Document:

Exhibit
      10.29

     

    Portions
      of this Exhibit 10.29 have been omitted based upon a request for confidential
      treatment. This Exhibit, including the non-public information, has been filed
      separately with the Securities and Exchange Commission. "[***]" designates
      portions of this document that have been redacted pursuant to the request for
      confidential treatment filed with the Securities and Exchange
      Commission.

     

    COLLABORATION
      AGREEMENT

     

    by
      and among

     

    Cyberkinetics
      Neurotechnology Systems, Inc.,

     

    NEUROMetrix,
      Inc.,

     

    And

     

    PNIR,
      LLC

     

    February
      19, 2008

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

    

    Table
      of Contents

    

      
        	
                ARTICLE
                  I DEFINITIONS

              	
                1

              
	
                ARTICLE
                  II SCOPE AND STRUCTURE OF THE COLLABORATION

              	
                7

              
	
                Section
                  2.01.     General

              	
                7

              
	
                Section
                  2.02.     Exclusive
                  Relationship and Non-Competition

              	
                7

              
	
                ARTICLE
                  III GRANTS AND RESERVATIONS OF RIGHTS

              	
                9

              
	
                Section
                  3.01.     Licenses
                  of Rights by Cyberkinetics and NEUROMetrix to the Company

              	
                9

              
	
                Section
                  3.02.     Sublicenses
                  of Rights from the Company to Cyberkinetics and

              	 
	                     
                 NEUROMetrix	
                10

              
	
                Section
                  3.03.     Ancillary
                  Rights

              	
                10

              
	
                Section
                  3.04.     License
                  to Joint Inventions

              	
                11

              
	
                Section
                  3.05.     Non-Impairment

              	
                11

              
	
                ARTICLE
                  IV CAPITAL CONTRIBUTIONS; FINANCIAL ARRANGEMENTS

              	
                11

              
	
                Section
                  4.01.     Program
                  Funding Commitments

              	
                11

              
	
                Section
                  4.02.     Distribution
                  of Net Profits

              	
                12

              
	
                Section
                  4.03.     Audit

              	
                12

              
	
                ARTICLE
                  V THE DEVELOPMENT PROGRAM

              	
                13

              
	
                Section
                  5.01.     Conduct
                  of the Development Program

              	
                13

              
	
                Section
                  5.02.     Development
                  Information

              	
                14

              
	
                Section
                  5.03.     Regulatory
                  Approval Filings

              	
                15

              
	
                Section
                  5.04.     Facilities
                  Visits

              	
                15

              
	
                ARTICLE
                  VI SALES, MARKETING AND ADMINISTRATIVE SERVICES

              	
                16

              
	
                Section
                  6.01.     Sales
                  and Marketing Services

              	
                16

              
	
                Section
                  6.02.     Commercialization
                  Plan

              	
                16

              
	
                Section
                  6.03.     General
                  and Administrative Services

              	
                17

              
	
                ARTICLE
                  VII MANUFACTURE AND SUPPLY

              	
                17

              
	
                Section
                  7.01.     Process
                  Development; Manufacturing Approvals

              	
                18

              
	
                Section
                  7.02.     Manufacture
                  and Supply of Collaboration Products for Development

              	 
	                      
                Purposes	
                18

              
	
                Section
                  7.03.     Manufacture
                  and Supply of Collaboration Products for Commercial
                  Sale..18

              
	
                Section
                  7.04.     Device
                  History Record

              	
                19

              
	
                Section
                  7.05.     Certificates
                  of Manufacturing Compliance

              	
                19

              
	
                Section
                  7.06.     Access
                  to Facilities

              	
                19

              
	
                ARTICLE
                  VIII MANAGEMENT

              	
                20

              
	
                Section
                  8.01.     Program
                  Management Team

              	
                20

              
	
                Section
                  8.02.     Steering
                  Committee

              	
                21

              
	
                Section
                  8.03.     General
                  Disagreements

              	
                22

              
	
                ARTICLE
                  IX INTELLECTUAL PROPERTY RIGHTS

              	
                23

              
	
                Section
                  9.01.     Ownership

              	
                23

              
	
                Section
                  9.02.     Filing,
                  Prosecution and Maintenance of Patent Rights

              	
                24

              
	
                Section
                  9.03.     Cooperation

              	
                25

              
	
                Section
                  9.04.     Notification
                  of Patent Issuance

              	
                25

              
	
                Section
                  9.05.     No
                  Other Technology Rights

              	
                25

              
	
                Section
                  9.06.     Enforcement
                  of Patent Rights; Defense of Infringement Actions

              	
                25

              
	
                ARTICLE
                  X CONFIDENTIALITY

              	
                27

              
	
                Section
                  10.01.   Nondisclosure
                  Obligations

              	
                27

              

      

    

     

    
      
         

      

      
        -
          i -

        
          

        

      

      
         

      

    

     

    
      
        	
                Section
                  10.02.   Terms
                  of this Agreement

              	
                27

              
	
                Section
                  10.03.   Publications

              	
                28

              
	
                ARTICLE
                  XI REPRESENTATIONS AND WARRANTIES

              	
                28

              
	
                Section
                  11.01.   Cyberkinetics's
                  Representations and Warranties

              	
                28

              
	
                Section
                  11.02.   NEUROMetrix's
                  Representations and Warranties

              	
                29

              
	
                Section
                  11.03.   Disclaimer
                  of Representations and Warranties

              	
                30

              
	
                Section
                  11.04.   Limitation
                  of Liability

              	
                30

              
	
                ARTICLE
                  XII INDEMNIFICATION

              	
                30

              
	
                Section
                  12.01.   Indemnification
                  by Cyberkinetics

              	
                30

              
	
                Section
                  12.02.   Indemnification
                  by NEUROMetrix

              	
                31

              
	
                Section
                  12.03.   Conditions
                  to Indemnification

              	
                31

              
	
                Section
                  12.04.   Attribution

              	
                31

              
	
                Section
                  12.05.   Insurance

              	
                32

              
	
                ARTICLE
                  XIII TERM AND TERMINATION

              	
                32

              
	
                Section
                  13.01.   Term

              	
                32

              
	
                Section
                  13.02.   Termination

              	
                32

              
	
                Section
                  13.03.   Effect
                  of Termination by Cyberkinetics

              	
                33

              
	
                Section
                  13.04.   Effect
                  of Termination by NEUROMetrix

              	
                34

              
	
                Section
                  13.05.   Cooperation

              	
                36

              
	
                Section
                  13.06.   Survival
                  of Rights and Duties

              	
                36

              
	
                ARTICLE
                  XIV MISCELLANEOUS

              	
                37

              
	
                Section
                  14.01.   Cooperation

              	
                37

              
	
                Section
                  14.02.   Exchange
                  Controls

              	
                37

              
	
                Section
                  14.03.   Withholding
                  Taxes

              	
                37

              
	
                Section
                  14.04.   Interest
                  on Late Payments

              	
                37

              
	
                Section
                  14.05.   Force
                  Majeure

              	
                37

              
	
                Section
                  14.06.   Assignment

              	
                38

              
	
                Section
                  14.07.   Severability

              	
                38

              
	
                Section
                  14.08.   Notices

              	
                38

              
	
                Section
                  14.09.   Applicable
                  Law; Jurisdiction

              	
                39

              
	
                Section
                  14.10.   Dispute
                  Resolution

              	
                39

              
	
                Section
                  14.11.   Entire
                  Agreement

              	
                42

              
	
                Section
                  14.12.   Headings

              	
                42

              
	
                Section
                  14.13.   Interpretation

              	
                42

              
	
                Section
                  14.14.   Independent
                  Contractors

              	
                43

              
	
                Section
                  14.15.   Agreement
                  Not to Solicit Employees

              	
                43

              
	
                Section
                  14.16.   Waiver

              	
                43

              
	
                Section
                  14.17.   Interpretation

              	
                43

              
	
                Section
                  14.18.   Counterparts

              	
                43

              

      

    

     

    
      
         

      

      
        -
          ii -

        
          

        

      

      
         

      

    

     

    COLLABORATION
      AGREEMENT 

     

    THIS
      COLLABORATION AGREEMENT ("Agreement"),
      dated
      as of February 19, 2008 (the "Effective
      Date"),
      is
      made by and among Cyberkinetics Neurotechnology Systems, Inc., a Delaware
      corporation having its principal place of business at 100 Foxborough Boulevard,
      Suite 240, Foxborough, Massachusetts 02035 ("Cyberkinetics");
      NEUROMetrix, Inc., a Delaware Corporation having its principal place of business
      at 62 Fourth Avenue, Waltham, Massachusetts 02451 ("NEUROMetrix");
      and
      PNIR, LLC, a Delaware Limited Liability Company having its principal place
      of
      business at 62 Fourth Avenue, Waltham, Massachusetts 02451 (the "Company";
      Cyberkinetics, NEUROMetrix and the Company are sometimes referred to herein
      individually as a "Party"
      and
      sometimes referred to herein collectively as the "Parties").

     

    
      R
        E C I T A L S

       

      A. Cyberkinetics,
        among other activities, is currently developing the AndaraTM Oscillating Field
        Stimulator (OFSTM) device technology platform to treat a wide range of nervous
        system injuries, disorders and conditions.

       

      B. NEUROMetrix
        has expertise in the areas of detection, measurement, diagnosis and treatment
        of
        a wide range of peripheral neurological conditions.

       

      C. The
        Company has been organized by Cyberkinetics and NEUROMetrix as a joint venture
        to engage in research and development activities in the Field (as herein
        defined) and to develop and commercialize the Collaboration Products (as
        herein
        defined) throughout the world.

       

      NOW,
        THEREFORE,
        in
        consideration of the premises and of the covenants herein contained, the
        Parties
        mutually agree as follows:

    

     

    ARTICLE
      I

     

     

    DEFINITIONS 

     

    For
      purposes of this Agreement, the terms defined in this Article shall have the
      meanings specified below. Certain other capitalized terms are defined elsewhere
      in this
      Agreement.

     

    "Affiliate"
      with
      respect to the specified Party, shall mean any corporation or other entity
      which
      controls, is controlled by, or is under common control with such Party. A
      corporation or other entity shall be regarded as in control of another
      corporation or entity if it owns or directly or indirectly controls more than
      fifty percent (50%) of the voting stock or other ownership interest of the
      other
      corporation or entity, or if it possesses, directly or indirectly, the power
      to
      direct or cause the direction of the management and policies of the corporation
      or other entity or the power to elect or appoint more than fifty percent (50%)
      of the members of the governing body of the corporation or other entity.
      Notwithstanding the foregoing, each Party is hereby deemed not to be an
      "Affiliate" of any other Party for the purposes of this Agreement. 

     

    "Collaboration
      Product"
      shall
      mean any product or process for use in the Field that is the subject of the
      activities described in the Development Plan, or that otherwise arises in
      connection with the Parties' performance of their obligations under the
      Development Plan (including without limitation, the Parties' direct performance
      of such obligations and the performance of such obligations by any
      subcontractor), as such products or processes may be improved or modified during
      the term of this Agreement. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

      "Commercialization
        Costs"
        shall
        mean the direct variable costs and direct fixed costs incurred by Cyberkinetics,
        NEUROMetrix, or any of their Affiliates, on or after the Effective Date,
        to
        perform, or to have performed by a subcontractor approved by the Company,
        such
        Party's obligations under the Commercialization Plan, to the extent such
        costs
        conform to the budget in the Commercialization Plan for such activities or
        otherwise approved in writing by the Steering Committee. For purposes of
        this
        definition: (i) "direct variable costs" shall mean and include: (a) charges
        for
        the cost of labor, raw materials, supplies and other resources directly and
        reasonably consumed in the conduct of the Commercialization Plan, (b) amounts
        paid to subcontractors approved by the Company to perform a Party's obligations
        under the Commercialization Plan, (c) amounts paid or payable by Cyberkinetics
        or its Affiliates to Third Parties for access to or use of intellectual property
        rights approved by the Steering Committee, including without limitation,
        intellectual property rights that are subject, as of the Effective Date,
        to a
        license agreement listed and designated as a "License" on Schedule A, which
        agreements are hereby deemed to be approved by the Steering Committee for
        purposes of this Agreement and (d) amounts paid or payable by NEUROMetrix
        or its
        Affiliates to Third Parties for access to or use of intellectual property
        rights
        approved by the Steering Committee, including without limitation, intellectual
        property rights that are subject, as of the Effective Date, to a license
        agreement listed on Schedule C, which agreements are hereby deemed to be
        approved by the Steering Committee for purposes of this Agreement; provided
        that: (1) the foregoing amounts payable under the agreements listed and
        designated as a "License" on Schedule A and agreements listed on Schedule
        C,
        respectively, shall not include payments under such agreements specifically
        for
        access to or use of intellectual property rights which are added to any such
        agreements after the Effective Date, (2) the foregoing amounts shall only
        include payments that are on account of the sale of Collaboration Products,
        (3)
        the foregoing amounts shall only be included within the definition of
        "Commercialization Costs" to the extent they equal but do not exceed a total
        of
        [***] of the Net Sales of the relevant Collaboration Product, and (4) for
        avoidance of doubt, all such amounts in excess of such [***] cap (excluding
        payments specifically for access to or use of intellectual property rights
        which
        may be added to such an agreement after the Effective Date as approved hereunder
        by the Steering Committee), shall be and remain Cyberkinetics's obligation
        in
        the case of agreements designated as a "License" on Schedule A and shall
        be and
        remain NEUROMetrix's obligation in the case of agreements listed on Schedule
        C,
        and (ii) "direct fixed costs" shall mean and include the cost of facilities,
        utilities, insurance, equipment depreciation and other fixed costs incurred
        in
        connection with a Party's performance of its obligations under the
        Commercialization Plan, allocated based upon the proportion of such costs
        directly attributable to such performance, or by such other method of cost
        allocation as may be approved by the Steering Committee. All cost determinations
        made hereunder shall be made in accordance with United States generally accepted
        accounting principles, consistently applied. Notwithstanding the foregoing
        clauses "(i)(c)" and "(i)(d)", all maintenance fees that become payable (x)
        under that certain License Agreement between Cyberkinetics and Purdue Research
        Foundation, dated February 28, 2005, including for example the fees described
        in
        Section 4.3 of that agreement, shall be and remain payable by Cyberkinetics
        and
        shall not be includable as "Commercialization Costs" nor otherwise shared
        with
        the Company or NEUROMetrix and (y) under any agreements identified on
Schedule
        C
        shall be
        and remain payable by NEUROMetrix and shall not be includable as
        "Commercialization Costs" nor otherwise shared with the Company or
        Cyberkinetics.

    

     

    
      
         

      

      
        -
          2 -

        
          

        

      

      
         

      

    

     

    "Commercialization
      Plan"
      shall
      mean the comprehensive plan for the commercialization of each Collaboration
      Product, as more specifically described in Section
      6.02(a)
      of this
      Agreement.

     

    "Commercially
      Reasonable and Diligent Efforts"
      shall
      mean that level of effort and care which, consistent with the exercise of
      prudent scientific and business judgment, would be applied by other US-based
      companies within the medical device industry to develop and commercialize a
      medical device product that is at a similar stage of development and has similar
      commercial potential, including without limitation, that such activities are
      performed in accordance with this Agreement, the Transaction Agreements and
      all
      applicable laws and regulations.

     

    "Company's
      Operating Agreement"
      shall
      mean the Limited Liability Company Agreement of even date herewith between
      Cyberkinetics and NEUROMetrix.

     

    "Control"
      shall
      mean, when used in reference to a specified Patent Right or Technology, the
      right of a Party or one of its Affiliates to grant a right or license in or
      to
      such Patent Right or Technology, as provided in this Agreement, without
      breaching a contractual obligation to a Third Party. 

     

    "Cyberkinetics
      Licensors"
      shall
      mean the licensors of Patent Rights licensed to Cyberkinetics and included
      in
      the Cyberkinetics Patent Rights sublicensed to the Company. Cyberkinetics
      Licensors as of the Effective Date are listed on Schedule
      A
      attached
      hereto.

     

    "Cyberkinetics
      Manufacturing Know-How"
      shall
      mean all Manufacturing Know-How owned or Controlled by Cyberkinetics or any
      of
      its Affiliates, now or at anytime during the term of this Agreement, that
      relates to or is useful in the Field.

     

    "Cyberkinetics
      Patent Rights"
      shall
      mean all Patent Rights owned or Controlled by Cyberkinetics or any of its
      Affiliates, as of the Effective Date or at anytime during the term of this
      Agreement, to the extent that such Patent Rights claim an invention or
      technology relating to or useful in the Field, including, without limitation,
      the patent applications and patents listed on Schedule
      B
      attached
      hereto. 

     

    "Cyberkinetics
      Technology"
      shall
      mean all Technology owned or Controlled by Cyberkinetics or any of its
      Affiliates, now or at anytime during the term of this Agreement, that relates
      to
      or is useful in the Field.

     

    "Development
      Costs"
      shall
      mean the direct variable costs and direct fixed costs incurred by Cyberkinetics,
      NEUROMetrix, or any of their Affiliates, on or after the Effective Date, to
      perform, or to have performed by a subcontractor approved by the Company, such
      Party's obligations under the Development Plan, to the extent such costs conform
      to the budget in the Development Plan for such activities or otherwise approved
      in writing by the Steering Committee. For purposes of this definition: (i)
      "direct variable costs" shall mean and include: (a) charges for the cost of
      labor, raw materials, supplies and other resources directly and reasonably
      consumed in the conduct of the Development Plan and (b) amounts paid to
      subcontractors approved by the Company to perform a Party's obligations under
      the Development Plan and (ii) "direct fixed costs" shall mean and include the
      cost of facilities, utilities, insurance, equipment depreciation and other
      fixed
      costs incurred in connection with a Party's performance of its obligations
      under
      the Development Plan, allocated based upon the proportion of such costs directly
      attributable to such performance, or by such other method of cost allocation
      as
      may be approved by the Steering Committee. All cost determinations made
      hereunder shall be made in accordance with United States generally accepted
      accounting principles, consistently applied. 

     

    
      
         

      

      
        -
          3 -

        
          

        

      

      
         

      

    

     

    "Development
      Plan"
      shall
      mean the comprehensive plan and budget for the development of each Collaboration
      Product under the Development Program, as more specifically described in
Section
      5.01(b)
      of this
      Agreement.

     

    "Development
      Program"
      shall
      mean the activities conducted, or to be conducted, in the performance of the
      Development Plan for each Collaboration Product.

     

    "Effective
      Date"
      shall
      mean the date appearing in the first paragraph of this Agreement.

     

    "Existing
      Cyberkinetics Patent Rights"
      shall
      mean all Patent Rights owned or Controlled by Cyberkinetics or any of its
      Affiliates, as of the Effective Date, to the extent that such Patent Rights
      claim an invention or technology relating to or useful in the
      Field.

     

    "Existing
      NEUROMetrix Patent Rights"
      shall
      mean all Patent Rights owned or Controlled by NEUROMetrix or any of its
      Affiliates, as of the Effective Date, to the extent that such Patent Rights
      claim an invention or technology relating to or useful in the
      Field.

     

    "FDA"
      shall
      mean the United States Food and Drug Administration, any successor agency,
      or
      the regulatory authority of any country other than the United States with
      responsibilities comparable to those of the United States Food and Drug
      Administration.

     

    "Field"
      shall
      mean the treatment of peripheral nervous system injury, disease or disorders,
      in
      humans, with an electrical field; provided, however, the term Field shall not
      include (a) the treatment of injury, disease or disorders in humans that do
      not
      originate from the peripheral nervous system and affect, in substantially the
      same manner, both the central nervous and peripheral nervous systems, (b) the
      treatment of central nervous system injury, disease or disorders in humans,
      (c)
      the treatment of peripheral nervous system injury, disease or disorders with
      drugs (whether chemical compounds or biologics), alone as a drug product, or
      as
      an active ingredient in a single product consisting of a drug and a medical
      device (for avoidance of doubt, the phrase "single product" as used in this
      definition means that the drug and medical device as configured for sale cannot
      feasibly be divided by the purchaser for use separately) even if such product's
      safety or efficacy is believed to rely in part on the use of an electrical
      field
      or (d) the diagnosis or treatment of peripheral nervous system injury, disease
      or disorders in humans with quantitative localization of the peripheral nerve
      and without using an electrical field as part of the therapy. 

     

    "Knowledge"
      with
      respect to NEUROMetrix shall mean the actual knowledge, without independent
      investigation, of Shai N. Gozani, W. Bradford Smith, Xuan Kong, Michael L.
      Williams and Charles Fendrock, and, with respect to Cyberkinetics shall mean
      the
      actual knowledge, without independent investigation, of Timothy Surgenor, Mark
      Carney, J. Christopher Flaherty, Jessica Duda and Kurt Kruger.

     

    
      
         

      

      
        -
          4 -

        
          

        

      

      
         

      

    

     

    "Manufacturing
      Know-How"
      shall
      mean all information, data, processes, know-how, techniques, inventions,
      discoveries, improvements, practices, methods, knowledge, skill, experience,
      and
      other technology, whether or not patentable or copyrightable, and any and all
      intellectual property rights appurtenant thereto, including without limitation,
      Patent Rights, copyrights, and trade secrets, in each case, relating to the
      manufacture, in-process and release testing, packaging, storage and
      transportation of products, including without limitation, ingredient and
      component lists, supplier lists, raw material, in-process and finished product
      specifications, acceptance criteria, manufacturing records, standard operating
      procedures, engineering plans, installation, operation and process qualification
      protocols for equipment and facilities, validation records, quality programs,
      master files submitted to the FDA, process validation reports, environmental
      monitoring processes, test data including clinical test data, cost data and
      employee training materials.

     

    "NEUROMetrix
      Licensors"
      shall
      mean the licensors of Patent Rights licensed to NEUROMetrix and included in
      the
      NEUROMetrix Patent Rights sublicensed to the Company. NEUROMetrix Licensors
      as
      of the Effective Date are listed on Schedule
      C
      attached
      hereto. 

     

    "NEUROMetrix
      Manufacturing Know-How"
      shall
      mean all Manufacturing Know-How owned or Controlled by NEUROMetrix or any of
      its
      Affiliates, now or at anytime during the term of this Agreement, that relates
      to
      or is useful in the Field.

     

    "NEUROMetrix
      Patent Rights"
      shall
      mean all Patent Rights owned or Controlled by NEUROMetrix or any of its
      Affiliates, as of the Effective Date or at anytime during the term of this
      Agreement, to the extent that such Patent Rights claim an invention or
      technology relating to or useful in the Field, including, without limitation,
      the patent applications and patents listed on Schedule
      D
      attached
      hereto. 

     

    "NEUROMetrix
      Technology"
      shall
      mean all Technology owned or Controlled by NEUROMetrix or any of its Affiliates,
      now or at anytime during the term of this Agreement, that relates to or is
      useful in the Field.

     

    "Net
      Sales"
      with
      respect to a product shall mean the gross invoiced sales price of such product
      billed to independent Third Party customers, including without limitation
      distributors, in bona fide arms-length transactions, less, for purposes only
      of
      calculating the payments set forth in Article
      XIII,
      to the
      extent such amounts are included in the gross invoiced sales price, actual:
      (a) freight and insurance costs incurred in transporting such product to
      such customers; (b) quantity, cash and other trade discounts actually
      allowed and taken; (c) customs duties, surcharges and taxes and other
      governmental charges incurred in connection with the exportation or importation
      of such product in final form; (d) bad debt expense; (e) amounts
      repaid or credited by reason of rejections or retroactive price reductions;
      (f) amounts incurred resulting from governmental mandated rebate or
      discount programs; and (g) Third Party rebates and chargebacks actually
      allowed and taken, including hospital buying group chargebacks, hospital buying
      group/group purchasing organization administration fees or managed care
      organization rebates. The amount of Net Sales for any period shall be determined
      on the basis of sales recorded in such period in accordance with United States
      generally accepted accounting principles, consistently applied. The transfer
      of
      a product to Cyberkinetics or NEUROMetrix (or one of their Affiliates) shall
      not
      be considered a sale; in such cases, Net Sales shall be determined based on
      the
      invoiced sales price to the first Third Party customer, less the foregoing
      deductions, as applicable.

     

    
      
         

      

      
        -
          5 -

        
          

        

      

      
         

      

    

     

    "Patent
      Rights"
      shall
      mean: (i) all patents, patent applications, certificates of invention,
      applications for certificates of invention, and supplemental protection
      certificates, (ii) all extensions, registrations, confirmations, reissues,
      divisions, continuations or continuations-in-part, re-examinations or renewals
      of any of the items listed in the foregoing clause "(i)" and (iii) all foreign
      (ex-US) counterparts of any of the items listed in the foregoing clause "(i)"
      and "(ii)".

