Document:

Exhibit 10.1

 

BRAINSTORM CELL
THERAPEUTICS INC.

 

2014 STOCK INCENTIVE
PLAN

 

	1.	Purpose

 

The purpose of
this 2014 Stock Incentive Plan (the “Plan”) of Brainstorm Cell Therapeutics Inc., a Delaware corporation
(the “Company”), is to advance the interests of the Company’s stockholders by enhancing the Company’s
ability to attract, retain and motivate persons who are expected to make important contributions to the Company and by providing
such persons with equity ownership opportunities and performance-based incentives that are intended to better align the interests
of such persons with those of the Company’s stockholders. Except where the context otherwise requires, the term “Company”
shall include any of the Company’s present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of
the Internal Revenue Code of 1986, as amended, and any regulations thereunder (the “Code”) and any other
business venture (including, without limitation, joint venture or limited liability company) in which the Company has a controlling
interest, as determined by the Board of Directors of the Company (the “Board”).

 

	2.	Eligibility

 

All of the Company’s
employees, officers and directors, as well as consultants and advisors to the Company (as such terms are defined and interpreted
for purposes of Form S-8 under the Securities Act of 1933, as amended (the “Securities Act”), or any
successor form) are eligible to be granted Awards under the Plan. Each person who is granted an Award under the Plan is deemed
a “Participant.” “Award” means Options (as defined in Section 5) and Restricted
Stock (as defined in Section 6).

 

	3.	Administration and Delegation

 

(a) Administration
by Board of Directors. The Plan will be administered by the Board. The Board shall have authority to grant Awards and to adopt,
amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board
may construe and interpret the terms of the Plan and any Award agreements entered into under the Plan. The Board may correct any
defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem
expedient and it shall be the sole and final judge of such expediency. All decisions by the Board shall be made in the Board’s
sole discretion and shall be final and binding on all persons having or claiming any interest in the Plan or in any Award.

 

(b) Appointment
of Committees. To the extent permitted by applicable law, the Board may delegate any or all of its powers under the Plan to
one or more committees or subcommittees of the Board (a “Committee”). All references in the Plan to the
“Board” shall mean the Board or a Committee of the Board or the officers referred to in Section 3(c)
to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee or officers.

 

(c) Delegation
to Officers. To the extent permitted by applicable law, the Board may delegate to one or more officers of the Company the power
to grant Options and other Awards that constitute rights under Delaware law (subject to any limitations under the Plan) to employees
or officers of the Company and to exercise such other powers under the Plan as the Board may determine, provided that
the Board shall fix the terms of such Awards to be granted by such officers (including the exercise price of such Awards, which
may include a formula by which the exercise price will be determined) and the maximum number of shares subject to such Awards that
the officers may grant; provided further, however, that no officer shall be authorized to grant such Awards to any
“executive officer” of the Company (as defined by Rule 3b-7 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) or to any “officer” of the Company (as defined by Rule 16a-1 under the Exchange
Act). The Board may not delegate authority under this Section 3(c) to grant Restricted Stock, unless Delaware law then permits
such delegation.

 

    	 

    	 

    

 

(d) Awards
to Non-Employee Directors. Awards to non-employee directors may be granted and administered only by a Committee, all of the
members of which are independent directors as defined by Section 5605(a)(2) of the NASDAQ Marketplace Rules.

 

	4.	Stock Available for Awards

 

(a) Number
of Shares; Share Counting.

 

(1) Authorized
Number of Shares. Subject to adjustment under Section 7, Awards may be made under the Plan, any or all of which Awards
may be in the form of Incentive Stock Options (as defined in Section 5(b)) for up to 9,000,000 shares of common stock, $0.00005
par value per share, of the Company (the “Common Stock”). Shares issued under the Plan may consist in
whole or in part of authorized but unissued shares or treasury shares.

 

(2) Share
Counting. For purposes of counting the number of shares available for the grant of Awards under the Plan and under the sub-limits
contained in Section 4(b)(2):

 

(A) if any Award
(i) expires or is terminated, surrendered or canceled without having been fully exercised or is forfeited in whole or in part
(including as the result of shares of Common Stock subject to such Award being repurchased by the Company at the original issuance
price pursuant to a contractual repurchase right) or (ii) results in any Common Stock not being issued, the unused Common
Stock covered by such Award shall again be available for the grant of Awards; provided, however, that in the case of
Incentive Stock Options, the foregoing shall be subject to any limitations under the Code;

 

(B) shares of
Common Stock delivered (either by actual delivery, attestation, or net exercise) to the Company by a Participant to (i) purchase
shares of Common Stock upon the exercise of an Award or (ii) satisfy tax withholding obligations (including shares retained
from the Award creating the tax obligation) shall not be added back to the number of shares available for the future grant of Awards;

 

(C) shares of
Common Stock repurchased by the Company on the open market using the proceeds from the exercise of an Award shall not increase
the number of shares available for future grant of Awards; and

 

(D) the pool
of shares available for issuance under this Plan is the same pool of shares reserved and available for issuance under the Brainstorm
Cell Therapeutics Inc. 2014 Global Share Option Plan Global Plan (the “Global Plan”) and, accordingly,
shares issued pursuant to awards under either the Global Plan or this Plan shall reduce the number of shares available for future
issuance under each plan.

 

(b) Sub-limits.
Subject to adjustment under Section 7, the following sub-limits on the number of shares subject to Awards shall apply:

 

(1) Section 162(m)
Per-Participant Limit. The maximum number of shares of Common Stock with respect to which Awards may be granted to any Participant
under the Plan shall be 1,000,000 per calendar year. The per Participant limit described in this Section 4(b)(1) shall be
construed and applied consistently with Section 162(m) of the Code or any successor provision thereto, and the regulations
thereunder (“Section 162(m)”).

 

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(c) Substitute
Awards. In connection with a merger or consolidation of an entity with the Company or the acquisition by the Company of property
or stock of an entity, the Board may grant Awards in substitution for any options or other stock or stock-based awards granted
by such entity or an affiliate thereof. Substitute Awards may be granted on such terms as the Board deems appropriate in the circumstances,
notwithstanding any limitations on Awards contained in the Plan. Substitute Awards shall not count against the overall share limit
set forth in Section 4(a)(1) or any sub-limits contained in the Plan, except as may be required by reason of Section 422
and related provisions of the Code.

 

	5.	Stock Options

 

(a) General.
The Board may grant options to purchase Common Stock (each, an “Option”) and determine the number of
shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable
to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers necessary
or advisable.

 

(b) Incentive
Stock Options. An Option that the Board intends to be an “incentive stock option” as defined in Section 422
of the Code (an “Incentive Stock Option”) shall only be granted to employees of Brainstorm Cell Therapeutics
Inc., any of Brainstorm Cell Therapeutics Inc.’s present or future parent or subsidiary corporations as defined in Sections
424(e) or (f) of the Code, and any other entities the employees of which are eligible to receive Incentive Stock Options under
the Code, and shall be subject to and shall be construed consistently with the requirements of Section 422 of the Code. An
Option that is not intended to be an Incentive Stock Option shall be designated a “Nonstatutory Stock Option.”
The Company shall have no liability to a Participant, or any other party, if an Option (or any part thereof) that is intended to
be an Incentive Stock Option is not an Incentive Stock Option or if the Company converts an Incentive Stock Option to a Nonstatutory
Stock Option.

 

(c) Exercise
Price. The Board shall establish the exercise price of each Option and specify the exercise price in the applicable Option
agreement. The exercise price shall be not less than 100% of the fair market value per share of Common Stock (110% in the case
of an Incentive Stock Option granted to a Ten Percent Owner) as determined by (or in a manner approved by) the Board (“Fair
Market Value”) on the date the Option is granted; provided that if the Board approves the grant
of an Option with an exercise price to be determined on a future date, the exercise price shall be not less than 100% of the Fair
Market Value on such future date (110% in the case of an Incentive Stock Option granted to a Ten Percent Owner). “Ten
Percent Owner” means an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d)
of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary
corporation.

 

(d) Duration
of Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may specify
in the applicable Option agreement; provided, however, that no Option will be granted with a term in excess of 10 years
(5 years in the case of an Incentive Stock Option granted to a Ten Percent Owner).

 

(e) Exercise
of Options. Options may be exercised by delivery to the Company of a notice of exercise in a form (which may be electronic)
approved by the Company, together with payment in full (in the manner specified in Section 5(f)) of the exercise price for
the number of shares for which the Option is exercised. Shares of Common Stock subject to the Option will be delivered by the Company
as soon as practicable following exercise.

 

(f) Payment
Upon Exercise. Common Stock purchased upon the exercise of an Option granted under the Plan shall be paid for as follows:

 

(1) in cash,
by check or by wire transfer, payable to the order of the Company;

 

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(2) except as
may otherwise be provided in the applicable Option agreement or approved by the Board, in its sole discretion, by (i) delivery
of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to
pay the exercise price and any required tax withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable
and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the
exercise price and any required tax withholding;

 

(3) to the extent
provided for in the applicable Option agreement or approved by the Board, in its sole discretion, by delivery (either by actual
delivery or attestation) of shares of Common Stock owned by the Participant valued at their Fair Market Value, provided (i) such
method of payment is then permitted under applicable law, (ii) such Common Stock, if acquired directly from the Company, was
owned by the Participant for such minimum period of time, if any, as may be established by the Board in its discretion and (iii) such
Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements;

 

(4) to the extent
provided for in the applicable Nonstatutory Stock Option agreement or approved by the Board in its sole discretion, by delivery
of a notice of “net exercise” to the Company, as a result of which the Participant would receive (i) the number
of shares underlying the portion of the Option being exercised, less (ii) such number of shares as is equal to (A) the
aggregate exercise price for the portion of the Option being exercised divided by (B) the Fair Market Value on the date of
exercise;

 

(5) to the extent
permitted by applicable law and provided for in the applicable Option agreement or approved by the Board, in its sole discretion,
by payment of such other lawful consideration as the Board may determine; or

 

(6) by any combination
of the above permitted forms of payment.

 

(g) Limitation
on Repricing. Unless such action is approved by the Company’s stockholders, the Company may not (except as provided for
under Section 7): (1) amend any outstanding Option granted under the Plan to provide an exercise price per share that
is lower than the then-current exercise price per share of such outstanding Option, (2) cancel any outstanding option (whether
or not granted under the Plan) and grant in substitution therefor new Awards under the Plan (other than Awards granted pursuant
to Section 4(c)) covering the same or a different number of shares of Common Stock and having an exercise price per share
lower than the then-current exercise price per share of the cancelled option, (3) cancel in exchange for a cash payment any
outstanding Option with an exercise price per share above the then-current Fair Market Value, other than pursuant to Section 7,
or (4) take any other action under the Plan that constitutes a “repricing” within the meaning of the rules of
the NASDAQ Stock Market (“NASDAQ”).

