Document:

Exhibit
4.2

 

DESCRIPTION
OF SECURITIES REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

As
of March 12, 2020, Lineage Cell Therapeutics, Inc. (the “Company”) has one class of securities
registered under Section 12 of the Securities Exchange Act of 1934: common shares, no par value (the “common shares”).

 

The
following is a description of the rights of the common shares and related provisions of: (i) the Company’s Restated Articles
of Incorporation, as amended (as amended by the Certificate of Ownership, the “Articles”); (ii) the
Company’s Amended and Restated Bylaws (the “Bylaws”); and (iii) applicable California law. This
description is qualified in its entirety by, and should be read in conjunction with, the Articles, the Bylaws and applicable California
law. The Articles and Bylaws are filed as exhibits to the Annual Report on Form 10-K of which this exhibit is a part. The Annual
Report is filed with the U.S. Securities and Exchange Commission and is publicly available.

 

Authorized
Capital Stock

 

Pursuant
to the Articles, the Company is authorized to issue an aggregate of 252,000,000 shares of capital stock consisting of 250,000,000
common shares and 2,000,000 preferred shares. All of the outstanding common shares are fully paid and non-assessable.

 

Common
Shares

 

Voting
Rights

 

Each
holder of common shares is entitled to one vote for each common share held on every matter properly submitted to the shareholders
for their vote; provided that such holders may have cumulative voting rights in the election of directors if the candidates’
names have been placed in nomination prior to commencement of the voting and a shareholder has given notice prior to commencement
of the voting of the shareholder’s intention to cumulate votes.

 

Dividend
Rights

 

Subject
to any preferential rights or preferences of preferred shares outstanding, if any, holders of the common shares are entitled to
any dividend declared by the Company’s Board of Directors (the “Board”) out of funds legally available
for that purpose.

 

Liquidation
Rights

 

Subject
to any preferential rights or preferences of holders of preferred shares outstanding, if any, holders of the common shares are
entitled to receive on a pro rata basis all of the Company’s remaining assets available for distribution to the holders
of the common shares in the event of the liquidation, dissolution, or winding up of the Company’s operations.

 

No
Preemptive or Similar Rights

 

Holders
of the common shares do not have any preemptive rights to become subscribers or purchasers of additional shares of any class of
the Company’s capital stock. There are no redemption or sinking fund provisions applicable to the common shares.

 

Rights
of Preferred Shares May be Senior to Common Shares

 

The
Company may issue preferred shares in one or more series, at any time, with such rights, preferences, privileges and restrictions
as the Board may determine, all without further action of the Company’s shareholders. Any series of preferred shares authorized
by the Board in the future may be senior to and have greater rights and preferences than the common shares and may have restrictions
on the Company’s repurchase or redemption of shares.

 

    	 	 	 

    	 

    

 

Anti-takeover
Provisions of the Articles, Bylaws and California Law

 

Provisions
of the Articles and Bylaws may delay or discourage transactions involving an actual or potential change in control of the Company
or change in its management, including transactions in which shareholders might otherwise receive a premium for their shares,
or transactions that its shareholders might otherwise deem to be in their best interests. Among other things, the Articles and
Bylaws:

 

	 	●	provide
    that, except for a vacancy caused by the removal of a director by the shareholders or by court order, a vacancy on the Board
    may be filled by approval of a majority of the remaining directors, though less than a quorum, or by a sole remaining director;
	 	●	provide
    that shareholders seeking to present proposals before a meeting of shareholders or to nominate candidates for election as
    directors at a meeting of shareholders must provide notice in writing in a timely manner, and also specify requirements as
    to the form and content of such notice;
	 	●	authorize
    the Board to issue preferred shares in series and to fix rights and preferences of the series (including, among other things,
    whether, and to what extent, the shares of any series will have voting rights and the extent of the preferences of the shares
    of any series with respect to dividends and other matters); and
	 	●	provide
    that, at a meeting of shareholders at which directors are to be elected, no shareholder shall be entitled to cumulate votes
    unless the candidates’ names have been placed in nomination prior to commencement of the voting and a shareholder has
    given notice prior to commencement of the voting of the shareholder’s intention to cumulate vote.

