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<SEC-DOCUMENT>0001085037-05-001538.txt : 20051101
<SEC-HEADER>0001085037-05-001538.hdr.sgml : 20051101
<ACCEPTANCE-DATETIME>20051101115523
ACCESSION NUMBER:		0001085037-05-001538
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20051020
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20051101
DATE AS OF CHANGE:		20051101

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PLURISTEM LIFE SYSTEMS INC
		CENTRAL INDEX KEY:			0001158780
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				980351734
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31392
		FILM NUMBER:		051168725

	BUSINESS ADDRESS:	
		STREET 1:		MATAM ADVANCED TECHNOLOGY PARK
		STREET 2:		BUILDING NO. 20
		CITY:			HAIFA
		STATE:			L3
		ZIP:			31905
		BUSINESS PHONE:		972-4-850-1080

	MAIL ADDRESS:	
		STREET 1:		MATAM ADVANCED TECHNOLOGY PARK
		STREET 2:		BUILDING NO. 20
		CITY:			HAIFA
		STATE:			L3
		ZIP:			31905

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AI SOFTWARE INC
		DATE OF NAME CHANGE:	20010906
</SEC-HEADER>
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<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k102005.htm
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNITED STATES SECURITIES AND</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font FACE="ARIAL" SIZE=2>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>Date of Report (Date of earliest event reported)  </font><b><font size=2>October 20, 2005</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>PLURISTEM LIFE SYSTEMS, INC.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Nevada</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(State or other jurisdiction of incorporation)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>001-31392</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(Commission File Number)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>98-0351734</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(IRS Employer Identification No.)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>MATAM Advanced Technology Park, Building No. 20, Haifa, Israel  31905</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(Address of principal executive offices and Zip Code)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>011-972-4-850-1080</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Registrant's telephone number, including area code  </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(Former name or former address, if changed since last report)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2><font face=Wingdings>o</font> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2><font face=Wingdings>o</font> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2><font face=Wingdings>o</font> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2><font face=Wingdings>o</font> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 1.01.  Entry into a Material Definitive Agreement</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The Registrant entered into a Consulting Agreement as of April 1, 2005 with Biological Industries, Ltd., of Kibbutz Bet-HuEmek, MP Oshrat 25015 whereby the Registrant and Biological Industries have agreed to globally distribute joint project products in the field of serum-free media specially designed for hematopoietic and mesenchymal stem cells utilizing the Registrant&#146;s patented PluriX<SUP>TM</SUP> bioreactor.  </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Biological Industries is a privately-held, leading biotechnology manufacturer and provider of a large range of animal cell culture products including sterile sea, liquid and powdered synthetic media, supplements and novel serum free media products in the field of cellular biology.  The company exports products to thirty countries internationally.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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<p style='page-break-before:always'></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="41" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 2 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Pursuant to the Consulting Agreement, Mr. David Fiorentini, Biological Industries&#146; R&amp;D Manager, has agreed to provide consulting services to the Registrant, in consideration of the payment of a retainer fee in the amount of US$1,500 per month.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The Consulting Agreement has an initial term of six months and will automatically renew for additional consecutive one month periods.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 9.01 Financial Statements and Exhibits</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><A HREF="ex10-1f8k102005.htm">Consulting Agreement dated April 1, 2005 with Biological Industries, Ltd.</A></font></p> </td> </tr></table>