 

(h) No
Reload Options. No Option granted under the Plan shall contain any provision entitling the Participant to the automatic grant
of additional Options in connection with any exercise of the original Option.

 

(i) No
Dividend Equivalents. No option shall provide for the payment or accrual of an amount equal to any dividends or other distributions
declared and paid on an equal number of outstanding shares of Common Stock (“Dividend Equivalents”).

 

	6.	Restricted Stock

 

(a) General.
The Board may grant Awards (“Restricted Stock Awards”) entitling recipients to acquire shares of Common
Stock (“Restricted Stock”), subject to the right of the Company to repurchase all or part of such shares
at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient
in the event that conditions specified by the Board in the applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award.

 

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(b) Terms
and Conditions for Restricted Stock Awards. The Board shall determine the terms and conditions of a Restricted Stock Award,
including the conditions for vesting and repurchase (or forfeiture) and the issue price, if any.

 

(c) Additional
Provisions Relating to Restricted Stock.

 

(1) Dividends.
A Participant holding shares of Restricted Stock will be entitled to all ordinary cash dividends paid with respect to shares of
Common Stock, unless otherwise provided by the Board. Unless otherwise provided in the applicable Award agreement, any such dividends
(whether paid in cash, stock or property) declared and paid by the Company with respect to shares of Restricted Stock (“Accrued
Dividends”) shall be paid to the Participant only if and when such shares become free from the restrictions on transferability
and forfeitability that apply to such shares. Each payment of Accrued Dividends will be made no later than the end of the calendar
year in which the dividends are paid to stockholders of that class of stock or, if later, the 15th day of the third month following
the lapsing of the restrictions on transferability and the forfeitability provisions applicable to the underlying shares of Restricted
Stock.

 

(2) Termination
of Employment. Except as may otherwise be provided by the Board either in the Award agreement or, subject to Section 8 below,
in writing after the Award agreement is issued, if any, if a Participant’s employment (or other service relationship) with
the Company terminates for any reason, any Restricted Stock that has not vested at the time of termination shall automatically
and without any requirement of notice to such Participant from or other action by or on behalf of, the Company be deemed to have
been reacquired by the Company at its original purchase price from such Participant or such Participant’s legal representative
simultaneously with such termination of employment (or other service relationship), and thereafter shall cease to represent any
ownership of the Company by the Participant or rights of the Participant as a stockholder. Following such deemed reacquisition
of unvested Restricted Stock that are represented by physical certificates, a Participant shall surrender such certificates to
the Company upon request without consideration.

 

(3) Stock
Certificates. The Company may require that any stock certificates issued in respect of shares of Restricted Stock, as well
as dividends or distributions paid on such Restricted Stock, shall be deposited in escrow by the Participant, together with a stock
power endorsed in blank, with the Company (or its designee). At the expiration of the applicable restriction periods, the Company
(or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant
has died, to his or her Designated Beneficiary. “Designated Beneficiary” means (i) the beneficiary
designated, in a manner determined by the Board, by a Participant to receive amounts due or exercise rights of the Participant
in the event of the Participant’s death or (ii) in the absence of an effective designation by a Participant, the Participant’s
estate.

 

	7.	Adjustments for Changes in Common Stock and Certain Other Events

 

(a) Changes
in Capitalization. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares,
reclassification of shares, spin-off or other similar change in capitalization or event, or any dividend or distribution to holders
of Common Stock other than an ordinary cash dividend, (i) the number and class of securities available under the Plan, (ii) the
share counting rules and sub-limits set forth in Sections 4(a) and 4(b), (iii) the number and class of securities and exercise
price per share of each outstanding Option, and (iv) the number of shares subject to and the repurchase price per share subject
to each outstanding Restricted Stock Award, shall be equitably adjusted by the Company (or substituted Awards may be made, if applicable)
in the manner determined by the Board. Without limiting the generality of the foregoing, in the event the Company effects a split
of the Common Stock by means of a stock dividend and the exercise price of and the number of shares subject to an outstanding Option
are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then an
optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to
receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise,
notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend.

 

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(b) Reorganization
Events.

 

(1) Definition.
A “Reorganization Event” shall mean: (a) a merger, acquisition or reorganization of the Company with
one or more other entities in which the Company is not the surviving entity or resulting in the Company being the surviving entity
and there is a change in the ownership of Common Stock of the Company, such that another person or entity owning fifty percent
(50%) or more of the outstanding voting power of the Company’s securities by virtue of the transaction, (b) a sale of all
or substantially all of the assets or shares of the Company to another entity, or (c) any liquidation or dissolution of the
Company.

 

(2) Consequences
of a Reorganization Event on Awards Other than Restricted Stock.

 

(A) In connection
with a Reorganization Event, the Board may take any one or more of the following actions as to all or any (or any portion of) outstanding
Awards other than Restricted Stock on such terms as the Board determines (except to the extent specifically provided otherwise
in an applicable Award agreement or another agreement between the Company and the Participant): (i) provide that such Awards
shall be assumed, or substantially equivalent Awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), (ii) upon written notice to a Participant, provide that all of the Participant’s unexercised Awards will terminate
immediately prior to the consummation of such Reorganization Event unless exercised by the Participant (to the extent then exercisable)
within a specified period following the date of such notice, (iii) provide that outstanding Awards shall become exercisable,
realizable, or deliverable, or restrictions applicable to an Award shall lapse, in whole or in part prior to or upon such Reorganization
Event, (iv) in the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation
thereof a cash payment for each share surrendered in the Reorganization Event (the “Acquisition Price”),
make or provide for a cash payment to Participants with respect to each Award held by a Participant equal to (A) the number
of shares of Common Stock subject to the vested portion of the Award (after giving effect to any acceleration of vesting that occurs
upon or immediately prior to such Reorganization Event) multiplied by (B) the excess, if any, of (I) the Acquisition
Price over (II) the exercise, measurement or purchase price of such Award and any applicable tax withholdings, in exchange for
the termination of such Award, (v) provide that, in connection with a liquidation or dissolution of the Company, Awards shall
convert into the right to receive liquidation proceeds (if applicable, net of the exercise, measurement or purchase price thereof
and any applicable tax withholdings) and (vi) any combination of the foregoing. In taking any of the actions permitted under
this Section 7(b)(2), the Board shall not be obligated by the Plan to treat all Awards, all Awards held by a Participant,
or all Awards of the same type, identically.

 

(B) For purposes
of Section 7(b)(2)(A)(i), an Award (other than Restricted Stock) shall be considered assumed if, following consummation of
the Reorganization Event, such Award confers the right to purchase or receive pursuant to the terms of such Award, for each share
of Common Stock subject to the Award immediately prior to the consummation of the Reorganization Event, the consideration (whether
cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share
of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided,
however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring
or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation,
provide for the consideration to be received upon the exercise or settlement of the Award to consist solely of such number of shares
of common stock of the acquiring or succeeding corporation (or an affiliate thereof) that the Board determined to be equivalent
in value (as of the date of such determination or another date specified by the Board) to the per share consideration received
by holders of outstanding shares of Common Stock as a result of the Reorganization Event.

 

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(3) Consequences
of a Reorganization Event on Restricted Stock. Upon the occurrence of a Reorganization Event other than a liquidation or dissolution
of the Company, the repurchase and other rights of the Company with respect to outstanding Restricted Stock shall inure to the
benefit of the Company’s successor and shall, unless the Board determines otherwise, apply to the cash, securities or other
property which the Common Stock was converted into or exchanged for pursuant to such Reorganization Event in the same manner and
to the same extent as they applied to such Restricted Stock; provided, however, that the Board may provide
for termination or deemed satisfaction of such repurchase or other rights under the instrument evidencing any Restricted Stock
or any other agreement between a Participant and the Company, either initially or by amendment. Upon the occurrence of a Reorganization
Event involving the liquidation or dissolution of the Company, except to the extent specifically provided to the contrary in the
instrument evidencing any Restricted Stock or any other agreement between a Participant and the Company, all restrictions and conditions
on all Restricted Stock then outstanding shall automatically be deemed terminated or satisfied.

 

	8.	General Provisions Applicable to Awards

 

(a) Transferability
of Awards. Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution or, other than in the
case of an Incentive Stock Option, pursuant to a qualified domestic relations order, and, during the life of the Participant, shall
be exercisable only by the Participant; provided, however, that the Board may permit or provide in an Award for the
gratuitous transfer of the Award by the Participant to or for the benefit of any immediate family member, family trust or other
entity established for the benefit of the Participant and/or an immediate family member thereof if the Company would be eligible
to use a Form S-8 under the Securities Act for the registration of the sale of the Common Stock subject to such Award to such proposed
transferee; provided further, that the Company shall not be required to recognize any such permitted transfer until
such time as such permitted transferee shall, as a condition to such transfer, deliver to the Company a written instrument in form
and substance satisfactory to the Company confirming that such transferee shall be bound by all of the terms and conditions of
the Award. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees.
A Participant’s rights to sell Common Stock may be subject to certain limitations (including a lock-up period), as will be
requested by the Company or its underwriters. Without derogating from the scope of the above, the Committee may designate certain
periods, at its reasonable discretion, with respect to all or certain groups of Participants and/or with respect to all or certain
types of Awards, during which the vesting and/or exercise of Awards and/or sale of Common Stock shall be restricted or prohibited,
including without limitation, in order to comply with applicable laws in any relevant jurisdiction and/or rules of any exchange
on which the Company’s shares are traded (“Blackout Periods”). During such Blackout Periods, Participants will
not be able to exercise the Options (or other Awards) and/or receive and/or sell the Common Stock held by or on behalf of the Participants
and the Company shall not bear any liability to Participants for any claim, loss or liability that may result from such restrictions.
For the avoidance of doubt, nothing contained in this Section 8(a) shall be deemed to restrict a transfer to the Company.

 

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(b) Documentation.
Each Award shall be evidenced in such form (written, electronic or otherwise) as the Board shall determine. Each Award may contain
terms and conditions in addition to those set forth in the Plan.

 

(c) Board
Discretion. Except as otherwise provided by the Plan, each Award may be made alone or in addition or in relation to any other
Award. The terms of each Award need not be identical, and the Board need not treat Participants uniformly.

 

(d) Termination
of Status. The Board shall determine the effect on an Award of the disability, death, retirement, termination or other cessation
of employment, authorized leave of absence or other change in the employment or other status of a Participant and the extent to
which, and the period during which, the Participant, or the Participant’s legal representative, conservator, guardian or
Designated Beneficiary, may exercise rights under the Award.

 

(e) Withholding.
The Participant must satisfy all applicable federal, state, and local or other income and employment tax withholding obligations
before the Company will deliver stock certificates or otherwise recognize ownership of Common Stock under an Award. The Company
may decide to satisfy the withholding obligations through additional withholding on salary or wages. If the Company elects not
to or cannot withhold from other compensation, the Participant must pay the Company the full amount, if any, required for withholding
or have a broker tender to the Company cash equal to the withholding obligations. Payment of withholding obligations is due before
the Company will issue any shares on exercise, vesting or release from forfeiture of an Award or at the same time as payment of
the exercise or purchase price, unless the Company determines otherwise. If provided for in an Award or approved by the Board in
its sole discretion, a Participant may satisfy such tax obligations in whole or in part by delivery (either by actual delivery
or attestation) of shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their
Fair Market Value; provided, however, except as otherwise provided by the Board, that the total tax withholding where
stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding obligations
(based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable
to such supplemental taxable income). Shares used to satisfy tax withholding requirements cannot be subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements.

 

(f) Amendment
of Award. Except as otherwise provided in Section 5(g) with respect to repricings, Section 8(i) with respect to Performance
Awards or Section 9(d) with respect to actions requiring stockholder approval, the Board may amend, modify or terminate any
outstanding Award, including but not limited to, substituting therefor another Award of the same or a different type, changing
the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option. The Participant’s
consent to such action shall be required unless (i) the Board determines that the action, taking into account any related
action, does not materially and adversely affect the Participant’s rights under the Plan or (ii) the change is permitted
under Section 7.

 

(g) Conditions
on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously issued or delivered under the Plan until (i) all conditions of the Award have been met
or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and regulations
and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered
to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations.

 

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(h) Acceleration.
The Board may at any time provide that any Award shall become immediately exercisable in whole or in part, free of some or all
restrictions or conditions, or otherwise realizable in whole or in part, as the case may be.

 

(i) Performance
Awards.

 

(1) Grants. Restricted
Stock Awards under the Plan may be made subject to the achievement of performance goals pursuant to this Section 8(i) (“Performance
Awards”).

 

(2) Committee.
Grants of Performance Awards to any Covered Employee (as defined below) intended to qualify as “performance-based compensation”
under Section 162(m) (“Performance-Based Compensation”) shall be made only by a Committee (or a
subcommittee of a Committee) comprised solely of two or more directors eligible to serve on a committee making Awards qualifying
as “performance-based compensation” under Section 162(m). In the case of such Awards granted to Covered Employees,
references to the Board or to a Committee shall be treated as referring to such Committee (or subcommittee). “Covered
Employee” shall mean any person who is, or whom the Committee, in its discretion, determines may be, a “covered
employee” under Section 162(m)(3) of the Code.

 

(3) Performance
Measures. For any Award that is intended to qualify as Performance-Based Compensation, the Committee shall specify that the
degree of granting, vesting and/or payout shall be subject to the achievement of one or more objective performance measures established
by the Committee, which shall be based on the relative or absolute attainment of specified levels of one or any combination of
the following, which may be determined pursuant to generally accepted accounting principles (“GAAP”)
or on a non-GAAP basis, as determined by the Committee: (a) earnings per share, (b) return on average equity or average
assets with respect to a pre-determined peer group, (c) earnings, (d) earnings growth, (e) revenues, (f) expenses,
(g) stock price, (h) market share, (i) return on sales, assets, equity or investment, (j) regulatory compliance,
(k) achievement of balance sheet or income statement objectives, (l) total stockholder return, (m) net operating
profit after tax, (n) pre-tax or after tax income, (o) cash flow, (p) achievement of research, development, clinical
or regulatory milestones, (q) product sales, (r) business development activities, (s) the entry into an arrangement
or agreement with a third party for the development, commercialization, marketing or distribution of products, services or technologies,
or for conducting a research program to discover and develop a product, service or technology, and/or the achievement of milestones
under such arrangement or agreement, including events that trigger an obligation or payment right, (t) achievement of domestic
and international regulatory milestones, including the submission of filings required to advance products, services and technologies
in clinical development and the achievement of approvals by regulatory authorities relating to the commercialization of products,
services and technologies, (u) the achievement of discovery, preclinical and clinical stage scientific objectives, discoveries
or inventions for products, services and technologies under research and development, (v) the entry into or completion of
a phase of clinical development for any product, service or technology, such as the entry into or completion of phase 1, 2 and/or
3 clinical trials, (w) the consummation of debt or equity financing transactions, or acquisitions of business, technologies
and assets, (x) new product or service releases, (y) specified levels of product sales, net income, earnings before or
after discontinued operations, interest, taxes, depreciation and/or amortization, operating profit before or after discontinued
operations and/or taxes, sales, sales growth, earnings growth, cash flow or cash position, gross margins, stock price, market share,
return on sales, assets, equity or investment and (z) improvement of financial ratings. Such goals may reflect absolute entity
or business unit performance or a relative comparison to the performance of a peer group of entities or other external measure
of the selected performance criteria and may be absolute in their terms or measured against or in relationship to other companies
comparably, similarly or otherwise situated. The Committee may specify that such performance measures shall be adjusted to exclude
any one or more of (i) extraordinary items, (ii) gains or losses on the dispositions of discontinued operations, (iii) the
cumulative effects of changes in accounting principles, (iv) the writedown of any asset, (v) fluctuation in foreign currency
exchange rates, and (vi) charges for restructuring and rationalization programs. Such performance measures: (i) may vary
by Participant and may be different for different Awards; (ii) may be particular to a Participant or the department, branch,
line of business, subsidiary or other unit in which the Participant works and may cover such period as may be specified by the
Committee; and (iii) shall be set by the Committee within the time period prescribed by, and shall otherwise comply with the
requirements of, Section 162(m). Awards that are not intended to qualify as Performance-Based Compensation may be based on
these or such other performance measures as the Board may determine.

 

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(4) Adjustments.
Notwithstanding any provision of the Plan, with respect to any Performance Award that is intended to qualify as Performance-Based
Compensation, the Committee may adjust downwards, but not upwards, the cash or number of shares payable pursuant to such Award,
and the Committee may not waive the achievement of the applicable performance measures except in the case of the death or disability
of the Participant or a change in control of the Company.

 

(5) Other.
The Committee shall have the power to impose such other restrictions on Performance Awards as it may deem necessary or appropriate
to ensure that such Awards satisfy all requirements for Performance-Based Compensation. Dividend Equivalents will be subject to
the same restrictions on transfer and forfeitability as the Performance Awards with respect to which such Dividend Equivalents
were granted.

 

	9.	Miscellaneous

 

(a) No
Right To Employment or Other Status. No person shall have any claim or right to be granted an Award by virtue of the adoption
of the Plan, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any
other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its
relationship with a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable
Award.

 

(b) No
Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have
any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming
the record holder of such shares.

 

(c) Effective
Date and Term of Plan. The Plan shall become effective on the date the Plan is approved by the Company’s stockholders
(the “Effective Date”). No Awards shall be granted under the Plan after the expiration of 10 years from
the Effective Date, but Awards previously granted may extend beyond that date.

 

(d) Amendment
of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time provided that (i) to the
extent required by Section 162(m), no Award granted to a Participant that is intended to comply with Section 162(m) after
the date of such amendment shall become exercisable, realizable or vested, as applicable to such Award, unless and until the Company’s
stockholders approve such amendment in the manner required by Section 162(m); (ii) no amendment that would require stockholder
approval under the rules of NASDAQ may be made effective unless and until the Company’s stockholders approve such amendment;
and (iii) if the NASDAQ amends its corporate governance rules so that such rules no longer require stockholder approval of
NASDAQ “material amendments” to equity compensation plans, then, from and after the effective date of such amendment
to the NASDAQ rules, no amendment to the Plan (A) materially increasing the number of shares authorized under the Plan (other
than pursuant to Section 4(c) or 7), (B) expanding the types of Awards that may be granted under the Plan, or (C) materially
expanding the class of participants eligible to participate in the Plan shall be effective unless and until the Company’s
stockholders approve such amendment. In addition, if at any time the approval of the Company’s stockholders is required as
to any other modification or amendment under Section 422 of the Code or any successor provision with respect to Incentive
Stock Options, the Board may not effect such modification or amendment without such approval. Unless otherwise specified in the
amendment, any amendment to the Plan adopted in accordance with this Section 9(d) shall apply to, and be binding on the holders
of, all Awards outstanding under the Plan at the time the amendment is adopted, provided the Board determines that such amendment,
taking into account any related action, does not materially and adversely affect the rights of Participants under the Plan.

 

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(e) Authorization
of Sub-Plans (including for Grants to non-U.S. Employees). The Board may from time to time establish one or more sub-plans
under the Plan for purposes of satisfying applicable securities, tax or other laws of various jurisdictions. The Board shall establish
such sub-plans by adopting supplements to the Plan containing (i) such limitations on the Board’s discretion under the
Plan as the Board deems necessary or desirable or (ii) such additional terms and conditions not otherwise inconsistent with
the Plan as the Board shall deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the
Plan, but each supplement shall apply only to Participants within the affected jurisdiction and the Company shall not be required
to provide copies of any supplement to Participants in any jurisdiction which is not the subject of such supplement.

 

(f) Compliance
with Section 409A of the Code. Except as provided in individual Award agreements initially or by amendment, if and to
the extent (i) any portion of any payment, compensation or other benefit provided to a Participant pursuant to the Plan in
connection with his or her employment termination constitutes “nonqualified deferred compensation” within the meaning
of Section 409A of the Code and (ii) the Participant is a specified employee as defined in Section 409A(a)(2)(B)(i)
of the Code, in each case as determined by the Company in accordance with its procedures, by which determinations the Participant
(through accepting the Award) agrees that he or she is bound, such portion of the payment, compensation or other benefit
shall not be paid before the day that is six months plus one day after the date of “separation from service” (as determined
under Section 409A of the Code) (the “New Payment Date”), except as Section 409A of the Code
may then permit. The aggregate of any payments that otherwise would have been paid to the Participant during the period between
the date of separation from service and the New Payment Date shall be paid to the Participant in a lump sum on such New Payment
Date, and any remaining payments will be paid on their original schedule.

