Document:

Exhibit 4.1

 

COMMON STOCK PURCHASE WARRANT

 

brainstorM
cell therapeutics inc.

 

	Warrant Shares: _______	Initial Exercise Date: _______ ___, 2012

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the _____
year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for
and purchase from Brainstorm Cell Therapeutics Inc., a Delaware corporation (the “Company”), up to ______ shares
(as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share
of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.           Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase Agreement”), dated __________ ___, 2012, among the Company and the purchasers signatory thereto.

 

Section
2.           Exercise.

 

a)          Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as
it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within three (3) Trading Days following the date
of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified
in Section 2(c) below is available and specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the
Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company.
Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder
shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable
number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased
and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business
Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant
Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

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b)          Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $____, subject to adjustment hereunder
(the “Exercise Price”). Except as where otherwise permitted in accordance with Section 2(c), this Warrant may
only be exercised by means of payment by wire transfer or cashier’s check drawn on a United States bank.

 

c)          Cashless
Exercise. If, and only if, at the time of exercise hereof there is no effective registration statement registering, or the
prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder, then, and only then, this Warrant
may at the option of the Holder be exercised, in whole or in part, at such time by means of a “cashless exercise” in
which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)]
by (A), where:

 

		(A) = 	the VWAP on the Trading Day immediately preceding the
date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

		(B) = 	the Exercise Price of this Warrant, as adjusted hereunder;
and

 

		(X ) = 	the number of Warrant Shares that would be issuable upon
exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the OTC Bulletin Board is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common
Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in
all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith
by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees
and expenses of which shall be paid by the Company.

 

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d)           Mechanics
of Exercise.

 

i.          Delivery
of Warrant Shares Upon Exercise. The Company shall use best efforts to cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such
system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of
the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery to
the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A)
the delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate
Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named
therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been
exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to
be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid.

 

ii.         Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

 

iii.         Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i)
by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

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iv.        Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to an exercise on or before
the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction
or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times
(2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in
which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have
been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common
Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.
Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.         No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

vi.        Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder;
provided, however, that, in the event Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise.

 

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vii.       Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

e)           Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder
or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth
in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of
the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this
Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the Company,
may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership
Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to
the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e)
shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is
delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent
with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this
Warrant.

 

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Section 3.           Certain
Adjustments.

 

a)          Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

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b)         
[RESERVED]

 

c)          Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time
during which this Warrant is outstanding the Company grants, issues or sells any Common Stock Equivalents or rights to purchase
stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase
Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon
complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the
grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in
any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be
entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result
of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such
time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)          Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in
such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution
to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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e)          Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) an all cash transaction,
(2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving
a person or entity not traded on a national securities exchange, including, but not limited to, the NYSE MKT, the Nasdaq Global
Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the Company or any Successor Entity (as defined below) shall,
at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental
Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental
Transaction. “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day
of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding
to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained
from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental
Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being offered
in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (D) a
remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and
the Termination Date. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant
and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form
and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental
Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor
Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a
corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common
Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant)
prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of
capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which
is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions
of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this
Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

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f)           Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

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g)           Notice
to Holder.

 

i.          Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of
Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or
effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common
Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares
of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall
not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided
hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company
shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.

 

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Section 4.           Transfer
of Warrant.

 

a)          Transferability.
This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment
of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient
to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company
shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion
of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance
herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)          New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

c)          Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

Section 5.            Miscellaneous.

 

a)          No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in
Section 3.

 

b)          Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

    	11

    	 

    

 

c)          Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

d)          Authorized
Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market
upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment
for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

    	12

    	 

    

 

e)          Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

 

f)           Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does
not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)          Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

h)          Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

 

i)           Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

j)           Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

k)          Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

    	13

    	 

    

 

l)           Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and
the Holder.

 

m)         Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

n)          Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature Page Follows)

 

    	14

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	Brainstorm
    Cell Therapeutics inc.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	15

    	 

    

 

NOTICE OF EXERCISE

 

To:     Brainstorm
Cell Therapeutics inc.

 

(1)    The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

(2)    Payment
shall take the form of (check applicable box):

 

£ in lawful
money of the United States by wire transfer or cashier’s check drawn on a United States bank; or

 

£ [if permitted
by the terms of the Warrant, the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula
set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant
to the cashless exercise procedure set forth in subsection 2(c).

