STOCK
OPTION AGREEMENT


 


THIS
AGREEMENT made and entered into effective as of September 17, 2018, by and between BioTime, Inc., a California corporation (the
“Company”), and Brian M. Culley, an employee (the “Employee”) of the Company.


 


W 
I  T  N  E  S  S  E  T  H


 


WHEREAS,
the Company has adopted the BioTime, Inc. 2012 Equity Incentive Plan (the “Plan”), administered by the Company’s
Board of Directors (the “Board”) or, in the discretion of the Board, by a committee (the “Committee”),
providing for the granting to its employees or other individuals, stock options to purchase the Company’s common shares,
no par value;


 


WHEREAS,
the company intends to grant options to the Employee as a material inducement to the Employee being hired by the Company, pursuant
to Rule 303A.08 of the NYSE Listed Company Manual (the “Inducement Stock Options”);


 


WHEREAS,
the Inducement Stock Options are intended to be nonqualified stock options and are not intended to be treated as incentive stock
options within the meaning of Selection 422(b) of the Code;


 


WHEREAS,
the Company intends that the Inducement Stock Options will be granted outside of the Plan and will not reduce the share reserve
of the Plan, but the Inducement Stock Options will otherwise be subject to the terms of the Plan as if they had been granted under
the Plan; and


 


WHEREAS,
the Employee is an officer who is in a position to make an important contribution to the long-term performance of the Company.


 


NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth and other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:


 


1.
Grant. The Company hereby grants to the Employee Inducement Stock Options to purchase 1,500,000 common shares, no par value
(the “Shares”), at the price set forth in Section 2, on the terms and conditions hereinafter stated and subject to
any limitations contained in the Plan other than the limits contained in Section 4 of the Plan, which will not apply (the “Option”).


 


2.
Exercise Price. The purchase price per Share is two dollars and thirty-one cents ($2.31) which was the last
closing price of the Company’s common shares on the date of this grant (i.e., September 17, 2018) and 100% of the fair
market value of common stock subject to the option on the grant date.


 




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3.
Vesting. Unless otherwise terminated as provided by this Agreement, this option will vest (and thereby become exercisable)
as follows: one quarter of the options shall vest upon completion of 12 full months of continuous employment of the optionee by
the Company measured from September 17, 2018 the date of grant, and the balance of the options shall vest in 36 equal monthly
installments commencing on the first anniversary of the date of grant, based upon the completion of each month of continuous employment
of the optionee by the Company. The unvested portion of the Option shall not be exercisable.


 


4.
Expiration. Subject to Section __ herein, the vested portion of the options shall expire on the earliest of (A) ten (10) years
from date of grant, (B) three months after Employee ceases to be an employee of the Company for any reason other than Employee’s
death or Disability (as defined below), or (C) one year after Employee ceases to be an employee of the Company due to death or
Disability; provided that if Employee dies during the ninety day period described in clause (B) of this paragraph, the expiration
date of the vested portion of the Option shall be one year after the date of Employee’s death.


 


5.
Adjustments in Shares and Purchase Price.


 


(a)
In the event of changes in the outstanding common shares or in the capital structure of the Company by reason of any stock
or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization,
reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the date
of grant of this Option, the exercise price and the number of Shares subject to this Option will be equitably adjusted or substituted,
as to the number, price or kind of a share of securities or other consideration to the extent necessary to preserve the economic
intent of such Award, as determined by the Board or Committee.


 


(b)
Upon the dissolution or liquidation of the Company, or upon a reorganization, merger, or consolidation of the Company as a
result of which the outstanding securities of the class then subject to options hereunder are changed into or exchanged for cash
or property or securities not of the Company’s issue, or upon a sale of substantially all the property of the Company to,
or the acquisition of stock representing more than eighty percent (80%) of the voting power of the stock of the Company then outstanding
by, another corporation or person, this Option shall terminate, unless provision is made in writing in connection with such transaction
for the assumption of options theretofore granted under the Plan, or the substitution of such options by any options covering
the stock of a successor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind
of shares and prices, in which event this Option shall continue in the manner and under the terms so provided.


 


(c)
To the extent that the foregoing adjustments relate to stock or securities of the Company or the exercise price of this Option,
such adjustments shall be made by the Board or Committee, whose determination in that respect shall be final, binding and conclusive.


 




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(d)
The grant of this Option shall not affect in any way the right of power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge or to consolidate or to dissolve, liquidate or sell,
or transfer all or any part of its business or assets.


 


6.
Effect of Termination of Employment. In the event of termination of the Employee’s Continuous Service for any reason
other than his or her death or disability, this Option may not be exercised after the date three months following the date of
termination of Employees Continuous Service, and may be exercisable only up to the amount vested on the date of termination. “Continuous
Service” means that the Employee’s service with the Company, whether as an employee, consultant, or director, is not
interrupted or terminated, as determined in accordance with the Plan. Notwithstanding the foregoing, if the exercise of the Option
following the termination of the Employee’s Continuous Service for any reason would be prohibited at any time because the
issuance of shares of Common Stock would violate the registration requirements under the Securities Act or any other state or
federal securities law or the rules of any securities exchange or interdealer quotation system, then the Option shall terminate
on the earlier of (a) the expiration of the term of the Option in accordance with Section 4(A) above or (b) the expiration of
a period after termination of the Employee’s Continuous Service that is three months after the end of the period during
which the exercise of the Option would be in violation of such registration or other securities law requirements.