 

The Company makes no representations
or warranty and shall have no liability to the Participant or any other person if any provisions of or payments, compensation or
other benefits under the Plan are determined to constitute nonqualified deferred compensation subject to Section 409A of the
Code but do not to satisfy the conditions of that section.

 

(g) Limitations
on Liability. Notwithstanding any other provisions of the Plan, no individual acting as a director,
officer, employee or agent of the Company will be liable to any Participant, former Participant, spouse, beneficiary, or any other
person for any claim, loss, liability, or expense incurred in connection with the Plan, nor will such individual be personally
liable with respect to the Plan because of any contract or other instrument he or she executes in his or her capacity as a director,
officer, employee or agent of the Company. The Company will indemnify and hold harmless each director, officer, employee or agent
of the Company to whom any duty or power relating to the administration or interpretation of the Plan has been or will be delegated,
against any cost or expense (including attorneys’ fees) or liability (including any sum paid in settlement of a claim with
the Board’s approval) arising out of any act or omission to act concerning the Plan unless arising out of such person’s
own fraud or bad faith.

 

(h) Governing
Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws
of the State of Delaware, excluding choice-of-law principles of the law of such state that would require the application of the
laws of a jurisdiction other than the State of Delaware.

 

    	11Exhibit 10.2

 

 

BRAINSTORM CELL THERAPEUTICS INC.

2014 GLOBAL SHARE OPTION PLAN

 

This plan, as amended from time to time, shall be known as the
BrainStorm Cell Therapeutics Inc. 2014 Global Share Option Plan (the “Plan”).

 

		1.	PURPOSE OF THE PLAN

 

The Plan is intended to provide an incentive to retain, in the
employ of the Company (as defined below) and its affiliates, persons of training, experience and ability; to attract new employees,
officers, directors, consultants and service providers; to encourage the sense of proprietorship of such persons; and to stimulate
the active interest of such persons in the development and financial success of the Company by providing them with opportunities
to purchase shares in the Company.

 

		2.	DEFINITIONS

 

For purposes of interpreting the Plan and related documents
(including the Award Agreement and its appendixes), the following definitions shall apply:

 

		2.1	“Award” shall mean a grant of
Options under the Plan or allotment of Shares or other equity-based award hereunder. All Awards shall be confirmed by an Award
Agreement, and subject to the terms and conditions of such Award Agreement.

 

	 	2.1A	“Award Agreement” means the share Award Agreement between the Company and a Participant that evidences and sets out the terms and conditions of an Award.

 

	 	2.1B	“Board” means the Board of Directors of the Company.

 

	 	2.2	“Cause” means (i) conviction of any felony involving moral turpitude or affecting the Company or its affiliates; (ii) any refusal to carry out a reasonable directive of the Company’s Chief Executive Officer, Board or the Participant’s direct supervisor, which involves the business of the Company or its affiliates and was capable of being lawfully performed; (iii) embezzlement of funds of the Company or its affiliates; (iv) any breach of the Participant’s fiduciary duties or duties of care of the Company or its affiliates; including without limitation disclosure of confidential information of the Company or its affiliates; and (v) any conduct (other than conduct in good faith) reasonably determined by the Board to be materially detrimental to the Company or its affiliates.

 

	 	2.3	“Chairman” means the Chairman of the Committee.

 

	 	2.4	“Committee” means a share option compensation committee of the Board, designated from time to time by the resolution of the Board, which shall consist of no fewer than two members of the Board.

 

	 	2.5	“Company” means BrainStorm Cell Therapeutics Inc., a Delaware State company.

 

	 	2.6	“Date of Grant” means the date determined by the Board or authorized Committee as set forth in the Award Agreement.

 

	 	2.7	“Employee” means a person who is employed by the Company or any affiliate.

 

	 	2.8	“Expiration date” means the date upon which an Award shall expire, as set forth, with respect to Options, in Section 8.2 of the Plan, and with respect to Restricted Stock, in Section 13A.7 of the Plan.

 

	 	2.9	“Fair Market Value” means as of any date, the value of a Share determined as follows:

 

	 	(i)	If the Shares are listed on any established stock exchange or a national market system, including without limitation the Tel Aviv Stock Exchange, the NASDAQ Global Select, Global Market or Capital Market shall be the last reported sale price for such Shares (or the highest closing bid, if no sales were reported), as quoted on such exchange or system for the last market trading day prior to time of determination, as reported in The Wall Street Journal, or such other source as the Board deems reliable;

 

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	 	(ii)	If the Shares are regularly quoted by one or more recognized securities dealers, but selling prices are not reported, the Fair Market Value shall be the mean between the highest bid and lowest asked prices for the Shares on the last market trading day prior to the day of determination; or

 

	 	(iii)	In the absence of an established market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Board.

 

	 	2.10	Reserved

 

	 	2.11	“Option” means an option to purchase one or more Shares pursuant to the Plan.

 

	 	2.12	“Optionee” means a person who receives or holds an Option under the Plan.

 

	 	2.12A	“Participant” means a person who receives or holds an Award under the Plan, including, to the extent applicable, Optionees.

 

	 	2.13	Reserved

 

	 	2.14	“Plan” means the Company’s 2014 Global Share Option Plan.

 

	 	2.15	“Purchase Price” means the price for each Share subject to an Award.

 

	 	2.16	“Restricted Stock” means an Award of Shares under this Plan that is subject to the terms and conditions of Section 13A.

 

	 	2.16A	“Service Provider” means a director, consultant or adviser of the Company or any affiliate, or any other person who is not an Employee.

 

	 	2.17	“Share” means the common stock, US$0.00005 par value, of the Company.

 

	 	2.18	“Successor Company” means any entity into which the Company is merged to or by which the Company is acquired.

 

	 	2.19	“Transaction” means (i) merger, acquisition or reorganization of the Company with one or more other entities in which the Company is not the surviving entity or resulting in the Company being the surviving entity and there is a change in the ownership of Shares of the Company, such that another person or entity owning fifty percent (50%) or more of the outstanding voting power of the Company’s securities by virtue of the transaction, (ii) a sale of all or substantially all of the assets or shares of the Company to another entity. 

 

	 	2.20	“Vested Option” means any Option, which has already been vested according to the Vesting Dates.

 

	 	2.21	“Vesting Dates” means, as determined by the Board or authorized Committee, the date as of which the Participant shall be entitled to exercise Options or part of the Options as set forth in Section 9 of the Plan.

 

		3.	ADMINISTRATION OF THE PLAN

 

	 	3.1	The Board shall have the power to administer the Plan. To the extent permitted under applicable law, the Board may delegate its powers under the Plan, or any part thereof, to the Committee, in which case, any reference to the Board in the Plan with respect to the rights so delegated shall be construed as reference to the Committee. Notwithstanding the foregoing, the Board shall automatically have residual authority (i) if no Committee shall be constituted, (ii) with respect to rights not delegated by the Board to the Committee, or (iii) if such Committee shall cease to operate for any reason whatsoever.

 

	 	3.2	The Committee, if appointed, shall select one of its members as its Chairman and shall hold its meetings at such times and places as the Chairman shall determine. The Committee shall keep records of its meetings and shall make such rules and regulations for the conduct of its business as it shall deem advisable.

 

	 	3.3	The Committee shall have full power and authority subject to the approval of the Board to the extent required under applicable law (and subject further to applicable laws): (i) to designate Participants; (ii) to determine the terms and provisions of respective Award Agreements (which need not be identical) including, but not limited to, the number of Shares to be covered by each Award, provisions concerning the time or times when and the extent to which the Awards may be exercised and the nature and duration of restrictions as to transferability or restrictions constituting substantial risk of forfeiture; (iii) to accelerate the right of a Participant to exercise, in whole or in part, any previously granted Award; (iv) to interpret the provisions and supervise the administration of the Plan; (v) to determine the Fair Market Value of the Shares; (vi) determine the Purchase Price of the Option (which, subject to applicable law, may be less than the Fair Market Value) (vii) to designate the type of Awards to be granted to a Participant; (viii) to determine any other matter which is necessary or desirable for, or incidental to, the administration of the Plan.

 

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	 	3.4	Subject to applicable law, the Board and/or the Committee shall have the authority to grant, in its discretion, to the holder of an outstanding Award, in exchange for the surrender and cancellation of such Award, a new Award having a purchase price equal to, lower than or higher than the Purchase Price of the original Award so surrendered and canceled, and containing such other terms and conditions as the Committee may prescribe in accordance with the provisions of the Plan.

 

	 	3.5	Subject to the Company’s incorporation documents, all decisions and selections made by the Board or the Committee pursuant to the provisions of the Plan shall be made by a majority of its members except that no member of the Board or the Committee shall vote on, or be counted for quorum purposes, with respect to any proposed action of the Board or the Committee relating to any Award to be granted to that member. Any decision reduced to writing shall be executed in accordance with the provisions of the Company’s incorporation documents, as the same may be in effect from time to time.

 

	 	3.6	The interpretation and construction by the Committee of any provision of the Plan or of any Award Agreement thereunder shall be final and conclusive unless otherwise determined by the Board.

 

	 	3.7	Subject to the Company’s incorporation documents and the Company’s decision, and to all approvals legally required, each member of the Board or the Committee shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with the Plan unless arising out of such member’s own fraud or bad faith, to the extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the member may have as a director or otherwise under the Company’s incorporation documents, any agreement, any vote of stockholders or disinterested directors, insurance policy or otherwise.

 

		4.	DESIGNATION OF PARTICIPANTS

 

The persons eligible for participation in the Plan shall include
Employees and/or Service Providers. The grant of an Award hereunder shall neither entitle the Participant to participate nor disqualify
him or her from participating in, any other grant of Awards pursuant to the Plan or any other option or share plan of the Company
or any of its affiliates.

 

		5.	SHARES RESERVED FOR THE PLAN

 

	 	5.1	The Company has reserved 9,000,000 authorized but unissued Shares for the purposes of the Plan and for the purpose of the Company’s other share option plans when applicable, subject to adjustment as set forth in Section 7 below. The pool of shares available for issuance under the Plan is the same pool of shares reserved and available for issuance under the 2014 U.S. Stock Option and Incentive Plan (the “U.S. Plan”). Accordingly, shares issued pursuant to awards under either the Plan or the U.S. Plan shall reduce the number of shares available for future issuance under each plan. The shares available for issuance under the U.S. Plan and the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company. Any Shares which remain unissued and which are not subject to outstanding Awards at the termination of the Plan shall cease to be reserved for the purpose of the Plan, but until termination of the Plan the Company shall at all times reserve a sufficient number of Shares to meet the requirements of the Plan. Should any Award for any reason expire or be canceled prior to its exercise or relinquishment in full, the Share or Shares subject to such Award may again be subjected to an Award under the Plan or under future plans.

