EXHIBIT 10.1


 





EMPLOYMENT AGREEMENT


 


This EMPLOYMENT AGREEMENT is entered
into as of January 24, 2013 by and between Brainstorm Cell Therapeutics Ltd., a company incorporated under the laws of the
State of Israel and maintaining its principal place of business at 12 Bazel St. Petach Tikva, Israel (the “Company”),
and Alon Natanson, Israeli ID 057879553, residing at 9 HaRakefet Street, Zichron Yacov 3090000, P.O.Box 4127, Israel (the
“Employee”).


 


 





		WHEREAS	The Company is engaged, inter alia, in the research, development, manufacturing and marketing
of adult stem cell therapeutics for neurological diseases; and



 


		WHEREAS	The Company desires to engage the Employee as Chief Executive
Officer (“CEO”) of the Company and of Brainstorm Cell Therapeutics Inc. (“Brainstorm Inc.”
), and the Employee desires to enter into such employment and represents that he has the requisite skill and knowledge to serve
as such; and



 


		WHEREAS	The parties desire to set forth herein the terms and
conditions of the Employee's engagement by the Company and Brainstorm Inc., as set forth below;



 


 





NOW THEREFORE, in consideration
of the mutual promises contained herein, and intending to be legally bound, the parties hereto agree as follows:


 


 





		1.	EMPLOYMENT – GENERAL 



 


		1.1.	Employment. Company hereby employs Employee and Employee hereby accepts employment
upon the terms and conditions set forth herein.



 


		1.2.	The Position. The Employee shall be employed as the CEO and in such capacity; he
shall be subject to the direction and control of and shall report to the Company’s Board of Directors.



 


		1.3.	Personal Service Contract. The Parties hereto confirm that this is a personal service
contract and that the relationship between the parties hereto shall not be subject to any general or special collective employment
agreement or any custom or practice of Company in respect of any of its other employees or contractors. Except as expressly provided
in this Agreement, Employee shall not be entitled to any payments or other benefits in respect of his employment upon the termination
of his employment with Company.



 


		1.4.	Special Degree of Personal Trust. Employee acknowledges and agrees that from the
perspective of the status, responsibility and terms of employment of Employee, he shall be considered amongst those employees whose
functions require a special degree of personal trust, and the conditions and circumstances of whose employment do not facilitate
the supervision of their work and rest hours as those expressions are defined in the Hours of Work and Rest Law, 5711-1951 and
accordingly the restrictions specified in the aforementioned Law and in the Wage Protection Law, 1958 shall not apply to his employment.
Employee shall not be entitled to demand or receive, inter alia, payment for overtime, and the amount paid to him as a Salary (as
defined below), shall also include full compensation for overtime hours.



 






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		2.	EMPLOYEE’S UNDERTAKINGS. Employee hereby undertakes
as follows:



 


		2.1.	Carry out of Instructions. To carry out all of the instructions related to his employment
in accordance with the instructions of the Company's and Brainstorm Inc’s Board of Directors.



 


		2.2.	Fidelity. To perform the duties and assignments imposed in the scope of his employment
with the Company, with devotion, honesty and fidelity and to dedicate to the performance of the said duties all his know-how, qualifications
and experience and all the time, diligence and attention required for the performance thereof efficiently, with fidelity and in
accordance with the requirements of this Agreement, and to use his best endeavors in order to consolidate Company and Brainstorm
Inc. and to advance the affairs and business of Company and Brainstorm Inc. and the realization of their respective objectives.
The parties agree that the duties and assignments of Employee’s position will require all of Employee’s work time.



 


		2.3.	Conflict of Interest. Employee declares that he is not presently involved, and he
undertakes not to become involved in the future, for so long as he is an employee of Company, in any obligations towards any third
party whatsoever which entail any form of conflict of interest with his employment with Company.



 





		3.	COMPENSATION



 


		3.1.	Salary. In consideration for Employee’s obligations under this Agreement, Company
shall pay Employee a monthly gross salary of 53,000 NIS (the “Salary”).



 


		3.2.	Payment. The Salary shall be paid to Employee by no later than the 9th
of the calendar month following the calendar month of employment to which the payment relates. As provided in Section 1.4 above,
the Salary includes remuneration for working overtime, and Employee shall not be entitled to any further remuneration or payment
whatsoever other than the Salary and/or benefits set forth herein, unless expressly specified in this Agreement. Employee acknowledges
that the Salary to which he is entitled constitutes due consideration for his working overtime. The Salary, as specified in Section
3.1 hereto, and it alone, shall constitute the sole basis for calculating any of Employee’s rights under any applicable law,
and any other benefits provided under this Agreement shall not be deemed as the Salary or any part thereof.