 

(3)    Please
issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

	 	_______________________________	 

 

The Warrant Shares shall be delivered to
the following DWAC Account Number:

 

	 	_______________________________	 
	 	 	 
	 	_______________________________	 
	 	 	 
	 	_______________________________	 

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ____________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: ______________________________________________________

Name of Authorized Signatory: ________________________________________________________________________

Title of Authorized Signatory: _________________________________________________________________________

Date: _____________________________________________________________________________________________

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, [____]
all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

	 	Date:  ______________, _______

 

	 	Holder’s Signature:	_____________________________	 
	 	 	 	 
	 	Holder’s Address:	_____________________________	 
	 	 	 	 
	 	 	_____________________________	 

 

Signature Guaranteed: ___________________________________________

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT
(this “Agreement”) made as of the 31 day of May __ 2012, by and between Brainstorm Cell Therapeutics Inc.,
a Delaware Corporation, with offices at 605 Third Avenue, New York, NY 10158, USA (“Parent”), Brainstorm Cell
Therapeutics Ltd., a wholly owned subsidiary of Parent, a private company organized under the Laws of the State of Israel, whose
principal office is located at 12 Bazel Street, Petach Tiqva, Israel (the “Company”, and together with Parent,
the “Group”) and Dr. Daniel Offen, Israeli I.D. No _______ residing at Kfar Haroeh 38955, Israel, Osek
Mourshe” No. _______(the “Consultant”).

  

WHEREAS, following an
assignment agreement executed between the Parent and the Company dated December 20, 2011 with effective date of January 1, 2007,
the Company is a party to that Second Amended and Restated License Agreement dated July 26, 2007 by and between the Parent
and Ramot at Tel Aviv University Ltd. (“Ramot”), as amended on December 24, 2009 (together with all
exhibits and schedules, the “License Agreement”) relating to certain stem cell technology developed
by Consultant together with other researchers at the Felsenstein Medical Research Center of Tel-Aviv University (“TAU”).

  

WHEREAS, the Parent
and the Consultant entered into a Consulting Agreement dated July 31, 2004 (the “First Agreement”); and

 

WHEREAS, the parties
wish to terminate the First Agreement and wish to enter into this Consulting Agreement pursuant to which Group shall receive certain
services in a defined field from the Consultant, and the Consultant shall furnish such services to the Group as an independent
contractor, absent of an employment relationship between the parties, on the terms and conditions set forth herein; and

 

WHEREAS,
the Company and the Consultant desire to define the relationship between them in accordance to the terms and conditions of this
Agreement;

 

NOW, THEREFORE, the parties agree as follows:

 

		1.	Scope of Services.

 

		1.1	The Consultant hereby agrees to
                                                                act as a consultant and provide the services to the Group as set
                                                                forth in Exhibit A (the “Services”).
                                                                The terms of this Agreement shall be effective as of January 1,
                                                                2012 (the “Effective Date”).

 

		1.2	The Services to be performed shall be provided solely by the Consultant. The Consultant shall perform
the Services to the best of his skill, ability, expertise, experience and effort in a diligent, trustworthy, businesslike and efficient
manner for the purpose of advancing the Group and performance of the Consultant’s duties hereunder.

 

		2.	Consideration. In consideration
                                                            for the Services hereunder, the Company agrees to pay the Consultant
                                                            the amounts set forth in Exhibit A, plus Value Added Tax, against
                                                            provision of a valid tax receipt (the “Consideration”).
                                                            The Consultant will invoice the Company for the Services provided
                                                            by Consultant in each month. The Consideration shall be paid within
                                                            30 days net of the invoice date (shotef+30), provided that
                                                            an invoice was received.

 

The Consultant declares that he
maintains financial books in accordance with applicable law, and that he is duly registered with the income tax, VAT and national
insurance (Bituach Leumi) authorities.

 

The Consultant shall be responsible
for, and shall indemnify and hold the Company harmless from duly and timely paying any and all taxes in connection with the provision
of the Services hereunder, or any remuneration provided in connection therewith. Without derogating from the foregoing, the Company
shall withhold all taxes and compulsory payments on any payment or benefit to the Consultant as required by applicable law.

