Exhibit 10.2


 





LEAK-OUT AGREEMENT


 


June __, 2018


 


This agreement (the
“Leak-Out Agreement”) is being delivered to you in connection with an understanding by and among Brainstorm
Cell Therapeutics Inc., a Delaware corporation (the “Company”), and the person or persons named on the signature
pages hereto (collectively, the “Holder”).


 


Reference is hereby
made to (a) the Warrant Exercise Agreement, dated on or about the date hereof, by and among the Company and the certain Holders
signatory thereto (the “Warrant Exercise Agreement”), pursuant to which the Holder are acquiring (i) shares
of Common Stock via exercise (“Shares”) and (ii) Warrants to purchase Common Stock (collectively, the “Holder
Warrants” and together with the Shares and Preferred Stock, the “Securities”). Capitalized terms not
defined herein shall have the meaning as set forth in the Warrant Exercise Agreement.


 


The Holder agrees solely
with the Company that from the date that both the undersigned executes the Warrant Exercise Agreement and the Company or its agent
has notified the Holder that each other Holder under the Warrant Exercise Agreement executes an agreement (collectively, the “Other
Leak-Out Agreements”) regarding such Holder’s trading with terms that are no less restrictive than the terms contained
herein (such date, the “Effective Date”) and ending at 4:00 pm (New York City time) on the date that is 90 days
following the date of the Warrant Exercise Agreement (such period, the “Restricted Period”), neither the Holder,
nor any Affiliate of such Holder which (x) had or has knowledge of the transactions contemplated by the Warrant Exercise Agreement,
(y) has or shares discretion relating to such Holder’s investments or trading or information concerning such Holder’s
investments, including in respect of the Securities, or (z) is subject to such Holder’s review or input concerning such Affiliate’s
investments or trading (together, the “Holder’s Trading Affiliates”), collectively, shall sell dispose
or otherwise transfer, directly or indirectly, (including, without limitation, any sales, short sales, swaps or any derivative
transactions that would be equivalent to any sales or short positions) on any Trading Day during the Restricted Period (any such
date, a “Date of Determination”), shares of Common Stock, or shares of Common Stock underlying any Common Stock
Equivalents, held by the Holder on the date hereof or otherwise acquired by the Holder following the Effective Date, including
the Shares, Conversion Shares and the Warrant Shares issuable upon exercise of the Holder Warrants (collectively, the “Restricted
Securities”), in an amount more than __%1 of the trading volume of Common Stock as reported by Bloomberg,
LP for the applicable Date of Determination.


 


Notwithstanding anything
herein to the contrary, during the Restricted Period, the Holder may, directly or indirectly, sell or transfer all, or any part,
of the Shares (the “Restricted Securities”) to any Person (an “Assignee”) in a transaction
which does not need to be reported on the Nasdaq consolidated tape, without complying with (or otherwise limited by) the restrictions
set forth in this Leak-Out Agreement; provided, that as a condition to any such sale or transfer an authorized signatory of the
Company and such Assignee duly execute and deliver a leak-out agreement in the form of this Leak-Out Agreement (an “Assignee
Agreement”, and each such transfer a “Permitted Transfer”) and, subsequent to a Permitted Transfer,
sales of the Holder and the Holder’s Trading Affiliates and all Assignees (other than any such sales that constitute Permitted
Transfers) shall be aggregated for all purposes of this Leak-Out Agreement and all Assignee Agreements.


 





 



1 Pro rata
portion of 30% among investors executing Leak-Out Agreements, based on Subscription Amount.


 






     


     


    

 


Any notices, consents,
waivers or other communications required or permitted to be given under the terms of this Leak-Out Agreement must be in writing
and shall be given in accordance with the terms of the Warrant Exercise Agreement.


 


This Leak-Out Agreement
constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations,
letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.


 


This Leak-Out Agreement
may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such
counterparts shall constitute one and the same instrument. This Leak-Out Agreement may be executed and accepted by facsimile or
PDF signature and any such signature shall be of the same force and effect as an original signature.


 


The terms of this Leak-Out
Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and
assigns.


 


This Leak-Out Agreement
may not be amended or modified except in writing signed by each of the parties hereto.


 


All questions concerning
the construction, validity, enforcement and interpretation of this Leak-Out Agreement shall be governed by the Warrant Exercise
Agreement.


 


Each party hereto acknowledges
that, in view of the uniqueness of the transactions contemplated by this Leak-Out Agreement, the other party or parties hereto
will not have an adequate remedy at law for money damages in the event that this Leak-Out Agreement has not been performed in accordance
with its terms, and therefore agrees that such other party or parties shall be entitled to seek specific enforcement of the terms
hereof in addition to any other remedy it may seek, at law or in equity.


 


The obligations of
the Holder under this Leak-Out Agreement are several and not joint with the obligations of any other holder of any of the Securities
issued under the Warrant Exercise Agreement (each, an “Other Holder”) under any other agreement, and the Holder
shall not be responsible in any way for the performance of the obligations of any Other Holder under any such other agreement.
Nothing contained herein or in this Leak-Out Agreement, and no action taken by the Holder pursuant hereto, shall be deemed to constitute
the Holder and Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Holder and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions
contemplated by this Leak-Out Agreement and the Company acknowledges that the Holder and the Other Holders are not acting in concert
or as a group with respect to such obligations or the transactions contemplated by this Leak-Out Agreement or any other agreement.
The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated
hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights,
including, without limitation, the rights arising out of this Leak-Out Agreement, and it shall not be necessary for any Other Holder
to be joined as an additional party in any proceeding for such purpose.


 






     


     


    

 


The Company hereby
represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that it will enforce the
provisions of each Other Leak-Out Agreement in accordance with its terms. If any party to any Other Leak-Out Agreement breaches
any provision of such Other Leak-Out Agreement, the Company shall promptly use its best efforts to seek specific performance of
the terms of such Other Leak-Out Agreement.


 


The Company hereby
represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered
to any Other Holder with respect to any restrictions on the sale of Securities substantially in the form of this Leak-Out Agreement
(or any amendment, modification, waiver or release thereof) (each a “Settlement Document”), is or will be more
favorable to such Other Holder than those of the Holder and this Leak-Out Agreement. If, and whenever on or after the date hereof,
the Company enters into a Settlement Document, then (i) the Company shall provide notice thereof to the Holder promptly following
the occurrence thereof and (ii) the terms and conditions of this Leak-Out Agreement shall be, without any further action by the
Holder or the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder
shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document,
provided that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended
or modified term or condition, in which event the term or condition contained in this Leak-Out Agreement shall apply to the Holder
as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with
respect to the Holder. The provisions of this paragraph shall apply similarly and equally to each Settlement Document.


 


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left blank]


 




     


     


    

 


[Signature Page to Leak-out Agreement]


 





	 	Sincerely,	 
	 	 	 
	 	BRAINSTORM CELL THERAPEUTICS INC.
	 	 	 
	 	By:	 	 
	 	 	Name: Chaim Lebovits
	 	 	Title: President and Chief Executive Officer







 


Agreed to and Acknowledged:


 


“HOLDER”


 


_____________________________ 


 


 


By: _________________________


Name:


Title: