EXHIBIT 10.17

     

    SCIENTIFIC ADVISORY BOARD
AGREEMENT

     

    THIS
AGREEMENT (the “Agreement”) dated
as of May 1 2006 (“Effective Date”) is
made by and between Medgenics, Inc. located at
of 8000
Towers Crescent Drive, Suite 1300, Vienna, VA, 22182.
USA

    
(the “Company”); and

     

    Allen Nissenson, MD of Los Angeles,
California USA (the “Advisor”).

    


    The
Company wishes to retain the Advisor as a member of the Company’s Scientific
Advisory Board; and the Advisor desires to perform such consulting services.
Accordingly, the parties agree as follows:

    


    
      
        	
              	
                1.

              	
                Services.

              


      

    

    


    
      	
               
      

            	
              a.

            	
              The
      Advisor will advise, consult for and on behalf of the Company's
      management, employees and agents, at reasonable times, as requested by the
      Company for the Services set forth on Exhibit 1 (the “Description of Services”).

            


    

    


    
      	
               
      

            	
              b.

            	
              Advisor
      will participate in 3-4 SAB meetings per year by phone. Additionally,
      Consultation of up to 2 hours per month on average may be sought by the
      Company by telephone, written correspondence or in person at the Advisor’s
      office and will involve reviewing activities and developments in the
      Company’s field of
      activity.

            


    

    


    
      
        	
              	
                2.

              	
                The
      Advisor’s compensation will comprise 20,000 options for common shares
      exercisable for 5 years at the restart round price ($1.516/share) These
      options shall vest over a 3 year period starting from the Effective Date
      of this Agreement however, vesting will be accelerated in case of a change
      of ownership. The Advisor will be paid $1,500 per day for in-person
      meetings. Reasonable expenses of the Advisor incurred at the request of
      the Company (including phone and other expenses incurred in the normal
      course of business on behalf of the Company and travel expenses incurred
      in connection with Company related business in accordance with the
      Company’s travel policy) will be reimbursed promptly by the Company,
      subject to customary verification and prior written approval.
      =

              


      

    

    


    
      
        	
              	
                3.

              	
                Term. The term of this
      Agreement will begin on the Effective Date of this Agreement and will end
      on the third anniversary of this Agreement or upon earlier termination as
      provided below (the “Term”); provided that the Term may
      be renewed for successive one-year periods. This Agreement may be
      terminated at any time upon written notice by either
  party.

              


      

    

    
    

     

    SAB
Advisory Agreement Page 1 of 8

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                4.

              	
                Confidentiality.

              


      

    

     

    
      	
               
      

            	
              a.

            	
              The
      Advisor acknowledges that, during the course of performing his services
      hereunder, the Company will be disclosing information to the Advisor (“Confidential Information”) which is owned by the
      Company. The Advisor acknowledges that the Company’s business is extremely
      competitive, dependent in part upon the maintenance of secrecy, and that
      any disclosure of the Confidential Information would likely result in
      serious harm to the Company.

            


    

    


    
      	
               
      

            	
              b.

            	
              The
      Advisor agrees that the Confidential Information will be used by the
      Advisor only in connection with consulting activities hereunder, and will
      not be used for any other purpose.

            


    

    


    
      	
               
      

            	
              c.

            	
              The
      Advisor agrees not to disclose, directly or indirectly, the Confidential
      Information to any third person or entity, other than representatives or
      agents of the Company. The Advisor agrees not to use the Confidential
      Information for any purposes other than explicitly permitted under this
      Agreement. The Advisor will treat all such information as confidential and
      proprietary property of the
Company.

            


    

    


    
      	
               
      

            	
              d.

            	
              The
      Advisor may disclose any Confidential Information that is required to be
      disclosed by law, government regulation or court order. If disclosure is
      required, the Advisor will give the Company advance notice so that the
      Company may seek a protective order or take other action reasonable in
      light of the circumstances.

            


    

    


    
      
        	
              	
                5.

              	
                Intellectual
      Property

              


      

    

     

    
      	
               
      

            	
              a.