 

    	1

    	 

    

 

		3.	Expenses.
                                                                                                     The Company shall reimburse
                                                                                                     the Consultant, for all actual
                                                                                                     expenses reasonably and properly
                                                                                                     incurred by the Consultant
                                                                                                     in fulfilling his obligations
                                                                                                     under this Agreement, including
                                                                                                     travel, lodging and meals,
                                                                                                     provided such expenses were
                                                                                                     approved in advance and in
                                                                                                     writing by the Company. Reimbursement
                                                                                                     shall be made by the Company
                                                                                                     against duly issued invoice
                                                                                                     or receipt.

 

		4.	Confidentiality. Upon execution
                                                            of this Agreement, the Consultant will execute the attached Confidentiality
                                                            and Non-Competition Agreement, attached hereto as Exhibit B,
                                                            which constitutes an integral part of this Agreement.

 

		5.	Representation
                                                                              and Warranties.

 

		5.1	     Each of the Consultant and the Company represents that: (i) he/it is entitled to enter into this
Agreement and to assume all the obligations hereunder, (ii) the execution and delivery of this Agreement and the fulfillment of
the terms hereof (a) will not constitute a default under or conflict with any agreement or other instrument to which he or it is
a party or by which he or it is bound, (b) will not result in a breach of any confidentiality undertaking to any third party and
the Consultant represents that in performing the Services hereunder he shall not use any proprietary information of any third party,
(c) does not require the consent of any person or entity except as provided herein, (d) there are no contracts, impediments, hindrances
or restrictive covenants preventing the full performance of his or its duties and obligations hereunder, and nothing contained
in this Agreement shall require or permit the Consultant or the Company to do any act inconsistent with the requirements of any
statute, regulation or rule under any applicable law.

 

		5.2	     The parties hereto hereby agree to the termination of the First Agreement as of the Effective Date.
As full and final consideration for any amounts due under the First Agreement, the Parent will pay the Consultant $36,000 (Thirty
six thousand dollars), for 2011 services, by issuance of shares of common stock of the company, par value $0.0005, according to
the market price of shares on the issuance date. Following such a payment, the Consultant hereby irrevocably waives any claim and/or
demand against the Group in connection with the First Agreement and its termination.

 

		6.	Relationship
                                                                              of Parties; Indemnity.

 

		6.1	The Company and the Consultant agree that the Consultant is an “independent contractor”
and that except as otherwise stated in this Agreement, the Company shall have no right to control or direct the manner in which
the Consultant performs his duties and services under this Agreement. The Consultant must perform and continue to perform all actions
legally required to establish and maintain his status as an independent contractor. The Consultant understands and agrees that
except as specifically provided in this Agreement, no member of the Group grants the Consultant the right or authority to make
or give any agreement statement, representation, warranty or other commitment, or to create any obligation of any kind, on behalf
of any member of the Group. This Agreement shall not be construed to create any relationship of employment, association, agency,
partnership or joint venture between any member of the Group and the Consultant, nor shall it be construed to create any relationship
other than that of principal and independent contractor between any member of the Group and the Consultant. The Consultant is not
an employee of any member of the Group, and no member of the Group shall be obligated to treat the Consultant as an employee.

 

    	2

    	 

    

  

		6.2	The Consultant shall be responsible, solely and exclusively, to comply with all of his obligations
under the law, including, without limitation, for the payments of all taxes applicable to him as an independent contractor and
with respect to payment of applicable social security, national insurance (Bituach Leumi), health insurance and other legal requirements.
The Consultant will defend, indemnify and hold the Group harmless from and against all claims, damages, losses and expenses, including
reasonable fees and expenses of attorneys and other professionals relating to any obligation imposed upon any member of the Group
to pay any withholding taxes, social security, unemployment or disability insurance or similar items in connection with the Consideration
received by Consultant.