 

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	 	5.2	Each Award granted pursuant to the Plan, shall be evidenced by a written Award Agreement between the Company and the Participant, in such form as the Board shall from time to time approve. Each Award Agreement shall state, inter alia, the number of Shares to which the Award relates, the type of Award granted thereunder, the Vesting Dates, the Purchase Price per Share and the Expiration Date. The date of grant of each Award shall be the date specified by the Board of Directors at the time such Award is made, or in the absence of such specification, the date of approval of the Award by the Board of Directors.

 

		6.	PURCHASE PRICE

 

	 	6.1	The Purchase Price of each Share subject to an Award shall be determined by the Committee in its sole and absolute discretion in accordance with applicable law, subject to any guidelines as may be determined by the Board from time to time. Each Award Agreement will contain the Purchase Price determined for each Participant.

 

	 	6.2	The Purchase Price shall be payable upon the exercise of and/or the purchase of an Award in cash, check or wire transfer. The Purchase Price shall be denominated in the currency of the primary economic environment of, at the Company’s discretion, either the Company or the Participant (that is the functional currency of the Company or the currency in which the Participant is paid).

 

		7.	ADJUSTMENTS

 

Upon the occurrence of any of the following described events,
Participant’s rights to purchase Shares under the Plan shall be adjusted as hereafter provided:

 

	 	7.1	In the event of Transaction, the unexercised or restricted portion of each Award then outstanding under the Plan shall be assumed or substituted for an appropriate number of shares of each class of shares or other securities of the Successor Company (or a parent or subsidiary of the Successor Company) as were distributed to the stockholders of the Company in connection and with respect to the Transaction. In the case of such assumption and/or substitution of Awards, appropriate adjustments shall be made to the number of shares and Purchase Price so as to reflect such actions and all other terms and conditions of the Award Agreements shall remain unchanged, including but not limited to the vesting schedule, all subject to the determination of the Committee or the Board, which determination shall be in their sole discretion and final. 

 

	 	7.2	Notwithstanding the above, subject to all applicable law and unless determined otherwise with respect to a specific outstanding Award, the Board or the Committee shall have the absolute discretion, power and authority to determine, in the event of a Transaction where the Successor Company (or parent or subsidiary of the Successor Company) does not agree to assume or substitute the Awards, the effect of the Transaction on the unexercised, unvested or restricted portion of Awards outstanding immediately prior to the effective time of the Transaction, which may include any one or more of the following, whether in a manner equitable or not among individual Participants or groups of Participants: (i) that the Vesting Dates of all or a portion of the outstanding Awards shall be accelerated so that any unvested or restricted Award or the relevant portion thereof shall be immediately vested as of the date which is ten (10) days prior to the effective date of the Transaction or on another date and/or dates or at an event and/or events as the Committee shall determine at its sole and absolute discretion, provided that unless otherwise determined by the Committee, the exercise and/or vesting of all Awards that otherwise would not have been exercisable and/or vested in the absence of a Transaction, shall be contingent upon the actual consummation of the Transaction; and/or (ii) that all or a portion or certain categories of the outstanding unexercised or restricted Awards shall be cancelled upon the actual consummation of the Transaction, and instead the holders thereof will receive monetary or other consideration, in the amount and under the terms determined by the Committee at it sole and absolute discretion; and/or (iii) that an adjustment or interpretation of the terms of the Awards shall be made in order to facilitate the Transaction and/or otherwise as required in context of the Transaction.     

 

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	 	7.3	For the purposes of Section 7.1 above, an Award shall be considered assumed or substituted if, following the Transaction, the Award shall confer the right, to purchase or receive, for each Share underlying such Award immediately prior to the Transaction, the consideration (whether shares, options, cash, or other securities or property) received in the Transaction by the holders of shares for each Share held on the effective date of the Transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Transaction is not solely shares of common stock (or their equivalent) of the Successor Company or its parent or subsidiary, the Committee may, with the consent of the Successor Company, provide for the consideration to be received upon the exercise of the Award to be solely shares of common stock (or their equivalent) of the Successor Company or its parent or subsidiary equal in Fair Market Value to the per Share consideration received by holders of a majority of the outstanding Shares in the Transaction; and provided further that the Committee may determine, in its discretion, that in lieu of such assumption or substitution of Awards for awards of the Successor Company or its parent or subsidiary, such Award will be substituted for any other type of asset or property including cash which is fair under the circumstances.

 

	 	7.4	If the Company is voluntarily liquidated or dissolved while unexercised Awards remain outstanding under the Plan, the Company shall immediately notify all unexercised Award holders of such liquidation, and the Participants shall then have ten (10) days to exercise any unexercised Vested Option or vested Award held by them at that time, in accordance with the exercise procedure set forth herein. Upon the expiration of such ten-days period, all remaining outstanding Awards will terminate immediately.

 

	 	7.5	If the outstanding Shares shall at any time be changed or exchanged by declaration of a share dividend (bonus shares), Share split or reverse Share split, combination or exchange of shares, recapitalization, or any other like event by or of the Company, and as often as the same shall occur, then the number, class and kind of the Shares subject to the Plan or subject to any Awards theretofore granted, and/or the Purchase Prices, shall be appropriately and equitably adjusted so as to maintain the proportionate number of Shares without changing the aggregate Purchase Price; provided, however, that no adjustment shall be made by reason of the distribution of subscription rights (rights offering) on outstanding Shares. Upon happening of any of the foregoing, the class and aggregate number of Shares issuable pursuant to the Plan (as set forth in Section 5 hereof), in respect of which Awards have not yet been exercised, shall be appropriately adjusted (all as determined by the Board whose determination shall be final). 

 

	 	7.6	The Participant acknowledges that Participant’s rights to sell the Shares may be subject to certain limitations (including a lock-up period), as will be requested by the Company or its underwriters, and the Participant unconditionally agrees and accepts any such limitations. Without derogating from the scope of the above, the Committee may designate certain periods, at its reasonable discretion, with respect to all or certain groups of Participants and/or with respect to all or certain types of Awards, during which the vesting and/or exercise of Awards and/or sale of Shares shall be restricted or prohibited, including without limitation, in order to comply with applicable laws in any relevant jurisdiction and/or rules of any exchange on which the Company’s shares are traded (“Blackout Periods”). During such Blackout Periods, Participants will not be able to exercise the Options (or other Awards) and/or receive and/or sell the Shares held by or on behalf of the Participants and the Company shall not bear any liability to Participants for any claim, loss or liability that may result from such restrictions.

 

		8.	TERM AND EXERCISE OF OPTIONS

 

	 	8.1	Options shall be exercised by the Participant’s by giving written notice of to the Company or to any third party designated by the Company (the “Representative”), in such form and method as may be determined by the Company, which exercise shall be effective upon receipt of such notice by the Company and/or the Representative and the payment of the exercise price for the number of Shares with respect to which the option is being exercised, at the Company’s or the Representative’s principal office. The notice shall specify the number of Shares with respect to which the Option is being exercised.

 

	 	8.2	Options, to the extent not previously exercised, shall terminate upon the earlier of: (i) the date set forth in the Award Agreement; (ii) the expiration of ten (10) years from the Date of Grant; or (iii) the expiration of any extended period in any of the events set forth in Section 8.5 below.

 

	 	8.3	The Options may be exercised by the Participant in whole at any time or in part from time to time, to the extent that the Options have become vested and exercisable, prior to the Expiration Date, and provided that, subject to the provisions of Section 8.5 below, the Participant is an Employee or a Service Provider at all times during the period beginning with the granting of the Option and ending upon the date of exercise.

 

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	 	8.4	Subject to the provisions of Section 8.5 below, in the event of a termination of Participant’s employment or service, all Options granted to such Participant shall immediately expire effective as of the Date of Termination. Unless otherwise approved by the Committee, the “Date of Termination” shall be the effective date of termination of the Participant’s employment or engagement as a service provider. 

 

	 	8.5	Notwithstanding anything to the contrary hereinabove and unless otherwise determined in the Participant’s Award Agreement, unless the term of the Option earlier expires pursuant to Section 8.2, an Option may be exercised after the Date of Termination of Participant’s employment or service during an additional period of time beyond the Date of Termination, but only with respect to the number of Vested Options at the time of such termination according to the Vesting Dates, if:

 

	 	8.5.1	termination is without Cause, in which event the Vested Options still in force and unexpired may be exercised within a period of three (3) months after the Date of Termination,; or

 

	 	8.5.2	termination is the result of death or disability of the Participant, in which event the Vested Options still in force and unexpired may be exercised within a period of twelve (12) months after such Date of Termination; or-

 

	 	8.5.3	prior to the date of such termination, the Committee shall authorize an extension of the term of all or part of the Vested Options beyond the Date of Termination for a period not to exceed the period during which the Options by their terms would otherwise have been exercisable.   

 

	 	8.5.4	For avoidance of any doubt, if termination of employment or service is for Cause, any outstanding unexercised Option will immediately expire and terminate, and the Participant shall not have any right in respect of such outstanding Options.

 

	 	8.6	To avoid doubt, Participants shall not have any of the rights or privileges of stockholders of the Company, in respect of any Shares purchasable upon the exercise of an Option, nor shall they be deemed to be a class of stockholders or creditors of the Company for the purpose of all applicable law, until registration of the Participant as holder of such Shares in the Company’s register of stockholders upon exercise of the Option in accordance with the provisions of the Plan

 

	 	8.7	Any form of Award Agreement authorized by the Plan may contain such other provisions, not inconsistent with the Plan, as the Board may, from time to time, deem advisable.

 

		9.	VESTING OF OPTIONS

 

	 	9.1	Subject to the provisions of the Plan, Options shall vest at the Vesting Dates set forth in the Option Agreement. However no Option shall be exercised after the Expiration Date.

 

	 	9.2	An Option may be subject to such other terms and conditions, not inconsistent with the Plan, on the time or times when it may be exercised as the Committee may deem appropriate. The vesting provisions of individual Options may vary.