     

    "Program"
      shall
      mean the collaboration among the Company, Cyberkinetics and NEUROMetrix
      described in this Agreement.

     

    "Program
      Costs"
      shall
      mean all Development Costs and Commercialization Costs.

     

    "Program
      Management Team"
      shall
      mean the joint team composed of representatives of Cyberkinetics and NEUROMetrix
      described in Section
      8.01(a)
      of this
      Agreement. 

     

    "Regulatory
      Approvals"
      shall
      mean all approvals from regulatory authorities in any country required to
      develop, test, manufacture, market, import, distribute, sell and use a
      Collaboration Product in any such country, including without limitation, any
      510K or Premarket Approval Application (PMA) filed with the FDA, any
      establishment license application filed with the FDA to obtain approval of
      the
      facilities and equipment to be used to manufacture a Collaboration Product,
      any
      device master file filed with FDA, regulatory filings that are equivalent to
      each of the foregoing examples that are made with any agency or authority of
      a
      governmental entity outside of the United States having similar authority to
      the
      FDA, and any product pricing approvals, where applicable.

     

    "Steering
      Committee"
      shall
      mean the governing body of the Company composed of representatives of
      Cyberkinetics and NEUROMetrix as described in Section
      8.02(a)
      of this
      Agreement. 

     

    "Technology"
      shall
      mean all information, data, processes, know-how, techniques, inventions,
      discoveries, improvements, practices, methods, knowledge, skill, experience,
      and
      other technology, in each case that is unpatented or unpatentable, and any
      and
      all intellectual property rights appurtenant thereto, including without
      limitation, copyrights, trade names, trademarks, service marks and trade
      secrets. 

     

    "Third
      Party"
      shall
      mean any entity other than the Company,
      Cyberkinetics
      or NEUROMetrix (and their respective Affiliates).

     

    "Transaction
      Agreements"
      shall
      mean and include the Company's Operating Agreement and any and all other written
      agreements entered into be and between any of the Parties and relating to the
      performance of the Program, including without limitation, the Marketing
      Agreement, the Services Agreement and the Manufacturing Agreement.

     

    
      
         

      

      
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    ARTICLE
      II

     

    SCOPE
      AND STRUCTURE OF THE COLLABORATION 

     

    Section
      2.01. General.

     

     Cyberkinetics
      and NEUROMetrix have formed the Company to research the viability of the use
      of
      an electrical field to treat peripheral nerve injuries, diseases and disorders
      in humans and, assuming such research demonstrates the viability thereof, as
      well as safety and efficacy of such treatment, to develop and commercialize
      Collaboration Products throughout the world. The Company will undertake the
      Development Program for each of the Collaboration Products, with each of the
      Parties assuming responsibility for those portions of the Development Program
      allocated to it under the Development Plan and this Agreement, and as the
      Parties may otherwise agree upon in writing. Upon completion of the Development
      Program (and assuming the viability of the treatment with an electrical field
      is
      demonstrated), Cyberkinetics will manufacture the Collaboration Products for
      commercial sale by the Company, and NEUROMetrix will market and sell the
      Collaboration Products as agent for and on behalf of the Company, on the terms
      and conditions provided for in the Commercialization Plan and this Agreement,
      and as the Parties may otherwise agree upon in writing.

     

    Section
      2.02. Exclusive
      Relationship and Non-Competition.

     

    (a) Basic
      Restrictions.
      During
      the term of this Agreement, neither the Company, Cyberkinetics nor NEUROMetrix
      (nor any of their Affiliates) shall independently, or with a Third Party, engage
      in the commercialization, manufacture, marketing, sale or distribution of,
      any
      products for use in the Field, other than as part of the Program. In addition,
      during the two-year period following termination of this Agreement under
Section
      13.02(a)
      or
Section
      13.02(b),
      the
      Party whose breach of this Agreement led to a termination under Section
      13.02(a)
      or the
      Party that elects to terminate this Agreement under Section
      13.02(b),
      as
      applicable, and such Party's Affiliates, shall not independently, or with a
      Third Party, conduct research regarding, or engage in the development,
      commercialization, manufacture, marketing, sale or distribution of, any products
      in the Field. The restrictions set forth in this Section
      2.02(a)
      shall
      survive the termination of this Agreement as and to the extent set forth
      herein.

     

    (b) Competitive
      Product Restrictions.
      During
      the term of this Agreement, neither Cyberkinetics nor NEUROMetrix, nor any
      of
      their respective Affiliates (in each case the "Restricted Party"), shall
      independently, or with or through a Third Party, sell
      or
      otherwise commercialize, or use for commercial purposes, a
      product
      to treat peripheral nerve injury, disease or disorders, if such product's safety
      or efficacy is reasonably believed to rely in material part on the use of an
      electrical field (each a "Competitive Product"), even if such product consists
      in part of a drug (whether chemical compounds or biologics), except in
      connection with the Research Program or as provided in this Section
      2.02(b).
      

     

    (i) Right
      of First Negotiation.
      The
      Company shall have a right of first negotiation with respect to each Competitive
      Product as follows. 

     

    
      
         

      

      
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    (ii) Competitive
      Products.
      If at
      anytime during the term, the Restricted
      Party
      desires
      to sell or otherwise commercialize, or use for commercial purposes, a
      Competitive Product, the Restricted
      Party
      shall so
      notify the Company and those two Parties shall negotiate in good faith towards
      a
      license, co-promotion, asset sale or similar agreement pursuant to which the
      Company and the Restricted
      Party
      would
      engage in such activities. If such Parties fail to enter into a license,
      co-promotion, asset sale or similar agreement, the Restricted
      Party
      shall be
      prohibited from continuing forward with the sale, or other commercialization,
      or
      use for commercial purposes, of such Competitive Product except as provided
      in
      this Section
      2.02(b).
      Specifically, if the Restricted
      Party desires to sell
      or
      otherwise commercialize, or use for commercial purposes a
      Competitive Product, before commencing such activities, the
      Restricted
      Party will notify the Company of its desire and will provide the Company with
      a
      notice
      identifying the Competitive Product and an outline of the planned activities
      (i.e., a proposed plan for commercialization, or a proposal to sell the rights
      to the Competitive Product). If the Company notifies the Restricted
      Party
      in
      writing of its election to pursue a license, co-promotion, asset sale or similar
      agreement for such Competitive Product within twenty (20) days after the
      Company's receipt of such notice, the Restricted
      Party
      and the
      Company shall enter
      into good faith negotiations with respect to such an agreement for a period
      of
      ninety (90) days following the
      Restricted
      Party's receipt of such election from the Company (the "Negotiation Period").
      During the Negotiation Period, the Company may present one or more term sheets
      to the
      Restricted
      Party (each a "Company Term Sheet") and the
      Restricted
      Party will either agree to a Company Term Sheet and the Parties will move
      forward to negotiate a definitive agreement based on such term sheet, or
the
      Restricted
      Party will promptly provide a counter-offer term sheet to the Company (the
      "Counter Offer"). During the Negotiation Period, the
      Restricted
      Party may revise the terms and conditions of the Counter Offer to the Company.
       

     

    (iii) Access
      to Information.
      During
      the Negotiation Period, the
      Restricted
      Party shall promptly provide the Company with additional information available
      to the
      Restricted
      Party that is related to the Competitive Product that would be subject to the
      license, and reasonable access to personnel and facilities, as reasonably
      requested by the Company as part of its due diligence with respect to such
      license. Such disclosure of information shall be subject to suitable
      confidentiality and non-use restrictions to be negotiated by the parties at
      such
      time. 

     

    (iv) Failure
      to Reach Agreement; the
      Restricted
      Party's Right to Negotiate.
      If
      the
      Company does not provide the Restricted
      Party
      with
      such notice of its election to pursue a license, co-promotion, asset sale or
      similar agreement within the thirty (30) day period after receipt of a notice
      as
      described in Section
      2.02(b)(ii),
      the
Restricted
      Party will then be free to enter into negotiations with any Third Party, and
      the
      Restricted
      Party shall have the right to enter into an agreement with respect to the
Competitive
      Product generally in accordance with the terms set forth in the proposed plan
      for commercialization or proposal to sell the rights to the Competitive Product.
      If the Company does pursue an agreement as set forth in Section
      2.02(b)(ii),
      but,
      despite the Parties' compliance with such Section
      2.02(b)(ii),
      the
Restricted
      Party and the Company do not reach an agreement during the Negotiation Period,
      then the
      Restricted
      Party will then be free to enter into negotiations with any Third
      Party
      regarding such an
      agreement for
      such
      Competitive Product, provided that such agreement shall have the same scope
      and
      general terms as included in the last Counter Offer of the Restricted Party
      delivered to the Company under Section
      2.02(b)(ii),
      subject
      to the provisions set forth in Section
      2.02(b)(v).

     

    
      
         

      

      
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    (v) Limitation
      on the Restricted
      Party's
      Right to Enter Agreements with a Third Party.
      The
Restricted
      Party shall not enter into any such agreement with a Third Party for a
      Competitive Product on terms and conditions which, when taken as a whole, are
      materially less favorable to the
      Restricted
      Party than the terms and conditions set forth in the last Counter Offer offered
      by the
      Restricted
      Party to the Company as described in Section
      2.02(b)(ii).

     

    (vi) Continued
      Effectiveness of the Company Rights.
      In the
      event that the
      Restricted
      Party has not entered into an agreement with a Third Party with respect to
      the
      Competitive Product as permitted under Section
      2.02(b)(v)
      within
      six (6) months following the end of a Negotiation Period, then thereafter,
      if
the
      Restricted
      Party desires to enter into such an agreement, the
      Restricted
      Party will first notify the Company of its desire and the procedure described
      in
      this Section
      2.02(b)
      shall
      apply again.

    

    (c) The
      provisions of each of the foregoing subsections of this Section
      2.02
      shall be
      deemed to be separate and independent restrictions. 

     

    ARTICLE
      III

     

    GRANTS
      AND RESERVATIONS OF RIGHTS

     

    Section
      3.01. Licenses
      of Rights by Cyberkinetics and NEUROMetrix to the
      Company.

     

    (a) Grant
      by Cyberkinetics.
      Except
      as otherwise expressly provided herein, Cyberkinetics hereby grants to the
      Company the exclusive, worldwide, irrevocable (during the term of this Agreement
      and thereafter to the extent specifically provided in Article
      XIII
      hereof),
      royalty-free (except for the obligation to pay amounts to Cyberkinetics as
      "Commercialization Costs" in reimbursement of amounts paid by Cyberkinetics
      to
      Cyberkinetics Licensors to the extent triggered by or on account of the
      activities of the Company) right and license, with the right to grant
      sublicenses, under the Cyberkinetics Patent Rights, the Cyberkinetics Technology
      and the Cyberkinetics Manufacturing Know-How, to develop, make, have made,
      use,
      offer for sale, sell, have sold, import and export Collaboration Products.
      In
      addition to the foregoing, during the term of the Agreement, Cyberkinetics
      hereby grants to the Company a non-exclusive and royalty-free license to use,
      and have used, any of the following trademarks in connection with any of the
      Collaboration Products and the distribution, marketing and sale thereof by
      the
      Company, or by NEUROMetrix on behalf of the Company (collectively, the "Licensed
      Uses"): AndaraTM Oscillating Field StimulatorTM and AndaraTM OFSTM and OFSTM (the
      "Licensed Trademarks"). The Company and NEUROMetrix shall perform all acts
      reasonably requested by Cyberkinetics to assure that the nature and quality
      of
      the Company's use of the Licensed Trademarks are consistent with and do not
      detract from the goodwill associated with the Licensed Trademarks. All use
      of
      the Licensed Trademarks and the goodwill associated therewith shall inure to
      the
      benefit of Cyberkinetics. Neither the Company nor NEUROMetrix shall file any
      application to register any Licensed Trademark, in whole or in part, or any
      mark
      that is confusingly similar to any Licensed Trademark, at any time during the
      term of the Agreement or thereafter. Neither the Company nor NEUROMetrix shall,
      during the term of the Agreement or thereafter, challenge Cyberkinetics' or
      its
      affiliates' title to or rights in the Licensed Trademarks. The Company shall
      ensure that the Licensed Trademarks are: (a) used in conjunction with the ® or TM
designations as directed by Cyberkinetics; (b) not modified in any manner
      without the prior written consent of Cyberkinetics; (c) used alone without
      any
      other terms or designs which may detract from the Licensed Trademarks; and
      (d)
      reproduced according to specifications that may be provided from time to time
      by
      Cyberkinetics. 

     

    
      
         

      

      
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    (b) Grant
      by NEUROMetrix.
      Except
      as otherwise expressly provided herein, NEUROMetrix hereby grants to the Company
      the exclusive, worldwide, irrevocable (during the term of this Agreement and
      thereafter to the extent specifically provided in Article
      XIII
      hereof),
      royalty-free (except for the obligation to pay amounts to NEUROMetrix as
      "Commercialization Costs" in reimbursement of amounts paid by NEUROMetrix to
      NEUROMetrix Licensors to the extent triggered by or on account of the activities
      of the Company) right and license, with the right to grant sublicenses, under
      the NEUROMetrix Patent Rights, NEUROMetrix Technology and the NEUROMetrix
      Manufacturing Know-How, to develop, make, have made, use, offer for sale, sell,
      have sold, import and export Collaboration Products. 

     

    (c) Sublicense
      Rights.
      Except
      as provided in Section
      3.02,
      the
      Company shall not grant any sublicenses of any of the rights granted under
      this
Section
      3.01
      without
      the prior written consent of the Steering Committee. 

     

    Section
      3.02. Sublicenses
      of Rights from the Company to Cyberkinetics and
      NEUROMetrix.

     

     The
      Company hereby grants to each of Cyberkinetics and NEUROMetrix a non-exclusive,
      worldwide, irrevocable, royalty-free right and sublicense under the Patent
      Rights, Technology and Manufacturing Know-How licenses granted to it pursuant
      to
Section
      3.01
      solely
      to the extent required to permit such Party (and its permitted subcontractors)
      to perform its duties under this Agreement in connection with the
      Program.

     

    Section
      3.03. Ancillary
      Rights.

     

     Anything
      herein to the contrary notwithstanding, Cyberkinetics and NEUROMetrix shall
      both
      have the right and license hereunder during the term of this Agreement to make,
      have made and use Collaboration Products for research purposes. 

     

    
      
         

      

      
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    Section
      3.04. License
      to Joint Inventions.

     

     Company
      hereby grants to Cyberkinetics the exclusive, worldwide, irrevocable,
      royalty-free right and license, with the right to grant sublicenses, under
      the
      Joint Inventions (defined in Section
      9.01(a))
      to
      develop, make, have made, use, offer for sale, sell, have sold, import and
      export products and services to diagnose and treat spinal cord injuries,
      diseases and disorders in humans. Company hereby grants to NEUROMetrix the
      exclusive, worldwide, irrevocable, royalty-free right and license, with the
      right to grant sublicenses, under the Joint Inventions to develop, make, have
      made, use, offer for sale, sell, have sold, import and export products and
      services to diagnose and treat peripheral nerve injuries, diseases or disorders
      with the injection of a therapeutic agent or agents.

     

    Section
      3.05. Non-Impairment.

     

     Cyberkinetics
      and NEUROMetrix hereby covenant and agree that neither of them shall take any
      action, or fail to take any reasonable action, that, in either case, would
      impair or limit, in any material respect, the scope or enforceability of the
      licenses or other rights granted under this Agreement (including without
      limitation the licenses granted in this Article III and the rights and licenses
      granted in Article XIII) or that would impair or limit in any material respect
      such Party's ability to perform its obligations hereunder and under the other
      Transaction Documents, including for example, terminating, or breaching (and
      failing to cure such breach), any agreement listed on Schedule A or Schedule
      C,
      or any other agreement pursuant to which one of the Parties obtained access
      to
      intellectual property rights, for use hereunder, as approved by the Steering
      Committee.

     

    ARTICLE
      IV

     

    CAPITAL
      CONTRIBUTIONS; FINANCIAL ARRANGEMENTS

     

    Section
      4.01. Program
      Funding Commitments

     

    (a) NEUROMetrix's
      Program Funding Commitment.
      Subject
      to the terms and conditions set forth herein, NEUROMetrix hereby undertakes
      to
      make capital contributions to the Company in an amount equal to the Program
      Costs incurred during the term of this Agreement up to a maximum of two million
      dollars ($2,000,000) as an initial funding contribution (the Program Costs
      incurred over such period, subject to the referenced cap, is the "NEUROMetrix
      Initial Funding Commitment")
      plus
      (ii) fifty percent (50%) of the Program Costs incurred by the Company after
      the NEUROMetrix Initial Funding Commitment has been reached. NEUROMetrix' first
      capital contribution shall be paid within fifteen (15) days after the approval
      of the initial Development Plan by the Steering Committee. Such capital
      contribution shall be in an amount equal to the operating budget of the Company,
      as set forth in the initial Development Plan and approved by the Steering
      Committee, for the first quarter of the Company's operations. All other
      NEUROMetrix capital contributions hereunder shall be payable on a quarterly
      basis, as required to fund NEUROMetrix' share of the budget under the
      Development Plan for the next quarter annual period, such amounts being due
      and
      payable no later than fifteen (15) days in advance of the commencement of the
      relevant quarter annual period. 

     

    (b) Cyberkinetics's
      Program Funding Commitment.
      Subject
      to the terms and conditions set forth herein, Cyberkinetics hereby undertakes
      to
      make capital contributions to the Company sufficient to pay fifty percent (50%)
      of all Program Costs incurred by the Company after the NEUROMetrix Initial
      Funding Commitment has been reached. All Cyberkinetics capital contributions
      hereunder shall be payable on a quarterly basis, as required to fund
      Cyberkinetics' share of the budget under the Development Plan for the next
      quarter annual period, such amounts being due and payable no later then fifteen
      (15) days in advance of the commencement of the relevant quarter annual period.
      

     

    
      
         

      

      
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    (c) External
      Funding.
      The
      Company may receive grants, awards and other funding from government and
      not-for-profit organization sources. Any such grants, awards and funding shall
      equally offset (50% to Cyberkinetics and 50% to NEUROMetrix) the funding
      commitments of each of the Parties as set forth in clauses (a) and (b) above,
      and such funding commitments shall be adjusted accordingly; provided that such
      amounts shall not be used to reduce NEUROMetrix required cash capital
      contributions unless NEUROMetrix has already made two million dollars
      ($2,000,000) in total capital contributions. The Company shall reimburse
      Cyberkinetics and NEUROMetrix for reasonable out-of-pocket expenses directly
      incurred by either of them in connection with securing any such funding as
      follows: all reasonable out-of-pocket expenses directly incurred between
      November 13, 2007 and the Effective Date shall be reimbursed but, after the
      Effective Date, only amounts approved by the Steering Committee for such efforts
      shall be reimbursable under this Section.

     

    (d) Expense
      Reimbursement.
      After
      the Effective Date, any Program Costs paid directly by Cyberkinetics or
      NEUROMetrix (or any of their Affiliates) to any Third Party, in accordance
      with
      the Development Plan, the Commercialization Plan or otherwise pursuant to the
      authorization of the Steering Committee, shall be reimbursed by the Company,
      or
      offset against the funding requirements of the respective Parties as set forth
      in clauses (a) and (b) above, on a quarterly basis, upon presentation to the
      Company of reasonably sufficient evidence of such expenditure. For avoidance
      of
      doubt, to the extent that costs incurred by NEUROMetrix or Cyberkinetics to
      provide goods or services to the Company in accordance with the Development
      Plan
      or Commercialization Plan are properly categorized as Program Costs, such
      amounts shall be paid to NEUROMetrix or Cyberkinetics, as applicable, in
      accordance with this Agreement, or any Transaction Agreement, as applicable.
      

     

    Section
      4.02. Distribution
      of Net Profits.

     

     The
      net profits of the Company shall be allocated to Cyberkinetics and NEUROMetrix
      as set forth in the Company's Operating Agreement. 

     

    Section
      4.03. Audit.

     

     Each
      of Cyberkinetics and NEUROMetrix shall keep and maintain proper and complete
      records and books of account documenting all Program Costs incurred by it.
      Each
      Party shall permit independent accountants retained by the other Parties to
      have
      access to its records and books for the sole purpose of determining the
      appropriateness of Program Costs charged by the non-auditing Party hereunder.
      Such examination shall be conducted during regular business hours and upon
      reasonable notice, at the auditing Party's own expense, and no more than once
      in
      each calendar year during the term of this Agreement and once during the three
      (3) calendar years following the termination hereof. If such examination reveals
      that such Program Costs have been overstated, any overpayment shall be promptly
      refunded by the overpaid Party to the Company. The auditing Party shall pay
      the
      fees and expenses of the accountant engaged to perform the audit, unless such
      audit reveals an overcharge of ten percent (10%) or more for the period
      examined, in which case the Party who received such overpayment shall pay all
      reasonable costs and expenses incurred by the auditing Party in the course
      of
      making such determination, including the fees and expenses of the
      accountant.

     

    
      
         

      

      
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    ARTICLE
      V

     

    THE
      DEVELOPMENT PROGRAM

     

    Section
      5.01. Conduct
      of the Development Program.

     

    (a) General.
      The
      Company, Cyberkinetics and NEUROMetrix each agree to use Commercially Reasonable
      and Diligent Efforts to perform their obligations under this Agreement, the
      Transaction Agreements, the Development Plan and the Commercialization Plan
      as
      they relate to each Collaboration Product. Neither NEUROMetrix nor Cyberkinetics
      shall be required to undertake activities in furtherance of the Development
      Plan
      or Commercialization Plan if, and for so long as, the other Party is in breach
      of its obligation to contribute capital to the Company as required by the
      provisions of this Agreement. The Parties each agree to notify the other Parties
      regarding the terms and conditions of any licenses and other agreements
      governing any Party's right to use any Patent Rights and Technology used in
      connection with the Program and each Party agrees to comply with any such terms
      and conditions to the extent applicable to such Party. 

     

    (b) Development
      Plan.
      The
      Development Program shall be conducted by the Company under a Development Plan
      which shall describe (i) the initial research activities to be undertaken by
      the
      Company to determine if an electrical field has potential therapeutic use in
      the
      treatment of peripheral nerve injury, disease or disorder, (ii) the process
      by
      which the key specifications of a prototype electrical field device for use
      in
      the treatment of peripheral nerve injury, disease or disorder will be determined
      and specified, and (iii) the proposed overall program of development of the
      Collaboration Products, including preclinical studies, clinical studies and
      regulatory plans and other key elements necessary to obtain Regulatory Approvals
      for each Collaboration Product. The Development Plan shall include a budget
      for
      all development activities proposed for each Collaboration Product, such budget
      to be as detailed as reasonably possible in light of the stage of development
      of
      each such Collaboration Product.

     

    (c) Initial
      and Updated Development Plan.
      Within
      sixty (60) days after the Effective Date, the Program Management Team shall
      submit to the Steering Committee for review and approval the definitive initial
      Development Plan for the period beginning on the Effective Date and ending
      on
      December 31, 2008, upon which approval such definitive initial Development
      Plan shall be signed by an authorized representative of each of Cyberkinetics
      and NEUROMetrix. The Development Plan shall be updated annually by the Program
      Management Team and submitted to the Steering Committee for review and approval
      not later than forty-five (45) days prior to January 1 of each year during
      the Development Program. Each such updated Development Plan shall include (i)
      an
      outline of the major research activities which are to be undertaken, and the
      personnel that will be used for such research, (ii) when Collaboration
      Products are known and specified, an overall development plan for each
      Collaboration Product which sets forth all major development tasks remaining
      to
      be accomplished prior to submission of filings for Regulatory Approvals,
      (iii) a detailed description and budget for the research and development
      activities proposed for the forthcoming calendar year and (iv) until the
      initial Commercialization Plan is submitted in accordance with Section
      6.02,
      an
      overall plan which sets forth all major tasks remaining to be accomplished
      prior
      to submission of filings for Regulatory Approval. The Program Management Team
      shall be primarily responsible for preparing the annual updates to the
      Development Plan and, in connection with the preparation of such updates, shall
      consult with Cyberkinetics and NEUROMetrix regarding the identification, timing
      and execution of and budget for the major tasks and detailed activities required
      to perform the updated Development Plan. The members of the Program Management
      Team shall actively consult with one another throughout the term of the
      Development Plan so as to adjust the specific work performed under the
      Development Plan to conform to evolving developments in technology and the
      results of the development work performed. While minor adjustments to the
      Development Plan may be made from time to time upon approval of the Program
      Management Team, significant changes in the scope or direction of the work
      and
      any changes in funding exceeding [***] of the total amount budgeted in any
      calendar year must be approved by the Steering Committee, in the absence of
      which approval the most recently approved Development Plan shall remain in
      effect.