 

		6.3	The Consultant undertakes that neither he nor anyone on his behalf shall bring claims against
                                                                any member of the Group with any cause of action based on employee-employer relations between the Consultant and any member
                                                                of the Group. It is agreed between the parties that, if despite the parties’ express representations and agreements
                                                                hereunder, it shall at any time be held by any competent judicial authority, that the relationship between the Consultant and
                                                                any member of the Group in respect of the Services provided pursuant to this Agreement is one of employer and employee, the
                                                                following provisions shall apply:

 

6.3.1.    Retroactively,
from the Effective Date and in lieu of any Consideration, the Consultant shall be deemed to have been entitled only to a gross
monthly salary (including for all over-time hours, if relevant) in an amount equal to 60% of the Consideration and all the remaining
amounts shall be deemed to have been paid on account of all payments and social benefits (whether required to be paid to an employee
under law, contract, custom or otherwise) and the Consultant shall not be deemed to have been entitled to any other payments or
benefits under law or otherwise. From the date of such holding and thereafter, the Consultant shall only be entitled to the gross
monthly salary in an amount equal to 60% of the Consideration and to the social benefits mandated under the law. All amounts paid
or payable to Consultant will be subject to withholding in accordance with applicable law;

 

6.3.2.    The
Company shall be entitled to set off from the amounts due to the Consultant pursuant to this Agreement and/or in accordance with
any other source the amounts which the Consultant is liable to refund to it pursuant to this Section or in accordance with any
other source.

 

		6.4	in the event that the Company shall be demanded and/or obligated, to pay any amount, give the Consultant
or any third party any right, deriving from the existence of the client-consultant relationship between the Consultant and the
Company, the Consultant shall indemnify the Company, within fourteen (14) days of its first demand, for any and all costs, liabilities
and expenses it may have in connection with such demand and/or obligation, including the economical value of such right and including
legal expenses.

 

		6.5	The terms of this Section 6 shall survive termination
of this Agreement,

 

		6.6	The Group shall indemnify the Consultant and shall hold him harmless from and against any loss,
damage, liability and expense (including attorney fees and legal costs) caused to or incurred by him as a result of third party
claims filed against him and arising out of or resulting from the performance of the Consultant of the Services and/or the use
by the Company of any information developed or provided by the Consultant in the performance of the Services, except for acts which
involve his willful misconduct. The Company shall insure the aforesaid liability.

 

		7.	Term and Termination.

 

		7.1	This Agreement
                                                                                  shall commence on the effective date set forth
                                                                                  in Exhibit A (the “Effective
                                                                                  Date”), and shall continue in force
                                                                                  for a period of one year and, unless previously
                                                                                  terminated, shall automatically renew for one
                                                                                  year periods each thereafter (the “Term”).
                                                                                  Notwithstanding the above, either party shall
                                                                                  be entitled to terminate this Agreement by thirty
                                                                                  (30) days prior written notice.

 

    	3

    	 

    
 