 

		10.	PURCHASE FOR INVESTMENT

 

The Company’s obligation to issue or allocate Shares under
any Award, including upon exercise of an Option granted under the Plan is expressly conditioned upon: (a) the Company’s completion
of any registration or other qualifications of such Shares under all applicable laws, rules and regulations or (b) representations
and undertakings by the Participant (or his legal representative, heir or legatee, in the event of the Participant’s death)
to assure that the sale of the Shares complies with any registration exemption requirements which the Company in its sole discretion
shall deem necessary or advisable. Such required representations and undertakings may include representations and agreements that
such Participant (or his legal representative, heir, or legatee): (a) is purchasing such Shares for investment and not with any
present intention of selling or otherwise disposing thereof; and (b) agrees to have placed upon the face and reverse of any certificates
evidencing such Shares a legend setting forth (i) any representations and undertakings which such Participant has given to the
Company or a reference thereto and (ii) that, prior to effecting any sale or other disposition of any such Shares, the Participant
must furnish to the Company an opinion of counsel, satisfactory to the Company, that such sale or disposition will not violate
the applicable laws, rules and regulations of the United States or any other state having jurisdiction over the Company and the
Participant.

 

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		11.	DIVIDENDS

 

With respect to all Shares (but excluding, for avoidance of
any doubt, any unexercised Options) held by the Participant or by a trustee, as the case may be, the Participant shall be entitled
to receive dividends in accordance with the quantity of such Shares, subject to the provisions of the Company’s incorporation
documents, as amended from time to time and subject to any applicable taxation on distribution of dividends.

 

		12.	RESTRICTIONS ON TRANSFERABILITY, ASSIGNABILITY AND
SALE OF OPTIONS AND SHARES

 

	 	12.1	No Option or any right with respect thereto, purchasable hereunder, whether fully paid or not, shall be assignable, transferable, or given as collateral nor any right with respect thereto may be given to any third party whatsoever, other than by will or by the laws of descent and distribution or as specifically otherwise allowed under the Plan and during the lifetime of the Participant, each and all of such Participant’s rights to purchase Shares hereunder shall be exercisable only by the Participant. Any action made in contradiction to the aforementioned, shall be null and void.

 

	 	12.2	Shares of Restricted Stock may not be assigned, transferred, pledged or mortgaged, other than by will or laws of descent and distribution, prior to the date on which the date on which any applicable restriction, performance or deferred period lapses. Shares for which full payment has not been made, may not be assigned, transferred, pledged or mortgaged, other than by will or laws of descent and distribution. For avoidance of doubt, the foregoing shall not be deemed to restrict the transfer of a Participant’s rights in respect of Options or Shares purchasable pursuant to the exercise thereof upon the death of such Participant to such Participant’s estate or other successors by operation of law or will, whose rights therein shall be governed by Section 8.5.2 hereof, and as may otherwise be determined by the Committee.

 

		13.	EFFECTIVE DATE AND DURATION OF THE PLAN

 

The Plan shall be effective as of the day it was adopted by
the Board and shall terminate at the end of ten (10) years from such day of adoption.

The Company shall obtain the approval of the Company’s
stockholders for the adoption of this Plan or for any amendment to this ISOP, if stockholders’ approval is necessary or desirable
to comply with any applicable law including without limitation the U.S. securities law or the securities laws of other jurisdiction
applicable to Awards granted to Participants under this Plan, or if stockholders’ approval is required by any authority or
by any governmental agencies or national securities exchanges including without limitation the US Securities and Exchange Commission.

 

		13A.	RESTRICTED STOCK AND OTHER EQUITY-BASED AWARDS.

 

	 	13A.1	Eligibility.  Restricted Stock may be issued to all Participants either alone or in addition to other Awards granted under the Plan. The Board and/or Committee shall determine the eligible Participants to whom, and the time or times at which, grants of Restricted Stock will be made, the number of shares to be awarded, the Purchase Price (if any) to be paid by the Participant (subject to Section 13A.2), the time or times at which such Awards may be subject to forfeiture (if any), the vesting schedule (if any) and rights to acceleration thereof, and all other terms and conditions of the Awards. The Board and/or Committee may condition the grant or vesting of Restricted Stock upon the attainment of specified performance targets or such other factors as the Board and/or Committee may determine, in its sole discretion. Unless otherwise determined by the Board and/or Committee, the Participant shall not be permitted to sell or transfer shares of Restricted Stock awarded under this Plan during a period set by the Board and/or Committee (if any) (the “Restriction Period”) commencing with the date of such Award, as set forth in the applicable Award Agreement.

 

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	 	13A.2	Terms.  A Participant selected to receive Restricted Stock shall not have any rights with respect to such Award, unless and until such Participant has delivered a fully executed copy of the Award Agreement evidencing the Award to the Company and has otherwise complied with the applicable terms and conditions of such Award. The purchase price of Restricted Stock shall be determined by the Board and/or Committee, but shall not be less than as permitted under applicable law. Awards of Restricted Stock must be accepted within a period of 60 days (or such shorter period as the Board and/or Committee may specify at grant) after the grant date, by executing an Award Agreement and by paying whatever price (if any) the Board and/or Committee has designated thereunder.

 

	 	13A.3	Legend.  Each Participant receiving Restricted Stock shall be issued a stock certificate in respect of such shares of Restricted Stock, unless the Board and/or Committee elects to use another system, such as book entries by the transfer agent, as evidencing ownership of Restricted Stock. Such certificate shall be registered in the name of such Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award, substantially in the following form (as well as other legends required by the Board and/or Committee):

 

“The anticipation, alienation, attachment, sale,
transfer, assignment, pledge, encumbrance or charge of the shares of stock represented hereby are subject to the terms and conditions
(including forfeiture) of the Brainstorm Cell Therapeutics Inc. 2014 Global Share Option Plan, and an Award Agreement entered into
between the registered owner and the Company dated ____________. Copies of such Plan and Award Agreement are on file at Brainstorm
Cell Therapeutics Inc.”

 

	 	13A.4	Custody.  The Board and/or Committee may require that any share certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition of any Restricted Stock Award, the Participant shall have delivered a duly signed share transfer deed, endorsed in blank, relating to the Shares covered by such Award.

 

	 	13A.5	Rights as Stockholder.  Except as provided in this Section and Section 13A.4 above and as otherwise determined by the Board and/or Committee and set forth in the Award Agreement, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a holder of Shares including, without limitation, the right to receive any dividends, the right to vote such shares and, subject to and conditioned upon the full vesting of shares of Restricted Stock, the right to tender such shares. Notwithstanding the foregoing, the payment of dividends shall be deferred until, and conditioned upon, the expiration of the applicable Restriction Period, unless the Board and/or Committee, in its sole discretion, specifies otherwise at the time of the Award.

 

	 	13A.6	Lapse of Restrictions.  If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction Period, the certificates for such shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery to the Participant except as otherwise required by applicable law. Notwithstanding the foregoing, actual certificates shall not be issued to the extent that book entry recording is used.

 

	 	13A.7	Termination of Engagement.  In the absence of a provision specifying otherwise in the relevant Award Agreement, if a Participant’s employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock that has not vested at the time of termination shall automatically and without any requirement of notice to such Participant from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price from such Participant or such Participant’s legal representative simultaneously with such termination of employment (or other service relationship), and thereafter shall cease to represent any ownership of the Company by the Participant or rights of the Participant as a stockholder. Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates, a Participant shall surrender such certificates to the Company upon request without consideration.

 

	 	13A.8	Other Equity-Based Awards.  Other equity-based awards (including, without limitation, restricted stock units and performance share awards) may be granted either alone or in addition to other Awards granted under the Plan to all eligible Participants pursuant to such terms and conditions as the Board and/or Committee may determine, including without limitation, in one or more appendixes adopted by the administrator and appended to this Plan.

 

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		14.	AMENDMENTS OR TERMINATION

 

	 	14.1	The Board may at any time, subject to the provisions of Section 14.2 below and all applicable law, amend, alter, suspend or terminate the Plan, provided, however, that (i) the Board may not extend the term of the Plan specified in Section 13 and (ii) no amendment, alteration, suspension or termination of the Plan shall impair the rights of any Participant, unless mutually agreed otherwise by the Participant and the Company, which agreement must be in writing and signed by the Participant and the Company. Earlier termination of the Plan prior to the Termination Date shall not affect the Board’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such earlier termination.

 

	 	14.2	The Company shall obtain the approval of the Company’s stockholders for any amendment to this Plan and/or the Appendixes thereto if stockholders’ approval is required under any applicable law including without limitation the U.S. securities law or the securities laws of another jurisdiction applicable to Awards granted to Participants under this Plan and/or the Appendixes thereto, or if stockholders’ approval is required by any authority or by any governmental agencies or national securities exchanges including without limitation the U.S. Securities and Exchange Commission.

 

		15.	GOVERNMENT REGULATIONS

 

The Plan, the granting of Awards, exercise of Options hereunder
and the obligation of the Company to sell and deliver Shares under such Awards shall be subject to all applicable laws, rules,
regulations, approvals and consents whether of the United States, the State of Israel, or any other state having jurisdiction over
the Company or the Participant, including the registration of the Shares under the United States Securities Act 1933 or under the
securities act of any applicable jurisdiction, and to such approvals by any governmental agencies or national securities exchanges
as may be required. Nothing herein shall be deemed to require the Company to register the Shares under the securities law of any
jurisdiction.

 

		16.	CONTINUANCE OF EMPLOYMENT

 

Neither the Plan nor any Award Agreement shall impose any obligation
on the Company or an affiliate to continue any Participant in its employ or service, and nothing in the Plan or in any Award granted
pursuant hereto shall confer upon any Participant any right to continue in the employ or service of the Company or an affiliate
thereof or restrict the right of the Company or an affiliate thereof to terminate such employment or service at any time.

 

		17.	GOVERNING LAW AND JURISDICTION

 

The Plan shall be governed by and construed and enforced in
accordance with the laws of the State of Israel as applicable to contracts made and to be performed therein, without giving effect
to the principles of conflict of laws. The competent courts of the State of Israel, Delaware State or any other state of the United
States in which the company is qualified to do business shall have sole jurisdiction in any matters pertaining to the Plan.