 


		3.3.	Statutory Deductions. Company shall make the required statutory deductions from the
Salary and from any other amount paid and/or benefits granted to Employee by Company under this Agreement, including income tax,
social security and healthcare tax, and make the appropriate payments on behalf of Employee to the Israeli Tax Authority, to the
Institute of National Insurance and any other relevant authority.



 


		3.4.	Additional Benefits. Employee shall be entitled to such additional benefits, as provided
in Exhibit A.



 


		3.5.	Expenses. The Company will reimburse Employee for any documented, out-of-pocket expenses
from time to time properly incurred by Employee in connection with his employment by Company, provided that
any expense in excess of $10,000 shall require the prior approval of the Chairman of the Board of Directors.



 


		3.6.	Sick Leave and Recuperation Pay. Employee shall be entitled to sick leave and Recuperation
Pay (דמי הבראה) as provided by law.



 


 






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		3.7.	Vacation. Employee shall be entitled to an annual vacation of 20 days per year, and
such annual vacation shall be increased by 2 days every year up to 24 days per year, and no less than the number of days required
by the Annual Vacation Law, 5711-1951 (the “Annual Vacation Law”), and in accordance with the Annual Vacation
Law, 5711-1951. Annual vacation may not be accumulated for over 2 years and therefore in the event that Employee accumulates such
days and does not make use of the same or redeem their value, the Company shall be entitled to redeem them.



 


		3.8.	Reserve Duty. Employee shall continue to receive the Salary (and Company shall continue
to make contributions to the managers insurance policy and the education fund provided for herein) during periods of military reserve
duty. Employee hereby assigns and undertakes to pay to Company any amounts received from the National Insurance Institute as compensation
for such reserve duty service.



 





		4.	TERM OF AGREEMENT



 


		4.1.	Term. This Agreement shall commence on the date hereof and shall continue to be in
full force and effect unless terminated by either party in accordance with this Agreement.



 


		4.2.	Termination. Employee and the Company shall be entitled to terminate this Agreement
by giving the other a prior written notice of 90 days; it being understood that during such period, Employee shall (subject to
the needs of the Company determined at the Company’s sole discretion) continue to perform his duties for Company, including
the training and initiation of his replacement, and, subject to the performance of such obligations, Company shall make all payments
as required hereunder. For the avoidance of doubt it is hereby clarified that in case the Employee resigns for any of the reasons
detailed in the Severance Pay Law, 5723-1963 and the regulations promulgated there under, as resignations which are deemed to be
dismissals, Employee shall be deemed to have been dismissed by the Company not for "cause".



 


		4.3.	Termination For Cause. Notwithstanding the foregoing provisions of this Section 4,
Company shall be entitled to terminate this Agreement forthwith, and without prior notice, and Employee shall not be entitled to
any severance pay or other compensation whatsoever, in any circumstance under which the Employee would not by law and if so ordered
by court of law be entitled to such payment. Furthermore, in any of the following events (together with the circumstances described
in the previous sentence, “Cause”), if following such event the Employee is nonetheless entitled by law to severance
pay, the provisions of Section 4.3 will not apply, and the Company will be entitled to terminate this Agreement with the minimum
notice period provided by law: (i) indictment for any felony involving moral turpitude or affecting the Company or Brainstorm
Inc.; (ii) any refusal to carry out a directive of the Board of Directors of the Company or Brainstorm Inc., or disregard
of a rule or policy of the Company known to the Employee or contained in a policy and procedure manual provided to the Employee,
which involves the business of the Company and which was capable of being lawfully performed; (iii) embezzlement of funds
of the Company or Brainstorm Inc. or other breach of fiduciary duty towards the Company or Brainstorm Inc.; (iv) ownership,
direct or indirect, of an interest in a person or entity in competition with the Company or Brainstorm Inc., without the prior
written permission of the Board of Directors of the Company and Brainstorm Inc.; and (v) disposition of Company’s or
Brainstorm Inc.'s confidential information contrary to the provisions of the law or this Agreement; (vi) willful disloyalty and/or
deliberate dishonesty; (vii) material breach of any of the terms of this Agreement.