		7.2	Notwithstanding
                                                                                                                                                       anything
                                                                                                                                                       else
                                                                                                                                                       to
                                                                                                                                                       the
                                                                                                                                                       contrary
                                                                                                                                                       herein,
                                                                                                                                                       the
                                                                                                                                                       Company
                                                                                                                                                       may
                                                                                                                                                       terminate
                                                                                                                                                       the
                                                                                                                                                       Consultant’s
                                                                                                                                                       engagement
                                                                                                                                                       at
                                                                                                                                                       any
                                                                                                                                                       time
                                                                                                                                                       by
                                                                                                                                                       written
                                                                                                                                                       notice
                                                                                                                                                       for
                                                                                                                                                       Cause.
                                                                                                                                                       In
                                                                                                                                                       such
                                                                                                                                                       event,
                                                                                                                                                       this
                                                                                                                                                       Agreement
                                                                                                                                                       and
                                                                                                                                                       the
                                                                                                                                                       consulting
                                                                                                                                                       relationship
                                                                                                                                                       shall
                                                                                                                                                       be
                                                                                                                                                       deemed
                                                                                                                                                       effectively
                                                                                                                                                       terminated
                                                                                                                                                       as
                                                                                                                                                       of
                                                                                                                                                       the
                                                                                                                                                       time
                                                                                                                                                       of
                                                                                                                                                       delivery
                                                                                                                                                       of
                                                                                                                                                       such
                                                                                                                                                       notice,
                                                                                                                                                       the
                                                                                                                                                       Consultant
                                                                                                                                                       will
                                                                                                                                                       not
                                                                                                                                                       be
                                                                                                                                                       entitled
                                                                                                                                                       to
                                                                                                                                                       any
                                                                                                                                                       payment
                                                                                                                                                       in
                                                                                                                                                       lieu
                                                                                                                                                       of
                                                                                                                                                       notice
                                                                                                                                                       period
                                                                                                                                                       and
                                                                                                                                                       any
                                                                                                                                                       office
                                                                                                                                                       which
                                                                                                                                                       the
                                                                                                                                                       Consultant
                                                                                                                                                       held
                                                                                                                                                       with
                                                                                                                                                       or
                                                                                                                                                       function
                                                                                                                                                       performed
                                                                                                                                                       for
                                                                                                                                                       the
                                                                                                                                                       Parent
                                                                                                                                                       shall
                                                                                                                                                       terminate
                                                                                                                                                       immediately.
                                                                                                                                                       For
                                                                                                                                                       purposes
                                                                                                                                                       of
                                                                                                                                                       this
                                                                                                                                                       Agreement,
                                                                                                                                                       termination
                                                                                                                                                       for
                                                                                                                                                       “Cause”
                                                                                                                                                       shall
                                                                                                                                                       mean
                                                                                                                                                       and
                                                                                                                                                       include:
                                                                                                                                                       (a)
                                                                                                                                                       conviction
                                                                                                                                                       of
                                                                                                                                                       any
                                                                                                                                                       crime
                                                                                                                                                       involving
                                                                                                                                                       moral
                                                                                                                                                       turpitude;
                                                                                                                                                       (b)
                                                                                                                                                       action
                                                                                                                                                       taken
                                                                                                                                                       by
                                                                                                                                                       the
                                                                                                                                                       Consultant
                                                                                                                                                       to
                                                                                                                                                       intentionally
                                                                                                                                                       harm
                                                                                                                                                       the
                                                                                                                                                       Group;
                                                                                                                                                       (c)
                                                                                                                                                       theft,
                                                                                                                                                       self-dealing
                                                                                                                                                       or
                                                                                                                                                       embezzlement
                                                                                                                                                       of
                                                                                                                                                       funds
                                                                                                                                                       of
                                                                                                                                                       the
                                                                                                                                                       Company;
                                                                                                                                                       (d)
                                                                                                                                                       any
                                                                                                                                                       material
                                                                                                                                                       breach
                                                                                                                                                       of
                                                                                                                                                       confidentiality
                                                                                                                                                       or
                                                                                                                                                       non-compete
                                                                                                                                                       obligations
                                                                                                                                                       or
                                                                                                                                                       of
                                                                                                                                                       the
                                                                                                                                                       fiduciary
                                                                                                                                                       duties
                                                                                                                                                       or
                                                                                                                                                       duties
                                                                                                                                                       of
                                                                                                                                                       care
                                                                                                                                                       to
                                                                                                                                                       the
                                                                                                                                                       Group.

 

		7.3	Upon the termination of the Services hereunder, the Consultant shall promptly deliver to the Company
or Parent all books, memoranda, plans, computer software, customer lists, records and data of every kind in whatever form or medium
relating to the business and affairs of the Group which are then in his possession or control. Upon termination of this Agreement,
for any reason, Consultant shall cooperate with the Group and use his best efforts to assist with the integration into the Group
of the person or persons who will assume Consultant’s responsibilities.

 

		8.	Deliverables and Discoveries

 

All work products resulting
from provision of the Services (the “Deliverables”) shall vest solely with the Company. Notwithstanding the
above, should any work product resulting from the provision of the Services result in the creation or development of intellectual
property which may entitle its owner to patent protection (“Discoveries”) such Discoveries shall be deemed
“Joint Inventions” under the License Agreement and be covered by the terms and conditions of the License Agreement.