 

		18.	TAX CONSEQUENCES

 

Any tax consequences to any Participant arising from the grant
of Awards, exercise of any Option, from the payment for Shares covered thereby or from any other event or act (of the Company and/or
its affiliates, or the Participant) hereunder shall be borne solely by the Participant. The Company and/or its affiliates shall
withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at
source. Furthermore, the Participant shall agree to indemnify the Company and/or its affiliates and hold them harmless against
and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating
to the necessity to withhold, or to have withheld, any such tax from any payment made to the Participant. The Company or any of
its affiliates may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all
taxes required by law to be withheld with respect to Awards granted under the Plan and the exercise thereof, including, but not
limited, to (i) deducting the amount so required to be withheld from any other amount (or Shares issuable) then or thereafter to
be provided to the Participant, including by deducting any such amount from a Participant’s salary or other amounts payable
to the Participant, to the maximum extent permitted under law and/or (ii) requiring the Participant to pay to the Company or any
of its affiliates the amount so required to be withheld as a condition of the issuance, delivery, distribution or release of any
Shares and/or (iii) by causing the exercise and sale of any Options or Shares held by or on behalf of the Participant to cover
such liability, up to the amount required to satisfy minimum statutory withholding requirements. In addition, the Participant will
be required to pay any amount due in excess of the tax withheld and transferred to the tax authorities, pursuant to applicable
tax laws, regulations and rules.

 

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The Company shall not be required to release any Share certificate
to a Participant until all required payments have been fully made.

 

The receipt of an Award and/or the acquisition of Shares issued
upon the exercise of the Options may result in tax consequences. The description of tax consequences set forth in the Plan or any
Appendix hereto does not purport to be complete, up to date or to take into account any special circumstances relating to a Participant.

 

THE PARTICIPANT IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH
RESPECT TO THE TAX CONSEQUENCES OF RECEIVING OR EXERCISING ANY AWARD IN LIGHT OF HIS OR HER PARTICULAR CIRCUMSTANCES.

 

		21.	NON-EXCLUSIVITY OF THE PLAN

 

The adoption of the Plan by the Board shall not be construed
as amending, modifying or rescinding any previously approved incentive arrangements or as creating any limitations on the power
of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of
Awards otherwise then under the Plan, and such arrangements may be either applicable generally or only in specific cases. For the
avoidance of doubt, prior grant of awards to Participants of the Company under their employment agreements, and not in the framework
of any previous option plan, shall not be deemed an approved incentive arrangement for the purpose of this section.

 

		22.	MULTIPLE AGREEMENTS

 

The terms of each Award may differ from other Awards granted
under the Plan at the same time, or at any other time. The Board may also grant more than one Award to a given Participant during
the term of the Plan, either in addition to, or in substitution for, one or more Awards previously granted to that Participant.

 

		23.	RULES PARTICULAR TO SPECIFIC COUNTRIES

 

Notwithstanding anything herein to the contrary, the terms and
conditions of the Plan may be adjusted with respect to a particular country by means of an addendum to the Plan in the form of
an appendix (the “Appendix”), and to the extent that the terms and conditions set forth in the Appendix conflict
with any provisions of the Plan, the provisions of the Appendix shall govern. Terms and conditions set forth in the Appendix shall
apply only to Awards issued to Participants under the jurisdiction of the specific country that is subject of the Appendix and
shall not apply to Awards issued to any other Participant. The adoption of any such Appendix shall be subject to the approval of
the Board and if required the approval of the stockholders of the Company.

 

*    *    *

 

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Appendix A — Israel

BRAINSTORM CELL THERAPEUTICS INC.

TO THE AMENDED AND RESTATED 2014 GLOBAL
SHARE OPTION PLAN

 

		1.	GENERAL

 

		1.1.	This appendix (the “Appendix”) shall
apply only to participants who are residents of the state of Israel or those who are deemed to be residents of the state of Israel
for the payment of tax. The provisions specified hereunder shall form an integral part of the 2014 Global Share Option Plan of
BrainStorm Cell Therapeutics Inc (hereinafter: the “Plan”), which applies to the issuance of Awards granted
as Shares, or as Options to purchase Shares of BrainStorm Cell Therapeutics Inc. (hereinafter: the “Company”).
According to the Plan, Awards may be issued to employees, directors, consultants and service provides of the Company or its affiliates

 

		1.2	This Appendix is effective with respect to Awards granted
as of July 1, 2014 and shall comply with Amendment no. 132 of the Israeli Tax Ordinance.

 

		1.3.	This Appendix is to be read as a continuation of the
Plan and only modifies Awards granted to Israeli Participants so that they comply with the requirements set by the Israeli law
in general, and in particular with the provisions of Section 102 (as specified herein), as may be amended or replaced from time
to time. For the avoidance of doubt, this Appendix does not add to or modify the Plan in respect of any other category of Participants.

 

		1.5.	The Plan and this Appendix are complimentary to each
other and shall be deemed as one. In any case of contradiction, whether explicit or implied, between the provisions of this Appendix
and the Plan, the provisions set out in the Appendix shall prevail.

 

		1.6.	Any capitalized terms not specifically defined in this
Appendix shall be construed according to the interpretation given to it in the Plan.

 

		2.	DEFINITIONS

 

		2.1	“Affiliate” means any “employing
company” within the meaning of Section 102(a) of the Ordinance.

 

		2.2	“Approved 102 Award” means an
Award granted pursuant to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of the Participant.

 

		2.3	“Capital Gain Award (CGA)” means
an Approved 102 Award elected and designated by the Company to qualify under the capital gain tax treatment in accordance with
the provisions of Section 102(b)(2) of the Ordinance.

 

		2.4	“Controlling Stockholder” shall
have the meaning ascribed to it in Section 32(9) of the Ordinance.

 

		2.4A	“Deposit Requirements” shall mean
with respect an Approved 102 Trustee Award, the requirement to evidence deposit of an Award with the Trustee, in accordance with
Section 102, in order to qualify as an Approved 102 Trustee Award.  As of the time of approval of this Appendix, the
ITA guidelines regarding Deposit Requirements for Capital Gains Awards require that the Trustee be provided with (a) a copy of
resolutions approving Awards intended to qualify as Capital Gains Awards within 45 days of the date of  approval of
such Award, including full details of the terms of the Award, and (b) a copy of the Participant’s consent to the requirements
of the Capital Gains Awards within 90 days of the approval of such Award, and (c) with respect to an Award of Restricted Share,
either a share certificate and copy of the Company’s share register evidencing issuance of the Shares underlying such Award
in the name of the Trustee for the benefit of the Participant, or deposit of the Shares with a financial institution in an account
administered in the name of the Trustee, as applicable, in each case, within 90 days of the date of the  approval of
such Award.

 

		2.5	“Employee” means a person who
is employed by the Company or its Affiliates, including an individual who is serving as a director or an office holder, but excluding
any Controlling Stockholder, all as determined in Section 102 of the Ordinance.

 

		2.6	“ITA” means the Israeli Tax Authorities.

 

		2.7	“Non-Employee” means a consultant,
adviser, service provider, Controlling Stockholder or any other person who is not an Employee.

 

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		2.8	“Ordinary Income Award (OIA)” means
an Approved 102 Award elected and designated by the Company to qualify under the ordinary income tax treatment in accordance with
the provisions of Section 102(b)(1) of the Ordinance.

 

		2.9	“102 Award” means any Award granted
to Employees pursuant to Section 102 of the Ordinance.

 

		2.10	“3(i) Option” means an Option
granted pursuant to Section 3(i) of the Ordinance to any person who is a Non- Employee.

 

		2.11	“Ordinance” means the Israeli
Income Tax Ordinance [New Version] 1961 as now in effect or as hereafter amended.

 

		2.12	“Section 102” means section 102
of the Ordinance and any regulations, rules, orders or procedures promulgated thereunder as now in effect or as hereafter amended.

 

		2.13	“Rules” means the Income Tax Rules
(Tax Benefits in Share Issuance to Employees) 5763-2003.

 

		2.13A	“Trustee” means any individual
appointed by the Company to serve as a trustee and approved by the ITA, all in accordance with the provisions of Section 102(a)
of the Ordinance.

 

		2.14	“Unapproved 102 Award” means
an Award granted pursuant to Section 102(c) of the Ordinance and not held in trust by a Trustee.

 

		3.	ISSUANCE OF OPTIONS

 

		3.1	The persons eligible for participation in the Plan as
Participants shall include any Employees and/or Non-Employees of the Company or of any Affiliate; provided, however, that (i)
Employees may only be granted 102 Awards; and (ii) Non-Employees and/or Controlling Stockholders may only be granted 3(i) Options.

 

		3.2	The Company may designate Awards granted to Employees
pursuant to Section 102 as Unapproved 102 Awards or Approved 102 Awards.  The Company’s designation will be indicated
in the Award Agreement.

 

		3.3	The grant of Approved 102 Awards shall be made under
this Appendix adopted by the Board. No Approved 102 Awards may be made effective pursuant to this Appendix until 30 days after
the date upon which the requisite filings required by the ITO and the Rules have been made with the ITA, including the filing
of the Plan and this Appendix.

 

		3.4	Approved 102 Awards may either be classified as Capital
Gain Awards (“CGAs”) or Ordinary Income Awards (“OIAs”). The Company’s designation
will be indicated in the Award Agreement.

 

		3.5	No Approved 102 Awards may be granted under this Appendix
to any eligible Employee, unless and until, the Company’s election of the type of Approved 102 Awards as CGA or OIA granted
to Employees (the “Election”), is appropriately filed with the ITA. Such Election shall become effective beginning
the first date of grant of an Approved 102 Award under this Appendix and shall remain in effect at least until the end of the
year following the year during which the Company first granted Approved 102 Awards. The Election shall obligate the Company to
grant only the type of Approved 102 Award it has elected, and shall apply to all Participants who were granted
Approved 102 Awards during the period indicated herein, all in accordance with the provisions of Section 102(g) of the Ordinance.
For the avoidance of doubt, such Election shall not prevent the Company from granting Unapproved 102 Awards simultaneously.

 

		3.6	All Approved 102 Awards must be held in trust by a Trustee,
as described in Section 4 below.

 

		3.7	For the avoidance of doubt, the designation of Unapproved
102 Awards and Approved 102 Awards shall be subject to the terms and conditions set forth in Section 102.

 

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		4.	TRUSTEE

 

		4.1	Each Approved 102 Award will be deemed granted on the
date approved by the Board and/or Committee and stated in a written or electronic notice by the Company, provided that the Company
has also complied with any applicable requirements set forth by the ITA for compliance with Section 102 requirements by the Company
and the Trustee. The Trustee and the Participant granted an Approved 102 Award shall comply with the Ordinance, and the terms
and conditions of the Trust Agreement entered into between the Company and the Trustee. For avoidance of doubt, it is reiterated
that compliance with the Ordinance specifically includes compliance with the Rules. Further, the Participant agrees to execute
any and all documents which the Company or the Trustee may reasonably determine to be necessary in order to comply with the provision
of any applicable law, and, particularly, Section 102 and the Deposit Requirements.