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        <td width="48" nowrap valign=top style='padding:12.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>99.1</font></p> </td>
        <td width="323" nowrap valign=top style='padding:12.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><A HREF="ex99-1f8k102005.htm">News Release dated October 20, 2005</A></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><B><font SIZE=2>PLURISTEM LIFE SYSTEMS, INC.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>/s/ Zami Aberman</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Zami Aberman </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date: October 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:24pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>ex10-1f8k102005.htm
<DESCRIPTION>EXHIBIT 10.1 - CONSULTING AGREEMENT
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><b><font size=2>EXHIBIT 10.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><b><font size=2>CONSULTING AGREEMENT</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>This Collaboration Agreement (&#147;</font><b><font size=2>Agreement</font></b><font size=2>&#148;) is entered into as of April 1<sup>st</sup>, 2005 (&#147;</font><b><font size=2>Effective Date</font></b><font size=2>&#148;) by and between Pluristem Ltd. of MATAM Advanced Technology Park, Bldg. No. 20, Haifa 31905, Israel (&#147;</font><b><font size=2>Company</font></b><font size=2>&#148;) and Biological Industries ltd. with a principal place of business at Kibbutz Bet-HaEmek, MP Oshrat 25105 (&#147;</font><B><font SIZE=2>BI</font></B><font size=2>&#148;). Company and BI are collectively referred to herein as the &#147;</font><b><font size=2>Parties</font></b><font size=2>&#148; </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><b><font size=2>Whereas</font></b><font size=2>, Company is in the business of developing and producing certain stem cell products and services; and </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><b><font size=2>Whereas</font></b><font size=2>, BI is in the business of developing and producing, </font><i><font size=2>inter alia</font></i><font size=2>, certain biological culture media and testing formulas; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Whereas</font></b><font size=2>, subject to the terms and conditions set herein the parties wish to cooperate and desire to enter into a joint commercial cooperation agreement for the purpose of developing, a serum free medium for the maintenance, growth and expansion of hematopoietic stem cell co-cultured with stroma cells, as defined below, through joint commercial efforts (the &#147;</font><b><font size=2>Project</font></b><font size=2>&#148;);</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Therefore</font></b><font size=2>, the parties agree as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Term of the Agreement</font></b></u></p> </td> </tr></table>


<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>This Agreement will commence on the Effective Date and continue for a period of 6 months thereafter (the &#147;</font><b><font size=2>Initial Term</font></b><font size=2>&#148;), unless earlier terminated in accordance with the provisions hereof. After the Initial Period this Agreement will automatically renew for additional consecutive 1 (one) months periods (the &#147;</font><b><font size=2>Renewal Periods</font></b><font size=2>&#148;) (the Initial Period together with the renewal Periods shall be referred to as the &#147;</font><b><font size=2>Term</font></b><font size=2>&#148;), unless either party provides the other party, at least 21 days in advance, with a written notice of its wish to terminate this Agreement. </font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Contractual Relationship</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>It is hereby mutually declared and agreed that BI shall at all time remain an independent contractor, and that nothing in this Agreement is to be construed as creating any agency, partnership, joint venture, or employer/employee relationship (whether between the Company and BI).</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI shall indemnify and hold the Company, its officers, directors, shareholders or employees harmless against any claim or cause of action initiated by BI or on its behalf in contradiction to the representation made in this Section 2.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Either Party shall not have the power or authority to bind the other Party, contractually or otherwise, without receiving such Party&#146;s prior written approval. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Obligations, Representations &amp; Warranties of the Parties</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Each of the Parties hereby represents and warrants to the other Party that: </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="47" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>It has full corporate power and authority to execute this Agreement and to perform its obligations hereunder; and all corporate action on its part necessary for the authorization, execution, delivery and performance of this Agreement by it have been taken. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="47" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>This Agreement, when executed and delivered by it, will constitute a valid and legally binding obligation on its part, enforceable in accordance with its terms. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="47" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The execution, delivery and performance of this Agreement will not result in the breach or violation of any law or regulation applicable to it or any contract or commitment by which it is bound. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="47" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1.4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Each party has obtained any permit, authorization, license or consent from any person in connection with the execution and delivery of this Agreement or the consummation or performance of any of the transactions contemplated hereunder. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.2.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Representations &amp; Warranties of BI</font></b></u></p> </td> </tr></table>


<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>During the Term BI shall provide the Company with the following services (collectivly the &#147;</font><b><font size=2>Services</font></b><font size=2>&#148;):</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="34" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.2.1.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Consulting Services</font></b></u></p> </td> </tr></table>



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        <td width="72" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="70" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2.1.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI&#146;s R&amp;D Manager, Mr David Fiorentini (the &#147;</font><b><font size=2>Consultant</font></b><font size=2>&#148;), will provide the Company consulting services regarding to all aspects of the Project, including without limitation disclosure of any of BI&#146;s propiertary intellectual property relating to the Project, subject to the confidentiality undertaking set forth herein (the &#147;</font><b><font size=2>Consulting Services</font></b><font size=2>&#148;);</font></p> </td> </tr></table>