 

		9.	Miscellaneous.

 

		9.1	Notice. For the purpose of this Agreement, notices and all other communications
                                                             provided for in the Agreement shall be in writing and shall be deemed to have been duly given on receipt if delivered
                                                             personally, upon receipt of a facsimile confirmation if faxed, two days after being sent by a nationally recognized
                                                             overnight                                                              carrier, three days after being mailed by certified
                                                             mail, postage prepaid, return receipt requested, or twenty four (24)
                                                             hours following the submission of an email message, addressed to the respective addresses set forth below or last given by
                                                             each party to the other, except that notice of change of address shall be effective only upon receipt. The initial
                                                             addresses of the parties for purposes of this Agreement shall be as set forth in Exhibit
                                                             A.

 

All notices, requests, demands,
payments invoices and other communications which are required or may be given under this Agreement shall be in writing and shall
be deemed to have been duly given

 

		9.2	No Waiver. No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the Consultant, the Company and the Parent. No waiver by
either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time.

 

		9.3	Governing Law. This Agreement
                                                                shall be governed by and construed and enforced in accordance
                                                                with the laws of the State of Israel without giving effect to
                                                                the principles of conflict of law thereof. Any disputes arising
                                                                under or in relation to this Agreement shall be resolved exclusively
                                                                by the competent court in Tel Aviv.

 

    	4

    	 

    
 

 

		9.4	Severability. The provisions of this Agreement shall be deemed severable and the invalidity
or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof, and any provision
deemed unenforceable by a court of competent jurisdiction shall be replaced by an enforceable provision that most nearly approximates
the intent of the unenforceable provision. In the event that a court of competent jurisdiction shall determine that any provision
of this Agreement or the application thereof is unenforceable in whole or in part because of the duration, scope or geographic
area thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration,
scope or geographic area of such provision to the extent necessary to make it enforceable, and that the Agreement in its reduced
form shall be valid and enforceable to the full extent permitted by law.

 

		9.5	Entire Agreement. This
                                                                Agreement, including the exhibits, constitutes the entire agreement
                                                                between the parties hereto and supersedes all prior agreements
                                                                understandings and arrangements, oral or written, between the
                                                                parties hereto with respect to the subject matter hereof. No agreement
                                                                or representations, oral or otherwise, express or implied,
                                                                with respect to the subject matter hereof have been made by either
                                                                party which are not expressly set forth in this Agreement.

 

		9.6	Assignment. The Company shall have the right to assign this Agreement to any affiliate or
subsidiary of the Company or any corporation or other entity owning or acquiring all or substantially all the assets and business
of the Company whether by operation of law or otherwise. Neither this Agreement nor any right or interest hereunder shall be assignable
or transferable by the Consultant, its beneficiaries or legal representatives.

 

		9.7	Interpretation. The section headings contained herein are for reference purposes only and
shall not in any way affect the meaning or interpretation of this Agreement. The preamble to this Agreement constitutes an integral
part hereof.

 

IN WITNESS WHEREOF the parties have signed this
Agreement as of the date first hereinabove set forth.

 

	Brainstorm Cell Therapeutics Ltd.	 	Consultant
	Name:	Liat Sossover	 	Name:	Dr. Daniel Offen
	Title:	CFO	 	ID#:	
	Signature:	/s/ Liat Sossover	 	Signature:	/s/ Daniel Offen
	 	 	 	 	 
	Dated:	May 14, 2012	 	Dated:	20 May 2012
	 	 	 	 	 
	Brainstorm Cell Therapeutics Inc.	 	 	 
	Name:	 Adrian Harel	 	 	 
	Title:	A. CEO	 	 	 
	Signature:	/s/ Adrian Harel	 	 	 
	 	 	 	 	 
	Dated:	9/5/2012	 	 	 

 

The undersigned, Ramot at Tel Aviv
University Ltd., confirm and consent to the terms of Section 8 of the above Consulting Agreement.

 

	Name:	Shlomo Nimrodi	 
	Title:	CEO	 
	Signature:	/s/ Shlomo Nimrodi	 
	 	 	 
	Dated:	 	 

 

    	5

    	 

    
 

Exhibit
A

 

	Name of Consultant:	Dr. Daniel Offen
	 	 
	I.D. Number:	
	 	 
	Consultant Address:	Kfar Haroeh 38955, Israel
	 	Email: danioffen@gmail.com
	 	 
	Company Address:	at 12 Bazel Street., Petach Tiqva, Israel
	 	Fax: 03-9236385
	 	Email: lsossover@brainstorm-cell.com
	 	 
	Effective Date:	January 1, 2012
	 	 
	Term:	As defined in the Agreement.
	 	 
