Secured Note issued to Double U Master Fund L.P. in connection with May 2006



 Exhibit 4.2 
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO BRAINSTORM CELL THERAPEUTICS INC. THAT SUCH REGISTRATION IS NOT REQUIRED. 
 SECURED NOTE

 FOR VALUE RECEIVED, CELTRON INTERNATIONAL INC., (hereinafter called “Borrower”), hereby promises to pay to DOUBLE U
MASTER FUND L.P., c/o Navigator Management Ltd., Harbor House, Waterfront Drive, P.O. Box 972, Road Town, Tortola, British Virgin Islands, Fax: (284) 494-4771, (the “Holder”) or order, without demand, the sum of Five Hundred and Forty
Thousand Dollars ($540,000.00), on August 31, 2006 (the “Maturity Date”). 
 The following terms shall apply to this Note:

 ARTICLE I 
 GENERAL
PROVISIONS 
 1.1 Payment Grace Period. The Borrower shall have a three (3) business day grace period to pay any monetary
amounts due under this Note, after which grace period a default interest rate of fifteen percent (15%) per annum shall apply to the amounts owed hereunder. 
 1.2 Repayment. The Note shall be payable in full on the Maturity Date. 
 1.3 Subsequent
Financing. The Maturity of this Note shall automatically be accelerated to the Date the Borrower receives the net proceeds from the sale by Borrower of any equity or debt instruments with a gross offering amount of not less than $2,000,000
(“Subsequent Financing”). The Company undertakes to pay all amounts due on this Note out of the proceeds from and on the closing date of the Subsequent Financing. 
 ARTICLE II 
 EVENT OF DEFAULT 
 The occurrence of any of the following events of default (“Event of Default”) shall, at the option of the Holder hereof, make all sums of
principal and interest then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable, upon demand, without presentment, or grace period, all of which hereby are expressly waived, except as set forth below:

 2.1 Failure to Pay Principal or Interest. The Borrower fails to pay any installment of principal, interest or other sum due under
this Note when due and such failure continues for a period of three (3) business days after the due date. The three (3) business day period described in this Section 2.1 is the same three (3) business day period described in
Section 1.1 hereof. 







 2.2 Breach of Covenant. The Borrower breaches any material covenant or other term or condition of
this Note or this Note in any material respect and such breach, if subject to cure, continues for a period of three (3) business days after written notice to the Borrower from the Holder. 
 2.3 Breach of Representations and Warranties. Any material representation or warranty of the Borrower made herein as of the date hereof or any
statement or certificate given in writing pursuant hereto or in connection herewith shall be false or misleading in any material respect as of the date made. 
 2.4 Receiver or Trustee. The Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for Borrower for a substantial part of
Borrower’s property or business; or such receiver or trustee shall be involuntarily appointed and not dismissed within forty-five days. 
 2.5 Judgments. Any money judgment, writ or similar final process shall be entered or filed against Borrower or any of Borrower’s property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed
for a period of forty-five (45) days. 
 2.6 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or
other proceedings or relief under any bankruptcy law or any law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by or against the Borrower. 
 2.7 Cross Default. A default by the Borrower of a material term, covenant, warranty or undertaking of any other agreement to which the Borrower
and Holder are parties, or the occurrence of a material event of default under any such other agreement which is not cured after any required notice and/or cure period. 
 ARTICLE III 
 SECURITY INTEREST 
 3.1 Security Interest/Waiver of Automatic Stay. This Note is secured by a security interest granted to the Lender for the benefit of the Holder
pursuant to a Security Agreement, as delivered by Borrower to Holder. The Borrower acknowledges and agrees that should a proceeding under any bankruptcy or insolvency law be commenced by or against the Borrower, or if any of the Collateral (as
defined in the Security Agreement) should become the subject of any bankruptcy or insolvency proceeding, then the Holder should be entitled to, among other relief to which the Holder may be entitled under the Transaction Documents and any other
agreement to which the Borrower and Holder are parties (collectively, “Loan Documents”) and/or applicable law, an order from the court granting immediate relief from the automatic stay pursuant to 11 U.S.C. Section 362 to permit the
Holder to exercise all of its rights and remedies pursuant to the Loan Documents and/or applicable law. TO THE EXTENT PERMITTED BY LAW, THE BORROWER EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION 362. FURTHERMORE,
THE BORROWER EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. 
  

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 SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF
ITS RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW. The Borrower hereby consents to any motion for relief from stay that may be filed by the Holder in any bankruptcy or insolvency proceeding initiated by or against the Borrower
and, further, agrees not to file any opposition to any motion for relief from stay filed by the Holder. The Borrower represents, acknowledges and agrees that this provision is a specific and material aspect of the Loan Documents, and that the Holder
would not agree to the terms of the Loan Documents if this waiver were not a part of this Note. The Borrower further represents, acknowledges and agrees that this waiver is knowingly, intelligently and voluntarily made, that neither the Holder nor
any person acting on behalf of the Holder has made any representations to induce this waiver, that the Borrower has been represented (or has had the opportunity to he represented) in the signing of this Note and the Loan Documents and in the making
of this waiver by independent legal counsel selected by the Borrower and that the Borrower has discussed this waiver with counsel. 
 ARTICLE IV 
 MISCELLANEOUS 
 4.1 Failure or Indulgence Not Waiver. No failure or delay on the part of Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available. 
 4.2 Notices. All notices, demands, requests, consents, approvals, and other communications required or
permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by
reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any
notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or
number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The
addresses for such communications shall be: (i) if to the Borrower to: Celtron International Inc., 6779 Mesa Ridge Road, San Diego, CA 92121, Attn: John L. Phillips, President, telecopier: (858) 368-4159, with a copy by telecopier only to
Duane Morris LLP, 101 West Broadway, Suite 900, San Diego, CA 92101, Attn: James A. Mercer III, Esq., telecopier: (619) 744-2201, and (ii) if to the Holder, to the name, address and telecopy number set forth on the front page of this Note,
with a copy by telecopier only to Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176, telecopier number: (212) 697-3575. 
  

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 4.3 Amendment Provision. The term “Note” and all reference thereto, as used throughout
this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented. 
 4.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns. 
 4.5 Cost of Collection. If default is made in the payment of this Note, Borrower shall pay the Holder hereof reasonable costs of collection,
including reasonable attorneys’ fees. 
 4.6 Governing Law. This Note shall be governed by and construed in accordance with the
laws of the State of New York. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state of New
York situated in New York County. Both parties and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such courts. The prevailing party shall be entitled to recover from the other party its
reasonable attorney’s fees and costs. 
 4.7 Maximum Payments. Nothing contained herein shall be deemed to establish or require
the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in
excess of such maximum shall be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower. 
 4.8
Redemption. This Note may not be redeemed or called without the consent of the Holder. 
 IN WITNESS WHEREOF, Borrower has caused this
Note to be signed in its name by an authorized officer as of the 19 day of May, 2006. 
  

					
		 	CELTRON INTERNATIONAL, INC.
			
		 	By:	 	 /s/ John Phillips

		 	Its:	 	Chief Executive Officer
			
	WITNESS:	 		 	
			
	  
	 		 	

  

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