Document:

Exhibit 10.42

  

   

  

  
    CELL SOURCE, INC. 2019 EQUITY INCENTIVE PLAN

    

    

    STOCK OPTION AGREEMENT

    

    

    Unless otherwise defined herein, the terms
          defined in the Cell Source, Inc. 2019 Equity Incentive Plan (the “Plan”) shall have the same defined meanings in this Stock Option Agreement (this “Option Agreement” or "Agreement").

    

    

    

    

    Name: Yair Reisner

    

    

    Address:

    

    

    The undersigned Participant has been
          granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows:

    

    

    
      
        	I.	
                NOTICE OF STOCK OPTION GRANT

              

      

    

    

    

    	
            Name:

          	 	 	 
	 	 	 	 
	
            Address:

          	 	 	 
	 	 
	
            The undersigned Participant has
                  been granted an Option to Purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows:

          	 
	 	 	 	 
	
            Date of Grant:

          	 	
            
              August 13, 2019

            

          	 
	 	 	 	 
	
            Vesting Commencement Date

          	 	
            
              August 13, 2019

            

          	 
	 	 	 	 
	
            Exercise Price per Share:

          	 	
            
              $

            

          	
            
              .75

            

          	 
	 	 	 	 	 
	
            Total Number of Shares Granted:

          	 	 	
            
              61,502

            

          	 
	 	 	 	 	 
	
            Total Exercise Price:

          	 	
            
              $

            

          	
            
              46,126.50

            

          	 
	 	 	 	 	 
	
            Type of Option:

          	 	
            
              Nonstatutory Stock Option

            

          	 
	 	 	 	 	 
	
            Term/Expiration Date:

          	 	
            
              August 13, 2029

            

          	 

    

    

    
      
        

      

    

    
    Number of Shares

    

    

    The Company hereby grants the Participant an
          Option to purchase 61,502 (Sixty One Thousand and Five Hundred and Two) shares of Common Stock.

    

    

    This grant shall add to any other option grant
          agreed by the Company and the Grantee.

    

    

    Vesting Schedule:

    

    

    This Option shall be fully vest and shall
          be exercisable, in whole as of the date of this Agreement.

    

    

    Termination Period:

    

    

    This Option shall be exercisable for six
          (6) months after Participant ceases to be a Service Provider, unless such cessation is due to Participant’s death or Disability, in which case this Option shall be exercisable for twelve (12) months after Participant ceases to be a Service
          Provider. Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above and this Option may be subject to earlier termination as provided in Section 13(c) of the Plan.

    

    

    
      
        	II.	
                AGREEMENT

              

      

    

    

    

    
      
        	1.	
                Grant of Option. The Administrator of the Company hereby grants to the Participant named in the Notice of Stock Option Grant in Part I of this Agreement (“Participant”), an option (the “Option”) to purchase the number of Shares set forth in the Notice of Stock Option Grant, at the exercise price per Share set
                      forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject to the terms and conditions of the Plan, which is incorporated herein by reference. Subject to Section 19(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan
                      and this Option Agreement, the terms and conditions of the Plan shall prevail.

              

      

    

    

    

    If designated in the
          Notice of Stock Option Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. Nevertheless, to the extent that it exceeds the $100,000 rule of Code
          Section 422(d), this Option shall be treated as a Nonstatutory Stock Option (“NSO”). Further, if for any reason this Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion
          thereof) shall be regarded as a NSO granted under the Plan. In no event shall the Administrator, the Company or any Parent or Subsidiary or any of their respective employees or directors have any liability to Participant (or any other person) due
          to the failure of the Option to qualify for any reason as an ISO.

    

    

    
      
        	2.	
                Exercise of Option.

              

      

    

    

    

    
      
        	

              	(a)	
                Right to Exercise. This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Stock Option Grant and with the applicable provisions of the Plan and this Option Agreement.

              

      

    

    

    

    
      
        	

              	(b)	
                Method of Exercise. This Option shall be exercisable by delivery of an exercise notice in the form attached as Exhibit A (the “Exercise Notice”) or in a manner and pursuant to such procedures as the Administrator may determine, which shall state the election to
                      exercise the Option, the number of Shares with respect to which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise
                      Price as to all Exercised Shares, together with any applicable tax withholding. This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by payment of the aggregate
                      Exercise Price, together with any applicable tax withholding.

              

      

    

    

    

    
      2

      
        

      

    

    

    

    No Shares shall be
          issued pursuant to the exercise of an Option unless such issuance and such exercise comply with Applicable Laws. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Participant on the date on which the
          Option is exercised with respect to such Shares.

    

    

    
      
        	3.	
                Lock-Up Period. Participant hereby agrees that Participant shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant
                      to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Stock (or other securities) of the Company or enter into any swap, hedging or other arrangement that transfers to another, in whole or in part,
                      any of the economic consequences of ownership of any Common Stock (or other securities) of the Company held by Participant (other than those included in the registration) for a period specified by the representative of the
                      underwriters of Common Stock (or other securities) of the Company not to exceed one hundred and eighty (180) days following the effective date of any registration statement of the Company filed under the Securities Act (or such other
                      period as may be requested by the Company or the underwriters to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not
                      limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto).

              

      

    

    

    

    Participant agrees to
          execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or necessary to give further effect thereto. In addition, if requested by the Company or the
          representative of the underwriters of Common Stock (or other securities) of the Company, Participant shall provide, within ten (10) days of such request, such information as may be required by the Company or such representative in connection with
          the completion of any public offering of the Company’s securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 4 shall not apply to a registration relating solely to employee
          benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Securities Exchange Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the
          future. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of said one hundred and eighty (180) day (or other) period. Participant
          agrees that any transferee of the Option or shares acquired pursuant to the Option shall be bound by this Section 4.

    

    

    
      
        	4.	
                Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Participant:

              

      

    

    

    

    
      
        	

              	(a)	
                cash;

              

      

    

    

    

    
      
        	

              	(b)	
                check;

              

      

    

    

    

    
      
        	

              	(c)	
                using a "cashless exercise" method, in which event the Company shall issue to the Participant the number of Shares determined as follows:

              

      

    

    

    

    
      3

      
        

      

    

    

    

    X = Y[(A-B)/A]

    

    

    where:

    

    

    X = the number of Shares to be issued to the Participant.

    

    

    Y = the number of Shares with respect to which this Option is being exercised.

    

    

    A = the Fair Market Value of the Company’s Common Stock (as defined in the Plan).

    

    

    B = the Exercise Price.

    

    

    
      
        	

              	(d)	
                consideration received by the Company under another formal cashless exercise
                      program adopted by the Company at the direction of the Administrator in connection with the Plan; or

              

      

    

    

    

    
      
        	

              	(e)	
                surrender of other Shares which (i) shall be valued at their Fair Market Value on
                      the date of exercise, and (ii) must be owned free and clear of any liens, claims, encumbrances or security interests, if accepting such Shares, in the sole discretion of the Administrator, shall not result in any adverse accounting
                      consequences to the Company.

              

      

    

    

    

    
      
        	5.	
                Restrictions on Exercise. This Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of
                      consideration for such shares would constitute a violation of any Applicable Law.

              

      

    

    

    

    
      
        	6.	
                Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Participant only by
                      Participant. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Participant.

              

      

    

    

    

    
      
        	7.	
                Term of Option. This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

              

      

    

    

    

    
      
        	8.	
                Tax Obligations.

              

      

    

    

    

    
      
        	

              	(a)	
                Tax Withholding. Participant agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining Participant) for the satisfaction of all Federal, state, local and foreign income
                      and employment tax withholding requirements applicable to the Option exercise. Participant acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver the Shares if such withholding amounts are not
                      delivered at the time of exercise.

              

      

    

    

    

    
      
        	

              	(b)	
                Notice of Disqualifying Disposition of ISO Shares. If the Option granted to Participant herein is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or
                      before the later of (i) the date two (2) years after the Date of Grant, or (ii) the date one (1) year after the date of exercise, Participant shall immediately notify the Company in writing of such disposition. Participant agrees that
                      Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant.

              

      

    

    

    

    
      4

      
        

      

    

    

    

    
      
        	

              	(c)	
                Code Section 409A. Notwithstanding any provision of the Plan or this Option Agreement to the contrary, this Option is intended to be exempt from Code Section 409A; provided, that the Company does not guarantee to Participant
                      any particular tax treatment of the Option. In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on Participant by Code Section 409A or any damages for failing to comply
                      with Code Section 409A.

              

      

    

    

    

    
      
        	9.	
                Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede
                      in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to the Participant’s interest except by means of a writing signed by
                      the Company and Participant. This Option Agreement is governed by the internal substantive laws but not the choice of law rules of Nevada.

              

      

    

    

    

    
      
        	10.	
                No Guarantee of Continued Service. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR
                      THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE
                      TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL
                      NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT
                      CAUSE.

              

      

    

    

    

    
      5

      
        

      

    

    Participant acknowledges receipt of a copy
          of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Option subject to all of the terms and provisions of this Option Agreement and the Plan. Participant has reviewed the Plan and
          this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understands all provisions of this Option Agreement. Participant hereby agrees to accept as
          binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Option Agreement. Participant further agrees to notify the Company upon any change in the residence address
          indicated below.

    

    

    	
            PARTICIPANT

          	 	
            CELL SOURCE, INC.

          
	 	 	 
	 	 	 
	 	 	 
	Signature	 	
            By:

          
	 	 	 
	

          	 	 
	 	 	 
	
            Yair Reisner

          	 	 
	
            Print Name

          	 	
            Print Name

          
	 	 	 
	 	 	 
	 	 	 
	 	 	
            Title

          
	 	 	 
	 	 	 
	
            Residence Address

          	 	 
	 	 	 
	 	 	 
	 	 	 
	
            Email Address

          	 	 

    

    

    

    

  

  6Exhibit 10.1

 

		
        Director Compensation Program 

        including the

        Independent Director Compensation Policy

        pursuant to the

        2012 Long Term Incentive Plan 

 

Unless the context otherwise requires, all capitalized terms
used herein shall have the respective meanings assigned to them in the Servotronics, Inc. 2012 Long Term Incentive Plan (the “Plan”).

 

EQUITY AWARDS

 

The following shall constitute the equity awards under the Independent
Director Compensation Policy under the Plan:

 

Annual Retainer Share Award 

 

(a)       Each year, as of
the date of the Company’s annual meeting of shareholders, the Company shall automatically award Restricted Shares to each
Independent Director who has been elected or reelected as a member of the Board of Directors at the annual meeting. The number
of Restricted Shares shall be equal to $25,000 divided by the Fair Market Value of a Share on the date of such election. If a fraction
results, the number of Shares shall be rounded up to the next whole number.

 

(b)       If an Independent
Director is elected or appointed to the Board of Directors other than at an annual meeting of the Company and has not received
an award pursuant to paragraph (a) during the twelve months preceding election or appointment, the Company shall automatically
award to the Independent Director a number of Restricted Shares that is equal to the amount determined pursuant to paragraph (a)
based on the date of election or appointment multiplied by a fraction, the numerator of which is the remainder of 365 minus the
number of days between the adjournment of the last annual meeting and the effective date of the appointment or election, and the
denominator of which is 365. If a fraction results, the number of Restricted Shares shall be rounded up to the next whole number.

 

(c)       The Company shall
issue the Restricted Shares awarded under this paragraph (a) or (b) on the first business day following the effective date of the
election, reelection or appointment. The Restricted Shares awarded under paragraph (a) will vest in four quarterly installments
on the date of each of the three regularly scheduled quarterly board meetings to review the financial statements for the quarters
ending June 30, September 30 and December 31 (each a “Quarterly Board Meeting”) each year following the annual meeting
and the remainder of which shall vest on the date of the next annual meeting. The Restricted Shares awarded under paragraph (b)
will vest in equal parts on the date of the remaining Quarterly Board Meetings and the remainder of which shall vest on the date
of the next annual meeting. The Company will credit a bookkeeping account with amounts equal to the dividends payable with respect
to the Restricted Shares and the amounts credited to the dividend account will be payable as the Restricted Shares vest. If an
Independent ceases to serve as a Board member for any reason other than due to death, then all Restricted Stock that is not then
vested shall be immediately forfeited. If an Independent Director ceases to serve as a Board member by reason of death then all
Restricted Stock shall immediately become vested.

 

     

     

    

 

CASH COMPENSATION

 

Payment Amount

 

Independent Directors shall be eligible to receive an annual
cash retainer of $60,000 for service on the Board. For purposes of this Policy, “annual” means from Annual Shareholders’
Meeting to Annual Shareholders’ Meeting each year.

 

No Separate Meeting Fees

 

No separate meeting fees shall be paid for Board or committee
meetings or for actions taken by unanimous written consent in lieu of a meeting in accordance with the Company’s Bylaws.

 

Payment Schedule

 

The annual retainers for service on the Board as set forth above
shall be paid by the Company in arrears in twelve equal monthly installments, the first installment being paid on the date of the
one month anniversary of the Annual Shareholders’ Meeting and the remaining installments being paid on each successive one
month anniversary date (each such payment date, a “Monthly Payment Date”); provided, however, that if the Company’s
Annual Shareholders’ Meeting for the following year occurs prior to the end of the one year period, the final Monthly Payment
Date shall be paid on the day of such Annual Shareholders’ Meeting. If any Independent Director holds office as a director
of the Board for less than a full monthly period, such Independent Director shall only be entitled to a pro-rated amount of their
applicable annual retainer as measured from the most recent Monthly Payment Date through the date on which the Independent Director
shall have ceased to serve on the Board.

 

New Directors

 

In the event a new Independent Director is elected or appointed
to the Board, such Independent Director shall be eligible to receive as compensation for service as a member of the Board a pro-rated
amount of the annual retainer as measured from the date of appointment or election through the next scheduled Monthly Payment Date
and thereafter shall be paid in conformity with the other Independent Directors.

 

TRAVEL EXPENSE REIMBURSEMENT

 

Each of the Independent Directors shall be entitled to receive
reimbursement for reasonable travel expenses which they properly incur in connection with their functions and duties as a director.

  

Reimbursement for travel expenses incurred is also initiated
by the Director, by submitting a Director Expense Reimbursement Form and accompanying receipts to the Finance Department. The reimbursement
will be processed within one week of receipt by the Finance Department.

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