Notice of Termination of Common Stock Purchase Agreement between NeoStem, Inc. and Commerce Court Small Cap Value Fund, Ltd.

Summary

NeoStem, Inc. has formally notified Commerce Court Small Cap Value Fund, Ltd. that it is terminating their Common Stock Purchase Agreement, originally dated May 19, 2010. The termination will take effect on October 3, 2011. The letter serves as the required written notice under the agreement and indicates that NeoStem is open to future business opportunities with the other party.

EX-10.38 2 v304169_ex10-38.htm EXHIBIT 10.38

September 28, 2011

VIA FACSIMILE AND FEDEX OVERNIGHT

Commerce Court Small Cap Value Fund, Ltd.

Fiduciary Services (BVI) Limited

Qwomar Complex, 4^th Floor

P.O. Box 3170

Road Town, Tortola

British Virgin Islands

Attn: Peter W. Poole

Tel: (284 ###-###-####

Fax: (284 ###-###-####

With a copy to:

Greenberg Traurig, LLP

The MetLife Building

200 Park Avenue

New York, NY 10166

Attn: Anthony J. Marsico, Esq.

Tel: (212) 801-9200

Fax: (212) 801-6400

Re:

Common Stock Purchase Agreement, dated as of May 19, 2010, by and between NeoStem, Inc. and Commerce Court Small Cap Value Fund, Ltd. (the "Purchase Agreement")

Ladies and Gentlemen:

Pursuant to Section 7.1 of the Purchase Agreement, this letter constitutes formal written notice of termination of the Purchase Agreement, which termination shall be effective October 3, 2011.

We remain open to future endeavors on mutually acceptable terms.

	Very truly yours,

	NEOSTEM, INC.

	By:	/s/ Robin L. Smith
		Name: Robin L. Smith, M.D.
		Title: Chief Executive Officer

420 Lexington Avenue | Suite 450 | NYC | 10170 | Phone: (212) 584-4180 | Fax: (646) 514-7787

www.neostem.com