            	
              The
      Advisor recognizes that the Company is engaged in a continuous program of
      research, development, and production respecting its business. The Company
      possesses or has rights to information that has been created, discovered,
      developed or otherwise become known to the Company (including information
      developed by, discovered by or created by Advisor which arises out of the
      consulting relationship with the Company) that has commercial value in its
      business (“Proprietary Information”). For example, Proprietary Information
      includes without limitation inventions (whether or not patentable), patent
      applications trade secrets, discoveries, experiments, research concepts
      ideas, techniques, methods, processes, testing procedures, formulas,
      compositions, data, know-how, computer programs, computer code,
      improvements in the foregoing, as well as names and expertise of
      employees, consultants, customers and prospects, and technical, business,
      financial, marketing customer and product development plans, forecasts,
      strategies and any other information relating to the Company’s business
      and/or fields of interest.

            


    

     

    SAB
Advisory Agreement Page 2 of 8

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              b.

            	
              The
      Advisor understands that its advisory relationship creates a relationship
      of confidence and trust between Advisor and the Company with respect to
      any (i) Proprietary Information or (ii) confidential information
      applicable to the business of any customer of the Company or other entity
      with which the Company does business and that it learns in connection with
      the advisory relationship. At all times, both during the consulting
      relationship with the Company and after its termination, Advisor will keep
      in confidence and trust all such information, and Advisor will not use or
      disclose any such information without the written consent of the Company,
      except as may be necessary in the ordinary course of performing its duties
      to the Company. This obligation shall end whenever such information enters
      the public domain and is no longer confidential or
      proprietary,

            


    

    


    
      	
               
      

            	
              c.

            	
              In
      addition, the Advisor hereby
agrees:

            


    

    
      	
            	
              i. 
      

            	
              All
      Proprietary Information shall be the sole property of the Company and its
      assigns, and the Company and its assigns shall be the sole owner of all
      patents, copyrights, trade secrets and other proprietary rights in
      connection therewith. Advisor hereby assigns to the Company any rights it
      may have or acquire in such Proprietary Information, Advisor specifically
      agrees that the foregoing assignment shall include any and all rights it
      may have, had, acquire, or acquired in the Proprietary Information of
      Medgenics, Inc., and a Delaware corporation, if applicable. Additionally,
      Advisor agrees to perform all reasonable acts requested by the Company or
      its representatives to perfect and enforce such
  rights.

            


    

    


    
      	
               
      

            	
              b.

            	
              All
      documents or other media, records apparatus, equipment and other physical
      property whether or not pertaining to Proprietary Information, furnished
      to the advisor by the Company or produced by Advisor or others in
      connection with the consulting relationship shall be and remain the sole
      property of the Company. Advisor shall return and deliver all such
      property of the Company immediately as and when requested by the Company.
      The advisor shall return and deliver all such property (including any
      copies thereof) upon request and, even without any request, upon
      termination of the consulting
relationship.

            


    

    


    
      
        	
              	
                c.

              	
                During
      the advisory relationship with the Company, the advisor will not engage in
      providing advisory services to other entities in the field of ex
      vivo genetic modification of autologous
  tissue.

              


      

    

    


    
      	
               
      

            	
              d.

            	
              Advisor
      will promptly disclose to the Company all improvements, inventions. works
      of authorship, trade secrets, computer programs, designs, formulas, mask
      works, ideas, processes, techniques, know-how and data, whether or not
      patentable (“Inventions”) that relate to the subject matter of my advising
      and that are conceived, developed or learned by the Advisor, either alone
      or jointly with others, during the term of the advisory
      relationship.

            


    

     

    SAB
Advisory Agreement Page 3 of 8

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              e.

            	
              During
      the term of the advising and for twelve (12) months thereafter, the
      Advisor will not solicit any employee of the Company to leave the Company
      for any reason or to devote less than all of any such employee’s efforts
      to the affairs of the Company.

            


    

    


    
      	
               
      

            	
              f.