 


 






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		4.4.	Should the termination of the employment of the Employee be made by the Company not for "cause",
the Employee shall be entitled to continue to receive the Salary including all social benefits, the car and the cell phone following
the Notice Period equal to 1 month multiplied by the number of full years of employment by the Company but in any event up to 3
months.



 


		5.	PROPRIETARY INFORMATION



 


		5.1.	Proprietary Information. The Employee acknowledges
and agrees that the business of the Company and Brainstorm Inc. and their respective affiliates is highly competitive and that
in the course of his employment with the Company and Brainstorm Inc., he will have access to confidential and proprietary information
concerning the business and financial activities of the Company, Brainstorm Inc. and their respective affiliates and information
and technology regarding the Company, Brainstorm Inc. and their respective affiliates’ product research and development,
including, without limitation, the Company, Brainstorm Inc.’s and their respective affiliates’ patents, trade marks,
trade secrets, patent, copyright, mask work, design, and other intellectual property rights throughout the world, banking information,
investments, investors, properties, employees, marketing plans, customers, trade secrets, and test results, processes, data and
know-how, improvements, inventions, techniques and products (actual or planned). Such information, whether documentary, written,
oral, computer generated, or otherwise shall be deemed to be and referred to as “Proprietary Information”.



 


Proprietary Information shall
be deemed to include any and all preparatory information disclosed by or on behalf of the Company or Brainstorm Inc. and irrespective
of form, but excluding information that (i) was known to the Employee prior to his association with the Company and can be so proven
by documentary evidence, (ii) shall have appeared in any printed publication or patent but only to the extent appeared therein
or shall have become a part of the public knowledge, except as a result of a breach of this Agreement or any other obligation to
the Company or Brainstorm Inc. by the Employee or any other employee or third party or the breach of the undertakings of the Company
or Brainstorm Inc. towards any third party or (iii) is legally required by any administrative or governmental agency to be disclosed,
provided that any such disclosure shall be made only to the extent required to fulfill Employee’s legal obligations, and
provided further that the Employee immediately notifies the Company or Brainstorm Inc. of such obligation or requirement, prior
to making any disclosure, to enable the Company or Brainstorm Inc. to contest the requirement thereof.


 


		5.2.	Nondisclosure. Employee agrees and declares
that all Proprietary Information, patents and other rights in connection therewith shall be the sole property of the Company and/or
Brainstorm Inc. and their respective assignees at all times. Both during his engagement by the Company and/or Brainstorm Inc.
and for seven (7) years after its termination Employee will keep in confidence and trust all Proprietary Information and the Employee
will not use or disclose any Proprietary Information or anything relating to it without the written consent of the Company or
Brainstorm Inc., except as may be necessary in the ordinary course of performing the Employee’s duties hereunder and in
the best interests of the Company and Brainstorm Inc.



 


		5.3.	Return of Materials. Employee agrees that on or before the termination of his employment
with the Company or Brainstorm Inc. he will return to the Company and Brainstorm Inc. all Company and Brainstorm Inc. property
and materials, including but not limited to, (if applicable) personal computers, laptops, fax machines, scanners, copiers, cellular
phones, credit cards and telephone charge cards, manuals, building keys and passes, courtesy parking passes, diskettes, intangible
information stored on diskettes, software programs and data compiled with the use of those programs, software passwords or codes,
tangible copies of trade secrets and confidential information, sales forecasts, names and addresses of Company and Brainstorm Inc.
customers and potential customers, customer lists, customer contacts, sales information, sales forecasts, memoranda, sales brochures,
business or marketing plans, reports, projections, and any and all other information or property previously or currently held or
used by Employee that is or was related to his employment with the Company or Brainstorm Inc. (“Company Property”).
Employee agrees that in the event that he discovers any other Company Property in his possession after the termination of
his employment with the Company he will immediately return such materials to the Company and Brainstorm Inc.



 






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		5.4.	Third Party Information. Employee recognizes
that the Company and Brainstorm Inc. received and will receive confidential or proprietary information from third parties subject
to a duty on the Company’s or Brainstorm Inc.’s part to maintain the confidentiality of such information and to use
it only for certain limited purposes at all times. Both during his employment and after its termination, the Employee undertakes
to keep and hold all such information in strict confidence and trust. He will not disclose any of such information without the
prior written consent of the Company or Brainstorm Inc., except as may be necessary to perform his duties as an employee of the
Company or Brainstorm Inc. and consistent with the Company’s or Brainstorm Inc.’s agreement with such third party.
Upon termination of his employment with the Company or Brainstorm Inc., Employee shall act with respect to such information as
set forth in Section 5.3, mutatis mutandis.