     

    
      
         

      

      
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    (d) Execution
      and Performance.
      The
      Development Plan shall allocate among the Parties responsibility for each of
      the
      activities described therein. The Parties shall use Commercially Reasonable
      and
      Diligent Efforts to conduct the activities described in the Development Plan.
      The Steering Committee will supervise and coordinate the execution by the
      parties of their obligations with respect to the Development Plan with the
      Program Management Team supporting the Steering Committee in performing such
      role. 

     

    (e) Attendance
      at Regulatory Meetings.
      Each
      Party shall provide the other Parties with prior written notice of all meetings
      between representatives of the notifying Party and regulatory authorities
      regarding any matters that might reasonably be expected to impact a Party's
      ability to perform its obligations hereunder, or the development or
      commercialization of a Collaboration Product, including without limitation,
      matters relating to clinical studies, quality programs, manufacturing operations
      or facilities related to the Program or any Collaboration Product. Except as
      otherwise provided herein, the Party receiving such notice shall have the right
      to have representatives present at all such meetings.

     

    Section
      5.02. Development
      Information.

     

    (a) Reports
      and Information Exchange.
      The
      Company shall own all clinical trial data accumulated from all clinical trials
      of Collaboration Products. Each of Cyberkinetics and NEUROMetrix shall use
      Commercially Reasonable and Diligent Efforts to disclose to the Company and
      to
      the other Parties all material information relating to any Collaboration Product
      promptly after it is learned or its materiality is appreciated. The Company
      shall maintain the database of clinical trial data accumulated from all clinical
      trials of Collaboration Products and of adverse event information for all such
      Collaboration Products. Each of Cyberkinetics and NEUROMetrix shall have a
      permanent (during the term of this Agreement and thereafter) and irrevocable
      right of access and reference to all such clinical trial data for use outside
      the Field, subject to the exclusive licenses granted in Section
      3.04.
      At the
      request of either Cyberkinetics or NEUROMetrix, such data shall be provided
      to
      the requesting Party in a computer readable format by the Company, to the extent
      available, and the Company shall also assist in the transfer and validation
      of
      such data to the receiving Party. Each Party shall also keep the Program
      Management Team informed as to its progress in the Development Plan. Within
      sixty (60) days following the end of each calendar quarter during the
      Development Program, each of Cyberkinetics and NEUROMetrix shall provide to
      the
      Company and to the other Party a reasonably detailed written report which shall
      describe the progress to date of all activities for which such Party was
      allocated responsibility during such quarter under the Development Plan.

     

    
      
         

      

      
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    (b) Adverse
      Event Reporting.
      Each of
      Cyberkinetics and NEUROMetrix shall notify the Company and the other Party
      of
      any potential adverse event information relating to any Collaboration Product
      as
      and when required to enable such Party to comply with any and all applicable
      laws and regulations.

     

    (c) Clinical
      and Regulatory Audits.
      Each of
      Cyberkinetics and NEUROMetrix shall permit the Company and the other Party
      or
      the representatives of the Company or the other Party to have access, at the
      auditing Party's own expense, no more than once in each calendar year during
      the
      term of this Agreement, to the non-auditing Party's records and facilities
      relating to the Development Program for the purpose of monitoring compliance
      with the requirements of this Agreement, the Transaction Agreements, current
      Good Clinical Practice regulations promulgated by FDA (and foreign equivalents
      thereto) and other applicable laws and regulations.

     

    Section
      5.03. Regulatory
      Approval Filings.

     

     Regulatory
      Approval filings for the Collaboration Products shall be filed in the name
      of
      the Company to the extent permitted by the FDA and otherwise in the name of
      such
      other Party as the Steering Committee shall determine. Prior to submission
      to
      the FDA, the Parties, through the Program Management Team, shall consult,
      cooperate in preparing and mutually agree on the content and scope of the
      Regulatory Approval filings. If and for so long as the FDA does not permit
      the
      Company to file and own all Regulatory Approvals in its own name,
      (i) Regulatory Approval filings shall be made in the name of such other
      Party as may be designated by the Steering Committee, (ii) such designated
      Party shall hold the licenses issued in respect of such Regulatory Approval
      filings and maintain control over the manufacturing facilities and equipment
      to
      the extent required by the FDA, (iii) such designated Party shall provide
      services to the Company in connection with such regulatory matters, and
      shall
      be reimbursed its direct costs in connection therewith, and (iv) the
      Company and the other Party shall have a permanent and irrevocable right of
      access and reference to such Regulatory Approval filings, licenses and
      facilities. 

     

    Section
      5.04. Facilities
      Visits.

     

     Representatives
      of Cyberkinetics and NEUROMetrix may visit all manufacturing sites and the
      sites
      of any clinical trials or other research, development and commercialization
      activities being conducted by the other Party or the Company in connection
      with
      the Development Program. If requested by the other Party, Cyberkinetics and
      NEUROMetrix shall cause appropriate individuals working on the Development
      Program to be available for meetings at the location of the facilities where
      such individuals are employed at times reasonably convenient to the Party
      responding to such request. 

     

    
      
         

      

      
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    ARTICLE
      VI

     

    SALES,
      MARKETING AND ADMINISTRATIVE SERVICES

     

    Section
      6.01. Sales
      and Marketing Services.

     

     NEUROMetrix
      shall market and sell the Collaboration Products on an exclusive basis as agent
      for and on behalf of the Company. The terms and conditions pursuant to which
      NEUROMetrix will perform those services for the Company will be set forth in
      an
      agreement to be negotiated in good faith by the Parties (the "Marketing
      Agreement").
      The
      Marketing Agreement will be consistent with the applicable terms and conditions
      set forth in this Agreement. The Parties will commence good faith negotiations
      towards a Marketing Agreement once the final specifications for the first
      Product are identified. NEUROMetrix shall be entitled to charge the Company
      all
      direct costs and a mutually agreed upon portion of indirect costs incurred
      by
      NEUROMetrix for the marketing and sale of each Collaboration Product, all as
      more fully set forth in the Marketing Agreement. The Marketing Agreement shall
      contain customary terms and conditions governing the marketing, sale,
      distribution, customer account management, dispute resolution, use of logos
      and
      trademarks, product pricing, warranty and indemnification, confidentiality
      and
      such other matters as are mutually agreed upon by the Parties. NEUROMetrix
      shall
      not be permitted to sell any Collaboration Product for a discount, or make
      rebates or other credits or offsets available, in connection with purchase
      of a
      product other than a Collaboration Product, without the prior written approval
      of the Steering Committee. Such approval shall be conditioned on the approval
      of
      a formula, or other method, pursuant to which the combined revenue from the
      sale
      of such Collaboration Product and such other product are allocated between
      the
      Company and NEUROMetrix. 

     

    Section
      6.02. Commercialization
      Plan.

     

    (a) The
      commercialization of each Collaboration Product shall be governed by a
      Commercialization Plan which shall describe the overall plan for commercializing
      such Collaboration Product, including (i) a comprehensive marketing, sales,
      pricing, distribution and licensing strategy for such Collaboration Product
      in
      all applicable countries, including the Third Parties to be utilized and the
      arrangements with them that have been or are proposed to be agreed upon
      (including policies and procedures for adjustments, rebates, bundling and the
      like), (ii) estimated launch date, market and sales forecasts, in numbers of
      devices to be sold and local currency issues, and competitive analysis for
      such
      Collaboration Product, and (iii) a budget for the Commercialization Costs to
      be
      incurred in connection with performing such Commercialization Plan.

     

    (b) Upon
      the
      submission of all Regulatory Approval filings for a Collaboration Product in
      any
      given country, NEUROMetrix shall develop and submit to the Steering Committee
      for review and approval an initial Commercialization Plan taking into
      consideration factors such as market conditions, regulatory factors, competition
      and the costs and profits of such Collaboration Product. NEUROMetrix shall
      be
      primarily responsible for developing each Commercialization Plan and, in
      connection therewith, shall consult with Cyberkinetics regarding the
      identification, timing and execution of and budget for the major
      commercialization tasks required to perform the Commercialization Plan,
      including without limitation the coordination of manufacturing with sales and
      marketing. Cyberkinetics shall be primarily responsible for developing a
      detailed manufacturing plan for each Collaboration Product, which plan shall
      be
      reviewed and approved by the Steering Committee and included within each
      Commercialization Plan. Cyberkinetics shall deliver such plan to NEUROMetrix
      within a reasonable period of time prior to the date NEUROMetrix expects to
      submit the overall Commercialization Plan to the Steering Committee. Each
      Commercialization Plan shall be updated annually by NEUROMetrix, in consultation
      with Cyberkinetics, and shall be submitted to the Steering Committee for
      approval not later than sixty (60) days prior to January 1 of each year. Each
      Commercialization Plan approved by the Steering Committee shall be signed by
      an
      authorized representative of each of Cyberkinetics and NEUROMetrix.

     

    
      
         

      

      
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    (c) NEUROMetrix
      shall be primarily responsible for the implementation of each Commercialization
      Plan, including without limitation, setting all terms of sale, including
      establishing pricing policies, credit terms and cash discounts and allowances,
      formulating marketing plans, providing patient information, providing customer
      support services, providing reimbursement counseling services and sales force
      training; provided that NEUROMetrix's execution and performance in respect
      of
      its marketing and sale of Collaboration Products shall be consistent with the
      strategy, policies and procedures established by each Commercialization Plan.
      NEUROMetrix shall act as an agent of the Company in connection with the sale
      of
      Collaboration Products and all revenues from such sales shall be booked by
      the
      Company. NEUROMetrix shall use Commercially Reasonable and Diligent Efforts
      to
      conduct the activities described in each Commercialization Plan. Cyberkinetics
      shall use Commercially Reasonable and Diligent Efforts to perform any activities
      allocated to it under a Commercialization Plan and to provide such additional
      marketing support services as NEUROMetrix may from time to time reasonably
      request. 

     

    Section
      6.03. General
      and Administrative Services.

     

     General
      and administrative services required by the Company shall be provided at cost
      by
      NEUROMetrix. The terms and conditions pursuant to which NEUROMetrix will perform
      those services for the Company will be set forth in an agreement to be
      negotiated in good faith by the Parties (the "Services
      Agreement").
      The
      Services Agreement will be consistent with the applicable terms and conditions
      set forth in this Agreement. The Parties will commence good faith negotiations
      towards a Services Agreement promptly after the Effective Date. All such costs,
      in addition to general and administrative costs payable to Third Parties (such
      as accountants and lawyers), shall be considered to be Program Costs.

     

    ARTICLE
      VII

     

    MANUFACTURE
      AND SUPPLY 

     

    Subject
      to the terms and conditions of this Agreement, Collaboration Products shall
      be
      manufactured and supplied for pre-clinical and clinical testing and for
      commercial sale by Cyberkinetics (or a Third Party selected by Cyberkinetics
      and
      approved in writing in advance by the Steering Committee). The terms and
      conditions pursuant to which Cyberkinetics will perform manufacturing services
      for the Company will be set forth in an agreement to be negotiated in good
      faith
      by the Parties (the "Manufacturing
      Agreement").
      The
      Manufacturing Agreement will be consistent with the applicable terms and
      conditions set forth in this Agreement. The Parties will commence good faith
      negotiations towards a Manufacturing Agreement once the primary specifications
      for the first Collaboration Product are identified. 

     

    
      
         

      

      
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    Section
      7.01. Process
      Development; Manufacturing Approvals.

     

     Cyberkinetics
      shall be primarily responsible for and will use Commercially Reasonable and
      Diligent Efforts to develop a process for the manufacture of each prototype
      device for research activities of the Program and for each Collaboration Product
      and to scale up that process to a scale sufficient to manufacture and supply
      (i) the anticipated demand for clinical trials of such Collaboration
      Product in accordance with the projections set forth in the Development Plan
      and
      (ii) the anticipated market demand for such Collaboration Product at the
      time Regulatory Approval is obtained for such Collaboration Product in
      accordance with the projections set forth in the Commercialization Plan for
      such
      Collaboration Product. The development of the process for the manufacture of
      Collaboration Products as well as the scale up of such process and all material
      issues incident to the development of the ability to produce Collaboration
      Products for commercial purposes in sufficient quantity and in a timely manner
      will be within the purview of Cyberkinetics but may be outsourced to a Third
      Party if approved in writing in advance by the Steering Committee. Cyberkinetics
      will use Commercially Reasonable and Diligent Efforts to make, and will cause
      any Third Party manufacturer or supplier to make, filings necessary to obtain
      approval of any license application for the production facility which may be
      required as part of any Regulatory Approval for each Collaboration Product.
      Any
      plans for a production facility for the manufacture of Collaboration Products
      for commercial sale shall be approved by the Steering Committee prior to
      commencement of any manufacturing.

     

    Section
      7.02. Manufacture
      and Supply of Collaboration Products for Development
      Purposes.

     

     Cyberkinetics
      will use Commercially Reasonable and Diligent Efforts to manufacture and supply
      (or to cause an approved Third Party to manufacture and supply) prototypes
      for
      research activities and Collaboration Products for preclinical studies and
      clinical trials in quantities and within a time period sufficient to conduct
      the
      activities set forth in the Development Plan. Cyberkinetics shall be entitled
      to
      charge to the Company only direct costs incurred by Cyberkinetics for the
      manufacture of all such Collaboration Products supplied for such
      purposes.

     

    Section
      7.03. Manufacture
      and Supply of Collaboration Products for Commercial
      Sale.

     

     Cyberkinetics
      shall manufacture and supply (or cause an approved Third Party to manufacture
      and supply) Collaboration Products for commercial sale on the following terms
      and conditions: 

     

    (a) General.
      Cyberkinetics shall use Commercially Reasonable and Diligent Efforts to
      manufacture and supply Collaboration Products to meet market demand for
      Collaboration Products ordered in accordance with the terms of the Manufacturing
      Agreement. Cyberkinetics shall be entitled to charge the Company direct costs
      and a mutually agreed upon portion of indirect costs incurred by Cyberkinetics
      for the foregoing services, provided that in an approved subcontractor is
      engaged, Cyberkinetics shall only be permitted to pass through the amounts
      actually paid to such Third Party for such services without mark-up or other
      fees.

     

    
      
         

      

      
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    (b) Performance
      Standards.
      Cyberkinetics agrees that all Collaboration Products manufactured by it will
      conform to the applicable specifications upon delivery to the Company (or its
      designee) and will be manufactured in conformity with the quality program
      established by Cyberkinetics and approved by the Program Management Team. The
      Manufacturing Agreement will also include other terms, conditions and warranties
      that are customary for manufacturing agreements pertaining to medical device
      products.

     

    Section
      7.04. Device
      History Record.

     

     The
      Manufacturing Agreement will also provide for Cyberkinetics to perform or cause
      to be performed quality assurance and control tests on each Collaboration
      Product and to provide a device history record setting forth for each
      Collaboration Product delivered the items tested, specifications and results
      in
      a device history record containing the types of information which shall have
      been approved by the Program Management Team or required by the FDA.
      Cyberkinetics shall maintain (or shall cause the Third Party manufacturer to
      maintain) all manufacturing records for a period of not less than five (5)
      years
      from the date of manufacture and for so long as required under applicable
      requirements of the FDA.

     

    Section
      7.05. Certificates
      of Manufacturing Compliance.

     

     Pursuant
      to the Manufacturing Agreement, Cyberkinetics shall prepare and maintain (or
      shall cause the Third Party manufacturer to prepare and maintain) for a period
      of not less than five (5) years and for so long as required under applicable
      requirements of the FDA for each Collaboration Product manufactured a
      certificate of manufacturing compliance containing the types of information
      which shall have been approved by the Program Management Team or required by
      the
      FDA, which certificate will certify that the Collaboration Products were
      manufactured in accordance with the applicable specifications and the Good
      Manufacturing Practices of the FDA or other applicable governmental regulatory
      agency as the same may be amended from time to time. Cyberkinetics shall advise
      the other Parties immediately if an authorized agent of the FDA or other
      governmental regulatory agency visits any of Cyberkinetics' manufacturing
      facilities, or the facilities where the Collaboration Products are being
      manufactured, for an inspection with respect to the Collaboration Products.
      Cyberkinetics shall furnish to the other Parties the report by such agency
      of
      such visit, and any correspondence with such agency, to the extent relating
      to
      Collaboration Products, or that might reasonably impair the manufacture of
      the
      Collaboration Product in accordance with this Agreement or the Manufacturing
      Agreement, within three (3) days of Cyberkinetics' receipt of such report.
      

     

    Section
      7.06. Access
      to Facilities.

     

     Each
      Party shall have the right to inspect those portions of the manufacturing or
      storage facilities where Collaboration Products are being manufactured or
      stored, at any time during regular business hours and upon reasonable notice
      to
      ascertain compliance with this Agreement or the Manufacturing Agreement.
      Cyberkinetics shall be responsible for securing such access and inspection
      right
      for the Parties in all agreements with Third Party manufacturers, suppliers
      or
      warehouses. Any confidential information disclosed to or otherwise gathered
      by
      the Party conducting such inspection during any such inspection shall be deemed
      "Information"
      as
      defined in Section
      10.01.

     

    
      
         

      

      
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    ARTICLE
      VIII

     

    MANAGEMENT 

     

    Section
      8.01. Program
      Management Team.

     

    (a) General.
      The
      Parties hereby establish a Program Management Team to oversee and coordinate
      all
      research activities, the development of Collaboration Products and to prepare
      for and oversee the launch of Collaboration Products. The Program Management
      Team will be composed of two (2) representatives appointed by Cyberkinetics
      and
      two (2) representatives appointed by NEUROMetrix. Each of such representatives
      will be an individual with expertise in one or more of the following areas:
      research, preclinical development, clinical development, manufacturing,
      regulatory affairs, marketing, sales management and reimbursement. The Program
      Management Team shall meet as needed but not less than once each week. It is
      contemplated that the members of the Program Management Team will change over
      time as the expertise that is most important to the success of the Program
      changes. Such meetings shall be at times and places or in such form (e.g.,
      telephone or video conference) as the members of the Program Management Team
      shall agree. A Party may change its representatives to the Program Management
      Team at any time. Members of the Program Management Team may be represented
      at
      any meeting by a deputy designated by him or her. Any approval, determination
      or
      other action agreed to by all of the members of the Program Management Team
      (or
      their designees) present at the relevant Program Management Team meeting shall
      be the approval, determination or other action of the Program Management Team.
      Representatives of either Cyberkinetics or NEUROMetrix who are not members
      of
      the Program Management Team may attend meetings of the Program Management Team,
      but shall have no right to vote in matters that come before any
      meeting.

     

    (b) Development
      Program Functions.
      During
      the term of the Development Program, the Program Management Team shall oversee
      and coordinate the research activities and, thereafter, if and to the extent
      appropriate, the development of Collaboration Products to obtain Regulatory
      Approvals. The Program Management Team will develop and recommend to the
      Steering Committee Development Plans (including annual development budgets),
      will facilitate the flow of information with respect to development work being
      conducted for each Collaboration Product on a worldwide basis, and will discuss
      and cooperate with the Steering Committee regarding such worldwide
      development.

     

    (c) Commercialization
      Functions.
      Following submission of filings for Regulatory Approvals for the first
      Collaboration Product, the functions of the Program Management Team shall be
      expanded to include supporting the development of Commercialization Plans
      (including annual budgets), facilitating the flow of information with respect
      to
      commercialization work being conducted for each Collaboration Product on a
      worldwide basis, and will discuss and cooperate with the Steering Committee
      regarding such worldwide commercialization. 

     

    
      
         

      

      
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    (d) Minutes.
      The
      Program Management Team shall keep accurate minutes of its deliberations which
      shall record all proposed decisions and all actions recommended or taken. Draft
      minutes shall be sent to all members of the Program Management Team within
      five
      (5) working days after each meeting. All records of the Program Management
      Team
      shall at all times be available to all Parties.

     

    (e) Authority.
      For
      avoidance of doubt, all authority of the Program Management Team shall derive
      from, and be subordinate to, the authority of the Steering Committee. The
      Program Management Team shall have no authority to act on behalf of any Party
      in
      connection with Third Parties. Without limiting the foregoing, the Program
      Management Team shall have no authority to, and shall not purport to or attempt
      to: (i) negotiate agreements on behalf of any Party, (ii) make representations
      or warranties on behalf of any Party, (iii) waive rights of any Party, (iv)
      extend credit on behalf of any Party, or (v) take or grant licenses of
      intellectual property on behalf of any Party.

     

    Section
      8.02. Steering
      Committee.

     

    (a) General.
      The
      Parties hereby establish a Steering Committee to oversee and coordinate the
      activities of the Parties in the performance of the Program. The Steering
      Committee will be composed of three (3) representatives appointed by
      Cyberkinetics and three (3) representatives appointed by NEUROMetrix (or such
      lesser number of representatives as mutually agreed by the Parties in a written
      instrument). Such representatives will be senior officers and/or managers of
      their respective companies. The Steering Committee will meet as needed but
      not
      less than once each calendar quarter. The Steering Committee shall appoint
      one
      of its members to act as Chairman. Such meetings shall be at times and places
      or
      in such form (e.g., telephone or video conference) as the members of the
      Steering Committee shall agree, but shall in general alternate between the
      offices of Cyberkinetics and NEUROMetrix. A Party may change one (1) or more
      of
      its representatives to the Steering Committee at any time. Members of the
      Steering Committee may be represented at any meeting by another member of the
      Steering Committee, or by a deputy. Any approval, determination or other action
      agreed to by a all of the members of the Steering Committee or their designees
      present at the relevant Steering Committee meeting shall be the approval,
      determination or other action of the Steering Committee, provided at least
      one
      representative of each of Cyberkinetics and NEUROMetrix is present at such
      meeting. Representatives of either Cyberkinetics or NEUROMetrix who are not
      members of the Steering Committee may attend meetings of the Steering Committee,
      but shall have no right to participate therein. Notwithstanding the foregoing,
      in the event that the determination or decision involves an issue in which
      the
      interests of Cyberkinetics or NEUROMetrix are adverse to those of the Company
      (e.g., the matter involves a contract between the Company and another Party
      or
      the exercise of the right of the Company that is or may be adverse to another
      Party) then the determination or decision will be made by a majority
      determination of the members of the Steering Committee appointed by the Party
      that is not adverse to or in conflict with the Company.

     

    (b) Functions.
      The
      Steering Committee shall: (i) coordinate the activities of the Parties
      hereunder; (ii) promote communication between the Parties; (iii) exercise
      decision-making authority with respect to those issues specified in this
      Agreement and in the Transaction Agreements; (iii) serve as the governing
      body of the Company; and (ix) perform such other functions as appropriate
      to further the purposes of this Agreement as determined by the Parties.

     

    
      
         

      

      
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    (c) Decision-Making
      Standard for Steering Committee.
      All
      decisions and other actions of the Steering Committee shall be made in good
      faith and with due care, after consideration of the information that is
      reasonably available to the Steering Committee, with the intention that: (i)
      the
      resulting decision or actions will conform to, or be consistent with, the
      provisions and requirements of this Agreement and the Transaction Agreements
      and
      (ii) the resulting decision or action will maintain or increase the likelihood
      that the Parties will achieve the purposes and goals of the Program. Without
      limiting the foregoing, the Steering Committee is expressly prohibited from
      taking into account interests of a Party, or of any members of the Steering
      Committee, other than their respective interests in achieving the purposes
      and
      goals of the Program.

     

    (d) Authority.
      The
      Steering Committee shall have no authority to act on behalf of any Party in
      connection with Third Parties. Without limiting the foregoing, the Steering
      Committee shall have no authority to, and shall not purport to or attempt to:
      (i) negotiate agreements on behalf of any Party, (ii) make representations
      or
      warranties on behalf of any Party, (iii) waive rights of any Party, (iv) extend
      credit on behalf of any Party, or (v) take or grant licenses of intellectual
      property on behalf of any Party. For avoidance of doubt, where applicable laws
      or regulations require the approval, certification or authorization of a
      specific party with respect to any action described herein (including any
      product development or commercialization activities), any requirement herein
      that the Steering Committee also approve, certify or authorize such action
      shall
      be in addition to the requirements of such law or regulation and shall not
      be in
      replacement or limitation thereof.