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        <td width="72" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="70" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2.1.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The scope of Consulting Services to be provided by the Consultant, shall consist of at least: (i) one whole (8 hours) working day per each month of the Agreement; or (ii) two half working days per month but in no event less than an agregate of 8 monthly hours.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="70" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2.1.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In addition, the Consultant undertakes to be reasonably available to assist Company in the performance of the Project via telecommunication as may be required according to the Company&#146;s needs;</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="70" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2.1.4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Consulting Services shall be granted at Company&#146;s premises unless mutually agreed otherwise.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="34" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.2.2.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Production of Experimental Formulations</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="70" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2.2.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI shall produce and deliver to Company all the required propiertary BI experimental formulations, as may requested by the Company (the &#147;</font><b><font size=2>Formulations</font></b><font size=2>&#148;);</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>2</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>H:\EDGAR FILINGS\Pluristem\ex10-1f8k102005.htm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="72" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="70" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2.2.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI shall deliver to the Company the applicable serum free Formulation(s) within 21 days from the date of Company&#146;s written request. Up to a total of 12 different and independent formulations will be prepared during the first six months of this agreement with extra 2 formulations prepared at each additional month this agreement is in power.  Each formulation will include 5 liters of medium.</font></p> </td> </tr></table>



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        <td width="72" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="70" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.2.2.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI further agrees that upon Company&#146;s request it will disclose to the Company all the relevant information regarding each apllicable Formulation.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI undertakes to perform its duties and obligations under this Agreement with the highest degree of professionalism and to the full satisfaction of the Company. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Consideration; Expenses</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Monthly payment to BI for the Services shall include retainer fee of 1500 USD payed on the 9<sup>th</sup> day of the following month. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI shall provide written reports on a bi-monthly basis or at Company&#146;s request.  Such reports will outline the status of tasks relating to the Services, such report will identify significant accomplishments, activities performed during the period, change control summary, problems, concerns, recommendations and other items of importance.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>It is hereby agreed that all taxes, levies, national security, social benefits and other mandatory payments and costs (collectively, the &#147;</font><b><font size=2>Taxes</font></b><font size=2>&#148;), imposed on the engagement of the BI hereunder, shall be borne and paid solely by BI and BI shall indemnify Company, immediately upon Company&#146;s first demand for any damage, cost or payment incurred by Company in connection with the payment or non-payment of the Taxes.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Marketing Rights</font></b></u></p> </td> </tr></table>