	Services:	1.	Scientific consulting
	 	 	-          Assist, if needed, Group in characterization of MSC-NTF cells 
	 	 	-          Advise on new protocols to test the efficacy of the MSC-NTF cells
	 	 	-          Advise in planning of pre-clinical tests/efficacy studies for new applications
	 	 	-          Assist/advice in planning clinical trials that use MSC-NTF cells in new indications
	 	 	-          Provide management with required scientific advice/affairs
	 	2.	Patent filing opinion;
	 	 	-          Advice Group and the Patent law firm in patent phrasing
	 	 	-          Revise or Assist in scientific answers to Patent Office Action
	 	 	-          Assist in
    preparing scientific answers/ replies to the patent examiners
	 	3.	Potential investors:
	 	 	-          Assist preparing scientific slides to be included in presentations to investors
	 	 	-          Accompany management to meetings with potential investors to describe on Group’s inventions
	 	4.	Scientific conferences:
	 	 	-          Assist in preparing of scientific summaries, posters and Abstracts 
	 	 	-          Represent Group in/at scientific conferences
	 	5.	Scientific publications: assist the Group in phrasing scientific publications and articles
	 	6.	Present Scientific Seminars– give scientific lectures on scientific topics, that are out of the scope of Group
    activities and research.

 

    	6

    	 

    
 

	Time Devotion:	The Consultant agrees to devote approximately one day a week for the provision of the Services  
     
	 	 
	Consideration:	$3,000 per month, plus VAT, commencing as of the Effective Date, subject to receipt of applicable invoice. In addition,
    Consultant shall be entitled to $3,000 per month to be paid by way of issuance of shares of the Parent. Such issuance shall
    be made twice a year. The number of Parent shares to be issued shall be based on the Parent share market closing price on
    the date of issuance.  

 

    	7

    	 

    
 

Exhibit
B

 

CONFIDENTIALITY AND NON-COMPETITION

AGREEMENT

 

My obligations under this
Confidentiality and Non-Competition Agreement are towards Brainstorm Cell Therapeutics, Inc. and Brainstorm Cell Therapeutics
Ltd. (collectively, “Company”), and towards their present and future parent companies, subsidiaries, affiliates
and successors. All of the aforementioned entities shall be referred to collectively as the “Company’s
Entities”.

 

1.     Confidentiality

 

I will
regard and retain as confidential and will not divulge to any third party, or use for any unauthorized purposes either during or
after the term of my provision of services to the Company, any confidential information, which is proprietary of the Company or
other third parties, that I have acquired during my Services or in connection with my Services or contacts with the Company’s Entities,
without the written consent of an authorized representative of the Company. This obligation of confidence and non-use shall not
apply to:

		(a)	Information disclosed to me by the Company which, at the time of disclosure, is published or known publicly or is otherwise
in the public domain;

		(b)	Information which, after it is disclosed by the Company is published or becomes part of the public domain through no fault
of mine;

		(c)	Information disclosed to me which was known by me before the time of disclosure as evidenced by written records;

		(d)	Information which has been or hereafter is disclosed to me in good faith by a third party who was not under any obligation
of confidence or secrecy to the Company at the time of disclosure to me; and

		(e)	Information that has been independently developed at TAU or elsewhere without reference to the Confidential Information disclosed
to me as aforesaid.

 

Nothing herein shall be deemed
to limit, in any way, Ramot’s, TAU’s or my publication rights pursuant to Section 9.2 of the License Agreement with respect to
the Discoveries.

 

2.     Confidential Information

 

Confidential Information shall include,
but will not be limited to, information regarding research and development related to actual or anticipated products, inventions,
whether patentable or non-patentable, hardware, software or other products, methods of manufacture, trade secrets, business plans,
customer lists, finances, and any other data related to the business or affairs of the Company or the Company’s Entities. Confidential
information will include information in written, oral or any other form of communication.