            	
              All
      inventions that Advisor conceives, develops or learns (in whole or in
      part, either alone or jointly with others) in connection with performance of its
      advising for the Company or that uses the Company’s Proprietary
      Information shall be the sole property of the Company and its assigns (and
      to the extent
      permitted by law shall be works made for
      hire).The Company and its assigns shall be the sole owner of all trade
      secret rights, patents, copyrights and other proprietary rights anywhere
      in the world in connection therewith, and Advisor hereby assigns to the
      Company any rights it may have or acquire in such Inventions. Advisor
      specifically agrees that the foregoing assignment
      shall include any and all rights, title and interest Advisor may have,
      had, acquired or acquire in Inventions made conceived, developed, acquired
      or first reduced to practice by Advisor (in whole or in part, either alone
      or jointly with others) while Advisor was rendering services to Medgenics,
      Inc. a Delaware corporation, if
applicable.

            


    

    


    
      	
               
      

            	
              g.

            	
              With
      regard to Inventions described in (f) above, Advisor will assist the
      Company or its assigns in every proper way (but at the Company’s expense)
      to obtain and from time to time enforce patents, copyrights on the
      Inventions in any and all countries, and to that end Advisor
      will execute all
      appropriate documents. This obligation shall continue beyond the
      termination of the consulting relationship, but the Company shall then
      compensate Advisor at a reasonable rate for time spent. If the Company is
      unable for any reason whatsoever to secure signature to any such document
      (including renewals, extensions, continuations, divisions or continuations
      in part), Advisor hereby irrevocably designates and appoints the Company
      and its duly authorized officers and agents, as its agents and
      attorneys-in-fact to act for and in my behalf and instead of Advisor,
      but only for the
      purpose of
      executing and filing such documents and doing all other lawful permitted
      acts to
      accomplish the foregoing with the same legal force and effect as if
      done by Advisor.

            


    

    


    
      	
               
      

            	
              h.

            	
              As
      a matter or record Advisor attaches hereto (as Exhibit 2) a list of
      existing inventions or improvements relevant to the subject matter of the
      advisory relationship with the Company that have been made or conceived or first reduced to
      practice by Advisor alone, or jointly with others, prior to rendering
      services as an advisor to the Company that Advisor desires to remove from
      the operation of the Agreement, and Advisor covenants that such list is
      complete.

            


    

    
    

    
       

      SAB
Advisory Agreement Page 4 of 8

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              i.

            	
              Advisor
      represents that execution of the Agreement, the advisory
      relationship with the Company and my performance of the Services will not
      violate any obligations it may have to any person or entity, including the
      obligation to keep confidential any proprietary information of that person
      or entity. Advisor has not entered into any agreement in conflict wit this
      Agreement or the advisory relationship with the Company. Advisor
      represents that it will not disclose to the Company or induce the Company
      to use any confidential or proprietary information or material belonging
      to any previous employers, clients, or
others

            


    

     

    
      
        	
              	
                6.

              	
                Use of Name. It
      is understood that the name of the Advisor and Advisor’s affiliation with
      the Institution will appear in disclosure documents required by securities
      laws, and in other regulatory and administrative filings; and in the
      ordinary course of the Company’s
business.

              


      

    

    


    
      
        	
              	
                7.

              	
                No Conflict; Valid and
      Binding.The Advisor represents that neither the execution of this
      Agreement nor the performance of the Advisor’s obligations under this
      Agreement will result in a violation or breach of any other agreement by
      which the Advisor is bound. The Company represents that this Agreement has
      been duly authorized and executed and is a valid and legally binding
      obligation of the Company, subject to no conflicting
      agreements.

              


      

    

    


    
      
        	
              	
                8.

              	
                Notices. Any notice provided under this Agreement
      shall be in writing and shall be deemed to have been
      effectively given (i) upon receipt when delivered personally, (ii)
      one day after sending when sent by private express mail service (such as
      Federal Express), or (iii) 5 days after sending when sent by regular mail
      to the following address:

              


      

    

     

    In the
case of the Company:

     

    ___________________________

    ___________________________

    Office
______________________

    Fax
________________________

    


    
      Attention:
Dr. Andrew L. Pearlman

    

    Chief
Executive Officer

     

    With a
copy to:

    
      Pearl
Cohen Zedek Latzer, LLP

    

    
      1500
Broadway, 12th Floor

    

    
      New York,
NY 10036

    

    
      Tel:
646-878-0804

    

    
      Fax:
646-878-0801

    

    


    Attention:
Mark S. Cohen

     

    SAB
Advisory Agreement Page 5 of 8

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In the
case of the Advisor:

     

    ___________________________

    ___________________________

    ___________________________

     

    or to
other such address as may have been designated by the Company or the Advisor by
notice to the other given as provided herein.