Approved 102 Awards which shall be granted under
this Appendix and/or any Shares allocated or issued upon exercise of such Approved 102 Awards and/or other shares received subsequently
following any realization of rights, including without limitation bonus shares, shall be deposited or issued to the Trustee in
compliance with the Deposit Requirements and held in trust by the Trustee (or be subject to a supervisory trustee arrangement
if approved by the ITA) for the benefit of the Participants for such period of time as required by Section 102 or any regulations,
rules or orders or procedures promulgated thereunder (the “Holding Period”). In the case the requirements for
Approved 102 Awards are not met, then the Approved 102 Awards may be regarded as Unapproved 102 Awards, all in accordance with
the provisions of Section 102.

After termination of the Holding Period, the Trustee
may release such Awards and any Shares issued with respect to such Award, provided that (i) the Trustee has received an acknowledgment
from the ITA that the Participant has paid any applicable tax due pursuant to the Ordinance or (ii) the Trustee and/or the Company
or its Affiliate withholds any applicable tax due pursuant to the Ordinance. The Trustee shall not release any Approved 102 Award
or Shares issued with respect to the Approved 102 Award prior to the full payment of the Participant’s tax liabilities. If
an Award is exercised or settled after the Holding Period ends, the Shares issued upon such exercise or settlement shall, at the
election of the Participant, either (i) be issued in the name of the Trustee (or be subject to a supervisory trustee arrangement
if approved by the ITA), or (ii) be transferred to the Participant directly, provided that the Participant first complies with
all applicable provisions of the Plan and this Appendix.

 

		4.2	Notwithstanding anything to the contrary, the Trustee
shall not release any Shares allocated or issued upon exercise of Approved 102 Awards prior to the full payment of the Participant’s
tax liabilities arising from Approved 102 Awards which were granted to him and/or any Shares allocated or issued upon exercise
of such Awards.

 

		4.3	With respect to any Approved
102 Award, subject to the provisions of Section 102 and any rules or regulation or orders or procedures promulgated thereunder,
an Participant shall not sell or release from trust any Share received upon the exercise of an Approved 102 Award and/or any share
received subsequently following any realization of rights, including without limitation, bonus shares, until the lapse of the
Holding Period required under Section 102 of the Ordinance. Notwithstanding the foregoing, the Trustee may, pursuant to a written
request and subject to applicable law, release and transfer such Shares to a designated third party, provided that both of the
following conditions have been fulfilled prior to such transfer: (i) all taxes required to be paid upon the release and transfer
of the shares have been withheld for transfer to the tax authorities and (ii) the Trustee has received written confirmation from
the Company that all requirements for such release and transfer have been fulfilled according to the terms of the Company’s
corporate documents, the Plan, any applicable Award Agreement and applicable law.  If any such sale or release occurs
during the Holding Period, the sanctions under Section 102 of the Ordinance and under any Rules or regulation or orders or procedures
promulgated thereunder shall apply to and shall be borne by such Participant. To avoid doubt such sale or release during the Holding
Period will result in different tax ramifications to the  Participant under Section 102 of the Ordinance and the Rules
and/or any other regulations or orders or procedures promulgated thereunder, which shall apply to and shall be borne solely by
such Participant (including tax and mandatory payments otherwise payable by the Company or its Affiliates, which would not apply
absent a sale or release during the Holding Period).

 

		4.4	Upon receipt of Approved 102 Award, the Participant will
sign an undertaking to release the Trustee from any liability in respect of any action or decision duly taken and bona fide executed
in relation with this Appendix, or any Approved 102 Award or Share granted to him thereunder.

 

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		4.5	To avoid doubt, and notwithstanding anything to the contrary
in the Plan, it is clarified that the grant of Restricted Stock and other equity-based Awards as Approved 102 Awards is subject
to the approval and confirmation of the ITA.

 

		5.	THE AWARDS

 

The terms and conditions upon which the Awards shall be issued
and exercised, shall be as specified in the Award Agreement to be executed pursuant to the Plan and to this Appendix. Each Award
Agreement shall state, inter alia, the number of Shares to which the Award relates, the type of Award granted thereunder (whether
a CGA, OIA, Unapproved 102 Award or a 3(i) Option), the vesting provisions and the exercise price.

 

No Award may be granted pursuant to the Plan to any person serving
as a director or officer (Nose Misra) of an Affiliate at the time of the grant, unless such grant is approved in the manner prescribed
for the approval of compensation of directors and office holders (Nose’i Misra) under applicable law.

 

		6.	FAIR MARKET VALUE

 

Without derogating from Section 2.9 of the Plan and solely for
the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the date of grant the Company’s
shares are listed on any established stock exchange or a national market system or if the Company’s shares will be registered
for trading within ninety (90) days following the date of grant of the CGAs, the fair market value of the Shares at the date of
grant shall be determined in accordance with the average value of the Company’s shares on the thirty (30) trading days preceding
the date of grant or on the thirty (30) trading days following the date of registration for trading, as the case may be.

 

		7.	EXERCISE OF OPTIONS

 

Options shall be exercised by the Participant by giving a written
notice to the Company and/or to any third party designated by the Company (the “Representative”), in such form
and method as may be determined by the Company and, when applicable, by the Trustee, in accordance with the requirements of Section
102, which exercise shall be effective upon receipt of such notice by the Company and/or the Representative and the payment of
the exercise price for the number of Shares with respect to which the option is being exercised, at the Company’s or the
Representative’s principal office. The notice shall specify the number of Shares with respect to which the option is being
exercised.

 

		8.	ASSIGNABILITY AND SALE OF AWARDS

 

		8.1.	Notwithstanding any other provision of the Plan, no Award
or any right with respect thereto, purchasable hereunder, whether fully paid or not, shall be assignable, transferable or given
as collateral or any right with respect to them given to any third party whatsoever, and during the lifetime of the Participant
each and all of such Participant’s rights to purchase and/or receive Shares hereunder shall be exercisable only by the Participant.

 

Any such action made directly or indirectly,
for an immediate validation or for a future one, shall be void.

 

		8.2	As long as Options or Shares purchased pursuant to thereto
are held by the Trustee on behalf of the Participant, all rights of the Participant over the shares are personal, can not be transferred,
assigned, pledged or mortgaged, other than by will or laws of descent and distribution.

 

		9.	INTEGRATION OF SECTION 102 AND TAX ASSESSING OFFICER’S
PERMIT

 

		9.1.	With regards to Approved 102 Awards, the provisions of
the Plan and/or the Appendix and/or the Award Agreement shall be subject to the provisions of Section 102, the Rules and the Tax
Assessing Officer’s permit, and the said provisions and permit shall be deemed an integral part of the Plan and of the Appendix
and of the Award Agreement.

 

		9.2.	Any provision of Section 102 and/or the said permit which
is necessary in order to receive and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified in the
Plan or the Appendix or the Award Agreement, shall be considered binding upon the Company and the Participants.

 

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		10.	DIVIDEND

 

Subject to the Company’s incorporation documents, with
respect to all Shares (but excluding, for avoidance of any doubt, any unexercised options) allocated or issued upon the exercise
of Options, and/or issuance of Shares, and held by the Participant or by the Trustee as the case may be, the Participant shall
be entitled to receive dividends in accordance with the quantity of such shares, and subject to any applicable taxation on distribution
of dividends, and when applicable subject to the provisions of Section 102 and the rules, regulations or orders promulgated thereunder.
In the event a share dividend is declared and/or additional rights are granted with respect to Shares which derive from Awards
granted as Approved 102 Awards, such dividend and/or rights shall also be subject to the provisions of this Appendix and the Holding
Period for such dividend shares and/or rights shall be measured from the commencement of the Holding Period for the Award with
respect to which the dividend was declared and/or rights granted. In the event of a cash dividend on Shares, the Trustee shall
transfer the dividend proceeds to the Participant after deduction of taxes and mandatory payments in compliance with applicable
withholding requirements, and subject to any other requirements imposed by the ITA.

 

10A. MISCELLANEOUS

 

To avoid doubt, and notwithstanding anything to the contrary
in the Plan, it is clarified that the grant of certain types of equity-based Awards as Approved 102 Awards is subject to the confirmation
and approval of the ITA.

 

It is further clarified that all awards hereunder shall be subject
to compliance with the Israeli Securities Law, 1968, and the rules and regulations promulgated thereunder.

 

		11.	TAX CONSEQUENCES

 

		11.1	Any tax consequences arising from the grant of any Award,
exercise of any Option, from the issuance, sale or transfer of Shares, or from any other event or act (of the Company, and/or
its Affiliates, and the Trustee or the Participant), hereunder, shall be borne solely by the Participant. The Company and/or its
Affiliates, and/or the Trustee shall withhold taxes according to the requirements under the applicable laws, rules, and regulations,
including withholding taxes at source. Furthermore, the Participant shall agree to indemnify the Company and/or its Affiliates
and/or the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon,
including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment
made to the Participant. The Company or any of its Affiliates and the Trustee may make such provisions and take such steps as
it/they may deem necessary or appropriate for the withholding of all taxes required by law to be withheld with respect to Awards
granted under the Plan and the exercise, sale, transfer or other disposition thereof, including, but not limited, to (i) deducting
the amount so required to be withheld from any other amount then or thereafter payable to a Participant, including by deducting
any such amount from a Participant’s salary or other amounts payable to the Participant, to the maximum extent permitted
under law and/or (ii) requiring a Participant to pay to the Company or any of its Affiliates the amount so required to be withheld
as a condition of the issuance, delivery, distribution or release of any Shares and/or (iii) by causing the exercise of Options
and/or sale of Shares held by or on behalf of the Participant to cover such liability. In addition, the Participant will be required
to pay any amount that exceeds the tax to be withheld and transferred to the tax authorities, including penalties, pursuant to
applicable tax laws, regulations and rules.

 

		11.2	The Company and/or, when applicable, the Trustee shall
not be required to release any share certificate to a Participant until all required payments have been fully made.

 

		11.3	With respect to Unapproved 102 Award, if the Participant
ceases to be employed by the Company or any Affiliate, the Participant shall extend to the Company and/or its Affiliate a security
or guarantee for the payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102 and
the rules, regulation or orders promulgated thereunder.

 

    	15

    	 

    

 

		12.	GOVERNING LAW & JURISDICTION

 

This Appendix shall be governed by and construed and enforced
in accordance with the laws of the State of Israel applicable to contracts made and to be performed therein, without giving effect
to the principles of conflict of laws. The competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining
to this Appendix.

 

*****

 

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