     

    (e) Minutes.
      The
      Steering Committee shall keep accurate minutes of its deliberations which shall
      record all proposed decisions and all actions recommended or taken. The Chairman
      shall be responsible for the preparation of draft minutes. Draft minutes shall
      be sent to all members of the Steering Committee within ten (10) working days
      after each meeting. All records of the Steering Committee shall at all times
      be
      available to all Parties.

     

    (f) Expenses.
      Cyberkinetics and NEUROMetrix shall each bear all expenses of their respective
      Steering Committee members related to their participation on the Steering
      Committee and attendance at Steering Committee meetings.

     

    Section
      8.03. General
      Disagreements.

     

     All
      disagreements within the Program Management Team or the Steering Committee
      shall
      be subject to the following: (a) the representatives to the Program
      Management Team or Steering Committee, as applicable, will negotiate in good
      faith for a period of not less than thirty (30) days to attempt to resolve
      the
      dispute. In the case of the Program Management Team, any unresolved dispute
      shall be referred to the Steering Committee for good faith negotiations for
      an
      additional period of not less than thirty (30) days to attempt to resolve the
      dispute; (b) in the event that the dispute is not resolved after the
      periods specified in clause (a), then such dispute shall be referred to
      resolution as described in Section
      14.10.

     

    
      
         

      

      
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    ARTICLE
      IX

     

    INTELLECTUAL
      PROPERTY RIGHTS 

     

    Section
      9.01. Ownership.

     

     The
      Parties acknowledge that the ownership rights set forth in this Article
      IX
      (i) shall not be affected by the participation of any person in the
      discovery or development of an Invention in the course of discharging such
      person's duties as a member of the Program Management Team or the Steering
      Committee; and (ii) are subject to the license grants set forth in this
      Agreement.

     

    (a) Ownership
      of Discoveries and Improvements.
      All
      right, title and interest in all writings, inventions, discoveries, improvements
      and other technology, whether or not patentable or copyrightable, and any patent
      applications, patents or copyrights based thereon (collectively, the
      "Inventions")
      that
      are discovered, made or conceived during and in connection with the Program
      solely by employees of Cyberkinetics or others acting on behalf of Cyberkinetics
      shall be owned by Cyberkinetics. All right, title and interest in all Inventions
      that are discovered, made or conceived during and in connection with the Program
      solely by employees of NEUROMetrix or others acting on behalf of NEUROMetrix
      shall be owned by NEUROMetrix. All right, title and interest in all Inventions
      that are discovered, made or conceived during and in connection with the Program
      jointly by employees of Cyberkinetics and NEUROMetrix ("Joint
      Inventions")
      shall
      be owned by the Company. Each of Cyberkinetics and NEUROMetrix shall promptly
      disclose to the Company and the other Party the making, conception or reduction
      to practice of Inventions by employees or others acting on behalf of such Party.
      

     

    (b) Ownership
      of Trademarks.
      Cyberkinetics and NEUROMetrix shall select (which selection shall be approved
      by
      the Steering Committee), and the Company shall own, all trademarks for the
      sale
      and use of Collaboration Products and shall bear all expenses thereof.
      Notwithstanding the forgoing, the name AndaraTM Oscillating Field StimulatorTM and
      AndaraTM OFSTM and OFSTM shall remain the exclusive property of Cyberkinetics,
      subject to the licenses granted herein.

     

    (c) Cooperation
      of Employees.
      Each of
      Cyberkinetics and NEUROMetrix represents and agrees that all of its employees
      or
      others acting on its behalf in performing its obligations under this Agreement
      or otherwise participating in the Program shall be obligated under a binding
      written agreement to assign to such Party, or as such Party shall direct, all
      Inventions made or conceived by such employee or other person. In the case
      of
      non-employees working for other companies or institutions on behalf of
      Cyberkinetics or NEUROMetrix, Cyberkinetics or NEUROMetrix, as applicable,
      shall
      have the right to obtain licenses for all Inventions made by such non-employees
      on behalf of Cyberkinetics or NEUROMetrix, as applicable, in accordance with
      the
      policies of said company or institution. Cyberkinetics and NEUROMetrix agree
      to
      undertake to enforce such agreements (including, where appropriate, by legal
      action) considering, among other things, the commercial value of such
      Inventions.

     

    
      
         

      

      
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    Section
      9.02. Filing,
      Prosecution and Maintenance of Patent Rights.

     

     Anything
      herein to the contrary notwithstanding, all rights and privileges in
Section
      9.02
      through
      and including Section
      9.06
      shall be
      subject to the rights of Cyberkinetics Licensors and NEUROMetrix Licensors
      to
      the extent provided in the relevant license agreement; provided however, that
      each of NEUROMetrix and Cyberkinetics covenant and agree to use reasonable
      efforts to negotiate rights in any such agreements entered into after the
      Effective Date that would permit, or at least not be inconsistent with, the
      terms and conditions set forth in Section
      9.02
      through
      and including Section
      9.06.

     

    (a) Filing,
      Prosecution and Maintenance.
      Each of
      Cyberkinetics and NEUROMetrix shall be responsible for the filing, prosecution
      and maintenance of all patent applications and patents which make up its Patent
      Rights that are relating to or useful in the Field. For so long as any of the
      license grants set forth in Article
      III
      remain
      in effect and upon request of each other Party, each of Cyberkinetics and
      NEUROMetrix agrees to file and prosecute patent applications and maintain the
      patents covering its Patent Rights in all countries determined by the Steering
      Committee. Each of Cyberkinetics and NEUROMetrix shall consult with and keep
      the
      other fully informed of important issues relating to the preparation and filing
      (if time permits), prosecution and maintenance of such patent applications
      and
      patents, and shall furnish to each other Party copies of documents relevant
      to
      such preparation, filing, prosecution or maintenance in sufficient time prior
      to
      filing such document or making any payment due thereunder to allow for review
      and comment by each other Party and, to the extent possible in the reasonable
      exercise of its discretion, the filing Party shall incorporate all such
      comments. Neither Cyberkinetics nor NEUROMetrix shall allow any of its Patent
      Rights relating to or useful in the Field to lapse or become abandoned without
      the prior consent of the Company and the other Party, which consent shall not
      be
      unreasonably withheld or delayed. Each Party shall be deemed to have consented
      to any such lapse or abandonment if it fails to send written notice of its
      objections thereto to the other Parties within ten (10) days of receipt of
      written notice of the intention of either such Party to allow such lapse or
      abandonment to occur. The Company shall have the right, but not the obligation,
      to assume responsibility for the filing, prosecution maintenance and enforcement
      of any of such patent applications and patents, at its sole expense, and such
      patent applications and patents shall be assigned by the owner to the Company
      and shall no longer be subject to the licenses granted herein.

     

    (b) Patent
      Filing Costs.
      Each
      Party shall bear its own costs associated with filing, prosecuting and
      maintaining patent applications and patents relating to or useful in the Field.
      

     

    (c) Joint
      Inventions.
      The
      Company shall use Commercially Reasonable and Diligent Efforts to file,
      prosecute and maintain all patent applications and patents covering Joint
      Inventions at its own expense. During the Term, the Company shall file and
      prosecute patent applications and maintain the patents covering Joint Inventions
      at the direction of the Steering Committee. The Company shall consult with
      and
      keep Cyberkinetics and NEUROMetrix fully informed of issues relating to the
      preparation and filing (if time permits), prosecution and maintenance of such
      patent applications and patents, and shall furnish to the Cyberkinetics and
      NEUROMetrix copies of documents relevant to such preparation, filing,
      prosecution or maintenance in sufficient time prior to filing such document
      or
      making any payment due thereunder to allow for review and comment by the
      Cyberkinetics and NEUROMetrix and, to the extent possible in the reasonable
      exercise of its discretion, Company shall incorporate all such comments. The
      Company shall not allow any of its Patent Rights relating to or useful in the
      Field to lapse or become abandoned without the prior written consent of the
      Steering Committee. All costs associated with filing, prosecuting and
      maintaining patent applications and patents covering Joint Inventions shall
      be
      deemed Development Costs. Upon any abandonment of any patent application or
      patent under this Section
      9.02(c),
      the
      remaining Parties shall have the right to assume responsibility for the filing,
      prosecution and maintenance of such patent application or patent, at its own
      expense, and such patent application or patent shall be assigned to such other
      Party and shall become part of the NEUROMetrix Patent Rights or Cyberkinetics
      Patent Rights, as applicable, for all purposes hereunder. If both Cyberkinetics
      and NEUROMetrix desire to assume responsibility for a patent application or
      patent abandoned under this Section
      9.02(c),
      then
      both shall have the right to do so, as joint owners of such patent application
      or patent, each shall bear fifty percent (50%) of the costs of such activities
      and such patent application or patent shall become part of both Cyberkinetics
      Patent Rights and NEUROMetrix Patent Rights.

     

    
      
         

      

      
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    Section
      9.03. Cooperation.

     

     Each
      of Cyberkinetics and NEUROMetrix shall make available to each other Party (or
      to
      the other Party's authorized attorneys, agents or representatives) its
      employees, agents or consultants to the extent necessary or appropriate to
      enable the appropriate Party to file, prosecute and maintain patent applications
      and resulting patents with respect to inventions owned by a Party and for
      periods of time sufficient for such Party to obtain the assistance it needs
      from
      such personnel. Where appropriate, each of Cyberkinetics and NEUROMetrix shall
      sign or cause to have signed all documents relating to said patent applications
      or patents at no charge to any other Party.

     

    Section
      9.04. Notification
      of Patent Issuance.

     

     Each
      of Cyberkinetics and NEUROMetrix shall promptly notify each other Party of
      the
      issuance of each patent included within the notifying Party's Patent Rights
      that
      covers Technology that relates to or is useful within the Field, giving the
      date
      of issue and patent number for each such patent. 

     

    Section
      9.05. No
      Other Technology Rights.

     

     Except
      as otherwise expressly provided in this Agreement, under no circumstances shall
      a Party hereto, as a result of this Agreement, obtain any ownership interest
      in
      or other right to the Patent Rights, Technology or Manufacturing Know-How of
      the
      other Party, including items owned, controlled or developed by the other Party,
      or transferred by the other Party to said Party at any time pursuant to this
      Agreement. 

     

    Section
      9.06. Enforcement
      of Patent Rights; Defense of Infringement Actions.

     

     Cyberkinetics
      and NEUROMetrix shall each promptly notify the other in writing of any alleged
      or threatened infringement of any patents or patent applications comprising
      the
      Cyberkinetics Patent Rights, NEUROMetrix Patent Rights or Joint Patent Rights,
      or if any Party, or any of their respective Affiliates, shall be individually
      named as a defendant in a legal proceeding by a Third Party for infringement
      of
      a patent because of the manufacture, use, importation, or sale of a
      Collaboration Product. 

     

    
      
         

      

      
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    (a) First
      Right to Respond.
      Subject
      to any rights or privileges of any Third Party licensor, each Party shall use
      Commercially Reasonable and Diligent Efforts to respond to or defend against
      such challenge or infringement of its Patent Rights or charge of infringement;
      provided that if such challenge or infringement relates to claims or activities
      within the Field, or a charge that the manufacture, use, importation, or sale
      of
      Collaboration Products infringe upon the Patent Rights of Third Parties, then
      the Steering Committee shall use Commercially Reasonable and Diligent Efforts
      to
      respond to or defend against such challenge or infringement. In either case,
      the
      other Parties will cooperate with the responding Party's legal counsel, join
      in
      such suits as may be brought by the responding Party, and be available at the
      responding Party's reasonable request to be an expert witness or otherwise
      to
      assist in such proceedings.

     

    (b) Sharing
      of Litigation and Settlement Expenses.
      The
      costs incurred by a Party in responding to or defending against a challenge
      to
      or infringement of a Party's Patent Rights shall be borne by such Party. If
      any
      amounts are recovered in such efforts, such amounts shall be distributed to
      the
      Parties to reimburse them for such expenses. If recoveries are insufficient
      to
      provide for full reimbursement to all Parties, then the amounts recovered shall
      be disbursed in proportion to the amount to the Parties' respective expenses.
      If
      the amounts recovered exceed the total expenses incurred, such excess amounts
      shall be retained by the Party that controlled such action.

     

    (c) Second
      Right to Respond.
      If a
      Party does not exercise its right to respond to or defend against challenges
      or
      infringements of its Patent Rights as provided in Section
      9.06(a)
      within
      sixty (60) days of becoming aware of or being notified of such challenges or
      infringements, then the other Parties shall have the option to do so at its
      sole
      cost; provided that in such case all amounts so recovered from such Third Party
      shall be retained by the Party undertaking such response or defense and the
      Party so responding shall have no further obligations to the other Parties
      with
      respect to the response or defense thereof. This second right to respond shall
      not constitute a waiver of any claims that may arise out of a Party's failure
      to
      use Commercially Reasonable and Diligent Efforts to perform its obligations
      to
      the extent required under this Section
      9.06.

     

    
      
         

      

      
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    ARTICLE
      X

     

    CONFIDENTIALITY

     

    Section
      10.01. Nondisclosure
      Obligations.

     

     Except
      as otherwise provided in this Article
      X,
      during
      the term of this Agreement and for a period of five (5) years thereafter, all
      Parties shall maintain in confidence and use only for purposes specifically
      authorized under this Agreement (i) confidential information and data
      resulting from or related to the research undertaken in connection with the
      Program and (ii) all information and data not described in clause
      (i) but supplied by any other Party under or in connection with the
      activities contemplated by this Agreement. For purposes of this Article
      X,
      information and data described in clause (i) or (ii) of the preceding
      paragraph shall be referred to as "Information."
      To the
      extent it is reasonably necessary or appropriate to fulfill its obligations
      or
      exercise its rights under this Agreement, a Party may disclose Information
      it is
      otherwise obligated under this Section not to disclose to its Affiliates,
      sublicensees, consultants, outside contractors and clinical investigators,
      on a
      need-to-know basis and on the condition that such entities or persons agree
      to
      keep the Information confidential for the same time periods and to the same
      extent as such Party is required to keep the Information confidential; and
      a
      Party or its sublicensees may disclose such Information to government or other
      regulatory authorities to the extent that such disclosure is reasonably
      necessary to obtain patents or authorizations to conduct clinical trials with
      and to market commercially Collaboration Products or, in the case of information
      and data described in clause (i), products outside the Field to the extent
      that
      a Party has the right to use such information and data outside the Field. The
      obligation not to disclose Information shall not apply to any part of such
      Information that (i) is or becomes patented, published or otherwise becomes
      publicly known other than by acts of the Party obligated not to disclose such
      Information or its Affiliates or sublicensees in contravention of this
      Agreement; (ii) can be shown by written documents to have been disclosed to
      the receiving Party or its Affiliates or sublicensees by a Third Party, provided
      such Information was not obtained by such Third Party directly or indirectly
      from any other Party under this Agreement; (iii) prior to disclosure under
      this Agreement, was already in the possession of the receiving Party or its
      Affiliates or sublicensees, provided such Information was not obtained directly
      or indirectly from any other Party under this Agreement; (iv) can be shown
      by written documents to have been independently developed by the receiving
      Party
      or its Affiliates without breach of any of the provisions of this Agreement;
      (v) is disclosed by the receiving Party pursuant to a subpoena lawfully
      issued by a court or governmental agency, provided that the receiving Party
      notifies each other Party immediately upon receipt of any such subpoena or
      (vi) is used outside the Field on the condition that any entity or person
      to whom such Information is disclosed agrees to keep such Information
      confidential for the same time periods and to the same extent as the Party
      disclosing such Information is required to keep such terms confidential. The
      terms and conditions of this Article X shall supersede the terms and conditions
      set forth in any confidentiality, non-disclosure or similar agreement entered
      into by and between the Cyberkinetics and NEUROMetrix prior to the Effective
      Date and all such other agreements shall terminate (subject to the survival
      of
      any rights and obligations as provided therein).

     

    Section
      10.02. Terms
      of this Agreement.

     

     The
      Parties agree that the public announcement of the execution of this Agreement
      shall be in the form of the joint press release attached hereto as Schedule
      E,
      and that from and after the Effective Date, each Party shall be entitled to
      make
      or publish any statement limited to the contents of such press release. The
      Parties further agree to seek confidential treatment for the filing of this
      Agreement with the Securities and Exchange Commission and shall agree upon
      the
      content of the request for confidential treatment made by each Party in respect
      of such filing. Except as permitted by the foregoing provisions or as otherwise
      required by law, Cyberkinetics and NEUROMetrix each agree not to disclose any
      terms or conditions of this Agreement to any Third Party without the prior
      written consent of each other Party; provided, that each Party shall be entitled
      to disclose the terms of this Agreement without such consent to professional
      advisors (lawyers, accountants and investment bankers) and to potential
      investors or other financing sources on the condition that such potential
      investors or financing sources agree to keep such terms confidential for the
      same time periods and to the same extent as such Party is required to keep
      such
      terms confidential.

     

    
      
         

      

      
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    Section
      10.03. Publications.

     

     Each
      Party recognizes the mutual interest in obtaining valid patent protection.
      Consequently, any Party, its employees or consultants wishing to make a
      publication not otherwise permitted by this Article X, (including any oral
      disclosure made without obligation of confidentiality) relating to work
      performed by such Party as part of the Program (the "Publishing
      Party")
      shall
      transmit to each other Party (the "Reviewing
      Party")
      a copy
      of the proposed written publication at least forty-five (45) days prior to
      submission for publication, or an abstract of such oral disclosure at least
      fifteen (15) days prior to submission of the abstract or the oral disclosure,
      whichever is earlier. The Reviewing Party shall have the right (a) to
      request a delay in publication or presentation in order to protect patentable
      information, (b) to propose modifications to the publication for patent
      reasons or (c) to request that the information be maintained as a trade
      secret. If the Reviewing Party requests a delay as described in (a) above,
      the
      Publishing Party shall delay submission or presentation of the publication
      for a
      period of ninety (90) days to enable patent applications protecting each Party's
      rights in such information to be filed. Upon the expiration of forty-five (45)
      days, in the case of proposed written disclosures, or fifteen (15) days, in
      the
      case of an abstract of proposed oral disclosures, from transmission of such
      proposed disclosures to the Reviewing Party, the Publishing Party shall be
      free
      to proceed with the written publication or the oral presentation, respectively,
      unless the Reviewing Party has requested the delay described above. To the
      extent possible in the reasonable exercise of its discretion, the Publishing
      Party shall incorporate all modifications proposed under clause (b) above.
      If a
      trade secret that is the subject of a request made under clause (c) above cannot
      be otherwise equivalently protected without unreasonable expense to the
      Reviewing Party, such information shall be omitted from the
      publication.

     

    ARTICLE
      XI

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      11.01. Cyberkinetics's
      Representations and Warranties.

     

     Except
      as otherwise disclosed on Schedule
      11.01
      attached
      hereto, Cyberkinetics represents and warrants, as of the Effective Date,
      that:

     

    (a) 
      Cyberkinetics has all requisite corporate power and corporate authority to
      enter
      into this Agreement and to perform its obligations hereunder. The execution
      and
      delivery of this Agreement and the performance of the obligations of
      Cyberkinetics hereunder have been duly authorized by all necessary corporate
      action by the Board of Directors of Cyberkinetics, and no other corporate
      proceedings on the part of Cyberkinetics are necessary to authorize the
      execution, delivery or performance of this Agreement. This Agreement has been
      duly executed by Cyberkinetics and constitutes Cyberkinetics's valid and binding
      obligation, enforceable against Cyberkinetics in accordance with its
      terms.

     

    (b) to
      Cyberkinetics's Knowledge, the issued patents included within the Existing
      Cyberkinetics Patent Rights are valid and enforceable, and to Cyberkinetics's
      Knowledge, there are no current or threatened claims by a Third Party alleging
      that any of such issued patents are invalid or unenforceable or that the use
      of
      any invention or technology claimed in any of the issued patents within the
      Existing Cyberkinetics Patent Rights in the Field would infringe a Third Party's
      Patent Rights;

     

    (c) there
      is
      no existing or, to Cyberkinetics's Knowledge, threatened litigation concerning
      the ownership or use of the Existing Cyberkinetics Patent Rights;

     

    
      
         

      

      
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    (d) all
      Existing Cyberkinetics Patent Rights that have been prosecuted by Cyberkinetics
      (directly or through legal counsel retained by Cyberkinetics) have been
      prosecuted in good faith;

     

    (e) to
      Cyberkinetics's Knowledge, all Existing Cyberkinetics Patent Rights that have
      been prosecuted by a Third Party (directly or through legal counsel retained
      by
      a Third Party) have been prosecuted in good faith;

     

    (f)
       Cyberkinetics
      has not sold, transferred, granted any licenses, or otherwise conveyed any
      rights in or to the Existing Cyberkinetics Patent Rights that would prevent
      Cyberkinetics from granting the rights and licenses granted herein;

     

    (h)
       Cyberkinetics
      has no Knowledge of any existing or threatened acts by any Third Party that
      would infringe the Existing Cyberkinetics Patent Rights; and

     

    (i)
       the
      agreements listed on Schedule
      11.01
      represent all agreements in effect as of the Effective Date, or that have been
      entered into but are to become effective after the Effective Date, that
      Cyberkinetics (or its Affiliates) have entered into with Third Parties pursuant
      to which: (i) Cyberkinetics (or its Affiliates) have granted to a Third Party
      the right to use the Existing Cyberkinetics Patent Rights within the Field,
      (ii)
      a Third Party granted to Cyberkinetics (or its Affiliates) the right to use
      such
      Third Party's intellectual property rights within the Field, or (iii)
      Cyberkinetics (or its Affiliates) and a Third Party have or shall conduct
      activities relating to the treatment of peripheral nerve disease, injury or
      disorder with an electrical field. 

     

    Section
      11.02. NEUROMetrix's
      Representations and Warranties.

     

     Except
      as otherwise disclosed on Schedule
      11.02
      attached
      hereto, NEUROMetrix represents and warrants, as of the Effective Date,
      that:

     

    (a) 
      NEUROMetrix has all requisite corporate power and corporate authority to enter
      into this Agreement and to perform its obligations hereunder. The execution
      and
      delivery of this Agreement and the performance of the obligations of NEUROMetrix
      hereunder have been duly authorized by all necessary corporate action by the
      Board of Directors of NEUROMetrix, and no other corporate proceedings on the
      part of NEUROMetrix are necessary to authorize the execution, delivery or
      performance of this Agreement. This Agreement has been duly executed by
      NEUROMetrix and constitutes NEUROMetrix' valid and binding obligation,
      enforceable against NEUROMetrix in accordance with its terms.

     

    (b) to
      NEUROMetrix' Knowledge, the issued patents included within the Existing
      NEUROMetrix Patent Rights are valid and enforceable, and to NEUROMetrix'
      Knowledge, there are no current or threatened claims by a Third Party alleging
      that any of such issued patents are invalid or unenforceable or that the use
      of
      any invention or technology claimed in any of the issued patents within the
      existing NEUROMetrix Patent Rights in the Field would infringe a Third Party's
      Patent Rights;

     

    (c) there
      is
      no existing or, to NEUROMetrix' Knowledge, threatened litigation concerning
      the
      ownership or use of the Existing NEUROMetrix Patent Rights;

     

    
      
         

      

      
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    (d) all
      Existing NEUROMetrix Patent Rights that have been prosecuted by NEUROMetrix
      (directly or through legal counsel retained by NEUROMetrix) have been prosecuted
      in good faith;

     

    (e) to
      NEUROMetrix' Knowledge, all Existing NEUROMetrix Patent Rights that have been
      prosecuted by a Third Party (directly or through legal counsel retained by
      a
      Third Party) have been prosecuted in good faith;

     

    (f)
       NEUROMetrix
      has not sold, transferred, granted any licenses, or otherwise conveyed any
      rights in or to the Existing NEUROMetrix Patent Rights that would prevent
      NEUROMetrix from granting the rights and licenses granted herein;

     

    (h)
       NEUROMetrix
      has no Knowledge of any existing or threatened acts by any Third Party that
      would infringe the Existing NEUROMetrix Patent Rights; and

     

    (i)
       the
      agreements listed on Schedule
      11.02
      represent all agreements in effect as of the Effective Date, or that have been
      entered into but are to become effective after the Effective Date, that
      NEUROMetrix (or its Affiliates) have entered into with Third Parties pursuant
      to
      which: (i) NEUROMetrix (or its Affiliates) have granted to a Third Party the
      right to use the Existing NEUROMetrix Patent Rights within the Field, (ii)
      a
      Third Party granted to NEUROMetrix (or its Affiliates) the right to use such
      Third Party's intellectual property rights within the Field, or (iii)
      NEUROMetrix (or its Affiliates) and a Third Party have or shall conduct
      activities relating to the treatment of peripheral nerve disease, injury or
      disorder with an electrical field. 