 


		5.5.	Survival. The Employee’s undertakings
in this Section 5 shall remain in full force and effect after termination of this Agreement.



 


		6.	ACKNOWLEDGEMENT OF OWNERSHIP; ASSIGNMENT OF INVENTIONS.



 


		6.1.	Disclosure of Inventions. I will promptly
disclose in writing to the Company all Inventions, made or discovered or conceived or reduced to practice or developed by me,
either alone or jointly with others, during the term of my employment. I will also disclose to the Company all Inventions made,
discovered, conceived, reduced to practice, or developed by me within three (3) months after the termination of my employment
with the Company which resulted, in whole or in part, from my prior employment by the Company. Such disclosures shall be received
by the Company in confidence, to the extent such Inventions are not assigned to the Company pursuant to this Agreement.



 


		6.2.	Assignment of Inventions. Subject to Section 6.4, I hereby assign and agree to assign
in the future (when any such Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible medium,
as applicable) to the Company all my right, title and interest in and to any and all Inventions whether or not patentable or registrable
under copyright or other statutes, made or conceived or reduced to practice or learned by me, either alone or jointly with others,
during the period of my employment with the Company. Inventions assigned to the Company, or to a third party as directed by the
Company pursuant to this Section 2, are hereinafter referred to as “Company Inventions”.



 






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		6.3.	Nonassignable Inventions. Notwithstanding, this Agreement will not be deemed to require
assignment of any invention which was developed entirely on my own time without using the Company's equipment, supplies, facilities,
or Proprietary Information and which is not related to the Company's actual business, research or development.



 


		6.4.	Government or Third Party. I also agree to assign all my right, title and interest
in and to any particular Company Invention to any third party, including without limitation government agency, as directed by the
Company.



 


		6.5.	Works Made for Hire. I acknowledge that all original works of authorship which are
made by me (solely or jointly with others) within the scope of my employment and which are protectable by copyright are the sole
property of the Company pursuant to applicable copyright law.



 


		6.6.	Assignment or Waiver of Moral Rights. Any assignment of copyright hereunder (and
any ownership of a copyright as a work made for hire) includes all rights of paternity, integrity, disclosure and withdrawal and
any other rights that may be known as or referred to as “moral rights” (collectively “Moral Rights”). To
the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in
the various countries where Moral Rights exist, I hereby waive such Moral Rights and consent to any action of the Company that
would violate such Moral Rights in the absence of such consent.



 


		6.7.	Enforcement of Proprietary Rights. I will assist the Company in every proper way
to obtain, and from time to time enforce, any Proprietary Rights relating to Company Inventions in any and all countries. To that
end, I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the
Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary
Rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the
Company or its designee. My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions
in any and all countries shall continue beyond the termination of my employment, but the Company shall compensate me at a reasonable
rate after my termination for the time actually spent by me at the Company's request on such assistance.



 


		6.8.	Service Inventions. For the removal of any doubt, all the above will also apply to
any “Service Inventions” as defined in the Israeli Patent Law, 1967 (the “Patent Law”), it being clarified
that under no circumstances will I be deemed to have any proprietary right in any such Service Invention, notwithstanding the provision
or non-provision of any notice of an invention and/or company response to any such notice, under Section 132(b) of the Patent Law.
This agreement is expressly intended to be an agreement with regard to the terms and conditions of consideration for Service Inventions
in accordance with Section 134 of the Patent Law.



 


		6.9.	Royalties. I acknowledge and agree that I will not be entitled to royalties, consideration
or other payments with regard to any Prior Inventions, Company Inventions, Service Inventions or any of the intellectual property
rights set forth above, including any commercialization of such Prior Inventions, Company Inventions, Service Inventions or other
intellectual property rights, and do hereby explicitly, irrevocably and unconditionally waive the right (if exists) to receive
any such additional royalties, consideration or other payments. Without derogating from the aforesaid, it is hereby clarified that
the level of my compensation and consideration has been established based upon the aforementioned waiver of rights to receive any
such additional royalties, consideration or other payments, and that my compensation as an employee of the Company includes full
and final compensation and consideration to which I may be entitled under law with respect to any Prior Inventions, Company Inventions,
Service Inventions or any of the intellectual property rights set forth above.