 

3.     Return of Confidential Information

 

All materials including, but not limited
to, documents, notes, memoranda, records, diagrams, blueprints, bulletins, formulas, reports, computer programs, and any other
material of any kind and in any form, coming into my possession or prepared by me in connection with my service, are the exclusive
property of the Company (“Documents”). I agree to return to the Company all such Documents upon termination of my engagement
by the Company, unless I acquire the Company’s specific written consent to release any such Document.

 

    	8

    	 

    
 

4.    Non
Competition

 

During the term of my engagement and for
a period of 18 months following such termination, I agree that I will not, either alone or jointly with others, or as an agent,
consultant or employee of any person, firm or company, directly or indirectly, carry on or engage in any activity or business
in the field of mesenchymal stem cells for neurodegenerative diseases (the “Field of Business”). For
the avoidance of doubt I shall not accept any work offered to me by Ramot in the Field of Business during the above non compete
period.

 

The above limitation shall not apply to
the development of medicine or cell treatment from other sources, such as muscle cells or cells from the mouth, for treatment of
nuerological or psychiatric diseases.

 

5.    Non-Solicitation

 

During the term of my provision of Services
to the Company and thereafter for a period of 12 months, I will not solicit or encourage or cause others to solicit or encourage
any employees of the Company’s Entities to terminate their employment with the Company, and I will not assist any employees of
the Company’s Entities to engage with any Competing Entities.

 

6.    Non
Conflicting Obligations

 

I will not disclose to the Company any
proprietary or confidential information belonging to any third party, including any prior or current employer or contractor, unless
I have first received the written approval of that third party. 1 am allowed to be engaged by other commercial third parties for
any purpose, provided that (i) such third party’s activities and products will not compete or conflict, directly
with the Company’s activities and products solely in the field of mesenchymal stem cells secreting neurotrophic factors for the
treatment of neurodegenerative diseases. (ii) my engagement with such third parties will not conflict with my duties and undertakings
hereunder, and (iii) in my engagement by such third parties I will not infringe any of the terms and conditions of this Agreement,
including, without limitation, with respect to confidentiality, non-compete, and intellectual property rights.

 

7.    Third
Party Information

 

I
recognize that the Company has received and will in the future receive from third parties their confidential or proprietary
information, subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for
certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence and not
to disclose it to any person or entity or to use it except as necessary in carrying out my position with the Company, consistent
with the Company’s agreement with such third party.

 

8.    Breach of Obligation

 

I am aware that a breach of any of the
obligations under this Agreement will cause the Company or the Company’s Entities serious and irreparable harm, to which no monetary
compensation can be an appropriate remedy. Therefore. 1 agree that if such a breach occurs, the Company shall be entitled, without
prejudice, to take all legal means necessary, including any injunctive relief, to restrain any continuation or further breach of
this Agreement.

 

9.    Assignment

 

This Agreement may be assigned by the Company.
I may not assign or delegate my obligations under this Agreement without the Company’s prior written approval.

 

    	9

    	 

    
 

10.  Survival

 

My obligations under this Agreement
shall remain in full  force for a period of 5 years from termination, for any reason, of my engagement with the Company,
except for confidentiality which shall not be limited in time.

 

11.  Severability

 

The provisions of this Agreement shall
be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof, and any provision deemed unenforceable by a court of competent jurisdiction shall be replaced by an
enforceable provision that most nearly approximates the intent of the unenforceable provision. In the event that a court of competent
jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in whole or in part
because of the duration, scope or geographic area thereof, the parties hereto agree that said court in making such determination
shall have the power to reduce the duration, scope or geographic area of such provision to the extent necessary to make it enforceable,
and that the Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law.

 

12.  Condition to Engagement

 

I acknowledge that execution of this Agreement
is a condition to the Company’s engagement with me and the disclosure of any Confidential Information. I hereby declare and acknowledge
that my confidentiality and non-competition obligations under this Agreement are fair, reasonable, and proportional and are designed
to protect the Company’s and the Company’s Entities’ secrets and their confidential information, which constitute the essence of
their protected business and commercial advantage in which significant capital investments were made.

 

IN
WITNESS WHEREOF, I hereunto set my hand:

 

	/s/ D. Offen	 	20 May 2012
	Dr. Daniel Offen	 	Date

 

    	10

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