     

    Section
      11.03. Disclaimer
      of Representations and Warranties.

     

     EXCEPT
      AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER CYBERKINETICS,
      NEUROMETRIX NOR THE COMPANY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES
      OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES
      OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND THE NON-INFRINGEMENT
      OF ANY THIRD-PARTY PATENTS OR PROPRIETARY RIGHTS. ALL UNIFORM COMMERCIAL CODE
      AND OTHER WARRANTIES ARE EXPRESSLY DISCLAIMED BY THE PARTIES.

     

    Section
      11.04. Limitation
      of Liability.

     

     Except
      for a breach of obligations under Article X, it is agreed by the Parties that
      no
      Party shall have a right to or shall claim special, indirect or consequential
      damages, including lost profits, for breach of this Agreement. Remedies shall
      be
      limited to claims for amounts due hereunder or as otherwise provided in this
      Agreement, including claims for indemnification as provided in Section
      12.01
      or
Section
      12.02.

     

    ARTICLE
      XII

     

    INDEMNIFICATION 

     

    Section
      12.01. Indemnification
      by Cyberkinetics.

     

     During
      the course of, and upon and after termination of this Agreement for any reason
      whatsoever, Cyberkinetics shall indemnify, defend and hold, without duplication,
      (a) the Company, (b) NEUROMetrix (and the Affiliates of NEUROMetrix other than
      the Company) and (c) their respective directors, officers and employees
      (collectively, "NEUROMetrix
      Indemnitees")
      harmless against any claims (including, without limitation, claims for product
      liability, personal injury or death, or property damage), liability, damage,
      loss, cost or expense (including reasonable attorneys' fees and costs) incurred
      by any of them, to the extent resulting from: (i) the negligence or willful
      misconduct of Cyberkinetics, or any of its Affiliates, or their employees,
      representatives or agents; or (ii) Cyberkinetics's breach of this Agreement
      or
      any Transaction Agreement. Notwithstanding anything to the contrary, this
      provision shall not apply to any claims or suits to the extent attributable
      to
      the negligence or willful misconduct of a NEUROMetrix Indemnitee or a breach
      of
      this Agreement or the Company's Operating Agreement by NEUROMetrix.

     

    
      
         

      

      
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    Section
      12.02. Indemnification
      by NEUROMetrix.

     

     During
      the course of, and upon and after termination of this Agreement for any reason
      whatsoever, NEUROMetrix shall indemnify, defend and hold, without duplication,
      (a) the Company, (b) Cyberkinetics (and the Affiliates of Cyberkinetics other
      than the Company) and (c) their respective directors, officers and employees
      (collectively, "Cyberkinetics
      Indemnitees")
      harmless against any claims (including, without limitation, claims for product
      liability, personal injury or death, or property damage), liability, damage,
      loss, cost or expense (including reasonable attorneys' fees and costs) incurred
      by any of them, to the extent resulting from: (i) the negligence or willful
      misconduct of NEUROMetrix, or any of its Affiliates, or their employees,
      representatives or agents; or (ii) NEUROMetrix's breach of this Agreement or
      any
      Transaction Agreement. Notwithstanding anything to the contrary, this provision
      shall not apply to any claims or suits to the extent attributable to the
      negligence or willful misconduct of a Cyberkinetics Indemnitee or a breach
      of
      this Agreement or the Company's Operating Agreement by
      Cyberkinetics.

     

    Section
      12.03. Conditions
      to Indemnification.

     

     A
      Party seeking indemnification under this Article
      XII
      (the
"Indemnified
      Party")
      shall
      give prompt notice of the claim to the other Party (the "Indemnifying
      Party")
      and,
      provided that the Indemnifying Party is not contesting the indemnity obligation,
      shall permit the Indemnifying Party to control any litigation relating to such
      claim and disposition of any such claim, provided that the Indemnifying Party
      shall act reasonably and in good faith with respect to all matters relating
      to
      the settlement or disposition of any claim as the settlement or disposition
      relates to Parties being indemnified under this Article
      XII
      and
      provided, further, that the Indemnifying Party shall not settle or otherwise
      resolve any claim without prior notice to the Indemnified Party and the consent
      of the Indemnified Party (which consent shall not be unreasonably withheld,
      conditioned or delayed) if such settlement involves anything other than the
      payment of money by the Indemnifying Party and a complete and unconditional
      release of all applicable claims and liability. The Indemnified Party shall
      cooperate with the Indemnifying Party in its defense of any claim for which
      indemnification is sought under this Article
      XII
      and
      shall have the right to be present in person or through counsel at all legal
      proceedings giving rise to the right of indemnification.

     

    Section
      12.04. Attribution.

     

     For
      purposes of this Article
      XII:
      (a)
      none of the Company, Cyberkinetics or Cyberkinetics's Affiliates (or their
      respective employees) shall be deemed to be an employee, agent or representative
      of NEUROMetrix, (b) none of the Company, NEUROMetrix or NEUROMetrix's Affiliates
      (or their respective employees) shall be deemed to be an employee, agent or
      representative of Cyberkinetics and (c) none of Cyberkinetics or NEUROMetrix
      or
      their respective Affiliates (or their respective employees) shall be deemed
      to
      be an employee, agent or representative of the Company.

     

    
      
         

      

      
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    Section
      12.05. Insurance.

     

     The
      Company shall maintain product liability insurance with respect to development,
      manufacture and sales of Collaboration Products in an amount reasonably believed
      by the Steering Committee to be adequate and customary for the development,
      manufacture and sale of novel therapeutic products considering the nature of
      the
      activities being conducted by the Company at that time. Cyberkinetics and
      NEUROMetrix shall be named as additional insureds on any such policy.

     

    ARTICLE
      XIII

     

    TERM
      AND TERMINATION 

     

    Section
      13.01. Term.

     

     The
      term of this Agreement shall be perpetual unless and until terminated pursuant
      to Section
      13.02.

     

    Section
      13.02. Termination.

     

     This
      Agreement may be terminated in the following circumstances:

     

    (a) For
      Breach.
      If
      either Cyberkinetics or NEUROMetrix commits a breach of a material provision
      of
      this Agreement or any Transaction Agreement, and such breach is not cured within
      ninety (90) days of written notice thereof from the non-breaching Party, the
      non-breaching Party (Cyberkinetics or NEUROMetrix as the case may be) may
      terminate this Agreement and all Transaction Agreements. Such 90-day cure period
      shall be extended by an additional ninety (90) days, to a total of one hundred
      eighty (180) days, if the breaching Party has engaged in good faith efforts
      to
      remedy such default within such initial 90-day period and indicated in writing
      to the non-breaching Party prior to the expiration of such 90-day period that
      it
      believes that it will be able to remedy the default within such 180-day period,
      but such extension shall apply only so long as the breaching Party is using
      good
      faith, diligent efforts to remedy such default. For purposes of this
Section
      13.02(a),
      breach
      of a material provision of this Agreement or any Transaction Agreement shall
      include, without limitation, the following: (i) NEUROMetrix's or Cyberkinetics's
      failure to satisfy timely any financial obligations hereunder; (ii) failure
      by
      Cyberkinetics or NEUROMetrix to disclose, contribute or license (or sublicense)
      Intellectual Property required to be disclosed, contributed or licensed by
      it
      hereunder; and (iii) a failure by Cyberkinetics or NEUROMetrix to perform timely
      any obligation that significantly delays or impairs, or is reasonably likely
      to
      significantly delay or impair, the research or the development or
      commercialization activities of the Company with respect to a Collaboration
      Product. 

     

    (b) For
      Convenience.
      At any
      time following the two (2) year anniversary of the Effective Date, Cyberkinetics
      or NEUROMetrix may terminate this Agreement for any reason upon one hundred
      eighty (180) days prior written notice to each other Party (during which 180-day
      period the obligations of the Parties under this Agreement, including, without
      limitation, obligations with respect to funding and contribution and/or
      licensing of intellectual properties, shall continue in full force and effect);
      provided that such terminating Party's right to so terminate the Agreement
      is
      conditioned on its being in compliance with all of its obligations hereunder,
      and under the Transaction Agreements, at such time.

     

    
      
         

      

      
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          32 -

        
          

        

      

      
         

      

    

     

    Section
      13.03. Effect
      of Termination by Cyberkinetics.

     

    (a) For
      Breach.
      In
      addition to the surviving rights and duties set forth in Section
      13.05,
      Cyberkinetics and NEUROMetrix shall have the following rights and duties upon
      termination of this Agreement by Cyberkinetics following a breach of this
      Agreement by NEUROMetrix pursuant to Section
      13.02(a):
      (i) the Company shall be dissolved; (ii) all Joint Inventions shall be
      assigned to Cyberkinetics, and Cyberkinetics shall grant to NEUROMetrix a
      license to such Joint Inventions that is substantially equivalent to the license
      granted in Section
      3.04;
      (iii)
      the licenses granted in Article
      III
      shall be
      revoked; provided, however, that Cyberkinetics shall have an option exercisable
      upon written notice to NEUROMetrix within the 90-day period provided in
Section
      13.02(a)
      to
      obtain from NEUROMetrix the exclusive, worldwide, irrevocable, non-royalty
      bearing (except as provided below in this Section
      13.03(a)
      and in
Section
      13.05)
      right
      and license, with the right to grant sublicenses, under the NEUROMetrix Patent
      Rights, NEUROMetrix Technology and the Manufacturing Know-How owned or
      controlled by NEUROMetrix, to develop, make, have made, use, offer for sale,
      sell, have sold, import and export Collaboration Products and other devices
      or products in the Field; (iv) if Cyberkinetics exercises the option
      provided in clause (iii) above, any applicable Regulatory Approvals (including
      without limitation those held by a Party other than the Company pursuant to
      Section
      5.03)
      and
      clinical data and any trademark and associated goodwill owned by the Company
      or
      assigned to the Company by either Cyberkinetics or NEUROMetrix shall be assigned
      to Cyberkinetics; and (v) if Cyberkinetics exercises the option provided
      under clause (iii) above, Cyberkinetics shall make payments to NEUROMetrix
      equal
      to up to [***] of Net Sales on all Collaboration Products that exist on the
      Agreement termination date that are sold by Cyberkinetics (or on behalf of
      Cyberkinetics) and on all other devices or products in the Field that
      incorporate any of the claims in the NEUROMetrix Patent Rights as of the
      Agreement termination date that are sold by Cyberkinetics (or on behalf of
      Cyberkinetics) until the later of (A) such time as all NEUROMetrix Patent Rights
      subject to the license granted in clause (iii) this Section
      13.03(a)
      shall
      have expired or (B) ten (10) years after the earlier of (x) the date of the
      first commercial sale of a Collaboration Product in the United States following
      Regulatory Approval of such Collaboration Product or (y) the termination of
      this
      Agreement. The above-referenced [***] royalty shall be reduced by amounts paid
      by Cyberkinetics, after the effective date of termination of this Agreement,
      to
      Third Parties, for access to or use of Patent Rights that are subject, as of
      the
      Effective Date, to a license agreement listed on Schedule C attached hereto
      as
      of the Effective Date, to the extent such payments exceed [***] of Net Sales
      of
      devices or products sold by Cyberkinetics pursuant to the exercise of the
      license granted in this Section
      13.03(a);
      provided that such reduction shall not be permitted to decrease any single
      royalty payment hereunder to less than [***] of Net Sales of any such device
      or
      product.

     

    
      
         

      

      
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          33 -

        
          

        

      

      
         

      

    

     

    (b) For
      Convenience.
      In
      addition to the surviving rights and duties set forth in Section
      13.05,
      Cyberkinetics and NEUROMetrix shall have the following rights and duties upon
      termination of this Agreement by Cyberkinetics for its convenience pursuant
      to
Section
      13.02(b):
      (i) the
      Company shall be dissolved; (ii) all Joint Inventions shall be assigned to
      NEUROMetrix, and NEUROMetrix shall grant to Cyberkinetics a license to such
      Joint Inventions that is substantially equivalent to the license granted in
      Section
      3.04;
      (iii) the licenses granted in Article
      III
      shall be
      revoked; provided, however, that NEUROMetrix shall have an option exercisable
      upon written notice to Cyberkinetics within the 180-day period provided in
      Section
      13.02(b)
      to
      obtain from Cyberkinetics the exclusive, worldwide, irrevocable, non-royalty
      bearing (except as provided below in this Section
      13.03(b)
      and in
Section
      13.05)
      right
      and license, with the right to grant sublicenses, under the Cyberkinetics Patent
      Rights, Cyberkinetics Technology and the Manufacturing Know-How owned or
      controlled by Cyberkinetics, to develop, make, have made, use, offer for sale,
      sell, have sold, import and export Collaboration Products and other devices
      or
      products in the Field; provided that any license granted to NEUROMetrix
      hereunder shall be subject to the terms and conditions of Cyberkinetics's
      obligations to the Cyberkinetics Licensors; (iv) if NEUROMetrix exercises
      the option provided in clause (iii) above, any applicable Regulatory Approvals
      (including without limitation those held by a Party other than the Company
      pursuant to Section
      5.03)
      and
      clinical data and any trademark and associated goodwill owned by the Company
      or
      assigned to the Company by either Cyberkinetics or NEUROMetrix shall be assigned
      to NEUROMetrix; and (v) if NEUROMetrix exercises the option provided under
      clause (iii) above, NEUROMetrix shall make royalty payments to Cyberkinetics
      equal to the royalty payments that would have been payable by NEUROMetrix to
      Cyberkinetics if NEUROMetrix had terminated this Agreement following a breach
      of
      this Agreement by Cyberkinetics and NEUROMetrix had thereafter exercised its
      option under Section
      13.04(a),
      but
      such royalty payments shall be payable by NEUROMetrix until the later of (A)
      such time as all Cyberkinetics Patent Rights subject to the license granted
      in
      clause (iii) this Section
      13.03(b)
      shall
      have expired or (B) fifteen (15) years after the earlier of (x) the date of
      the
      first commercial sale of a Collaboration Product in the United States following
      Regulatory Approval of such Collaboration Product or (y) the termination of
      this
      Agreement.

     

    Section
      13.04. Effect
      of Termination by NEUROMetrix.

     

    (a) For
      Breach.
      In
      addition to the surviving rights and duties set forth in Section
      13.05,
      Cyberkinetics and NEUROMetrix shall have the following rights and duties upon
      termination of this Agreement by NEUROMetrix following a breach of this
      Agreement by Cyberkinetics pursuant to Section
      13.02(a):
      (i) the Company shall be dissolved; (ii) all Joint Inventions shall be
      assigned to NEUROMetrix, and NEUROMetrix shall grant to Cyberkinetics a license
      to such Joint Inventions that is substantially equivalent to the license granted
      in Section
      3.04;
      (iii)
      the licenses granted in Article
      III
      shall be
      revoked; provided, however, that NEUROMetrix shall have an option exercisable
      upon written notice to Cyberkinetics within the 90-day period provided in
Section
      13.02(a)
      to
      obtain from Cyberkinetics the exclusive, worldwide, irrevocable, non-royalty
      bearing (except as provided below in this Section
      13.04(a)
      and in
Section
      13.05)
      right
      and license, with the right to grant sublicenses, under the Cyberkinetics Patent
      Rights, Cyberkinetics Technology and the Manufacturing Know-How owned or
      controlled by Cyberkinetics, to develop, make, have made, use, offer for sale,
      sell, have sold, import and export Collaboration Products and other devices
      or
      products in the Field; (iv) if NEUROMetrix exercises the option provided in
      clause (iii) above, any applicable Regulatory Approvals (including without
      limitation those held by a Party other than the Company pursuant to Section
      5.03)
      and
      clinical data and any trademark and associated goodwill owned by the Company
      or
      assigned to the Company by either Cyberkinetics or NEUROMetrix shall be assigned
      to NEUROMetrix; and (v) if NEUROMetrix exercises the option provided under
      clause (iii) above, NEUROMetrix shall make payments to Cyberkinetics equal
      to
      [***] of Net Sales on all Collaboration Products that exist on the Agreement
      termination date and on all other devices or products in the Field that
      incorporate any of the claims in the Cyberkinetics Patent Rights as of the
      Agreement termination date that are sold by NEUROMetrix (or on behalf of
      NEUROMetrix) until the later of (A) such time as all Cyberkinetics Patent
      Rights subject to the license granted in clause (iii) of this Section
      13.04(a)
      shall
      have expired or (B) ten (10) years after the earlier of (x) the date of
      first commercial sale of a Collaboration Product in the United States following
      Regulatory Approval of such Collaboration Product or (y) the termination of
      this
      Agreement. The above-referenced [***] royalty shall be reduced by amounts paid
      by NEUROMetrix, after the effective date of termination of this Agreement,
      to
      Third Parties, for access to or use of Patent Rights that are subject, as of
      the
      Effective Date, to a license agreement listed on Schedule A attached hereto
      as
      of the Effective Date, to the extent such payments exceed [***] of Net Sales
      of
      devices or products sold by NEUROMetrix pursuant to the exercise of the license
      granted in this Section
      13.04(a);
      provided that such reduction shall not be permitted to decrease any single
      royalty payment hereunder to less than [***] of Net Sales of any such device
      or
      product.

     

    
      
         

      

      
        -
          34 -

        
          

        

      

      
         

      

    

     

    (b) For
      Convenience.
      In
      addition to the surviving rights and duties set forth in Section
      13.05,
      Cyberkinetics and NEUROMetrix shall have the following rights and duties upon
      termination of this Agreement by NEUROMetrix for its convenience pursuant to
      Section
      13.02(b):
      (i) the Company shall be dissolved; (ii) all Joint Inventions shall be
      assigned to Cyberkinetics, and Cyberkinetics shall grant to NEUROMetrix a
      license to such Joint Inventions that is substantially equivalent to the license
      granted in Section
      3.04;
      (iii) the licenses granted in Article
      III
      shall be
      revoked; provided, however, that Cyberkinetics shall have an option exercisable
      upon written notice to NEUROMetrix within the 180-day period provided in
Section
      13.02(b)
      to
      obtain from NEUROMetrix the exclusive, worldwide, irrevocable, non-royalty
      bearing (except as provided below in this Section
      13.04(b)
      and in
Section
      13.05)
      right
      and license, with the right to grant sublicenses, under the NEUROMetrix Patent
      Rights, NEUROMetrix Technology and the Manufacturing Know-How owned or
      controlled by NEUROMetrix, to develop, make, have made, use, offer for sale,
      sell, have sold, import and export Collaboration Products and other devices
      or
      products in the Field; (iv) if Cyberkinetics exercises the option provided
      in clause (iii) above, any applicable Regulatory Approval (including without
      limitation those held by a Party other than the Company pursuant to Section
      5.03)
      and
      clinical data and any trademark and associated goodwill owned by the Company
      or
      assigned to the Company by either Cyberkinetics or NEUROMetrix shall be assigned
      to Cyberkinetics; and (v) if Cyberkinetics exercises the option provided
      under clause (iii) above, Cyberkinetics shall make royalty payments to
      NEUROMetrix equal to the royalty payments that would have been payable by
      Cyberkinetics to NEUROMetrix if Cyberkinetics had terminated this Agreement
      following a breach of this Agreement by NEUROMetrix and Cyberkinetics had
      thereafter exercised its option under Section
      13.03(a),
      but
      such royalty payments shall be payable by Cyberkinetics until the later of
      (A)
      such time as all NEUROMetrix Patent Rights subject to the license granted in
      clause (iii) this Section
      13.04(b)
      shall
      have expired or (B) fifteen (15) years after the earlier of (x) the date of
      the
      first commercial sale of a Collaboration Product in the United States following
      Regulatory Approval of such Collaboration Product or (y) the termination of
      this
      Agreement.

     

    
      
         

      

      
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    Section
      13.05. Cooperation.

     

    (a) Licensor
      Party.
      NEUROMetrix and Cyberkinetics each covenant and agree that, if the other Party
      exercises an option to take a license under Section
      13.03
      or
Section
      13.04
      above,
      then NEUROMetrix or Cyberkinetics, as applicable (for purposes of this
Section
      13.05
      only,
      under such circumstances such Party is a "Licensor
      Party"
      and the
      other Party is the "Licensee
      Party"),
      as
      the Licensor Party, will: (i) provide the Licensee Party with notice and a
      copy
      of any agreements between the Licensor Party and any Third Parties pursuant
      to
      which Licensor Party has in-licensed or otherwise obtained access to
      intellectual property rights that are subject to the relevant license granted
      under Section
      13.03
      or
Section
      13.04
      (each
      such Third Party agreement is a "Third
      Party License"),
      (ii)
      not terminate or otherwise allow to lapse the rights of any such Third Party
      License without the consent of the Licensee Party, which consent shall not
      be
      unreasonably withheld, (iii) not breach or fail to cure any breach of any such
      Third Party License which breach or failure to cure would result in termination
      of the Third Party License, (iv) take such other measures not prohibited by
      the
      Third Party License which measures are reasonably requested by the Licensee
      Party to enable it to exercise its rights under the relevant license granted
      under Section
      13.03
      or
Section
      13.04
      and (v)
      not take any action without the consent of the Licensee Party, which consent
      shall not be unreasonably withheld, that would limit or impair or that would
      reasonably be anticipated to limit or impair, in any material respects, with
      the
      Licensee Party's rights under any Third Party License. 

     

    (b) Licensee
      Party.
      NEUROMetrix and Cyberkinetics each covenant and agree that, when and for so
      long
      as it is the Licensee Party, it will: (i) comply with the terms of any
      applicable Third Party License of which it has notice, including by timely
      paying all royalties or other amounts that are payable in connection with the
      exercise of its license; and (ii) not take any action that would limit or impair
      or that would reasonably be anticipated to limit or impair, in any material
      respects, with the Licensor Party's retained rights under any Third Party
      License. 

     

    Section
      13.06. Survival
      of Rights and Duties.

     

     No
      termination of this Agreement shall eliminate any rights or duties accrued
      prior
      to such termination which by their terms extend after the termination, including
      without limitation the rights and duties of the Parties under Articles
      X
      and
XII
      and this
Article
      XIII
      and
Sections
      2.02(a),
      3.04,
      4.03,
      5.02(a)(as
      relates to the right of access and reference to certain clinical data),
9.01(a),
      9.01(c),
      9.03,
      9.05,
      11.04,
      14.01,
      14.04,
      14.09,
      14.10,
      and
14.15,
      all of
      which shall survive any termination of this Agreement. For the avoidance of
      any
      doubt, the Party that continues to develop and market Collaboration Products
      following a termination pursuant to this Article
      XIII
      shall
      not be obligated to utilize the marketing and sales services, general and
      administrative services, or manufacturing services, as the case may be, of
      the
      other Party pursuant to Article
      VI
      or
Article
      VII
      hereof
      (and such other Party shall have no obligation to provide such services).

     

    
      
         

      

      
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    ARTICLE
      XIV

     

    MISCELLANEOUS 

     

    Section
      14.01. Cooperation.

     

     If
      either Cyberkinetics or NEUROMetrix (the "Assuming
      Party")
      shall
      acquire rights from the other Party (the "Responsible
      Party")
      to
      develop, make, have made, use, offer for sale, sell, have sold, import and
      export Collaboration Products or other devices or products in the Field in
      accordance with the provisions of Article
      XIII,
      the
      Responsible Party shall promptly provide to the Assuming Party (or any Third
      Party or Affiliate designated by the Assuming Party) all Technology,
      Manufacturing Know-How and access to regulatory filings sufficient to allow
      the
      Assuming Party to exercise its rights thereunder. The Responsible Party shall
      further use its reasonable best efforts to provide all assistance required
      by
      the Assuming Party with respect to such transfer so as to permit the Assuming
      Party to begin to exercise such rights as soon as possible to minimize any
      disruption in the continuity of supply or marketing of Collaboration Products.
      In addition, if upon the date this Agreement is terminated Collaboration
      Products are being manufactured in facilities owned or leased by the Responsible
      Party (including facilities subleased by the Company from the Responsible
      Party), the Responsible Party agrees to lease such facilities to the Assuming
      Party on commercially reasonable terms for a period of up to twenty-four (24)
      months.