 






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		6.10.	Records. I agree to keep and maintain adequate and current records (in the form of
notes, sketches, drawings and in any other form that may be required by the Company) of all of the Company's Proprietary Information
developed by me and all of the Company's Inventions made by me during the period of my employment at the Company, which records
shall be available to and remain the sole property of the Company at all times.



 


		7.	NON - COMPETITION 



 


		7.1.	Non-Competition. The Employee agrees and undertakes that he will not, so long as
he is employed by the Company or Brainstorm Inc. and for a period of 12 months following termination of his employment for whatever
reason, directly or indirectly as owner, partner, joint venturer, stockholder, employee, broker, agent, principal, corporate officer,
director, licensor or in any other capacity whatsoever, engage in, become financially interested in, be employed by, or have any
connection with any business or venture that is engaged in any activities involving either (i) products which compete, directly
or indirectly, with the business of the Company or its subsidiaries and/or affiliates, products produced or proposed to be produced
by the Company or its subsidiaries or affiliates or (ii) information, processes, technology or equipment that competes with information,
processes, technology or equipment in which the Company or its subsidiaries or affiliates has a proprietary interest, or that competes
with products or services offered by the Company, its affiliates and/or subsidiaries; provided, however,
that the Employee may own securities of any corporation which is engaged in such business and is publicly owned and traded but
in an amount not exceeding at any one time, one percent (1%) of any class of stock or securities of such company, so long as Employee
has no active role in the publicly owned and traded company as director, employee, consultant or otherwise.



 


		7.2.	Non-Solicitation. The Employee agrees and undertakes that during the term of his
employment with the Company or Brainstorm Inc. and for a period of eighteen (18) months thereafter, the Employee will not directly
or indirectly including personally or in any business in which it is an officer, director, joint venturer, partner or shareholder,
or otherwise:



 


		(i)	Solicit, entice, canvass or approach or endeavor to solicit, canvass or approach any person who,
to his knowledge, was provided with services by the Company or Brainstorm Inc. or their affiliates or subsidiaries or provided
services to the Company or Brainstorm Inc. or their affiliates or subsidiaries as a vendor or supplier at any time during the eighteen
(18) months immediately prior to the termination of the Employee’s employment (i) for the purpose of offering services or
products which directly compete with the business of the Company or Brainstorm Inc. (or their subsidiaries or affiliates) or their
Proprietary Information, (ii) for the purpose of interfering with the Company’s or Brainstorm Inc.'s relationship with such
entity or person, or (iii) to cease doing business with Company or Brainstorm Inc. (or their subsidiaries or affiliates), reduce
its relationship with Company or Brainstorm Inc. (or their subsidiaries or affiliates) or refrain from establishing or expanding
a relationship with Company or Brainstorm Inc. (or their subsidiaries or affiliates) or in any other way interfere with the Company’s
or Brainstorm Inc.'s (or their subsidiaries’ or affiliates') relationships with its customers, vendors or suppliers; or



		(ii)	Employ, solicit or entice away or endeavor to solicit or entice away from the Company or its parent
or subsidiaries any person employed by the Company or its parent or subsidiaries any time during the eighteen (18) months immediately
prior to the termination of the Employee’s employment with a view to inducing that person to leave such employment and to
act for another employer in the same or a similar capacity.



	 	 	 
		7.3.	Severability. If any one or more of the terms contained in this Section 7 shall,
for any reason be held to be excessively broad with regard to time, geographic scope or activity, the term shall be construed in
a manner to enable it to be enforced to the extent compatible with applicable law.



 


 






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		8.	MISCELLANEOUS



 


		8.1.	Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Israel without reference to conflicts of law principles and sole jurisdiction shall be
granted to the competent courts in Tel-Aviv, Israel.



 


		8.2.	Assignments. Employee may not assign or transfer any right, claim or obligation provided
herein. The Company may assign or transfer any right, claim or obligation provided herein, provided that any right of the Employee
under this Agreement shall not be diminished.



 


		8.3.	Notices. The addresses of the parties for the purposes of this Agreement shall be
as specified in the preamble hereto and/or any other address as notified by either party to the other from time to time. All notices
and other communications required or permitted to be given under this Agreement shall be in writing and shall be sent by the notifying
party to the other party via fax, e-mail, registered mail or personal delivery service. Notices shall be deemed effective 72 business
hours after sending same by registered mail, postage prepaid, to the other party at the address noted above, 24 business hours
after their authenticated transmission via fax, or e-mail and immediately upon their personal delivery by courier or other personal
delivery service.