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        <td width="24" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.1.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Subject to the terms and conditions of this Agreement, BI will have marketing rights for an unlimited time. BI is hereby appointed as a non-exclusive worldwide distributor of the Joint Project Products (as defined below). Pursuant to such appointment, subject only to compliance by BI with the terms and conditions of this Agreement, BI is granted a non-exclusive license, to sell, lease, market or otherwise dispose Joint Project Products under its private label of the Buyer to customers in the field of non for profit R&amp;D life sciences only. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.2.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI undertakes to pay the Company a commission equal to 5% of FOB sales of Joint Project Products under section 5.1 for a period of seven years commencing on the date of the first sale of a Joint Project Product to the R&amp;D market (the &#147;</font><b><font size=2>Sale Commission</font></b><font size=2>&#148;). The payment terms of the Sale Commission shall be due once in every six months.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.3.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI shall not be entitled to disclose any Intellectual Property Rights regarding the Joint Project Product, including chemical formulations, to any of its customers or collaborators.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>3</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>H:\EDGAR FILINGS\Pluristem\ex10-1f8k102005.htm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Any other disposition in the Joint Project Product by BI shall require the prior written consent of the Company, including an agreement regarding the applicable commission paymet to the Company.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Termination</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Termination for Convenience.</font></i><font size=2> This Agreement may be terminated by either the Company or BI for any reason at any time by giving 30 days prior written notice to the other party (&#147;</font><b><font size=2>Termination for Convenience</font></b><font size=2>&#148;). Upon termination of this Agreement or upon the expiration of this Agreement (collectively &#147;</font><b><font size=2>Expiration Event</font></b><font size=2>&#148;) BI shall cease to give Services to the Company (but will not act in any way to damage the reputation or goodwill of the Company or any of its products). In addition it is explicitly agreed between the parties hereto that upon Expiration Event, BI shall not have any further rights or claims against the Company other than those provided under this Agreement.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Termination for Cause.</font></i><font size=2> Notwithstanding anything to the contrary herein contained, the Company may immediately terminate this Agreement for cause without giving any prior notice. &#147;Termination for Cause&#148; shall mean the occurrence of any of the following, as reasonably determined by the Company:</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="34" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.2.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the failure, neglect or refusal by BI to substantially perform the Services and other duties under this Agreement; </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="34" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.2.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any willful, intentional or grossly negligent act by BI having the effect of materially injuring the business or reputation of the Company, its parents, subsidiaries or affiliates; or</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="34" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.2.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI&#146;s commission of a crime constituting a felony (other than a traffic violation) or any criminal act involving moral turpitude; or</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="34" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.2.4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a material breach by BI of any one or more of the covenants of this Agreement, including, without limitation, the covenants set forth in Sections 2, 3, 5,6, 7, 8, 9, and 10, hereof.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Upon Termination for Cause of this Agreement BI shall cease to give Services to the Company (but will not act in any way to damage the reputation or goodwill of the Company or any of its products). In addition it is explicitly agreed between the parties hereto that upon a Termination for Cause, BI shall not have any further rights or claims against the Company under this Agreement, other than those provided under this Agreement.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Upon Termination for Cause of this Agreement BI shall maintain its marketing rights as described in clause 5.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Confidentiality</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>"</font><b><font size=2>Confidential Information</font></b><font size=2>" shall mean any information disclosed by one party (the &#147;</font><b><font size=2>Disclosing Party</font></b><font size=2>&#148;) to the other (the &#147;</font><b><font size=2>Receiving Party</font></b><font size=2>&#148;), either directly or indirectly, in writing, orally, and/or by inspection of tangible objects (including without limitation documents, prototypes, samples, media, documentation, discs and code). Confidential Information shall include, without limitation, (i) any materials, </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.55in; text-indent:-0.3in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>4</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>H:\EDGAR FILINGS\Pluristem\ex10-1f8k102005.htm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.56in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.56in;text-align:justify;'><font size=2>software, trade secrets, know-how, formulas, processes, algorithms, ideas, strategies, inventions, data, network configurations, system architecture, designs, flow charts, drawings, proprietary information, business and marketing plans, financial and operational information, and all other non-public information, material or data relating to the current and/or future business and operations of the Disclosing Party; and analysis, compilations, studies, summaries, extracts or other documentation prepared by the Receiving Party based on information disclosed by the Disclosing Party. Confidential Information may also include information disclosed to the Receiving Party by third parties on behalf of the Disclosing Party.  Confidential information shall not, however, include any information which Receiving Party can establish by written documentation: (i) is or becomes publicly known and made
generally available in the public domain without any violation of this Agreement; (ii) is known to the Receiving Party prior to disclosure by the Disclosing Party as shown by Receiving Party's files and records immediately prior to the time of disclosure; or (iii) is lawfully obtained by the Receiving Party from a third party who is not bound by similar confidentiality obligations.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Non-Use and Non-Disclosure</font></b></u><font size=2>. The Receiving Party shall not use any Confidential Information for any purpose other than to assist the Receiving Party in evaluating and formalizing the relationships as described above with the Disclosing Party. The Receiving Party shall not disclose Confidential Information to any third party unless authorized in advance in writing. The Receiving Party shall not disclose Confidential Information to its employees, except on a "need to know" basis where such disclosure is necessary and required to assist the Receiving Party in evaluating and formalizing the relationships as described herein.  The Receiving Party shall not disclose Confidential Information to any employee of Receiving Party unless such employee has signed a non-use and non-disclosure agreement in
content at least as protective as the provisions hereof, prior to any disclosure of Confidential Information to such employee.  The Receiving Party shall not reverse engineer, disassemble or decompile any prototypes, software or other tangible objects which embody the Confidential Information and which are provided to such Receiving Party hereunder.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Maintenance of Confidentiality</font></b></u><font size=2>.  The Receiving Party shall take reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of the Confidential Information.  Without limiting the foregoing, the Receiving Party shall take at least those measures that it takes to protect its own most highly confidential information.  The Receiving Party shall make no copies of the Confidential Information unless the Disclosing Party previously approves the same in writing.  The Receiving Party shall reproduce Disclosing Party's proprietary rights notices on any such approved copies, in the same manner in which such notices were set forth in or on the original.  The Receiving Party shall immediately notify Disclosing Party in the event of any unauthorized use or disclosure of the
Confidential Information.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.4.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Return of Materials</font></b></u><font size=2>.  All documents and other tangible objects containing or representing Confidential Information and all copies thereof which are in the possession of BI shall be and remain the property of the Company and shall be </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.55in; text-indent:-0.3in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>5</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>H:\EDGAR FILINGS\Pluristem\ex10-1f8k102005.htm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.56in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.56in;text-align:justify;'><font size=2>promptly returned to the Company upon (i) the Company&#146;s request, or (ii) the termination of this Agreement.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Ownership Rights</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>8.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Each Party shall be the sole owner of the Intellectual Property Rights in and to any and all portions of the: (i) which was in its possession prior to the commencement of this Agreement; (ii) which is or was independently developed (by personnel having no access to the Information) by the Receiving Party as evidenced by Receiving Party&#146;s written records; and (iii) is or was lawfully obtained by the Receiving Party from sources independent of the Disclosing Party who have a lawful right to disclose such Information; </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>8.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Except as expressly stated herein, any utilization by either party of any copyrightable material, notes, records, drawings, designs, inventions (whether patentable or not), improvements, developments, discoveries, software code, trade secrets or other Intellectual Property Rights conceived, discovered, developed or reduced to practice by joint efforts of the Parties (&#147;</font><b><font size=2>Joint Work Products</font></b><font size=2>&#148;) shall require the prior written consent of the non-utilizing party.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.3.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>For the purpose of this Clause &#147;</font><b><font size=2>Intellectual Property Rights</font></b><font size=2>&#148; shall mean any patents, copyrights, mask work rights, know-how, trade secrets, trademarks and any other intellectual property rights subsisting now or at any time in the future, in any country or territory worldwide; all whether registered, pending or unregistered.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Non-Competition</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI agrees and undertakes that it will not, during the term of this Agreement and for a period of (1) year thereafter, either directly or indirectly: (i) solicit, induce, recruit or encourage any of the Company&#146;s employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of the Company, either for itself or for any other person or entity; (ii) contact any customer or prospect customer of the Company for the purpose of selling such person or entity any products or services which are substantially similar to, or competitive with, the current products of the Company or anticipated products that will be produced or developed by the Company; or (iii) be employed by, engaged in, or own share in any partnership, corporation or other business which is in
direct or indirect competition either to that in which the Company is engaged in or is actively contemplating engaging in during the term of this Agreement. </font></p> </td> </tr></table>