     

    Section
      14.02. Exchange
      Controls.

     

     All
      payments due hereunder shall be paid in United States dollars. If at any time
      legal restrictions prevent the prompt remittance of part or all payments with
      respect to any country where a Collaboration Product is sold, payment shall
      be
      made through such lawful means or methods as the Parties may determine.

     

    Section
      14.03. Withholding
      Taxes.

     

     If
      applicable laws or regulations require that taxes be withheld from payments
      made
      hereunder, the Company will (i) deduct such taxes, (ii) timely pay such
      taxes to the proper authority, and (iii) send written evidence of payment to
      the
      Party from whom such taxes were withheld within sixty (60) days after payment.
      Each Party will assist the other Parties in claiming tax refunds, deductions
      or
      credits at such other Party's request and will cooperate to minimize the
      withholding tax, if available, under various treaties applicable to any payment
      made hereunder.

     

    Section
      14.04. Interest
      on Late Payments.

     

     Any
      payments to be made hereunder that are not paid on or before the date such
      payments are due under this Agreement shall bear interest, to the extent
      permitted by applicable law, at the London Interbank Offer Rate (LIBOR), plus
      three (3) percentage points, calculated on the number of days payment is
      delinquent; provided that, to the extent a Party fails to make any capital
      contributions to the Company, interest shall become due and payable as set
      forth
      in the Company's Operating Agreement (and interest shall not be payable
      hereunder).

     

    Section
      14.05. Force
      Majeure.

     

    No
      Party
      shall be held liable or responsible to any other Party (or to any other person
      or entity) nor be deemed to have defaulted under or breached this Agreement
      for
      failure or delay in fulfilling or performing any term of this Agreement (other
      than the obligation to pay money as and when due hereunder) when such failure
      or
      delay is caused by or results from causes beyond the reasonable control of
      the
      affected Party, including but not limited to, fire, floods, embargoes, war,
      acts
      of war (whether war is declared or not), insurrections, riots, civil commotions,
      strikes, lockouts or other labor disturbances, acts of God or acts, omissions
      or
      delays in acting by any governmental authority or any other Party; provided
      that
      such Party takes reasonable measures to minimize the duration and effect of
      any
      such causes of default or breach. 

     

    
      
         

      

      
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          37 -

        
          

        

      

      
         

      

    

     

    Section
      14.06. Assignment.

     

     This
      Agreement may not be assigned or otherwise transferred by any Party without
      the
      consent of the other Parties; provided, however, that either Cyberkinetics
      or
      NEUROMetrix: (a) may, without such consent, assign its rights and obligations
      under this Agreement in connection with a corporate reorganization, to any
      member of an affiliated group, all or substantially all of the equity interest
      of which is owned and controlled by such Party or its direct or indirect parent
      corporation, and (b) shall assign its rights and obligations under this
      Agreement to a Third Party (i) in connection with a merger, consolidation
      or sale of substantially all of such Party's assets to such Third Party and
      (ii)
      in connection with a sale by such Party of all or substantially all of the
      assets owned by such Party that relate to the activities described herein;
      provided, in both such cases, that such Party's rights and obligations under
      this Agreement shall be assumed by such Third Party in any such transaction.
      Any
      purported assignment in violation of the preceding sentence shall be void.
      

     

    Section
      14.07. Severability.

     

     Each
      Party hereby agrees that it does not intend to violate any public policy,
      statutory or common laws, rules, regulations, treaty or decision of any
      government agency or executive body thereof of any country or community or
      association of countries. Should one or more provisions of this Agreement be
      or
      become invalid, the Parties hereto shall substitute, by mutual consent, valid
      provisions for such invalid provisions which valid provisions in their economic
      effect are sufficiently similar to the invalid provisions that it can be
      reasonably assumed that the Parties would have entered into this Agreement
      with
      such valid provisions. In case such valid provisions cannot be agreed upon,
      the
      invalidity of one or several provisions of this Agreement shall not affect
      the
      validity of this Agreement as a whole, unless the invalid provisions are of
      such
      essential importance to this Agreement that it is to be reasonably assumed
      that
      the Parties would not have entered into this Agreement without the invalid
      provisions. 

     

    Section
      14.08. Notices.

     

     Any
      consent, notice or report required or permitted to be given or made under this
      Agreement by one of the Parties hereto to the other shall be in writing,
      delivered personally or by facsimile (and promptly confirmed by personal
      delivery or courier) or courier, postage prepaid (where applicable), addressed
      to such other Party at its address indicated below, or to such other address
      as
      the addressee shall have last furnished in writing to the addressor, and shall
      be effective upon receipt by the addressee.

     

    
      
         

      

      
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          38 -

        
          

        

      

      
         

      

    

     

    If
      to
      Cyberkinetics:

    

    Cyberkinetics
      Neurotechnology Systems, Inc.

    100
      Foxborough Boulevard, Suite 240

    Foxborough,
      Massachusetts 02035

    Attention:
      President

    

    with
      a
      copy to:

    

    Ice
      Miller LLP

    One
      American Square Suite 3100

    Indianapolis,
      Indiana 46282

    Attention:
      John R. Thornburgh, Esq

    

    If
      to
      NEUROMetrix:

    

    NEUROMetrix,
      Inc.

    62
      Fourth
      Avenue

    Waltham,
      Massachusetts 02451 

    Attention:
      President

    

    with
      a
      copy to: 

    

    Goodwin
      & Proctor LLP

    Exchange
      Place

    Boston,
      Massachusetts 02019 

    Attention:
      H. David Henken, Esq.

    

    If
      to the
      Company:

    

    PNIR,
      LLC

    62
      Fourth
      Avenue

    Waltham,
      Massachusetts 02451 

    Attention:
      President

    

    with
      a
      copy to the other Party not sending such notice.

     

    Section
      14.09. Applicable
      Law; Jurisdiction.

     

     This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      Commonwealth of Massachusetts. Any dispute not required to be subject to the
      dispute resolution processes set forth herein (including Section
      8.03
      and
Section
      14.10),
      shall
      be filed and litigated exclusively in a state or federal court located in the
      Commonwealth of Massachusetts, and each Party hereby consents to the exclusive
      jurisdiction of such courts and waives any defense of personal jurisdiction,
      improper venue or forum
      non conveniens.
      

     

    Section
      14.10. Dispute
      Resolution.

     

    (a) General.
      Except
      as otherwise provided in Section
      8.03
      and
Section
      14.10(c)(v),
      any
      dispute or claim arising out of or relating to this Agreement (or any agreement
      entered into by the Company with any other Party), or a breach hereof or
      thereof, shall be resolved in accordance with this Section
      14.10.
      Except
      with respect to any dispute as to whether a Party properly exercised its rights
      to terminate this Agreement, during the course of resolving any such dispute,
      the Parties shall continue to perform their obligations hereunder and under
      such
      other agreements (including by making payment of any undisputed portion of
      any
      payment obligation that is the subject of a dispute hereunder or thereunder).
      Notwithstanding the foregoing, the obligation of the Parties to continue to
      perform hereunder and under such other agreements during the resolution of
      disputes shall not require a Party to perform obligations (other any undisputed
      portion of any payment obligation) where such performance is rendered
      impossible, or would otherwise not maintain or increase the likelihood that
      the
      Parties will achieve the purposes and goals of the Program, because of
      circumstances created by or directly related to the dispute itself.

     

    
      
         

      

      
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          39 -

        
          

        

      

      
         

      

    

     

    (b) Good
      Faith Consultation.
      In the
      event of a dispute between the Parties (a "Dispute"),
      the
      Parties shall attempt in good faith to settle such Dispute through mutual
      consultation. If, after such consultation, the Dispute cannot be resolved,
      the
      Parties shall wait for not less than sixty (60) days after the Dispute arises
      and at the end of such period meet for a second consultation. If the Dispute
      is
      not resolved after the second consultation, the matter shall be referred to
      the
      Chief Executive Officer of Cyberkinetics and the Chief Executive Officer of
      NEUROMetrix (together, the "Senior
      Executives")
      for
      resolution. The Senior Executives shall diligently attempt to resolve the
      Dispute, including, if they deem it necessary, meeting directly in order to
      provide full consideration of the Dispute. If the Senior Executives are unable
      to resolve the Dispute within sixty (60) additional days after the second
      consultation then the Dispute shall be referred to arbitration.

     

    (c) Arbitration.
      Any
      arbitration hereunder shall be conducted pursuant to the provisions of this
      Section
      14.10.
      Each
      such arbitration shall be conducted in the English language by an arbitrator
      (the "Arbitrator").
      The
      Arbitrator shall be appointed pursuant to the rules of JAMS alternative dispute
      resolution company ("JAMS") upon delivery of the Notice of Arbitration (as
      herein defined). Any such arbitration shall be held in Boston, Massachusetts.
      The Arbitrator shall have the authority to allocate between the Parties the
      costs of arbitration in such equitable manner as the Arbitrator shall determine.
      Judgment upon the award so rendered may be entered in any court having
      jurisdiction or application may be made to such court for judicial acceptance
      of
      any award and an order of enforcement, as the case may be.

     

    (i) Whenever
      a Party (the "Claimant")
      shall
      decide to institute arbitration proceedings, it shall give written notice to
      that effect (the "Notice
      of Arbitration")
      to
      JAMS and to each other Party (the "Respondent").
      The
      Notice of Arbitration shall set forth in detail the nature of the Dispute,
      the
      facts upon which the Claimant relies and the issues to be arbitrated
      (collectively, the "Arbitration
      Issues").
      Within fifteen (15) days of its receipt of the Notice of Arbitration, the
      Respondent shall send the Claimant and the Arbitrator a written Response (the
      "Response").
      The
      Response shall set forth in detail the facts upon which the Respondent relies.
      In addition, the Response shall contain all counterclaims which the Respondent
      may have against the Claimant, whether or not such claims have previously been
      identified. If the Response sets forth a counterclaim, the Claimant shall,
      within fifteen (15) days of the receipt of the Response, deliver to the
      Respondent and the Arbitrator a Reply, answering such counterclaim and setting
      forth in detail the facts upon which the Claimant relies. 

     

    
      
         

      

      
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          40 -

        
          

        

      

      
         

      

    

     

    (ii) Each
      Party shall have the right to engage in pre-arbitration discovery in the form
      of
      requests for production of documents and, if agreed to by the Parties or
      permitted by the Arbitrator for good cause shown, depositions, subject to any
      limitation as ordered by the Arbitrator. Each Party will, upon the written
      request of each other Party, within thirty (30) calendar days of the request,
      provide the other with copies of documents relevant to the issues raised by
      any
      claim or counterclaim on which the producing Party may rely in support of or
      in
      opposition to any claim or defense. Depositions, if any, shall be held within
      thirty (30) calendar days of the Arbitrator's order granting such a request
      or
      by a date agreed to by the Parties. Each deposition shall be limited to a
      maximum of three (3) hours duration. Any dispute regarding discovery, or the
      relevance, scope or deadlines thereof, shall be determined by the Arbitrator,
      which determination shall be conclusive. All discovery shall be completed within
      sixty (60) calendar days following the appointment of the Arbitrator.

     

    (iii) The
      Parties shall agree, or the Arbitrator shall set a date that falls fifteen
      (15)
      days after the later of (i) the expiration of the period provided in
Section
      14.10(b)(i)
      for the
      Claimant to deliver a Reply or (ii) the completion of any discovery
      pursuant to Section
      14.10(b)(ii) for:
      each of
      the Parties to submit to the Arbitrator a proposed resolution of the Arbitration
      Issues and a proposed resolution of any counterclaims set forth in the Response,
      including the amount of monetary damages, if any, or other relief sought. Once
      all Parties' proposals have been submitted, the Arbitrator shall deliver to
      each
      Party a copy of each other Party's proposal.

     

    (iv) A
      final
      arbitration hearing shall be held within thirty (30) days of the submission
      of
      the proposals. At the final arbitration hearing, presentation of the case shall
      include: opening statements, testimony of necessary witnesses, stipulated or
      properly authenticated documents, and closing statements. Each Party may compel
      existing employees of the opposing Party to testify, and each Party agrees
      to
      make such existing employees available for hearing testimony. No documents
      may
      be submitted as evidence unless the documents have been provided to the opposing
      Party in advance of the arbitration. Any Party may demand that a transcript
      of
      the hearing be prepared. If such a demand is made, then the Parties shall each
      pay one-half of the cost of the transcript. Within one (1) month of the final
      arbitration hearing, the Arbitrator shall issue a written opinion with respect
      to any Dispute, which opinion shall explicitly accept either Party's proposal
      in
      its entirety (the "Final
      Decision").
      The
      Arbitrator shall not have the authority to reach a Final Decision that is not
      consistent in all material respects with either Party's proposal. The Arbitrator
      shall have no authority to issue any other Final Decision, other than an
      allocation of costs and fees in accordance with Section
      14.10(c).
      In
      rendering a Final Decision, the Arbitrator shall follow the law of the
      jurisdiction set forth in Section
      14.09,
      and
      shall not use equitable or other principles that would permit the Arbitrator
      to
      ignore the Agreement or the law. A Final Decision shall be binding on all
      Parties. Any award of monetary damages by the Arbitrator shall be subject to
      all
      limitations set forth in this Agreement.

     

    
      
         

      

      
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          41 -

        
          

        

      

      
         

      

    

     

    (d) Business
      Issue Deadlocks.
      In the
      event an issue relating to the conduct of the business of the Program comes
      before the Steering Committee or the conduct of the business of the Company
      comes before the Program Management Team, and such business decision is not
      governed by the terms of this Agreement, but rather is specifically or by
      omission left to the business judgment of the Steering Committee or the Program
      Management Team, and the Steering Committee or the Program Management Team,
      acting in accordance with this Agreement (including the provisions of
Section
      8.03),
      is
      unable to reach a decision on how (or whether) to address or resolve such
      business issue, then the provisions set forth in Section
      14.10(c)
      shall
      apply, but the arbitrator shall be an individual with senior management
      experience at a company that manufactures and sell medical devices in the United
      States and such arbitrator's decision shall be rendered as follows: at the
      conclusion of the arbitration hearings, each party shall submit a proposed
      resolution of the business dispute to the arbitrator that it believes will
      preserve the benefits of the Collaboration for each of the Parties, insofar
      as
      reasonably possible, while preserving or increasing the likelihood that the
      Company will successfully develop and commercialize a Collaboration Product.
      The
      arbitrator shall choose among the proposed resolutions and adopt one as the
      arbitrator's decision, and shall render that decision as the arbitrator's final
      determination. The arbitrator shall not have discretion to render any decision
      other than one submitted by one of the Parties. Notwithstanding the foregoing,
      to the extent the deadlock to be resolved under this Section
      14.10(d)
      relates
      to the amount of the budget to be included in the Development Plan or the
      Commercialization Plan for a coming calendar year, then the amount of the budget
      for such coming calendar year shall be determined as set forth above, provided
      that the maximum amount of the budget for such coming calendar year shall be
      capped at [***] of the budget for the then current calendar year. 

     

    Section
      14.11. Entire
      Agreement.

     

     This
      Agreement and the Company's Operating Agreement contain the entire understanding
      of the Parties with respect to the subject matter hereof. All express or implied
      agreements and understandings, either oral or written, heretofore made are
      expressly merged in and made a part of this Agreement. This Agreement may be
      amended, or any term hereof modified, only by a written instrument duly executed
      by all Parties hereto. 

     

    Section
      14.12. Headings.

     

     The
      captions to the several Articles and Sections hereof are not a part of this
      Agreement, but are merely guides or labels to assist in locating and the several
      Articles and Sections hereof. 

     

    Section
      14.13. Interpretation.

     

     Wherever
      from the context it appears appropriate, each term stated in either the singular
      or the plural shall include the singular and the plural, and pronouns stated
      in
      either the masculine, feminine or the neuter gender shall include the masculine,
      feminine and the neuter.

     

    
      
         

      

      
        -
          42 -

        
          

        

      

      
         

      

    

     

    Section
      14.14. Independent
      Contractors.

     

     It
      is expressly agreed that Cyberkinetics and NEUROMetrix shall be independent
      contractors and that, except as limited liability company members of the
      Company, the relationship between the two Parties shall not constitute a
      partnership, joint venture or agency. Neither Cyberkinetics nor NEUROMetrix
      shall have the authority to make any statements, representations or commitments
      of any kind, or to take any action, which shall be binding on the other or
      the
      Company, without the prior consent of any other Party to do so, or except as
      expressly set forth herein, for example when NEUROMetrix acts as a sales agent
      for the Company. 

     

    Section
      14.15. Agreement
      Not to Solicit Employees.

     

     During
      the term of this Agreement and for a period of [***] years following the
      termination of this Agreement (the "Restricted Period"), Cyberkinetics and
      NEUROMetrix agree not to solicit, seek to persuade, or induce any individual
      who
      is or was during the Restricted Period an employee of the other Party to
      discontinue his or her employment with that Party or to employ or engage such
      person in order to become employed by or associated with any business,
      enterprise or effort that is associated with its own business. For avoidance
      of
      doubt, hiring or engaging the services of an individual in response to an
      advertisement, or in response to an unsolicited inquiry, shall not be a breach
      of this Section
      14.15.
      

     

    Section
      14.16. Waiver.

     

     The
      waiver by any Party hereto of any right hereunder or the failure to perform
      or
      of a breach by any other Party shall not be deemed a waiver of any other right
      hereunder or of any other breach or failure by said other Party whether of
      a
      similar nature or otherwise.

     

    Section
      14.17. Interpretation.

     

     Each
      of the Parties acknowledges and agrees that this Agreement has been diligently
      reviewed by and negotiated by and between them, that in such negotiations each
      of them has been represented by competent counsel and that the final agreement
      contained herein, including the language whereby it has been expressed,
      represents the joint efforts of the Parties hereto and their counsel.
      Accordingly, in interpreting this Agreement or any provision hereof, no
      presumption shall apply against any Party hereto as being responsible for the
      wording or drafting of this Agreement or any such provision, and ambiguities,
      if
      any, in this Agreement shall not be construed against any Party, irrespective
      of
      which Party may be deemed to have authored the ambiguous provision

     

    Section
      14.18. Counterparts.

     

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

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
         

      

      
        -
          43 -

        
          

        

      

      
         

      

    

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

     

    
      	 	 	 
	 	
              CYBERKINETICS
                NEUROTECHNOLOGY 

              SYSTEMS,
                INC.

            
	 
 	 
 	 
 
	 	By:  	/s/
              Tim
              Surgenor 
	 	
              
Title:
              President 

    

     

    
      	 	 	 
	 	
              NEUROMETRIX,
                INC.

            
	 
 	 
 	 
 
	 	By:  	/s/
              Shai
              Gozani 
	 	
              
Title:
              President 

    

     

    
      	 	 	 
	 	
              
                PNIR,
                  LLC

              

            
	 
 	 
 	 
 
	 	By:  	
              CYBERKINETICS
                NEUROTECHNOLOGY 

              SYSTEMS,
                INC.,
                Member

            

    

     

    
      	 	 	 
	 	By:  	
               /s/
                Tim Surgenor 

            
	 	
              
Title:
              President 

    

     

    
      	 	 	 
	 	By: NEUROMETRIX,
              INC., Member
	 
 	 
 	 
 
	
            	By:  	/s/
              Shai Gozani
	 	
              
Title:
              President

    
      
         

      

      
        -
          44 -

        
          

        

      

      
         

      

    

    Schedule
      A

     

    Cyberkinetics
      Licensors*

     

    [***]

    

    *
      The
      term "Cyberkinetics Licensors" includes those entities having at least one
      agreement designated with an "L" but excludes those entities whose agreement
      or
      agreements are all designated with an "O."

     

    
      
         

      

      
        -
          45 -

        
          

        

      

      
         

      

    

    

    Schedule
      B

    

    Cyberkinetics
      Patent Rights include the following patents and patent applications if and
      to
      the extent the patents and patent applications include claims to an invention
      or
      technology relating to or useful in the Field:

    

    Cyberkinetics
      Licensed Pending and Issued Patents

    

    sorted
      by
      origin of technology

     

    [***]

    

    Cyberkinetics
      Patent Rights include the following patent applications if and to the extent
      the
      patent applications include claims to an invention or technology relating to
      or
      useful in the Field:

     

    Cyberkinetics
      Owned Pending Applications (none yet issued as of 2008 01 20)

     

    Note:
      numerous additional inventions being prioritized and considered for patent
      filing

    

    sorted
      by
      Cyberkinetics Docket #

     

    [***]

     

    
      
         

      

      
        -
          46 -

        
          

        

      

      
         

      

    

    Schedule
      C

    

    NEUROMetrix
      Licensors

    

    [***]

     

    
      
         

      

      
        -
          47 -

        
          

        

      

      
         

      

    

    Schedule
      D

    

    Neurometrix
      Patent Rights include the following patents and patent applications if and
      to
      the extent such patents and patent applications include claims to an invention
      or technology relating to or useful in the Field:

    

    Issued
      Patents [Patent Number, Issue Date, Title]

    

    [***]

    

    Filed
      Patents [Publication Number, File Date, Title]

     

    [***]

    

    Provisional
      Patents [ Publication Number, File Date, Title]

     

    [***]

     

    
      
         

      

      
        -
          48 -

        
          

        

      

      
         

      

    

    Schedule
      11.01

    

    Cyberkinetics
      Exception to Representations and Warranties

    

    [***]

     

    
      
         

      

      
        -
          49 -

        
          

        

      

      
         

      

    

    

    Schedule
      11.02

    

    NEUROMetrix
      Exception to Representations and Warranties

     

    [***]

     

    
      
         

      

      
        -
          50 -

        
          

        

      

      
         

      

    

    Schedule
      E

    

    Joint
      Press Release

    

    (attached)

     

    
      
         

      

      
        -
          51 -EXECUTION
        COPY

    

     

    Exhibit
      10.30

     

    Portions
      of this Exhibit 10.30 have been omitted based upon a request for confidential
      treatment. This Exhibit, including the non-public information, has been filed
      separately with the Securities and Exchange Commission. "[***]" designates
      portions of this document that have been redacted pursuant to the request for
      confidential treatment filed with the Securities and Exchange
      Commission.

     

    LIMITED
      LIABILITY COMPANY AGREEMENT

     

    OF

     

    PNIR,
      LLC

     

    THIS
      LIMITED LIABILITY COMPANY AGREEMENT ("Agreement")
      is
      made effective as of February 19, 2008 (the "Effective
      Date")
      by and
      among Cyberkinetics Neurotechnology Systems, Inc., a Delaware corporation having
      its principal place of business at 100 Foxborough Boulevard, Suite 240
      Foxborough, Massachusetts 02035 ("Cyberkinetics"),
      NEUROMetrix Corporation, a Delaware corporation having its principal place
      of
      business at 62 Fourth Avenue, Waltham, Massachusetts 02451 ("NEUROMetrix"),
      and
      such other individuals and entities who may become members of PNIR, LLC (the
      "Company")
      in
      accordance with law and the terms hereof (hereinafter collectively referred
      to
      as the "Members"
      and
      individually as a "Member").
      Capitalized terms used but not defined herein shall be given the same meaning
      as
      provided in the Collaboration Agreement of even date herewith by and among
      the
      Company, Cyberkinetics and NEUROMetrix, as amended from time to time (the
      "Collaboration
      Agreement").

     

    ARTICLE
      I

    FORMATION
      AND MANAGEMENT

     

    Section
      1.01. Formation.
      The
      Company shall be organized as a limited liability company pursuant to the
      Delaware Limited Liability Company Act, as the same may be amended from time
      to
      time (the "Act").
      The
      Act shall govern the rights and liabilities of the parties hereto except as
      otherwise expressly stated herein. 

     

    Section
      1.02. Members;
      Delegation of Authority to Board of Directors.
      The
      Company shall be Member managed for purposes of the Act. The Members of the
      Company are those persons listed on Schedule
      A
      attached
      hereto, as the same may be amended from time to time. Each Member hereby agrees
      that (a) the Company's management shall be vested solely and exclusively in
      the
      Company's Board of Directors designated by the Members as provided in
Section
      1.03
      hereof
      and (b) it will not exercise any authority (actual, apparent or otherwise)
      that
      it may have to bind or obligate the Company, transact any business on behalf
      of
      or in the name of the Company, or otherwise participate in the control of the
      business affairs of the Company, except as expressly provided herein, in the
      Collaboration Agreement, in any Transaction Agreement, or as authorized by
      the
      Board of Directors (as defined in Section
      1.03
      below).