     

    9. Independent
Contractor, Withholding. The Advisor will at all times be an independent
contractor, and as such will not have authority to bind the Company. Advisor
will not act as an agent nor shall he be deemed to be an employee of the Company
for the purposes of any employee benefit program, unemployment benefits, or
otherwise. The Advisor recognizes that no amount will be withheld from his
compensation for payment of any federal, state, or local taxes and that the
Advisor has sole responsibility to pay such taxes, if any, and file such returns
as shall be required by applicable laws and regulations. Advisor shall not enter
into any agreements or incur any obligations on behalf of the
Company.

    


    10. Assignment. Due to the personal nature of the services to
be rendered by the Advisor. the Advisor may not assign this Agreement. The
Company may assign all rights and liabilities under this Agreement to a
subsidiary or an affiliate or to a successor to all or a substantial part of its
business and assets without the consent of the Advisor. Subject to the
foregoing, this Agreement will inure to the benefit of and be binding upon each
of the heirs, assigns and successors of the respective parties.

    


    11. Severability. If any provision of this Agreement shall be
declared invalid, illegal or unenforceable, such provision shall be severed and
the remaining provisions shall continue in full force and effect.

    


    12. Remedies. The Advisor acknowledges that the Company would
have no adequate remedy at law to enforce. In the event of a violation by the
Advisor of such Sections, the Company shall have the right to obtain injunctive
or other similar relief, as well as any other relevant damages, without the
requirement of posting bond or other similar measures.

    


    13. Governing Law; Entire
Agreement; Amendment. This Agreement shall be governed by the substantive
laws of New York and under the exclusive jurisdiction of the New York
courts.

     

     

    SAB Advisory
Agreement Page 6 of 8

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.

     

    
      
        
          
            
              	
                      Medgenics,
      Inc.

                    	 
      	
                      ADVISOR:

                    
	 
      	 
      	 
      	 
      	 
      
	
                      By:

                    	
                      /s/
      Andrew L. Pearlman

                    	 
      	
                      By:

                    	
                      /s/
      Allen R. Nissenson

                    
	
                      Name:

                    	
                      Andrew
      L. Pearlman

                    	 
      	
                      Name:

                    	
                      Allen
      R. Nissenson

                    
	 
      	 
      	 
      	 
      	 
      
	
                      Title:

                    	
                      Chief
      Executive Officer

                    	 
      	
                      Title:

                    	
                      PROF.
      MD

                    
	 
      	 
      	 
      	 
      	
                      9/12/06

                    


            

          

        

      

    

    
SAB
Advisory Agreement Page 7 of 8

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
1

    Description
of Services

     

    Advising
the company including:

     

    
      	
            	
              1)

            	
              Participating
      as a member of the Scientific Advisory
Board

            


    

    


    
      	
            	
              2)

            	
              Guiding
      the general scientific, business, laboratory, and medical direction of the
      company;

            


    

    


    
      	
            	
              3)

            	
              Reviewing
      the goals and plans of the Company and developing strategies for achieving
      them;

            


    

    


    
      	
            	
              4)

            	
              Identifying
      and developing relationships with potential strategic
      partners;

            


    

    


    
      	
            	
              5)

            	
              Interacting
      with potential investors, stockholders, and strategic or corporate
      partners;

            


    

     

    
      	
            	
              6)

            	
              Identifying
      and reviewing promising scientific developments and intellectual property;
      and

            


    

    


    
      	
            	
              7)

            	
              Providing
      advice and guidance in the Company’s scientific research and product
      development activities.

            


    

      

    SAB
Advisory Agreement Page 8 of 8