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        <td width="24" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Pluristem agrees and undertakes that it will not, during the term of this Agreement and for a period of (1) year thereafter, either directly or indirectly: (i) solicit, induce, recruit or encourage any of BI&#146;s employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of BI, either for itself or for any other person or entity; (ii) contact any customer or prospect customer of BI for the purpose of selling such person or entity any products or services which are substantially similar to, or competitive with, the current products of BI or anticipated products that will be produced or developed by BI; or (iii) be employed by, engaged in, or own share in any partnership, corporation or other business which is in direct or indirect competition either
to that in which BI </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.55in; text-indent:-0.3in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>6</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>H:\EDGAR FILINGS\Pluristem\ex10-1f8k102005.htm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.56in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.56in;text-align:justify;'><font size=2>is engaged in or is actively contemplating engaging in during the term of this Agreement. </font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="29" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI shall not be employed by, render any services to, or perform any work, whether for payment nor without payment, for any third party developing serum-free-media for the maintenance and expansion of hematopietic stem cells.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>General</font></b></u></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>BI shall not assign any of its rights and obligations hereunder without the prior written consent of the Company. </font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Either party's failure at any time to require strict compliance by the other party of the provisions of this Agreement shall not diminish such party's right thereafter to demand strict compliance therewith or with any other provision. Waiver of any particular default shall not waive any other default.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All disputes with respect to this Agreement shall be exclusively governed by the laws of the State of Israel. Any action arising under or relating to this Agreement shall be brought solely in the appropriate court of Tel-Aviv, Israel.  The parties hereto consent to the exclusive jurisdiction of the courts specified above, and expressly waive any objection to the jurisdiction or convenience of such courts.</font></p> </td> </tr></table>



