.  

9.                 
Jurisdiction; No Injunctive Relief. Any actions brought by either
party based on or arising out of this Agreement shall be brought exclusively in
the United States District Court for the District of Colorado, or in a state
court located in said district. The Licensee acknowledges that no breach of
this Agreement by Licensor will result in irreparable harm to the Licensee, and
that the Licensee will be adequately compensated by monetary damages for any breach
of this Agreement by Licensor. 

-A-13- 

 EXHIBIT B 

 

INGREDIENT SPECIFICATIONS AND POUCH DESIGN

-B-1-Exhibit 10.01

 

 

AMENDMENT TO GENERAL RELEASE AND WAIVER OF
CLAIMS AGREEMENT

 

This Amendment to the General Release and Waiver
of Claims Agreement is entered into on June 16, 2016 (this “Amendment”), between Neuralstem Inc., a Delaware
corporation having its principal place of business at 20271 Goldenrod Lane, 2nd Floor, Germantown, MD 20876 (“Company”),
and I. Richard Garr, an individual (“Garr”). Collectively the parties may be referred to herein each as a “Party”
and together, the “Parties.”

 

WHEREAS, the Parties have entered into a General
Release and Waiver of Claims Agreement (the “Agreement”), dated March 2, 2016; and

 

WHEREAS, the Parties hereto desire to amend
the Agreement to amend the terms of the severance payments contained in Exhibit A to the Agreement on the terms and subject
to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises
set forth above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties
agree as follows:

 

1.           
Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the
Agreement.

 

2.           
Amendments to the Agreement. As of the Effective Date (as defined below), the Agreement is hereby amended or modified as
follows:

 

(a)               
Exhibit A of the Agreement is hereby amended by deleting the two lump sum payments of $177,000 owed by the Company to Garr
on January 1, 2017 and March 1, 2017, contained in the second bullet point. Accordingly, the second bullet point is replaced in
full with the following language:

 

“Mr. Garr will receive a lump sum of $177,000 on June
1, 2016 (subject to deductions contained below),”

 

3.           
Date of Effectiveness; Limited Effect. This Amendment will be deemed effective on the date first written above (the “Effective
Date”). Except as expressly provided in this Amendment, all of the other terms and provisions of the Agreement are and
will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the
foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Agreement
or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent
of the other Party.

 

4.           
Representations, Warranties and Acknowledgments. Each Party hereby represents and warrants to the other Party that:

 

(a)               
It has the full right, power and authority to enter into this Amendment and to perform its obligations hereunder and under the
Agreement as amended by this Amendment.

 

(b)              
The execution of this Amendment by the individual whose signature is set forth at the end of this Amendment on behalf of such Party,
and the delivery of this Amendment by such Party, have been duly authorized by all necessary corporate action on the part of such
Party.

 

     

     

    

(c)               
This Amendment has been executed and delivered by such Party and (assuming due authorization, execution and delivery by the other
Party hereto) constitutes the legal, valid and binding obligation of such Party, enforceable against such Party in accordance with
its terms.

 

(d)              
The Parties acknowledge and understand that the amendments contained in this Amendment will reduce the severance payments owed
by the Company to Garr pursuant to the Agreement by three hundred fifty four thousand dollars ($354,000).

 

5.           
Representations and Warranties of Garr. Garr hereby represents and warrants the he has received the June 1, 2016 lump sum
payment of $177,000 and that no other lump sum payments are due and owing under the Agreement.

 

6.           
Miscellaneous.

 

(a)               
This Amendment is governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the conflict
of laws provisions of such State.

 

(b)              
This Amendment shall inure to the benefit of and be binding upon each of the Parties and each of their respective successors and
assigns.

 

(c)               
The headings in this Amendment are for reference only and do not affect the interpretation of this Amendment.

 

(d)              
This Amendment may be executed in counterparts, each of which is deemed an original, but all of which constitutes one and the same
agreement. Delivery of an executed counterpart of this Amendment electronically or by facsimile shall be effective as delivery
of an original executed counterpart of this Amendment.

 

(e)               
This Amendment constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein, and
supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with
respect to such subject matter.

 

(f)               
Each Party shall pay its own costs and expenses in connection with this Amendment (including the fees and expenses of its advisors,
accounts and legal counsel).

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

 

    	 	2	 

     

    

[Signature Page to Amendment]

 

IN WITNESS WHEREOF, the Parties have executed this Amendment
as of the date first written above.

 

	 	NEURALSTEM, INC
	 	 	 
	 	By	 	                
	 	 	 
	 	Name: Richard Daly
	 	Title: CEO & Chairman
	 	 	            
	 	I. RICHARD GARR
	 	 	 
	 	By	 	 
	 	 	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

 

 

 

 

 

 

3

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