 


7.
Effect of Death or Disability. This Option shall be exercisable during the Employee’s lifetime only by the Employee
and shall be nontransferable by the Employee otherwise than by will or the laws of descent and distribution.


 


(a)
In the event the Employee’s Continuous Service terminates on account of the Employee’s disability, this Option
may not be exercised after the earlier of (i) date 12 months following such termination, and (ii) the expiration of the term of
this Option, and this Option shall be exercisable only up to the amount vested under Section 3 on the date of disability. Disability
shall have the meaning ascribed to it under Section 22(e)(3) of the Code.


 


(b)
In the event Employee’s Continuous Service terminates due to Employee’s death, or if Employee dies during the
three month period following termination of Employee’s Continuous Service during which the Employee is permitted to exercise
this Option pursuant to Section 6, this Option may be exercised by the executor or administrator of the Employee’s estate
or any person who shall have acquired this Option from the Employee by his or her will or the applicable law of descent and distribution,
during a period ending on the earlier of (i) 12 months following the date of death, and (ii) the expiration of the term of this
Option, with respect to the number of Shares for which the deceased Employee would have been entitled to exercise at the time
of his or her death, including the number of Shares that vested upon his death under Section 3, subject to adjustment under Section
5. Any such transferee exercising this Option must furnish the Company upon request of the Committee (i) written notice of his
or her status as transferee, (ii) evidence satisfactory to the Company to establish the validity of the transfer of this Option
in compliance with any laws of regulations pertaining to said transfer, and (iii) written acceptance of the terms and conditions
of this Option as prescribed in this Agreement.


 




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8.
How to Exercise Option. This Option may be exercised by the person then entitled to do so as to any Share which may then be
purchased by giving written notice of exercise to the Company, specifying the number of full Shares to be purchased and accompanied
by full payment of the purchase price thereof and the amount of any income tax the Company is required by law to withhold by reason
of such exercise. The Option Exercise Price of Shares acquired pursuant to an Option shall be paid, to the extent permitted by
applicable statutes and regulations, either (a) in cash or by certified or bank check at the time the Option is exercised or (b)
the Option Exercise Price may be paid: (i) by delivery to the Company of other Shares, duly endorsed for transfer to the Company,
with a Fair Market Value on the date of delivery equal to the Option Exercise Price (or portion thereof) due for the number of
shares being acquired (a “Stock for Stock Exchange”); (ii) a “cashless” exercise program established
with a broker pursuant to which the broker exercises or arranges for the coordination of the exercise of the Option with the sale
of some or all of the underlying Shares; (iii) any combination of the foregoing methods; or (iv) in any other form of consideration
that is legal consideration for the issuance of Shares and that may be acceptable to the Board or Committee. The exercise price
of Shares acquired pursuant to an Option that is paid by delivery to the Company of other Shares acquired, directly or indirectly
from the Company, shall be paid only by Shares that have been held for more than six months (or such longer or shorter period
of time required to avoid a charge to earnings for financial accounting purposes). Notwithstanding the foregoing, during any period
for which the Company has any security registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) or is required to file reports under Section 15(d) of the Exchange Act, or has filed a registration statement that
has not yet become effective under the Securities Act of 1933, as amended, and that it has not withdrawn, if the Employee is
a director or officer of the Company, any exercise that involves or may involve a direct or indirect extension of credit or arrangement
of an extension of credit by the Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of
2002 shall be prohibited.


 


9.
No Rights as Shareholder Prior to Exercise. Neither the Employee nor any person claiming under or through the Employee shall
be or have any of the rights or privileges of a shareholder of the Company in respect of any of the Shares issuable upon the exercise
of this Option until the date of receipt of payment (including any amounts required by income tax withholding requirements) by
the Company.


 


10.
Notices. Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company at its
principal executive office, or at such other address as the Company may hereafter designate in writing. Any notice to be given
to the Employee shall be addressed to the Employee as the address set forth beneath his or her signature hereto, or at any such
other address as the Employee may hereafter designate in writing. Any such notice shall be deemed to have been duly given three
(3) days after being addressed as aforesaid and deposited in the United States mail, first class postage prepaid.


 




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11.
Restrictions on Transfer. Except as otherwise provided herein, the Option herein granted and the rights and privileges conferred
hereby shall not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall
not be subject to sale under execution attachment or similar process upon the rights and privileges conferred hereby. Any transfer,
assignment, pledge or other disposal of said Option, or of any right or privilege conferred hereby, contrary to the provisions
hereof, or any sale under any execution, attachment or similar process upon the rights and privileges conferred hereby, shall
immediately be null and void and shall not vest in any purported assignee or transferee any rights or privileges of the optionee,
under this Agreement or otherwise with respect to such Options. Notwithstanding the preceding two sentences, in conjunction with
the exercise of an Option, and for the purpose of obtaining financing for such exercise, the Option holder may arrange for a securities
broker/dealer to exercise an Option on the Option holder’s behalf, to the extent necessary to obtain funds required to pay
the exercise price of the Option.