     

    Section
      1.03. Board
      of Directors.
      

     

    (a) The
      business and affairs of the Company shall be managed solely and exclusively
      by a
      Board of Directors that is designated by the Members pursuant to the terms
      of
      this Section
      1.03
      (the
      "Board
      of Directors").
      No
      Member shall have any power to manage the Company other than through its
      designated representatives on the Board of Directors. The Board of Directors
      shall not have any power to take any actions on behalf of the Company unless
      such actions are unanimously approved at a meeting of the Board of Directors
      or
      by unanimous written consent of the Board of Directors. 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
       

      EXECUTION
        COPY

       

    

    (b) Except
      where the approval of the Members is expressly required by this Agreement or
      by
      non-waivable provisions of the Act, the Board of Directors shall have full
      and
      complete authority, power and discretion to direct, manage and control the
      business, affairs and properties of the Company and to make all decisions and
      take all actions relating thereto, including, without limitation, the authority
      to (i) negotiate and execute agreements on behalf of the Company; (ii) make
      representations and warranties on behalf of the Company; (iii) waive rights
      of
      the Company; (iv) extend credit on behalf of the Company; and (v) take or grant
      licenses of intellectual property on behalf of the Company. Notwithstanding
      anything contained in this Agreement to the contrary, the Board of Directors
      shall not take actions which are inconsistent with or in violation of the
      Collaboration Agreement or any of the Transaction Agreements.

     

    (c) Unless
      otherwise determined by the unanimous consent of the Members, the Board of
      Directors shall consist of six (6) persons (each a "Director"),
      which
      shall include three (3) individuals designated by Cyberkinetics (the
      "Cyberkinetics
      Directors"),
      in
      its sole discretion, and three (3) individuals designated by NEUROMetrix (the
      "NEUROMetrix
      Directors"),
      in
      its sole discretion. The Directors need not be Members. The initial
      Cyberkinetics Directors shall be Timothy R. Surgenor, Kurt H. Kruger and Mark
      A.
      Carney and the initial NEUROMetrix Directors shall be Shai N. Gozani, M.D.,
      Ph.D., Michael Williams, Ph.D., and W. Bradford Smith. Each of the Directors
      shall also serve as a member of the Steering Committee established pursuant
      to
      the Collaboration Agreement. 

     

    (d) Each
      Director shall be elected at any annual or special meeting of the Members (or
      by
      unanimous written consent of the Members in lieu of a meeting of the Members)
      and shall serve until his or her successor is duly elected and qualified, or
      until his or her earlier death, resignation or removal. The Members hereby
      irrevocably agree to vote all membership interests of the Company presently
      owned or hereafter acquired by them, as may be required from time to time,
      in
      order to ensure that the Directors designated in accordance with clause (c)
      of
      this Section
      1.03
      are
      elected to the Board of Directors. The Members intend that the provisions of
      this Section
      1.03
      shall be
      a voting agreement by and among the Members and shall be specifically
      enforceable for all purposes and at all times by the Members until the voting
      agreement provisions are amended or terminated pursuant to a duly authorized
      written amendment to this Agreement.

     

    (e) Any
      of
      the Cyberkinetics Directors may be removed at any time during his or her term
      of
      office, with or without cause, by and only by written notice from Cyberkinetics
      to the other Members. Any vacancy in the office of the Cyberkinetics Directors
      shall be filled by and only by a person designated by Cyberkinetics. Any of
      the
      NEUROMetrix Directors may be removed at any time during his or her term of
      office, with or without cause, by and only by written notice from NEUROMetrix
      to
      the other Members. Any vacancy in the office of the NEUROMetrix Directors shall
      be filled by and only by a person designated by NEUROMetrix.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
       

      EXECUTION
        COPY

       

    

    Section
      1.04. Further
      Delegation of Authority.
      The
      Board of Directors may create such committees or offices, appoint the members
      of
      such committees and such officers, and hire such other individuals or entities
      and delegate to any of the foregoing such management responsibility or authority
      as the Board of Directors determines appropriate, including without limitation
      those duties and responsibilities which may have been delegated to the Steering
      Committee under the Collaboration Agreement. It is contemplated that all
      committees will consist of an equal number of representatives from each of
      Cyberkinetics and NEUROMetrix. Any contract, agreement, instrument or other
      document to which the Company is a party may be executed by any Director,
      officer or other individual or entity that has been expressly authorized to
      do
      so by the Board of Directors. 

     

    Section
      1.05. Director
      Fiduciary Duties and Liability.
      To the
      fullest extent permitted by applicable law, no Director shall have any fiduciary
      or similar duty, at law or in equity, or any liability relating thereto, to
      the
      Company or any Member (or any affiliate of any Member), with respect to the
      Company or its business or affairs. In furtherance of and without limiting
      any
      of the foregoing, to the fullest extent permitted by applicable law, each Member
      hereby waives any claim for breach of fiduciary duty or similar duty against
      any
      Director with respect to the Company or its business or affairs. However,
      nothing contained in this Agreement is intended to or will relieve or discharge
      any Director (a) from its obligation to act in good faith with respect to the
      Company and its business and affairs or (b) from liability to the Company or
      the
      Members on account of any fraudulent or similar intentional misconduct or a
      knowing violation of law.

     

    ARTICLE
      II

    OFFICES,
      NAME, ETC.

     

    Section
      2.01. Principal
      Office.
      The
      principal office of the Company shall be located at 62 Fourth Avenue, Waltham,
      Massachusetts 02451 or such place within the Commonwealth of Massachusetts
      as
      may be determined by the Board of Directors from time to time. The Company
      shall
      maintain its records at such address.

     

    Section
      2.02. Registered
      Office; Resident Agent.
      The
      name and address of the Company's registered agent for service of process in
      the
      Commonwealth of Massachusetts shall be NEUROMetrix, 62 Fourth Avenue, Waltham,
      Massachusetts 02451, Attention: President, or such other name and address as
      determined by the Board of Directors.

     

    Section
      2.03. Name.
      The
      business of the Company shall be conducted under the name of PNIR, LLC" or
      such
      other name as may be determined by the Board of Directors.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
       

      EXECUTION
        COPY

       

    

    Section
      2.04. Term.
      The
      term of the Company shall commence upon the filing of the Certificate of
      Formation (the "Effective
      Date")
      and
      shall continue until it is terminated as hereinafter provided.

     

    Section
      2.05. Business
      Ventures.
      Any
      Member may engage independently or with others in other business ventures of
      every nature and description, and neither the Company nor any Member shall
      have
      any rights in and to such independent ventures or the income or profits derived
      therefrom; provided that a Member's participation in such venture is subject
      to
      and consistent with all applicable provisions of the Collaboration
      Agreement.

     

    ARTICLE
      III

    PURPOSES
      AND POWERS

     

    Section
      3.01. Purpose.
      The
      purpose of the Company is to (a) research, develop, commercialize and market
      the
      Collaboration Products and (b) engage in all such other activities permitted
      under the Act as are determined by the Board of Directors.

     

    Section
      3.02. Powers.
      The
      Company shall have all the powers necessary or convenient to the conduct,
      promotion or attainment of the business, trade, purposes or activities of the
      Company, including, without limitation, all the powers of an individual,
      partnership, corporation or other entity.

     

    ARTICLE
      IV

    MEMBERS
      AND THEIR CONTRIBUTIONS

     

    Section
      4.01. Capital
      Contributions; Failure to Contribute.

     

    (a) Capital
      Contributions; Percentage Interests.
      

     

    (i) Each
      Member will contribute capital to the Company as and when provided in the
      Collaboration Agreement and as and when otherwise determined by the Board of
      Directors. The mutually agreed upon fair value of the property contributed
      by
      each Member as of the Effective Date (hereinafter referred to as each Member's
      "Initial
      Property Capital Contribution")
      is set
      forth in Schedule
      A
      attached
      hereto. The Development Plan and the Commercialization Plan developed and
      approved as provided in the Collaboration Agreement shall each include a budget
      for activities to be conducted by or on behalf of the Company and shall provide
      for the timing and amount of cash capital calls from the Members to be made
      to
      fund such activities. Except as specifically provided in the Collaboration
      Agreement or the Act, no Member shall have any obligation to make any
      contribution of cash or property to the Company. In the event a Member fails
      to
      make a cash contribution to capital as and when provided in the Collaboration
      Agreement or as and when otherwise determined by the Board of Directors, without
      limiting any other remedies that may arise hereunder, under the Collaboration
      Agreement or under any other Transaction Agreement, such overdue amount shall
      bear interest, from the date such capital contribution is due until it is paid
      in full (including, for the avoidance of doubt, from the proceeds of a Default
      Loan as described below), at a rate equal to the London Interbank Offer Rate
      (LIBOR) plus three percentage points (but in no event higher than the highest
      rate permitted by applicable law) until paid in full. 

     

    
      
         

      

      
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    (ii) No
      interest shall accrue on any Capital Contributions, and no Member shall have
      the
      right to withdraw or to be repaid any capital it has contributed, except as
      otherwise specifically provided in this Agreement.

     

    (iii) Except
      as
      otherwise provided in Article
      V
      of this
      Agreement, each Member's share of Net Profits and Net Losses ("Percentage
      Interest")
      is set
      forth in Schedule
      A,
      as the
      same may be amended from time to time in accordance with the provisions of
      this
      Agreement.

     

    (b) Failure
      to Make Cash Contributions.
      

     

    (i) If
      any
      Member (the "Non-Contributing
      Member"):
      (A)
      fails to make all or any portion of any cash Capital Contribution required
      to be
      made by it in accordance with the Development Plan or Commercialization Plan,
      and such Member fails to cure such failure within the time periods provided
      in
      the Collaboration Agreement or (B) otherwise fails timely to make all or any
      portion of any cash Capital Contribution required to be made by it in accordance
      with Section
      4.01(a)(i)
      above
      (in either case, the amount of capital not so contributed is the "Delinquent
      Contribution"
      and the
      date when such amount is first overdue, taking into account and waiting until
      expiration of the applicable cure periods under the Collaboration Agreement,
      is
      the “Delinquency
      Date”),
      then,
      in both such cases, each Member who makes the cash Capital Contribution required
      in accordance with the Collaboration Agreement and otherwise as required by
      the
      foregoing Section 4.01(a)(i) (the "Contributing
      Members"),
      in
      addition to any and all other remedies available to a Contributing Member under
      this Agreement, the Collaboration Agreement, or otherwise at law or in equity
      (including, without limitation, instituting a legal proceeding to collect the
      Delinquent Contribution), shall have the right, but not the obligation, to
      proceed in accordance with the terms and conditions set forth in this
Section
      4.01(b).
       

     

    (ii) Each
      of
      the Contributing Members may elect to advance to the Company its pro rata
      portion (based upon its aggregate Capital Contributions relative to the
      aggregate Capital Contributions made by all Contributing Members electing to
      fund the Delinquent Contribution) of any Delinquent Contribution, in cash,
      within thirty (30) days following the Delinquency Date, and such advance shall
      be treated as a non-recourse loan by the Contributing Member(s) to the
      Non-Contributing Member (with any accrued interest as provided in this Section
      4.01, a "Default
      Loan"),
      bearing interest at a rate equal to the greater of (x) the London Interbank
      Offer Rate (LIBOR) plus five percentage points and (y) twelve percent (12%)
      per
      annum (but in no event higher than the highest rate permitted by applicable
      law)
      from the Delinquency Date until paid in full. Each Default Loan shall be due
      and
      payable upon the earlier of nine (9) months from the date such Default Loan
      is
      advanced (or such other maturity date as mutually agreed upon by the
      Contributing Member and the Non-Contributing Member) or the date of dissolution
      of the Company. As of the date of any advance of a Default Loan, the
      Non-Contributing Member shall be deemed to have contributed an amount equal
      to
      the principal amount of such Default Loan to the capital of the Company, and
      the
      Capital Account of the Non-Contributing Member shall be credited with a like
      amount. Notwithstanding the provisions of Articles
      VI
      and
X
      hereof,
      until any and all Default Loans are repaid in full, including all applicable
      interest, the Non-Contributing Member shall draw no distributions from the
      Company and all cash or property otherwise distributable with respect to the
      Non-Contributing Member's Interest (or fees payable by the Company to the
      Non-Contributing Member or any of its Affiliates) shall be distributed to the
      Contributing Member(s) (pro rata in proportion to the amounts advanced) in
      repayment of the outstanding balance of the Default Loan, with such funds being
      applied first to reduce any and all interest accrued on such Default Loan and
      then to reduce the principal amount thereof. Any amounts so applied shall be
      treated, for all purposes under this Agreement, as having actually been
      distributed to the Non-Contributing Member and applied by the Non-Contributing
      Member to repay any outstanding Default Loan(s). 

     

    
      
         

      

      
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    (iii) If,
      upon
      the maturity of any Default Loan (taking into account any agreed upon extensions
      thereof), any principal thereof or accrued interest thereon remains outstanding
      and unpaid by the Non-Contributing Member, the Contributing Member making such
      Default Loan shall elect one of the following options: (A) to renew such Default
      Loan (or any portion thereof) pursuant to the terms and conditions of this
      Section
      4.01(b)
      for such
      term as may be determined by the Contributing Member and bearing interest at
      a
      rate equal to the greater of (x) the London Interbank Offer Rate (LIBOR) plus
      seven percentage points and (y) sixteen percent (16%) per annum (but in no
      event
      higher than the highest rate permitted by applicable law) from the date of
      such
      renewal until paid in full, (B) to contribute the right to receive repayment
      of
      all or any portion of such outstanding principal of, and accrued but unpaid
      interest on, such Default Loan (or any portion thereof) to the capital of the
      Company and to dilute the Percentage Interest of the Non-Contributing Member
      in
      accordance with the provisions of Section
      4.01(b)(iv)
      below or
      (C) to pursue any and all other remedies available to the Contributing Member
      under this Agreement, the Collaboration Agreement, or otherwise at law or in
      equity (including, without limitation, instituting a legal proceeding to collect
      the Default Loan). The Contributing Member may elect any of the options set
      forth in the immediately preceding sentence by giving written notice of such
      election to the Non-Contributing Member no less than ten (10) days prior to
      the
      maturity date of the Default Loan (or such lesser period of time as may be
      practicable in the case of a dissolution of the Company which results in the
      maturity of the Default Loan). Failure of the Contributing Member to give such
      timely written notice to the Non-Contributing Member shall be deemed to
      constitute an election to renew such Default Loan for an additional term of
      ninety (90) days on the terms set forth herein.

     

    
      
         

      

      
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    (iv) The
      Non-Contributing Member may repay any Default Loan in full or in part at any
      time before the maturity date without premium or penalty. Upon the maturity
      of a
      Default Loan that is not fully repaid on or before the maturity date thereof,
      the Contributing Member may elect to treat all or any portion of such
      outstanding principal of, and accrued but unpaid interest on, such Default
      Loan
      previously extended by the Contributing Member (or any portion thereof) as
      a
      direct capital contribution by the Contributing Member to the capital of the
      Company and (A) such amounts so contributed shall be deemed repaid and satisfied
      by the Non-Contributing Member; (B) such amounts so contributed shall be deemed
      to have been distributed to the Non-Contributing Member, and debited to the
      Capital Account of the Non-Contributing Member; and (C) the Capital Account
      of
      the Contributing Member shall be increased by the amount so contributed. Upon
      the contribution of the principal and interest of any Default Loan by the
      Contributing Member pursuant to this Section
      4.01(b)(iv),
      the
      Percentage Interest of the Non-Contributing Member shall be reduced by the
      Dilution Percentage and the Percentage Interest of the Contributing Member
      shall
      be increased by the Dilution Percentage (and Schedule
      A attached
      hereto shall be amended to reflect such reductions and increases). The
      "Dilution
      Percentage"
      shall
      equal the amount expressed in percentage points (rounded to the nearest
      one-hundredth of a percentage point) calculated based upon the following
      formula: 

     

    Outstanding
      Balance of any Default Loan (including interest) Contributed by the Contributing
      Member    

     

    
      	 	
              Dilution
                Percentage = 150% x

            	
              Aggregate
                amount of all Capital Contributions (cash and property) made by the
                Members (including the outstanding balance of any Default Loan (including
                interest) contributed by the Contributing
                Member)

            

    

     

    The
      application of the provisions of this Section
      4.01(b)(iv)
      is
      illustrated by the following example: Assume that (A) the aggregate Capital
      Contributions made by the Members hereunder (prior to the additional Capital
      Contribution) was $5,000,000; (B) an additional cash Capital Contribution of
      $200,000 was required to be contributed by the Members pursuant to Section
      4.01(a)(i);
      (C) the
      Non-Contributing Member, whose Percentage Interest is at the time 50%, failed
      to
      contribute its share of such contribution of $100,000 (i.e., 50% x $200,000);
      and (D) the Contributing Member, whose Percentage Interest is 50%, made the
      Delinquent Contribution of $100,000 to the capital of the Company on behalf
      of
      the Non-Contributing Member pursuant to this Section
      4.01(b).

     

    The
      Dilution Percentage applicable to the Non-Contributing Member in the preceding
      illustration would be equal to 2.88 percentage points, calculated as
      follows:

    

      
        	 	
                2.88%

              	
                =  
                  150%

              	
                 
                  x

              	
                                    
                  $100,000

              	 
	 	 	 	 	
                ($5,000,000
                  + $100,000 + $100,000)

              	 

      

    

     

    The
      Percentage Interest of the Non-Contributing Member, therefore, would be reduced
      by 2.88 percentage points from 50% to 47.12%, and the Percentage Interest of
      the
      Contributing Member would be increased by a like amount from 50% to 52.88%.
      In
      the event there is more than one Contributing Member, such increase shall be
      allocated among them in proportion to the amounts of the Default Loan advanced
      by each of them. Any and all adjustments to Percentage Interests pursuant to
      this Section
      4.01(b)
      shall be
      rounded to the nearest .01%. As a result of any contribution to the capital
      of
      the Company pursuant to this Section
      4.01(b),
      any
      Contributing Member shall have the right, but not the obligation, to cause
      the
      Capital Accounts of the Members to be booked-up or booked-down in accordance
      with the provisions of Treasury Regulation Section 1.704-1(b)(2)(iv)(f) to
      reflect the fair market value of the Company's assets (as reasonably determined
      by such Contributing Member) at the time of such contribution.

     

    
      
         

      

      
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    For
      avoidance of doubt, interest that would have accrued on the unpaid capital
      contribution of the Non-Contributing Member in the above example was excluded
      for the sake of simplicity.

     

    Section
      4.02. Capital
      Accounts.
      A
      separate account (a "Capital
      Account")
      shall
      be maintained for each Member and adjusted in accordance with Treasury
      Regulation Section 1.704-1(b) as follows:  

     

    (a) There
      shall be (i) credited to each Member's Capital Account (A) the amount of cash
      such Member has contributed to the Company, (B) the agreed fair market value
      of
      any property such Member has contributed to the Company, as determined in good
      faith by the Board of Directors, and (C) such Member's allocable share of Net
      Profits (and any items in the nature of income or gain separately allocable
      to
      such Member); and (ii) charged against each Member's Capital Account (A) the
      amount of all distributions to such Member, and (B) such Member's allocable
      share of Net Losses (and any items in the nature of losses or deductions
      separately allocable to such Member).

     

    (b) If
      the
      Company at any time distributes any of its assets in kind to any Member, the
      Capital Account of each Member shall be adjusted to account for that Member's
      allocable share (as determined under Section
      5.01
      below)
      of the Net Profits or Net Losses that would have been realized by the Company
      had it sold the assets that were distributed at their respective fair market
      values immediately prior to their distribution.

     

    (c) In
      the
      event any Member's interest is transferred in accordance with the terms of
      this
      Agreement, the transferee shall succeed to the Capital Account of the transferor
      to the extent it relates to the transferred interest.

     

    Section
      4.03. Loans.
      The
      Members shall not make loans to the Company unless the Members unanimously
      agree
      in writing to make such loans.

     

    Section
      4.04. Additional
      Members.
      Except
      as otherwise provided in Section
      8.02
      with
      respect to Substitute Members, additional Members may only be admitted with
      the
      prior written approval of all of the Members. Such additional Members shall
      execute and acknowledge a counterpart to this Agreement or shall otherwise
      evidence in writing their agreement to be bound by the terms hereof in such
      manner as the Members shall determine.

     

    
      
         

      

      
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    Section
      4.05. Liability
      of Members.

     

    (a) No
      Member
      shall be liable for the obligations of the Company solely by reason of being
      a
      Member.

     

    (b) No
      Member
      shall be required to make any contributions to the capital of the Company other
      than as provided in Section
      4.01 (a)
      hereof.

     

    (c) No
      Member
      shall be liable to the Company or the other Members for monetary damages for
      breach of fiduciary or similar duty as a Member, if any, to the fullest extent
      permitted by applicable law; provided,
      however,
      that
      this provision shall not eliminate the liability of a Member (i) for acts or
      omissions not in good faith or which involve fraudulent or similar intentional
      misconduct or a knowing violation of law, or (ii) for any breach of the
      Collaboration Agreement, or this Agreement or any other Transaction Agreement.
      No amendment to or repeal of this Section
      4.05(c)
      shall
      apply to or have any effect on the liability or alleged liability of any Member
      for or with respect to any acts or omissions of such Member occurring prior
      to
      such amendment or repeal occurring, or any cause of action, suit or claim that,
      but for this Section
      4.05(c),
      would
      accrue or arise prior to such amendment, repeal or adoption of an inconsistent
      provision.

     

    Section
      4.06. Withdrawal
      of Members.
      No
      Member shall have the right to withdraw from the Company or to demand a return
      of its capital interest at any time except upon termination and dissolution
      of
      the Company, unless agreed to by the unanimous written consent of the other
      Members.

     

    ARTICLE
      V

    ALLOCATIONS

     

    Section
      5.01. Certain
      Definitions.
      For
      purposes of this Agreement, the following terms shall have the meanings given
      them in this Article
      V:

     

    (a) "Adjusted
      Capital Account"
      for a
      Member means such Member's Capital Account (i) reduced by the net adjustments,
      allocations and distributions described in Treasury Regulation Sections
      1.704-1(b)(2)(ii)(d)(4), (5) and (6) which, as of the end of the Company's
      taxable year are reasonably expected to be made to such Member, and (ii)
      increased by the sum of (A) the amounts a Member is deemed obligated to restore
      pursuant to the penultimate sentences of Treasury Regulation Sections
      1.704-2(g)(1) and 2(i)(5), (B) the excess, if any, of such Member's Capital
      Contribution over such Member's actual paid-in capital contribution and (c)
      that
      portion of any indebtedness of the Company (other than "partner
      nonrecourse debt"
      as
      defined in Treasury Regulation Section 1.704-2(b)(4)) with respect to which
      the
      Member bears the economic risk of loss that such indebtedness would not be
      repaid out of the assets of the Company if all of the assets of the Company
      were
      sold at their respective book values as of the end of the fiscal period and
      the
      proceeds from the sales together with any amounts described in clause (B) above,
      were used to pay the liabilities of the Company.

     

    (b) "Net
      Profits"
      and
      "Net
      Losses"
      mean
      the taxable income or loss, as the case may be, for a period (or from a
      transaction) as determined in accordance with Section 703(a) of the Internal
      Revenue Code of 1986, as amended ("IRC")
      (for
      this purpose, all items of income, gain, loss, or deduction required to be
      separately stated pursuant to IRC Section 703(a) (1) shall be included in
      taxable income or loss) computed with the following adjustments: (i) To the
      extent required by (and in the manner described in) Treasury Regulation
      1.704-1(b) (2), items of gain, loss, and deduction shall be computed based
      upon
      the book values of the Company's assets rather than upon such assets' adjusted
      bases for federal income tax purposes (if different); (ii) Any tax-exempt income
      received by the Company shall be included as an item of gross income;(iii)
      The
      amount of any adjustments to the adjusted bases (or book values if clause (i)
      above applies) of any assets of the Company pursuant to IRC Section 743 shall
      not be taken into account; and (iv) Any expenditure of the Company described
      or
      treated as being described in IRC Section 705(a)(2)(B) shall be treated as
      a
      deductible expense.

     

    
      
         

      

      
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    (c) "Member
      Loan Nonrecourse Deductions"
      means
      any Company deductions that would be Nonrecourse Deductions if they were not
      attributable to a liability owed to or guaranteed by a Member within the meaning
      and intent of Treasury Regulation Section 1.704-2(i).

     

    (d) "Member
      Loan Minimum Gain"
      has the
      meaning set forth in Treasury Regulation Section 1.704-2(i)(3).

     

    (e) "Minimum
      Gain"
      has the
      meaning set forth in Treasury Regulation Section 1.704-2(d). Minimum Gain shall
      be computed separately for each Member in a manner consistent with the Treasury
      Regulations under IRC Section 704(b).

     

    (f) "Nonrecourse
      Deductions"
      has the
      meaning set forth in Treasury Regulation Section 1.704-2(b)(1). The amount
      of
      Nonrecourse Deductions for a taxable year of the Company shall be determined
      according to the provisions of Treasury Regulation Section
      1.704-2(c).

     

    (g) "Nonrecourse
      Liability"
      means
      any liability of the Company with respect to which no Member has personal
      liability, as determined in accordance with IRC Section 752 and the Treasury
      Regulations promulgated thereunder.

     

    Section
      5.02. Allocations
      of Profit and Loss.
      As of
      the end of each fiscal year of the Company, or at the time any allocation is
      determined to be necessary by the Board of Directors, Net Profits or Net Losses
      shall be allocated as follows:  

     

    (a) Except
      as
      provided in Section 5.03 below, Net Profits and Net Losses for any fiscal year
      shall be allocated among the Members in proportion to their respective
      Percentage Interests. 

     

    (b) With
      respect to the allocation of Net Losses or Net Profits pursuant to this
Section
      5.02
      for any
      fiscal year in which an additional or Substitute Member is admitted to the
      Company, all Net Losses or Net Profits so allocable shall be allocated in a
      manner which takes into account the varying Percentage Interests during such
      fiscal year based on an accounting convention chosen by the Board of Directors.
      In no event shall a retroactive allocation of Net Losses be made pursuant to
      this Section
      5.02.

     

    
      
         

      

      
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    Section
      5.03. Special
      Allocations.
      Notwithstanding the provisions of Section
      5.02
      above,
      the following allocations of Net Profits and Net Losses and items thereof shall
      be made:

     

    (a) If,
      during any year a Member unexpectedly receives any adjustment, allocation or
      distribution described in Treasury Regulation Section
      1.704-1(b)(2)(ii)(d)(4),(5) or (6), and, as a result of such adjustment,
      allocation or distribution, such Member's Adjusted Capital Account has a
      negative balance (computed with the adjustments set forth in clauses (i) and
      (ii) of Section
      5.01(a)),
      then
      items of gross income for such year (and, if necessary, subsequent years) shall
      first be allocated to such Member in the amount necessary to eliminate such
      negative balance as quickly as possible. This Section
      5.03(a)
      is
      intended to constitute a "qualified
      income offset"
      provision within the meaning of the above Treasury Regulations, and shall be
      so
      interpreted.

     

    (b) Nonrecourse
      Deductions for a taxable year or other period shall be specially allocated
      among
      the Members in proportion to their Percentage Interests.

     

    (c) Any
      Member Loan Nonrecourse Deduction for any taxable year or other period shall
      be
      specially allocated to the Member or Members who bear the risk with respect
      to
      the loan to which the Member Loan Nonrecourse Deduction is attributable in
      accordance with Treasury Regulation Section 1.704-2(b).

     

    (d) In
      no
      event shall Net Losses of the Company be allocated to a Member if such
      allocation would cause or increase a negative balance in such Member's Adjusted
      Capital Account.

     

    (e) Except
      as
      set forth in Treasury Regulation Section 1.704-2(f)(2), (3) and (4), if, during
      any taxable year, there is a net decrease in Minimum Gain, each Member, prior
      to
      any other allocation pursuant to this Article
      V,
      shall
      be specially allocated items of gross income and gain for such taxable year
      (and, if necessary, subsequent taxable years) in an amount equal to that
      Member's share of the net decrease of Minimum Gain, computed in accordance
      with
      Treasury Regulation Section 1.704-2(g). Allocation of gross income and gain
      pursuant to this Section
      5.03(e)
      shall be
      made first from gain recognized from the disposition of Company assets subject
      to non-recourse liabilities (within the meaning of the Treasury Regulations
      promulgated under IRC Section 752), to the extent of the Minimum Gain
      attributable to those assets, and thereafter, from a pro rata portion of the
      Company's other items of income and gain for the taxable year. It is the intent
      of the parties hereto that any allocation pursuant to this Section
      5.03(e)
      shall
      constitute a "minimum
      gain chargeback"
      under
      Treasury Regulation Section 1.704-2(f). With respect to a net decrease in Member
      Loan Minimum Gain, items of gross income shall be specially allocated consistent
      with the preceding sentence, and Treasury Regulation Section
      1.704-2(i)(4).

     

    (f) In
      the
      event that Net Profits, Net Losses or items thereof are allocated to one or
      more
      Members pursuant to paragraphs (a) or (d) above, subsequent Net Profits and
      Net
      Losses will first be allocated (subject to the provisions of paragraphs (a)
      through (d)) to the Members in a manner designed to result in each Member having
      a Capital Account balance equal to what it would have been had the original
      allocation of Net Profits, Net Losses or items thereof pursuant to paragraphs
      (a) or (d) not occurred.

     

    
      
         

      

      
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    (g) The
      respective Percentage Interests in the Net Profits and Net Losses or items
      thereof shall remain as set forth above unless changed by amendment to this
      Agreement or by an assignment of an interest in the Company authorized by the
      terms of this Agreement. Except as otherwise provided herein, for tax purposes,
      all items of income, gain, loss, deduction or credit shall be allocated to
      the
      Members in the same manner as are Net Profits and Net Losses; provided,
      however,
      that
      if, as a result of clause (i) of Section
      5.01(b),
      the
      book value of any property of the Company was used in computing Net Profits
      or
      Net Losses, then items of income, gain, deduction or credit related to such
      property for tax purposes shall be allocated among the Members so as to take
      account of the variation between the adjusted basis of the property for tax
      purposes and its book value in the manner provided for by the "traditional
      method" under IRC Section 704(c).

     

    (h) If
      a
      Member's Percentage Interest is reduced (provided the reduction does not result
      in a complete termination of the Member's interest in the Company), the Member's
      share of the Company's "unrealized
      receivables"
      and
      "substantially
      appreciated inventory"
      (within
      the meaning of IRC Section 751) shall not be reduced, so that, notwithstanding
      any other provisions of this Agreement to the contrary, that portion of the
      Net
      Profit otherwise allocable upon a liquidation or dissolution of the Company
      pursuant to Article
      V
      hereof
      which is taxable as ordinary income (recaptured) for federal income tax purposes
      shall, to the extent possible without increasing the total gain to the Company
      or to any Member, be specially allocated among the Members in proportion to
      the
      deductions (or basis reductions treated as deductions) giving rise to such
      recapture.

     

    (i) In
      the
      event that (a) there is a change in the federal income tax law, (b) the Company
      borrows money or property, or (c) the Company makes an election to adjust the
      basis of the Company’s assets under Section 754 of the Code, the Board of
      Directors, acting in its reasonable discretion after consultation with tax
      counsel to the Company, shall make the minimum modifications to the allocation
      provisions of this Agreement necessary to preserve the underlying economic
      objectives of the Members as reflected in this Agreement, and, in the case
      of
      such a borrowing or election, shall properly allocate the tax items relating
      to
      such borrowing or election in accordance with the IRC and the Treasury
      Regulations.

     

    ARTICLE
      VI

    DISTRIBUTIONS

     

    Section
      6.01. General.
      Except
      as provided in Article X, after providing for the payment of any amounts due
      on
      the indebtedness of the Company, if any, and providing for a reasonable reserve
      for the payment of expenses and liabilities of the Company, the balance of
      the
      Net Profits of the Company shall be distributed to the Members at
      such
      times as determined by the Board of Directors, but on no less than a quarterly
      basis,
      pro
      rata among the Members based upon their respective Percentage
      Interests.

     

    
      
         

      

      
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    Section
      6.02. Tax
      Distributions.
      Notwithstanding anything contained herein to the contrary, within ninety (90)
      days following each fiscal year, subject to the availability of cash after
      providing for the payment of any amounts due on the indebtedness of the Company,
      if any, and providing for a reasonable reserve for the payment of expenses
      and
      liabilities of the Company, the Company shall distribute to each Member cash
      in
      an amount equal to forty percent (40%) of the Company’s net taxable income or
      gain shown as allocated to such Member on the Company’s federal income tax
      return for such fiscal year. Notwithstanding the foregoing, the aggregate amount
      of any distribution payable to any Member under this Section
      6.02
      shall be
      reduced by any other distributions received by such Member during the applicable
      fiscal year.  

     

    ARTICLE
      VII

    INDEMNIFICATION

     

    Section
      7.01. Indemnification
      of Directors and Officers.
      The
      Company shall, to the fullest extent permitted by the Act, as amended from
      time
      to time, and subject to the limitations and conditions set forth in this Article
      VII, indemnify the organizer, officers and Directors of the Company
      (collectively, "Indemnified
      Persons")
      from
      and against all expenses and liabilities (including counsel fees, judgments,
      fines, excise taxes, penalties and amounts payable in settlements) reasonably
      incurred by or imposed upon an Indemnified Person in connection with any
      threatened, pending or completed action, suit or other proceeding, whether
      civil, criminal, administrative or investigative, in which such Indemnified
      Person may become involved by reason of his or her service as an officer or
      Director of the Company. The Members shall have such indemnification rights
      and
      obligations as set forth in the Collaboration Agreement and as otherwise
      determined by all of the Members. 

     

    (a) Indemnification
      may include payment by the Company of expenses in defending an action or
      proceeding in advance of the final disposition of such action or proceeding
      upon
      receipt of any undertaking by the Indemnified Person to repay such payment
      if it
      is ultimately determined that he is not entitled to indemnification under this
      Article
      VII,
      which
      undertaking may be accepted without reference to the financial ability of the
      Indemnified Person to make such repayments.

     

    (b) The
      Company shall not indemnify any Indemnified Person in connection with a
      proceeding (or part thereof) initiated by such person unless he or she is
      successful on the merits, the proceeding was authorized by the Members or the
      Board of Directors or the proceeding seeks a declaratory judgment regarding
      his
      own conduct.

     

    (c) The
      indemnification rights provided in this Article
      VII
      (i)
      shall not be deemed exclusive of any other rights to which Indemnified Persons
      may be entitled under any law, agreement or vote of disinterested Members,
      Board
      of Directors or otherwise, and (ii) shall inure to the benefit of the heirs,
      executors and administrators of Indemnified Persons. The Company may, to the
      extent authorized from time to time by the Board of Directors, grant
      indemnification rights to employees or agents of the Company or persons other
      than Indemnified Persons serving the Company and such rights maybe equivalent
      to, or greater or less than, those set forth in this Article
      VII.

     

    
      
         

      

      
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    (d) No
      indemnification shall be provided for any Indemnified Person with respect to
      (i)
      any matter as to which he or she shall have been finally adjudicated in any
      proceeding not to have acted in good faith in the reasonable belief that his
      action was in the best interests of the Company, (ii) any act which constitutes
      gross negligence or willful misconduct, or (iii) any matter disposed of by
      a
      compromise payment by such Indemnified Person, pursuant to a consent decree
      or
      otherwise, unless the payment and indemnification thereof have been approved
      by
      the Board of Directors, which approval shall not unreasonably be withheld or
      delayed, or by a court of competent jurisdiction.

     

    (e) Any
      amendment or repeal of the provisions of this Article
      VII
      shall
      not adversely affect any right or protection of an Indemnified Person with
      respect to any act or omission of such Indemnified Person occurring prior to
      such amendment or repeal.

     

    ARTICLE
      VIII

    ASSIGNABILITY
      OF MEMBERSHIP INTERESTS

     

    Section
      8.01. Assignment.
      

     

    (a) A
      Member
      may not assign his or its membership interest in the Company, or any of his
      or
      its rights or obligations under this Agreement, in whole or in part, without
      the
      prior written consent of all of the other Members, who may or may not consent
      thereto in their absolute discretion. In addition to the foregoing limitation,
      Cyberkinetics and NEUROMetrix shall assign all of their respective interests
      in
      the Company, including without limitation their membership interest in the
      Company, and their rights and obligations under this Agreement, to any assignee
      of such party’s rights under the Collaboration Agreement and, notwithstanding
      the foregoing sentence, no such assignment shall require the consent of any
      other Member. 

     

    (b) An
      assignment of a Member's interest does not of itself dissolve the Company or
      permit the assignee to participate in the business and affairs of the Company
      or
      to become a Member or exercise any rights or powers of a Member.

     

    Section
      8.02. Substitute
      Members.
      Except
      for an assignee of a Member's interest in accordance with the second sentence
      of
Section
      8.01 (a),
      who
      shall be admitted as a Substitute Member, no assignee of a Member's interest
      shall have the right to be admitted as a Substitute Member in place of the
      assignor unless:

     

    (a) the
      assignor shall designate in writing satisfactory to the other Members the
      intention that the assignee is to become a Substitute Member;

     

    (b) the
      assignee shall agree in writing to be bound by all of the terms of this
      Agreement;

     

    (c) all
      of
      the other Members consent in writing to the admission of the assignee as a
      Substitute Member, which consent may be withheld in their absolute
      discretion;

     

    
      
         

      

      
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    (d) the
      assignee shall execute and/or deliver such instruments, including without
      limitation, an opinion of counsel satisfactory to the Members, to the effect
      that such proposed assignment and substitution does not violate state or federal
      securities laws, and such instrument as the Members deem necessary or desirable
      to effect such assignee's admission as a Substitute Member and to evidence
      the
      assignee's acceptance of the terms of this Agreement; and

     

    (e) the
      assignee shall pay all reasonable expenses in connection with the assignee's
      admission as a Substitute Member.

     

    Section
      8.03. Rights
      of Assignees.
      An
      assignee who does not become a Substitute Member shall succeed only to the
      rights of the assignor to receive allocations and distributions from the Company
      as provided in Articles
      V,
      VI
      and
X,
      and
      shall not have the right to vote to the extent of the assigned
      interest.

     

    Section
      8.04. Other
      Restrictions.
      A
      Member may not pledge, encumber or hypothecate any of its interest without
      the
      prior written consent of all of the other Members.

     

    ARTICLE
      IX

    FISCAL
      YEAR, ACCOUNTING, INSPECTION OF BOOKS

     

    Section
      9.01. Fiscal
      Year and Accounting.
      Except
      as otherwise approved by the Board of Directors, or required by law, the fiscal
      year of the Company shall be the calendar year and the books of the Company
      shall be kept on the accrual method.

     

    Section
      9.02. Inspection
      of Books.
      The
      books of the Company shall at all times be available for inspection and audit
      by
      any Member at the Company's principal place of business during business hours.
      The Company shall furnish each Member with all necessary tax reporting
      information as to its interest in the Company, with an annual balance sheet
      and
      profit and loss statement and with a cash flow statement showing any
      distributions made to the Members, within ninety (90) days
      after the close of each fiscal year.

     

    ARTICLE
      X

    DISSOLUTION

     

    Section
      10.01. Events
      of Dissolution.
      The
      term of the Company shall commence on the Effective Date and shall be in full
      force and effect until the earliest of the following:

     

    (a) the
      sale
      or disposition of all or substantially all of the assets of the
      Company;

     

    (b) the
      dissolution of the Company by the unanimous consent of the Members;

     

    (c) the
      death, insanity, retirement, resignation, expulsion, bankruptcy, or dissolution
      of a Member; provided,
      however,
      that
      the Members may consent to the continuation of the business of the Company
      after
      the occurrence of such an event, pursuant to Section 18-806 of the Act and
      Section
      10.02
      of this
      Agreement;

     

    
      
         

      

      
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    (d) the
      entry
      of a decree of judicial dissolution under Section 18-802 of the Act;

     

    (e) the
      occurrence of any event, other than those referred to in paragraph (d), which
      causes dissolution of a limited liability company under the Act; or

     

    (f) upon
      the
      termination of the Collaboration Agreement in accordance with its
      terms.

     

    Notwithstanding
      the dissolution of the Company, the business of the Company shall continue
      to be
      governed by this Agreement until the winding up of the Company
      occurs.

     

    Section
      10.02. Consent
      to Continue Company.
      The
      Members may vote to continue the business of the Company within ninety (90)
      days
      after the occurrence of an event of dissolution as set forth in Section
      10.01,
      pursuant to and in accordance with Section 18-806 of the Act. The agreement
      of
      the remaining Members holding a majority of the remaining Percentage Interests
      shall constitute the consent of the Members to the continuation of the
      Company.

     

    Section
      10.03. Distribution
      Upon Dissolution.
      

     

    (a) After
      payment of liabilities owing to creditors, the Board of Directors or the
      liquidator, as the case may be, shall set up such reserves as it deems
      reasonably necessary for any contingent or unforeseen liabilities or obligations
      of the Company, including the expenses of liquidation. Such reserves may be
      paid
      over by the Board of Directors or the liquidator to a bank to be held in escrow
      for the purpose of paying any such contingent or unforeseen liabilities or
      obligations and, at the expiration of such period as the Board of Directors
      or
      the liquidator may deem advisable, such reserves shall be distributed to the
      Members or their assigns in the manner set forth below in Section
      10.03(b).
      In the
      event that any part of such net assets consists of securities or other non-cash
      assets, the Board of Directors or liquidator may (but shall not be required
      to)
      take whatever steps it deems appropriate to convert such assets into cash or
      into any other form that would facilitate the distribution thereof.

     

    (b) After
      payment has been made pursuant to Section
      10.03(a),
      the
      Board of Directors or the liquidator shall (i) cause the assets described in
      Section 13.03 of the Collaboration Agreement to be distributed in accordance
      with the applicable terms of such section and (ii) cause the remaining net
      assets of the Company to be distributed to and among the Members in proportion
      to and to the extent of their positive Capital Account balances (after such
      balances have been adjusted to reflect all allocations of Net Profits and Net
      Losses and the payments made in Section
      10.03(a)).
      For
      purposes of distributing assets pursuant to the foregoing clause (ii), cash
      and
      non-cash assets shall be distributed to each Member on a pro rata basis, or
      in
      such other manner as the Board of Directors may determine, with all non-cash
      assets being distributed on the basis of their fair market value.

     

    (c) The
      Company shall terminate when all property has been distributed among the
      Members. Upon such termination, the Board of Directors shall execute and cause
      to be filed a certificate of cancellation of the Company, as provided for in
      Section 18-203 of the Act, and any and all other documents necessary in
      connection with the termination of the Company.

     

    
      
         

      

      
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    ARTICLE
      XI

    GENERAL
      PROVISIONS

     

    Section
      11.01. Complete
      Agreement; Conflicts Among Agreements; Modification.
      This
      Agreement and the Collaboration Agreement contain a complete statement of all
      the agreements among the parties hereto with respect to the Company. There
      are
      no representations, agreements, arrangements or undertakings, oral or written,
      between or among the Members relating to the subject matter of this Agreement
      and the Collaboration Agreement which are not fully expressed in this Agreement
      and the Collaboration Agreement. Except to the extent this Agreement
      specifically provides that it shall control as to any conflicting provisions
      as
      between it and the Collaboration Agreement, it is intended that the provisions
      of this Agreement and the provisions of the Collaboration Agreement will
      supplement each other and such agreements shall be reconciled with one another
      to the maximum extent possible. This Agreement may be amended or modified only
      with the prior written consent of all of the Members. 

     

    Section
      11.02. Governing
      Law; Severability.
      All
      questions with respect to the construction of this Agreement and the rights
      and
      liabilities of the parties shall be determined in accordance with the applicable
      provisions of the laws of the State of Delaware, and this Agreement is intended
      to be performed in accordance with, and only to the extent permitted by, all
      applicable laws, ordinances, rules and regulations of such state. If any
      provision of this Agreement, or the application thereof to any person or
      circumstances, shall, for any reason and to any extent, be invalid or
      unenforceable, the remainder of this Agreement and the application of that
      provision to other persons or circumstances shall not be affected but rather
      be
      enforced to the extent permitted by law.

     

    Section
      11.03. Notice.
      Any
      consent, notice or report required or permitted to be given or made under this
      Agreement by one of the parties hereto to the other shall be in writing,
      delivered personally, by facsimile or by electronic transmission (and promptly
      confirmed by personal delivery or courier) or courier, postage prepaid (where
      applicable), addressed to such other party at its address indicated on
Schedule
      A,
      or to
      such other address as the addressee shall have last furnished in writing to
      the
      addressor, and shall be effective upon receipt by the addressee.

     

    Section
      11.04. Pronouns.
      Feminine or masculine pronouns shall be substituted for the neuter pronouns,
      neuter pronouns for masculine or feminine pronouns, plural for the singular
      and
      the singular for the plural, in any place in this Agreement where the context
      may require such substitution.

     

    Section
      11.05. Titles.
      The
      titles of Articles and Sections are included only for convenience and shall
      not
      be construed as a part of this Agreement or in any respect affecting or
      modifying its provisions.

     

    
      
         

      

      
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    Section
      11.06. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of all parties hereto
      and their heirs, successors, permitted assigns, and legal
      representatives.

     

    Section
      11.07. Counterparts.
      This
      Agreement may be signed in one or more counterparts and all counterparts so
      executed shall constitute one agreement binding on all parties hereto,
      notwithstanding that all parties have not signed the original or the same
      counterpart.

     

    Section
      11.08. Dispute
      Resolution.
      Any
      dispute or claim arising out of or relating to this Agreement, or a breach
      hereof, shall be resolved consistent with and pursuant to the dispute resolution
      procedures set forth in Section
      14.10(c) and (d)
      of the
      Collaboration Agreement, as the same may be amended from time to time, and
      such
      provisions are incorporated herein by reference and applicable hereto regardless
      of any termination of the Collaboration Agreement. 

     

    Section
      11.09. Legal
      Counsel.
      Each
      Member hereby acknowledges and agrees that
      each
      Member will, if it desires to engage counsel on any matter, retain its own
      independent counsel with respect thereto and will pay all fees and expenses
      of
      such independent counsel. The Company may engage legal counsel in connection
      with its business and affairs so long as the selection thereof is approved
      by
      the Board of Directors. 

     

    Section
      11.10. Auditors.
      The
      Company may engage independent auditors in connection with its business and
      affairs so long as the selection thereof is approved by the Board of
      Directors.

     

    [The
      remainder of this page is intentionally left blank.]

     

    
      
         

      

      
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      EXECUTION
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    IN
      WITNESS WHEREOF,
      we have
      affixed our signatures as of the day first above written.

    
      	 	 	 
	 	MEMBERS
              :
	 	 
	 	
              Cyberkinetics
                Neurotechnology Systems, Inc.

            
	 
 	 
 	 
 
	Date: 	By:  	/s/
              Tim
              Surgenor  
	 	
              
Title:
              President

    

     

    
      	 	 	 
	 	
              NEUROMetrix
                Corporation

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Shai
              Gozani 
	 	
              
Title:
              President

    

     

    
      
         

      

      
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        EXECUTION
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    Schedule
      A

     

    As
      of February 19, 2008

     

    Members

     

    Cyberkinetics
      Neurotechnology Systems, Inc.

    100
      Foxborough Boulevard

    Suite
      240

    Foxborough,
      Massachusetts 02035

    Attn:
      President

    

    NEUROMetrix
      Corporation

    62
      Fourth
      Avenue

    Waltham,
      Massachusetts 02451 

    Attn:
      President

    

    Initial
      Property Capital Contributions

    

      
        	
                Cyberkinetics
                  Neurotechnology Systems, Inc.:

              	
                [***]
                  *

              
	 	 
	
                NEUROMetrix
                  Corporation:

              	
                [***]
                  **

              

      

    

     

    *
      Agreed
      fair market value for Cyberkinetics Patent Rights, Cyberkinetics Technology
      and
      Cyberkinetics Manufacturing Know-How contributed as of the Effective Date
      pursuant to the terms of the Collaboration Agreement.  

    

    **
      Agreed
      fair market value for NEUROMetrix Patent Rights, NEUROMetrix Technology and
      NEUROMetrix Manufacturing Know-How contributed as of the Effective Date pursuant
      to the terms of the Collaboration Agreement.

     

    Percentage
      Interests

    

      
        	
                Cyberkinetics
                  Neurotechnology Systems, Inc.

              	 	 	
                50

              	
                %

              
	
                NEUROMetrix
                  Corporation

              	 	 	
                50

              	
                %

              
	 	 	 	 	 
	
                Total:

              	 	 	
                100

              	
                %

              

      

    

     

    
      
         

      

      
        20

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