 

In
addition, as a California corporation, the Company is subject to the provisions of Section 1203 of the California General Corporation
Law, which requires it to provide a fairness opinion to its shareholders in connection with their consideration of any proposed
“interested party” reorganization transaction.

 

Listing

 

The
common shares are listed on the NYSE American and on the Tel Aviv Stock Exchange under the symbol “LCTX.”

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for the common shares is American Stock Transfer & Trust Company, LLC.Exhibit 10.6

 

LINEAGE CELL THERAPEUTICS, INC.

RESTRICTED STOCK UNIT GRANT NOTICE

2012 EQUITY INCENTIVE PLAN

 

Lineage Cell Therapeutics,
Inc., a California corporation (the “Company”), has granted to the participant listed below (“Participant”)
the Restricted Stock Units (the “RSUs”) described in this Restricted Stock Unit Grant Notice (this “Notice”),
subject to the terms of the Lineage Cell Therapeutics, Inc. 2012 Equity Incentive Plan (as amended from time to time, the “Plan”)
and the Restricted Stock Unit Agreement attached as Exhibit A hereto (the “Agreement,” and,
together with this Notice and the Plan, the “RSU Documents”), both of which are incorporated into this
Notice by reference. Capitalized terms not defined in this Notice or the Agreement have the meanings given to them in the Plan.

 

	Participant:	 
	Grant Date:	 
	Number of RSUs:	 
	Vesting Schedule:	 
	Other Terms:	 

 

By accepting the RSU, Participant
agrees to be bound by the terms of the RSU Documents. Participant has reviewed the RSU Documents in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Notice, and fully understands all provisions of RSU Documents.
Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Administrator (defined
below) regarding any questions arising under the RSU Documents. “Administrator” means the Board or a
Committee of the Board to the extent the Board’s powers or authority under the Plan have been delegated to such Committee
pursuant to the Plan.

 

	Lineage Cell Therapeutics, Inc.	 	Participant
	 	 	 
	By: 	 	By: 
	 	 	 
	Name: 	 	Name: 
	 	 	 
	Title:	 	Title:

 

    	 

    	 

    

 

EXHIBIT A

 

RESTRICTED STOCK UNIT AGREEMENT

 

Capitalized terms not defined
in this Restricted Stock Unit Agreement (this “Agreement”) have the meanings specified in the Restricted
Stock Unit Grant Notice (the “Notice”) or, if not defined in the Notice, in the Plan.

 

1. General

 

(a) Grant of RSU.
The Company has granted the RSUs to Participant effective as of the grant date set forth in the Notice (the “Grant
Date”). Each RSU represents the right to receive one common share, no par value, of the Company (a “Share”)
as set forth in this Agreement. Participant will have no right to the distribution of any Shares until the RSUs vest. Prior to
settlement, the RSUs represent an unsecured Company obligation payable only from the Company’s general assets.

 

(b) Incorporation of Terms
of Plan. The RSUs are subject to the terms of this Agreement and the Plan, which is incorporated herein by reference. In the
event of any inconsistency between the Plan and this Agreement, the Plan will control.

 

2. Vesting, Forfeiture,
and Settlement

 

(a) Vesting; Forfeiture.
The RSUs will vest according to the vesting schedule in the Notice; provided that any fraction of an RSU will accumulate and vest
only when a whole RSU has accumulated. Notwithstanding anything in the RSU Documents, except as set forth in the Notice, a separate
Agreement between Participant and the Company or as determined by the Administrator, any unvested RSUs will immediately and automatically
be cancelled and forfeited on the date of termination of Participant’s Continuous Service (“Termination of Service”)
for any reason.

 

(b) Settlement. RSUs
will be paid in Shares as soon as administratively practicable after the vesting of the applicable RSU, but in no event more than
60 days following the RSUs’ vesting date unless otherwise provided in the Notice. Notwithstanding the foregoing, the Company
may delay any payment under this Agreement that the Company reasonably determines would violate Applicable Law until the earliest
date the Company reasonably determines the making of the payment will not cause such a violation (in accordance with Treasury Regulation
Section 1.409A-2(b)(7)(ii)); provided the Company reasonably believes the delay will not result in the imposition of excise taxes
under Section 409A.