 


12.
Successor and Assigns. Subject to the limitations on transferability contained herein, this Agreement shall be binding upon
and inure to the benefit of the heirs, legal representatives, successors, and assigns of the parties hereto.


 


13.
Additional Restrictions. The rights awarded hereby are subject to the requirement that, if at any time the Board or the Committee
shall determine, in its discretion, that the listing, registration or qualification of the Shares subject to such rights upon
any securities exchange or under any state or federal law, or the consent or approval of any government regulatory body, is necessary
or desirable as a condition of, or in connection with, the granting of such rights or the issuance or purchase of Shares in connection
with the exercise of such rights, then such rights may not be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been affected or obtained free of any conditions not acceptable to the Board or
the Committee. Furthermore, if the Board or Committee determines that amendment to any stock option (including but not limited
to the increase in the exercise price) is necessary or desirable in connection with the registration or qualification of any Shares
or other securities under the securities or “blue sky” laws of any state, then the Board or Committee shall have the
unilateral right to make such changes without the consent of the Employee.


 


14.
Terms of Employment. Subject to any employment contract with the Employee, the terms of employment of the Employee shall be
determined from time to time by the Company and the Company shall have the right, which is hereby expressly reserved, to terminate
the Employee or change the terms of the employment at any time for any reason whatsoever, with or without good cause. The Employee
agrees to notify in writing the Corporate Secretary of the Company of the Employee’s intention, if any, to terminate Employee’s
employment within ten days after said intention is formed.


 


15.
Payment of Taxes. Whenever Shares are to be issued to the Employee in satisfaction of the rights conferred hereby, the Company
shall have the right to require the Employee to remit to the Company an amount sufficient to satisfy federal, state and local
withholding tax requirements prior to the delivery of any certificate or certificates for such Shares.


 




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16.
Terms and Conditions of Plan. This Agreement is subject to, and the Company and the Employee agree to be bound by, all of
the terms and conditions of the Plan (other than Section 4 thereof) as if this Option had been granted under the Plan, as the
Plan shall have been amended from time to time in accordance with the terms thereof, provided that no such amendment shall deprive
the Employee, without his or her consent, of any of his or her rights hereunder, except as otherwise provided in this Agreement
or in the Plan. The Shares acquired hereunder may also be subject to restrictions on transfer and/or rights of repurchase that
may be contained in the Bylaws of the Company or in separate agreements with Employee. The Board or the Committee shall have the
power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application
of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and
determinations made by the Board or the Committee in good faith shall be final and binding upon Employee, the Company and all
other interested persons. No member of the Board or the Committee shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or this Agreement.


 


17.
Severability. In the event that any provision in this Agreement shall be invalid or unenforceable, such provision shall be
severable from, and such invalidity or unenforceability shall not be construed to have any effect on the remaining provisions
of this Agreement.


 


18.
Governing Law. This Agreement shall be governed by and construed under the laws of the state of California, without regard
to conflicts of law provisions.


 


19.
Arbitration. Any and all claims or controversies between the Company and Employee, including but not limited to (a) those
involving the construction or application of any of the terms, provisions, or conditions of this Agreement; (b) all contract or
tort claims of any kind; and (c) any claim based on any federal, state, or local law, statute, regulation, or ordinance, including
claims for unlawful discrimination or harassment, shall be settled by arbitration in accordance with the then current Employment
Dispute Resolution Rules of the American Arbitration Association. Judgment on the award rendered by the arbitrator(s) may be entered
by any court having jurisdiction over the Company and Employee. The location of the arbitration shall be San Francisco, California.
Unless the Company or a Related Company and Employee mutually agree otherwise, the arbitrator shall be a retired judge selected
from a panel provided by the American Arbitration Association, or the Judicial Arbitration and Mediation Service (JAMS). The Company
shall pay the arbitrator’s fees and costs. Employee shall pay for Employee’s own costs and attorneys’ fees,
if any. The Company shall pay for its own costs and attorneys’ fees, if any. However, if any party prevails on a statutory
claim which affords the prevailing party attorneys’ fees, the arbitrator shall award reasonable attorneys’ fees and
costs to the prevailing party consistent with the relevant statute(s).


 


EMPLOYEE
UNDERSTANDS AND AGREES THAT THIS AGREEMENT TO ARBITRATE CONSTITUTES A WAIVER OF HIS RIGHT TO A TRIAL BY JURY OF ANY MATTERS COVERED
BY THIS AGREEMENT TO ARBITRATE.


 




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IN
WITNESS HEREOF, the parties hereto have executed this Agreement, as of the day and year first above written.


 


COMPANY:


 


BioTime,
Inc.


 


	 	 
	 	(Signature)	 
	 	 	 
	By
    	 	 
	Title
    	 	 


 


EMPLOYEE:


 


	 	 
	 	(Signature) 	 
	 	 	 
	 	 
	 	(Please
    Print Name) 	 


 




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