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        <td width="24" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>This Agreement, together with its appendices, contains and sets forth the entire agreement and understanding between the parties with respect to the subject matter contained herein, and such supersedes all prior discussions, agreements, representations and understandings in this regard. This Agreement shall not be modified except by an instrument in writing signed by both parties.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Provisions intended to survive the termination of this Agreement, including but not limited to Sections 6, 7, and 9, shall so survive.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:6pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="71" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.6.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The captions contained herein are for the convenience of the parties only and shall not affect the construction or interpretation of any provision hereof.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>7</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>H:\EDGAR FILINGS\Pluristem\ex10-1f8k102005.htm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>In witness whereof, the duly authorized representatives of the Company and BI have executed this Agreement as of the date stated below.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><small>COMPANY</small></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ Shai Meretzki</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><small>BI</small>  </p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ Gary Bennett</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>
        <td width="357" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:    Shai Meretzki</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:   Gary Bennett</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>
        <td width="357" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title: CEO</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title: Managing Director</font></p> </td> </tr>
    <tr>
        <td width="357" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date: 20/3/05</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:  21/3/05</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>H:\EDGAR FILINGS\Pluristem\ex10-1f8k102005.htm</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<FILENAME>ex99-1f8k102005.htm
<DESCRIPTION>EXHIBIT 99.1 - NEWS RELEASE
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><b><font face="Arial" size=2>Exhibit 99.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font face="Arial" size=2>For Immediate Release</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font face="Arial" size=2>Pluristem Announces Joint Projects Product Development and</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font face="Arial" size=2> Worldwide Distributorship Agreement with Biological Industries, Ltd.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>-</font><font face="Arial" size=2>Companies Target Projected $1.7 Billion Cell Culture Market in Media,</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2> Sera and Reagents, Potentially Providing Pluristem Significant Revenue</font><font face="Arial" size=2>- </font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font face="Arial" size=2>Haifa, Israel &#150; October 20, 2005 - Pluristem Life Systems, Inc. (OTC BB: PLRS) (the &#147;Company&#148;)</font></b><font face="Arial" size=2>, </font><i><font face="Arial" size=2>a biotechnology company dedicated to the expansion of stem cells from umbilical cord blood to</font></i><font face="Arial" size=2> </font><i><font face="Arial" size=2>address a myriad of fatal illnesses</font></i><font face="Arial" size=2>, today announced that the Company has launched a collaboration with Biological Industries, Ltd., to globally distribute joint project products in the field of serum-free media specially designed for hematopoietic and mesenchymal stem cells utilizing Pluristem&#146;s patented PluriX&#153; bioreactor.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Biological Industries is a privately-held, leading biotechnology manufacturer and provider of a large range of animal cell culture products including sterile sea, liquid and powdered synthetic media, supplements and novel serum free media products in the field of cellular biology.  The company exports products to thirty countries internationally.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>According to a soon-to-be released updated report from the </font><b><font face="Arial" size=2>Business Communications Company, Ltd. </font><font face="Arial" size=2>(</font></b><u><b><font face="Arial" size=2>www.bccresearch.com)</font></b></u><b><font face="Arial" size=2> </font></b><u><i><b><font face="Arial" size=2>(RC-083U The Dynamic Meida, Sera and Reagent Market in the Cell Culture Industry,</font></b></i></u><font face="Arial" size=2> </font><font face="Arial" size=2>the U.S. market for media, sera and reagents was $915.6 million in 2003, expected to grow at an average annual growth rate of 13.1% and reach $1.7 billion by 2008.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Biological Industries will pay Pluristem a license fee equal to 5% of sales of serum-free media developed in the Joint Project Products for seven years commencing on the date of the first sale. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&#147;These Joint Project Products derived from serum-free media may garner millions of dollars in revenue to Pluristem as the project progresses.  Additionally, it will further demonstrate the capabilities and improve the productivity of the Company&#146;s PluriX bioreactor,&#148; stated Zami Aberman, CEO.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Dr. Gary Bennet, President of Biological Industries, Ltd., added, &#147;With robust expertise in the serum-free cell culture market, we enter this joint project confident that it will lead to the development of products in a burgeoning area of the biotechnology arena.  We expect to see significant bottom-line results for both companies,&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>About Serum</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Serum is one of the many components used in the process of stem cell expansion.  Cells need nutrients to expand and grow.  Serum provides these nutrients.  It is a combination of elements, including proteins, enzymes, metals, minerals, and sugars usually derived from an animal source such as cattle.  The shift from traditional serum-supplemented media to serum-free and protein free media possesses several marked advantages, which include better definition of the composition, reduced contamination and lower cost. </font></p>