 

3. Taxation and Tax
Withholding

 

(a) Representation.
Participant represents that Participant has reviewed with Participant’s own tax advisors the tax consequences of this Award
and the transactions contemplated by the Notice and this Agreement. Participant is relying solely on such advisors and not on any
statements or representations of the Company or any of its agents.

 

    	 

    	 

    

 

(b) Tax Withholding.

 

(i) The Company shall
withhold, or cause to be withheld, Shares otherwise vesting or issuable under this Award (including the RSUs) in satisfaction of
any applicable withholding tax obligations. The number of Shares withheld shall be limited to the number of Shares which have a
fair market value on the date of withholding no greater than the aggregate amount of liabilities based on the maximum individual
statutory withholding rates in Participant’s applicable jurisdictions for federal, state, local, and foreign income tax and
payroll tax purposes that are applicable to such taxable income.

 

(ii) Participant acknowledges
that Participant is liable and responsible for all taxes owed in connection with the RSUs, regardless of any action the Company
or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with the RSUs. Neither the Company
nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding in connection with the
awarding, vesting, or payment of the RSUs or the subsequent sale of Shares. The Company and its Subsidiaries are under no obligation
to structure the RSUs to reduce or eliminate Participant’s tax liability

 

4. Other Provisions

 

(a) Adjustments. Participant
acknowledges that the RSUs and the Shares subject to the RSUs are subject to adjustment, modification, and termination in certain
events as provided in this Agreement and the Plan.

 

(b) Notices. Any notice
to be given under this Agreement to the Company must be in writing and addressed to the Company in care of the Company’s
Secretary at the Company’s principal office or the Secretary’s then-current email address. Any notice to be given under
this Agreement to Participant must be in writing and addressed to Participant at Participant’s last known mailing address
or email address. Either party may designate a different address or email address for notices to be given to that party by providing
notice to the other party of such change pursuant to this Section 4(b). Any notice will be deemed duly given when sent by email,
when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post office
regularly maintained by the United States Postal Service, or when delivered by a nationally recognized express shipping company.

 

(c) Titles. Titles
are provided herein for convenience only and do not serve as a basis for interpretation or construction of this Agreement.

 

(d) Conformity to Securities
Laws. Participant acknowledges that each RSU Document is intended to conform to all Applicable Laws and, to the extent Applicable
Laws permit, will be deemed amended as necessary to conform to Applicable Laws.

 

    	 

    	 

    

 

(e) Successors and Assigns.
The Company may assign any of its rights under this Agreement to one or more assignees, and this Agreement will inure to the benefit
of the Company’s successors and assigns. Subject to any transfer restrictions in this Agreement or the Plan, this Agreement
will be binding on and inure to the benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties
hereto.

 

(f) Limitations Applicable
to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to
Section 16 of the Exchange Act, each RSU Document will be subject to any additional limitations set forth in any applicable
exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements
for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended as necessary
to conform to such applicable exemptive rule.

 

(g) Entire Agreement.
The RSU Documents constitute the entire agreement of the parties and supersede all prior undertakings and agreements of the Company
and Participant with respect to the subject matter hereof.

 

(h) Agreement Severable.
If any provision of the Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality
or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Notice or this Agreement.

 

(i) Limitation on Participant’s
Rights. Participation in the Plan provides no rights or interests other than as herein provided. This Agreement creates only
a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust. Neither
the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights of a general unsecured
creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the RSUs, and rights no
greater than the right to receive Shares as a general unsecured creditor with respect to the RSU, as and when settled pursuant
to the terms hereof.

 

(j) Not a Contract of
Employment. Nothing in the RSU Documents: (i) provides Participant any right to continued employment or service with the
Company or any Subsidiary; or (ii) interferes with or restricts in any way the rights of the Company and its Subsidiaries, which
rights are hereby expressly reserved, to discharge or terminate the employment or services of Participant at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company
or a Subsidiary and Participant.

 

(k) Counterparts.
The Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law,
each of which will be deemed an original and all of which together will constitute one instrument.

 

(l) Governing Law.
This Agreement is governed by and construed under the laws of the state of California, without regard to conflict of law provisions.

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