 


		8.4.	Construction. Words in the masculine gender shall include the feminine and vice versa.



 


		8.5.	Entire Agreement. This Agreement constitutes an integrated,
written contract, expressing the sole and entire agreement between the parties with respect to the subject matter hereof and supersedes
any and all other agreements or understandings, whether oral or written.



 


		8.6.	Amendments. This Agreement may not be altered, modified or amended except by a written
instrument signed by the parties.



 


 



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IN WITNESS WHEREOF the parties
have duly executed this Agreement as of the date first above written:


 





	 	 	/s/ Alon Natanson
	BRAINSTORM CELL THERAPEUTICS LTD.	 	Alon Natanson
	By: /s/ Chaim Lebovits	 	 
	Name:	 	 
	Title:	 	 


 


 


 


 




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Exhibit A


 


		1.	Pension Insurance.
                                                                               The Company shall contribute funds on behalf of
                                                                               the Employee to a Managers Insurance Fund or a
                                                                               Pension Fund in the name of the Employee ("Fund")
                                                                               and disability insurance for loss of ability to
                                                                               work ("Disability Insurance") as specified below.



 


		1.1	The Company shall allocate to the Fund five percent (5%)
in case of a Managers Insurance or six percent (6%) in case of a Pension Fund, of each monthly Salary for pension compensation
and eight and a third percent (8.33%) of each monthly Salary to severance compensation. Moreover, only in case the Employee will
choose a Managers Insurance (and not a Pension Fund) the Company will allocate for the purpose of the Disability Insurance a maximum
premium of 2.5% of Employee's monthly Salary, as provided by the general approval of the Minister of Labor and Social Welfare
regarding payments by employers to a pension fund and insurance fund in lieu of severance pay. The Company shall deduct from Employee's
monthly Salary an aggregated amount equal to five percent (5%) in case of a Managers Insurance or five and a half percent (5.5%)
in case of a Pension Fund, of Employee's monthly Salary for the Fund.



 


		1.2	The Employee hereby agrees and acknowledges that all
of the payments that the Company shall make to the abovementioned manager's insurance policy shall be instead of any severance
pay to which the Employee or Employee's successors shall be entitled to receive from the Company with respect to the salary from
which these payments were made and the period during which they were made, in accordance with Section 14 of the Severance Pay
Law 5723-1963 (the "Law"). The parties hereby adopt the General Approval of the Minister of Labor and Welfare, published in the
Official Publications Gazette No. 4659 on June 30, 1998, attached hereto as Exhibit B. The Company hereby waives in advance any
claim it has or may have to be refunded any of the payments made to the manager's insurance policy, unless (1) the Employee's
right to severance pay is invalidated by a court ruling on the basis of Sections 16 or 17 of the Law (and in such case only to
the extent it is invalidated), or (2) the Employee withdrew funds from the manager's insurance policy for reasons other than an
"Entitling Event". An "Entitling Event" means death, disability or retirement at the age of 60 or more.



 


		2.	Education
                                                                               Fund. The Company shall pay a sum as high
                                                                               as the recognized deductible cap by the tax authorities,
                                                                               but in any event no more than 7.5% of the Salary
                                                                               and shall deduct 2.5% from the Salary to be paid
                                                                               on behalf of Employee toward an education fund.
                                                                               Use of these funds shall be in accordance with
                                                                               the by-laws of the fund. The Employee hereby grants
                                                                               his consent to such a deduction provided in this
                                                                               section herein.



 


		3.	Unless the Company terminates this Agreement for "Cause"
(as defined in Section 4.4 of this Agreement), the amounts deposited in the Manager's Insurance and Education Fund pursuant to
Sections 1 and 2 above shall be automatically released to the Employee upon termination of this Agreement, provided that Employee
fulfills his obligations pursuant to Section 4.2 and 4.3 of the Agreement by law (training and initiation of his replacement etc.).