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<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font face="Arial" size=2>About Pluristem </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font face="Arial" size=2>Pluristem is a biopharmaceutical company developing stem cell products for cell regenerative therapy.  Pluristem&#146;s platform for expanding stem cells offers newly developing technology and multiple product opportunities in many therapeutic areas.  Pluristem has exclusive rights to the Plurix<SUP>TM </SUP>cell expansion system under a licensing agreement with Technion Institute of Technology and the Weisman Institute of Science.</font></p>

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<p style=' margin-bottom:6pt; margin-top:12pt;text-align:left;'><font face="Arial" size=2>For more information, visit the Company&#146;s website at:  www.pluristem.com.</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font face="Arial" size=2>Safe Harbor Statement</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font face="Arial" size=2>This press release contains statements, which may constitute "forward-looking statements". Those statements include statements regarding the intent, belief or current expectations of Pluristem Life Systems, Inc., and members of our management as well as the assumptions on which such statements are based. Forward-looking statements in this release include statements that include any reference to the Joint Product Project with Biological Industries Ltd. being implemented and its successful product development and generation of revenues derived from product sales; that the U.S. market for media, sera and reagents is expected to reach $1.7 billion by 2008; that reduced times for obtaining FDA approvals may be possible; that the PluriX&#153; bioreactor has enormous potential; that we are well positioned to actively pursue partnering relationships, to garner significant market share due to the
development of any serum-free product, that the project will demonstrate the capabilities and improve the productivity of the Company&#146;s PluriX bioreactor; and that our technology offers opportunities for therapeutic products and to save lives. Factors which may significantly change or prevent our forward looking statements from fruition include that we or Biological Industries may not complete required obligations under our agreement; that we may be unsuccessful in developing any products under the agreement; that we may have disputes with our partner regarding </font></p>

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<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font face="Arial" size=2>aspects of the agreement; potential successful challenges to our patent by competitors; that our patents are not sufficient to protect essential aspects of our technology; that competitors may invent better technology; that we may not have sufficient financing to develop our products; our products may not work as well as hoped or worse, they may harm recipients; and that we may not be able raise funding for development or working capital when we require it. As well, our products may never develop into useful products and even if they do, they may not be approved for sale to the public. For further risk factors see the Company&#146;s latest 10-KSB filed with the SEC.</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font face="Arial" size=2> Contact:</font></p>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font face="Arial" size=2>for Pluristem Life Systems, Inc.</font></p>


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            <p><font face="Arial" size=2>DeMonte Associates</font></p> </td>
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            <p><font face="Arial" size=2>Cynthia DeMonte, 212-605-0525</font></p> </td> </tr>
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            <p><u><font face="Arial" size=2>cdemonte@aol.com</font></u></p> </td>
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