 


		4.	Options.
                                                                               On the first day of employment with the Company
                                                                               (the "Grant Date"), the Employee shall be granted
                                                                               a stock option under BrainStorm Inc.'s Amended
                                                                               and Restated 2004 Global Share Option Plan (the
                                                                               "Plan") for the purchase of up to 4,000,000 shares
                                                                               of Common Stock of BrainStorm Inc. (subject to
                                                                               adjustment as shall be described in a separate
                                                                               stock option agreement and pursuant to the Plan),
                                                                               which stock option shall vest and become exercisable
                                                                               as to 33 1/3% of the number of shares subject to
                                                                               the option on the first anniversary of the Grant
                                                                               Date, and the remainder of the shares subject to
                                                                               the option to vest and become exercisable in 36
                                                                               consecutive, equal monthly installments thereafter.
                                                                               In the event that after the date hereof but prior
                                                                               to the first anniversary of the Grant Date (and
                                                                               provided that the Employee is then actively employed
                                                                               by the Company) (i) the Company or BrainStorm Inc.
                                                                               shall have raised U.S.$10 million or more in one
                                                                               transaction, and (ii) the shares of Brainstorm
                                                                               Inc shall have been admitted for trading on NASDAQ,
                                                                               and (iii) the Company or BrainStorm Inc. shall
                                                                               have been granted the approval of the FDA to conduct
                                                                               clinical trials in the United States, on the first
                                                                               anniversary of the Grant Date the Employee shall
                                                                               be granted an additional stock option for the purchase
                                                                               of an additional 2,000,000 shares of Common Stock
                                                                               of BrainStorm Inc. at an exercise price equal to
                                                                               the closing price on the date of grant and such
                                                                               option to vest as to 33 1/3% of the number of shares
                                                                               subject to the option on the first anniversary
                                                                               of the Grant Date, and the remainder of the shares
                                                                               subject to the option to vest and become exercisable
                                                                               in 36 consecutive, equal monthly installments thereafter(the
                                                                               "Additional Options").



 


		4.1	Exercise Price:
                                                                                The exercise price of the stock option granted
                                                                                on the date hereof and the Additional Options
                                                                                shall be$0.29 per share.



 


		4.2	Exercise Period:
                                                                                10 years from grant date (with respect to the
                                                                                stock option granted on the Grant Date and with
                                                                                respect to the Additional Options), provided that
                                                                                the Employee continues to be employed by the Company.
                                                                                Upon termination of the Employment for any reason,
                                                                                the Employee shall be entitled to exercise the
                                                                                stock options to the extent then vested for a
                                                                                period of 90 days.



 


		4.3	In the event of a merger or consolidation of the Company
with or into another corporation resulting in such other corporation being the surviving entity the Options (whether vested or
not) shall be assumed or an equivalent Award or right substituted, by the successor corporation or an affiliate of the successor
corporation, as shall be determined by such entity, subject to the terms hereof. In the event that the successor corporation or
a parent or subsidiary of the successor corporation does not provide for such an assumption or substitution of Options, all Options
shall become exercisable in full on a date no later than ten (10) days prior to the date of consummation of such transaction,
provided that such replacement shall be contingent upon the actual consummation of the transaction.



 


		5.	Cellular
                                                                               Phone. The Company shall provide the Employee,
                                                                               at the Company's sole cost and expense, a cellular
                                                                               phone, according to company practice. All taxes
                                                                               with respect to the cellular phone shall be borne
                                                                               by the Company.



 


		6.	Company car.
                                                                               The Company shall purchase or lease for the Employee
                                                                               an automatic car (Grade 5) to be used according
                                                                               to Company's policy. All taxes with respect to
                                                                               the purchase or lease of the car shall be borne
                                                                               by the Company.



 


		7.	Yearly review.
                                                                               Bonuses, milestones and salary shall be considered
                                                                               by the Board of Directors of Brainstorm Inc. annually,
                                                                               based on the Company meeting its objectives during
                                                                               such year and the contribution of the Employee.






 


 





	______________________________________	 	_____________________
	BRAINSTORM CELL THERAPEUTICS LTD.	 	Alon Natanson
	By: ___________________________	 	 
	Name:	 	 
	Title:	 	 
	Date : January __ 2013	 	Date : January __ 2013


 


 




    	-10 -



    	 



    

 


Exhibit
B


 


General Order and Confirmation Regarding
Payments of Employers to Pension Funds and Insurance Funds instead of Severance Pay


 


אישור
כללי (נוסח משולב) בדבר תשלומי
מעבידים לקרן פנסיה ולקופת
ביטוח במקום פיצויי פיטורים
לפי חוק פיצויי פיטורים,
התשכ"ג - 1963





 


בתוקף
סמכותי לפי סעיף 14 לחוק פיצויי
פיטורים, התשכ"ג - 1963 (להלן
- החוק), אני מאשר כי תשלומים
ששילם מעביד החל ביום פרסומו
של אישור זה, בעד עובדו לפנסיה
מקיפה בקופת גמל לקיצבה
שאינה קופת ביטוח כמשמעותה
בתקנות מס הכנסה (כללים
לאישור ולניהול קופות
גמל), התשכ"ד – 1964 (להלן - קרן
פנסיה), או לביטוח מנהלים
הכולל אפשרות לקיצבה או
שילוב של תשלומים לתכנית
קיצבה ולתוכנית שאינה
לקיצבה בקופת ביטוח כאמור
(להלן - קופת ביטוח), לרבות
תשלומים ששילם תוך שילוב
של תשלומים לקרן פנסיה
ולקופת ביטוח, בין אם יש
בקופת הביטוח תכנית לקיצבה
ובין אם לאו (להלן - תשלומי
המעביד), יבואו במקום פיצויי
הפיטורים המגיעים לעובד
האמור בגין השכר שממנו
שולמו התשלומים האמורים
ולתקופה ששולמו (להלן - השכר
המופטר), ובלבד שנתקיימו
כל אלה:


			תשלומי המעביד
-



(א)לקרן
פנסיה אינם פחותים מ-% 1/3 14 מן
השכר המופטר או 12% מן השכר
המופטר אם משלם המעביד
בעד עובדו בנוסף לכך גם
תשלומים להשלמת פיצויי
פיטורים לקופת גמל לפיצויים
או לקופת ביטוח על שם העובד
בשיעור של % 1/3 2 מן השכר המופטר.
לא שילם המעביד בנוסף ל-12%
גם % 1/3 2 כאמור, יבואו תשלומיו
במקום 72% מפיצויי הפיטורים
של העובד, בלבד;


 (ב)לקופת
ביטוח אינם פחותים מאחד
מאלה:


%
1/3 13 מן השכר המופטר, אם משלם
המעביד בעד עובדו בנוסף
לכך גם תשלומים להבטחת
הכנסה חודשית במקרה אבדן
כושר עבודה, בתכנית שאישר
הממונה על שוק ההון ביטוח
וחסכון במשרד האוצר, בשיעור
הדרוש להבטחת 75% מן השכר
המופטר לפחות או בשיעור
של % 1⁄2 2 מן השכר המופטר, לפי
הנמוך מביניהם (להלן - תשלום
לביטוח אבדן כושר עבודה);


11%
מן השכר המופטר, אם שילם
המעביד בנוסף גם תשלום
לביטוח אבדן כושר עבודה,
ובמקרה זה יבואו תשלומי
המעביד במקום 72% מפיצויי
הפיטורים של העובד, בלבד;
שילם המעביד בנוסף לאלה
גם תשלומים להשלמת פיצויי
פיטורים לקופת גמל לפיצויים
או לקופת ביטוח על שם העובד
בשיעור של % 1/3 2 מן השכר המופטר,
יבואו תשלומי המעביד במקום
100% פיצויי הפיטורים של העובד.


 (2)לא
יאוחר משלושה חודשים מתחילת
ביצוע תשלומי המעביד נערך
הסכם בכתב בין המעביד לבין
העובד ובו:


(א)הסכמת
העובד להסדר לפי אישור
זה בנוסח המפרט את תשלומי
המעביד ואת קרן הפנסיה
וקופת הביטוח, לפי העניין;
בהסכם האמור ייכלל גם נוסחו
של אישור זה;


(ב)ויתור
המעביד מראש על כל זכות
שיכולה להיות לו להחזר
כספים מתוך תשלומיו, אלא
אם כן נשללה זכות העובד
לפיצויי פיטורים בפסק
דין מכח סעיפים 16 או 17 לחוק
ובמידה שנשללה או שהעובד
משך כספים מקרן הפנסיה
או מקופת הביטוח שלא בשל
אירוע מזכה; לענין זה, "אירוע
מזכה" - מות, נכות או פרישה
בגיל ששים או יותר.


(ג)אין
באישור זה כדי לגרוע מזכותו
של עובד לפיצויי פיטורים
לפי החוק, הסכם קיבוצי, צו
הרחבה או חוזה עבודה, בגין
שכר שמעבר לשכר המופטר.


 


 אליהו
ישי


שר
העבודה והרווחה


 







 


	______________________________________	 	_____________________
	BRAINSTORM CELL THERAPEUTICS LTD.	 	Alon Natanson
	By: ___________________________	 	 
	Name:	 	 
	Title:	 	 
	Date : January __ 2013	 	Date : January __ 2013


 


 




 






    	-11 -